The City of Fulshear developed City Hall within the Master Municipal Utility District (MUD) MUD 169 and MUD 170. Both MUD's have constructed potable water, sanitary sewer and storm sewer facilities serving the land within their boundaries. Although the MUD's have conveyed the ownership and operation of the facilities to the City, the MUD's reserve all the capacities in the facilities.
The Districts are imposing Capacity Fees (i) pursuant to the terms of the Utility Agreement between MUD 169 and the City (as amended, the “Utility Agreement”), (ii) in accordance with MUD 169’s policies and procedures for reservation of capacity (the “Capacity Reservation Procedures”), and (iii) in accordance with the provisions of Section 49.212 of the Texas Water Code.
Section 2.11 of the Utility Agreement states that all capacity in the System (as defined in the Utility Agreement) will be owned by and reserved to MUD 169. As owner of all capacity for the Facilities in the Cross Creek Ranch service area, MUD 169 previously adopted its Capacity Reservation Procedures to provide for a fair and equitable distribution of costs for such capacity to all users, including the other municipal utility districts located within the Cross Creek Ranch service area and other non-taxable users MUD 169, through its Capacity Reservation Procedures, charges a fee to such non-taxable users (who are not otherwise paying a monthly connection fee to MUD 169 or paying ad valorem taxes), based on their pro rata share for capacity in the Facilities.
Section 49.212 of the Texas Water Code allows districts to adopt and enforce fees necessary to provide or make available any district facility or service, including any charges or fees for construction of water, sanitary sewer or drainage facilities, all necessary service lines and meters, and for capacity in storm water detention facilities.
The City Hall facility requires 2,835 gallons per day of sewage treatment capacity, and 3,780 gallons per day for water plant and waterline capacity. The City Hall tract also requires drainage/detention capacity.
To satisfy this capacity requirement, MUD 169 and MUD 170 have determined the following are due to compensate the MUD's for the capacities:
1. MUD 169 = $98,368.84
2. MUD 170 = $ 5,044.32
The total capacity fees due are $103,413.16.
Legal and Finance have reviewed the request for payment of fees, with Public Works and are recommending payment of the fees.