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R-2020-0138 - 5/28/2020 RESOLUTION NO. R-2020-0138 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 28th day of May, 2020. CRAIG OR XN, Mayor City of Roun Rock, Texas ATTEST: %QkloktW� SARA L. WHITE, City Clerk 0112.20202;00446532 EXHIBIT Y rROUnND� ROCK TEAS NVIRONMENTAL SERVICES 'RoundCity of Rvock Utififtwies Envimronmentall Servilces Department Capital Improvements Plan Prog ress Semi -Annual Report ay SUMMARY The Local Government Code Section 395.058 requires the Capital Improvement Advisory Committee (CIRC) 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, 2019, to March 31, 2020. This report consists of an assessment of the actual growth rate in comparison to the projected growth rate, the status update of capital improvement projects, and the Impact Fees collected during the reporting period. The local government code also requires the CIAC 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 4/30/2020 Figure 1 shows the groundwater and surface water produced along with the number of active water services over the past two years. Although the City continues to grow, the total water production remains relatively steady. Water usage is highly dependent on weather patterns; however, the City's conservation and reuse water programs are also making an impact. Figure 1 Water Treatment Plant 3,000 37 2,500 36 Ln Ln 0 2,000 35 F- 34 34 u � 1,500 1 _ _0 Ul 0 j a) a I 33 ��— w U c 1,000 0 L 32 n E 0 j z 500 31 _ 0 3rd Qtr FY'18 4th Qtr FY'18 1st30 34816 Qtr FY'19 2nd Qtr FY'19 3rd Qtr FY'19 4th Qtr FY'19 1st Qtr FY'20 2nd Qtr FY'20 ®Active Services 34403 34900 35106 35157 35377 35664 35821 *-*`Groundwater 170,164,000 139,894,000 46,990,000 123,343,000 193,321,000 318,293,000 184,333,000 197,829,000 osso—Surface Water 1,849,031,000 2,257,593,000 1,291,589,000 1,119,280,000 1,451,880,000 2,497,480,000 1,535,740,000 1,125,756,0,00- 2 4/30/2020 Figure 2 reflects the daily average of potable water produced each month over the past ten years. Total water production is dependent on weather conditions; therefore, discretionary water usage is higher during the summer months. Figure 2 Average Potable Daily Demand Each Month 40 35 30 25 � s 7 s 0 20 15 10 de ee 5 0 Jan Feb 'Mar Apr May Jun Jul Aug Sep Oct Nov Dec m2010 ■2011 w2012 w2013 12014 a 2015 Lj,2016 Lj2017 -j2018 ;2019 -,2020 3 4/30/2020 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. The City has since expanded the system to Forest Creek HOA, Legends Village Subdivision, Austin Community College, Texas A&M Health Science Center, and 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 � 'µ ! 20I i 0 16 q 12 I i II'i 4 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept El FY-13 O FY-14 C7 FY-15 ❑FY-16 ❑FY-17 ■FY-18 0 FY-19 ❑FY-20 ■Reuse Water 4 4/30/2020 Figure 4 shows the number of new single-family building permits issued in the City of Round Rock and the City's extra-territorial jurisdiction (ETI) over the past ten years. The number of new housing starts per year in the City has ranged from 222 to 911 annually. Single-family permits have slowed down from FY-19, where 849 permits were issued, verses 313 permits issued for the first half of FY-20. Most of the activity is in Madsen Ranch, Saul's Ranch, Vizcaya, Cottages at Meadowlake, Diamond Oaks, Legends Village, Reserve at Wyoming Springs, and Warner Ranch Duplexes. Several Municipal Utility Districts (MUDS) located in Round Rock's ETJ, as noted in Figure 4, continue to experience a steady number of new housing starts during this time as well. Figure 4 Annual Single-Family Building Permits Issued Residential & MUDs 1600 1512 1511 1400 1328 1200 1042 1051 1000 800 676 581 615 600 556 577 400 338 200 o FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 (Oct-Mar) �iRound Rock r�Paloma #1 Paloma #2 ioTera Vista #10 }Tera Vista #11 Walsh Ranch Siena #1 Siena #2 5 4/30/2020 Table 1 represents the number of multi-family units permitted annually. Currently, there are three multi-family complexes under construction, Aura Avery, Hollybrook, and The Plaza. There has been only one multi-family complex permitted within the past six months, which is Aura Avery. Table 1 Fiscal Year Multi-Family Units 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) FY 2019 432 (218 LUEs) FY 2020 (Oct-Mar) 356 (178 LUEs) 6 4/30/2020 Table 2 reflects the number of new commercial building permits issued annually. This number has been steady, ranging from 20 to 60 annually; however, the past six months show a slight downward trend. 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 (2 02 LUEs) FY 2016 63 (442.5 LUEs) FY 2017 25 (168 LUEs) FY 2018 43 (220.5 LUEs) FY 2019 50 (262 LUEs) FY 2020 (Oct-Mar) 20 (67.5 LUEs) Current permits are mostly hotels, convenience stores, and retail strip centers with large industrial facilities. 7 4/30/2020 Table 3 and Figure 5 summarize the Water and Wastewater Impact Fees collected for residential and commercial permits within the City, as well as permits issued in the wholesale customer areas. For the past five years, there was a significant increase in the total amount of Impact Fees collected due to the construction of single-family residential, multi-family residential, and commercial developments. However, for the first half of FY-20, we see a decrease in total Impact Fee collections versus the previous years. Table 3 Impact Residential Water $1,616,580 $1,516,823 $2,812,465 $3,830,017 $2,770,650 $1,155,303 Residential Wastewater $618,240 $701,551 $1,201,518 $1,905,615 $1,381,154 $506,836 Commercial Water $2,273,857 $2,342,270 $915,617 $2,399,541 $2,750,040 $395,280 Commercial $1,084,193 $1,020,587 $567 288 $1,102,400 $1,701,974 $145,881 Wastewater Wholesale Water $1,035,951 $1,117,590 $818,121 $692,763 $639,567 $249,278 Wholesale Wastewater $1,304,686 $1,529,096 $1,532,360 $639,776 $1,650,108 $813,587 Total Collected $7,933,507 $8,227,917 $7,847,369 $10,570,111 $10,893,493 $3,266,165 8 4/30/2020 Figure 5 Impact Fees Collected FY 2015 - 2020 $12,000,000 $10,570,111 $10,893,493 $10,000,000 $8,000,000 $7,933,507 $8,227,917 $6,000,000 $4,000,000 - $3,266,165 $2,000,000 - FY-15 FY-16 FY-17 FY-18 FY-19 FY-20 (Oct-Mar) ■Residential Water ■Commercial Water r,Wholesale Water w Residential Wastewater w Commercial Wastewater Wholesale Wastewater 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's growth rate was 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 M pact FCes If the City's growth rate was as projected. Comparing these assumptions to the actual Impact Fees collected indicates that the number of new connections to our water and wastewater systems for the first half of FY-20 is slightly lower than projected. 9 4/30/2020 Table 4 provides population projections for Round Rock and Round Rock's ETJ. These projections, anticipating a steady growth rate, indicate that to keep up with growth, capital improvements to the City's water and wastewater utility systems would be necessary. However, the annual estimates, shown in parenthesis, convey a slower growth rate in the City limits than projected. The 2020 Census will allow us to reset the population projections going forward. Table 4 Inside City City's ETJ Year Projections _ Growth Rate Projections Growth Rate_ 2010 (Census) 991887 - 141,807 - 2011 100,659 0.8% 143,960 1.5% 2012 1021349 (101,702) i 1.7% (1.0%) 147,027 2.1% 2013 104,805 (102,349) 2.4% (0.6%) 151,133 2.8% 2.014 107,635 (103,494) 2.7% (1.1%) 155,613 3.0% 2015 1101757 (105,405) 2.9% (1.9%) 160,385 3.1% 2016 113,968 (107,117) 2.9% (1.9%) 165,024 2.9% y 2017 117,160 (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 (117,169) 2.8% (3.3%) 177,859 2.5% 2020 127,279 (117,801) 2.8% (0.5%) 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 140,492 2.5% 1971218 1.9% 2025 1431302 2.0% 2001312 1.6% 2026 146,168 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% 2121693 1.5% 2030 158,217 2.0% 1 215,795 1 1.5% Notes: 2010 is the base year for these projections ( ) Annual Estimates by Planning & Development Services Department 10 4/30/2020 Table 5 summarizes the status of the Water System (Impact Fee eligible) Capital Improvement Projects included in the last Impact Fee analysis conducted in November 2015. Table 5 Completed Water Projects Completion Impact Fee Report Actual Cost Estimated Cost BCRUA Treated Waterline - Ph i 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 $31144,000 CR 112 Phase 2 - 24" Waterline (890 PP) 2015 $1,188,049 $888,000 Water Dist. Master Plan & Impact Fee 2015 $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 South 81 Elevated Storage Tank Pump Station 2019 $157,000 $1,070,900 $17,778,268 $16,478,360 Water Projects In Progress Completion Impact Fee Report Actual Cost Estimated Cost Arterial H Phase II 2020 $1,470,500 $1,465,000 BCRUA Water Treatment Plant - Ph 1C 2020 $4,465,000 $4,363,400 Water Dist. Master Plan & Impact Fee 2020 $66,000 $220,570 Arterial A Waterline - 24" (Kenny Ft. Blvd.) 2022 $5,024,000 $5,024,000 Sam Bass Phase I 2023 $14,469,000 $14,469,000 BCRUA Intake & RW Line Ph2A, Seg. 2026 $57,895,705 $57,895,705 $83,390,205 $83,437,675 11 4/30/2020 Upcoming Water Projects Estimated Impact Fee Report Completion Estimated Cost Sam Bass Phase II 2023 $1,578,000 Avery Center East 2023 —��$4,160,000 Saddle Brook Waterlines 2023 $629,000 Palm Valley Waterline 2024 $1,180,000 Palm Valley Phase II 2024 $1,002,000 Water Dist. Master Plan & Impact Fee 2024 $148,000 Brenda Lane Waterlines 2025 $2,074,000 East Loop II - 2025 I $7,795,000 South Creek Waterline 2025 , $1,604,000 2.0 MGD Elevated Storage Tank (PP 890) 2025 $7,138,000 Southeast Red Bud Lane Waterlines 2026 —i $629,000 Meadow Lake Lines 2026 $2,367,000 Round Rock Glen Waterlines 2026 $2,715,000 South Creek Phase II 2027 $2,419,000 Gattis School Road 2027 $1,130,600 BCRUA Water Treatment Plant - Ph 1D 2027 $12,905,000 Water Dist. Master Plan & Impact Fee 2027 $158,000 East Loop III 2028 $7,171,000 West Loop 2028 $17,818,000 Water Dist. Master Plan & Impact Fee 2030 $75,000 $74,695,600 12 4/30/2020 Table 6 summarizes the status of the Wastewater System (Impact Fee eligible) Capital Improvement Projects included in the last Impact Fee analysis conducted in November 2015. Table 6 Completed Wastewater Projects Completion Impact Fee Report Actual Cost Estimated Cost McNutt Creek C3 2014 $1,191,000 $940,000 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 i $2821,618 Brushy Creek 2 2019 j $685,000 $349,000 Brushy Creek 4 2019 $173,000 $173,000 *Gattis School WW Extension 2019 $1,100,000 $9,502,000 $8,029,618 I Impact Fee Report Wastewater Projects in Progress I Completion Estimated Cost Actual Cost Lake Creek 1 2021 $1,995,000 $2,400,000 WWTP Expansion 1 2023 $41,600,000 $15,8001000 *Lake Creek 10 2020 $233,444 *Lake Creek 11 2020 $466,889 $43,5951,000 $18,200,000 * Not included in current impact fee calculation will be included in the upcoming calculation. 13 4/30/2020 Upcoming Wastewater Projects Estimated ! Impact Fee Report Completion Estimated Cost McNutt Creek C10 2021 $1,014,000 McNutt Creek C4 2022 $734,000 Lake Creek 4 2022 $2,235,000 Chandler Creek 2 2023 $520,000 McNutt Creek D2 2023 $3,678,000 McNutt Creek 15 (referred to as 12) 2024 $528,000 McNutt Creek C12 2024 $949,000 Spanish Oak 1 2025 $1,492,000 Chandler Creek 3 2025 $7531,000 McNutt Creek D4 2025 $11394,000 Hilton Head LS 2026 _ _ $11,000 Forest Creek LS 2026 $1,211,000 Forest Creek 2 2026 $2,148,000 Onion Creek 1 2027 $359,000 SE Annex LS 2027 $8201000 i McNutt Creek C6 2027 $207,000 Onion Creek 2 2027 $214,000 McNutt Creek D5 2028 $691,000 Mayfield Park 2 2028 $1,960,000 McNutt Creek C8b 2028 $823,000 Mayfield Park 1 2028 $393,000 Stone Oak LS 2028 $295,000 $22,429,000 14 4/30/2020 Table 7 summarizes the status of the Reuse Water System (Impact Fee eligible) Capital Improvement Projects included in the last Impact Fee analysis conducted in November 2015. Completed Reuse Projects Completion Impact Fee Report Actual Cost Estimated Cost Reuse Phase II i 2015 $2,108,573 $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 Completion Estimated Cost Reuse Phase V - Stony Point High School 2022 $558,376 $558,376 15 4/30/2020 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 Monthly Comparison* 5200 --- $183.03 $180 - - $160 $155.02 $150.05 $140 $123.75 5120 $115.60 $113.82 $100 $98.22 $97.10 $92.45 $91.38 $85.70 582.51 $80 $72.10 $65.10 $65.00 $60 $40 $20 _ I _. $0 - _ Hutto Austin San Leander Paloma Walsh Vista Pflugerville Cedar Teravista Fern Round Brushy Brushy Georgetown Marcos 1&2 Ranch Oaks Park 10&11 Bluff Rock Creek Creek (Jun-Sept) (Oct-May) ■Water ■Wastewater * assumes 10,000 gallons water and 8,000 gallons wastewater used 16 4/30/2020 Table 8 compares Round Rock's Water and Wastewater Impact Fees to surrounding cities and Municipal Utility Districts. Historically, Round Rock had one of the highest total Impact Fees charged for new connections to the water and wastewater systems. However, over the past few years, several of the surrounding cities have increased their fees and 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 ImpactArea ee Comparison Last City/Utility Water Wastewater : Total Updated Brushy Creek MUD 2012 $2,095 1 $1,804 $3,899 Cedar Park 2014 $2,250 $2,000 $4,250 j Hutto 2018 $3,625 $2,128 $5,753 s Round Rock 2016 $4,025 $2,099 $6,124 San Marcos 2018 $3,801 2 684 $6,485 Pflugerville 2014 $4,241 $2,725 $6f966 Leander 2017 $4,309 $2,820 $7,129 Austin 2018 $4,700 $2,500 $7,200 Georgetown 2018 $6,921 $3,115 $10,036 17 4/30/2020 CONCLUSION AND RECOMMENDATIONS The CIAC and City Council approved the current Impact Fees, which went into effect on March 11 2016. Although the population growth in Round Rock is slightly lower than projected in the Impact Fee analysis, the number of connections to the water and wastewater systems over the past several years had been occurring as anticipated by the City. However, over the past six months, the number of building permits issued has slightly declined. Due to the volatility in growth rates and infrastructure requirements, the City recommends the Impact Fees be reviewed every three to four years. In September 2019, the City commenced with updating the Water and Wastewater Master Plans and anticipates completion around September 2020, followed by updating our current Impact Fees. The updated Impact Fees should be presented to the CIAC in October/November 2020. The next Capital Improvements Plan Progress Report will be presented to the CIAC and the City Council in approximately six months. 18 4/30/2020