Agenda No. 14.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | September 16, 2025 |
| Department: | Executive Team |
| Subject: | Resolution 25-R-129 - Authorizing a contract with the Cibolo Creek Municipal Authority (CCMA) for the expansion of the South Wastewater Treatment Plant (S.Williams/B.James) |
BACKGROUND
The Cibolo Creek Municipal Authority (CCMA) provides wastewater treatment services for most of the City of Schertz as well as areas outside of the City of Schertz. CCMA operates two wastewater treatment plants, the Odo J. Riedel Regional Water Reclamation Plant which is off of Schaeffer Road and serves northern Schertz and the South Plant that as the name implies serves southern Schertz. Staff presented a worksession item to City Council on April 15, 2025 about the need to quickly move forward in partnership with CCMA to expand the South Plant (presentation attached). Council provided direction to move forward with CCMA on the plant expansion. Background from that presentation is below.
In late 2014, the City entered into the Southern Plan Wastewater Services and Funding Agreement By and Among Cibolo Creek Municipal Authority, City of Schertz and City of Cibolo to provide for construction of the CCMA South Sewer Treatment Plant. There was a subsequent amendment and a related agreement also approved. The effect of the agreements is that CCMA would build a 500,000-gallons per day sewer treatment plant. Schertz would pay the bonds for the first 10 years. Cibolo would have to decide by late 2023 whether they would opt in to the plant - if they did they would have rights to half of the capacity, but would pay half of the cost (splitting the next 10 years bond payments with Schertz and paying the last 10 themselves). If they did not opt in, Schertz would pay all of the bond costs, but have rights to all of the capacity.In December 2022, the City and Green Valley Municipal Utility District (GVSUD) entered into a mediated settlement agreement. Per that agreement, the City assigned 75,000 gallons per day to GVSUD at not cost and agreed to provide another 50,000 gallons per day with GVSUD paying Schertz's cost for this capacity. So, in total, the City gave up 125,000 gallons per day of capacity to GVSUD. Cibolo asked for a few extensions to make their decision, but ultimately in early 2024 they opted in. As such, they have rights to half of the 500,000 gallons per day of capacity.As a result of this, Schertz has only 125,000 gallons per day of capacity in the plant. At present, only Schertz is contributing flows to the plant.With the Woman Hollering Creek Trunk Line and Lift Station coming online in the last few months, Schertz staff has been able to calculate actual flows from wastewater that was being treated by the Crossvine batch plant, was being pumped and hauled, and from projects that came online at the same time.
As a result, Schertz is already using its allocated 125,000 gallons per day of capacity. There are a number of projects in process that would have to lift up north to the OJR Plant or provide for pump and haul if the City does not obtain more capacity.Schertz has reached out to Cibolo and GVSUD about utilizing their capacity until the plant can be expanded. Schertz has initiated conversations with CCMA and the City of Cibolo about the need to expand the plant. Also, per the settlement agreement, CCMA is required to notify GVSUD about the contemplated expansion so they can determine if they want to participate. Schertz anticipates needing an additional approximately 1,250,000 gallons per day of capacity.
In late 2014, the City entered into the Southern Plan Wastewater Services and Funding Agreement By and Among Cibolo Creek Municipal Authority, City of Schertz and City of Cibolo to provide for construction of the CCMA South Sewer Treatment Plant. There was a subsequent amendment and a related agreement also approved. The effect of the agreements is that CCMA would build a 500,000-gallons per day sewer treatment plant. Schertz would pay the bonds for the first 10 years. Cibolo would have to decide by late 2023 whether they would opt in to the plant - if they did they would have rights to half of the capacity, but would pay half of the cost (splitting the next 10 years bond payments with Schertz and paying the last 10 themselves). If they did not opt in, Schertz would pay all of the bond costs, but have rights to all of the capacity.In December 2022, the City and Green Valley Municipal Utility District (GVSUD) entered into a mediated settlement agreement. Per that agreement, the City assigned 75,000 gallons per day to GVSUD at not cost and agreed to provide another 50,000 gallons per day with GVSUD paying Schertz's cost for this capacity. So, in total, the City gave up 125,000 gallons per day of capacity to GVSUD. Cibolo asked for a few extensions to make their decision, but ultimately in early 2024 they opted in. As such, they have rights to half of the 500,000 gallons per day of capacity.As a result of this, Schertz has only 125,000 gallons per day of capacity in the plant. At present, only Schertz is contributing flows to the plant.With the Woman Hollering Creek Trunk Line and Lift Station coming online in the last few months, Schertz staff has been able to calculate actual flows from wastewater that was being treated by the Crossvine batch plant, was being pumped and hauled, and from projects that came online at the same time.
As a result, Schertz is already using its allocated 125,000 gallons per day of capacity. There are a number of projects in process that would have to lift up north to the OJR Plant or provide for pump and haul if the City does not obtain more capacity.Schertz has reached out to Cibolo and GVSUD about utilizing their capacity until the plant can be expanded. Schertz has initiated conversations with CCMA and the City of Cibolo about the need to expand the plant. Also, per the settlement agreement, CCMA is required to notify GVSUD about the contemplated expansion so they can determine if they want to participate. Schertz anticipates needing an additional approximately 1,250,000 gallons per day of capacity.
GOAL
Provide for the City's strategic goal of developing and maintaining water, wastewater and drainage infrastructure.
COMMUNITY BENEFIT
Provide for the efficient treatment of wastewater.
SUMMARY OF RECOMMENDED ACTION
Approval of Resolution 25-R-129 authorizing an Interlocal Agreement with the Cibolo Creek Municipal Authority for the expansion of the south wastewater treatment plant.
FISCAL IMPACT
The agreement provides the City must give prior approval to any bond issuance. At that time costs will be finalized. The estimated cost to the City of the improvements for design and construction is currently estimated to be $24.5 million for an additional 1.375 million gallons per day.
RECOMMENDATION
Approval of Resolution 25-R-129.