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08/21/2017-CC-Agenda Packet-Work SessionBANGER *TEXAS AGENDA CITY COUNCIL WORKSESSION MONDAY, AUGUST 21, 2017 6:00 PM 502 ELM STREET SANGER, TEXAS 1. Call Meeting to Order. 2. Update from New Gen Strategies & Solutions - Water, Wastewater, and Electric Financial Planning and Utility Rate Study Results. 3. Presentation from All American Dogs. 4. Overview of Items on Regular Agenda. 5. Adjourn. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and readily accessible to the general public at all times, and said notice was posted on the following date and time: X-�/-,,�/ % at and shall remain posted until meeting ' adjourned. i Cheryl Pricew. y Secretary ;'• :4 City of Sanger, Texas This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at (940) 458-7930 for further information. August 21, 2017 City of Sanger, TX Water, Wastewater, and Electric Financial Planning and Rate Study Results NewGen Strategies • NewGen was retained by the City of Sanger, TX to complete a five (5) year Financial Plan and Rate Study specific to the City's Electric, Water, and Wastewater utilities • Based on analysis to -date, the project team recommends rate adjustments to all three utilities services Revenues (non -utility specific) General Fund Transfer 4A Fund Transfer Internal Services Fund Transfer Pay Plan Implementation Transfer for Pilot All other expenses Cost of Service Cost of Service Cost of Service Cost of Service Salaries Depreciation (schedue from CAFR) Utility specific a YI111' . •' 1- I a f►;iard Water • Revenue under current rates is insufficient to cover expenditures without capital outlays • Capital Outlays in 2018 drive 51 % of revenue shortfall — Water Equipment $104,600 one-time expense (2018) 2020 2021 2021 2022 Water & Wastewater Lines along Plum $750,000 50% $375,000 Relocation of Utilities along FM 455 $1,500,000 50% $750,000 Relocation of Utilities along 135 $2,000,000 50% $1,000,000 Boliver Street Water and Sewer $2,250,000 50% $1,125,000 TOTAL $6,500,000 $3,250,000 Projected Revenue Under Current Rates $1,716,914 $1,777,048 $1,839,587 $1,904,628 $1,972,271 $2,042,620 Revenue Requirement 1,920,365 1,825,384 1,869,468 1,921,976 1,873,616 2,013,559 Over/Under (203,451) (48,336) (29,881) (17,348) 98,655 29,061 Recovery Over/Under-11.85% -2.72% -1.62% -0.91% 5.00% 1.42% Recovery (°o) NewGen reviewed historical and forecasted trends with regard to operations and maintenance costs, cash capital outlays, debt service, capital improvements, utility usage, and others as appropriate in development of the annual water revenue requirements. All Meter Sizes $21.74 $24.32 $24.32 $24.32 $24.32 $24.32 $24.32 Volumetric Charge 1,001- 4,999 gallons $3.86 $4.32 $4.32 $4.32 $4.32 $4.32 $4.32 5,000 - 14,999 gallons 4.25 4.75 4.75 4.75 4.75 4.75 4.75 15,000 - 291999 gallons 5.30 5.93 5.93 5.93 5.93 5.93 5.93 30,000 + gallons 7.68 8.59 8.59 8.59 8.59 8.59 8.59 $50.00, —*—Current tPrcDected $40.00 $30.00 $20.00 Current 2018 2019 2020 2021 2022 2023 —*—Current $37.18 $37.18 $37.18 $37.18 $37.18 $37.18 $37.18 —Projected $37.18 $41.60 $41.60 $41.60 $41.60 $41.60 $41.60 $50.00 sf�am $30.(30 $20.00 --o—Current -*--Projected —@--Current --*—Projected Current 2 (3 18 2029 $43.13 $43.23 $43.13 $43.13 $48.25 $48.25 2020 2021 2022 2023 $43.13 $43.13 $43.13 $43.13 $48.25 $48.25 $48.25 $48.25 $70.00 $5©.2Q $40.0© $10.00 Currant -Pro�ectred __- - - - - - -- - - --0 Current 2018 2029 2020 2©2� 2022 2023 .-Current $58.43 $58.43 $58.43 $58.43 $58.43 $58.43 $58.43 -Projected $58.43 $55.35 $55.35 $55.35 $55.35 $65.35 $65.35 LCIVILIA i Justin Aubrey • Flower Mound � Mustang SUD � i A rgyle Sanger QProposedD - - $41.60 Ponder Sanger (Current$37.18 CeHna Corinth Denton son M.- HigHand V!Hage ?Hot Point Prosper Krum LCMUA Justin Aubrey Flower Mound Sanger �Prop®sed) J) ustang SU® Argyle Ponder CeHna Sanger QCurrenti) Denton cCon�nth HigHand Village .,"Hot Point Prosper Krum $62.00 $59.90 $52.81 ;;1 .25 $47.11 $46.31 $44.07 $43.13 $41.00 LCMUA MEMO Justin Aubrey W. Sanger QProp©sed) -- — $65.35 Flower Mound Celina • Mustang SAD© Ponder Sanger QCurrrrent� — $58.43 rrge Denton Corron-�l� � • Prosper Krum Highland Village . Wastewater Revenue under current rates is insufficient to cover expenditures Proposed Debt Service — Capital Project funding beginning in 2021 — 2023 (see table below) Projected Debt Service P&I $0 $0 $0 $29,286 $41 2DK S504,713 2020 Water & Wastewater Lines along Plum $750,000 50% $375,000 2021 Cowling Road Life Station $3,000,000 100% $3,000,000 2021 Relocation of Utilities along FM 455 $1,500,000 50% $750,000 2021 Relocation of Utilities along 135 $2,000,000 50% $1,000,000 2022 Boliver Street Water and Sewer $2,250,000 50% $1,125,000 TOTAL $9,500,000 $6,250,000 Projected Revenue Under Current Rates Revenue Requirement Over/Under Recovery Over/Under Recovery (°o) $1,752,670 $1,816,376 $1,882,630 $1,951,533 $2,023,193 $2,097,720 1,895,746 1,909,208 1,930,055 2,041,899 2,596,334 2,714,654 (143, 076) (92, 832) -8.16% -5.11% (47, 425) -2.52% (90,366) (573,141) (616,934) -4. 63% -28. 33 % -29.41 % NewGen reviewed historical and forecasted trends with regard to operations and maintenance costs, cash capital outlays, debt service, capital improvements, utility usage, and others as appropriate in development of the annual wastewater revenue requirements. Residential Rate Schedule - Wastewater Minimum Charge I Current 1 2018 1 2019 1 2020 1 2021 1 2022 Volumetric Charge I Current 1 2018 1 2019 1 2020 1 2021 1 2022 2023 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC 19 $60.00 $50.00 $40.00 $30.00 $20.00 $ L0.00 +Current --*—Projected Current 2028 2019 2020 —*—Current $43.10 $43. 1 0 $43.10 $43.10 Projected $43.L0 $46.63 $46.63 $46.63 2021 2022 2023 $43.10 $43.10 $43.10 $46.63 $55.33 $55.79 --@--Current -.*--Projected $40.00 $20.00, $20.03 Current 2028 2019 2020 2021 2022 2023 --o—Current $47.00 $47.00 $47.00 $47.00 $47.00 $47.00 $47.00 -.*--Projected $47.00 $50.85 $50.85 $50.85 $50.85 $60.34 $60.84 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $ 20.00 --*—Current --e-Projected Current 2CIS 2029 2020 2022 2022 2023 Current $62.50 $52.5C $62.50 $62.60 $62.60 $C2.50 $52.50 Projected $62.6C $67.73 $67.73 $67.73 $67.73 sac.33 $81.04 LCfi/IUA EMTTITIM Krum Highland ViNage Corinth , • • Mustang SUE $49.15 Sanger proposed) Sanger �(CurrentD Prosper Ponder CeNna 2uston Denton Aubrey Flower Mound PHot Point .63 $43.10 �4U.Z3 $38.11 $37.79 $33.00 i_C�ll UA Highland Wlage Krum C©rInth$54.99 Sanger (Proposed$50.85 Mustang 5U® Sanger QCurrent� $47.00 Argyle Prosper Celina -- --- - ?®nder 42.01 Justin IlEr—$38.00 Denton Flower Mound Pilot Pint Aubrey Highland Village LCMUA Ccronth $77.39 Sanger QProposed9 $67.73 Krum China Sanger � Currentt $62.60 Prosper Ponder_ rg�yle Mustang SUD E:T, Denton Aar1brrey�-$46.45 PoDot Poont .. Nouver Mound L • Revenue under current rates is insufficient to cover expenditures • Wholesale Power Purchase Cost (AEP) — Energy charge expected to decrease in 2020 • Annual note payment ($77,816) falls off in 2020 • Proposed Debt Service — Capital Funding in 2023 ($124,335) Capital Projects - Electric Funding Estimated Fiscal Project Description Current Year Cost Electric Electric % I Current Cost NEWGEN STRATEGIES AND SOLUTIONS, LLC 28 Projected Revenue Under Current Rates Revenue Requirement Over/Under Recovery Over/Under Recovery (%) $71750,780 $7,828,808 $7,908,533 $7,989,990 $8,073,219 $8,158,257 7,918,186 8,100,239 7,988,748 8,117,299 8,059,050 8,336,578 (167,406) (272,431) -2.16% -3.47% (80,215) (127,309) -1. 01 % -1.59% 14,169 (178,321) 0.18% -2.19% NewGen reviewed historical and forecasted trends with regard to operations and maintenance costs, cash capital outlays, debt service, capital improvements, utility usage, and others as appropriate in development of the annual electric revenue requirements. Customer Charge $14.00 $14.50 $15.00 $15.50 $15.50 $15.50 $15.50 Energy (kWh) $0.1175 $0.1175 $0.1175 $0.1175 $0.1175 $0.1175 $0.1175 Customer Charge $20.00 $20.71 $21.43 $22.14 $22.14 $22.14 $22.14 Energy (kWh) $0.1200 $0.1200 $0.1200 $0.1200 $0.1200 $0.1200 $0.1200 Projected Revenue Under Proposed Rates $7,769,592 $7,867,045 $7,966,693 $8,049,007 $8,133,110 $8,219,042 Revenue Requirement 7,918,186 8,100,239 7,988,748 8,117,299 8,059,050 8,336,578 Over/Under Recovery Over/Under Recovery (%) (148, 594) (233,194) -1.91 % -2.96% (22, 055) -0.28% (68, 292) -0.85% 74,050 (117,536) 0.91% -1.43% Proposed rates are projected to be insufficient to fully fund the revenue requirements of the utility and will require the City to potentially draw on reserves. $80.00 S7©.00 $ 50.©0 $50.©® 8740.00 $30.00 $20.00 $10.00 --*--Pro�ec�,Lad, --*--Current Projected Current 2018 2029 2020 2021 2022 2023 $72.75 $72.75 $72.75 $72.75 - --$72.75 $72.75 $72.75 $72.75 $73.25 $73.75 $74.25 -- - $74.25 $74.25 $74.25 -- --*--Current --o—Projected $1250.00 140.00 $120.00 $ 200.00 $80.00 $60.00 $40.00 $20.00 Current 2018 2019 2020 2021 2022 2023 �-Current $143.25 $143.25 $243.25 $143.25 $143.25 $143.25 8143.25 --*-Projected $143.25 $143.75 $244.25 $144.75 $244.75 $1244.75 $144.75 $250.00 $200.00 $2 50.00 $ L00.00 $50.00 Current —= —Current $190.25 --o—Projected $190.25 --*--Current projected 201S 2029 $190.25 $190.25 $190.75- $191.25 2020 2021 2022 $190.25 $190.25 $190.25 $191.75 $191.75 $191.75 2023 $190.25 $2911.75 Chris Ekrut NewGen Strategies & Solutions 1300 E Lookout Dr., Ste. 100 Richardson, Texas 75082 972.232.2234 cekrut@newgenstrategies.net & Solutions �TENv Ac All American Dogs Animal Control: Code Enforcement 12860 Tischter Rd. '(Q° Pilot Point ';k TX 'i' 76258 'k (972) 382-DOGS THIS AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into by Robert Matthews, a private contractor, d/b/a/ All American Animal Control, a division of All American Dogs (hereinafter referred to as "AAAC") and the City of Sanger, Texas, a municipal corporation (hereinafter referred to as "Sanger" or the "City"). RECITALS WI EREAS, Sanger is desirous of providing for residents and businesses a state certified, quarantine level, sheltering facility and WHEREAS, AAAC is desirous of furnishing full-time sheltering services to Sanger, and WHEREAS, the parties hereto desire to enter into this Agreement to provide animal sheltering services at the highest level possible to Sanger in accordance with the terms and conditions set forth herein, and WHEREAS, all payments to be made hereunder shall be made from current revenues available to the paying party, and WI1EREAS, the parties have concluded that this Agreement fairly compensates the performing party for the services being provided hereunder, and is in the best interest of each party. NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND CONSIDERATION PROVIDED FOR HEREIN, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY CONFIRMED, THE PARTIES HERETO AGREE TO THE FOLLOWING: Section 1: All matters stated above in the preamble are found to be true and correct and are incorporated herein by references as if copies in their entirety. Section 2: Term: This Agreement shall commence on October 1, 2017 and end September 30, 2022. Any extension of the term of this Agreement, including any changes in the terms and conditions, shall require the approval of the governing body of Sanger. Section 3: Scope of Services AAAC hereby agrees to provide Sanger the following services, personnel, and facilities: a. Impoundment and Boarding: All domestic impounded animals shall be kept for not less than five (5) days by AAAC with exception below. Cats impounded in humane live traps will be kept for three (3) days. Cats that, in the opinion of AAAC, are feral (non - domestic) will be, per state law, spayed or neutered, provided a rabies vaccination, and returned to the Sanger Animal Control Officer. After this period of time, domestic animals shall be released to a humane organization, placed for adoption, or humanely destroyed at the discretion of AAAC. No record shall be kept by the City as to the disposition of an animal after release is made to the facility. Except as described in Section 4 of this agreement, all costs for care and treatment of animals surrendered to AAAC by Sanger will be the responsibility of AAAC. Impounded animals in which the owner has contacted AAAC, fees have been paid or arrangements made for payment, and the deficiency that allowed the animal to escape have been resolved, AAAC will be available to facilitate the return of the animal during normal business hours. The owner can also make arrangements for pick up at AAAC Sheltering Facilities during non -normal business hours at the discretion of AAAC. Any animal, whether licensed or unlicensed, which in the professional judgment of AAAC and its employees, is in great pain and suffering due to injury from which the animal probably will not recover, and/or is posing an imminent danger to human beings or to other animals, may be destroyed by an AAAC representative in a humane manner. Any animal which, in the professional opinion of AAAC, appears to be rabid, or is showing the clinical signs of rabies AAAC will provide humane euthanasia so that the animal may be submitted to the Texas Department of Health for proper rabies testing. Impounded feral cats that show signs of illness or contagious disease will be humanely euthanized. Proof of residency (state issued I.D.) within the city limits of Sanger will be required for any animals "dropped off' at the City of Sanger. Exceptions will be authorization by the Chief of Police or multiple non -related witnesses seeing the animal within the city limits. A fee will be collected for non- residents wishing to drop off animals. b. Reporting: AAAC will supply a monthly report to the City of Sanger. The report shall summarize all animal impounds received during the previous month and in the event of Service Calls shall summarize those events. AAAC will make a presentation to the Council summarizing their operations for the previous six months. Information Line: AAAC currently operates on a 24 hour basis and maintains that after hours calls are returned immediately or the next business morning based on our professional opinion of priority. We shall provide callers with helpful information as to their pet related needs. Any resident from the City of Sanger may take advantage of this 24 hour service so that AAAC may better assist their individual needs. d. Schedule of Fees: These fees shall be charged to the residents of Sanger. The City is not responsible for these fees: Animal Impoundment Fee: $75.00 each impoundment Boarding Fee: $10.00 per day or portion thereof Non-resident "Drop Off': $250.00 per animal Section 4: City of Sanger's Obligations: Sanger agrees to perform the following: Sanger will attempt to contact the Owner of any stray animal picked up prior to transporting animal to AAAC. Pay an all-inclusive monthly fee of $4,080 for sheltering services of animals captured or picked up by Sanger's ACO and delivered to AAAC. This fee for the duration of the contract (60 months). In addition and due upon execution of contract, Sanger will provide $21,500 to AAAC for modification of existing kennels to accommodate Sanger's animal population. ,This contract includes the impoundment/sheltering of 260 domestic animals per contract year (prorated in year one). Animals in excess of that will incur a $160 charge per animal payable within 30 days of receipt of invoice. Feral (non -domestic) cats will not be considered part of the impoundment/sheltering number. Feral cats returned to the city will incur a $100 charge per cat. Feral cats euthanized due to illness upon entry will incur no additional charge. All inclusive fees do not include the following situations: Quarantine fees as required by Texas Department of Heath when an owner is not known or available; Specimen shipment fees on applicable animals; Medical & Veterinary fees as needed other than euthanasia or procedures and treatments necessary for adoption. Business Hour Service Call: $75.00 per call After Hours Service Call: $125.00 per call Any fees not covered under the all inclusive contract must have prior approval by the Chief of Police. Section 5: Revenues Retained: City shall retain all fines, forfeitures, etc. that may be generated by performing ordinance enforcement duties within the City's boundary. Section 6: Termination: This Agreement may be terminated at any time, by either party, giving ninety (90) days written notice to the other party to the addresses proved herein. In the event of such termination by either party, AAAC will be compensated for all services performed to termination date, which will be the date one (1) month after the date of the notice of termination, together with any payments then due and as authorized by this Agreement. i. In the event AAAC executes the termination of this agreement within the first 12 months, AAAC will reimburse the City the monies used for modification pro-rata. ii. In addition, throughout the entire duration of this agreement, the two (2) "cat condos" that are being provided to AAAC by the City will be returned in the condition in which they were provided, normal wear & tear taken into account. b. If the City fails to make payment to AAAC within fifteen (15) days after the date of billing for any invoiced amounts, AAAC will suspend services to Sanger and identify a date on which the services will be suspended and will notify the City Manager by telephone and in writing of the date services will be suspended. Failure of AAAC to furnish any services under this Agreement, the City shall have the right to make appropriate reduction in any fee paid (as determined by mutual agreement of the parties) or terminate this Agreement by giving proper notice. Section 7: Notice and Payments: All written notices, payments, or refunds shall be sent to the following addresses: All American Dogs City of Sanger 12860 Tischler Rd. Attn: City Manager Pilot Point, TX 76258 P.O. Box 1729 Sanger, TX 76266 Section 8: Dispute Resolution: In order to ensure an effective relationship between the parties and to provide the best possible services, it is mutually agreed that all questions arising under this Agreement shall be handled and resolved between the cities representative and the Owner of AAAC. The parties reserve their respective rights to legal remedies allowed by law. Section 9: Venue: Venue for any legal dispute arising pursuant to this Agreement shall be in Denton County, Texas. Section 10: Performance: Both parties mutually agree that AAAC is an independent contractor, and shall have exclusive control of performance hereunder, and that employees of AAAC in no way are to be considered employees of the City. Section 11: Indemnification: AAAC agrees to hold harmless, save and indemnify the City and its Officers for any an all claims for damages, personal injury and/or death that may be asserted against Sanger arising from AAAC negligence or its performance hereunder, save and except intentional acts of gross negligence by Sanger. The foregoing notwithstanding, the parties hereto reserve the right to all available legal defenses and all protections and limitations of liability provided by the Texas Tort Claims Act and the Texas Constitution relative to these parties. The provisions of this indemnification are solely for the benefit of the parties hereto and not intended to create or grant any rights, contractual or otherwise, to any other person or entity. Section 12: Insurance: AAAC agrees to procure and maintain, at a minimum, $1,000,000 liability insurance policy providing coverage against any and all claims for personal injury or property damage arising out of acts, errors, or omissions of AAAC, its officers, employees, or agents under or pursuant to this Agreement. The City shall be named as a certificate holder and shall be notified if this policy is cancelled for any reason. Section 13: Employment Verification: All AAAC Owners, employees, and volunteers have undergone a comprehensive criminal background check provided by a legitimate company (Lexis-Nexis) and records will be made available to the governing body at their request. In addition, a driving background will be performed for employees whose responsibilities reasonably require them to use company vehicles in the performance of Animal Control Services. IN WITNESS WHEREOF, we have hereunto set out hands this the day of , 2017 in the duplicate originals. All American Animal Control By: Robert M. Matthews, Jr. City of Sanger By: Mayor Attest: Attest: By: Witness By: City Secretary