AGENDA CAPTION:
Title
Consider approval of Resolution 2025-08R, approving a settlement agreement with Qualico Developments (U.S.), Inc., and an associated out-of-city utility extension request (OCU-25-01), enabling the City to provide water and wastewater service to an approximately 306-acre tract of land generally located on the west side of Centerpoint Road and approximately 2,800 south of the South Old Bastrop Highway and Centerpoint Road intersection; authorizing the City Manager, or her designee, to execute such agreement on behalf of the City; and declaring an effective date.
Body
Meeting date: January 21, 2025
Department: City Attorney and Planning & Development Services
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Background Information:
Qualico Developments owns an approximately 306-acre tract of land southeast of the City. The land is located within the city’s service area for water.
The owner initially requested that the City provide water service because the land is within the City’s service area for water service. The City contended that the owner must consent to annexation under Section 86.003 of the City Code which requires out of city customers to consent to annexation before service could be provided.
The property owner filed a formal complaint with the Texas Commission on Environment Quality (“TCEQ”) against the City asserting the City was obligated to provide service because the land was in the City’s service area and could not condition service on consent to annexation. The City contended that service was not being denied and that it had the right to require consent to annexation as a condition of providing service.
In the interim, the developer of the land indicated an interest in participating in the wastewater treatment plant cost sharing agreement approved by the city council. The owner has since agreed to consent to a deferred annexation in compliance with the ordinance. In addition, the ordinance allows for the provision of out of city service to parties involved in paying the majority of costs associated with constructing a wastewater treatment plant.
As a result of these developments, the parties seek to settle the matter pending before the TCEQ. The council was briefed on the matter pending before TCEQ and possible settlement in prior executive sessions. The owner is now formally seeking approval of its request for out of city access to water and wastewater service from the City for the 306-acre tract. The proposed development on the land is comprised of 886 single family residential lots, a lot for commercial development, and a lot for an emergency services site.
The applicant has provided their own “Owner’s Acknowledgement and Consent to Annexation” form, which references the Settlement Agreement. The Settlement agreement and request for out of city utility service must both be approved for each to be effective. Approval would authorize the extension of the City’s water and wastewater infrastructure to the property.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval of the settlement agreement and OCU-25-01 as presented.