DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Patricia Muzquiz Cantor
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT: Joint Use Agreement: SAWS use of City-owned property
SUMMARY:
This Ordinance authorizes a Joint Use Agreement between the City of San Antonio (CoSA) and the San Antonio Water System (SAWS) that will assist in the completion of the W-6 Upper Segment: Highway 90 to SW Military Drive Sewer Main Project and accepts an amount of $276,726.00 for the permanent and temporary use of CoSA property at Nelson W. Wolff Municipal Stadium property. The agreement will extend for three years beginning in July 2020. This ordinance also authorizes disbursement to the San Antonio Missions Baseball Club Inc. in the amount of $25,000.00 at the end of each played season for three years for a total of up to $75,000.00 to offset parking revenue loss.
BACKGROUND INFORMATION:
As part of the July 23, 2013 Consent Decree between the San Antonio Water System (SAWS) and the Environmental Protection Agency (EPA), SAWS will be addressing capacity constraints in the western sewer shed of San Antonio. The W-6 Upper Segment Sewer Main Project, a SAWS capital project, will replace and upsize approximately five miles of 54-inch pipe currently running through Lackland Air Force Base with a new 104-inch sewer main. The extent of this segment runs through both Districts 4 and 6 from a point just south of Southwest Military Drive near Leon Creek and just east of Old Pearsall Road, to a point near the intersection of Highway 90 and Callaghan Road.
In order to complete their project SAWS requires the temporary and joint use of CoSA-owned property, specifically 2.63 total acres on the south portion of the Nelson W. Wolff Municipal Stadium property. This ordinance would allow 1.5387 acres of the 2.63 to be used on a permanent basis with the remaining acreage being used temporarily during construction. Most of the construction will take place along the north side of Highway 90, using the parking lot as a staging area. The work is anticipated to take 39 months to complete (see attached diagram).
SAWS received an appraisal from Eckmann Groll Inc. establishing a value of $106,626.00 for the permanent joint use area. This value was reviewed by CoSA’s Real Estate division and found it to be acceptable. A value of $170,100.00 was agreed to by CoSA and SAWS as compensation for anticipated parking revenue loss on approximately 35 events which will be affected by the temporary property use during construction. Therefore, SAWS and CoSA have agreed that $276,726.00 as compensation for the permanent and temporary joint use areas. As agreed to between CoSA and the San Antonio Missions Baseball Club Inc., CoSA will disburse a payment of $25,000.00 per year at the end of each played season for three years for a total of up to $75,000.00 to offset parking revenue loss. The remaining funds will help offset capital project costs for the facility.
ISSUE:
This Ordinance authorizes a Joint Use Agreement between the City of San Antonio and the San Antonio Water System (SAWS) that will assist in the completion of the SAWS W-6 Upper Segment: Highway 90 to SW Military Drive Sewer Main Project. The SAWS sewer project requires the temporary and permanent use of 2.63 acres of CoSA owned property at the Nelson W. Wolff Municipal Stadium. The work will take place on the north side of Highway 90 and will use a portion of the stadium’s parking lot as a construction staging area. Work is anticipated to take 39 months to complete.
ALTERNATIVES:
City Council could choose not to approve this request and require SAWS to redesign the project, increasing costs and resulting in the delay of the projects and potentially subjecting SAWS to penalties under the Consent Decree with the EPA.
FISCAL IMPACT:
This ordinance authorizes acceptance of $276,726.00 from SAWS for the permanent and temporary Joint Use Agreement of CoSA property to be deposited in the Wolff Stadium Building Fund and authorizes disbursement to the San Antonio Mission Baseball Club Inc. in the amount of $25,000.00 at the end of each played season for three years for a total of up to $75,000.00.
RECOMMENDATION:
Staff recommends approval of an ordinance accepting the Joint Use Agreement between the City of San Antonio and the San Antonio Water Systems.