Title
Consider and take action on a resolution authorizing a water capital recovery fee credit agreement with West FM 517, LTD., a Texas limited partnership, for the construction of an oversized water main associated with the Pedregal Subdivision, consistent with the City’s Master Water Plan (Executive Director of Development Services)
Background:
In January 2024, City Council adopted a water capital recovery fee ordinance. The Developer of the Pedregal Subdivision - Section 4, West FM 517, LTD., a Texas limited partnership, wishes to enter into a Development Agreement (DA) whereby the City shall award Impact Fee Credit to the Developer equal to the costs associated with the design and construction of a 24” water main along Landing Blvd. as shown on the City’s Master Water Plan and related recommended CIP plan.
This development is estimated to have approximately 94 single family homes at buildout. This development does not have non-residential areas. Assuming 94 single family homes are constructed, this would represent $852,956 in Water Capital Recovery Fees (CRF) in which the City could expect to collect by the time this development is built out as each lot would be assessed a $9,074 Water CRF for the ¾” water meter needed for domestic service.
The cost for upsizing the water main on Landing Blvd from 12” to 24” is $797,784.
This DA will require the Developer to construct the 24” water main on Landing Blvd as the development progresses and as a result will allow for Water CRF Credits to be issued. The Developer wishes to use this credit against the residential properties which will mean that as homes are developed and sold in this area the Water CRFs will be waived. Based on the total lot count anticipated for Phase 4, it is anticipated that all credit will be issued prior to all of the lots being developed. Once the full credit is issued (approximately 87.86 credits), the City would impose fees on the remaining lots as the permits are pulled.
Staff recommends approval of this agreement.
Attachments:
1. Proposed Resolution
2. Exhibit A - Pedregal Subdivision Development Agreement
FUNDING
{X} NOT APPLICABLE
STRATEGIC PLANNING
{ X } Addresses Strategic Planning Critical Success Factor #1 - Develop & Maintain our Infrastructure