Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Non-Exclusive Revocable License Agreement with Encore Wire Corporation to Grant Permission to Construct, Install, and Maintain One Private Irrigation Line and One Data Conduit Line that will Encroach the Area Commonly known as South Airport Drive
Summary
COUNCIL GOAL: OPERATIONAL EXCELLENCE
(2.1: Balance available resources to accommodate the growth
and maintenance needs of the city.)
MEETING DATE: April 7, 2026
DEPARTMENT: Public Works
CONTACT: Ryan Gillingham, Director of Public Works
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute a revocable license agreement with Encore Wire Corporation to install private irrigation and data conduit lines within the City’s South Airport Drive right of way, subject to full compliance with City codes and permitting requirements.
• Agreement is revocable, with an initial one-year term and automatic annual renewals, and requires Encore Wire to bear all costs, maintenance, relocation, and liability associated with the encroachment.
• Includes indemnification and hold harmless provisions protecting the City, and allows the City to require removal or relocation of improvements at the applicant’s expense if needed for public use.
BACKGROUND INFORMATION:
• Encore Wire Corporation owns property on both sides of South Airport Drive in McKinney, with the City controlling the right of way that separates the two sites. The company has requested permission to install an irrigation line and data conduit that cross beneath the roadway to connect its facilities.
• City staff reviewed the request and supports approval through a revocable license agreement, which is the City’s standard mechanism for allowing private encroachments within public right of way. The agreement ensures that the improvements remain subordinate to the City’s use of the right of way and do not create long-term obligations or liabilities for the City.
FINANCIAL SUMMARY:
• License fee structure includes:
o $1.50 per linear foot for underground lines
o $25.00 per square foot for above ground equipment
o $1,000 per street or alley crossing
• Total annual fee is determined by the City based on installed infrastructure and increases by 3 percent annually upon renewal.
• Encore Wire is responsible for all costs associated with installation, maintenance, relocation, and removal, resulting in no financial liability to the City.
BOARD OR COMMISSION RECOMMENDATION:
• N/A