Opinion ID: 895256
Heading Depth: 2
Heading Rank: 2

Heading: Clear Lake City Water Authority

Text: The Clear Lake City Water Authority was created in 1963. See Act of May 6, 1963, 58th Leg., H.B. No. 1003, R.S., ch. 101, 1963 Tex. Gen. Laws 164, 173. The Authority occupies the Clear Lake area in Harris County, approximately 20 miles southeast of downtown Houston. CLEAR LAKE CITY WATER AUTHORITY, GENERAL INFORMATION (2010), http://clcwa.org/generalinfo.htm. It is currently Texas' largest water district, encompassing over 16,000 acres, with around 84,000 residents. Id. Water districts frequently contract with private developers to build and maintain water facilities. Prefunding agreements, like the ones at issue here, are governed by the Texas Commission on Environmental Quality's (TCEQ) rules. See Malcomson Rd. Util. Dist. v. Newsom, 171 S.W.3d 257, 274 n. 11 (Tex.App.-Houston [1st Dist.] 2005, pet. denied); 30 TEX. ADMIN. CODE § 293.46. These agreements allow developers to finance facilities contemplated for purchase by the district before TCEQ has approved the bond issue, provided certain conditions are met. 30 TEX. ADMIN. CODE § 293.46. The TCEQ rules require developers to pay at least 30% of the costs under such contracts, to insure the feasibility of the construction projects of such districts. 30 TEX. ADMIN. CODE § 293.47. The rules further provide that [a] person proceeding with construction of a project prior to its formal approval by the commission shall do so with no assurance that public funds will be authorized for acquiring the facilities. Id. § 293.46(6). Thus, the developer who builds the infrastructure assumes the risk that funding will never materialize, and voters determine whether to commit funds for the project. We turn now to the issues before us.