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Item 4F AudioSOUTHLAKE Item 4F Ordinance No. 1019 Lh N4 40 I I Sale of Property Item 4F First reading of ordinance 1019 approving the sale of City property RECOMMENDATION Approve Ordinance No. 1019, 1St Reading, Authorize the Sale of City -owned property at 4429 Soda Ridge Road in the amount of $9,125 Staff recommends that the city council Approve Ordinance No. 1019, 1St Reading, Authorize the Sale of City -owned property at 4429 Soda Ridge Road in the amount of $9,125 VA Aqua Texas Property Background: • Southlake — purchased Indian Creek and Lakewood Ridge water system assets — Purchase Price - $60,000 in 2005 • March 1, 2011 - City Council declared properties as surplus • Bid of $9,125 - Soda Ridge property by deadline of Sept. 23 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. That agreement included the transfer of ownership of two small properties containing the water systems' wells. Because these sites have no value to the Southlake water system the City Council declared these properties surplus allowing staff to offer them for sale. One offer on the Soda Ridge property was received by the closing date, September 23rd. While the offer is considerably less than the appraised value of $16,000 it is enough to offset the cost to cap the two remaining wells and clean the property at the Homestead Site. 3 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. M This slide shows the property for sale outlined in red on the upper right and the access easement to be abandoned by the same ordinance. The owner of the property labeled 4427 is the only bidder on this property. 5 This photo shows well #1, the Chlorination shed and the pressure tank. Pressure tanks are commonly used in private wells to maintain constant pressure, simulating elevated storage tanks public water systems. A This photo shows the second well in the foreground and the storage tank on the left and storage tank and chlorine shed on the right. 7 Aqua Texas Property Property Condition: • Well production capacity less than 25 -30 GPM • No viable chlorination equipment • Single storage tank — approximately 3,000 gal • Single pressure tank Included in Sale: • Ordinance #1019 also abandons 20'X200' access easement to the property 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 8,000 gallons. Because these sites are located in residential backyards, commercial use of these properties isn't appropriate. In addition to the sale of the property, Ordinance 1019 also abandons the access easement to the site. 9 Aqua Texas Property Financial Consideration: • Estimated cost to clear property and plug both wells - $10,000/ site • Denton County Appraised Value 4429 Soda Ridge (0.172 acre) - $16,000 Recommendation: • Approve Ordinance No. 1019, 1st Reading, Authorize the sale of city -owned property at 4429 Soda Ridge Road in the amount of $9,125 It will cost about $4,000 per per well to cap and plug the wells and an additional $1,000 -2,000 to remove the above ground buildings, storage and pressure tanks and fencing. Denton County records indicate an appraised value of $16,000, however in it's present condition , it represents a greater liability than the offer. Staff recommends Approval of Ordinance No. 1019, 1 st Reading, Authorizing the Sale of City -owned property at 4429 Soda Ridge Road in the amount of $9,125 0 The sale of this property 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 10 • • &li ma The City of Southlake provides municipal services that support • the highest quality of • life for our residents and businesses. We do this by delivering outstanding unrivaled quality in everything that we do. value and �ieve - • the C2 Provide travel C3 Provide attractiv Attract and keep highest convenience and unique spaces businesses to drive top- CS Promote a opportunities for standards of within City and for enjoyment of mic and sustainable Fna safety and region personal interests onomic environment partnerships and volunteer involvement security 61 Achieve B2 Collaborate with B3 Enhance resident B4 Provide best select partners to quality of life and high quality er Improve performance 66 optimize " -in -class status in all City implement service business customer tY disciplines solutions sustainability through service of delivery and use of� operational technology processes tourism F1 Adhere to financial F2 Invest to provide and F3 Achieve fiscal management maintain high quality wellness F4 Establish and maintain effectiv principles and budget public assets standards internal controls \ 1" L1 Ensure our L2 Enhance L3 Attract, L4 Recognize L5 Empower people understand leadership develop and and retain a skilled informed decisio capabilities to h deliver results workforce making at all lev in the organizati The sale of this property 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 10 SOUTHLAKE If you have any questions regarding this item, contact Bob Price at 748 -8097 11