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Tuesday, March 11, 2014

Contest


Click on image to enlarge. 
Photo courtesy of Mr. Bill Addington
Win a $20 gift certificate to Amigo's Restaurant. Be the first to identify the place in the picture above. Contest ends Monday, March 17, 2014 at 5 p.m. Email me directly with your answer. Answer should be a place rather than a name and should be as specific as possible.


Monday, March 10, 2014

Not Impact Fees but More Land is Goal of Developers

Damn the people's will by petition. Sprawlers want City to jettison NW Master Plan and Smart Growth so they can plow up more natural land.
elpasonaturally is going to be saying a lot about impact fees. As reported here, City Council last Tuesday decided to have a one-year moratorium on those fees and see if there was some other way to pay for water utility capital improvements - perhaps Prop 6 money from the State of Texas. I suggested to Council that they also have an objective study done about growth and prosperity - i.e., whether growth pays for itself.

Prior to last week's Council, the Newspaper Tree did an informative piece about the issue.

In it they report on the arguments by the builders against impact fees.

In response to their arguments, Charlie Wakeem wrote a letter to Anthony Halpern of the NPT. Here is his letter with my editing:


"This letter is a response to your February 27 article about impact fees in the NPT.  I served on the Capital Improvement Advisory Committee or CIAC for the first six years after it was created by City Council.  I was term limited off the committee at the end of last year.  This is the committee that reviews impact fees and makes recommendations to the City Plan Commission and City Council.  When the committee was first formed, there were five members from the development community and four members from the public at large, including myself.  Now seven of the nine members are from the development community.  That's why CIAC is "vehemently opposed to increasing the charges" as you state in your article.

"The proposed fee increases are not the real issue.  It's a side show.  The development community is using them as misdirection to get what they really want and they know they have City Council's political support.  They want more urban sprawl as cheaply as possible, both in the three impact fee service or growth areas and in the city-owned PSB land on both sides of the mountain.  The latter is the most egregious.  They are being supported by the Greater El Paso Chamber of Commerce.

"Here are some of their arguments.

Housing affordability

"They say they will have to pass the fee increase on to the new home owners, which could price them out of a home.  That's a poor argument.  The highest fee increase is in the East Service Area.  I'll use those fees to illustrate the facts.  The current East maximum is $2,156.00.  The city currently charges 75% of that amount, which comes to $1,617.00.  The proposed maximum increase is $3,835.00.  The difference from $2,156.00 is $1,679.00.  If City Council keeps the 75%, the fee would only be $1,259.25.  Amortized over a 30 year mortgage at the highest current rate of 4.25% the increase in a home buyer's monthly payment is only $6.20 a month.  Less in the Northwest and Northeast Service Areas.  Hardly unaffordable.

Leap Frog Development

"With the increase in impact fees the development community would build homes outside the city limits in order to avoid them.  According to city planners, the developers would have to get water to those subdivisions somehow. There are two ways to provide water to those subdivisions: Negotiate with El Paso Water Utilities to extend the water infrastructure outside of the city limits or create a MUD (Municipality Utility District).  

"Extending services does not guarantee that it will cost less than the impact fees.  In addition, home owners would pay higher water rates to EPWU than city residents. 

"Creating a MUD has several risks. Water quality may be poorer; building the infrastructure could be more costly than the fees; and it's not sustainable. It's up to the homeowners in a MUD to fund and maintain the MUD.

"With or without impact fees, developers go outside the city already to avoid other fees and regulations, such as development application fees, hook up fees, building permits, parks, street lights, sidewalks, paved streets and etc., etc. etc. 

WORST OF ALL!!   

"Here is the real issue and it's not impact fees.  Builders want the city to sell its PSB land to developers lifting the city's restrictions on the land, (viz., the Northwest and Northeast Master Plans), and sell the land piecemeal for conventional sprawl development.  Unfortunately, after hearing the debate at the February 25 council meeting, this is something City Council seems amenable to doing.  It would betray the public trust after the Northeast and Northwest Master Plans were fully vetted in public meetings.  

"The excuses the development community uses to justify these land sales is twofold: revenue to the PSB through sale of the land, and ad valorem taxes to the city with the new housing.  The revenue from sales to the PSB is minimal and unsustainable.  Revenue from ad valorem taxes in new growth has never paid for itself.  A study was done several years ago by John Neal, the city manager's special projects person, that bears that out.  With these revenues, the development community justifies not having to increase or even eliminate impact fees.  

"Of course, another risk to selling the PSB land is water.  The main purpose for the PSB holding the land is for aquifer recharge to the Hueco and Mesilla Bolsons.  There is more land than locally available water to serve development on all of it."

Friday, March 7, 2014

The Friday Video: Arithmetic, Population and Energy, Part 1

Can El Paso prosper by growing and growing and growing? That's what the building sprawlers tell us and they have a City Council that believes them.

Watch Dr. Albert A. Bartlett's extraordinary lecture: "Arithmetic, Population and Energy: Sustainability 101." You can watch these in 8 approximately 10 minute segments or all at once. Al Bartlett was Professor Emeritus in Nuclear Physics at the University of Colorado. Here's the first segment. Go to www.albartlett.org and see this talk and others. Take the time to watch it. You'll know the answer to the question and you'll know that the El Paso sprawlers are wrong and only protecting their own greedy skins. You'll also realize why your onerous property taxes keep going up and up and up and never down. You'll have the answer to many more energy, conservation and sustainability issues.


elpasonaturally will be saying more about Dr. Bartlett and why his insights are important for El Paso today. Today's Friday Video is just a taste.

Thursday, March 6, 2014

Texas Unlikely to Act Soon Due to TCEQ Director and Solicitor General

Click to enlarge. Visit America's leaking natural gas system needs a fix, study finds.

Check out the story below from the Texas Tribune. Key paragraph:

The Texas Commission on Environmental Quality does not officially recognize greenhouse gas as a danger to the environment, and the state refused for years to issue federally required greenhouse gas permits to companies that needed them. Last month, the state’s solicitor general, Jonathan Mitchell, argued in front of the U.S. Supreme Court that the permits are illegal. And the TCEQ's director, Bryan Shaw, has repeatedly questioned whether climate change is caused by humans. 

[Emphases mine]

Sad. Sad. These same guys probably also believe that Adam walked with TRex. "Here, Rex, Rex. Good dino. Fetch the bone. Atta boy. Oh God! My rib cage aches so. What the..."

The subtitle should have been: "But Texas Is Unlikely to Act Soon".

Texas Could Lead on Methane Reduction, Report Says

Oil and gas companies could play a major role in slashing emissions of methane, and Texas, the nation’s top energy producer, could help lead the way, environmental advocates say.

The industry could curb projected emissions by as much as 40 percent in the U.S. by 2018 through actions that could save it money in the long run, according to a report released this week by the Environmental Defense Fund
But it is unlikely that Texas environmental regulators will embrace the message. And industry representatives disagree about the urgency of curbing methane emissions at a time when cows — through their flatulence — are actually a larger emitter.

Power plants that burn natural gas spew far less carbon dioxide than traditional coal-fired plants, helping to reduce impacts on the climate. But extracting oil and gas through hydraulic fracturing releases methane, a greenhouse gas that is more potent than carbon dioxide.

The new report suggested several ways for drillers to curb those releases, such as by finding and repairing pipeline leaks, replacing compressor equipment and capturing the gas before it escapes. Those changes would cost the industry some $2.2 billion up front but would yield savings in the long run as companies capture and reuse the stray methane, the study said.
“There are balanced, real solutions available that can make natural gas a less risky fuel source,” said Mark Brownstein, an energy expert at the Environmental Defense Fund.

Brownstein said that drillers could achieve some of the goals through voluntary actions that some companies have already taken, but that state regulations would also be important.

His group and others have hailed rules recently implemented in Colorado, another hotbed of drilling. That state now strictly regulates greenhouse gas emissions from oil and gas extraction, and if Texas were to follow suit, the impact on emissions would be much larger.

“What happens in Texas can have a great deal of influence in what can happen in the states and federally,” Brownstein said.

But Texas is unlikely to act soon.

The Texas Commission on Environmental Quality does not officially recognize greenhouse gas as a danger to the environment, and the state refused for years to issue federally required greenhouse gas permits to companies that needed them. Last month, the state’s solicitor general, Jonathan Mitchell, argued in front of the U.S. Supreme Court that the permits are illegal. And the TCEQ's director, Bryan Shaw, has repeatedly questioned whether climate change is caused by humans. 

Meanwhile, opinions within Texas' oil and gas industry differ.
Bill Mintz, a spokesman for Apache Corporation, a Houston-based oil and gas producer, called the EDF report “an important contribution to the discussion of cost effective opportunities to reduce methane emissions in the oil and gas industry.”

Apache, he said, has already implemented some of the practices mentioned in the report, but “we know there is a lot more work to do, and we encourage all of our industry colleagues engage in the race to minimize methane emissions in the oil and gas business.”

Deb Hastings, executive vice president of the Texas Oil and Gas Association, said she knew of several drilling companies that are working to reduce methane emissions largely through capture and recovery techniques.
She said her group was still reviewing the new study, but worried that researchers underestimated the cost of regulations and overestimated the benefits.

“We aren’t one of the biggest emitters of methane, but we try to reduce it,” she said. “We do believe that our emissions are dropping.”

Nationally, industry members have widely cited newly released data from the Environmental Protection Agency suggesting that the U.S. is emitting less greenhouse gases overall, and that emissions can be attributed not to oil and gas drilling but to the cattle industry — in other words, cow farts. (For years, experts have worked with cattle farmers to reduce animal emissions through grazing techniques and better nutrition.)

Estimates on exactly how much methane is emitted during fracking vary widely. Last fall, a high-profile study from the University of Texas at Austin measured emissions directly from oil and gas producing wells across the country. The results suggested that environmental rules have already helped to reduce emissions, and that without proper regulation, fracking might cancel out the benefit of natural gas to the health of the climate. But Texas researchers cautioned that the study focused only on the drilling process itself and do not measure pipeline leaks, another source of emissions.
Other scientists have come to very different conclusions, however, when studying the amount of methane in the atmosphere, rather than measuring emissions on the ground.

A peer-reviewed study published late last year by scientists from Harvard University and elsewhere suggests that the federal government has been vastly underestimating methane emissions in the U.S., especially those coming from the south-central portion of the country, where fossil fuel extraction is most prevalent. 

The scientists said methane emissions from oil and gas drilling could be underestimated by as much as five times.


Disclosure: At the time of publication, Apache Corporation and the University of Texas at Austin were corporate sponsors of The Texas Tribune. (You can also review the full list of Tribune donors and sponsors below $1,000.)
Texas Tribune donors or members may be quoted or mentioned in our stories, or may be the subject of them. For a complete list of contributors, click here.

This article originally appeared in The Texas Tribune at http://www.texastribune.org/2014/03/06/texas-could-lead-methane-reduction-group-says/.


For further reading:
New Study Finds U.S. Has Greatly Underestimated Methane Emissions

Tuesday, March 4, 2014

Sprawlers' Agenda Revealed

Sprawl results in blight such as this in Central El Paso and burdensome property taxes but not prosperity.
City Council voted unanimously today to postpone raising impact fees for a year. Their vote followed a revelation by the Mayor that he had spoken with the CEO of the EPWU, John Balliew, and builders. Balliew apparently indicated in private conversations what he stated today: the EPWU's budget is set for the year and funding for the water plants would not be necessary for a year. Balliew also stated that there would not be a rate increase as the result of postponing the impact fees. There was some discussion at Council that perhaps the recent passage of Proposition 6 in the State of Texas might mean some money for water infrastructure here in El Paso.

Certainly I appreciate the Mayor's efforts behind the scenes so to speak. On the other hand, he (and El Paso) would benefit more from the expertise from City Planning. The introduction of the ordinance should have come from Planning Director, Matthew McElroy. Instead, the Mayor interrupted Mr. McElroy and had Mr. Balliew come to the podium in order to circumvent (and I'm not using this word pejoratively) the original proposal to raise the fees and, instead, to explore postponing the fees.

Dr. Noe stated that he understood that impact fees is a matter of fairness: you use something, you pay for it; you don't, you don't. However, he also stated that to have infill there had to be incentives. When I addressed Council I agreed with him about incentivizing infill projects. What concerns me is that by  "incentives" he and others mean doing away with Smart Growth and shelving Plan El Paso - the very Master Plan that sprawlers hate. (I would look for incentives in terms of reducing permit fees and hook-up fees from EPWU.) In fact, as I expressed to Council, I hope that, during this coming year, that the City will pay for an independent study to verify whether we have grown and can continue to grow ourselves to prosperity. Study after study across the nation shows that sprawling does not pay for itself but rather is a drag on the economy of a municipality. In the case of El Paso, sprawl puts the burden on the property owner with burdensome property taxes - especially the low to middle/low income families who are in a majority in El Paso. It wouldn't hurt for the City to find out for sure about growth, sprawl and prosperity.

By the 1950's El Paso was the leading city in the southwest. It occupied just 25 square miles of land - a modest growth from its beginnings with 8 square miles. With the advent of the automobile, the freeway, and the suburban model of development, El Paso today occupies 260 square miles and is one of the poorest cities in the country. Certainly, it is not the leader in the southwest or Texas. Sprawl has not brought prosperity. It has brought burdensome property taxes and increasing blight.

The agenda of the sprawlers became obvious today. They loathe impact fees and hope that a State proposition will soothe the unfairness of putting the burden on ratepayers. They want no impact fees. Moreover, they want to abolish Smart Growth and they want to rezone the Northwest and Northeast master plans so that there are no smart growth requirements. Unfortunately they own this current City Council and may succeed with their agenda.

I do hope that a study about sprawl and prosperity can be conducted during this coming year. The downside to my proposal is that the Council can always cherry pick a consultant who will tell them what they want to hear - sprawl makes us more prosperous; build, build, build to your greedy heart's content, Mr. Sprawler. The builders control CIAC which will continue to advise against impact fees. Surprise. Surprise.

One hopes that the Mayor will listen to good scientific data about sustainable growth. There are very knowledgeable people here in El Paso who can help him: people from Eco El Paso, people already in city government in Planning and Sustainability. They need a place at the table as well. My guess is that, just like the stakeholder meetings that were held for selecting a new City Manager, there will be no one with environmental engineering and planning expertise and what gets done will be mere window dressing. The real decisions will be behind closed doors - Mayor with John Balliew and with builders and the chit chat of Representatives outside of City Council.

It's not good.


Monday, March 3, 2014

Tell City Council that You Favor Impact Fees

Although it appears as an introduction with a public hearing later, City Council will hear from the public tomorrow morning regarding impact fee increases. The proposed increase is the first item on the Regular Agenda - Number 6.1. If you can't make Council to speak in favor of the proposal, please contact your Council representative:

Ann Lilly          lillyam@elpasotexas.gov
Larry Romero    romerol@elpasotexas.gov
Emma Acosta   acostaea@elpasotexas.gov
Carl Robinson   robinsoncl@elpasotexas.gov
Michiel Noe      noem@elpasotexas.gov
Eddie Holguin   holguinex@elpasotexas.gov
Lily Limon        limonl@elpasotexas.gov
Cortney Niland  nilandcc@elpasotexas.gov

The issue is a matter of fairness as I have written in two previous posts HERE and HERE and one just posted today. The need for the EPWU to make improvements at the Bustamante and Jonathan Rogers Water Treatment plants as well as other infrastructure expansions is new development particularly in east, northeast and northwest El Paso. If you buy a new home in a newly developed area, then in all fairness you should pay for the improvements the utility has had to make. You shouldn't expect others to pay for it.

Besides the highest increase (on the east side) is only an additional $1,259.25 per home or just $6.20/month on a 30 year loan at the highest current rate of 4.25%. $6.20!!!

One expects builders to add on more per home not only to cover the impact fee increase but to garner some more profit. So why are some builders adamant that there not only be any further impact fee increases but that impact fees should be done away with altogether? The increase of $6.20/month on a mortgage payment doesn't threaten the sale of a home nor justify an outcry.

I suspect that some builders truly believe that more development means more in the City coffers via property taxes. I don't think builders are bad people. I just don't think that they realize that the additional growth means higher property taxes for all of us to pay for the additional infrastructure and services for new development. Growth doesn't pay for itself as study after study shows. In a town of lower incomes, the burden of development becomes a real drag on the family income because of higher property taxes.

Studies show that each new home built in a new development will cost an extra $18,000. Multiply that by the number of new homes in a new development and you have the additional tax burden for all of us to pay. That's why Smart Growth which cuts that expense in half makes more sense. Builders don't like smart growth. Again, I don't think they want in their heart of hearts to burden low income El Pasoans to subsidize their work; I think that they just believe something that isn't true - viz., growth pays for itself. Sprawl hurts the family income. It hurts that income a lot.

So, in all fairness, those who use something should pay for it. Those who don't, shouldn't. The increase isn't extravagant and quite affordable under a 30 year mortgage. Opposing this small increase may be a belief in something that just isn't true: that we can grow our way to prosperity. In fact, we can't and the way we are growing is adding greater burden on the property tax of all El Pasoans.

Please read Michael Kingsley's short paper "Sustainable Development: Prosperity without Growth" which he published in 1992. His conclusion: "In summary, while growth is often perceived as the only path to economic viability, the good news for both declining and growing communities is that there is an alternative. Prosperity does not require growth; it requires development that is sustainable. The global perspective makes it painfully clear that, if our strategies for economic development are not sustainable, they will be terminal." [Emphases are mine.]





The News about Impact Fees Just Gets Better!

I made a mistake in my February 24th post on impact fees. I didn't do my arithmetic. It turns out that the increase is much less than I reported. This means the increase will be only a tiny portion of a monthly mortgage payment. Tiny!

It also means that the El Paso Times can't be trusted when it comes to reporting the seriousness of something. You will see below why this tiny increase hardly deserves the headline: "Sharp increase is possible if City Council approves ordinance". Take the Times with a grain of salt. They also love using the verbs "would" and "could" in their major headlines. Anxieties not realities are their forte.

Here's a chart that will make it clear that the current brouhaha over an impact fee increase is a tempest in a teapot:


You can enlarge the image of the chart by clicking on it. You can also hit Ctrl along with the key with the plus sign and enlarge this entire page.

First, remember that the developers (and in the end the homeowner) pays just 75% of the impact fee. Even though you and I don't use or require the additional capital improvements at the Bustamante and the Jonathan Rogers Treatment Plants, etc., we still pay 25% of those fees. (I'm going on a shopping spree at Union Fashion. I'll pay 75% but you need to kick in the remaining 25%. That's how it works with impact fees.)

So the total amount that the developer paid for 2009 impact fees for east side development was $1,617 or 75% of $2,156. (See chart.) 

The 2014 Impact Fee Calculation for the east side is $3,835. That's the total that I mentioned yesterday as did the El Paso Times. The real increase is this: 75% of that $3,835 is $2,876.25. Subtract the 2009 total of $1,617 and you come up with the increase on the east side of just $1,259.25! 

The current rate on a 30 year loan is 4.25%. That additional $1,259.25 means an increase of a lowly $6.20/month on a 30 year loan. 

$6.20!

Hardly worth the words "Sharp increase is possible if City Council approves ordinance".

It is worth all of the thousands of dollars of ad revenue from home builders in the El Paso Times every month. 

Please plan to be at the next City Council meeting on March 4. City Hall is located at 300 N. Campbell. (Map)

The issue is about fairness. The increase is just a modest $6.20/month on a house payment for a new home built on the east side. Less elsewhere. (Actually it will be much more because you can be sure that the builders will jack up the price of a home to make some more money above and beyond the impact fee.) The increase pays for the capital improvements necessary to support new development. Nobody is arguing here against development - just who should pay. 

Fairness - that's what it is all about. If not, then please pay for my new swimming pool and wardrobe. Thanks.