Item 07 - Cost Participation for Oversized Wastewater Interceptors — original pdf

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Item 7 Water & Wastewater Commission: March 11, 2026 Council: March 26, 2026 Posting Language ..Title Recommend approval to authorize an amendment to the City’s cost participation with the developer, United Properties Development, LLC, to increase the City’s share of the cost to design and construct oversized wastewater interceptors by $4,422,750 for a total amount not to exceed $9,500,000, as approved by Council for Service Extension Request No. 5132R which will provide wastewater service to a proposed mixed-use development located at East Howard Lane and SH 130. Funding: $9,500,000 is available in the Fiscal Year 2025-2026 Capital Budget of Austin Water. Fiscal Note Funding is available in the Fiscal Year 2025-2026 Capital Budget of Austin Water. Prior Council Action: April 18, 2024 - Council authorized a cost reimbursement agreement for an amount not to exceed $5,077,250. Council Committee, Boards and Commission Action: March 11, 2026 – To be reviewed by the Water and Wastewater Commission. Additional Backup Information: The Howard Lane Industrial - West project consists of approximately 94 acres of land located north and south of East Howard Lane and west of SH 130 (Property). The Property is located entirely within the City’s 2-mile Extra-Territorial Jurisdiction, Impact Fee Boundary, Austin Water’s service area, the Desired Development Zone, and the Gilleland Watershed. A map of the Property is attached. United Properties Development, LLC (Applicant) is proposing to develop approximately 398,000 sq. ft. of industrial warehouse space, 8,150 sq. ft. of retail space, 7,700 sq. ft. of restaurant space, and 710 multifamily units. Service Extension Request (SER) No. 5132R was submitted and approved to extend City wastewater service to the Property. Manville Water Supply Corporation will provide retail water service to the Property. The Applicant has been delegated authority to act on behalf of three adjacent projects (SER-5133R, SER- 5260, and SER-5051; the “Adjacent Projects”) to design and construct the common wastewater improvements required to provide wastewater utility service to each respective project. The project entails construction of approximately 4,200 feet of 36-inch wastewater interceptor, 4,450 feet of 30-inch wastewater interceptor, and 4,720 feet of 24-inch wastewater interceptor. The proposed wastewater improvements will be conveyed to the City for the City’s ownership, operation, and maintenance. These wastewater improvements were oversized and required by the City in order to serve additional properties within the Gilleland drainage basin consistent with the City’s long range planning goals for this area. The City will reimburse a percentage of the actual cost of construction of the oversized wastewater interceptors. On April 18, 2024, Council authorized the City and the Applicant to negotiate and execute a Cost Reimbursement Agreement (Agreement) for up to $5,077,250 for the construction of the oversized wastewater interceptors, as required in SER-5132R. The Agreement was executed on December 19, 2025.  Item 7 Water & Wastewater Commission: March 11, 2026 Council: March 26, 2026 The certified low bid for construction of the oversized wastewater improvements was received by the City on January 22, 2026, and the City’s proportionate share is in excess of the Council approved reimbursement amount. This is primarily due to the change in construction methods for one of the trenchless pipe segments and an overall increase in the amount of necessary trenchless construction. Additionally, the original cost estimate was prepared at a preliminary phase of the Project in September 2023 and was based on material and construction costs at that time. Austin Water is now requesting an overall total reimbursement amount not to exceed $9,500,000 for hard and soft costs, a $4,422,750 increase from Council’s previously approved reimbursement amount. 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 wastewater interceptor (the minimum pipe diameter of 8-inches required to serve the Property to an oversized 24-inch) and appurtenances, the City’s maximum participation consists of: (1) hard costs, in an amount not to exceed 66% of the hard costs of the 24-inch wastewater interceptor 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 30-inch wastewater interceptor (the minimum pipe diameter of 12-inches required to serve the Property and the Adjacent Projects to an oversized 30-inch) and appurtenances, the City’s maximum participation consists of: (1) hard costs, in an amount not to exceed 60% of the hard costs of the 30-inch wastewater interceptor and appurtenances, and (2) soft costs, in an amount not to exceed 15% of the City’s hard cost participation amount, and For costs of the 36-inch wastewater interceptor (the minimum pipe diameter of 15-inches required to serve the Property and the Adjacent Projects to an oversized 36-inch) and appurtenances, the City’s maximum participation consists of: (1) hard costs, in an amount not to exceed 58% of the hard costs of the 36-inch wastewater interceptor and appurtenances, and (2) soft costs, in an amount not to exceed 15% of the City’s hard cost participation amount The proposed project will be managed through Austin Water staff and is located in zip code 78653, northeast of City Council District 1. %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%!!!!!!!!!!%!!!!!!!!!!%!!!!!!!%!!!!!!!!!!!!!!!!%%!!%!!!!!!!!!!!!!!!%!!!!!!!!!!%!!!!!!!!!!%!%!!!!!!%!!!!!!!!!!!!!%!!!!!!!!!!%!%%%%%%%%%%%%%%%%%%%%\\\\[7L!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!P!PGILLELAND CREEKSTAFF PROPOSEDAPPROXIMATELY 3,625 FEETOF OVERSIZED 24-INCHWASTEWATER INTERCEPTOR(MINIMUM 0.5% SLOPE)STAFF PROPOSEDAPPROPRIATELY SIZEDWASTEWATER EASEMENTFOR FUTURE INTERCEPTORSTAFF PROPOSEDAPPROXIMATELY 4,100 FEETOF OVERSIZED 30-INCHWASTEWATER INTERCEPTOR(MINIMUM 0.2% SLOPE)STAFF PROPOSEDAPPROXIMATELY 4,200 FEETOF OVERSIZED 36-INCHWASTEWATER INTERCEPTOR(MINIMUM 0.5% SLOPE)N SH 130 SBN SH 130 NBHILL LNGREGG MANOR RDE US 290 HWY WBN SH 130 SVRD SBN SH 130 SVRD NBE HOWARD LNHILL LNE US 290 HWY EBFUCHS GROVE RDE PARMER LNRECTOR LOOPRECTOR LOOPJOYCE TURNER DRGREGG MANOR RDGILLELAND CREEKHARRIS BRANCH CREEKGILLELAND CREEKSER-5051SER-5260550560530540570520510580590600500540520570560530520530520570510530540550580560570550560540530590540570560530550570540540550560520550510540560520560560560570540580570530560540570560S30S29R30R29R318" PVC12" UNK36" FRPM36" FRPM36" FRPM12" UNKW.W. S.E.R. Name: Howard Lane Industrial West (Revised)W.W. S.E.R. Number: 5132R.Utility Development Services Plotted 2/13/202601,4002,800700FeetSubject TractAdjacent Projects100-yr FEMA FloodplainCritical Water Quality ZoneThis product is for informational purposes and may not have been prepared for or be suitable for legal, engineering, or surveying purposes.It does not represent an on-the-ground survey and represents only the approximate relative location of the property boundaries. This producthas been produced by the City of Austin for the sole purpose of geographic reference. No warranty is made by the City of Austin regardingspecific accuracy or completeness.Full Purpose City Limits2-Mile ETJCity of Manor City LimitsCity of Manor ETJUnincorporated Travis CountyN SH 130 SBN SH 130 NBE US 290 HWY EBE US 290 HWY WBE US 290 HWY SVRD EBE US 290 HWY SVRD WBBOYCE LNN SH 130 SVRD SBN SH 130 SVRD NBHILL LNOLD HWY 20GREGG MANOR RDBLUE GOOSE RDE HOWARD LNAUS TEX ACRES LNTITANIUM STGREGG LNBLUE BLUFF RDFARMHAVEN RDE PARMER LNCAMERON RDHARRIS BRANCH PKWYBELLINGHAM DRST MERRYN RDE US 290 EB TO N 130 NB RAMPDECKER LNELMER STAMARANTH LNAVERING LNSILICON DRSPEYSIDE DRARMAGH DRPREVIN BNDLANSDOWNE RDVIDRINE STREINDEER DRRYDALWATER LNE US 290 WB RAMPENTRADA BLVDGILES LNALBANY DRCLAPHAM DRROUTENBURN STGAINSFORD LNSLIGO DRGRAYMONT DRDEGAS DRGOLDEN RODEO RUNBRAMBER LNJOYCE TURNER DRSEAY STSAGINAW DRDUNBLANE WAYMONTEROSSO DRANTRIM TRLHARRIS BRANCH PKWYHILL LNGREGG MANOR RDGILLELAND CREEKHARRIS BRANCH CREEKDECKER CREEKS31R31S30R30R29R28S29S28R32S32Q28Q29Q31Q30Q32S27R27This product is for informational purposes and may not have been prepared for or be suitable for legal,engineering, or surveying purposes. It does not represent an on-the-ground survey and representsonly the approximate relative location of property boundaries. This product has been produced bythe City of Austin for the sole purpose of geographic reference. No warranty is made by the City of Austinregarding specific accuracy or completeness./02,0004,0006,0001,000Feet2/13/2026GRIDSubject TractFull-Purpose City Limit2-Mile ETJUnincorporated Travis CountyCity of ManorManor ETJLOCATION MAPHoward Lane Industrial - West (Revised)Wastewater SER-5132R