Posting Language
Title
Authorize negotiation and execution of a cost participation agreement with Z Modular for the City to reimburse the developer an amount not to exceed $4,500,000 for design and construction costs associated with oversizing wastewater improvements related to Service Extension Request No. 4999R3 that will provide wastewater service to a proposed mixed-use development in the City’s extraterritorial jurisdiction located at 7308 N FM 973 near the intersection with State Highway 130. Funding: $4,500,000 is available in the Capital Budget of Austin Water.
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Lead Department
Austin Water.
Fiscal Note
$4,500,000 is available in the Capital Budget of Austin Water.
For More Information:
Inquiries should be directed to Vicky Addie, Program Coordinator, 512-972-0332, or Vicky.Addie@austintexas.gov.
Council Committee, Boards and Commission Action:
November 10, 2026 - To be reviewed by the Water and Wastewater Commission.
Additional Backup Information:
The Winding Trails East and West project consists of approximately 260 acres of land located at 7308 N FM 973 near the intersection with State Highway 130 (Property). The Property is located entirely within the City’s extraterritorial jurisdiction, the Impact Fee Boundary, Austin Water’s service area, the Desired Development Zone, and the Decker Creek Watershed. A map of the Property location is provided.
Z Modular (Applicant) is proposing to develop approximately 1,254 multi-family units, 195,000 sq. ft. of office space, 205,000 sq. ft. of retail space, 87,500 sq. ft. of restaurant space, a 16,500 sq. ft event center, 115 hotel rooms, and 14 acres of space dedicated for sports fields. The Applicant requested that the City provide wastewater utility service to the Property as proposed in Service Extension Request (SER) No. 4999R3. Austin Water will provide retail water service to the Property as proposed in SER No. 4998R3.
In accordance with City Code Chapter 25-9 (Water and Wastewater), the City has asked the Applicant to oversize the proposed lift station, force main, and downstream gravity main to serve additional properties within the Decker Creek drainage basin consistent with the City’s long-range planning goals for this area. If approved by Council, the City will cost participate in this construction project only to the extent of the City’s proportionate share of the oversized wastewater improvements.
The proposed oversized improvements include construction of:
• approximately 715 feet of 30-inch gravity wastewater interceptor along Decker Lake Road;
• a 2,800-gpm lift station located south of Decker Creek near State Highway 130; and
• approximately 12,350 feet of force main from the lift station and extending west along Decker Lake Road to the 30-inch gravity wastewater interceptor.
The City will reimburse the Applicant for an overall total amount not to exceed $4,500,000 for hard costs and soft costs. Hard costs include, but are not limited to, construction and materials. Soft costs include, but are not limited to, preliminary engineering reports, surveying, geotechnical studies, design, and project management. The City’s cost participation by project component is as follows:
• For costs of the 30-inch gravity wastewater interceptor (the minimum pipe diameter of 18-inches required to serve the Property to an oversized 30-inch) and appurtenances, the City’s maximum participation consists of: (1) hard costs, in an amount not to exceed 40% of the hard costs of the 30-inch gravity wastewater main and appurtenances, and (2) soft costs, in an amount not to exceed 15% of the City’s hard cost participation amount.
• For costs of the lift station and force main (the minimum capacity of 1,792-gpm required to serve the Property to an oversized 2,800-gpm lift station) and appurtenances, the City’s maximum participation consists of: (1) hard costs, in an amount not to exceed 36% of the hard costs of the lift station, force main, and appurtenances, and (2) soft costs, in an amount not to exceed 15% of the City’s hard cost participation amount.
To serve the Property, the Applicant will additionally be required to construct, at their own cost, appropriately sized 12-inch and 15-inch gravity wastewater mains within the Property.
Other terms of the agreement will require that the Applicant:
• Pay all costs for financing, interest, fiscal security, accounting, insurance, inspections, permitting, easement acquisition, legal services, and other non-reimbursable soft costs associated with the Project;
• Conform to the City’s design criteria and construction standards;
• Construct all improvements at their cost and, after the City’s final approval of the construction, dedicate the facilities to the City for ownership, operation, and maintenance;
• Allow the City to use the project plans and specifications approved by the City to solicit and publish invitations for bids for the construction of the improvements; and
• Follow the City’s standard bidding practices and procedures, including the requirements of Texas Local Government Code Chapter 252 (Purchasing and Contract Authority of Municipalities) and the minority-owned business enterprise procurement program found in City Code Title 2 (Administration).
The proposed project will be managed through Austin Water staff and is located in the Coty’s extraterritorial jurisdiction in zip code 78724, near District 1.
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