The Town of Fountain Hills has identified significant deterioration to a drainage pipe along Panorama Drive that has the potential to cause serious damage to sidewalks and driveways along the street.

Late last month the town closed a portion of the sidewalk along Panorama near Diamante Drive. Town Public Works Director Justin Weldy said a sinkhole was discovered along the sidewalk caused by a collapse of the drainage pipe. A barricaded pedestrian walkway was built in the street around the closed area.

Weldy said there was a previous sinkhole along Panorama Drive near Saguaro Blvd. and after that was repaired a contractor ran a video camera through the drainage line along the street.

“We found the pipe in very poor condition,” Weldy said.

There is a 48-inch to 60-inch underground drainage pipe that runs about 3,000 feet from Saguaro Blvd. to Panorama Wash on the south side of El Lago Blvd.

Weldy said that with this second failure of the pipe staff has determined that the entire line of more than a half-mile should be replaced.

The pipe is galvanized steel and has been in the ground between 30 and 40 years, according to Weldy. He said staff had been led to believe that the pipe was concrete.

The replacement cost will be put into the capital improvement plan for the next budget year. Weldy said they do not know a cost at this point, but he described it as “substantial.”

In the meantime the drain pipe under the newest sinkhole will be repaired, Weldy said.