10070-11 Appropriation- $60,000 Loss Recovery Fund (#227) in 2011 Two Underground Storage Tanks.

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ORDINANCE NO. ~ ~~ ~ ~ ~" ~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $60,000.00 FROM THE NONREVERTING LOSS RECOVERY FUND (#227) IN 2011 FOR THE CLOSURE AND REMOVAL OF TWO UNDERGROUND STORAGE TANKS AT CENTURY CENTER AND FOR FREDRICKSON PARK REMEDIATION STATEMENT OF PURPOSE AND INTENT On December 8, 2008, the City of South Bend Common Council passed Ordinance No. 9890-08 which established the Nonreverting Loss Recovery Fund (#227). The purpose of the Fund was to receive compensatory or exemplary damage payments from third parties arising from loss or damage to City tangible or intangible property. The City has received payments to date of $4,881,996 in this fund due primarily to the settlement of a MTBE contamination lawsuit and also has received interest earnings in the amount of $36,842. A total of $549,932 has been spent from the Fund to date resulting in a cash balance of $4,368,906 at November 30, 2010. The purpose of this ordinance is to appropriate a total of $60,000.00 from the Nonrevert.ing Loss Recovery Fund (#227), of which $55,000.00 is for the closure and removal of two underground storage tanks at Century Center, and an additional $5,000.00 for Fredrickson Park remediation. Century Center has two underground storage tanks that were previously used for heating oil storage for heat and diesel fuel for a generator. The tanks have become unnecessary and the City of South Bend would like to take the appropriate actions to complete the closure and removal of the tanks in accordance with local, state and federal guidelines. If the tanks are left in place they will continually deteriorate over time possibly causing environmental contamination to the surrounding soils and to the St. Joseph River, which flows in close proximity to the site. If this contamination were to occur, the environmental cleanup and remediation costs would likely far exceed the proposed tank closure and removal costs. Ari additional $x,000.00 is appropriated for data analysis, mapping and reporting twice during 2011 for Fredrickson Park Remediation monitoring and some specific parameter investigation. Any sums unspent from this appropriation will be released back into the Nonreverting Loss Recovery Fund. NGVv.", THEREFORE, BE IT ORDAINED by the Common Council of the City of South Ber.d, Indiana, as follows: SECTION I: The sum of $55,000 shall be and hereby is appropriated from and set aside within the Nonreverting Loss Recovery Fund (#227) in 2011 to pay for the closure and removal of two underground storage tanks at Century Center.