072718 Friday Staff Report tCCity Manager's Office
DENTON 215 E. McKinney St., Denton, TX 76201 • (940) 349-8307
MEMORANDUM
DATE: July 27, 2018
TO: The Honorable Mayor Watts and Council Members
FROM: Todd Hileman, City Manager
SUBJECT: Friday Staff Report
I. Council Schedule
A. Meetings
1. Zoning Board of Adjustment Meeting on July 30, 2018 at 4:00 p.m. in the City
Council Work Session Room.
2. Special Called Historic Landmark Commission Meeting on Tuesday, July 31,
2018 at 5:30 p.m. in the City Council Chambers.
3. Board of Ethics Committee Meeting on Tuesday, July 31, 2018 at 6:00 p.m. in
the City Council Work Session Room.
4. Agenda Committee Meeting on Wednesday,August 1, 2018 at 3:30 p.m. in the
City Manager's Conference Room.
5. Work Session of the City Council on Thursday,August 2, 2017 at 8:30 a.m. in
the City Council Work Session Room, followed by Special Called Meeting.
6. Development Code Review Committee Meeting on Friday, August 3, 2018 at
11:00 a.m. in the City Council Work Session Room.
B. Upcoming Events
1. TML Annual Conference, October 10-12, 2018 at the Fort Worth Convention
Center.
II. General Information & Status Update
A. Interim Police Chief—Lt. Bobby Smith has been promoted to the role of Assistant
Chief and will also serve as the Interim Chief of Police for the Denton Police
OUR CORE VALUES
Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service
Department. Smith will begin his duties as Interim Chief on July 27, following the
resignation of Police Chief Lee Howell. In addition to the selection of Smith as
Assistant Chief and Interim Chief of Police, Lt. Frank Padgett and Lt. Chris
Summitt were also named deputy police chiefs and will report to Interim Chief
Smith. The City has contracted with Ralph Andersen & Associates, an executive
recruiting firm, to conduct a nationwide search for the new police chief. The
deadline to apply for this position is today, July 27. Additional details related to
the recent promotions and police chief recruitment process can be found in the
attached press release. Staff contact: Jessica Rogers, Public Affairs
B. City Council Annual Retreat — The City Council's annual retreat is scheduled to
take place on Saturday,August 25 starting at 9:00 a.m. at the Serve Denton facility,
located at 306 N. Loop 288. The planned location is accessible to the community
and will provide the City Council with a setting that is conducive to an active
conversation regarding a variety of important issues.
The retreat will be facilitated by Rick Robinson with Ramsee Consulting. The
meeting will be recorded with one stationary camera. The cost of video recording
is expected to be $1,500 and the facility rental will cost $400. Staff projects the
total cost of the retreat, including food, audio/visual, facility rental, and the
facilitator to be approximately$8,970. Staff contact: Bryan Langley, CMO
C. Faith-Based Organization Safety Seminar — As previously communicated, the
Denton Police Department will host a safety seminar on Saturday,August 18 from
8:00 a.m. to 1:00 p.m. in the Student Ministry Center of Denton Bible Church,
2300 E. University Drive. The event is open to all faith-based organizations, as
well as other organizations,businesses, or individuals that may want to attend and
learn how to train and prepare for the security and safety of their organizations.
While the event has had different themes each year,this year will focus upon being
prepared and trained for an active shooter response. This topic was requested from
many faith-based organizations in the community following the tragic incident in
Sutherland Springs, Texas. Please note, there will be new featured speakers to
complement the focus of the event. A new event flier and agenda are attached.
Interested participants can register by contacting Officer Shane Kizer at
shane.kizer(a),cityofdenton.com or (940) 349-7241. Staff contact: Shane Kizer,
Police Department
D. Civil Service Commission— There is currently one vacancy on the Civil Service
Commission. The Commission is responsible for ensuring compliance with the
Texas Local Government Code governing police and fire; includes approval of
eligibility hiring lists; holds hearings, upon appeal, on matters of promotions,
performance, reclassifications, and other civil service issues. Unlike other boards
and commissions, Civil Service Commissioners are appointed by the City
Manager. Staff have posted a notice on the website and distributed an email to
news subscribers letting the public know about the vacancy, eligibility,
responsibilities, and application process. Additional information about the role of
the Commission and eligibility requirements is attached. Interested Denton
residents should submit a letter of interest stating why they want to serve on the
Commission and provide confirmation they meet eligibility requirements to
Director of Human Resources Carla Romine at Carla.Rominekcityofdenton.com.
Letters of interest should be submitted no later than 5:00 p.m. on Friday, August
10. Staff contact: Carla Romine, Human Resources
E. Library Staff Perform Lifesaving Actions- On Thursday, July 12, Library staff
members Robert Mitchell, Isaac Serna, and Katherine Estill noticed an
unconscious man on a bench outside of the Emily Fowler Central Library. They
checked on the citizen, alerting Kimberly Wells on their way. Ms. Wells joined
them as they assessed the man's vitals. After noting that he was not breathing,
they moved the man to the ground to begin CPR. Mr. Mitchell performed CPR
with the assistance of Ms. Estill. Laura Douglass brought and operated the
Library's AED device. Isaac Serna spoke with 911 operators throughout the event,
so they could keep the EMTs who were on their way informed about the situation.
Mr. Mitchell performed CPR until the ambulance arrived. The Library is proud
of their awareness, quick action, and seamless teamwork that helped save the
man's life. The team will be recognized with a proclamation for their heroism at
the August 7, 2018, City Council meeting. Staff contact: Jennifer Bekker, Library
F. Library Database Interruption of Service for Pronunciator and ProCitizen—
The Denton Public Library participates in the Texas State Library and Archives
Commission (TSLAC) TexShare Databases program. The program offers public
libraries access to a package of 52 online learning and research tools at a deeply
discounted rate.
The Texas State Legislature recently decreased funding for the TexShare
Databases program. Because of this,the Pronunciator and ProCitizen subscription
from TexShare will end in mid-August. TSLAC has added announcements when
patrons log into either product that the subscription will no longer be available on
August 15, 2018.
The Library is in the process of establishing our own subscription to Pronunciator
so library card holders will still have access to online language learning. Due to
the sudden cut in state funding, we anticipate an interruption in service that could
last two to six weeks as the TexShare subscription ends and ours begins. We are
working to keep the interruption as short as possible.
The Library has updated the "Learning Tools" page of the Library website with
information about the interruption of service and has posted about the situation on
Library social media. Staff Contact: Jennifer Bekker, Library
G. Meal Report for City Council, Boards and Commissions—City Council requested
information regarding the amount that is spent on meals for City Council and other
legislative bodies. The table below describes the estimated meal expenditures for
the various legislative bodies that total over $1,000 annually; there are some
minimal food expenditures for other boards and commissions that have not been
included in the analysis.
City Council FY15-16 FY16-17
Boards & Commissions Meetings Total Total
City Council $ 15,305 $ 11,368
Planning&Zoning Commission $ 6,019 $ 4,989
Public Utilities Board 39 $ 2,931 $ 2,004
Parks Board 15 $ 1,198 $ 1,305
Council Mobility Committee 11 $ 610 $ 1,045
Airport Advisory Board 10 $ 813 $ 1,024
Grand Total $ 26,877 $ 21,734
Meals are typically provided when legislative bodies hold meetings between 11:00
a.m. — 1:00 p.m. or 5:00 p.m. — 7:00 p.m. as a courtesy to those members for
being there during what is typically lunch or dinner times. When ordering meals
for City Council, the staff orders for the seven council members, City Manager,
City Attorney, City Secretary, and other staff that are required to attend or present
for the meetings. Other boards and commissions meet less frequently and do not
have the same staffing requirements as the City Council, resulting in lower
expenditures per meeting. Staff contact: Sarah Kuechler, Public Affairs
H. Fire Department Training OpportunitX — The Fire Department had a unique
training opportunity this week at the Carriage Hill Shopping Center, located on
Avenue C. The shopping center is scheduled to be demolished later this summer.
The property owner granted the Fire Department permission to train onsite before
demolition takes place. The facility provided a prime location for the department
to participate in hands-on training for various capacities, including ventilating a
commercial roof, breaching walls, forcible entry and other fire suppression
techniques. Below are pictures from the training exercise. Staff contact: Collin
Skipper, Fire
I. Texas Lineman Rodeo — DME sent several teams to compete in the 2018 Texas
Lineman Rodeo during the weekend of July 21. DME had two journeyman teams,
four apprentice journeyman teams, and one BBQ cooking team participate in the
competition. Our teams won several accolades throughout the competition,
including:
• The team of Tyler Rinck, Garrett Dillard and Curtis Espedal was awarded
2nd place overall in the Municipal Division and 5th place overall in the
four different competitive events/challenges.
• The team of Clinton Peak,Cody Snider,and Blake Schmidt won 2nd place
overall in the #2 Mystery Event, 4th place overall in the Municipal
Division, and 7th place overall in the four different competitive
events/challenges.
• The four DME apprentices who participated in the competition had an
impressive showing, with places raging from 52nd to 83rd out of 114
contestants. Apprentice participants included Jordan Padron, Jacob Grey,
Mitch Hassell, and Gustovo Soto.
• The BBQ team won first place in the brisket competition. The team
included Layne Freeman and Jason Wilkins. Food prepared for the BBQ
competition is served to rodeo participants during the awards ceremony.
DME also had seven volunteer judges who assisted with the competition. The
Texas Lineman Rodeo provides an opportunity for DME employees to network
with other Texas electric utility line-workers while practicing essential skills in a
safe environment. Below are photos of the Rodeo Team. The Rodeo Team will be
recognized at a future Public Utilities Board and City Council meeting. Tentative
dates are August 13 and August 21, respectively. Staff contact: George Morrow,
DME
J. Western Boulevard Construction —Western Boulevard is currently reduced from
four lanes to two between the intersection of Jim Christal Road and the employee
entrance to the Winco Distribution Center. The construction is scheduled to be
complete September 21. Contractors are making improvements to the water and
wastewater systems in the Westpark area and have been in contact with Winco,
who is directly impacted by the construction. The attached Traffic Control Plan
depicts the traffic signage in the area. Staff contact: Alberto Lopez, Water
K. Update on Volkswagen Settlement - In 2016, courts determined that Volkswagen
violated the Clean Air Act by deliberately selling diesel vehicles equipped with
technology that tricked emissions testing. These vehicles violated federal
emissions requirements, polluting up to 40 times as much as regulations allowed.
As a part of the settlement, an Environmental Mitigation Trust was established to
be used primarily for projects that reduce emissions from older, heavy-duty diesel
engines. Funds will be distributed at the state level in proportion to the number of
diesel Volkswagen vehicles sold in each area. In 2017, a process was created by
which states could request the funding and designate a lead agency for
administration of the funds.
Governor Greg Abbott selected the Texas Commission on Environmental Quality
(TCEQ) as the lead agency responsible for the administration of funds received
from the Volkswagen State Environmental Mitigation Trust (Trust). A minimum
of$209 million dollars will be made available for projects that reduce nitrogen
oxides (NOx) in the environment. Requests have been made to allow Councils of
Government across the state to act as third party administrators, but a
determination has not been announced regarding the administration or
disbursement of funds.
The North Central Texas Council of Governments (NCTCOG) has been
coordinating comments, and gathering information for potential projects when the
funding becomes available. Both NCTCOG and TCEQ have created websites
with additional information. The TCEQ has an option to sign-up for alerts when
new information becomes available. To receive updates, go to:
hgps://www.tceq.texas.gov/agency /y trust. Staff contact: Katherine Barnett,
Sustainability
L. TxDOT Traffic Alert: I-35E NB Frontage Road—TxDot has provided notice that
the I-35E northbound frontage road between Medpark Drive and Brinker Road
will be closed from 10:00 p.m., Monday, Aug. 6 to 6:00 a.m., Tuesday, Aug. 7.
This closure is necessary to install a 5'x3' box culvert across the frontage road.
The press release from TxDOT is attached. Staff contact: Mark Nelson,
Transportation
M. Old North Park/Foxcroft Circle Tree Removal Information — In response to a
request by Council Member Armintor regarding the removal of trees as part of the
Old North Park(behind Foxcroft Circle),Development Services staff reviewed the
Tree Preservation Plan and visited the site. Staff found that the current work is
being done under a Clear and Grade Permit, however, the Tree Preservation Plan
approved with the Final Plat exceeded the Tree Code requirements, preserving
29.7% of quality trees and 50.4%of secondary trees. This information was shared
with the resident who had contacted Council Member Armintor. Staff contact:
Scott McDonald, Development Services
III. Community Events
IV. Attachments
A. Interim Police Chief Press Release
B. Faith-Based Organization Safety Seminar Agenda and Flier
C. Civil Service Commission Information
D. Western Boulevard Traffic Control Plan
E. I-35E Northbound Frontage Road Closure Press Release
V. Informal Staff Reports
A. 2018-094 Parks Gas Well Fund
B. 2018-095 Park Land Dedication and Development Trust Funds
C. 2018-096 Pension Plan Update
D. 2018-097 Right-of-Way Mowing and Maintenance
VI. Council Information
A. Council Requests for Information
B. Draft Agenda for August 7
C. Council Calendar
D. Future Council Items
E. Street Construction Report
IV—
rr rAM r� FOR IMMEDIATE RELEASE
DEN ON Jessica Rogers • (940) 349-7531 • Jessica.Rogers@cityofdenton.com
City of Denton Announces Bobby Smith as Assistant Chief
Smith also Named Interim Chief of Police
DENTON, TX,July 27,2018—The City of Denton has announced the selection of Lt. Bobby
Smith as Assistant Chief. Assistant Chief Smith will also serve as Interim Chief of Police. Smith
will begin his interim duties on July 27, following the resignation of Police Chief Lee Howell.
"Selecting an interim police chief was the best opportunity to provide continuity of leadership for
the employees of the Denton Police Department," said City Manager Todd Hileman. "Interim
Chief Smith demonstrated that he has the experience and knowledge to lead the department and
will provide stability and consistency during this period of transition. He will make an excellent
assistant chief and interim chief."
Smith has been a member of the Denton Police Department for 23 years. He has served as a
sergeant, lieutenant, field training officer, and detective sergeant. He also served on the DPD
tactical team(SWAT) for eight years. Prior to joining DPD, Smith served four years in the
United States Marine Corps. Smith holds a Bachelor of Arts in political science and a Master of
Science in criminal justice leadership and management. He is also a graduate of the Law
Enforcement Management Institute of Texas's (LEMIT) Leadership Command College.
"I am very excited about the opportunity to assist in leading our department as we await the
selection of the new police chief," said Interim Chief Smith. "I appreciate the confidence placed
in me and I look forward to working closely with our staff as we continue to meet the safety
needs of our city."
In addition to the selection of Smith as Assistant and Interim Chief of Police, Lt. Frank Padgett
and Lt. Chris Summitt were also named deputy police chiefs, and will report to Interim Chief
Smith.
The City is using the services of Ralph Andersen&Associates to conduct a nation-wide search
for the new police chief. The position has been posted and the deadline to apply is today, July 27.
After reviewing all applications and selecting finalists, there will be a two-day inclusive
interview process. The interview process will include receptions for both the public and the City
Council to provide feedback to the City Manager, who will hire the police chief. The interviews
will be held August 30 and 31. Additional information will be released as details are finalized.
Visit www.cityofdCDton.com for more news and to stay updated.
OUR CORE VALUES
Integrity•Fiscal Responsibility• Transparency• Outstanding Customer Service
ADA/EOE/ADEA www.cityofdenton.com TDD(800)735-2989
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DENTON POLICE DEPARTMENT DNTo'N PoyICE
CRIME PREVENTION SEMINAR
SAT RDAY, AUG. 18 1 8 a.m. to I p.m. I DENTON BIBLE CHURCH
ACTIVE SHOOTER PREPAREDNESS TRAINING
TOPICS INCLUDE:
• Pre-active Shooter Behavioral Changes
• Survival Mindset • Perimeter Hardening
• Security Liability—Legislative Clarity
SPECIAL GUESTS:
GREG STEVENS BRYAN WILKINSON
More than 40 years of law enforcement 19 years of law enforcement and 16 years
Stopped armed ISIS-inspired terrorists in on SWAT team
2015, saving countless lives Combat shooting and tactics cadre instructor
Awarded the Medal of Valor and Texas Active Shooter Training, LLC instructor
DPS's Director's Award for heroic actions
The conference will be held in the Student Ministry Center at Denton Bible Church,2300 E. University, Dr. in Denton.
No cost to attend. Continental breakfast will be served at 7 a.m.
To register, contact Officer Shane Kizer at Shane.Kizer@cityofdenton.com or(940) 349-7241 .
While this event is being held at Denton Bible Church,it is not a religious event.All members of the public are welcome to attend.
Produced by the City of Denton,07/18•ADA/EOE/ADEA•TDD:(800)735-2989•www.cityofdenton.com
Denton Police Department
Crime Prevention Seminar 2018
Denton Bible Church Student Ministry Center
2300 E. University Dr, Denton, TX
August 18, 2018
7:00-8:00 am Breakfast Served Cartwright's
Ranch House
8:00-8:15 am Welcome Officer Shane Kizer
Pastor Tom Nelson
8:15-9:00 am Curtis Culwell Center Terrorist Response Officer Greg Stevens
Garland Police Dept
9:00-9:45 am Active Shooter Tactics & Considerations Bryan Wilkinson
Deputy Denton CSO
9:45-10:00 am Break
10:00-10:45 am Pre-Active Shooter Behavioral changes Officer Shane Kizer
"Left of Bang" Considerations Pat Smith
DBC Outreach Dir.
10:45-11:00 am Church Security Liability- Who Can Serve Drew Christian
(Legislative Clarity
11:00-11:15 am Break
11:15am-12:15pm Survival Mindset Greg Schaffer
Former FBI HRT
12:15-12:30 pm Break
12:30-1:00 pm Perimeter Hardening Pat Smith
1:00-1:15 pm Door Prizes & Closing Denton Citizens
Police Volunteers
City of Denton
Civil Service Commission
Purpose
The Civil Service Commission ensures compliance with Chapter 143 of the Texas
Local Government Code that governs police and fire.
Role of The Commission
• Approves position announcements for entry and promotional exams and
approves the material from which promotional candidates will be tested.
• Conducts fair and impartial appeal hearings on test questions for promotional
exams while rendering just and fair decisions by considering evidence
presented at the hearing.
• For entry level and promotional exams, approves the eligibility lists that
determines the order in which candidates will be considered for further testing.
• If requested by the employee, reviews promotional bypass reasons and renders
them sustained or overruled.
• If requested by the employee, listens to suspension appeals with the authority
to uphold, reverse, or reduce the length of the suspension.
• May reinstate a suspended employee if a procedural defect is committed by
the department head.
• Approves or denies demotions requested from the department head.
Appointment of Commission Members
Appointments are made by the Chief Executive Officer (City Manager) and
confirmed by the governing body (City Council).
Commission members are appointed to serve staggered, three-year terms, with
the term of one commissioner expiring each year.
The Commission members are combined to form a three-member panel called
the Civil Service Commission.
Membership
A person appointed to the commission must:
(1) be of good moral character;
(2) be a United States citizen;
(3) be a resident of the municipality who has resided in the municipality for
more than three years;
(4) be over 25 years of age; and
(5) not have held a public office within the preceding three years.
Meetings
Civil Service Commission meetings are typically held once a month. A standing
date and time is set by the Commission. Currently, the meetings are typically held
on the 4t" Wednesday of each month. The meetings time will vary depending on
the agenda. Unless there are appeals of promotional test questions, most
meetings are less than one (1) hour. Appeals can lengthen meetings to two (2) to
three (3) hours.
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SALESMAN/EXECUTIVE s
NOTES
Lindsay Garrett VYrightCon■tnrlction
Sheet 1 �,. Eric Day �- �m BUYERS
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� Narvigators � ;�.�,. FST BARRICADE ' 1984
THIS PLAN IS FOR ILLUSTRATIVE PURPOSES ONLY AND 04//2018 Jim Christal Rd&Westem Blvd
�,.,•
IS NOT INTENDED TO RELIEVE THE CONTRACTOR FROM H Type 3 Barricade
E REQUIREMENTS SET FORTH BV RELATED CONTRAC `d�L'r All Traffic Con Vol Pl...rrCP>I> th>P-",ty of iuy
DOCUMENTS.THE TEXAS MANUAL ON UNIFORM TRAFFIC 2-Way TWfic Devices spaced on 35ft centers Barn cads,Inc.alw an Incluaw with evy>n B>IT�Cad»
CONTROL DEVICES(MUTCD)OR THE OVERALL Crossover r>ntal agr»rn>ntf.TraNlc C—ftPI Phna I»Y w>d hoot a
RESPONSIBILn'Y TO TRAFFIC CONTROL SAFETY. Vortical Paull Posted s >g--M will h.°h.M d to the°>,temor.
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CLOSED EAST OF WESTERN BLVD
• • • Earth
SALESMAN/EXECUTIVE -
Lindsay Garrett NOTES Wright Construction
Sheet 2 �� Eric Day Krum BUYERS
TCP DESIGNER
Reedie Lea -M 817-975-3487 Westpark Improvements tg[ BARRICADE ' 1984
0 Navigators �
THIS PLAN IS FOR ILLUSTRATIVE PURPOSES ONLY AND 07/21/2018 Jim Christal Rd&Western Blvd
15 NOT INTENDED TO RELIEVE THE CONTRACTOR FROM H Type 3 Barricade
E REQUIREMENTS SET FORTH BY RELATED CONTRACT -- -- - N Traffic Control Plana TCPs1 are the property of Buyers
DOCUMENTS.THE TEXAS MANUAL ON UNIFORM TRAF FtC Devices spaced on 35ft centers Baehcades.Inc.and are�n 1,ded. th Buyers BamcaEes
CONTROL DEVICES lMVTCO OR THE OVEItA LL Z-vVay Tfaffic
I. Crossover natal ayraenrnts.TraMc Control Plana lasued wtthoul a
RESPONS�ILRV TO TRAFFK CONTROL SAFETY. vefbcai Panai Posted speed limit 45MPH renal ayr«ment w,ll De charges to the customer.
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Texas Department of Transportation° News
4777 E. Highway 80
Mesquite, Texas 75150
(214)320-4480
TxDOT's four goals: Maintain a safe system,address congestion,connect Texas communities,and be a Best-in-Class state agency
--- TRAFFIC ALERT ---
Thursday,July 26,2018
IH35E, Northbound Frontage Road
WHERE: IH35E Northbound Frontage Road (Between Med Park Dr and Brinker Rd)
WHEN: 10:00pm Monday, August 6, 2018 and will re-open 6:00 am Tuesday, August 7,
2018.
WHAT: Weather permitting, IH35E Northbound Frontage Road will be closed for
placement of 5'x3' Box Culvert across the NBFR. This closure will be between
Med Park Dr and Brinker Rd.
Delays are expected during this time.
Motorists are urged to be mindful of workers in the construction zone. Backups are
possible and motorists are encouraged to seek alternate routes.
Branden Barnett
TxDOT Project Manager
214-392-1791
branden.barnett@txdot.gov
Road conditions and traffic updates available on Facebook, www.facebook.com/txdot and
Twitter, www.twitter.com/txdotdallaspio and www.drivetexas.org.
Texas Department of Transportation
The Texas Department of Transportation is responsible for maintaining 80,000 miles of road and for supporting aviation,
rail, and public transportation across the state.TxDOT and its 12,000 employees are committed to working with others to
provide safe and reliable transportation solutions for Texas by maintaining a safe system, addressing congestion,
connecting Texas communities, and being a Best in Class state agency. Find out more at www.txdot.gov. Fan us on
Facebook,www.facebook.com/txdot; and follow us on Twitter,www.twitter.com/txdot.
Date: July 27, 2018 Report No. 2018-094
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
The purpose of this report is to provide the City Council with details regarding the City's parks
gas wells.
BACKGROUND:
During the July 17th Council meeting there were questions asked about gas wells producing
royalties in the City's parks. This report will provide a detailed explanation of the parks gas
wells, their location, mineral interest rates, and revenue.
DISCUSSION:
Denton has six gas well pad sites consisting of 14 well heads that provide revenue to city parks.
All gas well pad sites are located off of park land and use horizontal drilling to access minerals
below the parks. The appropriable fund balance as of September 30, 2017 is $104,371. Attached
is a financial statement as of 9-30-17 for the Parks Gas Well Fund and includes the FY 2018-19
Proposed Budget.
The royalty percentage for the wells ranges from 18.75%to 25%however the city does not
receive that amount in payments. Each well head has a pooling agreement in which the rights of
many different mineral owners are combined into pools large enough to extract minerals. The
City is paid royalties based on the net revenue interest (NRI) which is calculated by dividing the
number of acres the City has by the total number of acres in the pool then multiplying by the
royalty percentage. The table below outlines the well's name, associated park, royalty percent,
and NRI.
Parks Gas Wells Location and Royalty Rates
Name Park Royalty % NRI
Acme I Lake Forrest/Wiggly Field/Cross Timbers 25% .03354489
Acme 2H Lake Forrest/Wiggly Field/Cross Timbers 25% .03354489
Acme 3H Lake Forrest/Wiggly Field/Cross Timbers 25% .03354489
Acme 4H Lake Forrest/Wiggly Field/Cross Timbers 25% .03354489
Meredith 1 Lake Forrest/Wiggly Field/Cross Timbers 25% .01548882
Parks Unit IH North Lakes Park 21% .14862463
Parks Unit 2H North Lakes Park 21% .14862463
Underwood Breen lH Airport Open 20% .02539863
Underwood Breen 2H Airport Open 20% .02539863
Rayzor West 12H-1 Airport Open 22.5% .00664086
Rayzor West 12H-2 Airport Open 22.5% .00664086
Rayzor West 12H-3 Airport Open 22.5% .00664086
Rayzor West 12H-4 Airport Open 22.5% .00664086
Denton CJW 1 Vintage Open Space l 8.75% .00208743
Date: July 27, 2018 Report No. 2018-094
The Acme and Meredith pad sites are located to the southeast of Lake Forrest Park. The Parks
Unit pad site is across from Fire Station 5 on the west side of N. Bonnie Brae St. The
Underwood Breen 1H and 2H pad sites are located off of Airport Rd.just east of the Airport. The
Rayzor West 12H pad site is located off of Airport Rd. behind ReaderLink and the Denton CJW
1 pad site is located north of 2449 (Vintage Blvd.) and west of I-35W.
Please do not hesitate to contact me if you have any further questions about the city's park's gas
well royalties.
ATTACHMENTS:
Parks Gas Well Financial Statement
STAFF CONTACT:
Antonio Puente, Jr., Director of Finance
(940)-349-7283
Antonio.Puentegcityofdenton.com
City of Denton
Parks Gas Well Fund'
Schedule of Revenues&Expenditures
For the Period Ended September 30,2016
FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19
DESCRIPTION ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROPOSED
REVENUES:
Royalties2 $ 50,339 $ 4319734 $ 4729236 $ 2189782 $ 1639409 $ 3219937 $ 1729268 S 99,308 $ 97,726 S 50,000 $ 29,200
Interest Income - 2,257 2,645 3,471 1,080 173 1,340 1,047 1,072 1,000 800
Transfer from Other Gas Well Fund - 192059046 - - - - - - -
Total Revenues $ 50,339 $ 1,639,037 S 474,881 S 222,253 S 164,489 $ 322,110 S 173,608 $ 100,355 $ 98,798 $ 51,000 $ 30,000
EXPENDITURES:
Transfer to Capital Projects-Water Park Slide Replacement $ - $ 350,000 $ - $ - $ - $ - $ - $ $ - $ $ -
Transfer to Capital Projects-Senior Center Land Purchase - 1509000 - - - -
Transfer to Capital Projects-North Lakes Soccer Fields - 850,000 - - - -
Transfer to Capital Projects-Mack Park Property purchase - - 539000 - - -
Transfer to Capital Projects-North Lakes Bleachers - - - 159000 - -
Transfer to Capital Projects-Mack&Milam Park Land Purchase - - - 909000 - - - -
Transfer to Capital Projects-Mack Park Score Boards - - - 109000 - - -
Transfer to Capital Projects-Water Park Shade Covering - - - 159000 - - -
Transfer to Capital Projects-Adult Soccer Field - - - 959000 - - -
Transfer to Capital Projects-Water Park River Pump - - - 159000 - - - -
Transfer to Capital Projects-Evers Park Irrigation - - - 609000 - - - -
Transfer to Capital Projects-Quaker Town Park Irrigation - - - 509000 - - - -
Transfer to Capital Projects-North Lakes Property Purchase - - - - 500,000 - - -
Transfer to Capital Projects-Golf Driving Range Improvements - - - - 197,999 - - -
Transfer to Capital Projects-Adult Soccer Field - - - - 100,000 - -
Transfer to Capital Projects-Water Park Concession Stand - - - - - 45,500 -
Transfer to Capital Projects-Denia Athletic Fields - - - - 409000 - - -
Transfer to Capital Projects-Vela Soccer Complex - - - - 55,000 200,000 150,000 100,000 -
Transfer to Capital Projects-American Legion Hall Renovation - - - - - - - - - 100,000 -
Transfer to Capital Projects-Softball Fields and North Dog Park - - - - - - - - - - 50,000
Total Expenditures $ - $ 193509000 $ 539000 $ 3509000 $ 7979999 $ 140,500 $ 2009000 $ 1509000 $ 100,000 $ 100,000 $ 50,000
Net Income(Loss) $ 50,339 $ 289,037 $ 421,881 $ (127,747) $ (633,510) $ 181,610 $ (26,392) $ (49,645) S (1,202) $ (49,000) $ (20,000)
Beginning Unreserved Fund Balance $ - $ 50,339 $ 339,376 $ 761,257 $ 633,510 $ - $ 181,610 $ 155,218 $ 105,573 $ 104,371 $ 55,371
Ending Unreserved Fund Balance $ 50,339 $ 339,376 $ 761,257 $ 633,510 $ - $ 181,610 $ 155,218 $ 105,573 $ 104,371 $ 55,371 $ 35,371
State law restricts the use of these revenues for parks expenses only. In addition,State law prohibits the use of park surface to parks purposes only. As such,there are no gas wells drilled directly on park land.
2Royalties from gas pooling agreements associated with the following parks: Airport Open Space Park,North Lakes Park,Vintage,Lake Forrest Park,Wiggly Field,and Cross Timbers Park.
Date: July 27, 2018 Report No. 201 8-095
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
The purpose of this report is to provide the City Council with details regarding the McKenna
Trust Fund and the Park Land Dedication and Development Funds.
BACKGROUND:
During the July 17th Council meeting there were questions asked about PARD's special revenue
funds. This report will provide a detailed explanation of the funds, current and estimated
expenditures, and budget highlights.
DISCUSSION:
The McKenna Trust Fund is used to account for interest received from the George McKenna
Trust, which was established in 1958 and currently is managed by JP Morgan Chase Bank. One
half of the net income from this trust is distributed to Cook Children's Hospital in Fort Worth
and one half of the net income is distributed to the City of Denton for use only in maintaining,
developing, preserving, and improving the George McKenna Park in the City.
McKenna Trust Fund Expenditures
• FY 2017-18 -No funds were spent from this fund.
• FY 2018-19 - $80,000 is anticipated to be used toward playground or pavilion
replacement at McKenna Park.
The Parks Land Dedication and Development Trust Funds are funds received from developers
which provide for neighborhood parks and projects within a maximum 1 mile radius of the
development or platting.
Park Land Dedication Expenditures
• FY 2017-18 - $49,787 was transferred to the Villages of Carmel property purchase and
$51,903 to the American Legion Hall renovation project.
• FY 2018-19 - Estimating using funds towards the following projects: Industrial Park,
North Lakes Dog Park, Briercliff Park improvements, and any additional projects
identified.
Park Land Development Expenditures
• FY 2017-18 - $40,000 was transferred to Lake Forest Park improvements, $45,000 to
park roof repairs, $236,522 to American Legion Hall renovation, and$32,515 to Sequoia
Park trail extension.
• FY 2018-19 - Estimating using funds towards the following projects: Industrial Park,
North Lakes Dog Park, Carl Young and Quakertown restrooms, South Lakes Park
parking lot, Denia Park improvements, Briercliff Park improvements, and any additional
projects identified.
Date: July 27, 2018 Report No. 201 8-095
Budget Highlights
Estimated Estimated
Balance Start Estimated Budget for Balance Estimated Budget for Balance
of FY Revenue Expenses Start of FY Revenue Expenses Start of FY
McKenna Trust Fund 80,829 5,000 0 85,829 5,000 80,000 10,829
Park Land Dedication 1,987,094 35,000 400,000 1,622,094 35,000 1,000,000 657,094
Park Development 3,579,780 225,000 500,000 3,304,780 225,000 1,000,000 2,529,780
Please do not hesitate to contact me if you have any further questions about these funds.
STAFF CONTACT:
Heather Gray, Parks and Recreation Business Manager
(940) 349-7611
Heather.Gray(k cityo fdenton.c om
Date: July 27,2018 Report No. 2018-096
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Update regarding the funded status and funding progress of the Texas Municipal Retirement
System(TMRS) and the Denton Firemen's Relief and Retirement Fund (DFRRF).
EXECUTIVE SUMMARY:
As part of our annual budget discussions, staff provides the City Council with information on the
status of our pension plans and the most recent actuarial evaluations. This report is intended to
provide a high level overview of the history and structure of each plan, investment performance,
and overall funded status. The DFRRF is currently in the process of completing a new actuarial
evaluation, and we expect this to be presented to Council for review in the fall of 2018.
BACKGROUND:
The City of Denton participates in two separate pension plans. The DFRRF covers firefighters in
the Denton Fire Department. The TMRS plan covers all other City of Denton employees with the
exception of temporary positions.
TMRS Overview:
TMRS was created in 1948 by the Texas Legislature. TMRS is a hybrid of a defined benefit and
defined contribution plan. Under this approach, contributions are defined until the date of
retirement. Upon retirement, the value of these contributions and investment earnings define the
benefits for the retiree (also known as a cash balance plan). In this way, the unfunded liabilities
associated with many defined benefit plans are minimized.
While TMRS is a state-wide retirement system, the plan does not receive any state funding.
Rather, all funding associated with TMRS is provided by employers, employees, and investment
earnings of the system. Further, individual cities determine the level of benefits that will be
provided to their retirees.
As of December 31, 2017, the TMRS system had 883 cities that participate in the plan.
Collectively, these cities have 167,577 employee accounts and 62,776 retirement accounts. The
market value of the assets in TMRS is approximately $28.6 billion. Specific information for the
City of Denton's TMRS plan is provided in the attached excerpt from the City's Comprehensive
Annual Financial Report (CAFR).
Investment Performance
The TMRS plan assumes an annual investment return equal to 6.75% of plan assets. However,
the actuarial valuation process utilizes asset smoothing techniques to "smooth out" the natural
Page 1 1
Date: July 27,2018 Report No. 2018-096
year-to-year fluctuations that are inherent in the investment markets. Below is a history of the
TMRS investment rate of returns achieved compared to the stated goal of 6.75% (shown as a red
line in the below graph). Over this period, TMRS has achieved an average investment return
equivalent to 7.42% (arithmetic average).
TMRS Investment Rate of Returns
Net of Fees
20%
15%
10%
5%
0%
-5%
2017
Note: TMRS began measuring investment returns on a"Total Return"basis in 2008, Prior to this
time, investment performance reflected yields on the bond portfolio.
While TMRS has had strong investment returns in the past, there is no guarantee that the system
will be able to achieve these rates in the future. However,by continuing to diversify the portfolio,
TMRS investment managers believe they will be able to achieve an average 6.75% return over
time. It is also important to note that any one year, or even a series of years, of below average
investment returns is not a cause for alarm. The TMRS plan is designed to provide benefits for
employees and retirees over decades, and as such, a long-term view of investment performance
assumptions is the proper way to evaluate the health of the plan.
Actuarial Information and Funding Progress:
As of December 31, 2017, the City of Denton had an Actuarial Value of Assets (AVA) of$389.9
million and a Total Actuarial Accrued Liability(AAL)of$467.8 million for the TMRS plan. This
equates to an Unfunded Actuarial Accrued Liability(UAAL) of$77.9 million and a funded ratio
of 83.3%, compared to 81.1% in 2015 and 82.1% in 2016. The UAAL is being amortized over a
period of 17 years in our existing contribution rate,so assuming all assumptions are met,the TMRS
plan for Denton will be 100% funded by 2034. However, if investment returns or other economic
assumptions are not realized,the fund will amortize these actuarial differences over a longer period
of time, and the full funding of the plan may be extended.
Note: These figures are provided on an actuarial basis and will be different from the funding levels
identified in the CAFR which are prepared on an accounting basis.
Page 12
Date: July 27,2018 Report No. 2018-096
DFRRF Overview:
The Denton Firemen's Relief and Retirement Fund(DFRRF)covers firefighters in the Denton Fire
Department, and the Board of Trustees is the administrator of pension plan. The plan provides
service, death, and disability benefits to members, and these benefits fully vest after 20 years of
service. The normal service retirement benefit is equal to 2.59%of the highest 36-month average
salary for each year of service under the plan.
As of December 31, 2015, the most recent biennial valuation, the plan served 176 active
firefighters and 84 retirees or beneficiaries. Additionally, 2 inactive employees are entitled to
benefits, but they are currently not yet receiving them. Specific information for the City of
Denton's DFRRF is provided in the attached excerpt from the City's Comprehensive Annual
Financial Report(CAFR).
As we have discussed with Council in the past, the TMRS plan experienced actuarial issues in
2008, and as a result, the City increased its contribution rate to the plan over time. There was,
however, no increase in benefits provided in the plan. Instead, the increase in contributions was
intended to reduce liabilities and improve the overall financial health of the plan. Due to the
increases in the TMRS contribution rate, the Firefighters Association requested that the same
contribution rate given to TMRS be provided to the DFRRF. In 2010, the City agreed to this
arrangement.
While this funding methodology worked well over the past few years, this arrangement needed to
be modified due to changing demographics and the current investment climate. The primary
reason for this change is that the City's TMRS contribution is declining as a percentage of payroll
due to growth in the municipal workforce. Additionally, the DFRRF needs a contribution from
the City which is decoupled and independent of TMRS.
To address this, the City, the Firefighters Association, and the DFRRF entered into an agreement
in 2017 to revise the funding formula and require that the City Council formally approve the
actuarial study every two years among other items. The actuarial study is currently in the process
of being completed,and staff anticipates that this will be presented to the Council for consideration
this fall.
Additionally, staff has been working to address turnover and retention issues with our public safety
dispatch employees. Currently,these employees are required to participate in the DFRRF,but due
to the vesting requirements, relatively high employee contribution rate, and lack of portability
between different cities, this can create challenges to attract and retain employees. As a result,
staff has been working with the Fire Association and DFRRF Board to consider a potential
agreement which would allow dispatch employees to choose between being a member of the
DFRRF or TMRS plan. The actuarial impact of these changes is currently being studied, and we
plan to present this information to the Council in either August or September once the results are
known. For planning purposes,we have included an additional$200,000 in the proposed FY 2018-
19 budget should such a decision be made by the City Council to allow these benefit revisions.
Page 13
Date: July 27,2018 Report No. 2018-096
Investment Performance
The annual investment return assumption is 6.75% of plan assets. Like TMRS, the actuarial
valuation process utilizes asset smoothing techniques to "smooth out" the natural year-to-year
fluctuations that are inherent in the investment markets. Below is a 17 year history of the DFRRF
investment rate of returns achieved compared to the stated goal of 6.75% (shown as a red line in
the below graph). Over this period, DFRRF has achieved an average investment return equivalent
to 6.16% (arithmetic average).
DFRRF Investment Rate of Returns
Net of Fees
20%
15%
10% -
5%
0%
-5%
-10%
-15%
2017
While the plan has trailed its investment return assumption, the DFRRF Board of Trustees, and
their actuarial consultants, believe they will be able to achieve an average 6.75%return over time.
However,there is no guarantee that the DFRRF will be able to achieve these rates in the future. If
they are not able to do so, the plan will need to alter the level of benefits or request a higher
contribution rate from its members or the City. Similar to the TMRS plan, it is also important to
note that any one year, or even a series of years,of below average investment returns is not a cause
for alarm. The DFRRF is designed to provide benefits for employees and retirees over decades,
and as such,a long-term view of investment performance assumptions is the proper way to evaluate
the health of the plan.
Actuarial Information and Funding Progress
As of December 31,2015,the most recent actuarial valuation,the City of Denton had an Actuarial
Value of Assets (AVA) of$72.7 million and a Total Actuarial Accrued Liability(AAL) of$89.9
million for the DFRRF plan. This equates to an Unfunded Actuarial Accrued Liability (UAAL)
of$17.2 million and a funded ratio of 80.8%, compared to 77.1% in 2013. The UAAL is being
amortized over a period of 31 years in our existing contribution rate, so assuming all assumptions
are met,the DFRRF plan for Denton will be 100%funded by 2046. However,if investment returns
or other economic assumptions are not realized, the fund will amortize these actuarial differences
over a longer period of time, and the full funding of the plan may be extended. As stated
previously, the 2017 actuarial valuation is in process, and we expect to be able to present updated
Page 14
Date: July 27,2018 Report No. 2018-096
figures to the Council with the impact of the above mentioned contribution change in the fall of
2018.
Note: These figures are provided on an actuarial basis and will be different from the funding levels
identified in the CAFR which are prepared on an accounting basis.
CONCLUSION:
While public pensions continue to receive a great deal of media scrutiny,most public pension plans
in Texas continue to be appropriately funded. In Denton's case,both the TMRS and DFRRF plans
are well funded and managed responsibly. Going forward, the funding ratios for these plans are
expected to improve, and a financially sustainable funding mechanism is in place.
As mentioned previously, the purpose of this report is to provide the City Council with additional
information regarding the funding status of the TMRS and DFRRF pension plans. Since this report
only provides an overview of the pension plans, please let me know if you would like any
additional information.
EXHIBITS:
Exhibit 1: Excerpt from 2017 Comprehensive Annual Financial Report(CAFR)
STAFF CONTACT:
Bryan Langley, Deputy City Manager
(940) 349-8224
bryan.langley(cri cityofdenton.com
Page 15
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
The solid waste fund has provided for a reservation and designation of cash and investments of$8,654,114
at September 30,2017,and anticipates increasing the reserve in future periods as the closure and post-closure
activities are carried out.
V. OTHER INFORMATION
A. Pension plans
Texas Municipal Retirement Plan
Plan description
The City of Denton participates as one of 872 plans in the nontraditional,joint contributory, hybrid defined
benefit pension plan administered by the Texas Municipal Retirement System(TMRS). TMRS is an agency
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code(the TMRS Act)as an agent multiple-employer retirement system for municipal employees
in the State of Texas. The TMRS Act places the general administration and management of the System with
a six-member board of Trustees. Although the Governor,with the advice and consent of the Senate,appoints
the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a
tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly-available
comprehensive annual financial report(CAFR) obtainable at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
Benefits provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the City,within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the
city-financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven payments options. Members may also choose to receive a
portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly
payments,which cannot exceed 75%of the member's deposits and interest.
Upon retirement, benefits depend on the sum of the employee's contributions, with interest, and the city-
financed monetary credits,with interest. City-financed monetary credits are composed of three sources:prior
service credits, current service credits, and updated service credits. Prior service credit, granted by each city
joining TMRS, is a monetary credit equal to the accumulated value of the percentage of prior service credit
adopted times and employee's deposits that would have been made, based on the average salary prior to
participation, for the number of months the employee has been employed, accruing 3% annual interest, and
including the matching ratio adopted by the City.Monetary credits for service since the plan began(or current
service credits)are a percent(200%)of the employee's accumulated contributions.In addition,the City grants
on an annually repeating basis, another type of monetary credit referred to as an updated service credit. This
monetary credit is determined by hypothetically recomputing the member's account balance by assuming the
current member deposit rate of the City (7%) has always been in effect. The computation also assumes the
member's salary has always been the member's average salary—using a salary calculation based on the 36-
month period ending a year before the effective date of calculation. This hypothetical account balance is
increased by 3% each year, and increased by the city match currently in effect(200%). The resulting sum is
then compared to the member's actual account balance increased by the actual city match and actual interest
credited. If the hypothetical calculation exceeds the actual calculation, the member is granted a monetary
credit(or Updated Service Credit)equal to the difference between the hypothetical calculation and the actual
calculation times the percentage adopted. The plan provisions also include an annually repeating basis cost
of living adjustments for retires equal to 70%of the change in the consumer price index.
Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service regardless
of age.A member is vested after five years.
58
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
Employees covered by benefit terms
At the December 31, 2016 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits 520
Inactive employees entitled to but not yet receiving benefits 478
Active employees 1,245
Total 2,243
Contributions
The contribution rates for employees in TMRS are either 5%,6%,or 7%of employee gross earnings,and the
city matching percentages are either 100%, 150%, or 200%,both as adopted by the City Council. Under the
state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using
the Entry Age Normal(EAN)actuarial cost method. The actuarially determined rate is the estimated amount
necessary to finance the cost of benefits earned by employees during the year,with an additional amount to
finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 17.23% and 17.30% in calendar years 2016 and 2017, respectively.
The City's contributions to TMRS for the year ended September 30, 2017 were $14,648,606 and were equal
to the required contributions.
Net pension liability
The City's Net Pension Liability (NPL) was measured as of December 31, 2016, and the Total Pension
Liability(TPL)used to calculate the Net Pension Liability was determined by an actuarial valuation as of that
date.
Actuarial assumptions
The Total Pension Liability in the December 31,2016 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5%per year
Overall payroll growth 3.0%per year
Investment Rate of Return 6.75%,net of pension plan investment expense, including inflation
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar
Adjustment,with male rates multiplied by 109%and female rates multiplied by 103%.The rates are projected
on a fully generational basis by scale BB to account for future mortality improvements. For disabled
annuitants,the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are
used with male rates multiplied by 109%and female rates multiplied by 103%with a 3-year set-forward for
both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for
younger members who become disabled. The rates are projected on a fully generational basis by scale BB to
account for future mortality improvements subject to the 3%floor.
Actuarial assumptions used in the December 31, 2016, valuation were based on the results of actuarial
experience studies.The experience study in TMRS was for the period December 31,2010 through December
31, 2014. Healthy post-retirement mortality rates and annuity purchase rates were updated based on a
Mortality Experience Investigation Study covering 2009 through 2011,and dated December 31,2013.These
assumptions were first used in the December 31,2013 valuation,along with a change to the Entry Age Normal
59
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
(EAN) actuarial cost method. Assumptions are reviewed annually.No additional changes were made for the
2014 valuation. After the Asset Allocation Study analysis and experience investigation study, the Board
amended the long-term expected rate of return on pension plan investments from 7% to 6.75%. Plan assets
are managed on a total return basis with an emphasis on both capital appreciation as well as the production
of income, in order to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimate ranges of expected future real rates of return(expected returns,net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. In determining their best estimate of a
recommended investment return assumption under the various alternative asset allocation portfolios,TMRS's
actuary focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time
(conservative)and(2)the geometric mean(conservative)with an adjustment for time(aggressive).The target
allocation and best estimates of real rates of return for each major asset class in fiscal year 2017 are
summarized in the following table:
Long-Term
Expected Real
Target Rate of Return
Asset Class Allocation (Arithmetic)
Domestic Equity 17.5% 4.55%
International Equity 17.5% 6.35%
Core Fixed Income 10.0% 1.00%
Non-Core Fixed Income 20.0% 4.15%
Real Return 10.0% 4.15%
Real Estate 10.0% 4.75%
Absolute Return 10.0% 4.00%
Private Equity 5.0% 7.75%
Total 100.0%
Discount rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the rates
specified in statute. Based on that assumption,the pension plan's Fiduciary Net Position was projected to be
available to make all projected future benefit payments of current active and inactive employees. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
60
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
Changes in the net pension liability
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at 12/31/2015 $409,277,260 $324,618,549 $ 84,658,711
Changes for the year:
Service cost 13,925,238 - 13,925,238
Interest 27,656,654 - 27,656,654
Difference between expected
and actual experience 763,589 - 763,589
Contributions - employer - 14,046,860 (14,046,860)
Contributions - employee - 5,712,464 (5,712,464)
Net investment income - 21,947,635 (21,947,635)
Benefit payments,including refunds
of employee contributions (13,023,330) (13,023,330) -
Administrative expense - (247,766) 247,766
Other changes - (13,349) 13,349
Net changes 29,322,151 28,422,514 899,637
Balance at 12/31/2016 $438,599,411 $353,041,063 $ 85,558,348
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower(5.75%)or I-percentage-point higher(7.75%)than the current rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.75%) (6.75%) (7.75%)
City's net pension liability $ 151,647,722 $ 85,558,348 $ 31,623,977
Pension plan fiduciary net position
Detailed information about the pension plan's Fiduciary Net Position is available in a separately-issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
Pension expense and deferred outflows of resources and deferred inflows of resources related to
pensions
For the year ended September 30, 2017, the City recognized pension expense of$19,051,014. This amount
is included as part of personal services expenses.
61
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
At September 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources
related to TMRS pension from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between projected and
actual investment earnings $ 14,589,173 $ (28,706)
Contributions subsequent to the
measurement date 11,269,409 -
Differences between expected and
actual economic experience 613,276 (984,869)
Difference in assumption changes - (256,929)
Total $ 26,471,858 $ (1,270,504)
$11,269,409 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the City's
fiscal year ending September 30,2017.Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
Measurement
Year Ended
December 31st
2017 $ 4,832,223
2018 4,832,224
2019 4,112,336
2020 143,138
2021 12,024
Total $13,931,945
Supplemental death benefit fund
The City of Denton also participates in the cost-sharing multiple-employer defined benefit group-term life
insurance plan known as the Supplemental Death Benefits Fund(SDBF).This is a separate trust administered
by the TMRS Board of Trustees and is a voluntary program in which the City elected,by ordinance,to provide
group term life insurance coverage to active and retired members. The City may terminate coverage under
and discontinue participation in the SDBF by adopting an ordinance before November 1 st of any year to be
effective the following January 1st
Payments from this fund are similar to group term life insurance benefits, and are paid to the designated
beneficiaries upon the receipt of an approved application for payment.The death benefit for active employees
provides a lump-sum payment approximately equal to the employee's annual salary(calculated based on the
employee's actual earnings, for the 12-month period preceding the month of death). The death benefit for
retirees is considered an "other postemployment benefit" (OPEB) and is a fixed amount of $7,500. The
obligations of this plan are payable only from the SDBF and are not an obligation of, or claim against, the
TMRS Pension Trust Fund.
Contributions are made monthly based on the covered payroll of employee members of the City. The
contractually required contribution rate is determined by an annual actuarial valuation and is based on the
mortality and service experience of all employees covered by the SDBF and the demographics specific to the
workforce of the City. There is a one-year delay between the actuarial valuation that serves as the basis for
the employer contribution rate and the calendar year when the rate goes into effect. The contributions to the
62
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
SDBF are pooled for investment purposes with those of the Pension Trust Fund described above. The TMRS
Act requires the Pension Trust Fund to allocate investment income to the SDBF on an annual basis. The
funding policy of the plan is to assure adequate resources are available to meet all death benefit payments for
the upcoming year; the intent is not to prefund retiree term life insurance during employees' entire careers.
As such, contributions are utilized to fund active member deaths on a pay-as-you-go basis; any excess
contributions and investment income over payments then become net position available for OPEB.
The City's contributions to the TMRS SDBF for the fiscal years ended September 30,2015,2016,and 2017,
were $133,686, $149,630, and$152,556,respectively,which equaled the required contributions each year.
Denton Firemen's Relief and Retirement Plan
Plan description
The City contributes to the retirement plan for firefighters in the Denton Fire Department known as the
Denton Firemen's Relief and Retirement Fund (the Fund). The Fund is a single employer, contributory,
defined benefit plan. The benefit provisions of the Fund are authorized by the Texas Local Fire Fighters'
Retirement Act(TLFFRA). TLFFRA provides the authority and procedure to amend benefit provisions. The
plan is administered by the Board of Trustees of the Denton Firemen's Relief and Retirement Fund. The City
does not have access to nor can it utilize assets within the retirement plan trust.The Fund issues a stand-alone
report pursuant to GASB Statement No. 67,which may be obtained by writing the Denton Firemen's Relief
and Retirement Fund at P.O. Box 2375, Denton, Texas 76202. See that report for all information about the
plan fiduciary net position.
Benefits provided
Firefighters in the Denton Fire Department are covered by the Denton Firemen's Relief and Retirement Fund
which provides service retirement, death, disability, and withdrawal benefits. These benefits fully vest after
20 years of credited service. Firefighters may retire at age 50 with 20 years of service. A partially-vested
benefit is provided for firefighters who terminate employment with at least 10 but less than 20 years of
service. If a terminated firefighter has a partially vested benefit,the firefighter may retire starting on the date
they would have both completed 20 years of service if they had remained a Denton firefighter and attained
age 50. As of the December 31, 2015 actuarial valuation date, the plan effective January 1, 2011 provides a
monthly normal service retirement benefit, payable in a Joint and Two-Thirds to Spouse form of annuity,
equal to 2.59%of Highest 36-Month Average Salary for each year of service.
A retiring firefighter who is at least age 52 with at least 22 years of service has the option to elect the
Retroactive Deferred Retirement Option Plan(RETRO DROP)which will provide a lump sum benefit and a
reduced monthly benefit.The reduced monthly benefit is based on the service and Highest 36-Month Average
Salary as if the firefighter had terminated employment on their selected RETRO DROP benefit calculation
date, which is no earlier than the later of the date the firefighter meets the age 52 and 22 years of service
requirements and the date four years prior to the date the firefighter actually retires. Upon retirement, the
member will receive, in addition to the monthly retirement benefit, a lump sum equal to the sum of(1) the
amount of monthly contributions the member has made to the Fund after the RETRO DROP benefit
calculation date plus(2)the total of the monthly retirement benefits the member would have received between
the RETRO DROP benefit calculation date and the date retired under the plan.There are no account balances.
The lump sum is calculated at the time of retirement and distributed as soon as administratively possible.
There is no provision for automatic postretirement benefit increases. The Fund has the authority to provide,
and has periodically in the past provided, ad hoc postretirement benefit increases.
63
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
Employees covered by benefit terms
In the December 31,2015 actuarial valuation,the following numbers of members were covered by the Fund:
Inactive employees or beneficiaries currently receiving benefits 84
Inactive employees entitled to but not yet receiving benefits 2
Active employees 176
Total 262
Contributions
The contribution provisions of the Fund are authorized by TLFFRA. TLFFRA provides the authority and
procedure to change the amount of contributions determined as a percentage of pay by each firefighter and a
percentage of payroll by the City.
The funding policy of the Denton Firemen's Relief and Retirement Fund requires contributions equal to
12.6%of pay by the firefighters,the rate elected by the firefighters according to TLFFRA.The City currently
contributes according to a City ordinance the same percentage of payroll the City contributes to the Texas
Municipal Retirement System for other employees each calendar year.The City contribution rate was 17.41%
in calendar year 2016 and 17.48%in calendar year 2017 until mid-December when the rate changed to 18.5%.
The December 31,2015 actuarial valuation includes the assumption that the city contribution rate will average
15.5%over the UAAL amortization period.The costs of administering the plan are paid from the Fund assets.
The City's contributions to the Fund for the year ended September 30,2017 were$2,814,029.
Ultimately,the funding policy also depends upon the total return of the Fund's assets,which varies from year
to year.Investment policy decisions are established and maintained by the board of trustees.The board selects
investments and employs investment managers with the advice of their investment consultant who is
completely independent of the investment managers. For the calendar year ending December 31, 2016, the
money-weighted rate of return on pension plan investments was 10.17%.This measurement of the investment
performance is net of investment-related expenses, reflecting the effect of the timing of the contributions
received and the benefits paid during the year.
While the contribution requirements are not actuarially determined, state law requires that each change in
plan benefits adopted by the Fund must first be approved by an eligible actuary, certifying the contribution
commitment by the firefighters and the assumed city contribution rate together provide an adequate
contribution arrangement.Using the entry age actuarial cost method,the plan's normal cost contribution rate
is determined as a percentage of payroll. The excess of the total contribution rate over the normal cost
contribution rate is used to amortize the plan's unfunded actuarial accrued liability(UAAL). The number of
years needed to amortize the plan's UAAL is actuarially determined using an open,level percentage of payroll
method.
Net pension liability
The City of Denton's net pension liability was measured as of December 31, 2016, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of December
31,2015 and rolled forward to December 31, 2016.
Actuarial assumptions
The total pension liability in the December 31, 2015 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50%per year
Overall payroll growth 3.00%per year,plus promotion, step and longevity increases that vary by
service
Investment Rate of Return 6.75%,net of pension plan investment expense, including inflation
64
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
Mortality rates were based on the RP-2000 Combined Healthy Mortality Tables for males and for females
(sex distinct)projected to 2024 by scale AA.
The long-term expected rate of return on pension plan investments is reviewed for each biennial actuarial
valuation and was determined using a building-block method in which expected future net real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each major asset
class. These components are combined to produce the long-term expected rate of return by weighting the
expected future net real rates of return by the target asset allocation percentage(currently resulting in 5.00%)
and by adding expected inflation(2.50%). In addition,the final 6.75%assumption was selected by"rounding
down" and thereby reflects a reduction of 0.75% for adverse deviation. The target allocation and expected
arithmetic net real rates of return for each major asset class are summarized in the following table:
Long-Term
Expected Real
Target Rate of Return
Asset Class Allocation (Arithmetic)
Equities
Large Cap Domestic 40.0% 5.90%
SmaWMid Cap Domestic 10.0% 6.40%
International Developed 10.0% 6.40%
Alternatives
Master Limited Partnerships 8.0% 7.90%
Real Estate 15.0% 4.40%
Fixed Income 10.0% 0.90%
Cash 7.0% 0.00%
Total 100.0%
Discount rate
The discount rate used to measure the total pension liability was 6.75%.No projection of cash flows was
used to determine the discount rate because the December 31,2015 actuarial valuation showed expected
contributions would pay the normal cost and amortize the unfunded actuarial accrued liability(UAAL)
in 32 years. Because of the 32-year amortization period of the UAAL, the pension plan's fiduciary net
position is expected to be available to make all projected future benefit payments of current active and
inactive members.Therefore,the long-term expected rate of return on pension plan investments of 6.75%
was applied to all periods of projected benefit payments as the discount rate to determine the total pension
liability.
65
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
Changes in the net pension liability
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at 12/31/2015 $ 89,942,685 $ 67,976,717 $ 21,965,968
Changes for the year:
Service cost 3,089,911 - 3,089,911
Interest 6,135,588 - 6,135,588
Contributions - employer - 2,759,844 (2,759,844)
Contributions - employee - 1,997,155 (1,997,155)
Net investment income - 6,935,215 (6,935,215)
Benefit payments,including refunds
of employee contributions (4,270,006) (4,270,006) -
Administrative expense - (94,175) 94,175
Other changes - - -
Net changes 4,955,493 7,328,033 (2,372,540)
Balance at 12/31/2016 $ 94,898,178 $ 75,304,750 $ 19,593,428
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability of the City of Denton, calculated using the discount rate
of 6.75%, as well as what the city's net pension liability would be if it were calculated using a discount
rate that is 1-percentage-point lower(5.75%)or 1-percentage-point higher(7.75%)than the current rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.75%) (6.75%) (7.75%)
City's net pension liability $ 31,679,502 $ 19,593,428 $ 9,414,393
Pension plan fiduciary net position
The plan fiduciary net position reported above is the same as reported by the Fund. Detailed information
about the plan fiduciary net position is available in the Fund's separately issued audited financial statements,
which are reported using the economic resources measurement focus and the accrual basis of accounting in
conformity with accounting principles generally accepted in the United States of America. Revenues are
recorded when earned, and expenses are recorded when a liability is incurred,regardless of the timing of the
related cash flows. Investments are reported at fair value, the price that would be recognized to sell an asset
in an orderly transaction between market participants at the measurement date.
Pension expense and deferred outflows of resources and deferred inflows of resources related to
pensions
For the year ended September 30, 2017, the City recognized pension expense of $3,983,918. Amounts
recognized in the fiscal year represent changes between the current and prior year measurement dates. This
amount is included as part of personnel services expenses.
66
CITY OF DENTON,TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30,2017
At September 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources
related to the Fund from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between projected and
actual investment earnings $ 5,058,092 $ (1,866,823)
Contributions subsequent to the
measurement date 2,152,993 -
Differences between expected and
actual economic experience - (1,641,453)
Difference in assumption changes 1,855,036 -
Total $ 9,066,121 $ (3,508,276)
Deferred outflows of resources related to pensions resulting from contributions subsequent to the
measurement date of $2,152,993 will be recognized as a reduction of the net pension liability for the
measurement year ending December 31, 2017 and the City's fiscal year ending September 30, 2018. Other
amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in
pension expense as follows:
Measurement
Year Ended
December 31st
2017 $ 1,263,085
2018 1,263,085
2019 1,214,160
2020 (439,253)
2021 27,452
Thereafter 76,323
Total $ 3,404,852
B. Post-employment benefits other than pensions (OPEB)
The cost of post-employment healthcare benefits, from an accrual accounting perspective, similar to the cost
of pension benefits, should be associated with the periods in which the cost occurs, rather than in the future
year when it will be paid.According to the requirements of GASB Statement No.45 for the fiscal year ended
September 30, 2017, the City recognizes the cost of post-employment healthcare in the year the employee
services are received, reports the accumulated liability from prior years, and provides information useful in
assessing potential demands on the City's future cash flows. Recognition of the liability accumulated from
prior years will be amortized over 30 years,the first period commencing with the fiscal year ending September
30,2008.
Plan description
The City provides post-employment medical care (OPEB) for retired employees through a single-employer
defined benefit medical plan. The plan provides medical benefits for eligible retirees, their spouses and
dependents though the City's group health insurance plans, which covers both active and retired members.
The benefits, benefit levels, and contribution rates are recommended annually by the City management as
part of the budget process.Any changes in rate subsidies for retirees are approved by the City Council. Since
67
CITY OF DENTON,TEXAS Exhibit XII
REQUIRED SUPPLEMENTARY INFORMATION
TEXAS MUNICIPAL RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
LAST THREE FISCAL YEARS(PREVIOUS YEARS ARE NOT AVAILABLE)'
Measurement Measurement Measurement
Year Year Year
2014 2015 2016
Total pension liability:
Service Cost $ 10,667,694 $ 12,615,957 $ 13,925,238
Interest(on the total pension liability) 25,182,941 26,905,700 27,656,654
Difference between expected and actual experience (171,241) (1,525,911) 763,589
Change of assumptions - (428,789) -
Benefit payments,including refunds of employee contributions (11,387,617) (12,697,735) (13,023,330)
Net change in total pension liability 24,291,777 24,869,222 29,322,151
Total pension liability-beginning 360,116,261 384,408,038 409,277,260
Total pension liability-ending(a) $ 384,408,038 $ 409,277,260 $ 438,599,411
Plan fiduciary net position:
Contributions-employer $ 13,065,763 $ 13,615,410 $ 14,046,860
Contributions-employee 4,991,415 5,365,231 5,712,464
Net investment income 16,867,596 469,530 21,947,635
Benefit payments,including refunds of employee contributions (11,387,617) (12,697,735) (13,023,330)
Administrative expense (176,083) (285,957) (247,766)
Other (14,477) (14,123) (13,349)
Net change in plan fiduciary net position 23,346,597 6,452,356 28,422,514
Plan fiduciary net position-beginning 294,819,596 318,166,193 324,618,549
Plan fiduciary net position-ending(b) $ 318,166,193 $ 324,618,549 $ 353,041,063
Net pension liability-ending(a)-(b) $ 66,241,845 $ 84,658,711 S 85,558,348
Plan fiduciary net position as a percentage of total pension liability 82.77% 79.32% 80.49%
Covered employee payroll $ 71,025,494 $ 76,646,157 $ 81,481,789
Net pension liability as a percentage of covered employee payroll 93.26% 110.45% 105.00%
'Schedule is intended to present information for ten years.Additional years of information will be presented
as they become available.
79
CITY OF DENTON,TEXAS Exhibit XIII
REQUIRED SUPPLEMENTARY INFORMATION
DENTON FIREMEN'S RELIEF AND RETIREMENT FUND
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
LAST THREE FISCAL YEARS(PREVIOUS YEARS ARE NOT AVAILABLE)'
Measurement Measurement Measurement
Year Year Year
2014 2015 2016
Total pension liability:
Service Cost $ 2,747,253 $ 2,836,263 $ 3,089,911
Interest(on the total pension liability) 5,685,396 5,998,959 6,135,588
Difference between expected and actual experience - (2,063,421) -
Change of assumptions - 2,331,908 -
Benefit payments,including refunds of employee contributions (4,036,009) (4,048,358) (4,270,006)
Net change in total pension liability 4,396,640 5,055,351 4,955,493
Total pension liability-beginning 80,490,694 84,887,334 89,942,685
Total pension liability-ending(a) $ 84,887,334 $ 89,942,685 $ 94,898,178
Plan fiduciary net position:
Contributions-employer $ 2,566,875 $ 2,567,219 $ 2,759,844
Contributions-employee 1,745,419 1,803,064 1,997,155
Net investment income 4,411,066 (3,287,188) 6,935,215
Benefit payments,including refunds of employee contributions (4,036,009) (4,048,358) (4,270,006)
Administrative expense (81,005) (76,538) (94,175)
Net change in plan fiduciary net position 4,606,346 (3,041,801) 7,328,033
Plan fiduciary net position-beginning 66,412,172 71,018,518 67,976,717
Plan fiduciary net position-ending(b) $ 71,018,518 $ 67,976,717 $ 75,304,750
Net pension liability-ending(a)-(b) $ 13,868,816 $ 21,965,968 $ 19,593,428
Plan fiduciary net position as a percentage of total pension liability 83.66% 75.58% 79.35%
Covered employee payroll $ 14,238,486 $ 14,310,032 $ 15,850,437
Net pension liability as a percentage of covered employee payroll 97.40% 153.50% 123.61%
'Schedule is intended to present information for ten years.Additional years of information will be presented
as they become available.
80
CITY OF DENTON,TEXAS Exhibit XIV
REQUIRED SUPPLEMENTARY INFORMATION
TEXAS MUNICIPAL RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS(Unaudited)
(a) (b) (c) (d)
Contributions
Contributions as a Percentage
in Relation to Contribution of Covered
Actuarially the Actuarially Excess Covered Employee
Fiscal Determined Determined (Deficiency) Employee Payroll
Year Contributions Contributions (b)-(a) Payroll (b)/(d)
2008 $ 7,082,769 $ 7,082,769 $ - $ 53,908,360 13.14%
2009 9,709,279 7,952,938 (1,756,341) 57,250,108 13.89%
2010 11,194,086 8,849,577 (2,344,509) 59,457,345 14.88%
2011 11,580,085 9,579,358 (2,000,727) 58,139,688 16.48%
2012 11,475,702 10,435,001 (1,040,701) 60,340,212 17.29%
2013 12,174,640 12,171,482 (3,158) 64,940,234 18.74%
2014 12,912,746 12,911,461 (1,285) 69,872,024 18.48%
2015 13,507,272 13,507,272 - 75,379,632 17.92%
2016 14,435,638 14,435,638 - 83,127,601 17.37%
2017 14,648,606 14,648,606 - 84,753,377 17.28%
Notes to Schedule:
Actuarial determined contribution rates are calculated as of December 31st and become effective in January, 13 months
later.Contributions above do not include contributions into the supplemental death benefit fund.
Methods and assumptions used to determine contribution rate for 2017:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll,Closed
Remaining Amortization Period 29 Years(Equivalent Single Amortization Period of 18.1 years)
Asset Valuation Method 10 Year Smoothed Market; 15%Soft Corridor
Inflation 2.50%
Salary Increases 3.50%to 10.50%including inflation
Investment Rate of Return 6.75%
Retirement Age Experience-based table of rates that are specific to the City's plan of benefits.
Last updated for the 2015 valuation pursuant to an experience study of the
period 2010-2014.
Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates
multiplied by 109%and female rates multiplied by 103%and projected on a fully
generational basis with scale BB.
81
CITY OF DENTON,TEXAS Exhibit XV
REQUIRED SUPPLEMENTARY INFORMATION
FIREMEN'S RELIEF AND RETIREMENT FUND
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS(Unaudited)
(a) (b) (c) (d)
Contributions
Contributions as a Percentage
in Relation to Contribution of Covered
Annual the Annual Excess Covered Employee
Fiscal Required Required (Deficiency) Employee Payroll
Year Contributions Contributions (b)-(a) Payroll (b)/(d)
2008 $ 1,426,906 $ 1,426,906 $ - $ 11,890,880 12.00%
2009 1,747,908 1,747,908 - 12,485,061 14.00%
2010 1,976,419 1,976,419 - 13,070,041 15.12%
2011 2,141,662 2,141,662 - 12,828,446 16.69%
2012 2,253,667 2,253,667 - 12,899,800 17.47%
2013 2,579,453 2,579,453 - 13,629,825 18.93%
2014 2,576,652 2,576,652 - 13,828,070 18.63%
2015 2,535,719 2,535,719 - 14,029,051 18.07%
2016 2,819,046 2,819,046 - 15,540,826 18.14%
2017 2,814,029 2,814,029 - 16,113,770 17.46%
Notes to Schedule:
Annual required contributions are not actuarially determined.According to a City ordinance,since January 2010 the City
contributes to the Firemen's Relief and Retirement Fund at the same percentage of payroll that the City contributes to the
Texas Municipal Retirement System for other employees.The rates are calculated as of December 31st and become effective in
January,13 months later.
While the contribution requirements are not actuarially determined,state law requires an actuary certify the assumed City
contribution rate is adequate.Methods and assumptions used to contribution adequacy for 2017:
Actuarial Cost Method Entry Age
Amortization Method Level Percentage of Payroll,Open
Remaining Amortization Period 31 Years
Asset Valuation Method 5-year smoothing
Inflation 2.50%
Salary Increases 3.00%annual general compensation increase plus promotion,step,and longevity
increases which average 1.98%per year over a 30-year career
Investment Rate of Return 6.75%,net of pension plan investment expense,including inflation
Retirement Age Average expected age at retirement of 57
Mortality RP-2000 Combined Healthy Mortality Tables projected to 2024 by scale AA
82
Date: July 27, 2018 Report No. 201 8-097
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Right-of-way(ROW) mowing and maintenance conducted by the Parks and Recreation
Department(PARD) and Community Improvement Services (CIS)
BACKGROUND:
During the July 17th Council Meeting, PARD was asked to provide a summary of the ROW
maintenance managed by the department compared to the ROW maintenance performed by CIS.
DISCUSSION:
PARD's Park Maintenance division manages the maintenance of approximately 287 acres of ROW
and 60 acres of medians. The properties include city streets such as Bonnie Brae and Vintage,
farm—to-market (FM) roads including FM 2153 and FM 428, and state roadways like east Hwy
380 and Hwy 77. ROW's along roads boarding the city limits are also maintained by PARD such
as Jim Christal, Masch Branch, and Cowling. Maintenance includes mowing and roadside trash
pick-up and is performed by a combination of PARD staff and contracted service providers.PARD
currently allocates$89,740 annually for ROW mowing and maintenance performed by contractors.
A supplemental request was submitted for FY 18-19 to increase the contract amount allocated for
ROW. The request proposes sections of ROW located along the borders of the city limits currently
mowed by PARD staff be transferred to the mowing contract inventory. This would allow PARD
to re-allocate staff and resources to the core of the city.
CIS is also tasked with maintaining approximately 240 acres of ROW property under the Enhanced
ROW Maintenance Program. The program was initiated by the City's Leadership Excellence
Enhancement Program (LEEP) in 2014. The purpose was to promote economic development by
creating a positive first impression of our community through the maintenance and beautification
of highly visible ROW's along entryways and thoroughfares throughout the City. Mowing and
roadside trash pick-up was proposed to be done by contracted services. CIS was identified as the
appropriate department to manage the program as it aligned with their property maintenance
mission. The program was first funded in FY 14-15 and covered eight roadways: Teasley Lane,
McKinney Street,University Drive, Country Club Road,Hickory Creek Road, Locust Street, Elm
Street, Mingo Road. Funding was increased the following year to expand the program. Today, the
program continues to focus on major entryways and properties with high visibility.
PARD and CIS work closely together to ensure there are no duplications of resources. As new
property is added to the maintenance inventory, the departments consult with each other to
coordinate activities.PARD and CIS will be performing a more comprehensive analysis to identify
and explore opportunities for additional efficiencies.
STAFF CONTACT:
Laura Behrens, Assistant Director of Parks and Recreation
Laura.Behrens@cityofdenton.com
Revision Date
07/27/2018
Council Requests for Information
Request Request Date Staff Responsible Status
1. TWU master plan and how trees are impacted; can 5/1/18 McDonald TWU will give a brief presentation
trees be saved and protected; next steps. on their Master Plan during the
August 21 work session.
2. Work session on proposed permitting processes for 5/15/18 McDonald A work session is scheduled for
businesses under the new DDC. Benchmark against August 28.
other similar cities such as Carrollton or McKinney.
3. Work session on Council appointed ad hoc 5/22/18 Leal/Wood A work session is scheduled for
committees and adherence to TOMA. August 7.
4. Work session focused on downtown development to 6/4/18 Booth/Puente/McDonald A work session is planned for August
include an update on downtown master plan, a 21.
complementary master plan for PEC 4 area, and an
overview of current uses and potential expansion of
the Downtown Reinvestment Grant Fund.
5. Work session on the status of Quiet Zone 6/12/18 Deshmukh/Nelson ISR was included in the June 15
establishment. Friday report. A work session is
scheduled for August 28.
6. Present information gas well setback requirements 6/19/18 Banks/Leal/ A work session is scheduled for
including a history of setbacks in Denton and setback McDonald August 6.
requirements in other cities.
7. ISR on the San Antonio legal services model, 6/26/18 Leal/Wood ISR will be provided in an August
including the feasibility of partnering with non-profit Friday report.
agencies to provide information on renter rights,
immigration services, and veteran services.
8. Work session on ways to improve the City's 6/26/18 Kuechler Information will be provided during
Municipal Equality Index score, including an update the August 14 work session.
to the City's antidiscrimination policy.
9. Work session on implementing a similar program to 6/26/18 McDonald/Birdseye ISR will be provided on August 3,
Southlake's SPIN program in Denton. followed by a work session in
September.
10. Schedule group TOMA training for the full City 6/26/18 Leal Staff is researching facilitators with a
Council using an outside facilitator. goal of scheduling the training in
September.
Request Request Date Staff Responsible Status
11. Work session on permitting options to incentivize 6/26/18 McDonald/Wood A work session is scheduled for
affordable housing including a survey of practices August 28.
from other municipalities.
12. Information regarding the use of project names used 6/26/18 Booth A work session is planned for
in conjunction with economic development projects. September 25.
13. Work session providing an overview of the City's 6/26/18 Rosendahl/Kuechler Information will be provided during a
Smoking Ordinance. work session in October or
November.
14. Overview of the emissions permitting process, 6/26/18 Morrow/Banks ISR will be provided in an August
including the number of hours the DEC can operate Friday report.
and the methodology used to determine those limits.
15. Information on factors impacting air quality in Denton 6/26/18 Morrow/Banks ISR will be provided in an August
including a comparison of DEC emissions to other Friday report.
sources in the DFW area.
16. Work session on ways to use density incentives to 7/17/18 McDonald/Cannone Information was provided in the July
promote public policy goals. 20 Friday report. Additional
information will be provided during
the August 28 work session.
17. Develop a strategic plan for homeless shelters in 7/17/18 Kuechler Staff is developing a working group
Denton(current environment, capacity, need, with other organizations for shelter
emergency circumstances, best practices, family and transitional housing. Council
shelter options). updates will be provided once the
working group convenes.
18. Information on the potential establishment of a citizen 7/17/18 Canizares/Wood Staff is currently researching. ISR
advisory committee on disabilities. will be provided in a future Friday
report.
19. Revise the Council Rules of Procedure to amend the 7/17/18 Leal/Wood A work session is scheduled for
tie-vote provision as it impacts the Planning & Zoning August 7.
Commission.
20. Comprehensive review and possible revisions to the 7/17/18 Leal/Wood Information will be provided during a
Council Rules of Procedure. work session in September.
21. Information on zoning options to protect farm land. 7/17/18 Cannone/McDonald Information will be included in the
August 3 Friday report.
Request Request Date Staff Responsible Status
22. Overview of Keep Denton Beautiful funding and 7/17/18 Anderson/Barnett Information will be included in an
information on how other cities fund their Keep August Friday report.
America Beautiful local affiliates.
23. ISR on the Parks Gas Well Fund, including an 7/17/18 Packan ISR is included in the July 27 Friday
overview of planned expenditures and the legality of report.
shutting these gas wells down.
24. Overview of the Homestead Exemption process. 7/17/18 Puente/Langley Information will be provided during a
work session in September or
October.
25. Summary of all departments providing right-of-way 7/17/18 Lahart/Packan/Wood Information comparing Parks to CIS
and tree maintenance. right-of-way management is included
in the July 27 Friday report.
Additional information will be
included in the August 3 Friday
report.
26. ISR on potential use of rubble from Solid Waste for 7/24/18 Estes/Cox ISR will be included in an August
the street program. Friday report.
27. Information regarding the trees that are coming down 7/24/18 McDonald/Rogers Information is included in the July 27
behind Foxcroft. Friday report.
28. Work Session on Noise Ordinance enforcement, 7/24/18 McDonald/Smith Information will be provided during a
including consistency of enforcement, technology work session in September or
used by Police and Code Enforcement, and complaint October.
response practices.
29. Work Session on Code Enforcement including 7/24/18 McDonald/Smith Information will be provided during a
overview of purpose, enforcement, and complaint work session in October or
response practices. November.
30. Information on the feasibility of making single stall 7/24/18 Canizares/Kuechler Information will be provided during
restrooms in City facilities gender neutral and a non- the August 14 work session.
monetary incentive for businesses to do the same.
31. Development of a cross-departmental strategy to 7/24/18 McDonald/Banks Information will be provided during a
address tree canopy preservation. work session in September or
October.
32. Work Session on DCTA, including the City's role in 7/24/18 Canizares/Nelson Information will be provided during a
the current agreement and the services received work session in September.
Cityof Denton City Hall
215 E. McKinney St.
Denton,Texas 76201
www.cityofdenton.com
DENTON Meeting Agenda
City Council
Tuesday,August 7,2018 1:00 PM Work Session Room&Council Chambers
After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a
Work Session on Tuesday, August 7, 2018 at 1:00 p.m. in the Council Work Session Room at City Hall, 215
E. McKinney Street,Denton, Texas at which the following items will be considered:
1. Citizen Comments on Consent Agenda Items
This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be
given a total of three (3) minutes to address any items he/she wishes that are listed on the Consent Agenda.
A Request to Speak Card should be completed and returned to the City Secretary before Council considers
this item.
2. Requests for clarification of agenda items listed on the agenda for August 7, 2018.
3. Work Session Reports
A. ID 18-1194 Receive a report, hold a discussion, and give staff direction regarding nominations to the
City's Boards and Commissions.
B. ID 18-1198 Receive a report, hold a discussion, and give staff direction regarding potential revisions to
the Code of Ordinances and the Denton Handbook for Boards, Commissions and
Council Committees making all ad hoc committees and citizen task forces subject to the
procedural requirements of the Texas Open Meetings Act.
C. ID 18-1220 Receive a report, hold a discussion, and give staff direction regarding the Board of Ethics
rules of procedure.
D. ID 18-1221 Receive a report, hold a discussion, and give staff direction regarding the FY 2018-19
Proposed Budget,Capital Improvement Program, and Five Year Financial Forecast.
E. ID 18-1237 Receive a report, hold a discussion, and provide staff direction regarding potential
revisions to the Code of Ordinances to address tie-votes.
Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider
specific items when these items are listed below under the Closed Meeting section of this agenda. The City
Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent
with Chapter 551 of the Texas Government Code,as amended,or as otherwise allowed by law.
1. Closed Meeting:
A. ID 18-1200 Deliberate regarding Real Property - Under Texas Government Code 551.072;
Consultation with Attorneys-Under Texas Government Code Section 551.071
Discuss, deliberate, and receive information from staff and provide staff with direction
Page I Printed on 712712018
City Council Meeting Agenda August 7,2018
pertaining to the potential purchase of certain real property interests out of the B.B.B. &
C.R.R. Company Survey, Abstract No. 192 and the E. Puchalski Survey, Abstract No.
996, Denton County, Texas, and being generally located within the 300 through 600
block range of North Bonnie Brae Street, including a 0.8123 acre tract generally located
in the 2300 block of Scripture Street, Denton, Texas. Consultation with the City's
attorneys regarding legal issues associated with the potential acquisition or condemnation
of the real property interests described above where a public discussion of these legal
matters would conflict with the duty of the City's attorneys to the City of Denton and the
Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the
State Bar of Texas, or would jeopardize the City's legal position in any administrative
proceeding or potential litigation. (Bonnie Brae Street-Phase 4/5)
ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED
MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE
WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL
ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH
THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER
EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED
MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET
SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA
OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED
MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS
ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS
ACT.
Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E.
McKinney Street,Denton,Texas at which the following items will be considered:
1. PLEDGE OF ALLEGIANCE
A. U.S.Flag
B. Texas Flag
"Honor the Texas Flag—I pledge allegiance to thee,Texas,one state under God, one and indivisible."
2. PROCLAMATIONS/PRESENTATIONS
A. ID 18-1184 Resolution of Appreciation for Police Chief Lee Howell.
B. ID 18-1197 Mayor's Summer Youth Jobs Program
C. ID 18-1230 Denton Farmers Market Week
D. ID 18-1224 Day of Recognition for Emily Fowler Library Staff Heroism.
3. PRESENTATION FROM MEMBERS OF THE PUBLIC
A. Review of procedures for addressing the City Council.
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City Council Meeting Agenda August 7,2018
B. Receive Scheduled Citizen Reports from Members of the Public. This section of the agenda permits
any person who has registered in advance to make a citizen report regarding a public business item he or
she wishes to be considered by the City Council. This is limited to no more than four (4) speakers per
meeting with each speaker allowed a maximum of four (4) minutes to present their report. At the
conclusion of each report, the City Council may pose questions to the speaker or may engage in
discussion. If the City Council believes that a speaker's report requires a more detailed review, the City
Council will give the City Manager or City Staff direction to place the item on a future work session or
regular meeting agenda and advise staff as to the background materials to be desired at such meeting.
C. Additional Citizen Reports - This section of the agenda permits any person not registered for a citizen
report to make comments regarding public business on items not listed on the agenda. This is limited to
two speakers per meeting with each speaker allowed a maximum of four (4) minutes. Such person(s) shall
have filed a"Blue Card"requesting to speak during this period prior to the calling of this agenda item.
NOTE: If audio/visual aids during presentations to Council are needed, they must be submitted to the City
Secretary 24 hours prior to the meeting.
4. CONSENT AGENDA
Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the
Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to
implement each item in accordance with the Staff recommendations. The City Council has received
background information and has had an opportunity to raise questions regarding these items prior to
consideration.
Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent
Agenda (Agenda Items A — M). This listing is provided on the Consent Agenda to allow Council Members
to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent
Agenda Items A — M below will be approved with one motion. If items are pulled for separate discussion,
they may be considered as the first items following approval of the Consent Agenda.
A. ID 18-1047 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract with
Jagoe-Public Company for Trucking Services for the delivery and removal of construction
materials for various City of Denton departments; providing for the expenditure of funds
therefor; and providing an effective date (IFB 6765- awarded to Jagoe-Public Company
with a one(1)year not-to-exceed amount of$150,000).
B. ID 18-1058 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract for the
purchase of software maintenance for continued vendor technical support and software
upgrades to Cartegraph Operations Management System for Public Works asset and
work order software system, with Cartegraph Systems, LLC, which is the sole provider
of this software. In accordance with Texas Local Government Code 252.022, provides
that procurement of commodities and services that are available from one source are
exempt from competitive bidding; and if over $50,000 shall be awarded by the governing
body; and providing an effective date (File 5635 awarded to Cartegraph Systems, LLC,
in the three(3)year not-to-exceed amount of$249,848.64).
C. ID 18-1073 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule
Page 3 Printed on 712712018
City Council Meeting Agenda August 7,2018
municipal corporation, authorizing the City Manager to execute an Investment Advisory
contract with First Southwest Asset Management, LLC; providing for the expenditure of
funds therefor; and providing an effective date (RFP 6695- awarded to First Southwest
Asset Management,LLC,in the two(2)year not-to-exceed amount of$60,000).
D. ID 18-1113 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract for on-site tire
repair and replacement services for on-road heavy-duty trucks and off-road vehicles and
equipment for the City of Denton Fleet Services department; providing for the expenditure
of funds therefor; and providing an effective date (IFB 6788- awarded to Dwayne
Waters, Inc. dba Briscoe Alignment & Tire, for one (1) year, with the option for two (2)
additional one (1) year extensions, in a total not-to-exceed amount of $310,000 for all
years).
E. ID 18-1123 Consider adoption of an ordinance of the City of Denton, Texas, amending Section
22-31(13) and 22-31.1, Article II-Park Rules, Chapter 22- Parks and Recreation, Code
of Ordinances of the City of Denton, Texas, to provide for clarification of smoking related
to parks and parks facilities within the City of Denton; providing for a severability clause;
providing for a savings clause;providing for publication; and,declaring an effective date.
F. ID 18-1179 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract for the supply
of shoot on connectors for the City of Denton Distribution Center; providing for the
expenditure of funds therefor; and providing an effective date (IFB 6840- awarded to
Texas Electric Cooperatives, Inc., in the four (4) year not-to-exceed amount of
$150,000).
G. ID 18-1185 Consider adoption of an ordinance of the City of Denton authorizing an agreement
between the City of Denton, Texas and Cumberland Presbyterian Children's Home for
expenses related to providing residential care; providing for the expenditure of funds
therefor; and providing for an effective date. ($100)
H. ID 18-1186 Consider adoption of an ordinance of the City of Denton authorizing an agreement
between the City of Denton, Texas and Explorium Denton for expenses related to
operating the museum; providing for the expenditure of funds therefor; and providing for
an effective date. ($100)
I. ID 18-1187 Consider adoption of an ordinance of the City of Denton authorizing an agreement
between the City of Denton, Texas and Sasser Nation for Scholarships; providing for the
expenditure of funds therefor; and providing for an effective date. ($100)
J. ID 18-1188 Consider adoption of an ordinance of the City of Denton approving an amendment to an
interlocal agreement between the City of Denton and the University of North Texas,
Ordinance 2018-903, for a bike share pilot program owned and administered by the
University of North Texas; and providing an effective date. The Mobility Committee
recommends approval(3-0).
K. ID 18-1192 Consider adoption of an ordinance approving an easement grant and abandonment
agreement ("Agreement") regarding electric utility easement(s) by and between Rayzor
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City Council Meeting Agenda August 7,2018
Investments, Ltd., United States Cold Storage, LP, and the City of Denton, within the J.
Perry Survey, Abstract Number 1040 and the Eugene Puchalski Survey, Abstract
Number 996, City and County of Denton, Texas; authorizing the City Manager to execute
the Agreement; and providing and effective date. (Westpark area development planning:
Paccar (Peterbilt), US Cold Storage, Rayzor Investments, and Retreat at Denton
Apartments)
L. ID 18-1203 Consider adoption of an ordinance of the City of Denton, Texas authorizing a pilot bicycle
share permit program; establishing the rules and regulations for the pilot bicycle program
and the provisions for enforcement thereof, establishing a fee schedule for the permit
program; proving a penalty clause; providing a severability clause; and declaring an
effective date.
M. ID 18-1214 Consider approval of a resolution appointing the nomination of an alternative member to
the Board of Ethics created in the Code of Ordinances, Chapter 2, Article XI, Section
2-277;and providing an effective date.
N. ID 18-1231 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule
municipal corporation, authorizing the City Manager or his designee to execute a contract
for the purchase of Radio System hardware, to include products and services, and
support and maintenance for the City of Denton, which is available from
Houston-Galveston Area Council of Governments (H-GAC) Cooperative Purchasing
Contract # RA05-18 and in accordance with the provisions of Texas Local Government
Code 271.083, providing the statutory authority for the city to participate in the
Cooperative Purchasing Program; providing for the expenditure of funds therefor; and
providing an effective date (File 6832- awarded to Motorola Solutions, Inc., in the five
(5)year not-to-exceed amount of$7,713,284).
5. ITEMS FOR INDIVIDUAL CONSIDERATION—CONSIDERATION OF THE USE OF
EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS
A. ID 18-1176 Consider adoption of an ordinance of the City of Denton finding that a public use and
necessity exists to acquire a permanent easement covering a 0.533 acre tract of land
situated in the Eugene Puchalski Survey, Abstract No. 996, City of Denton, Denton
County, Texas (the "Property Interests"), for the public use of, expansion, construction,
maintenance, and operation of an electric transmission line, ancillary facilities, and
structures; authorizing the City Manager, or his designee, to acquire the property interests
by agreement including making all offers required by law; authorizing the use of the power
of eminent domain to condemn the property interests if an agreement cannot be reached;
authorizing the City Attorney or his designee to file eminent domain proceedings if
necessary; authorizing the expenditure of funds; making finings; providing a savings clause;
and providing an effective date. [Hickory to Locust TM Line-Tract 94]
6. ITEMS FOR INDIVIDUAL CONSIDERATION
A. ID 18-915 Consider adoption of an ordinance authorizing a development agreement between the
City of Denton and Marker Stone Realty Partners I, LLC and Marker Stone Realty
Partners 11, LLC; providing for acquisition of necessary property interest, installment of
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City Council Meeting Agenda August 7,2018
critical infrastructure, and provision of electrical services; authorizing the City Manager to
execute the agreement, and providing for an effective date. (Evers Way and Beall Way
Additions)
B. ID 18-1153 Consider adoption of an ordinance directing the publication of Notice of Intention to issue
$31,810,000 in principal amount of Certificates of Obligation of the City of Denton; and
providing for an effective date.
C. ID 18-1195 Consider nominations/appointments to the City's Boards and Commissions: Airport
Advisory Board; Animal Shelter Advisory Committee; Community Development
Advisory Committee; Health & Building Standards Commission; Historic Landmark
Commission; Human Services Advisory Committee; Library Board; Parks, Recreation
and Beautification Board; Planning and Zoning Commission; Public Art Committee; Public
Utilities Board;Traffic Safety Commission; and Zoning Board of Adjustment.
7. PUBLIC HEARINGS
A. Z18-0010a Hold a public hearing and consider adoption of an ordinance to rezone approximately
0.64 acres from a Neighborhood Residential 4(NR-4) to a Downtown Commercial
Neighborhood (DC-N) District. The subject property is generally located on the south
side of East Mulberry Street, approximately 50 feet west of Wood Street, in the City of
Denton, Denton County, Texas; adopting an amendment to the City's official zoning map;
providing for a penalty in the maximum amount of $2,000.00 for violations thereof;
providing a severability clause and an effective date. (Z18-0010, People's Funeral Home
Expansion,Hayley Zagurski).
8. CONCLUDING ITEMS
A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council
or the public with specific factual information or recitation of policy, or accept a proposal to place the
matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open
Meetings Act, provide reports about items of community interest regarding which no action will be taken,
to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules;
an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about
an upcoming event organized or sponsored by the governing body; information regarding a social,
ceremonial, or community event organized or sponsored by an entity other than the governing body that
was attended or is scheduled to be attended by a member of the governing body or an official or employee
of the municipality; or an announcement involving an imminent threat to the public health and safety of
people in the municipality that has arisen after the posting of the agenda.
B. Possible Continuation of Closed Meeting topics,above posted.
CERTIFICATE
I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of
Denton, Texas,on the day of ,2018 at o'clock(a.m.)(p.m.)
CITY SECRETARY
Page 6 Printed on 712712018
City Council Meeting Agenda August 7,2018
NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM AND COUNCIL
CHAMBERS ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH
DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE
HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED
MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE
TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO
THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY
SECRETARY'S OFFICE.
Page 7 Printed on 712712018
Sunday Monday Tuesday Wednesday Mursday Friday Saturday
1 2 3 4 5 6 7
No Council Luncheon No Council Meeting 41h of July - 4 p.m. Public Art 11.00 Development
1:30pm Committee on the City Holiday Committee Code Review
Environment-Cancelled
5:30pm Traffic Sa fe ty
Commission
Park Board 6pm
8 9 10 11 12 13 14
9:00am Public Utilities No Council Meeting 11:00am EDP Board 11:00 Development
Board Code Review
5:00pm P&Z Work
5:30pm HLC Session
6:30pm P&ZRegular
Se ssio n
15 16 17 18 19 20 21
6:00 pm Council 10:00 am CC Work 11:30am Mobility HaBSCo Meeting 11:00 Development
Ethics Training Session Committee Cancelled Code Review
6:30 pm CC Regular
Session
22 23 24 25 26 27 28
6:00pm Public Utilities 10:00am Council 12:00 Downtown TF 11:00 Development
Board AirportCo turn ittee- Cancelled Code Review
Cancelled
5:00pm P&Z Work
1:00 pm 4th Tuesday Session
Session 6:30pm P&ZRegular
Se ssion
29 30 31
No Council Meeting
4:00pm7BA
5:30pm Special Called
HLC
6:00 pm Board ofEthics
7/27/2018 11:59 AM
pop" August 2018
Sunday Monday Tuesday Wednesday I1lursday Friday Saturday
1 2 3 4
8:30 am Council 11:00 Development
Budget Workshop Code Review
4 p.m. Public Art
Committee
5 6 9:30pm Committee 7 8 9 10 11
on the Environment 10:30am Committee on 11:00am EDP Board 11:00 Development
11:30 am Council Citizen Engagement Code Review
Luncheon 1:00pm CC Work 5:00pm P&ZWork
5:30pm Traffic Safety Session Session
Commission 6:30 pm CC Regular 6:30pm P&ZRegular
ParkBoard 6 p m Session Session
12 13 14 15 16 17 18
9:00am Public Utilities 2:00 pm 2nd Tuesday 11:30am Mobility 11:00 Development
Board Session Committee Code Review
Ha BSC o Meeting
5:30pm HLC Cancelled
19 20 21 22 23 24 25
2:00 pm CC Work 5:00pm P&ZWork 11:00 Development 8:30 am
Session Session Code Review City Council
6:30 pm CC Regular 6:30pm P&ZRegular Retreat
Se ssio n Se ssio n
Lo c a do n 'IBD
26 27 28 29 30 31
6:00pm Public Utilities 10:00am Council 11:00 Development
Board AirportCo turn ittee Code Review
4:00 pm ZBA 2:00 pm 4th Tuesday
Session
7/27/2018 11:59 AM
wmm::�I September 2018
Sunday Monday Tuesday Wednesday 'Thursday Friday Saturday
1
2 3 4 5 6 7 8
No Councilluncheon No Council Meeting 4 p.m. Public Art 11:00 Development
Labor Day - Committee Code Review
City Ho lid a y
9 10 11 12 13 14 15
9:00am Public Utilities Special Called 11:00am EDP Board 11:00 Development
Board Work/Reg.Session Code Review
S:00pm P&Z Work
5:30pm HLC Session
6:30pm P&ZRegular
6 pm Park Board Session
16 17 18 19 20 21 22
2:00 pm CC Work 11:30am Mobility HaBSCo Meeting 11:00 Development
Session Committee Code Review
6:30 pm CC Regular
Session
23 24 25 26 27 28 29
6:00pm Public Utilities 2:00 pm 4th Tuesday 12:00 Downtown 1IF 11:00 Development
Board Session Code Review
5:00pm P&ZWork
4:00 pm 7BA Session
6:30pm P&ZRegular
Se scion
30
7/27/2018 11:59 AM
FUTURE CITY COUNCIL ITEMS
Note: This is a working draft of pending Council items and is subject to chan a without notice.
Meeting Date Deadlines Item
August 6—Luncheon Captions—July 23 WS—Gas Well Setbacks
Backup—August 2
August 7—Work/Regular Session Captions—July 23 WS—Department Budget Presentations
Backup—August 3 WS—Budget Workshop
WS—Plan Concept for North Lakes Tennis Center
WS—TOMA Requirements for ad hoc boards and citizen
taskforces
WS—Rules of Procedure revision to address P&Z tie votes
WS—Board of Ethics Rules and Procedures
IC—Radio contract
August 14—2"d Tuesday Session Captions—July 30 WS—Department Budget Presentations
Backup—August 10 WS—Budget Workshop
WS—Municipal Equality Index discussion
WS—Parliamentary Procedures discussion
WS—Gas Well Inspection Annual Report
WS—Tree discussion
WS—Electric scooter share discussion
August 21 —Work/Regular Session Captions—August 6 WS—Budget Workshop
Backup—August 17 WS—TWU Master Plan discussion
WS—Downtown Reinvestment Grant
WS—Dog park
WS/IC—Chamber ED contract
IC—EDP Board nominations
August 25 —Council Retreat—9:00 a.m.
August 28 —4h Tuesday Session Captions—August 13 WS—Budget Workshop
Backup—August 24 WS—Quiet Zones
WS—Development process overview
WS—Impact Fees
IC—Approval of Board of Ethics Rules and Procedures
PH— 1 st Public Hearing on the Tax Rate
September 3 —No Luncheon Labor Day holiday
September 4—No Meeting
September I I—Special Called Work/Regular Captions—August 27 WS—Budget Workshop
Session Backup— September 7 PH—2nd Public Hearing on the Tax Rate
PH—Public Hearing on the Budget
CA-Consent Agenda IC-Individual Consideration WS-Work Session
CM-Closed Meeting PH-Public Hearing
Meeting Date Deadlines Item
September 18 —Work/Regular Session Captions—August 31 WS—Budget Workshop
Backup— September 14 IC—Adoption of Budget
September 25 —4th Tuesday Session Captions— September 10 ICMA—9/22-26, Baltimore
Backup— September 21 WS—Economic Development project names
October 1 —Luncheon Captions— September 17 Joint DISD luncheon
Backup— September 27
October 2—No Meeting National Night Out
October 9—2nd Tuesday Meeting Captions— September 24 TML, Fort Worth, 10/9-10/12
Backup—October 5
October 16—Work/Regular Session Captions—October 1
Backup—October 12
October 23 —4th Tuesday Session Captions—October 8 WS—Stoke annual report
Backup—October 19
October 30—No Meeting
November 5 —Luncheon Captions—October 22 Airport Update—meeting at Airport
Backup—November 1
November 6—Work/Regular Session Captions—October 22 NLC, Los Angeles, 11/7-11/10
Backup—November 2 IC— Stoke contract renewal
November 13 —2nd Tuesday Session Captions—October 29
Backup—November 9
November 20—No Meeting Thanksgiving Holiday observed—City Offices Closed 11/22-23
November 27—4th Tuesday Session Captions—November 12
Backup—November 21 Tentative-Based on Need
December 3 —Luncheon Captions—November 19 Library Update—meeting at Library
Backup—November 29
December 4—Work/Regular Session Captions—November 19
Backup—November 30
December 11 —2 nd Tuesday Session Captions—November 26
Backup—December 7
December 18—Work/Regular Session Captions—December 3
Backup—December 14 Tentative-Based on Need
December 25 —No Meeting Christmas Holiday observed—City Offices Closed 12/24-25
CA-Consent Agenda IC-Individual Consideration WS-Work Session
CM-Closed Meeting PH-Public Hearing
Construction Projects Report IMPROVING
JCOFTY Week of July 30-Aug 05, 2018
For general inquiries and auestions, please contact the Proiect Manaizement Office at (940) 349-7227
DENTON
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
CURRENT PROJECTS See Yellow Highlighted for Major Closures
Amarillo St. Congress Egan 7/9/18 8/17/18 Street Reconstruction Streets (940)349-7160
(Temporary Lane Closures) 7/5/18
UNT 2018 Residence Hall Project Coordinate with
Ave.A Maple Eagle 3/19/18 9/30/18 (Both SB Lanes Closed) Engineering N/A UNT (940)349-8910
Bernard St Sycamore Mulberry 7/23/18 8/9/18 Utility Construction Engineering (940)349-8910
(Street Closures)
lawn Rose West Street Widening
Bonnie Brae St. lawn Line Vintage 7/1/17 8/30/18 Engineering N/A Electronic Signs (940)349-8910
of (Phase 1)
Capetown Dr. Desert Willow Bishop Pine 6/25/18 8/17/18 Concrete Street Panel Repair Streets 6/5/18 Door Hangers (940)349-7160
(Temporary Lane Closures Possible)
Edwards Rd. Camino Real Swisher Rd. 6/4/18 9/10/18 Street Reconstruction Streets 5/17/18 HOA Contacted (940)349-7160
TH. (Temporary Lane Closures)
m East Emerson Wastewater
Emerson Ln. Nottingham 7/25/18 8/15/18 (Road and Lane Closure) Wastewater 940-349-7300
Emery St. Alice Coit 6/25/18 9/10/18 Street Resurfacing Streets 6/11/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
Fulton St. Oak University 6/11/18 11/16/18 Water Main Construction Water 6/5/18 (940)349-7181
(Street Closure)
Fulton St. Linden Broadway 7/20/18 8/8/18 Wastewater Wastewater (940)349-7300
(Street Closure)
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
Hickory St. North Texas Ave C 5/21/18 8/3/18 Street Reconstruction Streets 5/15/18 Electronic Signs (940)349-7160
Blvd. (Temporary Road Closures)
Highland Park Rd. Laurel Wisteria 7/25/18 8/30/18 Street Reconstruction Streets (940)349-7160
(Temporary Road Closures)
Holiday Park Phase 2 Manhattan Kings Row 11/10/17 12/1/18 Wastewater Main Construction Wastewater 11/16/18 Door Hangers (940)349-7300
(Temporary Lane Closures Possible)
Hollyhill Ln. Longridge Pennsylvania 7/9/18 8/24/18 Street Reconstruction Streets 6/20/18 (940)349-7160
(Temporary Street Closures)
Jim Christal Rd. Western Blvd Scripture 7/3/18 10/1/18 Utility Line Construction Water/WW N/A (940)349-8463
(Road Closure)
Laurel St. Highland Park Wisteria 7/25/18 8/30/18 Street Reconstruction 7/12/18 (940)349-7160
(Temporary Lane Closures)
p y / / / / Street Reconstruction / / g ( )
Malone St. Scripture W. University 7 9 18 8 24 18 Streets 6 28 18 Electronic Signs 940 349-7160
(Temporary Lane Closures)
McKinney St. Loop 288 Ryan H.S 5/29/18 TBD Sidewalk Construction Engineering N/A Electronic Signs (940)349-8910
(Temporary Lane Closures)
Mayhill Rd. E. McKinney Morse 7/25/18 7/27/18 Utility Construction Engineering (940)349-8910
(Temporary Lane Closures)
Rd. US 380 Edwards Mayhill 9 1 17 2 1 20 Street Reconstruction Engineering Hangers (ineerin 1/3/18, Door Han 940)349-8910
y / / / / (Temporary Road Closures) 1/24/18
Water and Wastewater Construction
Mills Rd. Mayhill Denton ISD 5/29/18 7/30/18 and Road Widening Engineering N/A Electronic Signs (940)349-8910
driveway
(Street Closure)
Montecito Dr. EI Paseo Seville 6/25/18 7/30/18 Street Resurfacing Streets 6/11/18 (940)349-7160
(Temporary Lane Closures)
100' N 150'East Wastewater Main Reconstruction
Nottingham Nottingham Emerson (Temporary Lane Closures)7/25/18 8/15/18 Wastewater (940)349-7300
intersection
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
Prominence Pkwy. Mayhill Atlanta 1/31/18 8/31/18 Water and Wastewater Crossing Engineering 1/24/18 Door Hangers (940)349-8910
(Road Closure)
Riney Rd. N Elm Solana 9/29/17 9/30/18 Road Removal and Replacement Engineering Yes Electronic Signs (940)349-8910
(Road Closure)
Roselawn Dr. Bonnie Brae Kansas City 3/26/18 TBD Drainage and Roadway Construction Engineering N/A (940)349-8910
Southern RR (One Lane traffic control)
Sherman Dr. Bolivar Elm 7/23/18 8/10/18 Sidewalk Construction Streets (940)349-7160
(Temporary Lane Closures)
Spencer Rd. Mayhill Lowe's 4/2/18 9/29/18 Water Line Replacement Water 3/16/18 Contacted (940)349-8910
Driveway (Road Closure) departments affected
Spencer Rd. Mayhill Lowe's 4/2/18 9/29/18 Drainage Rebuild Drainage 3/16/18 Contacted (940)349-8910
Driveway (Road Closure) departments affected
Spencer Rd. Mayhill Lowe's 4/2/18 9/29/18 Road Reconstruction Engineering 3/16/18 Contacted (940)349-8910
Driveway (Road Closure) departments affected
Dead End Street Resurfacing, Curb and Gutter
Sun Valley Dr. Stuart 5/14/18 8/6/18 Streets 5/1/18 Door Hangers (940)349-7160
West (Temporary Lane Closures)
Curb and Gutter
Valley View Rd. Kings Row Sun Valley 5/14/18 8/6/18 Street Resurfacing, Streets 5/1/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
LINT 2018 CVAD Project
Welch St. Mulberry Chestnut 4/11/18 8/24/18 Drive approach/Sidewalk Engineering 3/19/18 3/30/2018 (940)349-8910
(Temporary Lane Closures)
Water and Wastewater Improvements
Western Blvd. 300 S.Western of Lane Jim Christ
ral N 7/24/18 9/21/18 Westpark Area Water (940)349-7324
of ist
(Lane Closures 4 to 2 lanes)
Pheasant Concrete Sidewalk Repairs
Windbrook St. Shady Trl. 7/16/18 8/10/18 Streets N/A (940)349-7160
Hollow (Temporary Lane Closures)
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
COMPLETED PROJECTS
Canterbury Ct. Hollyhill 1-35 4/9/18 7/20/18 Drainage Improvements Drainage 3/26/18 Door Hangers 940-349-8488
(Temporary Lane Closures)
Hickory St. Ave C 550 ft.West 7/5/18 7/20/18 Wastewater Main Reconstruction Wastewater 5/15/18 (940)349-7300
(Road Closure)
Huisache St. Yucca Retama 5/21/18 7/20/18 Streets Construction Streets 5/15/18 Door Hangers (940)349-7160
(Temporary Lane Closures Possible)
Lakeview Blvd. Black Walnut Burr Oak 6/18/18 7/13/18 Concrete Street Panel Repair Streets 6/5/18 HOA Contacted (940)349-7160
(Temporary Lane Closures Possible)
Lindsay St. McCormick 1-35 Service 6/8/18 7/31/18 Wastewater Main Reconstruction Wastewater 6/5/18 Door Hangers (940)349-7300
(Temporary Lane Closures Possible)
Malone St. Crescent Westchester 6/11/18 7/13/18 Water Main Construction Water 6/28/18 (940)349-7181
(Street Closure)
Mingo Rd. Sirius Mockingbird 6 25 18 7/13/18 Wastewater Main Construction Engineering N A (940 349-8910
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(Road Closure)
Paint Dr. Arabian Hollow Ridge 6/11/18 7/20/18 Concrete Street Panel Repair Streets 5/25/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
Retama St. Sagebrush Huisache TBT 7/20/18 Streets Construction Streets 5/15/18 Door Hangers (940)349-7160
(Temporary Lane Closures Possible)
Sagebrush Dr. Kings Row Retama 5/21/18 7/20/18 Streets Construction Streets 5/15/18 (940)349-7160
(Temporary Lane Closures Possible)
Sycamore St. Sycamore Wainwright 6/29/18 7/27/18 Wastewater Main ReconstructionWastewater N/A Door Hangers (940)349-7300
(Temporary Lane Closures)
UPCOMING PROJECTS
Bonnie Brae St. US 377 135W 2018 2020 Street Widening Engineering (940)349-8910
(Phase 2)
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
Bonnie Brae St. US 377 135E 2019 2021 Street Widening Engineering (940)349-8910
(Phase 1)
Bonnie Brae St. TBD TBD TBD TBD Street Widening Engineering (940)349-8910
(Phase 1)
Fulton St. Summer 2019 TBD Streets Streets (940)349-7160
Hettie St. TBD TBD Water,Wastewater, and Streets Multiple
Hinkle Dr. TBD TBD Water,Wastewater,Drainage,Streets Multiple
Londonderry Ln. Teasley Westminster 9/1/18 TBD Street Improvements Streets (940)349-7160
(Temporary Lane Closures)
Panhandle St. Carroll Bolivar TBT TBT Street Resurfacing, Curb and Gutter Streets 4/9/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
PEC 4- Engineering In Design Installing Underground Box Culvert Engineering (940)349-8910
Smith-Johnson Summer 2018 Water,Wastewater,Drainage,Streets Engineering (940)349-8910
Stuart Rd. Windsor Kings Row TBD TBD Concrete Curb and Gutter Repair Streets (940)349-7160
(Temporary Lane Closures)
Thomas St. TBD TBD Water,Wastewater, and Streets Multiple
W. Walnut St. S. Elm Cedar TBT TBT Utility Construction Engineering N/A (940)349-8910
(Temporary Road Closures)
Wayne St. TBD TBD Water,Wastewater, and Streets Multiple
Windsor Dr. TBD TBD Water,Wastewater,Drainage,Streets Engineering (940)349-8910