AGENDA CAPTION:
Title
Consider approval of Resolution 2024-78R, approving an agreement with Clint Jones, owner of Fleming Farms, Highlander S M Two, Rattler Ridge, LP., and JLBC 710 Investments, LLC, owner of Sedona South, to provide for the sharing of costs for the construction of a Wastewater Treatment Plant which will serve their developments and other city needs; authorizing the City Manager, or her designee, to execute the agreement on behalf of the city; and declaring an effective date.
Body
Meeting date: May 7, 2024
Department: San Marcos TX Utilities - Tyler J. Hjorth, Director
Amount & Source of Funding
Funds Required: N/A
Account Number: Click or tap here to enter text.
Funds Available: Click or tap here to enter text.
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Fiscal Note:
Prior Council Action: Executive Sessions on July 3, 2023 and Jan 16, 2024 among others; April 16, 2024 approval of engineering contracts with Ardurra and Freese & Nichols, and a change to Chapter 86 related to out of city utility services.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Public Safety, Core Services & Fiscal Excellence
Environmental Protection
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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☒ Core Services
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Wastewater Master Plan
Background Information:
The Developers of Fleming Farms, Rattler Ridge, Highlander, and Sedona South have agreed to participate in a wastewater treatment plant cost sharing agreement that includes semi-annual payments to the City for each tract, depending on their projected construction schedules, in return for the City permitting, designing, and constructing a treatment plant to serve their respective tracts. The City will have the ability to expand the plant to 8 MGD, satisfying the projected needs of the City through 2065. The Developers also agreed to pay out of city utility rates, even though they will eventually opt out of the City’s extra territorial jurisdiction.
The new WWTP will allow the City to avoid multiple, small package plants throughout the area around and upstream of the San Marcos river; and, the City may drop the protest and court filings protesting the several package plants already seeking state permits to operate.
The future expenditures of $70,000,000 are not projected to impact current ratepayers, who will not begin pay for the initial plant principal and interest until after 2037.
Council Committee, Board/Commission Action:
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Alternatives:
None.
Recommendation:
Staff recommends approval.