Fair Oaks Ranch council approves water and wastewater CCNs for 80.69‑acre Quarterly Tract, contingent on master development plan

The Fair Oaks Ranch City Council on Oct. 17 approved resolutions to incorporate an 80.69‑acre parcel at 29580 Ralph Fair Road (part of the "Quarterly Tract") into the city's water and wastewater Certificates of Convenience and Necessity (CCNs), contingent on later approval of the developer's master development plan.

Grant Watanabe, the city's director of public works, told the council the applicant (Athena Domain LLC, represented in the meeting) proposed a phased development that the city counted as 215 potential connections (LUEs) for the entire tract. Staff calculated Phase 1 (the 80.69 acres before council) at roughly 139 LUEs. Using a conservative planning rate of 1.5 acre‑feet per connection, staff produced an upper‑bound estimate of about 208.5 acre‑feet of water per year for Phase 1; a calculation based on the city's historical usage produced an alternative estimate of about 69.5 acre‑feet per year.

Watanabe recommended approval of a CCN extension "contingent on approval of the proposed master development plan," and explained that if the council approves the CCN the developer will later bring a master plan to Planning & Zoning and then back to council. He said the city also has a dashboard for tracking planned, reserved and existing connections and that the consultant updating the city's water‑system model is expected to deliver findings at the end of the month.

Council members pressed Watanabe and staff on whether the city has enough GBRA supply to support the proposed buildout and other future demands. Staff said the city currently has approximately 506 acre‑feet remaining under its GBRA contract that could be drawn on, and that GBRA has offered a "water secure" initiative that could add capacity (the city has expressed interest in approximately 300 acre‑feet as part of that project). Staff also noted an expected, prorated redistribution of roughly 400 acre‑feet in a later cycle as GBRA reallocates another customer's allocation; those sources are not yet fully contracted and some would require additional agreements and costs.

The potential for higher or lower demand figured in council discussion: some members described the 1.5 acre‑feet planning assumption as intentionally conservative while noting the city's observed average residential use is closer to 0.5 acre‑feet per year. Council members also asked how approving a CCN tonight affects Planning & Zoning and whether denying the city CCN would push the developer toward other water sources with different density outcomes; staff said the process and sequencing are prescribed in the city's UDC and PUC procedures and that developers could pursue alternative sources if the city declines.

Resident Al Schmidt had submitted written comments read into the record asking the council to delay CCN action until the city obtains "updated GBRA water availability projections." The letter said the staff report's phrase "the next decade and beyond" lacked specificity and requested a formal 2024 GBRA projection be used before approving new CCN commitments. Council members acknowledged the letter during discussion but proceeded with the contingent approvals.

With motions on the table, the council approved the water CCN extension and, in a separate motion, the wastewater CCN expansion by voice votes in open session; no dissenting votes were recorded in the public proceedings. Next steps outlined by staff: Planning & Zoning is expected to review the developer's master development plan on Nov. 14 and the council will consider final action on the master plan in early December; if approved, the city and developer will negotiate a water‑supply agreement specifying reserved LUEs, acre‑feet reserved, fees, and any infrastructure contributions.

The votes approved only the CCN expansions and did not authorize the master development plan or any platting or construction; councilmembers repeatedly emphasized that master‑plan and plat approvals remain separate, later decisions.