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Home My WebLink AboutAgenda CC 06.26.2018 WorkshopNotice of M eeting of the Governing B ody of the City of Georgetown, Texas June 2 6, 2 0 1 8 The Ge orgetown City Council will meet on June 26 , 2018 at 3:00 PM at Co unc il Chambers - 101 East 7th Street The City o f Georgetown is committed to co mpliance with the Americans with Disabilities Act (ADA). If you re quire assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or ac c ommo datio ns will be provided upo n request. P lease contact the City Se c retary's Office, at least three (3 ) days prio r to the scheduled meeting date, at (512) 930- 3652 o r City Hall at 113 East 8th Street fo r additional information; TTY use rs ro ute through Relay Texas at 7 11. REVISE D AGENDA Policy De ve lopme nt/Re vie w Workshop - A Prese ntation and update on Downto wn West construction and naming pro cess -- Eric Johnson, CIP Manager B Prese ntation and discussion on the Facilities Capital Improvement P lan (CIP ) -- Eric Johnson, CIP Manager C Prese ntation and discussion regarding the 20 18 Electric Rate Study, Water, Wastewater and Re use Rate Study and Electric Syste m Fees Study -- Mike Babin, Deputy General Manager of Utilities D Prese ntation and discussion on the pro posed 20 19 Fiscal Year Capital Impro vement Plans for Public Works and Georgetown Utility Systems -- Wesley Wright, P.E., Systems Engineering Dire c to r E Prese ntation and update regarding Water and Wastewater Impact Fe e s -- Glenn W. Dishong, Utility Director Exe cutive Se ssion In compliance with the Open Meetings Ac t, Chapter 551, Government Co de , Verno n's Texas Codes, Annotate d, the items listed below will be discussed in closed session and are subject to action in the regular se ssio n. F Se c . 55 1.0 71 : Consul tati on wi th Atto rney Advic e from attorney about pending o r contemplated litigation and othe r matters on which the attorney has a duty to advise the City Co uncil, including agenda items Se c . 55 1.0 72 : Del i berati ons about Real Pro perty - Authorization of Negotiations fo r the Do wntown Building Sale Se c . 55 1:0 74 : Personnel Matte r s City Manager, City Attorney, City Se c retary and Municipal Judge: Consideration of the appointment, employment, evaluatio n, reassignment, duties, discipline, o r dismissal Se c . 55 1.0 86 : Certai n P ubl i c P ow e r Uti l i ti es: Competi ti ve Matte r s Page 1 of 165 - Ele ctric Rates & Fees - CIP Electric Adjournme nt Ce rtificate of Posting I, Shelley No wling, City S ecretary for the C ity of Geo rgeto wn, Texas , do hereby c ertify that this Notic e o f Meeting was posted at City Hall, 113 E. 8th Street, a p lac e read ily acc es s ib le to the general pub lic at all times , o n the _____ day of _________________, 2018, at __________, and remained so p o s ted for at leas t 72 c o ntinuo us ho urs p receding the s cheduled time of s aid meeting. __________________________________ Shelley No wling, City S ecretary Page 2 of 165 City of Georgetown, Texas City Council Workshop June 26, 2018 SUBJECT: P resentation and update on Downtown West constructio n and naming process -- Eric Johnson, CIP Manager ITEM SUMMARY: This is an update re garding the Downto wn West Civic Center proje c t. Specifically, Co uncil will be given an update on the progress of Co nstruction fo r the renovation of the 19 87 Library and the Georgetown Communication and Technology (GCAT) buildings. In addition, staff would like to present the results o f the naming process of the area comprised of four munic ipal buildings that include the Do wntown West Projec t, Light & Waterworks Building and Library. FINANCIAL IMPACT: The contract with the architect, The Lawrence Group was approve on June 9, 2015. The contract with the construc tion manager, Balfour Beatty, was approved o n April 12, 2016. The Guaranteed Maximum Price was appro ved November 1 4, 2017. SUBMITTED BY: Eric Johnson, CIP Manager ATTACHMENT S: Description Do wntown Wes t Up d ate Presentatio n Page 3 of 165 June 26, 2018 Downtown West Construction Update/ Naming Process Page 4 of 165 Background •November 28, 2017 -Ground Breaking •December 14, 2017 –Notice to Proceed •January 10, 2018 –Building Permits Issued •March 13, 2018 –Latest update City of GeorgetownPage 5 of 165 City of Georgetown City Hall Page 6 of 165 City of Georgetown City Council Chambers Page 7 of 165 City of Georgetown Drone Footage Drone Footage Page 8 of 165 Naming Process •Downtown West –Project name, not a location •Four City Buildings –City Hall/Council Chambers/Light & Waterworks/Library City of GeorgetownPage 9 of 165 Names •City Hall –City Hall •Council and Court Building –Municipal Court/Council Chambers •Light and Water Works Building –Historic Light and Water Works •Georgetown City Center –Campus City of GeorgetownPage 10 of 165 Next Steps •Continue Construction –Exterior walls to “Dry-In” the buildings –Interior Finish-out –Landscaping •Additional Contracts to Council –Late Summer –Audio Visual/Furniture/Data Cabling •Complete Construction –December 2018 •Grand Opening –Early 2019 City of GeorgetownPage 11 of 165 City of Georgetown, Texas City Council Workshop June 26, 2018 SUBJECT: P resentation and discussio n on the Facilities Capital Impro vement Plan (CIP) -- Eric Johnson, CIP Manager ITEM SUMMARY: Overview of curre nt and budgeted CIP projects fo r Citywide Facilities. FINANCIAL IMPACT: N/A SUBMITTED BY: Eric Johnson, CIP Manager ATTACHMENT S: Description F Y 19 Fac ility CIP Budget Presentatio n Page 12 of 165 FY2019 Annual Budget FacilitiesCapital Improvement Plan(CIP) City Council June 26, 2018 Page 13 of 165 FY2019 Annual Budget 2019 Capital Improvement Plan •Downtown •Facilities –2019 •Facilities –5 year plan Page 14 of 165 FY2019 Annual Budget Downtown •Downtown Parking Expansion Phase II •$350,000 –2019 •$250,000 –2018 -Phase I Parking Expansion Completed Parking Page 15 of 165 FY2019 Annual Budget Downtown •Downtown Parking Garage •$5,000,000 –2019 (Partially Funded through TIRZ) •Further discussion at Budget Workshop Current Feasibility and Schematic Design Page 16 of 165 FY2019 Annual Budget Downtown •Bluehole Parking Expansion and Sidewalk •$100,000•Completed in conjunction with Stormwater Pond Project Page 17 of 165 FY2019 Annual Budget Facilities -2019 •Fire Station No. 7 •$6,250,000 -Construction•Fire Station No. 1&3 Remodel •$30,000 -Study•Visitors Center •Plan dependent on sale of building Fire Station No. 7 Page 18 of 165 FY2019 Annual Budget Proposed 5 Year CIP FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Beyond 5 Years Animal Services Facilities Efficiency Study Bluehole Parking Expansion & Sidewalk $100,000 Downtown Parking Expansion $350,000 Downtown Parking Garage $5,000,000 Festival Space/Public Space -DTW $475,000 4,900,000 Fire Station 1&3 - Remodel $30,000 $200,000 $1,000,000 Fire Station 4-Reloc.$6,300,000 Fire Station 7 $6,250,000 Fire Station 8 $6,300,000Page 19 of 165 FY2019 Annual Budget Proposed 5 Year CIP FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Beyond 5 Years Fuel Station-Reloc.$400,000 GMC Remodel Facilities Efficiency Study Mixed Use Parking Garage $12,000,000 Public Facilities Master Plan $150,000 PSOTC Phase II $500,000 $4,400,000 Signature Gateway $100,000 CVB Visitors Center Dependent on sale of building TOTAL $11,730,000 $850,000 $1,000,000 $975,000 $9,300,000 $24,600,000 Page 20 of 165 City of Georgetown, Texas City Council Workshop June 26, 2018 SUBJECT: P resentation and discussio n regarding the 2018 Electric Rate Study, Water, Wastewater and Reuse Rate Study and Electric System Fees Study -- Mike Babin, Deputy General Manager of Utilities ITEM SUMMARY: This item is a re vie w o f the recommendations concerning utility rates and fees as pro posed by the GUS board. Connect fees and line extension policies were last updated in 1997 Electric Rates were updated January 1s of 2013, tho ugh the PCA rate has fluctuated since then Water Rates were updated January 1st of 2014 Wastewater rate s we re updated January 1st of 2016 Rates are required to be reviewed e very 3 years by financial policy, with the exception being the 5 year grace period on Water Rates as part of the CTSUD merger. FINANCIAL IMPACT: TBD SUBMITTED BY: Christopher Fo ste r, Manager of Resource Planning and Integration ATTACHMENT S: Description 06262018_Elec tric _Rates 06262018_WSS _Rates 06262018 - Elec tric S ys tem F ee S tud y Page 21 of 165 Mark Beauchamp, CPA, CMA, MBA President Utility Financial Solutions 616-393-9722 1 Page 22 of 165 Discussion Review Electric Departments Projections Alternative One –6% Plan Alternative Two –8% Plan (GUS Board Recommended) Alternative Three –4.6% Plan (City Manager Budget) Rate Design Alternatives under each scenario Continue Rate Reviews every 3 years 2 Page 23 of 165 Projection without Rate Change Original 3 Fiscal Year Projected Rate Adjustments Debt Coverage Ratio Fixed Coverage Ratio Assumed 26% Power Costs Fixed Projected Expenses Projected Revenues Adjusted Operating Income Target Operating Income Projected Cash Balances Recommended Minimum Cash 2019 0.0%1.49 1.13 69,461,759$ 69,128,803$ (332,956)$ 5,390,637$ 9,179,647$ 16,515,233$ 2020 0.0%1.46 1.13 70,616,566$ 70,161,027 (455,538)$ 5,846,286 5,610,463$ 17,841,349 2021 0.0%1.49 1.14 73,125,229$ 72,342,660 (782,570)$ 6,133,256 1,433,111$ 18,398,448 2022 0.0%1.47 1.13 75,265,676$ 74,182,304 (1,083,372)$ 6,399,043 (1,561,537)$ 18,560,866 2023 0.0%1.52 1.14 76,515,247$ 75,182,494 (1,332,753)$ 6,633,391 (4,373,244)$ 18,985,861 Page 24 of 165 Alternative One -Projected Rate Change Revised to include $1.0 Million annually in Developer Contributions 4 Fiscal Scenario Projected Rate Adjustments Capital Improvements Plan Debt Coverage Ratio Fixed Coverage Ratio Assumed 26% Power Costs Fixed Adjusted Operating Income Target Operating Income Projected Cash Balances Recommended Minimum Cash 2019 6.0%9,512,000$ 2.50 1.41 3,136,867$ 5,390,637$ 13,649,470$ 16,515,233$ 2020 0.0%9,488,000 2.44 1.41 3,099,617$ 5,846,286 14,657,790$ 17,841,349 2021 0.0%10,788,000 2.49 1.41 2,861,708$ 6,133,256 15,169,952$ 18,398,448 2022 2.0%8,803,000 2.76 1.49 4,194,697$ 6,399,043 18,522,058$ 18,560,866 2023 0.0%8,913,000 2.84 1.52 4,083,010$ 6,633,391 22,218,724$ 18,985,861 Page 25 of 165 Alternative Two –GUS Board Recommendation Revised to include $1.0 Million annually in Developer Contributions 5 Fiscal Scenario Projected Rate Adjustments Capital Improvements Plan Debt Coverage Ratio Fixed Coverage Ratio Assumed 26% Power Costs Fixed Adjusted Operating Income Target Operating Income Projected Cash Balances Recommended Minimum Cash 2019 8.0%9,512,000$ 2.81 1.50 4,486,210$ 5,390,637$ 14,998,814$ 16,515,233$ 2020 0.0%9,488,000 2.74 1.49 4,482,144$ 5,846,286 17,396,408$ 17,841,349 2021 0.0%10,788,000 2.80 1.50 4,278,894$ 6,133,256 19,339,449$ 18,398,448 2022 0.0%8,803,000 2.74 1.49 4,107,492$ 6,399,043 22,625,197$ 18,560,866 2023 0.0%8,913,000 2.82 1.51 3,993,530$ 6,633,391 26,252,898$ 18,985,861 Page 26 of 165 Alternative Three –City Manager Budget Revised to include $1.0 Million annually in Developer Contributions 6 Fiscal Scenario Projected Rate Adjustments Capital Improvements Plan Debt Coverage Ratio Fixed Coverage Ratio Assumed 26% Power Costs Fixed Adjusted Operating Income Target Operating Income Projected Cash Balances Recommended Minimum Cash 2019 4.6%9,512,000$ 2.28 1.35 2,165,172$ 5,390,637$ 12,677,775$ 16,515,233$ 2020 0.0%9,488,000 2.23 1.35 2,104,025$ 5,846,286 12,685,646$ 17,841,349 2021 4.0%10,788,000 2.90 1.53 4,804,770$ 6,133,256 15,131,010$ 18,398,448 2022 0.0%8,803,000 2.85 1.52 4,646,813$ 6,399,043 18,935,037$ 18,560,866 2023 0.0%8,913,000 2.93 1.54 4,546,921$ 6,633,391 23,097,678$ 18,985,861 Page 27 of 165 Minimum Cash 7 Description Projected 2019 Projected 2020 Projected 2021 Projected 2022 Projected 2023 Minimum Cash Reserve Allocation Operation & Maintenance Less Depreciation Expense 12.3%12.3%12.3%12.3%12.3% Purchase Power Expense 9.3%9.3%9.3%9.3%9.3% Historical Rate Base 1%1%1%1%1% Current Portion of Debt Service Payment 83%83%83%83%83% Next Years Capital Improvements - Net of bond proceeds 0%0%0%0%0% Five Year Capital Improvements - Net of bond proceeds 20%20%20%20%20% % Plant Depreciated 26%27%27%28%29% Calculated Minimum Cash Level Operation & Maintenance Less Depreciation Expense 2,247,827$ 2,304,023$ 2,361,623$ 2,420,664$ 2,481,180$ Purchase Power Expense 3,949,117 3,983,932 4,123,228 4,227,783 4,251,017 Historical Rate Base 1,901,186 1,996,066 2,103,946 2,191,976 2,281,106 Current Portion of Debt Service Reserve 3,858,064 3,886,728 4,077,611 4,082,963 4,191,437 Next Years Capital Improvements - Net of bond proceeds - - - - - Five Year Capital Improvements - Net of bond proceeds 4,559,040 5,670,600 5,732,040 5,637,480 5,781,120 Minimum Cash Reserve Levels 16,515,233$ 17,841,349$ 18,398,448$ 18,560,866$ 18,985,861$ Projected Cash Reserves 9,179,647$ 5,610,463$ 1,433,111$ (1,561,537)$ (4,373,244)$ Page 28 of 165 Rate Design Alternatives 8 Customer Class Projected Percentage Change Scenario 1 Projected Percentage Change Scenario 2 Projected Percentage Change Scenario 3 Residential 6.32%9.02%4.33% Small General 6.17%8.37%2.21% School 3.50%4.79%0.57% Municipal Water Service 72.82%72.82%72.82% Municipal Service 10.90%10.90%10.90% Lighting 6.32%8.67%0.00% Large General Service 3.50%4.80%2.91% Industrial 3.50%4.80%3.50% Large Industrial 3.50%4.80%3.50% Totals 6.10%8.10%4.56% Page 29 of 165 Residential Rate Alternatives 9 Rates Current Scenario 1 Scenario 2 Scenario 3 Monthly Facilities Charge: All Customers 20.00$ 27.00$ 30.00$ 24.80$ Energy Charge: All Energy 0.09390$ 0.09390$ 0.09390$ 0.09390$ Power Cost Adjustment: All Energy 0.00189$ 0.00190$ 0.00190$ 0.00190$ Revenue from Rate 31,822,473$ 33,833,171$ 34,692,809$ 33,201,012$ Change from Current - 6.3%9.0%4.3% Rates Current Alt 1 Alt 2 Alt 3 Monthly Charge $20.00 $27.00 $30.00 $24.80 Energy Charge $0.09390 $0.09390 $0.09390 $0.09390 Transmission Adj. $0.0019 $0.0019 $0.0019 $0.0019 Revenue From Rate $31,822,473 $33,833,171 $34,692,809 $33,201,012 %Change -6.3%9.0%4.3% Page 30 of 165 Small Commercial Rate Designs 10 Rates Current Scenario 1 Scenario 2 Scenario 3 Monthly Facilities Charge: All Customers 45.00$ 59.00$ 64.00$ 50.00$ Energy Charge: All Energy 0.08830$ 0.08830$ 0.08830$ 0.08830$ Power Cost Adjustment: All Energy 0.00189$ 0.00190$ 0.00190$ 0.00190$ Revenue from Rate 6,432,873$ 6,829,835$ 6,971,495$ 6,574,847$ Change from Current - 6.2%8.4%2.2% Average Usage Monthly Customers Current Average Bill Average % Change Monthly Change 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 Change by Monthly kWh Usage (%) Scenario 1 Scenario 2 Scenario 3 Rates Current Alt 1 Alt 2 Alt 3 Monthly Charge $45.00 $59.00 $64.00 $50.00 Energy Charge $0.08830 $0.08830 $0.08830 $0.08830 Transmission Adj.$0.0019 $0.0019 $0.0019 $0.0019 Revenue From Rate $6,432,873 $6,829,835 $6,971,495 $6,574,847 %Change -6.2%8.4%2.2% Page 31 of 165 LGS Rate Designs 11 Rates Current Scenario 1 Scenario 2 Scenario 3 Monthly Facilities Charge: Monthly Charge 20.00$ 200.00$ 200.00$ 175.00$ Energy Charge: All Energy 0.07130$ 0.06353$ 0.06479$ 0.06353$ Demand Charge All Demand 8.45$ 11.00$ 11.00$ 11.00$ Power Cost Adjustment: All Energy 0.00189$ 0.00190$ 0.00190$ 0.00190$ Revenue from Rate 13,663,557$ 14,141,782$ 14,319,572$ 14,061,682$ Change from Current -$ 3.5%4.8%2.9% -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 30%35%40%45%50%55%60%65%70%75% Change by Load Factor based on Class Average Demand (%) Scenario 1 Scenario 2 Scenario 3 Rates Current Alt 1 Alt 2 Alt 3 Monthly Charge $20.00 $200.00 $200.00 $175.00 Energy Charge $0.07130 $0.06353 $0.06479 $0.06353 Transmission Adj.$0.0019 $0.0019 $0.0019 $0.0019 Demand Charge $8.45 $11.00 $11.00 $11.00 Revenue From Rate $13,663,557 $14,141,782 $14,319,572 $14,061,682 %Change -3.5%4.8%2.9% Page 32 of 165 Industrial Rate Designs 12 Rates Current Scenario 1 Scenario 2 Scenario 3 Monthly Facilities Charge: Monthly Charge 250.00$ 350.00$ 350.00$ 350.00$ Energy Charge: All Energy 0.06440$ 0.05458$ 0.05572$ 0.05458$ Demand Charge All Demand 10.00$ 16.00$ 16.00$ 16.00$ Power Cost Adjustment: All Energy 0.00189$ 0.00190$ 0.00190$ 0.00190$ Revenue from Rate 6,917,062$ 7,159,160$ 7,249,164$ 7,159,160$ Change from Current -$ 3.5%4.8%3.5% Scenario 2 Scenario 3 Scenario 4 -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 50%55%60%65%70%75%80%85%90%95% Change by Load Factor based on Class Average Demand (%) Scenario 1 Scenario 2 Scenario 3 Rates Current Alt 1 Alt 2 Alt 3 Monthly Charge $250.00 $350.00 $350.00 $350.00 Energy Charge $0.06440 $0.05458 $0.05572 $0.05458 Transmission Adj.$0.0019 $0.0019 $0.0019 $0.0019 Demand Charge $10.00 $16.00 $16.00 $16.00 Revenue From Rate $6,917,062 $7,159,160 $7,249,164 $7,159,160 %Change -3.5%4.8%3.5% Page 33 of 165 Large Industrial Rate Designs 13 Rates Current Scenario 1 Scenario 2 Scenario 3 Monthly Facilities Charge: Monthly Charge 350.00$ 525.00$ 525.00$ 510.00$ Energy Charge: All Energy 0.06610$ 0.05127$ 0.05230$ 0.05127$ Demand Charge All Demand 7.50$ 19.25$ 19.25$ 19.25$ Power Cost Adjustment: All Energy 0.00189$ 0.00190$ 0.00190$ 0.00190$ Revenue from Rate 3,839,710$ 3,974,100$ 4,024,062$ 3,973,920$ Change from Current -$ 3.5%4.8%3.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 80%82%84%86%88%90%92%94%96%98% Change by Load Factor based on Class Average Demand (%) Scenario 1 Scenario 2 Scenario 3 Rates Current Alt 1 Alt 2 Alt 3 Monthly Charge $350.00 $525.00 $525.00 $510.00 Energy Charge $0.06610 $0.05127 $0.05230 $0.05127 Transmission Adj.$0.0019 $0.0019 $0.0019 $0.0019 Demand Charge $7.50 $19.25 $19.25 $19.25 Revenue From Rate $3,839,710 $3,974,100 $4,024,062 $3,973,920 %Change -3.5%4.8%3.5% Page 34 of 165 Next Steps Discussion continued with City Manager’s proposed Budget Ordinance Readings in August Effective January 1st Rates Reviewed every 3 years 14 Page 35 of 165 Georgetown City Council Workshop June 26, 2018 Georgetown Water, Wastewater and Reuse Rate Study Update Page 36 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Agenda •Key Issues •Fund Performance Under Current and Proposed Rates •Draft Rate Adjustments •Discussion and Next Steps 2 Page 37 of 165 Current Fund Performance Page 38 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Key Issues •Descending Financial Performance –Rates will not keep up with costs without adjustments •Wholesale Supplier Cost Increases •Rapid Growth, Capital Projects and New Debt Service –$195M in Capital Project needs between FY 2019 and FY 2023 4 Page 39 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC CIP Funding Forecast Water & Wastewater Combined 5 $195M funded*: 46.7% Cash & Impact Fees 53.3% Debt *Avg funding % over 5 years 2019 2020 2021 2022 2023 Debt $36.35 $26.39 $29.99 $13.26 $42.03 Impact Fees $14.25 $13.55 $16.54 $15.82 $16.36 Cash $1.935 $0.070 $0.46 $0.47 $0.31 Total CIP $52.53 $40.02 $47.00 $29.55 $58.70 $52.53 $40.02 $47.00 $29.55 $58.70 $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 Co s t ( M i l l i o n $ ) CIP Funding Page 40 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Combined Revenue Performance – Current Rates 6 $35 $40 $45 $50 $55 $60 2019 2020 2021 2022 2023 Co s t ( M i l l i o n $ ) Fiscal Year Over/Under Recovery ($)Revenues Under Current Rates Revenue Requirement Page 41 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Combined Revenue Performance – Proposed Rates 7 $35 $40 $45 $50 $55 $60 $65 2019 2020 2021 2022 2023 Co s t ( M i l l i o n $ ) Fiscal Year Combined Utility Revenue Performance Under Proposed Rates Over/Under Recovery ($)Revenues Under Proposed Rates Revenue Requirement Page 42 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Combined Fund Performance (Ending Balance) – Current Rates 8 2019 2020 2021 2022 2023 Available Fund Balance $24.66 $20.19 $9.08 $1.81 $(5.52) Contingency $6.00 $6.00 $6.00 $6.00 $- 90 Day Reserve Target $8.18 $8.47 $8.76 $8.99 $9.33 $(10.00) $(5.00) $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 Ba l a n c e ( M i l l i o n s $ ) Page 43 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Combined Fund Performance (Ending Balance) – Proposed Rates 9 2019 2020 2021 2022 2023 Available Fund Balance $23.68 $18.37 $14.38 $11.46 $11.30 Contingency $6.00 $6.00 $6.00 $6.00 $6.00 Reserve Target (90 days)$8.19 $8.48 $8.80 $9.05 $9.42 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 Ba l a n c e ( M i l l i o n s $ ) Fund Performance Under Proposed Rates Page 44 of 165 Overview of Recommendations Page 45 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Revenue and Rate-Setting Objectives 1.Revenue sufficiency 2.Minimize rate shock to customers by phasing in rates and utilizing combined fund performance 3.Potential rate design alternatives 11 Page 46 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Proposed Rate Increases •Water –Rate increases adjust both minimum and volumetric rates across all customer classes by the % above –Proposed Rate Design changes effective FY 2019 yields an estimated 17% increase in rate revenues •Irrigation Block •Base Rate multipliers •Possibly offset with behavior changes •Wastewater –Rate increases adjust both minimum and volumetric rates across all customer classes by the % above 12 2019 2020 2021 2022 2023 Water --13.00%-15.38% Wastewater 4.40%-12.50%-16.67% Page 47 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Water Proposed Fixed Rate Design Meter Equivalencies 13 Meter Size Current Proposed Charge Turbine Factors 5/8”$15.50 $15.50 0.674 3/4”$23.00 $23.00 1.000 1”$38.50 $38.50 1.674 1 ½”$76.50 $76.50 3.326 2”$122.50 $153.34 6.667 3”$245.50 $368.00 16.000 4”$383.50 $644.00 28.000 6”$766.50 $1,410.00 61.304 8”$1226.50 $2,450.00 106.522 *Residential Volumetric Rates remain unchanged* Page 48 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Water Proposed Volumetric Rate Design Commercial (less than 3”) 14 Small Commercial (<2” Meter)Current Proposed (FY 2019) 0 –300,000 gallons $2.40 $2.40 300,001 + gallons $2.40 $6.50 Large Commercial (2” Meter)Current Proposed (FY 2019) 0 –600,000 gallons $2.40 $2.40 600,001 + gallons $2.40 $6.50 Large Commercial (3” Meter)Current Proposed (FY 2019) 0 –900,000 gallons $2.40 $2.40 900,001 + gallons $2.40 $6.50 Page 49 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Water Proposed Volumetric Rate Design Commercial (4”, 6”, 8”) 15 Commercial (4” Meter)Current Proposed (FY 2019) 0 –4,000,000 gallons $2.40 $2.40 4,000,001 + gallons $2.40 $6.50 Commercial (6” Meter)Current Proposed (FY 2019) 0 –6,000,000 gallons $2.40 $2.40 6,000,001 + gallons $2.40 $6.50 **Potential Industrial class for one customer Commercial (8” Meter)Current Proposed (FY 2019) 0 –8,000,000 gallons $2.40 $2.40 8,000,001 + gallons $2.40 $6.50 Industrial**Current Proposed (FY 2019) 0+ gallons $2.40 $2.40 Page 50 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Water Proposed Volumetric Rate Design Commercial Irrigation Meters 16 Commercial Irrigation Current Proposed (FY 2019) 0 –500,000 gallons $4.00 $4.00 500,001 + gallons $4.00 $8.50 Reuse Irrigation Current Proposed (FY 2019) 0+1.05 1.25 Page 51 of 165 17 17 Page 52 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Water Proposed Volumetric Rate Design Parks/Restaurants/Fire Hydrants 18 Municipal Interruptible (Parks)Current Proposed (FY 2019) 0+ gallons $2.40 $2.40 *Parks department has multiple agreements with commercial customers to subsidize their water use. Expected impact to Parks from commercial rate changes is $7K -$8K per year Restaurants Current Proposed (FY 2019) 0+ gallons $2.40 $2.40 Fire Hydrants Current Proposed (FY 2019) 0+ gallons $2.40 $8.50 Page 53 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Wastewater Proposed Fixed Rates 19 Current 2019 2020 2021 2022 2023 Residential $30.65 $32.00 $32.00 $36.00 $36.00 $42.00 Small Commercial $30.65 $32.00 $32.00 $36.00 $36.00 $42.00 *No Volumetric rates on these customers Page 54 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Wastewater Proposed Fixed and Volumetric Rates 20 Current 2019 2020 2021 2022 2023 Commercial Fixed $46.35 $48.39 $48.39 $54.44 $54.44 $63.51 Volumetric $2.35 $2.75 $2.75 $3.10 $3.10 $3.61 Large Commercial Fixed $82.30 $85.92 $85.92 $96.67 $96.67 $112.78 Volumetric $2.35 $2.75 $2.75 $3.10 $3.10 $3.61 High Strength Commercial Fixed $46.35 $48.39 $48.39 $54.44 $54.44 $63.51 Volumetric $3.70 $4.46 $4.46 $5.02 $5.02 $5.86 Multi- Family Fixed $110.10 $114.95 $114.95 $129.32 $129.32 $150.87 Volumetric $2.35 $2.75 $2.75 $3.10 $3.10 $3.61 Evaporation Cooler Fixed $46.35 $48.39 $48.39 $54.44 $54.44 $63.51 Volumetric $2.35 $2.75 $2.75 $3.10 $3.10 $3.61 Page 55 of 165 Next Steps, Bill and Rate Design Impact, and Rate Comparisons Page 56 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Customer Bill Impact -Residential 22 Residential Current 2019 2020 2021 2022 2023 Water (3/4”)$40.50 $40.50 $40.50 $45.77 $45.77 $52.81 Wastewater $30.65 $32.00 $32.00 $36.00 $36.00 $42.00 Total $71.15 $72.50 $72.50 $81.77 $81.77 $94.81 Variance($)$1.35 -$9.27 -$13.04 Variance (%)1.90%-12.78%-15.95% Residential Current 2019 2020 2021 2022 2023 Water (3/4”)$64.50 $64.50 $64.50 $72.89 $72.89 $84.10 Wastewater $30.65 $32.00 $32.00 $36.00 $36.00 $42.00 Total $95.15 $96.50 $96.50 $108.89 $108.89 $126.10 Variance($)$1.35 -$12.39 -$17.21 Variance (%)1.42%-12.83%-15.81% *10,000 Gallons *20,000 Gallons Page 57 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Total Residential Monthly Bill Comparison (10,000 gallons) * Source: Bill calculated based on lowest meter size obtained from each entity’s website as of 05/07/2018 23 $71.15 $72.50 $88.11 $93.80 $100.43 $101.32 $122.59 $134.47 $162.96 $177.90 $177.93 40.50 40.50 40.94 55.80 46.81 52.32 78.24 91.49 67.86 76.88 107.08 30.65 32.00 47.17 38.00 53.62 49.00 44.35 42.98 95.10 101.02 70.85 Georgetown (Current) Georgetown (Proposed) Round Rock Pflugerville Cedar Park Temple Liberty Hill Leander Taylor Austin Hutto Water Wastewater Page 58 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Total Residential Monthly Bill Comparison (20,000 gallons) 24 $95.15 $96.50 $150.01 $163.30 $178.32 $188.28 $190.89 $212.01 $274.56 $316.73 $423.94 64.50 64.50 68.94 109.80 84.32 94.76 146.54 140.63 112.36 195.28 222.02 30.65 32.00 81.07 53.50 94.00 93.52 44.35 71.38 162.20 121.45 201.92 Georgetown… Georgetown… Round Rock Pflugerville Temple Cedar Park Liberty Hill Leander Taylor Hutto Austin Water Wastewater * Source: Bill calculated based on lowest meter size obtained from each entity’s website as of 05/07/2018 Page 59 of 165 NEWGEN STRATEGIES AND SOLUTIONS, LLC Next Steps •Need to Increase Revenues –Seeking Council direction on rate changes to be effective January 1, 2019 •Council will review proposed rate changes as part of the proposed budget, and during ordinance readings •Rates Studies continued every 3 years 25 Page 60 of 165 Questions and Discussion Page 61 of 165 Presented to City Council June 26, 2018 City of Georgetown, Texas Electric System Fee Study Related to Development and Growth Georgetown Utility Systems Prepared by McCord Engineering, Inc. Texas Registered Engineering Firm F-2664 916 Southwest Parkway East College Station, Texas 77840 Phone (979) 764-8356 Fax (979) 764-9644 Page 62 of 165 Purpose and Scope of Study •Review the electric system is current Contribution-In-Aid of Construction (CIAC) and Connect Fee Policies and Synchronize with the new rate structure –The Current Policies were implemented in 1997 –Currently rate payers subsidize a small percentage of the growth since the City covers portions of CIAC and New Account Connect fees –Current fee calculation methodology is cumbersome and inconsistent •Recommend New Process which is Designed to: –Eliminate rate payer subsidies for development CIAC and connect fees –Streamline the process in determining New Development fees by simplifying the Connect Fee and CIAC calculation methodologies •Currently takes weeks, new method is done same day for faster financing of projects •Discuss Special District contracts and how they impact this study 2Page 63 of 165 Current Connect Fees 3 Size of Service Current Connect Fee / Meter Residential and Commercial Single-Phase 0-200 Amps $400 200-400 Amps $600 401+ Amps Engineered Cost Commercial Three-Phase 0-200 Amps $1,550 200-400 Amps $2,500 401+ Amps Engineered Cost Established in 1997 to recover the cost of material for the transformer and metering equipment. Page 64 of 165 Proposed Connect Fee Methodology 4 •Single-Phase Residential and Commercial –Increase the connect fee $/meter to cover the current cost of the Customer’s portion of the single-phase transformer, their meter and AMI installation –Put in an adder for any New Development requesting an additional Distributive Generation (DG) meter –Keep the “engineered cost” for a single-phase new connect over 400 amps since this scenario is very rare. Reword to “cost” •Three-Phase Commercial –Convert the connect fee from a $/meter and engineering cost to a $/square foot –Put in an adder for any New Development requesting a DG. “Cost” shown for large development due to the unknown financial impact of large DG installations. Page 65 of 165 Proposed Connect Fees Proposed 5 Size of Service Connect Fee / Meter Distributive Generation Adder / Meter Residential and Commercial Single-Phase 0-400 Amps $800 $300 401+Amps Cost Cost Square Footage Flat Fee - Above Base Square Footage Connect Fee Adder/Square Foot -Above Base Square Footage Distributive Generation Adder / Meter Commercial Three- Phase 0-1,500 $7,000 $0.00 $850 1,501-6,000 $7,000 $1.12 $850 6,001-12,000 $12,040 $0.05 $850 12,001-50,000 $12,340 $0.03 $850 50,000+$13,480 $0.03 Cost Residential Multi-Family Development Connect Fee / Meter Distributive Generation Adder/Meter Townhome/Apartment/Condominium $550 $300 Page 66 of 165 Current CIAC Methodology •Established in 1997 to recover ACTUAL COST of engineering, primary wire, and partial labor to install the primary wire •Overhead service line extension –Developer pays any cost in excess of $80,000 •Underground service line extension –Non-competitive service territory •GUS provides all required electric equipment •Developer provides civil infrastructure and pays a CIAC to GUS for the primary cable and engineering –Competitive service territory •GUS matched the competition on the CIAC 6Page 67 of 165 Proposed CIAC Methodology •Developer continues to provide all civil infrastructure •Developer is required to pay the following CIAC: –Residential Developer pays a $/lot based on the average lot width –Commercial Developer pays a $/square foot based on which square footage category they fall into •New CIAC methodology is intended to average out where the Developer covers all costs of new development 7Page 68 of 165 Proposed CIAC Fees •Underground single-phase new service residential 8 Residential subdivision New CIAC Fee / Lot Four Lots or less $3,000 Residential subdivision greater than four lots (average lot width) New CIAC Fee / Lot Less than or equal to 70’$1,500 Greater than 70’$2,000 Residential Multi-Family Development New CIAC Fee / Door Townhome/Apartment/Condominium $800 Page 69 of 165 Proposed CIAC Fees (Cont.) 9 Square Footage Flat Fee – Above Base Square Footage New CIAC Fee Adder/Square Foot -Above Base Square Footage Commercial Development 0-1,500 $9,000 $0.00 1,501-6,000 $9,000 $2.20 6,001-12,000 $18,900 $1.10 12,001-50,000 $25,500 $0.20 50,001+$33,100 $0.05 •Any commercial without square footage will be dealt with independently. •Any redesign costs will be billed directly to the Developer. Page 70 of 165 Special Districts (ex: MUD, PID, SUD, other taxing entities) •Special District contracts are stand alone commitments where up-front cost are paid by the developer as normal CIAC and connect fees and are then reimbursed back to the developer through tax rate. 10Page 71 of 165 Next Steps •Discussion to be reviewed as part of the City Manager’s proposed budget •Ordinance Readings in August •Implement October 1st, 2018 11Page 72 of 165 City of Georgetown, Texas City Council Workshop June 26, 2018 SUBJECT: P resentation and discussio n on the proposed 2019 Fiscal Year Capital Improvement Plans for Public Works and Georgetown Utility Systems -- Wesley Wright, P.E., Systems Engineering Director ITEM SUMMARY: This presentatio n will focus on the proposed FY19 c apital expenditures for Airport, the 20 15 Ro ad Bond Program, Sidewalks, Solid Waste, Sto rmwater, Water, and Wastewater. FINANCIAL IMPACT: P lease see attached presentations and summaries. SUBMITTED BY: Wesley Wright ATTACHMENT S: Description GTAB CIP Pac ket F Y19 GTAB CIP Pres entatio n GUS CIP Pac ket FY19 GUS CIP Pres entation Page 73 of 165 Page 74 of 165 Page 75 of 165 Page 76 of 165 Page 77 of 165 Page 78 of 165 Page 79 of 165 Page 80 of 165 Page 81 of 165 Page 82 of 165 Page 83 of 165 Page 84 of 165 Page 85 of 165 Page 86 of 165 Page 87 of 165 Page 88 of 165 Page 89 of 165 Page 90 of 165 Page 91 of 165 Page 92 of 165 Page 93 of 165 Page 94 of 165 Page 95 of 165 Page 96 of 165 Page 97 of 165 Page 98 of 165 Page 99 of 165 Page 100 of 165 Page 101 of 165 Page 102 of 165 Page 103 of 165 Page 104 of 165 Page 105 of 165 FY2019 Annual Budget City Council June 26, 2018 Page 106 of 165 FY2019 Annual Budget 2019 Capital Improvement Plan •Airport •2015 Road Bond •Sidewalks •Solid Waste •Stormwater Page 107 of 165 FY2019 Annual Budget Airport •Rate Study -$30,000 •Pavement Maint -$15,000 •Street Maint -$35,000 •Wildlife Management -$35,000 Page 108 of 165 FY2019 Annual Budget Airport •Hangar Maint -$75,000 Page 109 of 165 FY2019 Annual Budget Airport •Runway Rehab •$500,000 •10% match Page 110 of 165 FY2019 Annual Budget Airport -5 Year CIP Page 111 of 165 FY2019 Annual Budget 2015 Road Bond •Intersection Pool •Williams & Lakeway •$1,000,000 •Corridor Study •Turn Lanes Page 112 of 165 FY2019 Annual Budget 2015 Road Bond •Leander Road •Norwood to SW Bypass •$2,000,000 Page 113 of 165 FY2019 Annual Budget 2015 Road Bond •NB Frontage Road •$150,000 •Austin Avenue, south of Lakeway•Southeast Inner Loop •$1,200,000 •I-35 to Southwestern Blvd •Design only •Southwestern Blvd •$1,550,000 •Expansion to 4 lanes •Design only Page 114 of 165 FY2019 Annual Budget 2015 Road Bond -5 Year CIP Page 115 of 165 FY2019 Annual Budget Sidewalks •Rock Street (6th-9th) •$250,000 •Old Town Southeast •$1,500,000 •Partial funding via CDBG Grant Page 116 of 165 FY2019 Annual Budget Sidewalks –5 Year CIP Page 117 of 165 FY2019 Annual Budget Solid Waste •Currently updating Master Plan •Projecting: •New Transfer Station •$800,000 (FY19) •$7,630,000 (FY20) •Will finalize as Master Plan is completed by end of 2018. Page 118 of 165 FY2019 Annual Budget Stormwater •18th & Hutto -$50,000 •2nd Street WQ Pond -$450,000 •Curb and Gutter -$500,000 •Infrastructure/Operations -$200,000 •Sweeper/Vac -truck Disposal -$100,000 Page 119 of 165 FY2019 Annual Budget Stormwater –5 Year CIP Page 120 of 165 FY2019 Annual Budget Street Maintenance •Street Maintenance •Estimated $3,200,000 sales tax revenue •Estimated $800,000 General Fund revenue •Mix of Hot-in-Place Recycling and High Performance Pavement Seals •Final PCI study results due late summer •Design Task Order/Street Selection for FY19 anticipated this fall. Page 121 of 165 FY2019 Annual Budget City Council June 26, 2018 Page 122 of 165 Page 123 of 165 Page 124 of 165 Page 125 of 165 Page 126 of 165 Page 127 of 165 Page 128 of 165 Page 129 of 165 Page 130 of 165 Page 131 of 165 Page 132 of 165 Page 133 of 165 Page 134 of 165 Page 135 of 165 Page 136 of 165 Page 137 of 165 Page 138 of 165 Page 139 of 165 Page 140 of 165 FY2019 Annual Budget City Council June 26, 2018 Page 141 of 165 FY2019 Annual Budget 2019 Capital Improvement Plan •Water •Wastewater •Irrigation (none) •Electric (Executive Session) Page 142 of 165 FY2019 Annual Budget Water •DB Wood Road 24” Water •$3,100,000 •Dedicated transmission to serve Pastor PS (Western District)•Lake WTP Intake Rehab •$13,450,000 •Additional filtration due to increased intake capacity at plant•Misc Line Upgrades •$250,000 •As needed in the Western District•Rabbit Hill 16” Water •$1,050,000 •Feed to the new Rabbit Hill EST Page 143 of 165 FY2019 Annual Budget Water •Radio Replacement •$153,670 •Operational needs•Daniels/Reagan 30” Water •$4,250,000 •Additional transmission for the Braun 3MG EST (Western District)•Round Rock Supply Line •$1,100,000 •Transmission line to supply treated water from Round Rock along Sam Bass•South Lake WTP •$5,000,000 •Design and Permitting for new plant (TCEQ & USACOE) Page 144 of 165 FY2019 Annual Budget Water •Tank Rehab •$480,000 •Daniels Mountain 750k gal tank demo Page 145 of 165 FY2019 Annual Budget Water –5 Year CIP Page 146 of 165 FY2019 Annual Budget Wastewater •EARZ •$2,000,000 •Continuation of TCEQ required maintenance program •Lift Station Upgrades •$550,000 •As needed for existing stations •SGWWTP Sludge Thickener •$1,150,000 •Complete rehab in conjunction with forthcoming belt press project Page 147 of 165 FY2019 Annual Budget Wastewater –5 Year CIP Page 148 of 165 FY2019 Annual Budget City Council June 26, 2018 Page 149 of 165 City of Georgetown, Texas City Council Workshop June 26, 2018 SUBJECT: P resentation and update regarding Water and Wastewater Impact Fees -- Glenn W. Dishong, Utility Director ITEM SUMMARY: Chapter 395 of the Texas Administrative Code requires the update of an Impact Fee Study every five years. Council direction has require d staff to update the Impact Fe e Study every three years. The last study was conducted in 2015. The 2018 Impact Fe e Study has been completed by staff and co nsultant (Raftelis). The study has been reviewed by the Impact Fee Review Committee and the GUS Advisory Bo ard, with both entities approving the study, re c ommending ne w maximum fee calculatio ns, and reco mmending the amount of the Impact Fees fo r the three ye ar period starting on October 1, 2018 . FINANCIAL IMPACT: Impact Fees paid to the City in combination with wate r and wastewater rates maintain appro priate funding for the Wate r and Wastewater Utility. SUBMITTED BY: Glenn W Dishong ATTACHMENT S: Description 06262018_Imp ac t F ee_Wo rksho p Page 150 of 165 Page 151 of 165 • • • • Page 152 of 165 • • • Page 153 of 165 • • Page 154 of 165 • • Page 155 of 165 • • • • • Page 156 of 165 Page 157 of 165 Page 158 of 165 • • • Max Fee City Wide $10,138 Max Fee South Fork $11,371 Page 159 of 165 Utility Impact Fee Water $6,921 Wastewater $3,115 Total Proposed Fee $10,036 Total Current Fee $10,036 Citywide Impact Fee Recommendation Utility Impact Fee Water $6,921 Wastewater $4,348 Total Proposed Fee $11,269 Total Current Fee $11,491 South/Middle Fork San Gabriel Impact Fee Recommendation Page 160 of 165 Last City/Utility Updated Water Wastewater Total Water Wastewater Total Water Wastewater Total Manville WSC 2008 2,800$ N/A 2,800$ Brushy Creek MUD 2008 2,095$ 1,804$ 3,899$ 2,095$ 1,804$ 3,899$ 100%100%100% Cedar Park 2007 2,250$ 2,000$ 4,250$ Hutto 2013 3,625$ 2,128$ 5,753$ 3,625$ 2,128$ 5,753$ 100%100%100% San Marcos 2014 2,285$ 3,506$ 5,791$ 2,285$ 3,506$ 5,791$ 100%100%100% Round Rock 2016 4,025$ 2,099$ 6,124$ 4,025$ 2,099$ 6,124$ 100%100%100% Pflugerville 2014 4,241$ 2,725$ 6,966$ 4,241$ 2,725$ 6,966$ 100%100%100% Leander 2017 4,309$ 2,820$ 7,129$ 4,309$ 2,820$ 7,129$ 100%100%100% Austin 2014 5,400$ 2,200$ 7,600$ 5,415$ 2,284$ 7,699$ 100%96%99% Current Georgetown 2017 7,039$ 2,997$ 10,036$ 7,039$ 2,997$ 10,036$ 100%100%100% New Max Georgetown 2018 7,023$ 3,115$ 10,138$ Current Georgetown-South Fork 2017 7,039$ 4,452$ 11,491$ 7,039$ 4,452$ 11,491$ 100%100%100% New Max Georgetown-South Fork 2018 7,023$ 4,348$ 11,371$ West Travis County PUA 2014 7,476$ 11,644$ 19,120$ 9,968$ 15,525$ 25,493$ 75%75%75% TBD TBD Adopted Impact Fees Maximum Impact Fee Adopted Impact Fee as % of Max Not recorded Not recorded Page 161 of 165 • • • • Page 162 of 165 Page 163 of 165 Page 164 of 165 City of Georgetown, Texas City Council Workshop June 26, 2018 SUBJECT: Sec. 551.071: Consul tati on w i th Attorney Advice from attorney abo ut pending or co ntemplated litigation and o ther matters on which the attorney has a duty to advise the City Council, including agenda items Sec. 551.072: De l i berati o ns about Real P roperty - Authorization o f Negotiations for the Downtown Building Sale Sec. 551:074: Personnel Matters City Manager, City Attorney, City Secretary and Municipal Judge: Consideration of the appointment, employme nt, evaluation, reassignment, duties, discipline, or dismissal Sec. 551.086: Ce r tai n P ubl i c Power Uti l i ti es: Co mpeti ti ve Matters - Electric Rates & Fees - CIP Electric ITEM SUMMARY: FINANCIAL IMPACT: NA SUBMITTED BY: Page 165 of 165