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Consider/Discuss/Act on a Resolution Authorizing the Interim City Manager to Enter into a Facilities Agreement with McKinney Partners 306, LP Regarding the Provision of Sanitary Sewer Serving the Willow Wood Development
Summary
COUNCIL GOAL: Direction for Strategic Growth
MEETING DATE: May 5, 2015
DEPARTMENT: Development Services / Engineering
CONTACT: Michael Hebert, PE, Assistant Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
· Approval of the Resolution
ITEM SUMMARY:
· A companion item, which is an agreement with DART regarding the sewer line discussed herein, is included on this agenda.
· In 2013, the City of McKinney entered into an agreement regarding the development of the proposed Willow Wood subdivision. That agreement does not require modification due to this proposed agreement or the DART agreement.
· The Willow Wood development is located east of State Highway 5 near the intersection of SH 5 and FM 543 as shown on the attached exhibit.
· The original sewer plan for the development contemplated an aerial crossing of the East Fork of the Trinity River to serve the development and the surrounding area.
· This aerial crossing would be very costly for the developer to construct and for the City to maintain. The creek crossing and the pipe leading to it would also have required the removal of several large diameter trees which can be preserved using an alternative routing.
· The alternative routing requires the crossing of a DART right of way, which necessitates a license agreement with DART.
· There are costs and stipulations included in the license agreement required by DART.
· These include an annual maintenance fee which starts at $1,800 per year, increasing with inflation.
· The developer has agreed to participate in paying the first 50 years of these costs, which was calculated to have a present worth value of approximately $135,000.
· Since other developments besides Willow Wood will utilize this line in the future, Staff recommends the 50-year period instead of a lifetime fee, which would be difficult to accurately assess and not be comparable to the developer's use of the line.
· The agreement also obligates the developer to contribute $30,000 towards the construction of a future sewage metering station to be located as shown on the attached exhibit.
· The City of McKinney has an existing agreement with the City of Melissa to utilize the Clemmon's Creek Sewer Interceptor, shown on the attached exhibit.
· The sewer from Willow Wood can connect to the Clemmon's Creek line if the flow from the development can be metered or determined by some other means.
· The Melissa agreement requires McKinney to pay a proportionate share of the maintenance of the sewer based on each city's flow into the sewer.
· Sewage flow is generally measured with meters, but staff has coordinated with the City Engineer for the City of Melissa to develop a short-term alternative method to determine the cost split for maintenance of the Clemmon's Creek Sewer Interceptor to avoid construction of a metering station south of the Willow Wood development.
· Thus, the metering station can be deferred, preferably waiting until NTMWD accepts maintenance of the Clemmon's Creek Interceptor.
· At that time, NTMWD may participate in the construction of (or construct) the new metering station at the ETJ limit between Melissa and McKinney, where the metering station should be ultimately located.
· The savings of not having to maintain or replace an aerial crossing in the future will offset any future City costs due to this agreement.
BACKGROUND INFORMATION:
· A companion agreement with the developer of the Willow Wood subdivision is on this agenda, obligating the developer to pay this cost and the cost for the construction of a sewage metering station.
FINANCIAL SUMMARY:
· The developer is responsible to pay $135,000 for the license agreement annual fee and $30,000 for a portion of the metering station construction costs.
· This Resolution authorizes the creation of a CIP project FA 4406 to serve as a placeholder for the $30,000 contribution for the Clemmon's Creek metering station construction.
BOARD OR COMMISSION RECOMMENDATION:
· N/A