Agenda

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12.

City Council Regular Meeting

Meeting Date:

02/20/2024

BACKGROUND

The City of Schertz entered into the Southern Plant Wastewater Services and Funding Agreement with the City of Cibolo and Cibolo Creek Municipal Authority ("CCMA") on August 26th, 2014 ("Effective Date") pursuant to Resolution 14-R-71. Among the provisions of this agreement is a written notice requirement for the City of Cibolo on or before the 9th anniversary of the Effective Date. This notice provided for in section 4(g) of the agreement is a commitment by Cibolo that they meet the provisions of this section and will begin the debt service contributions on the 10th anniversary of the Effective Date. If Cibolo provides notice they have rights to 50% of the sewer capacity in the southern treatment plant. Cibolo previously requested an amendment to extend the notification date for 90 days and Council approved this pursuant to Resolution 23-R-71 on August 1st, 2023. The City of Cibolo requested an additional extension through February 29, 2024 which City Council approved on November 14, 2023 via Resolution 23-R-122.

The City of Cibolo provided written notice that they plan to begin debt service contributions and utilizing capacity in the Southern Sewer Plant. The Cibolo City Council approved a resolution authorizing the City Manager to provide official notice and enter into a Memorandum of Understanding with the City of Schertz and the Cibolo Creek Municipal Authority (CCMA) to meet the requirements of the Southern Plant Wastewater Services and Funding Agreement to begin utilizing capacity and paying debt service.

GOAL

To authorize the City Manager to enter into a Memorandum of Understanding with the City of Cibolo and CCMA to acknowledge that the City of Cibolo is going to utilize capacity and begin paying debt service for the Southern Plant.

COMMUNITY BENEFIT

Continues a partnership with the City of Cibolo and CCMA to provide sewer services the Schertz community.

SUMMARY OF RECOMMENDED ACTION

Approval of Resolution 24-R-13 acknowledging that the City of Cibolo has provided notice per the Southern Plant Wastewater Services and Funding Agreement Section 4 (g) of their intent to utilize the plan and make financial contributions and having obtained all necessary permits, licenses, certificates of convenience and necessity, and approvals to provide wastewater services to a service area large enough to require the wastewater system capacity of the Southern Plant made available to the City of Cibolo by Schertz.

FISCAL IMPACT

The impact of Cibolo opting into the Southern Plan is they will pay half of the dept service for the next 10 years and the full debt service for the final 10 years (the City of Schertz has paid the full debt service for the first 10 years and will pay the other half of the dept service for the next 10 years). Their doing so entitles them to half the capacity in the plant. Given the growth in the southern part of Schertz in the City's CCN and as a result of the settlement agreement with GVSUD, the plant will need to be expanded in the near future to provide additional capacity for Schertz.

RECOMMENDATION

Approval of Resolution 24-R-13.

Attachments
Resolution 24-R-13 with attachment