Spring Hill approves sewer expansion, wastewater property purchase and cooperative deal with Johnson County Wastewater

Spring Hill's council voted unanimously on a package of measures to expand the city's sewer system, authorize engineering and easement payments, close on property for a new wastewater treatment facility and enter a cooperative agreement with Johnson County Wastewater (JCW) that would bring customers and revenue into the city's sewer fund.

Council authorized staff to complete purchase closing and sign closing documents for a parcel intended for a new wastewater treatment facility. City staff reported the purchase price, prior to closing costs, as $1,610,000 for approximately 161.02 acres; the land will be purchased from the wastewater fund, which had a reported balance of about $8.4 million. Staff said final closing costs would be confirmed at closing and were expected to be modest.

On sewer extensions, the council approved temporary construction and permanent sanitary sewer easements for the Northeast Sewer expansion project and corrected a previously recorded reimbursement amount (a clerical correction of $5 on one easement). The council also accepted an additional easement, moving to nine of 11 needed easements for that project.

For the Northwest Sewer expansion, the council approved a task order with engineering firm Burns & McDonnell for design services. Staff said Burns & McDonnell provided detailed proposals, suggested ways to speed utility coordination and easement acquisition, and was the lowest-cost proposer. The design work will be funded from the city's sewer fund; future projects may be reimbursed from bonds or other financing when those steps occur.

The council also approved a cooperative agreement with the Board of County Commissioners of Johnson County under which Spring Hill would accept and treat wastewater from two county-served areas: one in the Nottingham Creek subdivision (which would transfer collection system ownership and maintenance to Spring Hill) and another low-pressure service area where JCW would retain ownership of the low-pressure collection system but pay Spring Hill for treatment. The agreement included a one-time $2,000,000 sewer connection fee to Spring Hill and an immediate customer base of roughly 400 homes (about 350 where the city would own collection and treat, and about 50 where the county would retain the low-pressure system and pay Spring Hill treatment fees). Staff estimated the additional revenue at about $200,000 per year.

Council members and staff described the JCW agreement as a rare opportunity to add customers and revenue immediately rather than waiting years for development-driven connections. City staff said the Northwest expansion work could serve substantial acreage west of Hedgeline and south-to-north areas and that design and construction timing aim to advance quickly so Johnson County can retire aging lift stations that would otherwise require major repairs.

All motions related to these items carried unanimously (recorded votes show 5-0-0). Councilmembers asked staff to coordinate resident notification for billing changes in Nottingham Creek and to accelerate design schedules where possible; staff said they would provide further updates on easement payments, closing costs and project timelines.

No litigation or additional obligations were reported at the meeting; councilmembers emphasized this is a strategic infrastructure investment to expand capacity and net revenue for the sewer enterprise fund.