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Home My WebLink AboutAgenda CC 04.14.2020 WorkshopN otice of M eeting of the Governing B ody of the C ity of Georgetown, Texas April 1 4, 2 02 0 The Georgetown City Council will meet on April 14, 2020 at 3:00 P M at The City of Georgetown is committed to compliance with the Americans with Disabilities Act (AD A). If you require assistance in participating at a public meeting due to a disability, as defined under the AD A, reasonable assistance, adaptations, or accommodations will be provided upon request. P lease contact the City Secretary's Office, at least three (3) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 808 Martin Luther King J r. Street, Georgetown, TX 78626 for additional information; TTY users route through Relay Texas at 711. The link for the A pr il 14th Counc il me eting is: https://tinyur l.c om/rxc 6c5w If a citizen would like to pr ovide public comme nt on any item, we ask that they c omple te and submit this form: https://re cor ds.geor getown.or g/F or ms/Addr essCounc il This for m allows c itize ns two options – to have the ir comme nts re ad aloud by the C ity Se cr etar y or to be c alled when the ir ite m of inter est is pre se nte d. If you ar e vie wing or liste ning to the mee ting fr om a per sonal devic e, suc h as a computer or laptop, know ther e is a 20 to 40 sec ond de lay from the live mee ting. P le ase be pr epare d to spe ak before the ite m pre se ntation has e nded. If you ar e vie wing or liste ning to the mee ting fr om a per sonal devic e, suc h as a computer or laptop, make sur e you tur n the volume all the way down on that devic e before taking the c all. Use of pr ofanity, thr eate ning language, slande rous r emarks or thr eats of harm are not allowed and will re sult in you be ing imme diately re moved from the me eting. When answe ring the c all please wait for M ayor R oss to say your name Page 1 of 75 before pr oviding your c omment. Upon c omple tion of your c omments your phone c all will be disc onnec ted from the me eting. You will still be c onnec ted via your pe rsonal de vice whic h will allow you to c ontinue watching. Policy De ve lopme nt/Re vie w Workshop - A P resentation and discussion regarding C O VID-19 and the City’s emergency management response, impact on city services, impact revenue and expense, and consideration of fee waivers - - J ack Daly, Community Services Director; Aly Van Dyke, Communications and P ublic Engagement Director; Tadd P hillips, H R Director; Eric J ohnson, Facilities Director; J ohn Sullivan, Fire Chief; and David Morgan, City Manager B P resentation and discussion regarding the financial impacts of C O VID-19 and the City of Georgetown’s fiscal policies, budget contingency plan, revenue and expense impacts of pandemic response, and F Y2020 debt sale update -- Leigh Wallace, Finance Director C P resentation and discussion regarding Solar and Net Mete ring Rates and Electric Vehicle Charging Rates -- Daniel Bethapudi, General M anager of the Electric Utility and Leticia Zavala, Customer Care Director Exe cutive Se ssion In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. D Sec. 551.071: Consul tati on w i th Attorney Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise the City Council, including agenda items - Litigation Update Sec. 551.086: Certai n P ubl i c P ow er Uti l i ti es: Competi ti ve M atters - P urchase P ower Update Sec. 551.072: Del i berati ons about Real P roperty - Old Airport Road-P arcel 1, Kids Kottage, P urchase of Right of Way -- Travis Baird, Real Estate Services Manager - P roperty P urchase, S H-29 -- Travis Baird, Real Estate Services Manager Sec. 551:074: P ersonnel Matters Consideration of the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal - City Attorney - City Manager Adjournme nt Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notice of Meeting was pos ted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily ac cessible to the general public as required by law, on the _____ day of _________________, 2020, at __________, and remained so pos ted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. Page 2 of 75 __________________________________ R obyn Dens more, C ity S ec retary Page 3 of 75 City of Georgetown, Texas City Council Workshop April 14, 2020 S UBJEC T: P resentation and discussion regarding C O VID-19 and the City’s emergency management response, impact on city services, impact revenue and expense, and consideration of fee waivers -- J ack Daly, Community Services Director; Aly Van Dyke, Communications and P ublic Engagement Director; Tadd P hillips, H R Director; Eric J ohnson, Facilities Director; J ohn Sullivan, Fire Chief; and David Morgan, City Manager I T EM S UMMARY: F I NANC I AL I MPAC T: ~$100,000 S UBMI T T ED BY: Mayra Cantu, Management Analyst AT TAC HMENT S : Description C O VI D-19 Update Page 4 of 75 COVID-19 REPORT Page 5 of 75 OVERVIEW •COMMUNITY STATUS •RESOURCES •FINANCIAL IMPACT AND PLANNING •SUMMARY Page 6 of 75 COMMUNITY STATUS Page 7 of 75 TIMELINE December 31 •First case in the World January 16 •First case in the United States March 4 •First case in Texas March 13 •Texas declared state of disaster March 14 •Mayor declared local state of disaster March 18 •First case in WilCo March 19 •Governor issued executive order March 24 •WilCo issued Stay Home Stay Safe Order Page 8 of 75 CITY RESPONSE Closed to public: Library, Visitors Center, Recreation Center and Animal Shelter 16–18 Mar. Closed to public: City Hall, Utilities lobby, GMC, Public Service Operation and Training Center, Parks & Recreation Office 19 Mar. Daycare available for staff 23 Mar. Closed to public: Playgrounds, Pavilions, Courts, Restrooms, Skate Park, Gatehouse and Play Ranch at Garey Park 25 Mar. Closed to public: Blue Hole 2 Apr. Page 9 of 75 •Directors created continuity of operation plans for their service areas •Social distancing guidelines enacted internally •Shift to telecommuting for functions that could fully perform their jobs •Daily emails to staff and Council •Created policies in response •Pandemic Response and Leave Policy •Policy and Procedures for Families First Coronavirus Response Act •Telecommuting Policy CITY RESPONSE Page 10 of 75 ROLES AND RESPONSIBILITIES Logistic supportCounty •Stay Home Stay Safe order •County Emergency Operation Center Testing information and availabilityHealth District •Information on health-related questions •Public health best practices to combat COVID-19 Delivery of city servicesCity •Following and enforcing guidelines given by Federal, State, and Local authorities •Fire/EMS, Police, Utilities and other core services Page 11 of 75 COUNTY/STATE COORDINATION Daily calls and situation reports Channeling requests for resources and logistics Apprised of changing dynamics and response efforts Collaboration on response Page 12 of 75 COMMUNICATION CAMPAIGN •Social media (TW, FB, ND) •47K followers (up ~1,300) •80+ posts per week (>doubled) •Engagement up 95%+ •Other departments •Website •Updated daily •>117K clicks from bit.ly (4/3) •Other •Postcard •Blast (30K emails; 15K phones) •Video •Facebook Live •Mayor interviews •City employees •Mayor + Morgan stand ups •Internal •Daily emails •SharePoint site •Two employee live Q&A Page 13 of 75 COMMUNICATION CAMPAIGNS •GTX Cares •I stay home for •Chalking •Sidewalk safari •City services •RecAtHome + parks/wild walks •Neighbors helping neighbors •Library services •Social service assistance •Utility tips •Daily posts •News •Physical distancing •Case counts Page 14 of 75 •Precautions at all levels •Personal Protective Equipment •Screening questions during dispatch call •Flu -like Illness Triage •Temperature checks •Sanitizing units •Fire marshals coordinating with high risk locations (e.g. Senior Citizen Homes) •Retooled Disaster Response System for preparation of the evolving pandemic •Deferring opening of Fire Station 7 to better allocate personnel to existing stations EMERGENCY SERVICES Page 15 of 75 RESOURCES Page 16 of 75 STAFF Created guidelines and an action plan for COVID-19 exposure Currently 150 employees telecommuting Creation of the Assistance and Research Task Force Page 17 of 75 POLICIES Pandemic Response and Leave Policy Telecommuting Policy Policy and Procedures for Families First Coronavirus Response Act Page 18 of 75 EFMLA/ESICK •FFCRA Mandate of Employers •Up to 80 hours COVID -19 related ESick in addition to existing benefits paid at 100% for some reasons and 67% for others •FMLA expansion (EFMLA) for care of child up to 10 weeks at 67% of pay •Not required for first responders •Law took effect less than 12 days after passage & 6 days after first version of DOL guidance •Cost to Employer •Tax credit for cost of benefits for private employers up to max $ per employee per day •Currently no relief for governmental entities, excluded from tax credit •Georgetown Action •On April 1, implemented policy and began offering ESick & EFMLA to all employees •Aligned with mandate: EFMLA paying 67% •Differed from mandate: •Included first responders -for consistency with our employees and many other municipalities •Paying all types of ESick at 100% with no max $ per employee per day for consistency and administrative feasibility •Will monitor participation and can re -evaluate between now and December 31. Page 19 of 75 FACILTIES-PROTOCOLS •All City buildings are locked down from public access •Gates at City facilities require keycard access •Facilities are cleaned daily with hospital grade sanitizer •City staff disinfect communal flat services and doorknobs 3 times/day •Electrostatic disinfectant spraying Page 20 of 75 •Difficult to procure and to keep in stock with higher demand and usage •55-gallon drum of hand sanitizer •Refill existing containers •Many orders in place with unknown or delayed delivery dates •Staff has created disinfectant wipe dispensers •Public contact areas are prioritized in disbursement FACILITIES-SUPPLIES Page 21 of 75 •Tennis Center –Three Firefighters already quarantined since 3/27 •Fire Training building –Behind Fire Station No. 5 •Chisholm Office in Florence – Temporary shower added 3/31 •Additional facilities are being researched to be ready if need arises FACILITIES-QUARANTINE AREA Page 22 of 75 SUMMARY Page 23 of 75 COVID-19 EXPENSE SUMMARY Expense estimate as of 4/10: ~$181K $6.54 $19.13 $2.93 $131.18 $4.19 $17.40 $181.38 $- $40.00 $80.00 $120.00 $160.00 $200.00 Communiciations Cleaning and Sanitizing Quarantine Medical Supplies; PPE iPads - Fire Equipment - sanitizing machine Total Thousands COVID-19 Expenses Page 24 of 75 ADDITIONAL EXPECTED EXPENSES •More Personal Protective Equipment (PPE) •Facility/Vehicle Cleaning and Materials •WCCHD Staff •EFMLA/ESICK •Overtime Page 25 of 75 Proposed Fee Waivers for Relief •Temporary sign application fees (Building Inspections Dept.) •Security systems false alarm fees (Police Dept.) •Go Geo fares and paratransit fees (Public Works and CARTS) •Utilities (water and electric) late fees •Reason •Support small businesses •Reducing interaction and risk of exposure from cash exchange •Offering some relief to those negatively impacted by COVID - 19 FEE WAIVERS Page 26 of 75 •Fees Proposed Fee Waivers (through May 31, 2020) •Temporary sign application fees (Building Inspections Dept.) o Fees range between $20 and $50; permit would still be required to evaluate •Security systems false alarm fees (Police Dept.) o Fees escalate -$50, $75, $100 + additional $25 or $35 if non-permitted o Fee for false panic alarm -$100, $250, $500 •Go Geo fares and paratransit fees (Public Works and CARTS) o Go Geo Fees are $1 one way/$2 for all day pass o Paratransit $2 each way •Utility Billing (water, electric, sanitation, stormwater, wastewater) late fees o 10% late fee •Impact Monthly Six Week Estimate Impact General Fund Garbage Penalty 9,000$ 13,500$ False Alarms 6,000$ 9,000$ Temp Signs 100$ 150$ GoGeo 1,100$ 1,650$ Total General Fund 16,200$ 24,300$ Joint Services Fund (late fee)3,000$ 4,500$ Stormwater Fund (late fee)3,200$ 4,800$ Electric Fund (late fee)70,000$ 105,000$ Water Services Fund (late fee)60,000$ 90,000$ Totals 152,400$ 228,600$ Page 27 of 75 CHALLENGES Limited testing availability Personal protective equipment shortage Changing response levels Communication Uncertain length of time Page 28 of 75 WINS Day care for employees Assistance Research Taskforce –Repurposing Staff Quarantine areas for staff Council meeting and staff telecommuting logistics Policy development Small business loan partnership with Chamber of Commerce Adaptability to technology Communication Workday Go Live Partnerships (County, WCCHD, GISD, Chamber of Commerce, Development Community) Page 29 of 75 City of Georgetown, Texas City Council Workshop April 14, 2020 S UBJEC T: P resentation and discussion regarding the financial impacts of C O VID-19 and the City of Georgetown’s fiscal policies, budget contingency plan, revenue and expense impacts of pandemic response, and F Y2020 debt sale update -- Leigh Wallace, Finance Director I T EM S UMMARY: The purpose of this item is to discuss with and get feedback from the Council on financial topics related to the CO VID- 19 pandemic response and economic impact. These topics include: • Review of the City’s fiscal policies on Budget Contingency P lan and Reserves • Updates to revenue and expense forecasts for FY2020 • Review of the municipal debt market, sale options, and an updated 2020 list of projects The feedback will be used to guide staff in finalizing the April 28th debt sale and in preparing the mid-year budget amendment for May 26th. F I NANC I AL I MPAC T: n/a S UBMI T T ED BY: Leigh Wallace, Finance Director AT TAC HMENT S : Description Bond Us e Analys is F inanc e P andemic P res entation Page 30 of 75 2020 Debt Issue Bond $ Keep/Delay 2020 CO ADA ‐ Parks 150,000.00 Keep Airport Maintenance / Equipment Storage Facility 750,000.00 Delay Body Cameras 800,000.00 Keep Cardiac Monitors 225,000.00 Keep Curb and Gutter 650,000.00 Keep Fuel Station 550,000.00 Keep GMC Remodel 250,000.00 Keep GTEC‐ SE Inner Loop 4,700,000.00 Delay Neighborhood Park Development 250,000.00 Delay Parks Master Plan 200,000.00 Delay Public Safety Vehicles ‐ Fire 2,200,000.00 Keep Public Safety Vehicles ‐ Police 991,000.00 Keep Radio Replacement 129,000.00 Delay SCBA Replacement 290,000.00 Delay Tennis Center Pool Demolition 70,000.00 Delay Westinghouse & Scenic Lake Traffic Signal 600,000.00 Keep 2020 CO Total 12,805,000.00 2020 GO 2015 Road Bond Priority 1 ‐ Downtown Sidewalks 1,000,000.00 Keep Intersection Improvements 1,400,000.00 Keep Leander Road (Norwood to South West Bypass) 3,200,000.00 Keep Northwest Blvd Bridge 750,000.00 Keep Regional Trail Development 1,275,000.00 Delay San Gabriel Park 600,000.00 Delay Southwestern Blvd. 2,650,000.00 Keep 2020 GO Total 10,875,000.00 2020 REV Electric CIP 5,010,000.00 Keep Hoover Pump Station 750,000.00 Delay LWTP Raw Water Intake Rehabilitation 8,000,000.00 Keep Round Rock Supply Line 300,000.00 Keep Round Rock Supply Pump Station and Ground Storage Tank 1,000,000.00 Keep South West Bypass Water (H24‐1) 1,800,000.00 Delay Southside Water Treatment Plant Rehab 2,250,000.00 Delay Tank Rehabilitation 750,000.00 Delay 2020 REV Total 19,860,000.00 Grand Total 43,540,000.00 Page 31 of 75 FY2020 Annual Budget COID‐19 Pandemic Financial Impact and Planning City Council Meeting April 14, 2020 Page 32 of 75 FY2020 Annual Budget Agenda •Fiscal policies on Budget Contingency Plan and Reserves •FY2020 revenue and expense outlook •FY2020 debt sale update –Council feedback Page 33 of 75 FY2020 Annual Budget Fiscal Policies https://finance.georgetown.org/financial‐transparency/ Page 34 of 75 FY2020 Annual Budget Budget Contingency Plan •Immediate Action by City Manager: –Freeze all vacant positions except those deemed necessary –Review all planned capital expenditures –Delay all non‐essential spending –Report projections and actions to Council •All of the above implemented week 3/23 Page 35 of 75 FY2020 Annual Budget Budget Contingency Plan Cont’d •Further Action by Council: –Apply available surplus funds from prior years to one‐time costs in the current year –Authorize use of the General Fund economic stability reserve –Direct further reductions in services, including workforce reductions –Authorize reduction in General Fund balance from 90 days to 75 days Page 36 of 75 FY2020 Annual Budget Budgeted Reserves 90 days of operating expenses budgeted in major funds = $29M * Working to build Joint Services Fund reserve since added to policy in FY2019 * Page 37 of 75 FY2020 Annual Budget Budgeted Reserves Other budgeted reserves across funds Page 38 of 75 FY2020 Annual Budget Other Available Funds •Council Special Revenue Fund balance = $108K •$1.76 million in General Fund from FY2019 ending balance –Recommend leaving all of it in the Economic Stability Reserve at this time –About 2% of General Fund operating expenses; or 14 additional days of operating reserve Page 39 of 75 FY2020 Annual Budget Cash Preservation •90 day operating requirement total = $29M •Cash in major funds on 4/1/20 = $122M –Current days operating = 373 –Excludes bond proceeds for CIP •One month of gross payroll = $4 million •Watch cash balances of major funds and update management and Council Page 40 of 75 FY2020 Annual Budget Revenue and Expense Updates Page 41 of 75 FY2020 Annual Budget Revenue Updates •All major revenues in major funds trending well in 2nd Quarter •End of March and 3rd Quarter will see biggest impacts –Many major revenue sources lag real time by one to two months •Sales tax is the most volatile source –Early estimates of 1% decrease in March, and 8% decrease in April, May and June; 7‐10% decrease Jul, Aug, Sept –Model indicates loss of $750,000 in General Fund in FY2020 Page 42 of 75 FY2020 Annual Budget Revenue Watch List •Hotel Occupancy Tax –Occupancy rates –Revenue receipts •Utilities –Offer payment plans –No disconnects –Accounts Receivable aging Page 43 of 75 FY2020 Annual Budget Revenue Watch List Other fees for service: •Development permits and planning •Municipal Court •Airport fuel and leases •Library programs •Park programs and rentals •GoGeo reduced hours •Waivers for special circumstances •Interest earnings Page 44 of 75 FY2020 Annual Budget Emergency Related Expenses •Important to track expenses for reimbursement –Workday feature “worktag” COVID‐19 •Costs to date: ~$181K –Communications; cleaning and sanitizing services and equipment; medical and protective supplies •Watchlist of unknown costs: –Fire/EMS over time –Families First Coronavirus Act unfunded mandate –Williamson County Health District additional staff Page 45 of 75 FY2020 Annual Budget Expense Reductions Actions •Citywide reductions review: –Reduce all operational expenses: •Hold/justify vacant positions •Hold/justify all training and travel •Review other operational costs and projects –Review cash‐funded and debt‐funded CIP projects from prior years and 2020 •What projects can be put on hold •What funds can be repurposed to other higher priority projects •What funds/projects should move forward •Continue to provide financial updates to Council April 28th and forward Page 46 of 75 FY2020 Annual Budget 2020 Debt Sale Update Page 47 of 75 FY2020 Annual Budget Economic Environment •Major disruptions in municipal debt market as of mid March; many deals pulled and delayed –City delayed seeking bond rating and competitive sale •Financial advisors seeking a direct placement with a bank through a competitive bid process –Banks still have capital to lend; Federal infusion –Does not require a rating –Interest rate and term length may be less favorable than sales prior to March Page 48 of 75 FY2020 Annual Budget 2020 Sale Refresher •GO’s $10.8M – voter approved parks and roads •CO’s $12.8M – facilities and equipment •Revenue utilities $18.8M – plant expansions, line upgrades, new development, etc. •Revenue utility refunding $5M •February Public notice of Council action on April 28th –Must approve a bank placement –OR take action to postpone the sale to a future date –OR a combination Page 49 of 75 FY2020 Annual Budget Other Factors •Some equipment or facilities cannot be deferred •Some projects already under contract –Bond reimbursement resolution •Construction bids may come in lower than original projections, resulting in savings to City Page 50 of 75 FY2020 Annual Budget Revised Projects List Keep ($29.7M) •Police and Fire vehicles •Police body cameras •Fire cardiac monitors •GMC Remodel •Fuel site at transfer station •Voter approved transportation projects •Water supply lines •Electric infrastructure projects: Includes additional $1M for electric transformers Delay ($13.8M) •Airport storage shed •Inner Loop (GTEC) •Neighborhood parks •Parks master plan •Public safety radios •Fire breathing apparatus •Water plant and tank rehabs Full list attached to agenda item Page 51 of 75 FY2020 Annual Budget Council Feedback AGREE WITH ALTERNATIVE METHOD OF DEBT SALE? AGREE WITH REVISED PROJECTS LIST FOR SALE? Page 52 of 75 City of Georgetown, Texas City Council Workshop April 14, 2020 S UBJEC T: P resentation and discussio n regarding So lar and Net Metering Rate s and Electric Vehicle Charging Rates -- Daniel Bethapudi, General Manager of the Electric Utility and Leticia Zavala, Customer Care Director I T EM S UMMARY: City of Georgetown retaine d NewGen Strategies and Solutions, L LC to assist in the development of cost reco very rate structures for the e xisting Ne t Energy M e tering (NE M) rate and pro vide develo pment of a retail Electric Vehicle Fast Charger Rate. The following workshop item is an overview of the consultant findings and recommendations. F I NANC I AL I MPAC T: N/A S UBMI T T ED BY: Daniel Bethapudi - General Manager, Electric Utility/Leticia Zavala, Customer Care Director AT TAC HMENT S : Description R ate P resentation Page 53 of 75 RATE RECOMMENDATIONS FOR GEORGETOWN EV FAST CHARGER RATE AND NET METERING REFORM April 14, 2020 Page 54 of 75 2NEWGEN STRATEGIES AND SOLUTIONS, LLC AGENDA •Rate Recommendations for Georgetown ̶New Electric Vehicle (EV) Fast Charger Rate ̶Net Energy Metering (NEM) Reform •EV Fast Charger Rate ̶Applicable to all future EV Fast Chargers ̶12-month demand ratchet •Proposed changes for NEM 2.0 ̶Adjust received Energy Credit ̶Eliminate ability for <$0 energy bill ̶Rate impact analysis •Direction for next steps 2 Page 55 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC EV FAST CHARGER RATE •Need for EV Fast Charger Rate ̶Applicable for load of 500 –2,000 kW ̶Estimated monthly maximum demand 1,733 kW ̶Charge EV in ~20-40 minutes •“High Usage Corridor” (I -35) ̶Regular long-distance travel, in / out of major cities, peak load Friday – Sunday ̶High EV usage between Austin and Dallas 3 Example Fast Charging Cabinet Page 56 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC RISKS TO GEORGETOWN •Does new load increase power supply costs? ̶$/MWh ERCOT > $ / MWh PPA •Modeling solution ̶Add Fast Charger to Georgetown load ̶Review hourly ERCOT / PPA power costs •Bottom Line –impacts are manageable with proper rate design 4 Page 57 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC EV FAST CHARGER RATE COMPONENTS •Applicability ̶500 to 2,000 kW ̶Within Georgetown Electric Service territory •Rate components ̶Customer Charge ($/Customer) : $350/Month ̶Energy Charge ($/kWh) : $0.05648/kWh ̶Power Cost Adjustment (PCA) Charge ($/kWh):$0.02375/kWh ̶Demand Charge ($/kW): $16/kW •Billed Demand (greater of) ̶Actual demand or ̶500 kW minimum or ̶80% of 12-month maximum 5 Energy (kWh) Demand (kW) Time (Hours) Lo a d ( k W ) Page 58 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC EV FAST CHARGER RATE DEMAND RATCHET •Mechanism to ensure fixed cost recovery ̶Commercial / Industrial customers ̶Variations in actual monthly demand •Utilizes historic demand ̶Adjusted over time •Billed Demand is greater of the two ̶Actual Demand > Ratchet Demand ̶Ratchet Demand > Actual Demand 6 Page 59 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC EV FAST CHARGER DEMAND RATCHET 7 Page 60 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC EV FAST CHARGER RATE DESIGN •Rate components ̶Customer charge, energy charge, PCA, demand rate •Implement a 12-month historic demand rachet ̶First month demand equal to system design ̶Following months billed demand is greater of: •Actual demand; or •500 kW; or •80% of peak month over previous 12-month period •EV Fast Charger companies share sub -metered data •Structure and rate levels may change with updated analysis ̶Cost of service study 8 Page 61 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC EV FAST CHARGER RATE ESTIMATED MONTHLY BILL 9 EV FAST CHARGER RATE Description Unit Quantity Price Amount Base Rate 1 $350 $350 Volumetric Charge $/kWh 400,198 $0.05648 $22,603 PCA $/kWh 400,198 $0.02375 $9,505 Billed Demand Charge $/kW 1,733 $16.00 $27,728 Subtotal Electric $60,186 Tax $124 Total electric $60,310 EV FAST CHARGER RATE Description Unit Quantity Price Amount Base Rate 1 $350 $350 Volumetric Charge $/kWh 113,894 $0.05648 $6,433 PCA $/kWh 113,894 $0.02375 $2,705 Billed Demand Charge $/kW 500 $16.00 $8,000 Subtotal Electric $17,488 Tax (Estimated)$36 Total Electric $17,524 Example Bill –Designed Demand Example Bill –Minimum Demand Page 62 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC PROPOSED EV FAST CHARGER RATE 10 EV FAST CHARGER RATE Description Unit Price Base Rate $/Month $350 Volumetric Charge $/kWh $0.05648 PCA $/kWh $0.02375 Billed Demand Charge $/kW $16.00 Page 63 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC NET ENERGY METERING (NEM)ISSUES •Utilities across the country struggling ̶Encourage investment in solar / distributed generation ̶Seek ways to reduce and/or eliminate cost shifting •Two sources of cost shifting for Georgetown NEM 1.Renewable Energy Received (excess energy) rate exceeds costs 2.Ability of customers to offset bill to zero (or negative) •Allows potential bypass of Base Rate Charge and Power Cost Adjustment (PCA) 11 Page 64 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC EXISTING RATE COMPONENTS RESIDENTIAL 12 RESIDENTIAL RATE COMPONENTS Description Unit Price NEM Non-NEM Cost Classification Base Rate $/Month $24.80 Yes Yes Fixed Volumetric Charge $/kWh $0.09580 Yes Yes Fixed and Variable Power Cost Adj.$/kWh $0.02375 Yes Yes Fixed Renewable Energy Received (Credit)$/kWh $(0.09580)Yes No Fixed and Variable Georgetown Fixed Costs: Labor, PPA Power Supply, Debt Service, Insurance, etc. Georgetown Variable Costs: Market Power Supply Page 65 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC NET METERING INTRODUCTION •Residential and small commercial customers can install solar (photovoltaic – PV) systems up to 10 kW ̶Volumetric energy: Energy the customer purchases from the utility ($0.0958/kWh, plus PCA) ̶Generated energy: Energy the customer produces from their PV system (lost revenue) •PV systems generate most energy in the middle of the day (12:00 –1:00 PM) ̶Typically lower residential electricity usage •Customer system may exceed consumption ̶Received energy: Energy the customer sells back to the utility ($0.0958/kWh) 13 Page 66 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC GEORGETOWN NEM STATISTICS •Number of NEM customers ̶334 Residential (total 24,000 customers; 1.4%) ̶14 Small Commercial (total 2,400 customers; 0.6%) •Estimated installed capacity ̶Range of systems –1 kW to 90 kW ̶Average 7 kW for Residential ̶Average 10 kW for Small Commercial Customer Class Non-NEM Average Volumetric Energy (kWh) NEM Average Volumetric Energy (kWh) NEM Average Generated Energy (kWh) NEM Average Received Energy (kWh) Residential 955 798 672 370 Small Commercial 2,749 3,640 875 494 14 NEM Customer System Characteristics (August 2018 –December 2019) Page 67 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC BILL COMPARISON WITH / WITHOUT EXISTING NEM 15 RESIDENTIAL Description Unit Quantity Price Amount Base Rate $/Month 1 $24.80 $24.80 Volumetric Charge $/kWh 800 $0.09580 $76.64 Power Cost Adj.$/kWh 800 $0.02375 $19.00 Renewable Energy Received $/kWh 200 $0.09580 ($19.16) Subtotal Electric $101.28 Tax (Estimated)$2.03 Total electric $103.31 RESIDENTIAL Description Unit Quantity Price Amount Base Rate $/Month 1 $24.80 $24.80 Volumetric Charge $/kWh 1,100 $0.09580 $105.39 Power Cost Adj.$/kWh 1,100 $0.02375 $26.13 Subtotal Electric $ 156.32 Tax (Estimated)$ 3.13 Total Electric $ 159.45 Example Bill –Residential w/ Net Metering Example Bill –Residential w/o Net Metering NEM Customer: Total PV generation is 500 kWh for the month Reduced load from 1,100 kWh by 300 kWh = 800 kWh for Volumetric Charge Generated 200 kWh excess energy during peak solar days for Renewable Energy Received Page 68 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC UNDER-RECOVERY OF FIXED COST LEADS TO COST SHIFTING EXAMPLE RESIDENTIAL MONTHLY BILL 16 Residential Example: NEM Customer –800 kWh, Total Fixed Cost Recovery $71.42 (including credit from excess energy) Non-NEM Customer –1,100 kWh, Total Fixed Cost Recovery $101.57 Fixed Cost Under-Recovery and Cost Shift Total: $30.15 Page 69 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC UNDER-RECOVERY FIXED COST RECOVERY LEADS TO COST SHIFTING TOTAL SYSTEM 17 1 Excludes Small Commercial 2 Adjustment due to difference in energy rates $0.09580 Residential and $0.0902 Small Commercial Total PV Production Rate ($/kWh)1 $0.09580 Total PV Production Value ($/kWh) ($0.04976) Difference is Fixed Cost / Cost Shift ($/kWh) $0.04604 Total PV Production (kWh)2,059,000 Subtotal Fixed Cost Shift ($)$118,300 Adjustment for Small Commercial Rate Difference ($)2 $(500) Total Fixed Cost Shift ($)$117,800 Page 70 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC NEM 2.0 OVERVIEW IMPACT ON CUSTOMER CLASS NEM 2.0 Changes •Market based energy credit ̶Avoided ERCOT energy ̶Avoided ERCOT transmission costs ̶Include Georgetown system losses •Limit credit to the volumetric energy charge ̶Customer cannot reduce Base and PCA Charges ̶Assists in fixed cost recovery 18 Impacts on Monthly Bills Page 71 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC NEM 2.0 RATE MARKET BASED RENEWABLE ENERGY CREDIT •Renewable Energy Received Credit exceeds ERCOT power costs •For Existing NEM Customers – Over 6-month period: ̶Current Credit: $ 0.0958/kWh ̶Phase 1 Credit: $ 0.07278/kWh ̶Market Credit: $ 0.04976/kWh •Formula for Market Based Energy Credit updated January each year 19 Page 72 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC PROPOSED NET ENERGY METERING RATE RESIDENTIAL 20 RESIDENTIAL RATE COMPONENTS Description Unit Price NEM Non-NEM Cost Classification Base Rate $/Month $24.80 Yes Yes Fixed Volumetric Charge $/kWh $0.09580 Yes Yes Fixed and Variable Power Cost Adj.$/kWh $0.02375 Yes Yes Fixed Renewable Energy Received (Credit)$/kWh ($0.04976 )Yes No Fixed and Variable Georgetown Fixed Costs: Labor, PPA Power Supply, Debt Service, Insurance, etc. Georgetown Variable Costs: Market Power Supply Page 73 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC BILL COMPARISON NEM VS NEM 2.0 21 NEM 2.0 Customer Total PV generation is 500 kWh for the month; offset 300 kWh, sent back to Utility 200 kWh Renewable Energy Received Credit at Market Based Energy Value Increases fixed cost recovery to Utility by ~$9.21 RESIDENTIAL NEM Description Unit Quantity Price Amount Base Rate $/Month 1 $24.80 $24.80 Volumetric Charge $/kWh 800 $0.09580 $76.64 Power Cost Adj.$/kWh 800 $0.02375 $19.00 Renewable Energy Received $/kWh 200 ($0.09580)($19.16) Subtotal Electric $101.28 Tax (Estimated)$2.03 Total electric $103.31 RESIDENTIAL NEM 2.0 Description Unit Quantity Price Amount Base Rate $/Month 1 $24.80 $24.80 Volumetric Charge $/kWh 800 $0.09580 $76.64 Power Cost Adj.$/kWh 800 $0.02375 $19.00 Renewable Energy Received $/kWh 200 ($0.04976)($9.95) Subtotal Electric $110.49 Tax (Estimated)$2.21 Total electric $112.70 Page 74 of 75 NEWGEN STRATEGIES AND SOLUTIONS, LLC RECOMMENDATIONS FOR NEM 2.0 •Update Energy Received Credit to Market Based Credit ̶$0.0958/kWh -> $0.04976/kWh ̶Reduce energy credit over 6 months for existing NEM customers ̶New NEM customers on Market Based rate ̶Update annually in January •NEM Credit cannot exceed Volumetric Charge ̶Utility recovers Base Rate Charge and PCA Charge •Improve enforcement of PV system size limit 22 Page 75 of 75