The City of Schertz identified a capital improvement project to construct a 12-inch water supply main to connect mains between Fred Couples and Eckhardt Road.  The main is an important piece of the City’s water infrastructure in the northern part of the City on the southeast side of IH 35.  It will provide a secondary feed to Cypress Point, The Parklands, The Parklands II, and Ackermann Subdivisions, and other development either in process or expected in the future – all of which are currently served by a single main on IH 35.

A portion of the needed redundant water main project was completed several years ago by the developer of the Homestead Subdivision (reimbursed by the City) from Fred Couples to Schwab Road.  In accordance with Resolution 24-R-98, the City entered into a similar agreement with the developer of the Ackermann Subdivision (Mustang Oaks, LLC) for them to construct the remaining segment Schwab Road to Eckhardt Road and be reimbursed for that work.  Part of that agreement stipulates that the City is responsible for acquisition of the easements necessary for construction and maintenance of the line.

City staff and the city’s consultant contacted the owner of the property across which the main is proposed and were made aware that the property is currently under contract with a developer and the terms of the contract do not allow the owner to consider any transaction related to the property, including any offer for acquisition of an easement.  A copy of the contract has not been made available to City staff or its agent.  Staff has met and communicated with the property owner and potential developer several times over the past months to discuss and consider various alignments and have been unable to come to timely agreement on the specific location of the necessary easement.

To move forward to satisfy the City’s agreement with Mustang Oaks and to have this important water supply main segment installed, it is necessary to acquire the easements.  Staff has identified the least intrusive route through the property and requests authorization by City Council to use the City’s power of eminent domain to condemn and acquire the permanent and temporary easement areas needed for the line.

The goal of Resolution 25-R-146 is authorization to use the power of eminent domain, as necessary, to acquire easements needed to complete the water supply main between Eckhardt Road and Schwab Road.  Staff will continue to make every effort possible to negotiate and acquire the easements without the need to initiate condemnation proceedings and will only exercise eminent domain powers if those efforts fail.

Currently a large area of the City including residential subdivisions Cypress Point, The Parklands, The Parklands II, and Ackermann are fed water from a single main along IH 35.  Construction of the supply main will provide redundancy in the area and will reduce the likelihood of shutdown for over 1,000 single family customers.  That is critical to the strategic objective of development and maintenance of the City's water infrastructure.

Staff recommends that Council approve Resolution 25-R-146 authorizing the use of the power of eminent domain to acquire easements for a water line to complete a supply main from Eckhardt Road to Schwab Road.

There is no direct fiscal impact of the authorization that is the subject of Resolution 25-R-146.  The project has an amount of $60,000 budgeted for acquisition of the easement (including purchase price and fees, acquisition consultant, and legal fees).  Legal fees will only be incurred if it does become necessary to initiate condemnation proceedings.  The water line project is eligible to be funded with impact fees which will be the source of additional funds if the budgeted amount is exceeded. 

Approve Resolution 25-R-146.