Item 06 - FM 973 Cost Participation Agreement for Water Service — original pdf

Backup

Item 6 Water & Wastewater Commission: November 10, 2026 Council: November 19, 2026 Posting Language ..Title Recommend approval to authorize the negotiation and execution of a cost participation agreement with Z Modular for the City to reimburse the developer for an amount not to exceed $1,850,000 for costs associated with the design and construction of an oversized water main and appurtenances related to Service Extension Request No. 4998R3 that will provide water service to a proposed mixed-use development located at 7308 N FM 973 near the intersection with State Highway 130. Funding is available in the Capital Budget of Austin Water. ..De Fiscal Note Funding is available in the Capital Budget of Austin Water. Council Committee, Boards and Commission Action: November 10, 2026 – To be reviewed by the Water and Wastewater Commission. Additional Backup Information: The Winding Trails East and West project consists of approximately 260 acres of land located at 7308 N FM 973 near the intersection with State Highway 130 (the “Property”). The Property is located entirely within the City of Austin’s (the “City”) 2-mile Extra-Territorial Jurisdiction, Impact Fee Boundary, Austin Water’s service area, the Desired Development Zone, and the Central water pressure zone. A map of the property location is attached. Z Modular (the “Applicant”) is proposing to develop approximately 1,254 multi-family units, 195,000 sq. ft. of office space, 205,000 sq. ft. of retail space, 87,500 sq. ft. of restaurant space, a 16,500 sq. ft event center, 115 hotel rooms, and 14 acres of space dedicated for sports fields. The Applicant requested that the City provide water utility service to the Property as proposed in Service Extension Request (SER) No. 4998R3. Austin Water will provide retail wastewater service to the Property as proposed in SER No. 4999R3. In accordance with Chapter 25-9 of the City Code, the City has asked the Applicant to oversize the water main in order to serve additional properties within the Central water 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 main. The proposed oversized improvements include construction of approximately 4,650 feet of 24-inch water main from Decker Lake Road and extending east along Decker Lake Road to State Highway 130 and then northeast along State Highway 130 to the Property. The City will reimburse the Applicant for an overall total amount not to exceed $1,850,000 for hard costs 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-inch) and appurtenances, the City’s maximum participation consists of: (1) hard costs, in an amount not to exceed 33% of the hard costs of the 24-inch water main and appurtenances, and (2) soft costs, in an amount not to exceed 15% of the City’s hard cost participation amount. To serve the Property, the Applicant will additionally be required to construct, at their own cost, approximately 9,650 feet of 16-inch water main from Decker Lake Road extending north along N FM 973 to the Property and then southeast through the Property to the proposed 24-inch water main along State Highway 130.  Item 6 Water & Wastewater Commission: November 10, 2026 Council: November 19, 2026 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 their 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 found in Title 2 of the City Code, and Texas Local Government Code Chapters 212 and 252. The proposed project will be managed through Austin Water staff and is located in zip code 78724, near City Council District 1. City of Austin Council Meeting Backup: November 19, 2026 File ID: 26-3082 5 7 0 560 53 0 580 55 0 OVERSIZED WATER MAP Winding Trails East and West Water SER-4998R3 5 7 0 560 550 530 R24 540 Q24 STAFF PROPOSED APPROPRIATELY SIZED 16-INCH WATER MAINS TO SERVE SUBJECT TRACT S24 HOG EYE RD D V L S B E T A T S E E SID AIL R T JARROD LEE CV 540 510 540 16" 16" D 3 R 7 M 9 6" N F 1 470 D E C K E R C R E E K 6" 1 6" 1 ! ! ! ! ! ! ! !! ! ! 550 570 R23 Q23 48" !! 6" 1 ! ! ! ! 16" 48" 48" 16" D V L B N A M L E K E Z 500 WARREN HAYES BLVD 4 7 0 D V L B A S E M R E K C E D 470 470 470 480 460 460 460 540 520 N SH 130 NB TO HOG EYE RAMP 510 S23 N SH 130 SVRD SB N SH 130 NB 510 4 9 0 16" DECKER LAKE RD 48" 12" 16" Map Legend 540 Basemap Polygon 6" GRID 1 Subject Tract " 12" 6 1 100-yr FEMA Floodplain " R22 Contour - 10' 2 1 Water Lines Q22 In Service ! ! ! ! ! Proposed 6" Jurisdictions 1 Full-Purpose City Limit 12" Limited Purpose 2-Mile ETJ 8" N SH 130 SVRD SB 490 490 480 500 510 ! ! ! ! ! ! ! 2" 1 !! ! ! ! ! ! ! ! ! !! ! !! ! ! ! !! L R E T K U N L UIN Q 0 52 0 1 5 B D N R V 0 S 3 0 H 1 1 5 N S B 0 S 3 H 1 N S 0 1 5 0 0 5 0 0 5 CITIZEN WAY D T R R E B GIL DECKER LAKE RD STAFF PROPOSED APPROXIMATELY 4,650 FEET OF OVERSIZED 24-INCH WATER TRANSMISSION MAIN 460 450 520 GILBERT RD 510 S22 0 4 4 / 0 500 1,000 2,000 Feet 3,000 This 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 property boundaries. This product has been produced by the City of Austin for the sole purpose of geographic reference. No warranty is made by the City of Austin regarding specific accuracy or completeness. 11/2/2026 LOCATION MAP Winding Trails East and West Water SER-4998R3 & F Wastewater SER-4999R3 R26 S26 RIE SIA N B L V D D F R F U L E B U L B BLOOR RD N SH 130 S VR D N B File ID: 26-3082 N L D A T S M A I T26 MAGLIANO BND R D I F A R O S25 T25 E BRAKER LN City of Austin Council Meeting Backup: November 19, 2026 Q27 CAMI LN ZOEY LN Q26 DAFFAN LN DAFFAN LN WEST CREST LN LARICAL TRL MIMI LN P25 N R L E K C E D Q25 P24 Q24 R L D RIA E P N IM HOG EYE RD N Y L A W O L L O DECKER LAKE RD R25 R24 R23 S24 B D S R V 30 S H 1 N S JARROD LEE CV WARREN HAYES BLVD N SH 130 SB D T R R E B GIL NEZ PERCE TRCE S23 E C R S T L L E W T24 T23 COLFAX DR J M H Q23 WAYSIDE BLVD CATHERINE DR Q22 P22 D F R F U L E B U L B P21 Q21 Map Legend Basemap Polygon GRID Subject Tract Jurisdictions P20 Q20 Full-Purpose City Limit Limited Purpose 2-Mile ETJ 5-Mile ETJ Unincorporated Travis County / 0 1,500 3,000 6,000 R22 CITIZEN WAY S22 T22 D 3 R 7 M 9 N F R N D IO B 0 N 3 B H 1 D S N S R V 0 S B 3 D N H 1 R N S V 0 S 3 H 1 N S XENE DR BRAHMIN DR R21 D T R R E B GIL FM 969 RD DECKER LAKE RD T21 S21 D V L Y B E S A V WID R F D A E L E R K D JF R T D S O A P T L E D R C D A L DIL A C R20 T R S E N R U O J O S PLAIN VIEW DR T O S T E L C S20 D P R A L N U N D S19 T20 T19 Feet 9,000 This 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 property boundaries. This product has been produced by the City of Austin for the sole purpose of geographic reference. No warranty is made by the City of Austin regarding specific accuracy or completeness. 10/26/2026