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HomeMy WebLinkAboutRES 092314-W - MUD Policy & ManualA RESOLUTION OF THE CITY COUNCIL OF GEORGETOWN, TEXAS APPROVING THE INTERIM MUNICIPAL UTILITY DISTRICT (MUD) POLICY AND IMPLEMENTATION MANUAL WHEREAS, the City Council finds that Section 13.10.030 of the Unified Development Code establishes geographic eligibility criteria for creating a MUD based upon the City's annexation policy, ultimate city limit boundary and serviceability of water and/or wastewater; and WHEREAS, the City Council has discretion to create a MUD when the geographic criteria of Section 13.10.030 for creating a MUD cannot be met but where unique factors justify MUD creation; and WHEREAS, the City Council finds that unique factor MUDs should be justified through a consistent framework of policies and goals to achieve quality development; and WHEREAS, a MUD is long-term financial partnership between a developer and the City, and therefore the City should be provided with market studies, financial analysis and other tools to understand the level of investment required and the return on investment; and WHEREAS, a MUD establishes an elected board that pose financial and legal challenges to the City and limit the City's home rule municipal authority to annex lands in the extraterritorial jurisdiction; and WHEREAS, the City Council finds the interim policies and implementation manual attached establish consistent criteria and promote attainment of City of Excellence targets. NOW THEREFORE BE IT RESOLVED: SECTION ONE. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. SECTION TWO. The Policies attached as Exhibit A are hereby approved by the City Council. SECTION THREE. The Mayor is hereby authorized to sign this Resolution and the City Secretary to attest. SECTION FOUR. This Resolution shall become effective upon its adoption. PASSED AND APPROVED on theme`3 Aday of 12+�014. ATTEST: CITY OF GEORGETOWN, TEXAS By: Jes ts Brettle, City&cr tary Dale Ross, Mayor OVER S T RM: Bridget Chaprnn U City Attorney Interim MUD Policy September 23, 2014 1W LST, I's -18 GEORGETOWN TEXAS Attachment A This interim policy document is designed to bridge the gap between the current adopted Unified Development Code (UDC) provisions for consideration and formation of Municipal Utility Districts (MUD) within the City's planning jurisdiction and recent City Council discussions on timing, placement and expectations for MUDS. It is anticipated these policies will be used on an interim basis until an upcoming Municipal Annexation Plan is brought forward as addendum to the 2030 Comprehensive Plan. The City's procedural provisions in the Unified Development Code (UDC) would remain for procedures and submittal requirements and may be amended as needed. Existing UDC Section 13.10 provides the follow statements of purposes for creating a MUD. The standards established in this section are intended to carry out the following purposes: • Encourage quality development; • Protect the water quality within all watersheds of the City; • Protect the water quality of the City's drinking water sources; • Allow the City to enforce land use and development regulations consistent with the City's comprehensive plan, • Provide for construction of infrastructure consistent with City standards and City inspection of such infrastructure; • Provide notice to residents of the district that the City may annex the district at some future time; • Facilitate cost-effective construction of infrastructure to serve the area within the district, including police and fire stations, that is consistent with City standards and plans, so that the potential financial burden on the citizens of Georgetown will be reduced, in the event Of annexation of such land by the City; • Provide for extension of water and wastewater lines that will serve future growth in the City and its extraterritorial jurisdiction consistent with the City's regional utility planning. a Establish guidelines for reasonable conditions to be placed on; 0 Issuance of bonds by the district, and • The City's consent to creation of the district, including conditions consistent with the City's water and sewer bond ordinances regarding creation of districts that might otherwise Interim MUD Policy September 23, 2014 detrimentally compete with the City's utility systems; Establish guidelines for other mutually beneficial agreements by the City and the district; Provide a procedural framework for responding to an application seeking the City's consent to the creation of a district; While these existing policy statements contained in the UDC are helpful, the level of subjectivity with these statements have given rise to requests beyond what was contemplated when Section 13.10 was authored and requesters have challenged staff and City Council on these criteria. The additional language in the Interim Policy is intended to clarify how staffand City Council carries out the statements in a consistent and fair manner. The City of Georgetown finds that the purpose of a Georgetown MUD is to assist in closing the financial gap when a unique development is seeking to exceed minimum City standards, provide a robust program of amenities, and where substantial off-site infrastructure improvements are required that would serve the MUD and surrounding properties. The following interim policies and implementation actions are established in two sections. The first section includes general policies correlating existing UDC provisions with the items identified by City Council and staff to ensure a complete review of all MUD proposals, including financial analysis, as well as minimum provisions to ensure MUD development provides adequate public safety and utility services to promote minimum standards for human life, safety and public welfare. The second section includes additional policies for "unique factor" MUDS established pursuant to UDC Section 13.10.030 (B). These policies do not apply to all MUD requests, only those seeking creation due to "unique factor" criteria. POLICY I- Retain the two threshold questions under Section 13.10.030. o M-UDs are an appropriate tool to allow urban level density neighborhoods in locations supported by the 2030 Comprehensive Plan but that are outside of the ultimate city boundary where the City may annex in the future and where the City cannot provide water and wastewater service within 4 1/2 years. A. Before the City Council consents to creation of a district, the following issues shall be considered in accordance with this chapter: 1. If applicable, whether the area proposed for inclusion in the district meets criteria for annexation set out in the City annexation policy and is within the City's projected ultimate city limit boundary[shown with red line in map below]; and K Interim MUD Policy September 23, 2014 2. Whether the City will provide water and/or wastewater services to the land within the proposed district at a reasonable cost and will commence construction of facilities necessary to serve the land within 2 years and substantially complete such construction within 4% years after submittal of the petition pursuant to the Citys policies on the extension of utility services. B. If the determination on both issues I and 2 above is negative, then before consenting to the creation of a district, the City Council shall consider further whether the creation of the district is feasible, practicable, necessary far the provision of the proposed services and would be a benefit to the land, and therefore warrants the City's consent, consistent with the other considerations in this policy. C. If the determination on either of the two issues is affirmative, then the City Council shall not consent to creation of the district unless the applicant demonstrates that unique factors justifij its creation. If appropriate under the circumstances, the City shall: 1. Commence negotiations with the owners of at least 50 percent of the land in the proposed district and a majority of the qualified voters concerning the City's provision of water and wastewater services, upon receipt of a petition submitted by such persons in accordance with Local Government Code, Section 42.042; or 2. Commence proceedings to annex the land in the proposed district. POLICY 2: Provide examples of "'unique factors justifying [MUD] creation" to guide determinations made under Section 13.10.030. Consistent with past Council actions, require the construction of specific regional infrastructure improvements consistent with the City's comprehensive plan and master plans and that are beneficial to the City. Examples include: Interim NM Policy September 23, 2014 a. The construction of the South San Gabriel Interceptor as part of the Water Oaks agreements opened up the land in Georgetown's southwest quadrant for development well ahead of the time that the City could have done so in the absence of those agreements. b. Cimarron Hills Wastewater Treatment Plant, built as PID and MUD allowed expansion as part of the Oaks at San Gabriel agreements. c. The contemplated bridge and parkway connection of Water Oak linking Hwy 29 and Leander Road, as there is currently no north -south connection between Ronald Reagan Blvd and Interstate 35. d. Conservation subdivision design that clusters development in low impact areas and maintains existing topography, scenic views, natural drainage flows and wildlife habitat. e. Regional trail connections, off-site, to link gaps in the City and County trail system. POLICY 3: Submit information with the MUD creation petition that would allow the staff to perform the level City Council has directed during consideration of several recent MUD petitions. a. In addition to the items already listed in Section 13.10.040 and the information required to determine compliance with Section 13.10.050, in order to assist boards, commissions and the City Council with understanding the financing related aspects, require applications to submit the following: i. A detailed project pro -forma with assumptions of different tax rates and homes at various price points, ii. A marketing study completed within the previous six months of the date the petition indicating project feasibility based on regional market absorption rates that indicates projections in residential units per year for specific years of the development. The marketing study should include all proposed uses within the MUD. iii. A clear and understandable comparing MUD financed development to non - MUD financed development should also be included in these submittals including projections of municipal property tax generation. iv. A copy of the petitioner's financial statement and a detailed description of the petitioner's experience with MUDs. If petitioner and developer are the not the same, provide documentation explaining the relationship between the petitioner and developer. V. Documentation that all lien holders consent to the formation of the proposed MUD. b. To streamline processing of MUD petitions, allow staff to defer comprehensive review and consideration of applications until a complete application and all supporting materials are submitted. c. Increase the application fee to a sum to allow for adequate cost recovery and that is commensurate with staffing and workload impacts necessary for evaluating MUD Eli Interim MUD Policy September 23, 2014 petitions and negotiating and drafting MUD Consent Agreements and any related agreements. POLICY 4: Agree to a cross -departmental "MUD Petition Review Team" comprised, at a minimum, of members of the planning department, utility department, finance department, parks department, public safety departments, and legal department. POLICY 5: Address provision of public services, and address public safety matters in the Consent Agreement: a. Require MUD to provide facilities to enhance public services and optimize locations of service delivery. b. Require donation of land to City or ESD (as applicable) for new fire station or other public safety facility as determined by the City. c. If the City provides fire protection services to the MUD, require payment of Fire SIP fee (or similar fee) to fund fire station construction and operations. d. Require roadway design to enhance access and reduce response times to existing developed properties located outside of the MUD. e. If located outside of the City Limits, then the MUD consent agreement may, at the City's discretion, include an interlocal agreement ("ILA") to contract with the City of Georgetown for fire, police, and solid waste services on terms acceptable to the City. f. Require adequate street lighting for vehicle and pedestrian safety. g. An ETJ MUD shall provide a maintenance program approved by the City's Transportation Department that is consistent with City standards and shall include appropriate consultation with the County Engineer. POLICY 6: Address utility service issues, and include those utility service provisions in the Consent Agreement: a. Require all utility facilities that service the MUD to be consistent with the Utilities Master Plan. b. Require the MUD the City to be the water, sewer and electric service provider unless the area is within another entity's certificated service area, or the City chooses not to require those services to be provided by the City. c. Require the cost to relocate any existing utility infrastructure to be borne by the developer and/or MUD, not the City. d. Limit cost-sharing on MUD off-site improvements to only those circumstances where the necessity for the improvement is so great that limited CIP funds are appropriate for 5 Interim MUD Policy September 23, 2014 overall system wide improvements that benefit multiple properties (i.e., regional improvements that the City can afford to participate in). e. Address water and wastewater rates. Generally, rates for in -City MUD customers should be the same as the rates for other in -City customers, and the rates for ETJ MUDS customers should be the same as for other out of City customers. f. Require specific water conservation techniques that will be used to minimize demand levels including xeriscaping, low impact development ("LID"), rainwater harvesting, grey water reuse and other strategies in consultation with GUS. g. Require all MUDs and their residents, whether in the City or in the ETJ, to comply with City of Georgetown water conservation and drought contingency plan -related ordinances. h. For all MUDS, require impact fees to be assessed at the time of final plat approval [note: Impact fee payments are eligible for reimbursement by the MUD]. For ETJ MUDS, require payment of impact fees at the time the final plat is approved. For in -City MUDS, require payment of impact fees no later than the time of building permit issuance. However, utility capacity reservation shall not occur until impact fees are paid. i. Address rates, treatment capacity; utility and other easements necessary for City services, capacity for dwelling units, gallons per day usage for water and wastewater, water, wastewater and electric infrastructure, permitting and design, and fiscal surety. MEEMM. MNKZMO���M 91 1871M. 1 s s of I I, a. Require a maximum bond issuance amount and schedule so that an opportune time for annexation can be calculated. b. For an in -city MUD, limit debt issuance to "hard costs" associated with on and off-site water and wastewater and possibly, depending on the financial analysis, for roads. An ETJ MUD may also issue debt for the hard costs of parks and trails facilities that will be open to the general public. Debt shall not be issued for "soft costs" such as design and engineering work, landscaping, signage, maintenance nor private amenities. c. To the extent possible, debt should be structured to retire nonresidential lands first so they can be annexed, if an ETJ MUD. Where multiple are MUDS are established for a large project, nonresidential lands should be included in the first MUD created. d. Require all City property and land to be exempted from all MUD taxes, assessments charge, fees and fines of any kind. 6 Interim MUD Policy September 23, 2014 e. A table summarizing the overlapping tax rate of all existing taxing entities (city, county, school district, MUD, ESD, etc) and the proposed MUD tax, demonstrating the total anticipated tax rate over the life of the MUD. a. A date certain for annexation of the District shall be established in its creation documents. Upon reaching that date certain, the City retains the right to extend the annexation date or deny the annexation. The date of annexation set with the District creation shall be indicated in a disclosure statement to buyers of all properties within the District. Buyers shall be provided with the District's pro -forma in an easy -to -read, understandable format that explains to the buyer that they are buying into an obligated property and are made aware that the taxes and assessments are not imposed by the City of Georgetown and were the choice of the developer. b. Allow the City to set rates for water and/or sewer services for land that is in the MUD at the time of annexation that are different from rates charged to other areas of the City consistent with the provisions of Section 54.016(h) of the Water Code to compensate city for assumption of MUD debt. c. This section shall apply to a District created as an ETJ MUD that is annexed into the city limits. At the City's option, a "limited district" may be continued in existence after annexation to maintain amenities or services beyond what the City typically provides for neighborhoods similarly situated. In such cases an ETJ MUD shall enter into a SPA stating conditions on which MUD will be converted to a limited district that will continue to exist following full purpose annexation. Concurrently with the MUD's confirmation election, the MUD shall hold election on proposition to levy an O&M tax per Section 49.107 of the Water Code to provide funds to operate the limited district following full purpose annexation by the city; the MUD shall have no right to issue bonds until proposition to levy an O&M tax is approved. 2. The following additional policies shall apply to "unique factor" MUD reques 'y that do not meet the geographic eligibility established in UDC 13.10.030. POLICY 9: Require development in a MUD to exceed minimum UDC land use an7T development standards, and address the land use provisions in the Consent AgreementFs celated agreement: a. Prohibit all age -restricted development; provided, however, that one section or phase of a development may be considered for age -restricted development if it does not exceed Interim MUD Policy September 23, 2014 10% of the net developable land area and 10% of the total housing units within the MUD. b. Prohibit certain other land uses such as Correctional Facility; Personal Services Restricted as defined the Unified Development Code, Chapter 16, of Title 7 of the Georgetown City Code of Ordinances, and others as determined by City Council. c. Require at least 20% of overall net developable land area to be used for commercial, office, industrial or related employment (nonresidential) uses, unless located in Low Density Residential in the City's Future Land Use Plan in which case a neighborhood - serving commercial site shall be included. d. Require at least 30% of the proposed land use area to be used for commercial/retail uses and to be developed within the first 5 years of the first building permit within the MUD. L All efforts should be made to exclude this commercial/retail land area from the MUD in favor of full -purpose annexation, or a Strategic Partnership Agreement (SPA) should be required allowing the City to collect sales taxes from the area. ii. The Strategic Partnership Agreement should provide that the City is entitled to receive up to 100% of the sales taxes collected, and that none of those taxes should be shared with the MUD unless special circumstances exist. iii. City should retain site plan review to current City standards for uses other than one - and two-family residential uses. e. Require workforce housing to be provided through a homebuyers club that includes programs such as down payment assistance, preferred sales pricing, subsidized insurance premiums, ongoing financial counseling and homeowner maintenance training. The homebuyers club shall be open to all current City of Georgetown, Williamson County or Georgetown Independent School District employees at the time of closing on a property. A report shall be furnished annually to the City's Housing Coordinator outlMiing the workforce housing actions undertaken with the minimum programs being those identified above. f. Require public school location(s) to be provided, if desired by the applicable School District. Location(s) of school sites should be in a central, walkable location within a residential neighborhood away from a collector or arterial roadway identified in the Overall Transportation Plan (OTP). g. Require a land use plan to be attached to the Consent Agreement, and require major amendments to a MUD land use plan shall require review by the Planning & Zonmig Commission and City Council. h. Require gross impervious cover to be kept below the maximums allowed by the UDC. Interim N= Policy September 23, 2014 L Require tree preservation to exceed minimum UDC standards. Where a site contains little existing tree coverage, require at least two trees of 3" caliper or greater on every single family lot and provide park and open space areas to increase gross tree canopy coverage to 40% coverage upon tree maturity. j. Require compliance with all water quality and water conservation/drought restriction ordinances with no adverse impacts to the watershed including a preliminary plan indicating existing facilities, proposed facilities and any improvements planned in the occupied site, spring and stream protection zones established by the December 20, 2013 water quality ordinance. k. Require protection and conservation of features unique to site such as clusters of trees, archaeological sites, springs, the natural floodplain, recharge and karst features and historic farm and ranch complexes. 1. Require higher standards for architectural design. For example, homes with front porches at minimum 8 foot depth, 3 -sides stone, stone veneer or brick masonry, variation in floor plans, and embellished architectural treatment and masonry fagades on homes facing street intersection comers or major streets. m. Require submittal and City Council approval of a pattern book with a visual representation of the architectural styles of buildings including cornice lines, roof profiles, finish materials, windows and ornamentation n. Require landscaping along any roadways identified in the Overall Transportation Plan commensurate to that required for Scenic/Natural Gateways as identified in Unified Development Section 4.13. o. Require Signage consistent with UDC provisions. p. Require innovative or non -conventional subdivision design, such as conservation subdivision design, housing diversity, vertical mixed use, and/or traditional neighborhood development (TND). POLICY 10: Require development in a MUD to exceed UDC parkland requirements (not just meet UDC standards or less than UDC standards), and address parkland provisions in the Consent Agreement: a. Require a park or series of parks open to the general public within the MUD in the size and location approved by the Parks and Recreation Board. b. Require installation and maintenance of park facilities improvements. c. Require maintenance access to be provided. a. Require connections to regional trail network and adjacent uses such as schools. E Interim NM Policy September 23, 2014 b. Require regional trail network to be a minimum of 10 feet in width. c. Require usable trailheads with off-street parking and ADA compliant trails. d. Require financial contributions to regional park facilities such as Westside Park or Garey Park (depending on the location of the MUD). e. Prohibit roads through parkland in a manner that subtracts from net usable park land. f. Require provision of security and maintenance program. g. Require protection and perpetuation of unique features on a particular site that should be maintained as open space whether for environmental, conservation or scenic views. POLICY 11: Address transportation issues and include transportation provisions in the Consent Agreement: a. Require completion of a Traffic Impact Analysis (TIA) and construction and/or funding of both on- and off-site improvements identified in the TIA, including roadways identified in the City's Overall Transportation Plan (OTP). b. Require dedication of right-of-way, inclusion of bike lanes, sidewalks, and aesthetically - pleasing streetscapes consistent with the OTP. c. Require residential subdivisions to be designed with increased connectivity, reduced cul-de-sacs, short block lengths, additional stub outs to neighbors except where developed as a conservation subdivision pursuant to Chapter 11 of the UDC. d. Require creative stormwater management and water quality solutions to be provided such as low impact development ("LID") to minimize any downstream impacts. Miscellaneous Provisions Where not otherwise specifically addressed in this Interim Policy, the procedures in Unified Development Chapter 13 shall prevail. 19 Interim MUD Policy September 23, 2014 : 1 6 To provide for the prudent use of political subdivisions that are created pursuant to Article III, Section 52, and/or Article XVI, Section 59, of the Texas Constitution and that are authorized by law to provide water, wastewater, drainage, and other services ("districts"), in order to allow development within the City's corporate boundaries and extraterritorial jurisdiction that is generally consistent with the City's Comprehensive Plan. This section is intended to be equitably applied to the creation of, inclusion of land within, and operation of all proposed districts, while allowing flexibility necessary to address unique factors that may arise with respect to each proposed district. Prior to considering whether to consent to or support the creation of a district, the City will consider whether the City is able to provide water and/or wastewater service to the area proposed to be included in the district and whether such area is within the City's projected ultimate city limit boundary. The standards established in this section are intended to carry out the following purposes: • Encourage quality development; • Protect the water quality within all watersheds of the City; • Protect the water quality of the City's drinking water sources; • Allow the City to enforce land use and development regulations consistent with the City's comprehensive plan; • Provide for construction of infrastructure consistent with City standards and City inspection of such infrastructure; • Provide notice to residents of the district that the City may annex the district at some future time; • Facilitate cost-effective construction of infrastructure to serve the area within the district, including police and fire stations, that is consistent with City standards and plans, so that the potential financial burden on the citizens of Georgetown will be reduced, in the event of annexation of such land by the City; • Provide for extension of water and wastewater lines that will serve future growth in the City and its extraterritorial jurisdiction consistent with the City's regional utility planning. • Establish guidelines for reasonable conditions to be placed on; • Issuance of bonds by the district; and 11M Interim MUD Policy September 23, 2014 The City's consent to creation of the district, including conditions consistent with the City's water and sewer bond ordinances regarding creation of districts that might otherwise detrimentally compete with the City's utility systems;• Establish guidelines for other mutually beneficial agreements by the City and the district; Provide a procedural framework for responding to an application seeking the City's consent to the creation of a district; and WNKOXIN A. Bond. Instrument, including a bond, note, certificate of participation or other instrument evidencing a proportionate interest in payments due to be paid by an issuer or other type of obligation that: (1) is issued or incurred by an issuer under the issuer's borrowing power; without regard to whether it is subject to annual appropriation; and (2) is represented by an instrument issued in bearer or registered form or is not represented by an instrument but the transfer of which is registered on books maintained for that purpose by or on behalf of the issuer. B. Certificate of convenience and necessity (CCN). A permit issued by the Texas Commission on Environmental Quality ("TCEQ") authorizing a specified utility to be the retail water or sewer service provider in a specified area. C. City Council. City Council of the City of Georgetown. D. Consent agreement. An agreement between the City and owners and developers of land in a proposed district which, if agreed to, shall be attached to the consent resolution adopted by the City Council. E. Consent resolution. A resolution approved by the City Council setting forth terms of its consent to creation of a district. F. Consent to creation of a district. Authorization for the owners of land in a proposed district to initiate proceedings to create a district as provided by law. G. District. A municipal utility district ("MUD"), water control and improvement district ("WCID"), flesh water supply district ("FWSD"), or similar political subdivision created to provide water, sewer or drainage utility services, roads, or other services allowed by law to a specified area, pursuant to Article III, Section 52, and/or Article XVI, Section 59, of the Texas Constitution. H. Extraterritorial jurisdiction (ETJ). Unincorporated area generally extending two miles from the City limit, excluding other incorporated municipalities and their ETJ, in which the City has the authority to annex property, as determined in accordance with Chapter 42 of the Local Government Code. I. Strategic partnership agreement. An agreement between the City and a district addressing the relationship between the City and the district, including limited purpose E Interim MUD Policy September 23, 2014 annexation of commercial areas and other matters pursuant to Section 43.0751 of the Local Government Code. J. TCEQ. The Texas Commission on Environmental Quality or its successor. I F I• •MEMZMG�� A. Before the City Council consents to creation of a district, the following issues shall be considered in accordance with this chapter: I If applicable, whether the area proposed for inclusion in the district meets criteria for annexation set out in the City's annexation policy and is within the City's projected ultimate city limit boundary; and 2 Whether the City will provide water and/or wastewater services to the land within the proposed district at a reasonable cost and will commence construction of facilities necessary to serve the land within 2 years and substantially complete such construction within 41/2 years after submittal of the petition pursuant to the City's policies on the extension of utility services. B. If the determination on both issues 1 and 2 above is negative, then before consenting to the creation of a district, the City Council shall consider further whether the creation of the district is feasible, practicable, necessary for the provision of the proposed services and would be a benefit to the land, and therefore warrants the City's consent, consistent with the other considerations in this policy. C. If the determination on either of the two issues is affirmative, then the City Council shall not consent to creation of the district unless the applicant demonstrates that unique factors justify its creation. If appropriate under the circumstances, the City shall: 1. Commence negotiations with the owners of at least 50 percent of the land in the proposed district and a majority of the qualified voters concerning the City's provision of water and wastewater services, upon receipt of a petition submitted by such persons in accordance with Local Government Code, Section 42.042; or 2. Commence proceedings to annex the land in the proposed district. Upon receipt of an application seeking the City's consent to creation of a district and after a preliminary determination of the prerequisites in Section 13.10.030, City staff shall analyze the proposed development and its potential impact on facilities and services. The applicant shall provide the following preliminary information relative to the land proposed to be included in the district, if available: 13 Interim MUD Policy September 23, 2014 1 Preliminary water availability study, including copies of any proposed contracts; 2 Preliminary wastewater treatment availability, including copies of any proposed contracts; 3 Preliminary drainage study; and 4 Preliminary road study for any roads proposed to be reimbursed by bonds. B. Preliminary cost estimates for water, wastewater, drainage or road facilities or projects, and any other proposed district facilities to be reimbursed or paid for by the issuance of district bonds; C. Master development plan showing general layout of proposed land uses; major streets and roads; water, wastewater, and drainage facilities; and any other district facilities; D. Information concerning provision of firefighting and law enforcement services; E. Estimated buildout schedule by year with estimated assessed valuations in the district; F. Estimated ultimate amount of bonds to be issued by the district, ultimate debt service requirements, and projected district tax rate; G. District boundary and vicinity map; H. Traffic study identifying potential impacts on: I The City's road system serving the land proposed to be included in the district, if all or any portion of the land is located within the City or within two miles of the City's boundaries; and 2 The county's road system, this traffic study is in addition to any traffic studies required by the City's subdivision regulations in connection with submittal of subdivision plats; 3. If all or any portion of the proposed district is located outside the City's boundaries, proof that the applicant has provided the following information by certified mail to the Williamson County Judge and each member of the Commissioners Court: the name, acreage, and location of the proposed district, buildout schedule, estimated population on total buildout, and map of the area; 4. Such other information as City staffmay reasonably require to analyze the need for the proposed facilities and the development's potential impact; and 5. Any proposed City consent agreements. 13,1.0. 50 Conditions to City's Consent to Creation of a District If the City Council elects to consent to the creation of or inclusion of land within a district, then it shall impose the following requirements as conditions of the City's consent, and such requirements shall be stipulated in the consent resolution and/or other ancillary 14 Interim MUD Policy September 23, 2014 agreement, unless the City Council determines that requirements are not appropriate with regard to a specific district. A. All water, wastewater, drainage, and road infrastructure and facilities as well as any other infrastructure or facilities to be reimbursed or paid for by the issuance of district bonds, shall be designed and constructed to City standards, including without limitation fire flow standards and utility and road design, construction and installation standards, in accordance with plans and specifications that have been approved by the City. In the event of a conflict between City water and wastewater standards and standards imposed by the CCN holder for the proposed district, City standards shall prevail, unless otherwise agreed by the City. B. The City shall have the right to inspect all facilities being constructed by or on behalf of the district and to charge inspection fees consistent with the City's inspection fee schedule, as amended from time to time. C. Bonds, including refunding bonds issued by the district, shall, unless otherwise agreed to by the City, comply with the following requirements, provided such requirements do not generally render the bonds unmarketable: 1. Maximum maturity of 20 years for any one series of bonds; 2. Interest rate that does not exceed 2% above the highest average interest rate reported by the Daily Bond Buyer in its weekly "20 Bond Index" during the one month period preceding the date notice of the sale of such bonds is given; 3. The bonds shall expressly provide that the district shall reserve the right to redeem bonds at any time subsequent to the tenth (10th) anniversary of the date of issuance, without premium. No variable rate bonds shall be issued by a district without City Council approval; and 4. Any refunding bonds of the district must provide for a minimum of 3% present value savings and that the latest maturity of the refunding bonds may not extend beyond the latest maturity of the refunded bonds unless approved by the City Council. D. The City shall require the following information with respect to bond issuance: 1. At least 30 days before issuance of bonds, except refunding bonds, the district's financial advisor shall certify in writing that the bonds are being issued within the existing economic feasibility guidelines established by the TCEQ for districts issuing bonds for water, sewer, or drainage facilities in the county in which the district is located and shall deliver the certification to the City Secretary, and the City. 2. At least 30 days before the issuance of bonds, the district shall deliver to the City Secretary, and the City Manager notice as to: 15 Interim MUD Policy September 23, 2014 a. The amount of bonds being proposed for issuance; b. The projects to be funded by such bonds; and c. The proposed debt service tax rate after issuance of the bonds. d. If the district is not required to obtain TCEQ approval of the issuance of the bonds (other than refunding bonds), the district shall deliver such notice to the City Secretary, and the City Manager at least 60 days prior to issuing such bonds. Within 30 days after the district closes the sale of a series of bonds, the district shall deliver to the City Secretary, and the City Manager a copy of the final official statement for such series of bonds. If the City requests additional information regarding such issuance of bonds, the district shall promptly provide such information at no cost to City. E. The purposes for which a district may issue bonds shall be restricted to the purchase, construction, acquisition, repair, extension and improvement of land, easements, works, improvements, facilities, plants, equipment, and appliances necessary to: 1. Provide a water supply for the district for municipal uses, domestic uses, and commercial purposes; 2. Collect, transport, process, dispose of and control all domestic, industrial or communal wastes from the district whether in fluid, solid, or composite state; 3. Gather, conduct, divert, and control local storm water or other local harmful excesses of water in the district; and 4. Pay organization and administrative expenses, operation expenses during construction, cost of issuance, interest during construction, and capitalized interest. 5. If appropriate in a particular district, the City may consent to issuance of bonds for purchase, construction, acquisition, repair, extension, or improvement of fi re stations, roads, and/or other capital improvements that are mutually agreed upon by the City Council and the applicant. F. The district shall contain sufficient acreage to assure the economic viability of the district but no more acreage than can feasibly be annexed at one time. In general, a district is not expected to include less than 200 acres or more than 500 acres. G. Development within the district shall be consistent with the City's Comprehensive Plan. H. No district shall include land in more than one city's Extraterritorial jurisdiction. I. The City and the owners of all land in the proposed district shall reach agreement on the terms of a development agreement pursuant to Local Government Code, Section 212.171, et seq. to extend the City's planning authority over land included in the district by providing for approval of a development plan, authorizing enforcement by the City of land use and development regulations, and including other lawful terms and considerations the parties consider appropriate. The development agreement shall In Interim MUD Policy September 23, 2014 include provisions relating to the following matters: 1. Land use plan reflecting all approved land uses and residential densities; 2, Compliance with City construction Codes, including permit requirements; 3. Compliance with City and other applicable stormwater and water quality regulations; 4. Development standards comparable to City zoning regulations; and 5. Dedication and development of park land, open space, and trails. The above list is not intended to be exhaustive. It is expected that the parties will cooperate to identify those matters unique to the district that maybe addressed in a development agreement, J. At least 30 days before issuance of bonds, the district shall certify in writing that the district is in full compliance with the consent resolution approved by the City Council and, to the extent such agreements impose requirements on the district, with the consent agreement, strategic partnership agreement and all other agreements executed by the City and the district, and shall deliver the certification to the City Secretary, and the City Manager. K. No land within the district shall be allowed, at any time in the future, to incorporate, join in an incorporation, or be annexed into any incorporated city other than the City of Georgetown. L. No land shall be annexed by the district without prior City Council approval. M. The district shall not construct or install infrastructure or facilities to serve areas outside the district or sell or deliver services to areas outside the district without prior City Council approval. N. After creation of the district, and -unless otherwise expressly authorized by the consent agreement or development agreement, no district shall be converted into another type of district, consolidated with another district, divided into two or more new districts or seek additional governmental powers that were beyond its statutory authority at the time the district was created, without prior City Council approval. 0. If allowed bylaw, the City may annex any commercial development within the district for limited purposes pursuant to Local Government Code, Section 43.0751, and may impose a sales and use tax within the area annexed for limited purposes. If limited purpose annexation is not allowed by law, then the City may not consent to inclusion of commercial retail areas within the district. The City may consider sharing tax receipts with the district, provided the district's share is used to finance infrastructure, retire bond debt or for other purposes acceptable to the City. P. The district shall not issue any bonds other than those authorized by the consent agreement without City Council approval. 17 Interim MUD Policy September 23, 2014 Q The district shall file a notice in the real property records of all counties in which the district is located stating that the City has authority to annex the district. The parties may attach a form of such notice to the consent agreement or development agreement. R. The district shall send a copy of the order or other action setting an ad valorem tax rate to the City Secretary, and the City Manager within 30 days after district adoption of the rate. S. The district shall, send a copy of its annual audit to the City Secretary, and the City Manager within 30 days after approval. T. The City shall encourage the district to maintain a debt service structure that will ensure that the district's taxes are maintained at a rate at least equal to the City's tax rate, to the extent feasible. U. The district shall provide copies of any material event notices filed under applicable federal securities laws or regulations to the City Secretary, and the City Manager within 30 days after filing such notices with the applicable federal agency. V. Construction of capital improvements such as fire stations and recreational amenities shall be encouraged. W. Sharing of fire stations, recreational amenities, and other capital improvements by the City and the district shall be encouraged.. X. If construction or expansion of a wastewater treatment facility is proposed to serve the district, the plant design shall conform to all applicable state and federal permitting and design standards. In addition, any wastewater discharge shall be permitted to meet effluent limitations no less stringent than 5-5-2-1 (5 parts per million ( Id ppml biochemical oxygen demand; 5 ppm total suspended solids; 2 ppm nitrogen; and I ppm phosphorus) or the current limits in permit(s) held by the City, whichever is strictest. The City reserves the right to protest any wastewater treatment facility permit application or amendment. Y. The board of directors of the district and landowners within the district shall assist the City in annexing one or more areas as reasonably necessary for the City to connect areas to the City that are outside the district and that the City intends to annex in the foreseeable future. Z. The City shall require the district to complete a traffic impact analysis pursuant to Section 12.05 of this Code. AA. The City may agree not to annex and dissolve the district any earlier than the fi rst to occur of: (i) extension of water, sanitary sewer, and drainage facilities to serve 90% of the land within the district; or (ii) 15 years after creation of the district. The contract between the City and the district may provide that the City may set rates for water and/or sewer services for property that was within the district that vary from those for other properties within the City in order to compensate the City for 18 Interim MUD Policy September 23, 2014 assumption of district obligations upon annexation, in compliance with any statutory requirements applicable to such, an agreement. BB. The consent agreement and ancillary documents shall include terms providing for tl-ie district to be fully developed and ready for full purpose annexation by the City within a reasonable time period. cc. The applicant shall reimburse the City for expenses incurred by the City in connection with the City's consent to formation of the district, including but not limited to professional fees incurred in connection with negotiation and preparation of the consent resolution, consent agreement, development agreement, strategic partnership agreement, and related documents. 13.10.060 City Operations Compensation Fee A fee shall be assessed for each residential unit within the district equal to the proportion of City operations attributed to serving residents of the district. The fee shall be calculated as follows: B = Total General Fund budget for the fiscal year in which the consent application is filed. P = The estimated population of the City at the time the consent application is filed. H = The estimated average household size within the City at the time the consent application is filed. D = The percentage of City services used by district residents. This percentage shall be adopted by the City annually as a part of the City's budget adoption process. Y = Number of years of duration of the district. R = Discount rate. This rate shall be adopted by the City annually as a part of the city's budget adoption process. PV = Present Value. City Operations Compensation Fee = PV(RY,-((B /(P /H)) * D)) Example: B = $24,000,000 P = 41,000 H = 2.8 D =15% Y = 20 R=6% Fee = $2,819.92 19