Seguin council approves land option, utility easement, $10.8M drainage contract and a package of budget and code updates

The Seguin City Council on March (date not specified) approved a package of economic development, infrastructure and budget measures, including an option contract for about 133 acres at the southeast corner of Cordova Road and State Highway 46, acquisition of permanent and temporary utility easements for the FM 20/Hannah Heights water line, award of a $10,807,704 contract for the Guadalupe Street GLO drainage project, and several first-reading ordinances to amend the city budget and code.

Council members said the measures would support planned economic development and utility improvements while keeping capital and grant requirements in view.

The most consequential item was the council’s vote to authorize an option contract between the Seguin Economic Development Corporation and Joyce and Charles Urban for roughly 133 acres at the southeast corner of Cordova Road and State Highway 46 in Guadalupe County. The item followed closed-session negotiations and passed by voice vote; the motion was made and seconded in open session and the mayor announced the motion carried.

Council also authorized the city to execute a purchase agreement with Dorothy Harnage to acquire approximately 1.022 acres of permanent utility easement and 0.5 acre of temporary construction easement needed for the FM 20/Hannah Heights project, a 12-inch water line. That motion passed after being presented in closed session.

The council awarded the Guadalupe Street GLO Drainage Project to Easy Bell Construction LLC with a bid of $10,807,704 under contract number 220850008D236. The project is part of the GLO CDBG-MIT program and includes storm drainage work plus added water and sewer upgrades and roadway repaving along the project limits; staff said the construction completion requirement is calendar year 2027 and project delivery is expected by fall 2026. Seven bids were received; two were disqualified and five were evaluated. The recommended low, qualified bidder’s price was reported to be more than $1 million under the engineer’s estimate and within the project budget.

Council approved a package of budget amendments across funds (general fund, utility fund, special revenue, debt service) on first reading. Finance staff said the amendments account for recently received grants, grant matches, higher-than-expected costs for medical and election expenses, parks watering and tree replacement, insurance premium increases, and equipment purchases (including a skid-steer loader, trailers, police and fire drones, and a grapple truck for brush operations). The amendments also include a planned transfer of more than $1.9 million to a utility reserve fund required to build the reserve for outstanding Texas Water Development Board bonds; staff said the reserve must reach a required level over the next five years.

Council approved an ordinance on first reading to remove outdated roadway-width diagrams and other obsolete material from Chapter 90 (sections 91.31 and 91.32) of the Seguin Code of Ordinances. Staff said the deleted content is already covered by the city’s Road Adequacy Technical Guidance Manual and updated design standards in the Unified Development Code.

Votes at a glance - Option contract for approximately 133 acres (SE corner Cordova Rd & SH 46) — motion approved (voice vote following closed-session deliberations). - Purchase agreement for 1.022 acres PUE and 0.5 acre TCE (FM 20 / Hannah Heights water line) — motion approved (voice vote following closed-session deliberations). - Award to Easy Bell Construction LLC — Guadalupe Street GLO Drainage Project, $10,807,704 (Contract 220850008D236) — approved. - Resolution supporting Texas Senate Bill 1074 and House Bill 2876 (TxDOT/SH 130 funding/amendment authority) — approved. - Resolution approving Seguin Economic Development Corporation loan/financing to support land acquisition for an education campus (sales-tax backed note through Government Capital Corporation) — approved (see separate article for details). - Ordinance on first reading: amendments to Seguin Code of Ordinances Chapter 90, sections 91.31 and 91.32 — approved on first reading. - Ordinances on first reading: various fiscal year 2024–25 budget amendments (general fund, utility fund, special revenue fund, debt service) — approved on first reading.

What the council said and next steps City staff said the GLO drainage project includes concurrent water and sewer upgrades and repaving so the combined work explains the higher cost and longer schedule; staff expects much of the work to finish by fall 2026 to meet the grant closeout timeline. For the utility easements the staff recommended acquisition to secure right-of-way for the FM 20 water line; council approved the purchase agreement after closed-session negotiation.

Most items were approved by voice vote with the mayor announcing motions carried; where additional budget authority is required staff said they will return with a budget amendment (staff indicated an amendment will be brought at the first meeting in April to fund near-term loan payments tied to the economic development financing). No roll-call vote tallies were read into the record during the meeting for these agenda items.

The council recessed into closed session for three economic-development and real-property items and returned to take the two land-related actions above before adjourning.

Ending: Council adjourned following final approvals; staff indicated follow-up budget amendments and contract documents will be brought back for execution as required.