Alternative Project Delivery - Texas Water Development Board

Wastewater
Legal Review of Alternative Delivery Methods
State law also requires the TNRCC to review and approve plans and specifications for
wastewater infrastructure. xlv The plans must be submitted before beginning
construction of a wastewater treatment facility or a material alteration of a treatment
facility. xlvi Selected entities are not required to submit plans, such as municipalities
with their own engineering staffs or entities that are required by law to submit their
plans to a local municipality for approval. TNRCC rules relating to approval of
wastewater infrastructure plans are codified at 30 Texas Administrative Code Sections
317.1-15.
Bonds
State law also requires TNRCC approval of a water district’s proposal to issue bonds
to purchase or construct water/wastewater infrastructure. xlvii TNRCC rules
implementing this requirement are codified at 30 Texas Administrative Code Sections
293.41-59. The process includes a review and approval of the completed
water/wastewater infrastructure plans and specifications. xlviii
V. Organizational Flexibility and Impact on
Procurement Process
State law provides public entities some flexibility to use different agencies to
accomplish their purposes and the types of agencies used could affect the procurement
processes that are available. Although the law under which the entity is established
may not require the design-bid-build procurement process, other applicable state laws
may impose the procurement process required by the entity creating the non-public
entity.
The following agencies organized or established by public entities can acquire
water/wastewater infrastructure projects:
1. Non-profit water supply corporations.
a. Cities and districts may contract with these non-profit corporations for the
purpose of acquiring water/wastewater infrastructure. xlix
b. Corporations created under chapter 67 of the Water Code and prior laws.
Some, but not all, laws relating to public entities apply to these corporations.
c. State procurement laws do not apply, but corporation’s by-laws may specify
procurement process.
2. Industrial Development Corporation.
a. The Development Corporation Act l authorizes cities and counties to create or
establish several different types of non-profit corporations.
b. Depending upon circumstances specified by law, industrial development
corporations may acquire or construct “projects” which is a term defined to
include water/wastewater infrastructure projects. li
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