Title
Consider/Discuss/Act on an Ordinance Establishing Valuation Procedure for Small Right-of-Way Acquisitions
Summary
COUNCIL GOAL: Operational Excellence
(2.1: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: June 16, 2026
DEPARTMENT: Development Services / Engineering
CONTACT: Gary Graham, PE, Director of Engineering
Tracy Lund, PE, PH, Assistant Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Ordinance
ITEM SUMMARY:
• The City frequently acquires small amounts of right-of-way to support public infrastructure projects, including roadway, drainage, water, and wastewater improvements. In many cases, the estimated value of these property interests is relatively low.
• Current practice often involves obtaining professional appraisal services to support the City’s determination of market value prior to making an offer to a property owner. For smaller acquisitions, the cost of obtaining an appraisal can represent a significant portion of the value of the property interest being acquired and may unnecessarily delay project delivery.
• This ordinance authorizes the City to utilize valuation information derived from the Collin Central Appraisal District as an estimate of fair market value for right-of-way acquisitions estimated to be $20,000 or less.
• Adoption of this ordinance will reduce acquisition costs, improve efficiency, and expedite delivery of public infrastructure projects while continuing to ensure that property owners receive fair compensation for property interests acquired by the City.
BACKGROUND INFORMATION:
• Public infrastructure projects often require the acquisition of small strips of right-of-way. In many cases, these acquisitions involve property interests with relatively low market value. Requiring a full appraisal for each minor acquisition can increase project costs and extend project schedules.
• Similar valuation approaches are used by some Texas municipalities for low-value acquisitions where a full appraisal may not be necessary.
• This policy establishes a clear and consistent procedure for determining value for small acquisitions while preserving the City’s discretion to obtain independent appraisals when appropriate and maintaining compliance with applicable law and funding requirements.
FINANCIAL SUMMARY:
• Adoption of this ordinance is expected to reduce costs associated with right-of-way acquisition by eliminating the need for professional service appraisals for small acquisitions. Funding for right-of-way acquisition will continue to be provided through approved Capital Improvement Program (CIP) project budgets.
BOARD OR COMMISSION RECOMMENDATION:
• N/A