Title
Consider/Discuss/Act on a Resolution Authorizing the Execution of Closing Documents Pursuant to a 1994 “Agreement for the Planned Extension of City of McKinney Utility Service into the Danville Water Supply Corporation Certificated Area” to Acquire the Assets and Customers of the Danville Water Supply Corporation
Summary
MEETING DATE: June 21, 2011
DEPARTMENT: Development Services/Engineering
Public Works
City Attorney
CONTACT: Jack Carr, PE, Director of Engineering
Hal Cranor, Director of Public Works
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Resolution.
ITEM SUMMARY:
· This Resolution authorizes the City Manager’s execution of closing documents as necessary for the transfer and acquisition of the assets, system and customers of the Danville Water Supply Corporation (DWSC) in conjunction with its dissolution.
BACKGROUND INFORMATION:
· In 1994 the City of McKinney and DWSC entered into an agreement that included provisions requiring the City’s ultimate acquisition of the DWSC system, including the entirety of its assets/liabilities. A primary purpose for the agreement was the orderly acquisition and integration of the then rural water customers into the City’s urban water utility system--as inevitable growth occurred.
· The closing agreement outlines the process, assets and consideration for the transfer of the entirety of the DWSC system, including the water system components, physical plant, real property, equipment, vehicles, contracts, customer accounts and cash-on-hand. The 1994 agreement also requires the City to retire any outstanding debts of the DWSC as of the transfer/closing date.
· The DWSC water system components include:
o A pump station on US 380 east of Custer Road
o An elevated storage tank on the west side of Custer Road north of FM 1461 in the Celina CCN.
o Predominantly small-diameter water lines
o Few fire hydrants
o 327 residential customers (this number has steadily declined over...
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