Agenda No. 7.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | May 12, 2026 |
| Department: | Executive Team |
| Subject: | Resolution 26-R-065 - Authorizing the fourth amendment to the southern plant wastewater services and funding agreement (S.Williams/B.James) |
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. This agreement provided that CCMA would build a sewer treatment plant with at least 500,000 gallons per day of capacity. Additionally, the agreement included a requirement for the City of Cibolo, on or before the 9th anniversary of the effective date, to provide notice if they were going to opt into the plant. If they did opt into the plant, they would have rights to 50% of the sewer capacity and begin paying debt service contributions for half of the cost of the plant.
On February 20, 2024, after granting extensions at Cibolo's request, Schertz authorized a Memorandum of Understanding with the City of Cibolo and the Cibolo Creek Municipal Authority regarding the Southern Plant Wastewater Services and Funding Agreement per Resolution 24-R-13 acknowledging that Cibolo was to the southern wastewater treatment plant and begin debt service contributions.
It is believed the southern wastewater plant actually has 600,000 gallons per day of capacity, subject to TCEQ approval as part of the final permit.
Schertz has requested rights to the additional capacity above the 500,000 gallons per day. Cibolo and CCMA are agreeable to allowing Schertz to have rights to that additional capacity. As written in the fourth amended agreement, Schertz would have rights to 350,000 gallons per day and Cibolo would have rights to 250,000 gallons per day. The payments for the plant would change from 50/50 to Schertz paying 58.3% and Cibolo paying 41.7%. The agreement also provides that if the additional capacity is different than anticipated, Schertz will get the capacity beyond the 500,000 gallons per day and pay a proportional amount.
GOAL
Obtain additional needed sewer capacity in a cost effective manner.
COMMUNITY BENEFIT
Develop and maintain water, wastewater and drainage infrastructure.
SUMMARY OF RECOMMENDED ACTION
Approval of Resolution 26-R-065 authorizing the fourth amendment to the southern plant wastewater funding agreement that will provide Schertz with an additional 100,000 gallons per day of wastewater capacity.
FISCAL IMPACT
The cost of the additional estimated 100,000 gallons per day of wastewater treatment capacity is $507,748 that would be paid over the next ten years.
RECOMMENDATION
Approval of Resolution 26-R-065