* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:02] OKAY, [1. CALL TO ORDER – 5:30 PM] SO FIRST I JUST WANNA [3. 2026-323 Receive a presentation on the impact fee program.] SAY WELCOME TO THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE, . UM, I AM ANDREA HOUSTON. I AM THE ASSISTANT UTILITIES DIRECTOR OVER ADMINISTRATION, AND I OVERSEE THE COLLECTION OF IMPACT FEES. AND I HAVE WITH ME TONIGHT ANDREW WILKINSON. HE'S OUR UTILITIES ENGINEER, AND, UH, HE MANAGES OUR CAPITAL IMPROVEMENT PROJECTS. SO, UM, UH, TONIGHT, UM, WE'RE JUST GONNA REVIEW, UM, KIND OF A IMPACT FEE 1 0 1. WE'RE GONNA UNDERSTAND CHAPTER 3 95, THE TEXAS LOCAL GOVERNMENT CODE AS THE FRAMEWORK FOR IMPACT FEES. WE'RE GONNA LEARN HOW THE IMPACT FEE PROGRAM WORKS HERE IN BERNIE, UNDERSTAND WHAT YOUR RESPONSIBILITIES ARE, UM, LEARN HOW YOUR RECOMMENDATIONS, SUPPORT CITY COUNCIL DECISIONS WITH THE IMPACT FEES. UH, WE'RE GONNA REVIEW WHAT THE CURRENT STATUSES OF THE PROGRAM. UH, ANDREW WILL GO OVER ALL OF OUR CAPITAL IMPROVEMENT PROJECTS, AND WE'LL GO OVER SOME FINANCIALS. SO, UM, ONE THING TO, TO UNDERSTAND THAT THIS COMMITTEE EXISTS BECAUSE TEXAS LAW REQUIRES AN ADVISORY COMMITTEE, UM, ANYTIME THE CITY ADOPTS OR UPDATES IMPACT FEES. SO WHY, WHY DOES BERNIE USE IMPACT FEES? WELL, CITY OF BERNIE IS GROWING. UM, WE CONTINUE TO EXPERIENCE THE RESIDENTIAL AND THE COMMERCIAL GROWTH. WE HAVE EXPANDED INTO THE ETJ, UM, AND THIS PUTS AN INCREASED DEMAND ON OUR INFRASTRUCTURE, AND THIS GROWTH REQUIRES ADDITIONAL CAPACITY TO, TO SERVE THIS GROWTH. WHAT IS AN IMPACT FEE? SO IT'S A ONE-TIME CHARGE COLLECTED FROM NEW DEVELOPMENT TO RECOVER THE DEVELOPMENT'S, PROPORTIONATE SHARE OF THE CAPITAL IMPROVEMENTS. UH, IT'S ASSESSED AT THE TIME OF PLATTING, AND IT'S PAID AT THE TIME OF AN APPLICATION FOR A WATER METER OR WASTEWATER SERVICE. IT'S NOT A, A TAX UTILITY RATE OR A MAINTENANCE FEE. AND THE MONIES CAN ONLY BE SPENT ON PROJECTS IN OUR CAPITAL IMPROVEMENTS PLAN CANNOT PAY FOR, UH, ROUTINE MAINTENANCE OR ANY DEFICIENCIES IN OUR EXISTING INFRASTRUCTURE. UH, ALL THE MONIES ARE TRACKED AS SEPARATE INST INTEREST BEARING ACCOUNTS. AND AGAIN, STATE LAW PROVIDES THE FRAMEWORK IN CHAPTER 3 95 OF THE LOCAL GOVERNMENT CODE. UH, IMPACT FEES, YOU KNOW, THEY'RE, THEY'RE, THEY PAY FOR GROWTH. AND RATHER THAN REQUIRING EXISTING, UH, TAXPAYERS, UH, UTILITY CUSTOMERS TO, UM, BEAR THE COST OF THE GROWTH, THE IMPACT FEES ALLOW US TO RECOVER A PORTION OF THOSE INFRASTRUCTURE COSTS FROM THE DEVELOPMENTS THAT ARE CREATING THE DEMAND IMPACT FEES. UH, AGAIN, I SAID THEY'RE ACCOUNTED FOR SEPARATELY. THEY, THEY NEED TO BE TRANSPARENT. WE NEED TO HAVE ACCOUNTABILITY, UM, AGAIN, ONLY CAN BE USED FOR CAPITAL IMPROVEMENT PROJECTS. IMPACT FEES MUST BE UPDATED PERIODICALLY. UH, WE'RE REQUIRED BY STATE LAW TO UPDATE THE IMPACT FEES AT LEAST EVERY FIVE YEARS. AND WE'LL GO OVER SOME MORE OF THAT DETAIL LATER. UM, OKAY. UH, AND THEN GOING OVER CHAPTER 3 95, THE, THE FRAMEWORK, UM, TEXAS LAW REQUIRES THAT THE IMPACT FEES BE BASED ON LAND USE ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN, ENGINEERING ANALYSIS, COST ALLOCATION METHODOLOGY. THERE IS A METHODOLOGY THAT'S IN 3 95, CHAPTER 3 95, UM, THAT OUR CONSULTANT USES TO, UH, DRAFT AN IMPACT FEE, UH, PLAN AND COME UP WITH THE, UH, IMPACT FEE AMOUNTS FOR WATER AND WASTEWATER. WE'RE REQUIRED TO HAVE PUBLIC HEARINGS, UM, AND THE ADVISORY COMMITTEE WILL REVIEW THAT DRAFT REPORT THAT OUR CONSULTANT WILL DRAFT. AND, UH, YOU ALL WILL MAKE RECOMMENDATIONS TO CITY COUNCIL BASED ON THAT REPORT. UH, LET'S SEE ABOUT, SO HERE'S THE CITY OF BERNIE'S IMPACT FEE PROCESS. UH, AGAIN, OUR CONSULTANT IS GOING TO, UM, TAKE A LOOK AT OUR LAND USE ASSUMPTIONS. THAT IS IN THE, UH, BERNIE MASTER PLAN. UH, OUR LAST, UM, PLAN WAS IN 2018. UM, EVERY 10 YEARS, UM, PLANNING DEPARTMENT IS REQUIRED TO UPDATE THAT MASTER PLAN. UH, I SPOKE WITH THE PLANNING DIRECTOR, UH, TODAY ABOUT IF THERE WAS A PLAN BEING UPDATED CURRENTLY, UM, OR IN THE NEAR FUTURE. HE SAID THAT THE ONLY THING THAT THEY WERE FOCUSING ON RIGHT NOW IS POPULATION PROJECTIONS. UH, THAT'S THE ONLY UPDATE THAT'S GOING ON RIGHT NOW. BUT HE SAID WITH THE, UM, THE MASTER PLAN AS FAR AS [00:05:01] THE LAND USE ASSUMPTIONS, DON'T, THOSE DON'T REALLY CHANGE SIGNIFICANTLY. UM, OVER TIME, THOSE PRETTY MUCH STAY THE SAME. AND, UH, WE'LL, WE'LL GO OVER THAT IN A MINUTE. OKAY? SO AGAIN, UM, YOU'LL MAKE A RECOMMENDATION TO CITY COUNCIL. CITY COUNCIL WILL A ADOPT THAT RECOMMENDATION, HOPEFULLY. AND THEN AGAIN, WE'LL COLLECT THOSE NEW FEES. RECENT, WE HAD SOME RECENT LEGISLATIVE UPDATES TO CHAPTER 3 95. UM, THE APPROVAL OF THE IMPOSITION OF AN IMPACT FEE REQUIRES AFFIRMATIVE VOTE OF TWO THIRDS. THAT USED TO BE THREE FIFTHS. UH, NOW THAT IT'S TWO THIRDS WITH A BOARD OF FIVE, WE'LL HAVE TO AT LEAST HAVE FOUR OF YOU BE AN APPROVAL. UM, OR ACTUALLY NO, THAT'LL BE CITY COUNCIL. THEY'LL NEED TO BE, HAVE FOUR OUT OF FIVE IN APPROVAL FOR PASSING ANY IMPACT FEES. ANOTHER NEW ITEM IS WE'RE RE OKAY. SO WE'RE REQUIRED TO UPDATE THE IMPACT FEES AT LEAST EVERY FIVE YEARS, BUT IF WE SEE SOMETHING THAT WARRANTS US TO UPDATE THEM SOONER, WE CAN UPDATE THEM SOONER. UM, NOW THERE'S A NEW UPDATE THAT SAYS WE CAN'T INCREASE FOR THREE YEARS FROM THE DATE THAT THE FEE WAS LAST ABDO ABDO ADOPTED OR INCREASED. SO WE HAVE NOW A, A THREE YEAR TIMEFRAME THAT WE HAVE TO ABIDE BY, UM, THE ADVISORY COMMITTEE MEMBERS. SO WHAT I DIDN'T MENTION IN THE BEGINNING IS THIS, THIS COMMITTEE USED TO BE CALLED THE IMPACT FEE ADVISORY BOARD, AND THE PLANNING AND ZONING COMMISSION ACTED AS THAT BOARD. WELL, STATE LAW SAYS THAT NO MORE PLANNING AND ZONING CANNOT ACT AS THE, UH, ACT AS THIS BOARD AND TO BE CONSISTENT WITH STATE LAW LANGUAGE. THEY CALL THIS THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE. SO WE'VE CHANGED THE NAME. UM, THIS COMMITTEE MUST RE REPRESENT AT LEAST 50% OF REAL ESTATE DEVELOPMENT OR BUILDING INDUSTRIES. UH, USED TO BE 40%. UH, ANOTHER NEW ITEM, UM, IS AN INDEPENDENT FINANCIAL AUDIT MUST BE PERFORMED PRIOR TO ANY INCREASE IN AN IMPACT FEE OR THE ADOPTION OF A NEW FEE, AND MADE A PUB MADE AVAILABLE TO THE PUBLIC 30 DAYS BEFORE WE HAVE A NOTICE OF HEARING ON ANY CHANGES IN OUR, UH, IMPACT FEE, UH, PLAN. UM, SO THIS INDEPENDENT FINANCIAL AUDIT HAS TO BE INDEPENDENT FROM THE CITY'S AUDITOR THAT AUDITS OUR FINANCES NOW HAS TO BE A COMPLETELY SEPARATE AUDIT. SO THAT IS SOMETHING THAT WE WILL BE LOOKING TO FIND, UH, AN INDEPENDENT FINANCIAL AUDITOR TO AUDIT OUR IMPACT FEE PROGRAM. UH, LAST ITEM. SO INFORMATION ABOUT LAND USE ASSUMPTIONS AND CAPITAL IMPROVEMENTS PLAN MUST BE MADE AVAILABLE TO THE PUBLIC AT LEAST 60 DAYS BEFORE THE DATE OF THE FIRST PUBLICATION OF THE NOTICE OF HEARING. UH, SO THAT JUST THAT COMPOUNDED ON, YOU KNOW, MAKING AVAILABLE TO THE PUBLIC. THIS FINANCIAL AUDIT 30 DAYS BEFORE HEARING, UM, PUTS A LOT MORE, UH, WORK ON US. ANDREA, WHERE ARE, WHERE ARE WE ON THE, SINCE THE LAST TIME IT WAS INCREASED? SO I'LL GET TO THAT SLIDE HERE PRETTY SOON, BUT IT WAS IN 2023 WAS THE LAST TIME THAT WE, UM, WE INCREASED OUR FEES. WELL, WE KIND OF FLIP FLOP, FLIP FLOP BETWEEN WATER AND SEWER. WE, UM, WE INCREASED ON THE SEWER IMPACT FEE SIDE AND DECREASED ON THE WATER. IS THAT RIGHT? YEAH. UM, IT'S THIS WHOLE CALCULATION AGAIN THAT OUR CONSULTANT DOES BASED ON POPULATION PROJECTIONS, LAND USE ASSUMPTIONS, UM, AND LOOKING AT OUR CAPITAL IMPROVEMENT PROJECTS THAT WE HAVE, UM, DEPENDING ON IF THEY'RE FOR WATER WASTEWATER. UM, AND THAT'S HOW THEY COME UP WITH THE, THE FEES. SO YOUR ROLE AS THE ADVISORY COMMITTEE. UH, SO YOU, SO HERE'S AN EXAMPLE OF WHAT THE CURRENT LAND USE ASSUMPTIONS, UH, LOOK LIKE FROM OUR 2018 MASTER PLAN. AGAIN, THE PLANNING DIRECTOR SAID THAT THIS IS, UH, THIS, THESE PROJECTIONS OR THESE ASSUMPTIONS, UM, WILL NOT CHANGE VERY DRASTICALLY. UM, WHEN IT COMES TIME TO DO THEIR 10 YEAR UPDATE IN 2028, THEY'RE GONNA LOOK PRETTY SIMILAR. SO YOUR ROLE IS YOU'RE GONNA ADVISE THE CITY, UH, REGARDING LAND USE ASSUMPTIONS. YOU'RE GONNA REVIEW THE CAPITAL IMPROVEMENTS PLAN. YOU'RE GONNA REVIEW THE PROPOSED IMPACT FEES, UH, THAT OUR CONSULTANT PUTS TOGETHER, UH, MONITORING, UM, OUR CAPITAL IMPROVEMENT PLANS, AND JUST HELPING ADVISE CITY COUNCIL WHEN YOU FEEL UPDATES ARE NEEDED. AND, AND, YOU KNOW, WE'RE, ANDREW AND I ARE HERE TO KIND OF HELP YOU, UM, GUIDE YOU WHEN WE FEEL LOOKING AT OUR CAPITAL IMPROVEMENT PLANS AND WHERE WE ARE, THAT, UM, SOMETHING MAY BE TO GET STARTED WITH AN UPDATE. [00:10:01] AND OUR LAST MEETING THAT WE HAD WITH OUR IMPACT FEE ADVISORY BOARD BOARD WITH THE PLANNING AND ZONING COMMISSION, WE HAD DONE JUST THAT, THAT LOOKING AT OUR CAPITAL IMPROVEMENT PROJECTS AND WHERE WE STAND, THAT WE FEEL IT'S TIME FOR AN UPDATE. OKAY? SO AGAIN, YOU'LL RECOMMEND A CITY COUNCIL, UH, AND THE CITY COUNCIL THAT ULTIMATELY WILL VOTE AND DECIDE ON ANY CHANGES TO THE IMPACT FEES. OKAY? AND, AND HERE WE GO. SO, 2023 WAS OUR LAST IMPACT FEE UPDATE. WE CONTRACTED WITH HDR ENGINEERING TO UPDATE, UM, OUR, UH, CAPITAL IMPROVEMENTS PLAN, LAND USE ASSUMPTIONS. THEY PROVIDED A DRAFT REPORT, UH, ON, IN FEBRUARY, 2023 AND DETERMINED A MAXIMUM IMPACT FEE, UH, FOR CONSIDERATION BY CITY COUNCIL. AND THE ADVISORY COMMITTEE VIEWED THIS DRAFT REPORT AND MADE A RECOMMENDATION TO CITY COUNCIL COUNCIL IN MARCH OF 2023 TO APPROVE THE LAND USE ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN, AND AN ULTIMATE MAXIMUM FEE FOR WATER AND WASTEWATER AT $7,629. UH, COUNSEL APPROVED THIS IN MAY, AND THE NEW IMPACT FEE, UH, ACTUALLY DECREASED, UH, BY 1,928 FROM OUR PREVIOUS IMPACT FEE OF 9,557. UH, ORDINANCE 20 25 20 IS OUR CURRENT IMPACT FEE, UH, ORDINANCE NUMBER. AND HERE, HERE IS OUR, OUR TIERED, UM, IMPACT FEES. THEY ARE PER METER SIZE. SO FOR EXAMPLE, FIVE EIGHTH INCH METER IS CONSIDERED TO BE ONE LUE. UH, THE NEXT SIZE UP A THREE QUARTER INCH IS ONE AND A HALF. AND THAT JUST MEANS THAT THE LARGER THE METER, THE MORE WATER THAT CAN FLOW THROUGH THAT METER AND THOSE FEES INCREASE AS THE WATER METER SIZE GOES UP. UH, HERE'S THIS IMPACT FEE COMPARISON SLIDE. THIS HAS CHANGED QUITE A BIT FROM OUR LAST UPDATE. CITY OF BERNIE USED TO BE KIND OF TOWARDS THE MIDDLE. UM, AS YOU CAN SEE THERE WE'RE ON ONE OF THE LOWEST ENDS OF THE IMPACT FEES WITH FAIR OAKS. UM, THEY REALLY SOARED, UM, UP THERE WITH THEIR TOTAL OF 30,956 IN IMPACT FEES FOR WATER AND WASTEWATER. UH, THIS SLIDE IS JUST SHOWING YOU AS OF JUNE OF 2026. THIS IS ANYBODY WHO HAS MADE AN IMPACT FEE PAYMENT. SO WE HAD 181 IN WATER AND 141 PAYMENTS IN SEWER. HERE'S THE AMOUNT OF MONEY THAT WE COLLECTED, UH, WATER AND SEWER. AND UH, AGAIN, ALL THESE FINANCIAL SLIDES WILL BE AS OF JUNE OF 2026. UH, HERE'S OUR EXPENDITURES. UM, WE DON'T, WE DON'T PAY FOR OUR, UH, INFRASTRUCTURE PROJECTS DIRECTLY FROM IMPACT FEES. WE, UM, TYPICALLY WHAT WE DO IS WE ISSUE DEBT AND, UH, WE PAY DEBT SERVICE. AND HERE'S WHERE OUR BALANCES STAND RIGHT NOW FOR WATER AND WASTEWATER, AGAIN, AS OF JUNE OF 2026. AND THAT TAKES US INTO THE CAPITAL IMPROVEMENT PROJECTS THAT ANDREW IS GOING TO GO OVER. UM, DO YOU ANYONE HAVE ANY QUESTIONS UP TO THIS POINT? OKAY. ALRIGHT, I'LL TAKE ANDREW OVER TO ANDREW. I ALRIGHT, THANKS ANDREA. OKAY. SO FOR OUR CAPITAL IMPROVEMENT PLAN, IT'S BROKEN INTO WASTEWATER AND WATER. SO THIS IS THE WATER CAPITAL IMPROVEMENT PLAN, OR CIP. UM, AGAIN, AS ANDREA MENTIONED, EVERYTHING LISTED IN HERE ARE PROJECTS THAT ARE, UH, DUE TO NEW DEVELOPMENT IN TOWN. IT'S NOT TO UPGRADE EXISTING INFRASTRUCTURE, MAINTAIN INFRASTRUCTURE OR HAVE YOU, IT'S ALL, IT'S ALL NEW DEVELOPMENT DRIVEN. SO THE IDEA IS IMPACT FEES, NEW DEVELOPMENT PAYS FOR NEW INFRASTRUCTURE NEEDED FOR THAT DEVELOPMENT. SO AS YOU SEE HERE, THERE'S UM, PROJECTS THAT ARE BROKEN BETWEEN WATER TREATMENT, WATER PUMPING SUPPLY, AND OUR RECLAIMED WATER SYSTEM, WHICH I'LL GET TO IN A SECOND. UM, FOR THE PUMPING AND SUPPLY PROJECTS, THOSE ARE ALL KIND OF COULD BE COUPLED TOGETHER. UM, THOSE PROJECTS ALL ARE ALL ASSOCIATED AS NEEDED FOR A NEW DEVELOPMENT ON THE EAST SIDE OF TOWN. AND A LOT OF OUR CAPITAL IMPROVEMENT PLAN PROJECTS ARE DUE TO GROWTH ON THE EAST SIDE OF THE SERVICE AREA. AND I HAVE A MAP HERE I CAN SHOW IN A SECOND. UM, A LOT OF THE PROJECTS LISTED HERE AS WELL ARE IN CONSTRUCTION OR GETTING CLOSE TO CONSTRUCTION. UM, ANOTHER REASON WHY AN UPDATE TO THE CIP IS NEEDED 'CAUSE WE HAVE NEW UPDATED PROJECT COSTS FOR THESE PROJECTS THAT NEED TO BE IMPLEMENTED INTO THAT UPDATE. UM, THE WATER TREATMENT PLANT EXPANSION, THE FIRST PROJECT LISTED HERE [00:15:01] IS FOR, AS YOU KNOW, WE HAVE A WATER TREATMENT PLANT AT THE BERNIE CITY LAKE THAT WE TAKE IN RAW WATER FROM THE CITY LAKE AND TREAT IT. UM, THE EXPANSION IS REALLY NEEDED 'CAUSE OF THE GROWTH IN TOWN, UH, TO PROVIDE ADDITIONAL TREATMENT CAPACITY. SO THAT'S WHY IT'S LISTED IN OUR IMPACT FEE, CIP. UM, AND THEN FOR THE RECLAIM SYSTEM, WELL ACTUALLY BEFORE I GET TO THAT, LET ME SKIP OVER TO THIS MAP 'CAUSE THIS REALLY HELPS. SO THIS IS A MAP OF OUR PROJECTS, UM, AND THE, WITH THE WATER SYSTEM. UM, AS YOU CAN SEE ON THAT EAST SIDE I MENTIONED, SO THE SUPPLY MAINS, THE TANK AND PUMP STATION, WE ALSO, UH, CONTRIBUTED TO OVERSIZING AND SUPPLY MAIN OUT TO GEORGE'S RANCH DEVELOPMENT. AND THAT'S WHAT ALL OF THESE PROJECTS ON THE EAST SIDE YOU SEE HERE ARE ASSOCIATED WITH IS GEORGE'S RANCH. UM, THE CITY ENTERED A DEVELOPER AGREEMENT TO SERVE POTABLE WATER TO THEM. SO THAT'S, UM, ESSENTIALLY WHY THESE PROJECTS ARE HERE TODAY IS TO PROVIDE THAT WATER SUPPLY. AND THEN OVER HERE ON THE WEST SIDE OF THE MAP, YOU CAN SEE OUR TREATMENT PLANT EXPANSION, UM, WHICH WILL TAKE OUR EXISTING PLANT FROM A 1.3 MGD PLANT TO A 1.5 MGD WITH EXPANSION UP TO 3.0 AT SOME POINT IN TIME WHEN NEEDED. UM, GOING BACK TO KIND OF GO OVER THE RECLAIM WATER PROJECTS LISTED HERE. SO AGAIN, NEW DEVELOPMENT ON THE EAST SIDE OF TOWN. UM, IF YOU'RE FAMILIAR, THE RECLAIMED WATER SYSTEM IS COMPLETELY SEPARATE FROM OUR POTABLE WATER SYSTEM. COMPLETELY DIFFERENT INFRASTRUCTURE. IT'S, WE CALL IT THE PURPLE PIPE. UM, IT'S INDEPENDENT OF OUR WATER SYSTEM AND IT COMES FROM THE, UH, TREATED EFFLUENT OF OUR, AT OUR WASTEWATER TREATMENT PLANT ON OLD SAN ANTONIO ROAD OR THE WASTEWATER TREATMENT AND RECYCLING CENTER. WE CALL IT WW TRC. UM, SO FROM THERE IT GETS DISTRIBUTED TO, TO ESSENTIALLY TWO DEVELOPMENTS ON THE EAST SIDE OF TOWN RANCHES AT CREEKSIDE AND ESPERANZA DEVELOPMENT. UH, WE HAVE SOME CUSTOMERS, UM, THROUGHOUT THE AREA AS WELL IN THAT SIDE OF TOWN, BUT THOSE ARE THE TWO PRIMARY CUSTOMERS. AND WHAT THE SYSTEM DOES IS BRING, UM, IRRIGATION TO THOSE DEVELOPMENTS. SO IT'S STRICTLY FOR IRRIGATION, IT'S NOT FOR ANY, ANY OTHER USE. UM, SO THESE PROJECTS ARE CONTRIBUTING TO THAT GROWTH ON THAT SIDE OF TOWN. I HAVE A MAP HERE AS WELL TO SHOW THAT. SO AS YOU CAN SEE, ALL THE PURPLE ON THE EAST SIDE, THAT'S PRIMARILY WHERE OUR RECLAIM SYSTEM EXISTS TODAY. UM, THERE IS OBVIOUSLY A, A DESIRE FROM COUNCIL TO EXPAND THE RECLAIM SYSTEM, BUT TO GET RECLAIMED WATER, WE NEED MORE WASTEWATER. THAT'S HOW IT WORKS. WASTEWATER NEEDS TO FLOW, NEEDS TO INCREASE TO GET MORE RECLAIMED WATER. HOW MUCH OF THE EFFLUENT IS ENTERING THE PURPLE PIPE? UH, A HUNDRED PERCENT DURING THE PEAK TIME OF DAY. A HUNDRED PERCENT. YEAH, FOR SURE. YES. AND IT TAKES US INTO THE OVERNIGHT HOURS TO RECHARGE THE SYSTEM AND THEN IT, ONCE IT'S TOPPED OUT AND THE TANKS SAY, HEY, I'M FULL, IT'LL START DISCHARGING TO THE CREEK AS USUAL. UH, BUT MORE OFTEN THAN NOT, IT'S RECHARGING THE RECLAIM SYSTEM. AND THAT'S AT MANGA CREEK? UM, IT'S SLO IT'S SO SLO CREEK. OKAY. THAT, THAT GOES BEHIND THE TREATMENT PLANT. UM, YEAH, SO THAT, THAT'S A GREAT QUESTION. UM, THE, THE RECLAIM SYSTEM IS IN HIGH DEMAND RIGHT NOW BECAUSE IT'S THE PEAK TIME OF YEAR, IT'S THE SUMMERTIME. UM, AND THE NON-PE TIMES OF YEAR, I WOULD SAY IT'S DISCHARGING INTO THE CREEK MORE, UM, OFTEN THAN RECHARGING THE SYSTEM. SO IT'S JUST THAT TIME OF YEAR PEOPLE ARE WATERING AND THOSE, THE RAIN WE'VE HAD THIS SUMMER THOUGH, HAS HELPED KIND OF PROVIDE SOME RELIEF TO THAT DEMAND, BUT IT'S STILL THERE, ESPECIALLY AS AUGUST HAS STARTED. UH, BUT THESE PROJECTS LISTED HERE, AS YOU SEE, UM, TRAILS OF HERF RANCH, RECLAIM MAINE, THAT'S JUST THE LOOPING OF THE RECLAIM SYSTEM AS WELL AS EXPANDING THE SYSTEM INTO TRAILS OF HERF RANCH, UH, SOUTH 46 MAIN BOAR. THAT'S TO LOOP THE SYSTEM BETWEEN RANCHES AT CREEKSIDE AND ESPERANZA. CURRENTLY WE ONLY HAVE ONE, UH, RECLAIM MAIN UP TO THE ESPERANZA DEVELOPMENT. THAT'S THIS ONE YOU SEE ALONG BROWN'S CREEK HERE. SO THIS SOUTH HIGHWAY 46 MAIN BOAR WILL PROVIDE A SECOND CONNECTION BETWEEN THOSE TWO SYSTEMS. THE WW TRC STORAGE TANK OF PUMPS, THAT'S JUST AN EXPANSION OF OUR, UM, STORAGE AT THE, AT THE TREATMENT PLANT. UH, 'CAUSE AFTER IT GOES THROUGH THE TREATMENT PROCESS, IT GETS STORED IN A GROUND STORAGE TANK. UM, WHEN THE SYSTEM IS IN HIGH DEMAND, IT WILL KICK ON THE HIGH SERVICE PUMPS AND SEND RECLAIMED WATER OUT AS NEEDED FROM THERE. IS THIS USED BY THE, UM, BY THE DEVELOPMENT FOR LIKE THE, THE PROPERTY OR THE PRIVATE HOMEOWNERS OR BOTH? WHAT DO YOU MEAN EXACTLY? LIKE IS IT WATERING THE GRASS IN THE COMMUNAL AREAS OR IS IT ALSO BEING USED TO WATER PEOPLE'S FRONT YARDS? IT'S BOTH. IT'S FOR SINGLE FAMILY RESIDENTIAL. GOOD QUESTION. YEAH. SINGLE FAMILY RESIDENTIAL AND ESPERANZA AND RANCHES AT CREEKSIDE AS WELL AS SOME COMMERCIAL AREAS USE IT [00:20:01] FOR, FOR WATERING AS WELL AS UH, OPEN SPACE LOTS FOR THE PARKS. AND UM, AND ESPERANZA, IF YOU SEE THE SPRINKLER HEADS GOING IN THE ISLANDS OR MEDIAN AREAS, THAT'S ALL RECLAIMED WATER. OKAY. AND DREW, THEY, THEY'RE SEPARATELY METERED, CORRECT? CORRECT. SO SINGLE FAMILY RESIDENCE IS USING THEM, THEY'VE GOT POTABLE WATER PLUS THE RECLAIMED WATER. YES, SIR. SEPARATE METERS? THAT IS CORRECT. SO THERE'S A POTABLE WATER METER ON ONE SIDE OF THE LOT AND A RECLAIMED WATER METER ON THE OTHER SIDE OF THE LOT. THEY'RE NOT SIDE BY SIDE ON PURPOSE 'CAUSE WE DON'T WANT THEM BEING CONFUSED. UM, BUT YEAH, THE RECLAIM WATER METER WILL HAVE A PURPLE LID. UH, ALL THE HEADS ON THE IRRIGATION ARE REQUIRED TO BE PURPLE. THE PIPE'S REQUIRED TO BE PURPLE. IT'S, IT'S ALL PURPLE ON PURPOSE. THAT WAY THERE'S NO CONFUSION THAT THAT IS NOT THE POTABLE WATER THAT IS ONLY STRICTLY FOR IRRIGATION. AND WE'RE ONE OF THE ONLY, UM, COMMUNITIES IN THE STATE THAT PROVIDE THAT DIRECT, UH, TO THE RESIDENT IRRIGATION FOR WITH RECLAIMED WATER. SO BERNIE IS ON, ON TOP OF IT WHEN IT COMES TO THIS. UM, IT'S PRETTY RARE, SO KUDOS TO BERNIE FOR BEING AHEAD OF THAT CURVE. AND WE HAVE OUR WASTEWATER CIP SO A LOT OF THESE PROJECTS, AGAIN, UM, IT'S ALL GROWTH DRIVEN, BUT UM, THE TREATMENT PLANT EXPANSION, THE ONE I MENTIONED, THE W-W-T-R-C, UM, THAT'S DUE TO UPCOMING GROWTH IN THE ESPERANZA AREA PRIMARILY. UM, AND AS WELL AS JUST INFILL AREAS IN TOWN. AND THAT GETS PHASED AS NEEDED AND WE'RE ENTERING WHERE WE NEED TO START THE NEXT PHASE OF OUR EXPANSION. WE'RE ALREADY IN DESIGN WITH OUR ENGINEER, UM, FOR THAT NEXT PHASE GOING THROUGH PERMITTING WITH THE TCQ. UM, BUT A LOT OF THE, THE SCOPE AND THE WHAT'S GOING INTO THAT EXPANSION HAS CHANGED SINCE THIS UPDATE WAS LAST DONE IN 2023. SO WE REALLY NEED TO UPDATE THE CIP AS MENTIONED PREVIOUSLY TO UPDATE THOSE COSTS. 'CAUSE PROJECT COSTS FOR FACILITY AND AND CONSTRUCTION WHEN IT COMES TO TREATMENT HAS SIGNIFICANTLY INCREASED FROM THESE NUMBERS SHOWN. UM, THIS, I FORGOT TO MENTION, THIS IS BROKEN BETWEEN JUST LIKE THE WATER, HOW IT'S BROKEN BETWEEN TREATMENT SUPPLY. THIS IS BROKEN UP BETWEEN TREATMENT PUMPING AND INTERCEPTORS, MEANING THE MAINS, THE SEWER MAINS THAT TAKE THE SEWER. UM, SO THE LIFT STATIONS, WE HAVE ONE IN THERE FOR OUR SCHOOL LIFT STATION, WHICH I'LL JUST SKIP OVER TO THE MAPS. IT'S EASIER TO TALK WITH THAT. SO WE CALL IT THE SCHOOL LIFT STATION 'CAUSE IT'S CLOSEST TO THE KENDALL ELEMENTARY SCHOOL, BERNIE MILL SCHOOL SOUTH. UM, IT SERVES THEIR SEWER FLOW COMES TO THAT, THAT LIFT STATION. BUT THE SCHOOL LIFT STATION REALLY PROVIDES, UM, UH, COLLECTS THE SEWER RATHER FROM A LOT OF THE AREA ON THAT SOUTHERN SEWER SHED. UM, FROM SOUTH GLEN DOWN TO KENDALL CREEK ESTATES, REGENT PARK, CORLEY FARMS. WE ALSO HAVE A WHOLESALE SEWER AGREEMENT WITH CORLEY FARMS THAT WE ACCEPT THEIR FLOW. ALL OF THAT COMES INTO THAT SCHOOL LIFT STATION GETS PUMPED UP TO IT. AND FROM THERE IT WILL GET PUMPED UP TO OUR TREATMENT PLANT IN OLD ANTONIO. SO IT'S A, IT'S A PRETTY BIG LIFT STATION AND HAS A LOT OF, UH, IMPORTANCE TO IT. SO WE ARE NEEDING TO EXPAND IT BECAUSE OF THE GROWTH ON THE SOUTH SIDE OF TOWN. UM, AND THAT'S WHAT THAT PROJECT ENTAILS IS AN IS A THIRD WET, WELL WE HAVE TWO WET WELLS TODAY. IT WILL ALSO INCLUDE SOME ADDITIONAL PUMPS AND EVENTUALLY WE'LL NEED TO, UM, INSTALL A NEW FORCE MAIN OR UPGRADE THE EXISTING FORCE MAIN TO TAKE THAT ADDITIONAL FLOW. THAT'S A PROJECT AGAIN THAT NEEDS TO BE ADDED TO OUR CIP TO ACCOUNT FOR THAT. UM, OTHER PROJECTS THAT ARE SHOWN HERE, THE SOUTH CILLO COLLECTOR MAIN, UH, UH, THAT YOU CAN SEE HERE BETWEEN HERF ROAD AND LEADING TO OUR TRANSMISSION MAIN, THAT EVENTUALLY LEADS TO THE TREATMENT PLANT. THIS MAIN WILL, UH, COME INTO PLAY WHEN WE DECIDE THAT WE NEED TO, UM, DIVERT FLOW FROM THE ESER ROAD PLANT. SO WE HAVE TWO TREATMENT PLANTS IN TOWN. ONE IS THIS W-W-T-R-C I'VE BEEN TALKING ABOUT, AND THERE'S A SECOND ONE ON ESER ROAD. THE ESER ROAD PLANT IS THE OLDER PLANT IN TOWN. UM, IT'S THE ORIGINAL, UM, IT'S SMALLER PLANT. IT HAS OLDER TECHNOLOGY, UM, AS IT ALSO PRIMARILY SERVES THE OLDER SIDE OF TOWN. SO IT HAS A LOT OF OLDER INFRASTRUCTURE THAT DRAINS TO IT. SO BECAUSE OF THAT, THE PIPES ARE OLDER, THERE'S MORE INFLOW AND INFILTRATION WE CALL IT, OR INI, UM, THAT GETS INTO THE PIPES AND WE END UP TREATING MORE STORM WATER THAN WE WOULD LIKE. SO THAT CLIENT UNFORTUNATELY HAS RECEIVED A LOT OF, UH, FLOW OVER THE YEARS AS WELL AS JUST FROM, UH, GROWTH IN THAT AREA AS WELL. UM, AND BECAUSE OF THAT, THE TCQ HAS REQUIREMENTS, THEY CALL IT THE SEVENTY FIVE NINETY RULE. WHEN WE HIT 75%, WE HAVE TO BE IN DESIGN FOR EXPANSION OR SOMETHING TO CORRECT THAT. IN 90% RULE, WE HAVE TO BE IN CONSTRUCTION. THAT'S ONE OUR PLANT ESSER IS IN THAT PHASE WHERE WE NEED TO BE IN DESIGN PLANNING MODE, WHICH WE ARE. AND THAT'S THE SOUTH S COLLECTOR MAIN. INSTEAD OF EXPANDING OR UPGRADING OUR PLANT, WE'RE GOING TO BE TAKING FLOW FROM IT AND TAKING IT TO OUR NEW NEWER PLANT ON OLD SAN ANTONIO. UM, WILL IT EVER GO OFFLINE [00:25:01] THE SOMEDAY IT WILL JUST BECAUSE IT WILL EVENTUALLY BECOME AGED AND OBSOLETE? IT'S NOT PART OF THE PLAN RIGHT NOW. YEAH, BUT IT'S NOT, NOT IN THE FORESEEABLE FUTURE. UM, I SEE US KEEPING IT ONLINE FOR A WHILE AS MUCH AS WE CAN TO GET THE LIFE OUT OF IT THAT WE CAN. IT'LL BECOME A MUCH SMALLER TREATMENT PLANT THOUGH, UM, AND BE A LOT MORE MANAGEABLE THAT WAY TOO. AND WITH THE WW TRC, IT'S GOT A NEWER TECHNOLOGY, UM, NEWER TREATMENT TECHNOLOGY THAT IS. AND SO IT'S ABLE TO, UM, WITH THE EXPANSIONS THAT WE HAVE PHASED OUT, THE SITE IS LAID OUT IN SUCH A WAY THAT WE HAVE THE ROOM TO, TO BUILD OUT THE TREATMENT AS NEEDED. SO IT CAN TAKE ON, IS THERE A PLAN CONSTRUCTION START? WHAT'S THAT FOR THIS, IS THERE A PLANNED CONSTRUCTION START DATE FOR THIS? FOR THE SOUTH CILLO COLLECTOR? YEAH, IT'S CURRENTLY IN OUR, UM, CIP TO TO START IN 2028 I WANT TO SAY. OKAY. 2028. IT COULD BE A LITTLE LATER NOW. UM, BUT IT'S NEARING A HUNDRED PERCENT DESIGN. UM, THIS FISCAL YEAR WE SHOULD BE COMPLETE WITH DESIGN AND IT WILL JUST BE A MATTER OF WHERE'S TAKING IT OUT TO BID STRIKE. WHERE'S IT GONNA BE LOCATED NEXT TO THE, THE, THE CURRENT SEWER PLANT, THE BIG ONE ON OFF OF WHAT, WHAT'S THAT? WHERE WILL WE, WHERE WILL THE NEW ONE BE LOCATED? WILL IT BE AN EXPANSION OF THE EXISTING PLANT? THE NEWER PLANT? CORRECT. IT, IT'LL BE ON THE SAME SITE. OKAY. IT'LL JUST BE ADDING TREATMENT BAYS WHERE NEEDED, UM, CLARIFIERS, UM, EQUALIZATION BASINS, ALL THE DIFFERENT COMPONENTS WE NEED TO GET THAT ADDITIONAL CAPACITY FOR TREATMENT. BUT IT'LL BE ON THE SAME AND GET IT FROM THE OLD PLANT. YEAH. YEAH. PUMP IT OVER THERE. PUMP IT. WELL IT GOES TO THE NEW ONE. BUT THE, THE NEW, THE NEW EXPANSION WILL BE AT THE NEW CORRECT. IT'LL BE AT THE EXISTING, THE OLD LOCATION PLANT SITE ON OLD SAN ANTONIO. IT WON'T, IT WON'T BE AN INDEPENDENT PLANT. IT'LL BE JUST AN EXPANSION OF OUR EXISTING PLANT ON OLD SAN ANTONIO. WHEN THAT PROPERTY WAS PURCHASED, IT WAS PLANNED OUT AS TO AN ULTIMATE CAPACITY THAT EVENTUALLY WOULD BUILD OUT TO UM, SO THIS IS JUST FOLLOWING THOSE, THE PHASES OF EXPANSION FOR THAT PLANT. A COUPLE MORE HERE. I'LL JUST TOUCH ON THE TRAILS OF HERF RANCH MAINE UPGRADE SHOWN HERE. THAT'S JUST AN UPGRADE OF THAT SEWER TRUNK, MAINE. AS ESPERANZA DEVELOPS, ESPERANZA HAS SOME DEVELOPER CONTRIBUTIONS THAT THEY WILL CONTRIBUTE TO THESE PROJECTS AS WELL AS PART OF THEIR DEVELOPER AGREEMENT WITH THE CITY. AND THEN THE SUGGS CREEK SEWER MAINE IS A MAINE THAT WILL TAKE, WILL EXTEND THE SEWER FROM MAIN STREET, SOUTH MAIN STREET DOWN TO THE BUCKY'S PROPERTY AND EVENTUALLY TO REGENT PARK. UM, AGAIN, BUCKY'S WILL CONSTRUCT THAT MAINE, BUT THE CITY REIMBURSES FOR IT, WHICH IS WHY IT'S IN OUR CIP. THAT'S ALL I HAD ON. DO Y'ALL HAVE QUESTIONS? ANY ADDITIONAL QUESTIONS TO THE CIP? YEAH. . . YEAH. THIS IS THE MEAT AND POTATOES BASICALLY. YEAH. UM, ALL OF THE WORK THAT GOES INTO OUR CONSULTANT CREATING THE IMPACT FEE AMOUNT COMES FROM PRIMARILY THE LAND USE ASSUMPTIONS AND THE CAPITAL COSTS OF THE PROJECTS. SO WHILE YOU'RE THINKING ABOUT THAT, I'LL JUST GO OVER THE SUMMARY. SO LIKE I MENTIONED, A LOT OF THE PROJECTS ARE IN DESIGN OR CONSTRUCTION. UM, WE HAVE COLLECTIONS THAT ARE OUTPACING EXPENDITURES, WHICH IS GOOD. UH, IT'S KIND OF STILL ABOUT ON PACE WITH THAT. UH, SO OUR FEE, OUR IMPACT FEE FUND IS GROWING. UM, BUT WE HAVE OBVIOUSLY A NEED, UH, WITH ALL THESE PROJECTS. SO OUR NEXT UPDATE WE'RE LOOKING AT WOULD BE REQUIRED IN 2028, BUT WE'VE ALREADY RECOMMENDED, AS ANDREA MENTIONED, TO MOVE FORWARD WITH AN UPDATE AS SOON AS POSSIBLE. SO WE'RE LOOKING AT GETTING WITH OUR CONSULTANT AND FINANCE TO START THE, THE, UM, REQUIREMENTS FOR THE AUDIT THAT WE NEED. SO THAT'S UNDERWAY. AND UH, WITH THAT, I THINK OUR NEXT MEETING WE HAVE SCHEDULED IS NOVEMBER, DECEMBER, SOMETIME IN THERE, WHICHEVER WORKS FOR Y'ALL, WE CAN TALK ABOUT THAT DATE. I'LL OPEN IT UP TO ANY GENERAL QUESTIONS YOU MAY HAVE AT THIS TIME. YOU'LL HAVE THAT FOR US TO REVIEW THE NEXT MEETING. THE, UH, IMPACT FEE UPDATE? NO, IT WON'T BE READY BY NEXT MEETING. UM, WHAT WE PROBABLY NEED TO DO, AND ANDREA HELP ME OUT HERE IF YOU CAN, WE PROBABLY NEED TO HAVE, UM, A MORE EXTENSIVE LAYOUT OF WHAT THAT WILL LOOK LIKE IN THE NEXT MEETING. UH, WHAT, AS FAR AS LIKE WHAT CAPITAL IMPROVEMENT PLAN UPDATES WILL, THERE WILL BE, UH, WITH THE TIMELINE AND, AND HOW THAT WILL WORK, UH, 'CAUSE OF ALL THE NEW REQUIREMENTS THAT THE LEGISLATURE PUT ON THE IMPACT FEE PROGRAM? YEAH. WE CAN DO A PROPOSED TIMELINE MM-HMM . AND SHOW ALL OF THESE DUE DATES THAT WERE REQUIRED BY STATE LAW TO ABIDE BY. UM, I THINK THE VERY FIRST THING THAT WE CAN MOVE FORWARD WITH IS THAT INDEPENDENT FINANCIAL AUDIT. MM-HMM . SO IT'S JUST GETTING WITH OUR FINANCE DEPARTMENT AND, [00:30:01] AND SETTING THAT UP TO GET THAT AUDIT COMPLETED. UM, BUT YEAH, WE WILL, NEXT MEETING, WE'LL GIVE YOU A PROPOSED TIMELINE. WE'LL COME UP WITH SOME DATES THAT WE CAN STRIVE FOR TO MOVE FORWARD. SO I THINK AT OUR LAST MEETING WHEN I KNOW IT, A LOT OF YOU WEREN'T PART OF THE LAST GROUP, BUT WE DID TALK ABOUT ASKING IF Y'ALL AGREE TO GET STARTED AND THAT THAT BOARD AT THAT TIME AGREED. SO WE KIND OF STARTED THAT BALL GETTING THAT BALL ROLLING. UM, BUT THE FINANCIAL AUDIT IS THAT FIRST STEP THAT WE HAVE TO DO AND, UH, JUST TIMING THAT. AND SO WE'LL GO OVER ALL OF THAT AND WHAT THAT TIMELINE LOOKS LIKE TO GET THE UPDATE GOING. UH, I, I WOULD SUSPECT THAT NEXT YEAR WE'RE HITTING THE GROUND RUNNING AND WE'LL HAVE AN UPDATE IN 2027 TO PRESENT TO YOU AND, UH, FOR Y'ALL TO RECOMMEND FOR COUNSEL. ALRIGHT. PERFECT. THANKS ANDREW. NO PROBLEM. THAT'S IT. ANY OTHER QUESTIONS? ALRIGHT, WELL WE APPRECIATE Y'ALL BEING HERE TONIGHT. COOL. THANK YOU. MEETING'S ADJOURNED. DO YOU GET TO . * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.