Item 4E AudioSOUTHLAKE
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ITEM 4E
Declare Aqua Texas property as
surplus
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RECOMMENDATION
Declare Aqua Texas property
as surplus
®SOUTHLAKE
Staff recommends that the city council declare the Aqua Texas Property as surplus.
FA
Aqua Texas Properties
Background:
— 2004 Settlement agreement provisions
• Southlake purchased Indian Creek and
Lakewood Ridge water system assets
for $60,000
• Southlake pays Aqua Texas to continue
providing water for five years
• Environmental assessment
• Southlake takes possession of the well
site properties
U SOUTHLAKE
In 2004 the Southlake entered in to a settlement agreement with Aqua Texas to
purchase the water systems in the Indian Creek and Lakewood Ridge subdivisions
for the sum of $60,000.00. The agreement also provided that the city would pay
Aqua Texas to continue operating the well sites and providing water in the 2 for a
period of 5 years, after which the 2 parties would share the cost of an environmental
assessment of the property and deeds would be conveyed to the city. That process
is underway and the city will soon have ownership of the 2 parcels.
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This aerial map shows the location to the well site properties. As you can see,
these sites small parcels at the back corner of, and adjacent to 4 neighbors. The
soda Ridge property is 7,500 square feet and the Homestead property is 2,500
square feet.
Aqua Texas Properties
Property Condition:
• Production capacity less than 25 -30 GPM
• No viable Chlorination equipment
• Municipal well production capacity should
be 600 -800 GPM
• Well property locations not suited for
commercial water production sites
U SOUTHLAKE
The 2004 agreement states the rated production capacity of the well sites between
25 and 30 GPM for each location. Municipal wells are expected to operate in the
range of 600 to 800 GPM. The disinfection equipment in not functional and the
storage capacity at both site combined is less than 100,000 gallons. Because these
sites are located in residential backyards, commercial use of these properties isn't
appropriate.
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Aqua Texas Properties
Recommendation:
— Estimated cost to clear property and plug
wells - $20,000
— Based on adjacent land values
• 4429 Soda Ridge (0.172 acre) - $14,000
• 4552 Homestead (0.074 acre) - $6,000
Declare Aqua Texas property as surplus
and offer for sale as allowed by law
U SOUTHLAKE
It will cost about $8,000 per per site to cap and plug the wells and an additional
$2,000 to remove the above ground buildings, storage and pressure tanks and
fencing. Based on the 2010 taxable land value of the 4 adjacent properties to each
site, they have the theoretical value of $20,000 combined. Staff recommends that
the city council declare these sites as surplus property and allow them to be sold as
allowed by law.
A
The sale of these properties links to the city's strategy map relative to the focus
areas of Performance Management and Service Delivery. The specific corporate
objective that is met by the sale is: Improve performance of delivery and
operational processes
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SOUTHLAKE
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Questions?
Bob Price
Integrity (817) 748 -8097
Innovation
Accountability
Commitment
to Excellence
Teamwork
If you have any questions regarding this item, contact Bob Price at .....
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