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EASEMENT E-1314-14: CONSIDERATION OF A PERMANENT SANITARY SEWER EASEMENT FROM JAMES HARDWICK IN THE AMOUNT OF $56,400 FOR THE SOUTHEAST BISHOP INTERCEPTOR PROJECT.
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BACKGROUND: The SE Bishop Interceptor project (WW0267) is located in southeast Norman (map attached). On March 23, 2004, Norman Utilities Authority (NUA) approved Contract K-0304-147 with Chiang, Patel & Yerby, Inc. (CP&Y) for design of the project. Phase 1 was completed in 2004; Phase 2, Section 1 in January 2007; Phase 2, Sections 2A and 2B on July 15, 2013. The final phase of the SE Bishop Interceptor project is known as Phase 2, Section 2C and consists of approximately 5,000 LF of 24-inch sewer located south of Highway 9 between the former Saxon Publishing facility and Classen Boulevard.
Obligated interceptor needs, serving existing customers and contractual obligations as of August 2001, are funded by the Sewer Sales Tax (SST). Enlargement of interceptors to serve full build out (FBO) needs under the Norman 2025 Land Use and Transportation Plan (2025 Plan) are funded by the Sewer Excise Tax (SET).
Permanent easements allow for installation and maintenance of the public sewer line. For large diameter sewers such as this project, additional temporary construction easements parallel to the permanent easements are required only during the time construction is in progress. Several easements, both permanent and temporary, will be needed to complete the final project phase. Temporary easements are not filed with the County, but expire upon completion of construction.
DISCUSSION: Staff desires to acquire two (2) permanent sanitary sewer easements and two (2) temporary construction easements along two parcels where the former Perfect Swing recreational center is located; both parcels are owned by James Hardwick.
The permanent easement area totals 27,630 square feet or 0.63 acres. Negotiations to acquire the needed easements have been ongoing for several months. Staff initially requested donation of the easements. The owner requested payment of the fair market value. The initial appraisal of the Hardwick property was based on the current zoning of the property as both commercial and residential. The appraised value totaled $92,500. Although a portion of the property is currently zoned residential, the Norman 2025 Plan shows the entire property as commercial. Had the property been appraised as entirely commercial property, the value of the easements would have totaled $154,728. The negotiated price for all easements is $120,000.
Funding for replacement of the existing sewer interceptor is pro-rated based on the cross-sectional area of the obligated pipe diameter versus the cross-sectional area for the FBO pipe diameter. The funding for Section 2C of the SE Bishop Interceptor is 25% SST and 75% SET based on an obligated diameter of 12 inches and a FBO diameter of 24 inches. Thus, the total easement cost of $120,000 is pro-rated $90,000 to the SET and $30,000 to the SST. The following describes the funding for the easements being acquired:
Permanent sewer easement E-1314-11 consists of 14,695 SF or 53% of the total of $120,000 for a value of $63,600. Funding is prorated between the SST ($15,900) and the SET ($47,700) as noted above
Temporary construction easements E-1314-12 and E1314-13 are donated.
Permanent sewer easement E-1314-14 consists of 12,935 SF or 47% of the total of $120,000 for a value of $56,400. Funding is prorated between the SST ($14,100) and the SET ($42,300) as noted above.
The Fiscal Year Ending 2014 (FYE14) budget for WW0267 includes an unencumbered balance of $92,034 for SST, Land/ROW (323-9048-432.60-01) and $88,742 for SET, Land/ROW (322-9048-432.60-01). As noted above, the total easement cost of $120,000 is pro-rated $90,000 to the SET and $30,000 to the SST. To fully fund the easement acquisitions, it is necessary to transfer $1,258 from SET, Construction (322-9048-432.61-01) to SET, Land/ROW (322-9048-432.60-01).
RECOMMENDATION: Staff recommends acceptance and filing of permanent sewer easement E-1314-14 and payment of $56,400 to the property owner James Hardwick.