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R-2018-6156 - 12/6/2018 RESOLUTION NO. R-2018-6156 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 6th day of December, 2018. z Al CRAI MORN, Mayor City of Roundtock, Texas ATTEST: %P* L - not SARA L. WHITE, City Clerk 0112.1804;00413899 EXHIBIT w+�• ROUND ROCK TEXAS UTILITIES ANO ENVIRONMENTAL SERVICES �x C"ty v of 'ound Rock U'Eilives :& Environ w� zo.ervices Depart. 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 April 1, 2018 to September 30, 2018. 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 11/1/2018 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. The City has issued approximately 400 more permits in FY-18 versus FY-17. Figure 1 Water Treatment Plant 2,500 35 2,000 34.5 a ca 0 f' 0 1,500 ---_..�.._._..._.._..._._....._ _.... .....: 34 c _ ry f 0 O. 1,000 .................... ......................._.................._. __._......__.............__....._..____. _....__._......._...___ ._.._.....__......____...._._._..._......_..._..._..._...._......_._. � .. _.;.. 33.5 u d 0 4- 0 C7 cv E 500 .............................._.............__.____._..._................__.____._....._..._.._......_......__...-.__.._.._.__.................___...____...__-._...__.__..___..._.___..__... ._...__.._.____..__...._...._..__.___....._.....___—_---___..._........ 33 :3 Z Q ........ _.._.._._._........................._..._........._._._.__..._....................._..... __.........._....._..._....._...._.. .._.._....._.r._.....__...._................ ......_... 32.5 Ist Qtr FY'17 2nd tr Y'17 3rd Qtr Y'17 4th Qtr fY'17 1st Qtr fY'18 2nd Qtr FY'IS 3rd Qtr WIS i 4th Qtr FY'18 �GCOUnd Water zQ1,180,000 21,840,000 20,710,000 217,810,000 167,410,0(10���110,924,000 1 170,164,000 i 139,594,000 Surface Water 1,379,790,000 1,265,570,000 1,810,718,000 1,517,199,000 1,410,181,000 1,148,177.,000 1,849,031,000 1 2,257,593,000 -**—Active Services 33465 33695 1 33995 34179 33981 34706 34403 i 34816 2 11/1/2018 Figure 2 reflects the monthly potable water production over the past eight years. As can be expected, the average daily demand increases during the summer months; however, total water production is dependent on weather conditions, which affects discretionary water usage. Figure 2 ao Average Potable Daily Demand Each Month 35 30 ,r 25 c a ' 20 ." E 25 10 s t Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 02010 X12011 '.J2012 U201.3 Lj 2014 U?015 U2016 LJ20.17 U2018 3 11/1/2018 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 36 Average Daily Demand Each Month 32 x. 28 24 r. a 20 L9 E: > h I o_ 16 m 12 �p _ b 4 I _ j a p ... ` October November December January February Mar•-h April May Jure July August September FY-13 Potable Water m FY-14 Potable Water w FY-15 Potable Water m FY-16 Potable Water .4 FY-17 Potable Water w FY-18 Potable Water w Reuse Water 4 11/1/2018 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 911 over the past ten years. Single-family permits have increased by 240 permits over the past year due to new subdivisions available within the City. Most of the activity is in the Vizcaya, Mayfield Ranch, Glen Ellyn, Concord, Pioneer Point, Diamond Oaks, Chandler Creek, Freeman, Centerra and Madsen Ranch subdivisions. Several Municipal Utility Districts (MUDs) located in Round Rock's extra-territorial jurisdiction (ETJ) continue to experience a steady number of single-family housing starts during this time as well. Figure 4 Annual Single-Family Building Permits Issued Residential & MUDs 1100 1076 1000 900 800 780 718 700 677 6005£1 591 556 526 535 500 400 338 300 p 200 :K 100 . : 0 W......... Al __ FY-2009 FY-2010 FY-2011 FY-2012 FY-2013 FY-2014 FY-2015 FY-2016 FY-2017 FY-2018 A Round Ruck i PaI01TId MUD#1. A Palorna MUD 92 X Tera Vista#10 1 Tera Vista#1.1 A Walsh Ranch 5 11/1/2018 Table 1 represents the number of multi-family building permits issued annually. Currently, there are three multi-family complexes, Ace Apartments, Shadow Ridge, and Holly Brook Apartments, under construction. Several other multi-family projects are in review. Table 1 3^ Year Units Permitted i 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 LUES) FY 2014 334 (63.5 LUES) FY 2015 792 (302 LUEs) FY 2016 608 (157 LUEs) FY 2017 330 (170 LUEs) FY 2018 652 (327.5 LUEs) 6 11/1/2018 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 60 permits annually. Table 2 Commercial Fiscal Year Building Permits 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 25 (168 LUEs) FY 2018 43 (220.5 LUEs) In FY-17, commercial growth continued to be strong, even though the number of permits was down. Many of the permits issued in FY-17 were larger projects such as UPS. Forty-three commercial permits were issued in FY-18. Current permits are mostly hotels, convenience stores, office buildings, retail stores, and restaurants. 7 11/1/2018 Table 3 and Figure 5 summarize the impact fees collected from FY-14 through FY-18 for residential and commercial building permits. There has been a significant increase in the amount of impact fees collected during this time due to the construction in single-family residential, multi-family residential and commercial developments. Table 3 ............................. ..... ............................................................................... ............................................................................... ...................................................................................... . ...... .. . .. .... . ................................................. •. 6 FY-17 FY-18 Residential Water $ 961,767 $ 1,616,580 $ 1,516,823 $ 2,812,465 $ 3,830,017 _.._. _...... w , ._......,.............. ._...... .... ........._.._...... .................................. Commercial Water $ 941,463 $ 2,273,857 $ 2,342,2.70 $ 915,617 $ 2,399,541 Wholesale Water $ 11163,887 $ 1,035,951 1 117 590 $ 692,763 �.._.. $ � $ 818,121 $ Residential Sewer $ 322,936 $ 618,240 $ 701,551 $ 1,201,518 $ 1,905,615 Commercial Sewer $ 398,361 $ 1,084,193 $ 1,020,587 $ 935,750 $ 1,102,400 Wholesale Sewer $ 920,972 $ 1,304,686 $ 1,529,096 $ 11532,360 $ 639,776 -------------- Total Collected $4,709,386 $71933,507 $81227,917 $8,215,831 $10,5701111 8 11/1/2018 Figure 5 Impact Fees Collected FY 2014 - 2018 $12,000,000 $10,5701111 $10,000,000 _ $8,227,917 $7,933,507 -.-$8,215..831 $8,000,000 $6,000,000 $4,709,386 $4,000,000 - I $2,000,000 $L5 t Y FY-14 FY-15 FY-16 FY-17 FY-18 A Residential Water a Commercial Water Wholesale Water I Residential Sewer Commercial Sewer Wholesale Sewer 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 the FY-18 new connections to our water and wastewater systems are slightly higher than projected. 9 11/1/2018 Table 4 provides population projections for Round Rock and Round Rock's ETJ. 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, 2012-2018 estimates, shown in parenthesis, indicate a slightly slower growth rate than projected. Table 4 Inside City City's ETJ' Year Proiection_s T Growth Rate ' Proiections Growth Rate _.__. _. mm _... 2010 (Census) 99,887 - 141,807 - 2011 100,659 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 113,968 / (107,117) 2.9% (1.9%) 165,024 2.9% 2017 1171160 / (110,300) 2.8% (3.0%) 169,213 2.5% 2018 120,440 / (113,390) 2.8% (2.8%) 173,490 2.5% 2019 123,812 2.8% 177,859 2.5% 2020 127,279 2.8% 182,323 2.5% 2021 130,461 2.5% 186,062 2.1% 2022 133,723 2.5% 189,881 2.1%� 2023 137,066 2.5% 193,508 1.9% 2024 1401492 2.5% 197,218 1.9% 2025 143,302 2.0% 2001312 1.6% �ppn 2026 1461168 2.0% 203,462 1.6% 2027 149,092 2.0% 206,670 1.6% 2028 152,073 2.0% 209,651 1.4% 2029 155,115 2.0% 212,693 1.5% 2030 158,217 2.0% 215,795 1.5% Notes: 2010 is the base year for these projections ( ) Annual Estimates by Planning & Development Services Department 10 11/1/2018 Table 5 summarizes the Water System (impact fee eligible) 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 Impact Fee ReportEstimated Cost Actual Cost BCRUA Treated Waterline - Ph 1 Seg. 3 ! 2015 $8,400,000 $8,749,000 University Blvd Waterline Ph 1 2015 $3,634,169 $1,877,000 ................._...................................................................................--_.._.................._............._.............__................ _....__..._..._._.. .. _ ...__.._._._._.._...._.....__._._._.._._......... _.... _ ___._......_...._.._........._..._._..._................. _-_..._..._..__..--._...__...__..._............ Parcel 150 2015 $2,955,650 $3,144,000 ............____-...........__._......._._.._ __ ___ _.__.._ _ __.__....__._.__.. CR 112 Phase 2 - 24" Waterline (890 PP) 2015 $1,188,049 $888,000 Water Dist. Master Plan & I act Fee 2015 p � $138,000 $141,000 _ .................._.........................................._..__._._._ . ..__..._---------- ....._............... ..... .....--------- _.. Creek Bend 12" Waterline 2016 $415,000 $415,000 ...... ......... ....... ..........._........_..... Arterial H Waterline 2017 $856,400 $162,460 BCRUA Water Treatment Plant - Ph 1B ( 2018 $34,000 $31,000 $17,621,268 $15,407,460 Water Projects In Progress Completion Impact Fee Report Updated Actual Estimated Cost Cost South 81 Elevated Storage Tank Pump 2018 $157,000 $1,070,900 Arterial H Phase II 2019 $1,470,500 $2,041,000 .............................................................. BCRUA Water Treatment Plant - Ph IC 2020 $4,465,000 $4,152,000 Arterial A Waterline - 24" (Kenny Ft. Blvd.) 2022 $5,024 000 $5,024,000 $11,116,500 $12,287,900 11 11/1/2018 Upcoming Water Projects Estimated Impact Fee Report Updated Completion Estimated Cost Estimated Cost Water Dist. Master Plan & Impact Fee 2019 $66,000 $150,000 South Creek Waterline 2020 $1,604,000 $1,604,000 Palm Valley Waterline 2020 $1,180,000 $1,1801000 Avery Center East 2020 $4,160,000 $41160,000 Southeast Red Bud Lane Waterlines 2021 $629,000 $629,000 ...........................-..........................................................................._..................................................................................._.__..._ _...._._._._ ................................................................._.__..__.._.__..._._......._._._.�.__._.._._.._.. _..__......._......._ _._...............__------._...._-_........ Brenda Lane Waterlines ! 2021 $2,074,000 $2,074,000 . _._..._._.. ___.._...........___.._._..__............................__............_.....__.............._ _ .... _...__ ....__ -----__..._._...._____ Palm Valley Phase II 2021 $1,002,000 $1,002,000 _ Meadow Lake Lines 2022 $2,367,000 $2,624,000 _--------------------_____...__________..........________...._____ Saddle Brook Waterlines 2022 $629,000 $697,000 Water Dist. Master Plan & Impact Fee 2022 $148,000 $154,,000 Gattis School Road 2023 $1,130,600 $5,653,000 Round Rock Glen Waterlines 2024 $2,715,000 $2,715,000 _............................................................................................._...._. .. ....... . East Loop II 2024 $7,795,000 $7,795,000 South Creek Phase II 2024 $2,419,000 $2,419,000 Water Dist. Master Plan & Impact Fee 2024 $75,000 $75,000 .......--_-_-__....._.._..._............................................................._............._........................................................................................ ......_.._.__.._._.....__.._..._..............................................._............-----............_................................................................._.._._.................. ..__..__..._......_..........--_..._.......__...._......_._. Water Dist. Master Plan & Impact Fee 2025 $158,000 $158,000 2.0 MGD Elevated Storage Tank (PP 890) 2025 $7,138,000 $7,138,000 BCRUA Water Treatment Plant — Ph 1D ! 2025 $12,905,000 $12,905,000 ........................................................................................................................................................................_....................... ......................._.._.__........_.._...__......_........................................_............._............._._......_..._..........._._..._....._....................................... _...._...._._..............__.._._...._......_..__.. __........._._...... BCRUA Intake & RW Line Ph 2A, Seg. I 2026 $57,895,705 $57,895,705 ....................... __..____............_._......................_..........I................._...._._.___._....__.................._...........-.._..._.._.........._...._.._.._.. .___. Sam Bass Phase I 2026 $14,469,000 $14,469,000 East Loop III 2027 $7,171,000 $7,171,000 West Loop 2028 $17,818,000 $17,818,000 _._..._._.__._._._............_........_ _.......__._.._._......._ _ _ _._.........____..._.__._......_....._......._....I.........-........-._._.....__.... ................................ .............._................... _._.__._...._............................................................._. Sam Bass Phase II 2030 $1,578,000 $1,578,000 $147,126,305 $152,063,705 12 11/1/2018 Table 6 summarizes the Wastewater System (impact fee eligible) 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 ' Impact Fee Report Actual Cost Estimated Cost McNutt Creek C3 2014 $1,191,000 $940,000 M —_._.__.___._._...___.._._._.._____ McNutt Creek C9 2015 ......... $2,046,000 $1,471,000 Chandler Creek 1 (Upper) 2015 $552,000 _ $573,000 Lake Creek 2 2017 $2,652,000 $1,916,000 - ..............__...........................___...... Lake Creek 3 2017 $591,000 $563,000 McNutt Creek C2 (referred to as C5) 2018 $1,324,000 $1,762,000 .............._...._........__... ._............. Brushy Creek 5 2018 $288,000 $282,618 $8,644,000 $7,507,618 Impact Fee Report Updated Completion Wastewater Projects in Progress ! Estimated Cost Actual Cost f Brushy Creek^2 2019 $685,000 $349,000 Brushy Creek 4 2019 $173,000 $173,000 ......................................................................_.._........._....._.._..._.....__..........._.__........_.. .....__...._...._._....._._..._ _ ........._._._.............. ........................................ _._.._.._.._........_...._............................................................._...................__.......--____.............___..........._........................ .... Lake Creek 1 2019 $1,995,000 $2,400,000 WWTP Expansion 1 2022 $41,600,000 $30,053,500 ---------_........_._....._._._..._......_.._.._._....___._.._._.._......_.___._.._.._........._......_.................................._.........._..._.............................. ............................ *Gattis School WW Extension 2019 $1,100,000 $1,100,000 ..*._..........._....._........_....._.__.__......_........._.._..__.............._............._.._.._........___..............______._.._.___...__.._........._..____._.__...__._ __._.__._.._._.._._..._.._.._...._..._._� _.._...__...__.__.....__.._......_.._..__._..____..........____................. Lake Creek 10 2020 $642,000 $642,000 *Lake Creek 11 2020 $1,112,000 $1,112,000 _..._..__.............................................................._............._.....__...._................... _.__...___.._.._....._........_........___._....__....._._ .t_._.__-___............_. $44,453,000 $32,975,500 * Not included in current impact fee calculation, will be included in upcoming calculation. 13 11/1/2018 14 |u1/2o0 Table 7 summarizes the Reuse Water System (impact fee eligible) 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. Completed Reuse Projects Completion Impact Fee Report Actual Cost Estimated Cost Reuse Phase II 2015 $2,108,500 $2,108,500 Reuse Phase VI 2016 $900,000 $900,000 .................................................................................................__._......_ _ ._.._... Reuse Phase IV-B 2016 $3,719,000 $3,013,152 Forest Creek Golf Course Reuse Rehab 2016 $150,000 $83,890 . ....._...................._.............._._. $6,877,573 $6,105,542 Upcoming Reuse Projects Estimated Impact Fee Report Updated Completion Estimated Cost Estimated Cast Reuse Phase V - Stony Point High School 2022 $5581376 $600,000 $558,376 $600,000 15 11/1/2018 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 .5200 $283.03 Single-Family Residential $1.80 Water and Wastewater Rates Comparison $160 $156.42 (monthly cost)* $144.25 5140 S 125.83 $120 $115.60 $113.82. $100 $98.22 $96.90 $92.45 $90.70 585.45 $82.51 S80 570.60 $63.80 $63.65 $60 $40 .. $20 w0 o �at'Q' ^� t i3_11, co a Water a Wastewater * assumes 10,000 gallons water & 8,000 gallons wastewater used 16 11/1/2018 Table 8 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 8 Area Impact Fee Comparison Mst U pd rted Water Wastewater Manville WSC 2008 $2,800 n/a , $2,800 Brushy Creek MUD 2012 $2,095 $1,804 $3,899 Cedar Park 2013 $2,250 $2,000 $4,250 Hutto 2013 3,625 $2,128 $5,753 4 � ; Jonah Water SUD 2013 $5,000 $1,068 $6,068 Round Rock 2016 $4,025 $2,099 $6,124 San Marcos 2018 $3,801 $2,684 $6,485 A Pflugerville 2014 i $4,241 $2,725 $6,966 I Leander 2017 $4,309 $2,820 $7,129 i Austin 2014 $5,400 $2,200 $7,600 } Georgetown 2017 $7,039 $2,997 $10,036 { 17 11/1/2018 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 to four years so that the fees are set according to the growth patterns and needs of the water and wastewater utility system improvements. It is anticipated that we will update our Water and Wastewater Master Plans in 2019. Following the Master Plan update, we will review our adopted impact fees. The next Capital Improvements Plan Progress Report will be presented to the CIAC and to the City Council in approximately six months. 18 11/1/2018