McAllen revises working-clearance rules for temporary power: longer durations, deposit cap stays

A city staff presenter told the City Commission that McAllen is revising its working‑clearance administrative process for temporary electrical service to structures, extending the allowable durations at certain construction stages and keeping a refundable deposit cap intended to discourage occupancy before a certificate of occupancy. "It is designed to assist our contractors and owners by allowing additional time to complete necessary building permit conditions required to obtain a certificate of occupancy," the presenter said.

Previously the city granted working clearances for 30 days at any construction phase and required a deposit refundable upon issuance of a certificate of occupancy. Staff said contractors and homebuilder associations raised two concerns: the short 30‑day window and the deposit practice. After comparing neighboring cities, staff proposed staged durations tied to construction milestones: framing stage — 90 days; infiltration stage (exterior penetrations sealed, energy/state requirements) — 60 days; and final (about 90% complete, driveway in place for residential) — no deposit required but a signed agreement. The presentation noted the working clearance can be used for commercial and residential projects but is principally used by residential contractors.

Staff reaffirmed that the deposit system remains in place as a deterrent to occupancy before final inspections; deposits refund automatically through finance once a certificate of occupancy is issued, subject to the finance department's check runs. The deposit minimum is $500 and the maximum cap is $5,000; staff described the deposit as 5% of the remaining construction value up to that cap. Staff said the process dates to the 1990s and that prior calculations were based on smaller average home sizes, which affected perceived deposit burdens.

The presenter described extension options: if a contractor needs more time, they must request an extension so staff can re-inspect and set a new agreement period. Staff also said the city is working to automate permitting and related processes through a new Oracle permitting portal so applicants can apply online; some permit types are already available online, but deposit submission and some workflows still require in-person steps.

The presenter noted the city does provide a separate no-fee courtesy inspection process for businesses seeking temporary power in existing buildings when the use meets minimum departmental requirements; other cities sometimes charge for those services. Commissioners and staff discussed timing of refunds, frequency of the refund check run, and builders' concerns about repeated renewals under the former 30‑day regime. No ordinance change or formal vote was recorded in the workshop presentation.