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Council approves hazardous-route designation, utility rate changes, employee clinic and a $280,000 settlement
Summary
At its Sept. 16 meeting the San Marcos City Council approved a hazardous-materials transport route to be submitted to TxDOT, adopted new electric and water/wastewater rates, approved a city employee clinic contract with Frontier, and voted to dissolve a development agreement for $280,000 in settlement.
San Marcos City Council on Sept. 16 took several discrete actions, adopting resolutions and ordinances across environmental protection, utilities, employee health and legal settlement matters.
Hazardous-materials route: Council approved resolution 2025-183R (7–0) to request that the Texas Department of Transportation designate a non-radioactive hazardous-materials route through the city along FM 110. Staff explained the route would direct through‑traffic to cross the San Marcos River about five miles east of the downtown I‑35 crossing to reduce spill risk and protect habitat covered by the Edwards Aquifer Habitat Conservation Plan. Staff said the next step is to submit the route proposal to TxDOT, which will publish it in the Texas Register and conduct its review.
Utilities: After public discussion about base charges and affordability, council approved an electric-rate ordinance (2025-39) by a 5–2 vote and a water/wastewater/reclaimed-water ordinance (2025-40) by a 4–3 vote. Staff explained base (minimum) charges cover fixed utility costs such as debt service and billing overhead and cautioned that reducing recommended rate increases could lower the utility ebt-service-coverage ratio below bond covenants, which would have legal and fiscal consequences.
Employee health clinic: Council approved a one-year contract with Frontier Direct Care LLC (resolution 2025-182R) to establish an on-site primary-care clinic for city employees and dependents, with staff saying Frontier has already identified a local San Marcos location pending contract signature. The clinic is designed to mitigate insurance claims and provide an alternate option to emergency-room care; the contract passed 6–0 with one absence.
Legal settlement: Following executive session council approved a settlement with Walton Texas LP and affiliates to dissolve the Cotton Center development agreement and related MUD consent agreement and release covered tracts from the city's wastewater CCN in exchange for $280,000 to the city (motion approved 7–0).
Other votes: The FY2026 schedule of fees (including building-permit reauthorization where required by state law) was adopted (resolution 2025-185R). Several consent and non-consent items moved forward during the meeting; a list of adopted ordinances and resolutions follows.
What this means: The hazardous-route approval begins a state-level review and (if approved) will require signage and coordination with TxDOT. Utilities rate changes are intended to protect system solvency and bond covenants; staff cautioned that rollback of recommended increases would require future higher adjustments or cuts. The Frontier clinic is intended to reduce city health-plan claims by improving access to primary care for employees.
Vote-at-a-glance - Resolution 2025-183R (NRHM route to TxDOT): 7–0 (approved) - Ordinance 2025-39 (electric rates): 5–2 (approved) - Ordinance 2025-40 (water/wastewater/reclaimed): 4–3 (approved) - Resolution 2025-185R (fees, incl. building permits): 5–2 (approved) - Resolution 2025-182R (Frontier clinic contract): 6–0 with one absent (approved) - Cotton Center settlement (closed session result): $280,000 to city; motion approved 7–0
