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Engineering: what is meant to happen, and what each district pays
Every road, pipe, pond and park a district buys is designed, permitted and inspected by the district's engineer. Engineering is one of the largest "soft costs" in each bond issue.
What the engineer does
- Design: plans and specifications for water, sewer, drainage, detention, roads and parks.
- Permits and approvals: Harris County, the City of Houston (in its extraterritorial jurisdiction) and TCEQ.
- Construction: bidding, pay estimates, change orders, inspection and final acceptance.
- Bond applications: the engineer's report to TCEQ, describing each project, its cost and who it serves.
- Allocations: where districts share facilities, the engineer usually prepares each district's share of the cost.
In developer-financed districts, the developer usually pays the engineer first. The district then reimburses the developer from bond proceeds, under TCEQ's rules and after an auditor reviews proof of payment (30 TAC §293.70).
What is meant to happen
| Rule | What it says | Status |
|---|---|---|
| Professional Services Procurement Act (Gov't Code ch. 2254) | Engineers are selected on demonstrated competence and qualifications, then the fee is negotiated. Engineers are not selected by competitive bid. | Law |
| Water Code §49.199(a)(4) | The board must have written policies for selecting, monitoring and evaluating its professional consultants. | Law |
| 30 TAC ch. 293 (TCEQ) | Bond-funded costs, including engineering, are reviewed in each bond application. Developer reimbursements require the auditor's review of proof of payment (§293.70). | Law (TCEQ rule) |
| A maximum engineering fee | We have not found a statute or rule setting a maximum percentage. The engineer's contract with the district sets the fee. | Set by contract |
Actual: HCID 14 engineering in each bond issue
The "Engineering" line from each official statement, compared with the construction the same issue paid for. Construction here includes facilities titled to HCID 13 that HCID 14's bonds paid toward.
| Bond issue | Engineering | Construction in the same issue | Engineering as % of construction |
|---|---|---|---|
| 2022 water, sewer, drainage | $225,246 | $1,868,291 | 12.1% |
| 2023 water, sewer, drainage | $176,616 | $1,379,015 | 12.8% |
| 2024 road | $240,528 | $2,756,977 | 8.7% |
| 2024A water, sewer, drainage | $873,758 | $4,668,632 | 18.7% |
| 2025A water, sewer, drainage | $888,586 | $5,961,302 | 14.9% |
| 2025B park | $782,471 | $4,206,500 | 18.6% |
| 2026 road | $697,908 | $4,196,402 | 16.6% |
| 2026A water, sewer, drainage (draft) | $1,049,953 | $5,835,146 | 18.0% |
| All eight | $4,935,066 | $30,872,265 | 16.0% |
Engineering billed in one issue can relate to construction reimbursed in another, so single-year percentages are rough. Source: HCID 14 official statements, Series 2022 to 2026A (use of proceeds).
Open questions
- The same engineering firm serves HCID 13 and HCID 14 and prepares the cost allocation between them. How does each board check the allocation independently?
- What did the engineering fee in each issue cover: design, construction phase, surveying, geotechnical work, permits? The engineer's invoices, and the auditor's proof-of-payment review, would show it.
- Has each board evaluated the engineer under its §49.199 policy, and when?
The engineering contract, invoices and the §49.199 policies are covered by the HCID 14 records request (items 10, 11 and 20).