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R-2017-4513 - 7/13/2017 RESOLUTION NO. R-2017-4513 WHEREAS, Section 395.058 of the Texas Local Government Code ("the Act") requires the Capital Improvement Advisory Committee ("CIAC") to report to the City Council the progress of the capital improvements plan and any perceived inequities in implementing the plan or imposing the impact fee; and WHEREAS, the CIAC is also required to advise the Council of the need to update the land use assumptions, capital improvements plan and impact fees; and WHEREAS, the CIAC has submitted a Capital Improvement Plan Progress Semi-Annual Report; and WHEREAS, the City Council has reviewed the attached Capital Improvement Plan Progress Semi-Annual Report and has determined same to be in compliance with the Act,Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Capital Improvement Plan Progress Semi-Annual Report, attached hereto as Exhibit "A" and incorporated herein, is hereby approved. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 13th day of July, 2017. /,/ # z CRAIGGANPexas or City of R�Aund Roc ATTEST: qlw�, V& SARA L. WHITE, City Clerk 0112.1704,00381235 EXHIBIT A., i r' ROUND ROCK TEXAS UTILITIES AND ENVIRONMENTAL SERVICES CitywAftf Round Rock Utilities & Environ mental Services Department SUMMARY The Local Government Code Section 395.058 requires the Capital Improvement Advisory Committee (CIAC) to report to the political subdivision the progress of the capital improvements plan and any perceived inequities in implementing the plan or imposing the impact fee. Included herein is the semi-annual report for the reporting period of October 1, 2016 to April 1, 2017. This report includes an updated assessment of the actual growth rate in comparison to the projections and assumptions made in the report; projects completed or initiated during the period; and impact fees collected during the period. These comparisons are used as indicators of the need to update the land use assumptions, capital improvements plan or impact fees. The local government code also requires the Capital Improvement Advisory Committee to advise the City Council of the need to update the land use assumptions, capital improvements plan and impact fees. These items were last updated by the City in November 2015. 1 7/5/2017 Figure 1 represents Ground and Surface water use, along with the number of active water services over the past two years. Although the City continues to grow, the total water production has remained fairly level over the past two years. Part of this reason could be because water usage is dependent on weather patterns; however, the City's conservation and reuse water programs are also affecting the amount of potable water usage by the City. New water services continue to increase, but at a slower pace compared to the early 2000's. Figure 1 Water Treatment Plant 3.000 ,........._.................___............_................._......_._.__....__........_................................................................................................... .......................___............_.............._._._..._...._.._...._.._.__...._..__._..__...._ 34 2,50Q ........................................................................................................................................................................................... .................................................... ^ 365 2,000 _..._...._.. _.......... S ._._......._.................__...._...._..._................{ .� -i 33 �3 U ...................... ....15CD _............ _..__...._......_.... .................................. — d Ms 1,000 +- 77 �- t� C3 32 SCID ......................... ..................................................................._...........................................................__.................._........ ......................._._....j 0 __...,.._ .. _ _;_._......W_.___ _ ....__........ 2rdQOrFY 3rd CirFY s 4th Ctr FY 1st Qtr FY f 2nd Qtr FY 3rd Ctr FY 4th CtrFY 1st Mr FY 2nd Cir FY X15 15 '15 `16 ' '16 `15 '16 °17 117 ` ...... ................. .....a..... ' ... ............_�............................................. .... ........................................ ..................ti...............................,.;... x Grcund Water 1188,620,000 12140, 300 :226,270,000 1-0,340,000 196,240,Ca) 217,31(1,(300 222,59D,OM:20R,18D,0001 21,84QCDO. ................................... &Kface Waterl 1,030,268.0 1,2&2,620,0:2 426 800 O 1492 430,0,1,211,910,0 1412 06RO 2 044 50D 0 1,379,79Q0 1„255 550,0 _ ....... . ...... ................. ....... Acme Se 32375 32418 1 32588 1 32574 1 32703 32732 32930 33465 33695 2 7/5/2017 Figure 2 reflects the monthly potable water production over the past seven years. As can be expected, the average daily demand increases during the summer months; however, total water production is dependent on weather conditions, which effects discretionary water usage. Figure 2 Average Potable Daily Demand Each Month 40 .. ....... . 35 30 25 C 9 `.�2 c0 G 15 10 ` 5 `S Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 ij 2011 2012U 2013 ':..1 2014 U 2015 W 2016 2017 3 7i5i201 7 Figure 3 reflects the monthly potable treated water production and the Type I Reuse treated water production. The City's reuse water system began production in October 2012 with three customers: Old Settlers Park, Dell Diamond, and Forest Creek Golf Course. Since that time, the City has expanded the system to include Forest Creek HOA, Legends Village Subdivision, Austin Community College, Texas A&M Health Science Center, the Forest Grove and Vizcaya Subdivisions. The City continues to promote the reuse water system in the Northeast part of Round Rock and as depicted in Figure 3, the demand continues to grow. Figure 3 Potable vs. Reuse Water Average Daily Demand Each Month 36 32 28 24 U1 20 3 O 3 y a 16 } r 1 I 12 .: " is 4 p v so � O 5EQ FY-13 Average Potable Treated W FY-14 Average Potable Treated w FY-15 Average Potable Treated w FY-16 Average Potable Treated a FY-17 Average Potable Treated uAverage Reuse Treated 4 7/5/2017 Figure 4 shows the number of single-family building permits issued annually. The number of new housing starts per year in the City of Round Rock has ranged from 222 to 480 over the past eight years. Single-family permits have remained steady over the past year due to new subdivisions available within the City. Of the 419 permits issued in FY-161 310 were for single-family residences and 109 were for townhomes. With the release of four new subdivisions, single-family permitting has remained steady for the first half of FY-17. Several Municipal Utility Districts (MUDs) that are located in Round Rock's extra- territorial jurisdiction (ETJ) continue to experience a steady number of single-family housing starts over this same time period as well. Ficiure 4 3 Annual Single-Family Building Permits Issued Residential & MUDs 800 750 71s 3 700 677 650 600 581 591 556 550 526 535 500 450 400 350 r__ 338 342 300 250 200 150 '100 50 0 FY-2009 FY-2010 FY-2011 FY-2012 FY-2013 FY-2014 FY-2015 FY-2016 FY-2017 3 Oct-Mar E Round Rock N Paloma MUD#1 a Paloma MUD#2 E Tera Vista#10 0 Tera Vista#11 1 Walsh Ranch f 5 7i5i201 7 Table 1 represents the number of multi-family building permits issued annually. During FY-07, a large number of new apartment complexes were constructed within the City. This is reflected in the amount of impact fees collected during that year. The following years did not see this amount of multi-family construction; however, the population continued to grow despite the fewer permits issued. In FY-14, there was an increase in the number of multi-family projects under construction; however, these projects were permitted in FY-13, as shown in the table below. For FY-15 and FY-16, there were several multi-family complexes that were either under construction or in permit review. Currently, there are four projects under construction with another two in for a permit. There are also three senior living/assisted living projects and two Alzheimer units under construction. Table 1 Fiscal Year Units Permitted FY 2005 538 FY 2006 56 FY 2007 2147 FY 2008 224 FY 2009 274 FY 2010 130 FY 2011 0 FY 2012 280 FY 2013 884 (124 L UEs) FY 2014 334 (63.5 L UEs) FY 2015 792 (302 LUES) FY 2016 608 (157 L UEs) FY 2017 (Oct— Mar) 330 (170 LUEs) Note: The number of LUEs that were determined for these developments are shown in parenthesis. 6 7i5i2017 Table 2 reflects the number of new commercial building permits issued annually. Over the past several years the number of permits has been steady, ranging from 20 to 30 permits annually. However, from FY-13 thru FY-16, there was a significant increase in new commercial building permits, specifically for restaurants, hospitals, medical clinics, banks, convenient stores, and office buildings. Table 2 Commercial Fiscal Year Permits Build FY 2009 30 FY 2010 29 FY 2011 27 FY 2012 20 (100 LUEs) FY 2013 37 (185 LUEs) FY 2014 33 (165 LUEs) FY 2015 47 (202 LUEs) FY 2016 63 (442.5 LUEs) FY 2017 (Oct — Mar) 10 (31 LUEs) Note: The number of LUEs for these developments is shown in parenthesis. Commercial growth continues to be heavy in the City in FY-17 as well. Several new office buildings are under construction and in for permits. These facilities include medical offices, convenient stores, storage facilities, retail strip centers, hotels, Austin Community College expansion, and Round Rock Independent School District additions. 7 7/5/2017 Table 3 and Figure 5 summarize the impact fees collected from FY-13 thru the first six months of FY-17 for residential and commercial building permits. There was a significant increase in the amount of impact fees collected in FY-15 and FY-16, due to the construction that occurred in single-family residential, multi-family residential and commercial developments. Table 3 Impact Fees Mar) i Residential Water $ 2,407,646 $ 961,767 $ 1,616,580 $ 1,5161823 $ 1,218,585 Commercial Water $ 1,296,258 $ 941,463 $ 2,2731857 $ 21342,270 $ 514,994 Wholesale Water N/A $ 1,163,887 $ 11035,951 $ 11117,590 $ 331,287 Residential Sewer $ 1,106,716 $ 322,936 $ 618,240 $ 701,551 $ 516,973 Commercial Sewer $ 4771758 $ 398,361 $ 1,084,193 $ 1,020,587 $ 751,039 _.. r. _..... Wholesale Sewer N/A $ 920,972 $ 11304,686 $ 11529,096 $ 551,538 Total Collected $ 5,288,378 $ 4,709,386 $ 71933,507 $ 8,227,917 $ 3,8841416 .............. w...... 8 7/5/2017 Figure 5 Impact Fees Collected FY 2013 - 2017 f ' $9,000,000 $8,227,917 ' o $7,933,507 ...................... __ . ......._.. ........................................................................ ..: ...................... ....... ....... .:.....::.., $8,000,000 $7,000,000 $5,288,378 $6,000,000 . -- �$4,709,386 y� $5,000,000 $3,884,416 l v...v...mwww.n.....n....w..... wnn..„. 4,000,000 .._. ....,_.. .wnw....� _,.......... . $3,0 00,00 0 $2,000,000 �f ii r`� 1 $1,000,000 4 .. .. FY-13 FY-14 FY-15 FY-16 FY-17(Oct-Mar) Residential Water K Commercial Water Wholesale Water N Residential Seger ra Commercial Sewer Wholesale Seeder In 2015, the latest version of the water model assumed that 1,524 LUEs per year would be added to the water system. For an impact fee of $4,025 per LUE, this would indicate that the City should have collected approximately $6.13 million per year in water impact fees if the City would be growing as projected. The wastewater model assumed that 1,089 LUEs would be added to the wastewater system per year. For an impact fee of $2,099 per LUE, this would indicate that the City should have collected approximately $2.29 million per year in wastewater impact fees if the City would be growing as projected. Comparing these assumptions to the actual impact fees collected indicates that new connections to our water and wastewater systems are occurring as projected. 9 7i5i201 7 Table 4 provides population projections for Round Rock and Round Rock's ETJ over the coming years. These projections, anticipating a steady growth rate, indicate that in order to keep up with growth, capital improvements to the City's water and wastewater utility systems would be necessary. However, 2012-2016 estimates, shown in parenthesis, indicate the City's population growth rate is slightly slower than projected. Table 4 Inside City City's ETJ Year Projections Growth Rate Projections Growth Rate' 2010 Year 99f887 - 141,807 - 2011 1001659 0.8% 143,960 1.5% 2012 102,349 / (101,702) 1.7% (1.0%) 147,027 2.1% 2013 104,805 / (102,349)" 2.4% (0.6%) 151,133 2.8% 2014 107,635 / (103,494) 2.7% (1.1%) 155,613 3.0% 2015 110,757 / (105,405) 2.9% (1.9%) 160,385 3.1% 2016 1131968 / (107,158)1 2.9% (1.7%) 165,024 2.9% 2017 117,160 / (108,353) 2.8% (1.1%) 169,213 2.5% 2018 120,440 2.8% 173,490 2.5% 2019 123,812 2.8% 177,859 2.5% 2020 1271279 2.8% 182,323 2.5% 2021 1301461 2.5% 1861062 2.1% 2022 133,723 2.5% 189,881 2.1% 2023 137,066 2.5% 193,508 1.9% 2024 140,492 2.5% 197,218 1.9% 2025 143,302 2.0% 200,312 1.6% 2026 146,168 2.0% 2031462 1.6% 2027 1491092 2.0% 2061670 1.6% 2028 152,073 2.0% 2091651 1.4% 2029 155,115 2.0% 2121693 1.5% 2030 158,217 i 2.0% 215,795 1.5% Notes: 2010 is the base year for these projections ( ) Annual Estimates by Planning & Development Services Department 10 7/5/2017 Table 5 provides a summary of the Water System Capital Improvement Projects that have been completed or are in progress since the last impact fee analysis was completed in November 2015. In addition, projects that are anticipated over the next 10 years are also shown below. Table 5 Completed Water Projects Completion Cost Water Distribution System Model 2012 $ 200 000 2012 Water Distribution System Master Plan & 2012132 000 Impact Fee $ BCRUA Phase 1A - Construction Management & 2012 1 507 000 Inspection Services BCRUA Raw Water Line & Intake Barge, Contract 1 2012 $ 81590,000 .......................____...___...._..................._.... ..__..............__........................__........_....... BCRUA Raw . Water Li. ............... ...... _.. ................................................_.._...._._..... ._...._......................................._............................._.....__.................................. ........................ .................... BCRUA Raw Water Line & Intake Barge, Contract 3 2012 $ 1,134,000 { BCRUA Treated Water Line - Phase 1, Segment 1 2012 $ 3,6081000 BCRUA Treated Water Line - Phase 1, Segment 2A 2012 $ 364,000 ............_._......................... _._.... _ __._........__ .......___.�...___._............................_............ BCRUA Treated Water Line - Phase 1, Segment 2B 3 2012 $ 51168,000 i BCRUA Treated Water Line - Phase 1, Segment 2C 2012 $ 3,350,000 ....._............................_.........................................................................._......................................................................._....... .................._................................._......___...._....._..............................._-................................... BCRUA Water Treatment Plant - Phase 1A 2012 $ 19,048,000 Clearwell at RR-WTP 2012 $ 21851,000 .........................................................................................._......................................................................................................... ..............................................................................................................._..._......._........................................................................... .................... BCRUA Treated Water Line - Phase 1, Segment 3 2015 $ 81749,000 University Blvd Water Line Phase 1 2015 $ 1,877,000 Parcel 150 2015 $ 31144,000 ................................................................................................................................................................................................... .....................................................__.._........_...................L..._........__....._..................................._._...._................................................. ...................... CR 112 Phase 2 - 24" Water Line (890 PP) 2015 $ 888,000 Water Distribution System Master Plan & Impact Fee 2015 $ 141,000 Creek Bend 12" Water Line 2016 $ 415,000 $ 62,857,000 Water Projects In Progress Completion Cost Arterial H Waterline 2018 $ 1,5031000 $ 1,503,000 11 7/5/2017 Upcoming Water Projects Estimated Estimated 9 Completion Cost BCRUA Water Treatment Plant - Phase 1B 2017 $ 31,000 South Creek Water Line 2018 $ 6171000 Water Distribution System Master Plan & Impact Fee 2018 $ 150,000 Palm Valley Water Line 2019 $ 11484,000 Double Creek Water Line 2019 $ 11841,000 BCRUA Water Treatment Plant - Phase 1C 2019 j $ 4,152,000 Avery Center East 2019 $ 2,9151000 Meadow Lake Lines 2019 $ 969,000 Southeast Red Bud Lane Water Lines 2020 $ 559,000 ............................................................................................................................................_........_..............._.......................... ..........................._.........................._......................_.... ......._._........._..._._._....._............... _._........._....... Saddle Brook Water Lines 2020 $ 598,000 Ground Water Treatment Plant at Lake Creek 2020 ' $ 6,707,000 ..__...._... ........................................................................................._....____.._._.__._._.__.............___.._...._......... ......_ ........... Round Rock Glen Water Lines 2020 $ 1,169,000 _._........_...__._....._...._.._ _ __..._.__._._..._......._..............._..__ _...._._..._..._......_. __-.___........................_...................._._._........_x........__. ...._..._.__..__ ....._.................................. Brenda Lane Water Lines 2020 i $ 1,141,000 Arterial A Water Line 2020 $ 5,012,000 ......... ...................................__.................................._._..._..........................._..._..._............_..__..........._.........._........................ ................._........................ ... .._..._......_........................... ....................... Arterial H Phase II 2020 $ 1,470,500 Water Distribution System Master Plan & Impact Fee 2021 $ 154,000 Parcel 185 2022 $ 817,000 _.................................................... __......__.._r.._........_.......................................................................................... . Gattis School Road 2022 $ 1,827,000 2.0 MGD Elevated Storage Tank (PP 890) 2022 $ 5,029,000 East Loop II 2022 $ 6,619,000 Sam Bass Phase II 2022 $ 1,624,000 South Creek Phase II 2022 $ 2,312,000 East Loop III 2022 $ 7,2031000 West Loop 2022 $ 17,818,000 ....................._.....I........................._ _. ..........._......._..................................._............... .......__......_........_................................ .................................................................................................._.............__...._.:_.._................._........................................................ _......._....... . BCRUA Raw Water Line - Phase 2A, Segment 5 2023 $ 16,866,000 BCRUA Deep Water Intake 2023 $ 23,821,000 BCRUA Water Treatment Plant - Phase 1D 2023 $ 11047,000 Sam Bass Phase I 2023 $ 14,469,000 $ 128,421,500 12 7/5/2017 Table 6 provides a summary of the Wastewater System Capital Improvement Projects that have been completed or are in progress since the last impact fee analysis was completed in November 2015. In addition, projects that are anticipated over the next 10 years are also shown below. Table 6 Completed Wastewater Projects Completion Cost Chandler Creek 1 (Lower) 2013 $ 424 000 McNutt Creek C3 2014 $ 9401000 McNutt Creek C9 2015 $ 11471,000 McNutt Creek C13 2015 $ 561,000 Chandler Creek 1 (Upper) 2015 $ 5731000 Wastewater Master Plan and Impact Fee 2015 $ 165,000 Update Lake Creek 2 2017 $ 1,9161000 Lake Creek 3 2017 $ 563,000 McNutt Creek C2 (referred to as C5) 2017 $ 11762,000 $ 81375,000 Wastewater Projects in Progress Completion Cost Forest Creek LS 2017 $ 2231000 Brushy Creek 5 2017 $ 288,000 $ 511,000 Upcoming n Wastewater Projects Estimated Estimated Cost p g jCompletion Chandler Creek 2 2018 $ 428,000 Brushy Creek 2 2018 $ 349,000 Chandler Creek 3 2018 $ 655,000 ................................................................................................................_..............._................................................................. ..........................................._.......................................................................................................................................... ................. McNutt Creek 15 (referred to as 12) 2018 $ 488 000 ................................................................................................................_.........................._................................................._. ........................_. _._._......_._.............................._..........................................__... 3 Dry Creek 2019 $ 856,000 McNutt Creek C10 2019 $ 937,000 .....................................................I ..........................................................._.................__._............._............................................. .................................................................................................................................................... ..................................................................................... 13 7/5/2017 Upcoming Wastewater Projects Estimated Estimated Cost Continued... _ Completion Brushy Creek 4 2020 $ 173 000 ............................._..._........._....................._.._.......................... _ _ ._._._.._....._._..___ __._............ i 1 McNutt Creek D2 2020 $ 31339,000 McNutt Creek C4 2020 $ 154,000 Hilton Head LS 2020 $ 17,000 Lake Creek 1 2021 $ 11287,000 Lake Creek 4 2021 $ 1,712,000 ........................................................................................._...._................................................................................................. ...... ......_............................:......................._...................... McNutt Creek C12 2022 $ 714,000 SE Annex LS 2022 $ 616,000 _............................_........._.........................................................._............._.................._.................._....................__-._._................ ........................_......._..._ ... __ _._...................._........_....._................._............................_...... ........ Forest Creek 2 2022 $ 1,948,000 ..................................................................................._...........___...__............._.............._._.__....__......___...._...__........................... __ _ _ ..................................................... __:..__..._......._.._._.......................................................................... McNutt Creek D4 2022 $ 11108,000 Onion Creek 1 2022 $ 134,000 McNutt Creek C6 2022 $ 2021000 Onion Creek 2 2022 $ 99,000 Spanish Oak 1 2022 $ 1,179,000 McNutt Creek D5 2022 $ 748,000 Mayfield Park 2 2022 $ 1 549 000 ........................................................................... ..................-...................................._.....................w.._................_.........._..... ..__..................._..._....._......_. McNutt Creek C8b 2022 ' $ 649,000 Mayfield Park 1 2022 $ 3111000 WWTP Expansion 1 2023 $ 39 179-f-0,0 0 WWTP Rerate 2023 $ 5,000,000 Stone Oak LS 2023 $ 295,000 $ 64,349,000 Completed Reuse Projects Completion Cost Reuse Phase II 2015 $ 2,108,500 Reuse Phase VI 2016 $ 900,000 $ 3,008,500 Upcoming Reuse Projects Estimated Cost Completion Reuse Phase V - Stony Point High School 2022 $ 600 000 $ 600,000 14 7/5/2017 Figure 6 provides a comparison of the Single-Family Residential Utility Rates for Round Rock customers versus surrounding Central Texas City and Municipal Utility Districts. As depicted, Round Rock utility rates remain some of the lowest in the region. Figure 6 Single-Family Residential Water and Wastewater Rates Comparison (monthly cost)* $180 $160 $153.48 - $150.90 $140 w _,.$134.60._ $124.00$123.75 $120 $106.80 $99,60 $100 ___.___. ... µ__.,...,.. �,..._._:.... $96.69 _... ..__,.. 92.45 $85.30 $81.20 $79.98 $80 $69.10 $63.65 $62.60 $60 $40 $20 _..._ _._._... _..., w_.. .. $0 _ . a.... '­­.....'I'­rrrrr....... �atoo5 �oAP �a�\ Sam Qa\off �1a\So •j�S� ��Stia� atm\S CA161 Qat (era date Lee Glee ■Water 0 Wastewater * assumes 10,000 gallons water & 8,000 gallons wastewater used 15 7/5/2017 Table 7 compares Round Rock's Water and Wastewater Impact Fees to other Central Texas cities. Historically, Round Rock had one of the highest total impact fees charged for new connections to the water and wastewater systems. However, several of the surrounding cities have increased their fees over the past few years and have surpassed Round Rock. Round Rock's philosophy is for new customers and developments to pay for the capital improvements that are required due to the growth. Table 7 • "' . Impact Fee Comparison WaterLast « Total ........................_. L -Up ated_ Brush Creek MUD Brushy 2016 $21095 $1,804 $3,899 Cedar Park 2014 $2,250 $2,000 $4,250 Leander 2012 $3,880 $1,615 $5,495 Jonah Water SUD 2013 $4,636 $1,068 $5,704 Hutto 2013 $3,625 $2,128 $5,753 San Marcos 2013 $2,285 $3,506 $5,791 Round Rock 2016 $4,025 $2,099 $6,124 Pflugerville 2014 $4,241 $2,725 $6,966 Austin 2014 $5,400 $2,200 $7,600 Georgetown 2016 $6,139 $2,997 $9,136 Georgetown (South San Gabriel Basin) 2016 $6,139 $4,452 $10,591 16 7i5i2017 CONCLUSION AND RECOMMENDATIONS The CIAC and City Council approved the new Impact Fees which went into effect March 1, 2016. Although the projected population growth in Round Rock is proceeding at a slightly slower rate than what was anticipated in the impact fee report, this has not caused a significant concern since the number of connections to the water and wastewater systems are occurring at the projected rate anticipated by the City. As a result of the potential volatility in growth rates and infrastructure requirements, the City recommends the impact fees be reviewed every three years so that the fees are set according to the growth patterns and needs of the water and wastewater utility system improvements. The next Capital Improvements Plan Progress Report will be presented to the CIAC and to the City Council in approximately six months. 17 7/5/2017