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HomeMy WebLinkAboutMinutes Capital Improvement Advisory Committee - 03/28/2024 MINUTES - REGULAR MEETING CAPITAL IMPROVEMENTS ADVISORY COMMITTEE CITY OF CORPUS CHRISTI CITY HALL, 6T" FLOOR CONFERENCE ROOM 1201 LEOPARD STREET THURSDAY, MARCH 28, 2024 11:30 A.M. COMMITTEE MEMBERS: COMMITTEE MEMBERS: Moses Mostaghasi-Chairman Alex Harris Coretta Graham-Vice Chairman JJ Hart Tricia Aitken Eli McKay Bart Braselton Ramiro Munoz Rudy Garza Jr. Melody Nixon-Bice Hailey Gonzalez Chad Skrobarczyk Jonathan Gonzalez Trey Summers Velda Tamez I. Call to Order/Roll Call: The meeting was called to order by Chairman Mostaghasi at 11:58 am and a quorum was established to conduct the meeting with member Braselton absent (arrived at 12:30 pm). II. Public Comment: None. III. Approval of Minutes: February 15, 2024. A motion was made by member Hart to approve the minutes and seconded by member Munoz. The Vote: All Aye. The motion passed. IV. Approval of Absences: February 15, 2024: members Garza and Summers. A motion was made by member Hart to approve the absences and seconded by member Munoz. The Vote: All Aye. The motion passed. V. Discussion and possible action: 1. Recommendation on proposed Stormwater Impact Fees 2. Recommendation on proposed Roadway Impact Fees 3. Recommendation on proposed Wastewater Impact Fees 4. Recommendation on proposed Water Impact Fees 5. Impact Fee Implementation process and procedures 6. Trust Fund Discussion IMPACT FEE SUMMARY: Kim Keefer and Cara Tackett: Pape-Dawson, San Antonio Water System Impact Fee Credits • Developer fronts the design fees for the project. • SAWS handles procurement and construction management. • Cost share percentage is based on pipe cross-sectional area ratio. • Projects are public competitively bid. San Antonio Water System Cost Paid by Developer • Developer's Share of Construction Cost — developer brings a check to the preconstruction meeting for developer's share of the construction cost of the project. SAWS escrows the money and uses it during construction. Once this is done and preconstruction meeting is over, SAWS will issue the NTP to the contractor within a few days. • Change Orders —any change orders during the construction of the project will be paid for by SAWS and developer based on their % share of the construction cost of the project. San Antonio Water System Reimbursement/credits to Developer • Design Fee Reimbursement — Developer fronts the design fees for the project and is eligible for reimbursement for design fees up to 10% of the construction cost. Fee distribution is in cash for SAWS %share of the project and in impact fee credits for the developers %share. • Construction Cost Reimbursement — Developer gets reimbursed for their share of the construction cost in impact fee credits. • Reimbursement Distributions for Design and Construction: Design Fee reimbursements: • 60% at the time the tri-lateral agreement is executed/NTP. • 25% at Commencement of construction. • 15% upon construction completion and acceptance by SAWS. This is final acceptance after as-builts are completed. -> The reimbursements are paid to the developer as follows: • 80% at the time the tri-lateral agreement is executed/NTP/Commencement of construction. • 20% upon construction completion and acceptance by SAWS. This is final acceptance after as-builts are completed. • Easement Reimbursement - Developer is eligible to be reimbursed for up to 5% of the construction cost of the project for easement reimbursement. Distribution is the same as Design fee reimbursement for cash vs credits. SAWS will want backup (appraisals, etc.) to show what was paid. Impact Fee Credits • Credits can be used to pay impact fees. • Credits can be banked to pay impact fees for future projects. • Credits may be valued as Dollars ($) or as LUEs. • Credits can only be used in the Service Areas from which they are awarded. • Developers receive credits for constructing CIP projects. • Credits and Participation from city is only guaranteed through a Development Agreement/Utility Service Agreement. • Impact fees are assessed at time of Final Plat. • Developers can pay Impact Fees at Final Plat, or can push the fees to the Builders at time of Building Permit/Meters are pulled. • Developers can transfer their impact fee credits to Builders or other Developers. • The City keeps track of impact fee credits issued. Kim Keefer reviewed the last several CIAC meetings and presented real-world examples, including impact fee credits. A motion for a recommendation to city council will be discussed. Several options for Stormwater; most limited to Oso Creek Basin. Fees were discussed, and members are reminded that fees collected need to be used for projects in that area. The basin could be split into three basins. The recommendation is to go with Option 1, which is the overall service area which allows a lot flexibility. For Wastewater Impact Fees, there are six different wastewater treatment plants. Each could have a different fee, or we could lump the fees together. The recommendation is to go to an ETJ wide fee. 2 For Water Impact Fee, the island is a different pressure zone and requires different services. There are five different options for impact fees, broken into two components. Each of the blocks are divided between the water source, treating the water, to the houses, and Padre Island. The recommendation is to not include any desalination projects. Ms. Keefer continued with examples of each scenario, projects, and estimated fees. (detailed information included in the PowerPoint presentation). Members discussed Chapter 395 and which parts were law and which were recommendations. Members of CIAC would like a summary of Chapter 395. Mr. Brice stated the use of impact fees are limited to the service areas, which implies the credits are also limited as it is part of the fee. This was confirmed by Cara Tackett. Developers would like to be able to use their service credits in any area. Member Garza asked about water and wastewater, is the treatment cost for increasing capacity for treatment or just for treatment. Existing clarifier is a rate payer cost, if a clarifier is added, that is treatment for capacity. All of our treatment plans need massive improvements. Can we use the treatment fee dollars for that? How is this justified? Ms. Tackett stated all the projects are in the Master Plan. The recommendation is to charge a Wastewater Fee. It is broken out to see the entire scene. CIAC will get regular updates from the city. Discussion was held regarding the trust fund balance and how it got to the balance it is today; comparing what the builder pays vs. the developer vs. the city. If commercial creates an additional use, they will pay the impact fee for the additional use. Discussion was held on what constitutes an impact fee for replats; possible water and sewer. Council assess the fee and staff does the implementation. Everything is based on plat date. Members discussed what items they could vote on from the agenda. A member stated commercial vs residential fees are not fair; there is a difference in square footage costs. Ms. Tackett discussed recommendation charges. There is a difference between what can be assessed and what can be charged. Director Al Raymond stated for consideration, Ms. Tackett talked about CIAC recommendations which are the maximum rates. Director Raymond suggested adopting the maximum recommendations presented by Pape-Dawson and at the next meeting, to discuss the rates. Chairman Mostaghasi stated there are different ways to make a motion to decide on all the recommendation Pape-Dawson has given us. This group has to present four different calculations; maximums, minimums, or 0. We need to understand how this affects the city, growth, and end users. Discussion should be about what we each want at the end of the day to review at the next meeting. Chairman Mostaghasi wished to discuss in depth the entirety of the decisions discussed during the meeting. Director Raymond stated if Council adopts impact fees, it will take place in July and it will be 8-12 months to assess fees. Member Tamez made a motion to vote on whether CIAC wants an impact fee or not, seconded by Vice Chairman Graham. Discussion was held; some members are not prepared to accept what is on the floor, some members are. 3 The Roll Call Vote:Aye: Aye: Vice Chairman Graham, Members Aitken, Garza, H. Gonzalez, J. Gonzalez, McKay, Nixon-Bice, and Tamez. No: Member Braselton, Harris, Hart, Munoz, Skrobardzyk, Summers, and Chairman Mostaghasi. The motion passes. There is a motion and a second on the floor, members wanted to amend/table, and rescind the motion. Mr. Bice stated it's still the same result. Clarity: the motion is to vote on whether we are ready to move forward with impact fee recommendations, a second, and then a motion to table the motion by Alex Harris and seconded by Bart Braselton. The Roll Call Vote: Aye: Chairman Mostaghasi, Members Aitken, Braselton, Harris, Hart, Skrobardzyk, Summers, and Tamez. No: Vice Chairman Graham, Members Garza, H. Gonzalez, J. Gonzalez, McKay, Munoz and Nixon-Bice. The motion to table fails. VI. Director's Report: None. VII. Future Agenda Items: Presentations for assessment of Stormwater at 100%, Transportation at 0%, Water &Wastewater at 75%. CIAC members are to send their questions on this process to Development Services by Friday April 5. Pape Dawson will prepare answers by April 12 to be discussed on April 18. VIII. Adjournment: There being no further business to discuss, the meeting adjourned at 3:06 pm. 4