Title
Consider a memorandum/resolution authorizing the execution of an Easement Conveyance Agreement with BTM Holding, LLC to acquire additional permanent utility easement and temporary construction easement in exchange for two tracts totaling 0.3 acres for the Highway 195 Water Line and Ground Storage Tank Projects.
Body
DATE: October 21, 2025
TO: Kent Cagle, City Manager
FROM: Andrew Zagars, City Engineer
SUBJECT: Authorize the execution of an Easement Conveyance Agreement with BTM Holding, LLC for the Highway 195 Water Line and Ground Storage Tank Projects
BACKGROUND AND FINDINGS:
The 2025 Water and Wastewater Master Plan includes a project for the construction of a 1.5-million-gallon ground storage tank which will be located on a hill near Highway 195 and Tower Hill Lane. On January 21, 2025, City Council authorized the purchase of a 1.024-acre tract of land from Brightspeed of Texas, Inc., for the construction of the tank. Two small tracts within the 1.024-acre tract, with a total size of 0.3-acre, are not needed for the tank. These two tracts are adjacent to, and are surrounded by, a 177.645-acre tract owned by BTM Holding, LLC. Staff finds that these two tracts serve no public purpose, lack access to public roads, and cannot be used independently due to their shape, location, and small area.
In order to construct a necessary 24-inch watermain, associated with the Highway 195 Water Line Project, the City needs approximately 0.357-acre of additional permanent utility easement for a total of 1.783 acres and a temporary construction easement adjacent to an existing utility easement. The existing easement crosses the 177.645-acre tract owned by BTM Holding, LLC. Staff have negotiated BTM Holding, LLC, and determined that it is in the best interests to contract with each other to convey the new utility easement and a temporary construction easement in exchange for the two unusable tracts.
If approved, the City will deliver two special warranty deed for the two tracts discussed above conveying these properties to BTM Holding, LLC. As required by Section 145 of the City Charter, if authorized, the conveyance shall not be effective until thirty (30) days have elapsed from the date of this resolution.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to all State and City policies. Texas Local Government Code section 272.001(b)(1) authorizes the City to forgo the competitive bidding process and convey certain small sections of land to the abutting property owners for less than fair market value.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
N/A
Is this a one-time or recurring revenue/expenditure?
N/A
Is this revenue/expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
N/A
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager, or designee, to execute the Easement Conveyance Agreement with BTM Holding, LLC, in connection with the Highway 195 Water Line and Ground Storage Tank Projects and furthermore, authorize the City Manager, or designee, to execute and deliver all contracts, deeds, deeds of trust, filing, closing statements, and any and all additional documents necessary to complete the conveyance in accordance with this resolution.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Easement Conveyance Agreement
Utility Easement Agreement
Special Warranty Deed - 0.090 Acres
Special Warranty Deed - 0.211 Acres
Presentation