Round Rock City Council Meeting - December 4, 2025

The Round Rock City Council met on Thursday, December 4, 2025 at 6:00 PM in the City Council Chambers. The meeting included a staff presentation from General Services, the adoption of a consent agenda, approval of multiple resolutions, and two public hearings on rezoning and code amendments. The most discussed item was the proposed Skybox Data Center rezoning (Item I2), which drew extensive public testimony from residents concerned about noise, water usage, electricity costs, and health impacts. The council voted to approve the first reading of the ordinance, with a second reading required at a future meeting.

Consent Calendar

• G.1 Approved minutes from November 20, 2025.
• G.2 Approved agreement with Presidio Networked Solutions for Cisco products and services.
• G.3 Renewed Stop Loss Insurance Coverage Agreement with United Healthcare for 2026.
• G.4 Renewed Long Term Disability Policy with Madison National Life Insurance (2026-2027).
• G.5 Renewed Short Term Disability Policy with Madison National Life Insurance (2026-2027). All consent items were approved by a unanimous 7-0 vote.

Public Comments & Testimony

• Item I2 (Skybox Data Center Rezoning): Approximately 20 residents spoke during the public hearing, the majority expressing opposition. Key concerns included:
  • Electricity: Residents cited studies showing data centers drive up wholesale electricity costs (e.g., 267% increases in some areas) and questioned grid reliability, especially during extreme weather (referenced 2021 winter storm).
  • Water: Speakers argued that “closed-loop cooling” is not truly water-free, with evaporative losses and chemical blowdown requiring regular topping off. They requested quarterly public reporting on water usage.
  • Noise and Health: Multiple residents described low-frequency hum from data centers causing migraines, hearing loss, and cardiovascular stress, citing examples from Granbury, Texas. They also raised concerns about diesel generator emissions (VOCs, NOx, particulates) and potential cancer risks.
  • Property Values: Speakers feared the 24/7 industrial facility would devalue nearby homes, noting the property is adjacent to residential subdivisions and Old Settlers Park.
  • Noticing: Many residents reported learning about the proposal only days earlier via social media or community newsletters, not from city signage or mailed notices. One speaker noted a sign was found face-down on the property.
  • Alternatives: Some suggested commercial development (e.g., shopping center) or a gun range as preferable uses.
• Neutral/Positive Testimony: The president of the Kensington Neighborhood Association (adjacent to the existing Switch data center) described a positive relationship with the corporation, including advance notice of generator tests and community sponsorship.
• Item I3 (Protest Procedures): No public testimony.
• Item I4 (Driveway Spacing): No public testimony.

Discussion Items

• Proclamation: December 11, 2025 proclaimed as Sertoma Day, recognizing the club’s 50th anniversary and $750,000+ raised for speech and hearing health.
• General Services Presentation: Director Chad outlined the department’s achievements: 11 employees managing $390 million in active projects, maintaining 1.1 million square feet of facilities and a fleet of 1,840 vehicles/equipment worth $75 million. The fleet ranked #15 in the nation. Staff grew internal employees through certification programs (42 ASE certifications, 6 master technicians).
• H.3 & H.4 – Capital Improvements Plan Semi-Annual Reports:
  • Roadway Impact Fees: $1.05 million collected April-September 2025; $16.1 million total since inception. One offset credit of $1.7 million granted to Gulf RC Ventures for Joe DiMaggio Boulevard infrastructure.
  • Water/Wastewater Impact Fees: $4.8 million collected in FY2025. Average utility bill for 10,000 gallons water/6,000 gallons wastewater is $78.08, among the lowest in the region. Total connections nearing 39,000. Population within city limits estimated at 141,000.
• H.5 – Wholesale Water Agreement: Approved a 40-year wholesale water supply agreement with Fern Bluff MUD, including base charge of $27,443 and volume charge of $3.00 per thousand gallons.
• H.6 – West Transmission Main Valve Replacement: Awarded to Patin Construction, LLC for $1.4 million (under $2 million estimate) to install nine gate valves for improved system isolation.
• H.7 – Brushy Creek Regional Wastewater Interceptor: Approved interlocal agreement with Austin, Cedar Park, and Leander for cost allocation (Round Rock share 53.33%) for design of expansion/rehabilitation of a 60-inch wastewater line.
• H.8 – Kenney Fort Boulevard 24-inch Reuse Water Line Extension: Awarded to Cash Construction Company for $5.1 million (25% reimbursed by Bureau of Reclamation grant).
• H.9 – Quarterly Financial & Investment Report: Presented by Kevin. Sales tax increased 5.4% (3.2% excluding Dell). Property taxes at $91.2 million, near budget. Hotel occupancy tax decreased 3.8% (10% excluding Kalahari). Investment portfolio $549.1 million, yield 4.168% (benchmark 3.68%).
• H.10 – Investment Policy & Strategy: Updated annually; no material changes.
• H.11 – Williamson Central Appraisal District Board Votes: Allocated 205 votes: 103 to Lisa Berkman, 102 to John Lux.
• H.12 – FY2025-2026 Self-Funded Health Insurance Budget: Adopted $24.785 million budget. Claims costs exceeded projections in FY2025; staff plans to review plan design and premiums to ensure solvency.
• I.1 – Amendment No. 2 to FY2024-2025 Operating Budget: Approved (first reading) to cover overage in self-funded health insurance fund.
• I.2 – Rezoning to PUD No. 159 (Skybox Data Center): Extensive discussion. Staff presented details: 29.69 acres at 2601 E. Old Settlers Blvd, currently zoned LI. Proposed data center on northern parcel (Parcel 1) with closed-loop cooling, 500+ foot setback from homes, 80-foot landscape buffer (25-foot compatibility buffer with 8-foot wall), restricted uses, and building design standards. The existing SABE data center uses water equivalent to 12-15 single-family homes. The property would yield property tax revenue equivalent to over 500 homes while requiring minimal city services. Planning and Zoning Commission recommended approval unanimously.
• I.3 – Zoning Protest Procedures Amendment: Updated to reflect state law (House Bill) increasing protest threshold from 20% to 60% land area for residential increases, and allowing approval by simple majority. Approved on first reading; second reading dispensed.
• I.4 – Driveway Spacing Amendment: Changed minimum spacing from 200 to 250 feet for townhomes, multifamily, and non-residential developments. Approved on first reading; second reading dispensed.

Key Outcomes

• Consent Agenda (G.1-G.5): Approved unanimously (7-0).
• Resolutions H.1-H.12: All approved unanimously (7-0).
• Ordinance I.1 (Budget Amendment): Approved first reading (7-0); second reading required but not dispensed.
• Ordinance I.2 (Skybox Data Center Rezoning): Approved first reading (7-0); second reading required at a future meeting (likely January 2026).
• Ordinances I.3 (Protest Procedures) and I.4 (Driveway Spacing): Approved first reading and second reading dispensed (7-0 each).
• Next Steps: The second reading of the data center rezoning will be scheduled; staff will continue negotiations with Encore for power supply. The city will also update public noticing processes following resident feedback.