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03-25-2003 (City Council) Agenda Packet NOTICE OF MEETING WYLIE CITY COUNCIL AGENDA TUESDAY, MARCH 25, 2003 6:00p.m. Wylie Municipal Complex—Council Chambers/Council Conference Room 2000 State Highway 78 North Wylie, Texas 75098 CALL TO<ORI3 ...................................................................................................................................................................................................................................................................... ...................................................................................................................................................................................................................................................................... All imatters listed`undgC01. 'Consent A: enda.are considered to:tie.routine ..he:ci ouncil.and'will:he.enacted;vedl* one.mot on..»There ill:not:;he::sep arate:;diiscussion:of.ithese:items.:If:discussioin is` wired':' tnt iteaiii:`ivill::`:he.remo .............................................................................................................................................................................:..........:................................................................................................................................................................................................................................................................................................................................................... rom.t e: onse it . A. Approval of the Minutes from the Regular Meeting of March 11, 2003. IN WIfUA C ► " ERATION 1. Consider and act upon authorizing the consultant firm MAXIMUS, Inc. to conduct a water and sewer rate study. Executive Summary The City will soon be facing the challenge of increasing utility rates in order to defray the costs and operation of the regional Muddy Creek Wastewater Treatment Plant. To meet this challenge, the City has sent out a Request for Proposal (RFP) for consultant services to perform a utility rate study. The proposal submitted by Maximus calls for approximately 15 weeks to complete the study and report findings to Council in July. The focus of the study is to establish the amount of revenue required to support water and sewer operations for the next 5 years. The goal is to propose and adopt new rates to be effective October 1, 2003 in conjunction with the adoption of the 2004 Budget. The cost of the study provided by Maximus Inc. is$24,500.00.The City has budgeted$35,000.00 for the study in this budget year. 2. Hold a Public Hearing to consider and act upon adoption of certain proposed revisions to the Landscape Requirements, Section 4.4.E.1.a.(1) of the Comprehensive Zoning Ordinance of the City of Wylie. Executive Summary The City of Wylie first adopted zoning regulations in 1962,and significantly revised these in 1974, 1985 and 2001. Minor revisions have been made to each of these Zoning Ordinances in response to changing trends or public desires. The 2002 Zoning Ordinance increased the required landscaping for nonresidential uses to twenty percent (20%) of the site for Neighborhood Services, Community Retail and Corridor Commercial Districts and ten percent (10%) in Business Center and Industrial Districts. The currently-adopted landscape regulations favor retail centers of several small buildings which separate landscaping and parking into smaller courts, rather than free-standing "big box" buildings with landscaping and parking consolidated into large masses. To address the special characteristics of"big box" retailers within the Community Retail and Corridor Commercial Districts in a manner which the current Ordinance already accommodates such developments within the Business Center and Industrial Districts,the following amendment is proposed to be added Section 4.4.E.1.a.(1) of the Zoning Ordinance: "When a single building of 100,000 square feet or more is constructed in the CR or CC Districts,at least 10 percent shall be landscaped." 3. Hold a Public Hearing to consider and act upon a change in zoning from Single-Family Residential (SF-8.5/17) to Corridor Commercial (CC), generally located east of Paul Wilson Road and south of Skyview Drive, being all of a certain 2.00 acre tract of land situated in the Francisco de la Pina Survey, Abstract No. 688-1, Tract 201, City of Wylie, Collin County, Texas. (Zoning Case 2003-01) Executive Summary The subject 2-acre tract was annexed into the City as part of a 46.5-acre tract in September of 1984, and was zoned for residential uses at the time of annexation. In April of 1994, 14 acres immediately abutting the subject property was disannexed due to the City's failure to provide sewer services and adequate fire and police support to the area as required by State Law. In September of 2002, the City Council denied a request by the current owner of the subject tract to be disannexed from the City, also based on the lack of City services and the owner's desire to develop uses which were allowed by the County (with no zoning authority) but not by current City zoning. Both Paul Wilson Road and Skyview Drive are currently rural roadways, and generally dead-end routes to the north and west of the intersection where the subject tract is located. However, Park Boulevard is to be extended as a regional thoroughfare to align with the Skyview corridor, and improved to six lanes with divided median. Paul Wilson will remain a local two-lane street, even if reconstructed in the future. Staff is recommending approval due to the proposed commercial use being more compatible than low-density residential uses with the major traffic intersection which Park Boulevard at Paul Wilson is planned to become, and the NTMWD limits opportunity for strip commercial development. 4. Consider and act upon an ordinance disannexing a 1.53 acre tract located east of Lavon Parkway, and generally northeast of the Cascades Subdivision. Executive Summary The property in question is a portion of a 4 acre tract that is located partially in St. Paul and partially in Wylie. The access to the property is from the southern end of Lavon Parkway, a portion of which was closed several years ago by St. Paul to prevent the road from becoming a through street to the tract in Wylie, which was subsequently developed as the Cascades Subdivision. Because there was not the opportunity to connect the areas, the Cascade Subdivision was designed with the lots backing up to the property in question (please see included plat). The property owner has requested disannexation simply to bring the property into a single jurisdiction, and is not alleging a failure to provide services. R bIN OF t INAW TCl TITLE & APTIDN 1 PRO D D ' COUNCIL::AS EQ1IIRED BY! Y IE CITY'CHARTER,ARTI E I.I.SECTION::13-Dr WORK SSIf3N • Discussion of intersections and median openings along SH 78 and discussion of the 1999 bond projects. ADJOURNMENT . ..... In addition to any specifically identified Executive Sessions,Council may convene into Executive Session at any point during the open meeting to discuss any item posted on this agenda. The Open Meetings Act provides specific exceptions that require that a meeting be open. Should Council elect to convene into Executive Session, those exceptions will be specifically identified and announced. Any subsequent action,as a result of this Executive Session,will be taken and recorded in open session. I certify that this Notice of Meeting was posted on this day of ,2003 at 5:00 p.m. as required by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media contacted. As a courtesy, this agenda is also posted to the City of Wylie Website at www.ci.wylie.tx.us City Secretary Date Notice Removed The Wylie Municipal Complex is Wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary's office at 972/442-8100 or TD 972/442-8170. MINUTES Wylie City Council Tuesday, March 11, 2003 — 6:00 p.m. Wylie Municipal Complex-Council Chambers 2000 State Highway 78 North CALLiTO 4RttER.. .. The Mayor called the meeting to order at 6:00 p.m with the following Council Members present; Councilman Joel Scott, Councilwoman Reta Allen, Councilman Chris Trout, and Councilman J.C. Worley. Councilman Eric Hogue and Councilman Merrill Young were absent. Staff members present were; City Manager, Biff Johnson; City Engineer, Chris Hoisted; Public Information Officer, Mark Witter; and Interim City Secretary, Aimee Nemer. 1 OCA TION&Pl E Ei + F ALLEGIA1r CE Councilman Scott gave the invocation and Councilman Worley led the Pledge of Allegiance. Cal1L' T P RTICIPATION There was no citizen participation. 'AtUmottemlistavidtrthe:::vongentAgondwurctoilsidoratwhc routine h .the City Cou0cil::and usill be enact04tb .one m ;There will not he separate:discussions cif these items. If discussion i desir::ed,that item i :he:removed from the C►ansent Agenda and l be::considered separately A. Approval of the Minutes from the Council Retreat on November 9, 2002 and the Regular City Council Meeting on February 25,2003. B. Consider and act upon authorizing the City Manager to execute and award a contract to Hinkley& Barfield, Inc., in the amount of $15,000 for engineering services related to the reconstruction of approximately 3,000 linear feet of alley paving located south of Stoneybrook Drive. C. Consider and act upon authorizing the City Manager to execute and award a contract to The Hogan Corporation, in the amount of$12,000 for engineering services to establish the alignment for the the future Twin Lakes Outfall Sewer. D. Consider and act upon authorizing the City Manager to execute a contract with ROWAC,Inc. in the amount of$60,300 for right-of-way acquisition services for the Alanis paving project. E. Consider and act upon approval of an ordinance amending the Manuals for the Design of Storm Drainage Systems, Water and Sanitary Sewer Lines and Thoroughfare Standards and Standard Construction Details to add dimension for angled parking spaces and one-way drive aisles. F. Consider and act upon the approval of an ordinance amending the Subdivision Regulations as approved by the Wylie City Council on February 25,2003. Council Action Councilman Worley made a motion to approve the consent agenda. Councilman Scott seconded the motion. A vote was taken and passed, 5-0 with Councilman Hogue and Councilman Young absent. Minutes—March 11,2003 Wylie City Council Page 1 ititOING O#` O.R►iANA Ai E`SAIT )i 1.i v yO FIVE i 0IiN .. QUIRZ '. The following Ordinances were read for the record: Ordinance No. 2003-02,2003-03. In accordance with Chapter 551,Government Code,Vemon's Texas Code Annotated (Open Meeting Act), Section 551.071, Consultation with an attorney; closed meeting, pending or contemplated litigation, James R Nielson vs. City of Wylie; and Section 551.074, Personnel Matters; closed meeting, Contracts for the Assistant City Manager and the City Manager. Council Action Council adjourned into Executive Session at 6:06 p.m. R CONVEN ::INTO OPEN MEETING > Council reconvened into Open Session at 6:59 p.m.No action was necessary as a result of the Executive Session. ADJOURN1V EN Council adjourned at 7:00 p.m. John Mondy,Mayor ATTEST: City Secretary Minutes—March 11,2003 Wylie City Council Page 2 WYLIE CITY COUNCIL AGENDA ITEM NO. I . March 25, 2003 Issue Consider and act upon authorizing the consultant firm MAXIMUS,Inc.to conduct a water and sewer rate study. Background The City's water and sewer systems are changing dramatically with the growth in the residential and commercial customer base.The greatest challenge in the near future will be to increase rates to pay the costs and operations of the regional Muddy Creek Wastewater Treatment Plant. To meet this challenge the City sent out a Request for Proposal(RFP)for consultant services to perform a utility rate study.The Rate Review Committee reviewed the four proposals that were received. The Committee members selected what they thought was the best proposal submitted.The proposal selected was the most clearly written,very explanatory as to the work plan,and it offered the most experienced team in the field of utility rate studies. In addition,the Committee feels that they were the only firm that successfully addressed all the criteria required in the RFP. The work plan presented by MAXIMUS calls for approximately fifteen weeks to complete the process and present the findings to the City Council in July.The main focus of the plan is to establish the amount of revenue required to support water and sewer operations for the next five(5)years.An overview of the work plan tasks can be found in Section D starting on page 3 of the proposal. The major goal is to adopt new rates to be effective October 1,2003 in conjunction with the adoption of Fiscal Year 2004 Budget. Other Considerations N/A Financial Considerations MAXIMUS,Inc.has submitted a proposal that they will perform the tasks outlined in the work plan for a fee not- to-exceed$24,500. The budget this year includes $35,000 for the water and sewer rate study. Board/Commission Recommendation N/A Staff Recommendation The staff recommends the award of a contract in the amount of$24,500 to MAXIMUS,Inc. for the purpose of conducting a water and sewer rate analysis. Attachments Proposal for Consultant Services Contract /r, / // Prepared by Re ,fed by Finance City Man er royal AGREEMENT TO PROVIDE PROFESSIONAL CONSULTING SERVICES TO CITY OF WYLIE, TEXAS THIS AGREEMENT, entered into this day of March, 2003 and effective immediately by and between MAXIMUS, INC. (hereinafter called the "Consultant") and City of Wylie, Texas (hereinafter called the"City"), WITNESSETH THAT: WHEREAS, the Consultant is staffed with personnel knowledgeable and experienced in the area of conducting water and sewer rate studies, and WHEREAS, the City desires to engage the Consultant to assist in developing a water and sewer rate study, and NOW THEREFORE, the parties hereto mutually agree as follows: 1. Employment of Consultant. The City agrees to engage the Consultant and the Consultant hereby agrees to perform services as outlined in the proposal dated February 11, 2003. 2. Scope of Services. The Consultant shall perform and carry out in a good and professional manner the services as outlined in the proposal dated February 11, 2003. 3. Time of Performance. The services to be performed hereunder by the Consultant shall be undertaken and completed in such sequence as to assure their expeditious completion and best carry out the purpose of the agreement, as outlined in the proposal dated February 11, 2003. 4. Compensation. The City agrees to pay the Consultant a sum not to exceed twenty- four thousand, five hundred dollars ($24,500) for all services required, inclusive of travel expenses. Payment for services will be rendered as outlined in Section IV - Method of Payment. 5. Method of Payment. The Consultant shall be entitled to payment in accordance with the provisions of this paragraph. The Consultant will invoice the City monthly as follows: Month 1 $10,000 Month 2 7.500 Month 3 5.000 Month 4 2,000 Total $24,500 1 6. Changes. The City may, from time to time, require changes in the scope of the services of the Consultant to be performed hereunder. Such changes, which are mutually agreed upon by and between the City and the Consultant, shall be incorporated in written amendment to this agreement. 7. Services and Materials to be Furnished by the City. The City shall locally furnish the Consultant with all available necessary information, data, and material pertinent to the execution of this agreement. The City shall cooperate with the Consultant in carrying out the work herein and shall provide adequate staff for liaison with the Consultant and other agencies of the City government. 8. Termination of Agreement for Cause. The City may terminate this Agreement at any time by giving at least (5) days prior written notice of termination to the Consultant. If termination is for convenience and not due to a breach of the agreement by the Consultant, the City shall pay the Consultant for the services performed and expenses incurred, if any, by the Consultant in accordance with this Agreement prior to the effective date of termination. The calculation of payment shall be pursuant to the mutual agreement of the parties provided, however, Consultant shall not be entitled to anticipatory profit. 9. Information and Reports. The Consultant shall, at such time and in such form as the City may require, furnish such periodic reports concerning the status of the project, such statements, certificates, approvals and copies of proposed and executed plans and claims and other information relative to the project as may be requested by the City. The Consultant at the completion of the services under this contract shall furnish the City a final report in such form as may be required by the City. Furthermore, the Consultant will provide the City with a copy of the computerized rate model, in Microsoft Excel format, supporting all findings of the study. The rate model should be in suitable form for annual updates by City staff. 10. Copyright. The City acknowledges that the report format to be provided by Consultant is copyrighted. Consultant shall ensure that all copies of its report bear the copyright legend. The City agrees that all ownership rights and copyrights thereto lie with Consultant. Consultant acknowledges that the report provided to the City becomes a public record and the City, under law, may not restrict access. The City is authorized to make such additional copies of the report as may be necessary for its official use solely for and on behalf of the City operations. 2 11. Notices. Any notices, bills, invoices, or reports required by this agreement shall be sufficient if sent by the parties in the United States mail, postage paid, to the address noted below: Brady Snellgrove Robert McLain Finance Director Senior Manager City of Wylie MAXIMUS, INC. 2000 HWY 78 13601 Preston Road, Suite 400 West Wylie, TX 75098 Dallas, TX 75240 IN WITNESS WHEREOF, the City and the Consultant have executed this agreement as of the date first written above. City of Wylie, Texas By: MAXIMUS, INC. By: Jerry McKenzie Vice President 3 CITY OF WYLIE, TEXAS PROPOSAL FOR CONSULTANT SERVICES TO PERFORM A UTILITY RATE STUDY FEBRUARY 2003 Government Utility Rate Division MAXIMUS, INC. 13601 Preston Road, Suite 400W Dallas, Texas 75240 (972) 490-9990 MAXIMUS® HELPING GOVERNMENT SERVE THE PEOPLE° February 11, 2003 Via Federal Express Brady Snellgrove Finance Director City of Wylie 2000 HWY 78 Wylie, TX 75098 972-442-8141 Re: Proposal to Perform a Utility Rate Study Dear Mr. Snellgrove: MAXIMIUS, INC. (MAXIMUS) is pleased to submit this proposal to provide the professional services required for a comprehensive water and wastewater cost of service, multi-year financial plan, and rate design study. We believe we possess all the expertise, experience, and skills required to perform this engagement. We believe we should be chosen for this assignment for the following reasons: 1. Our project team is comprised of national and regional experts in the fields of water and wastewater costing. We bring to this engagement a senior-level project team. This team is comprised of MAXIMUS employees, and therefore we will not require the use of subcontractors. Members of the project team have been responsible for more than 125 separate utility cost of service and rate design studies nationwide for communities as small as 200 people to one as large as 3,500,000 (Los Angeles Power & Light). More importantly, the majority of our assignments have been with small to medium sized municipalities the size of Wylie. Section II of this proposal describes in detail our project team's record of quality professional consulting work specific to water and wastewater rate studies. 2. We serve several of the member cities of the North Texas Municipal Water District, and therefore we have had extensive experience dealing with NTMWD. We believe our experience in the area will serve your well. Over the last twenty years we have performed rate studies for Princeton, McKinney, Plano, Richardson, Royce City,Rockwall, and Sachse. 3. The majority of our rate work has been with cities and utilities in the State of Texas, Florida, and Georgia, that wished to consider conservation rates. Dating back to 1984, we have successfully implemented conservation rates in numerous cities, including the majority of those listed in the next paragraph. 4. The majority of our rate work has been with high-growth cities in the State of Texas that incorporate impact fees into the rate-setting process.Bob McLain has performed numerous water and wastewater studies for cities in the State of Texas; which have grown tremendously over the last 10-20 years, and therefore have relied substantially on water and wastewater impact fees to help pay for the impact of growth. Our experience in this area will be valuable to the City of Wylie, since the level of impact fees adopted can significantly impact the required revenues needed from rate payers. These cities have included Plano, McKinney, Carrollton, Richardson, Coppell, Flower Mound, Grapevine, Keller, Lancaster, DeSoto, Red Oak, Corinth, Rockwall, Sachse, Princeton, North Richland Hills, and The Colony. For a more comprehensive list, see page 17 in Section II. 13601 PRESTON ROAD•SUITE 4001,V•DALLAS, TX 75240 • 972.490.9990•FAX 972.490.3040 c Our ate: a ring approach and workp!an is based nn praye n interactive and .educational process designed to identify the City's philosophy, community values, and policies concerning trends in water and wastewater rate design. The staff and/or Council workshops, with the presentation of alternatives along with the explanation of policy issues, are developed with the idea that the ideal rate structure: a. is fiscally responsible; b. is technically and legally justifiable, and; c. is politically acceptable; Therefore, the result will be rate structures that will be a reflection of policies and values that the City considers important. Furthermore, we have had considerable experience developing "transition plans" where rate design changes have been "phased-in" in order to soften the impact on customer groups. 6. Our project team uses the most comprehensive, easy to use, rate model available on the market today. Each time we perform a rate study, we use MAXIMUS's Planning and Rate Model (PAR), and tailor the model to fit the specific needs of each client. MAXIMUS's Planning & Rate Model (PAR) has been developed, designed and redesigned over the last 20 years, based on the needs of Finance Directors, Budget Directors, and City Engineers across the nation. The integration of the financial planning module, cost of service modules, and the rate design modules gives the Finance office the most effective management of a "transition plan", whereby subsidies between customer groups are eliminated over a period of years so that no particular group of customers receive "rate shock". Furthermore, we believe the model gives the Finance office the greatest "flexibility" when planning debt issues required to fund capital improvement plans. As part of the scope of the engagement, we can turn the model over to the City at the conclusion of the study. Appendix B will give the reader highlights of the PAR model. 7. We believe we have an excellent record of performance in Texas and the nation, as illustrated by our ability to retain our rate study clients over the last twenty years. We have worked hard over the last twenty years to develop excellent, long-term relationships with our rate study clients across the nation. Many of our City Managers and Finance Directors have continued to use our services as they have moved from City to City. We have a reputation for going beyond the call of duty to provide outstanding service to our clients. We encourage you to call our references. We will work hard to provide the same level of outstanding service to the City of Wylie. I hereby certify that I have read all items of this Request for Proposals and fully understand the requirements listed herein. I further certify that I am an authorized agent of MAXIMUS, INC., empowered to submit this bid and am authorized to sign a contract with the City of Wylie. The following document states our qualifications, technical approach, and references. The fee we are quoting in this proposal shall be valid for one hundred and twenty days (120) days from the receipt of this proposal. The fee we are quoting in Section IV is intended to be the total fixed price for the scope of work described in this proposal, unless designated otherwise. We look forward to working with you and your staff on this study and are available to discuss our proposal at your convenience. Please feel free to contact Bob McLain at (972) 490-9990. MAXIMUS Authorized Officer erry McKenzie Vice President MAXIMUS MAXIMUS HELPING GOVERNMENT SER{E7HEPEOPLE' I. Approach &Work Plan 1 A. MAXIMUS's Approach to Utility Ratemaking 1 B. MAXIMUS's Approach to Project Management 2 C. How MAXIMUS Addresses the Issue of Quality Control 2 D. Overview of Workplan Tasks 3 E. Detailed Workplan Tasks 7 II. Project Team Profile 15 A. Project Team's Qualification Matrix 15 B. Project Team Highlights 15 C. Project Team's Role Matrix 17 D. References 18 E. Comprehensive Project Listing 20 • III. Corporate Profile 23 A. Overview 23 B. Corporate Offices 23 C. The Cost Services Division 23 D. The Government Utility Rate Practice 23 IV.Engagement Fees 27 APPENDIX A—Data Collection Needs 28 APPENDIX B —Highlights of the Planning and Rate Model (PAR) 31 APPENDIX C —Resumes 34 MAXIMUS HELPING GOI£RNAIEN'TSERPE HIE PEOPLE' SECTION I: APPROACH & WORKPLAN MAXIMUS HELPING GOI'ERNJIENT SERI'Lf THE PEOPLE` SECTION I: APPROACH & WORKPLAN A. MAXIMUS'S APPROACH TO UTILITY RATEMAKING MAXIMUS's approach to a comprehensive financial planning and cost of service engagements is governed by the idea that the ideal rate design must satisfy the criteria of revenue adequacy/stability, equity, efficiency (conservation), administrative simplicity, and legal conformity. Our water cost of service methodology is guided by the American Water Works Association's (AWWA) manual titled "Ml-Water Rates". Our wastewater cost of service methodology is guided by the Water Environment Federation's (WEF's) guidelines. These approaches are customized to meet the City's objectives within the following guidelines: • Revenue Adequacy/Stability is the most fundamental of all considerations since it recognizes that rates should be cost-driven. When a rate alternative is evaluated, it is essential that it produces enough overall revenues to properly operate and maintain the systems and that it produces enough revenues even when there are changes in the demands for service, such as "wet" years vs. "dry" years. • Equity requires that rates and charges should be the result of the equitable recovery of costs and that no undue discrimination among customer classes should result from this recovery of costs. Rates and charges should also recognize that customer acceptance will center on preconceived ideas of equity and fairness. • Efficiency (conservation) refers to the ability of a rate schedule to encourage the wise use of the resources consumed in the service provided by the utility. This has increasingly come to mean the adoption of"conservation" rates. Efficiency considerations require, at least that: • Rates should reflect the incremental cost of providing the next unit of service. If capacity is a limiting factor, for example, then rates should reflect capacity costs. • Rates should be similar for customers or classes of customers served under similar conditions. • Administrative simplicity recognizes that limits must be placed on the number of customer classes, complexity of the rate structure, and the frequency of billing. • Legal constraints are a consideration because rate structures must incorporate applicable local, state, and federal statutes. Where questionable areas exist, they should either be buttressed by documentation or modified. • Customer impact is the primary consideration when changing rates, after all other criteria are considered. MAXIMUS works with our clients using a multi-year approach to phase -in cost-causal rates so that huge increases to any one group of customers are minimized. SECTION I: APPROACH&WORKPLAN PAGE 1 MAXIMUS HELPING GO 17s RNDI ENT SE.R I E 7Il E PEOPLE' B. MAXIMUS'S APPROACH TO PROJECT MANAGEMENT MAXIMUS'S management of an engagement begins with the project initiation or "kick-off meeting". At that time, Bob McLain will, in conjunction with City staff, establish firm dates for the submission of deliverables, City staff review meetings, and Council meetings. Thereafter, the Project manager will be responsible for providing weekly reports to the Project Director on the progress made during the previous week. The reports will be compared to the established schedule to identify whether any slippage has occurred and the reason for it. If need be, the Project Director will have the authority to assign additional personnel to the engagement on an interim basis in order to accomplish the work needed to put the project back on schedule. The Project Director will also keep the City advised as to the progress that has been made. All meetings between the City staff and the MAXIMUS project team members will be documented with a memorandum to ensure that all parties have the same understanding of the discussions that took place and of the decisions that were reached. C. HOW MAXIMUS ADDRESSES THE ISSUE OF QUALITY CONTROL One of the first steps in an engagement of this nature is the review of the data to be used. MAXIMUS builds in sufficient time in this phase of the work to permit a thorough review of the data so that any missing data can be developed in a timely fashion and questionable data identified and a decision made as to whether it should be used or if further analysis is required. This, in the long run, will serve to reduce the time and effort required and keep the engagement on schedule as it always more cost effective to have everything correct at the beginning than to have to redo work at a later date. Quality control will also be maintained by having all materials reviewed by the Jerry McKenzie, Project Director, and Robert McLain, Project Manager, before it is distributed to City Staff. This step necessarily means that sufficient time be programmed into the schedule to allow for the reviews and for corrective action to be taken if needed. Hence, the importance of project management in maintaining the established schedule is paramount. SECTION I: APPROACH&WORKPLAN PAGE 2 MAXIMUS HELPING GOVERNMENT SERVE THE PEOPLE` D. OVERVIEW OF WORKPLAN TASKS Purpose of this section: The purpose of this section is to present the technical approach to the project. Each task that will be performed to achieve the objectives we believe are necessary, along with the associated meetings and deliverables. Goals of this engagement: Following are the goals to be achieved with this engagement, based on our understanding of the RFP: 1. To develop a water and wastewater rate structure that equitably distributes costs to customers and adequately funds current costs and future needs. 2. To develop a Microsoft Excel based rate design model that City staff can update on an annual basis to monitor the adequacy of the rates. Objectives of this engagement: Following is a list of the objectives to be achieved with this engagement, based on our understanding of the RFP. Please note, that in the majority of the instances, we have listed the objectives in the order in which they will be achieved. Furthermore, we have restated some of the objectives with different wording than listed in the RFP. For example, typically we will ensure we identify the costs of providing other, non-rate services that are associated with tap fees, connect fees, etc., prior to identifying the revenue requirements over the planning period. When this tasks is performed in this order, we can incorporate any recommended changes of these fees into the multi-year financial plan, and therefore show the impacts on the rates. 1. To collect the information necessary to perform the comprehensive cost of service and rate design study. 2. To independently identify the financial condition of the overall water and wastewater enterprise fund. 3. To review, analyze, and evaluate the integrity of the consumption history that is provided to us by the City. 4. To identify a "normal" average consumption year for each class of customer (this will be further explained in the task). 5. To review, analyze, and evaluate the planned water and wastewater capital improvement plan, and related impact fees, for the purpose of incorporating all capital improvement funding sources into the multi-year financial plan. _- SECTION I: APPROACH&WORKPLAN PAGE 3 MAXIMUS HELPING GOVERNMENT MENT SER I'E THE PEOPLE' 6. To identify the revenues required from water rates and wastewater rates over the ten-year planning period, using the multi-year financial planning model, identifying any subsidies that exist between the water and wastewater utilities. 7. To distribute the costs of providing water and wastewater service for each year of the planning period into the customer classes, identifying any subsidies that exist between the classes of customers. 8. To design alternative retail rate structures that will equitably recover the costs of each water and wastewater customer class, including outside retail customers. 9. To design, as alternatives rates, conservation rates. 10. To identify the customer impact of each alternative rate structure, including how the City compares to the surrounding cities. 11. To prepare and present the findings, conclusions, and recommendations of the engagement. 12. To install the rate model and train staff on use of rate model for future in-house updates. SECTION I: APPROACH&WORKPLAN PAGE 4 MAXIMUS HELPING GO 6'E•RNHENT SER I'E THE PEOPLE' Overview of project work plan: We have organized the tasks that have to be accomplished to meet the goals and objectives into five phases: Phase I: Collect, review, analyze, and evaluate the data necessary to complete the engagement Phase II: Develop multi-year financial plan Phase III: Design rate structure alternatives Phase IV: Prepare and present findings Phase V: Install PAR model and train staff Meetings, deliverables, & timing of engagement: The following table will provide the reader with a list of the tasks in the engagement, as well as the meetings, deliverables, and timing. Week Meeting Deliverable Task Description Number Number Number 1: Conduct City staff meeting # 1 to 1 1 kickoff engagement 2: Collect data 1 3: Assess the financial condition of the 1 utility fund 4: Proof the integrity of the consumption 1 —3 history 5: Identify"normal"consumption year 1 —3 6: Load operating and maintenance 5—7 expenditures and revenues into the rate model 7: Load debt amortization schedules into 5—7 the rate model 8: Incorporate capital projects and their 5—7 related funding into the revenue requirements over the planning period 9: Allocate any shared costs between 5—7 water and wastewater 10: Project revenues required over the 7 planning period 11: Prepare memo report # 1 on revenue 7 requirements 12: Conduct City staff meeting # 2 to 7 2 1 review memo report # 1 on revenue requirements 13: Revise memo report# 1,if necessary 8 14: Design rate alternatives 8— 10 15: Determine impact of each rate 10 alternative on customers. SECTION I: APPROACH&WORKPLAN PAGE 5 MAXIMUS HELPING GOVERNMENT SERVE THE E PEOPLE' Week Meeting Deliverable Task Description Number Number Number 16: Prepare memo report# 2 on customer 10 impact of rate design alternatives 17: Conduct City staff meeting # 3 to 10 3 2 review rate alternative report 18: Revise rate alternatives,if necessary 11 19: Prepare draft of final report and 11 presentation 20: Conduct City staff meeting # 4 to 11 4 3 review draft of final report 21: Revise report, if necessary & deliver 12 copies to City 22: Present findings to City Council 14 5 4 23: Finalize the customization of the rate 15 model 24: Install rate model & conduct training 16 6 5 sessions Recap of project meetings: Planned Meeting Purpose Week 1 To kickoff engagement 1 2 To review memo report# 1 on revenue requirements(multi-year financial plan) 7 3 To review memo report#2 on impact of rate design alternatives 10 4 To review draft of final report and presentation 11 5 To present findings to City Council 14 6 To install model and train staff over two-day period 16 Note—our not-to-exceed fee of$24,500 includes the time necessary for the one public hearing, the two City Council worksessions, and the one presentation, as requested on page 6 of the RFP. SECTION I:APPROACH&WORKPLAN PAGE 6 MAXIMUS HELPING GOVERNMENT SER P E 7Il E PEOPLE' E. DETAILED WORKPLAN TASKS Phase I: Collect, Review, Analyze, and Evaluate Data: Task 1. Conduct City staff meeting # 1 to kickoff engagement. An onsite meeting will be conducted with the City to collect, review, and evaluate the information necessary to perform the study Task 2. Collect data. We will collect the data and information that is readily available, or has been brought to the meeting by the staff, and to identify which information is not readily available and must be collected by the end of the initial on-site visit. Sometimes the information that is brought to the initial meeting by City staff is incomplete, or it is in a different format than what is required for the engagement. In these cases, arrangements will be made to collect the required information by the end of our initial site visit, or surrogate information will be used for the rate study. Task 3. Assess the financial condition of the utility fund. We will independently evaluate the existing financial condition of the water and wastewater utility. The consolidated financial statements of the utility's for the last three years will be examined and evaluated. Furthermore, we will identify for our purposes the components of the restricted asset accounts of the water and wastewater utility's. For example, we'd like to identify the amounts of the restricted assets that are reserved for revenue debt interest and principal payments, revenue debt reserves, customer deposits, bond proceeds, etc. The findings of this evaluation will be incorporated into our first report deliverable. Task 4. Proof the integrity of the consumption history. This is a very important task, since we will use this data to develop rate design alternatives. The FY 2002 twelve-month billing history will be sorted and summarized and incorporated into the rate model. The accuracy of the water and wastewater consumption and billing history will be verified so that a sound foundation will be used to calculate rate alternatives. Task 5. Identify "normal" consumption year. The purpose of this task will be to "even out" the "dry" and "wet" years experienced over the last several years. A five-year history of water and wastewater monthly billings, consumption billed (billings and consumption by meter size within customer class), will be reviewed, analyzed, and evaluated in order to identify a "normal year". This "normal" year will be used as a basis to "adjust"the twelve-month detailed billing history for FY 2001 —2002. SECTION I: APPROACH&WORKPLAN PAGE 7 MAXIMUS II ELPIVG GOVERNMENT SLRC E THE PEOPLE'' LPL` 1 f11LT7L' D vv OKI FLf--11' 1 ftoliJ (CONTINUED) Phase II: Develop Multi-Year Financial Plan: The purpose of this phase is to identify and forecast the revenues required to support the water and wastewater utilities over the ten-year planning period. The objectives to be achieved with Phase II: • To prepare forecasts of revenues, operation and maintenance expenditures, and capital improvements. • To incorporate the cost of the capital projects over the planning period, including the use of impact fees to partially pay for eligible projects. • To allocate any shared costs between the water and wastewater funds. • To identify any subsidies between the water and wastewater utilities. • To identify any percentage increases in revenues required in the water and wastewater revenues generated by rates. • To prepare a memo report reporting the findings of Phase II. • To present findings of Phase II at a meeting with City staff. • To revise memo report # 1, if necessary, based on the results of the staff meeting. In summary, the total cost of service and overall revenue requirements for each utility will be identified for each year of the planning period, based on the City's most recently adopted operating and capital budgets. Utilizing data collected, reviewed, and analyzed in previous tasks, we will use the financial planning component of our rate model to identify all costs of service for each utility for the planning period by establishing the following components: • Operating costs of each system; • Required system maintenance costs for each utility; • Required system replacement costs for each utility; • City indirect departmental and overhead costs; • Existing debt principal and interest payments; • Planned debt principal and interest payments; • Revenue debt coverage requirements; • Revenue debt reserve requirements; • Operating reserves requirements; • Any other user fees, such as ancillary fees, shall be used to offset the cost of service recovered from rates. SECTION I: APPROACH&WORKPLAN PAGE 8 MAXIMUS HELPING GOI ERNMENT SERI'E TIIE PEOPLE' Preliminary revenue increases will be calculated for each year of the planning period to independently fund each utility's costs identified as part of this Phase. The financial planning components of the cost of service will be identified in considerable detail so that all assumptions that drive the cost of service will be fully disclosed and documented, much as you would a budget document. The debt interest and sinking fund, the debt reserve fund, the capital improvement fund, and any other restrictions of cash, such as impact fees, will be developed as supporting schedules for staffs review. Task 6. Load operating and maintenance expenditures and revenues into the rate model. The actual revenues and expenditures for FY 2001, and FY 2002, as well as the FY 2003 and FY 2004 budgeted revenues and expenditures will be incorporated into the rate model at the line item level. Task 7. Load debt amortization tables into the rate model. The principal and interest payments for the existing debt and any planned debt that is or will be supported by the water and wastewater fund will be incorporated into the rate model. Task 8. Incorporate capital projects and their related funding into the revenue requirements over the planning period. The most critical costs that will impact the revenues required from rates will be the level of capital funding necessary from rates, and the level of funding from impact fees. Our time commitment will consist of integrating the funding of the capital improvement plan projects either with impact fees, or with bond issues, or with operating funds. Task 9. Allocate any shared costs between the water and wastewater utilities. Any costs shared by the water and wastewater services will be allocated between the two services. Task 10. Project revenues required for the planning period (MYFP). The revenue requirements for water and wastewater will then be identified, over the multi-year planning period. Any subsidies that exist between the water and wastewater utilities will be identified. Any increases in water and/or wastewater revenues will be identified. Task 11. Prepare memo report # 1 on revenue requirements. A short memo report will be prepared on the revenue requirements. The memo report will contain the following findings: • The key planning assumptions that drive the multi-year financial plan, such as growth, staffing increases, inflation drivers, capital improvements, and the planned debt issue. • Any existing subsidies that exist between water and wastewater. • The overall water revenue percentage increases and overall wastewater revenue increases that will be necessary to fund the anticipated costs over the multi-year planning period. SECTION I: APPROACH&WORKPLAN PAGE 9 MAXIM/" US HELPING GOVERNMENT SERVE THE PEOPLE' Task 12. Conduct City staff meeting # 2 to review memo report # 1 on revenue requirements. A few days after the memo report has been e-mailed to the City, a meeting will be held onsite with City staff and City management on the findings conveyed in the memo report on the multi-year financial plan. Task 13. Revise memo report # 1, if necessary. The MYFP will be revised, if necessary, based on the results of the meeting with City staff. SECTION I:APPROACH&WORKPLAN PAGE 10 MAXIMUS HELPING GOI'E•RNMENT SERVE THE PEOPLE' E. DETAILED WORKPLAN TASKS (CONTINUED) Phase III: Development Of The Rate Design Alternatives: While the tasks perfornied in Phase II will identify the level of revenues required, the tasks performed, as part of Phase III, will identify alternatives of how the City will collect the revenues. The objectives to be achieved with Phase III are: • To develop proposed water and sewer rate alternatives. • To compare revenues generated under the existing rates for each customer class with the allocated cost of service to determine the adequacy of present revenue levels and the indicated adjustment in rates required to equitably distribute costs to the respective classes of customers. Once the cost of providing service to each customer class is known, the revenue requirements of each group can be calculated. The City may elect to maintain retail rates that achieve objectives related to community values, maintaining subsidies between retail customer classes. Even so, it will do so with better knowledge of its true costs and make more informed decisions regarding customer rates. The rate development process is organized as follows: • Distribute costs into the system components; • Classify water system costs based on the overall demand and peaking characteristics of the water system; • Classify wastewater system components; • Calculate average cost of service per unit of service and distribute costs into the customer classes; • Design service charges and commodity rates, including reuse rates; • Compare the distributed cost of service with the revenues generated with existing rates and determine the indicated adjustment in rates required to equitably recover the cost of service; • Illustrate the financial impact of the retail rate alternatives on the water and wastewater customers; • Illustrate how the calculated water and wastewater monthly and annual bills compare under each rate alternative, as well as to other utility's rates in the region. SECTION I: APPROACH&WORKPLAN PAGE 11 MAXIMUS HELPING GOVERNMENT SERVE TEEE PEOPLE"' Task 14. Design rate alternatives. As many as three water rate design alternatives and three wastewater rate design alternatives will be prepared. Rates will be designed for each customer classes based on the consumption characteristics of each class. Rates will also be based on the goals and objectives that the City wishes to achieve with this engagement. Service charges and consumption charges will be calculated for each customer class based on the cost of service identified for each customer class. Furthermore, conservation rates will be developed. Task 15. Determine the impact of each rate alternative on customers. The purpose of this task is to illustrate the impact of proposed rate alternatives on customers and how they compare to surrounding utilities in the region. • Selected municipal utilities in the region will be surveyed. • Revenues generated by the existing rates will be compared with the costs distributed to each customer class and the indicated adjustment in rates required will be calculated. • Each customer's water and wastewater monthly bill, as well as annual bill, will be calculated using each rate alternative, as well as using selected other City rates. • A customer impact profile will be created illustrating the financial impact of each rate alternative, based on the calculations performed. The profile will illustrate how many customers will see increases in the annual bills, as well as decreases in the annual bills. Task 16. Prepare memo report # 2 on customer impact of rate design alternatives. A short rate alternative memo report will be prepared. The impact of each rate alternative will be highlighted for discussion and evaluation. The report on customer impact will be e- mailed to the City a few days before we have our onsite review meeting. Task 17. Conduct City staff meeting #3 to review rate alternative report. An onsite meeting will be conducted by Maximus onsite for the staff's review of the customer impact of the three rate alternatives. Task 18. Revise rate alternatives, if necessary.The rate design alternatives will be revised, if necessary,based on staff's review. The revised memo report on customer impact will then be e-mailed to the City. SECTION I:APPROACH&WORKPLAN PAGE 12 MAXIMUS HELPING'GOVERNMENT MEAT SER 1'E THE PEOPLE'' E. DETAILED WORKPLAN TASKS (CONTINUED) Phase IV: Prepare And Present Findings Of The Engagement: Task 19. Prepare draft of final report and presentation. A draft of the final report and presentation will be prepared. The draft of the final report will be e-mailed to the City a few days before we have our onsite review meeting. Task 20. Conduct City staff meeting # 4 to review draft of final report and presentation. An onsite meeting will be conducted with City staff and management for the purpose of reviewing the draft report and presentation. Task 21. Revise final report and presentation, if necessary, and deliver copies of report to City. The final report and presentation will be revised, if necessary, based on the results of the meeting with City management and staff. The final report and presentation will then be e-mailed to the City a few days before the presentation to the City Council. Task 22. Present findings to the City Council. An onsite presentation (Meeting # 5) of the findings will be made to City Council. SECTION I: APPROACH&WORKPLAN PAGE 13 MAXIMUS HELPING GOI'E•RNAILNT.SL'RI'E THE PEOPLE' E. DETAILED WORKPLAN TASKS (CONTINUED) Phase V: Installation and training of PAR model: We will make most of our revisions to our model as we go through the study process, customizing our model as we use it ourselves. Task 23: Finalize the customization of the model. MAXIMUS will finalize the model and get it ready to turn over to the City. Task 24: Install rate model & conduct training sessions. Training sessions will be held with staff members over a two-day period SECTION I:APPROACH& WORKPLAN PAGE 14 MAXIMUS HELPING GOVERNMENT SEE:'E 7NE PEOPLE' SECTION II: PROJECT TEAM PROFILE MAXIMUS HELPING GO I'ERA?IIIENT SER I THE PEOPLE" SECTION II: PROJECT TEAM PROFILE A. PROJECT TEAM'S QUALIFICATION MATRIX The following table recaps the qualifications of the project team and their credentials. Jerry Robert James Bret McKenzie, McLain, Brown, Schlyer, Team Project Project Project Project Member Director Manager Consultant Consultant Education BBA, BBA, BBA, BBA, Accounting Accounting Accounting Accounting MAXIMUS Vice-President, Senior Manager, Manager, Manager, Position Government Government Government Government Utility Rate Utility Rate Utility Rate Utility Rate Practice Practice Practice Practice Role in Director of Project Project Project Engagement Engagement Manager Consultant Consultant Years of 20+ 20+ 14+ 8+ Experience in Field Utility 15+ 100+ 5 2 Rate Studies PAR Rate N/A 20+ N/A N/A Model Installations Professional GFOA GFOA,GFOAT, GFOA, GFOA Associations APWA GFOAT AWWA,WEF Office Location Wichita,KS Dallas,TX Dallas,TX Wichita,KS Role in Quality 80%of tasks, Assist Assist engagement Control All presentation Bob Bob McLain McLain B. PROJECT TEAM HIGHLIGHTS Jerry McKenzie, Project Director. Mr. McKenzie will serve as the project director on this engagement. He will be responsible for reviewing each deliverable before it is released to Wylie. Mr. McKenzie is a Vice President with MAXIMUS, INC. Since 1986, he has been responsible for managing several successful engagements in both the utility and governmental environments. Mr. McKenzie graduated with Honors from Wichita State University in Kansas with a Bachelor of Business Administration in Accounting in 1980. He has been involved with the local chapter of the Institute of Internal Auditors and has taught cost allocation and software design at the local and national level since 1986. SECTION II: PROJECT TEAM PROFILE Page 15 MAXIMUS IIELP1VGGOVL•RAitIENTSERI E7MMEPEOPL£• Mr. McKenzie has been responsible for utility rate studies and management audits, the development of administrative and general capitalization rates, subsidiary cost allocation plans and overhead allocation methods for jointly owned power plants. Heavily involved in assisting utilities in dealing with restructuring, Jerry has authored two electric rate unbundling manuals for the American Public Power Association (APPA). These manuals serve as a guidepost for municipal utilities to utilize in unbundling service costs as they prepare for retail wheeling in a competitive, market-driven environment. He has also been involved in the design and implementation of internal service billing algorithms for administrative departments such as data processing, building service, fleet, stores handling, and engineering. In addition, he has an extensive knowledge of the Federal Energy Regulatory Commission's (FERC) statutes and regulations and currently serves as the instructor for APPA's Public Utility Accounting course. Robert McLain, Project Manager and Cost of Service and Rate Design Specialist. Mr. McLain is a senior-level expert in water, wastewater, solid waste, and storm water cost of service and rate design studies. Mr. McLain brings to this engagement over 20 years of experience with water and sewer cost of service and rate design experience, particularly in Texas. He has performed over 100 rate studies during this time. Mr. McLain has a Bachelor's of Business Administration with an emphasis in Finance and Accounting. Mr. McLain will be the day-to-day project manager for this engagement. Mr. McLain has extensive experience with rate costing and design in Texas. Mr. McLain has had extensive experience over the last twenty years developing water and wastewater cost of service and rate design engagements in Texas. Texas clients have included: Addison Forest Hills Paris Allen (3) Gainesville (7) Plano (4) Alvin Granbury (3) Princeton Bartlett Grapevine Red Oak (4) Bartonville WSC (4) Greenville (Other) Richardson (2) Bedford Hackberry (2) Richland Hills Burleson Highland Village (2) Rockport (3) Carrollton (2) Iowa Park Rockwall (2) Commerce Keller (3) Rosenberg (4) Coppell Lancaster Royse City (2) Corpus Christi LaPorte (2) Sachse (2) Corinth (2) McAllen (2) San Benito (2) Denton McKinney(4) Santa Rosa (2) DeSoto (2) Med Star(Tarrant County) Terrell (2) Duncanville Nacogdoches (2) The Colony Farmers Branch (other) North Richland Hills Watauga(Other) Flower Mound(3) Pampa Waco (2) Addison, Coppell, Duncanville, Grapevine, Highland Village, La Porte, and North Richland Hills were performed by Bob McLain when he was with another firm, in the early to late 1980's. Note: Over the last twelve years we have performed rate studies for various additional clients across the country, such as Newark, New Jersey, Los Angeles, CA, Chicago, IL, Norfolk, VA, and Hollywood, FL. SECTION II: PROJECT TEAM PROFILE Page 16 MAXIMUS' HELPING GOI'ERNAIENT SERI'E 711E PEOPLE James T. Brown, Manager. Mr. Brown specializes in cost of service and rate development for MAXIMUS. Mr. Brown has compiled numerous costing studies for state and local governments in Texas, New Mexico, Arizona, Louisiana, Oklahoma, Colorado, and Nevada during his tenure of fourteen years with Maximus. Prior to joining MAXIMUS, Mr. Brown was employed by a regional public accounting firm that performed financial audits of city and county entities. Bret Schlyer, Project Consultant. Bret Schlyer is a Manager in the Wichita, KS office of MAXIMUS. His responsibilities include a wide-range of indirect cost allocation projects and analysis within Texas, Kansas, Oklahoma and Louisiana and with utilities nationally. Mr. Schlyer graduated with Honors from the University of Kansas with a Bachelor of Science degree in Accounting in 1994. Mr. Schlyer will assist Mr. McLain with the loading of the proofing of the integrity of the billing history. C. PROJECT TEAM'S ROLE MATRIX The following table illustrates which members of the engagement team will address the issues required in this engagement. It should be noted that Jerry McKenzie will be the principal in charge, and will be responsible for the overall quality and timeliness of this engagement, along with Bob McLain, who will be the day-to-day project manager. Complete resumes of the team members can be found in Appendix C. Robert James Bret McLain, Brown, Schlyer, Task Description Project Project Project Manager Consultant Consultant 1: Conduct City staff meeting# 1 to kickoff engagement X X 2: Collect data X X 3: Assess the financial condition of the utility fund X 4: Proof the integrity of the consumption history X 5: Identify"normal"consumption year X 6: Load operating and maintenance expenditures and revenues X into the rate model 7: Load debt amortization schedules into the rate model X 8: Incorporate capital projects and their related funding into the X revenue requirements over the planning period 9: Allocate any shared costs between water and wastewater X 10: Project revenues required over the planning period X 11: Prepare memo report# 1 on revenue requirements X 12: Conduct City staff meeting # 2 to review memo report# 1 on X revenue requirements 13: Revise memo report# 1, if necessary X 14: Design rate alternatives X X 15: Determine impact of each rate alternative on customers. X X 16: Prepare memo report # 2 on customer impact of rate design X alternatives 17: Conduct City staff meeting#3 to review rate alternative report X 18: Revise rate alternatives, if necessary X 19: Prepare draft of final report and presentation X 20: Conduct City staff meeting#4 to review draft of final report X SECTION II: PROJECT TEAM PROFILE Page 17 MAXIMUS HELPING GOVERNMENT SERVE ME PEOPLE' Robert James Bret McLain, Brown, Schlyer, Task Description Project Project Project Manager Consultant Consultant 21: Revise report, if necessary& deliver copies to City X 22. Present findings to City Council X 23: Finalize the customization of the rate model X 24: Install rate model&conduct training sessions X D. REFERENCES Following are the cost of service and rate design engagements performed by Bob McLain and the Government Utility Rate Group within the last 5 years. City/Contact Person Address/Phone/Fax/ Years E-Mail Canrollton,TX 1945 E.Jackson Rd., 75006 1986 Robert Scott, (972)466-3103 1999 Asst. City Manager (972)466-3535 (fax) bob.scott@cityofcan-ollton.com Commerce,TX 2621 Sterling Hart Dr. 75248 1999 Roger McKinney (903) 886-7058 Former City Manager Cmckinney49 c yahoo.com Flower Mound,TX 2121 Cross Timbers Rd. 75028 1998 Harland Jefferson (972) 874-6020 1999 Deputy Town Manager (972) 874-6460(fax) 2001 Harlan.Jefferson(vflower-mound.corn 2002 Hollywood,Florida 3441 Hollywood Blvd., 3`d. Floor 33022 1995 Whit Van Cott (954)967-4455 1996 Director of Utilities (954)967-4450(fax) 1997 Annual large user rates wvancott(chollywoodfl.org 1998 1999 2000 2001 2002 Hillsboro,TX 214 E.Elm St. 76645 2000 Kevin Carruth (254)582-3271 City Manager (254)582-0112(fax) cmhillsboro a htcomp.net Iowa Park,TX 103 N.Wall St. 76367 2002 Mike Price (940)592-2131 City Manager (940) 592-4793(fax) mpriceOpiowapark.com Keller,TX 1100 Bear Creek Parkway, 76244 1998 Johnny Phifer (817)743-4025 1999 Director of Finance (817)743-4191 (fax) 2001 jphifer(.cityofkeller.com 2002 SECTION II: PROJECT TEAM PROFILE Page 18 MAXIMUS HELPING GOI'E•R.V/ENT SERVE 711E PEOPLE' 1 City/Contact Person Address/Phone/Fax/ Years E-Mail McKinney,TX 222 N.Tennessee 75069 1999, Jennifer Fung (972)547-7531 2000 Director of Finance (972)547-9738(Fax) jtung(i mckinneytexas.ore_ Plano,Texas P.O.Box 860358 75086 1997 Karen Rhodes 972-941-7121 1998 Director of Budget 972-941-7439(Fax) 1999 karenrngwmail.piano.gov Princeton,TX 306 N. Front St. 75407 2002 Steve Goram (972)734-2416 2003 City Administrator (972)734-6347(fax) citymgr a flash.net Red Oak,TX P.O.Box 393 75154 1990 Ken Pfeifer (972)617-3638 1991 City Administrator (972) 576-0993 (fax) 2001 ken.pfeifer@yedoak.tx.org 2002 Rockwall,Texas 205 W.Rusk 75087 2000 Julie Couch (972)771-7700 2001 City Manager (972)771-7728(Fax) jcouch@ci.rockwall.tx.us Rockport,TX P.O. Box 1059 78381-1059 1999 Billy Dick (361) 729-2213 2001 Director of Public Works (361) 790-5966(fax) 2002 citsvcab)cityofrockport.com Rosenberg,TX 2110 Fourth St. 77471 1995 Lynda Eiche (832) 595-3369 1998 Director of Finance (832) 595-3333 (fax) 2001 lyndae airosenberg.tx.us 2002 Sachse,TX 5560 Hwy 78 75048 2000 Alan Dickerson (972)495-1212 2001 Director of Finance (972)495-9536(fax) adickerson@cityofsachse.com San Benito,TX 485 N. Sam Houston 78586 2001 Victor Trevino (956)399-3800 2002 City Manager (956)399-3805 (fax) vtrev ino(a?san-benito.tx.us Santa Rosa,TX 413 Santa Cruz 78593 2001 Javier Mendez (956)636-1113 2002 City Manager (956)636-2044(fax) sewd(a2,gte.net Terrell,TX 201 East Nash Street 75160 2000 Stan Ballard (972) 551-6607 2001 City Engineer (972)551-6682(fax) sballand(ii cityofterrel1.org The Colony,TX 6800 Main St.75056 1999 Tony Johnston (972) 625-1756 Asst. City Manager (972)624-2298(fax) tohnston«,ci.the-colony.tx.us SECTION II:PROJECT TEAM PROFILE Page 19 MAXIMUS HELPING GOVERNMENT SERVE THE PEOPLE' E. COMPREHENSIVE PROJECT LISTING (Next two pages) The tables that follow on the next two pages provide the reader of a more extensive listing of rate study clients that dates back into the 1980s. SECTION II: PROJECT TEAM PROFILE Page 20 MAXIMUS L1 E-L.PL:VG GO I'ER,x511EA T SER 1'E THE PEOPLE' E. PRIOR UTILITY EXPERIENCE Population(x Water/Sewer Solid Gas& Storm Strategic PAR Client Note 1,000) Year Rates Waste Electrical Water Regional Planning Installation Addison,TX 9 1988 X X X Albany,GA 78 1997-9 X X Allen,TX (2) 23 1986-8 X X X Alvin,TX 20 1992-3 X X Bartlett,TX 20 1987 X X Bartonville WSC,TX (2) 12 1990-6 X X X Bay County,FL (2) 127 1991-3,5,7 X X X X Boynton Beach,FL (3) 40 1990 X X Burleson,TX 16 1991 X X X Carrollton,TX 120 1988-99 X X Chicago Water Partners,IL 5,500 1998-9 X X X Coconut Creek,FL 30 1995 X College Station,TX (4) 52 1993,01 X X X X Colony,TX 25 1998 X X X Commerce,TX 10 1994-8 X X X Coppell,TX 20 1984 X X Corpus Christi,TX 250 2001 X X X X X Corinth,TX 10 1996-00 X X Denton,TX 85 1991 X X X Desoto,TX 30 7995-8 X X X District of Columbia 600 1998-00 X X X X X Farmers Branch,TX 24 1996 X X X X Fayetteville,AR 40 1996-01 X X X X Flower Mound,TX 16 1997-9 X X X Forest Hills,TX 12 1996 X G.F.O.A./EPA - 1997 X X Gainesville,TX (2) 15 1984-00 X X X Gamer,NC 15 1997 X X Granbury,TX 4 1984-99 X X X Grapevine,TX 30 1998 X X Greenville,TX 23 1995 X Hernando County,FL 101 1990 X High.City,TX (2,3) 9 1989-90 X X Hillsboro,TX 25 2000 X Hollywood,FL (2,6) 140 1994-01 X X X X X • Keller,TX (2) 15 1996-00 X X X La Porte,TX (2) 28 1985,88 X X X X Lake City,FL (1) 10 1993 X X X X Lancaster,SC 10 1993 X X X Lancaster,TX 25 1997 X Los Angeles,CA (3) 3,200 1993 X X X SECTION II: PROJECT TEAM PROFILE Page 21 MAXIMUS HELPING GOVERNMENT SER I E T UE PEOPLE E. PRIOR UTILITY EXPERIENCE Population(x Water/Sewer Solid Gas& Storm Strategic PAR Client Note 1,000) Year Rates Waste Electrical Water Regional Planning Installation Mc Allen,TX (2,3) 84 1994-8 X X X Mc Kinney,TX 24 1985-99 X X X MedStar,Fort Worth,TX (2) 470 1992 X X N.Richland Hills,TX (2) 46 1988 X X X Nacogdoches,TX (4) 31 1995,6 X X X X Newark,NJ 320 1992-3 X X X Norfolk,VA (7) 261 1992-4 X X X X North American Development Bank 30 2001 X X X Palm Beach County,FL (3) 864 1984-8 X X X Pampa,TX 15 1995 X X X X Panama City,FL 34 1993,7,00 X X Paris,TX 25 1997-8 X X X Pasco County,FL (3,5,6) 281 1994-01 X X X Plano,TX 130 1994-9 X X X X Red Oak,TX (2) 3 1991-2 X X Richardson,TX (2) 75 1994-7 X X X X Richland Hills,TX 8 1989 X X Rockport,TX 5 1998 X X Rockwall,TX 25 2000 X X X Rosenburg,TX 25 1995-9 X Royse City,TX (2) 2 1990-3 X Sachse,TX 20 2000 X Terrell,TX 5 1999 X X Tifton,GA 15 1997-8 X X Trumbell,CT (5) 32 1992-8 X Venice,FL 16 1992 X X Waco,TX 105 1997-01 X X X Wake Forest,NC 10 1997 X X Watauga,TX (8) 21 1996 Zeeland,MI (5) 30 1995,00 Note(1)-Developed system development fees. Note(2)-Also updated study in succeeding years at least once. Note(3)-Developed impact fees also. Note(4)-Developed stormwater rates. Note(5)-Litigation support. Note(6)-System Acquisition Analysis. Note(7)-Cost Accounting System Development. Note(8)-Developed RFP SECTION II: PROJECT TEAM PROFILE Page 22 MAXIMUS HELPING GOVERNMENT SL'RI E 7HE PEOPLE' SECTION IIII: CORPORATE PROFILE MAXIMUS HELPING GOVERNMENT SER I'E T IlE PEOPLE' SECTION III: CORPORATE PROFILE A. OVERVIEW MAXIMUS was formed over twenty-six years ago to provide direct services to state and local governments. Over time, we have grown to be the largest provider of consulting and direct services exclusively to non-defense governmental agencies in the United States. Today, we are a publicly traded corporation on the New York Stock Exchange (MMS) and highly regarded as an industry and financial leader. We provide services to our clients through more than 5,000 client service professionals in local and regional offices located in 34 different States, including our southeast regional office located in Dallas, and service offices in San Antonio and Houston. B. CORPORATE OFFICES The Corporate Office is located at 11419 Sunset Hills Road, Reston, VA 20190-5207. C. THE COST SERVICES DIVISION The Cost Services Division is part of the Management Services Division of MAXIMUS, formerly David M. Griffith & Associates, Ltd. This practice was established in 1976 to provide experienced and high quality analytical services to public sector agencies. The founders of the fire established it based on the philosophy that senior and experienced staff members would be involved in all phases of our management and financial studies. The Management Services Division has conducted over 12,000 projects for over 3,200 local government client agencies. The Government Utility Rate Practice is based in our Dallas, Texas office. It is a component of our overall financial services to clients. This practice serves our clients in helping them to establish equitable utility rates. We have assisted several hundred governmental clients over our many years of service to local government. D. THE GOVERNMENT UTILITY RATE PRACTICE MAXIMUS' Government Utility Practice is headquartered in Dallas, Texas. The Dallas office directs and coordinates the work of the Utility Consultants. The Utility Practice is currently staffed by full utility and management professionals of 8 persons throughout the country. Staff Level Number of Personnel Practice Leader r 1 Consultant Managers I 4 Senior Consultants/Cost Analysts r 2 Administrative Staff I 1 SECTION III: CORPORATE PROFILE Page 23 MAXIMUS HELPING GOVERNMENT SERVE TILE PEOPLE' MAXIMUS is a leading provider of management consulting services to government utilities and state and local governments in the United States. In the past seven years, MFS has conducted over 250 rate/management studies of all types across the United States and more than 100 for government utilities. Our professional services for water, sewer, storm water, gas, electric and solid waste utilities include: • Rate Analysis, both wholesale and retail; • Financial Planning and Modeling; • Acquisition Studies; • Asset Inventory and Depreciation Services; • Managed Competition and Privatization; • Fixed Asset Analysis; • Litigation Support; • Organizational Studies and Operational Reviews; • Regulatory Analysis; • Cost Allocation Plans and Indirect Cost Analysis; • Strategic Planning and, • Policy and Procedure Review. The MAXIMUS Government Utility Rate Practice provides a comprehensive set of services for Government Utilities. We are staffed with leading Utility Professionals. A brief description of our major services follows. • Rate Studies — Our approach is based on the premise that there are two separate issues involved in this area (i.e., cost of services and rate design). It is also based on national guides and regulatory requirements which are customized to meet the client's specific objectives and needs. We normally suggest a multi-year analysis where expenses drive revenues, and the cost of the service is tied to operating and capital budgets and must take into account properly allocated costs. All assumptions are documented and community participation is recommended. • Financial Planning and Modeling — Long range capital improvement programs require that expenditures be planned in advance in order to assure smoothness in rates, as well as to optimize financing arrangements. We utilize a multi-year financial Planning and Rate model (PAR) to develop and answer "what if" questions and formulate a sound basis for short and long-range plans. • Acquisition and Fixed Asset Studies — These services generally involve a determination of the financial and operational feasibility of combining another utility or district with a City/County utility. A key component of these studies is the valuation of the utilities fixed assets, and projections of the financial impact over several years. SECTION III: CORPORATE PROFILE Page 24 MAXIMUS I!ELP1 VG GOVERNMENT SERVE ME PEOPLE'' • Asset Inventory, Appraisal and Depreciation Services — these studies generally include a comprehensive evaluation of existing policies and procedures, system operations, management and staffing of an entity's existing fixed asset inventory management program. Often done in conjunction with these services is the determination of replacement costs to assist with property insurance placement and proof of loss documentation. Our proprietary FACTS/plus software is a Visual FoxPro Windows based, event-driven program, which enables clients to maintain their property cost accounting records internally. FACTS/plus incorporates the fixed asset management tools in an easy to use software application. • Managed Competition and Privatization Studies —Our services include developing and managing a competitive bidding process. These services normally involve the definition of the services to be provided, quality standards and a detailed Request for Proposal. Technical assistance is also provided in evaluating responses and contract negotiations. • Impact Fee Studies —Impact Fees, also known as System Development Charges, are used to allocate the costs of increasing capacity among the users of the new capacity. Our approach considers both the "incremental method", used primarily for new construction, and the "buy- in method", used when there is existing capacity for utilities. We have also developed impact fees for other services such as libraries, parks,roads and fire. • Financial Feasibility Studies — We can perform comprehensive financial feasibility studies including rate requirements, projections of financial statements and coverage ratios, for debt issues requiring feasibility studies. These studies are generally a component of the bond offering. • Storm Water Utility Studies — There are significant differences between County and City utilities and MFS has experience with both. Our approach is to provide assistance with all aspects of establishing a storm water utility (i.e., feasibility analysis, program/fee design and implementation). • Regulatory Analysis—Many Federal and State laws/regulations impact local utilities capital and operations. MFS can determine the potential staffing and cost impact of complying with new regulations (e.g. backflow/cross connection) as well as performing viability analysis of the utility under de-regulation (e.g. electric and gas). • Expert Witness and Litigation Support —We have supported its clients regarding legal matters in several states, working closely with the clients' attorneys and providing detailed supporting analysis and testimony. These services have resulted in significant costs recoveries/savings. SECTION III: CORPORATE PROFILE Page 25 MAXIMUS HELPING GOI'ERNAIENTSERI'E n1E PEOPLE'' • Comprehensive Management and Operational Review — Our management studies encompass all significant functions and organizational activities. Knowledge of how each function is performed and how it interacts or is interrelated is critical if there is to be a valid assessment of management techniques. Our studies utilize "benchmarks" and are generally segmented into the following functions or elements: — General Management& Organization — Finance & Accounting — Engineering& Construction — Public Relations — Operations — Personnel& Labor Relations — Maintenance — Administrative Services — Procurement& Materials Management Establishing Utility Authorities —Our approach to evaluating the advantages and disadvantages of consolidating or separating utility normally involves evaluation of capital and debt programs, impacts on O&M costs and rates and asset valuations. An engineering cost analysis of interconnection and upgrade is also needed. SECTION III: CORPORATE PROFILE Page 26 MAXIMUS IIELPING GO t'ER:ViI£;'T SER I'E THE PEOPLE'' SECTION IV: ENGAGEMENT FEES MAXIMUS. HELPING GOVERNMENTSERI'E THE PEOPLE` SECTION IV: ENGAGEMENT FEES PROPOSED BILLING SCHEDULE We will perform the tasks outlined in the work plan for a not-to-exceed fee of$24,500. We will bill the City on a monthly basis, as follows: Month Amount Month 1 $10,000 Month 2 7,500 Month 3 5,000 Month 4 2,000 TOTAL $24,500 SECTION IV: ENGAGEMENT FEES Page 27 MAXIMUS !HELPING GOVERNMENT SERVE 17lE PEOPLE' APPENDIX A: DATA COLLECTION NEEDS MAXIMUS HELPING GOVERNMENT SERI'E 771E PEOPLE,. APPENDIX A: DATA COLLECTION NEEDS Phone We'd like to have the phone number, fax number, and e-mail Directory address for all key City contacts we'll be working with on this engagement. Organization We'd like to review this in order to enhance our understanding Chart of City of the organization of the City. Note - sometimes we can find & Utilities these published as part of the published budget. C.A.F.R.'s For last two-three fiscal years - required to evaluate the existing and recent financial condition of utilities Budgets by line For FY 2003, at the line item level - we plan on identifying the item cost of service for each utility, based on the most recently approved budget, at the line item level. Actual For FY 2002, at the line item level. We propose to show in the Revenues & financial plan the audited actual revenues and expenditures for Expenditures FY 2002, the revised revenue and expenditures for FY 2003, by line item and the preliminary budget for FY 2004. The actual and budgeted revenues and expenditures for these three years will become the basis for forecasting the revenues and expenditures for the planning period. Capital Water and wastewater Improvement Plans Bond We will need copies of these ordinances for all outstanding debt Ordinance(s) that will is supported by the rates. As part of our due diligence, For All Debt we will need to independently understand and verify any bond That is covenants, so that we can properly incorporate these adequacy Supported by tests into the rate model. Water/Sewer Rates APPENDIX A:DATA COLLECTION NEEDS Page 28 MAXIMUS HELPING GO 1'ER.NA/ENT SERVE TIME PEOPLE'' Amortization We will need copies of these schedules for all outstanding debt Schedules For that is supported by the rates. These schedules will need to All Debt Issues show the principal and interest payments and the dates they are Supported by to be paid. Water/Sewer Rates Monthly We will need to review and evaluate the amount of water Summary of produced by month for the last 3 -5 years in order to develop a Water basis for forecasting water consumption billed for the planning Treated for the period. We will also use this information to develop an estimate Last 3- 5 years of the percent of water lost and unaccounted for. Population We'd like to review any information the City may have related growth to growth forecasts. forecasts for the planning period We will require a copy of the City's billing history file in ASCII format, delimited by commas in electronic format. The following table illustrates what information we'd like to have in each record for the rate analysis. Field Name Reason Needed Account Number As part of the process of determining the impact of each rate alternative, we will calculate each account's water and wastewater monthly bill and develop profiles of how many customers will be impacted negatively by each rate alternative and how many customer's will be impacted positively by each rate alternative. In order to do this, we will need to know the account number. Customer Area We will need to know the geographical location of the account the record reflects: inside or outside Customer Type We will need to know the type of account the record reflects: water or irrigation. Customer Class We will to know the class of the account that the record reflects: residential, multi-family, commercial, industrial. Meter Size We will need to know the meter size of the account the record reflects. APPENDIX A: DATA COLLECTION NEEDS Page 29 MAXIMUSy HELPING GO I'EI?Ni LENT SER I'E THE PEOPLE` Field Name Reason Needed Year Month We will need to know the year and the month each record reflects, in "YYYY-MM" Units We will need to know how many units this record reflects. Consumption We will need to know the consumption billed for the account for that month. Furthermore, we will need to know if we are getting this information in thousands of gallons, hundreds of gallons, or actual gallons. A detailed memorandum will be forwarded by Bob McLain to the City's Utility Billing Coordinator at the onset of the project explaining the exact information required from the utility billing department and required formats. APPENDIX A: DATA COLLECTION NEEDS Page 30 MAXIMUS HELPING GOVERNMENT SERVE TUE PEOPLE' APPENDIX B: HIGHLIGHTS OF THE PLANNING & RATE MODEL (PAR) MAXIMus HELPING GOVERNMENT SERVE E THE PEOPLE'' APPENDIX B: PAR MODEL HIGHLIGHTS 1. What is PAR? PAR is a planning and rate model designed by the Government Utility Rate Group of MAXIMUS, INC. PAR gives the user the power to project and allocate costs, design rates, and most importantly, determine the impact on the customer base of the different rate designs. The model is currently run under Windows 95, 98, Windows Millennium, Windows 2000, and Windows XL using Excel 7.0 or later version. 2. What is the Background of PAR? • Supported by almost twenty years of development and use in the Government Utility Rate Group of MAXIMUS, INC.; ➢ PAR has evolved with each upgrade of Excel to take advantage of the capabilities of each upgrade; ➢ Developed in a format that will be familiar with those municipal and County utility staff members used to working with budgets and financial plans. 3. What are PAR's Capabilities? PAR gives the user the power to perform the following functions: ➢ Forecast each utility's demand by meter size within each customer class; ➢ Forecast operating and maintenance costs, including a level of support as detailed as the user wishes it to be, including staffing and salary tables, if required. ➢ PAR gives the user the ability to vary the type, size, timing, and amortization of planned debt over the multi-year planning period; PAR gives the user the ability to incorporate the various revenue adequacy tests into the model, based on the utility's bond covenants and/or reserve policies, allowing the user to perform "what-if" sensitivity analysis, based on the requirements of these adequacy tests; • Identify the revenue requirements of each utility for each year of the planning period using either the "cash-needs approach", the "utility approach", or a combination of both; ➢ Allocate costs into the categories of"shared costs" and "retail-only" costs, if required by large user agreements; Allocate costs into the customer classes using the "base-extra capacity method", or a more simplified approach; APPENDIX B: HIGHLIGHTS OF THE PAR MODEL Page 31 MAXIMUS� N91M HELPING GOVERNMENT SERVE THE PEOPLE' ➢ Gives the user the capability to design conservation rates based on the unique characteristics of their system. 4. What are other features of PAR that are important to know? ➢ PAR is adaptable to each utility's unique characteristics; ➢ PAR uses AWWA's Base-Extra Capacity cost allocation method, or a more simplified method tailored to the unique requirements desired by each utility; ➢ PAR uses EPA's User Service Charge method to determine rates, or a more simplified method tailored to the unique requirements desired by each utility; ➢ PAR is organized in a modular format. 5. What are PAR's Modules? This Excel-based software package is organized into four major modules: ➢ Multi year revenue requirements module (MYFP). The purpose of this module is to identify the revenues required from each utility for each year of the planning period. This module is organized into the following components: • Projection of each utility's units of service, such as the number of water meters, 5/8 inch water meter equivalents, annual water production, and annual water consumption billed. ➢ Cost of service allocation module. The purpose of this module is to first, distribute any shared costs between each utility. • Second, each utility's costs are allocated into cost-causal functional categories such as, for example -water: • Customer costs; • Raw water costs (if applicable); • Water treatment and production costs (if applicable); • Water transmission costs; • Water distribution costs. • Another example would be wastewater costs, such as: • Customer costs; • Wastewater collection system; • Wastewater treatment flow costs; ▪ Wastewater treatment strength costs, such as TSS, BOD, etc. Note - the model has the capability of segregating retail-only costs versus shared costs, if required for wholesale or large water and wastewater users. APPENDIX B: HIGHLIGHTS OF THE PAR MODEL Page 32 MAXIMUS HELPING GOVERNMENT sERI E THE PEOPLE, ➢ Rate design module. The purpose of this module is to design both the monthly minimum bill and the rate per thousand gallons for each customer class for each utility. • The monthly minimum bill rate design options that can be calculated for each utility are: Uniform monthly base bill, regardless of customer class; Uniform monthly base bill that varies by customer class; Monthly base bill that varies by meter size. • The volume rate design options that can be calculated for the water utility are: Uniform rate per thousand gallons,regardless of customer class; Uniform rate per thousand gallons, that recovers cost from each customer class based on the peak-to-average factors for each customer class - the result will be different volume rates for each customer class; Seasonal or year-round conservation rates (inclining-block rates). • The volume rate design options that can be calculated for the wastewater utility are: Uniform rate per thousand gallons,regardless of customer class; Uniform rate per thousand gallons, that recovers cost from each customer class based on the average strength of effluent for each customer class - the result will be different volume rates for each customer class; ➢ Bill comparison module. The purpose of the bill comparison module is to provide to the user as clear a picture as possible of the customer impact that different rate design options will have. APPENDIX B: HIGHLIGHTS OF THE PAR MODEL Page 33 „MGOVERNMENT IM,UPS APPENDIX C: RESUMES MAXIMUS HELPING GOVERX HEAT SER I'E T!!E PEOPLE'' APPENDIX C: RESUMES A. Resume of Jerry McKenzie Vice President, Project Director BACKGROUND Mr. McKenzie has an extensive background in cost accounting concepts and practical applications. Mr. McKenzie is a Vice President with MAXIMUS, INC. Since 1986, he has been responsible for managing several successful engagements in both the utility and governmental environments. EXPERIENCE Utility - Mr. McKenzie has been responsible for utility rate studies and management audits, the development of administrative and general capitalization rates, subsidiary cost allocation plans and overhead allocation methods for jointly owned power plants. Heavily involved in assisting utilities in dealing with restructuring, Jerry has authored two electric rate unbundling manuals for the American Public Power Association (APPA). These manuals serve as a guidepost for municipal utilities to utilize in unbundling service costs as they prepare for retail wheeling in a competitive, market-driven environment. He has also been involved in the design and implementation of internal service billing algorithms for administrative departments such as data processing, building service, fleet, stores handling, and engineering. In addition, he has an extensive knowledge of the Federal Energy Regulatory Commission's (FERC) statutes and regulations and currently serves as the instructor for APPA's Public Utility Accounting course. Some of his clients include Georgia Power Company, Santee Cooper, Arkansas Electric Cooperative Corporation, Boston Edison Company, Oglethorpe Power Corporation, Central and South West Corporation, Old Dominion Electric Cooperative, Madison Gas and Electric Company, the Oklahoma Municipal Power Authority, South Carolina Electric & Gas, Boston Gas Company, Entergy Services, City of Austin Electric Utility, Reliant Energy, City Public Service (San Antonio), the American Public Power Association, and well over forty members of the Kansas Municipal Utilities/Kansas Municipal Energy Agency. Nationally recognized as an expert in the area of overhead cost identification and allocation, he has made presentations on utility cost allocation theory and techniques to several professional organizations. These organizations include the Edison Electric Institute, the Institute of Internal Auditors, the American Public Power Association, the Electric Council of New England, Utilities Training Conferences, Inc., and the Nuclear Nonoperating Owners' Group. MAXIMUS HELPING GOVERNMENT SER rE THE PEOPLE As stated earlier Mr. McKenzie recently atithnrnrl twn unbundling maniial.c now offered through the American Public Power Association - one on unbundling utility services, the other covering marginal costing of generation. Mr. McKenzie has assisted several Municipal, Investor Owned, Rural Electric Coops, as well as Federal, State and District Systems with their costing needs. Prior to joining MAXIMUS, Mr. McKenzie acquired over eight years of public utility experience with a major midwestern electric utility. While with that firm he obtained experience in utility ratemaking, accounting systems design, financial and regulatory reporting, and operational auditing. Governmental - Mr. McKenzie has been directly responsible for the development and review of cost allocation plans created in accordance with federal guidelines (i.e. OMB Circular A-87). These guidelines establish the procedures necessary for governmental entities to recover indirect costs associated with grant funded programs. In this capacity, Mr. McKenzie has dealt with several reviewing agencies on behalf of our clients. In addition, he has developed "Full Cost" plans which enable clients to bill the full cost of support services to enterprise funds, special revenue accounts, etc. This process involves an in-depth analysis of general fund support provided to enterprise funded activities such as Utilities and Golf Course operations. Another related area in which Mr. McKenzie has extensive experience is in the costing of internal services. He has developed several billing algorithms for fleet maintenance programs, data processing funds and miscellaneous other internal service type charge back systems. Finally, he has been directly responsible for the review and analysis of alternative revenue sources for governmental clients. This activity primarily involves the development and implementation of User Fee Cost Recovery Programs, as well as the identification of"new" potential revenue areas for the governmental units. Mr. McKenzie's governmental experience includes completion of cost allocation projects for entities at both the state and local level. He has managed statewide engagements for the States of Oklahoma, Kansas, Louisiana and Arkansas. He has completed cost plans and user fee cost analysis projects for several state agencies including the Oklahoma Office of State Finance, the Printing, Motor Pool, and Building Management Divisions of the Oklahoma Department of Central Services, the Kansas State Historical Society, Kansas Corporation Commission, Washington State Patrol, Kansas Fire Marshal, Kansas Highway Patrol, Kansas Department of Health and Environment, the Kansas Board of Agriculture, MAXIMUS HELPING GOVERNMENT.SERI ET'IIEPEOPLE` the T oi�isian•i Departm} ent of Natural Resources, the Louisiana Department Llle LVLLL JLIALLLI LVlI LLL Vail µ V of Public Safety and Corrections, the Louisiana Department of Wildlife and Fisheries and the Louisiana Division of Administration. Mr. McKenzie has also been responsible for completing indirect cost allocation plans and other cost recovery projects for local government clients including the City of Tulsa, Oklahoma and the Cities of Kansas City, Hutchinson, Topeka, Wichita and Leavenworth, Kansas, as well as Sedgwick, Shawnee, Wyandotte, Butler and Johnson Counties in Kansas. He has also performed these services for the Cities of New Orleans, Lake Charles, Shreveport, Lafayette, Baton Rouge and Alexandria in Louisiana. Mr. McKenzie has served as the Project Director for Caddo, Rapides, St. Charles, Iberia, Jefferson and Orleans Parishes in Louisiana, as well as Pulaski County, Arkansas. All of these studies resulted in the identification of significant revenue enhancement possibilities and a couple of the user fee projects resulted in the client implementing fee increases, or adopting new fees identified, which totaled over two million dollars annually. EDUCATION Mr. McKenzie graduated with Honors from Wichita State University in Kansas with a Bachelor of Business Administration in Accounting in 1980. He has been involved with the local chapter of the Institute of Internal Auditors and has taught cost allocation and software design at the local and national level since 1986. MAXIMUS, HELPING GO I'ERNJJENT SE%t I'E THE PEOPLE' B. Resume of Robert McLain Senior Manager, Practice Leader Mr. McLain is the Practice Leader and Senior Project Manager in the Government Utility Consulting Group, for MAXIMUS, Inc. Mr. McLain has almost twenty years of governmental rate experience. Mr. McLain has specialized in government utility financing and rate setting since 1982. Since then, he has performed over 100 utility cost of service and rate design studies. The majority of the other assignments included multidisciplinary skills such as planning, budgeting, economic analysis, and cash management. Furthermore, Mr. McLain has been the driving force in the development of our rate model. The rate model has been enhanced many times (latest is in Excel 7.0 for Windows 95,98). His experience prior to joining MAXIMUS includes serving as part of the team that was the contractual Finance Director for two medium sized cities in North Texas. Partial Sample of Experience Services Clients Cost of Service/Rates Chicago, IL, Hollywood, FL, Washington DC, Plano, TX, Waco, TX, Carrollton, TX, Richardson, TX, Newark, NJ Impact Fees/Growth Studies Boynton Beach, FL, Plano, TX Flower Mound, TX, Keller, TX, Granbury, TX. J Management Studies Auburn, NY, Farmers Branch, TX, Edwards • Aquifer, TX HIGHLIGHTS OF PROJECT EXPERIENCE: Chicago, Illinois: Project manager of a water rate study for the City of Chicago and its suburbs (approximate population of 7.5 million). Rates had not been changed in nine years and the City's capital improvement program was almost $1 billion. The study involved evaluating several rate alternatives such as life-line and seasonal rates as well as including ROI in the cost of service. Numerous financial scenarios were evaluated using MAXIMUS' financial planning and rate model. The resultant rate model was installed after new rates were adopted. DC Utility Authority. Managed several projects related to a multi-year contract for the newly formed DC Water and Sewer Authority. The projects included financial planning/ financing, rate setting, and performing an annual "true up" of large wastewater user charges. Hollywood, Florida. Managed a water and sewer rate study. The study involved working with citizen groups to develop rate objectives for the City and identification of financial policies which required clarification. It also involved evaluation and restructuring Hollywood's large user agreements and the development of an equitable "true up" process. HELPING MAXIMUS SfiRt'E � E PEOPLE' The study resulted 111 a significant Sui1L of costs by customer group and u significant increase in the revenue requirement to achieve equitable "cost rates". The study and rates were approved unanimously by the City Council. Since then, Mr. McLain has implemented the "true up" process five times. Town of Trumbull, Connecticut. Served as the project manager related to a review of the rate structure between the Town's sewer Commission and Bridgeport's WPCA. The review required a complete evaluation of Bridgeport's rate methodology and cost allocation. It also required an understanding of agreements between the cities and EPA. The Study resulted in approximately 15% annual savings after three year's of litigation. City of Plano, Texas. Performed a rate study in conjunction with an impact fee study. The project involved determining the cost of serving the numerous customer classes, along with designing and determining the impact of several alternative rate structures. A computer model was developed and utilized to perform various "what-if' scenarios regarding the mix of impact fee charges and water and sewer rates. The subsidies were so severe between the customer classes that the consensus was to pursue phasing in equity between the classes over a several-year period. Rate alternatives considered were flat, inverted, and a seasonal summer surcharge. MAXIMUS subsequently assisted the City over a five-year period as these subsidies were minimized. Other Utility Clients. Mr. McLain has also developed cost-based solid waste rates for several clients. Additional project descriptions are also available. EDUCATION: B.B.A. - University of North Texas, 1983, with a heavy emphasis in Accounting and Finance. PROFESSIONAL AFFILIATIONS: American Water Works Association Water Environment Federation Government Finance Officers of North America MAXIMUS HELPING GOVERNMENT SER I E THE PEOPLE'' C. Resume of Jim Brown Manager, Project Consultant BACKGROUND Mr. Brown is a manager in the Dallas office of MAXIMUS. His experience has centered on the development, negotiation, and application of cost accounting and allocation principles during his tenure with MAXIMUS, Inc. His responsibilities include the preparation and negotiation of activity based indirect cost allocation plans, indirect cost rate proposals, cost of service studies, management studies, fleet management studies, and the support and maintenance of the MAXIMUS activity based cost allocation software. Mr. Brown has twenty years of accounting experience, of which more than nine years have been directly associated with federal, state, and local governmental entities. Upon graduation, Mr. Brown worked for a regional CPA firm maintaining financial records, performing both private and public sector audits, and preparing personal and corporate tax returns for four years. He then assumed the financial duties for a multi-state pet store chain. He has worked for a leading software firm in the development of accounting software providing a strong background in accounting system development and implementation. Mr. Brown has played an instrumental part in developing accounting systems and internal controls for a financial institution that had been placed under federal conservatorship. That financial institution was the first one of its kind to successfully be removed from conservatorship. He was, also, part of a team that instituted internal control procedures for a firm with $200,000,000 annual sales and converted the existing accounting system on an IBM 36 to a new system on an IBM 38 resulting in a centralized reporting system from satellite locations and efficient monitoring and utilization of cash flow. EXPERIENCE Mr. Brown has been involved in the preparation and negotiation of State Government indirect cost allocation plans and indirect cost rate proposals utilizing Level activity based costing principles for various state governments and agencies. His statewide cost allocation plan experience has included the preparation of plans for Louisiana, New Mexico, and Oklahoma. These plans have been successfully negotiated with the US Department of Health and Human Services. MAXIMUS HELPING GOVERNMENT SER I'E TIl E PEOPLE'' He has also prepared numerous state agency indirect cost allocation plans utilizing an activity based costing approach and indirect cost rate proposals. These include the Veterans Administration, Department of Education, Department of Agriculture, and the Department of Water Resources for the State of Oklahoma; the Department of Commerce, General Land Office, and the Department of Mental Health and Mental Retardation of the State of Texas, Texas Commission for the Blind, Texas Natural Resource and Conservation Commission, and the Texas Commission of Alcohol and Drug Abuse. These proposals have been successfully negotiated with various federal cognizant agencies including the US Department of Health and Human Services, HCFA, the US Department of Education, Environmental Protection Agency, and the US Department of Labor. Mr. Brown has prepared a variety of activity based cost of services studies for several state agencies which identify the actual costs of providing services by fully identifying direct and indirect program costs by activity. Cost of service studies on which he has participated include the Alaska Division of Insurance, the Texas Department of Health and the Comptroller for the State of Texas. EXPERIENCE Mr. Brown has a varied background in the local government area. He Local Government has prepared and negotiated indirect cost allocation plans and Level proposals, fleet management studies, and management studies for various cities, counties, and parishes. His activity based cost allocation plan clients have included the following: Texas cities of Austin, Fort Worth, and San Marcos; Louisiana cities of Baton Rouge and Shreveport; Tulsa, Oklahoma; and Los Alamos, New Mexico Electric Utility Section. County clients have included: Pulaski County, Arkansas; Beauregard, Jefferson, and St. Charles Parishes of Louisiana; Cameron, San Patricio, and Tarrant Counties of Texas. Mr. Brown has prepared a variety of activity based cost of services studies for cities and counties. These studies determined the full cost of providing services by determining and allocating direct and indirect costs by activity. These studies have included service such as planning, engineering, health, fire, police, jail housing, parks and recreation, building inspections, and tax collection. His efforts were instrumental in assisting these jurisdictions in establishing a comprehensive user fee policy, and the detailed accounting necessary to identify the actual costs of providing a specific service by activity. Among others, studies have been prepared for the City of San Marcos, Texas and the Texas counties of MAXIMUS HELPING GOVERNMENT SER I'E THE PEOPLE' El Paso, ( C B t -1 T El 1�a111e1V11, Ua111 at11lJ1V and Tan-ant. Mr. Brown has participated in engagements that include the San Antonio, Texas Fleet Management Study, the San Angelo, Texas Management Study, the Houston Light and Power Indirect Cost Allocation Plan for the City Participants, and the Boston Edison Indirect Cost Allocation Plan for the power line relocation. His responsibilities also include the maintenance and support of the NGCS2 activity based cost allocation software. Mr. Brown was the chairman for the software development committee that was instrumental in the development of the existing software. He provides training to both internal and external software users. EDUCATION Mr. Brown graduated from New Mexico State University in Las Cruces, New Mexico with a Bachelors of Accountancy. He is a Certified Government Finance Manager as recognized by the Association of Government Accountants. He participates in numerous professional seminars and classes in government finance and budgeting. mAximus HELPING GOVERNMENT SERIE THE PEOPLE' D. Resume of Bret Schyler Manager, Project Consultant BACKGROUND Bret Schlyer is a Manager in the Wichita, KS office of MAXIMUS. His responsibilities include a wide-range of indirect cost allocation projects and analysis within Kansas, Oklahoma and Louisiana and with utilities nationally. EXPERIENCE - Since joining MAXIMUS, Mr. Schlyer has assisted in the preparation on multiple indirect cost allocation studies for Boston Edison Company. These studies include cost allocation for charges to subsidiary companies, A&G capitalization, and A&G over head determination for charges to the State of Massachusetts for a major relocation project. Additional engagements Mr. Schlyer has participated in include the annual cost study for the four joint owners of the South Texas Project nuclear power plant, and the FERC account cost distribution study for the Rocky Mountain hydroelectric plant. Government - Mr. Schlyer has had primary responsibility for the preparation of indirect cost allocation plans within the state of Kansas for the Kansas Corporation Commission, Kansas Department of Health & Environment; the cities of Wichita, Topeka and Kansas City (Unified Government); and the counties of Sedgwick, Shawnee and Johnson. Additional work includes annual cost of services studies for the Mental Health Department in Sedgwick County, for the detention centers in Counties of Wyandotte, Shawnee, Sedgwick and Saline; and assistance in the preparation of the Kansas State Wide Cost Allocation Plan (SWCAP). In Louisiana, Bret's responsibilities include the annual cost allocation projects for the City of New Orleans, Jefferson Parish and St. Charles Parish. Additional work has included cost allocation plans for the Department of Natural Resources and the WIA 1-Stop Centers in New Orleans, Hammond and Bastrop; and a cost of service study for the Sheriff's Association. Mr. Schlyer also prepared a WIA 1-Stop Center cost allocation guide for the State Department of Labor, and provided state-wide training to 1-Stop operators as part of an implementation program. In Oklahoma, Mr. Schlyer has also completed a cost allocation plan for the City of Norman, and prepares an annual indirect cost allocation plan for the City of Tulsa. Additional work in Oklahoma has included cost of service studies for the Cities of Broken Arrow and Tulsa, and assistance in the preparation of the Oklahoma State Wide Cost Allocation Plan (SWCAP). EDUCATION Mr. Schlyer graduated with Honors from the University of Kansas with a Bachelor of Science degree in Accounting in 1994. WYLIE CITY COUNCIL AGENDA ITEM NO. Q.. . March 25, 2003 Issue Hold a Public Hearing to consider and act upon adoption of certain proposed revisions to the Landscape Requirements, Section 4.4.E.1.a.(1) of the Comprehensive Zoning Ordinance of the City of Wylie. Background Title 7, Subsection A, Section 211 of the Texas Local Government Code authorizes municipalities in Texas to adopt and administer local zoning regulations for the control of private development. The City of Wylie first adopted zoning regulations in 1962, and significantly revised these in 1974, 1985 and 2001. Minor revisions have been made to each of these Zoning Ordinances in response to changing trends or public desires. The last revision to Wylie's Zoning Ordinance occurred in February of 2000, when certain revisions to the requirements for lot and dwelling sizes of residential districts were adopted. Each version of the Zoning Ordinance has established minimal requirements for landscaping of development sites. Landscaping helps to improve the quality of air and water as well as add visual and economic value. The 1985 Ordinance required that five percent(5%)of all nonresidential developments be landscaped. The 2002 Zoning Ordinance increased the required landscaping for nonresidential uses to twenty percent(20%)of the site for Neighborhood Services, Community Retail and Corridor Commercial Districts and ten percent (10%) in Business Center and Industrial Districts. Both the previous and current regulations require that some of the landscaping be within the side and rear yards as well as the front. The currently-adopted landscape regulations favor retail centers of several small buildings which separate landscaping and parking into smaller courts, rather than free-standing"big box" buildings with landscaping and parking consolidated into large masses. The current landscape ratios anticipate that single "big box" buildings on a site(such as would be located in Business Center and Industrial Districts which require 10%) might be less able to comply with the greater proportion of landscaping as could the"smaller box"building retailers (as in Neighborhood Services, Community Retail and Corridor Commercial which require 20%). The City of Wylie also requires larger than normal parking spaces, and this combination of larger landscaping and parking increases the size of sites, and this additional land and improvements increases the cost of development for nonresidential uses. This in turn gives neighboring cities with smaller landscape and parking requirements a competitive advantage in commercial recruitment. To address the special characteristics of"big box" retailers within the Community Retail and Corridor Commercial Districts in a manner which the current Ordinance already accommodates such developments within the Business Center and Industrial Districts,the following amendment is proposed to be added Section 4.4.E.1.a.(1) of the Zoning Ordinance: "When a single building of 100,000 square feet or more is constructed in the CR or CC Districts, at least 10 percent shall be landscaped." Financial Considerations N/A Other Considerations 1. The proposed revision is consistent with large single retail buildings on single sites currently under development within Wylie, including Home Depot(which provided 10%although required 5%under the previous regulation) and Wal-Mart (which promises 11%, although no formal applications have been submitted). 2. Large industrial buildings recently developed within Wylie have not met the newly-required 10% of site for landscaping, as all comply with the 5%required by the previous code under which they were initially submitted. Carlisle Coating & Waterproofing, with a building of 105 906 square feet provided 16% landscaping,Lone Star Circuits, with a building of 142,708 square feet provided 5%, and Concrete Walls provided 8%. 3. On March 11, 2003, the City Council adopted revisions to the Thoroughfare Standards which permit angular parking spaces of 9.5 feet wide by 18 feet long, as well as the larger perpendicular spaces of 10 feet by 20 feet currently required. This amendment was expressly intended to address "big box" commercial sites and require less land for the same parking. Board/Commission Recommendation At the March 18, 2003 Planning and Zoning Commission meeting,the Commission voted 5-0 to recommend approval of the proposed change to the Landscape Requirements of the Comprehensive Zoning Ordinance. Staff Recommendation Recommend that the City Council adopt the revisions to the Zoning Ordinance as proposed. The Department's of Planning,Development Services,Public Works, and Fire concur with this recommendation. Attachments Ordinance Revised Text Af Prepare. by Revi d by Finance City Man er proval ORDINANCE NO. AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE LANDSCAPE REGULATIONS,SECTION 4.4.E.1.a.(1),OF THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF WYLIE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the governing body of the City of Wylie, Texas, in compliance with the laws of the State of Texas with reference to the amendment of the Comprehensive Zoning Ordinance, have given the requisite notices by publication and otherwise, and after holding due hearings and affording a full and fair hearing to all property owners, the governing body of the City is of the opinion and finds that the Comprehensive Zoning Ordinance should be amended; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. That Section 4.4.E.1.a.(1) of the Comprehensive Zoning Ordinance of the City of Wylie, Texas, be, and the same is hereby, amended by adding the wording"When a single building of 100,000 square feet or more is constructed in the CR or CC Districts, at least 10 percent of the site shall be landscaped.". SECTION 2. That all ordinances of the City in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3. Any person, firm or corporation violating any of the provisions of this ordinance or the Comprehensive Zoning Ordinance, as amended hereby, commits an unlawful act and shall be subject to the general penalty provisions of Section 1.5 of the Zoning Ordinance, as the same now exists or is hereafter amended. SECTION 4. Should any paragraph, sentence, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 5. This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION 6. The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this day of , 2003. By John Mondy, Mayor ATTEST: City Secretary Zoning Ordinance Figure 4-12-Landscape Treatment of Entrances li'i ,', - -(%,-; Ar i 11111iiiiiiiiliiiN n. al 2dra 4k,ifir Ili MIR t ile• .ter . ri ' - - •ii• . 1 p• b • t A t l"1v •, t, • 4. 4. Location of Service Areas and Loading a. Base Standard (I) Service areas and loading areas shall be located where they are not visible from a public street or from adjacent residential lots. (2) Service or loading areas which cannot fully meet the above requirement shall have a masonry screening wall with gates, which prevent visibility from a public street or adjacent residential lot. Masonry materials must match or complement the masonry materials of the building. b. Desirable Design Attributes (1) Service and loading areas which are not visible from a public street or adjacent residential lot, but which provide screening using a masonry screening wall with gates to screen the area from on-site areas, shall earn 10 points. E. Landscaping Landscaping points are awarded to projects in accordance with the following criteria: 1. Landscaping in Required Yards a. Base Standard (1) At least 20 percent of the site shall be landscaped in NS, CR, and CC Districts, and at least 10 percent of the site in BC and I Districts shall be landscaped. (2) When a single building of 100.000 square feet or more is constructed in the CR or CC Districts. at least 10 percent of the site shall he landscaped. (3) Landscaping is required in the front yard. (4) Landscaping is required in the side and rear yards when adjacent to or across the street from a residential use. b. Desirable Design Attribute Page 64 ARTICLE 4—NONRESIDENTIAL DISTRICT REGULATIONS February 27, 2002 . WYLIE CITY COUNCIL AGENDA ITEM NO. 3. March 25, 2003 Issue Hold a Public Hearing to consider and act upon a change in zoning from Single-Family Residential (SF- 8.5/17) to Corridor Commercial (CC), generally located east of Paul Wilson Road and south of Skyview Drive, being all of a certain 2.00 acre tract of land situated in the Francisco de la Pina Survey, Abstract No. 688-1, Tract 201, City of Wylie, Collin County, Texas. (Zoning Case 2003-01) Background The subject 2-acre tract was annexed into the City as part of a 46.5-acre tract in September of 1984, and was zoned for residential uses at the time of annexation. In April of 1994, 14 acres immediately abutting the subject property was disannexed due to the City's failure to provide sewer services and adequate fire and police support to the area as required by State Law. In September of 2002,the City Council denied a request by the current owner of the subject tract to be disannexed from the City, also based on the lack of City services and the owner's desire to develop uses which were allowed by the County(with no zoning authority) but not by current City zoning. The subject tract is abutted on north,west and south by unincorporated Collin County, and these neighboring properties are occupied by sparse rural residential or agri-business uses, many on lots in excess of two acres in size. To its rear and to the east, the property abuts the treatment and storage facilities of the North Texas Municipal Water District (NTMWD). When annexed in 1984, the property and those abutting it within the City were zoned as Single Family-2 Residential and were rezoned to Single Family 8.5/17(both allowing single-family lots of 8,500 square feet) with the revision of the City-wide Zoning Ordinance and Map in February of 2002. The NTMWD lands are also zoned SF 8.5/17, but are not likely to become available for development. The use of lands within the unincorporated County cannot be controlled by zoning by either the City or County. Both Paul Wilson Road and Skyview Drive are currently rural roadways, and generally dead-end routes to the north and west of the intersection where the subject tract is located. However, Park Boulevard is to be extended as a regional thoroughfare to align with the Skyview corridor, and improved to six lanes with divided median. Paul Wilson will remain a local two-lane street, even if reconstructed in the future. Public Comment Forms were mailed to four (4) property owners within 200 feet of this request. No Comment Forms have been returned at the time of posting. Financial Considerations Zoning Application Fee has been paid. Other Considerations 1. The Comprehensive Plan recommends Country Residential uses for the subject property,envisioning lots of one acre or larger with rural roadways, and the proposed commercial rezoning does not conform with this recommendation of the Plan. However, the Planning and Zoning Commission is in the process of revising the Comprehensive Plan, and is considering recommending that the subject area be developed as a Village Center with retail uses at the intersection,which is thought to better address the influence ofthe improved Park Boulevard corridor, and to the requested rezoning does conform to this proposed revision to the Plan. 2. The future alignment of Park Boulevard (generally indicated on the attached Location Map)will likely require a portion of the property immediately abutting the subject tract on the north, and thereby relocate the Park/Paul Wilson intersection to this neighboring property. This new intersection will be approximately centered and one mile distance from the next major intersections to the west(Parker Road) and east(Eubanks/Forrest Ross). This distance is sufficient to justify the location of commercial uses at each of these intersections, including the subject Paul Wilson/Park Boulevard location of the subject request. 3. As normally envisioned by the Comprehensive Plan, a Village Center retail core is more appropriately zoned Neighborhood Services(NS)District, intended to provide convenience goods and services to the immediately surrounding residential neighborhoods. However, the applicant desires to develop mini- warehouses for boats and other self-storage on the subject property, and such use is only permitted within the Corridor Commercial (CC)District. While, the requested Corridor Commercial District may in the future allow some more intensive uses which may not be compatible with neighboring residential uses,the CC District is considered more appropriate for frontage of major thoroughfares such as the planned Park Boulevard. Furthermore, potential for the extension of such commercial uses in a less efficient strip fashion to the east and south along Park and Paul Wilson is restricted by the undevelopable NTMWD properties. The use of lands to the north and west of this major intersection cannot be controlled by either the City or County. 4. The conceptual Site Plan and tabulation of requirements of the Zoning Ordinance indicate that the proposed development will comply fully with all regulations of the code. The property must be platted to create a legal lot of record prior to issuance of any building permits, and a more detailed site plan will be reviewed at that time. 5. The subject property will be required to connect any new development to the City sewer system,which is not currently available and will require extension of trunk lines for a distance of approximately 2,600 feet as well as likely lift stations and force mains (the closest existing sewer line is located within the Kinsington Manor Addition east of Parker Road at Paul Wilson Road or the Harvest Bend Addition west of Parker at Paul Wilson— see attached Location Map). Such extension is the responsibility of private development, and is more feasible for the proposed nonresidential development than for scattered low- density residential such as the current pattern and that recommended by the Comprehensive Plan. Water is provided to the property by the Wylie Northeast Water Supply Corporation rather than the City of Wylie. Board/Commission Recommendation At the March 4, 2003 Planning and Zoning Commission meeting, the Commission voted 5-0 to recommend approval of the proposed zoning change. Staff Recommendation Approval. The proposed commercial use is more compatible than low-density residential uses with the major traffic intersection which Park Boulevard at Paul Wilson is planned to become, and the NTMWD limits opportunity for strip commercial development. The Departments of Planning, Engineering, Development Services, Public Works and Fire concur with this recommendation. Attachments Ordinance Location Map Site Plan and Tabulation of Development and Code Compliance Notification List and Map Prepared,by Revi�w d by Financ City Ma ager proval ORDINANCE NO. AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF WYLIE, AS HERETOFORE AMENDED, SO AS TO CHANGE THE ZONING ON THE HEREINAFTER DESCRIBED PROPERTY, ZONING CASE NUMBER 2003-01 TO COMMERCIAL CORRIDOR (CC) DISTRICT CLASSIFICATION; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the governing body of the City of Wylie, Texas, in compliance with the laws of the State of Texas with reference to the amendment of the Comprehensive Zoning Ordinance, have given the requisite notices by publication and otherwise, and after holding due hearings and affording a full and fair hearing to all property owners generally and to owners of the affected property, the governing body of the City is of the opinion and finds that the Comprehensive Zoning Ordinance and Map should be amended; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1. That the Comprehensive Zoning Ordinance of the City of Wylie, Texas, be, and the same is hereby, amended by amending the Zoning Map of the City of Wylie,to give the hereinafter described property a new zoning classification of PD, Planned Development District Classification, said property being described in Exhibit"A" attached hereto and made a part hereof for all purposes. SECTION 2. That all ordinances of the City in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3. That the above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. SECTION 4. Any person, firm or corporation violating any of the provisions of this ordinance or the Comprehensive Zoning Ordinance, as amended hereby, commits an unlawful act and shall be subject to the general penalty provisions of Section 1.5 of the Zoning Ordinance, as the same now exists or is hereafter amended. SECTION 5. Should any paragraph, sentence, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 6. This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION 7. The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this day of , 2003. By John Mondy, Mayor ATTEST: City Secretary Exhibit "A" Zone Change#2003-01 Legal Description SITUATED in the State of Texas and County of Collin, being part of the Francisco de la Pina Survey, Abstract No. 688, being a resurvey of a 2.00 acre tract of land as recorded in Volume 2271, Page 486 of the Deed Records of Collin County, said premises being more particularly described as follows: BEGINNING at a point for corner marking the northeast corner of said premises, said corner being in Paul Wilson Road; THENCE, with the north line of said premises and departing said road, North 89°18'28" East, passing at 30.50 feet a found '/2 inch iron rod, continuing in all 584.70 feet to a '/2 inch iron rod found marking the northeast corner of said premises; THENCE, with the east line of said premises, South 00°27'00" East, 149.00 feet to a 1/2 inch iron rod found marking the southeast corner of said premises; THENCE, with the south line of said premises, South 89°18'28" West, passing at 554.15 feet a '/2 inch iron rod found, continuing in all 584.70 feet to a point for corner, marking the southwest corner of said premises, said corner being in Paul Wilson Road; THENCE, with the west line of said premises, North 00°27'00" West, 149.00 feet to the Place of Beginning and containing 2.00 acres of land. Ill Mr Subbed = Property I ♦ i /5 'u—kc r ------- I-T- - * / 1 , 1 1 _____ I . 1 i iiiiiII IP:* ma OVA I i I r--- -- —1 isok q i ' ---FTH LI I L-L /- • I E1 -rit.iG__1 t , i ( 1 i Lwi6R i- ; T .....1., . i •_, . , , 1 4.-_•-s---- i i , , I , , //-7- „ , 1 ' IF-- ,_ , , , .-_-_- mum, .- ! ..._ Fi--il , , ,,,,I , --,-. !i!ii r--_- i. I .<1U f II„[[I , _ n ,.,�Illllllill1l \ \ i 1 1[ rriilrnTAlL - '-- -- --- -- \ \ z II (--- I / . is, , co.:- 7,--f-ni=1,, / _ / =HE ,�(`'vI III) 1 --J IW:141111111 i IL hr—r , ji1 ;i! RE■ Ij 1%= : 1 IL act. se is m —ra r- Inial �� 117TTT1 Hall an I i v� MINN MEN ■ I — 7 LOCATION MAP ZONING CASE #2003-01 LANDSCAPE AREAS 115' .. 100' 0 30' DRIYE WAY 4 0 .1 1 1 Y 01 �7e h� 2 ISO' s`• En- '1l -+l10 - ' ' j 6 o - OFF ICE ' STRUCTURE FIRE '' '' ', LANEH 1 i i i , , • 1 LANDSCAPE BUSHES ETC. SEATING 25'"`..-- .60 -- 30....-... I00' BENCH 585' n l �C'/ 'G i !! 6 v 2003—a/ CC Zone Change Request ?Pd PA44/ a/ Rd. Lot area = 87,750 sq ft. Building area= 27,600 sq ft. % Coverage= 31.4% Parking Required = 1 Parking Provided =4 Landscape Required = 20% Landscape Provided = 30% Site Design Requirements Points Required= 60 Points Provided = 70 Building Placement a. Building at front yard line, 20pts. b. Individual buildings with footprints 10pts. c. Front Façade oriented to street. 1 Opts. Parking Placement a. Site plan with no parking in front of the building. 20pts. Access Drives b. Landscaped treatment of entrances. 1 Opts. Landscape Design Requirements Points Required = 55 Points Provided = 65 Landscaping in Required yards a. Landscaping that exceeds the minimum. 10pts. b. Landscaping in side and rear 10pts. Landscaping of Parking lots b. Parking lots with no space farther than 40 feet...... 10 pts. c. Landscaped pedestrian connection to main en 20 pts. Landscaping of Street Frontages d. Provision of special benches, pedestrian light..... 10pts. Architectural Point Requirements Points Required = 35 Points Provided = 60 Building Materials a. Use of two complementary primary façade materials..... 10pts. Building Articulation, Form and Massing a. Application of base standards to facades not facing.... 20pts. Architectural Compatibility a. Buildings in the NS and CR districts shall be architectural...... 10pts. b. Buildings with hip roof sections, dormers or two 20pts. NOTIFICATION REPORT APPLICANT: Michael Trent Blocker APPLICATION FILE #2003-01 1719 Mapleleaf Falls Drive Allen,Tx. 75002 # BLK/ABST LOT/TRACT TAX I.D. # PROPERTY OWNER NAME ADDRESS Applicant 1 719 Mapleleaf Falls Drive 1 Michael Trent Blocker Allen,Texas 75002 Madeline Massoud P.O. Box 1929 2 Abst. 688-1 Tract 9 R-6688-001-0090-1 Irrevocable Trust Wylie, Texas 75098 North Texas P.O. Box 2408 3 Abst. 688-1 Tract 212 R-6688-001-2120-1 Municipal Water District Wylie, Texas 75098 Collin County 210 S. McDonald Street 4 Paul Wilson Rd. Commissioner's Court McKinney,Texas 75069 5 • • 7 • 9 10 11 12 13 14 15 16 17 18 • L . . _ . . _ . . _ . . • I I Tr Q� 688 -i � . . _ .. _ . . _ . . _ . _ _ -: o _ . ._.. _.. _ . . _ . . _ .. _. . a r. _ I. _ . . _ . . _ . _ _ . _ . . . . NotIncltyllmlts i E Subject _ - - _ . _ .. _c. Property _ . . Not In ctty.11mtts Tr 2f 2 • n 2 C # Zoo 5-oi t = Zoo ' WYLIE CITY COUNCIL AGENDA ITEM NO. LI . March 25, 2003 Issue Consider and act upon an ordinance disannexing a 1.53 acre tract located east of Lavon Parkway, and generally northeast of the Cascades Subdivision. Background The property in question is a portion of a 4 acre tract that is located partially in St. Paul and partially in Wylie. The access to the property is from the southern end of Lavon Parkway, a portion of which was closed several years ago by St. Paul to prevent the road from becoming a through street to the tract in Wylie, which was subsequently developed as the Cascades Subdivision. Because there was not the opportunity to connect the areas, the Cascade Subdivision was designed with the lots backing up to the property in question (please see included plat). The property owner has requested disannexation simply to bring the property into a single jurisdiction, and is not alleging a failure to provide services. The original boundary between the City of Wylie and the Town of St. Paul in this area was simply drawn by the location of Abstract lines, without regard to property ownership. As development has occurred there is now opportunity to identify the division between the jurisdictions in a more logical, identifiable manner. Other Considerations State law does not provide for a specific procedure for processing a disannexation request of this manner. Section 43.142 allows a home-rule municipality to disannex property in accordance with its Charter. Wylie's Charter allows the Council to disannex property if it deems it appropriate and in the best interest of the City. In terms of provision of services, and the ability to identify a logical jurisdiction boundary, staff believes that the release of this property is in the City's best interest. Financial Consideration N/A Board/Commission Recommendations N/A Staff Recommendations Staff recommends approval of the request. Attachments Letter from Property Owner Area Map Cascades Subdivision Map Ordinance // 11:1 Pre ed by • wed y in ce City Mang r Approva Darlene Ponder 818 Pebblecreek Dr. Garland, TX 75040 TO: City of Wylie FROM: Darlene Ponder RE: Tract 24 and Tract 14 DATE: November 12, 2002 This is a request to the City of Wylie to change the boundary lines between the cities of Wylie and St. Paul by annexing two sections of land (0.5100 and 0.6650 acres)to the City of St. Paul. The two pieces of property measure on the south border(S 88'51'12" W 184.59') and on the east border(N 88'37'44" 774.84). I have not been able to discern separate boundary line descriptions of the land belonging to each of the cities; it is referenced on the abstract and deed by a description of the total property (8.369 acres). Enclosed are copies of Abstracts No. 56 and 629, a portion of the city maps of Wylie and St. Paul identifying the property, abstract maps of the two sections of property, and the 2002 property tax statements for the cities of St. Paul and Wylie. Sincerely, 46 t �c� aJidrlene Ponder cc: St. Paul City Council Ordinance No. AN ORDINANCE DISANNEXING A CERTAIN 1.53 TRACT OF LAND OUT OF THE W.D. BARNETT SURVEY, ABSTRACT 56, COLLIN COUNTY, TEXAS; PROVIDING THAT THE DISANNEXATION IS IN THE BEST INTEREST OF THE CITY; PROVIDING THAT THE CITY OF WYLIE HAS COMPLIED WITH ALL REQUIREMENTS OF LAW; PROVIDING THAT MUNICIPAL SERVICES WILL NOT BE PROVIDED AS OF THE EFFECTIVE DATE OF THE ORDINANCE; PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THE ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION THEREOF. WHEREAS, the City Council of the City of Wylie, Texas ("City Council") under the authority of Section 43.142. Local Government Code and the City of Wylie, Texas' (Wylie) Home Rule Charter, investigated and determined that it would be advantageous and beneficial to Wylie and its inhabitants to disannex the below-described property (the "Property") to Wylie; and WHEREAS, the City Council has determined that specific circumstances exist for the property described in Exhibit "A" that render disannexation to be in the best interest of the City; and WHEREAS, the City of Wylie has complied will all requirements of law; and WHEREAS, the City of Wylie will no longer be providing any services to the property as of the effective date of the ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: The Property described in "Exhibit A" and all public streets, roadways and alleyways located within or contiguous to the same are hereby disannexed. SECTION 2: That the official map and boundaries of Wylie are hereby amended to include the property as part of the City of Wylie, Texas, and that a certified copy of this Ordinance shall be filed in the County Clerk's office of Collin County, Texas. SECTION 3: All ordinances in conflict with this Ordinance are repealed to the extent they are in conflict, and any remaining portions of the conflicting ordinance shall remain in full force and effect. SECTION 4: The caption of this Ordinance shall be published in accordance with the law and the City Charter and shall be effective immediately upon its passage or as required by law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS on this day of , 2003. John Mondy, Mayor ATTESTED TO AND CORRECTLY RECORDED BY: Aimee Nemer, Acting City Secretary EXHIBIT"A" All that certain lot, tract or parcel of land in the W.D. Barnett Survey, Abstract No. 56 in the City of Wylie, Collin County, Texas and being part of a called 8.369 acre tract of land conveyed to Darlene Ponder by deed dated January 15, 2002, recorded in Volume 5177, Page 3057, Deed Records Collin County, Texas described by metes and bounds as follows: BEGINNING at a 1/2 inch iron rod set for corner at the Southwest corner of said Ponder tract, said point also being in the North line of a called 53.7251 acre tract of land conveyed to Cascade Companies, L.L.C. by deed recorded in Volume 4607, Page 1881, Deed Records, Collin County, Texas; THENCE North 00 degrees 28 minutes 06 seconds West, along the West line of said Ponder tract, a distance of 284.0 feet to a point for corner; THENCE North 89 degrees 31 minutes 54 seconds East, a distance of 187.0 feet to a point for corner, said point being at an ell corner of said Abstract 56 and an ell corner in the C. Mculmurry Survey, Abstract No. 629; THENCE South 00 degrees 28 minutes 06 seconds East, a distance of 281.78 feet to a point for corner, said point being in the South line of said Ponder called 8.369 acre tract, said point also being in the North line of said Cascade Companies tract; THENCE South 88 degrees 37 minutes 53 seconds West along the South line of said Ponder tract, 2.42 feet to a '/2 inch Red Capped iron rod found marker#4846 for corner; THENCE South 88 degrees 51 minutes 12 seconds West continuing along said South line, a distance of 184.59 feet to the Place of BEGINNING and Containing 52,901 square feet or 1.21 acres of land. >- 2 1 I Z D I O n a CO LAKEWAY D r- :4' W/C P SET ,°: 88.00" 73. ' 161.00' kliC I L` N 04 *a f1A - FZ N . 1 .. 8 57 8 56 N 55 ,� io le -� • 4.48' 68.00' 40.79'35'61 4l \B g M SCHOQNER. i►AY_ _ _ _ _ a \ 54 t ANCHOR DR.- '0, , W • I 120.66' a WINDWARD 1.11' 123.89' n _ _ _ _ -1 • $4.43' - - 20' B.L. o i m r co 9 I g I 53 $, M I _ 123.23' BOLT Y. 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I i i i i i i_ i i i i i ! i T i ! i i i 1 : i----1 ir_.._.._.� i-..--.._._.._.._.._.._.._.i.__i.._.. n, , j -mow_.. �^ .._.._.._.._.._.._.._.._.._.. N. F i i 40 tw,- . ,- - . 4 .._.---1"- -- iAS "i,� �, it) I I I —*� %•%111111� + I r- . . _ . . . _— 1 11111 11111111O***Alt,_lifiilefa- TITtt 411 111 111 1 u •• to7111m1 ! I I 1 1 r s•%%‘ o .., i J rI I I I I I I I I 1 :1. I i..�ra�,_ a 0 ����� �� •111111111i ■ri11���= ���� _.._.._.._.._ 1111111,� Scal. wows Lore_ I I IIIII�� 1 1 ue - -. . . ._ ( _.._.._.._._._._._.._..1._. II I, II I ill[]Z[ II kiiI -Hi INII 11 ( III I I Illlllll Cuall Meadow Pot I +rei it a 4. ____1 \ I i— i . LOCATION MAP