Posting Language
Title
Authorize negotiation and execution of a cost participation agreement with JCI Multifamily, LP, for the City to reimburse the developer in an amount not to exceed $5,313,000 for costs associated with the design and construction of oversized water mains and appurtenances related to Service Extension Request No. 5441R that will provide water service to proposed multifamily developments located at 14709 Immanuel Road. Funding: $5,313,000 is available in the Fiscal Year 2024-2025 Capital Budget of Austin Water.
De
Lead Department
Austin Water.
Fiscal Note
Funding in the amount of $5,313,000 is available in the Fiscal Year 2024-2025 Capital Budget of Austin Water.
For More Information:
Austin Water Chief Administrative Officer Heather Cooke, 512-972-0083, or Heather.Cooke@austintexas.gov.
Council Committee, Boards and Commission Action:
May 21, 2025 - Recommended by the Water and Wastewater Commission on a vote of 8-0 with three vacancies.
Additional Backup Information:
The Weiss Tract Subdivision project consists of approximately 111 acres of land located at 14709 Immanuel Road (Property). The Property is located entirely within the City of Austin’s two-mile Extraterritorial Jurisdiction, Impact Fee Boundary, Austin Water’s service area for water, the Desired Development Zone, and the Gilleland Creek Watershed. A map of the Property location is attached.
JCI Multifamily, LP (Applicant) is proposing to develop approximately 2,200 multi-family units. The Applicant requested that the City of Austin provide water utility service to the Property as proposed in Service Extension Request (SER) No. 5441R. Austin Water will provide retail wastewater service to the Property as proposed in SER No. 5442R.
In accordance with City Code Chapter 25-9, the City has asked the Applicant to oversize the water mains in order to serve additional properties within the North pressure zone consistent with the City’s long-range planning goals for this area. If approved by City Council, the City will cost participate in this construction project only to the extent of the City’s proportionate share of the oversized mains.
The proposed oversized improvements include construction of:
• Approximately 3,900 feet of 24-inch water transmission main from East Howard Lane north and east along Dessau Road and Crystal Bend Drive to Immanuel Road; and
• Approximately 4,000 feet of 36-inch water transmission main from Harris Ridge Boulevard east along E. Howard Lane and Fish Lane to Dessau Road.
The City will reimburse the Applicant for an overall total amount not to exceed $5,313,000 for hard 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 24-inch water main (the minimum pipe diameter of 16 inches required to serve the Property to an oversized 24 inches) and appurtenances, the City’s maximum participation consists of: (1) hard costs in an amount not to exceed 33 percent of the hard costs of the 24-inch water main and appurtenances, and (2) soft costs in an amount not to exceed 15 percent of the City’s hard cost participation amount.
• For costs of the 36-inch water main (the minimum pipe diameter of 24 inches required to serve the Property to an oversized 36 inches) and appurtenances, the City’s maximum participation consists of: (1) hard costs in an amount not to exceed 33 percent of the hard costs of the 36-inch water main and appurtenances, and (2) soft costs in an amount not to exceed 15 percent of the City’s hard cost participation amount.
To serve the Property, the Applicant will additionally be required to construct, at its own cost:
• Approximately 4,450 feet of 12-inch water main north along Entrada Tranquila Way and Bern Vindo Road and then west through the Property to Immanuel Road;
• Approximately 5,275 feet of 16-inch water main from the 12-inch water main running through the Property south along Immanuel Road to Crystal Bend Drive; and
• Approximately 100 feet of 8-inch water main along Nightview Drive.
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 its 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 minority-owned business enterprise procurement program set out in City Code Title 2 and Texas Local Government Code Chapters 212 and 252.
The proposed project will be managed by Austin Water staff and is located in zip code 78660, near City Council District 1.