Council nearly doubles payment to build water system for disannexed project

City Council has agreed to more than double its contribution toward a water infrastructure project that will service a project that recently disannexed from the western city limits. The unanimous approval of an amendment to the cost participation agreement between the city of Austin and Milestone Community Builders increases the city’s financial contribution by an additional $5.5 million, bringing the total cost to $11.57 million.

The amendment pertains to the construction of a 16-inch water main and a 750,000-gallon elevated water reservoir, which will serve a new 49-home single-family development at 1300 Lost Creek Boulevard. Initially approved in 2021, the original agreement set the city’s contribution at approximately $6 million. Rising material and construction costs attributed to supply chain disruptions from the Covid-19 pandemic necessitated this budget increase.

The larger water lines will serve the Milestone development and enhance water service for additional properties in the South Lost Creek Boosted Water Pressure Zone.

The water system upgrade is designed to accommodate future growth and improve service reliability in the area, with the city covering a considerable portion of the costs to construct approximately 4,000 feet of the water main. The city will also cover 90 percent of the cost of the elevated reservoir.

Council Member Mackenzie Kelly addressed community concerns over how closely the disannexed residential project would be regulated with respect to the city’s environmental concerns over water. Shay Ralls Roalson, director of Austin Water, said residents of the project remain “retail customers” of the utility even after the May separation from the city.

“Where this development is happening and where this elevated tank will be constructed is in the city’s full purpose jurisdiction and subject to all city codes and requirements. In addition, they have an approved site plan that was complete prior to bidding this project,” she said.

“This area lacks the same level of resiliency and redundancy that we have in other parts of our distribution system. And so oversizing this tank to 750,000 gallons will bring that area up to our standards for resiliency for the water distribution system in this area.”

Council Member Paige Ellis, whose district includes the project area, said the added infrastructure will make the area safer in addition to serving residents.

“Lost Creek is a neighborhood that does not have a lot of ingress and egress, so if people had to evacuate, there’s not a lot of options for people to be able to get to safety. These are customers that are going to continue to be on Austin water regardless of (extraterritorial jurisdiction) annexed part of the city or not,” she said.

Roy Waley, a leader with the Austin Sierra Club, said Milestone’s request for a service extension to its Hays Commons project, which is in an area seen as more environmentally sensitive, shows the company isn’t concerned about the potential damage done to groundwater sources throughout the area.

“There are unknown number of recharge features on Hays Commons, and yet they’re saying they will comply with (the Save Our Springs Ordinance) except for the impervious cover …. That’s not complying with SOS, it’s like saying, ‘I will comply with all traffic laws except for when I want to run red lights and go 55 miles an hour through a school zone,’” he said.

The Austin Monitor’s work is made possible by donations from the community. Though our reporting covers donors from time to time, we are careful to keep business and editorial efforts separate while maintaining transparency. A complete list of donors is available here, and our code of ethics is explained here.

Posted In: Water, District 8