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R-2022-182 - 5/26/2022 RESOLUTION NO. R-2022-182 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 26th day of May, 2022. 11,41 CRAIG l R " , Mayor City of Round ock, Texas ATTEST: 4.�P MEAGAN S I KS, (TiClerk 0112 20222,4883-1724-8031 EXHIBIT "All Capital Improvements Plan Progress Semi-Annual Report May 2022 ROUND ROCK TEM5 UTILITIES ANO ENVIRONMENTAL SERVICES 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, 2021, to March 31, 2022. This report consists of assessing 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 on updating the land use assumptions, capital improvements plan, and Impact Fees. These items were last updated by the City in November 2020. 1 Figure 1 shows the groundwater and surface water produced and 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 significant factors impacting water usage. Figure 1 Water Treatment Plant 2,500 —_ 38 37 2,000 - 36 N N C C 05 1,500 3 C 34 � C u N 6 1,000 33 u O a y O _ 32 7}, M 500 4 31 0 3rd Qtr FY'20 4th Qtr FY'20 1st Qtr FY'21 2nd Qtr FY'21 3rd Qtr FY'21 4th Qtr FY'21 1st Qtr FY'22 2nd QtrFY'22 30 ®Active Services 35979 36045 36123 36237 36328 36439 36679 36914 +Groundwater 324,375,00D 356,849,000 262,705,000 323,949,Q0D 304,168,000 7 329,234,000 122,548,000 86,114,000 =OwSurfaceWater 1,566,909,000 2,190,844,000 1,588,619,000 1 1,124,305,000 1,507,802,000 1 2,011,458,000 1,566,460,000 1,305,889,000 2 Figure 2 reflects the daily average of potable water produced each month over the last five 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 0 7o c 20 0 15 10 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■2018 0 2019 hi 2020 ■2021 d 2022 3 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, Forest Grove and Vizcaya Subdivisions, and the newly opened Kalahari Resort. The City continues to promote reuse water 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 35 30 25 0 20 M t7 c a = 15 10 5 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept ■FY-18 ■FY-19 ■FY-20 ■FY-21 ❑FY-22 ■Re use 4 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 (ETJ). Over the past five years, new single-family housing starts in the City have ranged from 556 to 929 per year. Single-family permits issued have continued to increase to an average of about 90 permits per month over the past six months. Most of the current construction activity is in the northeast part of Round Rock in the Vizcaya, Salerno, Quick Ranch, Homestead, and University Heights Subdivisions. There is also new single-family construction occurring in other parts of the City in the Chisholm Trail Park, Preserve at Wyoming Springs, and Clear Creek Subdivisions. Townhomes under construction include Sonoma Townhomes, Schulz Townhomes, Townhomes at Gattis School Road, The Depot, and Tiger Trail Townhomes. Most of the Municipal Utility Districts (MUDS) in Round Rock's ETJ are nearing buildout; however, as noted in Figure 4, Siena MUD No. 2 continues to experience a steady number of new housing starts. Figure 4 Annual Single-Family Building Permits Issued Residential &MUDS 1800 1600 1512 1511 1400 1200 1121 1043 1000 800 600 547 400 200 a FY-18 FY-19 FY-20 FY-21 FY-22 ■Round Rock ■Paloma #1 Paloma #2 ■Teravista#10 -°Teravista#11 Siena #1 Siena #2 5 Table 1 reflects the number of multi-family units permitted annually. Currently, there are four multi-family complexes in plan review and six complexes under construction. These include two Legacy facilities on University Boulevard and Red Bud Lane, Warner Ranch, Crossing at Palm Valley, Round Rock Phase 2 behind the outlet mall, and Arrington Ridge. Table 1 In-City Retail Fiscal Year Multi-Family Units FY 2018 652 (327.5 LUEs) FY 2019 432 (298 LUEs) FY 2020 430 (196.5 LUEs) FY 2021 584 (391.5 LUEs) FY 2022 (Oct-Mar) 577 (364 LUEs) Out-of-City Wholesale Fiscal Year Multi-Family Units FY 2022 (Oct-Mar) 522 (305.4 LUEs) 6 Table 2 reflects the number of new commercial building permits issued annually. This number has been steady, ranging from 25 to 50 annually, and commercial development in the City continues to trend upward. Current permits are mostly office property and light industrial. There are also permits in for hotels, small retail, and restaurants. Table 2 Fiscal Year Commercial Building Permits FY 2018 43 (220.5 LUEs) FY 2019 50 (262 LUEs) FY 2020 44 (950.5 LUEs) FY 2021 39 (161 LUEs) FY 2022 (Oct-Mar) 15 (58 LUEs) 7 Table 3 and Figure 5 summarize the Water and Wastewater Impact Fees collected for In-City retail residential (single-family and multi-family) and commercial customers and Out-of-City wholesale customers. From FY-17 to FY-19, there was an increase in the total Impact Fees collected due to new developments; however, FY-20 showed a significant decrease attributed to the virus pandemic. FY-21 indicates that the Impact Fee collections in the City trended upward to prior FY-20 amounts, and Out-of-City wholesale decreased in FY-21 mainly due to the buildout of many of the MUDs. Table 3 Impact Fees • In-City Retail Residential $3,830,017 $2,770,650 $2,008,822 $2,649,580 $1,273,518 Water Residential $1,905,615 $1,381,154 $930,467 $1,296,554 $994,846 Wastewater Commercial $2,399,541 $2,750,040 Water $1,752,110 $2,934,225 $2,188,594 Commercial $1102,400 $1,701,974 $461,347 $1,457,580 $1,052,124 Wastewater Out-of-City Wholesale Water $692,763 $639,567 $406.253 $114,713 $32,200 i Wastewater $639,776 $1,650,108 $895,448 $20,711 $655,443 Total $10,570,111 $10,893,493 $6,454,447 $8,473,363 $6,196,725 i Collected ' 8 Figure 5 Impact Fees Collected FY 2018 - FY 2022 $12,000,000 $10,570,111 $10,893,493 $10,000,000 $8,473,362 $8,000,000 $6,454,447 $6,000,000 $4,534,566 $4,000,000 $2,000,000 $0 FY-18 FY-19 FY-20 FY-21 FY-22 (Oct-Mar) ■Residential Water ■Commercial Water ■Wholesale Water ■Residential Wastewater Commercial Wastewater ■Wholesale Wastewater During the latest water model update in 2020, the City assumed that 1,433 LUEs per year would be added to the water system.At an Impact Fee of$4,234 per LUE, this would indicate that the City should be collecting approximately $6.07 million per year in Water Impact Fees if the City's growth rate is as projected starting in FY-21. In addition, the wastewater model update assumed that 1,027 LUEs would be added to the wastewater system per year. At an Impact Fee of $1,799 per LUE, this would indicate that the City should be collecting approximately $1.85 million per year in Wastewater Impact Fees if the City's growth rate is as projected in FY- 21. Comparing these assumptions to the actual Impact Fees collected indicates that the number of new connections to our water and wastewater systems for FY-21 occurred as expected. 9 Table 4 provides population projections for Round Rock and Round Rock's ETJ. These projections, anticipating a steady growth rate, indicate that capital improvements to the City's water and wastewater utility systems would be necessary to keep up with growth. The annual estimates, shown in parenthesis, convey a slower growth rate in the City limits than projected by the City in 2010. However, recent new permits for single family and multi-family projects indicate that we should "catch back up" to the trend initially projected. Table 4 Year •- City's ETJ • - • . MOF - Projections Growth Rate 2020 (Census) 127,279(119,468) - 182,323 - 2021 130,461 (122,827) 2.4 % (2.7%) 186,062 2.0% 2022 133,723 (124,614) 2.4% (1.4%) 189,881 2.0% 2023 137,066 9.1% 193,508 1.9% 2024 140,492 2.4% 197,218 1.9% 2025 143,302 2.0% 200,312 i 1.5% 2026 146,168 2.0% 203,462 1.5% 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 1.4% 2030 1158,217 1 2.0% 215,795 1 1.4% Notes: 2010 is the base year for all projections in this table ( }Annual Estimates by Planning &Development Services Department 10 Table 5 summarizes the status of the Water System (Impact Fee eligible) Capital Improvement Projects included in the November 2020 Impact Fee Analysis. Table 5 Completed Water Projects Completion Impact Fee Report Actual Cost Estimated Cost Creek Bend 12"Waterline 2016 $415,000 $415,000 Arterial H Waterline 2017 $856,400 $162,460 BCRUA Water Treatment Plant- Ph 1 B 2018 $34,000 $31,000 South 81 Elevated Storage Tank Pump Station 2019 $157,000 $1,070,900 Arterial H Phase II 2020 $1,470,500 $1,375,045 BCRUA Phase 1 C -WTP Expansion to 32MGD 2020 $4,465,000 $3,635,540 Water Dist. Master Plan & Impact Fee 2020 $66,000 $220,570 GR-05: University Blvd extension from end of 36- 2022 $1,150,000 $775,481 inch main to CR-110 $8,613,900 $7,685,996 Water Projects In Progress Completion Impact Fee Report Actual Cost Estimated Cost GR-01: E Liberty Ave, N Shephard St& Fannin 2022 $500,000 $938,983 Ave GR-02: Kenny Fort Blvd from Forest Creek Blvd 2022 $1,570,000 $1,787,073 to SH45 GR-03: Kenny Fort Blvd from Old Settlers to 2024 $2,450,000 $4,325,000 Chandler Creek GR-04: Sam Bass Rd from FM-1431 to Wyoming 2025 $7,000,000 $9,980,300 Springs Dr BCRUA Phase 1 D -WTP Expansion to 42MGD 2025 $4,000,500 $5,067,300 GR-06: Redbud Ln from south of Palm Valley 2026 $4,560,000 $4,560,000 Blvd to Gattis School Rd BCRUA Phase 2- Deep Water Intake 2027 $60,608,500 $76,874,130 $80,689,000 $103,532,786 11 Upcoming Water Projects Estimated Impact Fee Report Completion Estimated Cost GR-07: Hester's Crossing &CR-172 from west 971 zone to S-81 2025 $3,270,000 EST GR-08: FM-1460 toward Westinghouse Rd, east to future road 2027 $2,350,000 GR-09: Palm Valley Blvd (north side) extension to CR-110 2029 $600,000 GR-10: Loop from GR-09 to Westinghouse to University 2030 $2,440,000 $8,660,000 Table 6 summarizes the status of the Wastewater System (Impact Fee eligible) Capital Improvement Projects included in the November 2020 Impact Fee Analysis. Table 6 Completed Wastewater Projects Completion Impact Fee Report Actual Cost Estimated Cost 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 Brushy Creek 2 2019 $685,000 $349,000 Brushy Creek 4 2019 $173,000 $173,000 $5,713,000 $5,045,618 Wastewater Projects in Progress Completion Impact Fee Report Actual Cost Estimated Cost Lake Creek 1 2022 $1,856,000 $3,150,000 $1,856,000 $3,150,000 12 Upcoming Wastewater Projects Estimated Impact Fee Report Completion Estimated Cost MC-1: New 6,760LF of 18-in 2022 $1,973,000 BC-1: Upsize 3,015LF to 12-in and 18-in 2023 $831,000 CC-1: Upsize 3,975LF to 12-in and 15-in 2024 $1,026,000 Forest Creek LS and FM - Increase Capacity 2024 $3,168,000 MC-2: New 9,120LF of 12-in 2025 $1,576,000 MC-3: New 5,155LF of 24-in 2026 $1,602,000 Hilton Head LS and FM - Increase Capacity 2027 $1,751,000 CC-2: Upsize 955LF to 12-in and 15-in 2027 $230,000 WWTP Expansion to 40MGD- PER 2030 $2,500,000 $14,657,000 Table 7 summarizes the status of the Reuse Water System (Impact Fee eligible) Capital Improvement Projects included in the November 2020 Impact Fee Analysis. Table 7 Completed Reuse Projects Completion Impact Fee Report Actual Cost Estimated Cost Reuse Phase VI 2016 $900,000 $900,000 Reuse Phase IV-B 2016 $3,719,000 $3,013,152 $4,619,000 $3,913,152 Reuse Projects in Progress Completion Impact Fee Report Actual Cost I Estimated Cost 1.0 MG Reuse Ground Storage Tank 2023 $1,628,400 $3,200,000 $1,628,400 $3,200,000 Upcoming Reuse Projects Estimated Impact Fee Report Completion Estimated Cost Reuse Phase V—Stony Point High School 2023 $614,328 $614,328 13 Figure 6 compares Single-Family Residential Utility Rates for Round Rock to surrounding Central Texas Municipalities and Municipal Utility Districts. As depicted, Round Rock utility rates remain among the lowest in the region. Figure 6 Single-Family Residential Water and Wastewater Rates Monthly Comparison $200 Assumes 10,000 gallons water&8,000 gallons wastewater usage $180 $162.40 $159.83 $160 $155.02 $140 $131.30 $12015 $120 5115.60 S11382 $100 $98.22 $96.90 596.45 591.38 $86 70 $80.11 $80 S72S5 $67.43 $60 $40 $20 S0 San Hutto Austin Pflugervile Leander Paloma Walsh Vista Teravista ll Cedar Teravista 10 Fern Round Georgetown Brushy Marcos 1&2 Randy Oaks Park Bluff Rock Creek (Annual ■Water a Wastewater Avg) * assumes 10,000 gallons water and 8,000 gallons wastewater used 14 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, several surrounding cities have increased their fees over the past few years and surpassed Round Rock. Round Rock's philosophy is for new customers and developments to pay for the required capital improvements due to the growth. Table 8 ImpactArea • • . • Last otal Updated Water Wastewater T Brushy Creek MUD 2012 $2,095 $1,804 $3,899 Round Rock 2020 $4,234 $1,799 $6,033 Cedar Park 2020 $3,160 $3,170 $6,330 San Marcos 2018 $3,801 $2,684 $6,485 Leander 2017 $4,309 $2,820 $7,129 Austin 2018 $4,700 $2,500 $7,200 Pflugerville 2020 $7,897 $1,898* $9,795 Georgetown 2018 $6,921 $3,115* $10,036 Hutto 2021 T- $8,832 $2,788 $11,620 *Indicates the City has two different Wastewater Impact Fees, based on service area. The number in the table above reflects the lowest fee charged by that City. 15 CONCLUSION AND RECOMMENDATIONS Due to the volatility in growth rates and infrastructure requirements, the City recommends a review of the Impact Fees every three to four years. The current Impact Fees were adopted on January 14, 2021, and went into effect on February 1, 2021. Over the past several years, the population growth in Round Rock has proceeded slower than projected in the Impact Fee Analysis. However, the number of connections to the water and wastewater systems has occurred as anticipated. The next Capital Improvements Plan Progress Report will be presented to the CIAC and the City Council in approximately six months. 16 Mayor Councilmembers City Manager Craig Morgan Michelle Ly Laurie Hadley Matthew Baker Frank Ortega ROUND ROCK TEXAS Mayor Pro-Tem Kristin Stevens City Attorney PLANNINGANDDEVELOPMENTSERVICES Rene Flores Hilda Montgomery Stephan L.Sheets May 4,2022 Mayor Morgan Mayor Pro-Tem Flores Councilmember Ly Councilmember Baker Councilmember Ortega Councilmember Stevens Councilmember Montgomery RE: Capital Improvements Advisory Committee—Semi-Annual Meeting Dear Mayor Morgan and Council Members: The Capital Improvements Advisory Committee met on May 4,2022,to consider and approve the semi-annual report to the City Council with respect to the progress of the Capital Improvements Plan and identification of any perceived inequities in the Impact Fees.The findings are addressed in Chapter 395.058(c)of the Texas Local Government Code. After discussion,the Committee found no perceived inequities in implementing the plan or imposing the Impact Fee.Therefore,a motion was made to approve and forward the report from the Utilities and Environmental Services Department to the City Council,with updated city comparison data. Sincerely, Jeifer Henderson,Chairman Capital Improvements Advisory Committee CITY OF ROUND ROCK PLANNING AND DEVELOPMENT SERVICES.301 W.Bagdad, Round Rock,Texas 78664 Planning 512.218.5428.Code Enforcement 512.218.3329.Community Development 512.341.3148.roundrocktexas.gov