R-96-11-26-14E - 11/26/1996ATTEST:
A.
WHEREAS, the City recently received $6,120,000 in settlement
of Cause No. 95- 316 -C277; City of Round Rock, Texas vs. Shell Oil
Company d /b /a Shell Chemical Company, and Vanguard Plastics, Inc.,
and
WHEREAS, the City Council now desires to reserve and
restrict said funds so that they may be used solely for replacement
of the defective polybutylene pipe, the expansion of the Public
Works Building and for other utility system construction, Now
Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the $6,120,000 settlement amount shall be transferred to
the Utility Repair and Replacement fund and restricted and reserved
as follows:
Reserved for pipe replacement program, including
Public Works Bldg. expansion (FY `97) $1,262,000
Reserved for pipe replacement program (future) 2,538,000
Reserved for future utility construction 2,320,000
TOTAL RESERVED $6,120,000
RESOLVED this day of 26th Novembers 1996.
mod_
E LAND, City Secretary
R.\ WPDOC S \RSSOLDTI \RS61126H.WPD /s1,
RESOLUTION NO. R- 96- 11- 26 -14E
HARLES CULPEPPEIZ', Mayor
City of Round Rock, Texas
DATE: November 22, 1996
SUBJECT: City Council Meeting, November 26, 1996
ITEM: 14. E. Consider a resolution reserving funds for future costs of the water pipe
replacement program and other utility system construction.
STAFF RESOURCE PERSON: David Kautz
STAFF RECOMMENDATION:
A budget amendment has authorized staff to begin a water pipe replacement program and
public works building expansion and has funded the first year cost. Because the program is
funded with cash and has future year costs, staff recommends setting aside cash received from
the pipe lawsuit settlement for this purpose. Additionally, because the utility faces significant
construction costs to expand plant and lines, the balance of the funds are to be set aside for this
purpose. Upon Council approval, funds for this program and other utility system construction will
be transferred to the Utility Repair and Replacement fund and reserved for these purposes.
To summarize this transaction, please see the chart below:
Reserved for pipe replacement program, including the
public works building expansion (current year) $1,262,000
Reserved for pipe replacement program (future years) 2,538,000
Reserved for future utility construction 2.320.000
Total reserved $6,120,000