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File #: ID#15-1041    Version: 1 Name:
Type: Action Item Status: Passed
File created: 11/10/2015 In control: City Council
On agenda: 12/3/2015 Final action: 12/3/2015
Title: *** RESOLUTION - 19th amendment to the Annual Appropriation Resolution (AAR) No. 2015-104 to transfer $500,000 from the MTBE Settlement Fund to the TCP Settlement Fund to fund outside counsel legal services costs related to prosecution of the TCP liability claims case (Citywide) (Requires five affirmative votes)
Sponsors: Department of Public Utilities
Attachments: 1. Reso 19th TCP Settlement Efforts .pdf
REPORT TO THE CITY COUNCIL


December 3, 2015


FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities

THROUGH: BUD TICKEL, Water Systems Manager
Department of Public Utilities - Water Division

BY: HENRY McLAUGHLIN, Business Manager
Department of Public Utilities - Water Division

SUBJECT
Title

*** RESOLUTION - 19th amendment to the Annual Appropriation Resolution (AAR) No. 2015-104 to transfer $500,000 from the MTBE Settlement Fund to the TCP Settlement Fund to fund outside counsel legal services costs related to prosecution of the TCP liability claims case (Citywide) (Requires five affirmative votes)

Body
RECOMMENDATIONS

Staff recommends that City Council approve the 19th Amendment to the AAR No. 2015-104.

EXECUTIVE SUMMARY

The City of Fresno has approximately 260 active wells that produce on average 88% of the water supplied to over 135,000 customers. Some wells within the City service area are threatened by various chemical contaminants, including 1,2,3-trichloropropane (TCP). In March 2007, Council approved the City joining in a lawsuit against TCP manufacturers to protect the City's claims and seek recovery of clean-up costs. On September 24, 2015, Council approved the expenditure of funds, consistent with the legal services agreement, to cover the cost of litigation. The recommended source of funding for these costs is a transfer from the Methyl Tertiary Butyl Ether (MTBE) Settlement Fund.

BACKGROUND

The City of Fresno supplies approximately 88% of the water delivered to over 135,000 customers through 260 active wells (the remaining 12% is from surface water treatment facilities). Ground water contamination from various chemicals including TCP has threatened this water supply and required well closures and installation and operation of expensive well head treatment facilities. The City's complaint against the TCP manufacturers was filed on March 21, 2007, in San Francisco Superior Court, Ci...

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