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RULE §293.69Purchase of Facilities

(a) A district shall not purchase facilities financed or constructed by a developer, investor owned utility or water supply corporation in contemplation of sale to the district or assume facility contracts from the developer or reimburse the developer, investor owned utility or water supply corporation for funds advanced to finance construction of facilities until the executive director has given written authorization to finalize the purchase or reimbursement. Prior to requesting authorization to purchase, the district shall require its engineer to inspect the facilities and provide a written report of the condition of the facilities as they relate to the plans and specifications and note any deficiencies. A copy of the report must be submitted to the executive director along with the request for authorization to purchase. The executive director may inspect the facilities. Subject to the requirements contained in this subsection, the executive director shall issue his written approval or disapproval of such proposed purchase within 30 days after receipt of written request from a district or a district's authorized representative. If substantial deficiencies are found, the executive director may require the district to obtain an appraisal reflecting the adjusted value of the deficient facilities or deny purchase until repairs are made. The written approval shall be valid for 120 days.

(b) If the purchase of facilities or reimbursement of funds to the developer, investor owned utility or water supply corporation is not completed within 120 days after the date of the executive director's written approval, the district shall again obtain the written approval as provided herein.

(c) If the purchase is for existing facilities which have no active meters or connections (dormant), the following shall apply:

  (1) water lines shall be flushed and disinfected to meet minimum standards as outlined in §290.44(f) of this title (relating to Sanitary Precautions and Disinfection);

  (2) water lines must have been pressure tested within the two years prior to the purchase; and

  (3) for wastewater lines, an infiltration, exfiltration, or low-pressure air test is recommended and may be required if the line has been dormant for the previous 12 months.

(d) The inspection of all underground lines should include a visual inspection above ground for depressions or sinkholes.

(e) The seller of the facilities shall be responsible for cleaning out all pipes, inlets or manholes, and outfalls which are not properly operating.

(f) The district shall not be responsible for the cost of repairs needed as a result of negligence or improper construction.

(g) Costs for testing of the facilities may be eligible for reimbursement by the district upon commission approval.

(h) This section is applicable whether a district intends on operating facilities itself or intends on conveying the facilities to a third party; however, if the conveyance is to a municipality in whose limit or extraterritorial jurisdiction the district is located, the municipality assumes all costs of operation, repair, and maintenance, and the municipality has indicated in writing to the district that it waives any requirement for an inspection under this section, then this section is not applicable.

Source Note: The provisions of this §293.69 adopted to be effective September 5, 1986, 11 TexReg 3745; amended to be effective April 15, 1994, 19 TexReg 2301; amended to be effective October 22, 1996, 21 TexReg 9905; amended to be effective June 5, 1998, 23 TexReg 5715; amended to be effective October 26, 2006, 31 TexReg 8699

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