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HomeMy WebLinkAboutCAP 2004-03-18 Minutes MINUTES OF THE REGULAR MEETING OF THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE OF THE CITY OF NORTH RICH LAND HILLS, TEXAS MARCH 18,2004 - 6:15 p.m. 1. CALL TO ORDER The meeting was called to order by Chairman Don Bowen at 6:17 p.m. 2. ROLL CALL PRESENT Chairman Don Bowen Richard Davis Bill Schopper Ted Nehring Brenda Cole James Laubacher Ken Sapp Suzy Compton Ex-Officio CITY STAFF Building Official City Planner Office Coordinator Assistant City Manager Director of Public Works Asst. Dir. Public Works Management Assistant Dave Pendley Donna Jackson Carolyn Huggins Bo Bass Mike Curtis Lance Barton Richard Abernethy Consultant Keith Reed Reed Municipal Services 3. CONSIDERATION OF THE MINUTES OF THE FEBRUARY 19, 2004, CAPITAL IMPROVEMENT ADVISORY COMMITTEE MEETING. APPROVED Mr. Nehring, seconded by Mr. Schopper, motioned to approve the minutes of the February 19, 2004, meeting. The motion carried unanimously (7-0). Page 1 3/18/04 Capital Improvement Advisory Committee ~--------"'--_<'._. _,.__,' __ __"_"'_.__<o~~_'_._~'~._______~_~~__... 4. REPORT ON IMPACT FEE FUND PROGRAM AS REQUIRED BY CHAPTER 395 LOCAL GOVERNMENT CODE APPROVED Mike Curtis, Director of Public Works, introduced Richard Abernethy, Management Assistant, Public Works Department. Richard put together the PowerPoint presentation that Mr. Curtis presented to the Committee. [copy in file] Mr. Curtis explained that this is the end of the current program and a consultant (Freese and Nichols) has been hired to work on the new impact fee updates. He explained that this Committee will meet every six months and that the information presented in the future will be more easily understood than the reports in the past. In future meetings there will be a review of the information presented at the last CIAC meeting, including detailed financial information, but there will also be a status report of the projects and how the money was spent. The current program was adopted in 1997 and is a 10-year program unless any of the assumptions change and then the program will be updated or revised. Changes have occurred and this 1 O-year program needs to be revised. Specifically, population projections have decreased. In 1997, the projected population was 100,000. In that range, more ground water storage and elevated storage would have been needed. COG has changed some of the projections based on build-out and the latest assumptions. The City has also changed some of the projections. The Little Bear Creek Corridor exists now. The Corridor can change with each project, but the more open space land that exists, the less residential houses will occur. A combination of the Comprehensive Land Use Plan changing, COG changing their forecasts over the last 6 to 7 years, and the population projections for North Richland Hills that are now in the 70,000 range has made a significant difference as the engineers continue to work on the latest update. In 1997, the City Council adopted the current plan and adopted to collect only 25% of the allowable fees. The City estimates how much money is going to be needed to complete a project, and 25% of those funds are collected. The City pays the developers as they come forward with their projects. They are paid out of the balance of the water and sewer accounts. However, the City has not been reimbursed for City projects. Mr. Davis: State statute says that this money must be spent over a certain timeframe or you give it back. Page 2 3/18/04 Capital Improvement Advisory Committee Mr. Curtis: Yes, but the timeframe is over the 1 O-year program. Mr. Davis: We aren't going to spend it all. Mr. Curtis: It's already spent. We just haven't transferred the money yet. Mr. Davis: That's the accounting that you have to fix? Mike: Yes. We are not in jeopardy of collecting too much money. By the City only collecting 25% of what we could have collected, we are not getting to the point where we'll have to reimburse monies. Mr. Davis: The money that is getting ready to be shifted -- does that money qualify to be used for these projects? Mr. Curtis: Yes, except for the first project listed: TITLE OF PROJECT ESTIMATED CONSTRUCTION COST IN 1997 · Misc. Small Water Main Replacements $2,000,000 -COMPLETED- This project was not eligible for impact fee reimbursement. This project was to replace smaller 2" and 4" lines with the 6" and 8" lines. Since 1997, $600,000 minimum a year has been spent to replace water mains. The City has spent more than the $2 million originally planned in this program. Mr. Davis: Why is this on the list if it is not eligible for reimbursement? Keith Reed: In order to show that the City would have to have $2 million out of its own money as it went through the program because a CIP project cannot be a catch-all. It can't be listed as miscellaneous replacements and parts. It must be a definitive program with a defined time of estimate for completion and a defined dollar amount for that particular project. · S.C.A.D.A. Implementation Program -COMPLETED- City project. $575,000 · College Hills Booster Pump Station Improvements -UNDERWAY- Impact fees will pay $140,000 of the total. $400,000 · Davis Blvd. Tank Improvements -COMPLETED- $650,000 · Rufe Snow Tank Improvements $400,000 Page 3 3/18/04 Capital Improvement Advisory Committee -- ".-.- _.__'__._...._______~----'"._- ,.P._----;---~-~'-_...,------"-~~~~---_..~-- -UNDER REEVALUATION- · Watauga Booster Pump Station Upgrade -COMPLETED- $243,000 · Basswood Pump Station and Ground Storage Tank -UNDER REEVALUATION- $1,692,000 · Developer Funded Projects $6,324,558 -$2.5 Million COMPLETED- Developer driven. Many water lines and sewer lines identified by the Impact Fee Study are not put in until the area develops. Most of these projects are reimbursable. Mr. Davis: If we ask the developer to put in a 12" line instead of what is normally an 8" line, we are paying the difference. Mr. Curtis: If the developer wants to put in 8" and through engineering we determine they need 12", if it's not identified in this program, then they are not eligible for impact fee reimbursement. The CIP budget that the City puts together every year is a comprehensive CIP program. The impact fee CIP program are only those impact fee projects that were determined, and those projects were used to determine the fees. Once the maximum fees were calculated, Council approved 25% of those fees. The projects listed above are the only ones for which we can spend the impact fees. Total estimated costs of the CIP projects are $12.2 million. Of that, $6.8 million have been completed. $2 million has been held back until the new population projections are known. Mr. Davis: There were some projects that were done that were eligible to receive funds from the impact fee account. How much of the $1.5 million balance will be transferred to cover these projects? Mr. Curtis: That decision has not been determined, but probably only $200,000 will be left in the account as a balance -- in case a development comes in between now and December so that there will be funds to pay the developer. Mr. Reed added that the cash balance should also include the fees that will be paid to the consultants, Freese and Nichols, for conducting the study. Mr. Curtis stated that the consultants will be paid $180,000. He also explained that the new impact fee laws require cities to either deduct the revenues that will be received from improvements, or charge no more than 50% of the calculated rate. Mr. Curtis then reviewed the sewer system projects. The total estimated costs of sewer CIP projects were $5.7 million, of which $1.5 million has been completed and approximately $500,000 are underway. Page 4 3/18/04 Capital Improvement Advisory Committee Mr. Curtis explained that there will be one more CIAC meeting under this program. Once the Freese and Nichols updated report is approved, CIAC will meet on a regular basis (semi-annually) to review the new program. Freese and Nichols will also give a pitch to CIAC prior to adoption of the new program. Mr. Curtis also reminded the Committee that the updated Comprehensive Land Use Plan must be adopted into the new impact fee study and that there must be public meetings on the land use prior to the adoption of the Comp Plan into the impact fee study. Richard Davis made a motion to accept the semi-annual report, which contained account balances on water and sewer impact fees and updates from the staff on the status of those projects, and Mr. Davis's motion recommends that the consultants give this Committee quarterly reports until the new study is adopted in December. Brenda Cole seconded the motion. The motion carried unanimously (7 -0). 5. ADJOURNMENT The meeting adjourned at 6:56 p.m. ffr.. O~ Don Bowen, Chairman William Schopper, Vice Chair Page 5 3/18/04 Capital Improvement Advisory Committee