Sulphur Springs City Council is slated Tuesday evening, Jan. 3, 2023, to consider two ordinances, one setting new sanitation rates and one which would rezone an East Shannon Road property to allow for residential development, and two 380 agreements. Service pins are slated to be awarded and an executive session to be held to discuss personnel and economic development matters.
Sanitation Ordinance
The Council is asked to consider approving on second and, if approved, final reading Ordinance No. 2815, which would amend the sanitation rate ordinance setting new sanitation rates.
Essentially, city officials voted earlier in the year when approving city utility rates to postpone making a decision on the sanitation rate so that the fees would be based on more accurate rates based on consumer price index rates. In August, city officials proposed a 9.8% increase to reflect contract provision.
During a 2022 budget work session, city officials reported that annual contract increases over the past five years have been based on the consumer price index-for urban wage earners and clerical workers (wages for hourly staff — CPI-W) in October, but the city’s rates including any increases are decided on in September.
The sanitation revenue was less than projected over the last year, city staff reports. Both sanitation companies serving Sulphur Springs submit rates at the end of October, which is after the annual budget is adopted (in September) and, typically utility rates for city residents as well.
The City Council at that time opted to postpone setting a new sanitation rate until at least November, which would be after Republic and Sanitation Solutions submitted their requests for increases in sanitation services, as allowed by the contracts the city has with each.
at the Dec. 6, 2022, City Council meeting, Assistant City Manager/Finance Director Lesa Smith proposed a 6.16% increase in rates using a weighted average increase for the contracts.
The landfill sanitation contract increase is based on the consumer price index-for urban wage earners and clerical workers (CPI-W) for October, with the Sanitation Solutions contract based on December’s CPI-W, but capped at 5%. There is no cap on the landfill contract CPI increase. The CPI-W for October came in at a 7.9% increase over October 2021. Although the December CPI won’t be in until this month, Smith noted it it is highly unlikely the CPI percentage increase would fall below the cap of 5%.
Using the weighted average increase for contract, city staff proposed a 6.16% increase in sanitation rates, The landfill charges comprise about 40% of the sanitation expense, with a proposed increase to rates of 7.9% and the collection contract comprises the other 60% of the cost with a proposed increase of 5%. Using the weighted average of the two contracts, the result and proposed sanitation rate increase would be 6.16%.
Sulphur Springs City Council approved on first reading Ordinance No. 2815 on first reading at the Dec. 6, 2022, meeting. The City Council will be asked again during the 7 p.m. meeting Jan. 3, 2023, after a public hearing, to consider approving on second reading Ordinance No. 2815 amending the sanitation rate ordinance setting new sanitation rates. The rate will would go into effect per the city Ordinance with City Council approval Tuesday.
Rezoning Ordinance
The City Council also will be asked to consider approving on first reading Ordinance # 2820, which essentially would the request of Kennedy Commercial-Shannon Rd LLC to rezone 0.78-acre of the property at 1439 East Shannon Road from heavy industrial to multifamily as a proposed Cadi Lane North subdivision.
On Dec. 19, 2022, the City of Sulphur Springs Planning & Zoning Commission held a public hearing and, after discussion, gave approval recommending the request for approval by the City Council at the Jan. 3, 2022, meeting.
The property is located near the intersection of Cadi Lane and Helm Lane, where the developer plans to construct three duplex-style rental properties. The intent is for the property to be very similar to the units Joe Ardis had constructed on Lundy Street, Sulphur Springs Assistant City Manager/Community Development Director Tory Niewiadomski told the P&Z Commission at the Dec. 19 meeting.
Residential development is not permitted in heavy industrial zones. Heavy industrial zoning currently allows for auto wrecking yards, lumber mills, junkyards, factories, and other commercial and rental uses, city staff reported.
The property is surrounded by a variety of zoning types. To the north is a heavy industrial zone, which includes warehousing and offices. To the east is another heavy commercial zone on Helm Lane, where apartments are located. To the south and west is a neighborhood with single family housing which are zoned single family-6.
City staff reported downsizing the zoning to allow for duplexes on the property would be an appropriate transition, given the single family and multifamily housing in the neighborhoods around the property.
Certified letters were sent to 13 surrounding property owners within 200 feet of the proposed zoning change, notifying them of the request and P&Z meeting on Monday, Dec. 19, 2022. The City of Sulphur Springs received five responses to those letters, four that were opposed to the zoning change and one that was undecided because the individual no longer owns property there.
Concerns expressed were for more of a buffer between the single family homes and rental units. The developer of the Woodcreek Subdivision also indicated opposition to the change, as having townhomes or duplexes next door to a new addition would affect existing homes from being sold, Niewiadomski reported at the P&Z meeting.
One reply was from a widow who indicated having more multifamily housing at that address would make her feel measurably more unsafe.
Two of the replies were from a Marianne Circle couple who asked the P&Z Commission to protect their 20-plus-year-old home in the nearby neighborhood with more of a boundary. One claimed the new neighborhood has homes that are sitting empty with no interest shown and that “has made a mess of our streets.”
The Woodcreek Subdivision developer noted the duplexes would be right next door to the entrance to the subdivision. He noted he “put in 30K additionally for stubbing out to the proposed for which zoning change is requested,” which he said “is very unfair for me as a developer.” Ram Yennam noted five single family homes have already been built and are unsold. Adding townhomes or duplexes next to the entrance to the development would further impact the ability to sell those homes.
Niewiadomski recommended the request to rezone the 0.78-acre parcel from heavy industrial to single-family. The P&Z Commission followed the assistant city manger’s lead, recommending the change to the City Council.
Other Items
Also slated during the presentations and announcements portion of the Jan. 3 meeting is the awarding of service pins.
City Manager Marc Maxwell is scheduled to give his monthly report on capital improvements, municipal operations, accidents and claims for the month. Smith, as part of the manager’s report, too will have an opportunity to review expenditures and revenues.
For instance, Smith in December reported the city’s rating by Moody’s Investors Service has upgraded to Aa3 from A1 the City of Sulphur Springs. The issuer rating reflects the city’s credit quality and ability to repay debt and debt-like obligations without consideration of any pledge, security, or structural features. This action concludes a review that was initiated on November 3, 2022, in conjunction with the release of the US Cities and Counties methodology. A change in the methodology used in creating the score was one factor in the city’s improved rating.
Smith also at the Dec. 6, 2022, meeting reported the City was able to pave an additional 3.47 miles over the regular Summer Paving program because of the Street Maintenance Fee (SMF). Overall, that made 7.17 miles the city was able to pave in 2022. As of Sept. 30, 2022, the city had billed $1,009,421in street maintenance fees, had collected $978,871 in SMF, while expending $1,009,806 in SMF.
The 10 street segments (3.47 miles/18,316 feet) paved thanks to the SMF in 2022 were the following:
- Jackson Street — 0.47 mile/2,480 Feet paved at a total cost of $101,725.25, or $41.02 per foot, for Type D asphalt overlay;
- Kasie Street — 0.13 miles/681 Feet, $27,921.91 cost, $41 per foot, for Type D asphalt overlay;
- Lee Street — 0.95 mile/5,000 Feet paved, $404,791.97 cost, $80.96 per foot, for Type D asphalt overlay & cement treatment stabilization;
- Fore Street — 0.20 mile/1,070 Feet, $34,395.66 cost, $32.15 per foot, for Type D asphalt overlay;
- Forrest Lane — 0.21 mile/1,119 Feet, $52,910.99 cost, $47.28 per foot, for Type D asphalt overlay;
- Garrison Street —0.18 mile/ 940 Feet, $49,628.66 cost, $52.80 per foot, for Type D asphalt overlay;
- Glover Street — 0.07 mile/348 Feet, $20,499.21 cost, $58.91 per foot, for Type D asphalt overlay;
- Dabbs Street — 0.08 mile/401 Feet, $22,907.60 cost, $57.13 per foot, for Type D asphalt overlay;
- Azalea — 0.69 mile/3,648 Feet, $154,123.90 cost, $42.25 per foot, for Type D asphalt overlay; and
- Brinker Street — 0.50 mile/2,629 Feet, $140,900.96 cost, $53.59 per foot, for D asphalt overlay.
Submitted for consideration as part of the consent agenda will be minutes for the Dec. 6, 2022, City Council meeting, as well as 380 (infill housing) agreements for property at 1506 Sheffield Street and 607 Lamar Street.
The City Council is slated to conduct an executive session starting at 6:30 p.m. to consult with an attorney, discussion economic development with Ashoka Steel and the position of public works director, a position previously held by Russ Nuss, who passed away Dec. 5, 2022. Action on any items coming from the executive session would be taken during the regular open portion of the meeting, which begins at 7 p.m. Tuesday, Dec. 3, 2022, in the Council Chambers inside Sulphur Springs Municipal Building (city hall) on North Davis Street.
