AGENDA CAPTION:
Title
Consider approval of Resolution 2021-03R, approving a Developer Participation Agreement providing for the City to participate in the cost of extending wastewater infrastructure from the Trace Subdivision to the Posey Business Park area in the amount of $850,248; authorizing the City Manager or his designee, to execute said agreement; and declaring an effective date.
Body
Meeting date: January 5, 2021
Department: Engineering & CIP
Amount & Source of Funding
Funds Required: $850,247.85
Account Number: IMPWW
Funds Available: $4,889,144.36
Account Name: Impact Fees Wastewater
Fiscal Note:
Prior Council Action: July 5, 2017 - Presentation and Direction to Staff
City Council Strategic Initiative: [Please select from the dropdown menu below]
Workforce Development
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Diverse Local Economic Environment
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Wastewater Master Plan
Background Information:
The Posey Road area between Interstate Highway 35 and Hunter Road is developing as an Industrial Business Park with City water service and onsite septic systems. The area is anticipated to be annexed with further development of the tracts of land. It was agreed with property owner participation the extension of City wastewater service would benefit both the business park and the City for continued growth in this area. This developer participation agreement provides for a wastewater extension from the Trace Subdivision to the Posey Business Park area sizing lines for future extensions and sufficient capacity.
The City has seen an increase in development interest in the far southwest portion of the City centered at Posey Road and IH-35. The Texas State Bus Barn was constructed, the relocation of the Ingram Ready Mix Plant, and the development of the Trace Subdivision. There is increased interest for the further development of the Posey Road Industrial Park and the Posey Business Park. The water infrastructure exists in the area to support future development, however the wastewater infrastructure is limited.
The Trace Subdivision with City participation included a regional lift station with capacity to serve this wastewater service area. The extension of this infrastructure across IH-35 and to Posey Road is significant and impacts the development of these areas. At a landowner’s request the City facilitated a meeting of landowners, who lie within the wastewater service area, to discuss the possibility of a participation agreement for the funding of design and construction of wastewater facilities.
The overall construction cost to extend wastewater facilities to the service area is approximately $1,359,220.00. The Warren and Allen Properties will participate in amount of $508,972.15 associated with their wastewater capacity needs. The City Participation will be in the amount of $850,247.85 and will be funded by Wastewater Impact Fees. The agreement includes a cost breakdown and exhibit of the area to be served by this extension.
This will open up a desired area for employment, make available additional shovel-ready sites and avoid the use of septic systems for development.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval.