On the agenda: Sulphur Springs September 1, 2026 Regular City Council Meeting Minutes — data center (Sep 1)

CITY OF SULPHUR SPRINGS, TEXAS
REGULAR MEETING OF THE
CITY COUNCIL
September 1, 2026
The following council members and staff were present:
Mayor Gary Spraggins
Mayor Pro Tem Oscar Aguilar
Councilman Jay W. Julian
Councilman Craig Johnson
Councilman Tommy Harrison
Councilman James Schumacher
Councilwoman Tiffany Gebel
Absent: None
Marc Maxwell, City Manager
Natalie Burling, City Secretary
Daniel Ray, Interim City Attorney
Tory Niewiadomski, Director of Community Development/Asst City Manager
Lesa Smith, Finance Director/Assistant City Manager
Jason Ricketson, Chief of Police
Gordon Frazier, H.R. Director/Assistant City Manager
Bryan Craig, Director of Public Works
Chris Brown, Executive Director, Sulphur Springs-Hopkins County Economic Development
Corporation
Jerry Maynard, Director of Parks and Recreation
CALL TO ORDER
Mayor Spraggins called to order the regular meeting of the Sulphur Springs City Council at 6:00
p.m. at City Hall, 201 North Davis Street.
EXECUTIVE SESSION
Mayor Spraggins read the executive session notice and asked whether anyone present wished to
address the Council on the executive session items; no one wished to speak. Councilman Harrison
made a motion to convene into executive session. Mayor Pro Tem Aguilar seconded and the vote
was unanimous. The City Council convened into executive session at 6:03 p.m. in accordance with
Texas Government Code §551.087, Deliberation Regarding Economic Development Negotiations
(Project Compound); §551.071, Consultation with Attorney (SSDC1 Chapter 380 Agreement
compliance/enforcement and Resolution 1533); and §551.074, Personnel (Interim City Attorney
agreement).

Councilman Johnson made a motion to close the executive session and reconvene in open session.
Councilwoman Gebel seconded and the vote was unanimous. The City Council reconvened in
open session at 7:20 p.m.
PLEDGE OF ALLEGIANCE TO THE UNITED STATES FLAG, TEXAS FLAG, AND
INVOCATION
Mayor Spraggins led in the pledge of allegiance to the United States Flag and the Texas Flag, and
led the invocation.
PRESENTATIONS, PROCLAMATIONS, AND ANNOUNCEMENTS
Charlotte Abbott, Constitution Week Chairman of the Captain David Phillips Chapter of the
Daughters of the American Revolution, announced that the chapter will have a Constitution Week
display at the Sulphur Springs Library from September 17 through September 23. Mayor
Spraggins read and presented a proclamation proclaiming the week of September 17 through 23,
2026, as Constitution Week.
Mayor Spraggins read a proclamation proclaiming the month of November as Epilepsy Awareness
Month. Courtney Egan, who was to receive the proclamation, was not present.
Councilwoman Gebel welcomed Scout Troop 69, attending the meeting for their civic awareness
badge.
Manager Maxwell announced that CyrusOne will hold a town hall on September 24, 2026, at 6:00
p.m. at the Hopkins County Civic Center, that the event is expected to be RSVP only, and that
details will be forthcoming through local media and possibly mailers.
MANAGER’S REPORT WILL INCLUDE A STATUS REPORT OF CAPITAL
IMPROVEMENTS, MUNICIPAL OPERATIONS, ACCIDENTS AND CLAIMS FOR
THE MONTH, AND A REVIEW OF EXPENDITURES AND REVENUES
Manager Maxwell presented the staff report.
Claims
One workers’ compensation claim was reported during August. On August 15, 2026, a police
officer assisting an injured cat suffered a bite with puncture wounds to his left index finger. The
officer was treated and released to full duty, the cat has been quarantined by Animal Control, and
a first report of injury has been filed with TML. No liability claims, property claims, notices of
claim, or lawsuits were received during the month.
Thermo 21” Sewer Line
Crews installed 1,624 feet of 21-inch sewer line and three new manholes during the month,
bringing the total installed to 4,984 feet. Crews also installed 12 feet of 12-inch pipe for future use,
lowered a 60-foot section of 18-inch water line that conflicted with the sewer line, and added cover
to about 1,000 feet of the new line. The bore contractor has not completed the bore under the
railroad spur and access road because of continuing mechanical problems, and crews will proceed
past the bore location and continue eastward.

Bright Star Field (Celebration Field at Buford Park)
Field construction is 100% complete and construction of the concession and bathrooms is about
35% complete. Landscape and irrigation installation is planned for late September. Public Works
hauled dirt for the landscape mound and began excavating for the parking and driveway, and utility
crews designed a 285-foot water-main extension and a new sewer tap for the field.
City Hall Expansion
Dirt work has concluded and the contractor is expected to begin drilling and setting piers this week.
Street Improvement Program (SIP) – 2026
Goodman and Bergin Streets, which were not on the original list, were added to the program
because material quantities came in under estimate; work on those streets is expected to begin this
week. When the program is complete, approximately five miles of streets will have been repaved.
Manager Maxwell expects to present next year’s list of streets at the October meeting.
Street
Asphalt/Conc. Repair
Hodge
Colorado
Fleming
Putman
Mulberry
League
Moore
Gaines
Raintree
N. Lake Rd. and ramp
Towne
Lemon
Able and Ava
Davis St.
Southland
Simms
Cranford
League
Coleman Park Drive
Mitchell
Goodman
Bergin
Total Feet
Total Miles
S.E.C.O. LED Light Upgrade

Between
various soft spot repairs
League to Barbara
Longino to Jackson
Church to Rosemont
Carter to Como
Park to Glover
Connally to Houston + curve
Main to Connally
Fuller to Putman
Loop 301 to Loop 301
Peerless Hwy to ramp
Hinnant to Robertson
Bill Bradford-McGrede to Sprite
Putman to Fuller
South Davis from RR to Kyle
Davidson to end
Freeman to end
Austin to Hodge
Main to Bellview
Gas Line to Parking Lot 5
Jefferson to Putman

Length
1000
1130
401
428
1299
1316
1193
422
2978
3200
412
1088
820
2149
898
400
891
2096
1094
1868
860
676
26,619
5.04

Installation of the Coleman Park LED lighting project is complete. Staff is wrapping up
documentation and preparing to file for final payment of $250,000.
Departmental Activity
Public Works • Repaired 146 potholes and cleaned storm drains one time. • Repaired the street
following 22 water or sewer repairs and made one major repair from a street failure. • Continued
the program to check every street and trim trees within 14 feet of the street; removed two trees that
had fallen in the road. • Picked up 10 tons of cold mix in Terrell; installed conduit for electric
service to the new communications tower; repaired a sinkhole on Como Street; shredded roadsides
on Rockdale Road, Holiday Lane, Maxwell Street, Vaughn Drive, and Majors.
Utilities — Water • Repaired 23 water-main breaks ranging from ¾” to 8”. • Replaced 18 (¾”)
water meters, one 1” meter, and 4 meter boxes. • Located over 21,000 feet of water mains for
contractors; installed one 1-inch tap and one ¾-inch tap; installed 40 feet of 6-inch water pipe and
set a new fire hydrant at the College Street water tower.
Utilities — Sewer (City Lines Only) • Responded to 12 city sewer calls, 10 private calls, and 2
grease calls. • Repaired or replaced one 4-inch and one 6-inch sewer line. • Washed over 82,000
feet of sewer mains as part of the F.O.G. program. • Installed one new 4-inch sewer tap and located
over 22,000 feet of sewer mains for contractors.
Wastewater Treatment Plant • Monthly average effluent TSS measured 0.41 mg/L. • Hauled
736.58 tons of sludge, and 405.92 tons of sludge from the Water Treatment Plant, to the Maloy
Landfill. • Performed preventive maintenance on final clarifiers, continued removing old sludge
from basin #3, troubleshot a SCADA issue, and replaced the pump in the Can-Tex lift station.
Electrical and Facility Maintenance • Started running conduit for the Thermo mine radio-tower
antenna project; installed a food-truck receptacle at the Airport; replaced solar lights on the
Coleman walking trail and the main pump for the Plaza splash pad; installed a new service to the
school-zone light on Davis Street; adjusted lights at the pickleball court; and performed routine
building maintenance.
Water Treatment Plant • Collected bacteriological and TOC samples, flushed dead-end mains,
attended the Public Drinking Water Conference, began building a new chlorine back plane for
plant upgrades, and received chemical bids.
Community Development • Conducted 62 building, 7 electrical, 17 plumbing, and 5 mechanical
inspections. • Issued 25 building permits and 39 trade permits. • Planning & Zoning recommended
the proposed Comprehensive Plan be sent to the City Council for approval. • The Downtown
Revitalization Board approved sign design applications for 210 Main Street and 119 College
Street. • Engineering handled 25 development inquiries, advanced recording of Hasi Meadows and
Stone Creek Phase 2, reviewed multiple development matters, advanced the Putman Street
TxCDBG project, prepared the Armstrong Steel Community Facilities Contract, and continued
Thermo regulatory coordination and the 12.09-acre land transfer.

Fire Department • Responded to 226 calls for service. • Conducted 40 inspections and maintained
74 fire hydrants. • Logged 178 hours of continuing education training. • Responded to 3 structure
fires, 1 vehicle fire, 12 non-structure fires, and 14 fire alarms, and provided 8 mutual aid responses.
Police Department • Responded to 2,076 calls for service. • Investigated 22 traffic accidents
resulting in 6 injuries and no fatalities. • Issued 491 citations, recorded 53 offenses, and made 62
arrests. • Detectives attended Internal Affairs Investigation Training. • Narcotics: 19 drug cases,
14 felony and 6 misdemeanor charges filed, and 2 undercover buys.
Animal Control • Responded to 115 complaint calls and picked up 11 dogs and cats, 6 owner dropoffs, and 9 wild animals. • Returned 11 animals to owners and facilitated 7 adoptions. • Issued 7
citations and responded to 3 animal bite reports. • Shelter adoption rate was 90 percent.
Library • Recorded 4,920 visitors and 4,113 checkouts, and 206 users downloaded 921 eBooks. •
Programs included the Career Online High School graduation and Can Help and WIC outreach. •
Construction began at the Library.
Parks & Recreation • Downtown and park maintenance continued throughout the month, including
daily bathroom cleaning, mowing, irrigation repairs, fountain vault cleaning, banner changes,
weed and fungicide treatment, and event support. Staff aerated all sports fields, top-dressed the
soccer fields with 96 yards of sand, spread 120 yards of playground mulch at Pacific and Buford
Parks, prepared Grays Building for 11 rentals, repaired the Kids Kingdom playground, and cleaned
the water’s edge around Coleman Lake. Senior Center staff assisted with 118 activities.
Airport & Tourism • Recorded 2,606 aircraft operations. • Sold 4,698 gallons of AvGas and 5,970
gallons of Jet-A fuel. • Continued tourism promotion, event assistance, Friday Night Movies, and
the Saturday Celebration Market, and planned upcoming aviation community events.
No out-of-state travel was reported.
In response to a question from Councilman Johnson, Manager Maxwell explained that Putman and
Alabama Streets are full reconstructions under a different program, not repaving. In response to
questions from Councilman Julian, Manager Maxwell stated that Alabama Street is the last
remaining project in the 2017–2022 capital improvement plan, that reconstruction has been
completed to Como Street with another block or two remaining, and that the remainder will be
completed after the Thermo water and sewer work, personnel being the limiting factor.
Councilman Julian asked for a public-facing update on One Nuclear Energy LLC, and Manager
Maxwell responded that the company had made a proposal to install gas-powered generators and
that the City never pursued it.
Finance Director/ACM Smith presented the July 2026 financial report. Sales tax collections
through August were approximately 40% higher than the same period last year, with $6,545,740
collected for the City to date and an additional $3,272,000 for the EDC; the proposed FY 2027
budget was prepared conservatively. Projections for the General Fund, Enterprise Fund, Airport

Fund, and Tourism Fund were largely unchanged. The investment report showed a weighted
average return of 3.67%, outperforming the four-week T-bill benchmark of 3.63%.
DISCUSSION/ACTION ON CONSENT AGENDA
City Secretary Burling explained, for the benefit of the Council and the public, that she prepares
summary minutes rather than verbatim transcripts; that state law requires minutes to state the
subject of each deliberation and record each vote, order, decision, or other action taken; that
documents or emails submitted by citizens are not attached to the minutes but are retained by the
City Secretary and made available on request, consistent with the Council’s Rules of Procedure
and the City’s records retention requirements; and that this practice keeps the official record
accurate, searchable, and consistent.
City Secretary Burling presented the staff report. Consider for approval the City Council Regular
Meeting Minutes of 08/04/2026; the Special Draft Budget Workshop Meeting Minutes of
08/04/2026 and 08/11/2026; the City Council Special Meeting Minutes of 08/14/2026; the
Planning and Zoning Meeting Minutes of 07/20/2026; the Economic Development Corporation
Meeting Minutes of 07/27/2026; the Downtown Revitalization Board Meeting Minutes of
06/30/2026 and 08/04/2026; and 380 agreements for 201, 203, and 205 Bellview Street, 624
Putman Street, and 826 Mulberry Street. Councilman Johnson made a motion to approve the
consent agenda. Mayor Pro Tem Aguilar seconded and the vote was unanimous.
The motion carried.
CONDUCT A PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2026-2027
BUDGET
Mayor Spraggins opened the public hearing at 7:41 p.m. Steve Jones of Highway 19 South asked
whether the First Baptist Church parking and right of way improvements were included in the
budget. Finance Director/ACM Smith responded that the work does not have its own line item and
is expected to come from the street department budget. There being no further comments, the
public hearing was closed at 7:42 p.m.
DISCUSSION/ACTION ON FIRST READING OF ORDINANCE NO. 2903 ADOPTING
THE FY 2027 BUDGET AND APPROPRIATING FUNDS FOR THE FISCAL YEAR
BEGINNING OCTOBER 1, 2026
Finance Director/ACM Smith presented the staff report. The proposed budget totals $62,017,450
and reflects the draft budget discussed at the budget workshops with the following changes: the
projected 2026 contingency was changed to $30,000 to reflect the potential cost of moving the
police and fire communications tower; the cost of living adjustment for all employees was
increased from 3% to 3.5%; the TMRS rate was increased to reflect 100% repeating updated
service credits with transfers; and lobbying expense was separated in the Capital Fund as required
by state law. Melissa Harris spoke regarding the lobbying expense.
Councilman Harrison made a motion to approve the first reading of Ordinance No. 2903 adopting
the FY 2027 budget and appropriating funds for the fiscal year beginning October 1, 2026. Mayor

Pro Tem Aguilar seconded. In response to a question from Councilman Johnson, Director Smith
confirmed that the budget is built on 100% repeating updated service credits, which is a separate
item on the agenda. A roll call vote was taken and the vote was as follows:
AYES: JOHNSON, AGUILAR, HARRISON, SPRAGGINS, GEBEL
NOES: JULIAN, SCHUMACHER
The motion carried.
DISCUSSION/ACTION ON FIRST READING OF ORDINANCE NO. 2904 SETTING
THE 2026 TAX YEAR PROPERTY TAX RATE FOR THE 2027 FISCAL YEAR
Mayor Spraggins noted that the motion must be made using the language required by the Texas
Tax Code as provided in the agenda packet. Mayor Pro Tem Aguilar moved that the property tax
rate be increased by the adoption of a tax rate of $0.43894 per $100, which is effectively a 7.82
percent increase in the tax rate. Councilman Harrison seconded.
Councilman Julian stated that he could not vote for a rate above the no-new-revenue rate without
receiving sufficient fiscal and contractual information regarding the Thermo obligations included
in the FY 2027 budget. Steve Jones of Highway 19 South, Jaime Mitchell, Rebecca Wix, and Jack
Curtis of Craig Ridge Road spoke regarding the proposed tax rate, and staff responded to questions.
A roll call vote was taken and the vote was as follows:
AYES: JOHNSON, AGUILAR, HARRISON, SPRAGGINS
NOES: JULIAN, SCHUMACHER, GEBEL
The motion carried.
Following the vote, Finance Director/ACM Smith advised the Council that final adoption of the
tax rate on September 16, 2026, will require five affirmative votes.
DISCUSSION/ACTION ON FIRST READING OF ORDINANCE NO. 2905 AMENDING
WATER RATES EFFECTIVE OCTOBER 1, 2026
Finance Director/ACM Smith presented the staff report. The ordinance sets water rates effective
October 1, 2026, as proposed at the August budget meetings, reflecting an increase of
approximately 3% in base rates and usage fees. Leslie Northcutt of Holly Circle and Melissa Harris
spoke regarding the proposed rates, and staff responded to questions. Councilman Johnson asked
clarifying questions regarding the calculation of the base rate and usage fee.
Councilman Johnson made a motion to approve the first reading of Ordinance No. 2905. Mayor
Pro Tem Aguilar seconded. A roll call vote was taken and the vote was as follows:
AYES: JOHNSON, AGUILAR, HARRISON, SPRAGGINS
NOES: JULIAN, SCHUMACHER, GEBEL
The motion carried.
DISCUSSION/ACTION ON FIRST READING OF ORDINANCE NO. 2906 AMENDING
SEWER RATE
Finance Director/ACM Smith presented the staff report. Sewer rates are proposed to increase by
3% effective October 1, 2026. Derek Funderburk of County Road 1109 and Melissa Harris spoke

regarding the proposed rates and the payment of delinquent property taxes on a building at the
wastewater treatment plant, and staff responded to questions. Councilman Julian stated that the
contract with the former contractor had required taxes and insurance to be kept current and that
the City had not tracked those obligations. In response to a question from Councilman Julian,
Director Smith stated that FY 2027 sewer sales are budgeted approximately $150,000 above
projected FY 2026 sales.
Mayor Spraggins made a motion to approve the first reading of Ordinance No. 2906. Councilman
Harrison seconded. A roll call vote was taken and the vote was as follows:
AYES: JOHNSON, AGUILAR, HARRISON, SPRAGGINS
NOES: JULIAN, SCHUMACHER, GEBEL
The motion carried.
DISCUSSION/ACTION ON FIRST READING OF ORDINANCE NO. 2907, AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SULPHUR SPRINGS,
TEXAS, AMENDING ORDINANCE NO. 2889, THE MASTER FEE SCHEDULE FOR
COSTS, FEES AND RATES ASSOCIATED WITH PERMITTING, UTILITY SERVICES
AND OTHER SERVICES PROVIDED BY THE CITY
Finance Director/ACM Smith presented the staff report. Minimal changes are proposed: the
Airport tie-down fee is reduced by $5 to $10; the Community Development Department proposes
a $200 video game facility license fee and an increase in the food establishment re-inspection fee
to $175; and the mobile food vendor permit is eliminated. Councilman Harrison made a motion to
approve the first reading of Ordinance No. 2907. Councilman Johnson seconded and the vote was
unanimous.
The motion carried.
DISCUSSION/ACTION ON FIRST READING OF ORDINANCE NO. 2908
AUTHORIZATION OF UPDATED SERVICE CREDITS
Human Resources Director/ACM Frazier presented the staff report. As discussed during the budget
workshops, the ordinance authorizes 100% annually repeating updated service credits, with
transfer credits, through the Texas Municipal Retirement System, in which each full-time
employee participates. Councilman Johnson made a motion to approve the first reading of
Ordinance No. 2908. Mayor Pro Tem Aguilar seconded and the vote was unanimous.
The motion carried.
DISCUSSION ONLY ON ELIMINATION OF ROAD MAINTENANCE FEE, $50
MONTH RESIDENTIAL ELECTRIC BILL CREDIT, $50 MONTH RESIDENTIAL
WATER BILL CREDIT, COLEMAN PARK PICKLEBALL LIGHTING RETROFIT,
PUBLIC MEETING AND CONFERENCE CENTER, HOMESTEAD EXEMPTION
INCREASE TO 100%
Mayor Spraggins noted that the item was for discussion only and that no action would be taken.
Manager Maxwell presented a staff briefing on the items placed on the agenda at the request of

Councilman Johnson at the August meeting, addressing how anticipated data center revenue might
be returned to residents and used for capital projects.
Street maintenance fee. The fee was created in 2018, with collections beginning in 2019, as a
dedicated revenue source restricted to the Street Improvement Fund for overlay work. It generates
approximately $1.05 million per year at monthly rates of $10 for residential and multifamily
accounts, $22.50 for commercial accounts, and $50 for industrial accounts, and is set to expire
January 1, 2029, unless extended. Staff recommended that, if the Council wishes to repeal the fee,
it do so once replacement revenue from the data center project begins to be received. For phase
one of the project, staff estimates approximately $5 million per year in property tax, $9.9 million
to $16.5 million per year in payments in lieu of electric franchise fees, and approximately $8.3
million in construction sales and use tax, with additional sales tax on natural gas and property tax
on the generation plant not yet estimated.
Residential electric rebate. Staff outlined a possible program under which the City would pay a
flat annual rebate to every qualifying residential electric account within the city limits, estimated
at 6,943 meters, funded by the data center’s payments in lieu of franchise fees of $0.002905 per
kilowatt-hour. A $600 annual rebate was used as a working example, with the amount to be set by
the Council each year based on revenue received, paid once a year through participating retail
electric providers or directly by the City. The program would require public purpose findings, an
ordinance, standard provider agreements, and account verification and audit provisions. The
residential water bill credit was not separately presented.
Coleman Park pickleball lighting. Staff proposed replacing the existing fixtures on the existing 35foot poles with 12 downlighting fixtures designed by Musco to provide approximately 30 footcandles of even coverage with zero modeled spill at the adjoining residential property line. The
turnkey cost is approximately $56,000 for the recommended option or $49,213 for a lowerspecification option, with a 10-year warranty. Councilman Johnson stated that the item is not in
the budget and suggested the cost could be raised from private funds.
Public meeting pavilion. Staff proposed a pavilion of approximately 2,500 gross square feet with
1,750 square feet of assembly area for about 100 people, with two accessible restrooms, a compact
kitchen, and audio-visual equipment, located at the southern end of the proposed Downtown West
plan. The estimated cost is $3.5 million if built as part of the Downtown West project or up to $5.2
million if it must bear all infrastructure costs, excluding land, which the City does not own at that
location. The Grays Building currently rents 17 to 23 times per month.
Homestead exemption. The City already grants the maximum 20% local homestead exemption.
Increasing the exemption to 100% of city tax would require enabling legislation, which the City’s
state representative is willing to sponsor, and a statewide constitutional election in November
2027, after which the Council could adopt the exemption before July 1, 2028, for the October 2028
tax bills. The cost is estimated at $1.8 million per year. The data center campus would continue to
pay the city rate, subject to any tax abatement agreement. Staff and the City Attorney are also
investigating other methods of returning revenue to taxpayers.

Unknown Speaker (did not fill out a card and inaudible on recording), Brad Johnson of Junell
Drive, Jaime Mitchell, Cale McClure, Leslie Northcutt, and Tyler Stout spoke regarding the
proposals and the data center revenue estimates, and staff responded to questions. City Attorney
Ray advised that responses during public comment are limited to statements of fact or policy. In
response to questions from Councilman Julian, Manager Maxwell stated that a 100% residential
homestead exemption would not affect commercial taxpayers and that he would research whether
a wind-down provision would apply should the data center close. In response to a question from
Cale McClure, Manager Maxwell stated that the TIRZ would receive an estimated additional $2.2
million per year from phase one, separate from the estimated $5 million to the General Fund. No
action was taken.
Mayor Spraggins recessed the meeting at 9:12 p.m. and reconvened at 9:22 p.m.
DISCUSSION/ACTION REGARDING COMPLIANCE WITH, ENFORCEMENT OF,
AND POTENTIAL DEFAULT AND TERMINATION OF THE CHAPTER 380
ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SULPHUR
SPRINGS AND SSDC1, LLC, INCLUDING CONSIDERATION OF RESOLUTION 1533
AND UNRESOLVED PERFORMANCE AND INSURANCE OBLIGATIONS
Councilman Julian presented the item and a chronology included in the agenda packet addressing
the Agreement executed May 13–14, 2025; the September 1, 2025 construction commencement
milestone; the City Attorney’s material breach and demand to cure notices of November 10,
November 19, and December 3, 2025, regarding required liability insurance; the insurance policy
provided and subsequently cancelled; the 30-day cure period under Section 5.3; and Resolution
No. 1533, adopted June 2, 2026, which recites that the September 1, 2025 commencement date
has passed. Councilman Julian also read a March 10, 2026 email to the City Manager requesting
the status of the required liability insurance and the City Manager’s response that SSDC1, LLC
had not provided evidence of liability insurance and that he did not expect it until after the lawsuit
is resolved, and a July 28 text exchange in which the City Manager stated that the developer had
not started work.
Councilman Julian moved that the City Council direct the City Manager and the Interim City
Attorney to enforce the Chapter 380 Economic Development Agreement with SSDC1, LLC
according to its terms; that for each noticed or otherwise identified unsatisfied obligation of
SSDC1, LLC under the Agreement, the City Manager and the Interim City Attorney provide the
City Council, on or before September 16, 2026, a written report identifying the applicable
contractual requirement, the present compliance status, the date of any notice provided to the
developer, any cure claimed by the developer, the evidence relied upon to establish such cure, and,
if any cure period is asserted to remain open, the contractual provision creating that cure period
and the dates on which it commenced and is scheduled to expire; that pending the City Council’s
consideration of that report, the City Manager and the Interim City Attorney refrain from granting
or executing any additional waiver, extension, consent to assignment, amendment, additional
conveyance, or other discretionary benefit under or arising from the Agreement unless and until
the applicable contractual conditions for such action have been satisfied; and that if the City

Manager or the Interim City Attorney determine that an event of default has occurred and remains
uncured and that the contractual prerequisites for termination under Section 5 have been satisfied,
that determination be promptly presented to the City Council for consideration and action, with no
termination of the Agreement to be executed without further action and authorization by the City
Council. Councilman Schumacher seconded.
Rob Knight of Tyler, Texas, attorney for SSDC1, LLC, addressed the Council regarding the status
of the litigation and restraining order affecting the property, the force majeure provisions of the
Agreement, and the insurance coverage obtained by SSDC1, LLC, and stated that the property is
currently insured through April 1, 2027. Councilman Julian questioned Mr. Knight regarding the
date construction commenced. Steve Jones, Bernice Fitzgerald of Cherrywood Street and Jaime
Mitchell of Country Club Road spoke regarding the data center project and the City’s due diligence
on the developer’s funding, and Manager Maxwell responded to questions.
At the request of Mayor Spraggins, Councilman Julian read the motion again and, asked to
summarize it, characterized it as a request for an audit of construction commencement and
insurance compliance with a report back to the Council. In response to a question from
Councilwoman Gebel, Councilman Julian read from certificates of insurance dated January 9,
2026 and April 8, 2026, issued through Willis Towers Watson, listing CyrusOne Holdco, LLC as
the insured and the City of Sulphur Springs, MSB Global Services, LLC, and SSDC1, LLC as
additional insureds; Mayor Spraggins noted that the April certificate is the renewal. A roll call vote
was taken and the vote was as follows:
AYES: JULIAN, SCHUMACHER, GEBEL
NOES: JOHNSON, AGUILAR, HARRISON, SPRAGGINS
The motion failed.
DISCUSSION/ACTION ON POLICE DEPARTMENT ASSET FORFEITURE BUDGET
Chief Ricketson presented the staff report. The proposed asset forfeiture budget of approximately
$100,000 will be used for equipment such as radio equipment, computers, and vehicle equipment
and for unbudgeted replacements during the year. Councilman Julian made a motion to approve
the Police Department asset forfeiture budget. Councilman Schumacher seconded and the vote was
unanimous.
The motion carried.
DISCUSSION/ACTION ON MOTION TO APPROVE ENGAGEMENT LETTER WITH
SCOTT, RAY, PEMBERTON & GOLL FOR LEGAL SERVICES AND AUTHORIZE
THE CITY MANAGER TO EXECUTE THE CONTRACT
Councilman Julian asked that the provision of the August 26, 2026 engagement letter allowing the
firm to hire outside legal, accounting, or other professionals and consultants subject to preapproval by the City Manager be changed to require pre-approval by the City Council. City
Attorney Ray responded that requiring Council pre-approval could be problematic given the time
between meetings and the time-sensitive litigation the City is facing, and suggested alternatives

including notification and ratification by the Council at its next meeting or approval by a nonquorum group of council members. In response to a question regarding a dollar limitation, Mr.
Ray stated that a $10,000 aggregate limit, with a report to the Council at each meeting thereafter,
would be workable. Councilman Harrison recommended approving the letter as written.
Councilwoman Gebel made a motion to approve the engagement letter with the modification that
the firm’s authority to hire outside professionals be subject to a $10,000 aggregate limit, above
which City Council approval is required. Councilman Julian seconded. Councilman Johnson made
a motion to amend the motion to increase the limit to $20,000. Councilman Harrison seconded. A
roll call vote was taken on the amendment and the vote was as follows:
AYES: JOHNSON, HARRISON, SPRAGGINS
NOES: JULIAN, AGUILAR, SCHUMACHER, GEBEL
The amendment failed.
A roll call vote was then taken on the original motion and the vote was as follows:
AYES: JULIAN, JOHNSON, AGUILAR, SPRAGGINS, SCHUMACHER, GEBEL
NOES: HARRISON
The motion carried.
DISCUSSION/ACTION ON BIDS AND AWARD OF CONTRACT FOR CONCRETE
SUPPLY FOR THE BRIGHT STAR FIELD PARKING, DRIVEWAYS, AND
SIDEWALKS AT BUFORD PARK
Public Works Director Craig presented the staff report. The contract will provide approximately
350 cubic yards of concrete, with City staff performing the construction. Bid notices were
published in the News-Telegram and bids were opened August 18, 2026. One bid was received,
from Quikcrete Readymix at $150.00 per cubic yard, for an estimated cost of $52,500; staff noted
it is the only local concrete supplier. Staff recommended award to Quikcrete Readymix.
Councilman Julian made a motion to award the contract to Quikcrete Readymix as the sole bidder.
Councilman Harrison seconded and the vote was unanimous.
The motion carried.
DISCUSSION/ACTION ON COMMUNITY FACILITIES CONTRACT FOR 847 I-30
SERVICE ROAD FOR ARMSTRONG STEEL TO EXTEND PUBLIC WATER TO
SERVE THEIR SITE AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE
CONTRACT
Director of Community Development/ACM Niewiadomski presented the staff report. In March
the City Council authorized a development agreement with the EDC for an approximately 32.65acre tract along I-30 within the ETJ under which the City agreed to allow connection to City water
service and to perform inspections. The EDC is installing the public water main, which requires a
community facilities contract, at the developer’s cost. The developer name, which was left blank

in the packet, was updated to identify the Sulphur Springs-Hopkins County EDC, and an updated
copy was provided at the meeting. Staff recommended approval. Councilman Julian made a motion
to approve the community facilities contract for Armstrong Steel at 847 I-30 Service Road and
authorize the City Manager to execute the contract. Councilman Harrison seconded and the vote
was unanimous.
The motion carried.
DISCUSSION/ACTION ON APPROVAL OF THE FY ’26 SULPHUR SPRINGSHOPKINS COUNTY ECONOMIC DEVELOPMENT CORPORATION BUDGET
AMENDMENT
EDC Executive Director Brown presented the staff report. The amendment adjusts revenues to
reflect the audited unrestricted fund balance of $6,908,556, reduced investment revenue due to use
of cash for the Armstrong Steel project, the final Armorock payment, the delay of the Armstrong
Steel note receivable until construction is complete, the exercise of the purchase option by Section
Stack, and a reduced construction loan draw, and recategorizes certain expenses. Director Brown
requested three changes to the amendment as submitted, consistent with the City’s budget
amendment practice: the $16,000 amendment for taxes on the Como Street property, the $10,000
amendment for the office air conditioning unit, and the $55,000 amendment under facilities/park
for a 2025 planning study invoice would be removed from those line items and charged directly to
contingency, leaving the contingency line as previously budgeted. Director Brown asked that the
$75,500 amendment be crossed out and left at $200,000.
Councilman Johnson made a motion to adopt the budget amendment as submitted with the changes
described by Director Brown. Councilman Julian seconded and the vote was unanimous.
The motion carried.
DISCUSSION/ACTION ON APPROVAL OF THE FY 2027 SULPHUR SPRINGSHOPKINS COUNTY ECONOMIC DEVELOPMENT CORPORATION BUDGET/PLAN
OF WORK
EDC Executive Director Brown presented the staff report. The FY 2027 budget conservatively
projects $3 million in sales tax revenue, reduced investment revenue, lease revenue from
Armstrong Steel should it not exercise its purchase option, an $11 million construction loan draw
for the Armstrong Steel project with a corresponding expenditure, a 3.5% cost of living adjustment,
funding for interns, a note payable should the project convert to a permanent loan, and placeholder
amounts for land acquisition and project development. Cale McClure of County Road 3341 spoke
regarding the EDC’s role in Chapter 380 agreements and due diligence policies; City Attorney
Ray advised that the request is a policy matter that may be placed on a future agenda. In response
to a question from Councilman Julian regarding the work plan item on I-30 infrastructure, Director
Brown stated that the EDC will continue advocacy with TxDOT and local leadership for widening
of I-30 and its bridges, that a prior corridor study identified the need for six lanes, and that the
annual delegation to Austin occurs in late February.

Mayor Spraggins made a motion to approve the EDC FY 2027 budget and plan of work.
Councilwoman Gebel seconded and the vote was unanimous.
The motion carried.
DISCUSSION/ACTION ON PROCEEDING WITH NEGOTIATIONS FOR A 312 TAX
ABATEMENT FOR “PROJECT COMPOUND”, POSTING THE REQUIRED 30-DAY
NOTICE FOR CONSIDERATION OF A TAX ABATEMENT AGREEMENT [THAT
WILL INCLUDE THE PROPERTY OWNER’S NAME, APPLICANT’S NAME,
REINVESTMENT ZONE NAME/LOCATION, GENERAL DESCRIPTION OF
IMPROVEMENTS, AND ESTIMATED COST], AND ADDING THE ITEM TO THE
OCTOBER COUNCIL AGENDA
EDC Executive Director Brown presented the staff report. The property owner is JBW Real Estate
Holdings, known as the J-B Weld Company, which proposes an expansion valued at approximately
$6.5 million plus approximately $760,000 in personal property improvements at its existing
manufacturing facility at 400 CMH Road. Approval of the item does not approve a tax abatement
but authorizes posting of the required 30-day notice so that the Council may consider an abatement
agreement at its October meeting. In response to a question from Councilman Johnson, Director
Brown stated that the EDC receives from a few to 20 or 30 inquiries per month. Mayor Pro Tem
Aguilar made a motion to approve the item. Councilman Johnson seconded. The vote was
unanimous.
The motion carried.
DISCUSSION/ACTION ON EXECUTIVE SESSION ITEMS IF ANY
No addition action was taken on executive session items.
VISITORS AND PUBLIC FORUM
Before public comment began, City Attorney Ray advised that council members speaking during
public forum are limited to items they wish placed on a future agenda.
Councilman Craig Johnson of College Street requested that the October regular council agenda
include discussion of a new animal shelter, to be funded from data center revenue if received, and
of partnering with Hopkins County on the facility.
Brad Johnson of Junelle Drive declined to speak.
Dr. Fatima Lawan-Muse of Commerce, a candidate for State Representative, House District 2,
spoke regarding the relationship between the Council and residents.
Marion Cox of County Road 2321 spoke regarding the data center project, including due diligence,
Fire Department preparedness, and quality of life. In response to her question, Manager Maxwell
confirmed that the City will not have a nuclear power plant.
ADJOURN
With all business concluded, Mayor Spraggins adjourned the meeting at 10:48 p.m.

Approved by City Council on the 6th day of October, 2026
________________________
Natalie Burling, City Secretary

EXHIBITS
Exhibit A - Finance Report
Exhibit B – Resolution No. 1539
Exhibit C – Resolution No. 1540
Exhibit D – Resolution No. 1541
Exhibit E – Resolution No. 1549
Exhibit F – Resolution No. 1550