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Agenda No. 6.

CITY COUNCIL MEMORANDUM

City Council Meeting:

February 4, 2025

Department:

Executive Team

Subject:

Resolution 25-R-020 - Authorizing a pro-rata agreement for the Saddlebrook Development (S.Williams/B.James)

BACKGROUND

Jen Texas 32, LLC (Ashton Woods) is the developer of the Saddlebrook Residential Development located on the north side of Lower Seguin Road approximately 4,800 feet east of FM 1518. The developer is seeking approval of an amended pro-rata agreement for the sewer lift station and associated force main (the Saddlebrook Lift Station) with the City. The City Council initially authorized the entering into of a pro-rata agreement, along with other agreements, on April 16, 2024 by Resolution 24-R-40.

Since that time, the excess capacity in the Saddlebrook lift station has increased substantially as a result of it being able to connect into the OJR Sewer Plant without having to account for all of the flows from the Croton Lift Station. It had previously been understood that CCMA, the operator of the OJR Sewer Plant, would only allow one lift station force main connection, which would have required the rerouting of the flows from the existing Croton Lift Station into the Saddlebrook Lift Station in order for the Saddlebrook Lift Station force main connection to replace the Croton Lift Station force main connection.

As a result, there will now be approximately 2,000 excess Equivalent Development Units (EDUs ) of capacity instead of 725. City Staff is restructuring the agreement to be a more typical agreement, but the City is proposing to pay to reserve 360 EDUs of capacity to allow flexibility for existing rights of capacity into the Croton Lift Station, allocate 250 EDUs of capacity to the Rumpf/ Brady Tract based on the Development Agreement, allocate 127 EDUs to Carmel Ranch, allocate 420 EDUs to the Judah Ranch (Bauman tract) and the rest on a first come first served basis.

GOAL

Provide for the orderly development of infrastructure within the City of Schertz.

COMMUNITY BENEFIT

Provide for development of infrastructure in a timely, cost-effective manner.

SUMMARY OF RECOMMENDED ACTION

Approval of Resolution 25-R-020 authorizing the City Manager to enter into a Pro-Rata Agreement for the lift station with Jen Texas 32, LLC.

FISCAL IMPACT

The City would have to pay the developer $688,791.60 within 90 days of execution of this agreement/acceptance of the lift station for the 360 EDUs of capacity. This is down from the $1,387,149.75 in the previously approved agreement. These funds would come from the Water & Sewer Reserve Fund.

RECOMMENDATION

Approval or Resolution 25-R-020.

Attachments

Resolution 25-R-020 with attachment