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HomeMy WebLinkAboutAgenda CC 02.25.2020 WorkshopN otice of M eet ing of the Governing B ody of the C ity of Georgetown, Texas F ebruary 2 5 , 2 0 2 0 The G e orgetown City Council will meet on February 25, 2020 at 3:30 P M at City Council Chambers, 510 W 9th Street Georgetown, TX 786 26 The City o f Geo rgetown is committed to c ompliance with the Americans with Disabilities Act (AD A). If you re quire assistance in participating at a public meeting due to a disability, as defined under the AD A, re asonable assistance, adaptations, o r acco mmodations will be provide d upon request. P lease contac t the City Secretary's Office, at le ast three (3) days prior to the sche duled meeting date, at (512) 930-36 52 or City Hall at 808 M artin Luthe r King J r. Street, Georgetown, TX 78 62 6 for additional informatio n; TTY users route through Re lay Texas at 711. Policy De ve lopme nt/Re vie w Workshop - A P re sentatio n and discussion regarding process to address “cost of se rvic e” fo r Downtown Solid Waste Services -- Teresa Chapman, Enviro nmental Services and Ray M iller, Director of P ublic Works B P re sentatio n and discussion regarding creating a video production studio in the second floor of the Geo rgeto wn Art Center -- Aly Van Dyke, Communications and P ublic Engagement Director; and Eric Lashley, Georgetown P ublic Library Director C P re sentatio n and discussion regarding the Electric Line Extension P olicy -- Daniel Bethapudi, Ge ne ral M anager of the Electric Utility D P re sentatio n and discussion regarding the pro posed Budget Calendar fo r the FY2021 Annual Budget and Five Year C IP -- P aul Diaz, Budget M anager E P re sentatio n, update, and discussio n on the 20 18 Economic Develo pment Strategic P lan -- Mic haela Dollar, Economic Development Director Exe cutive Se ssion In compliance with the Open Meetings Ac t, Chapter 5 51, Government Code, Verno n's Texas Codes, Annotated, the items listed below will be disc ussed in closed session and are subject to action in the regular se ssio n. F Sec. 5 51 .07 1: Consul tati on wi th Attorney Advice fro m attorney about pending or co ntemplated litigation and o ther matters on which the attorney has a duty to advise the City Co uncil, including agenda items - Litigation Update Sec. 5 51 .08 6: Certai n P ubl i c P ow e r Uti l i ti es: Competi ti ve M atters - P urchase P o wer Update Sec. 5 51 :07 4: P ersonnel M atters Co nsideratio n of the appointment, emplo yment, evaluation, reassignment, duties, discipline, or dismissal - Municipal Court J udge - City Secretary Page 1 of 97 Adjournme nt Ce rtificate of Posting I, R o b yn Dens mo re, C ity S ec retary fo r the C ity of G eorgetown, Texas , d o hereb y certify that this No tic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgeto wn, T X 78626, a p lace readily ac ces sible to the general pub lic as required by law, on the _____ day of _________________, 2020, at __________, and remained s o posted for at leas t 72 c ontinuous ho urs p receding the s ched uled time o f said meeting. __________________________________ R o byn Dens more, C ity S ecretary Page 2 of 97 City of Georgetown, Texas City Council Workshop Februa ry 25, 2020 S UBJEC T: P resentation and discussion regarding process to address “co st of service” fo r Downtown So lid Waste Services -- Teresa Chapman, Enviro nmental Services and Ray Miller, Directo r of P ublic Works I T E M S UMMARY: Update City Council o n the Solid Waste Downto wn Co st of Service P roject. Reque st guidance or approval for Cost o f Service billing pro c e ss. Request guidance or appro val to update the City's Solid Waste Ordinance. F I NANC I AL IMPAC T: No impact to rates. S UBMI T T ED BY: Teresa Chapman AT TAC HMENT S : Description C ost of S ervic e - Downto wn S olid Waste Downto wn Map Page 3 of 97 Downtown Cost of Solid Waste Service City Council Workshop 2.25.2020 Page 4 of 97 Purpose: •Update City Council on Solid Waste Downtown Cost of Service Project (SWDCSP). •Request guidance on “Cost of Service” billing process. •Request guidance on Solid Waste Ordinance update. Agenda: •Quick review of SWDCSP •Update current status •Request direction on SWDCSP Purpose: Update Cost of Service Project Page 5 of 97 6th Street 0 9th Street 7th StreetAu s t i n A v e . Ma i n S t r e e t Ch u r c h S t r e e t Ro c k S t r e e t 8th Street 525150 4041 37 38 39 0 6th Street Page 6 of 97 Cost of Service Timeline 2018 •February: Included as part of the Solid Waste Master Plan •February and March: Downtown businesses and stakeholder meetings and discussions about challenges and options •April: Overview of SWMP & Downtown strategies City Council •April: Overview of SWMP & Downtown strategies with GTAB •November: City Council update on SWMP combined comments from GTAB •October: Meet with Stakeholders (business and property owners) •November: Meet with Stakeholders (business and property owners) 2019 February: SWMP update with P&Z March: Waste Audit April: Review Downtown Solid Waste Options with City Council May: Solid Waste Master Plan adopted May: Final scope of work for downtown solid waste services approved Page 7 of 97 Cost of Service Review of Downtown Challenges Solid Waste Master Plan Key Objective: •Improve understanding of solid waste and recycling service needs of the City’s Downtown Square customers and involve a variety of Downtown businesses -Presentation to Council April 24, 2018 •Solid Waste Master Plan was adopted May, 2019 Review Current System Research Alternate Systems Page 8 of 97 Cost of Service Review of Downtown Challenges Challenges included: •Limited space and access •Illegal & improper disposal •Overflowing dumpsters •Stashes of trash •Litter •Overall need for cleanliness •Equity Pricing City Council requested staff come back with options to address challenges. Page 9 of 97 Cost of Service Input from Downtown Stakeholders 7 Placement of dumpsters on private property is not guaranteed and likely to be eliminated with continued growth; City-owned property needed for shared facilities; limited options. Current system of carts & dumpsters has negative aesthetics that is unattractive, encourages inappropriate/unauthorized use, and has the potential to attract pests. Access & Space Growth of Downtown will continue and challenges of current system will be intensified. Transition to a new system will become more difficult with growth. Aesthetics/ Public Health Growth Support for volume-based rates; at minimum, rates need to be adjusted for equity in current system; with a new system, new rates would need to be developed. Service Charges Page 10 of 97 •Removes carts & dumpsters on sidewalks, streets, parking spaces •Allows for 3-stream system in future •Siting of 2-3 compactors is challenging •Customers transport material offsite •Minimal impact on overflow, litter, illegal dumping Cost of Service Options & Costs 1. CARTS & SHARED DUMPSTERS 2. SHARED DUMPSTERS 3. SHARED COMPACTORS 4. CONCIERGE SERVICE ANNUAL COST $300,000 ANNUAL COST $276,000 ANNUAL COST $274,000 •Current system •Development of new rate structure •No impact on operational challenges •Removes carts on sidewalks and streets •Allows for 3-stream system in future •More dumpster locations are challenging… leasing/purchasing of private property •No impact on overflow, litter illegal dumping •All containers removed, space constraints eliminated •Prevents illegal dumping and overflow •Allows for 3-stream system •Convenient for businesses •Requires close coordination between businesses & City ANNUAL COST Current: $120,000 Future: $150,000 Page 11 of 97 Cost of Service: Downtown Solid Waste Services Scope of Work Approved May, 2019 Objective:Find all pricing inequities and propose method(s) for moving customers into the correct solid waste rate class 1.Raise revenue to $150,000 to cover cost of service 2.Determine pricing inequities 3.Adjust billing to cover cost of service without a rate increase Solid Waste Master Plan April, 2019 Because of cost and complexity of options presented, staff recommended, and Council concurred, to address the Cost of Service pricing inequities first. Page 12 of 97 Cost of Service: Process Development •Field Study: Initial review was a field study to determine which blocks had challenges and which ones were appropriately managing waste •Waste Audit: Determined volume of materials collected on included blocks •Property List: Acquired a list of all properties with their associated “Real Numeric Property ID” (R-NPID) from WCAD •Business List: Based on WCAD, Personal Numeric Business ID or P-NBID data, businesses were added and combined to each R-NPID property •Data Analysis: Each property or R-NPID was analyzed for cost of service. = R-NPID] Individual Business = P-NBID Page 13 of 97 11 Block Business Challenges Action Y/N 0 Courthouse None N 37 Bank of America None N 38 Burger University •Shared dumpsters •Collection costs Y 39 Galaxy Bakery None N 40 Jaiwai Thai, Gumbos, 600 Degrees •Shared dumpsters •Collection Costs •Overflow Y 41 Blue Corn, Mesquite Creek •Overflow •Shared dumpsters Y 50 Wildfire, Georgetown Palace None N 51 Roots, Thundercloud Subs •Carts on Streets Y 52 600 Degrees, Divine Treasure •Shared dumpsters •Overflow Y Cost of Service Initial Block Review Results Page 14 of 97 Cost of Service Summary Analysis Block Business Action 38 Burger University •Price Adjustments 40 Jaiwai Thai & Gumbos •Price Adjustments 41 Blue Corn •Move to shared dumpsters •Price Adjustments 51 Roots & Thundercloud Subs •Update solid waste ordinance to remove carts on sidewalks •Provide dumpster location options 52 600 Degrees •Provide dumpster location option Page 15 of 97 Cost of Service Billing Process Development 1. Cost of service per individual businesses was developed. Data varied based on availability but overall included: Waste audit data Business type Materials generated Hours of operation Comparison data 2. Costs per business were combined to provide an overall fee to each property based on the R-NPID. Page 16 of 97 Cost of Service Billing Process Recommendation Office Base Fee $54.18 Office Base Fee $54.18 Office Base Fee $54.18 John Smith’s Building Restaurant 8 cy landfill 3x per week = $433.30 4 cy recycler 1x per week = $102.54 $433.30 + $102.54 = $535.84 Total billed to property owner $54.18 * 3 + $535.84 = $698.84 Key Points 1.Process changes from billing businesses to billing property/building owner 2.Property owner (or representative) will decide how cost is shared among tenants 3.Rates only change if a significantly different type of business moves in or out Page 17 of 97 Cost of Service Consideration and Guidance 15 •Request guidance on “Cost of Service” billing process. •Request guidance on Solid Waste Ordinance update. Next Steps based on feedback: •Spring/Summer 2020: Public Engagement •Summer/Fall 2020: Implementation Page 18 of 97 Questions? 16Page 19 of 97 Page 20 of 97 City of Georgetown, Texas City Council Workshop Februa ry 25, 2020 S UBJEC T: P resentation and discussion regarding creating a vide o pro duction studio in the seco nd flo or o f the Georgetown Art Center -- Aly Van Dyke, Communications and P ublic Engagement Director; and Eric Lashley, Georgetown P ublic Library Directo r I T E M S UMMARY: The City of G e orgetown needs additional, large r video productio n space. The existing studio is a small conference roo m in the Counc il and Co urt building shared with our award-winning Teen Court pro gram. With the growth o f the City and increased need for video production space, sharing the ro om has contributed to challe nges fo r both programs. The Georgetown Art Center, 816 S. Main, has signific antly more space on its seco nd flo or. The City proposes using funding from the 1 % P ublic, Education, Government fee, which cable subscribers pay in accordance with State law, to make renovations to the second floor of the Art Cente r to add an additional video studio fo r City productions. The creation of a se c ond video studio will provide the additio nal space needed for our co mmunications team and will benefit Teen Court and our partnership with the Georgeto wn Art Center. F I NANC I AL IMPAC T: Fewer than $50,0 00 , from P EG fees S UBMI T T ED BY: Aly Van Dyke AT TAC HMENT S : Description Vid eo S tudio P res entatio n Page 21 of 97 Georgetown Video Studio Council Workshop Feb. 25, 2020 Page 22 of 97 Agenda PEG funds Current challenges Proposed solution Project timeline Page 23 of 97 PEG Fund Overview •What are they? •How can we spend the fund? •How much funding do we have? •What have we purchased before with this fund? Page 24 of 97 Past PEG Fund Projects •Council Chambers •Cameras •Tripod •Lights •Video effects •Slider •GoPro •Computers Page 25 of 97 Current Challenges •Space •Teen Court •Video Demands •Current space Page 26 of 97 Page 27 of 97 Proposed solution •Art Studio Space •Scope details •Uses & Partnerships •Budget •Current space Page 28 of 97 Page 29 of 97 Project Timeline •Feedback tonight •RFP completed end of March •Select contractor end of April •Construction complete end of Summer Page 30 of 97 Discussion/Direction QUESTIONS?ADDITIONAL DETAIL? Page 31 of 97 City of Georgetown, Texas City Council Workshop Februa ry 25, 2020 S UBJEC T: P resentation and discussion regarding the Electric Line Extension P olicy -- Danie l Bethapudi, General M anager of the Electric Utility I T E M S UMMARY: As a part of the e lectric utility restructuring, all cost recovery models are being evaluated and updated as needed. The Electric Line Extensio n P o licy has been evaluate d and identified for revision. With a growing utility it is vital to have effective , streamlined pro c e sse s in place to properly plan for and address the challenges of system growth. P ast policy did not co llect all costs prior to construc tion. The City often spent significant time and reso urces ahead of co nstruction. This sometimes made it difficult fo r the City to recoup these costs once construction began. The updated policy evaluates eac h job and collects all fees and infrastructure co sts ahead of co nstruction. The revised process wo rks well for both the City and developers as both are aware of the process and costs. The new electric line extension policy allows for a streamlined process by which gro wth pays for growth as it happe ns. F I NANC I AL IMPAC T: N O N E S UBMI T T ED BY: Daniel Bethapudi - General Manager, Electric U tility AT TAC HMENT S : Description G eo rgeto wn Elec tric C ap ital F und ing W hite P ap er Line Extens ion P olic y P res entation Page 32 of 97 Memorandum Economics | Strategy | Stakeholders | Sustainability www.newgenstrategies.net 225 Union Boulevard Suite 305 Lakewood, CO 80228 Phone: (720) 633-9514 To: Daniel N Bethapudi, General Manager – Electric; City of Georgetown, Texas From: Scott Burnham, Grant Rabon Date: February 17, 2020 Re: Balanced Capital Funding for the Electric Utility A well-managed municipal electric utility should have defined policies for its retail rate strategy, contributions in aid of construction (CIAC or collectively referred to as Line Extension Fees), and debt that are complementary, balanced, and in alignment with the overall goals and objectives of the city it serves. These policies need to be interrelated since capital projects must be funded from some combination of revenue from each of these funding sources. To the extent one of these three funding sources is underutilized, undue pressure is placed on the other funding sources. This can lead to suboptimal outcomes, such as equity issues between existing and future customers. The purpose of this document is to describe each of these three funding sources as they apply the City of Georgetown (City) and the Georgetown Electric Utility. CIAC A properly developed set of line extension policies will ensure new customers of the utility contribute sufficiently and appropriately to the cost of expanding the utility’s facilities, thereby avoiding the need to subsidize this cost from existing customers. The cost of expanding the electric utility’s facilities may include costs beyond just the cost of the service drop and meter. This may include upstream impacts, including resized distribution extensions or facilities, additional transmission capacity, and additional generation, as necessary. Whether all or a portion of the cost impacts are recovered from new customers through Line Extension Fees is a policy decision and should be balanced with projected new revenues. For example, the City could decide to subsidize the cost of extending facilities to serve new customers for economic development reasons. However, whatever portion of these costs is not recovered through Line Extension Fees must be funded through some combination of debt and rates (or existing cash reserves), either of which implies that some portion of the costs will be paid by existing customers. Such a decision has equity implications. For example, how much should existing customers pay to defray the cost of connecting new customers? Many communities opt to recover as much of the cost of expanding the Page 33 of 97 Memorandum February 17, 2020 Page 2 utility’s facilities to new customers through Line Extension Fees as is practical, minimizing the subsidy from existing rate payers. Debt Issues The capital structure of a municipal electric utility may vary significantly depending upon the philosophy, asset mix, and breadth of business ventures. Municipal electric utility debt is most often associated with the issuance of revenue bonds, which are pledged against the revenues of a utility or enterprise fund. The City should establish policies that support an optimal mix of new debt and cash funding for its capital projects. The City’s financial policies should consider the following objectives:  Ongoing routine preventive maintenance and basic renewals and replacements should be funded on a pay-as-you-go (i.e., cash) basis,  Capital projects should be financed through a combination of cash and debt with a ratio between 35% and 60% debt to capitalization being desirable,  The term of debt generally should not exceed the useful life of the asset, and  The City’s financial projections should adhere to existing and future debt covenants. If the Electric Utility opts to cash fund an excessive portion of its capital projects, it can contribute to misalignment of cost recovery and cost causation between rate classes over time (otherwise known as intergenerational inequity). This is because prior and current customers of the utility will pay (through retained earnings) for an asset that may have a useful life of 30 years (or more). The future customers that are receiving the beneficial use of the asset should be paying toward the cost of such an asset. The issuance of debt and resulting annual debt service is the most logical means to facilitate this recovery from all customers who benefit from the operation of such a long-lived asset. Credit rating agencies guidelines may also assist the City in determining appropriate levels of debt funding, as determined by its desired credit rating. For example, a 2014 Fitch Ratings report on public power indicated the median “A+” rated retail utility had an implied 40% debt to capitalization ratio. However, this may be greatly influenced by the mix of assets owned by the utility; those with significant generation assets will have greater degree of equity. This type of benchmarking could inform the City’s policies on the future issuance of debt. Regardless of the basis, the City should set a target or range of debt financing that is optimal for its objectives. Rate Strategy The Electric Utility’s rate strategy should complement the policies on CIAC and debt funding. Rate revenue is generally the largest source of revenue to a utility. Rate levels should be established that fully fund ongoing routine preventative maintenance, basic renewals and replacements, and the remaining portion of capital projects that is not funded through debt. Rate design should also address a number of other objectives as well, such as sufficient fixed cost recovery to ensure the financial stability of the utility, equitable recovery of costs from properly developed customer classes, and overall alignment of pricing signals with desired customers usage behavior (e.g., conservation). Page 34 of 97 Memorandum February 17, 2020 Page 3 Fixed costs generally compose the majority of costs for an electric utility. Ideally, rates would recover fixed costs through fixed rates (such as customer and demand charges). However, it is most common to recover some portion of electric fixed costs through variable rates (e.g., energy charges). This is especially true for customers that are not billed a demand charge (e.g., residential customers). However, this misalignment between cost causation and cost recovery results in the need to carefully design rates to ensure the financial stability of the utility under conditions of low energy use (e.g., increased net metering usage). Conclusion The City should establish policies for its Electric Utility to balance the three primary capital funding options to best achieve the objectives of the community. The policies on CIAC should sufficiently minimize the subsidy from existing customers to fund infrastructure to support customer growth. The policies on the issuance of debt should reflect the City’s financial objectives and its position on intergenerational equity. The policies on rates should, among other objectives, fully fund ongoing routine preventative maintenance, basic renewals and replacements, and the remaining portion of capital projects that is not funded through debt. Through an optimal combination of these three primary revenue sources available to the Electric Utilities, the City can help ensure a fair and equitable balance for operational and long-term investment needs. Page 35 of 97 Electric Line Extension Policy Updates Scott Burnham -NewGen Strategies Rex Woods P.E. -McCord Engineering Mike Westbrook -City of Georgetown Leticia Zavala -City of Georgetown Daniel N Bethapudi -City of Georgetown Page 36 of 97 •Line Extension Policy & Rates -Financial •History of Line Extension Policy @ City of Georgetown •Reason for the proposed Line Extension Policy changes •Objectives of the proposed Line Extension Policy changes •Recommended Line Extension Policy Changes •Other changes •Next Steps 2Page 37 of 97 Line Extension Policy & Rates •Three primary funding source options –Rate revenue –Debt issues –Line Extension Fees (CIAC) •Complementary •Balanced •Aligned with City policy 3Page 38 of 97 Line Extension Policy & Rates •Line Extension –Growth pays for growth. –Lack of certainty that growth pays for growth adds to rate pressure. •Debt Issue –Leverage debt reduces rate pressure. –Increases equity in cost recovery. •Rate Revenue –Ongoing routine maintenance. –Renewals and replacements. –Contribution to capital. 4Page 39 of 97 History of Electric Infrastructure Additions •Prior to January 2019 –How were the additions paid for? •Total costs split between the Developer and Electric Utility –Challenges •Inconsistent policy •January 2019: Sec. 13.04.095: Contribution in Aid of Construction (CIAC) Policy enacted. 5Page 40 of 97 Reason for Proposed Changes •As part of the electric utility restructuring, all cost recovery models are being evaluated. •Address the confusion associated with the electric infrastructure additions: –Process of requesting electric infrastructure additions –Costs for non-standard development –Payment of the costs for infrastructure additions 6Page 41 of 97 Reason for Proposed Changes (Contd.) •Opportunity to evaluate the entire “life cycle” of electric infrastructure additions. •Opportunity to identify City cost saving opportunities. •Opportunity to simplify the City’s process of electric infrastructure planning. 7Page 42 of 97 Objectives of the Proposed Changes •Clearly identify the processes to evaluate and plan for electric infrastructure additions to meet new growth. •Streamline the electric infrastructure planning process in order to avoid confusion about costs and design. •Better recovery of costs associated with electric infrastructure additions. 8Page 43 of 97 Objectives of the Proposed Changes (Contd.) •Address the shortcomings of the current CIAC policy’s inability to properly address different electric service requests. –Office Building vs Parking garage? –Lift stations –Small cell •Allow for planning for non-standard service requests. –Redundant feeders –Special equipment and service requirements 9Page 44 of 97 Objectives of the Proposed Changes (Contd.) •All infrastructure costs required/attributable to the service request will be paid by the requestor. –If not paid by the requestor the costs have to be recovered by the rate payers. •Growth pays for growth. •Collect the costs of electric infrastructure additions through the line extension fees upfront and leave minimal connection fees to home builder/owner. 10Page 45 of 97 Objectives of the Proposed Changes (Contd.) •Utilize improved service delivery standards based on industry best practices. •Utilize existing technology investments that reduce costs and increase the ease of doing business with the City. •Optimize Cash Flows. 11Page 46 of 97 Recommended Line Extension Policy Changes 1.Current CIAC policy renamed Line Extension policy. 2.Electric Utility Infrastructure Evaluation Fee. 3.Use of Residential Meter Pedestals as the Service Delivery Point on the front lot line. 4.Revise Line Extension Policy and update Fees based on updated cost analysis. 12Page 47 of 97 Electric Utility Infrastructure Evaluation Fee 2. Electric Utility Infrastructure Evaluation Fee –Electric Utility Infrastructure Engineering Evaluation Fee: $ 500 + engineer review fees @ $150/hr. –A preliminary cost estimate shall be provided based on the electric utility evaluation. –Consistent with Evaluation Fees associated with Water/Waste Water infrastructure planning. 13Page 48 of 97 Electric Utility Infrastructure Evaluation Fee (Contd.) •The preliminary cost estimate is meant to be for informational/planning purposes only. •Line Extension Fees (final cost estimate) is developed based on depth engineering based on the submitted plats and/or construction plans. -Line Extension Fees will be paid in full before the “Electric Services Availability” letter is issued. 14Page 49 of 97 Electric Utility Infrastructure Evaluation Fee (Contd.) •The Electric Utility will not order materials or schedule construction until the developer makes full payment based on the final cost estimate. –Some electric material could take up to 18 weeks for delivery after payment. Examples include: »Three-phase pad transformers »Switchgears »Concrete poles 15Page 50 of 97 Recommended Line Extension Policy Changes 3. Use of Residential Meter Pedestals as the Service Delivery Point on the front lot line. –Continued use of AMI (Advanced Metering Infrastructure) meters with remote connect capability. 16Page 51 of 97 Issues with the current process •Current Service Delivery Point is typically on the side of the house. –This causes significant variation in length of service. –Challenges in running service from the transformer to the meter on the side of the house. •Service installation delayed by other construction activity. 17Page 52 of 97 Issues with the current process (Contd.) •The home builder/electrician has to request temporary power (T-pole) to build the home and has to wait on City crews to power up the T-pole. •The home builder/electrician has to request removal of temporary power. •Temporary power poles are often found by our crews on the ground causing a safety issue. 18Page 53 of 97 Issues with the current process (Contd.) •With the current set up, City crews (2 linemen + equipment) have to make, an average of, 3-5 additional trips between transformer installation, T-pole installation, T-pole removal, and permanent power. 19Page 54 of 97 Proposed Residential Meter Pedestal Benefits •With the residential meter pedestal design, the electric utility is agnostic to the type of residential service request as the service length is standardized. –Lot sizes. –Number of lots. •Eliminates the need for separate temporary power as the meter pedestals have GCFI enabled temporary power option. 20Page 55 of 97 Proposed Residential Meter Pedestal Benefits (Contd.) •Eliminates the need for T-pole and related safety issues. •Consistent with local utility practices. •Use of AMI meters and meter pedestals result in cost savings: -Fewer truck rolls -Reduces design costs -Simpler installation 21Page 56 of 97 Proposed Residential Meter Pedestal Benefits (Contd.) 22 New Costs Cost Savings Meter Pedestal $1000 $1500* AMI Meter $50 (remote connect functionality) * Savings based on eliminating 3 truck rolls of a 2 lineman crew. Page 57 of 97 Meter Pedestals 23Page 58 of 97 Meter Pedestals 24Page 59 of 97 Recommended Line Extension Policy Changes 4. Revise Line Extension Policy and update Fees 25Page 60 of 97 Revise Line Extension Policy and update Fees •At the direction of Georgetown Electric, McCord Engineering developed new residential line extension fees based on: –New design standards. (meter pedestal/AMI Meter) –Updated material and labor costs. –Historical job database of City of Georgetown to come up with cost per lot recommendations. 26Page 61 of 97 Revise Line Extension Policy and update Fees (contd.) •Process by which McCord Engineering developed the proposed updated fees: –Applied all items listed on the previous slide to the following historical projects: •Multifamily: Live Oak Apartments, Wolf Ranch Apartments, and Carroll at Rivery Ranch. •Townhome/Duplex: Brownstone at Summit West and River Bend at NW Subdivision. •Residential: Sun City Neighborhoods 67, 69, 70, and 71. 27Page 62 of 97 Revise Line Extension Policy and update Fees (contd.) •Consolidate the residential service request categories for residential underground services from 3 to 1: –Four lots or less –Average width up to 70 ft –Average width greater than 70ft. •Cost per platted lot developed for subdivisions and other residential service requests. 28Page 63 of 97 Revise Line Extension Policy and update Fees (contd.) •Cost per unit developed for multi- family/apartments/duplex/townhomes. •In addition to cost per lot/unit, applicable additional design requirement costs shall be estimated and collected upfront. –The extension and/or upgrade of three-phase electric power lines to serve new developments (commercial or residential). 29Page 64 of 97 Revise Line Extension Policy and update Fees (contd.) –The relocation and/or upgrade of any existing underground or overhead electric facilities. –Installations that require temporary power. –System protection devices necessitated by the developer/service request and/or required to meet the utility design guidelines and NESC. 30Page 65 of 97 Revise Line Extension Policy and update Fees (contd.) –Specialized power quality/power factor devices required by the developer/service request and/or required to meet the utility design guidelines and NESC. –Dual feeds required by the developer/service request. –Costs associated with serving club houses, pumping loads, pools, signage, mail kiosks etc. 31Page 66 of 97 Revise Line Extension Policy and update Fees (contd.) •Consistent with the current practices, the complete installation along with any associated cost for necessary civil infrastructure, such as, but not limited to, material and installation of conduit and transformer and pedestal pads, is not included in this fee and is an obligation of the builder/developer. 32Page 67 of 97 Revise Line Extension Policy and update Fees (contd.) •Meter Connect fees are significantly lowered for all service categories. •The line extension fees for all other service requests including commercial developments and non-standard requests will be based on the job requirements. 33Page 68 of 97 Current Vs. Proposed Current Proposed Service Type CIAC Connect Fees Total Line Extension Fee Connect Fees Total Residential Subdivision –4 Lots or Less $3000 $800 $3800 $2600 $200 $2800 Residential Subdivision – more than 4 Lots –Less than 70ft (width) $1500 $800 $2300 Residential Subdivision – more than 4 Lots –greater than 70ft (width) $2000 $800 $2800 34Page 69 of 97 Current Vs. Proposed Current Proposed Service Type CIAC Connect Fees Total Line Extension Fee Connect Fees Total Residential Multi-Family Development- Apartment $800 $800 $1600 $800 $200 $1000 Residential Multi-Family Development- Townhome/ Duplex $800 $800 $1600 $2400 $200 $2600 35Page 70 of 97 Other Proposed Changes: •Clean up changes –Low income electric discount •30% discount applies to customer charge ($24.80) –Nomenclature changes to rate classes •“Industrial” changes to “Commercial & Industrial (C&I)” –kW load between 500 and 2,000 •“Large Industrial” changes to “Large Commercial & Industrial (Large C&I)” –kW load exceeds 2,000 36Page 71 of 97 Next Steps •Questions and Feedback •3/10/2020: Adopt the proposed Electric Line Extension Policy •4/28/20 –Council Legislative Agenda –1st Reading of Electric Rate Ordinance •5/12/20 –Council Legislative Agenda –2nd Reading of Electric Rate Ordinance 37Page 72 of 97 City of Georgetown, Texas City Council Workshop Februa ry 25, 2020 S UBJEC T: P resentation and discussion regarding the propose d Budget Calendar for the F Y202 1 Annual Budget and Five Year C IP -- P aul Diaz, Budge t Manager I T E M S UMMARY: Discussion and dire c tion relating to the F Y2021 budget development calendar. F I NANC I AL IMPAC T: none S UBMI T T ED BY: P aul Diaz, Budge t Manager AT TAC HMENT S : Description P resentatio n Page 73 of 97 FY2021 Annual Budget FY2021 Proposed Budget Calendar Page 74 of 97 FY2021 Annual Budget FY2021 Proposed Budget Calendar •March 2 –CIP Kick Off •March 23 –Base Budget/Request Kick Off •April 6 –CIP Coordination Meeting •April 17 –Base Budgets are due •May 5 –Departmental meetings with City Manager •May/June –CIP Review & Special Topics Presentations with Council Page 75 of 97 FY2021 Annual Budget FY2021 Proposed Budget Calendar •July 21 and July 22 Budget Workshops *SPECIAL MEETING* •Aug 11: Normal Meeting: City Manager’s Proposed Budget; set max tax rate, & set dates for Public Hearings •Sep 9: Normal Meeting: public hearings, 1st reading of the budget, 1st reading of the tax rate •Sep. 22: Normal Meeting: 2nd reading of the budget, 2nd reading of the tax rate Page 76 of 97 FY2021 Annual Budget Questions? Page 77 of 97 City of Georgetown, Texas City Council Workshop Februa ry 25, 2020 S UBJEC T: P resentation, update , and discussion on the 2018 Eco nomic Development Strategic P lan -- Michaela Dollar, Economic Development D irector I T E M S UMMARY: Update on the implementation of the 2018 Economic Development Strategic P lan, adopted by council in J anuary 2 01 8. F I NANC I AL IMPAC T: N/A S UBMI T T ED BY: M ichaela Dollar, Ec ono mic Development Director AT TAC HMENT S : Description P resentatio n 2019 Annual R ep o rt Page 78 of 97 Economic Development STRATEGIC PLAN UPDATE FEBRUARY 25, 2020 Page 79 of 97 Background Fast-paced growth residentially and commercially Prior studies: •Retail Market Study (2016) •Workforce Analysis (2017) •Target Industry Analysis (2017) Time for a strategic plan Adopted by council January 2018 Page 80 of 97 Community Involvement Georgetown City Council Georgetown Economic Development Corporation Georgetown Main Street Advisory Board Georgetown City Manager’s Office Georgetown Department Directors Georgetown Economic Development Staff Georgetown Chamber of Commerce Board Georgetown Development Alliance Georgetown Active Retiree Focus Group Page 81 of 97 Economic Development Department Kim McAuliffe Downtown Development Manager Jennifer Schoenradt Marketing Coordinator Conchita Gusman Business Retention Manager Michaela Dollar Economic Development Director Page 82 of 97 Summary City Council Vision Georgetown: A caring community honoring our past and innovating for the future Economic Development Mission To purposefully support a business friendly environment where companies can and want to grow Our Strategy Overarching Goal: Tell our story to a broader local audience. Strategic Goal 3: Diversify workforce development and recruitment initiatives. Strategic Goal 1: Support existing businesses and industries. Strategic Goal 4: Encourage speculative development. Strategic Goal 2: Enhance targeted recruitment of identified industries. Page 83 of 97 Strategic Goal 1 Support existing businesses and industries Completed 83 in-person business visits with major employers, primary employers, and small businesses in Georgetown. Partnered with the Georgetown Chamber to create the Georgetown Healthcare Alliance and grow the Georgetown Manufacturers Alliance. Held four Breakfast Bites meetings with record high attendance. Held the 3rd Annual Business Appreciation Lunch & Bowl event. Launched the Georgetown Works social media campaign to highlight local employers. Partnered with the Georgetown Chamber and Downtown Georgetown Association to host a Small Business Saturday event that included 35 small businesses in Georgetown. Page 84 of 97 Strategic Goal 2 Enhance targeted recruitment of identified industries Twelve economic development project wins, worth an estimated $75 million in capital investment. Increased active project activity by over 30%. Utilized the Swirl, Red Poppy Festival, and Blazin’ Beer Crawl for signature prospect and broker events. Attended the international BIO trade show with the Governor’s Office and THBI. Page 85 of 97 Strategic Goal 3 Diversify workforce development and recruitment initiatives. Partnered with the Georgetown Independent School District and Georgetown Chamber of Commerce on Manufacturers Day and the high school career fair. Worked to connect the Georgetown Independent School District with Georgetown’s major employers and local residential realtors through the Twelve@12 program. Partnered with Rural Area Capital Workforce Solutions and the Georgetown Chamber to host the second annual Veterans and Military Spouses job fair. Continued involvement in Georgetown Young Professionals and sponsored the Austin Young Chamber Lead Summit to promote Georgetown as a place to work. Page 86 of 97 Strategic Goal 4 Encourage speculative development. Approved an infrastructure incentive agreement for Sedro Crossing, the City’s largest professional office development at 170,000 square feet. Continued working with large property owners to market property for investment and encourage development of “shovel- ready” sites. Page 87 of 97 Over-Arching Objective Tell our story to a broader local audience. Held the 3rd Annual Economic Development Symposium with keynote speaker Revathi Greenwood, Americas Head of Research for Cushman & Wakefield. Continued growing the Twelve@12 program by meeting with major employers, commercial developers, downtown property owners, and residential realtors. Participated in Opportunity Austin recruitment trips and WilCoEDP trade shows including SIOR, ICSC, and BIOMEDevice. Updated marketing materials including the community profile, aerial map, and retail recruitment documents. Worked to maintain the “Small Town Charm” identified in the 2030 Comp Plan by awarding $70,000 in Façade & Sign Grant funds from the Main Street Program and raised over $69,000 through annual fundraising efforts. Page 88 of 97 New in 2020 Small Business Resource program in partnership with the Georgetown Chamber Semi-annual industry tours with economic development stakeholders Direct recruitment campaigns for targeted industries Creation of an executive relocation portal Georgetown Manufacturers Workforce Grant initiative Launch all new website content Development of a quarterly economic development newsletter Host the WilCo EDP inaugural site selector tour. Page 89 of 97 2019 Top Projects by Target Industry Page 90 of 97 Business Retention Program 36 Assistance Requests 83 Business Retention Visits 209 Touches Page 91 of 97 Downtown Development Page 92 of 97 Downtown Development In Downtown Reinvestment$11.5M Awarded for Façade & Sign Grants$70K Annual Georgetown Swirl had 550 attendees10th Attendees at the inaugural Blazin’ Beer Crawl500+ Page 93 of 97 Active Projects Page 94 of 97 Economic Development STRATEGIC PLAN UPDATE FEBRUARY 25, 2020 Page 95 of 97 TOP PROJECTS IN EACH TARGET INDUSTRY TEXAS SPEED WBW SEDRO CROSSING COSTCO Advanced Manufactuer & Speculative Development 100 Jobs 200,000 Square Feet $11,500,000 Investment Professional Services Engineering HQ 40 Jobs 20,000 Square Feet $3,000,000 Investment Professional Office Speculative Development 170,000 Square Feet $9,000,000 Investment Retail Development 235 Jobs 150,000 Square Feet $24,000,000 Investment ACTIVE PROJECTS DOWNTOWN DEVELOPMENT DEVEL O P M E N T CO O L W A R M HOT 1817 23 19 30.5% increase in 2019 BUSINESS RETENTION PROGRAM 83 209 36 $11.5M $70K 500+10th 10 NEW BUSINESSES In Downtown Reinvestment Annual Georgetown Swirl had 550 attendees Awarded for Façade & Sign Grants Attendees at the inagural Blazin’ Beer Crawl Retail Restaurants & Cafes Bars & Tasting Rooms 4 4 2 ECONOMIC DEVELOPMENT2019 ANNUAL REPORT Page 96 of 97 STRATEGIC PLAN HIGHLIGHTS Strategic Goal 1 | Support existing businesses and industries. • Completed 83 in-person business visits with major employers, primary employers, and small businesses. • Partnered with the Georgetown Chamber to create the Georgetown Healthcare Alliance and grow the Georgetown Manufacturers Alliance. • Launched the Georgetown Works social media campaign to highlight local employers. • Twelve economic development project wins, worth an estimated $75 million in capital investment. • Increased active project activity by over 30%. • Utilized the Swirl, Red Poppy Festival, and Blazin’ Beer Crawl for signature prospect and broker events. • Partnered with the Georgetown Independent School District and Georgetown Chamber of Commerce on Manufacturers Day and the high school career fair. • Worked to connect the Georgetown Independent School District with Georgetown’s major employers and local residential realtors through the Twelve@12 program. • Partnered with Rural Area Capital Workforce Solutions and the Georgetown Chamber to host the second annual Veterans and Military Spouses job fair. Strategic Goal 3 | Diversify workforce development and recruitment initiatives. Strategic Goal 4 | Encourage speculative development. Strategic Goal 2 | Enhance targeted recruitment of identified industries. • Approved an infrastructure incentive agreement for Sedro Crossing, the City’s largest professional office development at 170,000 square feet. • Continued working with large property owners to market property for investment and encourage development of “shovel-ready” sites. • Held the 3rd Annual Economic Development Symposium with keynote speaker Revathi Greenwood, Americas Head of Research for Cushman & Wakefield • Continued growing the Twelve@12 program by meeting with major employers, commercial developers, downtown property owners, and residential realtors. • Participated in Opportunity Austin recruitment trips and WilCo EDP trade shows including SIOR, ICSC, and BIOMEDevice. • Updated marketing materials including the aerial map and retail recruitment documents. • Worked to maintain the “Small Town Charm” identified in the 2030 Comp Plan by awarding $70,000 in Façade & Sign Grant funds from the Main Street Program and raised over $69,000 through annual fundraising efforts. Overarching Goal | Tell our story to a broader local audience. Page 97 of 97