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HomeMy WebLinkAboutMIN 08.25.2020 CC-WNotice of Meeting of the Governing Body of the City of Georgetown, Texas Tuesday, August 25, 2020 The Georgetown City Council will meet on Tuesday, August 25, 2020 at 3:00 PM at Teleconference The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please 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 Jr. Street, Georgetown, TX 78626 for additional information; TTY users route through Relay Texas at 711. Mayor Ross called the meeting to order at 3:01 p.m. The following Council Members were in attendance: Mayor Dale Ross; Mary Calixtro, Council Member District 1; Mike Triggs, Council Member District 3; Steve Fought, Council Member District 4; Kevin Pitts, Council Member District 5; and Rachael Jonrowe, Council Member District 6; and Tommy Gonzalez, Council Member District. Council District 2 is vacant. All Council Members present via videoconferencing and a roll call was performed. Policy Development/Review Workshop — Call to order at 3:00 PM A. Presentation and discussion regarding cost of service water rate study and related policy -- Glenn Dishong, Water Utilities Director and Matthew Garrett, NewGen Strategies and Solutions Dishong presented and stated that based on the City's Fiscal and Budgetary Policy a rate study will be conducted every 3 years to review rate methodology and ensure revenues will meet future needs. He added that all enterprise rates will be based on standardized cost of service methodologies and conservation goals and the last rate study was in 2018. Dishong stated that working capital reserves should be 25% or ninety (90) days of operating expenses with net debt service and long-term water contract costs and the Bond Coverage Ratio is 1.5 times coverage of self -supported debt. He noted that for equity the City shall make every effort to maintain equity in its revenue system; i.e., the City should seek to minimize or eliminate all forms of subsidization between entities, funds, services, utilities, and customer classes, and ensure an on -going return on investment for the City. Dishong said that Water Rates recognize at least 75% of the fixed cost of service, including debt payments and return on investment (ROI) costs, within the monthly base charge determined by meter size and volumetric charge will recognize the balance of fixed costs not included in the base rate, plus all variable costs associated with procuring and treating water. He continued that Wastewater Rates are fixed for all residential customers based on the cost of providing services, and commercial customer rates are fixed and volumetric depending on size and specifications of each commercial customer. Dishong noted that the 2018 Water Rate Study had key issues identified including descending financial performance with rates that will not keep up with costs without adjustments, and wholesale supplier cost increases due to rapid growth, capital projects and new debt service and there $195 million in Capital Project needs between FY 2019 and FY 2023. He reviewed the 2018 Combined Revenue Performance — Current Rates as shown here: $60 $55 $50 0 c $45 u $40 $35 1 2019 2020 2021 2022 2023 Fiscal Year — Over/Under Recovery ($) Revenues Under Current Rates —Revenue Requirement 1 Dishong reviewed the 2018 recommendations that include revenue sufficiency, minimizing rate shock to customers by phasing rates, and potential rate design alternatives. He added that the 2018 implementation included: no change in water rates to residential customers and residential water rates have not changed since 2013; increased some base rates for larger meters; established rate tiers for non-residential; and increased wastewater rates. Matthew Garrett, NewGen Strategies and Solutions presented and reviewed the Project Team and study resources. He stated that for the study methodology, in April 2020, the Project Team was tasked by the City of Georgetown to conduct a comprehensive water and wastewater utility cost of service rate study, and in simplest terms, determine cost projections and evaluate rate sufficiency to generate necessary revenues. Garrett explained the FY 2020 Study Goals and Objectives which are: Fiscal Policy compliance; revenue sufficiency; conservation; and equitable cost of service. He noted that the cost of a service study includes an analysis to equitably allocate the revenue requirements to the various customer classes of service to the utility and that cost differences exist between the types of customers served based on facility requirements and usage characteristics. Garrett explained the following future considerations: postponements to FY 2021 due to timing and data limitations; cash- needs/utility basis hybrid revenue requirement approach to determine outside City rate differential; and Wastewater Cost of Service rates specific to Biological Oxygen Demand (BOD) and Total Suspended Solids (TSS). He then reviewed the draft study results and explained the key drivers for FY2021 and beyond: residential customer growth including 2,800 annual water accounts and 1,300 annual wastewater accounts; long-term capital needs of approximately $192.24 million in water/wastewater capital needs for FY 2021 through FY 2025 with $97.01 million debt funded, $16.78 million cash funded, and $78.45 million impact fee funded; and new program operations and maintenance for future costs associated with growth. Garrett then reviewed the long-term capital funding forecast as follows: S60.0 - 550.0 $40.0 $30.0 $20.0 $10.0 FY 2021 FY 2022 FY 2021 ■ Debt $15.4 $36.3 $17.7 ■ Cash $3.7 $3.0 $5.8 Impart Fees $10.8 $15.4 $14.4 Total $29.9 $54.7 $37.9 He explained the Revenue Requirement Forecast as follows: 5%O.itO 560.00 c 540.00� L $30.00 5 J 0.00 Y $10.00 c 2020 2021 2022 MWA%lowrtivt 510.77 $13.98 514.42 e Rodeo 50.45 I $0.46 $0.46 R41'.Plo, 531,31 ! 534.44 $37.86 Tr-i.i $42.53 $48.88 5112.73 Garrett explained the Cost of Service for Water as follows: FY 2024 FY 202S $13.5 $14.0 $3.2 $1.2 $28.2 $9.6 WA $24.8 2023 2024 2025 519.74 517.61 516.29 50.42 $0.39 $0.40 $39.04 541.30 $43.76 $H9.20 $H9.3U SWA-11 -- — — -- — I •r ven>Qe Volume Qj I a t 9 ■ — ■ ■ ■ ra m Average Volume .5 _` Z FcQQ ak Mouth Demand Alaw a, E a G Peak Dey Demand C L� ■ 0O ■ EO ■ ■ A tags vtalutt+e m jl �+ v > •O0 Distribution utra capacity P II.Ont�Gar Reserve Requirements_ illBeak Gay Total Revenue Requirement �) custn,ner servlcc } I Customer Meter Read'ing Equivalent Acu I t customr, Billing Cost classlfitatiort -Under Recovery - Over Recovery Garrett explained the FY2021 cost of service: peaking ratios represent how consistently customer classes use water with peak month demand and average month demand with a higher peaking ratio reflects greater variability; and general guidelines of a peaking ratio greater than 2.0 less consistent system users (ex: residential and irrigation customers) and a peaking ratio less than 2.0 more consistent users (ex: commercial, industrial customers) as show below. Inside and Outside City Residential (incl Builder) 2.081 41,450 Small Commercial 1.39 1,013 Large Commercial 1.261 274 Government 2.061 158 Irrigation 2.11 634 Total System 1.98 43,529 Garrett explained the FY2021 Cost of Service Revenue Requirement Allocation for residential and government customer classes currently paying less than class cost of service with residential estimated at $2.34 million or 8.3% increase in residential revenues to meet revenue requirement in FY 2021, and government estimated at $0.06 million or 8.2% increase in government revenues to meet revenue requirement in FY 2021 as seen below. Inside/Outside City Residential (incl Builder) 2.08 $ 28.22 $ 25.88 $ (2.34) (8.3%) Small Commercial 1.39 I 0.89 0.98 0.09 10.1% Large Commercial 1.26 2.10 2.37 0.27 12.9°% Government 2.06 0.74 0.68 (0.06) (8.2%) Irrigation 2.11 2.49 2.80 0.31 12.6% Total System 2.98 $ 34.44 $ 32.71 $ (1.73) (5.0%) Garrett noted the Water Base Rates Current Rates: 518" Meter* $15.50 $18.50 314" Meter* 23.00 27.50 1 " Meter* 38.50 46.00 1 112" Meter* 76.50 91.50 2" Meter 153.50 183.50 3" Meter 368.00 440.00 4" Meter 644.00 770.00 6" Meter 1,140.00 1,686.00 8" Meter 2,450.00 2,929.50 Garrett noted the Water Residential Volumetric Rates Current Rates adding that no adjustments to Residential Volumetric Water rates have been made since 2014: 0-10,000 gallons $ 1.75 10,001- 20,000 gallons 2.40 20,001- 40,000 gallons 4.00 40,001- 60,000 gallons 6.50 60,001+ gallons 8.50 Garrett explained the Water Non -Residential Volumetric Rates Current Rates as follows: Customer.. Small Commercial <2" $2.40 $6.50 300.001 gallons Large Commercial 2" $2.40 $6.50 600,001 gallons Large Commercial 3" $2.40 $6.50 900,002 gallops Large Commercial 4" $2.40 $6.50 4M gallons Large Commercial 6"" S2.40 S6.50 6M gallons Large Commercial 8" $2.40 $6.50 8M gallons Manufacturing <8" $2.40 Municipal Interruptible $2.40 Restaurant $2,40 Evaporative Cooling $2.40 Fire Flow S2.40 Irrigation Only $4.00 $8.50 500,001 gallons Garrett explained the Wastewater Current Rates as follows: Residential $ 32.00 N/A $ 36.75 N/A (Single Family/Domestic) Small Commercial $ 32.00 N/A $ 36.75 N/A (4" Sewer Line/ 3/4" Water Meter) Commercial $48.40 $2.75 $5S.65 $3.15 (<6" Sewer Line) Commercial $85.95 $2.75 $98.85 $3.15 (>8" Sewer Line) High Strength Commercial $48.40 $4.50 $55.65 $5.20 (>250 80D/Food Processing) Multi -Family Service $114.95 $2.75 $132.20 $3.15 (>3 Residential Units per Water Meter) Garrett explained the financial objectives as goals for combined utilities of Water and Wastewater as overall revenue sufficient and meeting target financial policies, and that current fiscal policies include: debt service coverage of 1.50 times; 90 days cash on hand; and water monthly base charge fixed cost of service recovery of 75% adding that "Water Rates will recognize at least 75% of the fixed cost of service, including debt payments and ROI costs, within the monthly base charge determined by meter size," the policy was first adopted in 2013. He continued that the projected combined utility performance under current revenues shows a combined utility estimated to not recover revenue required as early as FY 2021; cays cash on hand reserves drop below 90 Days as early as FY 2023; and Water monthly base charge revenues estimated to not recognize Water fixed cost of service as early as FY 2021: $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 2020 2021 2022 2023 2024 2025 Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29 a Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40 Water $31.31 $34.44 $37.86 $39.04 $41.30 $43.76 Total $42.53 $48.88 $52.73 $59.20 $59.30 $60.45 Rate Revenues $44.60 $46.06 $47.88 $49.79 $51.88 $54.01 DSC (1.50x) 3.82 3.07 2.44 2.27 2.07 Days Cash (90 Days)* 187 127 40 -24 -75 Fixed COS (75%) 71% 68% 69% 69% 68% Garrett reviewed the current structure of the Residential Volumetric Design: $16.00 $14-00 $6.00 E 0 $4.00 $- ,p ,.� ,p ti ",� yCY',t[9'gLC O'yC5",t6'�� 'y w ti ti ♦ 4 ti Garrett explained the current structure of the Residential Volumetric Rate Design: Austin Ub" HNI Georgetown (Current) Pflugerville Round Rock - Cedar Park Leander $14.00 _ $12.00 e q $10.00 $8.00 m $6.00 E = 0 $4.00 /~ $2.00 J Conservation signals occur at lower gallonage in comparator group -.,. ti• '�• h 1 q �y y'ti A i'1 �A 1V .4'i ti's .11 �� St ,y3 ,y'n y'1 3n t.� b� PF y'1 �u �� y�, SM 5� hq a~ bq Vy Georgetown (Current) Garrett explained the Residential Volumetric Rate Design and Customer Frequency Distribution: 0 00 s � a, v � a i I y o m m ado M1 . w. 4N w a a Q ... . v o a.. I I 1 I ' I �.� 1 1 1 E 1 a ■ ■ �.� . . . . . . • . . — — -- — — — — --- — -- —M —� — — — — — Cap ndhUi QM GbbbhCdt CM U4O0'0 — OC Op PL bD a0 t�f d: M � h4 of o� 0.[ G-0 0.J 4d oC k0 0U GO d0 hp Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y .--I N M Q VI t0 M1 2 01 O� N M� VI lO P OC M O '-I N T^ V1 N P W N O •"� NT M m M lD � 0� D1 O ti N M� Q Q Q 00 (n O T V Q Q Q 7 V T O• O N N M 4 �/1 1p M1 W Ol O .+ N M Q V1 �p P Op 01 O +-I N M Q l!1 lD M1 DD 01 O 4 N T, Q V� lg P W 01 Ol - � rl .� ti ti rl �1 ti + ti ry N ry ry N N ry N ry ry M M m M m m M M M M 4 0 0 0 Q Q Q Q Q 4 M O N Consumption (Kgals) Garrett explained the Residential Volumetric Rate Design is based on historical customer usage characteristics and feedback from the City, and the following Residential alternatives were determined: 0-10,000 gallons 10,001- 20,000 gallons 20,001- 40,000 gallons 40,001- 60,000 gallons 60,001+ gallons 0 - 5,000 gallons 5,001-15,000 gallons 15,001- 25,000 gallons 25,001+ gallons Garrett provided Scenario #1 which assumes the following: adjusting revenues under current rate design; revenue adjustments are driven by first debt payment for San Gabriel Interceptor of $32.5 million in FY2023; water rate adjustments are applied evenly across all customer classes, targeting fixed cost of service metric and mitigating significant Wastewater rate increases; and wastewater rate adjustments applied evenly across all customer classes. Scenario #1 is shown here: $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 2020 2021 2022 2023 2024 2025 iiiiiiii■ Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29 u-m Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40 Water $31.31 $34.44 $37.86 $39.04 $41.30 $43.76 Total $42.53 $48.88 $52.73 $59.20 $59.30 $60.45 Rate Revenues $44.60 $48.47 $53.99 $59.20 $61.68 $64.20 DSC (1.50x) 4.20 3.91 3.47 3.25 3.01 Days Cash (90 Days)* 211 205 197 210 231 Fixed COS (75%) 75% 76% 81% 80% 79% Water (All %) 6.45% 4.50% 4.50% - - Wastewater (All %) 7.85% 7.85% 7.85% - - Garrett explained Scenario #2 which includes: revised residential tier design with 25,000+ gallons; revenue adjustments driven by first debt payment for San Gabriel Interceptor of $32.5 million in FY2023; Water base rate adjustments targeting fixed cost of service metric and to mitigate significant Wastewater rate increases; and no rate adjustments to Non -Residential Water Volumetric Rates. Scenario #2 is shown here: $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 2020 2021 2022 2023 2024 2025 Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29 rL r Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40 Water $31.31 $34.41 $37.82 $39.01 $41.27 $43.73 Total $42.53 $48.85 $52.70 $59.17 $59.27 $60.42 Rate Revenues $44.60 $48.78 $54.24 $59.17 $61.67 $64.23 DSC (1.50x) 4.25 3.95 3.47 3.25 3.01 Days Cash (90 Days)* 214 211 203 216 237 Fixed COS (75%) 75% 77% 83% 82% 81% *Excludes $10M Annual Non -Operating Contingency Water (Base $ Only) $1.50 $1.50 $1.50 - - Water (Volumetric) Varies - - - - Wastewater (All %) 8.89% 8.89% 8.89% - - Garrett explained Scenario #3 which includes: revised residential tier design of 25,000+ gallons and non-residential volumetric water rate adjustments; revenue adjustments driven by first debt payment for San Gabriel Interceptor of $32.5 million in FY2023; Water base rate adjustments targeting fixed cost of service metric and to mitigate significant Wastewater rate increases; other Water rate adjustments applied evenly across non-residential Water volumetric rates targeting revised residential second tier rate in non-residential first tier rate adjustment. Scenario #3 is shown here: $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 2020 2021 2022 2023 2024 2025 Wastewater $10.77 $13.98 $14.42 $19.74 $17.61 $16.29 Reuse $0.45 $0.46 $0.46 $0.42 $0.39 $0.40 Water $31.31 $34.41 $37.82 $39.01 $41.27 $43.73 Total $42.53 $48.85 $52.69 $59.17 $59.27 $60.42 Rate Revenues $44.60 $48.91 $54.33 $59.17 $61.67 $64.22 DSC (1.50x) 4.27 Days Cash (90 Days)* 216 Fixed COS (75%) 75% Water (Base $ Only) Water (Volumetric) Wastewater (All %) 3.97 3.47 3.25 3.01 212 205 217 239 77% 83% 82% 81% $1.50 $1.50 $1.50 Varies - - 8.46% 8.46% 8.46% Garrett provided a community rate comparison and noted that comparisons between communities are very common but may not tell the whole story because each system is unique in geography, age of infrastructure, capital maintenance efforts, and typical usage patterns. He continued with regional bill comparison for a residential user bill of 5,000 gallons for Water and Flat Sewer adding that Georgetown currently does not charge a variable rate based on billed Sewer flows and 5,000 gallons in Sewer flows assumed for surrounding cities. I iberty I lill $114.Y , Leander $95,70 Austin $79.98 Phugerville $76.85 Georpetown (H1) $68.55 Georgetown scenarios 1, 2 and 3 are examples Georgetown (112) $68.10 ofpossible rate designs for discussion only and are not proposed rates. Georgetown (If3) tfwk�$68.00 Georgetown (Current) $63.75 Cedar Park $62.33 Round Rrx:k _ $59.64 1 Water ■ WastPwater Garrett provided a regional bill comparison for a residential user bill of 5,000 gallons for Water and Flat Sewer adding that Georgetown currently does not charge a variable rate based on billed Sewer flows and 10,000 gallons in Sewer flows assumed for surrounding cities. Austin $22,.86 1 iberty I fill $175.95 Leander $159.04 Pllugerville $ 136.35 Cedar Park $122.23 Round Rork $101.09 Geargelawn (I0) $94.60 Georgetown scenarios 1, 2 and 3 are examples Georpetown (1f3) $9450 — of possible rate designs for discussion only and are not proposed rates. Georpelown (111) _ 590.80 Georpetown (Current) $84.50 f Water • Wastewater He continued with regional bill comparison for a residential user bill of 25,000 gallons for Water and Flat Sewer. lluslirr 5382 ()1 Liberty Hill $2t,4,10 Leander $208.18 Pllugerville i $190.35 Cedar Park $174.s:i Round Rock $136 fig Georgetown (#2) $134.10 Georgetown (U3) $134.tx1 Georgetown (it1) 5124.80 (iporgelown (Currant) ,! $116.S0 Georgetown scenarios 1, 2 and 3 are examples - of possible rate designs for discussion only and are not proposed rates. ■ Water R Wastewater Garrett showed a scenario matrix and how the objectives are met: Revenue Sufficiency ✓ ✓ ✓ Fiscal Policies J ✓ ✓ Conservation ✓ ✓ Equitable Cost of Service ✓ Garrett then provided a conclusion that stated in summary the current rates are insufficient and rate increases are needed because the current residential volumetric tiered structure is not achieving the conservation plan and some customer classes are not covering the cost of service; and guidance for the staff and board is needed to determine which of the policy objectives should guide rate recommendations - financial policy, rate equity, and/or conservation plan, and what (if any) additional analysis is needed to better inform or address Council objectives. He stated that the next steps include: Tuesday, August 25th, 2020 receive Council feedback; Thursday, September 10th, 2020 next Water Utility Advisory Board meeting; Tuesday, September 22nd, 2020 City Council Workshop; Tuesday, October 13th, 2020 City Council Regular Agenda; and Friday, January 1st, 2021 Water and Wastewater rates effective. Fought stated that he was glad to see everything in Option 2. He asked if it was possible to have 20,000 gallons for cutoff and still maintain position, and that it depends on threshold for last tier. Garrett and Fought discussed the possibility of changing volumetric thresholds for residential customers. Mayor Ross asked if the Fought likes Scenario 2 but tweak the cap to 20,000. Fought responded yes. Pitts stated that he supports Fought's comments. He stated that is was hard to pick and object to guide rate recommendation. Morgan responded that each scenario addresses different aspects of the policy objectives. Pitts stated that Scenario 2 is the obvious choice. Jonrowe stated that she agrees and like Scenario 2 and incentivizing conservation efforts will be needed going forward. She added that she would be open to changing the limit to 20,000 for Tier 3 and asked for clarification from Fought on his recommendation. Fought stated that the increase wouldn't be dramatic until after 25,000. Jonrowe asked if Fought was proposing fewer steps. Fought stated that 0- 5,000 would be very low; 5,001 - 15,000 would increase slightly; 15,001 to 25,000 would increase more; and then after 25,000 there would be a substantial increase and it could be the final tier. He added that possibly after 50,000 there could be a "Godzilla " rate. Jonrowe stated she could support that. Gonzalez stated that he could support Scenario 2, but he would like more information on the tiers and noted that household size is important. Garrett responded if a family of 4 uses 120 gallons per day you are under 15,000 for the month for indoor use. Dishong added that the average sewer usage for residential users is about 5,000 gallons. Gonzalez stated that he is fine with Scenario 2. Calixtro stated that she is supportive of Scenario #2. Triggs stated that he is supportive of Scenario #2 and seems appropriate. Discussion between Mayor Ross and Garrett related to family size, lots size, usage, data points, and the problem with averages. Dishong stated that one of the things that is known based on City ordinance is the max number of irrigatable lawn space. He added that 32,000 is typically as much as anyone who falls into max space should use based on one inch per week. Mayor Ross noted that the larger a lot, the less equitable this becomes. Garrett stated that people who use a lot of water for outdoor use it irregularly depending on the time of year. Mayor Ross noted that it is the will of Council is to go with Scenario 2. Morgan stated that staff will bring this back in September. Mayor Ross asked if the timeline in the presentation is accurate. Morgan responded yes, unless the board takes more than one meeting to review. B. Presentation, update, and discussion regarding amendments to the Parkside on the River Development Agreement and the Water Oak Second Amended and Restated Consent Agreement -- Wayne Reed, Assistant City Manager Reed presented the item and stated that staff is seeking Council's feedback and direction on a proposal to the Parkside on the River development that will involve an amendment to the Water Oak Municipal Utility District (MUD) 2nd Amended and Restated Consent Agreement and an amendment to the Parkside on the River Development Agreement and staff would like answers to the following: Does Council support the addition of the 361 acres to the master planned development with the proposed land use plan?; Does Council support amending the existing Consent Agreement to a) add 47 acres into WCMUD #25 district boundary and b) increase maximum number of MUDs from 3 to 4?; Does Council support allowing the fixed impact fees to apply to the additional property with execution of a Strategic Partnership Agreement?; and Does Council support considering modifications to Landscape and Tree Preservation Standards? He provided an update on the development progress which includes a 24-Inch Water Transmission Line Project that is 70% completed as of August 2020 and under budget of $3,500,000; Barton Tributary Sewer that began construction Dec. 2019 and completed August 2020; Single -Family units in Phase 1A with 151 lots and construction on Parkside Pkwy (1/3 mile) began July 2020 and home construction to begin February 2021, Phase 2-1 with 122 lots and engineering design complete and estimated start of construction October 2020, ad Phase 2-2 with 61 lots and engineering design complete and estimated start of construction December 2020; overhead Electric along RM 2243 working with PEC, ATT and Frontier to convert overhead to underground; gas service working with Atmos to extend a main gas line from Parkside at Mayfield Ranch; and RM 2243 road improvements, Phase I under design from Parkside Parkway to Springtime Drive in Phase 1A and estimated construction to begin October 2020 and completed by April 2021. Reed reviewed the Parkside on the River Land Use Plan that was approved in October of 2019 and consist of 1,208 acres; 300 acres of open space minimum with 75 acres of public open space along the river; 700 acres for Single -Family with a maximum of 2,500 developed units; 89 acres of Multi -Family along Leander Rd; 50 acres of commercial minimum; 16-acre elementary school site; and fire station site. He then reviewed the proposed August 2020 changes which include: the master developer has 361 acres under contract;1,570 acres versus 1,208 acres total land area; 422 acres versus 300 acres of open space with 115 versus 75 acres of public open space along the river; 925 acres versus 700 acres for Single -Family and an increase in developed units from 2,500 to 3,000; no change in Multi -Family with 89 acres remaining along Leander Road; 64 acres versus 50 acres of commercial minimum;16-acre elementary school site; and a fire station site. Reed reviewed the South San Gabriel River Corridor and noted that when traveling the South San Gabriel River the distance from I-35 to the east edge of Garey Park following the river corridor is approximately 39,510 ft. or 7.5 miles. He continued that Garey Park itself has 6,925 ft. of river frontage, more than a mile, and Parkside on the River has 5,000 ft. of river corridor frontage, with the additional property's 5,700 ft. of river corridor frontage, Parkside on the River will add approximately 2 miles of trail to this regional trail corridor. Reed explained the Consent Agreement Amendment request that includes the following: consent to addition of 47 acres to the WCMUD #25; increase maximum number of MUDs from 3 to 4; maximum amount of bonds to be issued for future districts, which is not a change; maximum bond maturity is 30 years, which is not a change; bond issuance period is 15 years from the date of the first issuance of bonds issued by each district, which is not a change; refunding bonds for not later than 10th anniversary of date of issuance, which is not a change; reimbursement agreement for 15 years after first bond issuance date by each district, which is not a change; and a district only tax rate of a maximum of $0.92 per $100 in assessed value, which is not a change. He then reviewed the development agreement amendment and request related to impact fees which are: extend impact fees (water and wastewater) rates to additional property; not requesting an increase in City's commitment to the maximum SUES; this would remain at 4,600; Parkside on the River Land Use Plan (approved) will likely use around 4,100 SUES out of 4,600 SUES upon full build out and this means roughly 500 SUEs would be used on the additional property; Water and Wastewater Impact Fees (Section 9.01), in consideration of the Former Owner's construction of the SSGI and Primary Owner's payment of the Off -site Capacity Payment, the Impact Fees payable by Owners and End Buyers are (i) for water, the Water Impact Fee per SUE is $3,324, and (ii) for wastewater, the Wastewater Impact Fee per SUE is $2,683 as follows: Parkside DA City's Current Difference (Sec 9.01) Impact Fees Water Impact Fee $3,324 $6,921-$3,597 Wastewater Impact Fee $2,683 $4,348-$1,665 Maximum Number(500) $3,003,500 $5,634,500-$2,631,000 Reed explained the request for Impact Fees based on the City's condition if impact fee rates are extended to additional property: in exchange for the Parkside on the River SUEs and fixed Wastewater Impact Fee and Water Impact Fee being extended to the additional 361 acres, the City has requested the master developer support a Strategic Partnership Agreement (SPA) between the City and Williamson County MUD No. 25 (WCMUD No. 25) and Parkside on the River MUD No. 1 (PORMUD No. 1); each MUD will be required to approve the SPA in advance of the City approving the SPA in accordance with State law, and this would have to be accomplished before an amendment to the DA is effective; consent to limited purpose annexation of the commercial land within the district to be effective when the SPA is executed by the City; City annexes commercial land in the MUD for the limited purpose of collecting sales and use taxes on sales consummated within the district and annexation would occur in future upon development; and the SPA will detail that MUDs will get 20% of the City's 1% general sales tax but none of the other types of sales and use taxes and the City will get 80% of the City's 1% general sales and use tax, and 100% of all other sales and use taxes. Mayor Ross asked for clarification on the sales tax benefit. Reed responded that MUDS will get 20% of the City's 1% general sales tax but none of the other types of sales and use taxes and the City will get 80% of the City's 1% general sales and use tax, and 100% of all other sales and use taxes. Mayor Ross asked how the city benefits. Morgan responded that Reed was about to review that information. He added that the project is in the ETJ which would lead to the City getting no sales tax, but with the SPA the city would get a portion of sales tax. Mayor Ross asked why the City wouldn't get 100% like in other parts of town. Morgan responded because the project is in the ETJ and there is a different level of service provided in the ETJ. Mayor Ross asked what Parkside had done to deserve the suggested rates. Morgan responded that this was similar to what was offered to another MUD. Mayor Ross asked if there were any other MUDs that get this. Morgan responded Parmer Ranch MUD. Pitts noted that agreeing to these terms would lead to the City receiving some sales tax instead of none. Morgan stated that without this agreement the City would get no sales tax. Pitts noted that with this agreement instead of getting impact fees, the City will sales tax it would not have gotten otherwise. Mayor Ross asked that Reed explain the benefit to the developer versus the benefit to City of Georgetown. Reed continued the presentation and said that City staff supports the application of the Wastewater Impact and Water Impact Fee up to the water and wastewater utility commitment of 4,600 SUES after satisfaction of a minimum of 10 acres of commercial land is developed with a unified design and a minimum of 50,000 square feet of retail development before the Parkside on the River requests to use above 4,100 SUES and the remaining commercial land remains (no request to change to residential). He provided the following information: Cumulative Sales Annual Sales Tax at 20 Acre Commercial Tax at 20 years Full Buildout Annual Sales Tax $13,003,200 $1,238,400 $387,000 $2,889,600 $275,200 $86,000 $5,779,200 $550,400 $172,000 $1,444,800 $137, 600 $43,000 $23,116,800 $2,201,600 $688,000 Mayor Ross asked if there would be clawback if the developer doesn't reach the projections. Reed responded that if minimums are not met the City does not extend those fixed end rates. Mayor Ross stated that he was referring to the sale tax numbers. Reed responded that the City could look at projecting a minimum amount of sales tax for a retail center. Mayor Ross stated that if the retail doesn't meet performance there should be a clawback so the City doesn't lose. Morgan responded that the intent was to be conservative in the numbers. Mayor Ross stated that there shouldn't be a problem meeting the numbers then. Morgan responded that staff would have to work through what a clawback would look like. Mayor Ross stated that the developer shouldn't be concerned with a clawback since the numbers used are conservative. Morgan stated that he understands but staff would have to work through the mechanism to make it effective. He added that the intent is to not extend the impact fees to higher levels of units until these goals are met. Mayor Ross stated that he has been on Council for a long time and Council has seen commercial that doesn't come to light. Morgan stated that staff can review applying a threshold on the front end and applying legal mechanism for applying a clawback. Reed continued his presentation and reviewed the request for landscape and tree preservation as follows: Tree Survey of existing heritage and Survey protected trees • Identification of trees removed Tree 20%of heritage trees can be Removal removed within a tree plan without approval from City Tree Credit trees Definition Credit . Size: Single trunk trees 18" and greater but less than 26" • Location: • Residential streetyard • Medians and Parkways • Pocket parks/amenities Credit trees may apply up to 50% of required mitigation for tree removal within a tree plan A tree plan will be submitted with each preliminary plat. This will allow tree credits to be utilized throughout multiple sections of a plat. • Up to 20% of trees within a preliminary plat can be removed without approval from City. • Additional trees require assessment from City Arborist prior to approval. • Trees meeting the size and location requirements identified within a tree plan may be utilized to mitigatefor trees removed. • Trees planted to meet the minimum landscaping requirements of the UDC cannot be utilized for credit Example= • 100 inches of mitigation are required for heritagetrees removed within a tree plan. • Within a tree plan there are 200 inches of credit trees 50 inches maybe used to mitigate for heritage tree removes. Reed repeated the purpose and noted that the following are high level next steps should Council support the proposed amendments: begin drafting amendments to the current Consent and Development Agreements as described in presentation consistent with Council direction; return to Council on landscape and tree preservation standards; initiate discussions with WCMUD #25 and PRMUD #1 concerning SPA; and return to Council with agreements for final consideration. Pitts noted that when a homebuilder builds in the City limits the City collects a portion of the sales tax paid for building materials and asked fi that could be included here. Reed responded that it could be included here, but it would have to go to MUD boards first for approval. Morgan added that from a sourcing standpoint and internet sales the rules are changing. He added that he didn't think the developer would be opposed to that. Pitts stated that MUDs continue to want to be amended and asked if there were any safeguards to limit the number of amendments. Reed responded that staff has made it clear to the developer that there is no request to reduce commercial land area. Pitts asked about possible future request to reduce commercial land area. Morgan stated that the City can't limit future requests, but it is a fair concern. Pitts stated that his only concern is the comingling of funds. Morgan stated that staff can look to address those concerns. Jonrowe asked about the term of the 20% of first penny from commercial property. Reed responded that it is in perpetuity. Jonrowe asked if there are limitation on the use. Reed responded yes, per law. Jonrowe asked if those funds would generally be used for infrastructures improvement not within the City. Reed responded that is correct. Jonrowe stated that she is not crazy about that and added that she would need to know more about how 100% credit would work on the ground. She added that she is hesitant and worried about trees on the property. Morgan responded that those are fair concerns. He added that once a provision is provided for one MUD then others want that provision, and this is something that the City has not traditionally done in the past. Jonrowe stated that she leading to having strong hesitation. Gonzalez stated that 100% carry over for trees because the land will not be the same everywhere. He added that the constant changes have lasting impacts. Gonzalez said he likes having a portion of the ETJ contributing sales tax. He added that he wants to guarantee that the City is not losing commercial property. Calixtro asked if while doing the amendment, is it possible to help the City mitigate concerns related to promised timeline to protect the City's investment. Reed responded that staff will look at adding mechanisms to put in place. Triggs stated that he doesn't like the tree preservation credit as it could lead to barren spaces. He added that he doesn't like sales tax in place in perpetuity. Fought had no additional concerns to add. Mayor Ross stated that he has multiple concerns. He added that he doesn't like the sales tax going to MUD forever and has a more serious concerns about trees. Mayor Ross noted that if an exception is put in the place then future projects will want the same. He then asked about the City's benefit to allowing the changes for tree preservation. Reed responded that it is part of the package that shows give and take. Mayor Ross noted that there are many concerns from Council about trees, concerns about sales tax forever, and the taxes should continue after the project is made whole. Morgan responded that staff can look at expanding the SPA beyond the commercial itself and if the 20% should go to the MUD. Mayor Ross stated that it seems like all projects do residential first and he would something in place to time out the commercial development. C. Presentation and discussion regarding an RFI for the Sanitation Contract -- Teresa Chapman, Environmental Conservation Program Coordinator and Ray Miller, Director of Public Works Miller presented the item noted that the purpose of the presentation is to: request direction on preparing for a new solid waste contract that would take effect October 31, 2022 at the conclusion of the current contract. He added that the new contract components will be a 10- year contract which is standard in the industry and enhanced services. Miller stated that the new solid waste contract options are to: utilize another 5-year extension; direct negotiations with TDS; competitive RFP; and a two-step process with an RFI then based on responses move to an RFP or direct negotiations with preferred vendor(s). He provided the existing contract term which ends on October 31, 2022 with the existing 5-year contract started in 2017; two additional 5-year extensions available otherwise it goes to a month to month contract; approximately 27,000 households; and approximately 2,500 non-residential carts. Miller provided the 2012 RFP for Solid Waste Contract background and the 2012 RFP Contract Development included: City hired a consultant to assist with developing an RFP and solid waste contract that was awarded and started on October 1, 2012. Cost was estimated to be $250,000 including staff time; approximately $80,000 went to the consultant; the 2012 contract provides a solid foundation for a new contract via direct negotiations, RFI or RFP; and three service packets were included in the 2012 RFP covering residential service and non-residential cart service, non-residential service with commercial dumpsters, and management of City - owned site located at 250 W.L. Walden Drive known as the "Georgetown Transfer Station" including maintenance of the old landfill. He added that companies could bid on individual packet or any combination of the three and six companies bid on the RFP: Central Texas Refuse, Al Clawson, Waste Management, Allied Waste, IESI, and Texas Disposal Systems. Miller reviewed the 2012 RFP for Solid Waste Contract Bid Comparison and noted that TDS was the only company to bid on all 3 packets and with the lowest residential rate: Bid Company Residential Price Non-residential cart Central Texas Refuse $29.50 Al Clawson N/A Waste Management $25.67 Allied Waste $17.19 IESI $24.95 Texas Disposal Systems $13.81 Non -Residential Transfer Maintain (Dumpsters) Station Old Landfill Price varies No Yes N/A N/A N/A Price varies No Yes Price varies No No Price varies No Yes Price varies Yes Yes Miller reviewed the Solid Waste scope of services for new contract and noted the City costs for 2018 and 2019 with street sweeping and drainage/streets totaling $79,172.10 and 2020 Call Out Crew totaling $879.11 including calls for 29 illegal dumps, 195 animals, and nearly 1,500 litter sites. Se rvice Packet I Service Description Residential Services Landfill, Recycling, Brushy, Bulky, Other Commercial Services Landfill, Recycling Dumpsters Other Services City reduced rate, Transfer Station, & Maintenance of old landfill Downtown Services Specialized services of a City approved program which includes landfill, recycling, & future compost Household Hazardous Waste City approved HHW program for Tier I and II residents Compactor Services Provide pricing for compactors Enhanced City Services No additional charges for mulched brushy, Public Works bulky, & streetsweeping Miller reviewed the Transfer Station functions and current services, adding that staff wants to maintain these service levels. The services include: staging area to sort landfill trash, recycling, and some compost for residents and commercial businesses; landfill trash disposal brings in approximately $150,000 to the City now with improved efficiencies and disposal streams provides opportunity to increase revenue; approximately 2,000 people and businesses use the Transfer Station each month; yellow bag -the -bag program which is unique to Georgetown where the City hands out about 3,000 bags per year, and the yellow bags are provided to City residents for them to place any plastic bags into and when full they place the yellow bags in their recycling bin to be picked up curbside; primary method for multifamily residents to recycle; free recycling drop-off for anyone; free mulch; free Christmas light recycling; free Christmas tree recycling for real trees; Recycle/Reuse Store; and or a drop- off/management fee, brushy/yard trimmings, appliances, landfill trash, used oil, car batteries, tires, mattresses, sofas and other bulky items. He reviewed the sanitation contract options which include: utilize another 5-year extension with TDS; direct negotiations with TDS to enhance contract; competitive Request for Proposal (RFP) Process; or Request for Information (RFI) process and then determine whether to move forward with options 1, 2, or 3. Miller provided an options overview noting that the City could utilize another 5-year extension with the pros of good foundational contract from 2012, provides consistent and reliable services with our current vendor, Texas Disposal Systems, and saves costs and workload of RFI or RFP; and the cons of items in the contract are not addressed such as the host fee, compactor and City services and it has been 10 years since the services were competitively bid. He continued that if the City does direct negotiations with TDS the pro are a good foundational contract from 2012, provides consistent and reliable services with our current vendor, Texas Disposal Systems, saves costs and workload of RFI or RFP, and would update current contract items such as the host fee, compactor and City services; and the cons are that it has been 10 years since the services were competitively bid. Miller noted that the competitive RFP provides the pros of providing multiple companies opportunity to bid on public contract and explores and reviews trends and evolving opportunities in the solid waste industry as well as innovation; and the cons are cost(s) in staff time and hiring a consultant to review and administer, and based on 2012 data, there may be limited companies that can provide the full range of sanitation services requested. He stated that the RFI Process has the pros of enabling the City to explore service provider capabilities and options, explores and reviews trends and evolving opportunities in the solid waste industry, and keeps all contracting options open; and the con of cost of city staff time to complete the process. Miller then provided a breakdown of the RFI versus RFP as follows: Company History / `I ✓ Financial Condition No ✓ Qualifications for Services ✓ ✓ Team Qualifications V Priced Packets No ✓ Trucks and Equipment No ✓ Lead Time to Start No ✓ Interest in complete packet Interestin individual packets Consultant Needed No Yes Jonrowe stated that she had no questions and would prefer that staff try to negotiate directly with TDS. Gonzalez stated that he had no concerns and had no issues with TDS and prefers negotiating the contract directly. He added that he is not sure how long is proper for a City to go without proper bidding and he wants the City to receive fair deal. Calixtro stated that she agrees with Jonrowe and has no issues of note. She added that TDS is responsive, and their workers have a good work ethic. Triggs stated that he knows that TDS is top notch company and has no problems. He added that this is an industry going through a lot of consolidation and if the City went through with a 5-year extension and a consolidation occurred, that if the City didn't like new provider, eh would want an option to opt out. Fought stated that TDS is great, and they assist with handicap and mobility impaired. He added that this is a special service that makes the relationship extremely good and he comfortable negotiating with TDS. Fought stated that if an RFP is needed that's fine. Pitts asked if the extension was made it be extended as is. Miller responded that is correct. Pitts asked about the household hazardous waste program. Chapman responded that staff is currently working with City of Round Rock and working on a program to move to Georgetown. Pitts asked if the City is doing an RFI, would it include all items currently received and options. Chapman responded that the RFI would keep all items as options. Pitts state that he would choose option 4 to make sure the taxpayers are getting the best option. He added that he has not had many issues, and if they exist, they are usually resolved. Pitts stated that there is a duty to citizens to make sure they are getting the best deal and he sees no issue with taking a look at options. He added that his second choice is to negotiate directly with TDS. Mayor Ross stated that the City has spent quite a bit of money on consultant and it is the will of Council to negotiate with TDS. He added that in his years as Mayor he hasn't gotten a single trash call. Rick Fraumann with TDS explained the history of TDS and their relationship with Georgetown. He noted several technical advances that TDS has made that TDS is willing to work with the City in which ever way the City would like. Ross asked if he correctly captured the will of Council. Morgan responded that staff will negotiate with TDS in good faith. Gonzalez stated that he doesn't mind negotiating, but how do you know what to compare it to. Chapman responded that staff has ways to compare to other cities and other factors can also be considered. Mayor Ross noted that the City benchmarks on a regular basis. Pitts asked if an RFI would do that as well. Morgan responded that it wouldn't be focused on rate, it would scan all providers. Mayor Ross noted that Council can change its mind if negotiations do not work in the City's favor. D. Presentation and discussion regarding Charter Review Process -- Skye Masson, City Attorney and David Morgan, City Manager Masson presented and explained the process for amending the Charter and noted that: an election to amend the Charter can be held no more than every two (2) years; the City Council approves the submittal of charter amendments to the voters; voters approve or reject each proposed amendment on a uniform election date; and in Georgetown, the usual practice has included a charter review committee to review the charter and proposed amendments and make recommendation to the City Council. She noted that recent Georgetown Charter Review processes have taken place noting that in 2001, the City Council appointed a Charter Review Committee that worked with the Council and Staff to review the Charter and make recommendations on amendments and in May of 2003, 13 charter amendments were approved by voters. Masson continued that in 2012 the City's Legal Department led a review committee and after a thorough review, the Council decided not to have a Charter Election and the work was put on hold. She explained that the 2012 Charter Review Process was based off of Council directive and staff input with 11 Charter Review Committee meetings, approximately 11 hours spent at Committee meetings (11 1-hour meetings), approximately 7 City Council meetings regarding the Charter Review Process, and an approximately 2-year process in total. She explained establishing a Charter Review Committee and stated that the Council is responsible for creating the Charter Review Committee which historically has each Councilmember and the Mayor appointing a committee member. Masson said that other considerations when establishing a Charter Review Committee are identifying issues for review by Charter Committee; City staff assistance and coordination of committee; City Attorney role in drafting amendment language; and a deadline for receiving recommendations from Committee. She stated that when identifying Charter amendments, then can be: Council -directed like term limits, vacancies, and correcting inconsistencies with state law; citizen -directed; staff -directed; and consider amendments recommended in 2012. Masson provided timeline options and noted that: Council must order the charter amendment election at least 78 days prior to the uniform election date; for the May 1, 2021 uniform election date would require completed process and first reading of an ordinance by January 19, 2021; and for the November 2, 2021 uniform election date would require completed process and first reading of an ordinance by July 27, 2021. She proposed a recommended schedule for the November 2021 Election as follows: in Fall 2020, Legal Department and City Staff will conduct a technical review of Charter and presentation of result of review to Council; in Late Fall 2020 the Council appointment of a Charter Review Commission and submission of amendments for commission consideration; in Spring 2021 conduct Charter Review Commission meetings/review of Charter; June through July 2021 City Council holds public hearings on proposed amendments; on July 27, 2021 have the First Reading of Ordinance Calling Charter Amendment Election; in August through September 2021 publish required notices of election; and on November 1, 2021 hold the Charter Election. Masson asked for Council Direction on the following questions: 1) Does the Council wish to proceed with the timeline for November 2021 Charter Amendment Election? and 2) How would the Council like to identify potential amendments/issues for review? Fought stated that he likes the November timeline and the idea of appointing a committee. He did ask about ballot options and if term limits are wanted, how would that look on the ballot. Masson responded that what goes to the voter is specific proposed language with yes or no for adoption and the committee can recommend language. Fought noted that Council Members likely have different opinions about appropriate term limits. He added that he thinks staff should proceed with the November timeline and he likes going back and forth with citizen input as this is long overdue. Pitts stated that November 2021 is the most logical and he is interested in the 12 amendments from 2012 that weren't approved. He added that he is still interested in Council appointed committee and that they could start with the 2012 amendments and go from there. Pitts stated that his only question is in the event of a runoff, if District 2 is still vacant, would Council be waiting for appointment until after a runoff. Morgan responded that he would recommend waiting until District 2 is elected. Pitts stated that he wasn't sure if that would condense the timeline. Morgan stated that Masson is providing how quickly the process can go and added that Council may get in the middle and realize that the timeline needs to go out farther. Pitts stated that if Council does have time for District 2 representation, he would like that, and he is okay with November and would like committee. Jonrowe stated that she is good with November 2021 and Pitts brings up good point about District 2 representation. Gonzalez stated that he agrees with November 2021 and before Council elects citizens, staff should review and have a starting base for committee to start from. Triggs agreed with the goal of November 2021, agrees with the citizen committee, and committee being formed after elections. Mayor Ross stated that the consensus of Council is November 2021 and to review what has come up before. Fought asked if Legal can distribute a list of previous considerations. Masson responded yes and recommends that staff comes back before appointing committee. Calixtro stated that she agrees with what has been said. Mayor Ross recessed into Executive Session at 5:11 to start at 5:20 p.m. Executive Session 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: Consultation with Attorney Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise the City Council, including agenda items - Litigation Update Sec. 551.072: Deliberations about Real Property - Riverhaven -- Travis Baird, Real Estate Services Manager - Parkside Waterline Easement Acquisition -- Travis Baird Real Estate Services Manager Sec. 551.087: Deliberations Regarding Economic Development - Project Dazed Adjournment Approved by the Georgetown City Council onbk�f � Zc) - 6 Date 11M Dale Ross, Mayor Attest: City Secretary