Agenda No. 5.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | September 17, 2024 |
| Department: | Public Works |
| Subject: | Resolution 24-R-105 – Authorizing the Agreement for Management Services with SSLGC For Fiscal Years 2024-2026. (B.James/L.Busch) |
BACKGROUND
The Schertz-Seguin Local Government Corporation (SSLGC) was created as a wholesale water supply system for the cities of Schertz and Seguin. The Carrizo Aquifer is utilized for this purpose to benefit both cities. SSLGC was formed in December 1998 and is governed by a board which consists of five directors and two ex-officios appointed by the city councils of Schertz and Seguin. SSLGC began actual production in September 2002 and has continued to grow to serve the Cities of Schertz and Seguin as their primary water source. SSLGC maintains a strong wholesale water customer base including contracts with the Cities of Selma, Universal City, as well as Springs Hill Water Supply Corporation and the San Antonio Water System.
The City of Seguin, the City of Schertz, and the Schertz/Seguin Local Government Corporation desire that the SSLGC contract with the City of Schertz for the services of a General Manager and an Assistant General Manager, to implement, administer, and carry out the duties required for the operations of the public water systems owned by SSLGC; and, that the SSLGC contract with the City of Seguin for the remainder of the employees utilized by the SSLGC and for administrative services for the SSLGC. SSLGC combined the Management Services Agreement (formerly two separate agreements between each city and SSLGC) into one document that would be effective through September 30, 2026.
It is the desire of SSLGC to have the Management Services Agreement between SSLGC, the City of Schertz, and the City of Seguin approved by the City of Schertz City Council. On August 15, 2024, the Schertz/Seguin Local Government Board of Directors approved to extend the Management Services Agreement between the SSLGC, the City of Seguin and the City of Schertz. The only suggested changes are to the term of the agreement with the new term being October 1, 2024 through September 30, 2026.
The City of Seguin, the City of Schertz, and the Schertz/Seguin Local Government Corporation desire that the SSLGC contract with the City of Schertz for the services of a General Manager and an Assistant General Manager, to implement, administer, and carry out the duties required for the operations of the public water systems owned by SSLGC; and, that the SSLGC contract with the City of Seguin for the remainder of the employees utilized by the SSLGC and for administrative services for the SSLGC. SSLGC combined the Management Services Agreement (formerly two separate agreements between each city and SSLGC) into one document that would be effective through September 30, 2026.
It is the desire of SSLGC to have the Management Services Agreement between SSLGC, the City of Schertz, and the City of Seguin approved by the City of Schertz City Council. On August 15, 2024, the Schertz/Seguin Local Government Board of Directors approved to extend the Management Services Agreement between the SSLGC, the City of Seguin and the City of Schertz. The only suggested changes are to the term of the agreement with the new term being October 1, 2024 through September 30, 2026.
GOAL
To authorize the Management Services Agreement.
COMMUNITY BENEFIT
In addition to helping ensure SSLGC maintains compliance with state/local law, through this MSA, Schertz is controlling costs which would impact tax rates and fees passed along to Schertz residents, as well as maintaining our partnership with SSLGC.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of the Resolution authorizing the Management Services Agreement.
FISCAL IMPACT
Fiscal impact varies depending on the yearly operating budget as approved separately.
RECOMMENDATION
Approval of Resolution 24-R-105.