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120718 Friday Staff Report `„F City Manager's Office DENTON 215 E. McKinney St., Denton, TX 76201 • (940) 349-8307 MEMORANDUM DATE: December 7, 2018 TO: The Honorable Mayor Watts and Council Members FROM: Todd Hileman, City Manager SUBJECT: Friday Staff Report I. Council Schedule A. Meetings 1. Public Utilities Board Meeting on Monday, December 10, 2018 at 9:00 a.m. in the City Council Work Session Room. 2. Historic Landmark Commission Meeting on Monday, December 10, 2018 at 5:30 p.m. in the City Council Work Session Room. 3. Canceled- Mobility Committee Meeting Tuesday, December 11, 2018. 4. Work Session of the City Council on Tuesday,December 11, 2018 at 1:00 p.m. in the City Council Work Session Room followed by a Special Called Meeting. 5. Canceled - Economic Development Partnership Board Wednesday, December 12, 2018. 6. No Agenda Committee Meeting on Wednesday, December 12, 2018. 7. Work Session of the Planning and Zoning Commission on Wednesday, December 12, 2018 at 4:30 p.m. in the City Council Work Session Room, followed by a Regular Meeting at 6:30 p.m. in the City Council Chambers. 8. Traffic Safety Commission Meeting on Thursday, December 13, 2018 at 5:30 p.m. in the City Council Work Session Room. B. Upcoming Events 1. State of the City, January 17, 2019 from 6:00-8:30 p.m. at the Embassy Suites Denton Convention Center OUR CORE VALUES Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service 2. US Conference of Mayors, January 23-25, 2019, Washington, D.C. 3. Denton County Days, February 18-20, 2019, Austin, TX II. General Information & Status Update A. Outdoor Firepits—During Concluding Items on Nov. 27, Council Member Briggs requested clarification on the legality of outdoor firepits under City code. Under the current Fire Code (2012 IFC with Local Amendments), outdoor fires are allowed in either an open-flame cooking device (see 308.1.4) or in approved device such as a portable outdoor fireplace (see 307.4.3) that is at least 15 feet from a structure or combustible material. Firepits, which are available at several local retailers, are considered a portable outdoor fireplace and are permissible under the Fire Code as long as they are used in accordance with the manufacturer's instructions are not operated within 15 feet of a structure or combustible material. The City's current ordinance does prohibit recreational fires (sec 307.4.2). The primary reason for prohibiting "recreational fires" is that there are no prescribed safety requirements. For example,with a"recreational fire,"the size and fuel load have no restrictions, there is no restriction on the type of fuel used, and there are no safety precautions for flying embers,debris,etc. There are numerous large fires started accidentally each year throughout the country due to "recreational fires." The City does allow open-flame cooking devices (BBQs, etc.) and portable or permanent outdoor fireplaces and firepits. Many portable outdoor fireplaces are basically the same as "recreational fire"but with necessary safeguards in place to prevent the spread of fire. Portable fireplace and/or flrepit operating instructions describe specific types and amount of fuel (wood, paper, etc.) allowed to be used and have other safety devices like screens in place to keep embers from escaping the device. Staff contact: Kenneth Hedges, Fire B. Wheeler House SUP—The City Council recently requested information regarding if Serve Denton would need to seek another Specific Use Permit(SUP)to alter the footprint of the Wheeler House to create an emergency shelter space. Staff pulled the original SUP(attached) and confirmed that the SUP is for the entire property, including both 821 and 823 North Elm Street. There were no restrictions or conditions approved by Council as part of the SUP, so the "group home" use is approved for the entire 0.391 acre site. Looking back at the staff report for the case, the project narrative and floor plans, which indicated the front part of the building would be offices and a medical clinic, but this description and the associated plans were not made a part of the SUP approval or final ordinance. The only recommended condition had to do with the duration of the SUP. Specifically, staff recommended condition was that the"duration of the SUP shall be for 10 years from the date of approval." Planning and Zoning Commission recommended approval of the case with a condition that the SUP would expire if not renewed by City Council on or before 10/29/2033 or on termination of the applicant's current lease, whichever came first. Neither staff's nor Planning and Zoning Commission's recommended condition was part of the City Council's motion for approval (minutes attached, see pages 18-20). Additionally, staff pulled the Certificate of Occupancy that was issued in 2015 and it was for Professional Services and Office for Serve Denton. With the existing SUP that was approved in 2015, Serve Denton can expand within the existing building or add onto the existing building. Staff contact: Richard Cannone, Development Services C. Vela Athletic Complex Update—While North Texas had a rainy fall, construction at the Vela Athletic Complex in North Lakes Park continues to progress. Originally sod was anticipated to be installed early in the fall, but due to the weather, contractors started installation the week of November 19. It is anticipated that the turf installation on the fields will be completed by December 7. A new playground consisting of slides, swings and numerous other play features will be installed later this month. Walls will begin to be formed on the concession/restroom facility within the coming weeks. Project deadline is still set for the end of March 2019. Photos and video of the construction site can be viewed at the link below: https://www.dropbox.com/sh/s3 e5mv62r4u2ud5/AABUGiWTRFC0 l knWL 1 kA BdHa?dl=0. Staff contact: Gary Packan, Parks and Recreation D. Fireside Park Development and Magnolia Drainage Project Public Meeting — In an effort to proactively communicate with residents, staff has scheduled a Public Information Meeting to discuss the planned Fireside Park Development and Magnolia Drainage Project on Dec. 12 from 6:30 to 8 p.m. at North Lakes Recreation Center. The meeting was originally scheduled to provide residents with information about drainage improvements along Hinkle Drive and Windsor Drive from Pecan Creek Road to Windsor Drive. Because the Fireside Park Development is planned for the same general geography as the drainage project, staff wanted to take advantage of this advertised meeting to include information about the development review and community engagement process for the planned development. Staff will be available at the meeting to answer questions about the construction of Fireside Park, and the associated traffic impacts in the area. Meeting information has been posted to social media and yard signs have been placed along Hinkle Drive to notify residents that the meeting will now include information about both the drainage project as well as the Fireside Park development. Staff contact: Stuart Birdseye, Public Affairs E. Annual Point-In-Time Homeless Count — On Thursday, Jan. 24, the Denton County Homeless Coalition will conduct its annual Point-In-Time(PIT)Homeless Count. The PIT Count relies extensively on community support. Throughout the months of December and January, the DCHC is promoting the upcoming count and opportunities for community members to support the count by volunteering and donating. The information listed below is being shared with the community: 2019 Point-In-Time Count-Help Make Everyone Count! Thursday, January 24, 2019 12:01 a.m. to 11:59 p.m. • What is the Point-In-Time count? The Point-In-Time Count is an annual census of people experiencing literal homelessness. • Why does the count help? o It helps our community identify and understand the extent and nature of homelessness o The data from the count helps with applying for funding o It helps our community advocate for increased resources • How can you help? Volunteer to conduct surveys online at https://tipyurl.com/DenCoCounts or Donate $5 Gift Cards to any of the following merchants: Walmart, Kroger, WinCo Foods, Target, RaceTrac, QuikTrip, or Fast Food Restaurants. Donations should be brought to United Way of Denton County 1314 Teasley Ln. Denton, TX 76205 during the hours of 8 a.m. to 5 p.m. Monday through Friday. Help make Denton County's homeless population count! #DenCoCounts. Staff contact: Dani Shaw, Community Development F. Inclement Weather Transportation to Shelters —Please be advised that there will be a temporary DCTA route in place for this weekend's inclement weather that will help transport people experiencing homelessness to one or more shelters. This is a pilot to identify more central locations where people can go to get transportation. Also attached is the Inclement Weather Plan that has been previously distributed. It provides information on public facilities in Denton that may be accessed in extreme weather. Staff has notified a distribution list of social service organizations in order to help communicate to anyone in need of transportation assistance to shelter where to go in Denton and what time to be there. Below is the temporary route information for Friday and Saturday: FRIDAY 12/07/18 DCTA VAN SCHEDULE Fire Our Daily Salvation Our Daily Fire Station Bread Army Bread Station#5 #5 Depart Depart Arrive Depart Depart Arrive 4:00 pm 4:15 pm 4:25 pm 4:30 pm 4:45 pm 5:00 pm 5:00 pm 5:15 pm 5:25 pm 5:30 pm 5:45 pm 6:00 pm 6:00 pm 6:15 pm 6:25 pm 6:30 pm 6:45 pm 7:00 pm* * Last stop will be Our Daily Bread at 6:45 pm,unless there are passengers onboard wanting to go to Fire Station#5. SATURDAY 12/08/18 & SUNDAY 12/09/18 DCTA VAN SCHEDULE Fire Station Our Daily Salvation Monsignor Our Daily Fire #5 Bread Army King Bread Station #5 Outreach Center Depart Depart Arrive Depart Depart Depart Arrive 4:00 pm 4:15 pm 4:25 pm 4:30 pm 4:35 pm 4:45 pm 5:00 pm 5:00 pm 5:15 pm 5:25 pm 5:30 pm 5:35 pm 5:45 pm 6:00 pm 6:00 pm 6:15 pm 6:25 pm 6:30 pm 6:35 pm 6:45 pm 7:00 pm 7:00 pm 7:15 pm 7:25 pm 7.30 pm 7:35 pm 7:45 pm 8:00 pm* * Last stop will be Our Daily Bread at 7:45 pm,unless there are passengers onboard wanting to go to Fire Station#5. Staff contact: Dani Shaw, Community Development G. Updates on Safe Routes to School Sidewalk Projects — The Capital Projects Department has three Safe Routes to School grant-funded sidewalk projects that are currently being planned. Wilson/Pecan: The Wilson/Pecan project was signed by TxDOT and returned to us for execution last week. Capital Projects staff are working the Finance Department to send the first payment to TxDOT. Once TxDOT receives that payment, staff will work with their engineer to develop the project schedule. Ginnings/Lee: The Ginnings/Lee Safe Routes to School project is being reviewed by TxDOT. Staff anticipates receiving the executed agreement within the next few weeks. Sycamore/Welch: The Sycamore/Welch Transportation Alternatives Set- Aside grant is still with TxDOT. Staff anticipates receiving the executed agreement for this project within the next few weeks. Staff will provide additional information on the proposed timing of these projects once further progress has been made with TxDOT. Staff contact: Marc Oliphant, Capital Projects H. Boring Technology—Staff received a request to explore using newer underground boring technologies would prove beneficial for City operations. Staff is currently researching these new underground boring methods. In addition, staff is also exploring/researching new street paving machinery to determine if more efficient and effective applications are possible. Once the research is completed, staff plans to prepare an Informal Staff Report that will provide a summary on the findings and seek direction on next steps. Staff contact: Todd Estes, Capital Projects I. Pedestrian Safety provements at Hickory and Carroll—Council Member Briggs met with several residents on Nov.19 to observe current pedestrian safety conditions at the intersection of Hickory Street and Carroll Boulevard. This meeting was a result of a pedestrian involved vehicle collision reported on Nov. 9. The meeting included a walkthrough of the Hickory/Carroll intersection, where several items were identified that were further analyzed by the City's Traffic Engineer. These items are listed and discussed below: • Provide additional street lighting and replace the existing bulbs with LEDs. Possibly install another luminaire in the median. o Staff is currently working on assessing the existing lighting levels and considering increasing the wattages of the existing lights.This will improve the overall lighting conditions at the intersection and will not necessitate installation of additional luminaires in the median. Also, staff will be replacing all street lights from High Pressure Sodium to LED lighting starting early next year. • Update the signal timing to allow pedestrians to enter the crosswalk before a vehicle enters the intersection. o Given the frequency and number of pedestrians crossing the intersection, changing the signal timing is not recommended at this time. The requested changes (allowing pedestrian to enter the crosswalk early) are typically implemented at high pedestrian usage areas such as the square. Additionally, changes to signal timing will reduce the effective time allocated for vehicles resulting in increased delay and congestion. • Modify crosswalks with a brighter color, different pattern, or size. o Crosswalk design is standardized and minimal modifications can be made to the current conditions. Based on staff s assessment, existing crosswalks are in good condition and clearly visible. • Install curb extensions. o Curb extensions will be further reviewed; however, curb extensions would reduce the capacity of the intersection as it replaces a travel lane. • Consider installing a roundabout at this intersection. o Given the existing constraints at this intersection such as right-of- way, number of lanes needed along Carroll, and distance to adjacent traffic signals,installation of a roundabout at this location is not recommended. Other intersections near the incident were also observed during the site visit and they are discussed below: • Hickory Street and Bell Avenue is dark at night and requires additional lighting. o This intersection is heavily used by the Transit Center commuters. Officers mentioned having a difficult time seeing at night. o The intersection does not have luminaire arms mounted on the signal poles. The existing infrastructure will only allow one luminaire arm assembly to be mounted in the northwest corner. This traffic signal will be replaced in 2019 with luminaires in all four corners. • Mulberry Street and Ave A is dark at night and requires additional lighting. This intersection should have a stop sign as it did in the past. o The intersection currently has three light poles but further analysis will be conducted and coordinated with UNT and DME to determine if additional light poles need to be installed. The stop sign was removed because it did not meet Manual on Uniform Traffic Control Devices compliancy. • Mulberry Street and Carroll Boulevard needs a new traffic signal with a longer pedestrian walk time.More people are using the parking lots near this intersection. o Staff is planning a protected pedestrian crossing if the existing signal conduit has the required available space. City staff is considering removing this traffic signal in the future and consideration will be taken to provide a safe route for pedestrians crossing Carroll Boulevard. • The Downtown Square and Fry Street area should be designed to include retractable bollards to protect pedestrians during special events. o This will be further considered by staff. Staff contact: Pritam Deshmukh, Capital Projects J. Roselawn Concrete Batch Plant — Staff has been contacted by several residents regarding concerns with the temporary concrete batch plant that is going in on Roselawn Drive. Development Services staff met with the contractor for the planned batch plant on Tuesday, Dec. 4. During that meeting, staff confirmed that this batch plant is a part of the US 377 expansion project and will be operated by TxDOT. Under section 35-135 (a)(1)of the Denton Development Code, the batch plant requires a Texas Commission on Environmental Quality (TCEQ)permit to operate the plant. The project is exempt from local requirements based on the permit, meaning the plant is exempt from City land use requirements and all regulations governing the project fall under the authority of the State of Texas. TxDOT has agreed to forward copies of the site's Storm Water Prevention Plan, National Pollutant Discharge Elimination System permit, TCEQ permit, and other permitting requirements to the City. TxDOT also shared that the batch plant will not be fully mobilized until late February or early March 2019. Staff will continue monitoring this project and will provide you with updates, including permitting and project timing, as that information is made available. For additional information related to this project,please contact the following: TxDOT Representative Angel Karr, Project Manager(Contract with AIA Engineers) akarr&aiainc.com City of Denton Development Services Scott McDonald, Director of Development Services scott.mcdonaldkcityofdenton.com Staff contact: Scott McDonald, Development Services K. Community Development Manager — Congratulations to Dani Shaw on her promotion to Community Development Manager, planned to be effective December 15, 2018. Dani has worked for the City of Denton for 6 years in the Community Development Division as the Human Services Coordinator — acting as liaison to the Human Services Advisory Committee, managing local, state, and federal grant programs and awards, collaboratively developing and leading initiatives to serve individuals experiencing homelessness, and many other projects and programs serving Denton residents. We are excited to welcome Dani to this role and look forward to continued progress under her leadership. Staff contact: Sarah Kuechler, Public Affairs L. Wayfinding Signage — New wayfinding signage was installed the last week of November to help residents and visitors find key landmarks around the community. During the December 3 City Council Luncheon, staff was asked to provide an update on what will be done to address older, existing signage located directly behind or in front of the new wayfinding signs. The Development Services Department is coordinating with TxDOT, DCTA and the Capital Projects Department to remove the older, existing signage. Staff will began moving signs this week and will continue to work TxDOT, DCTA, and other partners to reduce visual clutter and ensure all necessary signage is placed in a location where the signs can be easily seen. Staff contact: Ron Menguita, Development Services M. Rent by the Bedroom Developments—During the Dec.4 work session presentation on Collegiate Housing, the City Council requested a list of current rent-by-the- bedroom developments in Denton including the property name, address, and number of units. Attached is the requested information. Staff contact: Ron Menguita, Development Services N. Delay of Planned Oak Street Closure—The Water Department has a current water infrastructure improvement project underway at the corner of Oak Street and Fulton. Staff originally planned to close Oak Street from Fulton to Mounts from Dec. 10 through Dec. 14 to repave that portion of Oak Street. Staff has decided to delay the closure due to next week being finals week at UNT. Staff is coordinating with the contractor and will provide updates once a new date for the repaving project has been identified. Staff contact: Frank Pugsley, Water III. Attachments A. Wheeler House Specific Use Permit B. April 17, 2015 Council Meeting Minutes C. Inclement Weather Shelter Handout D. List of Rent by the Bedroom Developments IV. Informal Staff Reports A. 2018-174 Receipt and Use of Gas Well Revenue B. 2018-175 Net Revenue Report on Economic Development Incentives C. 2018-176 Utilization of Water and Waste Water Impact Fees D. 2018-177 Quakertown Water and Bathroom Service V. Council Information A. Council Meeting Requests for Information B. Other Council Requests for Information C. Draft Agenda for December 18 D. Council Calendar E. Future Work Session Items F. Street Construction Report Ousers\101354\desktop\s 14®0008.docx ORDINANCE NO. 2015-101 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING A SPECIFIC USE PERMIT FOR A GROUP HOME ON APPROXIMATELY 0.391 ACRES OF LAND GENERALLY LOCATED ON THE WEST SIDE OF NORTH ELM STREET NEAR THE INTERSECTION WITH FERGUSON STREET. THE SUBJECT PROPERTY IS LOCATED WITHIN A DOWNTOWN COMMERCIAL GENERAL (DC-G) ZONING DISTIRCT, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE (514-0008). WHEREAS, the Allison Engineering Group, on behalf of the property owner, Denton Bible Church ("Applicant"), has applied for a Specific Use Permit to allow a "Group Home" on approximately 0.391 acres of land within a Downtown Commercial General (DC-G) zoning district legally described in Exhibit "A" and depicted in Exhibit `B", attached hereto and incorporated herein by reference (hereinafter,the "Property"); and WHEREAS, after providing notice and after conducting a public hearing on March 11, 2015 as required by law, the Planning and Zoning Commission recommended approval (5-1) of the Specific Use Permit; and WHEREAS, after providing notice and after conducting a public hearing on April 7, 2015 as required by law, the City Council finds that the Specific Use Permit is consistent with Denton Plan 2030 and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION_1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference as true. SECTION 2. The Specific Use Permit to allow a "Group Home" on the Property is hereby approved. SECTION 3. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 4. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 5. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, Texas, within ten(10) days of the date of its passage. PASSED AND APPROVED this the Vill day of 2015. CHRIS Wig 1 S, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: AL ' APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY:_�. " '� :... EXHIBIT A LEGAL DESCRIPTION 0.391 ACRE BEING all that certain lot, tract, or parcel of land situated in the B. B. B. and C. R. R. Company Survey Abstract Number 185 in the City of Denton, Denton County, Texas, being all that certain "Tract One" and "Tract Two" of land conveyed by deed from Terrill Wheeler and wife, Wilma Wheeler to Jimmie Terrill Wheeler and wife, Jo Ann Wheeler recorded in Volume 1561, Page 997, Real Property Records, Denton County, Texas, and being all that certain tract of land conveyed by deed from Velma Brooks to Terrill Wheeler recorded in Volume 641, Page 79, Deed Records, Denton County, Texas and being more particularly described as follows: BEGINNING at an iron rod found for corner in the west line of North Elm Street, a public roadway having a right-of-way of 60.0 feet, said point being the southeast corner of that certain "Tract One" of land conveyed by deed from Georgia Caraway and Robert J. Caraway to Yolanda Calderon et al recorded in Volume 4513, Page 579, Real Property Records, Denton County, Texas; THENCE S 01° 20' 34" W, 99.93 feet with said west line of said North Elm Street to an "X" in concrete for corner, said point being the northeast corner of that certain tract of land conveyed by deed from Scott Apex, Ltd. to Vaughn Equities, LLC recorded under Document Number 2006-18464, Real Property Records, Denton County, Texas; THENCE N 890 00' 02" W, 120.19 feet with the north line of said Vaughn Equities tract to a 60d nail found for corner; THENCE N 880 47' 44" W, 52.81 feet with said north line of said Vaughn Equities tract to an iron rod found for corner, said point being the northeast corner of that certain tract of land conveyed by deed from Catherine May Williams et al to Joey Claire Watters recorded under Document Number 2011-60535, Real Property Records, Denton County, Texas; THENCE N 040 59' 13" E, 49.56 feet to an iron rod found at corner, said point being the northwest corner of that certain tract of land conveyed by deed from Terrill Wheeler to Jimmie and Jo Ann Wheeler in Volume 1561, Page 997, recorded under Document number 2012-58201, Real Property Records, Denton County, Texas; THENCE N 020 05' 08" E, 50.44 feet to an iron rod found for corner, said point being the southwest line of said Calderon "Tract One"; THENCE S 880 56' 17" E, 169.20 feet with the south line of said Calderon "Tract One" to the PLACE OF BEGINNING and containing 0.391 acre of land. (Commonly known as 821 North Elm Street) EXHIBIT B LOCATION MAP S14-0008 Site Location/Aerial'XIap r f; — - € � IE mag F _ S , _ - _..................... __._.._..._...._ate= - ___:_ m............ _ £ - ! 3 9 .. ....__..........._ _ —.c::...._ ••eee:°e .. F eee_ Wt� •••-- ••• _ _ _ e — ::::. HE Ilia" I ee:e :e E .e —1 — _ ...... — _. _ �- P - f -_=- :... -- -- - - IP 3F :. :3:. i" ' ...:e_e:e_eeeeeeeese_:eeeeee . ........ ..:�. m � a .erg ............ ....—.__.._... ......_. HIS . 2121 _..: NEW LK EMIL ENN mO --_ -- £ -e_ �£ I b ££ _..._......... £ f_.. J €. ee: ' —_ -A Allk ma Site NuA mParcels ' " " � - �l Streets CITY OF DENTON CITY COUNCIL MINUTES April 7, 2015 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, April 7, 2015 at 1:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Pro Tem Engelbrecht, Council Member Gregory, Council Member Hawkins, Council Member Johnson, Council Member Roden, Council Member Ryan, and Mayor Watts. ABSENT: None. 1. Citizen Comments on Consent Agenda Items There were no citizen comments on Consent Agenda Items. 2. Requests for clarification of agenda items listed on the agenda for April 7, 2015. Council Member Hawkins asked for additional information on Consent Agenda Item J dealing with the summer food program. Emerson Vorel, Director of Parks and Recreation, stated that this was a contract with the DISD to prepare meals for the summer food program. It was a free summer lunch for qualified children similar to what was done during the school year. Council Member Gregory asked for a discussion on Consent Agenda Item L dealing with political signs. John Cabrales, Assistant City Manager, stated that the revision dealt with a portion of the sign ordinance dealing with political signs. The change would regulate the time, place and manner for Early Voting and Election Day and followed State regulations. Council Member Gregory asked what was being done to ensure that the regulations were following freedom of speech. Cabrales stated that staff had worked with the Legal Department to make sure the new regulations were not infringing on freedom of speech rights. Council Member Gregory asked about large signs attached to large trucks taking many parking spaces. Cabrales stated that those types of signage would be looked at with the revision of the total sign ordinance. Staff was still in discussions with those regulations and as long as the sign stayed in the height restrictions it would be able to be used. Staff was also addressing the situation of taking up more than one parking space. Council Member Johnson asked about Consent Agenda Item I regarding tree mitigation and adjusting categories upward. City Manager Campbell stated that it was an adjustment in the budget for those funds the Council had requested. City of Denton City Council Minutes April 7, 2015 Page 2 Council Member Johnson commented on Consent Agenda Item S regarding the elimination of parking on Mulberry. He noted that every time parking was removed in the area that the problem became worse. He suggested looking for opportunities to replace those spaces somewhere else. Council Member Hawkins requested that Consent Agenda Item U be pulled for separate consideration to highlight it in the regular meeting Mayor Watts asked if the modular building for Consent Agenda Item A was a permanent structure. Phil Williams, General Manager-DME, stated it would house the influx of contractors and personnel for the CIP program for the next 3-5 years. It would be there longer than a temporary building and could be moved in the future if needed. Mayor Watts asked about Consent Agenda Item E in terms of the contract at 25% of the original contract. Williams stated that there was an increased amount of work to do due to an increased amount of construction. The cost was still favorable so they would like to extend the contract to keep that favorable cost. City Attorney Burgess noted that there was a substitute ordinance for Item 7B and should be noted in any motion for that item. 3. Work Session Reports A.ID 15-169 Receive a report, hold a discussion, and give staff direction regarding potential changes to Chapter 27, Article VI of the Code of Ordinances relating to vehicles for hire. Lt. David Mays, Denton Police Department, presented the details of the item. The original ordinance was created in 2001. State law required an ordinance to regulate transportation services but did not cover a transportation network company such as Uber. Uber differed from taxicabs as TNC did not own the vehicles operated, and the drivers were independent contractors and not employees. A provision of the current ordinance allowed temporary permitting for new service and technology was cited. Uber requested an audit process for driver background citing an in-house criminal background check. Currently the City did its own background checks and Uber wanted to do the checks in-house. However, they did not look beyond convictions while the City check looked at the time lapse since probation or parole to see that the person had maintained a conviction free lifestyle. Uber's screening did not meet the provision of the current ordinance. Council Member Roden questioned what other industries required background checks. Mays stated that a solicitor's permit for going door to door required a background check. City of Denton City Council Minutes April 7, 2015 Page 3 Council Member Roden stated that as a matter of policy, the company was checking backgrounds but with other industries, citizens allowed random people in their homes to do work etc. He felt it was a philosophical question as to what would be rational for this level compared to other industries. Mayor Watts stated that the felony offences included a broad category. Mays stated that the ordinance listed those offences which included even an attempted felony. City Attorney Burgess stated that the ordinance was based on State law and mandatory language that had to be regulated in terms of the transportation industry. Council discussed whether background checks should be required for Uber and taxicabs employees and whether the Uber license should be the same as the taxicab license. Recommendations - in order to provide Uber the same opportunity to operate in the City as other carriers Uber would need a probationary license under Section 27-176 with a revision to the current ordinance to more accurately reflect the TNC business model. As a condition of this probationary license, Uber must require their drivers to complete the revised permit application, subjecting these drivers to the same background screening as was performed for other vehicle for hire drivers. Council Member Roden asked about the scope for Uber in terms of place of business. Mays stated that Uber used Uber Dallas with no subset for Denton. Uber tracked all the rides taken so they would know if someone operating outside their location. Mayor Pro Tem Engelbrecht stated that he was interested in the insurance aspect of it including personal injury. Council discussed provisions of background checks and the licensing procedures. Consensus of the Council was to move forward with staff recommendation for changes in the current ordinance. B. SI15-0008 Receive a report, hold a discussion and give staff direction regarding local efforts to provide assistance to the homeless and those at-risk of becoming homeless. Danielle Shaw, Human Services Coordinator, stated that the presentation would be focused on efforts through the Denton County Homeless Coalition which did not receive any City funding but were a group of non-profits working on the homeless situations. The goals of the Coalition were (1) impact on the homeless population, (2) reduce number of homeless; (3) provide advocacy for the homeless, (4) build awareness to increase capacity to serve the issue; and (5) information/research to look at how to continuously improve services. Community efforts for housing the homeless — the basic services included street outreach whereby people went out to the homeless to help with services needed and shelters City of Denton City Council Minutes April 7, 2015 Page 4 (emergency/short Term) for temporary housing. Housing, such as transitional, supportive and permanent housing, helped assist with homeless prevention and rapid re-housing of the homeless. Supportive Services included health care, employment/income, emergency services, food, security, transportation, education, child care, and legal/document services. Funding Leveraged - Federal funding in the community included grants plus city of Denton money leveraged with the grant money to provide services. Community wide projects included Homeless Management Information System, data collection, Housing the Homeless Task Force, Denton Coordinated Access Network, and Bridging the Gap. Survey results — The 2015 point in time count showed that 27.2% of those surveyed were chronically homeless, 9.2% were veterans, 45.40% were employed homeless, and 20% had a serious mental illness. The estimated homeless in 2015 was 465 persons. Council reviewed the figures presented and gathered information on the background of the numbers. Vulnerability survey factors, health insurance figures, medical visits, time on the streets, and the percentage of veterans were reviewed. Council Member Roden asked how to equip the average citizen to assist the homeless. Shaw stated that the primary goal of the Denton CAN was to help with that type of marketing. Council Member Gregory questioned what the next step was in terms of policy recommendations staff had for Council to help with the issue. Shaw felt it was the facilitation of efforts to assist with grants and no policies that impeded the efforts. Council Member Johnson suggested considering issuing a challenge to private entities to help with funding for these efforts such as matching funding. Council Member Gregory suggested putting some of these ideas in the master planning and in budgets to help with the issue. Council Member Johnson suggested forming an ad hoc committee to discuss options for the homeless for the critical needs and to put a challenge out to the private sector to assist. Mayor Watts stated that goals and a plan to move forward would be needed. Council Members Gregory and Johnson volunteered for the committee. C. ID 15-284 Receive a report, hold a discussion, and give staff direction regarding an ordinance to adopt the 2012 International Fire Code (IFC) as amended by the City. City of Denton City Council Minutes April 7, 2015 Page 5 Laura Behrens, Fire Marshal, presented a time line regarding the review of the Code. Considerations when reviewing the document included COG recommended amendments, International Codes, local amendments, changes in environment/technology and best practices. There were four categories of consideration that included clarification, formalization of current practices, consistency between codes, and new practices to introduce. She reviewed amendments for gas and oil wells with language that followed the process of issuing permits. Language included on required fire protection systems at drilling and production sites consistent with the gas well ordinance in terms of fire protection. Crowd Manager— The current code required a trained crowd manger for events and the code did not define the training. The proposed amendments would outline the duties. Emergency and Standby Power System — the COG amendment would provide a list to match other areas of code or reference to a code provision that already existed. Solar Energy — a proposed local amendment would move the section to the International Residential Code. Automatic Sprinkler System— the proposed amendment was a clarification of the current local amendment. It clarified when certain construction would require the installation of an automatic sprinkler system. Council discussed the provisions and conditions when an automatic sprinkler system was required. Behrens continued that a second amendment dealt with connection for FDC connections. Standpipe System—the COG amendment allowed for more rapid deployment of hose lines to the fire area. Fire Alarm and Detection Systems — the COG amendment addressed the issue of low-lighting and AN equipment distracting from notification systems and devices. The second portion dealt with a COG amendment that defined the threshold at which portable buildings were considered a separate building. This would primarily affect portable buildings around schools. The DISD did not have any major concerns with this amendment at this time. Smoke and Heat Vents— the current ordinance allowed for a fire code official to require manual vents. This established a best practice. Fire Department Connections — The proposed amendment stated that an approved fire hydrant distance would be located within 100 feet of the fire department connection as the fire hose laid along an unobstructed path. The COG amendment would ensure access to the water supply. Chapter 10 - Means of Egress — All proposed changes were COG amendments consistent with the 2012 International Building Code. Chapter 11 - Construction Requirements for Existing Buildings — The local amendment would clearly define when this chapter was applicable and was consistent with International Building Code language. City of Denton City Council Minutes April 7, 2015 Page 6 Council discussion of the amendment suggested taking out the "change of ownership" and better definition of"repair". A suggestion was made to change "change of occupancy" to "change of ownership in the process". Fire Safety during construction and demolition — the COG amendment clarified the phase of construction when an access road was required. Fee Structure — a change was suggested in terms of an open burn permit issued under the Fire Code. For noncommercial applications the fee would be $100 per permit per day. The fee would be $25 for re-inspections associated with operations and construction permits. This would be consistent with the current practice of assessing re-inspection fees for routine inspections and in-line with the adopted fee schedule. Council discussed working with current technology to help with re-inspections such as photos for changes made. Behrens stated that the department had already starting that in limited instances. The next steps in the process would be to present the changes on the April 21 or May 5 Council agenda for approval with the ordinance being effective in June. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 4:35 p.m. to consider the specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A.ID 15-183 Consultation with Attorneys - Under Texas Government Code, Section 551.071; Deliberations Regarding Real Property- Under Texas Government Code, Section 551.072. Discuss, deliberate and receive information from staff and provide staff direction pertaining to the acquisition of property located north of Winston Drive and west of I-35E all in the Gideon Walker Survey, Abstract No. 1330, Cities of Denton and Corinth, Denton County, Texas for use in connection with DME's transmission expansion projects by the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the potential acquisition of the real property near the location 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 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. [ID 15-185] B. ID 15-186 Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys -Under Texas Government Code Section 551.071 Discuss, deliberate, and receive further information regarding the purchase of certain real property interest located in and around the Township II area, and generally south and west of Colorado Blvd., south of Foxhollow, north and east of Angelina Bend Dr. and west of Valley Creek Rd. Consultation with the City's attorneys regarding legal issues associated with the City of Denton City Council Minutes April 7, 2015 Page 7 potential acquisition and condemnation of the real property 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. (Township II Park Property Acquisition Project [Greenbelt Tracts 1,2,4] & [ID 15-187 Denton 68 Joint Venture]) C. ID 15-193 Deliberations regarding consultation with the City Attorney - Under Texas Government Code Section 551.071, Deliberations regarding Economic Development Negotiations -Under Texas Government Code Section 551.087. Receive a report and hold a discussion regarding legal and economic development issues regarding a proposed economic development incentive agreement for Business Air (BAM Denton Management Ventures, LLC). This discussion shall include commercial and financial information the City Council has received from Business Air which the City Council seeks to have locate, stay, or expand in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentive where the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. [ID 15-198] D.ID 15-194 Deliberations regarding consultation with the City Attorney - Under Texas Government Code Section 551.071, Deliberations regarding Economic Development Negotiations -Under Texas Government Code Section 551.087. Receive a report and hold a discussion regarding legal and economic development issues regarding a proposed economic development incentive agreement for West Gate Business Park (WGBP Investments, LTD). This discussion shall include commercial and financial information the City Council has received from West Gate Business Park which the City Council seeks to have locate, stay, or expand in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentive where the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. [ID 15-199] E. ID 15-260 Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys -Under Texas Government Code Section 551.071. Receive information from staff, discuss, deliberate, and provide staff with direction pertaining to (1) the potential acquisition of real property interests in the William Loving Survey, Abstract No. 759, and the William Neil Survey, Abstract No. 971, located generally in the 200 block of W. Mulberry St., City of Denton, Texas; and (2) the disposition of and/or potential sale or lease of real property interests in the William Neill Survey, Abstract 971, Denton County, Texas, located generally in the 200 block of N. Elm Street and in the 200 block of W. McKinney Street; and (3) the disposition of and/or the potential sale or lease of real property City of Denton City Council Minutes April 7, 2015 Page 8 interests in the Hiram Sisco Survey, Abstract No. 1184, Denton County, Texas, and located generally in the 200 block of E. McKinney Street, City of 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. (Central Downtown Denton property tracts) F. ID 15-263 Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys -Under Texas Government Code Section 551.071. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located in (1) the E. Puchalski Survey, Abstract 996, City of Denton, Denton County, Texas (located generally in the 1300 through 1400 block range of Underwood Street); and (2) the Samuel McCracken Survey, Abstract Number 817 and the J. Carter Survey, Abstract No. 274, City of Denton, Denton County, Texas (located generally within the 1300 through 4400 block range of Sherman Drive). Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests referenced 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. (Fire Station 3 & Fire Station 4) G.ID 15-287 Consultation with Attorneys -Under Texas Government Code, Section 551.071. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with the current Gas Well Ordinance, and proposed Gas Well Ordinance amendment, regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including: Constitutional limitations, statutory limitations upon municipal regulatory authority; statutory preemption and vested rights; impacts of federal and state law and regulations; impacts of gas well drilling upon protected uses and vice-versa; current and proposed extension to moratorium on drilling and production; other concerns about municipal regulatory authority or matters relating to enforcement of the Gas Well Ordinance, both current and proposed; settlement matters concerning gas well drilling in the City; surface development issues involving surface and mineral estates; and legal matters associated with a citizen's initiative ordinance and pending litigation styled Jerry Patterson, Commissioner, Texas General Land Office v. City of Denton Texas, Cause No. D-1-GN-14- 004628 currently pending in the 53rd District Court of Travis County and Texas Oil and Gas Association v. City of Denton, Cause No. 14-09833-431 currently pending in the 431st District Court of Denton County regarding hydraulic fracturing where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton City Council Minutes April 7, 2015 Page 9 H.ID 15-301 Consultation with Attorneys -Under Texas Government Code, Section 551.071. Consultation, discussion, deliberation, and receipt of information from the city's attorneys involving legal matters relating to possible annexations of property into the City of Denton where public discussion of these legal matters would clearly 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. 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. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A.ID 15-212 African Cultural Festival Day Mayor Watts presented the proclamation for African Cultural Festival Day. B. ID 15-211 National Community Development Week Mayor Watts presented the proclamation for National Community Development Week. C. ID 15-221 Arbor Day Mayor Watts presented the proclamation for Arbor Day. D.ID 15-265 Blind Side Week Mayor Watts presented the proclamation for Blind Side Week. 3. CITIZEN REPORTS A.ID 15-224 Willie Hudspeth regarding concerns about the Building Inspections process. Mr. Hudspeth was not present at the meeting. B. ID 15-261 Gerald DeMarsh regarding the Senior Center. Mr. DeMarsh had a prior request to Council to lift the restriction from his attending the Senior Center after an altercation at the Center. He requested again that Council lift the restriction from his going into the Senior Center. He was going to sue the City regarding the issue if needed. City of Denton City Council Minutes April 7, 2015 Page 10 C. ID 15-303 Willie Sellers regarding red light cameras. Mr. Sellers stated that he had received a red light camera citation but had not been noticed of the violation. He could not register his car due to the citation he had from the red light camera. The fine had increased from $75 to $102 due to the failure to pay in a timely manner. There were others in line with his same problem at the Motor Vehicle Department. He felt this was a money- making venture for the Police Department. He urged the Council to remove the cameras. 4. CONSENT AGENDA Council Member Ryan motioned, Council Member Gregory seconded to adopt the Consent Agenda and accompanying ordinances and resolutions with the exception of Item U. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-075 A.ID 15-075 Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the Buy Board Cooperative Purchasing Network for the acquisition of a Modular Office Building for Denton Municipal Electric to be located at 1659 Spencer Road, Denton, Texas; and providing an effective date (File 5646-awarded to Sustainable Modular Management, Inc. in the amount of$270,000). The Public Utilities Board recommends approval (5- 0). Ordinance No. 2015-076 B. ID 15-128 Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Agreement with National Joint Powers Alliance (NJPA), under Section 791.001 of the State of Texas Government Code, to authorize the City of Denton to utilize NJPA Contract# 042911-PRC currently for the purchase of property disposition and auction services; authorizing the expenditure of funds therefor; and declaring an effective date (File 5742-Interlocal Agreement with National Joint Powers Alliance). Ordinance No. 2015-077 C. ID 15-129 Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the National Joint Powers Alliance (NJPA) for property disposition and auction services for the City of Denton; and providing an effective date (File 5741-awarded to PropertyRoom.com in the three (3)year estimated amount of$300,000). Ordinance No. 2015-078 D.ID 15-174 Consider adoption of an ordinance approving a contract for the supply of Organic Catalyst for the City of Denton Composting Operation which is available from only one source and in accordance with Texas Local Government Code 252.022, such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5765-Purchase of Organic Catalyst for the City of City of Denton City Council Minutes April 7, 2015 Page 11 Denton Composting Operation awarded to Harvest Quest International, Inc. in the annual estimated amount of $50,000 for a three (3) year not-to-exceed amount of $150,000). The Public Utilities Board recommends approval (6-0). Ordinance No. 2015-079 E. ID 15-178 Consider adoption of an ordinance authorizing the City Manager to execute a second amendment to the contract between the City of Denton and ABC Professional Tree Services, Inc.; providing for the expenditure of funds therefor; and providing an effective date (RFP 4825-Second Amendment in the amount of$500,000 for a total contract award of $2,500,000). The Public Utilities Board recommends approval(6-0). Ordinance No. 2015-080 F. ID 15-184 Consider adoption of an ordinance authorizing the City Manager to execute a Mutual Aid Agreement by and between the City of Denton, Texas and the City of Garland Texas, that provides for terms and conditions under which each party would provide aid to the other in response to emergencies or natural disasters, in substantial conformity with the attached "Exhibit A"; authorizing the expenditure of funds therefor; and providing an effective date. Ordinance No. 2015-081 G.ID 15-185 Consider adoption of an ordinance authorizing the City Manager or his designee to exercise an option Contract of Sale by and between Winston 4 Development, LLC, as owner, and any others having an ownership interest, and the City of Denton, Texas, as buyer, to acquire fee simple to a tract or parcel of land being 17.027 acres, more or less, this parcel lying and being situated in the City and County of Denton, State of Texas, and being located in the Gideon Walker Survey, Abstract No. 1330, Cities of Denton and Corinth, Denton County Texas, for the purchase price of Two Hundred Seventy Thousand and No/100 US Dollars ($270,000.00) and other good and valuable consideration, as described in the Contract of Sale attached as Exhibit One; authorizing the expenditure of funds therefore; and providing an effective date. Ordinance No. 2015-082 H.ID 15-228 Consider adoption of an ordinance of the City of Denton, Texas, prohibiting left turns for any vehicle travelling westbound on Russell Newman Boulevard onto Loop 288; providing a repealer clause, providing a savings clause, providing for a penalty not to exceed $500 for violations of this ordinance shall be governed by Chapter 18 of the Code of Ordinances of the City of Denton, and providing for an effective date. Ordinance No. 2015-083 I. ID 15-253 Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2014-2015 Budget and Annual Program of Services of the City of Denton to allow for adjustments to the Tree Mitigation Fund of four hundred ninety- four thousand and seventy-eight dollars ($494,078), the Police Confiscation Fund of City of Denton City Council Minutes April 7, 2015 Page 12 fifty thousand dollars ($50,000), the Risk Retention Fund of six hundred thousand dollars ($600,000), and the General Debt Service Fund to include revenues and expenditures of one million four hundred thirty-four thousand seven hundred and forty-eight dollars ($1,434,748); declaring a municipal purpose; providing a severability clause; providing an open meetings clause; and providing for an effective date. The Audit/Finance Committee recommends approval(3-0). Ordinance No. 2015-084 J. ID 15-256 Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a contract with the Denton Independent School District for the 2015 Summer Food Service Program; authorizing the expenditure of funds to administer the program; and providing an effective date. Ordinance No. 2015-085 K.ID 15-264 Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Purchase Agreement, by and between the City of Denton, Texas (the "City"), as Buyer, and CCBV, LLC, a Texas limited liability company (the "Owner"), as Seller, to acquire fee simple title to a 0.535 acre tract, located in the Morreau Forrest Survey, Abstract No. 417, City of Denton, Denton County, Texas, generally located in the 200 block of North Mayhill Road, for the purchase price of Four Hundred Forty Thousand Dollars and No/Cents ($440,000.00), and other consideration, as prescribed in the Purchase Agreement (the "Agreement"), as attached to the ordinance and made a part thereof as Exhibit "A;" authorizing the expenditure of funds therefore; providing a savings clause; and providing an effective date. (Mayhill Road Widening and Improvements project: Parcel M085 - CCBV, LLC) Ordinance No. 2015-086 L. ID 15-266 Consider adoption of an ordinance of the City of Denton, Texas, amending certain provisions of chapter 33 of the Denton Code of Ordinances (the Denton Sign Code) by limiting the application of general sign regulations and imposing specific regulations with respect to political signs, consistent with state law; prescribing a maximum penalty for violation; providing for severability and savings; and establishing an effective date. Ordinance No. 2015-087 M.ID 15-268 Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Agreement with the North Central Texas Council of Governments (NCTCOG) under Section 791.001 of the State of Texas Government Code, and to authorize the City of Denton to participate in the NCTCOG Regional Traffic Signal Timing Program; authorizing the expenditure of funds therefor; and declaring an effective date (File 5792-in the estimated amount of$36,960). Ordinance No. 2015-088 N.ID 15-269 Consider adoption of an ordinance accepting competitive bids by way of a Cooperative Purchasing Program Participation Agreement with the City of Frisco City of Denton City Council Minutes April 7, 2015 Page 13 under section 271.102 of the Local Government Code, for the purchase of respiratory protective equipment and parts for the City of Denton Fire Department; providing the expenditure of funds therefor; and providing and effective date (File 5763-awarded to Hoyt Breathing Air Products for a three (3) year total amount not-to-exceed $555,500). Ordinance No. 2015-089 O.ID 15-270 Consider adoption of an ordinance approving a contract for the purchase of one (1) Haul-All M-class single stream 14 cubic yard side loading refuse collection body for the City of Denton Parks department which is available from only one source and in accordance with Texas Local Government Code 252.022, such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5794-awarded to Haul All Equipment, Ltd. in the amount of$73,682.50). Ordinance No. 2015-090 P. ID 15-271 Consider adoption of an ordinance approving a professional services agreement for the development of a City of Denton Public Art Master Plan which is available from a local expert source, which staff has recommended as the best value procurement and in accordance with Texas Local Government Code 252.022 (4), such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5795-awarded to Margaret Chalfant in an amount not to exceed $80,000). Ordinance No. 2015-091 Q.ID 15-272 Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of shoot-on connectors for Denton Municipal Electric (DME); and providing an effective date (RFP 5709-awarded to Techline, Inc. in the three (3)year not-to-exceed amount of$150,000). Ordinance No. 2015-092 R. ID 15-273 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the University of North Texas for the purpose of hosting the African Cultural Festival; providing for the expenditure of funds; and providing for an effective date. ($550) Ordinance No. 2015-093 S. ID 15-277 Consider adoption of an ordinance of the City of Denton, Texas prohibiting parking on the north side of East Mulberry Street from its intersection with South Industrial Street to its intersection with South Austin Street; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; providing that violations of this ordinance shall be governed by Chapter 18 of the Code of Ordinances of the City of Denton, and providing for an effective date. The Traffic Safety Commission recommends approval(5-0). City of Denton City Council Minutes April 7, 2015 Page 14 Ordinance No. 2015-094 T. ID 15-283 Consider adoption of an ordinance of the City Council of Denton, Texas authorizing the City Manager to execute a Local Transportation Project Advance Funding Agreement (LPAFA) for a Congestion Mitigation and Air Quality (CMAQ) Improvement Project (construction of sidewalks for the Wilson and Pecan Creek Elementary School areas) with the Texas Department of Transportation; authorizing the expenditure of funds therefor; and providing an effective date. Approved the minutes listed below. V.ID 15-295 Consider approval of the minutes of February 2, February 3, February 10, and February 17, 2015. Council considered Consent Agenda Item U. Resolution No. R2015-011 U.ID 15-285 Consider approval of a resolution of the City of Denton, Texas, in opposition to Senate Bill 343 and any other legislation which would erode the authority of a home rule municipality; and providing for an effective date. Council Member Hawkins motioned, Council Member Gregory seconded to approve the resolution. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION - CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS Ordinance No. 2015-095 A.ID 15-187 Consider adoption of an ordinance of the City of Denton, Texas determining the public use, need, and necessity for the acquisition of fee title to properties described in the attached Exhibit "A" and located in and around the Township II area generally south and west of Colorado Blvd., south of Foxhollow, north and east of Angelina Bend Dr. and west of Valley Creek Rd., for park land; authorizing the City Manager and City Attorney, or their respective designees, to acquire the property including making initial and final offers, authorizing the use of the power of eminent domain to condemn the properties; and authorizing the City Attorney, or her designee, to file eminent domain proceedings, if necessary, and providing an effective date. (Township II Park Property Acquisition project: Greenbelt tracts 1, 2, and 4, Greenbelt North, Street, and West- Denton 68 Joint Venture [ID 15- 186]) Larry Collister, Deputy City Attorney, presented the information concerning the property under consideration. He noted that approval of the subject ordinance authorized staff to pursue the acquisition of the three remaining tracts identified for park land and acquire the property for public use, voluntarily, from the subject landowners prior to moving forward with the acquisition by eminent domain, in the event the owner(s) could not be located. He presented the legal City of Denton City Council Minutes April 7, 2015 Page 15 description of the property on the overhead screen while the motion for consideration was being made. Council Member Gregory motioned and Mayor Pro Tem Engelbrecht seconded the following: I motion that the city of Denton, Texas authorize the use of the power of eminent domain to acquire fee simple title to a 6.458 acre tract of a 0.361 acre tract and a 3.384 acre tract which are located in and around the Township II area, generally south and west of Colorado Blvd., south of Foxhollow, north and east of Angelia Bend Dr., and west of Valley Creek Rd., in the R. H. Hopkins Survey, Abstract No. 1694, Denton, Denton County, Texas and more particularly described on Exhibit A to the ordinance now under consideration and on the overhead screen being now displaced to the audience for delivering park uses and recreation to the Township 11 area." On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. 6. ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2015-096 A.ID 15-198 Consider adoption of an ordinance of the City of Denton, Texas approving an Economic Development Program Grant Agreement between the City of Denton and BAM Denton Management Ventures, LLC; and providing an effective date (Business Air). Aimee Bissett, Director of Economic Development, stated that this ordinance would adopt a grant agreement with Business Air at Denton Enterprise Airport and described the functions of the business and the purpose of the grant agreement. The project involved a $9.5 million expansion project. The Economic Development Partnership Board considered the incentive agreement and recommended approval of a Chapter 380 grant equal to seventy percent of the increase in property tax revenues on the improvements to the building and new business personal property up to a maximum of $9,500,000 in increased valuation as determined by the Denton Central Appraisal District for a period of two years. Business Air could also extend the length of the grant by attracting additional investment in the form of business aircraft based at its facilities at Denton Enterprise Airport by a specified date and investment level thresholds. In addition to a grant extension, Business Air would receive five percent of the increase in taxable valuation attributable to these new business aircraft for the duration of the grant extension (1) if increased valuation in new business aircraft was at least $15,000,000 but less than $50,000,000 by December 31, 2017, the grant would extend to a period of four years and would include five percent of the increased new business aircraft valuation amount for the grant period , (2) if increased valuation in new business aircraft is at least $50,000,000 but less than $80,000,000 by December 31, 2020, the grant would extend to a period of seven years and would include five percent of the increased new business aircraft valuation amount for the grant period and (3) if increased valuation in new business aircraft is at least $80,000,000 by December 31, 2022, the grant would extend to a period of nine years and would include five percent of the increased new business aircraft valuation amount for the grant period. The grant agreement required Business City of Denton City Council Minutes April 7, 2015 Page 16 Air to invest a minimum of$5,000,000 in building, site and other improvements at its facilities for this project by December 31, 2016. Council Member Johnson stated that Denton did not have a 4A or 4B status to attract businesses such as this and that this was a very creative way to attract the business. He questioned why these programs were necessary. Bissett stated that several surrounding communities had 4A or 4B status which meant they could use a cash incentive fund for economic development. They could give a cash grant to help close a deal. Denton did not have that but did have a Chapter 380 agreement to spend tax dollars for economic development. This was performance based on new business. Council Member Johnson motioned, Council Member Hawkins seconded to adopt the ordinance. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-097 B. ID 15-199 Consider adoption of an ordinance of the City of Denton, Texas approving an Economic Development Program Grant Agreement between the City of Denton and WGBP Investments, LTD; and providing an effective date (West Gate Business Park). Aimee Bissett, Director of Economic Development, stated that this was another incentive grant agreement for consideration. West Gate Business Park was a group of local developers who were investing in an industrial manufacturing space. The anticipated capital investment was $24 million. They had requested an incentive as competitors were able to offer more competitive proposals because of their incentive program. This development would bring in a higher quality of development. The Economic Development Partnership Board recommended approval with a minimum of 60% with an additional 5% for a national headquarters and/or 10% for support of major employers not to exceed 75% of City ad valorem taxes attributable to improvements for a period of ten years commencing the first year following receipt by Grantee of the certificate of occupancy for the property. Council Member Johnson motioned, Council Member Ryan seconded to adopt the ordinance. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-098 C. ID 15-236 Consider adoption of an ordinance of the City of Denton, Texas, authorizing the approval of a professional legal services agreement by and between Terry Morgan & Associates, P.C. and the City of Denton, Texas; providing for the expenditure of funds; and providing for an effective date. Anita Burgess, City Attorney, stated that the City had been working with Terry Moran for gas well negotiations. This agreement would provide additional money for the contract. City of Denton City Council Minutes April 7, 2015 Page 17 Mayor Pro Tem Engelbrecht motioned, Council Member Roden seconded to adopt the ordinance. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. D.ID 15-240 Consider nominations/appointments to the City's Boards and Commissions: Health & Building Standards Commission and Human Services Advisory Committee. Council Member Johnson nominated Glen Farris to the Health & Building Standards Commission. Council Member Roden motioned, Council Member Gregory seconded to approve the nomination. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-099 E. ID 15-251 Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $98,925,000 in principal amount of "City of Denton Certificates of Obligation, Series 2015" (including up to $8,258,000 for General Government activities, up to $10,542,000 for Solid Waste Fund activities, and up to $80,125,000 for Electric, Water and Wastewater Fund activities); authorizing the issuance of the Certificates; delegating the authority to certain City officials to execute certain documents relating to the sale of the Certificates; approving and authorizing instruments and procedures relating to said Certificates; and enacting other provisions relating to the subject. Chuck Springer, Director of Finance, stated that the item would authorize the issuance, sale and delivery of$98 million for Certificates of Obligation. Council had already adopted an ordinance which gave the authority for the Notice of Intent to Issue the certificates. The certificates would match the life of the assets so there were different terms for the certificates. This was a parameters ordinance which authorized the sale at a later date. Staff recommended the sale of $8,100,000 in COs for General Government projects plus related issuance costs, $10,350,000 in COs for Solid Waste projects plus related issuance costs and $3,000,000 in COs for Water projects plus related issuance costs. The plan was to issue the certificates in May but it could be moved back if necessary due to market conditions. Council Member Roden asked for an explanation of the difference between Certificates of Obligation and General Obligation bonds. Springer stated that General Obligation bonds pledged property taxes for repayment and were approved by voters. Certificates of Obligation pledged revenue and a property tax pledge. Certificates of Obligation required a Notice of Intent in the newspaper before they could be issued. City of Denton City Council Minutes April 7, 2015 Page 18 Council Member Roden asked for an explanation on how the debt would be paid. Springer stated that the principle would be paid on after issuance and that there would be a level debt schedule for payment with debt payoff every year with no carryover. Mayor Pro Tem Engelbrecht motioned, Council Member Roden seconded to adopt the ordinance. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-100 F. ID 15-252 Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $49,120,000 in principal amount of "City of Denton General Obligation Refunding and Improvement Bonds, Series 2015"; authorizing the issuance of the Bonds; delegating the authority to certain City officials to execute certain documents relating to the sale of the Bonds; approving and authorizing instruments and procedures relating to said Bonds; and enacting other provisions relating to the subject. Chuck Springer, Director of Finance, reviewed the amount of the debt and the refunding of debt for savings on outstanding debt. The second part of the General Obligation bond issuance was for street improvements, public safety facilities, drainage and parks system improvements. This was a parameters ordinance with a maximum amount of sale of $49.12 million, savings of at least 4% and ended October 2015. The plan was to sell the bonds on May 181h depending on market conditions. Council Member Hawkins motioned, Council Member Ryan seconded to adopt the ordinance. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. 7. PUBLIC HEARINGS Ordinance No. 2015-101 A. S 14-0008 Hold a public hearing and consider a Specific Use Permit (SUP) for a Group Home on approximately 0.391 acres of land generally located on the west side of N Elm Street near the intersection with Ferguson Street. The subject property is located within a Downtown Commercial General (DC-G) zoning district (S 14-0008, Wheeler House). The Planning and Zoning Commission recommends approval (5-1) with a condition. Aimee Bissett, Interim Director of Planning and Development, presented the details of the proposal. This would be a Special Use Permit for Wheeler House, a group home on Elm Street. She presented the zoning map, background of the application, proposed use and site plan. The project was consistent with the Denton Plan 2030. The criteria for approval and notification map were reviewed. The Planning and Zoning Commission recommended approval with the City of Denton City Council Minutes April 7, 2015 Page 19 condition that the Specific Use Permit would expire if not renewed by the Council on or before 10/29/2033 or on termination of the applicant's current lease, whichever came first. Staff recommended approval. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Pat Smith, 1417 Cambridge Lane, Denton, 76209—applicant- spoke in favor. Council Member Roden asked if Serve Denton was agreeable with the Planning and Zoning Commission recommendation. Smith stated that they were but that it was not great. The Specific Use Permit was tied to the lease and the lease was a 20 year initial term with two 10 year additional terms. Council Member Johnson stated that some of the Commission's discussion centered on 18 years for a new Specific Use Permit. Smith stated the 18 years was tied to when the lease expired. Some Commission members were concerned about an indefinite Specific Use Permit and put a limit to tie it to the lease. Council Member Johnson questioned if a Specific Use Permit could be tied to a tenant. City Attorney Burgess stated that it could be tied to a lease but not to a tenant. Council Member Johnson stated that if the tenant had renewal options which were executed, the Specific Use Permit would still be in effect and the same thing would be accomplished without having that drop dead date. If the lease was not renewed, the Specific Use Permit would go away. City Attorney Burgess stated that Council could go in that direction if they wanted Council Member Hawkins agreed with the suggestion to restructure the Specific Use Permit provision. Council Member Ryan asked about the police station at the facility. Smith stated that they were working through the technologies and would come back to Council at a later date for approval. Mayor Watts stated that he was looking forward to seeing more of these facilities in the City in future years. Glen Fogg, 809 N. Elm, Denton, 76201 — spoke in favor. Perry McNeill, 1508 Gatewood, Denton, 76205 - spoke in favor Melissa Bradley, 805 Bolivar, Denton, 76201 — spoke in favor Kenton Brice, 7621 Hinkley Oak Drive, Denton, 76208— spoke in favor. City of Denton City Council Minutes April 7, 2015 Page 20 Lee Allison, 4401 N. I35, Denton, 76207— spoke in favor Deborah Casimo, 1107 Bolivar, Denton, 76201 — spoke in opposition Comment cards were submitted by the following: Christina Trevino, 728 N. Elm, Denton, 76201 —in support Ruth Ann Savana, 718 Crescent, Denton, 76201 —in support Rachel Sampson, 1126 Avenue A, Denton, 76201 —in support Roy Metzler, 1205 Polo Verde, Denton, 76210 in support Heather Quinn, 608 Cordell, Denton, 76201- in support Ricky and Marsha Grunden, 9620 Jim Christal, Krum, 76249—in support Stan Morton, 43 Wellington Oaks Circle, Denton, 76210—in support Nancy DiMarco, 8425 Stallion, Denton, 76208—in support Bettye Myers, 2913 Croydon, Denton, 76209—in support Priscilla Sanders, 408 Hollyhill, Denton, 76205—in support Harrison Wicks, 3111 Darby Lane, Denton, 76207—in support Additional speakers included: Barney Casimo, 1107 Bolivar, Denton, 76201 — spoke in opposition Tom Evenson, 1605 W. Windsor, Denton— spoke in favor The Mayor closed the public hearing. Mayor Pro Tem Engelbrecht motioned, Council Member Gregory seconded to adopt the ordinance without the condition as noted by the Planning and Zoning Commission. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-102 B. S 13-0007 Hold a public hearing and consider a Specific Use Permit (SUP) to allow for expansion of the Municipal Solid Waste Landfill and associated Solid Waste and Recycling ground services operations and equipment storage on approximately 156.9 acres. The subject property is zoned Industrial Center General (IC-G) and is generally located north of Spencer Road and east of Mayhill Road. The Planning and Zoning Commission recommends approval (5-2)with conditions. Aimee Bissett, Interim Director of Planning and Development, stated that this was a request for a Special Use Permit for a sanitary landfill and heavy manufacturing use. The purpose of this SUP request was to permit expansion of the landfill onto the approximately 156.9 acre subject property acquired by Solid Waste. The proposed request also included re-utilizing an existing structure on the property labeled Biodiesel Facility Building No.9 on the site plan for Heavy Manufacturing uses. Sanitary Landfills and Heavy Manufacturing require approval of an SUP in the IC-G zoning district per Subchapter 35.5.7.2 of the Denton Development Code. She presented the location map, current zoning, and background on the site. The 2015 request was expansion of the landfill and a Specific Use Permit to cover a heavy manufacturing use in City of Denton City Council Minutes April 7, 2015 Page 21 Building 9. The criteria for the Specific Use Permit were presented along with the notification map. The Planning and Zoning Commission recommended approval with two conditions (1) a Type D buffer would be constructed along the boundary on the western and northern property line, except on the portions of the boundary that have existing structures and (2) the buffer shall be constructed prior to using the property for depositing debris. Mayor Pro Tem Engelbrecht asked about the difference in acreage as listed on the agenda and the ordinance. Bissett stated that the original amount was the larger acreage but what was needed now was the smaller acreage. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Marilyn Haggard, 5300 Whiting Way, Denton, 87208 - spoke in opposition Catherine Wages, 3915 Gayla, Denton, 76208— spoke in opposition Youvonna Mutzinger, 3919 Gayla, Denton, 76209— spoke in opposition James Griffin, 5304 Kayanne, Denton, 76209— spoke in opposition Joe Doye, 5956 Sherry Lane, Dallas— spoke in opposition Mike Cheves, 900 Jeffrey, Denton, 76209— spoke in opposition Comment cards were submitted by the following: Wilma Haggard, 1900 S. Mayhill, Denton, 87208—in opposition Barbara Haggard Holeman, 3694 State Highway 59N, Montague, 76251 —in opposition Robert Donnelly, 3900 Quail Creek, Denton, 76208—in opposition Ellen Levings, 2900 Spencer Road, Denton, 76208—in opposition Adam Arnold, 318 W. Congress, Denton 76201 —in opposition Jennifer Gibbs, 318 W. Congress, Denton, 76201 —in opposition Daniel Davis, 1717 Oak Tree, Denton, 76209—in opposition Pam Gibbs, 2020 Kendolph, Denton, 76205—in opposition An additional speaker, Barbara Haggard Holeman, stated she was in opposition. The Mayor closed the public hearing. Council Member Johnson suggested adding a provision that the landscaping run the entire length south to north with a minimum Type D buffer. Council Member Gregory motioned, Mayor Pro Tem Engelbrecht seconded to adopt the ordinance with the following provisions: (1) a Type D buffer would be constructed along the boundary on the entire western property line of the landfill and along the northern property lines of the lands subject to the zoning case, except on the portions of the boundary that were adjacent to 1001 South Mayhill Road, Buildings 101 and 102 and (2) the buffer shall be constructed prior to using the property for depositing debris. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson City of Denton City Council Minutes April 7, 2015 Page 22 "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts it Motion carried unanimously. Ordinance No. 2015-103 C. ID 15-241 Hold a public hearing and consider adoption of an ordinance granting approval, in accordance with Chapter 26 of the Texas Parks and Wildlife Code, of the non-park use of a part of Quakertown Park for the purpose of installing and maintaining a sanitary sewer line for the Senior Center connector of the Pecan Creek Interceptor III Project; providing for a notice by the City of Denton, Texas of non- park use for installation and maintenance of sanitary sewer line and reservation of easement in the event of sale of park; and providing an effective date. The Parks, Recreation and Beautification Board recommends approval(7-0). Jim Mays, Park Superintendent, stated that this public hearing was a requirement of Chapter 26 of the Texas Parks and Wildlife Code. The public hearing was to make certain that there was no feasible use for the property. Water Utilities required part of Quakertown Park for installing and maintaining a sanitary sewer line for the Senior Center connector of the Pecan Creek Interceptor. The public hearing for Item D was included with this public hearing. Mays stated that Item D involved a non-park use of a portion of North Lakes Park for a water line and sanitary sewer line for the Vista Del Arrory Office Offsite Utility Project. The Mayor opened the public hearing for Items C and D. No one spoke during the public hearings. The Mayor closed the public hearings for C and D. Council Member Johnson motioned, Council Member Ryan seconded to adopt the ordinance for Item C. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-104 D.ID 15-242 Hold a public hearing and consider adoption of an ordinance granting approval, in accordance with Chapter 26 of the Texas Parks and Wildlife Code, of the non-park use of a part of North Lakes Park for the purpose of installing and maintaining a water line and a sanitary sewer line for the Vista Del Arroyo Offsite Utilities Project; providing for a notice by the City of Denton, Texas of non-park use for installation and maintenance of a water line and sanitary sewer line and reservation of easement in the event of sale of park; and providing an effective date. The Parks, Recreation and Beautification Board recommends approval(7-0). The public hearing for this item was held in conjunction with Item C. Council Member Johnson motioned, Mayor Pro Tem Engelbrecht seconded to adopt the ordinance. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory City of Denton City Council Minutes April 7, 2015 Page 23 "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-105 E. Z14-0010 Hold a public hearing and consider an initial zoning of Neighborhood Residential 4 (NR-4) on approximately 17.76 acres and Neighborhood Residential 6 (NR-6) on approximately 22.57 acres of land on a tract totaling 40.33 acres in size. The subject property is generally located on the west side of Cooper Creek Road, approximately 750 feet south of Silver Dome Road and 1,250 feet north of Fishtrap Road (Z14-0010, Windsor Oaks). The Planning and Zoning Commission recommends approval(6-0). Aimee Bissett, Interim Director of Planning and Development, reviewed the request for Windsor Oaks. She provided information on the location map and background information on the property, criteria for approval, and notification map. The Planning and Zoning Commission as well as staff recommended approval. The Mayor opened the public hearing. Randall Smith, representing applicant, spoke in favor. The Mayor closed the public hearing Council Member Hawkins motioned, Council Member Roden seconded to adopt the ordinance. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2015-106 F. ID 15-255 Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, adopting Standards of Care for Youth/Teen Programs administered by Denton's Parks and Recreation Department pursuant to Texas Human Resources Code Section 42.041 (b) (14); and providing an effective date. The Parks, Recreation and Beautification Board recommend approval 7-0. Kathy Schaeffer, Program Area Manager, stated that a public hearing was required by the Texas Human Resources Code in order to adopt the Standards of Care for the City's Youth/Teen Program. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing City of Denton City Council Minutes April 7, 2015 Page 24 Council Member Roden motioned, Council Member Ryan seconded to adopt the ordinance. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. G.ID 15-262 Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas designating portions of certain retail establishments, public buildings, and food establishments as nonsmoking areas; providing notification requirements; prohibiting smoking in designated nonsmoking areas; providing exceptions; providing penalties; providing a severability clause, repealing ordinance 2012-367, and any other ordinance in conflict herewith; and providing for an effective date. Lindsey Baker, IGN/PIO, presented the details of the item. She noted that the City had received much feedback from the public regarding the proposed revisions. The City Manager's Office had received 60 phone calls, 3 emails in favor of the smoking ban plus other individual emails. Most of the emails were unique senders with some of them repeat senders. She reviewed the current ordinance, the draft ordinance provisions and a discussion of definitions. The proposed ordinance would (1) add bars to the smoking ban and remove that exception, (2) prohibit E-cigs in all non-smoking locations; (3) prohibit the sale of E-cigs to minors, (4) prohibit smoking within 30 feet of parks and recreation facilities, (5) prohibit smoking within 30 feet of public entrances where smoking was prohibited, (6) defined E-cigs vape shops and (7) extended the exemption to vape shops. She reviewed the definitions for patio, cigar bar and tobacco and vape shops. Council Member Roden asked about the definition of patio and if there were any suggested changes to it. Baker reviewed the current definition of patio as well as the definition from Richardson and Ohio. Council Member Roden suggested changing the definition of outdoor space to one that generally was used for dining or recreation that adjoins a building and typically contained an improved surface. Council Member Gregory stated that in a prior discussion, there was a bingo parlor that had had asked for a 3 year extension to provide for the solid physical barrier. The current ordinance also provided for 3 years to build a barrier for the effective date of the new ordinance. He felt that was not the intent and that the intent was to have the conversion completed by 2016. The proposed ordinance would need to be adjusted to not give another 3 years to complete. Baker reviewed Cigar Bar as defined in the current definitions. Council Member Johnson stated that if a cigar bar was going to be defined with percentages he had no clue on what would be appropriate for percentages. Baker stated that the wording was recommended by the American Heart Association but was not included in the Denton ordinance. City of Denton City Council Minutes April 7, 2015 Page 25 Council Member Gregory stated that with percentages for enforcement, the City would have to audit books regularly or on a complaint basis. Baker stated that the tendency was to do it on a complaint basis but with the new ordinance with new standards a base line might have to be set. Council discussed the concept of percentages for a cigar bar, the clarification of humidification systems for cigar bars and whether a permit was currently issued for a cigar bar. Baker continued with the definition of tobacco/vape shop, reviewing the current definition and the American Heart Association recommendation. City Attorney Burgess stated that Council should work off the documents in the agenda backup and not off the redlined version. In terms of the percentages issue, the ordinance was criminal in nature and violations would be criminal. As Council moved forward on the enforcement issues there would have to be proof beyond a reasonable doubt of all of the elements. With these kinds of percentages, the evidence would include an audit from the business. As Council thought about enforcement and how to prove the elements it should be remembered that the burden would be to prove beyond a reasonable doubt which without a warrant or the cooperation of the business would be difficult. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Korey Stamp, 2121 Stella St., Denton, 76201 — support Council Member Hawkins asked Stamp if he felt that he had to work in a smoking environment or could he go somewhere else to work. Stamp felt that he could not leave due to job conditions because when you start out as a door person and move up through the ranks, it could take years if you had to go somewhere else to start over. Travis Barton, 613 W. Hickory St. Apt. 4, Denton, 76201 - opposed Susan Vaughn, 1330 Phoenix, Denton, 76205 - opposed Charlie Nolet, 119 W. Hickory St., Denton, 76201 - opposed Council Member Ryan asked Nolet if he would be in favor of posing a sign on the door of his establishment regarding smoking. Nolet replied that he already had a sign posted. Council Member Johnson stated that this was a complicated issue on both sides and questioned Nolet what percentage of his employees smoked. City of Denton City Council Minutes April 7, 2015 Page 26 Nolet replied probably more than 50%. There were only a few bars left that allowed smoking and they were containing the smoke in an area rather than outside by non-smokers. Lloyd Banks, 1009 Ave C., Denton, 76201 - opposed Daniel Davis, 1717 Oak Tree Dr., Denton, 76209 - opposed Nancy DiMarco, 8425 Stallion, Denton, 76208 - in support of the ban Council Member Hawkins questioned DiMarco where the government role was in health issues. DiMarco stated that if someone chose to smoke that was their choice. The problem was when it overlapped on someone's inability to choose. Michael Hennin, 724 Thomas St., Denton, 76201 - in support Joe Pat Hennin, 3324 Brooke St., Denton, 76207 - in support Council Member Johnson stated that bartenders had choices on whether to work in a smoking environment but entertainers did not always have those choices. He questioned Hennin regarding the percentages of bars he performed that allowed smoking. Hennin stated that he made a choice and rarely played at a smoking bar. However, there were those who could not make that choice. Most of his colleagues preferred a non-smoking environment. Haile Gibbs, 2532 Plain Trail, Haslet, 76052 - in support Kelsey Burnstein, 8202 Polar Dr., Austin, 78757 - support Council Member Engelbrecht questioned Burnstein in terms of how many other cities had percentages for cigar bars. Burnstein stated that the Dallas ordinance had percentages did as well as the Plano ordinance. Christopher Walker, 805 Emery St., Denton, 76201 - support Patricia Marciatto, 2011 Tori Oak Trail, Corinth, 7610 - opposed Kay Kamm, 8900 John W. Carpenter Fwy., Dallas - support John Bain read a statement provided by Dr. Masciarelli- opposed Dr. Hershel Vorhees, 1334 Ruidosa Ct., Denton, 76205 - support Pam Gibbs, 2020 Kendolph, Denton, 76205 - opposed but support not selling E-cigs to minors Jennifer Gibbs, 318 W. Congress, Denton, 76201 - opposed Beyonca DeLeon, 615 E. University Dr., Denton, 76209 - opposed Tara Linn Hunter, 118 Bernard, Denton, 76201 - support Alfredo Avila, 2100 Spencer Rd. Apt 510, Denton, 76205 - support Ed Soph, 1620 Victoria Dr., Denton, 76209, in support Comment cards were submitted by the following: Arianna Waitz, 832 Abbots Lane, Denton, 76205— opposed Calvin Lang, 2120 Mitchell, Krum, 76240—opposed City of Denton City Council Minutes April 7, 2015 Page 27 Paul Rogers, 4181 Silver Dome, Denton, 76208— opposed Maegan Baugh, 2106 Preston, Denton, 76209— opposed Blake McDaniel, 3405 Cactus, Denton, 76201 — opposed Scott Williams, 7911 Airfield, Sanger, 76266—opposed Matthew Woods, 1604 N. Ruddell, Denton, 76209—opposed Charlie Nolet, 708 Thomas St., Denton, 76201 - opposed Edgar Kautsch, 1606 E. McKinney, Denton, 76201 - opposed Christina Jones, 325 E. Windsor, Denton, 76208 - opposed Katlyn Woodruff, 1408 Teasley Ln. 93914, Denton, 76205 - opposed Buddy Rowe, 700 Coronado Dr., Denton, 76209 Lindsey T., 708 Thomas St., Denton, 762014—opposed Laura Crow, 3232 N. Locust 9715, Denton, 76207 - opposed Estaban Rameriz, 2917 Croydon St., Denton, 76209 - opposed Taylor Haywood, 195 Rosewood Drive, Denton, 76227 - opposed Casey McGowen, 990 West Highland St., Denton, 76201 - support Adam Arnold, 318 W. Congress St., Denton, 76201 - opposed Carey Bilyeu, 2019 N. Locust, Denton, 76209 - opposed James Bostick, 1610 Highland Park Rd., Denton, 76205 - opposed Colette Johnson, 3911 Morse St., Denton, 76208 - support Keely Briggs, 3108 Broken Bow, Denton, 76209 - opposed Kamon Conner, 908 N. Austin St., Denton, 76201 - support Jaqulyne Coleman, 908 N. Austin St., Denton, 76201 - support Ellen Painter, 909 Garnet Cove, Oak Point, 75068 - support Megan Gibbs, 160 E. Vista Ridge Mall Drive 9316, Lewisville, 75067 - support Laura Valentino, 3815 Stuart Rd. Apt 36, Denton, 76209 - support Elizabeth Wachira, 1017 Canyon Drive, Justin, 76247 - support Anna Olson, 2320 Taylor Street 923312, Dallas, 75201 - support Donald Poer, 1716 Eagle Dr, Denton, 76201 - support Melissa Poliseno, 2609 Loon Lake Rd, Denton, 76210 - support Scott Poliseno, 2609 Loon Lake Rd, Denton, 76210 - support Taylor Bailey, 811 Welch, Denton, 76201 - support Austin Hendren, 7104 Frost Lane, Denton, 76210 - support Stan Morton, 43 Wellington Oak Circle, Denton, 76210 - support Tabitha Millsop, 501 Denton St., Sanger, 76266 - support Cortney Nicolato, 1840 Meadows Ave., Lantana, 76226 - support Kelly McArthur, 113 Las Colinas Trl, Crossroads, 76227 - support Corey Nunns, 1408 Teasley 9221, Denton, 76205 - opposed Richard Underwood, 615 E. University, Denton, 76209 - opposed Julie Elliott, 1803 N. Elm, Denton, 76201 - opposed Erin Rener, 1508 Morse St., Denton, 76205 - opposed Brook Johnson, 1680 Stanford, Denton, 76210 - opposed Travis Johnson, 1680 Stanford, Denton, 76210 - opposed Sonnie Shelton, 108 W. Oak St. Ste. C, Denton, 76201 - opposed Matthew Clark, 1001 Wintercreek Dr., Denton, 76201 - opposed Ethan Sharp, 1605 N. Ruddell St., Denton, 76209 - opposed Andy Odom, 1208 Piping Rock, Denton- support Kelsey Kinser, 3504 Shadow Trail, Denton, 76207— support Harrison Wicks, 3111 Darby Lane, Denton, 76209 - support City of Denton City Council Minutes April 7, 2015 Page 28 Additional speakers included: Youvonna Mutzinger 3919 Gayla, Denton, - opposed Rhonda Love, 1921 Hollyhill, Denton— support Jennifer Lane, 1526 Willowwood, Denton - support Buddy Rowe, 700 Coronado, Denton, 76209— opposed Billy Poer, 1716 Eagle, Denton, 76201 — support Scott Poliseno, 2609 Loon Lake Road, Denton, 76210— support Council Member Johnson stated that he was having a problem regarding the differentiation of what this was about. If it was about work place safety and the employee who did not have a choice on where to work, it was one thing. If it was about taking an action to reduce the overall smoking rate in the nation and be an overall healthier state, that was another thing. His question to Poliseno was whether the employees at Cigar Frogs mattered. Poliseno stated that it was difficult to determine where to draw the line. It came down to changing social norms and future generations. Council Member Johnson asked Poliseno to respond to his question as he was talking about cigar smoke versus cigarette smoke. He had not found any data that indicated that secondhand cigar smoke was not harmful. So his question was did the employees as Cigar Frogs matter as that business would not be affected by the proposed smoking ordinance. Poliseno stated yes that they mattered and he would rather see the business close than affect the employees. Andy Bostwick, 1610 Highland Park Road, Denton - opposed Lynn Taylor, 119 W. Hickory, Denton - opposed Scott Campbell, 420 Sherman Drive, Denton—opposed The Mayor closed the public hearing. Mayor Pro Tem Engelbrecht stated that a comment had been made that secondhand smoke was harmful but people wanted to make their own choices. He had asked the City Attorney if attempting suicide was an offense. City Attorney Burgess stated that an attempted or successful suicide was not an offense. Mayor Pro Tem Engelbrecht stated that he had asked that question because of the health issue. People had a choice. He had a problem with the comment of a question of choice when it came to public health. Council Member Johnson stated that he was frustrated that the issue was being discussed. Two years ago a citizens advisory committee spent time considering the issue and presented a recommendation to Council. There was not a citizen committee to help with the decision on this revision. People had made financial decisions based on the original ordinance. If the ordinance before was to give people time to change their business model, it should have said that. If the City of Denton City Council Minutes April 7, 2015 Page 29 reason was to not have children smoke, then make that the reason. If it's about forcing everyone on the sidewalks then that violated what people have said. If it was about employee safety then what about the employees in the cigar bars and the bingo parlors. If the ordinance was passed, he would like Council to consider a sunset provision to allow those establishments that still permit smoking to have time to reinvent themselves and not put them in a bad financial position. Council Member Gregory stated that at the time the original ordinance was passed, he was on Council and knew that Council had indicated that they wanted to come back and revisit the ordinance. At the time it was passed, there were restaurant owners who had indicated that their businesses would be harmed if smoking was banned. He wanted to hear from restaurant owners if their businesses had been hurt since the passage of the original ordinance. He did not remember a pledge to reform the committee or form a new committee to consider the proposal. He was in favor of a more comprehensive ban to protect citizens. Council Member Ryan stated that he was against the ordinance as it was an infringement against business owner's rights. The process was naturally progressing to non-smoking bars but there was a hitch that served a need. He was on the ad hoc committee two years ago and they were told that the committee would be reconvened when the issue was revisited. He agreed with the provisions regarding the E-cigs. He suggested creating another citizen committee to help work through the issue. Council Member Hawkins stated that it was legal to smoke and it was a personal choice to go into a smoking establishment. It was an individual's choice whether or not to work in a smoking establishment. His love of people's freedom to choose, trumped his dislike of smoking. Mayor Watts stated that he was not able to be present at the meeting two years ago when this issue was voted on. Had he been at that meeting, he would have voted for a complete ban. He did not feel it was necessary to reconvene the committee to take comments on the issue. There had been a lot of discussion on where the line was on personal choice and on government. He supported the ordinance but not to the extent that it would dramatically affect people financially. He would agree with a time to allow business owners to plan for what ultimately would be a complete ban. Council Member Roden questioned that as there were so many elements of the ordinance, would be better to make a motion on each item or make a general motion and accept amendments as they were presented. Mayor Pro Tem Engelbrecht stated if Council was considering a grandfather clause for some of the establishments, maybe as high as 11 establishments, he would suggest holding consideration for a month to see if the four mentioned earlier really went non-smoking. Council Member Roden motioned to adopt the ordinance as presented in the backup with the following changes: (1) change the definition in Section 1 regarding open air patio to an outdoor space generally used for dining or recreation that adjoins a building and typically contains an improved surface. Mayor Watts questioned the use of the word dining as bars that were unable to serve food would not be able to use their outside space as a patio. City of Denton City Council Minutes April 7, 2015 Page 30 Council Member Roden stated that his intent was that if it were an outdoor space, smoking would be allowed. He continued with his motion: (2) delete the section dealing with a 30 foot buffer, (3) pursue a grandfather clause to identify bars that claimed to be smoking and to be identified as such (4) any new bar would have to be under the general terms of this ordinance so Section 2.a.13 would need to be changed to "bars except as otherwise permitted in this ordinance", (5) change Section 4a to include " an existing bar that has registered with the city of Denton as a smoking bar by a specific date determined by an administrative process", (6) create an administrative process whereby existing bars can register as a smoking bar with requirements to include the bar must have been an existing bar at the time the ordinance was amended, must not allow admittance to persons under the age of 18, must provide signage created by the city of Denton identifying them as a smoking establishment and must not allow live music performances. Council Member Johnson stated that if the goal for the grandfathering was to not harm the businesses, if a bar had a patio, would they not be grandfathered. Council Member Roden stated that the intent was that as there were a certain number of existing smoking bars at this point, that number would be maintained until the grandfathering condition expired. Council Member Gregory questioned what a sunset provision would include as opposed to the grandfather provision. Council Member Roden suggested that he complete his motion and then Council could have discussion. He continued with his amendments: (7) add to Section 5.a "Signage" requiring smoking bars to have a sign at the entrance identifying them as a smoking establishment; (8) include wording in the cigar bar definition a type of humidor to make it a full fledge cigar bar rather than not. City Attorney Burgess asked about the motion as it related to Section 2 where there was smoking prohibited in certain locations. She questioned the intent as it related to E-cigs. Council Member Roden stated they would be prohibited in the same locations as cigarettes. Mayor Pro Tem Engelbrecht asked about whether the distance restriction would be 30 feet from any entrance. Council Member Roden stated that his amendment would strike the entire Section 2.a.21 and not have it there at all. Council Member Johnson questioned if these amendments would force smokers outside the building and would force people going into a non-smoking establishment to walk through smoke. If the smokers were pushed out of the buildings and could smoke within 30 feet of a door, it would only get worse. He would have a problem removing that section completely as it would put smoking out where non-smokers would have to walk. City of Denton City Council Minutes April 7, 2015 Page 31 Council Member Roden stated that his motion would maintain the current situation. There would be no new smoking bars, would freeze the situation of the number of smoking bars and by changing over time that number would be reduced. His motion would not change the distance immediately. Council Member Hawkins stated that he appreciated the grandfather clause but not allowing them to have live music would force them to make a decision on which way to do business. He would not be able to vote on that amendment. Council Member Gregory seconded the motion if Council Member Roden would agree to an amendment to Section 4.a.5 regarding bingo parlors that they would have only have to January 2016 to comply. Council Member Roden accepted that amendment to his motion. Council Member Hawkins felt that existing bars should be able to have live music. City Attorney Burgess requested clarification on the grandfathering issue in terms of what would trigger the end of grandfather period whether that would be a change of use from a bar to another use, a change in ownership, or a specified a period of time. Council Member Roden suggested including the first two provisions recommended in the grandfathering whichever came first. Council Member Ryan stated that he would not agree with banning live music. He stated that he would like to table the proposal so as to be able to see the changes as suggested. He would like to motion to table with an amendment to allow live music. Mayor Watts stated that he was uncomfortable approving the ordinance at this time without having an opportunity to discuss in a Work Session all of the amendments suggested. Council discussed whether to continue the item, continue discussion at this meeting, and what the process would be when reviewing the ordinance as amended. Council Member Ryan motioned, Council Member Hawkins seconded to continue the ordinance until a draft was ready for review in a Work Session. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. H.A15-0012 Hold the first of two public hearings to consider the annexation of approximately 678.49 acres of land contained in eight of the fifteen annexation areas, which received a Non-Annexation Agreement in 2010, and do not comply with the exemption requirements in the Texas Local Government Code Chapter 43.035 or did not execute a Non-Annexation Extension Agreement. Four annexation areas consist of approximately 508.79 acres, generally located in northwestern quadrant of the City of Denton's Extraterritorial Jurisdiction (ETJ), Division 1, and are identified as PAAl, City of Denton City Council Minutes April 7, 2015 Page 32 PAA2, PAA3, and PAA4. The remaining four areas include approximately 169.70 acres of land, and are unincorporated ETJ pockets located within the body of the City of Denton's corporate limits, and identified as DH2, DH3, DH4, and DH11; providing for severability and an effective date. Aimee Bissett, Interim Director of Planning and Development, stated that as part of the annexation initiative in 2010, the City Council approved several ordinances for Non Annexation Agreements (NAAs) in annexation areas referred to as DHI, DH2, DH3, DH4, DH5, DH11, DH14, PAA1, PAA2, PAA3, PAA4. The agreements were approved for five years and had cessation dates of February 9, 2015 and March 2, 2015. In 2014, City Council directed staff to offer a one year extension to the original agreements. Pursuant to the Texas Local Government Code (Tx.LGC) Subchapter B Section 43.035, properties that continued to meet the stated criteria of agricultural, wildlife management or timberland uses were offered a Non-Annexation Extension Agreement. Each property owner received by certified mail a Non-Annexation Extension Agreement with a cover letter explaining their options and deadline date. In total, about 130 agreements were signed and notarized for approximately 183 properties. The signed Non-Annexation Extension Agreements were approved by City Council on March 3, 2015. However, there were nearly 12 properties from 2010 that no longer complied with the exemption requirements, and approximately 40 properties that met the exemption requirements status but did not execute the Non-Annexation Extension Agreement. These properties encompass roughly 701.35 acres of land in the following annexation areas: DH2, DH3, DH4, DH5, DH11, PAA1, PAA2, PAA3, and PAA4. She reviewed the areas for this annexation, and the provisions of the services from the service plan. Staff was recommending approval. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Debra Cottle, 480 Hickory Creek, Krum, 76249- spoke in opposition Ladonna and Larry Pockrus, 7080 Wolf Run, Ponder, 76259- spoke in opposition Pat deBaca, 9861 Jim Christal, Krum, 6249- spoke in opposition Robin Gregory, 491 Hickory Creek, Krum, 76249- spoke in opposition A comment card was submitted by John Duncan, 1000 S. Mayhill, Denton, 76202 in opposition. The Mayor closed the public hearing. No action was required on this item at this time. L DCA14-0009f Continue a public hearing and consider adoption of an ordinance amending Subchapters 5, 7, 16 and 22 of the Denton Development Code, relating to Gas Well Drilling and Production, Definitions and Procedures; amending Ordinance No. 2013-248, relating to planning and development fees and road damage remediation fees relating to gas well drilling and production activities; adding new Subchapter 22A to the Denton Development Code, relating to Oil and Gas Pipelines, Definitions, Procedures; providing a cumulative clause; providing a severability City of Denton City Council Minutes April 7, 2015 Page 33 clause; providing for a penalty; and providing for an effective date (DCA14-0009f). The Planning and Zoning Commission recommends denial (4-3). A supermajority vote by City Council is required to adopt a motion to approve this ordinance. Mayor Watts stated this was a continuation of the public hearing and Council would take public comment at this time. Chance Wilson, 1209 CR 1304, Bridgeport, 76426— spoke in opposition Comment cards were received from the following: Harrison Wicks, 3111 Darby Lane, Denton, 76207—opposed James and Elizabeth Fagan, 3304 Woodthrush, Denton, 76209—opposed Council Member Gregory motioned, Mayor Pro Tem Engelbrecht seconded to continue the public hearing to the Council's April 14, 2015 meeting. On roll call vote, Mayor Pro Tem Engelbrecht "aye", Council Member Gregory "aye", Council Member Hawkins "aye", Council Member Johnson "aye", Council Member Roden "aye", Council Member Ryan "aye", and Mayor Watts "aye". Motion carried unanimously. 8. CITIZEN REPORTS There were no citizen reports for this section of the agenda. 9. 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.. Council Member Ryan requested information on ways to encourage slower traffic on Oak/Hickory near Bell Avenue. Council Member Ryan requested a report to the Committee on Citizen Engagement concerning the Rapid SOS software in terms of cost and what it did. City of Denton City Council Minutes April 7, 2015 Page 34 Mayor Pro Tern Engelbrecht requested a better explanation of the purpose and promotion of the red light cameras. B. Possible Continuation of Closed Meeting of Closed Meeting topics, above posted There was no continuation of the Closed Meeting. With no furil r business, the meeting was adjourned at 3:15 a.m. C 1 4" W 1 .. MAYOR CITY OF DENTON, TEXAS J N11�1�1 TErRS CITY OF DENTON, TEXAS Inclement Weather Resources Weather conditions are considered inclement when the temperature low is expected to fall below 32 degrees or the temperature high is expected to exceed 100 degrees,and when the City declares an emergency for weather conditions such as ice,severe flooding,etc. Daytime Warming Centers / Cooling Stations City of Denton Public Facilities with heating,air conditioning, public restrooms,water fountains,and sitting areas: 00 'IL Parks & R -reation Public Libraries: Centers: Emily Fowler Central Library � American Legion Building 502 Oakland St. 629 Lal<ey St. (940) 349-8796 0.00 (940) 349-8298 North Branch Library 000, Denton Civic Center 3020 N. Locust St. I 321 E. McKinney St. (940) 349-8761 (940) 349-7275 South Branch Library Community Service Providers Denton Senior Center 3228 Teasley Ln. with heating,air conditioning, 509 N. Bell Ave. (940) 349-8761 and water stations: (940) 349-8720 Fire Stations: Our Daily Bread Denia Rec Center Station 1:Central Fire Station 300 W. Oal< St.Ste. 100 1001 Parvin St. 332 E. Hicl<ory St. (940) 382-5604 (940) 349-8285 Monday - Friday,8 a.m.- 5 p.m. MILK Jr. Rec Center Fire Stations with 24-hour Salvation Army Denton 1300 Wilson St. Public Access: 1508 E. McKinney St.(940) 566-3800 (940) 349-8575 Station 2: 110 Mockingbird Ln North Lakes Rec Center Station 4:21 10 E.Sherman Dr. 2001 W.Windsor Dr. (940) 349-8287 Station 5:2230 W.Windsor Dr. Station 6: 3232 Teasley Ln. Police Station:601 E. Hickory St. Station 7:4201 Vintage PI<wy. 24-hour Public Access Overnight Shelter Monsignor King Salvation Army Denton 00 Z Outreach Center 1508 E. McKinney St. Zpi4 (MKOC) Call (940) 566-3800 to 300 S.Woodrow Ln. confirm inclement weather Call (940) 391-1919 to opening. confirm inclement weather opening. Please call all facilities to confirm hours and services during inclement weather. www.cityofdenton.com ADA/EOE/ADEA TDD:(800)735-2989 Pub.11/18 DENTON Rent by the Bedroom Developments Total Name Address Units Number of Beds Comment Lights 1607 West Oak Street 39 44 Built Eagle Creek 603 EAGLE (BEHIND) DR 172 172 Built Quarter Place 1003 EAGLE DR 64 110 Built Vintage Pads 2434 West Oak Street 100 122 Built Across the Street 1701 W OAK ST 53 70 Built Starlite 425 Fulton Street 44 86 Built Arbors of Denton 1103 BERNARD ST 191 367 Built Ridge at North Texas 2700 Colorado Boulevard 228 876 Built CastleRock at Denton Apartments 1541 Meadow St 564 564 Built University Courtyard 200 S BONNIE BRAE ST 240 792 Built Uptown 2601 West Oak Street 180 528 Built City Parc 1310 Scripture Street 136 418 Built Gateway at Denton 1201 CLEVELAND ST 228 696 Built Grad House 2428-2430 West Prairie 8 8 Built Grad House 2424-2426 West Prairie 8 8 Built Grad House 2420-2422 West Prairie 8 8 Built Grad House 2416-2418 West Prairie 8 8 Built The Forum 201 INMAN ST 348 1040 Built The Republic 500 Inman Street 63 492 Built Midtown Denton 905 Cleveland Street 120 432 Built U Centre 1221 West Oak Street 194 614 Built The Arch at Denton/The Grove 701 FORT WORTH DR 216 584 Built Crash Pads and The Hangar 814 Bernard Street 56 72 Built University Place 911 Bernard St 130 130 Built The Venue 1407 Bernard St 279 387 Built 13 Fifty-One 1451 CENTRE PLACE DR 123 478 Built 33 Degrees North 919 Eagle Drive 139 427 Built 1702 North Ruddell Vitae Residences Street 90 132 Built Ave A Apartments 915 Ave. A 34 51 In construction Five Ten Villas 510 Fort Worth Dr 104 0 In construction The Retreat at Denton 155 Precision Dr 189 700 In construction Hann Street Apartments 116 Hann St 8 16 In construction Texas Woman University 1303 N Austin St 10 10 In construction Jetpuri Addition 1008 Johnson St 46 92 In construction Park 7 1519 Scripture St 179 545 In construction 4,599 11,079 Date: December 7,2018 Report No. 2018-174 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Details regarding the City's receipt and use of gas well revenue. BACKGROUND: The City Council requested information on gas well revenue history and how that funding has been used. The City has three gas well funds: the Airport Gas Well Fund, Parks Gas Well Fund, and Other Gas Well Fund. DISCUSSION Revenue and expenditure information related to each of the City's three gas well funds is attached to this report. In general, the City's gas well revenues have diminished substantially due to both a decrease in gas production, which is normal for gas wells, and lower gas prices. Gas wells are unlikely to see an increase in gas production, so even if gas prices rise,the only increase in royalty revenue would be from additional gas wells that may be drilled on city-owned property. There are currently no plans to drill additional gas wells on city-owned property. Data available is through Fiscal Year(FY) 2016-17 as funds are currently being reconciled for FY 2017-18. Airport Gas Well Fund Attachment 1 provides the revenue and expenditure history for the Airport Gas Well Fund dating back to FY 2004-05. This fund is the City's largest gas well revenue fund and it had a fund balance of$4,479.231 in FY 2016-17. The Airport Gas Well Fund is used to fund capital projects at the Denton Enterprise Airport. Attachment 2 outlines the Airport capital projects that were funded from the Airport Gas Well Fund. Federal law requires that this revenue only be used for the benefit of the Airport. Parks Gas Well Fund Denton has six gas well pad sites, consisting of 14 well heads that provide revenue to city parks. All pad sites are located on private property and not Park property in what are commonly referred to as pooling arrangements. Minerals under Park property are accessed through horizontal drilling. Royalties from these gas pooling arrangements are maintained in the Parks Gas Well Fund. In FY 2016-17, the Parks Gas Well Fund had a fund balance of $104,371. Attachment 3 includes a history of the Parks Gas Well Fund balance and a detailed expenditure report listing of the capital projects that have been funded using revenue from the Parks Gas Well Fund. Attachment 4 is an Informal Staff Report that was provided to the City Council on July 27, 2018, outlining parks gas well locations,mineral interest percentages, and revenue. State law requires that this revenue only be used for the benefit of the City's park system. Other Gas Well Fund The Other Gas Well Fund includes revenue from a single gas pooling agreement, consisting of 10 acres under Vintage Road.Attachment 5 provides a year-by-year breakdown of the fund balances Date: December 7,2018 Report No. 2018-174 and a list of the capital expenditures made out of this fund. Because of the low fund balance, staff plans to close out this fund this year. ATTACHMENTS 1. Airport Gas Well Revenues &Expenditures 2. Airport Gas Well Fund Capital Projects Detail 3. Parks Gas Well Fund Revenue and Expenditures 4. 2018-094 Parks Gas Well Funds 5. Other Gas Well Fund Revenue and Expenditures STAFF CONTACT: Antonio Puente, Jr., Chief Financial Officer (940)-349-7283 Antonio.Puentekcityofdenton.com City of Denton Airport Gas Well Fund' Schedule of Revenues&Expenditures For the Period Ended September 30,2017 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 200849 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 DESCRIPTION ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL REVENUES: Royalties' $ 619,842 $ 1,323,993 S 1,233,849 $ 1,108,335 $ 807,847 $ 4,124,918 $ 2,389,035 $ 1,216,740 S 1,162,508 S 1,023,526 S 581,848 S 478,310 $ 606,518 Surface Agreements 25,057 43,299 25,559 13,952 48,526 15,152 15,152 9,152 13,952 13,952 - - - Interestlncome 17,517 108,150 90,717 110,827 32,049 28,879 34,336 23,149 26,153 27,708 26,225 34,141 Total Revcnucs $ 644,898 S 1,394,808 S 1,367,558 $ 1,213,005 $ 967,200 S 4,172,120 $ 2,433,066 $ 1,260,228 S 1,199,609 S 1,063,631 S 609,556 S 004,535 S 640,659 EXPENDITURES: Return on Investment-General Fund $ - $ - S - $ - $ - S - $ 27,973 $ 15,239 $ - S - S - S - $ - F-chhe Fees-General Fund - - - - - - 39,962 34,800 36,022 37,853 34,778 35,268 - Grant-City Match - - - - - 49,836 62,674 61,718 56,006 49,891 50,000 50,000 50,000 Professional Services - - 39,905 17,692 80,996 65,607 60,778 5,327 - - - 2,400 3,105 Marketing - - - - - - - 30,082 - - - 3,500 5,699 Interest - - - - - - - - 77,605 151,753 204,777 - - Transferto Debt Service - 206,777 255,437 229,750 221,993 216,997 224,815 219,455 - - - 475,790 - Transfer to General Fund(looked Costs) 51,038 - - - - 973,582 178,124 178,124 294,997 381,338 - 367,890 - Traosferto Capital Projects' - 185,000 - - 1,300,000 1,210,900 654,125 479,160 1,000,000 816,636 1,204,276 169,835 - Transfer to Other Foods(bathed Costs) 16,030 29,340 Total Expendi-es $ 51,038 S 391,777 $ 295,342 $ 246,442 $ 1,602 989 S 2,516,912 $ 1,248,451 $ 1,023,905 $ 1,480,660 S 1,466,811 $ 1,493,830 $ 1,104,683 $ 58,804 Net lncome(Loss) $ 593,960 S 993,031 $ 1,072,217 $ 966,563 $ (635,799) $ 1,655,208 $ 1,184,615 $ 236,323 $ (281,051) $ (403,180) $ (894,274) $ (600,149) $ 581,855 Beginning Unreserved Fund Balance $ 5 593,860 $ 1,586,892 $ 2,659,108 $ 3,625,671 5 2,989,882 $ 4,645,090 $ 5,829,705 $ 6,066,028 $ 5,784,978 5 5,381,798 $ 4,497,524 $ 3,897.376 Ending unreserved Fund Balance $ 593,860 S 1,586,892 S 2,659,106 $ 3,625,671 $ 2,989,882 S 4,645,090 $ 5,829,705 $ 6,066,026 9 5,784,978 S 5,381,798 S 4,497,524 $ 3,897,376 S 4,479,231 'Federal law restricts the use of these revenues for Airport expenses only. Grant agreements with the State and Federal government used in a,q,i,tion of Aiport land or construction of Airport infrastructure restrict these revenues."All fees collected for the use of an airport or navigational facility constructed with funds under the program...shall be used solely for the development,operation,and maintenanee of the icity'sl system of airports or navigational facilities.""Any revenue from airport property mineral rights[shouldl be identified as Airport revenue and deposited to the Airport Fund and used for airport operations." 'Royalties from 10 gas wells located on Airport property and 1 gas pooling agreement. 3Detailcd capital project listing attached. City of Denton Airport Gas Well Fund' Detail of Capital Projects Funded with Airport Gas Well Revenues As of the Period Ended September 30, 2017 Description Amount Airport Master Plan 2014 153,601 Taxiway-Apron 185,000 Airport Terminal Expansion 119,000 Airport Drainage Improvements 80,551 Runway Extension 530,159 Airport Tower Improvements 150,769 Southeast Taxiway 315,989 C.Wolf Road/Runway Extension 323,182 Security Fence 155,794 Tractor-90HP 93,551 Airport Entrance 85,773 Southeast Access Road 603,336 USAG Ramp and Parking 340,986 Apron Construction & Paving 118,376 2010 Maintenance Facility 542,932 Airport Signage 63,364 2018 Airport Road Paving 1,075,392 Airport Utility Tractor 63,019 Airport Tractor Accessories 4,276 Airport Terminal Meeting Room Equipment 12,118 Utility Extensions and Looping 301,643 Airport Entrance Drainage 98,366 Airport Entrance Road Construction 373,248 Hangar Development-South End 40,000 Hangar Development-Taxilane Quebec 806,354 Land Acquisition -Cook Property 31,920 Parallel Runway-West Side 117,151 Airport Mower 16,313 Airport Tow-Pro Spreader 10,026 Airport Snow Wing Equipment 24,768 Airport Tractor 49,682 Land Acquisition - Porter 62,494 Land Acquisition -Cole 52,948 Airport Master Plan 2017 12,001 Airport Unallocated 5,850 Total 7,019,932 City of Denton Parks Gas Well Fund' Schedule of Revenues&Expenditures For the Period Ended September 30,2017 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 DESCRIPTION ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL REVENUES: Royalties $ 50,339 $ 431,734 $ 472,236 $ 218,782 $ 163,409 $ 321,937 S 172,268 $ 99,308 $ 97,726 Interest Income - 2,257 2,645 3,471 1,080 173 1,340 1,047 1,072 Transfer from Other Gas Well Fund 1,205,046 Total Revenues $ 50,339 $ 1,639,037 $ 474,881 $ 222,253 $ 164,489 $ 322,110 $ 173,608 $ 100,355 $ 98,798 EXPENDITURES: Transfer to Capital Projects-Water Park Slide Replacement $ - $ 350,000 $ - $ - $ - $ - $ - $ - $ - Transfer to Capital Projects-Senior Center Land Purchase - 150,000 - - - - - - - Transfer to Capital Projects-North Lakes Soccer Fields - 850,000 - - - - - - - Transfer to Capital Projects-Mack Park Property purchase - - 53,000 - - - - - - Transfer to Capital Projects-North Lakes Bleachers - - - 15,000 - - - - - Transfer to Capital Projects-Mack&Milam Park Land Purchase - - - 90,000 - - - - - Transfer to Capital Projects-Mack Park Score Boards - - - 10,000 - - - - - Transfer to Capital Projects-Water Park Shade Covering - - - 15,000 - - - - - Transfer to Capital Projects-Adult Soccer Field - - - 95,000 - - - - - Transfer to Capital Projects-Water Park River Pump - - - 15,000 - - - - - Transfer to Capital Projects-Evers Park Irrigation - - - 60,000 - - - - - Transfer to Capital Projects-Quaker Town Park Irrigation - - - 50,000 - - - - - 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 - - - - - 40,000 - - - Transfer to Capital Projects-Vela Soccer Complex - - - - - 55,000 200,000 150,000 100,000 Transfer to Capital Projects-American Legion Hall Renovation - - - - - - - - - Transfer to Capital Projects-Softball Fields and North Dog Park Total Expenditures $ $ 1,350,000 $ 53,000 $ 350,000 $ 797,999 $ 140,500 $ 200,000 S 150,000 $ 100,000 Net Income(Loss) $ 50,339 $ 289,037 $ 421,881 $ (127,747) $ (633,510) $ 181,610 $ (26,392) $ (49,645) $ (1,202) Beginning Unreserved Fund Balance $ S 50,339 $ 339,376 $ 761,257 $ 633,510 $ $ 181,610 S 155,218 $ 105,573 Ending Unreserved Fund Balance $ 50,339 $ 339,376 $ 761,257 $ 633,510 $ $ 181,610 $ 155,218 S 105,573 $ 104,371 '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. Grant agreements with the State and Federal government used in acquistion of City park land restricts the use of these revenues."The[City]shall not at any time convert any property acquired or developed pursuant to this agreement to other than the public outdoor recreation uses specified in the project proposal...without prior approval of the Director[of United States Department of the Interior]." 'Royalties 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. 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. City of Denton Other Gas Well Funds Schedule of Revenues&Expenditures For the Period Ended September 30,2016 FY 2004-05 FY 200546 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-I1 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 20-17 DESCRIPTION ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL REVENUES: Royalties= $ - $ 37,939 $ 79,374 $ 1,146,098 $ 362,467 $ 7,646 S 11,50E $ - $ - $ - $ - $ - $ - SurfaeeAgreemenfs - 26,248 10,023 55,803 - - - - - - - - - Interestlncome - 9,781 43,558 54,416 79,431 29A74 11,857 2,447 148 148 - - - Transferfrom Ceneral Fund-Prior Ycaf Royalties 101,172 - - - - - - - - - - - - Trausferfrom General Fund-Property Taxers-,Taxes 415,787 454,263 431,090 463,566 Total Revenues $ 101,172 $ 489,755 $ 587,218 $ 1,687,407 $ 905,466 $ 37,120 $ 23,359 $ 2,447 $ 148 $ 148 $ $ $ EXPENDITURES: Transfer to Capital Prajeoo-Denton Co.Tax Office Building Projeet - - - - - - 50,000 1,000,000 - 36,279 - - - Transfer to Capital Prajects-Denton Comprehensive Plau - - - - - - - 600,000 - - - - - Tran0ert0 Capital Proj,o,-I.aserfiche S08ware - - - - - 250,000 - - - - - - - TrausfertoCapital Projech-Planning ProjectDor S.O-e - - - - - 350,000 - - - - - - - Transfer Io Cepiml Projects-ITS Comm Truck Lmes,TXDOT - - - - - - 342,900 - - - - - - Transfcrto Parks Gas Wdl Fond 1,205,046 Total Expeudimres $ S $ $ $ $ 1,805,046 S 392,900 $ 1,600,000 $ S 36,279 $ S $ Net lncome(Loss) $ 101,172 S 489,755 $ 587,218 $ 1,687,407 $ 905,466 S (1,767,926) S (369,541) $ (1,597,553) S 148 S (36,131) S $ $ Beginning Unreserved Fund Balance $ S 101,172 $ 590,927 $ 1,178,145 $ 2,865,552 $ 3,771,018 $ 2,003,092 $ 1,633,551 $ 35,998 $ 36,146 $ 15 $ 15 $ 15 Ending Unreserved Fund Balance $ 101,172 S 590,927 $ 1,178 145 S 2,865,552 $ 3,771,018 $ 2,003 092 $ 1,633,551 $ 35,998 S 36,146 S 15 S 15 S 15 $ 15 '-n mnd m be Gored m TV 2017-18 as a result 01 dimished royaldes and zero rand talent¢. 'Royalties from 1 gas pooling agreement asaacmted with Vintage Parkway. Date: December 7,2018 Report No. 2018-175 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: 2017 Net Revenue Report on Economic Development Incentives EXECUTIVE SUMMARY: Each year since 2009, the Department of Economic Development has prepared a report on the fiscal impact to the City of Denton made by businesses that have received tax incentives. The City has invested$16.5 million in tax-related incentives since 1999, and in return, has benefited from a net increase in property and sales tax revenues in the amount of$62.4 million. The total rate of return for incentives awarded is 327%, and there have been a total of 7,536 jobs created or retained by incentivized projects. BACKGROUND: A tax abatement(Tax Code, Chapter 312) is a local agreement between a taxpayer and a taxing unit that exempts from taxation all or part of the increase in the value of real property or business personal property. Chapter 380 of the Local Government Code gives cities the authority to provide grants or loans of city funds or services in order to promote economic development; the City of Denton structures its Chapter 380 agreements as tax rebates based on performance in generating property tax or sales tax. The purpose of tax abatements and Chapter 380 agreements is to assist cities in attracting new industries, encourage the retention and expansion of existing businesses, and promote capital investment by easing the tax burden on projects for a set period of time. The City of Denton developed its original Tax Abatement Policy in 1989. The policy has been updated and approved by Council 11 times since the original, most recently in March 2018. In 2009, the Department of Economic Development created the initial "Return on Investment Report"to examine the fiscal impact to the City made by the businesses that have received property and sales tax incentives, evaluate the efficiency of the public investment, and to guide future policy decisions. The following changes have been made to the report over the years: • 2010: State of Texas and Denton County Transportation Authority sales tax revenue was added. • 2013: The report was expanded to include the ad valorem revenue for Denton County, which includes both the incentives in which the County has partnered with the City, as well as the revenue from the incentives that the County did not invest in. • 2015: Inclusion of Denton Independent School District (DISD) information. Date: December 7,2018 Report No. 2018-175 • 2016: The report was retitled"Economic Development Incentivized Projects Net Revenue Report"to accurately reflect the calculation method used, which is tax revenue received less tax revenue foregone and does not include costs to the City for the projects. The attached 2017 Net Revenue Report is the sixth update of the report, which provides an overall look at what the City of Denton received in the way of direct benefits (property and sales tax revenues) as well as the indirect benefit of new jobs created or existing jobs retained by those companies and developments that received incentives. The report provides information through 2017 and includes the following: • The date the agreement was approved • The term of the agreement(years incentives are applied) • Property valuation(cumulative since year agreement approved, excluding base year) • Property tax generated(cumulative since year agreement approved, excluding base year) • Sales tax generated—if applicable (cumulative from initiation of sales tax monitoring) • Net property and sales tax revenues (total revenues less incentives) • Cost/benefit Percentage (net revenue divided by the incentive and multiplied by 100) • Ratio of Return(net revenue less incentive, then divided by the incentive) • New jobs created by project Standard economic development practice for impact analysis is 10 years, so the incentives in the report are tracked for 10 years regardless of the term. For example, an incentive with a term of seven years is tracked for an additional three years until the 10-year period is reached. An incentive is not deducted for the remaining three years following the term. This practice allows for"apples to apples" comparisons between incentives. Incentives for expansion projects such as Jostens, Peterbilt Motors, and Flowers Foods are based only on the new value created by the project. The existing valuation that was relative to each of these projects was not included in the calculations. FISCAL INFORMATION: The City of Denton has awarded a total of 28 incentives to foster development in the community. Eighteen are represented in the report. The remaining were not initiated as of 2017. The City has invested $16.5 million in tax-related incentives, and in return, has benefited from a net increase in property and sales tax revenues in the amount of$62.4 million since the inception of the incentive program in 1999. The rate of return for all of the incentives awarded is 327%. There have been a total of 7,536 jobs created or retained by incentivized projects. The table, which follows,provides the net revenue summary for the City, County and school district. Date: December 7,2018 Report No. 2018-175 Denton County has participated in a total of six Denton incentives, and Denton Independent School District has participated in two Denton incentives. Texas school districts were at one time able to offer tax abatements similar to those of cities and counties, but that authority was repealed by the Texas Legislature. (Note: School finance involves a complex funding formula from a number of different federal, state and local funding sources. It is important to note that the report uses the entire DISD tax rate, which includes the Maintenance and Operations (M&O) and Interest and Sinking (I&S) tax rates. The M&O portion of the tax rate is used for salaries, utilities, supplies etc. The I&S portion of the tax rate is used to fund payments on debt service for facilities and is the only portion of the DISD tax rate that is not affected by funding from the State of Texas.) City, County and DISD Net Revenue Summaries Iotal of all Incentives City of Denton Denton County Denton ISD Cumulative Property Valuation $6,145,095,049 $2,982,617,949 $3,372,276,231 Cumulative Property Tax Generated $41,069,579 $7,607,273 $51,116,298 Cumulative Sales Tax Generated $40,399,711 $0 $0 Cumulative Property& Sales Tax $81,469,290 $7,607,273 $51,116,298 Less Incentives $19,058,067 $1,063,616 $622,252 Net Property and Sales Tax Revenue $62,411,223 $6,543,657 $50,494,046 Costibenefit Percentage 3270//o T 6150,/o 8,115% Ratio of Return 3.3 6.2 81.1 CONCLUSION: Incentives are an important tool that can be used to attract or retain private investment in Denton. Since the incentive options available to Denton are tax based, tracking and reporting on the cost/benefit of the incentives awarded by City Council enhances transparency, supports fiscal responsibility, and aids in future decision-making regarding incentives. ATTACHMENT(S): 2017 Net Revenue Report Date: December 7,2018 Report No. 2018-175 STAFF CONTACT: Caroline Booth Director of Economic Development (940) 349-7751 Caroline.Booth@cityofdenton.com Economic Development Incentivized Projects Net Revenue Report City of Denton Department of Economic Development I y 1 Table of Contents List of Charts, Graphs, and Tables ................................................................................................2 ExecutiveSummary.......................................................................................................... 3 Introduction and Purpose.................................................................................................4 Cityof Denton Revenue ................................................................................................... 5 PropertyTax Abatements...................................................................................................... 5 Chapter 380 Grant Agreements............................................................................................. 6 Chapter 380 Grants Based on Property Tax Performance................................................ 6 Chapter 380 Grants Based on Sales Tax Performance...................................................... 6 Property and Sales Tax Summary .......................................................................................... 8 PropertyTax Summary...................................................................................................... 8 Property and Sales Tax Summary...................................................................................... 8 Direct and Indirect Impacts.................................................................................................... 9 Chapter 380 Grants on Combined Tax Performance and Development Tools ................... 10 State and Local Revenues............................................................................................... 11 City, State, and DCTA Sales Taxes........................................................................................ 11 DL—.,.. .,-JI]Lyrrup-. y IdxlJer1eraL1Ur......................................................................... 12 PropertyTax Abatements.................................................................................................... 12 Chapter 380/381 Agreements ............................................................................................. 13 PropertyTax Summary ....................................................................................................... 13 Denton Independent School District Property Tax Generation ........................................ 14 Property Tax Abatements.................................................................................................... 15 Chapter380 Agreements..................................................................................................... 16 PropertyTax Summary .........................................................................................................16 Appendix A: Incentive Projects....................................................................................... 17 Appendix B: General Methodology................................................................................. 28 City of Denton Net Revenue Report Published October 2018 1 List of Charts, Graphs, and Tables Charts Chart 1: Sales Tax Generated and Rebated ........................................................................... 7 Chart 2: Sales Tax Composition ........................................................................................... 12 Graphs Graph 1: Property Tax Generated and Abated/Rebated....................................................... 8 Graph 2: New Value Created in Denton ................................................................................ 9 Graph 3: New Jobs Created in Denton ................................................................................ 10 Graph 4: City and County Property Tax Agreements........................................................... 14 Graph 5: DISD Property Tax Abatements ............................................................................ 15 Tables Table 1: City of Denton Summary.......................................................................................... 3 Table 2: City, County and DISD Summaries ........................................................................... 4 Table 3: City of Denton Tax Abatements............................................................................... 5 Table 4: City of Denton Chapter 380 Property Tax Agreements........................................... 6 Table 5: City of Denton Chapter 380 Sales Tax Agreements................................................. 7 Table 6: City of Denton Tax Abatements and Chapter 380 Property Tax Agreements......... 8 Table 7: City of Denton Return Summary.............................................................................. 9 Table 8: Combined Tax Tool Incentive Summary ................................................................ 10 Table 9: City, State, and DCTA Sales Tax Composition ........................................................ 11 Table 10: Total City, State and Local Sales Taxes Cost/benefit ........................................... 11 Table 11: Denton County Property Tax Abatements........................................................... 12 Table 12: Denton County Property Tax Chapter 381 Rebates............................................. 13 Table 13: Denton County Return from Property Tax Abatements and Chapter 380/381 Rebates ......................................................................................... 13 Table 14: Denton County Return Summary........................................................................ 14 Table 15: DISD Property Tax Abatements............................................................................ 15 Table 16: DISD Return from City and DISD Agreements...................................................... 15 Table 17: DISD Return Summary.......................................................................................... 16 City of Denton Net Revenue Report Published October 2018 2 EXECUTIVE SUMMARY The City of Denton promotes high-quality development that improves the quality of life for its residents. The City has provided economic development incentives to stimulate private development and redevelopment, expand the tax base, generate jobs, and enhance the local economy. Denton is home to several corporate, regional, and international headquarters, as well as central distribution and maintenance facilities. The City facilitated a number of these projects by granting incentives to make the project feasible and to reimburse the costs of required public infrastructure. In 2009, the City's department of Economic Development created the initial "Return on Investment Report" to provide a comprehensive look at the fiscal impact made by the businesses that have received property and sales tax incentives from the City and to evaluate the efficiency of the public investment. In 2016, the report was retitled the "Report on Net Revenue from Incentivized Economic Development Projects" to accurately reflect the methodology used, which is revenue received less revenue foregone. It does not include costs to the City for the projects. The City of Denton has awarded a total of 28 incentives to foster development in the community. Eighteen are represented in the report. The remaining were not initiated as of 2017. The City has invested $16.5 million in tax- related incentives, and in return, has benefited from a net increase in property and sales tax revenues in the amount of $62.4 million since the inception of the incentive program in 1999. The rate of return for all of the incentives awarded is 327%. Sales tax incentives represented the highest rate of return at 389% followed by Chapter 380 property tax rebates and property tax abatements at 399%and 154%, respectively. There have been a total of 7,536 jobs created or retained by incentivized projects. r� L&L (t 7,536 327% $6.1B $62AM NewJobs Benefit Property Valuation Net Revenue Table 1: City of Denton Summary Totals for Totals for Cumulative Property Valuation $2,982,617,949 $3,162,477,100 $6,145,095,049 Cumulative Property Tax Generated $19,704,068 $21,365,511 $41,069,579 Cumulative Sales Tax Generated $0 $40,399,711 $40,399,711 Cumulative Property&Sales Tax $19,704,068 $61,765,222 $81,469,290 Less Incentives $6,435,518 $12,622,549 $19,058,067 Net Property and Sales Tax Revenue $13,268,550 $49,142,673 $62,411,223 Cost/benefit Percentage 205% 389% 327% Jobs Created/Retained 3,980 3,556 7,536 City of Denton Net Revenue Report Published October 2018 The report is divided into the following four main sections illustrating the cost/benefit of the public investment of resources for each taxing entity: • City of Denton Revenues • State and Local Revenues • Denton County Property Tax Generation • Denton Independent School District Revenue ➢ Project Narratives ➢ Methodology The cost/benefit from each of the three jurisdictions is included below as a ratio of the net revenue to investment. See appendix for additional information on the methodology for this report. 3.3 6.2 81.1 City of Denton Denton County Denton ISD Table 2: City, County and DISD Summaries r"-n of Return Waty of Denton Denton County Denton 15D Cumulative Property Valuation $6,145,095,049 $2,982,617,949 $3,372,276,231 Cumulative Property Tax Generated $41,069,579 $7,607,273 $51,116,298 Cumulative Sales Tax Generated $40,399,711 $0 $0 Cumulative Property&Sales Tax $81,469,290 $7,607,273 $51,116,298 Less Incentives $19,058,067 $1,063,616 $622,252 Net Property and Sales Tax Revenue $62,411,223 $6,543,657 $50,494,046 Cost/benefit Percentage 327% 615% 8,115% Ratio of Return 3.3 6.2 81.1 INTRODUCTION AND PURPOSE This is the sixth update and redesign of the report, which provides a comprehensive look at the fiscal impact made by the businesses that have received property and/or sales tax incentives from the City and evaluates the efficiency of the public investment. A brief description of the types of tax incentives offered, the total incentive received by the company, the City tax revenues generated since the agreement was initiated and the cost/benefit of the projects are provided. In addition, the report includes information regarding state, Denton County Transportation Authority (DCTA), Denton County and Denton Independent School District (DISD) ad valorem and sales tax revenues created by these developments. In 2009, the City of Denton Economic Development Department created the initial Return on Investment Report to examine the fiscal impact made by the businesses that have received property and sales tax incentives from the City, evaluate the efficiency of the public investment and to guide future policy decisions. State and DCTA sales tax revenue were added in 2010. In 2013, the report was expanded to include the ad valorem revenue for Denton City of Denton Net Revenue Report Published October 2018 4 County, which includes both the incentives in which the County has partnered with the City, as well as the revenue from the incentives that the County did not invest in. The report comprised all of the taxing entities with the inclusion of Denton Independent School District(DISD) in 2015. Last year,the report was redesigned. 2009 2010 2013 Initial Report Expanded:State and Expanded:Denton DCTA County 2015 2016 Expanded: DISD Redesign CITY OF DENTON REVENUE Property Tax Abatements Since 1999, the City of Denton has granted abatements of City ad valorem taxes from new and expanded capital investment resulting in $5.1 million in property related tax incentives, and in return, has benefited from a net increase in property tax revenues of$7.8 million. City of Denton tax abatement agreements obligate the company to meet certain threshold requirements of property valuation in order to receive a tax abatement. In some cases,the number of jobs created and the average wage for these positions are also thresholds of performance. Chapter 312 of the Local Government Code allows cities to provide up to 100% abatement on new valuation and limits the term of tax abatements to 10 years. The following table represents the eight active tax abatements awarded and initiated through 2017. The following five tax abatements have been completed: United Copper, Peterbilt, Flowers Foods, Fastenal, and Aldi. 2017 was also the fifth and final year of the tax abatement for Target Corporation. The next tax abatement scheduled to come online is a Peterbilt Motors expansion. Table 3: City of Denton Tax Abatements .—nited Peterbilt Flowers Aldi Foods Target Peerless Tetra Pak Totals . Copper I Motors Foods Year Approved 1998 1 2001 2004 �20082008 2010 2011 2013 Incentive Term 2002- 2014- (2015- - - )1 2018) Cumulative Property $422,085,76 $39,091,29 $329,264,60 $183,476,60 $372,994,88 $560,892,20 $41,102,53 $26,384,48 $1,975,292,3 Valuation 5 6 9 1 4 7 5 1 78 Cumulative Property Tax Generated $2,508,486 $248,933 $2,211,802 $1,247,OSO $2,545,235 $3,802,SSO $279,38S $176,SS9 $13,020,000 Less Property I Net Property Tax Revenue $2,371,454 $104,019 $1,848,443 $1,1S9,229 $392,856 $1,728,381 $244,645 $75,670 $7,849,027 Cost/benefit Percentage 1,731% 72% 509% 1,320% 18% 83% 704% 75% 154% Jobs Created/Retain ed 26S 3S 480 208 150 160 96 375 1,769 'Note:Peerless was terminated after one year due to the sale of the property City of Denton Net Revenue Report Published October 2018 5 Chapter 380 Agreements Chapter 380 of the Local Government Code gives cities the authority to provide grants or loans of city funds or services in order to promote economic development. The City of Denton has entered into 17 Chapter 380 grant agreements in which it has authorized a grant equal to either a portion of the property tax or sales tax generated by the project. Chapter 380 Grants Based on Property Tax Performance Table 4 below provides data through 2017 on economic development agreements that provided grants based on a percentage of the property tax generated by the project. The City has awarded six Chapter 380 Property Tax Agreements. Sally Beauty,Jostens, and Labinal/Safran have expired. Labinal and Jostens will continue to be tracked for 10 years, while Sally Beauty will not due to the fact that the incentive had a 10-year term.This is the first report that that includes West Gate Business Park(WGBP). Business Air, U.S. Aviation Group and Victor Technologies were granted Chapter 380 Property Tax grants in 2015, but were terminated in 2017 for the sale of the FBO (Business Air) and not meeting the valuation threshold requirements (USAG and Victor). O'Reilly Hotel and Convention Center and WinCo Foods also received Chapter 380 Property Tax Agreements in 2015 and will appear in the 2018 report. Sally Beauty received another incentive in 2016 and will be included in the 2018 report. Although a number of the ad valorem projects generate sales taxes,that would not have been generated in Denton if the business had not located in this community, this study does not include the sales taxes for the ad valorem only incentives. Table 4: City of Denton Chapter 380 Property Tax Agreements Business 0_ 6 .. Base Year of Agreement 2004 2006/2011 2008 2011 2012 2015 Incentive Term Cumulative Property Valuation $295,714,200 $628,358,362 $7,659,050 $32,975,885 $25,866,530 $16,751,544 $1,007,325,571 Cumulative Property Tax Generated $1,972,313 $4,129,695 $70,288 1 $227,091 $174,062 $110,619 $6,684,068 Less Property Tax Incentive $662,729 $371,437 $17,544 $60,978 $104,972 $122,555 $1,340,215 Net New Property Tax Revenue $1,309,584 $3,758,258 $52,744 $166,113 $69,090 ($11,936) $5,343,853 Cost/benefit Percentage 198% 1,012% 301% 272% 66% -10% 399% Jobs Created/Retained 450 19 2,211 'West Gate Business Park received o one-time grant in the amount of$50,000 in addition to the ad valorem rebate for 2016,which makes the net negative Chapter 380 Grants Based on Sales Tax Performance Table 5, which follows, details information through 2017 on economic development agreements that provided grants based on a percentage of the sales tax generated by the project. Four mixed-use developments have received sales tax incentives from the City. Golden Triangle Mall initiated its incentive in 2016. Construction is underway for the Buc-ee's Travel Center, which is estimated to come online in 2018. City of Denton Net Revenue Report Published October 2018 6 Table 5: City of Denton Chapter 380 Sales Tax Agreements Base Year of Agreement 2003 2007 2004 2010 Incentive Term 2005-2019 2012-2032 2009-2023 2016-2035 Cumulative Property Valuation $1,074,723,599 $803,336,673 $874,015,924 $410,400,904 $3,162,477,100 Cumulative Property Tax Generated $7,156,231 $5,524,752 $5,914,633 $2,769,895 $21,365,511 Cumulative Sales Tax Generated $19,196,174 $13,305,225 $1,384,194 $6,514,118 $40,399,711 Total Cumulative Property&Sales Tax $26,352,405 $18,829,977 $7,298,827 $9,284,013 $61,765,222 .• f,� .• ,. Net Property and Sales Tax Revenue $19,953,681 $13,243,724 $6,837,429 $9,107,839 $49,142,673 Cost/benefit Percentage 312% 237% 1,482% 5,170% 389% Jobs Created/Retained 973 1,265 318 1,000 3,556 Chart 1 below provides the sales taxes generated from the four developments and the rebate provided per the Chapter 380 Agreement. It is important to note that Golden Triangle Mall received an incentive for the renovations to the existing 1980 mall. GTM Development receives 50% of monthly sales tax receipts, less a monthly mall baseline amount established as $95,898. The incentive was initiated in the summer of 2016, so only half of a year of rebates were included in the report in 2016. 2017 represents the first full year of payments for GTM Development. Chart 1: Sales Tax Generated and Rebated ■Sales Tax Generated Sales Tax Rebate 24% City of Denton Net Revenue Report Published October 2018 7 Property and Sales Tax Summary Property Tax Summary The cost/benefit for all incentives based on property tax performance, tax abatement and Chapter 380 Agreements, is provided in Table 6 below. Results indicate that since 1999, the City of Denton has awarded $6.4 million in property related tax incentives, and in return, has benefited from a net increase in property tax revenues of$13.3 million. Over 3,980 jobs have been added as a result of these property-based incentives. Table 6: City of Denton Tax Abatements and Chapter 380 Property Tax Agreements Cumulative Property Valuation $2,982,617,949 Cumulative Property Tax Generated $19,704,068 Cumulative Sales Tax Generated $0 Cumulative Property&Sales Tax $19,704,068 Less Incentives $6,435,518 Net Property and Sales Tax Revenue $13,268,550 Cost/benefit Percentage 205% Jobs Created/Retained 3,980 Graph 1: Property Tax Generated and Abated/Rebated ■Property Tax Generated ■Property Tax Incentive $5'095'303 $1,340,21 $13,020,000 6 684 068 Chapter 380 Property Tax Tax Abatements Property and Sales Tax Summary The City of Denton has awarded a total of 28 incentives to foster development in the community. Eighteen are represented in the report. The remaining awards were terminated or not initiated in 2017. The City has invested $19.1 million in tax-related incentives, and in return, has benefited from a net increase in property and sales tax revenues in the amount of 62.4 million since the inception of the incentive program in 1999. The cost/benefit for City of Denton Net Revenue Report Published October 2018 8 all of the incentives awarded is 327%. Sales tax incentives represented the highest rate of return on investment at 389%followed by Chapter 380 property tax rebates and property tax abatements at 399%and 154%, respectively. Table 7: City of Denton Return Summary Cumulative Property Valuation $2,982,617,949 $3,162,477,100 $6,145,095,049 Cumulative Property Tax Generated $19,704,068 $21,365,511 $41,069,579 Cumulative Sales Tax Generated $0 $40,399,711 $40,399,711 Cumulative Property&Sales Tax $19,704,068 $61,765,222 $81,469,290 Less Incentives $6,435,518 $12,622,549 $19,058,067 Net Property and Sales Tax Revenue $13,268,550 $49,142,673 $62,411,223 Cost/benefit Percentage 205% 389% 327% Jobs Created/Retained 3,980 3,556 7,536 Direct and Indirect Impacts Graph 2: New Value Created in Denton $3,162,477,100 $3,500,000,000 $3,000,000,000 $1,975,292,378 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,007 325 571 $1,000,000,000 $500,000,000 Chapter 380 Chapter 380 Sales Property Tax Property Tax Tax Abatements ■Valuation City of Denton Net Revenue Report Published October 2018 9 Graph 3: New Jobs Created in Denton 3,556 4,000 3,500 2,211 3,000 2,500 1,769 2,000 1,500 1,000 500 0 Chapter 380 Chapter 380 Tax Property Tax Sales Tax Abatements ■Jobs Chapter 380 Grants Based on Combined Tax Performance and Development Tools The Department of Economic Development employs a number of economic development tools to drive economic growth in the community. Most recently, the City has utilized development districts; sales and use tax rebates; infrastructure programs; and hotel occupancy tax to finance public improvements and developments. This report will provide a brief description of the types of tax incentives offered, terms, thresholds required, and the incentive received by the company. 2015 represented one of the most active years of incentive investment and the use of multiple economic development tools to support projects. Table 8: Combined Tax Tool Incentive Summary WinCo Foods Distribution Infrastructure grant,sales and use tax for construction, property tax rebate and Westpark TIRZ 2 grant O'Reilly Hotel and Convention Center Infrastructure grant,sales and use tax for construction, property tax rebate and hotel occupancy tax grant Rayzor Ranch Development Sales tax and a Public Improvement District(PID) Railyard Downtown TIRZ 1 grant and lease Tax increment financing is a tool that local governments can use to publicly finance needed structural improvements and enhance infrastructure within a defined area (a Tax Increment Reinvestment Zone, or TIRZ) in order to stimulate private development and redevelopment. An ad valorem valuation base is established in the first year, and the revenue from the increased valuation from subsequent years is allocated to TIRZ development. The statutes that regulate tax increment financing are located in Chapter 311 of the Texas Tax Code, also known as the Tax Increment Financing Act. A Public Improvement District (PID) is a defined area where public improvements may be financed through the use of special assessments to property owners. The funds from the assessment can be used to maintain those improvements.The regulations for PIDs can be found under Chapter 372 of the Local Government Code. City of Denton Net Revenue Report Published October 2018 10 A Sales and Use Tax rebate for construction is accomplished through a Texas Direct Payment Permit. This incentive involves a rebate of all or a portion of the sales and use taxes for the purchase of construction materials that would generate additional local use taxes that the City of Denton would not otherwise receive. The permit allows for storage of materials without the payment of taxes until the location is determined, so they are not taxed when holding the goods. This program is regulated by the Texas Administrative Code (TAC) Title 34, Chapter 3, Subchapter O, Rule 3.28 and Tax Code Title 2, Subtitle E, Chapter 151. STATE AND LOCAL REVENUES City, State, and DCTA Sales Taxes Table 9, which follows, provides the breakdown of the total revenue to City, State, and the Denton County Transportation Authority (DCTA) from sales taxes generated at the major retail developments that have received incentives from the City of Denton. The State of Texas collects sales and use taxes from all retail sales and taxable services. The State has directly benefited from the incentives awarded for these mixed-use developments. Since 2005, the State of Texas has received a total of $168.3 million in additional sales tax revenues as a result of the incentives awarded by the City. The state revenues comprise 76% of the total sales taxes generated by these mixed-use centers. Table 9: City, State, and DCTA Sales Tax Composition Rayzor Unicorn Golden l����rc"ros 7ng�' Ranch La ke Triangle Mail Rates Tnt2wh Base Year of Agreement 2003 2007 2004 2010 Incentive Term Total Sales $1,279,744,933 $887,015,000 $92,279,600 $434,274,533 $2,693,314,067 Total City Sales Tax Generated $19,196,174 $13,305,225 $1,384,194 $6,514,118 $0.0150 $40,399,711 Total State Sales Tax Generated $79,984,058 $55,438,438 $5,767,475 $27,142,158 $0.0625 $168,332,129 Total DCTA Sales Tax Generated $6,398,725 $4,435,075 $461,398 $2,171,373 $0.0050 $13,466,570 Total Sales Tax Generated $105,578,957 $73,178,738 $7,613,067 $35,827,649 $0.0825 $222,198,411 Table 10: Total City, State, and Local Sales Tax Cost/benefit Denton Rayzor Unicorn Golden Development Base Year of Agreement 2003 2007 2004 2010 Incentive Term Sales Tax Generated $105,578,957 $73,178,738 $7,613,067 $35,827,649 $0.0825 $222,198,411 Less Sales Tax Incentive $6,398,724 $5,586,253 $461,398 $176,174 $12,622,549 Total Net Revenue $99,180,233 $67,592,485 $7,151,669 $35,651,475 $209,575,862 Cost/benefit Percentage 1,550% 1,210% 1,550% 20,237% 1,660% City of Denton Net Revenue Report Published October 2018 11 Chart 2: Sales Tax Composition Total City Sales Tax ■Total State Sales Tax ■Total DCTA Sales Tax it6% 18% DENTON COUNTY PROPERTY TAX GENERATION The 2017 report provides the ad valorem revenue that Denton County received from all of the incentives awarded by the City of Denton. The cost/benefit is also provided for the four Tax Abatements and the two Chapter 380 Agreements in which the County jointly participated with the City to stimulate economic growth. Chapter 311 and 312 of the Texas Property Tax Code authorize taxing entities to provide tax abatements. Chapter 381 of the Local Government Code authorizes counties to provide loans or grants to support economic development activities. Property Tax Abatements Table 11: Denton County Property Tax Abatements Peterbilt Motors ..Awunndr -Ana -A' L LA Year Abatement Approved 2001 2004 2008 2010 Incentive Term 10 Years 5 Years 7 Years 5 Years Abatement/Rebate 100% 30% 35% 60% Cumulative Property Valuation $39,091,296 $329,264,609 $372,994,884 $560,892,207 $1,302,242,996 County Cumulative Property Tax Generated $97,965 $856,180 $1,001,183 $1,472,039 $3,427,367 Less County Property Tax Abatement $56,774 $110,244 $316,661 $439,768 $923,447 County Net Property Tax Revenue $41,191 $745,936 $684,522 $1,032,271 $2,503,920 Cost/benefit Percentage 73% 677% 216% 235% 271% New Jobs Created 35 480 150 160 825 City of Denton Net Revenue Report Published October 2018 12 Chapter 380/381 Agreements Table 12: Denton County Property Tax Chapter 381 Rebates . . Incentive Term 5 Years 5 Years Abatement/Rebate 40% 25% Cumulative Property Valuation $295,714,200 $628,358,362 $924,072,562 Cumulative Property Tax Generated $764,167 $1,540,790 $2,304,957 Less Property Tax Incentive $125,516 $14,653 $140,169 Net New Property Tax Revenue $638,651 $1,526,137 $2,164,788 Return on Investment Percentage 509% 10,415% 1,544% Jobs Created/Retained 450 147 597 Property Tax Summary Table 13: Denton County Return from Property Tax Abatements and Chapter 380/381 Rebates Joint Participation City Participation IL Property Totals Cumulative Property $2,226,315,558 $756,302,391 $2,982,617,949 Valuation County Cumulative $5,732,324 $1,874,949 $7,607,273 Property Tax Generated Less County Property $1,063,616 $0 $1,063,616 Tax Abatement County Net Property Tax $4,668,708 $1,874,949 $6,543,657 Revenue Cost/benefit Percentage 439% 0 615% New Jobs Created 1,422 2,558 3,980 City of Denton Net Revenue Report Published October 2018 13 Graph 4: City/County Property Tax Agreements $923,447 $4,500,000 $4,000,000 $140,169 S A,1300,00() $3,000,000 $2,500,000 $2,(N)0,000 3.42 7,367 $1,500,000 S1,000,000 $wC1,000 $0 chapter 380 Property fax fax Abatc moots ■PropertyTax Generated o PropertyTax Incentive Table 14: Denton County Return Summary Cumulative Property Valuation $2,982,617,949 Cumulative Property Tax Generated $7,607,273 Less Incentives $1,063,616 Net Property Tax Revenue $6,543,657 Cost/benefit Percentage 615% New Jobs Created 3,980 Denton County has participated in a total of six Denton incentives to promote development in the local community. The County has invested a total of $1.1 million in tax related incentives, and in return, has benefited from a net increase in property tax revenues in the amount of $6.5 million since the inception of the incentive program in 1999. The cost/benefit for all of the incentives awarded (joint and City only) is 615%. The cost/benefit from all of the tax abatements and Chapter 380/381 property tax incentives was 450% and 1,703%, respectively. DENTON INDEPENDENT SCHOOL DISTRICT PROPERTY TAX GENERATION The Return on Investment Report was expanded in 2015 to include the ad valorem revenue that Denton Independent School District (DISD) has received from all the incentives awarded by the City of Denton. The cost/benefit is also provided for the two tax abatements in which DISD jointly participated with the City to stimulate economic growth. (Note: Texas school districts were at one time able to offer tax abatements similar to those of cities and counties, but that authority was repealed by the Texas Legislature). It is also important to note that the report uses the entire DISD tax rate, which includes the maintenance and operations and interest and sinking portions of the tax rate. City of Denton Net Revenue Report Published October 2018 14 Property Tax Abatements Table 15: DISD Property Tax Abatements MotorsUnited Copper Peterbilt Year Abatement Approved 1998 2001 Incentive Term 5 years 10 Years Abatement/Rebate 15% 100% Cumulative Property Valuation $422,085,765 $39,091,296 $461,177,061 DISD Cumulative Property Tax Generated $7,320,320 $644,587 $7,964,907 Less DISD Property Tax Abatement $250,680 $371,572 $622,252 DISD Net Property Tax Revenue $7,069,640 $273,015 $7,342,655 DISD Cost/benefit Percentage 2,820% 73% 1,180% New Jobs Created 265 35 300 Graph 5: DISD Property Tax Abatements S3,uQu,O[x) 57,000,000 56.0(X),(c)O SS'(100'X)0 54,000,000 53.a)U,000 52,o00,0ao S 1,000,U00 So Pmperty Tax Generated Property Tax Incentivm Table 16: DISD Return from City and DISD Agreements CrX*MVj;1r1gq1,1I:� Cumulative Property Valuation $461,177,061 $2,911,099,170 $3,372,276,231 DISD Cumulative Property Tax Generated $7,964,907 $43,151,391 $51,116,298 Less DISD Property Tax Abatement $622,252 $0 $622,252 DISD Net Property Tax Revenue $7,342,655 $43,151,391 $50,494,046 DISD Return on Investment Percentage 1180% N/A 8115% New Jobs Created 300 3,680 3,980 City of Denton Net Revenue Report Published October 2018 15 Chapter 380 Agreements DISD did not participate with the City of Denton's Chapter 380 Property Tax Agreements. Property Tax Summary Table 17: DISD Return Summary ITotal of all Property Incentives Property Totals Cumulative Property Valuation $3,372,276,231 Cumulative Property Tax Generated $51,116,298 Less Incentives $622,252 Net Property Tax Revenue $50,494,046 Return on Investment Percentage 8,115% New Jobs Created 3,980 Denton Independent School District has participated in two Denton tax abatement incentives to stimulate economic growth in the local community. DISD has invested a total of $622,252 in tax related incentives, and in return, has benefited from a net increase in property tax revenues in the amount of $50.5 million since the inception of the incentive program in 1999. The return on investment from all of the tax abatements alone was 5,601%. The cost/benefit from all of the incentives awarded is 8,115%. School finance involves a complex funding formula from a number of different federal, state and local funding sources. As aforementioned, the report uses the entire DISD tax rate, which includes the Maintenance and Operations (M&O) and Interest and Sinking (I&S) tax rates. The M&O portion of the tax rate is used for salaries, utilities, supplies etc. The I&S portion of the tax rate is used to fund payments on debt service for facilities and is the only portion of the DISD tax rate that is not affected by funding from the State of Texas. The two Denton tax abatement incentives represented in Table 15, that the ISD has participated in, include a complete 10-year history. DISD invested a total of$622,252 in tax related incentives, and in return, has benefited from a net increase in property tax revenues in the amount of$7.3 million from the two companies that received abatements.The return on investment from these tax abatements was 1,180%. City of Denton Net Revenue Report Published October 2018 16 APPENDIX A Appendix A: Incentive Projects Tax Abatements UNITED Name United Copper COPPER INDUSTRIES Year Applied 1998 Terms 25%for 6 years Threshold(s) $35 M, 250 jobs, $34K Average Wage United Copper received the City of Denton's first tax abatement. Three thresholds were set for the company to meet in order to receive a 25% abatement over a six-year term. The company did not reach the employment threshold in the Agreement and therefore did not receive the full 25% abatement. The percentage was reduced by the ratio that the threshold was missed. The figures represent ten years of economic impact. Although the tax abatement had a six-year term, standard economic development practice for impact analysis is ten years. MName Peterbilt Name Peterbilt 110Year Applied 2001 Year Applied 2016 Terms 100%for 10 years Terms 70%for 8 years Threshold(s) $5M, increment of building only Threshold(s) $18.5 M above base Peterbilt Motors agreement was an incentive for the expansion of the headquarters office and consolidation of regional sales and financing offices in the Metroplex. The agreement provided a 100% abatement on the increase in valuation over the 2001 valuation on the building located at 1700 Woodbrook. The base year valuation of the building in the amount of$1,933,540 was deducted from the calculations. Peterbilt received a 70% tax abatement for a term of eight years for a 17,500-square-foot expansion of their current manufacturing facility to improve material flow from trucks into the expanded metering center in 2015 (Phase 1). Their growth in 2014 resulted in a 20% increase in employment and a 32% increase in production levels. These increases have also been the driving force behind similar growth of other businesses in Denton that support Peterbilt.This project was completed in 2016.The Company requested an amendment to its Agreement to include the construction and equipping of a new stand-alone 102,000-square-foot building north of the existing plant in 2016 (Phase 11). The terms of the amendment for the new building are 70% for seven years (remainder of term). Peterbilt is Denton's largest private employer, with approximately 2,100 employees. Peterbilt did not meet the $18.5 million threshold,therefore;the abatement was not granted for tax year 2017. F)Owersi "I i Name Flowers Foods Year Applied 2003 Terms 35%for 5 years Threshold(s) PI: $5M, Pll:$20M, P111:$30M above base Flowers Foods purchased the former Andrew Corporation plant.The incentive is based on the increase in valuation over the existing valuation of the base year. Therefore, the 2004 building valuation of $1,920,009 was deducted from the calculations. Flowers Foods abatement was terminated after 2010 when they did not meet the threshold City of Denton Net Revenue Report Published October 2018 17 requirement, but this report continued to track the valuation for a 10-year period. Flowers Foods is one of Denton's top 10 private employers, with approximately 480 employees. Name Fastenal Year Applied 2004 Terms 35%for 5 years Threshold(s) $5M Fastenal completed a 200,000-square-foot regional headquarters/distribution center near the Denton Enterprise Airport in the fall of 2008.The tax abatement agreement requires a minimum threshold of$5,000,000 in valuation. 2013 was the final year of Fastenal's five-year agreement that provided a 35% abatement on the valuation of the building improvements and equipment. Fastenal employs 208. Name Aldi Year Applied 2007 Terms 100%for 5-7 years based on $2.5 infrastructure reimbursement Threshold(s) $25M Aldi's 500,000-square-foot distribution center was completed in 2009. The project required that Aldi construct a $2.5 million road that also services the Denton Enterprise Airport. Aldi received 100 percent tax abatement on all new valuation, except land, until they were reimbursed for the construction of the road or for a term of seven years. This is the only incentive that includes the abatement of inventory. Aldi employs 150 and services more than 25 Aldi grocery stores in the North Texas area.The first Denton Aldi grocery store opened in the summer of 2013. Name Target • Year Applied 2010 Terms 65%for 5 years Threshold(s) $40 M Target Corporation's 400,000-square-foot refrigerated/frozen food distribution center was constructed in 2012. This $100 million project received a 65%tax abatement for five years from the City to help offset costs to improve Airport and Corbin Roads. This facility services over 240 stores in nine states with frozen and perishable food products. Target opened in March 2013 and employs 160 area residents. I,S PEERLESS Name Peerless Year Applied 2011 Terms 40%for 5 years Threshold(s) $5M, 85 jobs with an Average Wage of$50,000 Peerless Manufacturing selected Denton to expand and consolidate their Texas operations. The company designs, engineers, and manufactures highly specialized filtration, separation equipment, industrial silencers, heat exchangers, and air pollution reduction systems to energy industry customers involved in gas and oil production, processing, and power generating. They constructed an 80,000 square foot manufacturing facility in 2013. The company received a five-year, 40% tax abatement from the City for the new facility. The Agreement was terminated when the property was sold and made the company ineligible for a tax abatement. City of Denton Net Revenue Report Published October 2018 18 Name Tetra Pak or Year Applied 2013 `TstraPak � Terms 65%for 4 years Threshold(s) $5M above base Tetra Pak Materials manufactures, processes, packages and distributes liquid foods all over the globe. The aseptic packaging process removes air and bacteria, which allows for a product shelf life of a minimum of six months. In 2000, the company added the Americas Global Information Management hub, a pilot research and development center, and relocated the U.S. Technical Service Center to Denton. In 2013, the company received a four-year 65% tax abatement for expanding their facility and relocating their corporate headquarters operations from Chicago to Denton. The increase in real and business personal property valuation of the project 32,000-square-foot expansion was $8.9 million, and Tetra Pak created a total of thirty-two new jobs with this expansion. The incentive initiated in 2015.Tetra Pak currently employs 375. Name West Gate Business Park(WGBP) Year Applied 2015, 2016 Tax Abatement �1ST_GNE Terms 60%>for HQ and major employer, 10 yrs. tlL Threshold(s) $3M West Gate Business Park received a ten-year 60% tax abatement in 2016 on improvements only to include Buildings 2 and 3 in the business park, which brings new Class A industrial/manufacturing space to Denton. West Gate Business Park could receive an additional 10% abatement for the location of a supplier to an existing primary industry and/or an additional 5% for the location of a national headquarters for a total abatement of up to 75%. The abatement will initiate the year following the year in which Building 2 receives a CO. A permit was issued for Building 2 in January 2018. It is anticipated that the abatement will be included in the 2019 or 2020 Net Revenue Report. CHAPTER 380 GRANTS Chapter 380 Grants Based on Property Tax Performance Name Sally Beauty: Name Sally Beauty: Morse St. Headquarters Year Applied 2003 Year Applied 2016 ' Terms 40%for 10 years Terms 50%for 3 years Threshold(s) $20 M Threshold(s) $28.6 M, 250 jobs, Avg. Wage %51,800 Sally Beauty Company received a grant equal to 40% of the property tax paid on new valuation created by the construction and equipping of a new international headquarters facility at Colorado Boulevard for a ten-year period. Valuation at the existing facility located at 3900 Morse was not eligible for consideration. The final tax year of the agreement with Sally Beauty was 2014. Sally Beauty is one of Denton's top 10 private employers, with approximately 950 employees. In 2016, Sally Beauty received a grant equal to 50% of the property tax paid on new valuation created by the complete interior remodel of its Morse property for a three-year period. Sally Beauty will continue to own and City of Denton Net Revenue Report Published October 2018 19 occupy both the Morse and Colorado properties in Denton. They are currently at capacity and will be transferring employees from their acquisitions of other companies and plan to add an additional 80 employees in the next two years. Sally Beauty should appear in the 2018 report. Name Granite Properties r' Year Applied 2010 Terms 50%for 7 years Threshold(s) PI: 250K Square Feet, PII: 50K Square Feet Granite Properties received a seven-year, 50 percent incentive on buildings and equipment. However, after three years of incentive payments, Granite Properties requested permission to sell a portion of their land and one building to Grand Mesa. The City of Denton entered into an agreement with Grand Mesa for the renovation of a 152,000-square-foot building and 36 acres of land at the Granite Point Business Park. The renovation and equipping of the building were performed for Schlumberger Technology Corporation. Grand Mesa assigned the incentive to Schlumberger in 2012. Schlumberger Name Schlumberger Year Applied 2012 Terms 50%for 7 years Threshold(s) $5 M,80 jobs, $45K Average Wage Schlumberger, a Fortune 500, French-owned oilfield service company, held a grand opening in 2011 for their 150,000-square-foot regional maintenance facility at the Granite Point Industrial Park. Renovation of the building increased the value by roughly $10 million. A Chapter 380 grant previously awarded to Granite Properties/Grand Mesa was transferred to the company as an incentive for the Denton location. Schlumberger employed 184 in 2016. i0stens Name Jostens Year Applied 2008 Terms 75%for 7 years Threshold(s) $5 M over base Jostens' incentive was based on the increased property tax on the building and equipment resulting from the expansion of an existing facility. Dollar amounts shown in this report reflect the deduction of Jostens' base year valuation of$11,569,410. Work on the Jostens project was completed in 2008, establishing 2009 as the first year of the incentive. Although the company met the contractual threshold of constructing the expansion and purchasing and/or moving more than $2 million in equipment to the facility, a significant amount of old equipment was removed, creating an overall reduction in the valuation for 2009. The 2010 valuation rose, showing an increase over the base year, but less than the 2009 decrease. Jostens is one of Denton's top 10 private employers, with approximately 450 employees. City of Denton Net Revenue Report Published October 2018 20 Name Safran/Labinal SAFRAN Year Applied 2011 L'`il,ol Terms 50%for 3 years Threshold(s) $5 M over base Labinal/Safran relocated and expanded their North American Wiring and Services Division headquarters and relocated over 700 employees to Denton and has invested nearly $5.8 million in building, site, and other improvements to the property located on Russell Newman Boulevard. They have also moved equipment and other business personal property to Denton that is valued at $6 million. The grant agreement provided a grant equal to 50% on the increment from the increase from the base valuation for a period of three years. Labinal/Safran is one of Denton's top 10 private employers, with approximately 727 employees. Mdl/IsiY Name Mayday 1 Year Applied 2012 Terms 75%for 10 years Threshold(s) $3 M over base Mayday Manufacturing/Tailwind Technologies manufactures precision bushings, sleeves, pins, and other machine parts used in the aerospace industry. Mayday Manufacturing was acquired by Ohio-based Tailwind Technologies in June 2009. Mayday provides just-in-time delivery of aerospace parts and operates the plant 24 hours a day, seven days a week to accomplish this goal. High Tech Metal Refinishing is a subcontractor that performs the anodizing, cadmium platings, chemical film, black oxide, hard foam, liquid penetrant inspection, magnetic particle inspection, priming, painting, passivation and thermal processing of PH seals. The company is co- located with Mayday providing for more efficient production and delivery capability. The agreement requires a minimum investment of $3 million in building, site and other improvements. The agreement stipulates that no valuation on the existing business personal property of Mayday Manufacturing and Hi-Tech Metal Refinishing will be included in this incentive. The contract provides a grant equal to 75% on the increment above the base valuation for a period of ten years. The company purchased an 80,000 square foot facility in 2012 and completed the 15,000 square foot expansion of the facility at the close of 2013. Mayday employs approximately 245. In 2017, Mayday received a Texas Enterprise Zone grant from the State of Texas for a 15,000 square-foot building expansion for additional production capacity and consolidation of shipping and inspection departments, as well as additional machinery and equipment spread over five years, primarily driven by production capacity associated with the expanded building footprint. Name U.S.Aviation Year Applied 2015 Aviation Terms 75%for 3 years Threshold(s) $5 M over base US Aviation Group (USAG), which is headquartered at the Denton Enterprise Airport, trains pilots from the United States and around the globe. Demand for USAG's commercial flight training is booming, and the company is expanding its existing flight simulation training facilities and has purchased additional simulation equipment and aircraft. This expansion will create 16 new jobs. USAG was awarded a 70% tax rebate for three years on their new capital investment of$10.7 million. Business Air assigned its airport lease to US Aviation in 2017, making USAG the sole Fixed Based Operator (FBO) at the Denton Enterprise Airport. USAG has over 150 employees. The grantee did not meet the required threshold for tax year 2017 and the Chapter 380 Agreement was terminated. No grant payments were made prior to termination. City of Denton Net Revenue Report Published October 2018 21 Name West Gate Business Park(WGBP) \V. �V ST(,aTL Year Applied 2015, 2016 Chapter 380 Agmt. Terms 70%for 10 years Threshold(s) $31VI In 2015, an incentive was granted to Westgate Business Park (WGBP). The industrial development received a minimum of 60% with an additional 5% for a national headquarters and/or ten percent for support of major employers not to exceed 75% of City ad valorem taxes attributable to improvements for a period of 10 years. WGBP includes three multi-tenant buildings totalling 413,000 square feet of new industrial/manufacturing space in Denton. In 2016, the Chapter 380 Agreement was amended to include a 70 percent rebate on Building 1 improvements (excluding land and business personal property) and to add a one-time grant payment in the amount of$50,000. A separate Tax Abatement Agreement for Buildings 2 and 3 was also approved so that WGBP could be eligible to apply for a tax abatement from Denton County.The terms of the abatement are: a 60 percent abatement of City ad valorem taxes attributable to new capital investments resulting in an increase of assessed value of real property improvements; the amount of the abatement may be increased by an additional 5 percent for a national headquarters and/or 10 percent for a supplier in support of major employers in Denton. Quality Industries leased a 86,500 square foot building for their metal fabrication operations at the industrial park and received their Certificate of Occupancy in 2017.They are also a supplier for a Denton major employer. Name Business Air Manufacturing(BAM) Year Applied 2015 Terms 70% up to $9.5M plus 5%for extension 2-9 years BuslnessAlr Threshold(s) PI: $15M, PII: $50M, PIII:$80M In 2015, a grant agreement was awarded to Business Air Manufacturing (BAM). The grant is equal to 70% of the increase in property tax revenues on the improvements to the building and new business personal property up to a maximum of $9,500,000 in increased valuation for a period of two years. The company may extend the length of this grant by attracting additional investment in the form business aircraft based at its facilities at the Denton Enterprise Airport by the specified date and investment level thresholds. In addition to a grant extension, Business Air would receive five percent of the increase in taxable valuation attributable to these new business aircraft for the duration of the grant extension. The company is expanding with plans to build a new 24,000-square-foot hangar with an additional 4,000 square feet of office space. The hangar space should allow the addition of 10 corporate aircraft with values ranging from $1.5 to $10 million per aircraft. In addition to the hangar, Business Air will be purchasing a corporate aircraft to be based at the airport for the exclusive use of providing air taxi service to the area.The incentive should begin in 2017. Business Air assigned its airport lease to US Aviation in 2017. Business Air was purchased by US Aviation Group in 2017 and was no longer operating or occupying property at 5007 and 4777 Airport Road, so the City terminated the grant. No payments were made to Business Air prior to termination. City of Denton Net Revenue Report Published October 2018 22 MICTOR Name Victor Technologies T£CNN0100/£S Year Applied 2015 Terms 65%for 7 years Threshold(s) $6.5M above base, 85 jobs with Average Wage of$28.81/hr. Victor Technologies is a global manufacturer dedicated to developing innovative advanced cutting, gas control, and specialty welding solutions. Founded in 1913, the original San Francisco manufacturing operations were relocated to their new headquarters in Denton in the mid-1960s. Victor Technologies is expanding the existing facility. Improvements to the existing operation will create approximately 30,000 square feet of Research and Development space. A new 185,400-square-foot warehouse and remodelled parking lots completed the renovations. The current operation employs 414 full time employees. Victor has a distribution center in DFW that employs about 100 people that will be transferred to the new facility in Denton. Over the next three years,Victor will create an additional 100 new jobs. Victor Technologies received an incentive equal to 65% of the increase in the City's ad valorem taxes for seven years while maintaining a minimum of 85 percent of new jobs created with an average wage of 28.81 per hour. It is anticipated that Victor's incentive will start in 2017. Victor did not meet the required threshold to receive the incentive and was terminated in 2017. No grant payments were made prior to termination. Chapter 380 Grants Based on Sales Tax Performance Name Denton Crossing Year Applied 2005 Terms One-third of sales taxes from development for 15 years Threshold(s) 450K Square feet of retail Denton Crossing is a 52-acre retail development that is comprised of 500,000 square feet of retail and commercial tenants. The incentive reimburses infrastructure costs for Spencer Road improvements. The development is home to: Best Buy, Kroger, Old Navy, Famous Footwear, Ulta, and Total Wine & More, to name a few.The City of Denton granted its first-ever sales tax incentive rebate of one-third of the sales tax generated by the project for a period of 15 years. A Home Goods was constructed in 2018. Name Unicorn Lake Year Applied 2004 Terms One-third of sales taxes from development for 15 years Threshold(s) 35K Square Feet of retail Unicorn Lake is a master-planned 134-acre mixed-use center that incorporates the urban style development of residential over retail along the lake. The City granted a rebate of one-third of the sales tax generated by the project for 15 years. The incentive reimburses infrastructure costs in return for the creation of an urban-style development, a roadway to provide needed access, and associated hardscape to create the desired pedestrian connectivity. The Villas of Tuscan Hills, a 116 lot residential community that overlooks the lake, provides luxury homes. BJ's Bewhouse, Blue Ginger Japanese Bistro, Dogwood Estates (an independent living community), the Brick House Gym, Cinemark, Hilton Homewood Suites, Washington Federal Savings and Loan, Towne Center Bank, and several medical offices represent some of the businesses that have located in the development. City of Denton Net Revenue Report Published October 2018 23 Name Rayzor Ranch Year Applied 2007 Rah Terms One-half of sales taxes from development for 25 years Threshold(s) PI: 400K Sq. Ft., PII: 270K (90%)4-1/18 300K Sq. Ft. of retail 7/1/18 The Rayzor Ranch agreement provides for a 50% share in the City's sales tax revenue generated by the project for a period of 25 years. Rayzor Ranch Marketplace completed over 582,000 square feet of retail and commercial space. Sam's and Wal-Mart anchor the Market Place with 137,381 and 189,929 square feet, respectively. Staff began tracking property tax revenues in 2009 and sales tax revenues in 2010 when these large retail boxes opened. Some of the new stores in the development include: Academy Sports and Outdoors, Taco Cabana, Kohl's, DK Foot and Casual, and Guitar Center. A Tuesday Morning and Marshalls are under construction at the development. The Rayzor Ranch Town Center located on the south side of the development will initiate in 2018. Heritage Trail Boulevard has been constructed to allow access to the next phases. Chili's, Raising Cane's, WinCo Foods, In-N-Out Burger, Chipotle, and Firehouse Subs are now open. An 11-story, 318-room Embassy Suites hotel and 70,000 square-foot Convention Center are planned to open in October 2017. An additional 15% sales tax rebate on the Rayzor Ranch Town Center and Marketplace have been added to offset the hotel and convention center until $5 million is reached. The Rayzor Ranch Public Improvement District (PID) was created in May of 2014 and includes approximately 230 acres owned by Allegiance Hillview, L.P. and DB Denton II, LLC ("Owners") located in the southeast quadrant of the intersection of West University Drive (U.S. Highway 380) and Interstate Highway 35. The property is being developed for commercial/retail and multi-family uses comparable in quality to the Rayzor Ranch project north of West University Drive, and will be unique and exceed the standards in the Denton Development Code. The required public improvements will be financed, in part, from the proceeds of District bonds issued by the City and secured solely by assessments levied against the property on a per-acre basis that takes into consideration permitted uses. Assessments will be secured by a lien on the property that is senior to private financing but junior to the lien for ad valorem taxes. No single-family uses will be assessed. No City property will be assessed, and the City will not otherwise have any liability to pay assessments. All costs of the collection and administration of the district will be paid by property owners as part of the annual instalments of assessments. Name Golden Triangle Mall Year Applied 2011 Terms One-half of sales taxes above base from development for 15 years Threshold(s) $9.5M GTM, 45-60M by GTM &tenants Golden Triangle Mall was purchased by the M.G. Herring Group and the Weitzman Group.The partnership has made renovations to the mall, including: the addition of restaurants and stores; improving the building fagade; creating a food court; and improving the parking lot and landscaping. Both phases of the renovations are now complete and include: the installation of energy efficient lighting, interior landscaping and updated finishes. The Golden Triangle Mall's J.C. Penney was one of the sites selected to include a Sephora and the Disney Store within the department store. Two restaurant pad sites for Taco Cabana and Corner Bakery have also recently opened at the mall. An international retailer, H and M, opened in August 2015. Francesca's also opened in 2016.The incentive is based on the increase in sales tax above the 2010 base sales tax generated for the development. City of Denton Net Revenue Report Published October 2018 24 Name Buc-ee's Travel Center Y J Year Applied 2015 Terms One-half of sales from retail &sit down, 25%for fast food & service for 25 years Threshold(s) $25M travel center Buc-ee's Travel Center is a commercial development that will include an approximately 53,000-square-foot retail store, fuel sales, a car wash, and peripheral development along 1-35E for future development.The main retail store and the associated fuel sales will be open 24 hours a day, seven days a week. The incentive reimburses the developer for public infrastructure improvements and other neighborhood/public amenities. The proposed development has resulted in the Texas Department of Transportation (TxDOT) advancing several mobility improvements to the intersections of Loop 288/1-illian Miller and 1-35E, Mayhill Road and 1-35E, and Brinker Road and 1-35E. In order to facilitate these improvements, TxDOT requires a local funding match of $2 million.The developer funded the $2 million,to be reimbursed as a part of the incentive agreement. Additionally, the developer will incur approximately $5.2 million in public infrastructure costs, including water, wastewater, storm sewer, right-of-way dedication, and constructing a new city street. The City has granted an incentive of 50% sales tax rebate for 25 years, on the Buc-ee's parcel as well as the outparcels. The first phase consists of 50% for 5 years for infrastructure improvements. The second phase grants a 50% sales tax rebate for the Buc-ee's travel center, retail and sit down restaurants; and 25% on remaining fast food and service. The project is currently under construction and is anticipated to come online in 2019. Chapter 380 Grants Based on Combined Tax Performance and Development Tools Wionft Name WinCo Foods FOODS Year 2015 Applied Terms Infra.$1M &$860K water&wastewater;construction sales& use taxes; 100%of the tax increment until costs of public impr. reimbursed,City 1:60%until project costs paid;City 2:additional 4 years of ad valorem Threshold(s) $50M, $850K sales tax for construction WinCo Foods acquired approximately 77 acres in the Westpark Tax Increment Reinvestment Zone Number Two (TIRZ 2) area to develop a regional, multi-state distribution facility for consumer products. The 800,000+/- square foot distribution facility located on the west side of Western Boulevard, just north of Airport Road. WinCo is a regional retailer with multiple distribution facilities across the United States. This particular project includes approximately $130 million in capital investment and will create 165 jobs with an annual payroll of around $7.2 million. The agreement with WinCo accomplishes two objectives: (1) full reimbursement of the cost of Phase 1 TIRZ 2 improvements using a combination of funding mechanisms; and (2) an economic development incentive of 60% of the City's ad valorem tax revenue for a period of four years following full reimbursement of Phase 1 improvements. The first term of the grant agreement ends when full reimbursement has occurred, and includes the following forms of reimbursement: up to$1 million for water lines, utilizing the City's Water Development Plan Line Fund; up City of Denton Net Revenue Report Published October 2018 to $865,000 in reimbursement for the sewer lines, utilizing the City's Wastewater Development Plan Line Fund; 100%of the Sales and Use Tax for construction materials,furniture, fixtures, and equipment for the construction of the project; 100% of the tax increment collected in the TIRZ 2 fund associated directly with WinCo, until full reimbursement occurs. This includes the City and County's 40% contribution to the TIRZ 2 Fund annually. WinCo will receive the City's remaining 60% of ad valorem revenue until full reimbursement occurs. It is anticipated that full reimbursement will occur in approximately four years and will be approximately $6.5 million. The first year after full reimbursement, the second term of the grant agreement initiates and will include the following: a 60% rebate of the City's ad valorem revenue for a period of four years,for an estimated total incentive of$1.7 million. The $1,865,000 grant for infrastructure improvements was completed. The local sales and use tax collected by the City on construction materials, furniture, fixtures, and equipment purchases for the development of the property was also completed. The TIRZ and ad valorem grants will begin in 2018. THE Name Railyard RAILYARD Year Applied 2015 Terms TIRZ No. 1 grant for$76,000 for 5 years,commercial lease at$9.75/Sq. Ft year 1& 3.7%increase after Threshold(S) TIRZ grant requires commercial lease to remain in effect,improvements in accordance with Agrmt. The Railyard downtown project is located in the Tax Increment Reinvestment Zone Number One (TIRZ 1), Downtown Implementation Plan (DTIP) and Transit Oriented Development (TOD) areas. Rail Yard Partners, LTD., renovated an existing 28,000-square-foot building as a part of a larger transit-oriented catalyst project. They invested an initial $12 million in the co-working and mixed-use space. The City leases 9,216 square feet for a collaborative working space. Hickory& Rail Ventures took over the management of the co-working space in 2018. The Agreement with Rail Yard Partners, LTD., involves an annual grant of$76,000 for five years,for a total incentive of $380,000. The Commercial Lease Agreement for the co-working space is a five year lease at $9.75 per square foot for year one, with an approximate 3.7 % increase in the cost annually thereafter, in addition to operating expenses including the City's pro rata share of real estate taxes, insurance, common area maintenance, and operating expenses. Name O'Reilly Year Applied 2015 Terms 100%of property, HOT& construction sales taxes generated by the project, cap is $54M, construction sales taxes reduced to 50%after threshold, 25 years Threshold(s) $80M investment and $20M increase above base, $850K sales tax for construction O'Reilly Hotel Partners Denton convention center and hotel development in the Rayzor Ranch Town Center includes a 300-room, full service Embassy Suites hotel, a 70,000-square-foot convention center, and a Houlihan's restaurant. The convention center meeting space can accommodate conventions of up to 650 participants and the grand banquet room can host events with up to 1,750 people. It is a major anchor for the Rayzor Ranch Town Center and capitalizes on the synergy from nearby shopping, entertainment, and dining. The Chapter 380 Agreement includes a 100% rebate of the ad valorem tax, hotel occupancy tax, and sales tax generated by the project. The term is for a maximum of 25 years or until the combined principal amount of $28 million and interest payment of $26 million, for a total aggregate amount of $54 million, is reached, whichever comes first. The incentive is capped at $54 million; however, staff estimates that the actual incentive to be City of Denton Net Revenue Report Published October 2018 26 between $30-$35 million.The incentive also includes 100%of the construction sales and use tax up to $850,000, at which time the grant will be reduced to 50%. The sales tax, Hotel Occupancy Tax, ad valorem and sales and use tax rebate for the construction and equipping of the facility will initiate in 2018. City of Denton Net Revenue Report Published October 2018 27 APPENDIX B Appendix B: Methodology In 2009, the City of Denton' Department of Economic Development created the initial Return on Investment Report to examine the fiscal impact made by the businesses that have received tax incentives from the City, evaluate the efficiency of the public investment, and guide future policy decisions. State and local sales tax revenues created by the sales tax incentives were added to the study in 2010. In 2013, the report was expanded to include the ad valorem revenue for Denton County, which includes both the incentives in which the County has partnered with the City, as well as the revenue from the incentives that the County did not invest in.The final taxing entity Denton Independent School District (DISD), was added in 2015. The report was redesigned in 2016. This report represents the sixth update of the report prepared eight years after the original report was created. The incentives are tracked for ten years regardless of the term. Standard economic development practice for impact analysis is ten years. For example, an incentive with a term for seven years is tracked for an additional three years until the ten-year period is reached. An incentive is not deducted for the remaining three years following the term.This is standard practice and also allows for more commensurable comparisons between incentives. The ad valorem or property tax valuation is based on the values that are released by the Denton Central Appraisal District (DCAD) for the previous tax year. The certified valuations, released in July, are compiled from the DCAD website and sent out on a City of Denton Verification Form to the appraisal district. This form also includes a request for the breakdown of the Business Personal Property (BPP) that is not available on the website and a section that notifies the City if the property is being contested. The incentive calculations occur for the uncontested properties following the receipt of the forms from DCAD. The City notifies DCAD if the threshold have been met by companies for all of the tax abatements. The tax bills are distributed from DCAD in October. The calculations for the contested properties are prepared upon receipt of the Verification Form from the appraisal district, which occurs sometime after October until the early part of the following year. Sales tax is collected by calendar year and is based on the allocation month that the sales tax report from the Texas Comptroller of Public Accounts is received. Sales tax is generated two months prior to the receipt of the reports from the state comptroller. Sales tax generated in December 2016 is reported to the City in February of 2017, for example. Historical tax rates for Denton County and DISD, dating back to 1999, were gathered for this study from DCAD, Denton County, and DISD. The terms for the incentives were provided by Denton County and DISD, as a number of the agreement terms and investment percentages differ from the terms of the City. Property tax is included from the base year of the economic development agreements or the first tax year that was available from DCAD when the initial report was compiled. Sales tax revenue reflects the revenues received since the initial tracking began or the grant payments were initiated. For example, the Unicorn Lake Agreement was approved in 2004; however, the first grant payment was made in 2009 after the thresholds were met. Property valuation for Unicorn Lake is cumulative since 2006 and sales tax is provided beginning in 2009. Sales tax monitoring for Rayzor Ranch began in 2010 prior to the receipt of the first payment in July 2012 to assist the City with preparing the 5-year forecast during the budgeting process. The incentive for Golden Triangle mall was initiated in the summer of 2016, so only half of a year of rebates are included in the report. Tracking for the development began in 2013. City of Denton Net Revenue Report Published October 2018 L This study seeks to aid in the decision making process by providing the net revenue from the incentivized projects. The calculations for the net revenue and cost/benefit are included below. Net Revenue = Revenues (property only and or sales tax generated) -incentive The report carries these calculations a step further to obtain the Cost/benefit of the incentive projects. Cost/benefit Percentage= Net revenue/incentive X 100 It is important to note that the report only gathers the sales tax generated from the projects which received a sales tax incentive. These include: Denton Crossing, Unicorn Lake, Rayzor Ranch and Golden Triangle Mall. Other projects, such as Schlumberger, generates sales taxes that would not have been generated in Denton if the business had not located in this community. This study takes a more conservative approach and does not include the sales taxes for the ad valorem only incentives. The rate of return provides the net revenue of the taxes generated relative to the cost of the incentive, as a ratio. The ratio of return for the City in 2016, for example, is 3:1. Another way of putting this is that the City received 3 times the revenue of the incentive foregone.The formula is presented below. Ratio of Return = Net Revenue (property only and or sales tax generated-incentive)/incentive City of Denton Net Revenue Report Published October 2018 29 Q Off`C D E V f�D U x W �{ A�Q 4R T•N E R5V\ 2017 Update Prepared by: Erica Sullivan, Economic Development Analyst OF DENTON City of Denton 215 E. McKinney Denton, Texas 76201 940-349-7776 City of Denton Net Revenue Report Published October 2018 30 Date: December 7, 2018 Report No. 2018-176 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Projects utilizing water and wastewater impact fees over the past 5-10 years. EXECUTIVE SUMMARY: During the November 13, 2018 City Council meeting, information was requested regarding how impact fees have been used in the past and how staff monitors impact fee revenue. Below is an overview of how staff currently monitors impact fee revenue and expenditures. DISCUSSION: In 1998, the City of Denton started collecting water and wastewater impact fees to fund the cost of growth- related infrastructure. The City has successfully completed four impact fee studies since 1998, each study calculates the appropriate recovery fee to fund eligible impact fee projects for a ten-year period. The State of Texas requires that these studies are updated every five years, allowing the City to confirm and identify growth -related infrastructure and the appropriate recovery fees to pay for that infrastructure. The City of Denton charges impact fees based on plat date, fees are then collected at the time of permitting. Each year, the Water and Wastewater Departments utilize impact fee revenue to fund debt service on eligible impact fee projects. Several impact fee-eligible projects service all zones across the City, such as treatment plants and transmission lines. For this reason, it's difficult to track impact fee revenue by individual project or impact fee zone. Staff tracks the total revenue for water and wastewater separately, this process insures that the total amount of impact fees collected do not exceed the total recoverable cost of eligible water and wastewater projects. Since 2014, the Water Department has received $25.7 million in total impact fee revenue and has utilized $18.5 million to fund debt service of projects. The Wastewater Department has received $12.4 million total in revenue and utilized $10.4 million to fund debt service. The two tables below, summarize impact fee revenue and the amount of revenue used to fund debt service since 2014. Water Impact Fees Fiscal Year Total Revenue Impact Fee Project Debt Service 2014 $ 3,524,313 $ 3,100,000 2015 $ 4,429,296 $ 3,600,000 2016 $ 4,983,401 $ 4,000,000 2017 $ 4,998,751 $ 4,000,000 2018 $ 7,837,963 $ 3,755,000 Total $ 25,773,724 $ 18,455,000 Wastewater Impact Fees Fiscal Year Total Revenue Impact Fee Project Debt Service 2014 $ 1,667,574 $ 1,100,000 2015 $ 2,046,725 $ 1,800,000 2016 $ 2,303,008 $ 2,000,000 2017 $ 2,410,274 $ 3,520,000 2018 $ 3,966,842 $ 2,000,000 Total $ 12,394,423 $ 10,420,000 Date: December 7, 2018 Report No. 2018-176 Staff has summarized the water and wastewater eligible impact fee projects below, these projects were identified in the 2013 and 2018 impact fee studies. The debt service listed above is associated with the following water and wastewater projects. CONCLUSION: Staff will be glad to provide any additional information upon request. ATTACHMENT(S): Water Impact Fee Projects Wastewater Impact Fee Projects STAFF CONTACT: Nick Vincent Utility Business Manager (940) 349-8063 nicholas.vincentkcityofdenton.com Date: December 7, 2018 Report No. 2018-176 Water Impact Fee Projects 1 Lake Ray Roberts 2 Lake Ray Roberts Wtr Treatment Plant 3 54"Transmission Line 4 Loop 288 Water Main, Sherman-UNT 5 Loop 288 Water Main, Sherman-380 6 NW Elevated Storage Tank 7 SW Pump Station 8 SW PS Oversize Discharge Line (30-36") 9 Vintage Oversize Line (12-20") 10 North-South Water Line, Phase I 11 Roselawn Elevated Storage Tank 12 Roselawn Water Line 13 Masch Branch Road Water Line Ext 14 US 380 Urban Utility Relocation 15 Rayzor Ranch Oversize Line (16-20") 16 North-South Water Line, Phase II 17 1-35 Parallel Line Crossing 18 High School Booster Pump Station 19 Elm/Loop 288 Water Lines 20 Alfred/John Paine Water Line 21 Southwest Elevated Storage Tank 22 McKinney Water Line and PRV 23 University Water Line and PRV 24 New McKenna Booster Pump Station 25 1-35W Water Line 26 1-35W/Corbin Water Line 27 South Central Transmission Lines 28 Riney Road Booster Pump Station 29 Ray Roberts WTP Expansion 30 1-35 E Frontage Road Water Line Betterment 31 Locust Water Line Upsize 32 Hickory Water Line Upsize 33 Jim Christal Oversize Line (16" to 20") 34 Jim Christal Oversize Line/1-35 Crossing 35 Water Impact Fee Report Preparation Date: December 7, 2018 Report No. 2018-176 Wastewater Impact Fee Projects 1 Pecan Creek WRP (15 mgd) 2 Pecan WRP (6 mgd) Expansion 3 S Wet Weather Lift Station/Detention Pond 4 Cooper Creek Outfall (Loop 288) 5 Krum Sewer Line 6 Graveyard Branch Interceptor 7 Pecan Creek Interceptor(Ph 1 & 2) 8 Pecan Creek Interceptor 1 9 Roark Branch Interceptor 10 State School Interceptor I 11 Carroll Ave Interceptor 12 Cooper Creek Interceptor 1 13 Cooper Creek Interceptor II 14 Cooper Creek Interceptor III 15 Cooper Creek Interceptor IV 16 Cooper Creek Lift Station/Detention Pond 17 Dry Fork Hickory Crk Trib 1 Interceptor 18 Elm Street Sewer Replacement 19 Hickory Creek Interceptor 1 20 Hickory Creek Interceptor II 21 Hickory Creek Interceptor III 22 Hickory Creek Interceptor IV 23 Hickory Creek Lift Station/Detention Pond 24 Hickory Creek Outfall 25 Pecan Creek Interceptor II 26 Pecan Creek Interceptor III 27 Pecan Creek Interceptor IV 28 Pecan Creek Interceptor V 29 State School Interceptor II 30 US 380 Utility Relocations 31 West Peak Flow Lift Station/Det. Pond 32 Westgate Heights Interceptor 33 Woodhaven Interceptor 34 Eagle Drive Sewer 35 Leatherwood Interceptor 36 State School Interceptor II 37 Audra Interceptor 38 Bonnie Brae Connector 39 Bonnie Brae Relocation 40 Mulberry Interceptor 41 Ranch View Interceptor 42 Wastewater Impact Fee Report Preparation Date: December 7, 2018 Report No. 2018-176 Date: December 7,2018 Report No. 2018-177 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Water service and bathroom facilities at Quakertown Park. BACKGROUND: In response to an inquiry regarding water availability and the construction of the bathroom facility in Quakertown Park, the Parks and Recreation Department's (PARD) is providing this report on park water connections and bathroom operations. The Park Maintenance Division is responsible for the care and maintenance of Quakertown Park and work diligently to assess and provide the services needed in this multi-use area. Water connections located in the parks and adjacent to the recreational facilities are installed and primarily used to provide a source of water for park maintenance activities. The connections are also used as a water resource for special events held in the park. In general, the water connections are not intended for public use. The connections are secured to conserve usage, control costs, and prevent damage. Water fountains providing drinking water are available to park visitors in park areas. Every year, water supplied to the parks is shut off from November 151h to March 151h for winterization. Bathroom facilities are also closed for annual maintenance, repair, and winterization. The bathrooms at North Lakes Park, South Lakes Park, and Fred Moore Park remain open to serve programs and events that continue throughout the winter. The bathroom facility planned for Quakertown Park is part of a Community Block Development Grant. The project must follow federal grant requirements in the acquisition and construction of the facility. The project has been out to bid twice with no bidder response. Parks is currently working with Community Development and Purchasing to determine next steps and available options for moving the project forward. A new timeline for construction will be developed once a course of action is determined. In the interim, the provision of one ADA compliant portable restroom would result in a monthly rental fee of$70.00 with an additional cost of$45.00 for bi- weekly waste removal and cleaning. The estimated cost for the remainder of the fiscal year is approximately$1,265 for one unit and$2,530 for two units. DISCUSSION: Parks currently budgets for and provides portable restrooms at Carl Gene Young Sr. Park, Lake Forest Park, and the disc golf course at North Lakes Park. Additional funding will be secured to provide one ADA compliant bathroom in Quakertown Park. Staff will monitor use and maintenance of the facility to determine if additional units are needed. Date: December 7,2018 Report No. 2018-177 STAFF CONTACT: Drew Huffman Park Superintendent Drew.Huffman(ab cityofdenton.com Council Meeting Revision Date Requests for Information 12/7/2018 Request Request Date Staff Responsible Status Requested By Work session on permitting options to incentivize affordable housing including a survey of practices from A progress update will be provided during the December 18 1 other municipalities. 6/26/2018 Kuechler work session. Annintor Develop a strategic plan for homeless shelters in Denton (current environment, capacity, need, emergency 21 circumstances, best practices, family shelter options). 7/17/2018 Kuechler A work session is planned for December 18. Armintor/Briggs/Meltzer Update on marketing/advertising policy and naming 3 opportunities at City facilities. 8/2/2018 Langley/Packan A work session is planned for February 26. Hudspeth Information on providing additional options for 4 broadband service aside from current service providers. 9/25/2018 Birdseye/Collister ISR will be provided in the December 21 Friday report. Briggs Information and recommendations on Denton's Smart Information will be provided in the December 21 Friday 5 City initiatives. 10/9/2018 Kraft/Wood report. Briggs/Meltzer Information was included in the November 21 staff report. A Strategy for addressing telecommunications and utility detailed ISR will be provided in a future Friday report. A 6 lines along Dallas Drive including pricing and timing. 10/16/2018 Canizares/Morrow/Estes work session is scheduled for February 5. Briggs Review of the City's agreement with the Denton Housing 7 Authority. 10/16/2018 Kuechler/Reinwand/Leal Information will be provided in a future Friday report. Briggs Information was included in the November 30 Friday report. Staff report on bike lane parking violations and Staff will provide additional updates once a formal enforcement and outreach methods to improve recommendation for traffic delineation options has been 8 compliance. 11/6/2018 Oliphant/Deshmukh identified. Meltzer/Armintor Staff report on how water and waste water fees have been used over the past 5-10 years by project, including the 91 amount collected and how the projects are tracked. 11/13/2018 Banks/Vincent ISR is provided in the December 7 Friday report. Armintor/Watts Information on if the tree mitigation fund is used to fund Information will be provided in the December 14 Friday 10 1 employee salaries. 11/13/2018 Packan/Cannone report. Briggs A status update was provided in the November 30 Friday Provide information on how quickly staff can proceed report. Staff will provide updates later in December once a 11 with installing windows at City Hall West. 11/13/2018 Canizares/Hartley project timeline has been established. Hudspeth Information on staff s ability use utility information to notify residents within 200' and 500' of a proposed Information will be provided in the December 14 Friday 121 development in addition to using DCAD data. 11/13/2018 McDonald/Leal report. Ryan Provide information on safety concerns with the Wells Fargo Parking Garage and confirm if there are similar Information will be provided in the December 14 Friday 13 concerns with the proposed garage at Park 7. 11/13/2018 McDonald/Cannone report. Briggs Council Meeting Revision Date Requests for Information 12/7/2018 Request Request Date Staff Responsible Status Requested By Information on alternative strategies to promote high-tech 14 entrepreneurship. 11/13/2018 Booth Information will be provided in a future Friday report. Meltzer Staff report on the City's current boring technology and if using more modern technology would be more efficient 15 and/or less expensive. 11/13/2018 Estes Information is provided in the December 7 Friday report. Briggs Staff report on establishing a sobering center in Denton similar to the ones recently opened in San Antonio, 16 Houston, and Austin. 11/13/2018 Dixon/Kuechler/Wood Information will be provided in a future Friday report. Armintor Staff report on the potential establishment of a citizens' Information will be provided in the December 14 Friday 17 tenant committee to advocate for renter rights. 11/13/2018 Lahart/McDonald/Leal report. Armintor Information on a potential program to incentivize residents to use doorbell monitoring technology to assist Information will be provided in the December 21 Friday 18 with public safety. 11/13/2018 Dixon/Padgett/Birdseye report. Hudspeth 19 Consider amending the Fire Code to allow firepits. 11/27/2018 Hedges/Lahart Information is provided in the December 7 Friday report. Briggs Information on the potential creation of a small business 20 or corridor reinvestment grant program. 11/27/2018 Booth Information will be provided in a future Friday report. Briggs Information on programs conducted by other municipalities to help persons experiencing homelessness 21 obtain photo IDs. 11/27/2018 Kuechler Information will be provided in a future Friday report. Armintor Staff report on the recent resolution passed by the City of Information will be provided in the December 14 Friday 22 Dallas to establish itself as a Welcoming City. 11/27/2018 Birdseye report. Armintor 23 Provide an update on the street failure issue. 11/27/2018 Estes Information will be provided in a future Friday report. Meltzer ISR on regional transportation efforts that are being 24 coordinated by NCTCOG. 11/27/2018 Canizares Information will be provided in a future Friday report. Hudspeth Information on what is being done with older, existing signage that is located directly behind the newly installed 25 wayfinding signage. 12/3/2018 McDonald/Estes Information is provided in the December 7 Friday report. Briggs Staff report on what it would take to design study requirements tailored specifically for Denton's geology to 12/3/2018 26 help establish a sound policy rationale. & 12/4/2018 Banks Information will be provided in a future Friday report. Meltzer Information on funding and coordination of community banners, such as the one displayed by the Community 27 Market. 12/4/2018 Birdseye/Barnett Information will be provided in a future Friday report. Briggs Staff report on having a separate Townhome/Condominium designation in the Denton 28 Development Code. 12/4/2018 McDonald/Cannone Information will be provided in a future Friday report. Armintor Staff report on on-street parking that was turned over to UNT, including a feasibility analysis of allowing 29 residents to use that parking. 12/4/2018 Deshmukh/Estes Information will be provided in a future Friday report. Hudspeth 30 1Create a unique identifier/number for each slide for Information will be provided in the December 14 Friday easier reference. 1 12/4/2018 Wood report. Hudspeth Council Meeting Revision Date Requests for Information 12/7/2018 Request Request Date Staff Responsible Status Requested By Information on installing a natural/planted trash can 31 screen at the MLK Recreation Center. 12/4/2018 Packan/Cox Information will be provided in a future Friday report. Hudspeth Other Council Information Requests 12/7/2018 Request Request Date Staff Responsible Status Requested By 1 Staff Report on commercial food diversion programs. 6/4/2018 Cox Information will be provided in a future Friday report. Briggs Information on the potential benefits of air quality 2 monitors in Denton. 9/17/2018 Barnett Information will be provided in a future Friday report. Meltzer Information on consultant recommendations for recycling 3 and bulk items. 11/5/2018 Cox Information will be provided in a future Friday report. Meltzer Staff report on rental property inspections including practices to address faulty roofs and mold and information on how other cities ensure compliance with Information will be provided in the December 14 Friday 4 the Tenant Bill of Rights. 11/6/2018 Lahart/McDonald report. Armintor Coordinate with TxDOT on Teasley and Pennsylvania to Information was provided in the November 16 and reduce speed on portion of Teasley and put a traffic light November 30 Friday report.Staff will provide updates once 5 at the intersection. 11/12/2018 Deshmukh/Estes a signal warrant analysis is conducted by TxDOT. Armintor Develop a comprehensive housing inventory of transitional and permanent supportive housing units in Staff is working on this project and will provide updates as 6 the city and perform a needs assessment. 11/13/2018 Kuechler it progresses. Armintor Analysis of major projects that were approved under the current Denton Development Code(DDC)that would not be acceptable under the proposed DDC and major projects that were denied under the current DDC that Information will be provided in the December 21 Friday 7 would be permissible under the proposed DDC. 11/13/2018 McDonald Ireport. IMeltzer Other Council Information Requests 12/7/2018 Request Request Date Staff Responsible Status Requested By Feedback from resident meeting regarding pedestrian safety concerns along and near Hickory Street. Solutions discussed included: -Need for additional lighting,preferably LED. -Change timing of light signals so that pedestrians have time to enter crosswalk prior to vehicles turning. -Paint crosswalks a brighter color or pattern. -Consider bump out corners and/or a roundabout. Other comments: -Mulberry and Avenue A:stop sign was removed and needs to be replaced,intersection is dark. -Mulberry and Carroll:Need new light with longer walk signal. -Consider in-ground temporary barriers to close off the square and/or Fry street to provide protection for event 8 attendees. 11/19/2018 Oliphant/Deshmukh/Estes Information is provided in the December 7 Friday report. Briggs Breakdown of gas well revenue received and how that 9 funding was used. 11/21/2018 Puente/Packan ISR is provided in the December 7 Friday report. Briggs Provide the date for each landfill permit-related expense highlighted in Table 1 of ISR 2018-155(Landfill Information will be covered in the January 8 Landfill 10 Expansion Permitting Process from Oct.26) 11/26/2018 Cox Expansion Permitting Process work session. Armintor Confirmation on if a new Specific Use Permit will be required for Serve Denton's Planned expansion of the 11 Wheeler House. 11/26/2018 Cannone/McDonald Information is provided in the December 7 Friday report. Briggs/Meltzer Information on the Fireside Park development including Information was provided in the November 30 Friday efforts to ensure pedestrian safety and maintain the 11/26/2018 report and December 7 Friday report.A public meeting is 12 character of the neighborhood. &11/28/2018 Cannone/Canizares scheduled for December 12. Briggs/Watts Information on the ability to adjust prices on waste 13 coming to our landfill from other municipalities. 11/28/2018 Cox Information will be provided in a future Friday report. Meltzer Information on introducing a curbside organics/composting collection program,including to 14 what extent a market can be found for the product. 11/28/2018 Cox Information will be provided in a future Friday report. Meltzer Information on the feasibility and requirements to make multi-family recycling universal,including the needed 15 education and outreach to minimize contamination risk. 11/28/2018 Cox Information will be provided in a future Friday report. Meltzer A status update is provided in the December 7 Friday Information on Zoning concern for a proposed batch report.Staff will provide updates once additional 16 plant off of Roselawn Drive. 11/29/2018 Cannone/McDonald information is received from TxDOT. Briggs Other Council Information Requests 12/7/2018 Request Request Date Staff Responsible Status Requested By Information on why the traffic signal at University and Malone switches to blinking red after midnight and if vehicle accident data supports potentially keeping the Information will be provided in the December 14 Friday 17 signals fully operational at all times. 12/2/2018 Deshmukh/Dixon report. Armintor Information on the addition of stop signs at Cabrillo and Sea Cove and Cabrillo and Wharfside in the Villages of 18 Carmel subdivision 12/2/2018 Deshmukh/Estes Infomiation will be provided in a future Friday report. Armintor Information on alternatives to calling the Police non- Information will be provided in the December 14 Friday 19 emergency line to notify Police of non-emergency issues. 12/3/2018 Dixon report. Hudspeth Crash data and speed mitigation options for W.Oak Information will be provided in the December 14 Friday 20 Street. 12/3/2018 Deshmukh/Dixon report. Meltzer Information will be provided in a future Friday and/or 21 Update on the Verizon pole attachment debt. 12/3/2018 Puente/Morrow Legal Status report. Meltzer Information on what can be done to address dumpsters blocking sidewalks,of particular concern is a property 22 located at 1000 Gregg Street. 12/4/2018 Cox/McDonald/Birdseye Information will be provided in a future Friday report. Briggs Update on all sidewalk projects that received Safe Routes to School funding,including Stuart to Ginnings and the 23 area surrounding Woodrow Elementary. 12/5/2018 Deshmukh/Estes/Oliphant Information is included in the December 7 Friday report. Briggs Cityof Denton City Hall 215 E. McKinney St. Denton,Texas 76201 www.cityofdenton.com DENTON Meeting Agenda City Council Tuesday, December 18,2018 2:00 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 Closed Meeting on Tuesday, December 18, 2018 at 2:00 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. Closed Meeting: A. ID 18-2067 Deliberations Regarding Personnel Matters - Under Texas Government Code Section 551.074. Discuss and deliberate regarding the evaluation of candidates and the appointment/employment of a Municipal Judge. 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. Following the completion of the Closed Meeting, the City Council will convene in a Work Session to consider the following items: 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 December 18,2018. 3. Work Session Reports A. ID 18-1894 Receive a report update from staff, hold a discussion, and give staff direction regarding the design and construction of the new North Lakes Dog Park. B. ID 18-2065 Receive a report, hold a discussion, and give staff feedback and direction regarding the Page I Printed on 121712018 City Council Meeting Agenda December 18, 2018 Denton County Homeless Leadership Team Shelter Planning Workgroup's planning and recommendations. C. ID 18-2122 Receive a report, hold a discussion, and give staff direction regarding research on fee waiver or fee reimbursement programs for affordable housing and the potential for an affordable housing fee reimbursement program. D. ID 18-2153 Receive a report from staff, hold a discussion, and give staff direction regarding the funding and improvement plan of the IOOF Cemetery and related infrastructure. 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 3. PRESENTATION FROM MEMBERS OF THE PUBLIC A. Review of procedures for addressing the City Council. 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 — _). 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 Page 2 Printed on 121712018 City Council Meeting Agenda December 18, 2018 Agenda Items A — _ 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 18-2043 Consider approval of the minutes of November 5, November 6, November 13, November 27,December 3,and December 4,2018. B. ID 18-2051 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton and Denton County Friends of the Family; providing for the expenditure of funds; and providing for an effective date. ($600) C. ID 18-2116 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with Freese and Nichols, Inc. to assist in developing a Water Distribution Asset Management Plan, including, strategic planning, maturity assessment, and risk-based assessments of pipeline assets as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6590-045 - Professional Services Agreement awarded to Freese and Nichols, Inc., in the not-to-exceed amount of $215,200). The Public Utilities Board recommends approval 0. D. ID 18-2118 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 through the Buy Board Cooperative Purchasing Network Contract # 515-16 for the acquisition of one (1) Directional Boring Machine for the Water Distribution Department; providing for the expenditure of funds therefor; and providing an effective date (File 6880- awarded to Vermeer Equipment of Texas, Inc., in the amount of $137,464.40). The Public Utilities Board recommends approval(—). E. ID 18-2119 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 Electric Utility Overhead Distribution Conductors for the City of Denton Distribution Center; providing for the expenditure of funds therefor; and providing an effective date (RFP 6563-awarded to Wesco Distribution, Inc., in the five (5) year not-to-exceed amount of $500,000 and Anixter, Inc., in the five (5) year not-to-exceed amount of $3,500,000,in a total not-to-exceed amount of$4,000,000). F. ID 18-2120 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to the Advisory Services Frame Agreement between the City of Denton and DNV GL Noble Denton USA, LLC, to develop an integration of their Synergi Electric planning software to the ITRON Meter Data Management System (MDMS) software for Denton Municipal Electric, amending the contract approved by Purchasing Staff on May 25, 2017, in the not-to-exceed amount of $50,000. 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 6445 - providing for an additional expenditure amount not-to-exceed $45,336, for a total contract amount not-to-exceed$95,336). The Public Utilities Board recommends approval 0. Page 3 Printed on 121712018 City Council Meeting Agenda December 18, 2018 G. ID 18-2130 Consider approval of a resolution by the City of Denton authorizing the City Manager, or his designee, to accept the 2018 State Homeland Security Program (SHSP) Grant (Grant No. 3324402) in the amount of $24,000 from the State of Texas, Office of the Governor, through a grant from the US Department of Homeland Security for the period of October 1,2018 through September 30,2019;providing an effective date. H. ID 18-2143 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the approval of a fifth amendment to a Professional Services Agreement between the City of Denton and Freese and Nichols, Inc., amending the contract approved by City Council on October 19, 2010 in the not-to-exceed amount of $4,501,530, amended by Amendments 1-4 approved by the City Manager and City Council, said fifth amendment to provide additional engineering and design services relating to the Mayhill Road Widening and Improvements project in the amount of $537,376; providing for the expenditure of funds therefor; and providing an effective date (File 4511-providing for an additional fifth amendment expenditure amount not-to-exceed $537,376,with the total contract amount not-to-exceed$6,232,904). 1. ID 18-2144 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the City Manager to execute a facility public works contract with 308 Construction, LLC, for the remodel of the Fleet Services breakroom and restroom located at 804 Texas Street; providing for the expenditure of funds therefor; and providing an effective date (IFB 6881 - awarded to 308 Construction, LLC, in the not-to-exceed amount of$173,625). J. ID 18-2145 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 through the Texas Multiple Award Schedule Program (TXMAS) Contract Number TXMAS-17-7102 with Watson Furniture Group, for the purchase of Police department Public Safety Communications furniture consoles, freight, and installation services; providing for the expenditure of funds therefor; and providing an effective date (File 6939 -awarded to Watson Furniture Group in the not-to-exceed amount of$131,578). 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 18-2121 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the City Manager to execute an Individual and Aggregate Stop Loss Insurance contract with United Healthcare Insurance Company; providing for the expenditure of funds therefor; and providing an effective date (RFP 6922 - awarded to United Healthcare Insurance Company for three (3) years, with the option to renew for two (2) additional years, in a total five (5) year not-to-exceed amount of$11,393,000). 6. PUBLIC HEARINGS A. ID 18-1734 Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, accepting the visions, goals, recommendations, and implementation strategy proposed in the Oak Gateway Area Plan, the planning area is generally located south of Page 4 Printed on 121712018 City Council Meeting Agenda December 18, 2018 Panhandle Street, north of Interstate 35 (I-35), east of Bonnie Brae Street, and west of Carroll Boulevard; and providing an effective date. The Oak Gateway Area Plan Steering Committee recommends approval (0-0). The Planning and Zoning Commission recommends approval(0-0). B. Z18-0022a Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a request by Kirkman Engineering for a zoning change from Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district and use classification to a Neighborhood Residential Mixed Use (NRMU) zoning district and use classification, on approximately 9.91 acres of land generally located west of Mockingbird Lane and south of the Mingo Road 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. THE PLANNING AND ZONING COMMISSION CONTINUED THIS ITEM TO A DATE UNCERTAIN (6-0). (Z18-0022, Mockingbird Multi-Family, Ron Menguita). C. 518-0005a Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a request by Kirkman Engineering for a Specific Use Permit (SUP) to allow for a multi-family dwelling use on approximately 9.91 acres of land generally located west of Mockingbird Lane and south of the Mingo Road in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, providing a severability clause and an effective date. THE PLANNING AND ZONING COMMISSION CONTINUED THIS ITEM TO A DATE UNCERTAIN(6-0). (S 18-0005,Mockingbird Multi-Family,Ron Menguita). D. Z18-0021g Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a zoning change from Neighborhood Residential 2 (NR-2) to a Neighborhood Residential Mixed-Use (NRMU) District on two adjacent tracts, one of approximately 5.723 acres and the other of approximately 4.389 acres. The subject site is generally located southwest of the intersection of Teasley Lane and Pennsylvania Drive, 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. STAFF HAS POSTPONED THIS ITEM TO THE JANUARY 15, 2019 CITY COUNCIL MEETING. E. PDA18-0001a Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending Ordinance 2000-007 to provide for an amendment to the Concept Plan and approval of a Detailed Plan for Planned Development 115 (PD-115) District to depict a single-family residential development on approximately 78 acres of land generally located west side of North Bonnie Brae Street, approximately 250 feet south of US Highway 77/North Elm 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. The Planning and Zoning Commission recommends approval with conditions (7-0). Page 5 Printed on 121712018 City Council Meeting Agenda December 18, 2018 (PDA18-0001,Kings Ridge,Julie Wyatt) F. S18-0009b Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas approving a specific use permit to allow a 70-foot monopole tower with a ten-foot lightning rod and associated equipment room on approximately 0.0091 acres of land situated in a self-storage facility located at 816 Frame 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. The Planning and Zoning Commission recommends approval (7-0). (S18-0009, Verizon Wireless I, Cindy Jackson) G. S18-0002c Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, approving a specific use permit to allow Quick Vehicle Servicing with conditions in Suite #110 and Suite #111 of a self-storage facility located at 2820 Virginia Circle 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. The Planning and Zoning Commission recommends approval (7-0). (S 18-0002, Budget Self Storage, Cindy Jackson) H. ID 18-2101 Hold a public hearing regarding the 2018 Water and Wastewater Impact Fee Study. I. ID 18-2150 Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding amending the City's Water & Wastewater Design Criteria Manual, to update it;providing a severability clause and an effective date. J. ID 18-2151 Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding amending the City's Stormwater Design Criteria Manual, to update it; providing a severability clause and an effective date. K. ID 18-2152 Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding amending the City's Standard Details, to update them; providing a severability clause and an effective date. 7. 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. Page 6 Printed on 121712018 City Council Meeting Agenda December 18, 2018 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 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 121712018 wmm::�I December 2018 Sunday Monday Tuesday Wednesday 71hursday Friday Saturday 1 2 3 4 5 6 7 8 11:30 am Council 10:30am Committee on 4 p.m. Public Art Luncheon Citizen Engagement 5:00pm Board of Committee 11:00 Development 1:30pm Committee on Ethics Code Review the Environment 2:00 pm CC Work 6pm Park Board Session 6:30 pm CC Regular Session 9 10 11 12 13 14 15 9:00am Public Utilities 11:00am Mobility 11:00am EDP Board- Board Committee-cancelled cancelled 5:30pm Traffic Safety (1) 11:00 Development 5:30pm HLC 5:00pm P&ZWork Commission Code Review 1:00 pm 2nd Tuesday Session Session 6:30pm P&ZRegular Se ssio n 16 17 18 19 20 21 22 4:00 pm ZBA 2:00 pm CC Work HaBSCo Meeting Session ('1)11:00Development 6:30 pm CC Regular Code Review Session 23 24 25 26 27 29 29 Christmas Eve - No Council Meeting City Holiday Christmas Day - City Holiday 30 31 12/7/2018 12:58 PM January 2019 1 2 3 4 5 No C o un c it Me a tin g 4:OOpm Public At Coru nittee 6 7 8 9 10 11 12 11:30 am Council �1:00am Mobility 11:00amEDP Luncheon Committee 1:30pm Committee on the 2:00pm CC Work Session 5:OOpmP&Z Work Session Environment 6:30 pm CC Regular 6:30pm P&Z Regular Sess ion Session 13 14 15 16 17 18 19 9:00am Public Utilities 2:00pm CC Work Session 4:00pmHaBSCoMV eting Board 6:30 pm CC Regular Session 5:3Opm HLC 20 21 22 23 24 25 26 No Council Meeting 11:OOamTIF Board(fIRZ#1) 5:00pm P&Z Work Session 6:30pm P&ZRegular Session 27 28 29 30 31 6:00pm Public Utilities No Council Meeting Bo a rd 4:OOpm ZBA Future Work Session Items 12/7/2018 Meeting Date Currently Slated Work Session Items Notes Time is reserved to 11-Dec BMR/Rubble review finalists for Historic Preservation LINT Athletic Facility Processing Business Municipal Judge 1pm Start Time Tyson Development Master Plan Master Plan Case Analysis interviews 18-Dec IOOF Cemetery North Lakes Dog Affordable housing Strategic Plan for Fence 13am Start Time Park incentives Homeless Shelters Improvements 7-Jan Lunch 19 8am start time for Municipal Judge Block for Municipal Library Annual Citywide Strategic Interviews Judge interviews Report Plan Update DME Risk SRO/Collegiate Landfill Expansion 8-Jan Management Policy Floodplain CRS Housing Permitting Process Cole/Hunter Construction Code Special Event Recycling Business 15-Jan Development Review Ordinance Update Case Analysis City Hall East Facility Develoment Service American Legion Location will be City 4-Feb Lunch Animal Shelter* Plan for PD Fees Hall Cultural District Hall East/Police HQ Solid Waste Mid- Housing Tax Credit Dallas/Teasley 1001 Mayhill Facility 5-Feb Year Budget Review Applications Telecom Poles Improvements Cole/Hunter Development Follow-Downtown Design Denton Right-of-Way 12-Feb Up Standards Development Code Ordinance I9-Feb Meeting cancelled due to Denton County Days in Austin Update on Work Session E-Cigarette Marketing/Naming 26-Feb Strategy Session Airport Governance Enforcement Policy Employee Ethics Council Appointee 4-Mar Lunch Fire Diversity Policy Review Process Purchasing Manual DEC Noise Bonnie Brae and 5-Mar Update Mitigation Scripture Tract Mews Streets New Market Tax 19-Mar Credits Patrick Park Tennis Center Home Chemical Credit and Collection Business 26-Mar Collections Study Case Analysis Enhanced Leachate Recirculation Yard Waste South Lakes Park Business Case Collection Business Solid Waste Rate Date TBD Parking Lot Analysis Case Analysis Discussion Scheduled from 10/23 Work Session Top 5 from 11/27 Work Session *Will include overview of Fel-V and FIV testing Construction Projects Report Week of December 10-16, 2018 CITY IMPROVING JC1F DENTINFor general inquiries and questions, please contact the Project Management Office at(940) 349-7227 DEProposed Date Proposed Date Other Department Updated Information/ Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes CURRENT PROJECTS See Yellow Highlighted for Major Closures LINT 2018 Residence Hall Project Coordinate with Ave.A Maple Eagle 3/19/18 2/28/19 (Both SB Lanes Closed) Engineering N/A LINT (940)349-8910 Ave. C Hickory Mulberry 9/24/18 1/2/19 LINT Monument Wall Public Works LINTProject (940)349-8905 (Road Closure) Inspections Water Improvements Bowling Green St. Georgetown Auburn 11/29/18 2/25/19 (Daily Street Closure will re-open end Water 11/7/18 (940)349-7167 Expedited Start from o each day) 12/10/18 Bonnie Brae St. Roselawn North of 7/1/2017 7/1/2019 Street Widening Engineering 6/14/18 (940)349-8910 Vintage (Phase 1) Londonderry Street Improvements Camden Ct. Londonderry Dead End 10/1/18 1/18/19 Phase II of III Streets 9/24/18 (940)349-7160 (Street Closure) Transmission Distribution Collins St. Eagle Locust 11/26/18 12/21/18 Improvements DME N/A (940)349-8700 Extended Completion from 12/7/18 (Street Closure) Dallas Dr. Intersection of Teasley 11/12/18 2/22/19 Turn Lane Upgrade Streets 11/5/18 (940)349-7160 (Temporary Lane Closure) Eagle Dr. Elm Carroll 12/3/18 5/31/19 Drainage and Water Improvements Engineering (940)349-8910 (Street Closure) Box Culvert Installation Part of Eagle Elm St. Eagle Maple 10/22/18 1/31/19 Engineering 10/11/18 Communications,visited (940)349-8910 (Temporary Lane Closures) businesses on 10/11 City of FM 2181 Denton/Corinth Lillian Miller 7/11/17 2/1/20 Street Widening TxDOT TxDOT (940)-387-1414 City limits Fulton St. Oak Broadway 6/7/18 12/14/18 Water Main Construction Water 6/5/18 (940)349-7167 Extended Completion from (Street Closure) 12/7/18 Page 1 of 5 Proposed Date Proposed Date Other Department Updated Information/ Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes Hickory St. Ave C Ave B 9/24/18 1/2/19 Phase III Street Reconstruction Streets 9/12/18 (940)349-7160 (Street Closure) Wastewater Improvements Nextdoor Kendo h Ln. Underwood Willowwood 11/26/18 2 7 19 Extended Completion from p / / (Daily Street Closure will re-open end Wastewater N/A Notification, (940)349-7300 of each day) Door Hanger 1/31/19 Londonderry Street Improvements Kingswood Ct. Londonderry Dead End 10/1/18 1/18/19 Phase II of III Streets 9/24/18 (940)349-7160 Street Closure Londonderry Street Improvements Londonderry Ln. Teasley Hollyhill 11/12/18 1/18/19 Phase III of III Streets 9/25/18 (940)349-7160 (Street Closure) Manhattan Dr. Yellowstone Shermah 11/26/18 3/29/19 Street Reconstruction Streets 11/14/18 (940)349-7160 (Temporary Lane Closure) Mayhill Rd. Intersection of Gayla 11/26/18 12/10/18 Part of Mayhill Street Widening Engineering (940)349-8910 (Road Closure with Detour) Mayhill Rd. US 380 Edwards 9/1/17 2/1/20 Street Widening Engineering 1/3/18, 1/24/18 Door Hangers (940)349-8910 (Temporary Lane Closures) McKinney St. Woodrow Jannie 12/10/18 1/11/19 Utility Improvements Engineering (940)349-8910 New Project (Temporary Outside Lane Closure) Mistywood Ln. Woodhaven Jamestown 11/7/18 1/3/19 Wastewater Main ReconstructionWastewater 8/23/18 (940)349-7300 (Temporary Lane Closures) Parking Garage Construction Building Mulberry St. Bell Industrial 10/15/18 12/10/18 Contractor N/A Outside Contractor (940)349-8360 (Street Closure) Inspections Myrtle St. Eagle Maple 9/4/18 5/31/19 Eagle Drainage Improvements Engineering 8/21/18 Contacted DCTA (940)349-8910 (Street Closure) Oak St. North Texas Thomas 12/3/18 12/14/18 Sidewalk Improvements Engineering (940)349-8910 (Temporary Outside Lane Closure) Paisley St. Frame Ruddell 10/15/18 1/25/19 Street Reconstruction Streets 10/3/18 (940)349-7160 (Temporary Lane Closures) Pinehurst Ct. Wintercreek Cul de Sac 11/12/18 12/14/18 Sidewalk Repair Streets 11/5/18 (940)349-7160 (Temporary Lane Closures) Prominence Pkwy. Mayhill Atlanta 1/31/18 12/28/18 Water and Wastewater Crossing Engineering 1/24/18 Door Hangers (940)349-8910 (Road Closure) Page 2 of 5 Proposed Date Proposed Date Other Department Updated Information/ Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes Riney Rd. N. Elm Solana 9/29/17 12/28/18 Road Removal and Replacement Engineering Yes Electronic Signs (940)349-8910 (Road Closure) Rockwood Ln. Hangers 11 Royal Mist wood 11/26/18 12/21/18 Rockwood Drainage Improvements Drainage23 18 Door Han 940 349-8488 y Misty (Intermitten Street Closure) / / g ( ) Royal Ln. Royal Rockwood 11/26/18 12/21/18 Rockwood Drainage ImprovementsDrainage 11/23/18 (940)349-8488 (Intermitten Street Closure) Street Panel Replacement/Sidewalk Seven Oaks Ln. Rambling Brook Glen Falls 12/7/18 12/21/18 Repair Streets 11/7/18 (940)349-7160 Delayed Start from 11/14/18 (Temporary Lane Closures) Shady Oaks Dr. Teasley Woodrow 12/3/18 12/28/18 Base Repairs Streets Electronic Signs Meet with business (940)349-7160 Completion Extended from (Temporary Lane Closure) owners 12/17/18 Sierra Dr. Yellowstone Sherman 11/26/18 3/29/19 Street Reconstruction Streets 11/14/18 (940)349-7160 (Temporary Lane Closure) Lowe's Water, Drainage, Road Construction Contacted Spencer Rd. Mayhill Driveway (Road Closure)4/2/18 12/28/18 Water 3/16/2018, 9/14 departments (940)349-8910 affected Street Widening Ft. Worth Dr. IH 35E 0.26 mi south of 12/3/18 TBD Public Meeting US 377 � � FM 1830 (Temporary Lane Closures during non- TxDOT 9/25/18 10/8 (940)387-1414 peak traffic) Walnut St. Locust Austin 10/29/18 12/30/18 Atmos Service Connection Engineering N/A (940)349-8914 (Street Closure) COMPLETED PROJECTS Fairway Dr. Ft.Worth Club View 11/12/18 11/21/18 Street Panel Repair Streets 11/5/18 (940)349-7160 (Temporary Lane Closure) Jim Christal Rd. Western Blvd Scripture 7/3/18 11/26/18 Utility Line Construction Water/WW N/A Contacted (940)349-8463 (Road Closure) Businesses affected Dead End Street Reconstruction Nextdoor Kendoph Ln. Willowwood 11/26/18 12/3/18 Streets N/A Notification, (940)349-7160 New Completion South (Street Closure) Door Han2er Lakeview Blvd. Draught Horse 801 Lakeview 11/26/18 12/21/18 Street Panel Repair Streets 11/14/18 (940)349-7160 Expedited Completion (Temporary Lane Closure) Page 3 of 5 Proposed Date Proposed Date Other Department Updated Information/ Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes Londonderry Ln. Westminster Hollyhill 11/5/18 12/13/18 Water/Wastewater ImprovementsWater 9/25/18 (940)349-7167 New Completion (Street Closure) Palmer Dr. Sherman Peach 11/12/18 11/16/18 Street Resurfacing Streets 11/5/18 (940)349-7160 Expedited Completion from (Road Closure) 12/14/18 Swan Park Dr. Glen Falls Seven Oaks 11/14/18 12/21/18 Sidewalk Repair/Panel Replacement Streets 11/7/18 (940)349-7160 Expedited Completion (Temporary Lane Closures) UPCOMING PROJECTS Atlas Dr. Redstone Hercules 1/4/19 3/4/19 Wastewater Main ReconstructionWastewater (940)349-7300 (Temporary Lane Closures) Bonnie Brae St. Roselawn 135E 1/15/19 1/15/20 North South Water Main Phase 2 Water (940)349-8910 (Temporary Lane Closures) Wastewater Main Reconstruction Fulton St. Congress Gregg 2/8/19 3/23/19 Pase I of II Wastewater (940)349-7300 (Temporary Lane Closures) Hettie St. Paisley Davis 9/30/19 11/2/19 Water,Wastewater, and Streets Multiple Hickory Creek Rd. Teasley Riverpass 1/1/19 6/1/20 Street Widening Engineering (940)349-8910 (Temporary Lane Closures) Phase I-Storm Water Improvements Hinkle Dr. University Windsor 1/1/19 1/1/20 (Magnolia Drainage Ph 11 Engineering 11/13/18 (940)349-8910 Temporary Lane Closures) Kings Row Yellowstone Sherman 1/25/19 Street Reconstruction Streets (940)349-7160 (Temporary Lane Closure) Laguna Dr. Yellowstone Sherman 1/25/19 Street Reconstruction Streets (940)349-7160 (Temporary Lane Closure) Mistywood Ln. Rockwood Jamestown 1/3/19 3/5/19 Rockwood Drainage Improvements (940)349-8488 (Intermitten Street Closure) Panhandle St. Carroll Bolivar TBD TBD Street Resurfacing, Curb and Gutter Streets 4/9/18 Door Hangers (940)349-7160 (Temporary Lane Closures) Page 4 of 5 Proposed Date Proposed Date Other Department Updated Information/ Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes PEC 4- Engineering In Design Installing Underground Box Culvert Engineering 11/13/18 (940)349-8910 Kansas City Drainage and Roadway Construction Roselawn Dr. Bonnie Brae Southern RR TBD TBD (Bonnie Brae Phase 1 Engineering N/A (940)349-8910 One Lane traffic control) Stuart Rd. Windsor Kings Row TBD TBD Concrete Curb and Gutter Repair Streets (940)349-7160 (Temporary Lane Closures) Thomas St. Panhandle Oak 2/1/19 TBD Streets Construction Streets (940)349-7160 Vintage Blvd. US 377 135W 3/1/2019 2021 Street Widening Engineering (940)349-8910 (Bonnie Brae Phase 2) Yellowstone Kings Row Monterey 2/1/2019 Street Reconstruction Streets (940)349-7160 (Temporary Lane Closure) Page 5 of 5