1 00:00:00,000 --> 00:00:05,000 The October 8th, 2018 Public Utilities Board for Denton. 2 00:00:06,200 --> 00:00:09,400 We do have a quorum, that was a close call there. 3 00:00:09,400 --> 00:00:11,259 We do have a quorum. 4 00:00:11,259 --> 00:00:13,960 What I'd like to do is we have a closed meeting 5 00:00:13,960 --> 00:00:15,679 scheduled today and I'd like to move that 6 00:00:15,679 --> 00:00:17,160 to the end of the agenda. 7 00:00:17,160 --> 00:00:20,199 That'll be a little more efficient for staff 8 00:00:20,199 --> 00:00:21,920 to be able to handle that item. 9 00:00:21,920 --> 00:00:25,399 So our first item is a work session item 10 00:00:25,399 --> 00:00:27,399 to receive a report and hold discussion 11 00:00:27,399 --> 00:00:29,120 on the five-year update of the water 12 00:00:29,120 --> 00:00:30,960 and wastewater impact fees. 13 00:00:39,880 --> 00:00:41,280 - Good morning. 14 00:00:41,280 --> 00:00:43,280 DSR, Director of Wastewater Utilities. 15 00:00:44,759 --> 00:00:46,960 This is the update for the impact fees 16 00:00:46,960 --> 00:00:50,280 and I just wanna go through a little bit 17 00:00:50,280 --> 00:00:52,079 about why we have impact fees. 18 00:00:52,960 --> 00:00:56,799 When a new development comes in, in the city, 19 00:00:56,799 --> 00:00:59,600 whether it is commercial, industrial, or residential, 20 00:01:00,600 --> 00:01:04,040 it creates a need for water or wastewater service. 21 00:01:04,040 --> 00:01:06,879 That need is an impact, creates an impact 22 00:01:06,879 --> 00:01:09,239 on the water wastewater system. 23 00:01:09,239 --> 00:01:13,799 And state law allows cities to charge for that impact 24 00:01:13,799 --> 00:01:15,400 on the water wastewater system. 25 00:01:16,680 --> 00:01:20,760 So how we go about it, you know, 26 00:01:20,760 --> 00:01:24,439 this was done through the developers back in 1987. 27 00:01:24,439 --> 00:01:26,439 They actually went to the legislature 28 00:01:26,439 --> 00:01:29,519 and had this impact fee law put into practice 29 00:01:29,519 --> 00:01:31,799 because it creates a level playing field 30 00:01:31,799 --> 00:01:33,560 for all the developers in the city. 31 00:01:37,319 --> 00:01:39,799 There are prescribed methods that we have to use 32 00:01:39,799 --> 00:01:41,840 to calculate the impact fees 33 00:01:41,840 --> 00:01:46,239 and it requires land use assumptions for 10 years out 34 00:01:46,239 --> 00:01:48,400 and based on the land use assumptions, 35 00:01:48,400 --> 00:01:52,040 which show what will be the residential, commercial, 36 00:01:52,040 --> 00:01:53,920 or industrial use of that land, 37 00:01:53,920 --> 00:01:56,319 we determine the population 38 00:01:56,319 --> 00:01:59,319 and then what impact it's going to have on the system. 39 00:01:59,319 --> 00:02:02,200 And that impact can be on the existing capacity 40 00:02:02,200 --> 00:02:05,760 or it may need new water stream lines, 41 00:02:05,760 --> 00:02:09,479 pump stations, or addition to treatment plants. 42 00:02:09,479 --> 00:02:11,599 So we can charge for that impact 43 00:02:11,599 --> 00:02:13,919 and that's how there's a lot of calculation 44 00:02:13,919 --> 00:02:14,960 that goes behind it. 45 00:02:14,960 --> 00:02:16,879 There's a lot of computer models 46 00:02:16,879 --> 00:02:18,879 that we use for water wastewater 47 00:02:18,879 --> 00:02:21,840 to develop those impact fee projects. 48 00:02:21,840 --> 00:02:24,639 There's a lot of financial analysis that goes behind it. 49 00:02:27,000 --> 00:02:28,560 We do this every five years. 50 00:02:28,560 --> 00:02:32,560 We started in 1998 with impact fees for water wastewater. 51 00:02:32,560 --> 00:02:36,960 We had an update in 2003, 2008, 2013, 52 00:02:36,960 --> 00:02:39,360 and now we are doing in 2018. 53 00:02:39,360 --> 00:02:41,800 We went through RFQ process 54 00:02:41,800 --> 00:02:43,120 and through the RFQ process, 55 00:02:43,120 --> 00:02:47,639 we selected Kimley-Horn to do the analysis for us. 56 00:02:47,639 --> 00:02:50,240 So with that, I'm going to turn this over to John Atkins 57 00:02:50,240 --> 00:02:52,280 with Kimley-Horn to go through that. 58 00:02:57,240 --> 00:03:00,199 (papers rustling) 59 00:03:00,199 --> 00:03:01,039 - Thank you, PS. 60 00:03:01,039 --> 00:03:04,080 I think PS just gave half the presentation right there. 61 00:03:04,080 --> 00:03:05,319 (Karen laughing) 62 00:03:05,319 --> 00:03:06,159 But that's okay. 63 00:03:07,080 --> 00:03:08,159 We can repeat that. 64 00:03:08,159 --> 00:03:10,960 Things like this, if it's new to you, 65 00:03:10,960 --> 00:03:12,879 it's kind of like the rule of, 66 00:03:12,879 --> 00:03:14,479 you need to hear something about four times 67 00:03:14,479 --> 00:03:16,039 before it kind of sinks in a little bit 68 00:03:16,039 --> 00:03:18,599 so it doesn't hurt to repeat particular items. 69 00:03:19,680 --> 00:03:20,520 All right. 70 00:03:21,520 --> 00:03:22,360 Let's get. 71 00:03:26,840 --> 00:03:27,960 Let's set up here. 72 00:03:33,319 --> 00:03:35,680 Okay, let's be sure, yeah. 73 00:03:35,680 --> 00:03:36,520 Okay. 74 00:03:37,639 --> 00:03:39,780 First of all, I'd like to thank staff, 75 00:03:39,780 --> 00:03:42,439 specifically Tim Fisher and PS Aurora. 76 00:03:42,439 --> 00:03:44,800 They've been a part of this for the last 20 years 77 00:03:44,800 --> 00:03:46,000 of doing this work. 78 00:03:46,000 --> 00:03:48,879 And obviously we consulted and leaned on them 79 00:03:48,879 --> 00:03:52,919 back and forth quite a bit on doing the project. 80 00:03:52,919 --> 00:03:54,360 And we want to appreciate their efforts 81 00:03:54,360 --> 00:03:57,479 and guidance on the particular project. 82 00:03:57,479 --> 00:03:58,919 All right, let's first start out 83 00:03:58,919 --> 00:04:02,560 with the water impact fee update. 84 00:04:03,560 --> 00:04:04,879 Okay, we're gonna go through some, 85 00:04:04,879 --> 00:04:06,319 there's gonna be a lot of words on the screen 86 00:04:06,319 --> 00:04:07,879 over probably the next three or four slides 87 00:04:07,879 --> 00:04:10,560 just talking about kind of administrative type stuff 88 00:04:10,560 --> 00:04:12,759 and definitions and that sort of thing. 89 00:04:12,759 --> 00:04:15,759 We'll start out with what is an impact fee? 90 00:04:15,759 --> 00:04:16,800 PS mentioned it. 91 00:04:16,800 --> 00:04:19,800 It's a one-time charge assessed to new development 92 00:04:19,800 --> 00:04:21,600 for a portion of costs related to 93 00:04:21,600 --> 00:04:25,319 a specific capital improvement program. 94 00:04:25,319 --> 00:04:26,920 Now what we're talking about is 95 00:04:28,639 --> 00:04:30,480 what PS mentioned earlier. 96 00:04:31,839 --> 00:04:34,680 The projects are identified 97 00:04:34,680 --> 00:04:36,759 through your master planning process 98 00:04:36,759 --> 00:04:40,339 and then additional growth over the next 10 years 99 00:04:40,339 --> 00:04:42,920 is defined and then that's where 100 00:04:44,040 --> 00:04:45,839 the one-time charge comes to the new development 101 00:04:45,839 --> 00:04:46,660 as it comes in. 102 00:04:46,660 --> 00:04:47,959 I'll just rattle through here. 103 00:04:47,959 --> 00:04:49,720 Impact fees are a mechanism for funding 104 00:04:49,720 --> 00:04:51,399 the infrastructure necessary to comment 105 00:04:51,399 --> 00:04:52,240 new development. 106 00:04:52,240 --> 00:04:54,480 So we're talking about new development here, 107 00:04:54,480 --> 00:04:55,319 the predominant thing. 108 00:04:55,319 --> 00:04:56,639 Impact fees are limited to water, 109 00:04:56,639 --> 00:04:58,879 wastewater, roadway and drainage. 110 00:04:58,879 --> 00:05:00,240 What we're talking about here today 111 00:05:00,240 --> 00:05:02,279 is just water and wastewater. 112 00:05:02,279 --> 00:05:05,519 Roadways, y'all do have that in y'all's 113 00:05:05,519 --> 00:05:09,720 city's program also, but that's on a different 114 00:05:09,720 --> 00:05:11,920 time schedule than the water and wastewater. 115 00:05:13,639 --> 00:05:18,019 Okay, principles, purpose of why cities do impact fees. 116 00:05:19,839 --> 00:05:22,279 The fundamental thing here is growth 117 00:05:22,279 --> 00:05:25,079 in the form of new development should basically pay 118 00:05:25,079 --> 00:05:27,199 its fair share as it comes in. 119 00:05:27,199 --> 00:05:29,560 If growth doesn't pay for that, 120 00:05:29,560 --> 00:05:33,819 the burden becomes, leans back on your current rate payers. 121 00:05:33,819 --> 00:05:37,079 So what you're trying to do is take the burden off 122 00:05:37,079 --> 00:05:40,240 your current citizens that pay through utility rates 123 00:05:40,240 --> 00:05:43,100 and you're trying to put a little bit of that burden 124 00:05:43,100 --> 00:05:45,120 back on the new development that's coming in 125 00:05:45,120 --> 00:05:46,480 to the community. 126 00:05:46,480 --> 00:05:48,620 And that's if we walk through here, 127 00:05:48,620 --> 00:05:51,160 new development pays for a share of the city's cost 128 00:05:51,160 --> 00:05:53,639 to provide water and wastewater capacity improvements 129 00:05:53,639 --> 00:05:56,240 that will serve the proposed development. 130 00:05:56,240 --> 00:05:58,480 Allows cities to recoup a portion of the cost 131 00:05:58,480 --> 00:06:00,259 providing improvements. 132 00:06:00,259 --> 00:06:03,740 Ensures that fees spent in a particular area 133 00:06:03,740 --> 00:06:07,300 are where that development occurs. 134 00:06:07,300 --> 00:06:10,100 And then it provides a systematic structured approach 135 00:06:10,100 --> 00:06:11,620 to assess the fees. 136 00:06:12,680 --> 00:06:14,519 And then the bottom line here is, 137 00:06:14,519 --> 00:06:18,680 it facilitates growth paying for a portion of that growth. 138 00:06:20,240 --> 00:06:25,120 Okay, the legislative basis for doing the project, 139 00:06:25,120 --> 00:06:27,680 or doing the program in itself. 140 00:06:27,680 --> 00:06:30,839 Like PS mentioned a little bit ago, 30 years ago, 141 00:06:30,839 --> 00:06:32,600 the actual home builders, 142 00:06:32,600 --> 00:06:35,439 a lot of people think about developers 143 00:06:35,439 --> 00:06:38,160 not wanting impact fees in communities. 144 00:06:38,160 --> 00:06:39,879 Well, it's actually the real estate 145 00:06:39,879 --> 00:06:42,319 and development community that brought forward 146 00:06:42,319 --> 00:06:45,970 the sponsored legislation that wanted impact fees in cities 147 00:06:45,970 --> 00:06:46,199 . 148 00:06:46,199 --> 00:06:47,879 Basically what it was is each, 149 00:06:47,879 --> 00:06:49,800 the developments wanted to be treated fairly 150 00:06:49,800 --> 00:06:54,279 across the board when it came to their capital 151 00:06:54,279 --> 00:06:57,360 that they may or may not have to provide 152 00:06:58,720 --> 00:07:01,360 for the new facility coming in. 153 00:07:01,360 --> 00:07:04,639 So this allows and created a level playing field 154 00:07:04,639 --> 00:07:07,379 where they'd be treated the same when it came associated 155 00:07:07,379 --> 00:07:10,399 to cost and their usage on the system. 156 00:07:10,399 --> 00:07:13,920 So to rattle through here, no impact fees 157 00:07:13,920 --> 00:07:15,120 except as authorized. 158 00:07:15,120 --> 00:07:17,379 So the legislation's authorizing cities 159 00:07:17,379 --> 00:07:18,920 to move forward with this. 160 00:07:18,920 --> 00:07:21,519 And as the city decides to do so, 161 00:07:21,519 --> 00:07:23,480 they're allowed to do that. 162 00:07:23,480 --> 00:07:24,980 There's some details in here, 163 00:07:24,980 --> 00:07:27,000 precise methodology prescribed. 164 00:07:28,199 --> 00:07:30,600 We define service area very specifically 165 00:07:30,600 --> 00:07:31,519 that has to be defined. 166 00:07:31,519 --> 00:07:33,519 Service units is another thing, 167 00:07:33,519 --> 00:07:35,199 that's the growth component. 168 00:07:35,199 --> 00:07:36,399 We're looking at what's gonna happen 169 00:07:36,399 --> 00:07:37,660 over the next 10 years. 170 00:07:37,660 --> 00:07:40,800 Another term that you'll see in the study 171 00:07:40,800 --> 00:07:44,160 and then also in this presentation for service units 172 00:07:44,160 --> 00:07:46,800 is also called single family equivalent. 173 00:07:46,800 --> 00:07:49,660 What we're talking about is we define a service unit 174 00:07:49,660 --> 00:07:53,439 in the study as the amount of water usage 175 00:07:53,439 --> 00:07:56,680 that a 5/8 by 3/4 inch meter uses. 176 00:07:56,680 --> 00:07:59,720 And that's equivalent to what a single family home 177 00:07:59,720 --> 00:08:00,699 typically uses. 178 00:08:00,699 --> 00:08:03,019 So you'll hear that service unit 179 00:08:03,019 --> 00:08:06,639 and single family equivalent term interchangeably 180 00:08:06,639 --> 00:08:10,100 a little bit, but they're basically the same thing. 181 00:08:10,100 --> 00:08:12,879 And then we look at capacity analysis that PS mentioned 182 00:08:12,879 --> 00:08:15,000 and also the land use assumptions, 183 00:08:15,000 --> 00:08:16,800 which we worked with the planning department 184 00:08:16,800 --> 00:08:18,720 and then also ties to the water 185 00:08:18,720 --> 00:08:21,360 and wastewater master plans that were already done. 186 00:08:23,699 --> 00:08:25,680 Complex adoption procedure, 187 00:08:25,680 --> 00:08:26,639 where we're talking about that, 188 00:08:26,639 --> 00:08:28,959 it has to go through a capital improvement advisory 189 00:08:28,959 --> 00:08:29,459 committee, 190 00:08:29,459 --> 00:08:32,059 which is typically the city's planning 191 00:08:32,059 --> 00:08:36,399 and zoning commission plus ad hoc member from the ETJ. 192 00:08:36,399 --> 00:08:38,720 That's represent that we'll bring the same type 193 00:08:38,720 --> 00:08:41,679 of information forward to them and get input from them. 194 00:08:41,679 --> 00:08:43,519 And then it has to move forward to council. 195 00:08:43,519 --> 00:08:46,559 So it goes through PUB, it gets looked at, 196 00:08:46,559 --> 00:08:48,639 it gets looked at by the capital improvement advisory 197 00:08:48,639 --> 00:08:51,080 committee and then it gets looked at again by the council. 198 00:08:51,080 --> 00:08:56,080 So it's a very thorough vetting through the governing body. 199 00:08:58,039 --> 00:09:01,840 And then lastly, the administrative rules 200 00:09:01,840 --> 00:09:04,519 for how you process it and deal with it administratively 201 00:09:04,519 --> 00:09:06,879 gets set by the law, so once again, 202 00:09:06,879 --> 00:09:10,080 it was initiated in '87, it's not a new thing. 203 00:09:10,080 --> 00:09:13,809 Sometimes because it only gets talked about every five 204 00:09:13,809 --> 00:09:14,320 years, 205 00:09:14,320 --> 00:09:17,279 it can be unfamiliar to boards and commissions 206 00:09:17,279 --> 00:09:21,019 that may turn over a little quicker than that. 207 00:09:21,019 --> 00:09:24,480 So sometimes when people hear about it, they think it's new 208 00:09:24,480 --> 00:09:26,240 and it's actually been established around 209 00:09:26,240 --> 00:09:28,960 for a fairly long period of time now. 210 00:09:31,120 --> 00:09:35,399 Okay, assumptions, here's some of the detailed assumptions 211 00:09:35,399 --> 00:09:39,519 that were built into the study that was done. 212 00:09:39,519 --> 00:09:42,320 Land use determines the type of growth you have. 213 00:09:42,320 --> 00:09:43,840 Like I said, we worked with planning 214 00:09:43,840 --> 00:09:46,080 and your master plannings are all using 215 00:09:46,080 --> 00:09:48,440 the exact same growth information. 216 00:09:48,440 --> 00:09:50,399 And then that's what we segue and use that 217 00:09:50,399 --> 00:09:52,639 in the impact fee study. 218 00:09:52,639 --> 00:09:54,360 Growth requires additional capacity 219 00:09:54,360 --> 00:09:55,960 in the form of capital program. 220 00:09:57,919 --> 00:10:00,159 The water and wastewater system models 221 00:10:00,159 --> 00:10:02,480 accurately determine the additional capacity needed, 222 00:10:02,480 --> 00:10:04,740 types of projects meet those needs 223 00:10:04,740 --> 00:10:06,360 in the approximate timing. 224 00:10:06,360 --> 00:10:10,009 So we utilize the city's overall capital improvement 225 00:10:10,009 --> 00:10:10,559 program 226 00:10:10,559 --> 00:10:12,559 to then narrow down on an impact fee 227 00:10:12,559 --> 00:10:14,860 capital improvement program. 228 00:10:14,860 --> 00:10:17,659 They're close, but they're not exactly the same. 229 00:10:18,639 --> 00:10:22,279 The capital cost estimates are accurate for this timeframe 230 00:10:22,279 --> 00:10:25,259 and then the growth, once again, the last statements 231 00:10:25,259 --> 00:10:27,759 about growth projections for the 10-year window. 232 00:10:27,759 --> 00:10:28,879 So when we do the study, 233 00:10:28,879 --> 00:10:30,840 it's looking at a 10-year timeframe 234 00:10:30,840 --> 00:10:33,919 starting in 2018 through 2028. 235 00:10:35,120 --> 00:10:37,440 And then it gets revisited every five years 236 00:10:37,440 --> 00:10:40,840 because your growth in the economics 237 00:10:40,840 --> 00:10:43,720 are just the way things may happen 238 00:10:43,720 --> 00:10:48,159 in both the local economy or nationwide 239 00:10:48,159 --> 00:10:49,159 can make that fluctuate. 240 00:10:49,159 --> 00:10:51,200 So you try to revisit it every five years. 241 00:10:51,200 --> 00:10:53,879 You can do it sooner than that if you'd like, 242 00:10:53,879 --> 00:10:55,820 if there's some pretty dramatic changes, 243 00:10:55,820 --> 00:10:56,919 but you don't have to. 244 00:10:58,200 --> 00:11:01,120 Okay, a little bit of history on the update. 245 00:11:01,120 --> 00:11:04,120 The city of Denton's been doing this since 1998. 246 00:11:04,120 --> 00:11:06,240 So this is the fifth go around. 247 00:11:06,240 --> 00:11:10,299 State law requires it to be done every five years. 248 00:11:10,299 --> 00:11:14,159 And then one unique feature with Denton is it's not unusual 249 00:11:14,159 --> 00:11:14,159 , 250 00:11:14,159 --> 00:11:17,759 but we have three impact fee zones for the water system. 251 00:11:17,759 --> 00:11:20,799 And we have one impact fee zone for the wastewater system. 252 00:11:20,799 --> 00:11:23,980 We'll show you a map of that here in just a few minutes. 253 00:11:26,120 --> 00:11:29,240 And the next thing, this is pretty busy screen here 254 00:11:30,200 --> 00:11:32,500 about how impact fees are calculated. 255 00:11:33,720 --> 00:11:38,120 What I'd like to do, some of the items you see on the left, 256 00:11:38,120 --> 00:11:41,960 the land use assumptions, population, five-year CIP, 257 00:11:41,960 --> 00:11:46,960 and the consumptive use and the single-family equivalent 258 00:11:47,039 --> 00:11:51,039 are items that go into this. 259 00:11:51,039 --> 00:11:54,200 What I wanna just focus on a little bit here is 260 00:11:54,200 --> 00:11:56,960 because this is water, it's divided up into three zones. 261 00:11:56,960 --> 00:12:01,200 So you see a zone 1A, a 1B, and a two. 262 00:12:01,200 --> 00:12:02,799 An example at the bottom here, 263 00:12:02,799 --> 00:12:05,879 some of the math you see here is an example 264 00:12:05,879 --> 00:12:08,120 focusing on zone 1A. 265 00:12:08,120 --> 00:12:10,120 So what I wanna show you here, 266 00:12:10,120 --> 00:12:12,759 let's just jump to the bottom a minute. 267 00:12:12,759 --> 00:12:17,080 And the actual calculation of an impact fee 268 00:12:17,080 --> 00:12:22,080 per service unit is a pretty simple math calculation. 269 00:12:22,080 --> 00:12:27,080 What we're looking at is the 10-year maximum recoverable 270 00:12:27,080 --> 00:12:27,080 cost 271 00:12:30,000 --> 00:12:32,480 by that zone, which we've determined to be 272 00:12:32,480 --> 00:12:34,639 a little over $27 million, 273 00:12:34,639 --> 00:12:36,960 divided by the amount of growth 274 00:12:36,960 --> 00:12:40,440 that's assumed to happen within that area. 275 00:12:40,440 --> 00:12:43,120 Based as, you can call it a single-family equivalent 276 00:12:43,120 --> 00:12:44,879 or a service unit. 277 00:12:44,879 --> 00:12:48,080 And so the math is fairly easy mathematically. 278 00:12:48,080 --> 00:12:50,500 It's just cost divided by growth. 279 00:12:50,500 --> 00:12:52,759 And so that's the exercise that go through. 280 00:12:52,759 --> 00:12:55,799 Now you see a lot of additional line items here 281 00:12:55,799 --> 00:12:59,679 to get down to the bold $27 million number. 282 00:12:59,679 --> 00:13:02,200 And those are some of the details that are in the report 283 00:13:02,200 --> 00:13:06,340 with regards to financing, existing fund balances, 284 00:13:06,340 --> 00:13:09,159 and pre-credit calculation. 285 00:13:09,159 --> 00:13:10,480 That's kind of the sum of that. 286 00:13:10,480 --> 00:13:13,240 And then what we do is that one last item 287 00:13:14,159 --> 00:13:17,200 is a credit for utility revenue. 288 00:13:17,200 --> 00:13:19,360 And what we're talking about here is 289 00:13:20,320 --> 00:13:22,600 the term double-dipping is used. 290 00:13:22,600 --> 00:13:24,399 And what it's talking about here is 291 00:13:25,279 --> 00:13:28,559 if someone comes in, new development comes in, 292 00:13:28,559 --> 00:13:30,399 they pay their impact fee. 293 00:13:30,399 --> 00:13:32,080 What you don't wanna happen is, 294 00:13:32,080 --> 00:13:36,799 is then they also pay in their utility rate 295 00:13:36,799 --> 00:13:38,440 a portion of growth. 296 00:13:38,440 --> 00:13:41,360 So what you do is take that portion of their growth 297 00:13:41,360 --> 00:13:44,559 that's in the utility revenue calculation, 298 00:13:44,559 --> 00:13:46,440 you take that out of the impact fee. 299 00:13:47,279 --> 00:13:50,980 So you basically credit back a portion 300 00:13:50,980 --> 00:13:55,919 of the utility revenue that is for growth. 301 00:13:55,919 --> 00:13:57,879 You take it out of the impact fee value. 302 00:13:57,879 --> 00:14:00,039 So you're not double-dipping somebody that comes in 303 00:14:00,039 --> 00:14:01,799 and pays an impact fee. 304 00:14:01,799 --> 00:14:03,879 That's kind of a unique feature. 305 00:14:03,879 --> 00:14:07,120 What happens is if the city doesn't go through an exercise 306 00:14:07,120 --> 00:14:08,919 to actually determine that number 307 00:14:08,919 --> 00:14:12,080 using a financial consultant, which we did on this project, 308 00:14:12,080 --> 00:14:16,240 you have to immediately cut the number by 50%. 309 00:14:16,240 --> 00:14:20,000 So the legislature says, hey, if you do an analysis, 310 00:14:20,000 --> 00:14:21,600 you can come up with the actual number, 311 00:14:21,600 --> 00:14:24,840 this little, the $900,000 number. 312 00:14:24,840 --> 00:14:27,559 If you don't, then you have to cut 313 00:14:28,600 --> 00:14:31,879 basically the $25 million number in half 314 00:14:31,879 --> 00:14:33,879 and then run the calculation. 315 00:14:33,879 --> 00:14:36,759 So it's always of good value for most communities 316 00:14:36,759 --> 00:14:40,179 to do the analysis. 317 00:14:41,320 --> 00:14:42,159 Okay. 318 00:14:43,039 --> 00:14:45,120 What's payable and not payable? 319 00:14:45,120 --> 00:14:46,200 Run through the list here. 320 00:14:46,200 --> 00:14:49,000 Components that can be paid by the program. 321 00:14:49,000 --> 00:14:52,159 The biggest item is typically construction cost 322 00:14:52,159 --> 00:14:53,840 for the capital improvements, 323 00:14:53,840 --> 00:14:55,679 survey and engineering fees 324 00:14:55,679 --> 00:14:58,360 to design those capital improvements, 325 00:14:58,360 --> 00:15:03,360 land acquisition, cost, including court awards. 326 00:15:03,799 --> 00:15:07,080 That's part of the design phase of those projects. 327 00:15:07,080 --> 00:15:10,000 Debt service for the impact fee projects 328 00:15:10,000 --> 00:15:11,480 and also studies and updates. 329 00:15:11,480 --> 00:15:14,480 For example, our cost for doing the study 330 00:15:14,480 --> 00:15:16,600 for you guys is rolled into this 331 00:15:16,600 --> 00:15:20,620 and growth pays for the cost of our services provided today 332 00:15:20,620 --> 00:15:20,879 . 333 00:15:20,879 --> 00:15:23,559 Things that aren't on the list. 334 00:15:23,559 --> 00:15:25,480 Projects not included on the CIP. 335 00:15:25,480 --> 00:15:28,279 So it's really important that the map that's in here, 336 00:15:28,279 --> 00:15:31,500 that defines what projects can be paid for. 337 00:15:31,500 --> 00:15:34,580 That's the law, it's very specific about that. 338 00:15:34,580 --> 00:15:36,320 Repair and operation and maintenance. 339 00:15:36,320 --> 00:15:38,840 Those are things that are occurring on the system today 340 00:15:38,840 --> 00:15:42,559 that you don't have future development paid for. 341 00:15:42,559 --> 00:15:44,840 Upgrade to existing service 342 00:15:44,840 --> 00:15:47,240 and then administrative costs for operating the program. 343 00:15:47,240 --> 00:15:49,679 So staff costs for administrating the program 344 00:15:49,679 --> 00:15:52,440 and stuff like that can't be part of the calculation. 345 00:15:54,279 --> 00:15:56,279 Okay, now we're gonna jump to some 346 00:15:56,279 --> 00:15:58,120 of the real numbers here a little bit. 347 00:16:04,600 --> 00:16:06,399 The three zones we talked about. 348 00:16:07,919 --> 00:16:09,460 Let me do something real quick. 349 00:16:09,460 --> 00:16:12,919 We talked to Kenny about this to illustrate what this is. 350 00:16:14,120 --> 00:16:17,879 I'm gonna jump down real quick here and I'll jump back. 351 00:16:17,879 --> 00:16:21,679 Okay, I'm going, the zones you'll see here in a minute, 352 00:16:21,679 --> 00:16:23,679 I wanna show you an illustration of that. 353 00:16:23,679 --> 00:16:25,240 We've been looking at a lot of words on the screen. 354 00:16:25,240 --> 00:16:28,360 So this is the water CCN boundary. 355 00:16:28,360 --> 00:16:31,840 This defines the boundary that can be the service area 356 00:16:31,840 --> 00:16:33,639 or multiple service areas. 357 00:16:33,639 --> 00:16:36,519 Okay, this blue area you see here. 358 00:16:36,519 --> 00:16:39,399 Now what the city has done is divided 359 00:16:39,399 --> 00:16:41,120 on the water service area side 360 00:16:41,120 --> 00:16:43,320 is divide the city up into three zones. 361 00:16:43,320 --> 00:16:45,960 One A, one B and two. 362 00:16:46,960 --> 00:16:49,399 And so to get a visual representation 363 00:16:49,399 --> 00:16:51,720 of what I'm gonna go back to in just a minute 364 00:16:51,720 --> 00:16:55,080 with regards to the values by zone, 365 00:16:55,080 --> 00:16:57,559 these are the zones that we're talking about here 366 00:16:58,559 --> 00:16:59,399 that I wanted to show you. 367 00:16:59,399 --> 00:17:01,200 So I'm gonna jump back up real quick. 368 00:17:03,059 --> 00:17:08,059 Okay, so service area zone one A, one B and two. 369 00:17:08,339 --> 00:17:11,200 If you look over the right hand side to the SFE 370 00:17:11,200 --> 00:17:14,480 or the single family equivalent growth for those zones, 371 00:17:14,480 --> 00:17:17,319 you can see a little over 7,000, 372 00:17:17,319 --> 00:17:22,319 you got 7,001 in one A, a little over 7,001 B 373 00:17:22,519 --> 00:17:25,740 and then two has a little over 600, 374 00:17:25,740 --> 00:17:29,839 totaling a growth of about 15,773 service units 375 00:17:29,839 --> 00:17:31,839 throughout the entire area. 376 00:17:34,920 --> 00:17:39,920 The projects, we have 17 existing projects on the list. 377 00:17:40,319 --> 00:17:44,539 We have 15 proposed, adding up to 32. 378 00:17:45,559 --> 00:17:50,200 And those total project costs are just under $400 million. 379 00:17:50,200 --> 00:17:52,359 Now this isn't the cost that's in the impact fee, 380 00:17:52,359 --> 00:17:54,319 but this is the total project cost 381 00:17:54,319 --> 00:17:58,339 that the city is looking at from the study. 382 00:17:59,579 --> 00:18:04,119 Okay, this is a breakdown of one of the tables in the study 383 00:18:04,119 --> 00:18:04,400 . 384 00:18:04,400 --> 00:18:06,000 It's pretty busy. 385 00:18:06,000 --> 00:18:08,200 It's not all the project list. 386 00:18:08,200 --> 00:18:10,799 If we tried to put all the project list on the screen, 387 00:18:10,799 --> 00:18:12,000 it'd be tiny. 388 00:18:12,000 --> 00:18:14,640 So what we did was kind of chop a little bit off 389 00:18:14,640 --> 00:18:16,359 and show you the upper part 390 00:18:16,359 --> 00:18:19,339 or some of the existing projects that are on the list, 391 00:18:19,339 --> 00:18:24,339 the lower are future projects on the list. 392 00:18:24,640 --> 00:18:25,599 To kind of understand what's going on, 393 00:18:25,599 --> 00:18:27,119 we got a project description. 394 00:18:27,119 --> 00:18:29,339 You can see the project names here. 395 00:18:29,339 --> 00:18:32,819 The capacity of these projects used in 2018. 396 00:18:34,400 --> 00:18:38,180 How much of those projects will be utilized in 2028? 397 00:18:39,160 --> 00:18:42,599 The next column is just the difference between those two. 398 00:18:42,599 --> 00:18:47,599 So simple math, for example, 90%, 100% minus 9%, 10%. 399 00:18:47,640 --> 00:18:49,799 So that's how much gets utilized. 400 00:18:49,799 --> 00:18:52,119 And then here is, what you see over here 401 00:18:52,119 --> 00:18:54,279 is the total project cost that added up 402 00:18:54,279 --> 00:18:57,000 to that close to 400 million earlier. 403 00:18:57,000 --> 00:19:00,339 And then what you do is multiply that value 404 00:19:00,339 --> 00:19:02,400 times the column here, 10%. 405 00:19:02,400 --> 00:19:04,759 And that's what you get is the recoverable cost 406 00:19:04,759 --> 00:19:05,920 in the 10-year window. 407 00:19:05,920 --> 00:19:07,359 So that's the critical number. 408 00:19:08,519 --> 00:19:13,019 So you see at the bottom, the total cost values here. 409 00:19:15,440 --> 00:19:17,539 Okay, I'm gonna drill down a little bit more 410 00:19:17,539 --> 00:19:19,299 on this particular item. 411 00:19:19,299 --> 00:19:22,359 And we've highlighted a few projects we'll talk about. 412 00:19:22,359 --> 00:19:26,319 The first one I wanna talk about is actually project three. 413 00:19:28,359 --> 00:19:30,859 And what we have here, 414 00:19:30,859 --> 00:19:33,000 wrap your hand, this is the 54-inch 415 00:19:33,000 --> 00:19:34,839 finished water transmission line. 416 00:19:34,839 --> 00:19:37,759 It's existing, it's an existing project. 417 00:19:37,759 --> 00:19:41,680 What we show is that 35% of that project 418 00:19:41,680 --> 00:19:44,480 is already utilized today. 419 00:19:44,480 --> 00:19:45,980 So you can't charge for that. 420 00:19:45,980 --> 00:19:48,079 It's being used by your current citizens. 421 00:19:50,420 --> 00:19:54,440 25% of that same pipeline is gonna be utilized 422 00:19:54,440 --> 00:19:56,180 over the next 10 years. 423 00:19:56,180 --> 00:19:59,759 So that falls into the impact fee 10-year window. 424 00:19:59,759 --> 00:20:02,920 So this is the value that we wanna try to recover 425 00:20:02,920 --> 00:20:05,000 over the next 10 years. 426 00:20:05,000 --> 00:20:07,799 And then what we have out here at the 40% 427 00:20:07,799 --> 00:20:12,160 is future recoverable costs beyond the 10-year window. 428 00:20:12,160 --> 00:20:15,680 So what happens is when you travel five years from now 429 00:20:15,680 --> 00:20:17,640 and you update again, 430 00:20:17,640 --> 00:20:20,279 you'll be able to recover a portion of this 431 00:20:20,279 --> 00:20:21,440 into the future. 432 00:20:21,440 --> 00:20:25,140 So it allows you to maximize recovery of a project 433 00:20:25,140 --> 00:20:26,519 through its life. 434 00:20:26,519 --> 00:20:27,960 Yes, ma'am. 435 00:20:27,960 --> 00:20:29,660 - So we already paid for this 436 00:20:29,660 --> 00:20:34,160 and we're just dividing it up the way existing? 437 00:20:34,160 --> 00:20:35,000 - Yes, that is correct. 438 00:20:35,000 --> 00:20:35,819 Yeah, what happens-- 439 00:20:35,819 --> 00:20:36,660 - Just wanted to clarify that. 440 00:20:36,660 --> 00:20:39,660 - Yeah, just any kind of infrastructure, for example, 441 00:20:39,660 --> 00:20:41,859 a 54-inch pipeline is a large line. 442 00:20:43,259 --> 00:20:47,700 It's gotta last into the, in perpetuity, but basically, 443 00:20:47,700 --> 00:20:49,880 at least 50 years, if not more. 444 00:20:49,880 --> 00:20:53,039 And so you oversize it when it first gets built 445 00:20:53,039 --> 00:20:53,880 because you don't wanna go out there 446 00:20:53,880 --> 00:20:55,579 and build a 12-inch line 447 00:20:55,579 --> 00:20:58,440 and then five years later build a 20-inch line 448 00:20:58,440 --> 00:21:00,119 and then five years later take it out 449 00:21:00,119 --> 00:21:01,160 and build a 30-inch line. 450 00:21:01,160 --> 00:21:03,519 So you build the 54 now. 451 00:21:03,519 --> 00:21:06,559 And then, so it's got a significant amount of capacity 452 00:21:06,559 --> 00:21:07,599 when it first gets built. 453 00:21:07,599 --> 00:21:09,059 And I can show you another example of that 454 00:21:09,059 --> 00:21:10,160 here in a minute. 455 00:21:10,160 --> 00:21:12,960 And then, so you slowly can recover it over time 456 00:21:12,960 --> 00:21:16,640 as you continue to administer impact fees over time. 457 00:21:16,640 --> 00:21:18,640 - I just wanted to make that clarification, yeah. 458 00:21:18,640 --> 00:21:19,480 - Yes, thank you. 459 00:21:20,480 --> 00:21:21,880 Okay. 460 00:21:21,880 --> 00:21:25,539 This is a, we're gonna jump to the next two projects 461 00:21:25,539 --> 00:21:26,819 that were highlighted on there. 462 00:21:26,819 --> 00:21:30,440 We have the existing Ray Roberts Water Treatment Plant, 463 00:21:30,440 --> 00:21:32,519 and then there's a proposed expansion 464 00:21:32,519 --> 00:21:34,019 in the near future. 465 00:21:34,019 --> 00:21:35,200 And we're gonna talk about this. 466 00:21:35,200 --> 00:21:37,359 As you travel along in the next 10 years 467 00:21:37,359 --> 00:21:38,420 in your impact fee window, 468 00:21:38,420 --> 00:21:41,400 this is an example of what's happening. 469 00:21:41,400 --> 00:21:45,980 So existing capacity in the existing Ray Roberts, 470 00:21:46,920 --> 00:21:49,299 we've utilized 60% already. 471 00:21:49,299 --> 00:21:53,039 We're gonna utilize another 40% over the next, 472 00:21:53,039 --> 00:21:54,720 over into the future. 473 00:21:54,720 --> 00:21:57,279 Right now, the proposed Lake Ray Roberts expansion 474 00:21:57,279 --> 00:21:58,799 doesn't exist. 475 00:21:58,799 --> 00:22:01,660 So there's gonna be 100% that's eligible 476 00:22:01,660 --> 00:22:03,819 in the near future, but not today. 477 00:22:05,980 --> 00:22:08,500 As we travel over the next five years, 478 00:22:08,500 --> 00:22:12,759 we're gonna utilize more of the Ray Roberts plant 479 00:22:13,759 --> 00:22:17,440 and can recover 20% of that over the next 10 years. 480 00:22:17,440 --> 00:22:20,279 And this is what it would be in five years. 481 00:22:21,160 --> 00:22:23,279 And then we've got additional capacity 482 00:22:23,279 --> 00:22:26,920 that we can recover the additional 20% 483 00:22:26,920 --> 00:22:28,960 in the next following five years. 484 00:22:28,960 --> 00:22:31,720 We're looking at kind of on a phase basis here. 485 00:22:31,720 --> 00:22:35,259 And you can see that we still haven't built 486 00:22:35,259 --> 00:22:38,720 the expansion yet, but we will in the near future here. 487 00:22:38,720 --> 00:22:41,680 And that's what the third analysis is. 488 00:22:41,680 --> 00:22:44,460 As we get to the 10-year build out, 489 00:22:44,460 --> 00:22:47,220 or the 10-year planning window, 490 00:22:47,220 --> 00:22:51,720 we've now fully utilized 491 00:22:51,720 --> 00:22:53,519 all of the Ray Roberts facility. 492 00:22:53,519 --> 00:22:56,579 So we were looking at recovering the 60 and the 40. 493 00:22:56,579 --> 00:23:00,119 And then we've built the expansion 494 00:23:00,119 --> 00:23:04,660 and we get to recover about 4% of that, 495 00:23:04,660 --> 00:23:07,799 of the expanded treatment facility 496 00:23:07,799 --> 00:23:08,960 in the 10-year timeframe. 497 00:23:08,960 --> 00:23:10,359 And as we go past that, 498 00:23:10,359 --> 00:23:12,359 we'll be able to recover more and more. 499 00:23:14,980 --> 00:23:16,079 Okay, we showed you that. 500 00:23:16,079 --> 00:23:18,480 We showed you the service area boundaries here. 501 00:23:19,440 --> 00:23:23,440 Here's a photo of the capital improvement plan map, 502 00:23:23,440 --> 00:23:25,599 the impact fee CIP map. 503 00:23:27,119 --> 00:23:28,920 It's in your report. 504 00:23:31,519 --> 00:23:35,019 And here are the recoverable values. 505 00:23:35,019 --> 00:23:37,079 This is what we wanted to get down to. 506 00:23:37,079 --> 00:23:39,680 This is, so right now, 507 00:23:42,079 --> 00:23:46,000 in 2013, the maximum recoverable fee, 508 00:23:46,000 --> 00:23:47,799 you can see for the three service area 509 00:23:47,799 --> 00:23:49,440 are listed across here. 510 00:23:49,440 --> 00:23:54,200 So the max fee for 1A, a little over $3,000. 511 00:23:54,200 --> 00:23:56,759 1B was a little over 5,000. 512 00:23:56,759 --> 00:24:01,279 And two was a little over 5,500. 513 00:24:01,279 --> 00:24:05,400 Your current fees, what the council approved for, 514 00:24:05,400 --> 00:24:07,980 was a little bit less than those values that you see here. 515 00:24:07,980 --> 00:24:10,519 So this is where your current fee is today. 516 00:24:10,519 --> 00:24:14,200 The 3,100, the 3,900, and the 4,500 for the areas. 517 00:24:15,240 --> 00:24:18,599 The new, what we've calculated in this report, 518 00:24:18,599 --> 00:24:21,720 is a recoverable fee, a new recoverable fee, 519 00:24:23,119 --> 00:24:28,119 that you could potentially charge would be 35,69, 35, 520 00:24:29,380 --> 00:24:34,380 I mean, 53,52, and the 73,68. 521 00:24:34,380 --> 00:24:35,220 Okay? 522 00:24:37,119 --> 00:24:40,660 And this is carrying that same slide down 523 00:24:40,660 --> 00:24:43,119 with a staff recommendation noted at the bottom. 524 00:24:44,099 --> 00:24:49,099 So the current fee, what the recoverable fee could be, 525 00:24:51,839 --> 00:24:54,119 and then this is the staff recommendation. 526 00:24:55,440 --> 00:24:57,160 And the staff recommendation is, 527 00:24:57,160 --> 00:25:00,480 basically represents the current fee 528 00:25:00,480 --> 00:25:04,980 adjusted for a 2% inflation for the next five years. 529 00:25:04,980 --> 00:25:09,200 So it's basically an inflation growth 530 00:25:09,200 --> 00:25:10,960 from your current fee you're at today, 531 00:25:10,960 --> 00:25:14,480 and then staying with inflation, raising that rate, 532 00:25:14,480 --> 00:25:18,720 in a five year timeframe, but it would stay there 533 00:25:18,720 --> 00:25:21,000 until you do the five year study again, 534 00:25:21,000 --> 00:25:23,480 and then you get to reevaluate that. 535 00:25:23,480 --> 00:25:26,559 So that is the water presentation. 536 00:25:28,279 --> 00:25:30,200 You can ask questions specifically about water, 537 00:25:30,200 --> 00:25:33,200 or I can go ahead and show you the pieces of the wastewater 538 00:25:33,200 --> 00:25:34,920 that are similar at the back end here, 539 00:25:34,920 --> 00:25:37,819 just to see the values, and then open it up to questions, 540 00:25:37,819 --> 00:25:39,559 or you can go ahead and just focus on water 541 00:25:39,559 --> 00:25:40,799 at this particular time. 542 00:25:41,720 --> 00:25:42,980 - What do y'all think? 543 00:25:42,980 --> 00:25:45,599 I'm just proceeding and ask all the questions? 544 00:25:45,599 --> 00:25:46,440 Okay. - Okay. 545 00:25:46,440 --> 00:25:50,619 Okay, so let me switch gears here real quickly. 546 00:25:55,839 --> 00:25:57,839 This will jump straight. 547 00:25:57,839 --> 00:26:00,920 It won't go through the front end stuff that you saw. 548 00:26:00,920 --> 00:26:02,880 So we're gonna jump, I'm gonna go back to the, 549 00:26:02,880 --> 00:26:05,079 jump to the map again real quick. 550 00:26:05,079 --> 00:26:06,839 Wastewater's a little simpler. 551 00:26:06,839 --> 00:26:10,519 You have your CCN boundary, and you have one service area. 552 00:26:10,519 --> 00:26:12,319 So it's the same thing. 553 00:26:12,319 --> 00:26:14,880 So it's a single service area for the entire city. 554 00:26:16,039 --> 00:26:16,960 Go back to the, 555 00:26:20,039 --> 00:26:21,240 the numbers. 556 00:26:21,240 --> 00:26:24,160 For one service area, we're seeing a single family 557 00:26:24,160 --> 00:26:29,160 equivalent growth of 12,041 additional SFEs, 558 00:26:29,279 --> 00:26:31,819 or service units for the system. 559 00:26:33,559 --> 00:26:37,759 The cost, the impact fee cost, existing 21 projects, 560 00:26:37,759 --> 00:26:39,880 19 proposed, a total of 40. 561 00:26:40,799 --> 00:26:45,039 For a total of 156, approximately $156 million 562 00:26:45,039 --> 00:26:46,740 were the capital projects. 563 00:26:48,900 --> 00:26:51,839 We talked about the, what the, 564 00:26:51,839 --> 00:26:55,000 the table looked like for the projects. 565 00:26:55,000 --> 00:26:57,819 Here's another representative, very similar to the water. 566 00:26:58,759 --> 00:27:02,099 And so we're gonna focus on this particular project, 567 00:27:02,099 --> 00:27:06,539 similar methodology, where you see that 568 00:27:06,539 --> 00:27:10,680 of the South Wet Weather Lift Station and detention pond, 569 00:27:10,680 --> 00:27:13,539 48% of that's being utilized today already. 570 00:27:13,539 --> 00:27:15,640 This is an existing project. 571 00:27:15,640 --> 00:27:19,119 We're expecting to recover 14% over the next 10 years, 572 00:27:19,119 --> 00:27:23,039 and then we'll look at recovering the last 37% 573 00:27:23,039 --> 00:27:24,579 as we move into the future. 574 00:27:28,240 --> 00:27:29,720 We looked at the maps. 575 00:27:29,720 --> 00:27:34,720 Here's the CIP, impact fee CIP map for the wastewater. 576 00:27:36,720 --> 00:27:38,759 And here's the values here, similar graph 577 00:27:38,759 --> 00:27:41,119 that I showed you just a minute ago. 578 00:27:41,119 --> 00:27:45,119 The maximum fee calculated in 2013, $2,800, 2851. 579 00:27:47,180 --> 00:27:50,059 Your current fee is 2,200. 580 00:27:52,460 --> 00:27:55,119 The potential recovery number for 2018 now 581 00:27:55,119 --> 00:27:58,400 from the new study is 4716. 582 00:27:59,680 --> 00:28:03,599 And to go to looking at the recommendations from staff, 583 00:28:03,599 --> 00:28:05,599 from your current fee at 2,200, 584 00:28:06,599 --> 00:28:09,240 if you use the same methodology on the 2% inflation 585 00:28:09,240 --> 00:28:13,279 over the next five years, this number going to this number, 586 00:28:13,279 --> 00:28:15,680 the staff recommendation is 2450. 587 00:28:17,000 --> 00:28:20,799 So that's it in a nutshell. 588 00:28:23,440 --> 00:28:24,640 I'll be happy to answer questions. 589 00:28:24,640 --> 00:28:28,160 I know staff has got, PS and Tim especially, 590 00:28:28,160 --> 00:28:29,640 have a long history of working on this 591 00:28:29,640 --> 00:28:33,480 and the involvement of the impact fee capital program 592 00:28:33,480 --> 00:28:34,539 over the last 20 years. 593 00:28:34,539 --> 00:28:37,599 They've been here for all of that. 594 00:28:37,599 --> 00:28:40,599 And so they probably have the best responses 595 00:28:40,599 --> 00:28:42,920 if you're looking at historical kind of information 596 00:28:42,920 --> 00:28:43,920 and that sort of stuff. 597 00:28:43,920 --> 00:28:46,440 So feel free to ask whatever questions you'd like. 598 00:28:46,440 --> 00:28:48,480 - I just have a very basic question 599 00:28:48,480 --> 00:28:52,480 is why is staff not recommending the maximum fee? 600 00:28:54,400 --> 00:28:56,440 - I'll let staff respond to that. 601 00:28:56,440 --> 00:28:57,559 (laughing) 602 00:28:57,559 --> 00:28:58,400 Kenny or Tim? 603 00:29:00,119 --> 00:29:01,319 - Good question, Karen. 604 00:29:03,160 --> 00:29:05,759 That's really totally a policy decision 605 00:29:05,759 --> 00:29:08,160 that we'll get feedback from the board, 606 00:29:08,160 --> 00:29:11,400 feedback from the customer advisory committee 607 00:29:11,400 --> 00:29:12,680 and then the council, 608 00:29:12,680 --> 00:29:15,839 but staff is looking more at maintaining 609 00:29:15,839 --> 00:29:17,920 kind of status quo on fees. 610 00:29:17,920 --> 00:29:21,200 Some of that also gets into looking at 611 00:29:21,200 --> 00:29:26,200 where do our rates compare relative to other communities 612 00:29:26,839 --> 00:29:29,059 and then where do our impact fees compare 613 00:29:29,059 --> 00:29:30,740 relative to other communities. 614 00:29:31,839 --> 00:29:34,960 - Well, we just did a very thorough 615 00:29:34,960 --> 00:29:37,599 and complicated study and came up with a number 616 00:29:37,599 --> 00:29:39,960 and then just kind of ignored the number. 617 00:29:39,960 --> 00:29:41,799 Is that what happened or? 618 00:29:41,799 --> 00:29:44,599 - No, if you look at what happened five years ago, 619 00:29:44,599 --> 00:29:46,440 we did not go maximum. 620 00:29:46,440 --> 00:29:50,880 If you look way back at 2000 or 1998, 621 00:29:50,880 --> 00:29:52,160 we did do maximum. 622 00:29:52,160 --> 00:29:55,460 We did maximum in 2003. 623 00:29:55,460 --> 00:29:59,279 But as the aggregate capital costs got larger and larger, 624 00:29:59,279 --> 00:30:02,980 then we started detouring from maximum. 625 00:30:02,980 --> 00:30:05,039 Maximum is an option, 626 00:30:05,039 --> 00:30:07,880 but if you look at where you would land 627 00:30:07,880 --> 00:30:09,460 on impact fee surveys, 628 00:30:09,460 --> 00:30:10,880 that probably puts you pretty high. 629 00:30:10,880 --> 00:30:13,640 So then you have to balance where are you 630 00:30:13,640 --> 00:30:16,119 on rate competitiveness versus where you are 631 00:30:16,119 --> 00:30:16,960 on impact fee competitiveness. 632 00:30:16,960 --> 00:30:19,200 - I think your question is, it's a good one. 633 00:30:19,200 --> 00:30:21,359 And I don't like the use of the term maximum. 634 00:30:21,359 --> 00:30:22,319 It's really not what it is. 635 00:30:22,319 --> 00:30:23,519 It's really necessary. 636 00:30:23,519 --> 00:30:25,400 When you look at impact fees, 637 00:30:25,400 --> 00:30:27,680 it really is an equity buy-in to the system 638 00:30:27,680 --> 00:30:29,559 that all of our current customers 639 00:30:29,559 --> 00:30:31,440 have already started paying into. 640 00:30:31,440 --> 00:30:33,759 And the other thing, in the past, 641 00:30:33,759 --> 00:30:35,160 I think there's been a concern about 642 00:30:35,160 --> 00:30:36,519 is it getting too high, 643 00:30:36,519 --> 00:30:38,640 the price is too high to develop future lots. 644 00:30:38,640 --> 00:30:41,880 And I think that's really a political discussion, 645 00:30:41,880 --> 00:30:46,119 but we will move forward with the recommended fee 646 00:30:46,119 --> 00:30:48,119 based on the necessary buy-in. 647 00:30:48,119 --> 00:30:50,160 I think that the point is to get across, 648 00:30:50,160 --> 00:30:51,779 it didn't really come across that well today, 649 00:30:51,779 --> 00:30:54,279 but if the fees do get knocked down, 650 00:30:54,279 --> 00:30:56,140 that simply means existing customers 651 00:30:56,140 --> 00:30:58,599 are subsidizing new growth. 652 00:30:58,599 --> 00:31:01,480 And I think we can lay it out a little bit better. 653 00:31:01,480 --> 00:31:03,440 I really appreciate you asking the question 654 00:31:03,440 --> 00:31:04,720 'cause we still haven't communicated 655 00:31:04,720 --> 00:31:06,279 as crisply as we're trying to. 656 00:31:07,359 --> 00:31:08,200 - Okay, thanks. 657 00:31:09,920 --> 00:31:14,920 - So, I'm not charging the mic, 658 00:31:14,960 --> 00:31:16,680 which I appreciate when I don't let. 659 00:31:18,519 --> 00:31:23,519 Does that just extend the recovery time 660 00:31:24,200 --> 00:31:27,359 because you don't lose it, 661 00:31:27,359 --> 00:31:29,920 it just takes longer to recover? 662 00:31:29,920 --> 00:31:30,759 Is that correct? 663 00:31:30,759 --> 00:31:31,599 Am I living that right? 664 00:31:31,599 --> 00:31:32,839 - Yeah, I think there's a couple problems 665 00:31:32,839 --> 00:31:36,799 with not recouping that fee upfront. 666 00:31:36,799 --> 00:31:37,940 I mean, first of all, 667 00:31:37,940 --> 00:31:40,720 you're also looking at a static cost and time. 668 00:31:40,720 --> 00:31:41,980 And as we're moving on, 669 00:31:41,980 --> 00:31:43,339 it's only gonna get more expensive. 670 00:31:43,339 --> 00:31:45,400 So what happens is if you're not recovering 671 00:31:45,400 --> 00:31:47,880 the entire recommended rate upfront, 672 00:31:47,880 --> 00:31:49,619 it basically gets rolled into the rates. 673 00:31:49,619 --> 00:31:51,579 Those dollars have to come somewhere. 674 00:31:51,579 --> 00:31:53,200 And so that's what I'm saying. 675 00:31:53,200 --> 00:31:54,319 Karen's question's a good one 676 00:31:54,319 --> 00:31:57,400 because if you knock it down, 677 00:31:57,400 --> 00:31:59,200 then that small portion that's knocked down 678 00:31:59,200 --> 00:32:00,480 just is absorbed into the rates. 679 00:32:00,480 --> 00:32:02,279 Our costs are our costs at the end of the day. 680 00:32:02,279 --> 00:32:03,519 And we've already incurred some debt 681 00:32:03,519 --> 00:32:04,519 for these types of things. 682 00:32:04,519 --> 00:32:06,279 So that's exactly what happens. 683 00:32:10,240 --> 00:32:11,079 - Brendan? 684 00:32:11,079 --> 00:32:12,640 - I have a couple questions. 685 00:32:12,640 --> 00:32:16,200 For water, we created the three zones. 686 00:32:16,200 --> 00:32:19,160 How come there aren't any zones for wastewater? 687 00:32:23,200 --> 00:32:26,779 (audience member coughs) 688 00:32:29,599 --> 00:32:32,000 In water, there's a lot of connectivity. 689 00:32:32,000 --> 00:32:36,079 In wastewater, we have pretty defined areas. 690 00:32:36,079 --> 00:32:39,599 And there are areas in water side 691 00:32:39,599 --> 00:32:42,000 where there's not enough water infrastructure, 692 00:32:42,000 --> 00:32:43,940 especially on the southwest side. 693 00:32:43,940 --> 00:32:47,400 So there's a lot of expense going on in that direction 694 00:32:47,400 --> 00:32:51,039 that needed to be recovered through lots 695 00:32:51,039 --> 00:32:52,900 that are bought by other developers 696 00:32:52,900 --> 00:32:55,980 and city needed to recover that at a little bit higher rate 697 00:32:55,980 --> 00:32:56,200 . 698 00:32:56,200 --> 00:32:59,400 On the wastewater side, we don't really have that issue. 699 00:32:59,400 --> 00:33:03,319 We have sewer lines generally in place at this time. 700 00:33:03,319 --> 00:33:06,920 And to keep it simple that way, 701 00:33:06,920 --> 00:33:09,880 we chose to have one zone. 702 00:33:09,880 --> 00:33:13,000 That way we have same impact fee for the city, 703 00:33:13,000 --> 00:33:15,500 whether you develop north of the loop 704 00:33:15,500 --> 00:33:16,720 or develop south of the loop 705 00:33:16,720 --> 00:33:19,779 or in the southwest side or the southeast side. 706 00:33:20,880 --> 00:33:22,400 - Okay. 707 00:33:22,400 --> 00:33:23,359 Thank you. 708 00:33:23,359 --> 00:33:24,759 And then one more question. 709 00:33:24,759 --> 00:33:25,599 - Oh, go ahead, Anand. 710 00:33:25,599 --> 00:33:26,440 - I'm sorry. 711 00:33:26,440 --> 00:33:29,880 I just wanted to know how new development was defined. 712 00:33:30,720 --> 00:33:33,079 - New development is defined. 713 00:33:33,079 --> 00:33:35,359 As you saw, it's 10 year growth we have to look at. 714 00:33:35,359 --> 00:33:40,359 So from 2008 to 2000, sorry, 2018 to 2028, 715 00:33:42,279 --> 00:33:44,640 the land use assumptions are there. 716 00:33:44,640 --> 00:33:47,400 The projections are there as to based on the, 717 00:33:47,400 --> 00:33:49,799 what land use will be there based on the zoning 718 00:33:49,799 --> 00:33:51,480 that we have in place. 719 00:33:51,480 --> 00:33:54,079 And looking at the data from planning department, 720 00:33:54,079 --> 00:33:58,720 master and cog, we look at what industrial use 721 00:33:58,720 --> 00:34:01,000 will be there, what residential use will be there, 722 00:34:01,000 --> 00:34:02,720 what commercial use will be there. 723 00:34:02,720 --> 00:34:04,039 So those are called assumptions. 724 00:34:04,039 --> 00:34:06,039 That's why they're called assumptions. 725 00:34:06,039 --> 00:34:08,920 - I guess more specifically, it says new development 726 00:34:08,920 --> 00:34:11,539 and it's in italics, I think. 727 00:34:11,539 --> 00:34:15,780 And I was curious what, so does that mean 728 00:34:15,780 --> 00:34:18,239 we're talking about somebody who's coming in 729 00:34:18,239 --> 00:34:23,000 and putting houses on undeveloped land completely, 730 00:34:23,000 --> 00:34:26,019 or we assess this on somebody who tears down 731 00:34:26,019 --> 00:34:30,079 a single family home and puts up a four unit apartment? 732 00:34:30,079 --> 00:34:33,320 - Yes, if they tear up an existing home, 733 00:34:33,320 --> 00:34:35,320 like close to the campus area, 734 00:34:35,320 --> 00:34:37,920 and make it a multifamily, if you will say, 735 00:34:37,920 --> 00:34:40,639 they put four or six on there, 736 00:34:40,639 --> 00:34:43,199 what we do is we give them credit for the existing meter 737 00:34:43,199 --> 00:34:44,300 they already have. 738 00:34:44,300 --> 00:34:46,159 If they need a larger meter, 739 00:34:46,159 --> 00:34:48,519 because they need to service more units there, 740 00:34:48,519 --> 00:34:50,239 so which are the difference for it. 741 00:34:50,239 --> 00:34:53,119 - So all based on that five eighth inch. 742 00:34:53,119 --> 00:34:55,559 - It goes back to the service equivalence. 743 00:34:55,559 --> 00:34:56,559 - Okay, thank you. 744 00:34:57,800 --> 00:34:59,239 - Alan's got another one. 745 00:34:59,239 --> 00:35:00,079 Go ahead. 746 00:35:02,260 --> 00:35:04,159 - Not to make this too complicated, 747 00:35:04,159 --> 00:35:07,980 but this difference in fees and recovery. 748 00:35:10,880 --> 00:35:13,039 If I'm looking at this right, 749 00:35:13,039 --> 00:35:16,690 you're trying to treat the resident, the existing 750 00:35:16,690 --> 00:35:17,559 population 751 00:35:18,559 --> 00:35:22,619 fairly, but you gotta be competitive 752 00:35:22,619 --> 00:35:27,619 to encourage new growth on your impact. 753 00:35:27,619 --> 00:35:29,320 You don't wanna charge the maximum 754 00:35:29,320 --> 00:35:34,320 because that's gonna be a greater cost 755 00:35:34,639 --> 00:35:36,119 to the developers, et cetera. 756 00:35:37,000 --> 00:35:38,420 And if you don't have new growth, 757 00:35:38,420 --> 00:35:42,760 then you don't have new economic income, taxes, 758 00:35:43,880 --> 00:35:47,440 and so up here above the base, 759 00:35:47,440 --> 00:35:49,440 you are getting more revenue in 760 00:35:49,440 --> 00:35:51,079 because of that new growth, 761 00:35:51,079 --> 00:35:55,599 and to me it's almost an extended cost 762 00:35:55,599 --> 00:35:57,079 to encourage that growth, 763 00:35:57,980 --> 00:36:00,480 and that creates more revenue also. 764 00:36:00,480 --> 00:36:02,159 Is that correct, or am I looking at that wrong? 765 00:36:02,159 --> 00:36:05,760 - You have just made the holistic political argument. 766 00:36:05,760 --> 00:36:08,320 So that is the rationale people would use 767 00:36:08,320 --> 00:36:09,519 to knock down the field a bit, 768 00:36:09,519 --> 00:36:13,480 but it assumes that we're seeing growth 769 00:36:13,480 --> 00:36:17,800 as economic development versus both the water 770 00:36:17,800 --> 00:36:20,500 and sewer utilities, which are standalone systems. 771 00:36:20,500 --> 00:36:22,400 So we don't co-mingle funds, 772 00:36:22,400 --> 00:36:24,679 and what we're seeing is the total cost 773 00:36:24,679 --> 00:36:27,000 of the burden on both the water 774 00:36:27,000 --> 00:36:29,400 and wastewater systems is what it is. 775 00:36:30,619 --> 00:36:32,699 If you assume that you're gonna intermingle dollars 776 00:36:32,699 --> 00:36:34,880 and that it'll sort of all work out in the end, 777 00:36:34,880 --> 00:36:35,940 then you can make that argument, 778 00:36:35,940 --> 00:36:37,820 but that really is, that's the subtlety 779 00:36:37,820 --> 00:36:41,079 and why you see impact fees sometimes get knocked down. 780 00:36:42,119 --> 00:36:44,519 But the issue is you've got the burden already, 781 00:36:44,519 --> 00:36:47,079 and you're oversizing that 782 00:36:47,079 --> 00:36:50,539 based upon future income coming in. 783 00:36:50,539 --> 00:36:53,360 But yeah, this is why it's not such a clean discussion. 784 00:36:53,360 --> 00:36:55,719 We look at it from a fund perspective, 785 00:36:55,719 --> 00:36:57,719 an accounting perspective, is it is clean, 786 00:36:57,719 --> 00:37:00,360 and we're trying to keep those costs segregated. 787 00:37:00,360 --> 00:37:02,559 But you'd also, on the flip side with the taxes, 788 00:37:02,559 --> 00:37:04,000 yeah, I mean, there's no question 789 00:37:04,000 --> 00:37:05,699 there's an argument to be made that new growth, 790 00:37:05,699 --> 00:37:07,320 they spend more dollars in your community, 791 00:37:07,320 --> 00:37:10,079 and you see it on the general fund side of the house. 792 00:37:10,079 --> 00:37:11,079 - Right. - Right. 793 00:37:11,079 --> 00:37:14,639 - And the higher that impact fee gets, 794 00:37:14,639 --> 00:37:17,480 the higher the cost of housing in the community 795 00:37:17,480 --> 00:37:18,320 becomes too. - That's true. 796 00:37:18,320 --> 00:37:22,280 - And so you need to try to balance that out a little bit. 797 00:37:22,280 --> 00:37:23,119 - That's true. 798 00:37:24,840 --> 00:37:28,599 - I did have a question back on the water zones, 799 00:37:28,599 --> 00:37:31,480 just to wrap my head around. 800 00:37:31,480 --> 00:37:34,039 1A is the downtown area, 801 00:37:34,039 --> 00:37:37,440 and because that is pretty much developed, 802 00:37:37,440 --> 00:37:40,920 and you're gonna be just probably taking something down 803 00:37:40,920 --> 00:37:44,119 and replacing it, that's why that recovery cost 804 00:37:44,119 --> 00:37:45,840 is so much lower, correct? 805 00:37:45,840 --> 00:37:46,800 - Correct. - Okay. 806 00:37:46,800 --> 00:37:51,320 - And the zone 1A, the reason that 1A 807 00:37:51,320 --> 00:37:52,880 as opposed to a one, two, three, 808 00:37:52,880 --> 00:37:54,800 we started out with a single zone system, 809 00:37:54,800 --> 00:37:57,199 it had a single zone system for many years. 810 00:37:58,199 --> 00:37:59,960 About the third update, 811 00:37:59,960 --> 00:38:03,559 we had a lot of growth pressures in focus, 812 00:38:03,559 --> 00:38:07,039 a lot of zoning master plan communities 813 00:38:07,039 --> 00:38:08,360 in the far southwest, 814 00:38:08,360 --> 00:38:11,039 and we were struggling with economic ways 815 00:38:11,039 --> 00:38:12,800 to try to deal with that. 816 00:38:12,800 --> 00:38:16,079 And so we created this zone two. 817 00:38:16,079 --> 00:38:17,599 It has some cutouts in it. 818 00:38:17,599 --> 00:38:18,800 Well, what are those cutouts? 819 00:38:18,800 --> 00:38:20,719 Well, those are actually developments 820 00:38:20,719 --> 00:38:24,920 that we had already negotiated some solution for them, 821 00:38:24,920 --> 00:38:26,880 and so from an equity standpoint, 822 00:38:26,880 --> 00:38:30,880 we felt they needed to be in the same citywide zone. 823 00:38:30,880 --> 00:38:33,400 One of them was actually a litigation 824 00:38:33,400 --> 00:38:36,719 situation where they were paying a surcharge premium, 825 00:38:36,719 --> 00:38:38,960 and the language in that agreement 826 00:38:38,960 --> 00:38:42,159 required them to be paying citywide impact fees. 827 00:38:42,159 --> 00:38:45,840 So that's the country likes area down here, ropes, 828 00:38:45,840 --> 00:38:48,440 and we had some negotiations with also. 829 00:38:49,960 --> 00:38:51,199 So we created that zone. 830 00:38:51,199 --> 00:38:56,199 Well, a lot of interest and policy direction 831 00:38:56,440 --> 00:38:59,400 came out of the council historically in long term. 832 00:38:59,400 --> 00:39:02,159 Well, why do we have impact fees downtown? 833 00:39:02,159 --> 00:39:05,760 You know, the infrastructures there was the argument, 834 00:39:05,760 --> 00:39:07,440 and while that's a good argument, 835 00:39:07,440 --> 00:39:09,039 some of the infrastructure's there, 836 00:39:09,039 --> 00:39:12,000 but the infrastructure it consumes 837 00:39:12,000 --> 00:39:14,920 is very common to citywide water plants, 838 00:39:14,920 --> 00:39:17,480 lakes, transmission into town. 839 00:39:17,480 --> 00:39:22,480 So that zone 1A that was a section of the zone one 840 00:39:24,360 --> 00:39:27,960 was created, and it matches the planning boundary 841 00:39:27,960 --> 00:39:29,519 for the infill zone. 842 00:39:29,519 --> 00:39:31,519 And when we ran the numbers, it showed that, 843 00:39:31,519 --> 00:39:33,679 well, there's a little bit of cost shift, 844 00:39:33,679 --> 00:39:37,760 and so that's why we have the three tiered system. 845 00:39:38,639 --> 00:39:41,239 So that was just created the last go around. 846 00:39:41,239 --> 00:39:44,119 We didn't really see any reason to complicate it 847 00:39:44,119 --> 00:39:45,000 or change that. 848 00:39:45,000 --> 00:39:48,000 We just stayed with it when we did this update. 849 00:39:48,000 --> 00:39:48,840 That helped. 850 00:39:49,800 --> 00:39:50,800 - All right, thank you. 851 00:39:52,199 --> 00:39:53,840 - I have one more question, sorry. 852 00:39:53,840 --> 00:39:55,079 - Go ahead, no, go ahead. 853 00:39:55,079 --> 00:39:58,559 - Are these fees assessed when a developer 854 00:39:58,559 --> 00:40:02,210 does a platting of land or when they actually begin 855 00:40:02,210 --> 00:40:02,679 building 856 00:40:02,679 --> 00:40:05,480 or when the meters are put in place? 857 00:40:05,480 --> 00:40:09,760 - When the original impact fee legislation came out in '87, 858 00:40:09,760 --> 00:40:12,199 you had a choice to do it at the time of platting 859 00:40:12,199 --> 00:40:14,000 or the time of building permitting. 860 00:40:14,000 --> 00:40:16,480 We chose at that time to do it 861 00:40:16,480 --> 00:40:18,599 at the time of building permitting. 862 00:40:18,599 --> 00:40:22,039 Impact fee legislation changed along the way, 863 00:40:22,039 --> 00:40:24,519 and then it restricted you to only do it 864 00:40:24,519 --> 00:40:26,400 at the time of building permitting. 865 00:40:26,400 --> 00:40:29,440 So when someone pulls a building permit 866 00:40:29,440 --> 00:40:34,440 and wants the meter to support that new building permit, 867 00:40:34,480 --> 00:40:37,119 then as a part of the building permit fee application, 868 00:40:37,119 --> 00:40:39,280 they have to pay the impact fees. 869 00:40:39,280 --> 00:40:42,079 - That kind of makes sense, 'cause if it's the plat, 870 00:40:42,079 --> 00:40:43,239 you're just saying you're gonna do it. 871 00:40:43,239 --> 00:40:44,079 You're not doing it. 872 00:40:44,079 --> 00:40:47,159 - There's a lot of front loading to charging by the plats. 873 00:40:47,159 --> 00:40:52,159 And so this was kind of a builder initiated legislation, 874 00:40:53,000 --> 00:40:56,480 and so it kind of restricted cities to do it 875 00:40:56,480 --> 00:40:57,840 at the time of building permit. 876 00:40:57,840 --> 00:40:59,780 - Okay, thank you. 877 00:41:00,840 --> 00:41:01,880 Other questions? 878 00:41:03,800 --> 00:41:07,840 And so we don't really take action, we're just direction? 879 00:41:07,840 --> 00:41:11,780 - We were looking for a kind of recommendation 880 00:41:11,780 --> 00:41:16,079 that what the staff presented is acceptable to the board. 881 00:41:16,079 --> 00:41:17,440 It's not state mandated, 882 00:41:17,440 --> 00:41:19,480 but we have always come back to the board 883 00:41:19,480 --> 00:41:22,400 and ask for here's the impact fee 884 00:41:22,400 --> 00:41:25,360 that the board agree so that we can take it 885 00:41:25,360 --> 00:41:27,400 as a recommendation to the council. 886 00:41:27,400 --> 00:41:28,280 And we'll do the same thing 887 00:41:28,280 --> 00:41:31,119 with the CIE, State Capital Improvement Advisory Committee. 888 00:41:31,119 --> 00:41:33,960 - Okay, so just a head shake, yeah, 889 00:41:33,960 --> 00:41:36,280 you're going in the right direction. 890 00:41:36,280 --> 00:41:37,599 - For us, that would be sufficient. 891 00:41:37,599 --> 00:41:42,039 - Okay, so, right direction? 892 00:41:42,039 --> 00:41:43,400 - Yeah. - Yeah, okay. 893 00:41:43,400 --> 00:41:45,079 - I think just in general, 894 00:41:45,079 --> 00:41:47,679 just clarify why you're not going for maximum, 895 00:41:47,679 --> 00:41:50,159 'cause to me, that was a big puzzle. 896 00:41:50,159 --> 00:41:51,559 - I feel that's not-- - Yeah. 897 00:41:51,559 --> 00:41:53,639 - And maybe show what the other communities 898 00:41:53,639 --> 00:41:54,760 impact fees look like. - Yeah. 899 00:41:54,760 --> 00:41:57,760 - 'Cause if it would put us way out of whack, 900 00:41:57,760 --> 00:41:59,960 obviously we're not gonna do that. 901 00:41:59,960 --> 00:42:02,159 - One of the things I think it's important to point out 902 00:42:02,159 --> 00:42:05,199 with regards to the staff recommended 903 00:42:05,199 --> 00:42:07,719 is that it's a staff recommended minimum. 904 00:42:07,719 --> 00:42:10,519 Currently our fees are actually lower 905 00:42:10,519 --> 00:42:15,519 than the full recovery fee that was in the 2013 study. 906 00:42:16,000 --> 00:42:18,760 And so as a result, a portion of the rate base 907 00:42:18,760 --> 00:42:21,840 is actually picking that cost up. 908 00:42:21,840 --> 00:42:25,960 So we made a recommended minimum 909 00:42:25,960 --> 00:42:29,239 by using that inflation-based adjustment 910 00:42:29,239 --> 00:42:34,239 so that the rate base would not be more burdened 911 00:42:34,239 --> 00:42:36,079 than it currently is. 912 00:42:36,079 --> 00:42:41,079 So the, if you go above that value, 913 00:42:41,800 --> 00:42:44,559 then you're actually shifting more 914 00:42:44,559 --> 00:42:48,119 on the recovery fee for the development. 915 00:42:48,119 --> 00:42:53,039 If you're keeping it at the recommendation, 916 00:42:53,039 --> 00:42:55,280 you're basically preserving that portion 917 00:42:55,280 --> 00:42:58,039 that's being paid for by the rate base. 918 00:42:58,039 --> 00:43:02,639 So it's really a political discussion 919 00:43:02,639 --> 00:43:06,679 as to whether or not you want to go above 920 00:43:06,679 --> 00:43:11,679 a particular value or all the way to the maximum. 921 00:43:11,880 --> 00:43:15,039 Our recommended minimum is if you went below that value, 922 00:43:15,039 --> 00:43:18,039 then you're pushing a larger proportion on the rate base 923 00:43:18,039 --> 00:43:20,039 than is currently being paid. 924 00:43:20,039 --> 00:43:23,719 So that's all we were trying to portray by that minimum. 925 00:43:23,719 --> 00:43:27,519 So that's why I say recommended minimum, 926 00:43:27,519 --> 00:43:29,719 it is not a staff recommendation. 927 00:43:34,480 --> 00:43:35,559 - Still good to move forward? 928 00:43:35,559 --> 00:43:36,400 - Sure. 929 00:43:37,679 --> 00:43:38,519 - Thank you. 930 00:43:40,519 --> 00:43:42,000 Since we moved to closed session, 931 00:43:42,000 --> 00:43:44,360 we're going to the consent agenda. 932 00:43:44,360 --> 00:43:47,639 Does any board member wish to pull one of the items 933 00:43:47,639 --> 00:43:49,960 from A through G? 934 00:43:56,320 --> 00:43:57,159 No? 935 00:43:58,360 --> 00:44:00,360 Brendan's looking very carefully. 936 00:44:00,360 --> 00:44:01,199 - No, no, no. - No? 937 00:44:01,199 --> 00:44:02,039 Okay. 938 00:44:02,039 --> 00:44:04,159 Then do we have a motion to approve 939 00:44:04,159 --> 00:44:06,719 the consent agenda items A through G? 940 00:44:06,719 --> 00:44:08,039 - So moved. 941 00:44:08,039 --> 00:44:09,079 - Second. 942 00:44:09,079 --> 00:44:10,280 - All in favor say aye. 943 00:44:10,280 --> 00:44:11,239 - Aye. - Aye. 944 00:44:11,239 --> 00:44:12,079 - Opposed? 945 00:44:13,280 --> 00:44:14,119 - Yes. 946 00:44:17,119 --> 00:44:20,320 - Let's go into items for individual consideration. 947 00:44:21,760 --> 00:44:24,239 Previously we had approved some of the board meetings 948 00:44:24,239 --> 00:44:27,920 by affirmation by just saying if there weren't any changes 949 00:44:27,920 --> 00:44:30,840 that then they're approved as presented. 950 00:44:30,840 --> 00:44:34,360 So seeing the two board members that were here, 951 00:44:34,360 --> 00:44:35,199 (laughs) 952 00:44:35,199 --> 00:44:37,639 are there any changes or corrections to the board minutes? 953 00:44:37,639 --> 00:44:38,480 No? 954 00:44:38,480 --> 00:44:39,320 All right. 955 00:44:39,320 --> 00:44:42,280 Then they stand approved as presented. 956 00:44:42,280 --> 00:44:43,519 ACM update. 957 00:44:45,360 --> 00:44:47,000 - Madam Chair, members of the board, 958 00:44:47,000 --> 00:44:50,800 real quick, nothing really to the report on the ACM update. 959 00:44:50,800 --> 00:44:53,840 You have your matrix there and there are a couple of items 960 00:44:53,840 --> 00:44:56,679 that'll be coming here in the next, excuse me, 961 00:44:56,679 --> 00:44:59,360 in the next few meetings by solid waste. 962 00:44:59,360 --> 00:45:01,039 However, at your place, 963 00:45:01,039 --> 00:45:03,639 there was an informal staff report that was left for you. 964 00:45:03,639 --> 00:45:07,000 It was presented or sent to the city council last Friday 965 00:45:07,000 --> 00:45:12,000 on a, we had a wastewater failure last week. 966 00:45:12,800 --> 00:45:16,159 And so just provide you a summary of what occurred 967 00:45:16,159 --> 00:45:18,840 and a picture there of some of the work that's been done. 968 00:45:18,840 --> 00:45:21,639 And we'll include this in your packet next time 969 00:45:21,639 --> 00:45:23,480 so that it's in the file. 970 00:45:23,480 --> 00:45:24,400 - Okay, thank you. 971 00:45:29,320 --> 00:45:31,239 And concluding items, 972 00:45:31,239 --> 00:45:34,320 I did wanna bring up the secretary position again. 973 00:45:34,320 --> 00:45:38,119 I do think we need to address that and get somebody elected 974 00:45:38,119 --> 00:45:42,159 because unfortunately last board meeting I was missing, 975 00:45:42,159 --> 00:45:43,079 Brendan was missing, 976 00:45:43,079 --> 00:45:45,960 and we didn't have a third person to chair. 977 00:45:45,960 --> 00:45:48,440 So if we could maybe move that forward 978 00:45:48,440 --> 00:45:49,920 in the next meeting or two. 979 00:45:52,679 --> 00:45:54,920 All right, so then do we just go into closed session? 980 00:45:54,920 --> 00:45:56,920 Is that what we do now or do we have to? 981 00:46:00,239 --> 00:46:01,199 Formally adjourn? 982 00:46:01,199 --> 00:46:02,159 Where are you, Larry? 983 00:46:04,880 --> 00:46:05,719 Okay. 984 00:46:06,840 --> 00:46:07,679 Oh, wait. 985 00:46:09,039 --> 00:46:11,800 - Prior to adjourning, I'd like to request that we add 986 00:46:11,800 --> 00:46:14,800 to a future agenda, 987 00:46:14,800 --> 00:46:17,599 an assessment of how the Ditton Energy Center 988 00:46:17,599 --> 00:46:18,760 performed this summer. 989 00:46:19,800 --> 00:46:20,639 - Sure. 990 00:46:20,639 --> 00:46:22,880 - I mean, since we had some questions about 991 00:46:22,880 --> 00:46:24,519 how it would actually perform 992 00:46:24,519 --> 00:46:26,679 and how it was proposed it would perform, 993 00:46:26,679 --> 00:46:29,239 we actually have a few months that we could look at 994 00:46:29,239 --> 00:46:32,440 to see how we did, if it was a swing and a miss 995 00:46:32,440 --> 00:46:34,039 or if we hit it out of the park. 996 00:46:35,639 --> 00:46:36,480 - Thank you, Brendan. 997 00:46:36,480 --> 00:46:37,559 I didn't see you going. 998 00:46:37,559 --> 00:46:39,760 - Sorry, I can always be loud. 999 00:46:42,000 --> 00:46:44,320 - So then motion to adjourn? 1000 00:46:44,320 --> 00:46:45,519 - By motion, we adjourn. 1001 00:46:46,920 --> 00:46:48,039 - Second. 1002 00:46:48,039 --> 00:46:49,320 - All in favor? 1003 00:46:49,320 --> 00:46:51,000 - Aye. 1004 00:46:51,000 --> 00:46:52,199 - Going to closed session.