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122118 Friday Staff Report `;;F City Manager's Office DENTON 215 E. McKinney St., Denton, TX 76201 • (940) 349-8307 MEMORANDUM DATE: December 21, 2018 TO: The Honorable Mayor Watts and Council Members FROM: Todd Hileman, City Manager SUBJECT: Friday Staff Report I. Council Schedule A. Meetings 1. No City Council Meeting Tuesday, December 25, 2018. 2. No Agenda Committee Meeting Wednesday, December 26, 2018. B. Upcoming Events 1. Third Annual State of the City, January 17, 2019 from 6:00-8:30 p.m. at the Embassy Suites Denton Convention Center 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. Holiday Operating Hours and Closings — City of Denton administrative offices will be closed on Monday, Dec. 24 and Tuesday, Dec. 25 in observance of the Christmas federal holiday; and Tuesday, Jan. 1, 2019, in observance of New Year's Day. The attached press release details all of the service impacts related to the upcoming holidays. On behalf of all City of Denton employees, have a safe and happy holiday season. Jessica Rogers, Public Affairs. B. City Council Agenda Template — During the Dec. 4 Committee on Citizen Engagement (COCE) meeting, the COCE reviewed two minor changes proposed to the City Council meeting agenda template with the requested goal to make it easier for residents and visitors to see and differentiate when the afternoon work OUR CORE VALUES Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service session portion of the meeting begins and when the regular business meeting begins. The attached PDF shows proposed changes in yellow to 1) clearly state the start times at the top of the agenda(or state if the regular business meeting will follow at the conclusion of the work session) and 2) show better separation by bolding when the regular business meeting agenda begins in what is usually a multi-page agenda. The revised template is planned for use beginning for the January 8, 2019 City Council meeting, unless questions or concerns are received. Staff contact: Sarah Kuechler, Public Affairs C. US Radiopharmaceuticals — On July 16, 2018, a final order was issued by the Texas Department of State Health Services(DSHS)denying an application by US Radiopharmaceuticals (USR) for a radioactive material license. USR was ordered to begin decommissioning the facility including proper disposal of radioactive material currently at its facility.This week,on December 18,DSHS issued a notice of violation against USR for violating the terms of the order and not submitting the required decommissioning plan (see attached). An administrative penalty has been proposed of $10,000 per day up to $2.2M. The company will have an opportunity to comply, accept the proposed action, or contest the notice of violation through an informal conference or formal hearing. This will likely take some time to resolve;however, staff will continue to monitor and provide updates. Staff contact: Sarah Kuechler, Public Affairs D. Council Member Briggs Appointed to Serve on National League of Cities' Committee—Council Member Briggs has been appointed to the National League of Cities (NLC) 2019 Energy, Environment, and Natural Resources (EENR) federal advocacy committee. This committee has the lead responsibility for developing NLC's federal policy positions on issues involving air quality, water quality, energy policy, national wetlands policy, noise control, and solid and hazardous waste management. The appointment was announced by NLC president and Gary, Indiana mayor, Karen Freeman-Wilson. Please see the attached press release for additional details. Staff contact: Jessica Rogers, Public Affairs E. Update on Fine Arts Theatre —Asbestos abatement at the Fine Arts Theatre will begin the first week of January 2019, and the owners will move straight into the necessary demolition work after that. This phase of the project is expected to be complete between the end of February and mid-March. After that, the roof structure will be assessed to determine the best method of installing a new roof. Once that phase is complete, the architects and engineers will make a final pass through the building to determine if anything found behind the walls would cause changes in the current rehabilitation plans. At that time,the owners will be able to determine final costs. The owners still plan to apply for historic tax credits and have started that process. The owners stated they anticipate approaching the City in March regarding financial assistance to complete the rehabilitation. Note: removal of the theatre seats will begin this week. The architects have determined that they have no historic value. If community members are interested in the theatre seats,they can contact the owners at 940-891-2947. Staff contact: Caroline Booth, Economic Development F. Carl Young and Quakertown Park Restroom Project Timeline — Staff was asked to provide information on the bidding history for Carl Young Park and Quakertown Park restroom projects. The Carl Young Park restroom project has been advertised three times and the Quakertown Park restroom project has been advertised twice. Initial bids were rejected on both projects due to costs being higher than anticipated. Subsequent solicitations resulted in no bids; feedback provided from prospective bidders on the reason for not bidding included the limited availability of subcontractors and other staffing-related issues. Below are a few details related to the solicitation process for both projects: Carl Young Park Restroom Project 6/2/15 Approved for CDBG funds in the 2015 Action Plan—Resolution R2015-016—Approved Budget$85,000 - Budget Transfer of$29,585 completed 4/30/18 for a total current budget of$114,585 IFB #6733 Construction of Carl Young Splash Park Restrooms 5/18/2018 Bid Request Issued 5/31/2018 Pre-bid meeting 6/7/2018 Due Date for Bids -Proposals rejected because of high pricing IFB #6875 Construction of Carl Young Park Restrooms 8/31/2018 Bid Request Issued 9/10/2018 Pre-Bid Meeting 10/2/2018 Due Date for Bids -No Bids IFB#6925 Construction of Carl Young Park Restrooms Project 10/31/2018 Bid Request Issued 11/12/2018 Pre-bid meeting 12/4/2018 Due Date for Bids -No Bids Quakertown Park Restroom Project 6/7/2016 Approved for CDBG funds in the 2015 Action Plan— Resolution R2016-013 —Approved Budget $152,000 IFB# 6819 Construction of Quakertown Park Restrooms 8/31/2018 Bid Request Issued 9/10/2018 Pre-Bid Meeting 10/2/2018 Due Date for Bids -No Bids IFB#6924 Construction of Quakertown Park Restrooms 10/31/2018 Bid Request Issued 11/12/2018 Pre-bid meeting 12/4/2018 Due Date for Bids -No Bids Staff from Parks and Recreation and Community Development met on Friday, Dec. 14 to discuss the best options to proceed. Staff determined that the best option is to bid the projects for prefabricated structures. Foundation design will be conducted by the selected firm, and foundation construction will be conducted either in-house or by a local contractor. Prefabricated restrooms provide a cost effective, durable option that can be fully operational shortly after delivery. The funding that is currently allocated for both projects is anticipated not to be sufficient to complete these improvements. Staff currently plans to use 915/916 funding to help offset any deficiencies. Staff is hoping to bid the prefabricated restrooms in January, present to City Council in February/March, and start construction in May. Parks and Recreation has ordered a temporary portable restroom for Quakertown Park,which is anticipated to arrive the last week of December. Staff contact: Drew Huffman, Parks and Recreation. G. Fire Department Recruitment Video — DTV teamed up with the Denton Fire Department to produce a new recruitment video that rolled out on Monday. An important mantra about Denton firefighters includes words like honor, dedication, and service. By watching the video, you'll have a greater appreciation why dedicated Denton firefighters work so diligently to take care of our community - and each other. In the last 4 days the video has been viewed more than 1,300 times. To apply to become a firefighter, the next civil service examination is Jan. 12, 2019 and the deadline to register is Jan. 4, 2019. Video link: https://youtu.be/OgPZESWMTcw. Staff contact: Billy Matthews, DTV. H. Emily Fowler Central Library Pet Tree—Give some comfort to those spending the holidays waiting for their forever home. Emily Fowler Central Library is accepting donated items for the City of Denton Animal Shelter now through Jan. 4. Citizens are being asked to help Santa by bringing gifts for local shelter animals at the Linda McNatt Animal Care and Adoption Center. Donated items can be left for the animals under the tree and they will be delivered to the . shelter. To the right is a picture of the pet tree, which has been an annual tradition at the Emily Fowler Central Library for the last 9 years. Staff contact: Kimberly Wells, Library I. City Hall West Window Replacement Schedule—At the November 13,2018, City Council Work Session, City Council directed staff to develop a plan to replace the windows at the City Hall West facility. Due to the historical significance of City Hall West, a proposal was solicited from the Architexas historic preservation architecture firm, who has the appropriate experience to assist the City in this effort. Architexas is also the firm that facilitated the City Hall West Steering Committee process. The fee proposal, after negotiations, is currently at $29,800. The construction budget for window replacement is approximately $320,000. The project timeline from design initiation to City acceptance is approximately ten months. Below is the estimated project timeline for window replacement at City Hall West. • Design Services: 8 weeks o Start Date: January 21 o End Date: March 28 • Texas Historic Commission Review of Plans: 2 weeks o Start Date: March 29 o End Date: April 12 • Construction Bid: 4 weeks o Start Date: May 7 o End Date: June 7 • Bid Review: 2 weeks o Start Date: June 7 o End Date: June 21 • Construction Period: 12 weeks (3 months) o Start Date: June 24 o End Date: September 24 City of Denton Acceptance: October 2019 Staff contact: Mario Canizares, CMO J. Stop Signs in the Villages of Carmel — Staff has received requests from several residents in the Villages of Carmel to have stop signs installed at Camino Real and Sea Cove Lane and Camino Real and Wharfside Place. Staff is going to conduct a traffic analysis along Camino Real once school is back in session and traffic patterns return to normal in January. Staff will provide an update on the potential installation of stop signs following the conclusion of their analysis along Camino Real. Staff contact: Pritam Deshmukh, Capital Projects K. New Development Tree Canopy Requirements — Mayor Watts requested information on tree canopy requirements for new developments in reference to the proposed dog park at North Lakes Park. The Denton Development Code (DDC) Subchapter 13.7.13 requires all new developments to have a specified percentage of landscape area and tree canopy based on the zoning district. The planned dog park will be located in the Neighborhood Residential Mixed Use 12 zoning district, which requires 40 percent landscape area and 45 percent tree canopy cover (see DDC excerpt below). Current plans include the planting of 94 additional trees at the site at a cost of$37,600. Staff contact: Gary Packan and Haywood Morgan, Parks and Recreation Landscape and Tree Canopy Requirements Percent Landscape Percent Tree Canopy Districts area Cover Neighborhood Residential Neighborhood Residential 6 40% 50% Neighborhood Residential Mixed Use 12 40% 45% Neighborhood Residential Mixed Use 20% 40% L. City Hall Signs — At the December 11, 2018 City Council Meeting, Council Member Briggs requested that Staff look at options of replacing the wooden monument sign at City Hall. Facilities Management and Parks Staff are taking inventory of all parks and facility monument signs around the City. Once the inventory is completed, a series of design options will be completed to provide City Council with costs and a plan to replace the signs throughout the City. The inventory should be completed within three weeks after the start of the calendar year and then another four-six weeks to complete the design options. Staff contact: Gary Packan, Parks and Recreation/Dean Hartley, Facilities Management M. Safety Cat Condos for Barn/Feral Cats — Installation of new safety cat condos is nearing completion for barn and feral cats at the Linda McNatt Animal Care & Adoption Center. The barn/feral cat program is structured to remove feral cats from urban areas, have them sterilized, and relocate them to more functional environments such as barns to help address rodents and other small pests. The new safety condos will improve the safety of staff and volunteers interacting with the feral cats and enhance the experience for feral cats while they are at the shelter. Below is an image of the new safety condos. Staff contact: Tiffany Thomson, Customer Service NNW -- —� N. Sponsorship Contract with the Denton County Livestock Association — On Tuesday, December 4, the City Council approved a sponsorship contract in the amount of $400 with the Denton County Livestock Association for their 2019 Public Speaking Contest. The City Council requested additional information regarding this event which staff is providing herein. The 2019 Public Speaking Contest is scheduled for March 24-30, 2019 and will be held at the North Texas State Fair Grounds in conjunction with the Denton County Youth Fair. Each contestant is required to pay a$5 entry fee and present a 3-7 minute speech on any topic using research and organizational skills to a panel of three judges. Judging for the event will be held on March 26 at 1:00 p.m. and awards will be presented following the event. The Association uses the proceeds of the entry fee to purchase ribbons, trophies or plaques given to contestants, provide water and snacks for judges and contestants, and to cover expenses for the use of the facility. Staff contact: Tony Puente, Finance III. Attachments A. Holiday Operating Hours Press Release B. Draft Agenda Template C. Council Member Briggs NLC Committee Press Release D. US Radiopharmaceuticals Notice of Violation IV. Informal Staff Reports A. 2018-187 Municipal IDs B. 2018-188 Plan for Dumpsters Obstructing Sidewalks C. 2018-189 Use of Utility Billing Information for Development Public Hearing Notifications D. 2018-190 Cole and Hunter Ranch Master-Planned Communities E. 2018-191 Townhome or Condominium Designation F. 2018-192 City of Dallas Welcoming City Information G. 2018-193 Surveillance Rating for Utility System Revenue Bonds H. 2018-194 Gas Well Setback Distance Study V. Council Information A. Council Meeting Requests for Information B. Other Council Requests for Information C. Council Calendar D. Future Work Session Items E. Street Construction Report -40 o FOR IMMEDIATE RELEASE DENTON Jessica Rogers • (940) 349-7531 • Jessica.Rogers@cityofdenton.com Holiday Operating Hours and Closings City offices closed Dec. 24-25 and Jan. 1 DENTON, TX, Dec. 18, 2018 - City of Denton administrative offices will be closed on Monday, Dec. 24 and Tuesday, Dec. 25 in observance of the Christmas federal holiday; and Tuesday, Jan. 1, 2019, in observance of New Year's Day. Libraries All three library branches will be closed Sunday, Dec. 23 through Tuesday, Dec. 25 resuming regular business hours on Wednesday, Dec. 26. All branches will close Monday, Dec. 31 at 6 p.m. and will remain closed through Tuesday, Jan. 1. All branches will reopen on Wednesday, Jan. 2 and resume regular business hours. Parks and Recreation All Parks and Recreation facilities will be closed Monday, Dec. 24; Tuesday, Dec. 25; and Tuesday, Jan. 1. On Monday, Dec. 31, the American Legion Hall will close at 3 p.m. and all other Parks and Recreation facilities will close at 6 p.m. Public Safety Public safety personnel will be on duty throughout the holidays. The Denton Police Department can be reached at their non-emergency number, which is (940) 349-8181, and in case of an emergency, dial 911. Solid Waste and Recycling There will be no curbside collection on Tuesday, Dec. 25 or Tuesday, Jan. 1. Collection will be delayed one day during these weeks. The City of Denton Landfill at ECO-W.E.R.C.S will be closed on Tuesday, Dec. 25 and Tuesday, Jan. 1. Check www.dentonrecycles.com for current schedule information. Utilities Customer Service will be closed on Monday, Dec. 24; Tuesday, Dec. 25; and Tuesday, Jan. 1. To report a utility service emergency, call utilities dispatch at(940) 349-7000. OUR CORE VALUES Integrity•Fiscal Responsibility•Transparency• Outstanding Customer Service ADA/EOE/ADEA www.cityofdenton.com TDD(800)735-2989 Airport Air traffic control tower services are not affected by the holiday and will remain open from 6 a.m. to 10 p.m. and the airfield will remain open 24 hours per day. Animal Services Animal Services will be closed on Monday, Dec. 24; Tuesday, Dec. 25; and Tuesday, Jan. 1. To report an animal non-emergency, call (940) 349-8181 and select option 8. On behalf of the City of Denton employees, have a safe and happy holiday. Visit www.cityofdenton.com for more news and to stay updated. 2 PROPOSED AGENDA TEMPLATE REVISIONS HIGHLIGHTED IN YELLOW Cityof Denton City Hall 215 E. McKinney St. Denton,Texas 76201 Itomm www.cityofdenton.com DENTON Meeting Agenda City Council Tuesday, March 5,2019 2:00 PM Work Session Room&Council Chambers WORK SESSION BEGINS AT 2:00 P.M.IN THE WORK SESSION ROOM REGULAR MEETING BEGINS AT 6:30 P.M.IN THE COUNCIL CHAMBERS After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, March 5, 2019 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. 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 3. Work Session Reports Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended,or as otherwise allowed by law. 1. Closed Meeting: Any final action, decision, or vote on a matter deliberated in a Closed Meeting will only be taken in an Open Meeting that is held in compliance with Texas Government Code, Chapter 551, except to the extent such final action, decision, or vote is taken in the Closed Meeting in accordance with the provisions of §551.086 of the Texas Government Code (the `Public Power Exception'). The City Council reserves the right to adjourn into a Closed Meeting or Executive Session as authorized by Tex. Gov't. Code, §551.001, et seq. (The Texas Open Meetings Act) on any item on its open meeting agenda or to reconvene in a continuation of the Closed Meeting on the Closed Meeting items noted above, in accordance with the Texas Open Meetings Act, including, without limitation§551.071-551.086 of the Texas Open Meetings Act. REGULAR MEETING OF THE CITY OF DENTON CITY COUNCIL AT 6:30 P.M. IN THE COUNCIL CHAMBERS AT CITY HALL, 215 E. MCKINNEY STREET, DENTON, TEXAS, AT WHICH THE FOLLOWING ITEMS WILL BE CONSIDERED: 1. PLEDGE OF ALLEGIANCE Page I Printed on 1211812018 City Council Meeting Agenda March 5,2019 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 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. 5. ITEMS FOR INDIVIDUAL CONSIDERATION—CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS 6. ITEMS FOR INDIVIDUAL CONSIDERATION 7. PUBLIC HEARINGS 8. CONCLUDING ITEMS Page 2 Printed on 1211812018 City Council Meeting Agenda March 5,2019 A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting topics,above posted. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas,on the day of ,2018 at o'clock(a.m.)(p.m.) CITY SECRETARY 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 3 Printed on 1211812018 -40 o FOR IMMEDIATE RELEASE DENTON Jessica Rogers • (940) 349-7531 • Jessica.Rogers@cityofdenton.com Council Member Briggs Appointed to Serve on National League of Cities' Energy, Environment, and Natural Resources Committee DENTON, TX, Dec. 20, 2018—Denton City Council Member Keely G. Briggs has been appointed to the National League of Cities (NLC) 2019 Energy, Environment, and Natural Resources (EENR) federal advocacy committee. This committee has the lead responsibility for developing NLC's federal policy positions on issues involving air quality, water quality, energy policy, national wetlands policy, noise control, and solid and hazardous waste management. The appointment was announced by NLC president and Gary, Indiana mayor, Karen Freeman- Wilson. "I am thankful for the opportunity to continue to serve on the National League of Cities Energy, Environment, and Natural Resources Committee," said Council Member Briggs. "Thanks to the continuing efforts of our citizens, staff, and City leadership, Denton is a recognized leader among cities across the United States. Serving on this team alongside representatives from other leading cities is an effort to ensure that national policies are informed by relevant and workable solutions that have been developed, implemented, and proven at the local level. Now more than ever, strong advocacy by local leaders is needed at the federal level in these key areas." As a committee member, Briggs will play a key role in shaping NLC's policy positions and advocate on behalf of America's cities and towns before Congress, with the administration and at home. "Our federal advocacy committees help ensure that policymakers in Washington know what's happening on the ground in our communities—and what is needed from our federal partners," said Karen Freeman-Wilson. "I am proud to have Council Member Briggs join NLC's Energy, Environment, and Natural Resources Committee on behalf of her residents. Together, with a team of local leaders from around the country, we will work to solve the most pressing challenges facing our communities." The leadership of this year's committee will consist of Chair Hattie Portis-Jones, Councilmember, Fairburn, Georgia; Vice Chair TJ Cawley, Mayor, Morrisville,North Carolina; and Vice Chair Gerry Horak, Mayor Pro Tem, Fort Collins, Colorado. For more information on NLC's federal advocacy committees, visit: www.nlc.org/advocacy/committees. Visit www.cityofdenton.com for more news and to stay updated. OUR CORE VALUES Integrity•Fiscal Responsibility•Transparency• Outstanding Customer Service ADA/EOE/ADEA www.cityofdenton.com TDD(800)735-2989 U , TEXAS Texas Department of State 1Services Healtha Services coamnsimW CERTIFIED MAIL # 7017 - RETURN RECEIPT REQUESTED FIRST-CLASS MAIL December 18, 2018 Case No. 3001190043 US Radiopharmaceuticals Corpolration ATTN: Paul ]. Crowe 1107 Snowberry Strout Park City, UT 84098 Notice of Violation (NOV) and Complaint for the for the Assessment of Administrative Penalties, us adiophar aceuticals Corporation Dear Mr. Crowe; The Department of State Health Services (Department) has reviewed the records related to an enforcement case against US Radiopharmaceoticals Corporation (Respondent). As a result of the review, the Department has determined the Respondent failed to comply with applicable provisions of Texas Radiation Control Act (Act), codified at Chapter 401 of the Texas Health .__a. _ afet C " Tit S of the Texas Administrative Code (TAQ §§289,201, et seq, the Department's regulations for radiation control (Roles). The Department is authorized to enforce the Act, codified at Chapter 401 o the Tex, health and Safety Code, and the Department"s Roles. Copies of the Act and Rules, together with related information and materials, are available online at www dshs texas. ov-radiation. y this Notice of Violation (NOV) and or plaint (jointly Notice), the Department proposes an administrative penalty in the amount of $10,000.00 per day of violation (not to exceed 2,2 0,000), pursuant to and in accordance with the following statutory and regulatory authorities: Tex. health and Safety Code 401®3 4(a)-(b)a "(a) The department may assess an administrative penalty as provided by this section and _Sections 401., 8 -401.390 against a_person who causes, suffers, allows, or permits a violation of a provision of this chapter relating to an activity P.O.Box 149347 - Austin,' - I - wwwdsftt0=qW US Radiopharmaceuticals corporation December 18, 2018 Page 2 under the department's jurisdiction, a rule or order adopted by the department- under this chapter, or a condition of a license or registration issued by the department, (b) The penalty for each violation may not exceed $10,000 a day for a person who violates this chapter or a rule, order, license, or registration issued under this chapter. Each day a violation continues may be considered a separate violation. ' 25 TAC §289.205(j)(3)(A): ""Administrative penalties may be imposed for severity level I and II violations. Administrative penalties may be imposed for severity level III, IV, and V violations when they are combined with those of higher severity level(s) or for repeated violations."2 TAC 289.202(y) "Security and control of licensed sources of 5 § radiation. (1) The licensee shall secure radioactive material from unauthorized removal or access. (2) The licensee shall maintain constant surveillance, using devices and/or administrative procedures to prevent unauthorized access to use of radioactive material that is in an unrestricted area and that is not in storage."' The proposed action is based upon the following allegations: DSHS Docket No. A27438-838-2017; Case No. 3001160151) which the Department issued on July 16, 2018, the Department denied Respondent's application for radioactive material license. The Order also required Respondent to ",,.begin the decommissioning of the facility in question to include proper disposal of radioactive material currently at its facility." 2) Respondent has not begun the decommissioning of its facility. To date, the Deoartment has not received a decommissioning plan from the owner of the facility nor has the facility made a good faith effort to initiate the decommissioning process, therefore Respondent has violated the terms of the Department Order issued July 16, 2018. 1 25 TAC §289.202 (b) Scope. (1) Except as specifically provided in other sections of this chapter, thils section appiies persons %?�lho receive, possess, use, or transfer sources of radiation, unless otherwise exempted. No person may use, manufacture, produce, transport, transfer, receive, acquire, own, possess, process, or dispose of sources of radiation unless that person has a license or exemption from the agency... US Radiopharmaceuticals Corporation December 18, 2018 Pace 3 3) Furthermore, the facility has failed to maintain constant surveillance to prevent unauthorized access to radioactive material located at the site. The allegation(s) and authorities referenced above give rise to the proposed administrative penalty in the amount of $10,000 per day of violation (not to exceed $2,200,000). If Respondent does not divest itself of the radiation source(s), including all radiation-producing devices and radioactive materials, Respondent will be in violation of 25 TAG §289.252(a)(2). In addition, in accordance with 25 TAC §289.205(l), the Department has the authority to impound or order the impounding of the radiation source(s). Furthermore, Respondent will be responsible for any expense the Department may have incurred during the impoundment and/or disposition, and the Department may request reimbursement. If the reimbursement amount is not paid within 60 days from the date of notice, the Department may request the Attorney General to file suit against the owner/possessor for the amount requested. PLEASE NOTE: In accordance with section 2001.054(c) of the Texas Government Code, you have the opportunity, upon written request, to show ,trtaf-conferertce w1th-th-c department before institution of state agency proceedings at the State Office of Administrative Hearings (SOAH). In addition, or in the alternative, you have a right to a hearing on the occurrence of the violation(s), the amount(s) of the penalty, or both. These hearings are conducted at SOAH under authority of and pursuant to I §401,054 and §§401.384 - 401.390; and 25 TAC §§1.21 - 1.27; and in accordance with the Administrative Procedure Act (APA), Chapter 2001 of the Texas Government Code; as well as the SOAH Rules of Procedure set out in Title 1, Chapter 155, of the Texas Administrative Code. Under the statutes and Rules applicable to this case, the following four options are available to resolve this matter: 1) Respondent complies with the July 16, 2018 Order and begins the decommissioning process by submitting a decommissioning plan to the Department; or 2) Respondent admits the allegations in the Departments Prelirninar'y Report and Complaint and accepts the action proposed. Respondent agrees to the Department's issuance of an Order finding that US Radiopharmaceuticals Corporation December 18, 2018 Page 4 Respondent committed the violation(s) listed in the Notice. Respondent waives the right to a hearing or an appeal regarding the Department's findings, the proposed action, and the disposition of this case through the Department's issuance of an Order. The alleged violation(s) is acknowledged, and the total proposed administrative penalty is paid; or, 3) An informal conference and hearing is requested to contest the Department's proposed action; or, 4) A formal hearing is requested to contest the Department's proposed action. A written response maybe submitted to DSHS via FAX at (512) 834-6606; via e-mail at alyson.henr@ dshs,state -tx.us,., or via mail addressed as follows: DEPARTMENT OF STATE HEALTH SERVICES ATTN: ALYSON HENRY MC 7927 P 0 BOX 149347 AUSTIN TX 78714-9347 ---if-AIWItE—TO-RESPONID-TO-T-HI-S-Nio-TICE-W-1-TMNI-3"AYS-0-F-RE-CEIP-T--- OF THIS LETTER WILL RESULT IN THE FOLLOWING: a) WAIVER OF YOUR RIGHT TO SHOW COMPLIANCE WITH ALL REQUIREMENTS OF LAW; b) WAIVER OF YOUR RIGHT TO A FORMAL HEARING AT SOAH; c) THE ALLEGATIONS CONTAINED IN THIS NOTICE WILL BE DEEMED TRUE; AND d) THE DEPARTMENT WILL ASSESS AN ADMINISTRATIVE PENALTY IN THE AMOUNT OF $21200,fOOO.00 BY DEFAULT. If you have any questions regarding this proposal, you may contact me at (512) 834-6665, ext. 2789, or a -e x�as �Ov. ,:I�son�.henr�@ds�hs.t Sincerely, Alyson 0. Henry, Program Specialist Compliance Section Consumer Safety Division Enclosure Date: December 21,2018 Report No. 2018-187 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide information on Municipal Identification (ID)programs. BACKGROUND: Research Some local governing bodies in other states have adopted Municipal Identification programs in an effort to promote safety within its communities. Under these programs, local governing bodies issue Municipal IDs to residents who are without the ability to obtain a state or federal issued identification card because they lack the required documentation necessary to obtain the card. The following is a list of some cities that have implemented Municipal ID programs: • Phoenix, AZ(ONE PHX ID, Proposed) • Los Angeles, CA(2012) • Richmond, CA(Municipal ID/Stored Value Card, 2011) • San Francisco, CA(SF City ID Card, 2007) • New Haven, CT (Elm City Resident Card, 2007) • Chicago, IL(Cite, 2018) • Detroit, MI(Detroit ID, 2016) • Northfield, MN(Cite ID, 2017) • Hudson County,NJ (County Resident ID Card, ) • Newark,NJ (Newark Municipal Id Program, 2015) • New York City,NY (IDNYC, 2015) • Washington, D.C. (2014) Municipal ID programs primarily benefit undocumented residents of a city, people experiencing homelessness or who are vulnerable, such as elderly and disabled persons, including those suffering from mentally illnesses, victims of domestic violence, and persons previously incarcerated. These individuals tend to lack the ability to produce the required documents that federal or state agencies require for the issuance of state IDs or social security cards, or to obtain certain governmental services. People experiencing homelessness lack the ability to produce required documentation often times due to not having a stable place to store the documents that federal and state agencies require. That results in a loss of personal belongings or theft. Local planning committees, such as the 2015 Mayor's Housing the Homeless Task Force and the current Shelter Planning Workgroup of the Denton County Homeless Leadership Team, have identified programs that could benefit individuals experiencing homelessness such as a document banking solution and/or providing additional social service support to help individuals obtain new identification. More information on current local social service support provided for individuals to obtain state & federal identification is discussed in the last section of this report. Date: December 21,2018 Report No. 2018-187 The Municipal IDs serve as proof of identity or residency for such persons as described above, which enable them to access local services(e.g.bank services,food,housing,jobs,etc.). However, in most cases, Municipal IDs do not substitute for a federal or state issued ID where required by a federal or state governmental agency(e.g. a state issued ID is necessary to board an airplane,vote, license a firearm purchase cigarettes/alcohol or to obtain a passport). The Municipal ID program in some cities like Chicago is designed in a multipurpose manner to benefit all residents. The Municipal ID allows the cardholder to have the benefit of access to multiple services in one card. In other words,the card becomes not only a photo id,but also library card, a pass to use mass transit, and a discount card to encourage consumer buying for economic development, for the cardholder. In some cities the card is also a pre-paid debit card and/or provides important medical identification or other emergency information supporting a resident's personal health as well as a city's public safety services. Other cities have partnered the implementation of municipal identification programs with banking institutions to incorporate supportive programs aimed at improving banking services as a valuable tool to combat those who take advantage of a city's most vulnerable residents through predatory lending practices or those targeted for theft because they must store cash either at home or on their person. Oakland, CA, Fairhaven CT, and Richmond, VA municipal ID programs include a debit card option. The City of San Francisco teamed up with a number of credit unions to provide services to those that lacked bank accounts. State of Texas Staff could not ascertain any municipal ID programs currently being implemented in the state of Texas. There is some indication that current state-wide legislative actions like SB 4 (May 7, 2017) to reduce local authority in actions taken by cities related to immigration or sanctuary cities. There may be potential legal hurdles and costs upon implementing a Municipal ID program. Some cities like San Francisco have been sued for its implementation of a Municipal ID program. The lawsuit in that city stemmed from the premise that the Municipal ID program violated federal immigration laws and policies. Also, there could be some privacy concerns depending on how the program is set up. City of Denton The City of Denton Library Services offers alternatives to state issued ID that allows access to most library services e.g. access the facility, read materials, use Wi-Fi, obtain technology cards, except the person will not be provided a Full Service Library Card, which would allow access to library computers, online databases and online learning resources, and allows check out of downloadable and physical materials. Parks and Recreation asks for state issued ID when creating an account, but not having a state issued ID does not prevent the person from opening an account and utilizing Parks and Recreation services. Customer Service requires state issued ID to obtain Utility Services. Date: December 21,2018 Report No. 2018-187 Other Organizations Located in Denton In a quick survey of local social service agencies, there are agencies providing assistance to individuals to apply for state & federal identification ranging from support with fees for replacements to securing vital documents. Denton County Friends of the Family, Denton County MHMR, Interfaith Ministries, Vision Ministries, and Giving Hope, Inc. are a few who responded confirming they offer assistance to individuals to obtain a state or federal government issued identification (e.g. state issued ID, social security card, etc.). Agencies help clients fill out and submit or print forms for government issued photo IDs and pay necessary fees. A number of other agencies responded that they do not offer assistance to clients who are unable to present government issued identification, but they refer those clients to Our Daily Bread and Vision Ministries,nonprofit agencies in Denton that provide nutritious meals,hygiene supplies, clothing, and other resources for persons who are homeless and facilitate referrals. In addition, Our Daily Bread provides assistance with obtaining state issued identification, and it also issues a photo identification card to clients that are accepted by other service providers like Monsignor King Outreach Center and The Salvation Army Denton for access to emergency shelter services and Denton Community Food Center for access to the food pantry. ATTACHMENT(S): N/A STAFF CONTACT: Dani Shaw Community Development Manager danielle.shawkcityofdenton.com (940) 349-7237 Sarah Kuechler Director of Public Affairs sarah.kuechlerkcity_ ofdenton.com (940) 349-8356 Date: December 21,2018 Report No. 2018-188 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide an overview of the Solid Waste Department's plans to address dumpsters located on sidewalks. BACKGROUND & DISCUSSION: Council Members Armintor and Briggs recently contacted staff regarding compromised sidewalk accessibility due to the placement of solid waste and recycling dumpsters. Solid Waste staff are aware of approximately 31 dumpsters in the city that are obstructing some portion of a public sidewalk. For several years, staff has attempted to address these issues by requesting property owners to voluntarily move their dumpsters or change to an alternative form of solid waste service such as cart collection. This effort has been met with mixed results, and staff was asked to consider mandatory compliance. Without considering other agreements and allowances that may be in place for specific locations, Section 24-68 of the Code of Ordinances permits the director of Solid Waste to locate and place containers in accordance with the waste storage needs of individual commercial, industrial and institutional facilities. In order to address dumpsters blocking access to sidewalks, Solid Waste staff intends to contact the customers associated with these dumpsters and request compliance. Because collection frequency and property characteristics vary, Solid Waste staff will tailor the solutions offered to each customer in order to meet their property's unique needs. In the event a customer does not wish to comply, staff intends to provide the customer with notice that they have thirty(30) days to comply and implement one of the proposed solutions. Unless directed otherwise, staff intends to initiate this process on January 2, 2019. Staff anticipates the effort will take between 60 and 90 days to complete. Please feel free to contact me if you have additional questions or concerns. STAFF CONTACT(S): Ethan Cox Director of Solid Waste (940) 349-7421 Ethan.C ox&cityofdenton.com Date: December 21,2018 Report No. 2018-189 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Utilization of utility billing information for development related public hearing notifications. EXECUTIVE SUMMARY: Staff could begin utilizing utility billing information for the 500-foot courtesy notifications for development related public hearings. The major differentiation between current practice and the utilization of utility account information is the notification to individual tenants in multifamily residents who are currently not reached in the notification process. Changes to the notification procedures could result in an increased cost to applicants for the additional notifications. Based on an analysis of four recent developments, the increased cost would be dependent on the number of multifamily dwelling units within the 500-foot radius could be up to or in excess of$500. BACKGROUND: City Council requested information on November 13, 2018 regarding the utilization of utility billing information in the notification to residents of upcoming development related public hearings. Notifications are currently sent for upcoming hearings on zoning changes, specific use permits,planned developments, applications for historic landmark designation, and the creation or alteration of historic districts. The City sends notifications to property owners within 200 feet of the subject property as a requirement of the of Local Government Code Chapter 211.007 and include the notice in the Denton Record Chronicle. Also, based on direction received from City Council on April 25, 2017, staff began sending postcards notifications to addresses within 500 feet. Generally, single family residents receiving the 500-foot notice are also the individual listed in the utility billing system so there would not be a change in practice for these notifications. Since postcards are only mailed to addresses,individual units in multifamily residences are not currently receiving notifications. Utilizing the utility billing information for notifications would allow notices to be sent to individual units within a multifamily complex. Staff has analyzed four recent zoning cases to determine the effect that noticing based on utility billing information would have with data included in Table 1 below: Case Number Notifications Utility Billing Notifications Cost Increase Z 18-0024 31 31 - Z18-0017 99 99 - Z 18-0006 71 201 $85 Z 17-0003 26 760 $477 Table 1.Recent zoning cases notification based on address versus utility billing In both instances of cases with notifications sent to mostly single-family areas, there would be no increases in the number of notifications sent with a change in procedure to utilize utility billing information. Cases Z18-0006 and Z17-0003 both are in proximity to multifamily residences and the increased notifications counts represent the mailings to individual units. All notification fees Date: December 21,2018 Report No. 2018-189 including public hearing notices, mailing courtesy postcard notices, and publication of legal notices in the newspaper are paid by the applicant, so any increases in the costs would be passed through to the applicant to be paid prior to the public hearing. If direction were given to implement the utility billing notification practice,Development Services and Customer Service staff would collaborate to develop a process to efficiently gather billing information for affected residents on cases coming before Planning and Zoning Commission and City Council. It should be noted that all customers with utility billing accounts within the 500-foot may not receive a notice. State law provides utility customers of government-owned utilities have the right to keep their personal information confidential should they complete and return the required form to the utility. DISCLAIMER FROM LEGAL REGARDING NOTICE: State law only requires that we send notice to the "owners" of property within 200 feet a notice of a proposed change in zoning classification. TLGC, Sec. 211.007(c). Only the "owners" of property are eligible to be counted in connection with a protest petition to determine whether the requisite 20% is met to require a supermajority vote. TLGC, Sec.211.006(d). DDC, Sec. 35.3.4 is consistent with state law. While the City can certainly provide greater notice, in this case to non-property owners (i.e.,renters) and to properties beyond 200 feet, these individuals' protests are not counted towards the 20%protest petition calculation per state law or the DDC. This topic will be included in a future Work Session strategy session with City Council if further policy discussion or research is requested. ATTACHMENT: 1. Memo regarding public hearing notification practices STAFF CONTACT: Scott McDonald Director of Development Services 940-349-8539 Scott.McDonald@cityofdenton.com -40 o Department of Development Services • Planning Division DENTON 215 W. Hickory St., Denton, TX 76201 • (940) 349-8541 MEMORANDUM DATE: November 29, 2017 TO: Planning and Zoning Commission FROM: Richard Cannone, Interim Planning Director SUBJECT: Public Hearing Notification Practices This memo is a follow up on information recently provided to the Planning and Zoning Commission regarding implemented public hearing notification practices. Following receiving input from the Planning and Zoning Commission, the Planning Division staff presented recommendations to the City Council on April 25, 2017. As a result the City Council directed staff to implement the following items: 1. Mail out public hearing notices(81/2"x I I"full color)to property owners within a 200-foot radius of the subject property via regular mail and certified mail. 2. Mail out courtesy postcards notices (4"x 6" full color)to residents within 500-foot radius of the subject property via regular mail. 3. Post a public hearing notice on the city's webpage "Notices." 4. Enlarge the public hearing sign dimension to 4' x 3.5' and require the applicant to post the sign on the subject property. The sign shall include contact information and a shortened website URL for more information. 5. Implement an electronic notification system where all city notifications are centralized in a prominent location on the city's website, and users can subscribe to email notifications when a notice is posted. 6. Revise the notification fee so that all notifications (public hearing notice, courtesy notice, and newspaper publication) will be paid by the applicant based on the actual costs. 7. Standardize notification procedures for public hearings, neighborhood or stakeholder meetings,construction notices,and other informational notices. Practices currently vary by department, and staff is working to standardize notification methods based on activity, rather than the initiating department. Starting June this year, the Planning Division implemented items 1 through 5. The revision to the notification fee described in item 6 was presented to City Council on September 19, 2017. At that meeting the City Council approved an ordinance amending the schedule of fees by amending the public hearing notification fee. Effective October 1,2017, all projects submitted OUR CORE VALUES Integrity • Fiscal Responsibility • Transparency 0 Outstanding Customer Service that require a public hearing notification (public hearing notice, courtesy notice, and newspaper publication) applicant are required to pay notification fees based on the actual costs. In addition, effective October 1, 2017, the applicants are now required to purchase and post signs on the subject property. Applicants were notified in advance of the new notification requirements through a marketing program. Announcements of these changes were and continue to be made verbally to applicants during their Pre-Development Meeting, with their first review comments, posted throughout the Development Services building, and posted online. It is also important to note that all newspaper notices now include the applicant's contact information and a map of the subject site. Item 7 is ongoing, all departments are working to standardize their notification methods. Please contact Ron Menguita at (940) 349-8328 if you have any questions or require additional information. 2 Date: December 21,2018 Report No. 2018-190 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Cole Ranch and Hunter Ranch master-planned communities in southwest Denton EXECUTIVE SUMMARY: In October 2018, representatives from Cole Ranch and Hunter Ranch contacted City staff to discuss a coordinated 6,500-acre master-planned development. Both Cole and Hunter Ranches are located within the city limits and are designated as Master Planned Community Districts under the Denton Development Code. A project of this size and scale requires significant public infrastructure such as water, wastewater, drainage, and road facilities,which would be paid for up front by the developers. The developers have asked the City of Denton to consider the establishment of a special district—either a municipal management district (MMD) or a Public Improvement District(PID)—to enable them to recapture a portion of the cost of construction of the public infrastructure. BACKGROUND: History and New Proposed Project Coordination Cole Ranch is an approximately 3,400 acre property located west of I-35 West and in the path of the southernmost portion of future Loop 288. The City of Denton annexed Cole Ranch in 2006, and it was classified as the Cole Ranch Master Planned Community district in 2008 (Ordinance 2008-030). Cole Ranch is represented by Stratford Land. Hunter Ranch is an approximately 3,100 acre property located directly south of Cole Ranch and east of Robson Ranch with acreage on both the west and east sides of I-35 West. The City of Denton annexed Hunter Ranch in 2001. Hunter Ranch received a Master Planned Community district classification from the City of Denton in 2008. (Ordinance 2008-286). Hunter Ranch is represented by Hillwood Communities. Under the Denton Development Code, the Master Planned Community(MPC) District is "intended to accommodate large-scale, unified, comprehensively planned development that conforms with and enhances the goals and policies contained within The Denton Plan. This district is intended to provide an alternative zoning district and development process to accommodate substantial development for residential, commercial,professional, recreational, industrial or other activities, including combinations of uses appropriately requiring flexibility under controlled condition not otherwise attainable under conventional zoning districts." Each MPC application must contain the following: 1 Date: December 21,2018 Report No. 2018-190 • A conceptual/schematic plan designed to aid in the preparation of the MPC zoning document and development standards document; • A zoning document which establishes standards for the MPC and addresses land uses, densities, setbacks,building heights, lot coverage, and a development plan map; • A development standards document setting forth a detailed set of standards and confirming compliance with the Denton Development Code Subchapters 13-22 and/or identifying the alternative development standards associated with the content of each of those subchapters. Standards include items such as maximum gross density, minimum lot area, maximum building height, design standards, building materials, etc.) In October 2018, representatives from Cole Ranch and Hunter Ranch contacted City staff to discuss their new approach of a coordinated master-planned development versus the prior approach of the two developing independently. The developers believe this approach will capture efficiencies in planning, design, and construction as well as result in cohesion between the two properties. The following is a summary of the project basics: • Approximately 6,500 acres total • Estimated$982 million in total project costs for infrastructure and amenities • Estimated 40-year buildout • 15,717 single family units • 5,090 multi-family units • 424 commercial acres • 101 industrial acres Although initial development plans were completed for both Cole Ranch and Hunter Ranch as part of their MPC processes, the developers are now working on a new shared vision for the coordinated project. Assuming Council supports the developers' request for a special district, which is critical to facilitating the necessary public infrastructure, their goal is to create a new master plan by summer 2019. The developers provided City staff the following broad outlines for the revised master plan: • Community character and amenities that will be developed with stakeholder input and will be unique to Denton • Large natural open spaces with hike/bike trail connectivity • Diverse neighborhoods with a range of high-quality housing types and prices • Activity-focused programming that brings residents together • 4 elementary schools, one middle school and one high school • Retail centers City staff,bond counsel, and financial advisors have held eight meetings to date with the developers to gather information needed to assess the fiscal and service provision impacts of the 2 Date: December 21,2018 Report No. 2018-190 proposed development and to make certain the City's interests would be protected. All discussions have been fact finding to ensure that staff has a thorough understanding of the following before the City Manager agreed to bring this request to Council: the project's financing plan; how current and future residents will be protected; how to ensure the City's bond indebtedness is not affected; providing for adequate water and wastewater capacity; and ensuring the project is synched up with future I-35 West and Loop 288 improvements and other regional road plans. Developer Request for a Special District A project of this size and scale requires significant public infrastructure such as water, wastewater, drainage, and road facilities. The developers have asked the City of Denton to consider the establishment of a special district—either a municipal management district(MMD) or a Public Improvement District (PID)—to enable the developer to recapture a portion of the cost of construction of the required public infrastructure. Under either an MMD or a PID, the developers will front the cost for the public infrastructure improvements and would be reimbursed by the special districts. Of the estimated development costs of$982 million, $485 million would be eligible for reimbursement. An MMD must be created through the Texas Legislature, which is convening in January 2019. The Representative and Senator serving Denton will not carry and submit the MMD creation bill without the approval of the City in the form of a Council resolution. If the MMD legislation passes the Legislature and the City ultimately does not give written consent to the MMD, the MMD could not activate. Stated another way, the MMD legislation would be non-binding and gives the City the option, but not the obligation, to create an MMD. Should the legislation be passed, staff estimates a several-month process to work through a number of development- related issues prior to bringing an MMD ordinance forward for Council consideration. The MMD legislation is time-sensitive since the next opportunity to bring it forward would be in the 2021 Legislative session. Municipal Management District vs. Public Improvement District Under both the MMD and PID options, existing City residents do not pay for the new infrastructure: the cost is borne only by those specifically benefitting from using the new infrastructure. For both types of districts, the City must approve the plans and specifications for all public infrastructure prior to starting construction. One important consideration of which special district to use is what entity issues the debt to pay for the new public infrastructure and carries the obligation on its books. The City does not issue the MMD debt, whereas the City issues bonds for the PID debt. Below is a comparison of debt for each type of district: 3 Date: December 21,2018 Report No. 2018-190 Municipal Management District Public Improvement District MMD issues the bonds and the debt City issues the bonds and the debt Debt for water, sanitary sewer and drainage City Council issues debt; Texas Commission on facilities must be approved by the Texas Environmental Quality does not approve debt Commission on Environmental Quality Debt cannot be issued until assessed value is Debt may be issued to finance public increased per the Denton County Appraisal infrastructure without the guaranteed value to District(DCAD)at a 10:1 value-to-lien ratio* support the debt;City's PID policy calls for a 3:1 value-to-lien ratio* Debt "stands alone." Issued by District per Debt is issued by City from "special revenue" parameters set by City source,being assessments levied by District District is a separate political subdivision, District is a zone or area within the City, therefore,no City credit is used or affected therefore, City credit could be impacted if assessments do not meet projections New public infrastructure cost paid from tax New public infrastructure cost paid from bonds, which generally result in lower interest assessment bonds, which generally result in rates higher interest rates.Assessments have a second priority lien to taxes. Generally there are financial market-driven reserve requirements Board levies annual tax Council will set or approve annual assessments. Usually, supplemental assessments are needed over large master planned communities, as a first-time PID assessment is usually not financially correct. DCAD separately lists out MMD taxes, very PID assessments are not separately listed out on transparent DCAD websites since they are not a tax, rather they are commingled with City debt obligations which artificially inflates the Ci 's debt position Taxes tend to reduce as debt pays off and value Assessments are fixed at time of imposition for increases their duration Must file annual audit prepared by independent Audit of expenditures is part of the City audit 3rd party auditor *Value-to-lien ratio is appraised value to bond size;or, the assessed property value must be at least ten times the principal amount of the bonds sold under an MMD or at least three times the principal amount of the bonds sold under Denton's PID policy Another difference between the two districts is control. PIDs are solely managed by the City Council; MMDs are managed by a separate elected Board of Directors. Five directors would manage the MMD and are elected by voters inside the district. Through the Development Agreement, the City and developers can agree for initial board members to be appointed by the City. In a PID, the Council either appoints the PID Board or the City Council serves as the Board. Generally, it is harder to separate PID operational and financial issues from City issues, which can lead to Councilmembers dealing with complaints directly as opposed to referring to the Board of the separate MMD. 4 Date: December 21,2018 Report No. 2018-190 The City would control every aspect of a PID, but the City also can exercise control over an MMD and remain"arm's length" for fiscal responsibility. For example, the legislation could be drafted so that: • The City must approve all plans and specifications for public infrastructure. • The City can impose specific limitations on district bond issues: o Limit the term of each bond issue to no longer than 30 years o Require a Development Agreement with the developers o Limit sale of bonds to only finance water, sanitary sewer, drainage and road infrastructure o Require that construction of public infrastructure not commence until all plans are approved by City o Require that district will not allow construction that would result in water or wastewater flows that exceed permitted limits o Require bond applications to be filed with the City at the same time they are filed with the Texas Commission on Environmental Quality and files copy of the Preliminary and Final Official Statements with the City o File annual audit with the City o District cannot annex property into its boundaries without prior City consent o District shall permit City to make inspections of its books and records during regular business hours. CONCLUSION: If Council is interested in supporting the developers' request for legislation to create the MMD, staff would bring back a supporting resolution for consideration in early February. There will be a work session on this topic on January 15, but if any Councilmember desires a briefing prior to that date, Caroline Booth can coordinate that request. Next Steps • Council work session on January 15 regarding the project • Drafting of a term sheet outlining the City's requirements of the developers. • After the term sheet is agreed to, the developer would sign an escrow agreement to fund an in-depth review of the fiscal and legal impacts by the City's consultants. • Work session with Council on draft MMD legislation and a resolution of support. • Individual consideration of resolution of support. ATTACHMENT(S): Exhibit 1 —Cole Ranch/Hunter Ranch Map Exhibit 2—Cole/Hunter Ranch Development Projections 5 Date: December 21, 2018 Report No. 2018-190 Exhibit 3 —Developer presentation excerpt STAFF CONTACT: Caroline Booth Director of Economic Development (940) 349-7751 Caroline.Booth@cityofdenton.com 6 1 _ EEGIOK.1 Slgl I � _ -_ ---- 16 ,+....c.� •aw saw.a�� :0►t w_w-70fw M+4+7Mrj.CiaG1 _ IA — 5 B LlGEND ti we-e - N A _ 'AM N.S� HUNTER RANCH - COLE RANCH Combined Cole&Hunter Ranches Single Family Single Family Combined Combined Collection Lots Homes Commercial Industrial NbIti-Family Residential Commercial Combined Total e Year Tax Year Constructed Constructed Acres Acres Units Value Value Projected Value 2023 2022 $ 1,000,000 $ $ 1,000,000 2024 2023 400 - $ 28,000,000 $ $ 28,000,000 2025 2024 800 400 S 168,000,000 $ $ 168,000,000 2026 2025 1,300 800 S 315,000,000 $ $ 315,000,000 2027 2026 1,800 1,300 $ 490,000,000 $ $ 490,000,000 2028 2027 2,400 1,800 $ 672,000,000 $ $ 672,000,000 Development 2029 2028 3,000 2,400 288 $ 882,000,000 $ 25,920,000 $ 907,920,000 Assumptions 2030 2029 3,600 3,000 288 $1,092,000,000 $ 25,920,000 $1,117,920,000 Residential: 2031 2030 4,200 3,600 25 976 $1,302,000,000 $ 119,340,000 $1,421,340,000 a home 2032 2031 4,800 4,200 25 976 $1,512,000,000 $ 119,340,000 $1,631,340,000 average 2033 2032 5,400 4,800 55 1,484 $1,722,000,000 $ 199,935,034 $1,921,935,034 price of$350,000 2034 2033 6,000 5,400 99 1,484 $1,932,000,000 $ 263,322,556 $2,195,322,556 before inflation; 2035 2034 6,600 6,000 99 1,884 $2,142,000,000 $ 293,322,556 $2,435,322,556 Commercial: an 2036 2035 7,200 6,600 153 1,974 $2,352,000,000 $ 378,435,090 $2,730,435,090 average value of 2037 2036 7,800 7,200 165 2,626 $2,562,000,000 $ 447,465,103 $3,009,465,103 approximately 2038 2037 8,400 7,800 190 2,626 $2,772,000,000 $ 481,527,632 $3,253,527,632 per $1,433,243 2039 2038 9,000 8,400 215 3,278 $2,982,000,000 $ 571,707,632 $3,553,707,632 p 2040 2039 9,600 9,000 215 3,278 $3,192,000,000 $ 571,707,632 $3,763,707,632 acre after vertical 2041 2040 10,200 9,600 240 38 3,786 $3,402,000,000 $ 681,732,258 $4,083,732,258 construction 2042 2041 10,800 10,200 278 38 3,786 $3,612,000,000 $ 733,507,301 $4,345,507,301 before inflation; 2043 2042 11,400 10,800 297 38 4,438 $3,822,000,000 $ 812,074,823 $4,634,074,823 Industrial: an 2044 2043 12,000 11,400 348 101 4,438 $4,032,000,000 $ 939,386,485 $4,971,386,485 average value of 2045 2044 12,600 12,000 348 101 5,090 $4,242,000,000 $ 992,066,485 $5,234,066,485 2046 2045 13,200 12,600 379 101 5,090 $4,452,000,000 $1,037,741,492 $5,489,741,492 approximately 2047 2046 13,800 13,200 379 101 5,090 $4,662,000,000 $1,037,741,492 $5,699,741,492 $862,488 per 2048 2047 14,400 13,800 379 101 5,090 $4,872,000,000 $1,037,741,492 $5,909,741,492 acre after vertical 2049 2048 14,700 14,400 404 101 5,090 $5,061,000,000 $1,075,241,492 $6,136,241,492 construction 2050 2049 15,000 14,700 404 101 5,090 $5,166,000,000 $1,075,241,492 $6,241,241,492 before inflation; 2051 2050 15,300 15,000 424 101 5,090 $5,271,000,000 $1,105,241,492 $6,376,241,492 and 2052 2051 15,600 15,300 424 101 5,090 $5,376,000,000 $1,105,241,492 $6,481,241,492 Multifamily: a 2053 2052 15,717 15,600 424 101 5,090 $5,468,190,000 $1,105,241,492 $6,573,431,492 2054 2053 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 weighted 2055 2054 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 average value 2056 2055 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 per unit of 2057 2056 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 approximately 2058 2057 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 $80,570 before 2059 2058 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 inflation; 2060 2059 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 2061 2060 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 2062 2061 15,717 15,717 424 101 5,090 $5,500,950,000 $1,105,241,492 $6,606,191,492 NoInflationon Property - - �'�i-� - �� -- -_ L� .nrr. �•f' lei y�tM--Qc _> �� -�+i_. - '.�. 71 -Alm �:w .��.• S. �'. t.<',• P \�� p -� �', '.sue• Cole u n er Ranc r Presentation for the City of Denton 12.5. 18 Y - - ' ' • • - -n• - Decatur : Denton ♦ � � ,�-� its r. +� r- P � ♦ -1 ' -,�- - _ 1 �`-•W(�. ��/ R.- sr - -.w 55w DFvj u,p�r -ss t d ^Z` -21 � � ! oanas � •� � 20 �•�- iR _ _ Arlington ya - � � �T J. i• 3- ar.- 71 NINO 1 z, •••' Local ; Context r �, sr �✓ � - 3p/Ur 9iutw t Y� ... 1 I op --- ' I _ t —— ' • �� I - I, Leg -� Legend-Land Use Legend .I I Parks&Open Space Site boundary 1•rr I' Residential Floodplain Transportation i 7 PonU/Lake Vacant Trail ■ Industrial ....Future trail • r ■ Retail/Commercial Regional Veloway i Cole/ Hunter Ranch a -- y 6 Educational --Future Regional Velowa Drone Imagery _ - 1 - I - 4 = _ Cole/ Hunter Ranch VTBR PAvCA ,� ',� �/• _ - _ . „''`"�"�'�i� _�..:'. �,� .,tee The Vision 4 •j� �i Open Space and Trails Y• d t� r _ 1 � 1 �� ij ti• Alu9 flu gyp; 14 • � � � � fit` 1 `-'k Cole/ Hunter Ranch 12 Preliminary Development Plan 1 -- Ar —�A yJiJilii — i+f .{ ;U, 1W�5us�1_ 1lu! d••j'`N.� tL ., - JI��JyIWu x ^a't � _ i•' �6' 7 �Z .l�lU+-r -. - i' ( � ° � -• f usu' i � :�•��'jl e4� Legend AW 9e �f _ 7.a• Site boundary ilJ V 1 _ j ,y Multi-family L f � /' y�•�' ,� Mixed-use Retai6'Commerciel J 3311 - density High y 9 Y single 9 family 1 Ew1IJ/ �t j i Singlc family i Y fi�� iti_ 4 scnooi r !%- Industrial il'JJA7.'JU ilJLLlL"J sports Facility 7uslu alilc�/la „ / t' Cole/ Hunter Ranch ..,�� _ •p 9Y f gre M Character ` £ z Vision •rt-, i Ak F 4 X. Cole/ Hunter Ranch ;" ` 13 w db Y-b llw� Aspirational _Comps Co.l2/ Hunter Ranch '�f'`.t �Fv �i r i..i f :l;jGr ) �e �, v%''1�,. _ =,its. ''r .,• �_ ��ovt/ i,� .` _ � Ja Imo,-�>,..-_�,�,.•,� _i� �� I _-. ♦tilt •� _*' � �rT'y LAKE NONA ORLANDO, FLORIDA ' '�fj .�•it i - _ t �_ ,� `. rig ` F .-, yy S vi- - }`- ,- , ■ - i Total Land Area: 10,900 Acres •Suburb of Orlando •WHIT Home Technology for Healthy Living Approximate Number of Homes Entitled: 14,693 • USTA National Campus •Community art program and landmarks Square Feet of Non Residential: 13.5 M Square Feet •Johnson & Johnson Human Performance Insti- •Collaborative Learing Environment - Early child- Hotel Rooms Entitled: 3,250 Hotel Rooms tute hood to post graduate study •SimLearn - Medical Training •Town Center with retail, dining, and hospitality • Lake Nona Institute -Wellness Center STAPLETON DENVER,COLORADO • - 1 R _y M � '�� ' r ;- 'i d'-+e.;;�Ni�r• p- - — - �r vim. �' '31_r�.�.��`- �_�'-�=r-_ + � �1-,_ .!''-' ;��qr�r. �., •, -ter 1 i +-. -y�•-- =cam■•7i�.e,Ai d Rm_ ,,. r r. �, + ,�,_. t�•Sto u!ra. .mae r iuuro� in ''1'. '' ,fin �! w �. ;a��r �l�'ew n>i1•�� tH"we l�:^' -- - - - - � w J Total Land Area:4,700 Acres • Reuse of Stapleton Airport-P3 Forestcity and •Large natural open space corridor with ameni- Approximate Number of Homes Entitled:8,000 SF/4,000 MF Denver ties and hike and bike in Westerly Creek Ecosys- Square Feet of Non Residential: 2.0 M Square Feet • 12 diverse neighborhoods tem Parks and Opens Space: 917 Acres •28 Schools - Early Childhood to High School •Walkable master plan and access to communter •50 Parks with wide program and scale rail •Wide of retail - town centers, shops, big box, •57,000 SF recreation center and outdoor market *Town Center with retail, dining, and hospitality VERRADO BUCKEYE,ARIZONA E NA{K{T �.r � s Total Land Area:3,500 Acres •Suburb of Phoenix •77 Neighborhood Parks Approximate Number of Homes Entitled: 14,000 • Multi district plan including a wide variety of • 10 Dining Options Square Feet of Non Residential: 4.2 M Square Feet land uses • 14 Wellness Oriented Amenities and Businesses • Main Street District - retail, services and industri- • 5 Schools al •Museum •Verrado Marketside District - Retail, industrial •500 Person Gathering Space and hospitality •Village Grove at Verrado - Retail and Grocery Date: December 21,2018 Report No. 2018-191 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Separate use designation for Townhome or Condominium in the Denton Development Code(DDC) Executive Summary: Staff is recommending as part of the DDC Update to include Townhome as a separate use with separate development standards. Staff does not recommend creating a separate condominium use because condominiums are technically a form of ownership and could be a number of different uses (i.e. commercial,industrial,residential). BACKGROUND: Council requested that staff provide a report on having a separate use designation for Townhome and Condominium in the Denton Development Code (DDC). This question was raised as a result of a project that was considered to be "Multi-Family Dwelling" as opposed to meeting the definition of"Attached Single-Family Dwelling(aka Townhomes)." Condominium, Attached Single-Family and Multi-Family(DDC) The DDC defines "Condominium" as: A type of ownership of attached or detached dwelling units, offices, or other space within a structure, as defined by the provision of Title 7, Chapter 82 Uniform Condominium Act of the Texas Property Code in which each unit is independently owned and financed by the occupant but in which all lands are commonly owned. The DDC defines an"Attached Single-Family Dwelling (aka Townhomes)" as: A structure containing at least three (3), but not more than eight (8) attached dwellings, and complies with the following: 1. Has individual front and rear access on the ground floor of each dwelling; 2. Each dwelling shall be separated by fire-rated walls; 3. Each dwelling shall be serviced by an individual meter for each utilities; 4. Each dwelling shall have direct access to a street or alley; and 5. Each dwelling shall be located on its own individual platted lot and each lot must have frontage on a public or private street. The DDC defines a"Multi-Family Dwelling" as: A structure that contains three (3) or more dwellings and any ancillary uses. Date: December 21,2018 Report No. 2018-191 Condominium A condominium is a form of ownership and could be a number of different uses. The Texas Property Code, Chapter 82. Uniform Condominium Act applies to "all commercial, industrial, residential, and other types of condominiums which the declaration is recorded on or after January 1, 1994". The declaration is a recorded document governing the establishment, maintenance, or operation of a condominium regime. The term includes a declaration or similar instrument subjecting real property to: (A)Restrictive covenants, bylaws, or similar instruments governing the administration or operation of a unit owners' association; (B)Properly adopted rules and regulations of the unit owners' association; or (C)All lawful amendments to the covenants, bylaws, instruments, rules, or regulations. By definition, the Texas Uniform Condominium Act defines a condominiums as: A form of real property with portions of the real property designated for separate ownership or occupancy, and the remainder of the real property designated for common ownership or occupancy solely by the owners of those portions. Real property is a condominium only if one or more of the common elements are directly owned in undivided interests by the unit owners. Real property is not a condominium if all of the common elements are owned by a legal entity separate from the unit owners, such as a corporation, even if the separate legal entity is owned by the unit owners. Generally speaking, a condominium development is governed by a Condominium Association (CA). Condominium owners own their individual units and have joint ownership in the building and grounds with other units. CA fees not only cover common areas but the fees also cover building repairs and maintenance. Townhouse As noted above, a townhouse is considered an "attached single family dwelling" and typically is permitted in many of the residential zoning districts with the exception of more rural type designations. The main difference of the townhouse is the requirement to be on an individually platted lot. Many times townhouse developments are governed by a homeowners association (HOA). Generally speaking, HOA's are used for homeowners who own their lots and homes. An HOA governs and manages regulations for a residential community. It also manages and maintains Date: December 21,2018 Report No. 2018-191 common areas such as pools and playgrounds. Membership may be required, depending upon the location. Homeowners follow regulations ranging from lawn upkeep to outdoor decorations. CONSIDERATION: Section 82.007 of the Texas Property Code, entitled, "Applicability of Local Ordinances, Regulations, and Building Codes" sets forth the following: A zoning, subdivision, building code, or other real property use law, ordinance, or regulation may not prohibit the condominium form of ownership or impose any requirement on a condominium that it would not impose on a physically identical development under a different form of ownership. Otherwise, this chapter does not invalidate or modify any provision of any zoning, subdivision, building code, or other real property use law, ordinance, or regulation. Given that a condominium is a form of ownership and can include a number of uses, (i.e. High- Rise Residential, Residential Villas, Business Park, or Industrial Park) and the limitations set forth above (Section 82.007, TPC), staff would not recommend adding regulations regarding a condominium development other than a maintaining the current as provided above. Currently, Detached and Attached Single-Family follow the same standards. What staff is recommending, and will be included in the draft update of the DDC is changing"Attached Single-Family"to "Townhome" and providing specific development standards for Townhomes. The final draft of these standards will be presented to the Development Code Review Committee, at public workshops, with the Planning and Zoning Commission, and ultimately to City Council for consideration and adoption. STAFF CONTACT: Richard Cannone, AICP Deputy Director/Planning Director Richard.cannone(acityofdenton.com 940-349-8507 Date: December 21,2018 Report No. 2018-192 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide background information about the recent resolution passed by the City of Dallas to adopt the Welcoming Dallas Strategic Plan. BACKGROUND: Council Member Armintor requested information regarding a recent resolution passed by the City of Dallas on October 24, 2018 that establishes Dallas as a Welcoming City and formally adopts the Welcoming Dallas Strategic Plan (Attachment 1). Dallas is currently pursuing a"Welcoming City"certification designated by Welcoming America, a national certifying non-profit organization. There are currently three certified Welcoming Cities nationwide: • Dayton, Ohio • Louisville, Kentucky • Salt Lake City, Utah The Dallas Office of Welcoming Communities and Immigrant Affairs was established in March 2017 to promote the successful inclusion of immigrants into the social and economic culture of the Dallas community. To support this effort,Dallas budgeted$428,845 in the first year(FY 2017- 18), increased the budget to $623,124 this year (FY 2018-19), and currently projects a budget of $635,827 for FY 2019-20. The office includes full-time employees to execute the operation of the office. Through this office, a Welcoming Plan Task Force, consisting of 85 community members including immigrants and refugees, was created to develop the Welcoming Dallas Strategic Plan. The office appointed community leaders across a wide spectrum of backgrounds to the taskforce. The 44-page "Welcoming Plan" includes data and performance targets through the year 2021 for civic, economic, linguistic, and social integration and inclusion for immigrants and refugees residing in Dallas. The plan was written by the City of Dallas' Office of Welcoming Communities with research and technical assistance provided through the New American Economy and Welcoming America organizations. The Welcoming Plan outlines five overarching goals and 26 recommended strategies to achieve those goals. Plan goals include: • Leadership and Communications: Local government is committed to being inclusive and welcoming, and plays a central role in building local capacity while advancing inclusion of diverse communities within its own agencies and bodies. • Safe, Healthy, and Connected Communities: Welcoming communities build relationships among diverse communities,including newcomers and longer-term residents. Date: December 21,2018 Report No. 2018-192 They also foster trust and build relationships between diverse communities and local law enforcement and safety agencies. • Equitable Access: Welcoming communities reduce barriers to services and participation so that opportunities in the community are available to all residents. • Civic Engagement: Welcoming communities actively ensure that diverse populations fully participate in civic life, including increasing access to leadership, citizenship and community participation. • Economic Opportunity and Education: Welcoming communities harness the full potential of all their residents. Everyone has the skills and assets to thrive, and economic development systems are prepared to leverage new and existing talent. Welcoming communities also ensure everyone has the education needed to succeed in school and the workforce. ATTACHMENTS: 1. Welcoming Dallas Strategic Plan STAFF CONTACT: Stuart Birdseye Management Analyst (940) 349-8009 Stuart.birdseye(a=,cityofdenton.c om t' 'ir��, �Zx.�r"Z. .� r1 � ��L1• ri VVELCO ING C -..,7 ., * V-.,f. 4*11 ":.11 i DALLA �• 1 � it r •_�� 1 y Wo wp .. PLAN FOR CIVIC, ECONOMIC, LINGUISTIC AND SOCIAL INTEGRATION & INCLUSION 2018-2021 a � � I i M-9-0—"",r� Ilk IIM• --DALLA$- R9610NAL Cr/A"N r II TOYOTA Dear Friends, Colleagues and Neighbors: As Mayor, I am pleased to support Dallas' efforts to become a welcoming, inclusive city for all its residents, whether they were born in Texas, another state, or a distant country. Our diversity is a true asset. Research shows that immigrants are a major part of our growing economy. They account for more than 40 percent of Dallas' overall population growth since 2011 and contribute to our vitality by starting and building businesses, investing in neighborhoods, and coaching youth � ONCORDI,� _ sports, volunteering at schools and expanding our cultural offerings. I applaud the Welcoming Plan Task Force, created by the Dallas Office of Welcoming Communities and Immigrant Affairs, for the thoughtful g recommendations it developed to make Dallas more inclusive and ., supportive of immigrants and refugees. The recommendations in this a report will help Dallas integrate new residents from around the world into the social fabric of our city, so that we can benefit from their talents and rA experiences as soon as possible. RA Best Regards, Michael S. Rawlings - Mayor of Dallas u 1 N,. Dear Fellow Dallasites: When I first became Dallas City Manager, I learned quickly that this city is home to a large, diverse, vibrant immigrant population. Today, one in four Dallas residents was born in another country, and 42% of Dallas s households use a primary language other than English. (- Immigrants comprise one-third of our employed labor force. This r significant, and relatively rapid, demographic change brings challenges, but it also brings energy and optimism and entrepreneurism. People want to live and work in Dallas, and that's a good thing. In recognition of the important role that immigrants play in the life of our City, and to underscore Dallas' commitment to inclusivity and diversity, the City of Dallas established the Office of Welcoming Communities and Immigrant Affairs (WCIA) in March 2017. Its role is to promote and advance the economic, civic and social engagement of immigrants and refugees residing in Dallas. I am glad to be working hand-in-hand with j t ' the WCIA team and with individuals throughout Dallas to create a more y inclusive, resilient and welcoming community for all residents. I We thank you for joining us in our efforts to be a city of Empathy, Ethics, 1 Equity and Excellence and look forward to working with the residents of Dallas and our team at the City to become a nationally certified ed (' I welcoming city. To longtime residents and to newcomers, I say, welcome to a more r welcoming Dallas! r TC Broadnax - City Manager lei. / i -'• ' 3 TABLE OF CONTENTS Introduction Immigration in Dallas The Dallas Office of Welcoming Communities and Immigrant Affairs and the Welcoming Plan Task Force Summary of Welcoming Plan Task Force Recommendations The Way Forward Welcoming Plan Recommendations Timeframe Acknowledgements Appendix: New Americans in Dallas n y A welcoming community is one in which diversity is acknowledged, celebrated and harnessed to improve the social, economic and cultural opportunities of all residents. Dallas is actively working across sectors to establish a local welcoming framework to integrate and engage immigrants and refugees in every aspect of city life. The City of Dallas is partnering with leaders and representatives of local government, businesses, nonprofit agencies, philanthropic enterprises, academia, service providers, faith-based groups and first responders to build awareness of the economic and social benefits of being a welcoming community, and to develop strategies to realize that goal. Nearly one-quarter of Dallas' current residents were born outside of the United States. Between the years 2011 and 2016 Dallas' foreign-born residents accounted for 40 percent of Dallas' population growth. The integration of foreign-born residents is 1 critical to the social, cultural and economic Y , future of Dallas. t � �r � � But newcomers cannot integrate into communities by themselves. Integration requires a partnership. Immigrants must ly ram- do their part - learn English, navigate the '0 i + job market, understand and follow the law and the receiving community must offer -' �� 'd.• inclusion, hospitality and hope. The idea is ' simply that Dallas residents, from natives to newcomers, must work together to •� nurture and sustain a vibrant city that offers + rich cultural, educational and economic c opportunities to all. The purpose of this document is to recommend a series of goals ' and strategies that will help Dallas achieve • that vision. " 1 r%ss kk Half of Texas' total population growth between 2010 and 2016 can be attributed to migration. Net domestic migration represented approximately 32 percent of the total increase, and net international migration accounted for 19 percent. Almost one in five (19.6 percent) of - - those immigrants to Texas live in Dallas. WHERE IMMIGRANTS LIVE IN TEXAS Texas Cities Percentage I r I Houston 32.5 PIER Dallas 19.6 Nor- Fort Worth/Arlington 7.4 Austin/Round Rock 6.3 76% 24% San Antonio 6.2 Native Count Foreign Born McAllen/Edinburg/Mission 5.4 El Paso 5.0 Other 17.4 1 W-7 Between 2011 and 2016, the population in the City of Dallas grew 4.2 percent, with the foreign-born population accounting for 40 percent of that total growth. As of 2016, approximately 318,000 of Dallas' 1.3 million residents were immigrants. Until 2017, Dallas was a major refugee resettlement location, with close to 2,500 refugees arriving to Dallas annually. The largest percentage of foreign-born residents are from Latin America, and most of those entered the country prior to 2000. The most common countries of origin are Mexico, followed by El Salvador, Honduras, India and Ethiopia. More than 70 languages are spoken within the Dallas Independent School District. 16 IMMIGRATION A recent study by New American Economy revealed immigrants' • Immigrant households in Dallas earned $7.9 billion in 2016. tremendous economic contributions to Dallas and the region: • Foreign-born households contributed $1.9 billion in federal taxes and $591.1 million in state and local taxes. Between 2011 and_ • Foreign-born workers contributed $847.7 million to Social Security population in the city and $218.9 million to Medicare. The rant • Immigrants make up about one-third of Dallas' employed labor 24% • force and 24 percent of its science, technology, engineering and population math workers. increased • • • Immigrants are overrepresented among the city's entrepreneurs; they are 24 percent of the population and one-third of its Total population entrepreneurs. • The 20,405 immigrants who own their own business generated Immigrant share of 4.2% $495.9 million in business income. the population, 201 • Immigrant population • Immigrants helped to create or preserve 14,617 local manufacturing jobs in 2016. • The population eligible for the Deferred Action for Childhood Arrivals (DACA) program held nearly $700 million in spending power. Number of immigrants 3173756 In 2016, the 63,396 DACA-eligible immigrants in the Dallas area— living • of whom 93.4 percent were employed — paid $89 million in federal taxes and $72 million in state and local taxes. • International students, including many from China, India and Top - countries Burma, supported 1,962 local jobs and spent $150.3 million in the of origin for immigrants 2016-2017 academic year. Other living in the countries of origin 25.5% Salvador ••• In recognition of the important presence of immigrants and refugees Mexico2 El in Dallas, and upon recommendation of the 2016 Mayor's Task Force Honduras •• VP 61.8% on Poverty, the City of Dallas established the Office of Welcoming •• Communities and Immigrant Affairs ("Dallas WCIA") in March 2017. It aims to promote the civic, social and economic engagement of Ethiopia immigrants in Dallas and to build bridges between Dallas' diverse immigrant communities and long-term residents. The director of Dallas WCIA reports directly to the Dallas City Manager. Immigration in Dallas 9 rr NATIONAL PARTNERSHIPS The City of Dallas WCIA office has searched for, and found, resources to help develop its capacity to fully integrate immigrants. It became a member of Welcoming America, a national organization leading the movement to create more immigrant-inclusive communities. WCIA has received technical assistance through its membership in Welcoming n America, and collaborated with Cities for Action, the New Americans Partnership and the Cities for Citizenship Campaign. As a result of active participation in these networks, and its work with local leaders i across a broad spectrum of business, faith-based, civic, social service and academic organizations, Dallas earned a Gateways for Growth Challenge award from New American Economy and Welcoming America. The award included original research that resulted in a recent report, New Americans in Dallas, which appears in Appendix A. r IMMIGRANTS ACCOUNT FOR NEARLY ONE THIRD OF THE CITY'S ENTREPRENEURS. THE 209405 IMMIGRANTS WHO OWN BUSINESS GENERATED THE DA AS OFF CE $495.9 MILLION IN BUSINESS INCOME. OF ICOMMUNITY ENGAGEMENT IN DALLAS WELCOMIN& NOV While these national partnerships offer ideas, encouragement and ,) technical assistance, the actual work of integration takes place within OMMUNITIES AI communities and neighborhoods and schools. From March 2017 to June 2018, Dallas WCIA has participated in 343 community events, meetings, fairs, panel discussions and other activities, reaching IMMIGRANT AFFAIRS approximately 23,030 attendees. Dallas WCIA staff also has sought insights from community leaders who regularly welcome and work with immigrants and refugees. An initial survey with faith-based, legal, AND WELCOMING and other service providers and educators detailed the barriers facing THE immigrants and what Dallas can do to help improve the quality of life for immigrant residents. PRELIMINARY SURVEY RESULTS . . 1Fear of immigration enforcementKnowledge of rights andCommunity outreach between law governmentpreparedness information enforcement & Lack of English language skills Access to civil immigration 2Celebrate contributions of Poverty/Lack of resources legal services immigrants & refugees 4Transportation Access to and utilization of Promote & provide available services & benefits U.S. Citizenship instruction Affordable housing 4ESL, Literacy and CitizenshipSupport instruction include immigrants 5Promotion of U.S. Citizenship Break down social & economic barriers After that initial outreach, Dallas WCIA formed a Welcoming Plan • Fear of going about daily activities due to heightened federal Task Force to develop formal recommendations to integrate immigration enforcement policies immigrants fully into city life. The Dallas WCIA Welcoming Plan Task . Language barriers Force includes 85 members from a wide variety of backgrounds and professions, many of whom had not met previously. Tailoring efforts to • Lack of acceptable identification the Dallas community, the task force sub-divided into five committees . Difficulty in understanding "paperwork" such as leases, that address the issue areas required for Welcoming America's contracts, bills national certification as a welcoming community: Civic Engagement; Economic and Educational Opportunity; Safe, Healthy and Connected • Lack of awareness of or access to information about topics such as Communities; Leadership and Communications; and Equitable Access. starting a business, organizing a neighborhood group, etc The full task force met monthly beginning in December 2017 to learn - Lack of knowledge of legal rights about issues impacting the Dallas immigrant and refugee communities, • Lack of civics knowledge; awareness about engagement with city city policy initiatives, existing city services and barriers to equitable leaders access and participation. Task Force members engaged with Dallas residents through listening sessions, site visits and informational From this community-driven process, task force members developed interviews. These listening sessions revealed the following barriers that a set of detailed recommendations, summarized below and explained prevent immigrants in Dallas from fully integrating into the community: fully at the end of this report, to encourage equitable access to city and educational services and full integration into civic and social life. The Dallas Office of Welcoming Communities and Immigrant Affairs and the Welcoming Plan Task Force 111 cc co Hetene :� iBiala �. co Kaabo zVelkomin� nobroaosl�xi �., � GosciRecoger Bienve"ni Bonvenon • Selamat Datang � Swagata Velkommenienvenue � Ongietorri �� Y0kOS0 Swaagat 6 .4 Failte� � Tervetuloa Siyakwamukela � e c o III e .� Sugeng Rawuh�Ao6pe ,�oWbn ` w 3;�XVItejte HerzlichWillkommen c � �Welkom � i , . �'� � a Benvingut � Hwangyong Hamn�da WoezormDObY@dOJd@ Bonavinuta 'Maligayang Pagdating � 3 cm Uvitani a, w E SUMMARY OF WELCOMING PLAN TASK FORCE RECOMMENDATIONS LEADERSHIP AND COMMUNICATIONS SAFE, HEALTHY,AND CONNECTED EQUITABLE ACCESS GOAL COMMUNITIES GOAL Local government is committed to being Welcoming communities reduce barriers inclusive and welcoming, and plays a central GOAL to services and participation so that role in building local capacity while advancing Welcoming communities build relationships opportunities in the community are available inclusion of diverse communities within its among diverse communities, including to all residents. own agencies and bodies. newcomers and longer-term residents. They also foster trust and build relationships RECOMMENDATIONS RECOMMENDATIONS between diverse communities and local law enforcement and safety agencies 1. Develop and utilize data-driven . 1. Develop community awareness about the approaches to conduct equity analyses economic, social and cultural contributions for decision-making processes and ensure immigrants make, and the benefits Dallas RECOMMENDATIONS implementation of inclusive policies for derives from being an inclusive community. 1. Provide training about diverse populations Dallas residents in coordination with other and establish ongoing dialogue with first relevant offices. 2. Develop and maintain a comprehensive responders and public safety officials directory/database of services and to foster trusting relationships between 2. Implement and oversee a City language resources for immigrants and refugees. immigrants and law enforcement. access plan, including access to safety 2. Educate immigrants about their rights services/alerts and staff training. 3. Create partnerships with local, state and g g is federal agencies, the business community and responsibilities and raise awareness 3. Su and philanthropic entities to address through on-going education throughout the Support efforts by the City to simplify and community of sensitive locations pursuant increase access to city services for changing needs related to evolving y p all residents of Dallas by implementing a immigration policy. to federal policy guidance. multi-use city identification card. 4. Enhance understanding and trust between 3. Improve health care accessibility and 4. Work in partnership to improve housing long-term residents of Dallas and immigrant understand and address needs of accessibility and work to prevent housing communities. immigrants and refugees. discrimination. 4. Convene a coalition of mental health care 5. Work in partnership to foster partnership experts to coordinate and address services programs to achieve equitable access to provided in the City of Dallas. health care. 5. Partner with philanthropy to provide civil 6. In partnership with mobility solutions immigration services and rights information experts, work to improve transportation programs. accessibility in Dallas. 6. Bring diverse groups together to celebrate and foster cultural, artistic and recreational interaction between Dallas' long-term and newer residents. The Welcoming Plan Task Force Summary of Recommendations 1 13 CIVIC ENGAGEMENT ECONOMIC OPPORTUNITY AND EDUCATION GOAL Welcoming communities actively ensure that GOAL diverse populations fully participate in civic Welcoming communities harness the full life, including increasing access to leadership, potential of all their residents. Everyone has citizenship and community participation. the skills and assets to thrive, and economic development systems are prepared to RECOMMENDATIONS leverage new and existing talent. Welcoming 1. Increase the number of Dallas immigrants communities also ensure everyone has the who become naturalized U.S. citizens. education needed to succeed in school and the workforce. 2. Increase knowledge of how local government works and how to access RECOMMENDATIONS services for immigrant communities in 1. Establish welcoming hubs as community Dallas. gathering and educational centers 3. Enhance levels of civic participation and for immigrants to access information, leadership among immigrants in Dallas. resources and opportunities. 4. Promote participation in the 2020 Census 2. In partnership, bring to-scale workforce systems that increase skill development to ensure maximum participation. and career pathways to improve immigrant S. Promote voter education and registration integration in the economy. among new citizens. 3. Remove barriers to immigrant families to ensure full access in all educational 6. Raise awareness in immigrant communities opportunities that exist in the City of of the unauthorized practice of Dallas and promote learning at all levels. immigration law and other predatory practices impacting immigrant consumers. 4. Participate in partnership opportunities to support the financial literacy needs of immigrants. 14 1 The Welcoming Plan Task Force Summary of Recommendations v lot 1 Aop- y OTc IL � y m Re �eo � oNF I G dy. . * ' Z • Alp 1 lop • Jr WARD THE WAY FOR �'#�-wI;�-1•�a�� "�•�� ,�''r�,,��,.• {;:�`�j�;� ','/,fir},• •,,- - Moving forward, Dallas is striving to become a certified •r "Welcoming City" by the national certifying non-profit organization, Welcoming America. There are currently ' IQd11z three certified cities in the nation (Dayton, Louisville, and Salt Lake City) and Dallas WCIA is working diligently to elk become the next. r While national immigration policy focuses on interdiction and deportation, communities like Dallas are working to demonstrate the longtime American ideal of welcoming immigrants. For decades, people around the world have revered the United States for its hospitality and its opportunities. Dallas will continue to honor that tradition. This city has many compatriots in this effort: according to Welcoming America, one in eight Americans lives in fi► places considered to be welcoming communities, places that actively seek to include and engage their foreign-born residents. 14 Full integration does not happen without effort, from both the receiving population and the newcomers. It takes work and good will. We can find common ground • by sharing our arrival stories — most Americans have • _ one — of grandparents who fled pogroms in Russia, , an ancestor forced onto a slave ship, a parent who crossed the Rio Grande with a goal of finding work. We find hope by reaching out, acknowledging our shared humanity, learning about our different customs and ��►- cultures, and realizing we all want to live in a safe, vibrant, compassionate city where children grow up in peace and - families prosper. No matter where we came from, we are all neighbors now. E Pluribus Unum. FjGjj7 Oft And we know that when one person moves forward in IGHOT Dallas, we all move forward. Cuando uno de nosotros sigue EA� adelante en Dallas, todos seguimos adelante. - AEA Ise r i "� : ' '� •lo The Welcoming Standard, as developed •;. ��" by the Welcoming America organization, '` '� •�" '�r provides a comprehensive guide for building more cohesive and equitable communities and fostering connections between newer immigrants and long-time residents. It also sets benchmarks for accountability and , y innovation so that city efforts can be scaled and measured in relation to established ?: ' �- • s . � - priorities that include: ��,R3•`�* � i�V ;"ram;`•#. � r. - v - ,; ` Public Safety `tg�, #.�: �r' T' ',' +;, ; ^s�'+_r �;iKlr • Mobility Solutions, Infrastructure !'•�rfs�! '' LM ` ' ` and Sustainability Human and Social Needs VAI t ,+t�1 • Quality of Life • Government Performance and r Financial Management y N , �•• The Welcoming Standard includes strategies for sustaining a welcoming plan, such as: ' lo • Engaging longer-term residents • Setting goals, monitoring impact and adjusting strategies as needed • Designing for equity and inclusion. • Implementing in partnership e Dallas Welcoming Communities Task Force produced the following recommendations and III V� strategies for implementing a Welcoming Plan in the City of Dallas. IONS r ' ✓ 1�.� LEADERSHIP AND COMMUNICATIONS Create partnerships with local, state and federal agencies, private sector and philanthropic organizations to address Commitment on behalf of city leaders to being inclusive and changing needs related to evolving immigration policy welcoming by advancing local capacity building efforts while advancing inclusion of the diverse community within the City. STRATEGIES RECOMMENDATIONS • Brief City Council members and commission members on demographics and local immigrant and refugee issues and serve as a resource when elected Develop a community awareness campaign about the officials need information. economic, social and cultural contributions immigrants make, and the benefits Dallas will derive from being an • Build relationships with other partners, including city staff and other public inclusive community agency officials, such as Dallas and Richardson ISD, Parkland Health & Hospital System leaders, Dallas County, etc. STRATEGIES • Hold listening sessions and focus groups with immigrants and refugees to • Develop opportunities to work with business associations or chambers of understand the challenges and benefits of living in Dallas. commerce, professional societies, etc. • Enlist partners, including the business and philanthropic sectors, to launch • Engage with other citywide, grass-roots organizations to discuss the a community awareness campaign, #WelcomingDallas and #BeGolden, to benefits of becoming a welcoming city and fully integrating newcomers. emphasize the ways immigrants and refugees enrich our city and contribute to the local economy. Enhance understanding and trust between long-term residents of Dallas and immigrant communities by • Identify key messages for different audience segments and the most creating shared experiences effective media channel for reaching those audience segments. • Enlist influential leaders in the receiving community(business and civic STRATEGIES leaders, etc.)to serve as spokesmen and women who can explain the • Hold annual Thanksgiving dinners to bring newcomers and long-term benefits of being a welcoming community. residents together to celebrate a cherished American tradition. • Actively seek out or create opportunities for media coverage of immigrant- . Coordinate volunteer opportunities for diverse communities to collaborate related stories, such as holding naturalization ceremonies at City Hall, etc. and work together. • Promote welcoming and inclusive culture via public proclamation or resolution. . Sponsor community gardens in partnerships, use transit systems to explore the city, hold cultural celebrations, art exhibits and engage in community Develop a Directory/Database of Services and Resources clean-up, soccer tournaments, Ciclovia and other activities that allow for Immigrants and Refugees as a welcoming guide that groups to become more familiar with diversity beyond their immediate helps newcomers more easily access services and resources neighborhoods, place of worship, and workspace. • Participate in recreational events in Dallas for families to gather on multiple weekends throughout the year and use as an opportunity to raise awareness STRATEGIES about community and family services. • Survey the landscape to learn what already exists. • Work in partnership to welcome international guests to Dallas with protocol • Identify immigrant and refugee leaders, including youth leaders, to serve office. as community ambassadors to help identify needs and provide resource information. PARTNERS • Find a "home" or administrator for the directory, so that it is regularly Business and philanthropic sectors, Dallas residents, Dallas media outlets, updated and reviewed for accuracy, etc. elected officials, service providers, local, state and federal officials. Welcoming Plan Recommendations 119 EQUITABLE ACCESS Implement and oversee a City language access plan to remove linguistic barriers to participating in Dallas Welcoming Dallas reduces or eliminates the barriers to accessing life and community engagement, while providing staff services, programs and activities, so that the opportunities of the training community are available to all residents. STRATEGIES RECOMMENDATIONS • Improve language access to information and services. Develop and utilize data-driven approaches to conduct • Ensure language access across city departments with the goal of expanding equity analyses for decision-making processes and work equitable access to programs, services, and activities. to ensure implementation of inclusive policies for Dallas residents in coordination with other relevant offices • Undertake an assessment of the language needs of the community with the goal of providing access to (i) important information including safety, emergency, and alert services; (ii) housing, transportation and health STRATEGIES information and services; (iii) all City services; (iv) legal and non-profit • Review city policies concerning government leadership, equitable access, resources; (iv) educational and work force training opportunities. Implement civic engagement, cultural inclusion, education, economic development, and operationalize a language policy that meets the needs identified. neighborhood development, and public safety for implicit bias and ensure equitable consideration of immigrant residents and visitors. • Publicize and market the policy in a way that emphasizes the diversity and inclusiveness of our community. Upgrade, enhance, and publicize existing • Undertake a systematic review of local laws, codes, policies, and services such as 311, 211texas.org, northtexasfamilies.org, helpfinders.org. practices to determine whether such policies (i) exclude or disenfranchise immigrants; or (ii) exclude residents based on facets of the identity, • Create partnerships with others who can assist in translation and resources. including gender, race, ability, age, religion or sexual orientation. • Revise any policies found to run counter to ((i)-(ii)) above. Support effort by the City to simplify and increase • Implement a process to regularly review and improve local policies to access to city services for all residents of Dallas strengthen immigrant inclusion. by implementing a multi-use city identification card STRATEGIES • Conduct an assessment of the ways a multi-use City ID would improve the quality of life for Dallas residents. • Determine the financial costs and other feasibility issues in developing a multi-use City ID card. Seek wide community support for a multi-use City ID card. EL • Provide funding and the authority to administer a multi-use City ID program to be accepted by the City for enumerated city services. - c 20 1 Welcoming Plan Recommendations Improve access to Housing in partnership with Improve mobility and transportation options for all Dallas community-based organizations, Dallas Fair Housing, residents and include immigrants in the inclusion process; Texas Fair Housing Authority this would be done in partnership with Dallas Office of Transportation, DART, corporate philanthropy, and community organizations STRATEGIES • Ensure that the comprehensive housing plan includes the integration of STRATEGIES immigrants and other diverse populations into all neighborhoods • Expand services and a seek a reduction in fare prices to provide supportive of Dallas. public transportation to all low-income residents of Dallas. • Dedicate a portion of affordable housing development requirements for the • Better utilize existing city and community resources in addressing unsubsidized population and require developers to incorporate unsubsidized transportation needs. low-income housing into all financing plans. • Promote the value of working with immigrants in providing PARTNERS low-income housing; remove barriers to renting apartments. Service providers, City of Dallas departments, philanthropic sectors, • Support tenant efforts to hold owners accountable for substandard Dallas residents, elected officials, public transit authorities, public properties and assist in disseminating discrimination policies and access to housing authorities, real estate associations, tenant associations, legal remedies. service providers, local, state and federal officials. tjIn partnership, actively work to foster partnership programs to achieve equitable access to health care STRATEGIES • Host dialogues on how to address fear and toxic stress that are impacting daily life and well-being of Dallas families. • Establish a network of accessible community-based primary care clinics, in ` under-serviced areas and areas with high immigrant concentrations. r y� • Advocate for language access services during medical and behavioral health visits. ' d Z ,I Welcoming Plan Recommendations 121 SAFE HEALTHY AND Educate communities about their rights and responsibilities as well as federally designated CONNECTED COMMUNITIES sensitive locations Welcoming Dallas builds relationships among diverse communities, including newcomers and longer-term residents. STRATEGIES It also fosters trust and builds relationships between diverse • Map the sensitive locations and resource materials that explain the meaning communities and local law enforcement and safety agencies. of being a sensitive location for community distribution. • In partnership, convene classes about legal rights and responsibilities. RECOMMENDATIONS Implement and Increase access to justice PARTNERS for immigrants and refugees First responders, public safety officials, service providers, City of Dallas departments, philanthropic sectors, Dallas residents, elected officials, service providers, local, state and federal officials. STRATEGIES • Create an informational clearinghouse for information and access to legal and non-profit assistance and engagement with the law enforcement community. • Overcome language barriers in the court system and the prosecutor's office. _ • Create public/private partnerships to provide civil immigration legal services for indigent respondents. -- - - in _. h Ok Facilitate and strengthen relationships between public safety departments and Dallas immigrant communities through a "Safe Connections RoundTable" series while providing training on interacting with diverse populations L. STRATEGIES • Monthly meetings between the DPD, DFD, and Dallas WCIA staff; secure approval and cooperation from DPD Chief and DFD chief. Establish the topics and data to be covered and provided at each meeting. • Establish time and place for the meetings for the calendar year. • Promote education/hold classes on municipal laws, human trafficking, and U visa policy to educate the immigrant community on issues that impact their quality of life in Dallas. Across city departments, Dallas WC/A actively engages in outreach and dialogue to help build bridges within the community and to inform community • Coordinate in partnership Dallas Resident Police Academies in members about the importance of reporting crime and options that may exist multiple languages. for victims of crime. Community engagement with collaborative partners like the Dallas Police Department Unidos program to alleviate fears and increase the quality life of Dallas residents. 221 Welcoming Plan Recommendations CIVIC ENGAGEMENT • Involve the Mayor of Dallas and Councilmembers in high- profile activities that underscore the importance of U.S. citizenship, such as speaking at Welcoming Dallas actively ensures that diverse populations fully naturalization ceremonies, giving media interviews or participating in PSA. participate in civic life, including increasing access to leadership, citizenship and community participation. • Establish a Community Ambassadors Program to include new citizens to further promote the#MyDallas Citizenship Campaign. RECOMMENDATIONS • Engage with immigrants and refugees in coordinating and promoting Increase the number of Dallas immigrants who become citizenship civics classes and ESL classes naturalized U.S. citizens by hosting bi-annual citizenship workshops with community collaborators Increase Knowledge of Local Government among Immigrant Communities of Dallas STRATEGIES 1i • Coordinate the#MyDallas Citizenship Campaign with key partners throughout the City. STRATEGIES • Conduct free, large-scale naturalization workshops at the Dallas Public Create an Outreach Speakers Bureau of long-term U.S. citizens and public Libraries and other venues on a quarterly or semi-annual basis where a officials (mayor, city manager, city councilmembers, police chief, sheriff, diverse group of volunteers can assist immigrants to apply for naturalization. judges, district attorney, city attorney) to educate new immigrants on major aspects of local government including: city and county roles and jurisdictions; • Establish Citizenship Corners in all Dallas Public Library branches and equip relationship to state and federal government; law enforcement organization Citizenship Corners with wide a range of information helpful to immigrants and roles; courts structure and organization; and many other topics. and refugees. • Promote the free Text4Refugees text messaging platform. • Maintain active membership with national partner organizations also dedicated to promoting U.S. citizenship, such as: New Americans Campaign Collaborate with Dallas Police Department UNIDOS community policing (NAC), Cities 4 Citizenship (C4C), National Partnership for New Americans speakers and expand program to include other cultural leaders and (NPNA) and U.S. Citizenship and the Immigration Services Citizenship Grant languages. Program. • Partner with 311 and other city departments to communicate topical • Partner with businesses to assist lawful permanent resident employees with information about city life. the process of citizenship, using New American Workforce as a model. • Create citizenship loan programs by working with credit unions and lending circles to establish low-interest loans to pay for naturalization application fees. • Encourage release time for City of Dallas employees to participate in WCIA- sponsored events, including City Hall Naturalization Ceremonies; Citizenship and DACA application workshops; and other large-scale events. • Include in City of Dallas' Texas Legislative Agenda a request for state — f funding for naturalization promotion efforts as exists in numerous other f .' states with large immigrant populations. / _ it Welcoming Plan Recommendations 123 Enhance Levels of Civic Participation and Bring together key stakeholders and "influencers" into the 2020 Census Leadership Among Immigrants outreach efforts early to deliver positive messages about the census. Promote Voter Education and Registration STRATEGIES Among New Citizens • Create a City of Dallas New Citizens Leadership Academy, modeled after New American Leaders, as a learning opportunity for new citizens to master skills necessary to: 1. Run for local, state, and/or federal office 2. Hold community leadership positions STRATEGIES 3. Advocate for public policies supportive of immigrant families • Assist in the coordination of Citizenship Corners at Dallas Public Library to ensure they are well-supplied with voter registration and educational • Develop community councils, comprised of a cross section of immigrants and materials. refugees from around the City to gather input and recommendations from . Promote voting through existing mass mailings such as utility bills, and their respective community for presentation to City Council and the Mayor. other local government mailings. • Promote community service opportunities for immigrants and refugees . Coordinate with community organizations dedicated to promoting the through linkages to existing volunteer placement programs, such as right to vote. Corporation for National and Community Service (CNCS), AmeriCorps, VISTA, Senior Corps, Volunteer Now and others. • Participate at voter registration booths at USCIS Naturalization Ceremonies • Encourage immigrants and refugees to volunteer at naturalization workshops. and other public events. • Involve new citizens in voter registration drives in their own immigrant _ communities. • Establish a WCIA Volunteer Coordinator position to match immigrants and refugees with nonprofit organizations where they will learn skills to enhance their employability. • In partnership with City protocol office, develop and foster existing relationships with sister cities around the world. Ave Promote Participation in the 2020 Census to Ensure Maximum Participation - STRATEGIES • Participate in all activities of the Mayor's Complete Count Committee. • Conduct early and widespread outreach to familiarize immigrants and MyDallas Citizenship Application Workshop held at the central library in refugees with the 2020 Census and the importance of it. downtown Dallas. Promotion of citizenship is integral to the work of inclusion. Research shows that individuals, families and the communities where they live • Coordinate efforts with counterpart Immigrant Affairs offices throughout stand to gain through naturalization. Dallas WCIA and its partners are the U.S. to identify effective strategies and best practices for ensuring expanding citizenship efforts in Dallas to simplify the process and improve the participation in the 2020 Census and privacy protections. lives of Dallas residents. 24 1 Welcoming Plan Recommendations Raise Awareness in Immigrant Communities of the Unauthorized Practice of Immigration Law (UPL) and other predatory practices impacting immigrant consumers / STRATEGIES • Maintain constant and repetitive messaging warning immigrants and t refugees about "notaries" and the unauthorized practice of immigration law. `!•— r. I • Regularly update and circulate the Dallas WCIA pamphlet, "Guide to Immigration Legal Service Organizations in North Texas Recognized by the U.S. Department of Justice". • Ensure that Dallas Public Libraries' Citizenship Corners are stocked with materials advising about the unauthorized practice of law and immigration scams. • Build relationship with consumer-related prosecuting entities such as the State Bar Unauthorized Practice of Law Committee, the Texas Attorney General's Office, the Federal Trade Commission and others. DACA is a Prime Example of Integration and Inclusion PARTNERS The Dallas metropolitan area has the third largest number of residents with Deferred Action for Childhood Arrivals (DACA)across the United States. First responders, public safety officials, service providers, City of Given their income, DACA-eligible immigrants contribute significantly to state Dallas departments, philanthropic sectors, educators, Dallas residents, and local taxes, including property, sales and excise taxes. They are highly elected officials, service providers, local, state and federal officials. engaged in community affairs and the employment rate of DACA-eligible living in Dallas in 2016 is 93.4%. As part of the#MyDallas campaign, WC/A plans to expand efforts to include coordinating DACA Renewal clinics with nonprofit and philanthropic partners so that all eligible recipients apply to receive protection from deportation, work authorization, and the ability to continue contributing in the formal economy. Welcoming Plan Recommendations 125 ECONOMICOPPORTUNITY Develop a plan to support current and future immigrant- owned businesses. AND EDUCATION • Conduct outreach on resources for starting business in Dallas and facilitate programs that augment entrepreneurial initiatives in immigrant communities. Welcoming Dallas harnesses the full potential of all residents. . Support efforts to fight wage theft cases for immigrants. Everyone has the skills and assets to thrive, and economic development systems are prepared to leverage new and existing • Develop curriculum in technological skills and competencies in multiple talent. Welcoming Dallas ensures everyone has the education languages. they need to succeed in school and the workforce. • Participate in partnership opportunities to support the financial literacy RECOMMENDATIONS needs of immigrants. In partnership, bring to-scale workforce systems that increase skill development and career pathways to PARTNERS improve immigrant integration in the economy Workforce Solutions of Greater Dallas, DCCCD, Texas Workforce Commission Adult Education and Literacy programs, philanthropy, employers, city and county. STRATEGIES • Help immigrant and refugee service providers augment services and resources tailored to assisting immigrants and refugees in breaking barriers to workforce entry. • Leverage existing resources in Dallas County to improve job training and promote entrepreneurial development. �. • Work in partnerships, to provide credential evaluation to transition qualified immigrants into stable jobs/trades and skill appropriate workforce involvement. • Increase immigrant and refugee involvement across the full spectrum of newcomer services and agencies focusing on economic and educational opportunities. • Leverage partnerships to create opportunities for immigrant and first generation college youth to apply for internships and apprenticeships. - • Conduct asset mapping of economic, educational, and transportation access gaps for immigrant residents. d 04 - a • Work in partnership to promote workforce and skills development. Az • Work in partnership with economic development chambers and other _ partners to encourage and provide technical assistance to small and minority-owned businesses to become vendors to bid on City projects. • Promote growth for immigrant and minority businesses and work with EB5 Program to stimulate economic development in opportunity areas. City of Dallas is committed to "service first"philosophy to all its residents. 26 1 Welcoming Plan Recommendations Establish welcoming hubs Remove barriers to immigrant and refugee families to promote learning and ensure full access in all educational opportunities that exist in the City of Dallas STRATEGIES STRATEGIES • Assess welcoming locations to create a human-centered digital platform of • Work in partnership to provide expanded subsidized preschool/daycare and resources. early childhood programs servicing diverse populations. • Create a community space for collaboration/awareness of existing resources • Work in partnership to provide parent workshops about education and among community-based organizations and service providers. college opportunities throughout the City in multiple languages. • Create a network of community organizations by county. • Ensure that English language learning opportunities are available throughout the City in convenient and safe locations. • Develop an online portal for all Dallas residents interested in international affairs, providing calendars of events and useful resource guides. • Utilize public libraries and welcoming hubs as a center point to promote the resources available for newcomers in different languages. • Promote the availability of quality information and counseling to immigrant families regarding higher education and vocational opportunities. • Partner with educational service providers to promote a covered college education for Dallas high school students. • Provide information on civil rights and legal resources. • Organize events to encourage the international community to share • Publish a basic guide for newcomers. experiences/knowledge. • Provide workshops to help parents understand pathways to college. • Create mentorship opportunities between seasoned immigrant professionals and newcomer families. • Establish one-stop shops where immigrant entrepreneurs can get information on navigating licensing and other processes • Help immigrant students transition into the U.S. school system, enabling them to engage with the appropriate curricula and succeed academically. • Support immigrant entrepreneurs in the tech economy by working with universities and private industry to access information and networks. • Work with Parent Teacher Associations (PTAs) in public schools to be more encouraging and inviting of immigrants and refugees. • Provide reliable information on important issues and service needs, such as: tax preparation, authorized immigration legal services, proper vs predatory lending, how to avoid real estate and healthcare scams, how to recognize PARTNERS predatory for-profit educational programs and many others. RISD/DISD's Newcomer's program to ensure services are provided to volunteers, teachers, and administrators, Dallas Public Library, Carrollton-Farmers Branch, Coppell, Duncanville, Garland, Highland Park, Mesquite, Plano, Richardson, DISD, Irving, colleges universities nonprofit after school organizations, and business development training centers. Welcoming Plan Recommendations 127 '+ .. 4 1 Ivor It o Ir v ' \r \ R The Welcoming Dallas Plan includes a broad set of actions that are prioritized ``,,-�\7 �—' as short-term, mid-term and long-term EFRand grouped in three categories. t SHORT TERM 1-2 YEARS MID TERM 2-3 YEARS LONG TERM 3+ YEARS WELCOME, NEIGHBOR WELCOME, NEIGHBOR WELCOME, NEIGHBOR • Launch community awareness campaign and actively • Establish welcoming hubs Remove barriers to immigrant and refugee families to seek out opportunities for media coverage for • Revitalize sister city relationships ensure full access in all educational opportunities that immigrant related stories exist in the City of Dallas • Host naturalization ceremonies • Create youth taskforce on welcoming&promote next-gen leadership • Enhance understanding and trust between long-term . Promote higher education and workforce opportunities residents of Dallas and immigrant communities by creating shared experiences • Enhance levels of civic participation and leadership CONNECTING DALLAS • Maintain comprehensive directory among immigrants • Improve housing accessibility • Increase the number of Dallas immigrants who become • Improve transportation accessibility naturalized U.S.citizens CONNECTING DALLAS • Promote participation in the 2020 Census Collect data to conduct an equity analysis for decision • Raise awareness throughout the community of the making processes • Ensure that English language learning opportunities federally-designated sensitive locations • Improve health care accessibility are available throughout the City in convenient and safe locations • Develop and oversee a language access plan • Collect and utilize data-driven approaches to conduct • Support endeavors to research&launch a City ID equity analyses for decision-making processes with program other relevant offices CONNECTING DALLAS • Identify&revise policies that may exclude or discriminate • Establish a city office to house immigrant integration • Partner with philanthropy&service providers efforts regarding civil immigration services and rights FORWARD TOGETHER • Establish a welcoming city employee resource group information programs • Review and revise as needed • Expand Dallas civic engagement and leadership • Raise awareness of the unauthorized practice of opportunities immigration law and other predatory practices • Establish and maintain ongoing dialogue with first • Utilize data-driven approaches to conduct equity responders and public safety officials analyses with other relevant offices • Increase knowledge of local government for immigrant • Implement and increase access to justice for communities in Dallas immigrants and refugees FORWARD TOGETHER FORWARD TOGETHER • Promote voter education and registration among new • Engage local,governmental, business,and civic U.S.citizens leaders to elevate the myriad benefits of being a welcoming and diverse city • Raise awareness of and improve immigrant integration in workforce systems and improve U.S.professional • Create partnerships to address changing needs related licensing processes to evolving immigration policy • Participate in partnership opportunities to support the • Promote growth for immigrant and minority businesses financial literacy needs of immigrants • Engage local,governmental, business,and civic leaders to elevate the myriad benefits of being a welcoming and diverse city • Create partnerships to address changing needs related to evolving immigration policy • Create partnership opportunities to support the financial literacy needs of immigrants Timeframe 29 ACKNOWLEDGMENTS WCIA thanks the following Dallas leaders for their commitment and contributions to developing the Welcoming Plan Recommendations for the City of Dallas. WELCOMING PLAN TASKFORCE Ghazwan Abdullah,Seek the Peace Prisma Garcia,Social Venture Partners Mirjana Omeragic,Mosaic Family Services Hanna Alexander,Equal Justice Center Yolette Garcia,Southern Methodist University,Simmons School Sarah Papert,Literacy Achieves Luis Arango,J.D.,Catholic Charities of Dallas Michelle Garza Pareja,RAICES Edurne Pineda,Consulate General of Mexico Nicolas Argueta,American Salvadoran Association Tom Gibbons,Compassionate DFW Cheryl Pollman,National Council of Jewish Women Virginia Arteaga-Haid,Global Economic Development Dr.Jessica Gomez,Momentous Institute Dr.Alina Ponce,Momentous Institute Dallas County Community College District Rebecca Greenan,Esq.,UNT Dallas College of Law Angelica Portillo,Dallas Afterschool Ann Badmus,Esq.,Immigrant Journey Awards Christina Hanger,Dallas Afterschool Maria Powers,The Wilkinson Center Charles Barker,MD,Compassionate DFW Claudia Hermann,Asociacion de Mujeres Empresarias Daniel Prescott,Transformance Karen Bassett,League of Women Voters y Profesionales Nina Rafiq,Parkland Hospital Graham Bateman,Justice for Our Neighbors Jin-Ya Huang,Break Bread Break Borders Diana Ramirez,Workers Defense Project Syl Benenson,National Council of Jewish Women Larry James,CitySquare Leonid Regheta,Project Start Bill Bernstein,Mosaic Family Services Tiffany Jelke,International Rescue Committee Cristal Retana,Children's Health Bill Betzen,The School Archive Project Kavita Khandekar Chopra,Esq.,Human Rights Initiative Edward Retta,Cross Culture Communications Dr.Watt Black,Southern Methodist University,Simmons School Irma Kusuma,Greater Dallas Asian American Chamber Sr.Patricia Ridgely,Sisters of St Mary of Namur Ing.Erik Burgos,North Texas Dream Team Brenda Kirk,The National Immigration Forum Marissa Rodriguez,Injury Prevention Center Felicitas Cadena,UNIVISION Brenda Lepenski,Foundation Communities Daley Ryan,International Rescue Committee Victor Carrillo,Zion Oil&Gas Dr.Hilda Loria,UT Southwestern Medical Center and Jaynie Schultz Jason Clarke,Seek the Peace Children's Health Blake Schwarz,Park Cities Presbyterian Church Laura Collins,Esq.,George W.Bush Institute David Lozano,Cara Mia Theater Joel Schwitzer,American Jewish Committee Dallas Isabelle Collora,Homeward Bound Rene Martinez,League of United Latin American Citizens Dr.Irwin Segal,Family Medical Physician Isabel Colunga,Injury Prevention Center of Greater Dallas Mark Masepohl,UNIVISION Dr.Michael Sorrell,Paul Quinn College Harry Davis,First Unitarian Church of Dallas Cheryl McCarver,Community Council of Greater Dallas Shelli Stephens Stidham,Injury Prevention Center Catrina Dawson,Unite Greater Dallas Dr.Margo McClinton Stoglin,CRM&Associates,LLC; Martha Stowe,Vickery Meadow Youth Development Foundation Angela Downes,UNT Dallas College of Law Advising and Consulting Services Jamila Thomas,Dallas Independent School District Lenita Dunlap,Heart House Regina Montoya,Esq.,Dallas Mayor's Poverty Task Force Claudia Torrescano,Dallas Independent School District Linda Abramson Evans,United Nations Association Dallas Lissette Moreno,Peace&Justice Ministry Nubia Torres,Catholic Charities of Dallas Hector Flores,League of United Latin American Citizens Janet Morrison-Lane,PhD,Vickery Meadow Youth Leticia Tudon,The Concilio Sara Fox,Richardson Independent School District Development Foundation David Villalobos,Texas Organizing Project Alfonso Franco,Proyecto Inmigrante Jennifer Nagorka,Freelance Writer Rev.Michael Walsh,Dallas Area Interfaith Juan Garcia,SMU Dedman School of Law student Dr.Walter Nguyen,Mosaic Family Services Kasey Yanna,Dallas Independent School District Dr.Patty Garcia,Latino Center for Leadership Development Dr.Javier Olguin,Eastfield College 30 1 Acknowledgments c MANY THANKS TO OUR COLLEGE Of CITY LEADERS FOR SUPPORT AND LEADERSHIP Mayor:Mike Rawlings Mayor Pro Tem/District 3:Casey Thomas II Deputy Mayor Pro Tem/District 2:Adam Medrano ++ It District 1:Scott Griggs I District 4: District 5:Rickey D.Callahan District 6:Omar Narvaez slaw District 7:Kevin Felder t .. '. a �� )-cis`y District 8:Tennell Atkins `'� t c 21 District 9:Mark Clayton District 10:B.Adam McGough i District 11:Lee Kleinman ( • 4 it District 12:Sandy Greyson 7 :r ' • ��1 ` ! 1 L District 13:Jennifer Staubach Gates District 14:Philip T.Kingston City Manager:TC Broadnax City Manager's Office Executive Team,City Departments, and Mayor's Staff Office of Welcoming Communities and Immigrant Affairs i Director:Mary Elizabeth(Liz)Cedillo-Pereira,Esq. Senior Program Manager:Vanna Slaughter,LCSW , Community Outreach Specialist:Yolanda Ramirez 2018 Interns/Next Gen Leaders:Mirka Estrada,Jenny Yuhun .91 Myung,John Reaves,Alice Vyukusenge ru ■ Welcoming America,New American Economy and all collaborating partners,Felicia Carrillo Escobar and Monica Fuentes Photography:Kael Alford,Rooha Haghar �' r�� \ . t `•� Design:El Creative Advertising&Design,Jessie Martinez, Jacob Johnstonbaugh � I t City Council Approved Resolution (18-1520) - October 24, 2010 181520 October 24, 2018 WHEREAS, fostering a welcoming environment for all individuals, regardless of race, ethnicity or place of origin, enhances the City of Dallas' (Dallas) cultural fabric, economic growth, global competitiveness and overall prosperity for current and future generations;and WHEREAS, Dallas is a city in which diversity is acknowledged, celebrated and harnessed to improve the social, economic and cultural opportunities of all residents; and WHEREAS, Dallas is a city where nearly one in four residents was born in another country and where immigrants represented forty percent of the demographic growth between 2011 and 2016 and has established an Office of Welcoming Communities and Immigrant Affairs to promote and advance the economic, cultural and social engagement of immigrants and refugees in Dallas; and WHEREAS, immigrants in Dallas contribute to the local and state economy across a wide variety of industries and sectors and represent nearly thirty-one percent of the working age population in the city; and WHEREAS, Dallas is actively working across all sectors to establish a local welcoming framework to integrate and include immigrants in all aspects of city life;and WHEREAS, Dallas is partnering with leaders, and representatives of local government, businesses, nonprofit agencies, philanthropic enterprises, academia, service providers, faith-based groups and first responders to build awareness of the benefits of being a welcoming community; and WHEREAS, Dallas' efforts that promote understanding and collaboration between long- time residents and foreign-born community members are crucial to ensuring a welcoming environment;and WHEREAS, Dallas earned a "Gateways for Growth" Award from Welcoming America and New American Economy to build capacity for fully integrating and including immigrants in Dallas; and WHEREAS, Dallas supports the national Cities for Citizenship Campaign, Cities for Action, and the New American Partnership to pursue the naturalization process; and WHEREAS, Dallas recognizes that welcoming communities are more socially cohesive, economicaHycompetitive, and leverage new and untapped forces for prosperity. Now,Therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS: 32 1 City Council Approved Resolution (10-1520) - October 24, 2010 CONTINUED 181520. October 24,2018 SECTION 1. That the City of Dallas hereby affirms its commitment to being an inclusive and welcoming city. SECTION 2. That it is the pol cy of the City of Dallas to comply wrath federal and state law regarding immigration. SECTION 3. That the City Council hereby adopts as a reference and guide the recommendations of the Welcoming Plan Task Force in the Welcoming Plan, attached hereto. SECTION 4.That the City Council hereby directs the City Manager to seek certification from Welcoming America as a certified welcoming city. SECTION 5.That the City Council directs the City Manager to consider and consult the recommendations of the Welcoming Plan Task Force in conjunction with federal law, state law, and other adopted plans as a guide for future actions to further the goal of being an inclusive and welcoming city. SECTION 6. That this resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Dallas, and it is accordingly so resolved. APPROVED BY CITY COUNCIL OCT 14 2018 33 s I Between 2011 and 2016, Growth in the the population in the city foreign-born grew 4.2%. population accounted for The immigrant 240?/o population increased 7.2%. Total population 1,268,905—,1,321,656 — '4.2% j Immigrant share of Immigrant population 296,520-.317,756 �} ( the population,2016 I ,l �. all 317,756 hat perioNumber of immigrants living populatioin Dallas in 2016: growth during that period. Top five countries of origin for .4. immigrants living in the city: Other countries Mexico.........................61.8% L • rigin ♦ '�� 2 El Salvador..................... 5.6% ` 3 Honduras...................... 2.8% Mexico India............................2.7% 61.8% Ethiopia.........................1.6% New Americans in Dallas SPENDING POWER&TAX CONTRIBUTIONS $1.913 went to federal taxes.2 • • • • $591.1M went to state and local taxes.' Leaving them with $5AB 1 in spending power.4 Immigrants also support federal social programs. In 2016,they contributed $847.7M $218.9M $847,7M to Social Security and Medicare W-»x %4 IVY to Medicare. Social Security 2 35 New Americans in Dallas LABOR FORCE GROWTH Although the foreign-born made ups Walter Nguyen the city's overall population,they represented 31.6%of its working-age population,31.5%of its employed labor force,and 23.9%of its STEM ED, Mosaic Family Services workers in 2016. 'n 1982,at age 31,Walter Nguyen made his fifth and final attempt to escape Vietnam.Prior Immigrant sharesofthe... attempts had landed him in jail,but he did not have a choice.Food was scarce,and because he had Population • worked as a press officer for U.S.-backed South Vietnamese forces,the communist government Working-age population* 31.6% had a target on his back."I was constantly being spied on,"says Nguyen."So I looked for a way to Employed labor force 31.591 escape,and find freedom,and rebuild my life." STEM workers— 23.7o' America gave him that opportunity.In Wisconsin, where he first settled,Nguyen became a bilingual " working-age refers to people ages 16-64 years old. social worker and earned a master's degree in **STEM refers to Science,Technology,Engineering,and Math fields. social work.He later received a PhD,as well as a distinguished alumni award,from the University of Texas at Arlington. Immigrants play a critical role in several Nguyen had moved to Texas in 1989 to be close to key industries in the city.This includes: his fiance and brother.He got ajob as a program manager at the East Dallas Counseling Center,and in 1993 was promoted to executive director.During his tenure,he launched an ambitious expansion in which he started a refugee health and emergency Construction Share of workers in the services program;added a 30-bed shelter for 69.600 industry who were domestic violence victims;formed an anti-human foreign-born in 2016 trafficking initiative;and created a counseling department and a legal unit to guide people through family and immigration court.Today,the organization is called Mosaic Family Services and serves over 15,000 north Texans,a quarter of General services whom were born in the United States. 43.5% "1 consider what I do social entrepreneurship," he says."I apply a business model toward social Manufacturing services,promoting results,effectiveness,and 41.1% efficiency.But our bottom line is people, not money." Accommodation&Recreation 37.9% Nguyen attributes the organization's success to his background as a refugee."Services are most Professional servicese effective when the provider understands the culture and the language of the client,"he says. 27.2% "They instantly gain trust if they know you've shared their experience."His background as a 24% refugee also taught him perseverance."If you Share of population can overcome the initial adjustment and lack of resources to obtain an education—that's powerful. The American dream is always there,"he says."As long as you work hard and are helpful to others." 3 361 New Americans in Dallas LABOR FORCE GROWTH CONT. Because of the role immigrants 1456171ocalplay in the workforce helping companies keep jobs on U.S. manufacturing jobs soil,we estimate that, by 2016, immigrants living in the city had that would have otherwise helped create or preserve... vanished or moved elsewhere! ENTREPRENEURSHIP Despite making up 24e/u of the overall population, Immigrant entrepreneurs tended to immigrants represented 32.2%ofthe entrepreneurs concentrate in these industries in 2016: in Dallas in 2016. 0 Construction Workers . . . . . . . . . .29.7% © General services.. .. . . . . . .. . . . . . 21.1% Immigrant share of entrepreneurs 9 0 E Professional services . . . . .. . . . . .15.9/o Transportation. . . .. . . . . . .. . . . . .. 7.7% ,•,Immigrant share Retail Trade.. . . . . .. . . . . . .. . . . . ..6.7% ofthe population Other. . . . . . .. . . . . .. . . . . . .. . . . . .18.9% About 20,405 immigrants worked for their own businesses Number of in 2016 e generating Dallas Sales Paid Employees, Businesses,2012 Revenue,2012 2012'0 $495,9M American-owned $1.3B 7,928 in business income. Asian-owned $5B 27,050 Hispanic-owned $3.5B 20,278 4 137 New Americans in Dallas EDUCATION ly Alex Medrano tohImmigrantsvbacelor'sess d degree to have a bachelor's degree Financial Planning Advisor or higher. Alex Medrano was 11 years old when his mother brought him to Share ofpopulation over age 25 the United States from Mexico in search of a better education, with a bachelors degree or higher: an opportunity Medrano fast took advantage of.By his sophomore ................. 38,8% year of high school,he was taking college classes,and by graduation of S.-born he had 62 hours of college credit and was tutoring peers in algebra and trigonometry.His mother,who had fled a violent husband, sachelor's 18.2% single supported her two children b cleaning houses. degree of immigrants g Y pp Y g or higher Medrano's goal was to become an electrical engineer.He enrolled at the University of Texas at Arlington after high school,but had to drop out due to financial barriers.To help fund college and support his family,Medrano began working as a teller at Wells Fargo.As he Share of population over age 25 advanced—he became a personal banker after just eight months— with an advanced degree: he developed a new focus:helping people in the community improve their financial situation. - -- 13.6% of U.S.-born "One of my biggest passions is helping people who don't realize they can do so much with their lives,to buy a house or build credit," Advanced 740/0 Medrano says."I love getting them through the process.It's amazing degree of immigrants how much you can change a life." Medrano—who has since re-enrolled in school—now advises small businesses and entrepreneurs on launching their projects.He also volunteers financial planning advice to members of the Hispanic Contractor's Association and the Dallas Chamber of Commerce. "Since I've been creating a little bit of a career,"he says. Medranono is is now leaning toward more community-oriented work."I volunteer at a food pantry and attend city council meetings to share updates with my customers.I would love to work for a nonprofit and31179 educate people in need about their finances." students who were enrolled in Dallas Unfortunately,Medrano's ability to continue offering his financial colleges and universities services could be at risk.Medrano is one of more than 226,000 during the fall of 2015 Texans who have Deferred Action for Childhood Arrivals(DACA), a program that provides qualifying undocumented immigrants were temporary resi- brought here as children with temporary legal status but that is dents.11 International slated to end in March 2018. students supported... "We want to develop ourselves here and make this country better," 1962 Medrano says."If we lose that opportunity,there's a lot of potential lost." local jobs and spent �.../�The American dream is always there,"he says."As long as you work $150■JIYI hard and are helpful to others." in the 2016-2017 academic year.12 5 38 New Americans in Dallas HOUSING WEALTH In 2016, The total property value of immigrant 42m2% households was of immigrants in Immigrant Dallas owned households $112B. their own homes, Homeowners ■Renters compared with No response Their total 512% annual rent was who rented. $7341M. 43.6%of the U.S.-born owned their own homes. NATURALIZATION • Share of immigrants in Dallas who were • • • naturalized citizens in 2016. Naturalized This constituted 85,098 people. • Share among those who were not citizens but • potentially eligible for naturalization in 2016. Potentially eligible This constituted 47,288 people. s 139 New Americans in Dallas BANKING" In 2015, 92.6% of immigrant 92.6% 94.9% households in Dallas had bank accounts, compared with 94.9% of U.S.-born households. FOREIGN-BORN 7.4% 25,7% 72.0% 2.4 No Checking or Savings Savings Only Checking Only Both Checking and Savings Main methods of paying bills as cited by immigrants,2015 0 37.4% - Electronic Payment via Bank 0 29.6% - Personal Check 0 11.6% - Debit Card The income of immigrant households in 26.9%of immigrant households stated the city remains relatively stable. that their monthly income has In2015, small variation 702% month to month. of immigrant households 20.0' g In 2015,these shares 147, reported their income reported having remained roughly the same applied for a bank each month. loan or line of credit the previous year: U.S.-born Foreign-born 7 401 New Americans in Dallas CONTRIBUTIONS OF THE DACA-ELIGIBLE 63,396 93.4% Number of DACA-eligible living in the Employment rate of DACA-eligible living Dallas metro area in 2016 in the Dallas metro area in 2016 • -• • $89M went to federal taxes. $72.OM went to state and local taxes. Leaving them with $698m6M • in spending power. About 10.7%of the DACA-eligible population Top 5 Industries for the DACA-Eligible in the ages 25 and above had at least a bachelor's Dallas Metro Area: degree in the metro area. Tourism,Hospitality,&Recreation The DACA-eligible population with a bachelor's 22.3% degree or above tend to concentrate in these Retail Trade industries in the metro area: 1. Q Educational Services. .. . ... . ... .17.9% Construction Finance and Insurance.. . ... . ... .13.0% 13.8% Professional Services'. .. ... . ... .10.4% Administrative Support 6.9 Healthcare&Social Assistance ® 6.8 Other industries 58.7 8 141 New Americans in Dallas REFUGEES Share of immigrants in Dallas who were likely refugees in 201615 This constituted 16,609 refugees. Share of refugees in Dallas who were naturalized citizens in 2016. The median household income of Refugees in Dallas tend to concentrate in the refugees in the city was these industries in the city: $39,000 O Retail.. . . . . .. . . . . . . . . . . . .. . . . . .21.6% in 2016. Manufacturing. . . . . . . . . . . .. . . . . .18.9% Healthcare. .. . . . . . . . . . . . .. . . . . .16.4% Transportation. . . . . . . . . . .. . . . . .10.4% Share of refugees in Professional Services1. . . . .. . . . . . 9.6% 161% ......... Dallas with a bachelor's degree or higher,2016 Other . industries 23.1% Share of refugees in 5.5% """"' Dallas with an advanced degree,2016 REFUGEE WORKERS 9 421 New Americans in Dallas ENDNOTES 1 Unless otherwise specified,data comes from 1-year samples of the American Community Survey from 2011 and 2016 and figures refer to the City of Dallas. 2 U.S.Congressional Budget Office.2016."The Distribution of Household Income and Federal Taxes,2013." 3 Institute on Taxation and Economic Policy.2015."Who Pays?A Distributional Analysis of the Tax Systems in All Fifty States." 4 Estimates are based on federal tax rates from the U.S.Congressional Budget Office,and state and local tax rates from the Institute on Taxation and Economic Policy. 5 General services include personal services(e.g.laundry services,barber shops,and repair and maintenance),religious organizations, social services,and labor unions. 6 Professional services:Most of these industries include professions that require a degree or a license,such as legal services, accounting,scientific research,consulting services,etc. 7 Vigdor,Jacob.2013."Immigration and the Revival of American Cities:From Preserving Manufacturing Jobs to Strengthening the Housing Market."New American Economy.This report found that every 1,000 immigrants living in a county in 2010 created or preserved 46 manufacturing jobs there.We apply that multiplier to the size of the foreign-born population in Dallas in 2016 to produce our estimates.Jobs in the manufacturing sector are defined by the North American Industry Classification System,which includes a wide range of industries such as food,machinery and electronic manufacturing. 8 General services include personal services(e.g.laundry services,barber shops,and repair and maintenance),religious organizations, social services,and labor unions. 9 Professional services:Most of these industries include professions that require a degree or a license,such as legal services, accounting,scientific research,consulting services,etc. 10 2012 Survey of Business Owners,U.S.Census Bureau 11 Data on total student enrollment in the county is derived from the Integrated Postsecondary Education Data System maintained by the National Center for Education Statistics.Temporary residents refer to people who are not U.S.citizens or permanent residents. Schools counted in the City of Dallas analysis include the Art Institute of Dallas;Dallas Baptist University;Dallas Christian College; Dallas Community College District,El Centro College;Dallas Community College District,Mountain View College;Dallas Community College District,Richland College;Dallas Theological Seminary;Parker University,College of Chiropractic;Paul Quinn College; Southern Methodist University;The University of Texas Southwestern Medical Center;and Wade College. 12 Economic data is derived from the International Student Economic Value Tool maintained by NAFSA,the association of international educators. 13 2015 Current Population Survey,U.S.Census Bureau 14 Professional services:Most of these industries include professions that require a degree or a license,such as legal services, accounting,scientific research,consulting services,etc. 15 New American Economy.2017."From Struggle to Resilience:The Economic Impact of Refugees in America." 16 Professional services:Most of these industries include professions that require a degree or a license,such as legal services, accounting,scientific research,consulting services,etc. 143 Air ,' ' ,' .` i• �, Zia ir is wilp WO Oil 0. .� :� •(, - A fit • ) .�.', .R ��' e•' Y,`. Ak ` • lot- For, /•_ ��•. � ��-�� Y,i;' , cif' _� �• � -� \ � � 'I� � dw • �� , i � . W. A - s Date: December 21,2018 Report No. 2018-193 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Surveillance Rating for Series 2017 Utility System Revenue Bonds by Fitch Ratings. BACKGROUND: Over the past few weeks, staff has collaborated with Fitch Ratings on a surveillance rating of the City's Series 2017 Utility System Revenue Bonds. This specific series of revenue bonds are the only outstanding revenue bonds that the City currently has on its books and were issued on January 19, 2017 to fund the Denton Energy Center. As of December 21, 2018,the City has $330,704,750 in outstanding principal and interest remaining with final maturity being December 1,2037. Fitch has affirmed (maintained) the same "A+" rating with Stable Outlook from the initial offering (Attachment 1). DISCUSSION Fitch Ratings, as do other rating agencies, routinely conduct surveillance ratings on outstanding bonds they rate in conjunction with an initial offering. Formal surveillance ratings, like this one, take place every few years and result in a public release on the status of the rating. While the interest the City pays on outstanding bonds will not be impacted by the surveillance rating,it could have an impact on the trading of those bonds in the secondary market. Additionally, a changed rating could also impact the City if new bonds, of similar type, are issued in the future. There are currently no plans to issue additional revenue bonds since any debt issued for the City's utilities (Electric, Water and Wastewater) have been issued as Certificates of Obligation (COs). This has been the City's practice since 2010 in order to take advantage of interest savings from the COs higher rating of AA+(Fitch and Standard&Poor's). For your information, staff has also attached the Informal Staff Report (ISR) dated January 20, 2017 (Attachment 2) that includes details regarding the initial offering of the Series 2017 Utility System Revenue Bonds. The ISR includes the initial ratings reports from both Fitch and Standard &Poor's. Please do not hesitate to contact me if you have any questions. ATTACHMENTS 1. Fitch Surveillance Ratings Report 2. Informal Staff Report dated January 20, 2017 STAFF CONTACT: Antonio Puente, Jr., Chief Financial Officer (940)-349-7283 Antonio.Puente(a,cityofdenton.com FITCH AFFIRMS DENTON, TX'S UTILITY SYSTEM REV BONDS AT 'A+'; OUTLOOK STABLE Fitch Ratings-Austin-19 December 2018: Fitch Ratings has affirmed the 'A+'rating on the following obligation issued by the City of Denton on behalf of its combined utility system: --$214,890,000 utility system revenue bonds series 2017. The Rating Outlook is Stable. SECURITY The bonds are payable from the net revenues of the combined utility system, including the water, wastewater, and electric light and power systems. KEY RATING DRIVERS COMBINED UTILITY SYSTEM: The city of Denton owns and operates a combined utility system,providing retail electric, water, and wastewater services to the city and surrounding areas. The service area is characterized by manageable population growth, low unemployment rates, and income levels modestly below the state average. TRANSITIONING POWER SUPPLY: The electric system is undertaking a transition from its historical reliance on coal and market purchases to 100% renewable energy by the end of fiscal 2020, supported by the construction and operation of the 225 MW natural-gas fired Denton Energy Center(DEC). The increased operational risk is mitigated by reduced exposure to market pricing and volatility. ELEVATED DEBT LEVELS: All in debt levels are elevated for the rating with net adjusted debt-to-adjusted FADS at 7.2x in fiscal 2018 (unaudited), improved from 10.2x in fiscal 2017. The improvement reflects profitability growth and a relatively rapid amortization period for the system's revenue bonds. STRONG LIQUIDITY METRICS: Liquidity levels are healthy with approximately 382 days cash on hand at the end of fiscal 2017, and should remain healthy, offsetting to some degree the combined system's elevated debt burden. DEMONSTRATED RATE FLEXIBILITY: The diversity of revenue from essential electric, water, and wastewater services is a credit strength, although the electric system is the largest contributor to overall financial performance. Utility rates can be modified at the discretion of the city council, which has regularly increased rates over the past several years. RATING SENSITIVITIES REDUCTION IN LEVERAGE: The current rating reflects Fitch's expectation that the city of Denton, Texas'utility system will increase funds available for debt service and reduce overall leverage as projected through consistent rate increases,higher electric sales and improved operating margins. Failure to achieve the projected reduction in leverage would likely pressure the rating. CREDIT PROFILE The city of Denton, Texas is located approximately 35 miles north of the cities of Dallas and Fort Worth and serves as a quickly growing suburb to the greater metropolitan area. Denton provides electric, water, and wastewater services through city-owned utilities. The electric system is the largest of the combined utilities and accounts for the majority of the revenues, followed by the water and wastewater systems. TRANSITIONING POWER SUPPLY Denton's electric system is undergoing a significant change in its power supply and operational profile. The system has historically relied on market purchases and its share of Gibbons Creek Steam Electric Station, a coal-fired power plant owned by the Texas Municipal Power Agency (TMPA), to provide the bulk of the system's power supply. However, the city approved a resolution on Feb. 6, 2018, to adopt its "Renewable Resource Plan" to meet the future needs of its electric customers with 100%renewable energy as early as 2020 and rescinding Resolution No. R2016-014 (Renewable Denton Plan). City projections indicate that renewable resources will be in place to provide customer needs by the end of fiscal 2020, supported by the Denton Energy Center (DEC), a directly owned and newly built 225 MW natural-gas fired peaking plant. Fitch believes there are some additional operational risks with the transition, as the system has historically not owned or operated generation resources. However, these risks are offset to some degree by the contracting of renewable energy resources at generally fixed rates for the bulk of the system's power supply, decreasing the system's exposure to potentially volatile market pricing. FINANCIAL PERFORMANCE The financial performance of the combined utility system is largely driven by the electric system, which accounted for an average of 44% of the combined system's net revenues available from fiscal 2012 - 2017. The water system and the wastewater system contributed approximately 34% and 22%, respectively. The financial metrics of the combined utility system are relatively weak but adequate for the rating. Fiscal 2017 debt service coverage and coverage of full obligations was 1.65x and 1.13x, respectively. Preliminary and unaudited financial reports for fiscal 2018 reflect Fitch-calculated coverage metrics of approximately 1.64x and 1.21, respectively. Liquidity levels for the combined utility system are healthy with approximately $172 million in unrestricted cash and investments, or 382 days cash on hand, at the end of fiscal 2017. These reflect an increase from fiscal 2016 due in part to the release of certain bond funds following recent refundings. A portion of the increased reserves are expected to be spent for capital projects in fiscal 2019 through 2022. Fitch expects Denton's financial performance to benefit from the cessation of TMPA obligations, which ran through fiscal 2018. The decrease in operating expenses is projected to contribute to margins, coverage and liquidity over the next five years. ELEVATED DEBT PROFILE The senior lien revenue bonds comprise approximately 25% of the combined utility system's total outstanding debt in 2017. The majority of the system's debt is in the form of General Obligation (GO)bonds and Certificates of Obligation(CO)that are issued and secured by the general government,but actually paid from the underlying utility systems. All of the outstanding debt is fixed rate. Fitch's coverage and debt calculations include the GO and CO bonds and the respective debt service paid by the utility systems. The combined utility system's debt metrics are elevated, at 10.2x net adjusted debt-to-adjusted FADS in fiscal 2017, improving to 7.2x in fiscal 2018 (unaudited). This rating incorporates the combined utility system's plans for around $364 million in additional debt over the next five years. The relatively high debt load reflects the systems' significant investment in generation, transmission, water and wastewater system needs. The relatively quick repayment period, including the 20 year amortization rate on the revenue bonds, together with improved operating earnings are expected to reduce the elevated net adjusted debt-to-adjusted FADS ratio over the next five years and to restore future debt capacity, if needed. Contact: Primary Analyst Rebecca Meyer Director +1-512-215-3733 Fitch Ratings, Inc. I I I Congress Ave., Suite 2010 Austin, TX 78701 Secondary Analyst Matthew Reilly, CFA Director +1-415-732-7572 Tertiary Analyst Tim Morilla Associate Director +1-512-813-5702 Committee Chairperson Dennis Pidherny Managing Director +1-212-908-0738 Media Relations: Sandro Scenga,New York, Tel: +1 212 908 0278, Email: sandro.scenga@thefitchgroup.com. 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Date: January 20,2017 Report No. 2017-007 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: City's sale of Utility System Revenue Bonds, Series 2017 BACKGROUND: The purpose of this report is to provide the City Council with details regarding the sale of the Utility System Revenue Bonds, Series 2017 (hereafter, the "Bonds") authorized on June 21, 2016 (Ordinance No. 2016-187). The Bonds were authorized for a maximum principal amount of $265 million for the purpose of constructing the Denton Energy Center, a quick start peak power generation facility. The Bonds are secured and payable only from revenues of the City's Utility System, which is comprised by the Electric, Water and Wastewater Funds. DISCUSSION: On January 19, 2017, the City along with their financial advisor, First Southwest Company, conducted a negotiated sale of the Bonds. The underwriting firms were: JP Morgan Securities LLC, Citigroup Global Markets Inc., and Robert W. Baird & Co. Inc. The delivery date of proceeds will be January 27, 2017. As approved by the City Council on June 21, 2016, the Bonds were authorized to be issued provided they met the following parameters: 1. The maximum principal amount of bonds shall not exceed $265,000,000; 2. The final stated maturity shall not 20 years from the date of issuance; 3. The Bonds shall bear interest at a fixed rate, and the net effective interest rate on the Bonds shall not exceed 4.000%; 4. The sale must occur on or prior to June 21, 2017; 5. The Bonds shall be rated by a Rating Agency for municipal securities in one of the four highest categories for long-term obligations. Staff is pleased to inform the Council that the above criteria were met. The amount of bond proceeds was $247,157,116 at an all-in true interest cost of 3.53%. In addition, these bonds have been rated as AA- by Standard and Poor's and A+ by Fitch. Staff would note that these ratings are similar to ratings previously issued by Standard and Poor's of AA- and Moodys of Al for the City's Utility System Revenue Bonds. Date: January 20,2017 Report No. 2017-007 As a reconciliation of amounts originally estimated and communicated to the Council on June 14, 2016, the table below reflects a side-by-side comparison to final sale proceeds: Use Category Estimated Proceeds Actual Proceeds Project Cost $240,000,000 $225,000,000 Capitalized Interest $ 23,000,000 $ 20,598,306 Issuance Costs $ 2,000,000 $ 1,558,810 Grand Total $265,000,000 $247,157,116 Attached are the final debt schedules and ratings reports. Please do not hesitate to contact me if you have any further questions on the results of the City's most recent bond sale. ATTACHMENTS: 1. Final Debt Schedule 2. Fitch Rating Report 3. Standard&Poor's Rating Report STAFF CONTACT: Chuck Springer, Director of Finance (940)-349-8260 Charles.Springer a�cityofdenton.com FirstSouthwvest iO SOURCES AND USES OF FUNDS City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Dated Date 01/27/2017 Delivery Date 01/27/2017 Sources: Bond Proceeds: Par Amount 214,890,000.00 Premium 32,267,116.00 247,157,116.00 Uses: Project Fund Deposits: Project Fund 225,000,000.00 Other Fund Deposits: Capitalized Interest Fund 20,598,305.56 Delivery Date Expenses: Cost of Issuance 565,992.47 Underwriter's Discount 992,817.97 1,558,810.44 247,157,116.00 Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 1 FirstSouthwest iO BOND SUMMARY STATISTICS City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-1 Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Dated Date 01/27/2017 Delivery Date 01/27/2017 First Coupon 06/01/2017 Last Maturity 12/01/2036 Arbitrage Yield 2.996065% True Interest Cost(TIC) 3.503576% Net Interest Cost(NIC) 3.831282% All-In TIC 3.527917% Average Coupon 4.980660% Average Life(years) 12.662 Weighted Average Maturity(years) 12.641 Duration of Issue(years) 9.627 Par Amount 214,890,000.00 Bond Proceeds 247,157,116.00 Totallnterest 135,522,638.89 Net Interest 104,248,340.86 Bond Years from Dated Date 2,720,977,666.67 Bond Years from Delivery Date 2,720,977,666.67 Total Debt Service 350,412,638.89 Maximum Annual Debt Service 18,077,750.00 Average Annual Debt Service 17,657,971.72 Underwriter's Fees(per$1000) Average Takedown 3.864477 Other Fee 0.755645 Total Underwriter's Discount 4.620122 Bid Price 114.553631 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bond 214,890,000.00 115.016 4.981% 12.662 177,080.95 214,890,000.00 12.662 177,080.95 All-In Arbitrage TIC TIC Yield Par Value 214,890,000.00 214,890,000.00 214,890,000.00 +Accrued Interest +Premium(Discount) 32,267,116.00 32,267,116.00 32,267,116.00 Underwriter's Discount -992,817.97 -992,817.97 Cost of Issuance Expense -565,992.47 Other Amounts Target Value 246,164,298.03 245,598,305.56 247,157,116.00 Target Date 01/27/2017 01/27/2017 01/27/2017 Yield 3.503576% 3.527917% 2.996065% Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 2 FirstSouthwest 4* A....im�d nJlegi L.uni.-. BOND SUMMARY STATISTICS City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call *** *** Final Numbers*** Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 3 FirstSouthwest iO NET DEBT SERVICE City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Period Total Capitalized Net Ending Principal Coupon Interest Debt Service Interest Fund Debt Service 09/30/2017 3,680,388.89 3,680,388.89 3,680,388.89 09/30/2018 10,685,000.00 10,685,000.00 10,685,000.00 09/30/2019 10,685,000.00 10,685,000.00 6,232,916.67 4,452,083.33 09/30/2020 7,580,000 5.000% 10,495,500.00 18,075,500.00 18,075,500.00 09/30/2021 7,970,000 5.000% 10,106,750.00 18,076,750.00 18,076,750.00 09/30/2022 8,375,000 5.000% 9,698,125.00 18,073,125.00 18,073,125.00 09/30/2023 8,805,000 5.000% 9,268,625.00 18,073,625.00 18,073,625.00 09/30/2024 9,260,000 5.000% 8,817,000.00 18,077,000.00 18,077,000.00 09/30/2025 9,735,000 5.000% 8,342,125.00 18,077,125.00 18,077,125.00 09/30/2026 10,200,000 ** % 7,873,500.00 18,073,500.00 18,073,500.00 09/30/2027 10,695,000 5.000% 7,380,875.00 18,075,875.00 18,075,875.00 09/30/2028 11,245,000 5.000% 6,832,375.00 18,077,375.00 18,077,375.00 09/30/2029 11,820,000 5.000% 6,255,750.00 18,075,750.00 18,075,750.00 09/30/2030 12,425,000 5.000% 5,649,625.00 18,074,625.00 18,074,625.00 09/30/2031 13,065,000 5.000% 5,012,375.00 18,077,375.00 18,077,375.00 09/30/2032 13,735,000 5.000% 4,342,375.00 18,077,375.00 18,077,375.00 09/30/2033 14,435,000 5.000% 3,638,125.00 18,073,125.00 18,073,125.00 09/30/2034 15,180,000 5.000% 2,897,750.00 18,077,750.00 18,077,750.00 09/30/2035 15,955,000 5.000% 2,119,375.00 18,074,375.00 18,074,375.00 09/30/2036 16,775,000 5.000% 1,301,125.00 18,076,125.00 18,076,125.00 09/30/2037 17,635,000 5.000% 440,875.00 18,075,875.00 18,075,875.00 214,890,000 135,522,638.89 350,412,638.89 20,598,305.56 329,814,333.33 Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 4 FirstSouthwest iO NET DEBT SERVICE City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-1 Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Total Capitalized Net Annual Date Principal Coupon Interest Debt Service Interest Fund Debt Service Net D/S 06/01/2017 3,680,388.89 3,680,388.89 3,680,388.89 09/30/2017 12/01/2017 5,342,500.00 5,342,500.00 5,342,500.00 06/01/2018 5,342,500.00 5,342,500.00 5,342,500.00 09/30/2018 12/01/2018 5,342,500.00 5,342,500.00 5,342,500.00 06/01/2019 5,342,500.00 5,342,500.00 890,416.67 4,452,083.33 09/30/2019 4,452,083.33 12/01/2019 7,580,000 5.000% 5,342,500.00 12,922,500.00 12,922,500.00 06/01/2020 5,153,000.00 5,153,000.00 5,153,000.00 09/30/2020 18,075,500.00 12/01/2020 7,970,000 5.000% 5,153,000.00 13,123,000.00 13,123,000.00 06/01/2021 4,953,750.00 4,953,750.00 4,953,750.00 09/30/2021 18,076,750.00 12/01/2021 8,375,000 5.000% 4,953,750.00 13,328,750.00 13,328,750.00 06/01/2022 4,744,375.00 4,744,375.00 4,744,375.00 09/30/2022 18,073,125.00 12/01/2022 8,805,000 5.000% 4,744,375.00 13,549,375.00 13,549,375.00 06/01/2023 4,524,250.00 4,524,250.00 4,524,250.00 09/30/2023 18,073,625.00 12/01/2023 9,260,000 5.000% 4,524,250.00 13,784,250.00 13,784,250.00 06/01/2024 4,292,750.00 4,292,750.00 4,292,750.00 09/30/2024 18,077,000.00 12/01/2024 9,735,000 5.000% 4,292,750.00 14,027,750.00 14,027,750.00 06/01/2025 4,049,375.00 4,049,375.00 4,049,375.00 09/30/2025 18,077,125.00 12/01/2025 10,200,000 ** % 4,049,375.00 14,249,375.00 14,249,375.00 06/01/2026 3,824,125.00 3,824,125.00 3,824,125.00 09/30/2026 18,073,500.00 12/01/2026 10,695,000 5.000% 3,824,125.00 14,519,125.00 14,519,125.00 06/01/2027 3,556,750.00 3,556,750.00 3,556,750.00 09/30/2027 18,075,875.00 12/01/2027 11,245,000 5.000% 3,556,750.00 14,801,750.00 14,801,750.00 06/01/2028 3,275,625.00 3,275,625.00 3,275,625.00 09/30/2028 18,077,375.00 12/01/2028 11,820,000 5.000% 3,275,625.00 15,095,625.00 15,095,625.00 06/01/2029 2,980,125.00 2,980,125.00 2,980,125.00 09/30/2029 18,075,750.00 12/01/2029 12,425,000 5.000% 2,980,125.00 15,405,125.00 15,405,125.00 06/01/2030 2,669,500.00 2,669,500.00 2,669,500.00 09/30/2030 18,074,625.00 12/01/2030 13,065,000 5.000% 2,669,500.00 15,734,500.00 15,734,500.00 06/01/2031 2,342,875.00 2,342,875.00 2,342,875.00 09/30/2031 18,077,375.00 12/01/2031 13,735,000 5.000% 2,342,875.00 16,077,875.00 16,077,875.00 06/01/2032 1,999,500.00 1,999,500.00 1,999,500.00 09/30/2032 18,077,375.00 12/01/2032 14,435,000 5.000% 1,999,500.00 16,434,500.00 16,434,500.00 06/01/2033 1,638,625.00 1,638,625.00 1,638,625.00 09/30/2033 18,073,125.00 12/01/2033 15,180,000 5.000% 1,638,625.00 16,818,625.00 16,818,625.00 06/01/2034 1,259,125.00 1,259,125.00 1,259,125.00 09/30/2034 18,077,750.00 12/01/2034 15,955,000 5.000% 1,259,125.00 17,214,125.00 17,214,125.00 06/01/2035 860,250.00 860,250.00 860,250.00 Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 5 FirstSouthwest iO NET DEBT SERVICE City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-1 Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Total Capitalized Net Annual Date Principal Coupon Interest Debt Service Interest Fund Debt Service Net D/S 09/30/2035 18,074,375.00 12/01/2035 16,775,000 5.000% 860,250.00 17,635,250.00 17,635,250.00 06/01/2036 440,875.00 440,875.00 440,875.00 09/30/2036 18,076,125.00 12/01/2036 17,635,000 5.000% 440,875.00 18,075,875.00 18,075,875.00 09/30/2037 18,075,875.00 214,890,000 135,522,638.89 350,412,638.89 20,598,305.56 329,814,333.33 329,814,333.33 Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 6 FirstSouthwest iO BOND PRICING City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call *** *** Final Numbers*** Maturity Yield to Call Call Premium Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) Principal Cost Takedown Serial Bond: 12/01/2019 7,580,000 5.000% 1.480% 109.767 740,338.60 8,320,338.60 2.500 12/01/2020 7,970,000 5.000% 1.680% 112.307 980,867.90 8,950,867.90 2.500 12/01/2021 8,375,000 5.000% 1.880% 114.379 1,204,241.25 9,579,241.25 2.500 12/01/2022 8,805,000 5.000% 2.090% 115.928 1,402,460.40 10,207,460.40 2.500 12/01/2023 9,260,000 5.000% 2.270% 117.212 1,593,831.20 10,853,831.20 3.750 12/01/2024 9,735,000 5.000% 2.450% 118.094 1,761,450.90 11,496,450.90 3.750 12/01/2025 3,400,000 3.250% 2.630% 104.861 165,274.00 3,565,274.00 3.750 12/01/2025 6,800,000 5.000% 2.630% 118.590 1,264,120.00 8,064,120.00 3.750 12/01/2026 10,695,000 5.000% 2.760% 119.190 2,052,370.50 12,747,370.50 3.750 12/01/2027 11,245,000 5.000% 2.860% 118.244 C 3.015% 12/01/2026 100.000 2,051,537.80 13,296,537.80 3.750 12/01/2028 11,820,000 5.000% 2.970% 117.214 C 3.238% 12/01/2026 100.000 2,034,694.80 13,854,694.80 4.250 12/01/2029 12,425,000 5.000% 3.080% 116.194 C 3.430% 12/01/2026 100.000 2,012,104.50 14,437,104.50 4.250 12/01/2030 13,065,000 5.000% 3.130% 115.734 C 3.551% 12/01/2026 100.000 2,055,647.10 15,120,647.10 4.250 12/01/2031 13,735,000 5.000% 3.190% 115.184 C 3.664% 12/01/2026 100.000 2,085,522.40 15,820,522.40 4.250 12/01/2032 14,435,000 5.000% 3.250% 114.638 C 3.765% 12/01/2026 100.000 2,112,995.30 16,547,995.30 4.250 12/01/2033 15,180,000 5.000% 3.310% 114.095 C 3.854% 12/01/2026 100.000 2,139,621.00 17,319,621.00 4.250 12/01/2034 15,955,000 5.000% 3.370% 113.555 C 3.935% 12/01/2026 100.000 2,162,700.25 18,117,700.25 4.250 12/01/2035 16,775,000 5.000% 3.420% 113.107 C 4.002% 12/01/2026 100.000 2,198,699.25 18,973,699.25 4.250 12/01/2036 17,635,000 5.000% 3.460% 112.751 C 4.058% 12/01/2026 100.000 2,248,638.85 19,883,638.85 4.250 214,890,000 32,267,116.00 247,157,116.00 Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 7 FirstSouthwest 4* A...... �d nJlegi L.uni.-. BOND PRICING City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call *** *** Final Numbers *** Dated Date 01/27/2017 Delivery Date 01/27/2017 First Coupon 06/01/2017 Par Amount 214,890,000.00 Premium 32,267,116.00 Production 247,157,116.00 115.015643% Underwriter's Discount -992,817.97 -0.462012% Purchase Price 246,164,298.03 114.553631% Accrued Interest Net Proceeds 246,164,298.03 Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 8 FirstSouthwest iO AVERAGE TAKEDOWN City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Dated Date 01/27/2017 Delivery Date 01/27/2017 Maturity Par Takedown Takedown Bond Component Date Amount $/Bond Amount Serial Bond: 12/01/2019 7,580,000 2.5000 18,950.00 12/01/2020 7,970,000 2.5000 19,925.00 12/01/2021 8,375,000 2.5000 20,937.50 12/01/2022 8,805,000 2.5000 22,012.50 12/01/2023 9,260,000 3.7500 34,725.00 12/01/2024 9,735,000 3.7500 36,506.25 12/01/2025 3,400,000 3.7500 12,750.00 12/01/2025 6,800,000 3.7500 25,500.00 12/01/2026 10,695,000 3.7500 40,106.25 12/01/2027 11,245,000 3.7500 42,168.75 12/01/2028 11,820,000 4.2500 50,235.00 12/01/2029 12,425,000 4.2500 52,806.25 12/01/2030 13,065,000 4.2500 55,526.25 12/01/2031 13,735,000 4.2500 58,373.75 12/01/2032 14,435,000 4.2500 61,348.75 12/01/2033 15,180,000 4.2500 64,515.00 12/01/2034 15,955,000 4.2500 67,808.75 12/01/2035 16,775,000 4.2500 71,293.75 12/01/2036 17,635,000 4.2500 74,948.75 214,890,000 3.8645 830,437.50 Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 9 FirstSouthwest 4* A...... �d nJlegi L.uni.-. UNDERWRITER'S DISCOUNT City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call *** *** Final Numbers*** Underwriter's Discount $/1000 Amount Average Takedown 3.86448 830,437.50 Underwriters'Counsel 0.40000 85,956.00 Management Fee 0.25000 53,722.50 CUSIP 0.00398 855.50 DALCOMP(Bookrunner&Wire Fees) 0.06930 14,892.36 Day Loan 0.02864 6,154.11 DTC 0.00372 800.00 4.62012 992,817.97 Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 10 FirstSouthwest 4* A...... �d nJlegi L.uni.-. COST OF ISSUANCE City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call *** *** Final Numbers*** Cost of Issuance $/1000 Amount Financial Advisor Fee 0.89542 192,417.50 Bond Counsel Fee 0.94188 202,401.00 Paying Agent Acceptance Fee 0.00163 350.00 Offical Statement Printing&Distribution 0.02792 6,000.00 Fitch Rating Fee 0.39555 85,000.00 S&P Rating Fee 0.31900 68,550.00 Attorney General Fee 0.04421 9,500.00 Other 0.00826 1,773.97 2.63387 565,992.47 Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 11 FirstSouthwest iO FORM 8038 STATISTICS City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Dated Date 01/27/2017 Delivery Date 01/27/2017 Redemption Bond Component Date Principal Coupon Price Issue Price at Maturity Serial Bond: 12/01/2019 7,580,000.00 5.000% 109.767 8,320,338.60 7,580,000.00 12/01/2020 7,970,000.00 5.000% 112.307 8,950,867.90 7,970,000.00 12/01/2021 8,375,000.00 5.000% 114.379 9,579,241.25 8,375,000.00 12/01/2022 8,805,000.00 5.000% 115.928 10,207,460.40 8,805,000.00 12/01/2023 9,260,000.00 5.000% 117.212 10,853,831.20 9,260,000.00 12/01/2024 9,735,000.00 5.000% 118.094 11,496,450.90 9,735,000.00 12/01/2025 3,400,000.00 3.250% 104.861 3,565,274.00 3,400,000.00 12/01/2025 6,800,000.00 5.000% 118.590 8,064,120.00 6,800,000.00 12/01/2026 10,695,000.00 5.000% 119.190 12,747,370.50 10,695,000.00 12/01/2027 11,245,000.00 5.000% 118.244 13,296,537.80 11,245,000.00 12/01/2028 11,820,000.00 5.000% 117.214 13,854,694.80 11,820,000.00 12/01/2029 12,425,000.00 5.000% 116.194 14,437,104.50 12,425,000.00 12/01/2030 13,065,000.00 5.000% 115.734 15,120,647.10 13,065,000.00 12/01/2031 13,735,000.00 5.000% 115.184 15,820,522.40 13,735,000.00 12/01/2032 14,435,000.00 5.000% 114.638 16,547,995.30 14,435,000.00 12/01/2033 15,180,000.00 5.000% 114.095 17,319,621.00 15,180,000.00 12/01/2034 15,955,000.00 5.000% 113.555 18,117,700.25 15,955,000.00 12/01/2035 16,775,000.00 5.000% 113.107 18,973,699.25 16,775,000.00 12/01/2036 17,635,000.00 5.000% 112.751 19,883,638.85 17,635,000.00 214,890,000.00 247,157,116.00 214,890,000.00 Stated Weighted Maturity Interest Issue Redemption Average Date Rate Price at Maturity Maturity Yield Final Maturity 12/01/2036 5.000% 19,883,638.85 17,635,000.00 Entire Issue 247,157,116.00 214,890,000.00 12.6407 2.9961% Proceeds used for accrued interest 0.00 Proceeds used for bond issuance costs(including underwriters'discount) 1,558,810.44 Proceeds used for credit enhancement 0.00 Proceeds allocated to reasonably required reserve or replacement fund 0.00 Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 12 FirstSouthwest iO PROOF OF ARBITRAGE YIELD City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Present Value to 01/27/2017 Date Debt Service @ 2.9960649979% 06/01/2017 3,680,388.89 3,642,882.18 12/01/2017 5,342,500.00 5,210,007.18 06/01/2018 5,342,500.00 5,133,111.50 12/01/2018 5,342,500.00 5,057,350.75 06/01/2019 5,342,500.00 4,982,708.16 12/01/2019 12,922,500.00 11,874,349.77 06/01/2020 5,153,000.00 4,665,152.18 12/01/2020 13,123,000.00 11,705,263.04 06/01/2021 4,953,750.00 4,353,359.28 12/01/2021 13,328,750.00 11,540,436.18 06/01/2022 4,744,375.00 4,047,195.53 12/01/2022 13,549,375.00 11,387,720.96 06/01/2023 4,524,250.00 3,746,334.27 12/01/2023 13,784,250.00 11,245,672.92 06/01/2024 4,292,750.00 3,450,486.08 12/01/2024 14,027,750.00 11,109,002.81 06/01/2025 4,049,375.00 3,159,493.26 12/01/2025 14,249,375.00 10,953,871.15 06/01/2026 3,824,125.00 2,896,318.16 12/01/2026 156,789,125.00 116,996,400.64 308,366,138.89 247,157,116.00 Proceeds Summary Delivery date 01/27/2017 Par Value 214,890,000.00 Premium(Discount) 32,267,116.00 Target for yield calculation 247,157,116.00 Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 13 FirstSouthwest iO PROOF OF ARBITRAGE YIELD City of Denton,Texas $214,890,000 Utility System Revenue Bonds,Series 2017 (Electric Supported:$225 mm) Tax-Exempt Rates As of 01/19/2017(AA-/Al) ***Amortized over 20 Years/Cap-I Until Dec.31,2018/10 Year Call*** *** Final Numbers*** Assumed Call/Computation Dates for Premium Bonds Bond Maturity Call Call Yield To Component Date Rate Yield Date Price Call/Maturity SERIAL 12/01/2027 5.000% 2.860% 12/01/2026 100.000 2.8608749% SERIAL 12/01/2028 5.000% 2.970% 12/01/2026 100.000 2.9708499% SERIAL 12/01/2029 5.000% 3.080% 12/01/2026 100.000 3.0808988% SERIAL 12/01/2030 5.000% 3.130% 12/01/2026 100.000 3.1309065% SERIAL 12/01/2031 5.000% 3.190% 12/01/2026 100.000 3.1910106% SERIAL 12/01/2032 5.000% 3.250% 12/01/2026 100.000 3.2510176% SERIAL 12/01/2033 5.000% 3.310% 12/01/2026 100.000 3.3110346% SERIAL 12/01/2034 5.000% 3.370% 12/01/2026 100.000 3.3710595% SERIAL 12/01/2035 5.000% 3.420% 12/01/2026 100.000 3.4211176% SERIAL 12/01/2036 5.000% 3.460% 12/01/2026 100.000 3.4610653% Rejected Call/Computation Dates for Premium Bonds Bond Maturity Call Call Yield To Increase Component Date Rate Yield Date Price Call/Maturity to Yield SERIAL 12/01/2027 5.000% 2.860% 3.0155152% 0.1546404% SERIAL 12/01/2028 5.000% 2.970% 3.2389444% 0.2680945% SERIAL 12/01/2029 5.000% 3.080% 3.4309080% 0.3500092% SERIAL 12/01/2030 5.000% 3.130% 3.5518488% 0.4209423% SERIAL 12/01/2031 5.000% 3.190% 3.6650704% 0.4740598% SERIAL 12/01/2032 5.000% 3.250% 3.7653164% 0.5142988% SERIAL 12/01/2033 5.000% 3.310% 3.8549928% 0.5439583% SERIAL 12/01/2034 5.000% 3.370% 3.9359030% 0.5648436% SERIAL 12/01/2035 5.000% 3.420% 4.0032138% 0.5820963% SERIAL 12/01/2036 5.000% 3.460% 4.0585666% 0.5975013% Note: Final Jan 19,2017 1:27 pm Prepared by FirstSouthwest(aml) (Finance 7.017 DENTON:2017_ELC-2017_REV) Page 14 J FitchRatings - - Denton, Texas Utility System Revenue Bonds New Issue Report Ratings New Issue Details New Issue Sale Information: $224,050,000 Utility System Revenue Bonds, Series 2017. $224,050,000 Utility System Revenue Bonds,Series 2017 A+ Security: Payable from the net revenues of the combined utility system, including the water, wastewater and electric light and power systems. Rating Outlook Stable Purpose: Bond proceeds will be used to finance the development of new peak power generation facilities,fund capitalized interest and pay the costs of issuance. Final Maturity: Dec. 1, 2036. Key Utility Statistics Fiscal Year Ended 9/30/15 Key Rating Drivers System Type Combined Utility Combined Utility System: The city of Denton, TX owns and operates a combined utility NERC Region ERCOT Annual Revenues($Mil.) 229.6 system, providing retail electric, water and wastewater services to the city and surrounding Debt Service Coverage(x) 1.65 areas. The service area is characterized by manageable population growth, low unemployment Days Operating Cash 275 Equity/Capitalization(°i°) 50.7 rates and income levels modestly below the state average. Transitioning Power Supply: The electric system is transitioning toward a greater reliance on renewable energy and away from coal and market purchased energy. The strategy will be supported by the construction and operation of the 220-MW natural gas-fired Denton Energy Center (DEC). The increased operational risk is mitigated by reduced exposure to market Related Criteria pricing and volatility. U.S. Public Power Rating Criteria (May 2015) Elevated Debt Levels: The system's projected ratio of debt to funds available for debt service Revenue-Supported Rating Criteria (June 2014) is to rise considerably to 11.3x in fiscal 2017, driven in part by planned debt issuance related to the development of the DEC. However, the rating reflects Fitch Ratings' expectation that anticipated rate increases, improvement in financial margins and the relatively rapid amortization of the revenue bonds will all contribute to reduced leverage beginning in fiscal Related Research 2019. Fitch Rates Denton, TX's Utility System Rev Bonds 'A+; outlook Stable Strong Liquidity Metrics: Liquidity levels are healthy, with approximately 275 days cash on (December2016) hand at the end of fiscal 2015, and should remain robust, offsetting to some degree the U.S. Public Power (Peer Study) (June 2016) combined system's increased debt burden. Demonstrated Rate Flexibility: The diversity of revenue from essential electric, water and wastewater services is a credit strength, although the electric system is the largest contributor to overall financial performance. Utility rates can be modified at the discretion of the city council, which has regularly increased rates over the past several years. Analysts Rating Sensitivities Matthew Reilly,2 Reduction in Leverage: The current rating reflects Fitch's expectation that the utility system +1 415 732-7572 g g p Y Y matthew.reilly@fitchratings.com will increase funds available for debt service and reduce overall leverage as projected through Rebecca Meyer consistent rate increases, higher electric sales and improved operating margins. Failure to +1 512 215-3733 rebecca.meyer@fitchratings.com achieve the projected reduction in leverage would likely pressure the rating. www.fitchratings.com January 3, 2017 FitchRatings - - Credit Profile Rating History The city of Denton is located approximately 35 miles north of the cities of Dallas and Fort Worth Outlook/ and serves as a quickly growing suburb to the greater metropolitan area. Denton provides Rating Action Watch Date electric, water and wastewater services through city-owned utilities. The electric system is the A+ Assigned Stable 12/29/16 largest of the combined utilities and accounts for the majority of the revenues, followed by the water and wastewater systems. Governance and Management Strategy The utility system is governed by the city council, consisting of six elected council members and the city's mayor. The city council receives and acts upon recommendations and advice provided by the seven-member Public Utilities Board (the board). The board serves as an advisor to the city council and is responsible for reviewing annual budgets, capital improvement plans, system rates and the issuance of debt. The city council has approved all of the board's rate recommendations to date. Strategically, the three utilities — electric, water, and wastewater — are budgeted for and operated on a self-supporting and stand-alone basis. Each of the separate utilities has board- and council-approved financial policies, including liquidity and debt service coverage targets. A brief presentation of the targets by utility is presented in the table below. Liquidity and Debt Service Coverage Targets Electric Water Wastewater Liquidity Reserve Target(Days) 60-75a 120-180 100-140 Debt Service Coverage(x) 1.25 1.25 1.25 aTexas Municipal Power Agency debt payments are not included in the city's liquidity reserve calculation. Source:Denton(TX). Texas Municipal Power Agency Denton, along with the cities of Garland, Bryan and Greenville, created the Texas Municipal Power Agency (TMPA) in 1975. Through TMPA, the cities developed the Gibbons Creek Steam Electric Station (GCSES), located in Grimes County,TX. The single-unit, coal-fired plant has a net capacity of 470 MW and burns Powder River Basin coal. TMPA owns the coal plant and provides power to its four members under identical court- validated, take-or-pay power sales contracts (PSCs)that expire in September 2018. The PSCs financially obligate the members to pay certain expenses to TMPA, including its debt service costs, regardless of actual plant operations. The four members recently approved a joint operating agreement (JOA), TMPA Participation Shares effective September 2016. The JOA city Share(%) establishes the framework for how Garland 47.0 Denton 21.3 TMPA and its assets and liabilities are Bryan 21.7 to be managed, regardless of whether Greenville 10.0 the PSCs are extended beyond Source:Denton(TX). September 2018. TMPA's assets and operations are divided into three business lines under the JOA: generation, transmission and mining. Denton, Garland and Bryan agreed to continue as TMPA members along all three business lines after Denton,Texas 2 January 3,2017 FitchRatings - - September 2018. Greenville chose to continue as a transmission and mining member, but opted not to continue as a generation member. The JOA allocates costs, ownership interests, decommissioning and remediation responsibilities to members based on their participation share. Denton's participation share is 21.3%. Customer Profile and Service Area The utilities serve an area characterized by strong employment gains, a low unemployment rate, a growing workforce and below-average income levels. The city is known for its institutions of higher education and regionally prominent medical sector. Denton is home to the University of North Texas and Texas Woman's University, with combined enrollment exceeding 48,500. The city's growing heath care facilities serve north Texas and southern Oklahoma. These institutions include Columbia Medical Center Denton, Texas Health Presbyterian Hospital and The Heart Hospital Baylor Denton. Electric System Denton's electric system serves an approximately 60-square-mile, single certified area within the city of Denton's city limits and an additional 53-square-mile area that is multiple certified outside the city's boundaries.The city has not opted in to retail competition, so its customers in the single certified area are generally unable to change electric providers. However, the system does face competition with respect to new customers who move into the multiple certified area. Approximately 5.5%of Denton's electric customers reside in the multiple-certified area. The electric system served approximately 51,085 customers in fiscal 2016. The customer base is largely residential, comprising approximately 88% of total customers. However, commercial and industrial customers drive the majority of total MWh sales, accounting for approximately 64%of total MWh sold in fiscal 2016.All system sales are retail, with no exposure to wholesale markets. Customer concentration is moderate, with the top 10 ratepayers providing approximately 18% of electric revenues and 28% of total MWh sales in fiscal 2016. The largest customer accounted for 9% of MWh sales and 4.6% of electric revenues. The diversity of the pledged revenues from the combined utility systems further mitigates concentration risks. Annual MWh sales tend to fluctuate with weather conditions, particularly in response to summertime temperatures when the system experiences its peak demand. The graph below shows the annual variation in MWh sales during 2011-2016. MWh Sales Trends—2012-2016 (MWh) i Total Retail Sales YoY Change in Retail Sales (off) 1,480,000 4.0 1,440,000 2.0 1,400,000 0.0 1,360,000 � (2.0) 1,320,000 (4.0) 2012 2013 2014 2015 2016 Source:Denton(TX),Fitch. Denton,Texas 3 January 3,2017 FitchRatings - - Water System The water system provides retail water service to a growing customer base within the city and sells raw and treated water wholesale to the Upper Trinity Regional Water District(UTRWD)for resale to two of its customer cities. Wholesale sales comprised less than 2% of total gallons sold in fiscal 2015. The water system's top 10 customers reflect relatively stable entities, including the University of North Texas, the local school district and local health centers and hospitals. In fiscal 2016, the top 10 customers comprised approximately 10%of water revenues. Wastewater System The wastewater system provides retail wastewater collection and treatment service to a growing customer base within the city and to four wholesale customers. The four wholesale customers—the cities of Corinth, Krum,Argyle and the Lake City Municipal Authority—made up less than 1%of the wastewater system average volume in fiscal 2015. Assets and Operations Electric System Denton's electric system is undergoing a significant change in its power supply and operational profile. The system has historically relied on GCSES and market purchases to provide the bulk of the system's power supply. However, under the city's Renewable Denton Plan (RDP), renewable energy is expected to increase to approximately 70% of the system's power supply, supported by the DEC, a newly built, directly owned 220-MW natural gas-fired peaking plant. Fitch views the transition as presenting some additional operational risks, as the system has historically not owned or operated generation resources. However, these risks are offset to some degree by the contracting of renewable energy resources at generally fixed rates for the bulk of the system's power supply, decreasing the system's exposure to potentially volatile market pricing. Denton,Texas 4 January 3,2017 FitchRatings - - Gibbons Creek Steam Electric Station Denton's primary source of power over the past decade has been TMPA's 470-MW GCSES. While the plant's operational availability remains sound, its competitive position has eroded over the past few years as low natural gas prices and a significant increase in wind generation in ERCOT have combined to reduce market power prices. TMPA's decision in fiscal 2016 to place GCSES in reserve shutdown for a little over a month following a scheduled outage reflected the change in market dynamics. TMPA members have authorized a potential sale of GCSES, and an Gibbons Creek Operating Statistics agreement has been reached with two PO potential buyers. The buyers are Fiscal Year Availability Capacity Factor 2015 79.9 55.3 currently completing their due 2016 84.5 38.8 diligence, with a signing of the sales Source:TMPA. agreement expected in early 2017. The purchase price under the two sales agreements is $57.5 million for GCSES. The purchaser for GCSES has also agreed to post $35 million towards an environmental escrow and a letter of credit for $25 million for environmental purposes. A related transaction to a separate buyer includes the sale of approximately 25%of TMPA's transmission assets for the price of$71.5 million. Fitch views the potential sale as a credit positive, but insufficient on its own to materially affect the current rating. Benefits from the potential transaction include the use of the proceeds to pay down a portion of TMPA's outstanding debt, reducing Denton's obligations by a modest amount. More significantly, the sale of GCSES would eliminate Denton's and other member cities' exposure to decommissioning and other environmental liabilities, allowing for potentially significant future savings. Failure to complete the sale would be unlikely to affect the current rating, as TMPA would retain the option to pursue other sales opportunities while continuing to run the plant at the reduced levels of the past few years. Renewable Denton Plan and Denton Energy Center The city's RDP calls for increasing renewables as a percentage of the city's power supply to 70% by 2019. The plan outlines the renewable resource balance as 52%from wind, 17%from solar and 1% from locally owned landfill gas. Wind and solar resources are expected to be secured under long-term power purchase agreements at generally fixed prices. Wind energy supplied approximately 10% of system needs in fiscal 2016. Negotiations for additional resources are ongoing, with the expectation that most of the needed resources will be secured under contract by the end of 2017. The RDP also calls for the development and operation of the DEC, a 220-MW natural gas-fired electric generation facility consisting of 12 separate reciprocating internal combustion engines. The DEC is designed to economically supply power to firm up intermittent wind and solar resources. In addition, the DEC will act as a physical hedge against high market prices, with the DEC utilized when cheaper than purchasing power from the market and vice versa, effectively hedging against the risk of high peak power prices. Management estimates that the DEC will supply approximately 13%of the system's power needs. The RDP projects that short-term purchased power will contribute approximately 17% of the system's energy needs. Management will continue to hedge the system's exposure to potentially volatile market prices by securing needed supply three to six months ahead of time and layering contracts. Denton,Texas 5 January 3,2017 FitchRatings - - Water System The city's water system consists of two water treatment plants, 618 miles of water mains, 14 million gallons of ground storage, and 11 million gallons of elevated storage. The system provides water to all customers within the city of Denton and to the UTRWD for resale to the cities of Sanger(population 7,601)and Krum (population 4,919). Denton's water system has sufficient water supply to meet projected needs. The city has a combined 24.62 million gallons per day(MGD)of available surface water from the Ray Roberts Reservoir and the Lewisville Reservoir, which is adequate to meet the city's retail and wholesale treated water volume of approximately 17.26 MGD (fiscal 2016). Likewise, the systems treatment capacity is viewed as adequate to meet demand. The system's two treatment plants provide 48.75 MGD of treatment and pumping capacity, providing a significant cushion relative to the maximum volume pumped to date of 37.52 MGD in 2011. Wastewater System The city's wastewater system provides retail wastewater collection and treatment to all customers within the city and to four wholesale customers. The system consists of 521 miles of gravity wastewater lines, 25 miles of force mains and 27 lift stations. The system's total permitted treatment capacity is 21 MGD, which is sufficient to meet the average demand of 16.74 MGD (2016). The four wholesale customers accounted for approximately 0.89 MGD of treatment volume in 2016. Cost and Rate Structure The city council has the authority to establish and modify rates for each of the utility systems without state or federal oversight. Regular rate increases over the past several years have demonstrated the council's willingness to increase rates as necessary. A brief history of recent base rate increases by utility is provided in the table below. Please note that the electric system rate changes based on the energy cost adjustor are not reflected in the table. Average Retail Rate Increase by Utility System (pro) Fiscal Year Electric Water Wastewater 2017E 4.5 5.0 2.0 2016 4.5 5.0 2.0 2015 4.7 3.0 6.0 2014 2.5 — 9.0 2013 9.0 E—Expected. Source:Denton(TX). Electric Rate Structure The electric system's rate structure is viewed as a credit positive, as it provides the utility with the flexibility to recapture potentially volatile energy costs in a timely manner. The structure includes a fixed charge, a volumetric charge, an Energy Cost Adjustment Factor (ECA) and a Transmission Cost Recovery Factor(TCR). The ECA is designed to capture and pass through to customers the utility's fuel and purchased power costs. The ECA is adjusted on a quarterly basis to stay within a $5 million range. The Denton,Texas 6 January 3,2017 FitchRatings - - general manager of the electric system recommends adjustments to the board on a quarterly basis,when the$5 million threshold is projected to be breached. The electric utility also has a TCR that is designed to capture and pass through to customers the utility's net transmission costs. This has provided another valuable means for capturing increasing fixed costs following ERCOT's build-out of its transmission system. Financial Performance and Legal Provisions The financial performance of the combined utility system is largely driven by the electric system, which accounted for an average of 48.7% of the combined system's net operating revenues during fiscal 2011-2016. The water system and the wastewater system contributed approximately 30.6% and 20.8%, respectively. A breakdown of the combined system's net operating revenues by utility is provided in the chart below. Combined Utility System Net Operating Revenue by Utility (oho) Electric ■Water Wastewater 100 0 6 . 0 OEM 40 0 1 20 d h 2011 2012 2013 2014 2015 2016 Average (2011-2016) Source:Denton(TX). As shown in the chart, the electric system's financial performance was noticeably weaker in fiscals 2013 and 2014. This was largely driven by the ongoing but temporary period of increased TMPA obligations, including TMPA debt service costs,that runs through fiscal 2018. Denton's payment of its respective share of TMPA's O&M and debt service costs is recorded as a purchased power expense. Once the final payment on TMPA's generation debt is made in fiscal 2018, Denton expects purchased power costs will decline by approximately $33 million. However, DEC operations are expected to increase operation expenses by $7 million— $9 million,offsetting some of the expected savings. The financial performance of the combined utility system will become increasingly dependent on the electric system after 2018. With the reduction in TMPA obligations that begins in fiscal 2019, Denton's electric system will contribute approximately 75%of the projected net operating revenues for the combined utility system. Recent Financial Metrics The financial metrics of the combined utility system are relatively low but adequate for the rating. Fiscal 2015 debt service coverage and coverage of full obligations was 1.65x and 1.14x, respectively. Preliminary and unaudited financial reports for fiscal 2016 reflect Fitch-calculated coverage metrics of approximately 1.70x and 1.1 Ox, respectively. Liquidity levels for the combined utility system are healthy,with approximately$119.8 million in unrestricted cash and investments, or 275 days cash on hand, at the end of fiscal 2015. Liquidity levels are expected to increase in fiscal 2016 to approximately $158.6 million Denton,Texas 7 January 3,2017 J FitchRatings (unaudited), due in part to the release of certain bond funds following recent refundings. A portion of the increased reserves are expected to be spent on capital projects in fiscal 2017. The combined system's cash balances have declined moderately over the past several years as funds have been used for capital needs and to meet increased TMPA obligations. Additional draws are expected, including a planned $17 million use of reserves in fiscal 2017, although cash balances are projected to stabilize at still-sound levels thereafter. Financial Outlook Projected financial metrics are adequate for the rating and relatively consistent with recent performance. Fitch-calculated all-in debt service coverage ratios are projected to remain in the 1.60x-1.90x range through fiscal 2021, with the notable exception of fiscal 2018 when coverage is expected to decline to a low of 1.19x. Fiscal 2018 is the final year of elevated TMPA costs for the electric system as the outstanding generation debt is repaid. Increasing debt service costs through 2021 will keep coverage levels relatively low over the period despite improving financial margins driven by lower electric system costs after 2018. Management's financial projections are based on several assumptions, including 2.5% annual electric load growth, 4.5% annual electric rate increases in fiscals 2017-2019 and the realization of approximately$25 million in non-contracted wholesale electric revenue beginning in fiscal 2019. An inability to achieve these assumptions could result in weaker-than-expected financial performance. General Fund Transfers Each of the utility systems pays three separate transfer amounts to the city's general fund. The transfers include an indirect cost allocation, a "rate of return" to the city authorized in the city charter and a payment in lieu of franchise taxes. While the indirect cost allocation transfer is considered an operating expense by the utilities, the rate of return and payment in lieu of franchise taxes transfers are subordinate to debt service per the city ordinance authorizing the revenue bonds. The transfer amounts have been relatively stable over the past several years. The indirect cost allocation amount is established by an independent consultant. The rate of return and payment in lieu of franchise taxes are set at 3.5% and 5%, respectively, of each utility system's revenues. Debt Profile The senior lien revenue bonds are expected to comprise approximately 25% of the combined utility system's total outstanding debt in 2017. The majority of the debt is in the form of general obligation (GO) bonds and certificates of obligation (CO) that are issued and secured by the general government, but actually paid from the underlying utility systems. All of the outstanding debt is fixed-rate. Fitch's coverage and debt calculations include the GO and CO bonds and the respective debt service paid by the utility systems. The combined utility system's debt metrics are elevated, projected at 11.3x debt/FADS in fiscal 2017. The rating incorporates the combined utility system's plans for around $343 million in additional GO bonds and a potential issuance of $40 million in revenue bonds over the next five years.The relatively high debt load reflects the systems'significant investment in additional generation, transmission and other investments. The relatively quick repayment period, including the 20-year amortization rate on the revenue bonds, together with improved operating Denton,Texas 8 January 3,2017 FitchRatings - - earnings is expected to reduce the elevated debt/FADS ratio beginning in 2019 and restore future debt capacity, if needed. Legal Provisions The bond's legal provisions are viewed as permissive but adequate for the rating. The bonds are payable from a first lien on the net revenues of the combined utility system. Operating costs are defined in the ordinance to include transfers of indirect costs, but exclude return on investment and payment in lieu of franchise tax transfers. The bonds feature a sum-sufficient rate covenant and do not have a debt service reserve fund. Denton,Texas 9 January 3,2017 FitchRatings - - Financial Summary- Denton (TX) ($000,Audited Years Ended Sept.30) 2011 2012 2013 2014 2015 Debt Service Coverage(x) Debt Service Coverage 4.6 1.9 1.3 1.3 1.7 Adjusted DSC(Including Purchased Power Adjustment as D/S) 2.3 1.5 1.2 1.1 1.4 Adjusted DSC(Including Transfer/PILOT/Dividend as O&M Expense) 3.5 1.5 0.9 0.8 1.3 Coverage of Full Obligations(PP as D/S and Transfer/PILOT/Dividend as O&M Expense) 2.0 1.3 0.9 0.9 1.1 Liquidity Metrics Days Cash and Investments on Hand 415.1 451.3 337.9 283.5 275.4 Days Liquidity on Hand 415.1 451.3 337.9 283.5 275.4 Leverage Metrics Debt/FADS(x) 5.7 5.8 8.4 9.4 7.1 Adjusted Debt(Including PP Adj.)/Adjusted FADS(Including PP Adj.)(x) 6.3 6.4 8.3 8.8 7.4 Debt/Total Retail Customers 3,443.5 3,520.5 3,621.2 4,097.8 4,466.5 Net Debt/Net Capital Assets(%) 43.7 41.1 44.0 51.3 53.5 Equity/Capitalization(%) 54.9 55.5 54.9 52.2 50.7 Debt/Capitalization(%) 45.1 44.5 45.1 47.8 49.3 Adjusted Debt/Capitalization(%) 55.5 54.7 57.0 59.1 59.1 Other Financial&Operating Metrics Operating Margin(%) 25.2 24.5 14.9 14.3 21.7 Retail Electric Revenue/kWh(Cents/kWh) 9.1 9.5 9.7 10.4 11.3 Transfer and PILOT and Tax/Total Operating Revenue 0.3 0.4 0.4 0.5 0.7 Capex/Depreciation and Amortization(%) 215.7 242.7 314.6 389.7 411.2 Debt Service/Cash Operating Expenses(%) 10.4 21.6 19.8 19.9 21.6 Income Statement Total Operating Revenue 186,359 189,645 197,126 208,666 229,583 Total Operating Expense 139,416 143,145 167,855 178,900 179,740 Operating Income 46,943 46,500 29,272 29,766 49,844 Adjustment to Operating Income for Deferred Revenue 18,286 19,236 18,733 19,784 22,478 Funds Available for Debt Service 65,229 65,736 48,004 49,550 72,322 Total Annual Debt Service 14,271 34,484 37,143 39,756 43,722 Balance Sheet Unrestricted Funds(Cash and Liquid Investments) 139,272 155,025 138,938 124,553 119,781 Restricted Funds 95,370 98,204 107,779 129,929 142,112 Total Net Assets/Member's Equity 447,800 476,564 492,549 505,466 526,301 Total Debt 368,396 382,703 403,996 463,410 512,604 Cash Flow Statement FCF(FADS-Transfer and PILOT-Total Annual Debt Service) 36,014 16,094 (4,572) (6,516) 10,742 Capex 36,556 43,101 55,831 72,319 86,200 FCF Less Capex (543) (27,007) (60,402) (78,836) (75,458) DSC-Debt service coverage.D/S-Debt service.PP-Purchased power.FADS-Funds available for debt service.PILOT-Payment in lieu of taxes. 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Rationale Outlook WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 19,2016 1 1776195 1302491962 Summary: Denton, Texas; Combined Utility ProfileCredit US$224.05 mil util sys rev bnds ser 2017 dtd 01/01/2017 due 12/01/2036 Long Term Rating AA-/Stable New Rationale S&P Global Ratings has assigned its'AA-'rating to Denton,Texas'utility system revenue bonds,series 2017.The outlook is stable. The rating reflects our assessment of the following credit strengths: • An expanding and diverse service area economy with good access to employment throughout the strong and diverse Dallas-Fort Worth metropolitan area; • Strong liquidity,measuring 250 days of operating expenses($120 million),roughly half of which is designated for rate-stabilization,built up to mitigate the need for interim rate increases as Denton transitions to a lower-cost power supply;and • A transition to what we would view as a more favorable power portfolio,from a coal-heavy supply to one based on wind and solar energy firmed up through owned gas-fired generation and market purchases.We expect that,in 2018,power costs will be lower, enabling the utility to post stronger cover metrics and build liquidity. The rating also reflects what we view as the following credit risks: • The transition creates some uncertainties.The utility has a take-or-pay contract with the Texas Municipal Power Agency(TMPA)and, as such,participates in the Gibbon's Creek coal project,which accounted for 26%of Denton's 2015 energy needs(and more in previous years).The contract expires in 2018,but the TMPA is selling the unit and a portion of related transmission before then.Denton expects to replace it with wind and solar purchased power agreements(PPAs),boosting renewable generation to 70%of energy needs(from the current 40%), and quick start gas units,with the later firming up supply and providing economic dispatch optionality when more advantageous than market purchases.While management expects the power supply change will result in lower energy and fixed costs,there are uncertainties related to the fact the units have not yet been built, coupled with potential volatility associated with a greater reliance on market purchases or gas-fired generation. • Coverage of fixed costs have been just adequate over the past three years,supplemented by draws on rate-stabilization reserves.Although management projects solid coverage in 2016,we expect coverage in 2017 and 2018 at levels we would characterize as weak for the rating;however,the utility's strong liquidity,including a large rate-stabilization reserve that provides a cushion during the transition,mitigates the risk. • Denton anticipates a sizable 75%increase in utility-supported debt by 2020 to meet combined system capital needs. Bond proceeds will finance the construction of quick start gas-fired units that will firm up delivery of renewable energy as part of the utility's Renewable Denton plan. The combined utilities'business risk profile of'4'is better than average,reflecting our assessment of rate setting WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 19,2016 2 1776195 1302491962 Summary: Denton, Texas; Combined Utility autonomy and a residential service area exhibiting credit supportive demographics.We assign business risk profiles on a scale from'1'to'10','1'being the strongest. A first-lien pledge of net revenues of Denton's combined electric,water and sewer systems secure the bonds.The electric system dominates revenues,typically accounting for about three-quarters of the total, and about half of the net revenue available to service debt. Denton's power supply includes firm power purchases of wind energy,which accounts for about 40%of energy needs; market purchases(30%);and the city's 21.3%participation share in the Gibbons Creek coal plant.We understand that the TMPA(and its members)are selling the plant for$57.5 million,with the buyer assuming all decommissioning liabilities.The agency is also selling one-quarter if its transmission assets for$71.5 million,to a separate buyer.The TMPA expects to use the proceeds pay down about one-quarter of its$473 million debt.The remaining portion attributable to generation will be serviced by the respective members though its 2018 final maturity;the portion that is attributable to transmission will be serviced from transmission revenue from the Electric Reliability Council of Texas (ERCOT),beginning in 2019.The utility expects that,in replacing the TMPA power,it will bring renewables to 70%of energy needs(including 52%wind and 17%solar). Given the intermittent nature of renewable energy, Denton is issuing the 2017 bonds to finance the construction of 12 reciprocating combustion turbines(for 220 megawatts)which will be used to firm up delivery when economically advantageous relative to market purchases.We understand that Denton has no additional capacity needs in the foreseeable future for its water or wastewater systems. According to the U.S. Department of Energy's Energy Information Administration, Denton's electric rates were 113% of the state average in 2015,the most recent year of available comparative information,although residential rates are 4%below the state average.With a portion of customers(about 20%)in areas that are multiply certified,the utility is somewhat exposed to price-sensitive customer switching,although this has historically not been a problem for it. Combined water and sewer bills is also high,at$86 per month for a 7,500 gallon residential customer, a function of 8% average annual wastewater rate increases over the last three years. Management projects 4.5%electric rate increases in 2017 and 2018,and small annual water and wastewater rate increases through 2021. Denton has posted inconsistent financial results from recurring revenue,but has stabilized financial operations by using rate-stabilization reserves in 2013 and 2014 to meet higher fixed costs(direct debt and fixed cost payments to the TMPA). Not including the reserves,fixed cost coverage was 0.97x in 2013, 1.27x in 2014,and 1.20x in 2015. Including them,fixed cost coverage was 1.2x in 2013 and 1.54x in 2014(management did not use stabilization reserves in 2015). Financial operations for 2016(11 months,year-to-date)have been solid;including a modest amount of rate-stabilization reserves,the utility projects 1.38x coverage of fixed costs,which we consider solid at this rating. However,the 2017 budget suggests much thinner margins(due to higher operating and personnel costs,as well has higher purchased power expenses),producing 1.12x fixed cost coverage. For 2018,the utility projects 1.2x coverage with the use of$4 million in stabilization reserves,neither of which are consistent with the rating. Nevertheless,the liquidity from the significant level of available rate-stabilization reserves mitigates the risk.As the utility transitions to a lower-cost power supply with lower fixed costs,we expect fixed cost coverage to rise into the 1.4x range by 2019, and the utility expects to dedicate$50 million in surplus revenue toward replenishing and enhancing rate-stabilization reserves to nearly$93 million by fiscal year-end 2020. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 19,2016 3 1776195 1302491962 Summary: Denton, Texas; Combined Utility Debt was 49%of total capitalization in 2015,which we believe is fairly high for a utility with no generation assets on its balance sheet. Denton is fairly leveraged and we anticipate that debt ratios will weaken over the next five years as it pursues a sizable,$614 million five-year capital plan,the bulk of which it expects to finance with utility-supported debt. We anticipate a 75%increase in utility-supported debt by 2020,so we expect the debt ratio will weaken. Denton benefits from its location in the diverse Dallas-Fort Worth Metroplex. Customer growth for the combined utility system has averaged 2%over the past four years,which we consider solid. In our opinion, concentration among customers is modest,with the 10 leading customers accounting for about 22%of total combined system revenue. Residential customers account for nearly 38%of revenue,and commercial customers account for the bulk of the rest. Demographics are good,with median household effective buying incomes at 91%of the nation and unemployment low at 3.4%in 2015. Outlook The stable outlook reflects our view of Denton's strong liquidity,supplementing uneven coverage metrics as the utility transitions to a lower-cost power supply. Upside scenario We do not expect to raise the rating over the next two years given Denton's financial forecast and capital program. Downside scenario We could lower the rating if the utility fails to meet projected metrics for coverage and liquidity. Certain terms used in this report,particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria,and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. 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WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 19,2016 5 1776195 1302491962 Date: December 21,2018 Report No. 2018-191 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Informational summary of a"pedestrian scramble" signal timing phase and its application at intersections on the square. EXECUTIVE SUMMARY: Increase in requests from citizens to improve pedestrian safety at intersections around the square has resulted in proposal of unique solutions which include implementation of an exclusive pedestrian phase, also known as a pedestrian scramble. Pedestrian scramble phase stops vehicular traffic in all directions and provides a protected phase for pedestrians to cross an intersection in all directions. There are pros and cons for implementing the pedestrian scramble phase at the square intersections and staff is currently conducting a feasibility review. BACKGROUND: A pedestrian scramble is known to be mainly used in downtown settings where there is high pedestrian traffic. The exclusive pedestrian phase stops all vehicular movement and provides a protected phase for pedestrians at an intersection. Pedestrians can cross in any - direction, including diagonally, as shown in the image. r Below are the key pros and cons of i implementing pedestrian scramble phase at _ the intersections on the square. Pros • Pedestrian safety is anticipated to increase due to the restricted vehicular movements for each signal cycle. • Pedestrian scramble phase can be implemented without any upgrades to the existing traffic signal equipment. Cons • Increased vehicle delays and congestion as pedestrians will need additional time to cross- diagonally. • Americans with Disabilities Act(ADA) compliance -Visually impaired pedestrians may have difficulty navigating diagonally through the intersection. • Longer vehicle queues due to longer wait at signals • Considerable impact on access to parking on the square - Vehicles blocking parking spaces closer to the signals Date: December 21,2018 Report No. 2018-191 • Pedestrian infrastructure such as crosswalks, accessible ramps, signage, etc. will have to be designed and constructed. PROJECT STATUS: Staff is currently reviewing several measures to improve pedestrian safety around the downtown area including the square. As such, staff will be assessing the feasibility of implementing the Pedestrian Scramble phase at the signalized intersections along with other measures to help improve pedestrian safety. The review and assessment will be completed by third week of January 2019 after which staff will implement the recommended measures. CONCLUSION: A pedestrian scramble is primarily implemented in downtown settings where there is high pedestrian traffic. Staff is currently reviewing several measures including pedestrian scramble phase to improve pedestrian safety. It is anticipated that the staff review will be completed by third week of January and the recommended improvements will be implemented in the following two to three weeks. STAFF CONTACT: Pamela Alummoottil Traffic Engineer (940) 349-7486 Pamela.Alummoottil(k cityo fdenton.com Date: December 21,2018 Report No. 2018-194 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: During the concluding items portion of the December 3, 2018 City Council meeting, Council Member Meltzer requested information regarding conducting a scientific study to evaluate gas well setback distances for the City of Denton. DISCUSSION: As mentioned in the gas well setback presentation during the City Council work session on September 11, 2018, one of the most comprehensive studies specific to potential public health impacts due to emissions of compounds leaving gas well sites within the Barnett Shale was commissioned by the City of Fort Worth in 2010 through 2011. The specific goal of this study was to evaluate whether the 600-foot setback from protected uses established by the City of Fort Worth was adequate for protecting public health. The City of Fort Worth selected the Eastern Research group ("ERG") to conduct this study. ERG began the study during August 2010 and provided a final report approximately 1 year later. Results of the study indicated that the 600- foot setback used by the City of Fort Worth was protective of public health according to the parameters used by the ERG to evaluate public health impacts. Although the study had some critics, the information was subsequently used by several other cities as a basis for setback distances, and today the 600-foot setback remains the most common setback distance used within the Dallas—Fort Worth Metroplex. The ERG study offers a framework for partially addressing the council request. However, the study conducted by ERG for the City of Ft. Worth was designed to determine if an established distance (600 feet) was sufficient for protecting public health. The current council request appears to be to facilitate research to determine "what is a safe setback distance", which is a much more difficult issue to address since a defined distance is not implicit. With this in mind, the basic design of the ERG study is still valid for addressing the research request,but substantially more work will be needed to consider multiple distances. Using the ERG study as a framework, staff suggests the following approach: 1. Complete ambient air monitoring and associated research to establish a baseline. Complete ambient air monitoring to determine the prevalence and magnitude of specific compounds in ambient air and complete an assessment of other potential sources of emissions in proximity to gas wells. The City of Fort Worth established 8 monitoring sites to assess ambient air quality, and measurements were taken over a two-month period. Information obtained from this ambient air monitoring network was used to provide context for point source sampling and analysis efforts, characterize exposure to selected air toxics in ambient air at various locations in the city, establish concentrations of air toxics (such as benzene)present in the ambient air in the area, and as a component of the subsequent public health evaluation. Analyses of other potential sources of Date: December 21,2018 Report No. 2018-194 emissions unrelated to gas wells will help in sample collection design and ensure that quantified emissions can be defensibly demonstrated to be from gas well pad sites. 2. Complete a point source emissions study to characterize emissions from natural gas- related point sources located within the City of Denton. Data collected during this phase can be used to derive total emissions profiles for each point source site. This point source testing must be comprehensive, since emissions at any individual site can fluctuate depending on day-to-day operating and equipment conditions. The variation in emissions over the entire population must be captured to determine the likely range of emission profiles, and the sampling will need to be done for multiple distances. 3. Use accepted, defensible analytical methods to perform monitoring. Analyze volatile organic compounds (VOCs)using established protocols,which include the Environmental Protection Agency's (EPA' s)method TO-15, Carbonyl compounds identified by EPA' s method TO-I IA (including formaldehyde), speciated non-methane organic compounds (SNMOC), as identified by ERG/SNMOC Analysis Method, and Methane as identified by EPA' s method TO-14. This approach will provide information for over 130 compounds, including 45 hazardous air pollutants such as benzene, ethylbenzene, toluene, and xylenes (BTEX compounds), formaldehyde, and acetaldehyde. It may also be advisable to consider newer passive methods for that use sorbent tube technologies such as EPA method TO-17 and/or method 325A. From a public health standpoint, concentrations of benzene should be of primary importance. 4. Complete air dispersion modeling. The results of elements 1-3 can be used to complete air dispersion modeling to quantify downwind impacts from natural gas activities using the latest EPA-approved models and methodologies. This information can then be used to determine worst case exposure scenarios and to determine the adequacy of various setback distances within the framework of a public health evaluation. 5. Use defensible and widely accepted heath based screening levels for public health evaluation. Complete a public health evaluation by comparing the ambient air monitoring data and the dispersion modeling results to the Texas Commission on Environmental Quality(TCEQ) health-based screening levels with respect to distances from pad sites. Evaluations should include both Effects Screening Levels (ESLs) and Air Monitoring Comparison Values (AMCVs). The TCEQ has developed separate ESLs for short-term and long-term exposure durations, where short-term values are typically used for assessing 1-hour average concentrations and long-term values are typically used for assessing annual average concentrations. Although ESLs are not regulatory standards, they are often used to interpret potential exposures to air pollution predicted by models. The TCEQ interprets ESLs as follows: "If predicted airborne levels of a constituent do not exceed ESLs, adverse health or welfare effects are not expected. If predicted ambient levels of constituents in air exceed the screening levels, it does not necessarily indicate a problem but rather triggers a review in more depth." Air Monitoring Comparison Values (AMCVs) are pollutant-specific ambient air concentrations that the agency has established to protect human health and welfare. In contrast to ESLs,which are primarily used when evaluating air pollution levels predicted Date: December 21,2018 Report No. 2018-194 by models, AMCVs are used when conducting health screening evaluations of air monitoring data. Depending on the sampling results, it is possible that Texas Risk Reduction Program's risk based exposure levels (RBELs) for residential inhalation may also need to be considered. It is staff s opinion that the above approach will likely be able to address the Council request. Staff obtained information on the ERG study via discussions with the City of Fort Worth staff member that was the project manager for the study. The Fort Worth ERG study was completed in approximately 1 year, and the total cost was $1,052,448. However, the study included a $45,254 component for communication and outreach that could possibly be excluded, bring the costs to $1,007,194 in 2010 dollars. Although the City of Denton has fewer gas well pad sites than the City of Fort Worth, the request for the Denton study is to determine a specific public health based setback distance, whereas the City of Fort Worth study was designed to determine if a single distance (600 feet) was protective of public health. As a result, the City of Denton study will require substantially more sampling, analytical, and modeling work. Applying a 5%per year increase to the 2010 ERG study amount of$1,007,194 indicates that the cost of the ERG study would be approximately 1.65 million in 2019. Considering the more extensive nature of the Denton study as proposed, it is not unreasonable to expect the study to be in the 2 million dollar range, and to take perhaps 1.5 to 2.5 years to complete. It is also worth noting that while the proposed health based screening levels are derived from the TCEQ and the proposed methods are supported by the EPA, if exceedences of standards are observed the TCEQ is unlikely to accept those results without additional monitoring and evaluations being performed by the TCEQ itself. STAFF CONTACT(S): Kenneth Banks General Manager of Utilities (940) 349-7165 Kenneth.Banksgcityofdenton.com Council Meeting Revision Date Requests for Information 12/21/2018 Request Request Date Staff Responsible Status Requested By Update on marketing/advertising policy and naming 1 opportunities at City facilities. 8/2/2018 Langley/Packan A work session is planned for February 26. Hudspeth Information on providing additional options for broadband 2 service aside from current service providers. 9/25/2018 Birdseye/Collister Information will be provided in a future Friday report. Briggs Information and recommendations on Denton's Smart City 3 initiatives. 10/9/2018 Kraft/Wood Information will be provided in the January 4 Friday report. Briggs/Meltzer Information was included in the November 21 staff report.A Strategy for addressing telecommunications and utility lines detailed ISR will be provided in a future Friday report.A 4 along Dallas Drive including pricing and timing. 10/16/2018 Canizares/Morrow work session is scheduled for February 5. Briggs Review of the City's agreement with the Denton Housing 5 Authority. 10/16/2018 Kuechler/Reinwand/Leal Information will be provided in a future Friday report. Briggs A status update was provided in the November 30 Friday Provide information on how quickly staff can proceed with report.Additional information is provided in the December 6 installing windows at City Hall West. 11/13/2018 Canizares/Hartley 21 Friday report. Hudspeth Information on staffs ability use utility information to notify residents within 200'and 500'of a proposed development in 7 addition to using DCAD data. 11/13/2018 McDonald/Leal ISR is provided in the December 21 Friday report. Ryan Information on alternative strategies to promote high-tech 8 entrepreneurship. 11/13/2018 Booth Information will be provided in a future Friday report. Meltzer Staff report on establishing a sobering center in Denton similar to the ones recently opened in San Antonio,Houston, 9 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'tenant 10 committee to advocate for renter rights. 11/13/2018 Lahart/McDonald/Leal Information will be provided in the January 4 Friday report. Armintor Information on a potential program to incentivize residents to use doorbell monitoring technology to assist with public 11 safety. 11/13/2018 Dixon/Padgett/Birdseye Information will be provided in a future Friday report. Hudspeth Information on the potential creation of a small business or 12 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 13 help persons experiencing homelessness obtain photo IDs. 11/27/2018 Kuechler Information is provided in the December 21 Friday report. Armintor Staff report on the recent resolution passed by the City of 14 Dallas to establish itself as a Welcoming City. 11/27/2018 Birdseye ISR is provided in the December 21 Friday report. Armintor 15 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 transit efforts that are being coordinated by 16 NCTCOG. 11/27/2018 Canizares Information will be provided in a future Friday report. Hudspeth Council Meeting Revision Date Requests for Information 12/21/2018 Request Request Date Staff Responsible Status Requested By Staff report on what it would take to design study requirements tailored specifically for Denton's geology to help 12/3/2018 17 establish a sound policy rationale. &12/4/2018 Banks ISR is provided in the December 21 Friday report. Meltzer Staff report on the feasibility of adopting and enforcing gas well notification disclosure requirements for new occupants 18 of dwellings located within 1,000 feet of a gas well pad site. 12/4/2018 Leal/McDonald Information will be provided in a future Friday report. Meltzer Staff report on having a separate Townhome/Condominium 19 designation in the Denton Development Code. 12/4/2018 MCDonald/Cannone ISR is provided in the December 21 Friday report. Armintor Staff report on on-street parking that was turned over to UNT, including a feasibility analysis of allowing residents to use 20 that parking. 12/4/2018 Deshmukh/Estes Information will be provided in a future Friday report. Hudspeth Information on installing a natural/planted trash can screen at 21 the MLK Recreation Center. 12/4/2018 Packan/Cox Information will be provided in a future Friday report. Hudspeth Information on the total number of trucks coming through Denton,a map of the general geography of Denton's new industrial corridor indicating City vs.State roads,and quantify the infrastructure impact caused by major industrial 22 developments. 12/11/2018 Booth/Estes Information will be provided in a future Friday report. Armintor/Briggs/Watts 23 Provide an update on options for a sign for City Hall. 12/11/2018 Canizares Information is provided in the December 21 Friday report. Briggs Provide a status update on the identification of projects for 24 the Opportunity Zone. 12/11/2018 Booth Information will be provided in a future Friday report. Briggs 25 Information on why Sunday bus service is not offered 12/11/2018 Canizares Information will be provided in a future Friday report. Hudspeth Information on the best way for pedestrians to safely cross 26 University Drive to access TWU's soccer fields. 12/11/2018 Deshmukh/Estes'Wood Information will be provided in a future Friday report. Hudspeth Information on tree planting code requirements for park 27 development projects. 12/18/2018 Packan Information is included in the December 21 Friday report Watts Provide information on the new Uber flights program including details on if the Denton Enterprise Airport meets 28 the specifications of the program. 12/18/2018 Gray/Puente Information will be provided in a future Friday report. Hudspeth Staff report on ADA compliance issues regarding dumpsters 29 left on sidewalks. 12/18/2018 Birdseye/Cox ISR is provided in the December 21 Friday report. Armintor Information on the pros and cons of developing a policy requiring certificates of obligation and economic 30 development incentives to have a public vote 12/18/2018 Booth/Puente/Leal Information will be provided in a future Friday report. Armintor Policy will-Fe discussed at the January 9 Planning&Zoning Adopt a developer engagement policy similar to what Council Commission Meeting.A resolution will be included in the 31 adopted for items resulting in a tie-vote. 12/18/2018 Wood/Leal January 15 City Council agenda. Ryan Staff report on options to have curbside bulky item collection 32 for commercial dumpsters. 12/18/2018 Cox Information will be provided in a future Friday report. Watts 33 Update on red light camera pilot project. 12/18/2018 Deshmukh/Dixon Information will be provided in a future Friday report. Briggs Other Council Information Requests 12/21/2018 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 Information will be shared with the Committee on the 2 monitors in Denton. 9/17/2018 Barnett Environment during their January meeting. 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 4 the Tenant Bill of Rights. 11/6/2018 Lahart/McDonald Information will be provided in the January 4 Friday 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. 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 7 would be permissible under the proposed DDC. 11/13/2018 McDonald Information will be provided in the January 4 Friday report. Meltzer Information on introducing a curbside organics/composting collection program,including to 8 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 9 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 10 plant off of Roselawn Drive. 11/29/2018 Cannone/McDonald information is received from TxDOT. Briggs Information on the addition of stop signs at Camino Real and Sea Cove and Camino Real and Wharfside Place in 11 the Villages of Carmel subdivision 12/2/2018 Deshmukh/Estes Information is provided in the December 21 Friday report. Armintor Information will be provided in a future Friday and/or 12 Update on the Verizon pole attachment debt. I 12/3/2018 Puente/Morrow Legal Status report. Meltzer Other Council Information Requests 12/21/2018 Request Request Date Staff Responsible Status Requested By Information on what can be done to address dumpsters blocking sidewalks,of particular concern is a property 13 located at 1000 Gregg Street. 12/4/2018 Cox/McDonald/Birdseye Information is provided in the December 21 Friday report. Briggs Update on all sidewalk projects that received Safe Routes Information was provided in the December 7 Friday report. to School funding,including Stuart to Ginnings and the Staff will provide additional information on project timing 14 area surrounding Woodrow Elementary. 12/5/2018 Deshmukh/Estes/Oliphant following feedback from TxDOT. Briggs Information on the plans for the 7 acres between 15 Southridge Estates and the Goodwill shopping center. 12/13/2018 Menguita/Cannone Information will be provided in the January 4 Friday report. Armintor Information on planned intersection enhancements at 77 16 and I-35. 12/14/2018 Deshmukh/Estes Information will be provided in a future Friday Report. Briggs Summary on the proposed zoning change on the lots north of Family Dollar on Elm Street including minutes 17 from the Planning&Zoning Commission meeting. 12/14/2018 Cannone/McDonald Information will be provided in a future Friday report. Briggs Clarification on how the number of parked vehicle crashes on W.Oak compared to the rest of the community-do the current numbers warrant further 18 investigation? 12/14/2018 Dixon/Padgett/Deshmukh Information will be provided in the January 4 Friday report. Meltzer Information on a potential process to require re- notification of a new project that is being developed where Council action was previously required,even if 19 there are no changes to zoning. 12/14/2018 Cannone/McDonald Information will be provided in a future Friday report. Meltzer Better lighting solution to improve pedestrian safety on 20 the square. 12/15/2018 Estes/Deshmukh Information will be provided in a future Friday Report. Armintor/Briggs Council Contingency Funds Item for Denton County Item is included on the January 8 City Council consent 21 Friends of the Family Black History Month 12/18/2018 Wood agenda. Armintor 22 1 Staff report on the effectiveness and resources required for municipal rental inspection programs across the state. 12/20/2018 Lahart Information will be provided in a future Friday report. Meltzer 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 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 4:00pm ZBAcance Ile d 12:00pm CC Work Session 11:00 Development 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 12/19/2018 3:49 PM January 2019 1 2 3 4 5 No C o un c it Me a tin g 4:OOpm Public At Cornnittee 6 7 8 9 10 11 12 8:00 am Counc il Me e ting 11:00am Mobility 11:00amEDP 1:30pm Committee on the C o m m itte e Environment-will be 12:00 pm CC Work 5:OOpm P&Z Work Session rescheduled Session 6:30pm P&Z Regular Ses s ion 5:30pm Traffic Safety 6:30 pm CC RegularSession Commission 13 14 15 16 17 18 19 9:00am Pub he Utilities 2:00 pm CC Work Session 4:00pmHaBSCoM;eting Board 6:30 pm CC Regular Se ssion 5:30pm HLC 20 21 22 23 24 25 26 No Council Meeting I1:OOamTIF Board(TIRZ#1) 10:00 am Council Airport 5:OOpm P&Z Work Session Comm. 6:30pm P&Z Regular Ses lion 27 28 29 30 31 6:00pm Public Utilities No Council Meeting Board 4:00p m ZBA February 2019 1 2 3 4 5 6 7 8 9 11:30 am Council 2:00 pm CC Work Session 5:00pmP&Z Work Session 4:00pm Public AtCommittee Luncheon 6:30 pm CC Regular 6:30pmP&Z Regular Session 1:30pm Committee on the Se ssion Environment 5:30pm Traffic Safety Commission 10 11 12 13 14 15 16 9:00a m Pub lic Utilities 11:00a m Mobility 11:00am EDP Board Committee 2:00 pm 2nd Tuesday 5:30pm HLC Session 17 18 19 20 21 22 23 CC Work Session/Regular 5:00pm P&Z Work Session 4:00pmHaBSColMleting Session-Cancelled 6:30pmP&ZRegularSession 24 25 26 27 28 6:00pm Public Utilities 10:00am Council Airport Board Comm. 2:00 pm 4th Tuesday 4:00pm ZBA Session Future Work Session Items 12/21/2018 Meeting Date Currently Slated Work Session Items 7-Jan Lunch 8am start time for Municipal Judge Block for Municipal Library Annual Citywide Strategic Interviews Judge interviews Report Plan Update DME Risk Landfill Expansion 8-Jan Management Policy Floodplain CRS PERF Presentation Permitting Process Fire Technical Cole/Hunter Bonnie Brae and SRO/Collegiate E-Cigarette Rescue/Light Air 15-Jan Development Scripture Tract Housing Enforcement Vehicle City Hall East Facility Development American Legion Location will be City 4-Feb Lunch Cultural District Plan for PD Service Fees Hall Hall East/Police HQ Cole/Hunter Recycling Business Housing Tax Credit Dallas/Teasley 1001 Mayhill Facility Development Follow- 5-Feb Case Analysis Applications Telecom Poles Improvements Up Right-of-Way Downtown Design Denton Construction Code 12-Feb Ordinance Standards Development Code Review Update on Work Session Marketing/Naming 26-Feb Strategy Session Airport Governance Bell Avenue Policy Council Appointee 4-Mar Lunch Fire Diversity Review Process Animal Shelter* Purchasing Manual DEC Noise 5-Mar Update Mitigation Mews Streets New Market Tax Special Event 19-Mar Credits Patrick Park Tennis Center Ordinance Update Home Chemical Integrated Pest Credit and Collection Business Solid Waste Mid- Management 26-Mar Collections Study Case Analysis Year Budget Review Program Solid Waste Rate Enhanced Leachate Discussion Recirculation Yard Waste (Potentially South Lakes Park Business Case Collection Business combined with Purchasing Manual Date TBD Parking Lot Analysis Case Analysis budget) Update 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 INP�OVING 70OF Y Week of December 24-30,2018 8 DENTONFor general inquiries and questions,please contact the Project Management Office at(940)349-7227 ENT(N 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 CURRENT PROJECTS See Yellow Highlighted for Ma'or 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 LINT Monument Wall Public Works Extended completion from Ave.C Hickory Mulberry 9/24/18 2/8/19 (Road Closure) Inspections LINT Project (940)349 8905 1/2/19 Water Improvements Bowling Green St. Georgetown Auburn 11/29/18 1/22/19 (Daily Street Closure will re-open end Water 11/7/18 (940)349-7167 of each day) Bonnie Brae St. Roselawn North of 7/1/2017 7/1/2019 (phase 1)Street Widening Engineering 6/14/18 (940)349-8910 Vintage 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 12/31/18 Water Main Construction Water 6/5/18 (940)349-7167 Extended completion from (Street Closure) 12/21/18 Hickory St. Ave C Ave B 9/24/18 1/15/19 Phase III Street Reconstruction Streets 9/12/18 (940)349-7160 (Street Closure) John Paine Rd. Athens Gilmer 12/17/18 1/4/19 Street Panel Repair Streets 12/7/18 (940)349-7160 (Temporary Lane Closure) 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 Wastewater Improvements Nextdoor Kendo h Ln. Underwood Willowwood 11/26/18 2 15 19 Extended completion from p / / (Daily Street Closure will re-open end Wastewater N/A Notification, (940)349-7300 2/7/19 of each day) Door Hanger Kings Row Yellowstone Sherman 12/26/18 4/26/19 Curb and Gutter Replacement Streets 12/7/18 (940)349-7160 Delayed Start from 12/17/18 (Temporary Lane Closure) Laguna Dr. Yellowstone Sherman 12/17/18 4/26/19 Curb and Gutter Replacement Streets 12/7/18 (940)349-7160 (Temporary Lane Closure) Manhattan Dr. Yellowstone Sherman 11/26/18 3/29/19 Curb and Gutter Replacement Streets 11/14/18 (940)349-7160 (Temporary Lane Closure) Mayhill Rd. Intersection of Gayla 11/26/18 1/11/19 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) Utility Improvements Extended Completion from McKinney St. Woodrow Jannie 12/10/18 2/1/19 (Temporary Outside Lane Closure) Engineering N/A (940)349-8910 1/11/19 Wastewater Main Reconstruction Extended completion from Mistywood Ln. Woodhaven Rockwood 11/7/18 1/10/19 Wastewater 8/23/18 (940)349-7300 (Temporary Lane Closures) 1/3/19 Myrtle St. Eagle Maple 9 4 18 5 31 19 Eagle Drainage Improvements Engineering 8 21 18 Contacted DCTA (940)349-8910 (Street Closure) Water Improvements Extended completion from Oak St. Fulton Mounts 12/17/18 12/31/18 (Street Closure) Water 12/10/18 (940)349-8910 12/21/18 Prominence Pkw Mayhill Atlanta 1 31 18 12 28 18 Water and Wastewater Crossing Engineering 1 24 18 Door Hangers 940 349-8910 y y / / / / (Road Closure) g g / / g ( ) Riney Rd. N.Elm Solana 9/29/17 1/31/19 Road Removal and Replacement Engineering Yes Electronic Signs (940)349-8910 (Road Closure) Rockwood Ln. Royal Mistywood 11/26/18 3/5/19 Rockwood Drainage Improvements Drainage 11/23/18 Door Hangers (940)349-8488 (Intermitten Street Closure) Royal Ln. Royal Rockwood 11/26/18 3/5/19 Rockwood Drainage Improvements Drainage 11/23/18 (940)349-8488 (Intermitten Street Closure) Street Panel Replacement/Sidewalk Seven Oaks Ln. Rambling Glen Falls 12/7/18 12/28/18 Repair Streets 11/7/18 (940)349-7160 Extended completion from Brook 12/21/18 (Temporary Lane Closures) 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 Shady Oaks Dr. Teasley Woodrow 12/3/18 12/28/18 Base Repairs Streets Electronic Signs Meet with business (940)349-7160 (Temporary Lane Closure) owners Sierra Dr. Yellowstone Sherman 11/26/18 3/29/19 Curb and Gutter Replacement Streets 11/14/18 (940)349-7160 (Temporary Lane Closure) Mayhill Road Widening Contacted Spencer Rd. Mayhill Bridges 4/2/18 1/11/19 (Road Closure) Engineering 3/16/2018,9/14 departments (940)349-8910 affected Street Widening US 377(Ft.Worth Dr.) IH 35E 0.26 mi south of 12/3/18 TBD (Temporary Lane Closures during non- TxDOT 9/25/18 Public Meeting (940)387-1414 FM 1830 peak traffic) 10/8 Walnut St. Locust Austin 10/29/18 12/30/18 Atmos Service Connection Engineering N/A (940)349-8914 (Street Closure) COMPLETED PROJECTS Londonderry Street Improvements Camden Ct. Londonderry Dead End 10/1/18 12/14/18 Phase II of III Streets 9/24/18 (940)349-7160 New Completion (Street Closure) Transmission Distribution Collins St. Eagle Locust 11/26/18 12/21/18 Improvements DME N/A (940)349-8700 New Completion (Street 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 South (Street Closure) Door aneer Londonderry Street Improvements Kingswood Ct. Londonderry Dead End 10/1/18 12/14/18 Phase II of III Streets 9/24/18 (940)349-7160 New Completion Street Closure Lakeview Blvd. Draught Horse 801 Lakeview 11/26/18 12/21/18 Street Panel Repair Streets 11/14/18 (940)349-7160 (Temporary Lane Closure) Londonderry Ln. Westminster Hollyhill 11/5/18 12/13/18 Water/Wastewater Improvements Water 9/25/18 (940)349-7167 (Street Closure) 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 Street Improvements Londonderry Ln. Teasley Hollyhill 11/12/18 12/14/18 Phase III of III Streets 9/25/18 (940)349-7160 New Completion (Street Closure) Parking Garage Construction Building Mulberry St. Bell Industrial 10/15/18 12/14/18 Contractor N/A Outside Contractor (940)349-8360 (Street Closure) Inspections 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 12/14/18 Street Reconstruction Streets 10/3/18 (940)349-7160 New Completion (Temporary Lane Closures) Pinehurst Ct. Wintercreek Cul d Sidewalk Repaire Sac 11/12/18 12/14/18 Streets 11/5/18 (940)349-7160 (Temporary Lane Closures) Swan Park Dr. Glen Falls Seven Oaks 11/14/18 12/21/18 Sidewalk Repair/Panel Replacement Streets 11/7/18 (940)349-7160 (Temporary Lane Closures) UPCOMING PROJECTS Athens Dr. Tawakoni Eagle Mountain 1/2/19 1/25/19 Street Panel Repair Streets 12/17/18 (940)349-7160 (Temporary Lane Closure) Atlas Dr. Redstone Hercules 3/8/19 5/4/19 Wastewater Main ReconstructionWastewater 12/17/18 (940)349-7300 Delayed start from 1/4/19 (Temporary Lane Closures) Bernard St. Fannin W Chestnut 1/4/19 4/5/19 Street Reconstruction Streets 12/17/18 (940)349-7160 (Street Closure) Bonnie Brae St. Roselawn 135E 1/15/19 1/15/20 North South Water Main Phase 2Water 11/26/18 (940)349-8910 (Temporary Lane Closures) Bowling Green St. Auburn Georgetown 1/14/19 3/29/19 Street Reconstruction Streets 12/17/18 (940)349-7160 (Street Closure) Castle Ln. Wilsonwood Southern dead 1/3/19 2/22/19 Street Reconstruction Streets 12/17/18 (940)349-7160 end (Street Closure) 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 Eagle Mountain Dr. Athens Gilmer 1/2/19 1/25/19 Street Panel Repair Streets 12/17/18 (940)349-7160 (Temporary Lane Closure) Wastewater Main Reconstruction Fulton St. Congress Gregg 2/8/19 3/23/19 Pase I of II Wastewater (940)349-7300 (Temporary Lane Closures) HickoryCreek Rd. Teasley River ass 1 1 19 6 1 20 Street Widening Engineering 11 26 18 940 349-8910 y p / / / / (Temporary Lane Closures) g g / / ( ) 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) Water Improvements Kerley Duncan Shady Oaks 2/1/19 4/11/19 (Daily Street Closure will re-open end Water (940)349-8910 Delayed start from 1/25/19 of each day) Mistywood Ln. Rockwood Jamestown 1/3/19 3/5/19 Rockwood Drainage Improvements Drainage 12/17/18 (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) PEC 4-Engineering In Design Installing Underground Box Culvert Engineering 11/13/18 (940)349-8910 FM 2181 Road Widening Ranchman Blvd. Intersection of FM 2181 1/2/19 1/31/19 (Road Closure on Ranchman to the TxDOT (940)349-8910 New Project east and west of FM 2181) 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) Atmos Utility Relocations Scripture St. Thomas Ector 1/2/19 1/31/19 (Westbound Lane Closure,Intersection Atmos (940)205-9821 at Hillcrest Closed) Atmos Utility Relocations Scripture St. Ector Gober 2/4/19 2/28/19 (Westbound Lane Closure,Intersection Atmos (940)205-9821 at Bradley Closed) 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 Scripture St. Gober Normal 3/4/19 3/29/19 Atmos Utility Relocations Atmos (940)205-9821 (Westbound Lane Closure) Spring Side Rd. Underwood Westcourt 1/2/19 1/25/19 Street Panel Repair Streets 12/17/18 (940)349-7160 (Temporary Lane Closure) 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 Curb and Gutter Replacement Streets (940)349-7160 (Temporary Lane Closure)