Title
Consider/Discuss/Act on a Resolution Authorizing the Interim City Manager to Execute a License Agreement with Dallas Area Rapid Transit for the Construction of a Sanitary Sewer to Serve the Willow Wood Development and the Surrounding Area
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:
· 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.
· 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.
· 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 alternate routing.
· The alternate routing requires the crossing of a DART right of way, which necessitates the proposed license agreement.
· 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 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, thus avoiding a costly aerial sewer and the removal of several high quality trees.
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.
· The companion agreement is already signed by the developer and will be executed prior to the execution of this DART license agreement
FINANCIAL SUMMARY:
· The developer is responsible to pay an up-front contribution of $135,000 for the license agreement annual fee, from which the City will pay the fee for the agreement.
BOARD OR COMMISSION RECOMMENDATION:
· N/A