City council makes decision on utility late fees

San Marcos City Coucilmembers voted Tuesday to continue the city’s pause on terminating utility services and charging disconnect fees for nonpayment during the duration of the COVID-19 pandemic. 

Due to the coronavirus, the city council agreed to halt disconnections in March. In July, councilmembers approved extending the freeze on disconnects.

They also voted to have a special meeting the week of Dec. 8 to discuss the allocation of $2.67 million in general fund dollars as a result of the allocation of $3.65 million in CARES Act funding through the Texas Department of Emergency Management.

After spending much of the CARES funds on eligible medical, public health, payroll expenses and economic support expenses, TDEM recommended the remainder of the funds be allocated to the San Marcos Police Department and fire department payroll expenses, if no further programs would meet the specific program specifications within the tight timeline. 

As a result, there is an excess of $2.67 million in general fund dollars that can be spent on anything, although city council indicated it would go toward COVID-19 relief. 

The council directed city staff to come back with recommendations for the funds. 

In other business, the councilmembers sent the resolution that would have established a moratorium on financial incentives for residential developments back to the council committee on workforce housing for further consideration to distinguish between various financial incentive programs. 

The types of incentives, Public Improvement Districts, Tax Increment Reinvestment Zones and Chapter 380 Economic Development Grants all have different financial implications for the city budget and for the community. 

The resolution called for a moratorium until the city has completed revision of its comprehensive plan and determined if there is a need to offer such incentives.

The city council passed a similar resolution in 2015, although it expired last month, to allow it to see how the market responded to the influx of new units. 

The councilmembers approved the contract with Techline, Inc. through a Cooperative Purchasing Interlocal Agreement with the Lower Colorado River Authority (LCRA), for the provision of materials and supplies to be used by the San Marcos Electric Utility in an estimated annual amount of $4 million. The contract was amended not to include three additional renewals. 

They also approved renewing an agreement with McCoy Tree Surgery, through a Cooperative Purchasing Interlocal Agreement with the LCRA, for tree trimming services for the San Marcos Electric Utility in an estimated annual amount of $1.6 million along with three additional annual renewals. 

This contract was approved with the renewals because it was noted that all projects have to be approved each year by the council in the budget process. It was also noted that the contract allows them to spend up to the designated amount. 

There was additional discussion over approving a renewal of the agreement with the San Marcos Area Chamber of Commerce at an annual amount of $38,100. However it was postponed until the next meeting while staff review the current lease agreement with the Chamber of Commerce after a substantial increase in the amount from $24K to $38K was noted by Councilmember Maxfield Baker.

Councilmembers later voted to create the Community Development Block Grant-Mitigation Advisory Committee and designated Planning and Zoning Commissioners William Agnew, Michael Dillon and Travis Kelsey and Parks and Recreation Advisory Board Members Keith Ubben and Peter A Vogt as its initial members.