WA9401-CS 940218LAWRENCE W. JACKSON
ROBERT L. DILLARD III
ROBERT E. HAGER
PETER G. SMITH
DAVID M. BERMAN
BRUCE A. STOCKARD
NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P.
Attorneys & Counselon at Law
1800 Lincoln Plaza
500 Nora Aka~
Dalhs, Texas 75201
(2A4) 954-3333
lax (2A4) 954-3334
JOHN F. ROEHM Ill
01 IFIICTII, tA A. MELTON
ROBERT L. DILLARD, JR.
H. LOUIS NICHOLS
OF COU,4~L
February 18, 1994
Mr. Ken Griffin
City Engineer
City of Coppell
P. O. Box 478
Coppell, Texas 75019
Dear Ken:
It is my understanding that the City needs some clarification of a letter directed to
Steve Goram on April 22, 1993, with regard to pro rata charges and impact fees.
Specifically, it is my understanding that the City Council is considering the extension
of water lines to serve property not now served with water services. This will require the
extension of a major water main, 8" to 12" in size. Your question is how can the City install
the water line extension and recover the cost thereof from property owners who will be
served by it.
Since I understand this line is not contemplated in the Capital Improvements Plan
adopted under Chapter 17 of the Code of Ordinances, the cost of the line will not be
recovered by the collection of impact fees under Chapter 17. Although Chapter 17 purports
to exclude collection of pro rata charges by the City for extension of a line, this is not what
is provided by Chapter 395 of the Local Government Code. Chapter 395 of the Local
Government Code only excludes lot or acreage fees to be placed in trust funds for the
purpose of reimbursing developers for oversizing or constructing water or sewer mains or
lines.
Therefore, if a developer were to pay for this water line, you would be authorized
to collect pro rata fees on a lot or acreage basis to be placed in a trust fund to reimburse
the developer. Where the City extends the line, this exclusion is not available.
One means of paying for the extension of the water line would be by the creation of
a public improvement district under Chapter 372 of the Local Government Code. This
would require a petition signed by fifty percent of the record owners and owners
representing more than fifty percent of the appraised value of the real property in the
district. Obviously, this method will not be possible unless you have an agreement by the
necessary percentage of the owners.
Another method available to the City is by an assessment levied under Chapter 402
February 18, 1994
Page 2
of the Local Government Code. This is similar to a paving assessment. It requires notice,
a public hearing, evidence of special benefit to the properties, and an ordinance levying an
assessment against each property that will be served by the water line. The City would be
required to finance the water line extension initially and recover a certain percentage from
the abutting owners under the assessment ordinance.
If you have any other questions on this situation or require any greater detail as to
an assessment program or a public improvement district, please let me know.
Very truly yours,
RLD/jd
NICHOLS, JACKSON, DII .I .ARD,
HAGER & SMITH, LLP.
Robert L Dillard, HI