The URL can be used to link to this page

Home My WebLink AboutAugust 24, 2020 Water and Wastewater Rate Advisory Committee Agenda PacketCity of Colleyville Page 1 Water and Wastewater Rate Advisory Committee AGENDA City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Monday, August 24, 2020 5:30 p.m. Executive Conference Room Third Floor – City Hall 1.CALL TO ORDER 2.REGULAR AGENDA ITEMS 2a Introduction of committee members and review of charge to the Committee 2b Review of the Capital Improvement Program budget and funding models 2c Discussion of recommendation(s) to the City Council 3.ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Thursday, August 20, 2020 by 5:00 p.m. Christine Loven, TRMC City Secretary A quorum of the City Council or any Colleyville Board, Commission, or Committee may be in attendance at this meeting. Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accommodations, please advise the City Secretary at least 48 hours in advance at 817.503.1130, and reasonable accommodations will be made to assist you. City of Colleyville Page 1 Water and Wastewater Rate Advisory Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2a Agenda Date 8/24/2020 Number Type Regular Agenda Items Department City Secretary Title Introduction of committee members and review of charge to the Committee Explanation This item provides for the committee members to introduce themselves and review the committee charge as provided for in attached Resolution R.20-4526. Attachments 1.Water and Wastewater Rate Advisory Committee Roster - August 2020 2.Resolution R-20-4526 WATER AND WASTEWATER RATE ADVISORY COMMITTEE RE-ESTABLISHED AUGUST 18, 2020 – RESOLUTION R-20-4526 CHAIR Tim Raine 3508 Fox Meadows Drive H: 817-360-6119 Timraine25@gmail.com VICE CHAIR Jeff Pistor 7200 Holly Lane H: 817-424-0056 W: 817-800-0004 jgpistor@verizon.net Raymond Allee 5907 Highland Hills Lane H: 817-675-2748 rayallee@aol.com Thomas Bauch 4201 Shadow Ridge Drive H: 817-577-1471 W: 817-312-2288 Tomb4201@gmail.com Claudia Bevill 119 Cheek-Sparger Road H: 817-849-1360 ckbevill@hotmail.com James Dove 800 Colleyville Terrace H: 817-713-2885 Jamesldove1@gmail.com Anthony Seris 5000 Montclair Drive H: 817-571-3132 W: 817-915-6428 aseris@hotmail.com CITY COUNCIL LIAISON Mayor Richard Newton 1208 Holly Lane H: 817-247-1642 rnewton@colleyville.com CITY COUNCIL LIAISON George Dodson 7309 Balmoral Drive H: 817-937-3198 gdodson@colleyville.com RESOLUTION R-20-4526 A RESOLUTION RE-ESTABLISHING THE WATER AND WASTEWATER RATE ADVISORY COMMITTEE, PROVIDING A CHARGE, AND ESTABLISHING A DATE FOR THE FINAL REPORT SUBMITTAL WHEREAS, the City Council approved Resolution R-17-4156 on July 18, 2017, and re-established the Water and Wastewater Rate Advisory Committee to review capital funding needs for the utility, identify capital funding options per the funding plan, and to develop a five year capital funding mechanism for the implementation of the capital funding plan; and WHEREAS, the City Council approved the committee's final report on November 7, 2017, and the Committee's charge was complete. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec. 1. THAT the City Council is re-establishing the Water and Wastewater Rate Advisory Committee. Sec. 2. THAT the following citizens are appointed to the Water and Wastewater Rate Advisory Committee: Ray Allee Thomas Bauch Claudia Bevill James Dove Jeff Pistor Tim Raine Anthony Seris Sec. 3. THAT Tim Raine is appointed as Chair, and Jeff Pistor is appointed as Vice Chair. Sec.4. That Councilmember George Dodson and Mayor Richard Newton are appointed City Council Liaisons. Sec. 5. THAT the City Manager shall provide administrative support services to the Water and Wastewater Rate Advisory Committee. Resolution R-20-4526 Page 2 of 2 Sec. 6. Upon issuance of the final report, the work of the Committee will be completed, and the terms of the Committee members will be concluded. Sec. 7. THAT the Water and Wastewater Rate Advisory Committee's responsibilities shall include: a. Review and recommend any necessary adjustments to the City's five-year Water and Wastewater Capital Improvement Plan funding plan to ensure continued funding without incurring debt. b. Providing a final report to the City Council by September 8, 2020. Sec.8. THAT this resolution shall take effect immediately upon passage. AND IT IS SO RESOLVED. APPROVED BY A VOTE OF 7 AYES, 0 NAYS ON THIS THE 18TH DAY OF AUGUST 2020. Mayor Richard Newton Aye Mayor Pro Tern Bobby Lindamood Aye Place 1, Tammy Nakamura Aye Place 3, Kathy Wheat Aye Place 4, George Dodson Aye Place 5, Chuck Kelley Aye Place 6, Callie Rigney Aye ATTEST: L Christine Loven, TRMC City Secretary CITY OF C,OLL-EYVILLE Richard Newton Mayor City of Colleyville Page 1 Water and Wastewater Rate Advisory Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2b Agenda Date 8/24/2020 Number Type Regular Agenda Items Department Finance Title Review of the Capital Improvement Program budget and funding models Explanation This item provides for Finance Director Kyle Lester to review the current Capital Improvement Program budget and funding models, and answer questions of the Committee. Attachments 1.CIP Rate Model Presentation Final Capital Improvement Plan Rate Water and Wastewater Rate Advisory Committee August 24, 2020 Background •Previously, Colleyville was operating with tiered rates with annual increases. Result was excess revenues •9/06/16: Colleyville City Council approves resolution to form the Citizens’ Water and Wastewater Advisory Committee •Objectives: review cost of service study and rate-setting strategy; make recommendation to City Council; educate community •Colleyville utility costs are three-fold: maintain and operate distribution system; major repairs and replacements; purchase treated water from the Trinity River Authority (TRA) Background •Committee Recommendation: fund three components with separate rates: •Static base-rate (based on meter size) funds distribution system •Separate base-rate funds capital items •Volumetric charge (based on what TRA charges for usage) funds the cost to purchase water Background •Operating and TRA rates were implemented immediately •Capital rates were delayed a year and kept low; have been using the build-up of cash for capital items •FY 2017 – Capital Improvement Plan rate put into place to fund capital projects; Utility Capital Fund created •Rate increased in FY20 while decreasing operations base rate by same amount, currently: 1” or less $ 2.72 1.5”$ 5.03 2”$ 7.81 3”$ 14.29 4”$ 23.54 96% of customers Background Original Options Presented in 10/2017 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 $ - $ 5.00 $ 10.00 $ 15.00 $ 20.00 $ 25.00 Original Option 1 Original Option 2 Original Option 3 Original Option 4 History of Efforts Original Options vs. Actual Rates FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 $ - $ 5.00 $ 10.00 $ 15.00 $ 20.00 $ 25.00 Actual Original Option 1 Original Option 2 Original Option 3 Original Option 4 Objective •To determine future strategy for setting this rate / establishing a policy going forward •Recommended adjustments could be brought back for formal City Council approval 10-Year CIP Avg. Annual Expense: $2.4 million, per historical spending and draft CIP Actual ProjectedDraft CIP for approval CIP Spending FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 Methodology •Started with the current draft CIP; extended spending averages through 2030 •Mirrored our CIP process; looked at 5-year rolling increments •Set rates to fund 5-year; roll forward and reassess annually •Key metric is maintaining our minimum fund balance MODEL OUTPUT Model Output $3.93 $5.83 $7.73 $9.77 $11.81 $13.85 $15.89 $17.93 $17.93 $17.93 Rate Change Graph 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 Model Output $3.93 $5.83 $7.73 $9.77 $11.81 $13.85 $15.89 $17.93 $17.93 $17.93 Rate Change Graph 20172018201920202021202220232024202520262027202820292030$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 Fund Performance 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Minimum Balance Ending Available Balance Revenues Expenditures Questions and Discussion City of Colleyville Page 1 Water and Wastewater Rate Advisory Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2c Agenda Date 8/24/2020 Number Type Regular Agenda Items Department City Secretary Title Discussion of recommendation(s) to the City Council Explanation This items provides for the Committee to formulate the recommendation(s) they will give to the City Council. Attachments