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Council approves utility service agreement for 80.69‑acre tract on Ralph Fair Road

3802019 · May 2, 2025
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Summary

The council authorized a utility service agreement with AD Acquisitions LLC to provide water and wastewater to an 80.69‑acre portion of the Crowley/Corley tract at 29850 Ralph Fair Road, detailing LUEs, impact fees, and developer responsibilities for off‑site infrastructure upgrades.

The Fair Oaks Ranch City Council on May 1 approved a utility service agreement with AD Acquisitions LLC that secures water and wastewater service for an 80.69‑acre tract at 29850 Ralph Fair Road and spells out capital, impact‑fee and off‑site infrastructure responsibilities.

Grant Watanabe, the city’s public works director, told council the parcel is part of a larger roughly 160‑acre tract and is not yet inside the city’s certificate of convenience and necessity (CCN). The agreement directs the city to file for CCN incorporation with the Public Utility Commission of Texas and sets an initial allocation of 139 water LUEs and 137 wastewater LUEs for the 80.69‑acre parcel.

Key agreement terms include payment of current impact fees at execution: $8,670.33 per water LUE (139 LUEs ≈ $1.2 million) and $6,068.64 per wastewater LUE (137 LUEs ≈ $831,000). The developer also agreed to a one‑time water replacement charge of $57,475 at phase‑one final plat approval and to pay a monthly water reservation fee if phase‑one final plat is not submitted within 18 months. On‑site utilities (distribution mains, valves, hydrants and sewer mains) are the developer’s responsibility.

The developer will pay for extending 8‑inch water and sewer mains from The Arbors and for upgrades to the Kojak Circle manhole and installation of a new 12‑inch sewer main to the city’s treatment plant. The city has budgeted $650,000 for that manhole/sewer upgrade in its CIP; if the developer covers the work as agreed, the city could reallocate that budget toward other wastewater projects.

The agreement also requires the developer to design a new 12‑inch water main from the Elmo Davis water plant and proposes a 25% developer / 75% city cost share; staff said the line is sized to serve other future development. Staff intends to joint‑bid the new 12‑inch main with a planned road reconstruction on Deats/Detail Corn to avoid trenching new pavement.

Council discussed impact‑fee timing. Staff said impact fees in this agreement are set at the rates in effect at signing and that later phases or additional acreage would be addressed by amendment or separate agreement. The council approved the agreement unanimously; staff and the developer said the CCN filing will follow and the developer must complete designs within 90 days as required by the agreement.