Council approves engineering work authorization for Deetz/Elkhorn waterline; city to lead design

Fair Oaks Ranch — The City Council approved a resolution on Jan. 15 authorizing execution of a work authorization with Pape Dawson Consulting Engineers LLC for engineering services on the Deetz/Elkhorn waterline project.

Public Works Director Grant Watanabe explained the project arose from an agreement with AD Acquisitions LLC, the developer of an approximately 80‑acre parcel in the Corley tract. The project would install a new 12‑inch main roughly 4,565 feet from the Elmo Davis water plant to the southwest corner of the Corley tract. Staff said the engineering fee totals $156,809; under the 75%/25% split the city's share is about $117,000 and the developer's share about $39,000. Construction was estimated at about $1,800,000 (city share $1,335,000; developer $450,000). Under the amended utility service agreement, the city will lead design and construction; the developer must pay its cost share for design within 15 days of executing the agreement and pay its construction cost share within 15 days of the city's determination of the apparent low bidder.

Council asked what happens if the developer fails to pay; staff said the agreement could be terminated and the council could later decide whether to fund the work entirely at city cost prior to awarding the construction contract. A motion to authorize the work authorization and an expenditure of required funds up to $117,606.75 (the city’s share as recorded in the motion) was approved by voice vote.

Why it matters: the waterline is sized to serve multiple eastern parcels beyond the developer’s property and the city’s choice to lead design reduces the risk of needing to trench through newly reconstructed roads later.

Next steps: staff will proceed with design, joint bid the waterline with the road reconstruction project, and return with procurement documents and final construction estimates prior to contract award.