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Agenda CC 06.28.2022 Workshop
N otice of M eeting of the Governing B ody of the C ity of Georgetown, Texas J une 2 8, 2 02 2 The Georgetown City Council will meet on J une 28, 2022 at 2:00 P M at 510 W. 9th Street Georgetown, Texas 78626 Council and Courts Building 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. Policy De ve lopme nt/Re vie w Workshop - A P resentation and discussion regarding the Water/Wastewater Master P lan Update and proposed F Y2023 Capital Improvement P lan -- Wesley Wright, P.E., Systems Engineering Director B P resentation and discussion regarding the Water/Wastewater Rate cost of service study updates -- Chelsea Solomon, P.E., Water Utility Director C Discussion and possible direction regarding the interlocal agreement with CapMetro and the City's Limited P aratransit Service and Transit Development P lan -- J ack Daly, Assistant P ublic Works Director D P resentation and discussion regarding major revenues and expenses for the FY2023 budget -- David Morgan, City Manager 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. E 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 - Event Agreement with C2 Acquisitions, LL C Sec. 551.086: Certai n P ubl i c P ow er Uti l i ti es: Competi ti ve M atters - P urchased P ower Update 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, Page 1 of 89 G eorgetown, T X 78626, a plac e readily ac cessible to the general public as required by law, on the _____ day of _________________, 2022, at __________, and remained so pos ted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 2 of 89 City of Georgetown, Texas City Council Workshop June 28, 2022 S UBJEC T: P resentation and discussion regarding the Water/Wastewater Master P lan Update and proposed FY2023 Capital Improvement P lan -- Wesley Wright, P.E., Systems Engineering Director I T EM S UMMARY: P lease find attached presentation on the Water/Wastewater Master P lan Update and P roposed F Y2023 C IP. F I NANC I AL I MPAC T: P roject costs are detailed in the presentation. S UBMI T T ED BY: Wesley Wright AT TAC HMENT S : Description W /W W Mas ter P lan Update & F Y2022 C I P Page 3 of 89 Presentation and Discussion on the Water/Wastewater Master Plan Update and Proposed FY2023 Capital Improvement Plan. June 28, 2022 | City Council Page 4 of 89 Ongoing Water Planning Page 5 of 89 3 •FY23 Capital Improvement Plan Budget •NOW •W/WW Rate Study •Now/October 2022 •Master Plan Update/IWRP •Wrapping Up •Impact Fee Update •Summer 2022 •Reuse Master Plan & Rate Study •FY2023 Ongoing Efforts Page 6 of 89 Water & Wastewater Master Plan Update Page 7 of 89 5 W/WW Model Criteria Future Land Use Plan & Current Zoning Maps Page 8 of 89 6 •Elevated Storage = 100gal/connection •Total Storage = 200gal/connection •1245 Hoover •Tank Out to Bid •Linework & Pump Station under design TCEQ Storage Criteria Planning Horizon Population Connections Existing Available Storage (mg)TAC 1 -Elevated storage at 100 gal/conn TAC 2 -Total storage at 200 gal/conn Elevated Ground Total TAC 1 Volume (mg) TAC 1 Met? TAC 2 Volume (mg) TAC 2 Met? 907 Central and James Street 2022 30,000 11,309 3.00 3.00 6.00 1.131 Yes 2.262 Yes 2027 36,610 14,639 3.00 3.00 6.00 1.464 Yes 2.928 Yes 2032 42,314 17,402 3.00 3.00 6.00 1.740 Yes 3.480 Yes 2042 52,637 22,894 3.00 3.00 6.00 2.289 Yes 4.579 Yes 980 Cedar Breaks, Leander, and Rabbit Hill 2022 15,000 5,767 2.25 2.00 4.25 0.577 Yes 1.153 Yes 2027 22,220 9,452 2.25 2.00 4.25 0.945 Yes 1.890 Yes 2032 29,890 13,384 2.25 2.00 4.25 1.338 Yes 2.677 Yes 2042 34,185 15,634 2.25 2.00 4.25 1.563 Yes 3.127 Yes 1065 Rabbit Hill 2022 5,000 1,245 1.00 0.50 1.50 0.125 Yes 0.249 Yes 2027 8,410 3,085 1.00 0.50 1.50 0.309 Yes 0.617 Yes 2032 10,593 6,838 1.00 0.50 1.50 0.684 Yes 1.368 Yes 2042 10,593 6,838 1.00 0.50 1.50 0.684 Yes 1.368 Yes 1065 & 1015 Jennings Branch and Sun City 2022 30,000 12,285 3.25 3.00 6.25 1.229 Yes 2.457 Yes 2027 36,987 15,364 3.25 3.00 6.25 1.536 Yes 3.073 Yes 2032 45,242 18,822 3.25 3.00 6.25 1.882 Yes 3.764 Yes 2042 66,114 28,798 3.25 3.00 6.25 2.880 Yes 5.760 Yes 1178 Braun and Daniels Mountain 2022 35,000 9,467 8.25 1.40 9.65 0.947 Yes 1.893 Yes 2027 72,043 25,234 9.25 13.40 22.65 2.523 Yes 5.047 Yes 2032 121,028 46,231 9.25 13.40 22.65 4.623 Yes 9.246 Yes 2042 268,986 109,645 9.25 13.40 22.65 10.965 No 21.929 Yes 1240 Carriage Oaks 2022 5,044 1,588 1.00 1.00 2.00 0.159 Yes 0.318 Yes 2027 6,189 2,733 1.00 1.00 2.00 0.273 Yes 0.547 Yes 2032 8,412 4,956 1.00 1.00 2.00 0.496 Yes 0.991 Yes 2042 13,549 10,093 1.00 1.00 2.00 1.009 No 2.019 No 1245 Hoover 2022 2,423 788 -0.15 0.15 0.079 No 0.158 No 2027 2,603 860 2.00 -2.00 0.086 Yes 0.172 Yes 2032 3,017 1,026 2.00 -2.00 0.103 Yes 0.205 Yes 2042 3,371 1,167 2.00 -2.00 0.117 Yes 0.233 Yes Total (All Zones) 2022 122,467 42,449 18.75 11.05 29.80 4.245 Yes 8.490 Yes 2027 185,063 71,366 21.75 22.90 44.65 7.137 Yes 14.273 Yes 2032 260,496 108,658 21.75 22.90 44.65 10.866 Yes 21.732 Yes 2042 449,435 195,069 21.75 22.90 44.65 19.507 Yes 39.014 Yes Page 9 of 89 7 •Pumping C1 –2gpm/connection C2 –firm>peak hour C3 –0.6gpm/connection* (*if Elevated >200gal/con) •1245 Hoover •Tank Out to Bid •Linework & Pump Station under design •1240 Carriage Oaks •Linework & Pump Station under design TCEQ Pumping Criteria Planning Horizon Connections Max Day Demand (gpm) Peak Hourly Demand (gpm) Existing Facilities Criterion 1 -2.0 gpm/conn total pumping capacity Criterion 2 - total capacity > 1000 gpm & firm capacity > peak hour Criterion 3 -0.6 gpm/conn and >= 200 gal/conn of elevated storage Meets TAC? Elevated Storage (mg) Total Pumping Capacity (gpm) Firm Pumping Capacity (gpm) Criterion 1 Capacity (gpm) Criteri on 1 Met? Criterion 2 Met? Criterion 3 Capacity (gpm) Criteri on 3 Met? Systemwide (All Water Supplies) 2022 42,449 27,778 64,458 18.75 104,736 76,673 84,898 Yes Yes 25,469 Yes Yes 2027 71,366 41,995 70,848 21.75 166,872 129,914 142,732 Yes Yes 42,820 Yes Yes 2032 108,658 57,190 94,251 21.75 162,706 127,831 217,317 No Yes 65,195 Yes Yes 2042 195,069 91,119 152,256 21.75 162,706 127,831 390,138 No No 117,041 No No 907 Central and James Street 2022 11,309 7,400 17,173 3.00 25,500 20,400 22,618 Yes Yes 6,785 Yes Yes 2027 14,639 8,614 14,533 3.00 25,500 20,400 29,278 No Yes 8,783 Yes Yes 2032 17,402 9,159 15,094 3.00 25,500 20,400 34,803 No Yes 10,441 No Yes 2042 22,894 10,694 17,869 3.00 25,500 20,400 45,787 No Yes 13,736 No Yes 980 Cedar Breaks, Leander, and Rabbit Hill 2022 5,767 3,774 8,757 2.25 26,900 19,500 11,534 Yes Yes 3,460 Yes Yes 2027 9,452 5,562 9,383 2.25 26,900 19,500 18,903 Yes Yes 5,671 Yes Yes 2032 13,384 7,044 11,610 2.25 26,900 19,500 26,768 Yes Yes 8,031 No Yes 2042 15,634 7,303 12,203 2.25 26,900 19,500 31,268 No Yes 9,381 No Yes 1065 Rabbit Hill 2022 1,245 815 1,891 1.00 8,332 6,249 2,490 Yes Yes 747 Yes Yes 2027 3,085 1,815 3,063 1.00 8,332 6,249 6,170 Yes Yes 1,851 Yes Yes 2032 6,838 3,599 5,931 1.00 8,332 6,249 13,676 No Yes 4,103 No Yes 2042 6,838 3,194 5,337 1.00 8,332 6,249 13,676 No Yes 4,103 No Yes 1065 & 1015 Jennings Branch and Sun City 2022 12,285 8,039 18,655 3.25 20,832 16,388 24,570 No No 7,371 Yes Yes 2027 15,364 9,041 15,252 3.25 20,832 16,388 30,727 No Yes 9,218 Yes Yes 2032 18,822 9,907 16,327 3.25 20,832 16,388 37,645 No Yes 11,293 No Yes 2042 28,798 13,452 22,478 3.25 20,832 16,388 57,597 No No 17,279 No No 1178 Braun and Daniels Mountain 2022 9,467 6,195 14,375 8.25 16,852 10,976 18,934 No No 5,680 Yes Yes 2027 25,234 14,849 25,051 9.25 72,579 58,891 50,467 Yes Yes 15,140 Yes Yes 2032 46,231 24,333 40,101 9.25 68,413 56,808 92,462 No Yes 27,739 Yes Yes 2042 109,645 51,216 85,581 9.25 68,413 56,808 219,290 No No 65,787 No No 1240 Carriage Oaks 2022 1,588 1,039 2,411 1.00 4,320 2,160 3,176 Yes No 953 Yes No 2027 2,733 1,608 2,713 1.00 6,480 4,320 5,466 Yes Yes 1,640 Yes No 2032 4,956 2,608 4,298 1.00 6,480 4,320 9,911 No Yes 2,973 Yes No 2042 10,093 4,715 7,878 1.00 6,480 4,320 20,186 No No 6,056 No No 1245 Hoover 2022 788 516 1,197 -2,000 1,000 1,576 Yes No 473 No No 2027 860 506 854 2.00 6,249 4,166 1,720 Yes Yes 516 Yes No 2032 1,026 540 890 2.00 6,249 4,166 2,051 Yes Yes 615 Yes No 2042 1,167 545 911 2.00 6,249 4,166 2,334 Yes Yes 700 Yes No Page 10 of 89 Water Capital Improvement Plan Page 11 of 89 9 Water 5 Year CIP Page 12 of 89 10 Water 5 Year CIP Downtown Austin Ave YELLOW Lines Proposed Additions •1,800 feet 12-inch •4,900 feet 8-inch •23 additional hydrants 1,500 gallons per minute (min) Central Pressure Plane (866-906 MSL) NO ADDITIONAL PRESSURE Fire pumps MAY be required on large demand structures. Page 13 of 89 11 Water FY23 CIP Project Name Project Description FY2023 FY2024 FY2025 FY2026 FY2027 SOUTHLAKE Southlake Transmission Line 60" and 42" water lines from South Lake WTP necessary to transport potable/treated water to the Western District 28,200,000 Southlake WTP Electrical Service Extension of electric circuit to the South Lake Water Treatment Plant (PEC service)20,000,000 Southlake WTP Wastewater System Gravity Wastewater, Lift Station and force main necessary to serve the Southlake Water Treatment Plant 19,800,000 Page 14 of 89 12 Water FY23 CIP Project Name Project Description FY2023 FY2024 FY2025 FY2026 FY2027 WATERLINES CR262 12" Waterline Upgrade 12" waterline upgrade to CR262 area (fire flow)1,750,000 Rabbit Hill Road 16" Waterlines 16" waterlines along Rabbit Hill/Inner Loop and Blue Ridge to provide redundancy between Southside and Round Rock East interconnect 500,000 2,900,000 Southwestern & SE Inner Loop Waterline Waterline improvements along Southwestern and SE Inner Loop connecting existing gaps providing additional system redundancy (road projects)300,000 1,550,000 Carriage Oaks Transmission 12" & 16" waterline improving connection from Stonewall PS to Carriage Oaks EST 4,850,000 Miscellaneous Line Upgrades This budget will be for miscellaneous waterline extensions in the Western District to provide regulatory TCEQ compliance, as well as unexpected County/State Roadway relocates.550,000 550,000 550,000 550,000 550,000 SH 138 Line Upgrade SH 138 Line has numerous pipe failures and will need to be replaced and upsized prior to Hoover elevated coming online.1,000,000 8,500,000 Downtown Waterline Upgrades Upgrades to various waterlines downtown to provide additional redundancy, replace aged lines, and provide additional capacity/fire flow. 500,000 2,200,000 Page 15 of 89 13 Water FY23 CIP Project Name Project Description FY2023 FY2024 FY2025 FY2026 FY2027 Beyond 5 Years SUPPLY Groundwater Supply from East Pump Station, Tank, and Linework to transport water from Circleville to Georgetown 195,000,000 220,000,000 ASR Well Development Well development at Mankins and Blacklands for ASR Study 2,000,000 8,000,000 Page 16 of 89 14 Water FY23 CIP Project Name Project Description FY2023 FY2024 FY2025 FY2026 FY2027 SYSTEM/MISC System Resiliency Redundant power, communications, and controls to critical infrastructure. 15,000,000 15,000,000 15,000,000 Water/Wastewater Master Plan Update Irrigation/Reuse (2023), Water/Wastewater Master Plan (2025), including Impact Fee program update 500,000 1,000,000 Westside Service Center Building update Minor renovation of Westside Service Center to better facilitate its current use, including Parking, storage, cubical rearrangement, generator, possible back- up Dispatch and SCADA 150,000 Woods Pump Station Remodel Woods Pump Station Remodel for Site storage that was removed at transfer Station 200,000 Water SCADA Assessment 1,200,000 Metering AMI Equipment Upgrade 5,500,000 2,750,000 Page 17 of 89 Wastewater Capital Improvement Plan Page 18 of 89 16 Wastewater Treatment -Northlands Projected Needed 2026 Start Design Now Page 19 of 89 17 Wastewater Treatment –Pecan Branch Could potentially send up to 88 mgd peak wet weather flow to Pecan Branch at Buildout. Start Expansion Now Page 20 of 89 18 Wastewater Collection –Chunnel Estimated $80MM tunnel under SH29 –10yr horizon Alternative Temporary Measure Only Expand Wolf Ranch LS 6 mgd North Retire Interceptor LS Upsize Interceptor LS gravity sewer Upsize gravity to Park LS Upsize Park LS Install SGWWTP Diversion Wolf Ranch Flow diversion overwhelms SGWWTP Capacity Page 21 of 89 19 Wastewater FY23 CIP Project Name Project Description FY2023 FY2024 FY2025 FY2026 FY2027 Plants Northlands Wastewater Treatment Plant Design and construction of the first phase of the Northlands WWTP north of Ronald Reagan 7,500,000 48,500,000 Pecan Branch WWTP Expansion Expansion of the existing 3MGD WWTP to 12MDG to serve continued growth throughout the city. Will also assist with the diversion of flow away from Dove Springs WWTP to open up capacity for development east of SH130. Permitting/ Design FY22, Full Design FY23, Construction FY24 18,000,000 142,000,000 San Gabriel WWTP Rehabiliation Capital Maintenance of aged mechanical equipment at the existing plant: onsite lift station, bar screen, aeriation basin/diffuser system, blowers, electrical upgrades, DO control, influent flow management improvements, hydraulic improvements, chemical feed system improvements (mixers, gates, tanks, containment, pumps)15,500,000 Dove Springs WWTP Rehabilitation Capital Maintenance of aged mechanical equipment at the existing plant: clean tanks, replace existing diffuser grid, replace blowers, upgrade electrical/controls, DO control system, modifications to airlift pumps, repair air system, sludge handling improvements.7,350,000 10,000,000 Page 22 of 89 20 Wastewater FY23 CIP Project Name Project Description FY2023 FY2024 FY2025 FY2026 FY2027 Interceptor/Linework Berry Creek Interceptor Funds to complete construction of Berry Creek Interceptor, plus spur connection to Berry Creek Highlands near Shell Road 16,500,000 3,100,000 Cimarron Hills WWTP Decommissioning Lift station, force main, & gravity diversion, minor plant maintenance and ultimate decommissioning of the plant 750,000 5,900,000 5,100,000 Mankins Gravity Wastewater linework for the Mankins Basin connecting to Avery Bost Lift Station (2024) and ultimately Mankins WWTP (2027+)250,000 1,000,000 Northlands Lift Station Lift Station, force main, and gravity line necessary to transport flow to the future NLWWTP 2,500,000 16,800,000 Sunny Trail (Teravista/1460) LS Decommissioning of existing lift station and upsizing of developer driven wastewater line through the Hullum Tract 2,200,000 San Gabriel Int. (SGI-2) 5567 LF of 48-inch and 932 LF 54-inch gravity lines. This project will also include the San Gabriel LS & FM (SGI-LS) -5682 LF of 24-inch Force main and 8.5 MGD Lift Station.46,000,000 Page 23 of 89 21 Wastewater FY23 CIP Project Name Project Description FY2023 FY2024 FY2025 FY2026 FY2027 SYSTEM/MISC Lift Station Upgrades Lift Station upgrades consisting of decommissioning, electrical upgrade, backup power, structure rehab.650,000 650,000 650,000 650,000 650,000 EARZ Repair of system flaws discovered as a result of EARZ mandated testing. Ongoing TCEQ requirement.2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Page 24 of 89 Summary/Next Steps Page 25 of 89 23 Water & Wastewater FY23+ CIP Summary Key Factors for Costs: •Inflation, supply chain issues, labor, material, fuel/oil based products •Growth rate significantly higher than 2018 Master Plan Update •Density significantly higher than 2018 Master Plan Update •Larger Service Areas (Williams/Reagan & East of SH130) •Additional Regulations (SB3 –System Resiliency) •Aged Infrastructure (ongoing maintenance needs) FY2023 FY2024 FY2025 FY2026 FY2027 Beyond 5 Years 10 Year Total Water 102,000,000$ 41,450,000$ 16,550,000$ 550,000$ 195,550,000$ 218,775,000$ 574,875,000$ Wastewater 70,950,000$ 9,300,000$ 253,150,000$ 19,950,000$ 11,350,000$ 153,150,000$ 517,850,000$ 172,950,000$ 50,750,000$ 269,700,000$ 20,500,000$ 206,900,000$ 371,925,000$ 1,092,725,000$ Page 26 of 89 24 Next Steps •FY23 Water/Wastewater CIP –Today, June 28, 2022 •FY23 Budget –July/August 2023 •Impact Fee Committee Appointment –July 2022 •Integrated Water Resources Plan –Summer 2022 •Updated Water and Wastewater Rates –October 1, 2022 •Impact Fee Committee Report/Recommendations –October/November 2022 •Master Plan Final Report & Impact Fee Update –Effective March 1, 2023? •Reuse Master Plan & Rate Study –FY23 No Formal Action Questions/Concerns/Suggestions/Comments/Direction? Page 27 of 89 City of Georgetown, Texas City Council Workshop June 28, 2022 S UBJEC T: P resentation and discussion regarding the Water/Wastewater Rate cost of service study updates -- Chelsea Solomon, P.E., Water Utility Director I T EM S UMMARY: P resentation will be given at the meeting. The Water Utility Advisory Board reviewed the Study at their J une 9, 2022 regularly scheduled meeting. F I NANC I AL I MPAC T: . S UBMI T T ED BY: Chelsea Solomon, Director of Water Utility/skm AT TAC HMENT S : Description Water/Wastewater R ate P resentation Page 28 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC UPDATE ON WATER AND SEWER RATE STUDY CITY OF GEORGETOWN, TEXAS June 28, 2022 Page 29 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC SUMMARY INTRODUCTION •Key Cost Drivers and Forecast Updates ̶Additional Projects ̶New Operational Expenses ̶Inflationary Increases •FY 2022 Objectives ̶Fiscal Policy Review and Compliance ̶Revenue Adequacy ̶Fairness in Rate Setting 2 Page 30 of 89 3© 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC CAPITAL PLAN SUMMARY 3 Water CIP FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Updated $ 119,616,667 $ 26,775,000 $ 9,208,333 $ 1,925,000 $ 199,425,000 Previous 67,375,000 23,925,000 4,675,000 4,675,000 7,975,000 Variance $ 52,241,667 $ 2,850,000 $ 4,533,333 ($ 2,750,000)$ 191,450,000 Wastewater CIP FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Updated $ 82,191,666 $ 16,800,000 $ 250,983,333 $ 21,450,000 $ 19,090,000 Previous 62,095,000 38,005,000 2,805,000 22,605,000 2,805,000 Variance $ 20,096,666 ($ 21,205,000)$ 248,178,333 ($ 1,155,000)$ 16,285,000 Total FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Updated $ 201,808,332 $ 43,575,000 $ 260,191,667 $ 23,375,000 $ 218,515,000 Previous 129,470,000 61,930,000 7,480,000 27,280,000 10,780,000 Variance $ 72,338,332 ($ 18,355,000)$ 252,711,667 ($ 3,905,000)$ 207,735,000 Page 31 of 89 4© 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC DEBT PAYMENTS 4 Increases Due To: •Higher Interest Rates •Additional/Increased Capital Costs Page 32 of 89 5© 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC GROWTH AND IMPACT FEES 5 Growth (LUEs)FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Water Updated 5,000 5,000 5,000 5,000 5,000 Previous 4,500 4,000 4,000 4,000 4,000 Variance 500 1,000 1,000 1,000 1,000 Wastewater Updated 3,000 3,000 2,500 2,500 2,500 Previous 2,500 2,500 2,500 2,000 2,000 Variance 500 500 0 500 500 Impact Fees ($/LUE)FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Water Updated $ 5,000 $ 6,000 $ 6,500 $ 7,000 $ 7,500 Previous 5,000 5,000 5,000 5,000 5,000 Variance $ 0 $ 1,000 $ 1,500 $ 2,000 $ 2,500 Wastewater Updated $ 3,115 $ 3,115 $ 3,115 $ 4,000 $ 4,000 Previous 3,115 3,115 3,115 3,115 3,115 Variance $ 0 $ 0 $ 0 $ 885 $ 885 Page 33 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC RELATIONSHIP BETWEEN USER RATES AND IMPACT FEES 6 IMPACT FEES CASH / DEBT FUNDED (NON-GROWTH) SYSTEM EXPANSION (GROWTH) CAPITAL EXPENSES SYSTEM MAINTENANCE (NON-GROWTH) USER RATES CASH / DEBT FUNDED (GROWTH) OPERATING EXPENSES Page 34 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC NEW PROGRAM AND OPERATIONAL COSTS Water Wastewater •$ 5.0M Personnel •$ 1.8M Equipment •$ 1.6M Professional Services •<$0.1M Facility-related 7 New Program/O&M by Utility ($M)FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Water $ 3.9 $ 2.9 $ 2.9 $ 3.6 $ 2.9 Wastewater 4.1 1.2 1.1 1.2 1.2 Total $ 8.0 $ 4.1 $ 4.0 $ 4.8 $ 4.1 •$11.5M Personnel •$ 3.1M Equipment •$ 0.7M Professional Services •<$0.1M Facility-related Excludes Inflation Adjustments Page 35 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC INFLATION FACTORS USED 8 FY 20231 FY 20242 FY 2025 FY 2026 FY 2027 Municipal Cost Index 5.0%4.0%3.0%3.0%3.0% Construction Cost Index 15.0%9.2%3.3%3.3%3.3% Salaries 3.0%3.0%3.0%3.0%3.0% Benefits 5.0%5.0%6.0%7.0%8.0% Chemicals 30.0%15.8%1.7%1.7%1.7% Electricity3 7.0%0.0%3.0%0.0%3.0% Natural Gas 30.0%16.5%2.9%3.8%3.4% Fuel 30.0%16.9%3.9%3.3%3.7% Notes: 1 –Discussed with Staff and Reviewed Recent Trends 2 –Average of FY 2023 and FY 2025 (Normal) 3 –Per Discussions with Staff and Electric Team Page 36 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC FINANCIAL POLICY REVIEW AND SUGGESTED EDITS •Days Operating Cash on Hand Reserve ̶Current –90 Day Minimum ̶Recommend –90 Day Minimum, Target of 120 Days and Max of 1 Year •Water Fixed Cost Recovery from Base Charges ̶Current –75% of Identified Fixed Costs ̶Recommend –65% of Identified Fixed Costs with 90% in Base plus 1st Tier Rates •Non-Operating Reserve ̶Current –Broadly Defined and Historically $10M ̶Recommend –Defined as a minimum of 50% of Annual Debt Service Requirements 9 Page 37 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC PROJECTED COMBINED UTILITY PERFORMANCE UNDER CURRENT RATE REVENUES •Combined utility estimated to not recover revenue requirements as early as FY 2022 ̶Shortfall covered by available balances •An increase is needed to achieve Debt Service Coverage targets in FY 2024. •Days Cash on Hand reserves drop below 90 Days as early as FY 2024 •Water Monthly Base Charge revenues lower than target for Water Fixed Cost of Service as early as FY 2023 FY (Targets)2022 2023 2024 2025 2026 2027 DSC (1.50x)5.87 1.72 1.40 1.35 0.97 1.03 Days Cash (90 Days)*326 165 50 (43)(201)(323) Fixed COS Part 1 (65%)73%55%57%59%60%58% Fixed COS Part 2 (90%)110%82%84%87%87%84% *Excludes Non-Operating Contingency 10 Page 38 of 89 RATE DESIGN Similar users found to have differing effective rates and charges for similar services Multi-family and Builder Page 39 of 89 SAMPLE FAMILIES Averaging 3,500 Gallons Indoor Water Usage Monthly Each Person Showers Daily Each Person Flushes 5 Times Daily 3-Person Households Page 40 of 89 ANNUAL COST TO SHOWER WATER ONLY PORTION OF BILL = $ 65.63 Currently Multi-Family as Commercial = $ 174.43 Single Family Residential or Submetered Units = $ 129.30 Suggested Multi-Family as Multi-Family Residential Page 41 of 89 = $ 41.9520 ? Currently Multi-Family as Commercial ANNUAL COST TO FLUSH WASTEWATER ONLY PORTION OF BILL 50 = $ 32.55 4 = $ 104.62 = $ 87.22 Single Family Residential or Submetered Units = $ 58.14 50 20 4 = $ 58.14 = $ 58.14 Suggested Multi-Family as Multi-Family Residential Page 42 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC MULTI-FAMILY •City has the Option to Bill Multi-Family Customers on a per Unit Basis ̶Minimum and Volumetric Charge Calculated per Unit ̶Currently 109 Accounts with a Total of 6,751 Units •Average Residential Account = 3/4” Meter ̶If per Unit Billing, Multi-Family at 5/8” Meter = 66% Lower Minimum •“…the number of service connections in an apartment complex would be equal to the number of individual living units.” 30 TAC §290.38(16) 15 Page 43 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC BUILDER •Recommend Billing Builders same Class as Property ̶Recommended to be Billed as Residential Last Year •Per FY 2020 Billing Data ̶Residential Peak/Average = 1.73 ̶Builder Peak/Average = 1.75 •Keeping the meter in the same rate class as the end user is also helpful for customer service record keeping 16 Page 44 of 89 1717© 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC EXPENSES AND PROPOSED RATES Excludes Capital Expenses from Bond Proceeds or Impact Fees 17 Total FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Updated 11.50%11.50%11.50%11.50%6.00% Previous 9.00%9.00%0.00%0.00%0.00% This includes rate design changes. Page 45 of 89 1818© 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE PLAN EFFECT ON MONTHLY BILLS 6,000 Gallon Residential Bill Impact ¾” Meter Size 18 Page 46 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC PROJECTED COMBINED UTILITY PERFORMANCE UNDER PRELIMINARY DRAFT RATE REVENUES Rate Adjustments 2023 2024 2025 2026 2027 Water (All%)11.5%11.5%11.5%11.5%6.0% Wastewater (All %)11.5%11.5%11.5%11.5%6.0% *Excludes Non-Operating Contingency Draft Rate Projection •Increases shown here are for discussion ONLY. •Rate adjustments below reflect current assumptions and CIP funding plan. •Inflation, increased wholesale costs and accelerated/new capital projects will likely change FY 2025-2027.FY (Targets)2022 2023 2024 2025 2026 2027 DSC (1.50x)5.87 2.03 1.86 2.05 1.65 1.85 Days Cash (90 Days)*326 202 160 169 101 116 Fixed COS Part 1 (65%)73%61%70%80%88%90% Fixed COS Part 2 (90%)110%90%103%117%129%131% 19 Page 47 of 89 20© 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL REGIONAL BILL COMPARISON Customer at 6,000 Gallons 20 Page 48 of 89 21© 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL REGIONAL BILL COMPARISON Customer at 10,000 Gallons 21 Page 49 of 89 22© 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL REGIONAL BILL COMPARISON Customer at 25,000 Gallons 22 Page 50 of 89 © 2022 NEWGEN STRATEGIES AND SOLUTIONS, LLC NEXT STEPS •Receive Council Guidance Here •Customer Engagement July - August •Proposed Rate Action Timing ̶Adoption in September ̶Effective Date October 1, 2022 23 Page 51 of 89 THANK YOU FOR YOUR TIME MATTHEW B. GARRETT, MANAGING PARTNER972-675-7699MGARRETT@NEWGENSTRATEGIES.NET MEGAN KIRKLAND, SENIOR CONSULTANT972-432-6218MKIRKLAND@NEWGENSTRATEGIES.NET Page 52 of 89 City of Georgetown, Texas City Council Workshop June 28, 2022 S UBJEC T: Discussion and possible direction regarding the interlocal agreement with CapMetro and the City's Limited P aratransit Service and Transit Development P lan -- J ack Daly, Assistant P ublic Works Director I T EM S UMMARY: F I NANC I AL I MPAC T: None at this time. S UBMI T T ED BY: J ack Daly AT TAC HMENT S : Description Draft P resentation Page 53 of 89 CapMetro | City of Georgetown Interlocal Agreement Council Workshop June 28, 2022 Page 54 of 89 2 Council Areas of Emphasis | Downtown Guiding Principle: The City of Georgetown will provide a positive economic environment to ensure an active and viable downtown and provide infrastructures and amenities to ensure safety, mobility and accessibility. •Initiatives (excerpt): •Expand downtown mobility opportunities. •Improve…accessibility in all aspects of mobility. Page 55 of 89 3 Council Areas of Emphasis | Growth Guiding Principle: The City of Georgetown will proactively work to anticipate growth in all aspects of city government –mobility, infrastructure, customer service. Initiatives (excerpt): •Update Master Plans •[Transit Development Plan not included] •Ensure financing capacity to handle growth. •Promote public/private partnerships (PPP) to fund infrastructure needs related to growth and development. •Maintain high customer service capacity. •Establish an organizational capacity plan ensuring efficiency and effectively responding to growth. Page 56 of 89 4 Background •GoGeo fixed-route service ended Oct. 1, 2021 •The FY2022 interlocal agreement with CapMetro expires Sept. 30 •ILA provides for Limited Paratransit, a subcontracted service provided by CARTS •Currently, COG budgets for 4,782 hours of service (1.5 buses) annually •All rooted in Transit Development Plan (TDP) -identify need, analyze service options and financing, and provide recommendations for service. Page 57 of 89 5 Goals of the Transit Development Plan Sept 2016 •Goal 1:Provide a safe,reliable,efficient,and accessible transportation option for residents and visitors of Georgetown. •Goal 2: Adequately address the mobility needs of Georgetown residents. •Goal 3: Maximize resource utilization and operational efficiency with respect to system administration and operations. •Goal 4:Develop a local system that operates effectively in the short-term,continues to develop an audience for regional transit options in the mid-term,and will connect the local community to the region in the long-term. Page 58 of 89 6 Transit Development Plan Goals •Provide access to shopping,jobs,medical appointments and social services. •Connections for tourists -Downtown Square,Rivery Conference Center and hotel,etc… •Provide service to transit dependent populations. •Develop Strategic Partnerships –GHF •Provide service to Southwestern University. •Create a cost effective,useful and user-friendly transit service. •Establish a solid foundation for transit to build on over time. •Meet future regional services –Project Connect Page 59 of 89 7 Limited Paratransit •The City’s paratransit service, which is operated by CARTS as a subcontractor for CapMetro, provides curb-to-curb service from 7 a.m. to 7 p.m. Monday through Friday except on designated holidays. •Reservations for rides are scheduled Monday through Friday from 8 a.m. to 5 p.m. except for designated holidays and must be made prior to 4 p.m. for next day service. Customers can make reservations in advance through the website or calling 512-478-RIDE (7433). Eligible riders pay $2.00 each way. Page 60 of 89 8 Eligibility •Paratransit service is available to qualified people with disabilities living within the Georgetown city limits. •Eligibility and screening for paratransit services are provided, through a paper application, by the Capital Area Rural Transportation System •Eligibility Application. Page 61 of 89 9 Budget •FY2022 ILA allows for 4,782 hours of service (1.5 vehicles) •Projecting Georgetown will use ~2,400 service hours. •FY2023 budget options below. •Total FY2023 Section 5307 Funds for the City of Georgetown = $475,353 •Section 5307 Funds not used remain with CapMetro First Vehicle 1.5 Vehicles Second Vehicle Annual Hours 3,188 4,782 6,376 Hourly Operating Rate $90.30 $90.30 $90.30 Total $287,876.40 $431,814.60 $575,752.80 Section 5307 Share (40%)$115,150.56 $172,725.84 $230,301.12 Georgetown Local Share (60%)$172,725.84 $259,088.76 $345,451.68 Page 62 of 89 10 Paratransit FY2022 FY2020 FY2021 FY2022 October 468 278 249 November 410 205 263 December 381 221 261 January 394 206 244 February 428 166 217 March 340 254 302 April 141 244 282 May 151 250 278 June 218 260 July 232 236 August 219 262 September 262 259 AVERAGE 303 236.75 262 Page 63 of 89 11 Senior Service •For FY2023, if we budget for 1.5 buses, there would be 4,782 hours of service •We anticipate those hours exceeding the current demand for limited paratransit, so open to discussing ways to increase requests. •Open to residents or visitors age 65 and older •Live in Georgetown City Limits (other see below) •Fare: $2.00 –same as Limited Paratransit Service •Customers inside city limits may be approved to use the program by completing the following information for the CARTS Intake Form: Name, Address, Phone, DOB, Assisted Devices, Emergency Contact •Customers outside city limits may be approved to use the program by completing the CARTS Intake Form. If approved, customers may use the service once inside the city limits and will only be transported within city limits. •Senior Service customers may bring one Personal Care Assistant (PCA) and/or one traveling companion. The PCA is allowed to ride at no cost and the companion will pay a $2.00 fare. This is consistent with current service. •The Limited Paratransit Service code of conduct and Rider’s Manual apply to senior service customers. Page 64 of 89 12 Other Considerations •Current TDP needs to be updated •Changes to service (e.g. On-Demand)will require an update to the Transit Development Plan •Consideration in FY2024 ILA. •Coordination with CapMetro’s budget and staff time •City commitment –cost, staff time, Council to reaffirm or adjust goals •Public Engagement •On-demand service can be contemplated in the new TDP •Other transportation planning efforts •Overall Transportation Plan •Williams Drive Access Management Study •Austin Ave. Corridor Study Page 65 of 89 13 Other Considerations Page 66 of 89 14 Next Steps/Council Direction •Update the ILA •Update the rider eligibility application (part of ILA), if needed •Riders will need to recertify by Oct. 1. •Continue with current Limited Paratransit Service? •Potentially add senior service to the discussion in FY2023? FY2024? •Prepare for changes in service •For FY2024, consider updating the transit development plan to inform ILA discussions •Update could include other service models, like on-demand Page 67 of 89 City of Georgetown, Texas City Council Workshop June 28, 2022 S UBJEC T: P resentation and discussion regarding major revenues and expenses for the FY2023 budget -- David Morgan, City Manager I T EM S UMMARY: Overview of majo r revenue and expense pressures identified through the development of the FY2 02 3 budget. Major themes include managing growth, maintaining our current service levels, evaluating se rvic e level pressures within the organization, and discussion and feedback on payment in lieu of taxes (P IL O T). Staff will incorporate Council feedback and direction as part of the F Y2023 budget development. F I NANC I AL I MPAC T: . S UBMI T T ED BY: Sharon P arker AT TAC HMENT S : Description F Y2023 Budget P ressures and P I LO T Page 68 of 89 FY2023 Budget Pressures for Council Feedback Page 69 of 89 2 Agenda •Preview major changes in revenues and expenditures for the FY2023 budget •Present findings from Council-requested research on Payment in Lieu of Taxes •Get Council feedback prior to draft budget workshops July 19th and 20th Note –estimates on the following slides are preliminary and subject to change prior the draft and proposed budgets as staff work through the review process over the summer Page 70 of 89 3 FY23 Budget Themes •Maintain service levels •Address rapid growth and significant inflation •Address staff workload pressures •Improve risk management •Responding to a tight labor market Page 71 of 89 4 Revenue Changes –Property Tax •43% preliminary increase in total market value, $1.03 billion in new value •State imposed 3.5% cap on O&M side; transportation and facilities pressure on the debt side •O&M Property Tax estimate –anticipating $1 million increase over FY2022 Page 72 of 89 5 Revenue Changes –Sales Tax •YTD trends and year-end estimates: •FY22 year-end estimate at $29.3M •FY23 increase estimated at $2.3M •Volatility caution –building materials make up 20% of year-to-date sales tax revenue •Propose an increase to the Economic Stability Reserve from 6% to 8%. •$1.46M increase 6.9%8.9%8.2% 15.2% 25.1% 22.5% 8.0% K 5.0M 10.0M 15.0M 20.0M 25.0M 30.0M 35.0M FY2016 Actual FY2017 Actual FY2018 Actual FY2019 Actual FY2020 Actual FY2021 Actual FY2022 Projected FY2023 Budget GENERAL FUND SALES TAX Page 73 of 89 6 Revenue Changes –Cost Allocation Model (Admin Charges) •Completed consultant study •Results reduced revenues/increased expenses to the General Fund by $4M •Two -year phase in 2023 and 2024 •FY23 impact is a $2M reduction in the General Fund Page 74 of 89 7 Revenue Changes –ESD8 Contract •Agreement between the City and ESD #8 for Fire and EMS support services •ESD Property tax revenue not keeping up with their contract cost; sales tax election failed •There’s a potential for ESD #8 to not be able to meet their obligations and will need to evaluate next steps. •ESD #8 expenses exceeded their revenues by $1.3M in FY2022, remaining fund balance of $3.19M Page 75 of 89 8 Revenue Changes –Payment in Lieu of Taxes •Current PILOT methodology represents approximately 10% $9.3M of revenue in the General Fund •The Electric PILOT has been artificially capped in past years to assist in restoring the electric utility reserves •FY22 reserves are projected to be above targets •Current budget development by staff would cap Electric Pilot at $5.5M ($1.7M below our financial policies) Page 76 of 89 9 Expense Changes –Inflation •Fuel: Mid-year budget amendment adjusted the budget for fuel by 37% city-wide. Proposing a 21% increase over the FY2022 budget in FY2023. •Vehicles: prices increasing, and production of most vehicles delayed because of supply change issues. •Chemicals: Mid-year budget amendment adjusted the budget for chemicals by 76%. Proposing a 42% increase over FY2022 budget in FY2023. Page 77 of 89 10 Expense Changes –Employee Recruitment and Retention •Second half of FY2022 3% base pay increase -$1.6M •Second half of 20.5 (General Fund) new positions in FY2022 - $340K •Merit and Market for FY2023 •$750K General Fund impact •Public Safety Meet and Confer –$1.8M (estimate) Page 78 of 89 11 Expense Changes –Development Services •Development Services: Planning, Inspections, Engineering -$1.6M •Senior Planner ($77K) •Planning Consulting Services ($50K) •Permit Technician and Building Plans Examiner ($115K) •Project Manager ($98K) •3 Public Improvements Inspectors ($220K) •Project Planner Scheduler ($70K) •5 vehicles ($280K) •Development Engineering Consulting Services ($700K) Page 79 of 89 12 Expense Changes –Public Safety •Public Safety -$2.5M •K-9 unit staffing -$410k •Patrol and Investigations staffing -$640k •Battalion Chiefs (3) and Fire Life/Safety staffing -$873k •Fire Equipment and Supplies -$590k Page 80 of 89 13 Expense Changes –Risk Management •Risk Management -$440k •Emergency Management staffing –$74k •Finance (treasury/accounting) staffing -$82k •Real Estate consulting -$50k •Appraisal contracting -$30k •Performance Management software platform -$120k Page 81 of 89 14 Expense Changes –Public Works •Public Works -$735k •Transportation Planning staffing -$80k •Sign Maintenance contract -$150k •Traffic studies contract -$150k •Field crews -$115k •Sign and Signal staffing -$240k Page 82 of 89 15 Expense Changes –Communications/Customer Service/ Special Events •Communications/Customer Service/Special Events -$728k •Social Media staffing -$67k •“311 Like” implementation -$200k •Branding implementation -$150k •Special Events staffing -$146k •175th City Birthday Celebration -$125 •Street Maintenance Sales Tax Election Education -$40k Page 83 of 89 16 Electric Pilot Comparisons •Compared Georgetown, College Station, Lubbock, Denton and Garland Each cities calculates their transfers differently…not a specific standards •Methodologies: •City of Georgetown: 7% of the gross revenue of the base monthly charge plus $0.007253/kWh sold •College Station: Calculated based on kWh usage at a rate that would equate to an approximate 9.0% franchise fee, and the total transfer amount will not exceed 9.0% of total estimated operating revenues •Lubbock: 1% of metered revenues •Denton: 3.5% of rate revenue. PILOT is capped at 6% of the net investment. •Garland: Percentage applied to a three-year moving average of net retail sales plus an in-lieu of Ad Valorem Tax assessment on GP&L’s (Garland Power and Light) fixed assets and inventory as of the close of the fiscal year. The percentage is currently at 8%. Page 84 of 89 17 Revenue Changes –Payment in Lieu of Taxes 0.00% 5.00% 10.00% 15.00% 20.00% FY2019 FY2020 FY2021 PILOT (COMBINED) -% OF GENERAL FUND REVENUE COG College Station Garland Lubbock Denton Page 85 of 89 18 Revenue Changes –Payment in Lieu of Taxes •Reduce policy to half PILOT across all utility funds •General Fund Impact •FY2019: $2.7M •FY2020: $3.6M •FY2021: $3.7M •FY2022 Forecast: $3.9M •FY2023 Forecast: $4.2M 7.4M 8.5M 9.0M 9.7M 10.7M 9.0M 9.2M 10.2M 11.0M 12.4M 4.7M 4.8M 5.3M 5.7M 6.4M K 2.0M 4.0M 6.0M 8.0M 10.0M 12.0M 14.0M FY2019 FY2020 FY2021 FY2022 Forecast FY2023 Forecast PILOT -SCENARIOS PILOT - ACTUALS PILOT - WITH ELECTRIC UNCAPPED PILOT - REDUCED TO 3.5% Page 86 of 89 19 Electric Fund Reserve History 13% 10% 8%8% 0% 8% 12% 33% 40% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% K 5.0M 10.0M 15.0M 20.0M 25.0M 30.0M 35.0M 40.0M FY2014 Actuals FY2015 Actuals FY2016 Actuals FY2017 Actuals FY2018 Actuals FY2019 Actuals FY2020 Actuals FY2021 Actuals FY2022 Budget ELECTRIC RESERVES AND % OF OPERATING EXPENSE Total Reserves % of Operating Expense Page 87 of 89 20 Pilot Treatment Options 1.Stay the current course •Continue to cap the Electric Pilot below the financial policies -$1.7M impact to General Fund in FY23 •Look at further lowering Electric Pilot using one-time funds after the close of the fiscal year 2.Reduce Pilot in half in FY23 -$4.2M impact to the General Fund in FY23 3.Set a Pilot reduction goal with a multi-year reduction plan •Example: Reduce to a certain target over 5 years 4.Review Pilot at a policy level following the implementation of the allocation study…estimated to be done in FY25 Page 88 of 89 21 Next Steps •Week of July 11: distribute draft budget books •July 12 Council Workshop: fee increase proposals; tax-supported CIP balancing •July 19 and 20: presentation of the draft 2023 budget •Aug 9: proposed budget •Aug 23: first reading to adopt the budget, tax rates, fees and utility rates; fiscal policies Page 89 of 89