(a) Oversize mains. The city will participate in the cost of any oversize main the developer is required to construct, by purchasing the excess capacity in the main at the oversize cost of the main. The director’s determination of the size of main necessary to adequately serve the subdivision, and the necessary degree of oversizing, is final. Oversize cost will be based upon the evaluated cost tables of Section 49-18.11 and will be paid after acceptance of the oversize main by the city.
(b) On-site extensions. The developer must construct all new on-site extensions necessary to adequately serve the development, subject to applicable city payments for participation in oversize cost under Subsection (a). Construction of an on-site extension shall be pursuant to a private development contract approved by the director and in accordance with Chapter 212, Subchapter C, Texas Local Government Code, as amended.
(c) Off-site extensions. The following rules govern the installation of and city participation in off- site extensions required to be constructed by a developer in order to adequately serve the development:
(1) The developer shall construct any new off-site extension necessary to adequately serve the development, if the city or another developer has not already commenced design or construction of the extension in connection with another development or project, subject to applicable city payments for participation in oversize cost under Subsection (a).
(2) Construction of an off-site extension shall be pursuant to a private development contract approved by the director and in accordance with Chapter 212, Subchapter C, Texas Local Government Code, as amended. The off-site extension construction may be included as a part of any private development contract for construction of on-site extensions or other infrastructure within the development, provided the rules of this article are complied with. The city will participate in the cost of the off-site extension by purchasing the extension, after completion and acceptance by the city, for the total evaluated cost of the extension. City payment will be made in the manner provided in this subsection.
(3) The city will make payment for purchase of the off-site extension based upon new connections to the extension, at the applicable rate stated in Section 49-18.15(a). The developer or other person entitled to payment under Subsection (c)(5) must request payment in writing, and provide addresses and lot and block numbers for new connections, on a semi-annual basis or on such other basis as prescribed by the director in order to better facilitate proper payment. However, if the development requiring the off-site extension and the surrounding property through which the extension is constructed are, at completion of construction, fully developed in a manner consistent with its zoning so that all or substantially all of the new connections to the extension capable of being made are actually made and no additional new connections are expected or required, the full amount of city payment owed to the developer will be made upon acceptance of the extension instead of the rated payment method described above.
(4) City payments under Subsection (c)(3) may be made to:
(A) the original developer constructing the extension;
(B) the original developer’s legal successor by merger or other proceedings, if the developer is a corporation, partnership or other business entity;
(C) the original developer’s heirs or designated beneficiaries legally established by a validly probated will or duly created estate administration;
(D) an assignee of the original developer, pursuant to a written, notarized agreement transferring the right to a payment which is executed by the original developer, legal successor, heir, beneficiary or their authorized agent and which is filed with the director after execution; or
(E) if after appropriate invest-igation the director determines that no one else exists who could claim a right to city payments under Subsections (c)(4)(A) through (c)(4)(D), any other person the director determines would have a right to receive city payments; provided, however, that if no person makes a claim for city payments owed under this subsection within 20 years after acceptance of the off-site extension by the city, the funds will be considered abandoned and will be placed in the department’s general operating fund. The director is authorized to promulgate procedures, not in conflict with this chapter or other laws, for handling claims under this Subsection (c)(4).
(5) City payments for off-site extensions will be processed in accordance with Subsections (h) and (i) of this section, subject to any other applicable credits or charges prescribed in this chapter.
(d) Existing mains. The developer may utilize any existing main that may be available to adequately serve a proposed development in the design and construction of extensions subject to the payment of the acreage fee described in Subsection (e) of this section, if the director determines that:
(1) the existing main is not substandard as to size or condition; and
(2) the main is capable of adequately serving the development and not impractical to use for engineering or financial reasons; otherwise, the mains shall not be used or shall be replaced as required in Subsection (f).
(e) Acreage fee. A developer utilizing an existing main under this section shall be charged an acreage fee if the existing main utilized was previously constructed by a developer entitled to city participation under this section. The amount of the fee shall be as prescribed in Section 49-18.10(d), and shall be paid upon completion of final design of the proposed system serving the development. All acreage fees collected shall be deposited to the credit of the appropriate city fund, and shall be used only for the purpose of reimbursing developers as required under this section.
(f) Replacement mains. The following rules govern the construction of a replacement main:
(1) The developer shall replace every existing substandard main serving the development with a main of adequate size and condition for permanent service, as determined by the director, subject to applicable city participation under this section.
(2) The method of city participation in the cost of replacement of an off-site main within the city shall be governed by the rules for off-site extensions in Subsection (c).
(g) Trunk or transmission mains. If platted property abuts or fronts on an existing water transmission or trunk wastewater main and connection to the main is not permitted by the director, the developer will not be charged for the existing trunk or transmission main, but may still be required to construct another main to adequately serve the development. City participation in the cost of the alternate main shall be governed by the applicable rules of Subsections (a) through (c) of this section.
(h) Duplicate mains. Subject to the rules of Subsections (d) and (e) of this section, if more than one existing water or wastewater main fronts, abuts or lies within a development, the director shall determine which existing main or mains the developer shall be allowed to connect to, if any.
(i) City payments and other charges offset. The director shall offset any charges payable by developers under this chapter, except charges for retail use of the water or wastewater system, against city payments owed to a developer. If charges exceed city payments, payment must be made to the city prior to commencement of service. If city payments exceed charges the city will make payment upon acceptance of the system by the city, subject to the method of payment for off-site extensions described in Subsection (c)(3); provided, however, that no city payment under this article shall exceed 30 percent of the total private development contract price. Where the city’s participation exceeds $10,000, the director may waive the 30 percent limitation if the director chooses, in the director’s sole discretion, to advertise the construction for competitive bids in accordance with state law. Charges paid to the city, if any, go into the department’s operating fund or into the trust fund, where applicable.
(j) Disbursement of funds. Without additional city council approval, the director of finance is authorized to encumber and allocate funds from the appropriate water and wastewater system improvement fund and to issue checks or warrants from the proper encumbrance out of that fund for the purpose of making payments under this section, upon certification from the director that the developer has met all the applicable requirements of this article and that the amount of the payment accurately reflects the amount due the developer under this section.
(k) No limitation on city. Nothing in this section shall be construed to restrict the city’s authority to construct capital improvements for the benefit of development or the citizens of the city. (Ord. Nos. 19201; 19526; 19622; 20215; 20653; 29645)