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. Cibolo is requesting an additional extension through February 29, 2024.

To authorize the City Manager to amend the Southern Plant Wastewater Services and Funding Agreement by extending the written notice requirement deadline to February 29, 2024.

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 the southern sewer treatment plant including utilizing capacity in the plant, paying debt service and paying operational costs.

To authorize the City Manager to amend the Southern Plant Wastewater Services and Funding Agreement by extending the written notice requirement deadline to February 29, 2024.

There is no fiscal impact for extending the notification period to February 29, 2024. Cibolo's debt service contributions begin on the 10th anniversary of the Effective Date if they participate in the Southern Plant. Obviously, 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.

Staff recommends City Council approve Resolution No. 23-R-122 authorizing the City Manager to amend the Southern Plant Wastewater Services and Funding Agreement to provide an extension of the deadline to February 29, 2024 for Cibolo to provide notice.