Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 293 - WATER DISTRICTS › Subchapter E - ISSUANCE OF BONDS › Section 293.48 - Street and Water, Wastewater and Drainage Utility (Street and Utility) Construction by Developer

Current through Reg. 49, No. 28; July 12, 2024
Except as otherwise provided, unless street and utility
					 construction is completed within the area to be developed by the proposed bond
					 issue, the developer must provide assurance to the satisfaction of the
					 executive director, prior to advertisement for sale of the district's bonds,
					 that such street and utility construction will be completed as hereinafter
					 provided.
(1) The developer must enter
				  into an agreement with the district, secured by an escrow of funds in the name
				  of the district, a letter of credit, or a deferral of reimbursement of bond
				  funds owed, specifying that if street and utility construction is not completed
				  within a reasonable and specified period of time after the district sells its
				  bonds, the district may award a contract for completion of the streets and
				  utilities with financing to be accomplished by utilizing the letter of credit;
				  provided, however, the district shall not proceed in such a manner until the
				  executive director, after having given at least ten days' written notice to
				  both the district and the developer, has reviewed the matter, either on the
				  petition of the district or on his own motion and has approved the district's
				  awarding of the contract and utilization of the letter of credit; and provided
				  further, the executive director may extend the time for the developer to
				  complete the streets and utilities if the developer renews the letter of credit
				  and adequately compensates the district for lost revenues and taxes resulting
				  from failure to complete the streets and utilities within the specified time.
				  In the event that the letter of credit has not been renewed or replaced 45 days
				  prior to its expiration date, or in the event that the developer commences any
				  proceeding, voluntary or involuntary, or any proceeding, voluntary or
				  involuntary, is commenced against the developer involving the bankruptcy,
				  insolvency, reorganization, liquidation, or dissolution of the developer, or
				  any receiver is appointed for the developer, or the developer makes a general
				  assignment for the benefit of creditors, the district shall have the immediate
				  right to draw down the lesser of the current cost, as estimated by the
				  district's engineer, to construct the streets and utilities, or the entire
				  remaining balance of the letter of credit. The current estimated costs to
				  construct the streets and utilities shall include construction contract
				  amounts, engineering, surveying and testing fees, and a 10% contingency. The
				  district shall deposit such funds in a separate account and shall not commit or
				  expend such funds until the executive director has authorized use of the funds
				  as provided in this subsection. Within 30 days after final completion of the
				  streets and utilities, the district shall provide an accounting of the use of
				  funds drawn pursuant to the provisions hereof and shall refund any remaining
				  funds, including accrued interest, if any, to the developer or his designee. A
				  district shall not allow any letter of credit to expire, except upon completion
				  of the paving in substantial compliance with the agreement or written approval
				  of the executive director. A copy of the street and utility construction
				  agreement meeting the criteria specified in §
										293.57
				  of this title (relating to Form of Street and Utility Construction Agreement),
				  the letter of credit, and any amendments or renewals thereof shall be submitted
				  to the executive director within ten days after their execution or receipt by
				  the district. The letter of credit must be from a financial institution meeting
				  the qualifications as specified in §
										293.56
				  of this title (relating to Requirements for Letters of Credit).
(2) The developer shall include in the street
				  and utility construction contract a provision that places the responsibility on
				  the contractor for repair and clean-up of broken manholes, buried valve boxes,
				  broken wastewater pipe, and all other damage to district facilities caused by
				  construction of streets and utilities.
(3) The district shall charge a district
				  employee or consultant with the responsibility to frequently inspect and
				  conduct operational tests on unused facilities and promptly report:
(A) undue facility and equipment
				  deterioration, leaks, silting, infiltration and other problems with utility
				  systems resulting from nonuse; and
(B) damage caused by vandalism, or road,
				  street, commercial, industrialand/or housing construction in order to establish
				  responsibility promptly.