As a result of recent sanitary sewer modeling efforts on behalf of the North Texas Municipal Water District (NTMWD) along Cottonwood Creek, including additional input from the City of Allen, it became apparent that capacity may not exist within the trunk system owned by NTMWD to accommodate future development. The City contracted with Birkhoff, Hendricks, & Carter, L.L.P. to assist in the evaluation of a regional engineering analysis that includes the approximate 270-acre vacant property owned by the Howard Hughes Corporation and included the Town of Fairview.  As a result of the study, the need for a regional lift station to include flows from both the City of Allen and the Town of Fairview was identified and recommended.   Conversations with the Town of Fairview and NTMWD led to a three-way partnership that would divide the costs of the proposed project.

An alignment study was conducted and a route for the future gravity sanitary sewer main (to be owned and operated by Allen in Fairview) has now been determined and designed.  The route impacts the outer portions of four (4) parcels and requires the acquisition of permanent utility easements and temporary construction easements from land owned by the Petefish Family.  Conversations with the property owners has commenced, appraisals have been ordered, and staff will be ready soon to make an offer and negotiate sale.

The order of operations is as follows:

1. City staff receive appraisals from Pyles Whatley Appraisers (hired by City of Allen) prepared and customized for each parcel.
2. City staff transmits a written offer, in accordance with state law, to the property owner based on appraised value.
3. Property owner considers offer and provides a counter based on verifiable information the owner feels affects value.
4. If the City of Allen and the property owner(s) agree on purchase price, a real-estate sales contract is generated and executed (brought before Allen City Council if price exceeds $100,000).  Closing occurs at a title company and the City of Allen takes possession.
5. If the City of Allen and the property owner(s) cannot agree on purchase price, the City of Allen files for proceedings in eminent domain with the Collin County Court.
6. Eminent domain proceedings begin with the judge appointing special commissioners to hear both sides and derive fair compensation.  The entire process takes 4-6 months to complete.

This is only the land acquisition phase.  Detailed engineering must also be completed and bidding take place, prior to construction.  Given the length of time possibly involved, it is imperative to keep the acquisition of these easements on-track.

The North Texas Municipal Water District is tracking a very similar timeline, and it is expected that the landowner will receive written offers from NTMWD about the same time (for the lift station site and force main pipeline through the Town of Fairview and McKinney).

The existing project budget is sufficient to cover land acquisition expenses, and was prepared knowing land acquisition costs existed.

Staff recommends that the City Council adopt a Resolution determining the necessity for acquisition of land for the construction of Sloan Creek Sanitary Sewer Main; Providing for a last and final offer and authorization to purchase permanent utility and temporary construction easements; and authorizing the City Attorney to file proceedings in eminent domain to acquire such easements, if necessary.

I make a motion to adopt Resolution No.____________(R) determining the necessity for acquisition of land for the construction of Sloan Creek Sanitary Sewer Main; Providing for a last and final offer and authorization to purchase permanent utility and temporary construction easements; and authorizing the City Attorney to file proceedings in eminent domain to acquire such easements, if necessary.