Agenda No. 4.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | August 1, 2023 |
| Department: | Public Works |
| Subject: | Resolution 23-R-71 - Consideration and/or action by the City Council of the City of Schertz, Texas authorizing the City Manager to amend the Southern Plant Wastewater Services and Funding Agreement. (B.James/L.Busch) |
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 is requesting this amendment to provide an additional 90 days in which to be able to provide notice.
GOAL
To authorize the City Manager to amend the Southern Plant Wastewater Services and Funding Agreement by extending the written notice requirement deadline 90 days from the 9th anniversary of the Effective Date of the agreement.
COMMUNITY BENEFIT
By extending the deadline for the written notice, our partner entity will have more time to determine whether they will participate in this first phase of southern sewer treatment plant including utilizing capacity in the plant, paying debt service and paying operational costs.
SUMMARY OF RECOMMENDED ACTION
To authorize the City Manager to amend the Southern Plant Wastewater Services and Funding Agreement by extending the written notice requirement deadline 90 days from the 9th anniversary of the Effective Date of the agreement.
FISCAL IMPACT
There is no fiscal impact for extending the notification period by 90 days. Cibolo's debt service contributions begin on the 10th anniversary of the Effective Date if they participate in the Southern Plant. Obliviously, there is a fiscal impact to the City of Schertz based on whether Cibolo utilizes the capacity and pays debt service and operations cost or not.
RECOMMENDATION
Staff recommends City Council approve Resolution No. 23-R-71 authorizing the City Manager to amend the Southern Plant Wastewater Services and Funding Agreement to provide an additional 90 days for Cibolo to provide notice.