The URL can be used to link to this page

031519 Friday Staff Report F` City Manager's Office DENTON 215 E. McKinney St., Denton, TX 76201 • (940) 349-8307 MEMORANDUM DATE: March 15, 2019 TO: The Honorable Mayor Watts and Council Members FROM: Todd Hileman, City Manager SUBJECT: Friday Staff Report I. Council Schedule A. Meetings 1. Work Session of the City Council on Tuesday, March 19, 2019 at 12:00 p.m. in the City Council Work Session Room followed by a Regular Meeting in the Council Chambers at 6:30 p.m. 2. Mobility Committee Meeting on Wednesday, March 20, 2019 at 9:00 a.m. in the City Council Work Session Room. 3. Agenda Committee Meeting Wednesday, March 20, 2019 at 2:30 p.m. in the City Manager's Conference Room. 4. Work Session of the Planning and Zoning Commission on Wednesday, March 20, 2019 at 5:00 p.m. in the City Council Work Session Room, followed by a Regular Meeting at 6:30 p.m. in the Council Chambers. 5. Hotel Occupancy Tax & Sponsorship Committee Meeting on Thursday, March 21, 2019 at 11:00 a.m. in the City Council Work Session Room. 6. Health and Building Standards Commission Meeting on Thursday, March 21, 2019 at 4:00 p.m. in the City Council Chambers. 7. Community Development Advisory Committee Meeting on Thursday, March 21, 2019 at 5:00 p.m. in the Second Floor Conference Room at City Hall East, 601 E. Hickory Street. 8. Committee on Persons with Disabilities Meeting on Thursday, March 21, 2019 at 6:00 p.m. in the City Council Work Session Room. 9. Development Code Review Committee Meeting on Friday, March 22, 2049 at 11:00 a.m. in the City Council Work Session Room. OUR CORE VALUES Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service B. Upcoming Events 1. Denton Chamber of Commerce Annual Banquet and Awards Dinner, March 21, 2019 at 6:15 p.m. at the UNT Gateway Center. 2. Farewell Celebration for Bryan Langley, Friday, March 22 from 2:00-4:00 p.m. in the City Council Work Session Room. 3. Great American Cleanup, Saturday,March 23,2019 from 9:00 a.m.-11:00 a.m. Volunteer After Party at 11:00 a.m. at the Civic Center. 4. Serve Denton 7th Annual Celebration, Saturday, March 30, 2019 at 6:30 p.m. at Embassy Suites 5. NAACP Banquet, Saturday, March 30, 2019 at 6:30 p.m. at the MLK Center. IL General Information & Status Update A. Animal Services Logo Poll — Animal Services is seeking community input this week in selecting their new department logo. A Facebook poll opened on March 11 and will close on March 15. The community is choosing between two concepts and, so far, almost 500 votes have been cast with the logo below in the lead. Once the community selects the logo, staff will move forward with rebranding the Animal Services operation. Additionally, the Linda McNatt Animal Care & Adoption Center opened Tuesday morning to a very eager and very excited crowd of potential adopters. A total of 329 visitors came to the shelter that day and staff provided crowd control, managed meet and greets, and processed all 23 adoptions and return to owners that occurred. Staff contact: Tiffany Thomson, Customer Service/Animal Services I 1 2 B. Rail Trail Markers—At the March 5,2019 City Council Meeting,Council Member Hudspeth asked about the potential for destination markers to be placed on the Denton Katy Trail (rail trail). The rail trail is constructed on the right-of-way of the former MKT Railroad, Denton Branch, between Denton and Lake Dallas, and continues to the City of Lewisville to Hebron Station. The Parks and Recreation Department (PARD) has a meeting scheduled with the City of Lewisville on March 15 to discuss steps for the design of destination markers on the rail trail from Denton to Lewisville. PARD staff will also be reaching out to other communities (Corinth and Lake Dallas) to discuss possible options to achieve consistency of destination markers from one City to the next. PARD is currently in the process of developing a signage plan for the Parks, Recreation and Trails System Master Plan scheduled for completion in late 2019. These destination markers will be included in the Master Plan for future development and signage design. PARD is also identifying funding options for the markers. Staff contact: Gary Packan, Parks and Recreation C. Safety at University and Nottingham Intersection — On March 3, 2019 Council Member Briggs requested information regarding the safety of the intersection at E. University Drive and Nottingham Drive. This intersection was a component of a previous information request regarding safety in June of 2018. Also mentioned in that request was the intersection of E. University Drive and Old North Road. Based on previous traffic analysis and engineering review at both intersections, staff determined a protected left turn movement (green arrow light) was not warranted. Updated traffic volume studies, which included peak hours, also did not result in the need for a protected left turn movement. In making these determinations, staff follows federal guidelines that establish minimum traffic volume criteria. In June, staff recommended a mid to long-term solution of creating separate left turn lanes for both Nottingham and Old North. Separating the left turning vehicles from the through traffic by providing exclusive left turn lanes is a first but necessary step for improving safety at these intersections.While the separate left turn lanes have already been established at the intersection of University and Old North, the project to create separate left turn lanes on Nottingham is currently under design and is scheduled for construction in the summer of 2019. Staff contact: Pritam Deshmukh, Capital Projects. D. Denton Selected for Resiliency Program — On March 12, 2019, the National League of Cities (NLC) announced that the City of Denton will join the 2019 cohort of the Leadership in Community Resilience Program. Each of the eight cities chosen will receive $10,000 in direct financial support as well as technical assistance and professional development opportunities to help them meet community-specific resiliency goals. The goal of this program is to generate new insights related to the challenges and opportunities associated with local resilience initiatives. In the coming years, the lessons learned through this process will be used to help hundreds of NLC member cities achieve greater resiliency for their residents and prepare the nation for the effects of climate change and other hazards. The eight cities selected for the 2019 Leadership in Community Resilience Program are: Anchorage, Alaska; Ann Arbor,Michigan; Denton, Texas; Durham, North Carolina; Evanston, Illinois; Jersey City, New Jersey; Park City, Utah; and 3 Roeland Park, Kansas. A press release related to the selection is attached to this report. Staff contact: Jessica Rogers, Public Affairs E. Permanent Closure of McCormick Street Segment — Effective Friday, March 15, the City of Denton will permanently close a segment of McCormick Street, from Underwood Street to Avenue A, in preparation for the reconstruction of Fire Station 3. The new Fire Station 3 will be located on the west side of McCormick Street, immediately across the street from the current station location. The new Fire Station 3 will be an estimated 14,350 square-foot facility,with four apparatus bays, and room for a police office. The station is being built to accommodate growth, with the ability to house an additional ladder truck, one additional battalion chief,and up to 12 firefighters in the future.Due to the increased building footprint of the new station, the small portion of McCormick Street between Underwood Street and Avenue A will be closed. Both the Traffic Safety Commission and City Council approved the permanent road closure in early 2018. The attached map depicts the location of the road closure along with the location of road closure notification signs in the surrounding area. Staff contact: David Boots, Fire F. House Bill 375 — HB 375 was filed on Nov. 15, 2018 by Representative Gina Hinojosa(D, District 49). The proposed bill would amend Subchapter A, Chapter 43, Election Code, to add a section requiring the commissioners court of a county to designate a polling place location on the main campus of an institution of higher education located within the county if at least 10,000 students are enrolled in the institution. A full copy of the bill as filed is attached. The bill was referred to the House Elections committee on Feb. 19, 2019. As currently written, the bill would not apply to the City of Denton's elections as a separate section of the Election Code determines how cities set their polling locations. However,because the City Council can designate polling places for city elections,the Council could still elect to designate polling locations on college campuses. An identical companion bill, Senate Bill 841,has been filed by Senator Royce West(D,District 23) on Feb. 14, 2019 and referred to the Senate State Affairs committee on March 1. Staff can continue to monitor this legislation. Staff contact: Sarah Kuechler, Public Affairs G. Public Meeting on Sequoia Park — The City of Denton Parks and Recreation Department is hosting a meeting for public input on Sequoia Park and the potential for new developments in the park that could be considered as part of the future Parks master plan. Sequoia Park is a 5.5-acre neighborhood park located at 1400 E. University Dr. with a 0.41-mile concrete trail. The public meeting will be held on Thursday, March 21 at 6 p.m. in the Community Room at the Denton Civic Center, 321 E. McKinney St. A press release related to this meeting is attached to this report. Staff contact: Gary Packan, Parks and Recreation H. US Radiopharmaceuticals (USR) Property— City staff has received an update on the USR property from the Texas Department of State Health Services (DSHS) through Representative Lynn Stucky's office. DSHS held an Informal Conference (IC) with USR on March 8, 2019 to attempt to resolve the violation and penalty for failing to comply with the July 2018 order to decommission USR's facility. The current penalty DSHS assessed against USR for non-compliance is the 4 maximum of$10,000 per day,not to exceed$2.2 million dollars. The final amount is the amount of the cost estimate for decommissioning most recently provided by USR. This is the amount the Department might have to pay from the Perpetual Care Fund to take over decommissioning. The penalty, if collected, would replenish the Fund for the decommissioning expenses. The parties did not successfully resolve the matter at the IC. USR has taken no steps towards compliance and does not appear to intend to take any actions towards compliance at this time. The case will now be referred from the DSHS Consumer Protection Division to the legal division to prepare for a hearing at the State Office of Administrative Hearings(estimated time is unknown as of right now).However, the lienholder on the property, Kensington title, foreclosed on the USR property in December 2018, filed a decommissioning plan which was approved on January 7, 2019 (currently held as confidential until a ruling from the AG), and began decommissioning activities in late January. Decommissioning is expected to be completed in approximately 2 months. Kensington's decommissioning efforts do not relieve USR of its responsibility to comply with the order. But if the site is decommissioned by the time of the USR hearing, the Department may consider reducing the penalty assessment, as the Department would not have to take on the responsibility for decommissioning the site, so recovering the costs of decommissioning would no longer be relevant to the penalty assessment. Staff contact: Sarah Kuechler, Public Affairs I. Sustainability Department Fix a Leak Week — As a partner of the EPA's Watersense Program, the City of Denton will be participating in the nationally recognized Fix a Leak Week starting on March 18, 2019. The Sustainability Department will host public education classes on indoor and outdoor water conservation and leak detection. On March 19, 2019 at 6:00 p.m. (Clear Creek Natural Heritage Center) a drip irrigation class will be presented by a Parks Department licensed irrigator. On March 20, 2019 at 6:00 p.m. an indoor water conservation and leak detection class will be hosted by the Sustainability Office's Conservation Program Coordinator (North Branch Library). Sustainability will also be distributing low flow fixtures such as faucet aerators and low flow shower heads at the water conservation class. By participating in this national effort, the City of Denton commits to reducing the one trillion gallons lost nationwide every year to leaks. Staff contact: Katherine Barnett, Sustainability J. Fire Station 8 Lease Space—The Fire Department is currently working with Real Estate to explore renewal options for the leased space at Medical City Denton that currently serves as a temporary Fire Station 8. The current three-year lease expires in August of 2019. In order to prevent the expiration of the existing lease, staff is proposing entering into a new one-year lease with two one-year renewal options. The City opened Station 8 in 2017 as a temporary facility to address high call volumes in southeast Denton. The Fire Department has previously presented plans for the construction of a new Station 8 to City Council and continues to evaluate funding options for this project. Staff contact: Kenneth Hedges, Fire K. Impact of March 13 Storm on Electrical Service — Early Wednesday morning, March 13,2019, a rapidly advancing thunderstorm moved across Denton. Several 5 electric distribution outages occurred across the City due to the intensity of the storm. All customer electrical power was restored by 12:55 pm. While the DFW area experienced significant outages, the City of Denton and its citizens benefited from the effective tree trimming and maintenance activities that DME performs to maximize electric system reliability and minimize the length of time that our citizens are without power during thunderstorm and emergency conditions. Overall, 730 customers experienced power outages during this event with 583 of those customers experiencing an outage of less than two minutes. The longest outage duration lasted 4 hours and 37 minutes and impacted 55 customers. Additionally, five reports of broken poles were received, two of which were Frontier communication poles with no DME infrastructure attached to them. Staff contact: George Morrow, DME L. Community Meeting for Library Master Plan—The Denton Public Library invites community members to share their thoughts, ideas, and suggestions about the Denton Public Library system. The Library is developing a plan for the future of library facilities, technology, and services and plan will provide a clear direction for the Denton Public Library for the next several years. Members of the Denton community are encouraged to attend and be active participants in the discussion on Thursday, March 21 at 7:00 p.m. in the Emily Fowler Central Library Meeting Room. The discussion will be facilitated by our consultant from Godfrey's Associates, Inc. Staff contact: Jennifer Bekker, Denton Public Library M. Congressman Burgess Emergency Preparedness Summit—Congressman Michael Burgess will hold his annual 2019 Emergency Preparedness Summit and Fair on March 23,2019 from 8:00 a.m. to 12:00 p.m. at the Trophy Club Town Hall. This year's Summit will feature a keynote address given by Dan Henry, Chief Meteorologist for KDFW/Fox 4, as well as special children's activities including "Touch the Trucks" tours of emergency vehicles and live safety demonstrations. More information is available at the event website. Staff contact: Jessica Rogers, Public Affairs N. Upcoming TxDOT Public Meetings — The Texas Department of Transportation will hold two upcoming public meetings related to construction projects in or near the City of Denton. One meeting will be held regarding State Loop 288 improvements on Thursday, March 28, 2019 from 6:00 p.m. to 8:00 p.m. at the McMath Middle School Cafeteria(1900 Jason Drive). The second meeting will be held regarding improvements to IH35 from US 380 to FM 3002. This meeting will take place on Thursday, April 4, 2019 from 6:00 p.m. to 8:00 p.m. at Sanger High School (100 Indian Lane, Sanger, TX). Representatives from TxDOT and project consultants will be available at both meetings to answer questions about the proposed projects. Staff contact: Jessica Rogers, Public Affairs O. IH35E Traffic Switch/Exit Closure—On Tuesday, March 19, 2019 at 10:00 p.m., the IH35E Northbound Main Lane of traffic will switch onto the newly constructed Northbound Main Lanes. This transition will move the north bound traffic of IH35E onto the newly constructed lanes. On Wednesday,March 20,2019 at 10:00 p.m., the IH35E Southbound Main Lane of traffic will switch onto the newly constructed Southbound Main Lanes. This transition will move the north bound 6 traffic of IH35E onto the newly constructed lanes. Delays are expected during this time and drivers are advised to follow all posted detours. Additionally,the IH35E (SB)exit ramp to Mayhill/State School Rd/FM 2499 will be closed after this traffic switch is conducted. All traffic will be exiting at the Loop 288 Exit (SB) to access Mayhill/State School Rd/FM 2499. A new IH35E (SB) exit ramp for Mayhill/State School Rd/FM 2499 will be constructed and opened within approximately a week after closure. TxDOT will notify the City regarding the planned opening of the new ramp. Staff contact: Todd Estes, Capital Projects III. Upcoming Community Events and Meetings A. Events 1. No events to report. B. Community Meetings I. Neighborhood Meeting(Service Center)—Monday,March 18,2019 at 5:30 p.m. at Facilities Management (869 Woodrow St.); Staff contact: Charlie Rosendahl 2. Denton Development Code Public Meeting — Monday, March 18, 2019 at 6:00 p.m. at Denton Civic Center(321 E. McKinney St.); Staff contact: Scott McDonald, Development Services 3. Rayzor Ranch and McKenna Park Meeting — Monday, March 18 at 6:00 p.m. at Denton Civic Center (321 E. McKinney St.); Staff contact: Gary Packan, Parks &Rec 4. McKinney Street Widening Project—Wednesday, March 20, 2019 at 6:00 p.m. at Denton Civic Center (321 E. McKinney St.); Staff contact: Noreen Housewright, Capital Projects 5. Denton Development Code Public Meeting—Thursday, March 21, 2019 at 6:00 p.m. Denton Civic Center (321 E. McKinney St.); Staff contact: Scott McDonald, Development Services 6. Sequoia Park Meeting— Thursday, March 21 at 6:00 p.m. at Denton Civic Center(321 E. McKinney St.); Staff contact: Gary Packan, Parks &Rec 7. Denton Square Design Standards and Guidelines Public Meeting—Monday, March 25, from 6:00 p.m. to 8:00 pm. at Development Services Building (215 E. Hickory St.); Staff contact: Sean Jacobson, Development Services 8. TxDOT Loop 288 Public Meeting—Thursday,March 28,2019 at 6:00 p.m. at McMath Middle School (1900 Jason Dr.); Staff contact: Mario Canizares, City Manager's Office 9. TxDOT I35 Public Meeting — Thursday, April 4, 2019 at 6:00 p.m. at Sanger High School (100 Indian Lane, Sanger, TX); Staff contact: Mario Canizares, City Manager's Office IV. Attachments A. Denton Selected for NLC Community Resilience Program Press Release (p. 9) B. Fire Station#3 (McCormick St. Underwood St.) Road Closure (p. 11) C. H.B. 375 (p. 12) D. Notice of Public Meeting for Input on Sequoia Park Press Release (p. 13) V. Informal Staff Reports A. 2019-049 Dumpsters Located on Sidewalks (p. 14) B. 2019-050 S&P Surveillance Rating (p. 18) C. 2019-051 Atmos Energy Update (p. 55) D. 2019-052 Manufactured Home Financial Risk Disclosures (p. 57) E. 2019-053 Housing Bonds and Inclusionary Zoning (p. 66) VI. Council Information A. Council Meeting Requests for Information (p. 70) B. Other Council Requests for Information (p. 71) C. Draft Agenda for March 26 (p.73) D. Council Calendar (p.79) E. Future Work Session Items (p. 82) F. Street Construction Report(p. 83) 8 -40 o FOR IMMEDIATE RELEASE DENTON Jessica Rogers • (940) 349-7531 • Jessica.Rogers@cityofdenton.com Denton Selected for Prestigious Resiliency Program with the National League of Cities Denton is one of eight cities that will receive support DENTON, TX, March 12, 2019—Today, the National League of Cities (NLC) announced that the City of Denton will join the 2019 cohort of the Leadership in Community Resilience Program. Each of the eight cities chosen will receive $10,000 in direct financial support as well as technical assistance and professional development opportunities to help them meet community-specific resiliency goals. The eight cities selected for the 2019 Leadership in Community Resilience Program are: Anchorage, Alaska; Ann Arbor, Michigan; Denton, Texas; Durham,North Carolina; Evanston, Illinois; Jersey City,New Jersey; Park City, Utah; and Roeland Park, Kansas. "From the western fires to the increased hurricane activity ravaging the coasts, climate change is a real threat to our nation's cities, towns and villages," said Clarence E. Anthony, CEO and executive director of the NLC. "We are excited to welcome eight new cities to our annual Leadership in Community Resilience Program. Through collaboration, innovative approaches, and an unmatched passion for supporting their communities, I'm confident that these local leaders will advance policies and programs to address their biggest local challenges." The City of Denton was interested in participating in the cohort this year to build upon annual Greenhouse Gas (GHG) Inventories that have been completed, as well as projects currently underway to complete a GHG Contribution Analysis and a Climate Hazards and Vulnerabilities assessment. Having a complete understanding of the challenges facing the community and the ability to use data to prioritize education and local action is key to the success of the City's sustainability programs. Now in its third year, the Leadership in Community Resilience program is generously supported by the National Fish and Wildlife Foundation and Wells Fargo. NLC also announced that the program had established technical assistance partnerships with the Thriving Earth Exchange and ecoAmerica, which will provide additional tools and resources to support the cohort of cities. To apply for the program, officials from each city submitted a proposal detailing a specific resiliency challenge in their community and a proposed event or project that could address it. Past participants used their involvement as a springboard to form invaluable partnerships, hold resiliency summits and workshops, and implement innovative infrastructure projects. "I am so proud of the work being done by our Sustainability staff and the collaborative leadership of our Council Committee on the Environment," said Council Member Keely Briggs and Chair of the Council Committee on the Environment. "Qualifying for this innovative program and grant from the National League of Cities Sustainable Cities Institute places Denton OUR CORE VALUES Integrity•Fiscal Responsibility•Transparency• Outstanding Customer Service ADA/EOE/ADEA www.cityofdenton.com TDD(800)735-2989 9 in a class of sister cities that are aggressively working to not only improve the sustainability of their own communities, but to serve as leading examples for cities across the country." The goal of this program is to generate new insights related to the challenges and opportunities associated with local resilience initiatives. In the coming years, the lessons learned through this process will be used to help hundreds of NLC member cities achieve greater resiliency for their residents and prepare the nation for the effects of climate change and other hazards. Additional information regarding the City's sustainability programs can be found at www.sustainabledenton.com. Contact: Katherine Barnett, (940) 349-8202, katherine.barnett cityofdenton.com Visit www.cityofdenton.com for more news and to stay updated. 2 10 ter ""'I. N or r• .~, r:'- t"A _ .� rT _ ._ ili•� t`�� r r - ��`Art 'r •�! � - iw WORK MM ► w ell it w A 1, P, , ,,�• °�= �. pip ry CLORED A... ` `� 11 �. ROADO 1 r• CLOSED � % AHEAD 1 e p D WORK _S' '-��i'A �• - ,� •A 9 A � � I' - AHEAD `�t .` -•\� - J I , - "/ RG2a2 Jim ; • �! y �."" 120ft -'-� 7 • ROADh°'o 120ft 120ft `` `t-�' i n 7 7► A• i I! I M2o wow 120ftgI t .. _ ROAo END ROAD WORK .f. ;.. ► c `•r ` •� M Q r r ROADWORK,f r G242 Y. 'L. ` A• r >. •� Work 1 � A' �'�.`�' kin4.t �_ v- . P I SALESMAN/EXECUTIVE NOTES NTRAo Jeremiah Keys NTA T CityOf Denton Jody STrickland Denton BUYERS TCP DESIGNER NTA�TN�MD DNAME Daniel E. Lo eZ E 940-349-7255 Fire Station#3 EST � A R RICADES 1984 LOCATION THIS PLAN IS FOR ILLUSTRATIVE PURPOSES ONLYAND 03/11/2019 McCormick St&Underwood St IS NOT INTENDED TO RELI VE THE CONTRACTOR FROM THE REQUIREMENTS SET FORTH BY RELATED CONTRACT score or woRK All Traffic Control Plans(TCPs)are the property of Buyers DOCUMENTS,THE TEXAS MANUAL ON UNIFORM TRAFFIC Devices spa��d on 20ft centers Barricades,Inc.and are included with Buyers Barricades CONTROL DEVICES(MUTCD)OR THE OVERALL I.rl Type 3 Barricade Permanent Rd Closure rental agreements.Traffic Control Plans issued without a RESPONSIBILITY TO TRAFFIC CONTROL SAFETY. yP Posted speed limit 30MPH rental agreement will be charged to the customer. By: Hinojosa H.B . No . 375 A BILL TO BE ENTITLED 1 AN ACT 2 relating to the designation of polling place locations on the 3 campuses of certain institutions of higher education. 4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS : 5 SECTION 1. Subchapter A, Chapter 43 , Election Code , is 6 amended by adding Section 43 . 008 to read as follows : 7 Sec . 43 . 008 . CAMPUS POLLING PLACE . The commissioners court 8 of a county shall designate as a polling place a location on the 9 main campus of an institution of higher education as defined by 10 Section 61. 003 , Education Code , located within the county if at 11 least 10 ,000 students are enrolled in the institution. 12 SECTION 2 . This Act takes effect September 1, 2019 . 86R4066 JRJ-D 1 12 -40 o FOR IMMEDIATE RELEASE DENTON Jessica Rogers • (940) 349-7531 • Jessica.Rogers@cityofdenton.com Notice of Public Meeting for Input on Sequoia Park Denton Civic Center, March 21 at 6 p.m. DENTON, TX, March 13, 2019 — The City of Denton Parks and Recreation Department is hosting a meeting for public input on Sequoia Park and the potential for new developments in the park that could be considered as part of the future Parks master plan. Sequoia Park is a 5.5 acre neighborhood park located at 1400 E. University Dr. with a 0.41 mile concrete trail. The public meeting will be held on Thursday, March 21 at 6 p.m. in the Community Room at the Denton Civic Center, 321 E. McKinney St. A staff representative from the Parks and Recreation Department will be on site to provide information and receive input. Residents unable to attend are welcome to submit input via email to Gary Packan, Director of Parks and Recreation at gary_packankcityofdenton.com or call (940) 349-7460. Contact: Gary Packan, (940) 349-7460, Gary.Packan@cityofdenton.com OUR CORE VALUES Integrity•Fiscal Responsibility•Transparency• Outstanding Customer Service ADA/EOE/ADEA www.cityofdenton.com TDD(800)735-2989 13 Date: March 15,2019 Report No. 2019-049 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide an overview of the Solid Waste Departm ent's plans to address dum psters located on sidewalks. BACKGROUND & DISCUSSION: On December 21, 2018, the City Council received an informal staff report(ISR)regarding compromised sidewalk accessibility due to the placem ent of solid waste and recycling dumpsters. For several years, staff has attem pted to address this issue by requesting property owners to voluntarily m ove their dum psters or ch ange to an alte rnative form of solid waste service such as cart collection. Those efforts were met with mixed results, and staff was asked by Council and the Public Utilities Board to consider mandatory compliance. In December, there were thirty-one (31) dumpsters in the city that were obstructing some portion of a public sidewalk. The Decem her ISR outlined staff plans to remove the dumpsters from the sidewalks by again requesting voluntary compliance from property owners and tenants. To date, letters have been distributed to tenants and owners of these properties, and Solid Waste staff has discussed service alternatives with most of the affected customers. As of March 13, 2019, twenty-fiv e (25) of the thirty-one ( 31) customers have voluntarily complied with Solid Waste's request to either relocate their dumpster or adopt an alternative refuse/recycling container. Of the six (6) rem aining customers, three (3) properties are working with staff to voluntarily comply, and we are still diligently working to make contact with one (1) customer. The two (2 ) remaining non-compliant properties have refused reasonable and cost neutral solutions to address the issue. In order to address the non-compliant properties, staff will be issuing a thirty(30) day notice that requires customer compliance no later than April 15, 2019. Any dumpster remaining on a sidewalk on April 16, 2019 will be collected by Solid Waste staff and a reasonable solution will be provided. Without considering other agreements and allowances that m ay be in place for specific locations, Section 24-68 of the Code of Ordinances perm its the director of Solid W aste to locate and place containers in accordance with the waste storage needs of individual commercial, industrial and institutional facilities. Please feel free to contact me if you have additional questions or concerns. ATTACHMENT(S): Exhibit 1 —30 Day Notice Letter 14 Date: March 15, 2019 Report No. 2019-049 STAFF CONTACT(S): Ethan Cox Director of Solid Waste (940) 349-7421 Ethan.C oxkcityofdenton.com 15 01 y Solid Waste and Recycling Department DENTON 1527 S. Mayhill Rd., Denton, TX 76208 • (940) 349-8080 March 15, 2019 [Recipient's Name] [Title] [Company/Organization] [Address Line 1] [Address Line 2] [Address Line 3] Dear [Recipient]: The Americans with Disabilities Act(ADA)requires that sidewalks be unobstructed and accessible to all individuals with disabilities, including individuals who use wheelchairs, resulting in the need for minimum clearance and width standards to be met. Our records indicate that a dumpster assigned to your property is currently obstructing a public sidewalk. To ensure compliance with Title II of the Americans with Disabilities Act (ADA), the City of Denton's Solid Waste Department will be removing all refuse and recycling dumpsters that are blocking public sidewalks on April 16, 2019. This letter serves as notice that your dumpster will be removed if you do not take action within the next thirty (30) days. Should your dumpster be removed, you will be provided with solid waste collection services in accordance with Section 24-68 of the Code of Ordinances which permits the director of Solid Waste to locate and place containers in accordance with the waste storage needs of the property. We ask that you contact us immediately to arrange for the relocation of your dumpster and/or select an alternative container for your City of Denton refuse and recycling collection service. You may contact me directly at 940-349-8027 or brandi.neal(kcityofdenton.com. Sincerely, Brandi Neal Business Account Coordinator OUR CORE VALUES Integrity• Fiscal Responsibility•Transparency• Outstanding Customer Service ADA/EOE/ADEA www.cityofdenton.com TDD(800)735-2989 16 `may of DEjV�O 2 o ` 'o�gSTE& 2 17 Date: March 15,2019 Report No. 2019-050 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Surveillance Rating for Series 2017 Utility System Revenue Bonds by Standard& Poor's Global Ratings (S&P). BACKGROUND: Over the last few weeks, staff has been working with S&P 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 March 15, 2019, the City has $330,704,750 in outstanding principal and interest remaining with final maturity being December 1, 2037. S&P has affirmed (maintained) the same "AA-"rating with Stable Outlook from the initial offering (Attachment 1). DISCUSSION S&P, 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, are generally conducted every few years and result in a public release on the stat us of the rating. W hile the interest the City pays on outstanding bonds will not be impacted by the surveillance rating, it cold have an impact in 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 th e 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. S&P 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 18 S&P Global Ratings RatingsDirect CRJ Summary: Denton, Texas; Combined Utility Primary Credit Analyst: Scott W Sagen,New York(1)212-438-0272;scott.sagen@spglobal.com Secondary Contact: Doug Snider,Centennial+ 1 (303) 721 4709;doug.snider@spglobal.com Table Of Contents ............................................................................................................. Rationale Outlook WWW.STANDARDANDPOORS.COM/BATINGS�DIRECT MARCH 14, 2019 1 Summary: Denton, Texas; Combined Utility CreditProfile Denton comb util Long Term Rating AA-/Stable Affirmed Rationale S&P Global Ratings affirmed its 'AA-'rating on Denton,Texas'utility system revenue debt. The outlook is stable. A first-lien pledge of net revenues of Denton's combined electric,water, and sewer systems secure the bonds.The electric system accounted for a significant 73%of total operating revenue in fiscal 2018,which is the focus of our analysis. The combined utility had$785 million in total debt outstanding at the end of fiscal 2018,including$544 million in general obligation(GO)and certificates of obligation debt. The rating reflects the application of our"U.S. Municipal Retail Electric And Gas Utilities: Methodology And Assumptions" criteria(published Sept. 27, 2018, on RatingsDirect). The rating also reflects our opinion of the system's very strong enterprise and financial risk profiles. The enterprise risk profile reflects our view of the system's: extremely strong income levels that benefits from participating in the deep employment base of the Dallas-Fort Worth metropolitan area; that will likely decline following rate decreases in 2018 and 2019 due to lower energy and fixed costs; and supply based on wind and solar energy firmed up through owned gas-fired peaking generation and market purchases. Denton expects to add wind and solar purchased power agreements (PPAs)by the end of 2020,which will more than double its current renewable generation capacity.We consider the utility's financial management policies and practices very strong,including monthly review of its power cost adjustment factor based on changes in fuel and purchased power costs, and annually updating its formal multiyear capital planning and financial forecasts. The financial risk profile reflects our view of the system's: years,though the utility projects metrics could equal at least 1.5x beginning in 2020 as purchased power and related fixed costs are expected to decline; WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 20 MARCH 14, 2019 2 Summary:Denton, Texas; Combined Utility audited fiscal 2018 after including its $46 million rate mitigation fund that provides financial flexibility; and that 30%of the utility's debt profile was issued to fund peaking generation capacity and 20%of its debt burden is water and sewer-related debt. Outlook The stable outlook reflects our view of Denton's transition to a lower-cost power supply,likely resulting in more competitive electric rates and maintenance of very strong fixed-charge coverage and extremely strong liquidity as it plans to cash fund more than half of its capital improvement plan (CIP). Upside scenario We do not expect to raise the rating over the next two years given Denton's additional debt needs that will likely prevent a material improvement in projected fixed-charge coverage metrics. Downside scenario We could lower the rating if the utility's market position does not improve as expected or if additional debt needs cause weaker-than-expected fixed-charge coverage no longer supportive of the current rating. 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. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings'public website at www.standardandpoors.com. Use the Ratings search box located in the left column. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 21 MARCH 14, 2019 3 Copyright©2018 by Standard&Poor's Financial Services LLC.All rights reserved. No content(including ratings,credit-related analyses and data,valuations,model,software or other application or output therefrom)or any part thereof(Content)may be modified,reverse engineered,reproduced or distributed in any form by any means,or stored in a database or retrieval system,without the prior written permission of Standard&Poor's Financial Services LLC or its affiliates(collectively,S&P).The Content shall not be used for any unlawful or unauthorized purposes.S&P and any third-party providers,as well as their directors,officers,shareholders,employees or agents(collectively S&P Parties)do not guarantee the accuracy,completeness,timeliness or availability of the Content.S&P Parties are not responsible for any errors or omissions(negligent or otherwise),regardless of the cause,for the results obtained from the use of the Content,or for the security or maintenance of any data input by the user.The Content is provided on an"as is"basis.S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES,INCLUDING,BUT NOT LIMITED TO,ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE,FREEDOM FROM BUGS,SOFTWARE ERRORS OR DEFECTS,THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION.In no event shall S&P Parties be liable to any party for any direct,indirect,incidental,exemplary,compensatory,punitive, special or consequential damages,costs,expenses,legal fees,or losses(including,without limitation,lost income or lost profits and opportunity costs or losses caused by negligence)in connection with any use of the Content even if advised of the possibility of such damages. Credit-related and other analyses,including ratings,and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions,analyses and rating acknowledgment decisions(described below)are not recommendations to purchase,hold,or sell any securities or to make any investment decisions,and do not address the suitability of any security.S&P assumes no obligation to update the Content following publication in any form or format.The Content should not be relied on and is not a substitute for the skill,judgment and experience of the user,its management,employees,advisors and/or clients when making investment and other business decisions.S&P does not act as a fiduciary or an investment advisor except where registered as such.While S&P has obtained information from sources it believes to be reliable,S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives.Rating- related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees,including,but not limited to,the publication of a periodic update on a credit rating and related analyses. To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes,S&P reserves the right to assign,withdraw or suspend such acknowledgment at any time and in its sole discretion.S&P Parties disclaim any duty whatsoever arising out of the assignment,withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities.As a result, certain business units of S&P may have information that is not available to other S&P business units.S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. S&P may receive compensation for its ratings and certain analyses,normally from issuers or underwriters of securities or from obligors.S&P reserves the right to disseminate its opinions and analyses.S&P's public ratings and analyses are made available on its Web sites,www.standardandpoors.com(free of charge),and www.ratingsdirect.com and www.globalcreditportal.com(subscription),and may be distributed through other means,including via S&P publications and third-party redistributors.Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees. STANDARD&POOR'S,S&P and RATINGSDIRECT are registered trademarks of Standard&Poor's Financial Services LLC. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 22 MARCH 14, 2019 4 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. 23 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 24 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 25 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 26 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 27 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 28 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 29 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 30 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 31 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 32 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 33 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 34 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 35 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 36 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 37 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 38 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 39 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 40 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 41 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 42 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 43 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 44 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 45 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 46 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 47 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. Source:Denton(TX),Fitch. Denton,Texas 10 January 3,2017 48 FitchRatings Public Finance The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM.PUBLISHED RATINGS,CRITERIA,AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES.FITCH'S CODE OF CONDUCT,CONFIDENTIALITY,CONFLICTS OF INTEREST,AFFILIATE FIREWALL, COMPLIANCE,AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE.FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES.DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright©2017 by Fitch Ratings,Inc.,Fitch Ratings Ltd.and its subsidiaries.33 Whitehall Street,NY,NY 10004.Telephone: 1-800-753-4824,(212)908-0500.Fax:(212)480- 435.Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information),Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible.Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology,and obtains reasonable verification of that information from independent sources,to the extent such sources are available for a given security or in a given jurisdiction.The manner of Fitch's factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer,the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located,the availability and nature of relevant public information,access to the management of the issuer and its advisers,the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties,the availability of independent and competent third-party verification sources with respect to the particular security or in the particular jurisdiction of the issuer,and a variety of other factors.Users of Fitch's ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately,the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports.In issuing its ratings and its reports,Fitch must rely on the work of experts,including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters.Further,ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts.As a result,despite any verification of current facts,ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided"as is"without any representation or warranty of any kind,and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report.A Fitch rating is an opinion as to the creditworthiness of a security.This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating.Therefore,ratings and reports are the collective work product of Fitch and no individual,or group of individuals,is solely responsible for a rating or a report.The rating does not address the risk of loss due to risks other than credit risk,unless such risk is specifically mentioned.Fitch is not engaged in the offer or sale of any security.All Fitch reports have shared authorship.Individuals identified in a Fitch report were involved in,but are not solely responsible for,the opinions stated therein.The individuals are named for contact purposes only.A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled,verified and presented to investors by the issuer and its agents in connection with the sale of the securities.Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch.Fitch does not provide investment advice of any sort.Ratings are not a recommendation to buy,sell, or hold any security. Ratings do not comment on the adequacy of market price,the suitability of any security for a particular investor,or the tax-exempt nature or taxability of payments made in respect to any security.Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000(or the applicable currency equivalent)per issue.In certain cases,Fitch will rate all or a number of issues issued by a particular issuer,or insured or guaranteed by a particular insurer or guarantor,for a single annual fee.Such fees are expected to vary from US$10,000 to US$1,500,000(or the applicable currency equivalent).The assignment,publication,or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws,the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia,New Zealand,Taiwan and South Korea only:Fitch Australia Ply Ltd holds an Australian financial services license (AFS license no. 337123)which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001. Denton,Texas 11 January 3,2017 49 S&P Global Ratings RatingsDirect® .............................................................................................................. Summary: Denton, Texas; Combined Utility Primary Credit Analyst: Jeffrey M Panger,New York(1)212-438-2076;jeff.panger@spglobal.com Secondary Contact: Scott W Sagen,New York(1)212-438-0272;scott.sagen@spglobal.com Table Of Contents ............................................................................................................. Rationale Outlook WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 19,2016 1 50 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 51 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 52 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. Complete ratings information is available to subscribers of RatingsDirect at www.globalcreditportal.com.All ratings affected by this rating action can be found on the S&P Global Ratings'public website at www.standardandpoors.com. Use the Ratings search box located in the left column. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 19,2016 4 53 1776195 1302491962 Copyright©2016 by Standard&Poor's Financial Services LLC.All rights reserved. No content(including ratings,credit-related analyses and data,valuations,model,software or other application or output therefrom)or any part thereof(Content)may be modified,reverse engineered,reproduced or distributed in any form by any means,or stored in a database or retrieval system,without the prior written permission of Standard&Poor's Financial Services LLC or its affiliates(collectively,S&P).The Content shall not be used for any unlawful or unauthorized purposes.S&P and any third-party providers,as well as their directors,officers,shareholders,employees or agents(collectively S&P Parties)do not guarantee the accuracy,completeness,timeliness or availability of the Content.S&P Parties are not responsible for any errors or omissions(negligent or otherwise),regardless of the cause,for the results obtained from the use of the Content,or for the security or maintenance of any data input by the user.The Content is provided on an"as is"basis.S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES,INCLUDING,BUT NOT LIMITED TO,ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE,FREEDOM FROM BUGS,SOFTWARE ERRORS OR DEFECTS,THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED,OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION.In no event shall S&P Parties be liable to any party for any direct,indirect,incidental,exemplary,compensatory,punitive,special or consequential damages,costs,expenses,legal fees,or losses(including,without limitation,lost income or lost profits and opportunity costs or losses caused by negligence)in connection with any use of the Content even if advised of the possibility of such damages. Credit-related and other analyses,including ratings,and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact.S&P's opinions,analyses,and rating acknowledgment decisions(described below)are not recommendations to purchase, hold,or sell any securities or to make any investment decisions,and do not address the suitability of any security.S&P assumes no obligation to update the Content following publication in any form or format.The Content should not be relied on and is not a substitute for the skill,judgment and experience of the user,its management,employees,advisors and/or clients when making investment and other business decisions.S&P does not act as a fiduciary or an investment advisor except where registered as such.While S&P has obtained information from sources it believes to be reliable,S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes,S&P reserves the right to assign,withdraw,or suspend such acknowledgement at any time and in its sole discretion.S&P Parties disclaim any duty whatsoever arising out of the assignment,withdrawal,or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities.As a result,certain business units of S&P may have information that is not available to other S&P business units.S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process. S&P may receive compensation for its ratings and certain analyses,normally from issuers or underwriters of securities or from obligors.S&P reserves the right to disseminate its opinions and analyses.S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com(free of charge),and www.ratingsdirect.com and www.globalcreditportal.com(subscription)and www.spcapitaliq.com (subscription)and may be distributed through other means,including via S&P publications and third-party redistributors.Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees. STANDARD&POOR'S,S&P and RATINGSDIRECT are registered trademarks of Standard&Poor's Financial Services LLC. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT DECEMBER 19,2016 5 54 1776195 1302491962 Date: March 15, 2019 Report No. 201 9-051 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Update relating to Atmos Energy's efforts to detect gas leaks and improve infrastructure,including information on how the City partners with Atmos to coordinate construction projects and communications. EXECUTIVE SUMMARY: In addition to increases in planned pipeline replacement projects,Atmos Energy has deployed leak detection vehicles within the City of Denton to increase leak detection capabilities. With the increase in planned and unplanned repair and replacement activities, continued staff coordination with Atmos will be critical. BACKGROUND: Atmos Energy Corporation, headquartered in Dallas, is the country's largest, fully-regulated, natural-gas-only distributor, serving over 3 million natural gas distribution customers in over 1,400 communities in eight states. As a natural gas franchisee with the City of Denton, Atmos operates and maintains 393 miles of pipeline serving 21,738 customer accounts. Increased Investments and Leak Detection Atmos has steadily increased its infrastructure within the City of Denton has seen a similar rise. Of the $24 million that Atmos invested in its system within the city of Denton since 2011, $8.8 million occurred within the last year. Much of this capital investment activity is related to the replacement of older distribution pipelines. Denton's gas distribution system no longer includes cast iron pipes, with Atmos reporting that the system is 69.8%plastic polyethylene, 22.4% coated steel, and 7.8%bare steel. Much of this investment is designed to reduce or prevent leaks in the pipeline system. Leaks are primarily caused by accidental damage from a third-party, corrosion, or other environmental factors. When a leak is reported or detected, Atmos will assign the leak a priority level in accordance with state and federal guidelines. Leaks with the highest priority level receive immediate attention. Atmos has launched a new leak detection technology system within the city of Denton—Leak Detection Vehicles. As these leak detection vehicles drive throughout the city, they detect faint plumes of methane in the air. The methane data is catalogued and mapped to narrow down an approximate location of a possible leak. Field crews are then dispatched to do a more thorough investigation.Additionally,leak detection vehicles will primarily drive at night due to the ability to achieve more accurate data collection during that time. Considering the planned increases in pipeline replacement, expected increases in repairs due to enhanced leak detection capability, and overall development growth within Denton, residents and businesses should expect to see a high level of Atmos activity for the foreseeable future. 55 Date: March 15, 2019 Report No. 2019-051 Partnering with Atmos The coordination of construction and repair projects between City staff and Atmos is a critical and ongoing component in our partnership. This coordination ensures that street and pipeline projects are planned to minimize the adverse impact each organization's projects have on the assets of the other and to minimize the overall impact to the Denton community. At the heart of this partnership is the sharing of the City's long-term capital project plans with Atmos. They are then re-engaged at different project design milestones and at project design completion. With this information, Atmos can determine which of their assets require relocation or can proactively plan to replace assets as the same time the City project is in active construction. This is most advantageous for street construction projects where Atmos can replace older pipe after the old pavement is removed,but before the new pavement is laid down. The City meets with Atmos representatives, as with other franchise utilities, on a monthly basis to discuss active and planned projects and coordinate construction schedules. Communicating to the Denton CommunitX The City also partners with Atmos in communicating important information regarding road closures, detours, and general gas infrastructure project updates to the public. The Public Affairs and Capital Projects departments work with Atmos to gather project information one to three weeks in advance of the actual start date so that a communications plan and language can be prepared. If an Atmos project is tied to a City construction project or is expected to have a significant impact to traffic, it is included in the Street Construction Report that is available on the City of Denton website and included in the Friday Report every week. In the cases of emergency closures, email notifications are sent to Improving Denton subscribers and the information is posted on our social media channels. CONCLUSION: Atmos Energy continues to increase its investment in capital infrastructure and deployment of leak detection technologies within Denton.As Atmos activity increases,City staff will continue to work closely to maintain project efficiency and to minimize the adverse impacts to the public. ATTACHMENT(S): Atmos 2018 Mid-Tex Operations Report (hardcopy provided in Council Packet) STAFF CONTACT: Ryan Adams Assistant to the City Manager (940) 349-8565 Ryan.Adamsgcityofdenton.com 56 Date: March 15,2019 Report No. 2019-052 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Information on the City of Denton's ability to facilitate the communication of financial risks relating to purchase of a manufactured home. EXECUTIVE SUMMARY: On Jan. 8, 2019, Council Mem ber Meltzer requested information on the feasibility of requiring disclosure of the unique financial risk to prospective buyers of manufactured homes (historically referred to as "mobile homes") within manufactured/mobile home developments. While a local ordinance requiring a disclosure is not pre-empted by state or federal law, alternative options that involve working with local manufactured home parks and real estate agents may provide effective communication without increasing the risk of legal liability to the City. BACKGROUND: Manufactured homes generally refe r to a s ingle-family structure constructed in a factory and conforms to the standards required by the U.S. Department of Housing and Urban Development (HUD). These homes are equipped with non-removable chassis so that they may be transported from the factory or sales site to a permanent or non-permanent location. While the chassis allows for transport, manufactured homes are intended to be stationary over a long period of ti me and should not be confused with recreational vehicl es (RV). HUD i mposes building standards for manufactured homes and, when those standards ar a met, requires a certification label (a"HUD tag")to be affixed to the home. Housing and Urban Development(HUD) Oversight The Safety Standards Act of 1974 authorizes HUD to establish federal standards for the design and construction of manufactured homes to assure quality, durability, safety, and affordability. Since 1976, manufactured homes have been subject to the Manufactured Home Construction and Safety Standards (the "HUD code" ) that regulates the home's design a nd construction, strength and durability, transportability, fire resistance, energy efficien cy, and quality control. HUD enforces these standards directly or through State Administrative Agencies, inspects factories and retailer lots, regulates installation s tandards for the horn es, administers a dispute resolu tion program for defects, establishes and collects a fee for each home built, authorizes a certification label to be placed on horn es that meet the HUD standards, and pursues a civil or crim inal action for violations of the Safety Standards Act. HUD or its State Administrative Agency offer many resources for potential manufactured home buyers,particularly on how to seek resolution to performance- or safety-related def ects in the manufacture of the horn e. Re tailers and manufacturers are required by law to correct these defects if they create an unreasonable risk of injury or death or are related to design or assembly errors. Risk Disclosure or Notification The Texas Departm ent of Housing and Co mmunity Affairs (TDHC A) is the HUD State Administrative Agency for Texas and is responsible for enforcing in anufactured home 57 Date: March 15,2019 Report No. 2019-052 requirements at the state level. As part of purchasing paperwork for the retail sales of new or used manufactured homes, TDHCA requires that the purchaser sign a disclosure form that outlines financial issues, options, and risks for the purchaser to consider(see attached form). This form is not required in cas es of non-retail sales of used homes. In s ituations where a manufactured home or mobile home park requires ownership of any home within the park,the sale may involve little more than a title transfer and exchange of funds. Other sales in ay involve the use of standard Texas Real Estate Commission(TREC) forms; however, even in these cases there is no specific financial disclosure related to manufactured homes. As a home rule City, Denton is not pre-empted by the state of Texas in its ability to require certain notifications or disclosures be in ade at a point of sale. It is im portant to note that the lack of restriction does not alleviate other risks and con cern in such an action. Requiring the disclosure of any financial risks to ownership of a manufactured home could leave the city open to claims of tortious interference with a business relation or contract. Additionally, an equal protection claim could be in ade if the City is not in aking similar requirements of othe r similarly situated transactions, such as requiring the disclosure for manufactured homes, but not s ite-built single- family homes. A communications cam paign would be necessary to ensure that there is b road awareness of the local disclosure law with thos e parties who would be potentially involved in a manufactured home sale within the City of Denton. Alternatives to Required Disclosures As an alternative to a local ordinance compelling the disclosure of financial risks or concerns to manufactured home purchasers would be for staff to work in pa rtnership with the management teams of manufactured home parks to distribute information to potential buyers when opportunities present themselves. Such managers have an interest in maintaining ownership stability within the manufactured home park and a high rate of owners hip turnover can adversely impact the proper maintenance and upkeep of those properties and potentially erode property values of other nearby manufactured homes. Additionally, to the extent that sales transactions involve licensed real estate agents, staff has the ability to p artner with local li censed real es tate agents, and local real estate professional organizations, to encourage the communication of financial risks through a disclosure-like form or document. Real estate agents have less in centive to be concerned with the ongoing financial stability of the purchaser beyond the actual transaction, so it is possible this option may not result in a broad use of any disclosure or informational documents. CONCLUSION: In non-retail transactions, the City of Denton is not restricted from requiring a disclosure form to be used; however,in doing so the City may be open to certain legal liabilities. Additional research is needed on how to effectively deploy a disclosu re if the Council were to proceed in this policy direction. Non-ordinance alternatives are available,particularly working with manufactured home park managers to communicate financial risks to potential home purchasers. 58 Date: March 15,2019 Report No. 2019-052 ATTACHMENT(S): TDHCA Manufactured Home Disclosure Form STAFF CONTACT: Ryan Adams Assistant to the City Manager (940) 349-8565 Ryan.Adamsgcityofdenton.com 59 Texas Department of Housing and Community Affairs MANUFACTURED HOUSING DIVISION P. O.BOX 12489 Austin,Texas 78711-2489 (877)313-3023,(512)475-2200,FAX-(512)475-3506 Internet Address: www.tdhca.state.tx.us/mh/index.htm MAKING AN INFORMED DECISION ABOUT BUYING A MANUFACTURED HOME IF YOU HAVE QUESTIONS CALL 1-877-313-3023 W W W.TDHCA.STATE.TX.US/MH Ownership of ANY home brings many responsibilities. Buying a manufactured home involves many important and unique considerations. T his disclosure is to assist you in recognizing and understanding many of those factors. Please read it carefully. CHOOSING A MANUFACTURED HOME AS YOUR HOME: Manufactured homes come in a variety of sizes, styles, design features, amenities, and price ranges. All manufactured homes are built to federal standards established by the federal Department of Housing and Urban Development (HUD). Also, the federal government and the state of Texas require manufacturers, retailers and installers to give certain warranties on manufactured homes. The type of warranties you receive will depend on whether you are purchasing a new or used manufactured home. You have the right to see the manufacturer's warranty and the retailer's warranty before entering into a sales purchase contract to purchase a manufactured home. initials CHOOSING A MANUFACTURED HOME RETAILER: The State of Texas licenses and oversees manufacturers, retailers, brokers, salespersons, and installers of manufactured homes. The agency responsible for this licensing and oversight is the Texas Department of Housing and Community Affairs, Manufactured Housing Division (the "Department"). Your properly licensed manufactured home retailer should display, or be willing to show you, its license in its sales office. Dealing with licensed parties can provide important consumer protections. initials DEPOSITS: You may be required by a manufactured home retailer to place a deposit on a home, regardless of whether the home is on the retailer's sales lot, is being sold at another location, or will be ordered from a factory. The amount of the deposit is determined between you and your retailer. The deposit becomes a down payment upon execution of a binding sales purchase contract. initials MHD FORM 1038/Consumer-Disclosure.doc Page 1 of 6 Rev.10/12/2018 60 REFUNDS: You have the right to demand a refund of the deposit or down payment, and receive that refund within 15 days thereafter, if you timely and properly rescind the sales purchase contract. A retailer may keep up to 5% of the estimated cash price if the consumer specially orders from the manufacturer a manufactured home that is not in the retailer's inventory, the home conforms to the specifications of the special order and any representations made to the consumer, the consumer fails or refuses to accept delivery and installation of the home by the retailer, and the consumer was given conspicuous written notice of the requirements for retaining the deposit. A retailer may deduct from your deposit or down payment for any expenses incurred by the retailer if you contract with the retailer to arrange for services that are performed by an appraiser of real property or a title company in connection with real property that will be included in the purchase or when real property is pledged by you as collateral for the purchase of the manufactured home. The retailer must provide notice of laws relating to rescission and real property appraisal and title work expenses before signing the contract for real property appraisal and title work services. The retailer must also provide an itemized list of the specific real property appraisal and title work expenses incurred by the retailer. initials FINANCING OPTIONS: A manufactured home in Texas has tremendous flexibility when it comes to financing because it can be financed as personal property (typically a consumer loan secured by the home only) or, if you own the land the home is on (or have a qualifying long term lease on the land) as real property (typically a mortgage loan secured by the home and the land). You should talk to possible lenders about the terms they can offer. If you think one lender is offering too high a rate, talk to another lender. Consumer lenders must generally be registered with the Office of the Consumer Credit Commissioner. Mortgage loans are usually originated by mortgage brokers (licensed with the Savings and Mortgage Lending Department), mortgage bankers (registered with the Savings and Mortgage Lending Department), or financial institutions (regulated by state and/or federal regulators, depending on the type of financial institution). WHEN YOU MAKE A DECISION ABOUT BUYING A MANUFACTURED HOME,PLAN FOR FLEXIBILITY AND CHANGE. YOUR LOAN WILL BE A MAJOR FACTOR IN DETERMINING YOUR PAYMENTS, BUT THERE ARE OTHER IMPORTANT FACTORS YOU SHOULD ALSO THINK ABOUT, SUCH AS: ■ Adjustable rate loans—If rates go up, your loan payments will go up. ■ Property taxes — Changes in property valuation and changes in tax rate can result in changes in your payments. ■ Insurance—If premiums increase, your payments will go up. ■ Lot rent — If you are renting the lot your home is on, your rent may be subject to increase. initials MHD FORM 1038/Consumer-Disclosure.doc Page 2 of 6 Rev.10/12/2018 61 LOCAL RESTRICTIONS AND REQUIREMENTS (ZONING): Depending on where a home is to be located it may be subject to special local requirements, including zoning and deed restrictions. T hese local requirements may affect where the home can be placed and may also involve other related requirements (and expenses) such as size requirements, construction requirements. Contact the local municipality, county, and subdivision manager to find out what, if any, requirements of this sort may apply to any site where you are going to place a manufactured home. initials SITE PREPARATION: The installer is responsible for proper preparation of the site where a new manufactured home is to be installed. A consumer is responsible for proper preparation of the site where a used manufactured home is to be installed. If you do not think you can prepare your site properly, consider hiring someone else with the right experience and equipment to do it for you. Proper site preparation includes a site for placement of the home that has good drainage so that water will not collect or run under or around the home; and firm compacted soil with no stumps, debris, or other matter. The site that is selected and prepared also needs to meet any setback or other placement requirements and have access to any required water, septic system, and utilities. PROPER SITE PREPARATION IS ESSENTIAL! initials INSTALLATION: If you are purchasing a N EW manufactured home. Installation must be included. If you are purchasing a USED manufactured home, installation may or may not be included. If installation is not included and you arrange for it yourself, remember, ONLY A LICENSED INSTALLER may install a manufactured home. The installer who actually installs the home must also provide a warranty. PROPER INSTALLATION BY A LICENSED INSTALLER IS REQUIRED BY LAW IN ORDER FOR A HOME TO BE OCCUPIED. If you are buying a home that has already been installed, you should ask the selling retailer if they will check the leveling, check for the presence (if required) and condition of any vapor retarder, check anything else regarding the foundation/stabilization system, or provide any other installation- related services. If you acquire a used manufactured home that is already installed in a Wind Zone II county but the home is a Wind Zone I home, which means that home was not designed or constructed to withstand a hurricane force wind occurring in a Wind Zone II or III area, the home cannot be installed in a Wind Zone II area unless it was constructed before September 1, 1997. initials MHD FORM 1038/Consumer-Disclosure.doc Page 3 of 6 Rev.10/12/2018 62 UPKEEP AND MAINTENANCE: ANY home requires regular upkeep and maintenance—things like periodic checking of and repairs to the roof, keeping vents and filters clear, maintaining septic systems and wells in safe and sanitary working order, caulking to prevent leaks, and periodic painting. Also, depending on the foundation system you choose, a manufactured home may require periodic checking to be sure that it is still level and that the anchors and straps are secure. initials FOUNDATION MAINTENANCE: You must accept all responsibility for maintenance of the site upon closing. T hese responsibilities include: maintaining good drainage around the home, preventing soil erosion, periodic inspections of foundation supports and anchorage, and any leveling or adjustment that may be required unless contractually agreed otherwise. Homes located in areas that have soils with high clay content that expands and contracts must maintain consistent moisture levels. This may include watering around the foundation during dry summer months and managing the size and proximity of the vegetation near the foundation. initials LOT RENT: If you rent the lot your home is on, in addition to the possibility of rent increases, it is possible that the property owner could decide to change the use of the land and not renew your lease. Although you would be given advance notice, this would mean that you would have to move your home and have it installed somewhere else. initials WATER AND UTILITIES: Be sure that your lot has access to water. If you must drill a well, consider contacting several drillers for bids. If water is available through a municipality, utility district, water district, or cooperative, you should inquire about the rates you will have to pay and the costs necessary to join the water system. Be sure that any utilities you will need are available at your site and, if they are not, find out what will be involved in getting them delivered and connected. initials SEWER CONNECTIONS OR SEPTIC SYSTEMS: If your lot is not serviced by a municipal sewer system or utility district, you will have to install an on-site sewer facility (commonly known as a septic system). There are a number of concerns or restrictions that will determine if your lot is adequate to support a septic system. Check with the local county or a licensed private installer to determine the requirements that apply to your lot and the cost to install such a system. initials MHD FORM 1038/Consumer-Disclosure.doc Page 4 of 6 Rev.10/12/2018 63 HOMEOWNERS ASSOCIATIONS AND FEES: Many subdivisions have mandatory assessments and fees that lot owners must pay. Check with the manager of the subdivision in which your lot is located to determine if any fees apply to your lot. initials PROPERTY TAXES: Manufactured homes are appraised and subject to property taxes. Depending on t he type of loan you have, your lender may escrow for these taxes, and this will increase your monthly payments. Whether you select personal property or real property status for your home may impact any homestead exemption that you may obtain to reduce your tax liability. Talk with the county tax office if you have any questions. Failing to pay your taxes or make arrangements with the tax assessor-collector may place you at risk of having tax liens recorded on your home and, possibly, having the home foreclosed for non-payment of taxes. If you do not have a lender that escrows for the taxes, the tax assessor-collector will work out an escrow arrangement with you if requested. initials INSURANCE: Your lender will almost certainly require you to obtain insurance. You should request quotes from the agent of your choice to obtain the insurance. Even if you do not have a lender, it is a good idea to obtain insurance to protect your home and yourself. initials THE MANUFACTURED HOMEOWNER CONSUMER CLAIMS PROGRAM (the "CLAIMS PROGRAM"): The Claims Program is established by law to protect consumers who incur certain actual damages arising from specified violations of law involving acts or omissions of licensees. To learn more about the Claims Program you can check the Department's website at: www.tdhca.state.tx.us/mh or call the Department for a printed description of the Claims Program and how it works. Claims on the Claims Program must be verified and must be made within two years from the date of the act or omission or when it was discovered or reasonably should have been discovered. initials RIGHT OF RESCISSION: Once you enter into a contract with as elling retailer to acquire a manufactured home, you have a right to rescind the contract. You may, not later than the third day after the applicable contract is signed, rescind the contract without penalty or charge. The right to rescind may be modified or waived only if you have a bona fide emergency. The Department has rules about the detailed requirements for waivers and modifications. initials MHD FORM 1038/Consumer-Disclosure.doc Page 5 of 6 Rev.10/12/2018 64 This Six Page Disclosure was provided to me/us by the retailer and/or lender shown below on this date. It was provided to me/us before Uwe completed a credit application (if a financed transaction), or before Uwe signed a contract to purchase or exchange a manufactured home. DATE RETAILER or LENDER LICENSE NUMBER(if a retailer) CUSTOMER signature CUSTOMER signature CUSTOMER printed name CUSTOMER printed name Date: Date: MHD FORM 1038/Consumer-Disclosure.doc Page 6 of 6 Rev.10/12/2018 65 Date: March 15, 2019 Report No. 2019-053 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: On January 27, 2019, Council Member Armintor requested a staff report on the City of Charlotte, NC's housing bond program for affordable housing. On February 15, 2019, CM Armintor also emailed a question related to Inclusionary Zoning for affordable housing. EXECUTIVE SUMMARY: There are a number of policy priorities,funding mechanisms,and dedicated housing programs that are available to cities to incentivize and fund the creation and preservation of affordable housing. This ISR will cover the two requests by Council Member Armintor regarding the City of Charlotte's Housing Bonds, issued for a specific purpose of financing housing or programs, and Inclusionary Zoning, which requires or incentivizes the development of affordable housing units within new development projects. BACKGROUND: HOUSING BONDS Since 2001, the City of Charlotte has utilized housing bonds as a revenue source for its Housing Trust Fund, a city-managed financing mechanism directed toward affordable housing. The City of Austin has similarly used housing bonds to provide for additional affordable housing and to improve existing housing stock. The City of Charlotte (pop. 859,035) has utilized housing bonds as a tool, among other tools in their housing_policy, to address a shortage of affordable housing. Revenues from housing bonds are secured in Charlotte's Housing Trust Fund (HTF) and provide a financing base for affordable housing projects and initiatives. The trust fund itself was established in 2001 and since that time has financed over 8,000 new and rehabilitated affordable housing units, 3,000 of which were for households earning below 30% of the median area household income. In recent years, the city has invested $15-$20 million per year in housing bond revenues into the fund; however, in 2018 voters elected to invest $50 million in housing bond revenues with a goal to maintain this level of funding on an annual basis. Specifically, these bond revenues would be used to pay for: • Capital costs of housing projects; • Related infrastructure improvements; and • Land and right-of-way acquisition. Overall, the City of Charlotte has committed over $136 million toward affordable housing via housing bonds and the HTF since 2001. 66 Date: March 15,2019 Report No. 2019-053 Program Overview: The HTF acts as a financing institution that provides gap financing for eligible projects. Eligibility for funding and funding levels is guided by the City's affordable housing priorities. For instance, supportive housing developments, multifamily rental developments, and other types of developments typically receive funding priority. Funding is only used for capital costs including land acquisition. Funds are not used for rent supplementation or down-payment assistance. While most of the financing is structured as soft loans,high priority developments, such as supportive housing(where a case worker or other social assistance is provided with the housing), are structured as grants or deferred loans. Among other requirements, financing is contingent upon retaining affordability, via deed restrictions, for a minimum of 20 years. Certain tax credit programs or HUD developments may require a longer period of affordability. For the purposes of the HTF, the program focuses on housing that would be affordable for a household at or below 60% of the median household income. Overall Housing Sg trategy: The HTF and use of housing bonds fit within a larger affordable housing framework and strategy. In developing their housing programs, and on an ongoing basis, the City of Charlotte utilizes consultant expertise to cultivate data, analyze local housing trends, and provide a strategy framework and program options for the City to consider. These programs take into account the high-level housing goals set by the City Council and are regularly fine-tuned to ensure the programs are achieving the intent of the goals. Charlotte representatives feel their program success is due to the early engagement of the community and City Council, and the development of a housing strategy to ensure that the best value was received from public investment. Cities of Austin and Dallas: In similar fashion to Charlotte, after 24 months of analysis and engagement by the City, voters in the City of Austin recently approved $250 million in housing bonds in the November 2018 election. The revenue would implement the Austin Housing Blueprint and be used for land acquisition, a rental assistance program, a homeownership program, and home repair program. Specific to rental assistance programs, Austin proposes using the Housing Trust Fund to contract with external providers to offer education around the eviction process, legal aide, and providing short term rental assistance to prevent evictions. The City of Austin had previously issued housing bonds in 2006 and 2013 for a combined $120 million. Previous housing bonds had greater focus on developer incentives and financing. In its 2017 bond election, voters in the City of Dallas approved two propositions with affordable housing component selected based public input from thirty-one community meetings, recommendations from Citizens Bond Task Force, and a final Bond Package approved by Dallas City Council. Proposition I granted $55.4 million toward economic development — a portion of which would be used to promote mixed income housing throughout the city. Proposition J granted $20 million for homeless assistance facilities including supportive and transitional housing to 67 Date: March 15,2019 Report No. 2019-053 target chronic homelessness, rapid rehousing for the elderly, disabled, and families with children, and provide day centers for seamless wrap-around services. Applicability to Denton: Local governments in North Carolina derive their authority to issue housing bonds specifically from the state legislature through the Local Government Bond Act. As a home rule city, the City of Denton is not prevented from issuing housing bonds by the State of Texas. Article IX of the Denton City Charter(specifically, subsection 9.01) states that the City of Denton "shall have the right and power to issue general obligation bonds to finance any capital project which it may lawfully construct or acquire or for any other legitimate public purpose". The City's bond counsel believes the"any other legitimate public purpose"charter provision would allow the City of Denton to issue housing bonds for the purpose of providing affordable housing. Any bond and its underlying authority would be subject to review and approval by the Attorney General's Office prior to issuance. General obligation ("GO") bonds could be issued pursuant to an economic development program for administration of the housing projects. The GO bonds would have to be approved by voters and most likely would be issued on a taxable basis. Also, the city could finance a multi-family housing project by creating a Housing Finance Corporation that would issue mortgage revenue bonds to finance the project. These bonds would be issued on a tax-exempt basis and may include a tax credit component. INCLUSIONARY ZONING Inclusionary zoning is a policy approach to create new affordable housing. There are two basic ways to implement inclusionary zoning strategies: 1. MANDATORY: Mandatory is where new developments above a certain unit count threshold must include a percentage of affordable housing units or pay a fee in lieu of. Please note that there are statutes restricting the ability of cities in the State of Texas to enact mandatory inclusionary zoning, including the following two statutes: • Section 214.905 of the Texas Local Government Code prohibits cities from requiring developers to set aside a certain number of homes at a fixed price in order to increase affordable housing. This would require developers to file a deed restriction ensuring that the original dedicated percentage of constructed affordable homes remain affordable when that homeowner sells it to another, and so forth. To get this requirement, the City would have to pass an ordinance setting forth the maximum sales price that ensure the homes are affordable, which violates Section 214.905. • Section 250.008 of the Texas Local Government Code prohibits the use of"fees in lieu of', also known as linkage fees. Revenues from linkage fees,used by cities in other states, are often put into an account or fund to help subsidize other affordable housing projects or efforts. 2. VOLUNTARY: Voluntary is where new developments above a certain unit count threshold would voluntarily include a percentage of affordable housing. They would be incentivized to do so through a regulatory incentive program commonly known as 68 Date: March 15, 2019 Report No. 2019-053 density bonuses. Incentives such as reduced street/parking requirements; additional building height; expedited review and permitting process; fee waivers, exemptions, or reductions are examples of density bonuses. Research indicates that there are over 500 cities in the U.S. use inclusionary zoning, including Boston, Denver,New Orleans, Portland, Sacramento, San Francisco, San Diego, and Washington, DC. CONCLUSION: Housing Bonds and Inclusionary Zoning are tools that cities use within a comprehensive housing policy and strategy. The comprehensive analysis of affordable housing needs is a critical first step to understanding what are the housing needs of a community, what are the available tools, and which tools best meet the needs in order to facilitate a policy discussion and development of a strategy. STAFF CONTACT: Sarah Kuechler Director of Public Affairs/IGR sarah.kuechlergcityofdenton.com 940-349-8356 69 Council Meeting Requests itle Request Request Date Staff ResponsibleDepartment Status 2019-061 Facility Naming Update on marketing/advertising policy and naming opportunities at City 08/02/18 Langley/Packan Council Meeting Parks and Recreation A work session is planned for May 6. Hudspeth facilities. 2 2019-062 Agreement with DHA Review of the City's agreement with the Denton Housing Authority. 10/16/18 Kuechler/Reinwand/Leal Council Meeting Community Development Information will be provided in a future Friday report. Briggs 3 2019-063 Citizens'Tenant Staff report on the potential establishment of a citizens'tenant committee to 11/13/18 Wood/Neal/Leal Council Meeting City Manager's Office Information will be provided in the March 29 Friday report. Armintor Committee advocate for renter rights. 4 2019-066 Bulk Collection for Staff report on options to have curbside bulky item collection for commercial 1 12/18/18 Cox Council Meeting Solid Waste A work session is planned for April 23. Watts Commercial dumpsters. 5 2019-067 Manufactured Home Information on a potential process to notify homebuyers of the risks associated 01/08/19 Leal/Adams Council Meeting City Manager's Office Information is provided in the March 15 Friday report. Meltzer Notifications with purchasing manufactured/mobile homes. 2019-069 TWU Parking Coordination Future options for coordinating public events to take advantage of free parking 01/15/19 Deshmukh/Booth Council Meeting Economic Development Staff will discuss use of the new garage with TWU staff at their Hudspeth 6 during evenings and weekends at TWU's new parking garage.Provide March 21 quarterly meeting. pedestrian lighting and safety options to promote use of the new parking deck. 7 2019-073 Station 8 Circulation Prepare a staff report on the circulation pattern and road upgrade plans for 02/12/19 Deshmukh Council Meeting Capital Projects Information will be provided in a future Friday report. Hudspeth/Meltzer/Armintor roadways surrounding Fire Station 8. 2019-075 Council Reconsideration Report regarding the current City Council reconsideration process,including an 02/12/19 Wood/Birdseye/Neal Council Meeting City Manager's Office I ISR on recently discussed potential Rules of Procedure Ryan 8 Process interpretation of if the"next scheduled meeting"includes Monday luncheons and revisions will be included in the March 22 Friday Report. any potential impacts from the 72 hour posting requirement. 2019-260 PEC-4 Survey ISR on requirements to survey property owners adjacent to the PEC-4 project 02/26/19 Estes Council Meeting Capital Projects Information will be provided in a future Friday report. Meltzer 9 regarding their willingness to allow use of right-of-way easements for bicycle and pedestrian paths? 10 2019-288 Sobering Centers Staff report outlining the findings from the recent visit to sobering center in the 03/04/19 Kuechler/Shaw Council Meeting Community Development Information will be provided in a future Friday report. City of Austin. 11 2019-294 Prairie St.Historic Staff report on the potential historic designation for Prairie Street. 03/05/19 McAllen/McDonald Council Meeting Development Services Information will be provided in the April 5 Friday report. Meltzer Designation 12 2019-292 Rail Trail Destination Information on potential installation of destination markers for the rail trail. 03/05/19 Packan Council Meeting Parks and Recreation Information is provided in the March 15 Friday report. Hudspeth Markers 13 2019-290 HB 375 Impacts Provide information on HB 375. 03/05/19 Kuechler/Rogers Council Meeting Public Affairs Information is provided in the March 15 Friday report. Briggs/Armintor Exported on March 15,2019 4:26:15 PM CDT 70 Page 1 of 1 Other Council Requests Title Request Request Date Now:- .. Request Type Department 2019-076 Rental Inspection/Tenant Staff report on rental property inspections including practices to address faulty 11/06/18 Wood/Neal/Lahart Other Council Requests CIS Information will be provided in the March 29 Friday report. Armintor Bill of Rights roofs and mold and information on how other cities ensure compliance with the Tenant Bill of Rights. 2 2019-077 Curbside Compost Information on introducing a curbside organics/composting collection program, 11/28/18 Cox Other Council Requests Solid Waste Information will be provided with the Yardwaste Business Case Meltzer Program including to what extent a market can be found for the product. Analysis work session that is planned for late spring 2019. 2019-078 Roselawn Batch Plant Information on zoning concern for a proposed batch plant off of Roselawn Drive. 11/29/18 Cannone/McDonald Other Council Requests Development Services A status update is provided in the December 7 Friday report. Briggs 3 Zoning Staff will provide updates once additional information is received from TxDOT. 4 2019-079 Verizon Pole Debt Update on the Verizon pole attachment debt. 12/03/18 Puente/Morrow/Adams Other Council Requests DME Information will be provided in a future Friday and/or Legal Meltzer Status report. 2019-080 Safe Routes to School Update on all sidewalk projects that received Safe Routes to School funding, 12/05/18 Deshmukh/Estes/Oliphant Other Council Requests Capital Projects Information was provided in the December 7 Friday report.A Briggs 5 Update including Stuart to Ginnings and the area surrounding Woodrow Elementary. status update is provided in the January 25 and March 1 Friday reports.Staff will provide additional information on project timing following feedback from TxDOT. 6 2019-083 Electronic Participation in Staff report on the legality of allowing residents to participate in public hearing 01/10/19 Neal/Birdseye Other Council Requests Public Affairs ISR on recently discussed potential Rules of Procedure Armintor/Briggs Meetings electronically and discuss options with the Committee on Citizen Engagement. revisions will be included in the March 22 Friday report. 2019-087 Housing Bonds Staff report on the City of Charlotte,NC's housing bond program and new 01/27/19 Kuechler/Shaw Other Council Requests Community Development Information is provided in the March 15 Friday report. Armintor 7 affordable housing location guidelines and the steps required to have a similar bond program in Denton. 2019-088 Community Market Fees Update on the Denton Community Market's request to reduce famers;fees and 01/27/19 Booth Other Council Requests Economic Development A work session is scheduled for March 26. Armintor/Hudspeth an estimate of how quickly those reduced fees could be implemented.Include 8 information on how the farmers'fee is used and how many farmers paid fees in 2018.Also provide information on if the occupancy permit issue with the Community Market was addressed. 2019-089 Sherman Drive/Palladium Information on planned Sherman Drive access for the Palladium Apartments and 01/29/19 Deshmukh/Estes Other Council Requests Capital Projects This information will be provided in the April 1 work session Briggs 9 Apts. timing on the project to install a traffic signal at Poinsettia Street and Sherman presentation on Infrastructure and Facility Capital Project Plans. Drive. 2019-299 Austin Street Curb Paint Status update on the curb paint request for the 1200 block of Austin Street. 01/30/19 Kremer/Estes Other Council Requests Capital Projects Capital Projects is currently working with Police to choose top Hudspeth area where citations are written for parking near hydrants.Staff 10 will then pilot painting those areas to determine if painting the curb impacts behavior.Staff will provide additional information on this project in a future Friday report. 2019-090 Fair Housing in Texas Provide staff feedback on the August 17,2016,Texas Houser's article entitled 02/05/19 Kuechler/Shaw/Leal Other Council Requests Community Development Information will be provided in an upcoming Legal Status Armintor 11 "How state legislators can improve fair housing compliance in Texas"including if Report. the Texas Department of Housing and Community Affairs conforms with federal fair housing laws. 2019-093 LINT Parking Enforcement Improve parking enforcement in the areas surrounding the LINT campus. 02/07/19 Dixon Other Council Requests Police Police is coordinating with LINT and its Parking Enforcement Briggs/Meltzer Officers to improve enforcement in the area.Staff is also 12 considering creative solutions to add additional enforcement to the area,such as civilian public safety officers.A formal report and timetable for action will be provided in a future Friday report. 13 2019-094 SUP for all Multifamily Staff report describing if requiring Specific Use Permits for all multifamily 02/09/19 Leal/McDonald/Lang Other Council Requests City Attorney's Office Information will be provided in a future Legal Status report. Meltzer developments would be a violation of the Fair Housing Act. 14 2019-221 Evers Way Drainage Information on Evers Way Drainage Map and its impact on neighboring 02/16/19 Estes/Canizares Other Council Requests Capital Projects Information will be provided in a future Friday report. Briggs properties. 15 2019-101 Rayzor Property Park Preserve tree stands on currently undeveloped Rayzor property and create a 02/16/19 Packan/McDonald Other Council Requests Parks and Recreation A work session on Rayzor Ranch Park is scheduled for April 23. Briggs park. 16 2019-236 Bonnie Brae Sidewalk Address incomplete sidewalk on Bonnie Brae and University. 02/24/19 Estes Other Council Requests Capital Projects Information will be provided in a future Friday report. Armintor 2019-267 SIB 1156 Impacts Work with Focused Advocacy to determine the ramifications of SIB 1156 if 02/28/19 Rogers/Kuechler Other Council Requests Public Affairs A work session on SB 1156 has been scheduled for March 19. Meltzer/Armintor/Briggs passed.The bill would require the Texas Railroad Commission to require an 17 applicant to indicate whether the drill site is within 1,500 feet of a school,hold a hearing in the county where the proposed well site is,and the commission considers the comments received when determining whether to grant the application. 2019-276 Traffic Safety at Concerns about pedestrian,bicycle,and vehicular traffic safety at the 03/01/19 Deshmukh Other Council Requests Capital Projects Information will be provided in a future Friday report. Armintor 18 Congress/Oakland intersection of Congress and Oakland near the Emily Fowler Library.Provide information on if a traffic study can be conducted or other measures taken to improve safety. 19 2019-273 Green Building Practices Staff report on green building practices that could significantly reduce 03/01/19 Banks/McDonald/Estes Other Council Requests Utilities Information will be provided in the March 29 Friday report. Meltzer infrastructure needs and ultimately justify reductions in impact fees. Administration/Capital 2019-287 Turn Safety at Information on what can be done to improve the safety of University/Nottingham. 03/03/19 Estes/Deshmukh Other Council Requests Capital Projects Information is provided in the March 15 Friday Report. Briggs 20 Unversity/Nottingham There is not a left turn arrow and drivers turning left often fail to yield at the intersection. 21 2019-286 Community Market Fees Is it possible to make the farmer fee changes for the 2019 Community Market 03/03/19 Booth/Birdseye Other Council Requests Economic Development Information will be provided in the March 26 Community Market Armintor retroactive?Neighboring communities no longer charge farmer fees. work session presentation. 22 2019-297 Pavement Assessment Provide additional details(outlined in email request)associated with the March 5 03/06/19 Kremer/Estes Other Council Requests Capital Projects Information provided to Council members via email. Meltzer Pavement Assessment work session. 2019-298 Providence Place Public Address concerns expressed by residents during the March 6 Providence Place 03/06/19 Dixon Other Council Requests Police Information will be provided in a future Friday report. Hudspeth 23 Safety Concerns Community Meeting including on-street parking enforcement,speed enforcement,Police patrol of the area,and trespassing on the property. Exported on March 15,2019 4:28:34 PM CDT 71 Page 1 of 2 Title Request I Request Date Staff Responsible Request Type Department Status 2019-302 Municipal Broadband Clarification on if municipalities can legally provide broadband as a public utility. 03/07/19 Birdseye/Kraft/Collister Other Council Requests Technology Services Information will be provided in a future Friday report. Briggs 24 Provide information on the Greenville,TX;Fort Collins,CO;and Chattanooga,TN models. 2019-305 Guyer Pedestrian Access Information on if the City can help facilitate a temporary pedestrian pathway 03/08/19 Kremer/Estes Other Council Requests Capital Projects Todd Estes responded on March 10 that Capital Projects is Ryan/Armintor 25 around Guyer High School while TxDOT works with the bonding company to working with TxDOT to address this issue. identify another contractor on their Teasley project. 26 2019-313 Pecan Creek Sidewalk Information on the plan to preserve trees as the Pecan Creek sidewalk is 03/09/19 Deshmukh/Oliphant Other Council Requests Capital Projects Information will be provided in a future Friday report. Briggs installed 27 2019-311 Private ADA Compliance Staff report on what can be done to educate private businesses on ADA 03/09/19 Canizares/Adams Other Council Requests City Manager's Office Information will be provided in the March 22 Friday report. Armintor requirements and what can be done at the local level to encourage compliance. 28 2019-312 Meeting Information Improve the frequency that minutes and other Board&Commission meeting 03/09/19 Wood/Rios Other Council Requests City Secretary's Office I Information will be provided in the March 22 Friday report. Meltzer/Armintor materials are posted. 2019-309 Fire PFAS statement Have Fire Associations released a statement advocating for the removal of 03/10/19 Hedges/Lahart Other Council Requests Fire Information will be provided in the March 22 Friday report. Briggs polyfluoroalkyl substances(PFAS)? 2019-316 Election Information Include information in the next resident update about the May 2019 election 03/11/19 Wood/Rogers/Rios Other Council Requests City Secretary's Office Information will be provided in a future Friday report. Armintor including simple language,present Early Voting information separate from 30 Election Day voting,easy to ready list of acceptable and unacceptable voting IDs,and include the name of the elected official in the"Locate my voter district" GIS system. 31 2019-334 Signal Timing at Spencer Resident reporting unacceptable wait times trying to cross the intersection while 03/13/19 Deshmukh/Kremer Other Council Requests Capital Projects Response will be provided via email directly to the resident. Briggs and Mayhill on Mayhill. Council Member Briggs will be copied on the response. 32 2019-332 Archivist Goals Staff report about the Denton Public Library Archivist's goals and what some of 03/13/19 Bekker Other Council Requests Library Information will be provided in a future Friday report. Armintor their needs might be in terms of volunteers and materials. 2019-330 Planned Street On stretches of roadway that are in poor condition and scheduled for 03/13/19 Rogers/Yates Other Council Requests Public Affairs Information will be provided in a future Friday report. Meltzer 33 Construction Information reconstruction,post signs noting when construction on the roadway is scheduled to begin. 2019-328 Recycling Social Media Could public outreach in Solid Waste or Public Affairs join the Denton Matters, 03/13/19 Cox/Rogers/Kuechler Other Council Requests Solid Waste/Public Affairs Information will be provided in a future Friday report. Meltzer 34 Information Denton Free Speech Matters and City of Denton Concerned Citizens to scan for recycling issues and provide correct recycling information? Exported on March 15,2019 4:28:34 PM CDT 72 Page 2 of 2 Cityof Denton City Hall 215 E. McKinney St. Denton,Texas 76201 www.cityofdenton.com DENTON Meeting Agenda City Council Tuesday, March 26,2019 12:00 PM Work Session Room WORK SESSION BEGINS AT 12:00 P.M.IN THE WORK SESSION ROOM. COUNCIL CONSIDERATION OF THE CONSENT AGENDA, ITEMS FOR INDIVIDUAL CONSIDERATION AND PUBLIC HEARING ITEMS WILL BEGIN IMMEDIATELY FOLLOWING THE CLOSED MEETING IN THE WORK SESSION ROOM. 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 26, 2019 at 12:00 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: WORK SESSION 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 March 26, 2019. 3. Work Session Reports A. ID 19-577 Receive a report, hold a discussion regarding the Credit and Collection Policy of the City Utility System. B. ID 19-333 Receive a report, hold a discussion, and give staff direction regarding a request from the Denton Community Market for additional financial support of approximately $102,000 per year. C. DCA18-0009i Receive a report, hold a discussion, and provide staff direction on the Denton Development Code Update and Draft Zoning Map. D. ID 19-585 Receive a report, hold a discussion, and give staff direction on McKenna Park improvements in relation to the Bonnie Brae street project. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code,as amended,or as otherwise allowed by law. 1. Closed Meeting: A. ID 19-364 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Page I Printed on 311512019 73 City Council Meeting Agenda March 26,2019 Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code Section 551.071. Discuss and deliberate strategies and opportunities for the City to acquire renewable energy and enter into agreements regarding the same; receive a presentation from staff regarding public power competitive and financial matters pertaining to the purchase of renewable energy; consultation with the City's attorneys regarding legal issues associated with the agreements described above where discussion of these legal matters in an open meeting would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. B. ID 19-612 Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. Receive information from staff, discuss, deliberate, and provide staff with direction pertaining to the potential acquisition of real property interests in the Hiram Sisco Survey, Abstract No. 1184, Denton County, Texas, and located generally along the south side of East McKinney Street, between Railroad Avenue and North Bradshaw Street, City of Denton, Texas. Consultation with the City's attorneys regarding legal issues associated with the potential acquisition or condemnation of the real property interests described above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City's legal position in any administrative proceeding or potential litigation. (Police Department Expansion) Following the completion of the Closed Meeting, the City Council will convene in an Open Meeting to consider the following items: 1. 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 — P). 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 — P below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. ID 19-014 Consider adoption of an ordinance of the City of Denton approving a rearrangement and abandonment agreement for gas pipelines between the City of Denton and EnLink North Texas Gathering, LP, a Texas limited partnership; providing for the payment of six Page 2 Printed on 311512019 74 City Council Meeting Agenda March 26, 2019 hundred eighteen thousand dollars ($618,000.00) to EnLink North Texas Gathering, LP for the rearrangement of their ("DC-101-3", "DC102", "DC400", and "DC-401-4") gas pipelines in conflict with the planned public works improvements for the new alignment of South Bonnie Brae Street, the limits of which being generally bounded between Vintage Boulevard and Roselawn Drive; authorizing the City Manager to execute the agreement; authorizing the expenditure of funds; providing a savings clause; and providing an effective date. (Bonnie Brae Widening and Improvement project-Phase 1 -gas pipeline conflicts) B. ID 19-086 PLACEHOLDER-MCI Pole Attachment Agreement C. ID 19-087 Consider adoption of an ordinance approving a development agreement for wastewater service between the City of Denton and Robson Development, L.P., an Arizona Limited Partnership; providing for the pumping of all wastewater flows from Robson Ranch to the City of Denton wastewater collection system, relieving Robson Development from any further expansion of the Robson Ranch Water Reclamation Plant upon receipt of funds from Robson Development, L.P. for construction of the Wastewater Diversion Project; authorizing the City Manager to execute the agreement; and providing an effective date. The Public Utilities Board recommends approval D. ID 19-088 Consider adoption of an ordinance approving a development agreement for wastewater service between the City of Denton and Petrus Investment, L.P., a Texas limited partnership; providing for the conveyance of easements from Petrus Investment, L.P. to the City of Denton for construction of the Robson Ranch Wastewater Diversion Project, providing for wastewater service to Hunter Ranch for at least 800 single family equivalent capacity upon completion of the Robson Ranch Wastewater Diversion Project; authorizing the City Manager to execute the agreement; and providing an effective date. The Public Utilities Board Recommends Approval(_-_). E. ID 19-526 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to a Professional Services Agreement between the City of Denton and Huitt-Zollars, Inc., for Professional Design Services for the McKinney Street Widening Project; amending the contract approved by City Council on October 23, 2018, in the not-to-exceed amount of $1,641,200; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6590-040 - providing for an additional expenditure amount not-to-exceed $382,600, for a total contract amount not-to-exceed$2,023,800). F. ID 19-527 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to a Professional Services Agreement between the City of Denton and Teague Nall and Perkins, Inc., for Professional Engineering Services for the West Hickory Street Drainage, Paving and Sidewalks Project; amending the contract approved by City Council on October 16, 2018, in the not-to-exceed amount of $167,500; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6590-043 - providing for an additional expenditure amount not-to-exceed $90,300, for a total contract amount not-to-exceed $257,800). Page 3 Printed on 311512019 75 City Council Meeting Agenda March 26,2019 G. ID 19-530 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to execute a contract through the TXMAS Cooperative Purchasing Network Contract Number 17-8407 for the acquisition of footwear for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (File 6982 - awarded to Red Wing Shoes in the four(4)year not-to-exceed amount of$400,000). H. ID 19-582 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with Nelson Espinoza, a Sole Proprietorship dba S.E.D. Referee's, for the supply of certified adult and youth sports officiating services; providing for the expenditure of funds therefor; and providing an effective date (IFB 6967- awarded to Nelson Espinoza, a Sole Proprietorship dba S.E.D. Referee's,in the three(3)year not-to-exceed amount of$196,500). I. ID 19-584 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of Change Order No. 6 to the contract between the City of Denton and Zachry Construction, Inc., for the Mayhill Roadway Improvements Project; providing for the expenditure of funds therefor; and providing an effective date (Bid 6389 - Change Order No. 6 in the amount of 137,836.23, for a total contract award aggregated to $35,490,677.81). J. ID 19-592 Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or his designee, to execute an agreement between the City of Denton, Texas and the Children's Advocacy Center for Denton County, Incorporated for providing aid to the City of Denton Police Department in the investigation of child abuse cases; providing client and clinical services to victims of child abuse and non-offending family members; providing for the expenditure of funds in the amount of $153,471.00; and providing for an effective date. K. ID 19-602 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to a Professional Services Agreement between the City of Denton and RPS Infrastructure, Inc., for Professional Engineering Services for the Bonnie Brae Phase 6 Reconsturction; amending the contract approved by City Council on September 18, 2018, in the not-to-exceed amount of $2,031,479.50; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6590-032 - providing for an additional expenditure amount not-to-exceed $397,760,for a total contract amount not-to-exceed$2,429,239.50). L. ID 19-603 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with Taihan Fiberoptics America, Inc., for the supply of fiber optic cable for the City of Denton Distribution Center; providing for the expenditure of funds therefor; and providing an effective date (RFP 6885-awarded to Taihan FiberOptics America, Inc., in the three (3) year not-to-exceed amount of$675,000). M. ID 19-604 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to execute an Interlocal Cooperative Purchasing Agreement with the City of Frisco, bid #1804-060, under the Page q Printed on 311512019 76 City Council Meeting Agenda March 26,2019 Government Code, Chapter 791.001, to authorize City of Denton contracts for the purchase of law enforcement uniforms and accessories for the Denton Police Department; authorizing the expenditure of funds therefor; and declaring an effective date (File 7003 -awarded to Galls, LLC and C&G Wholesale secondary, in the five (5) year not-to-exceed amount of$1,000,000). N. ID 19-605 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract through the Department of Information Resources (DIR) Cooperative Purchasing Network Contract # DIR-TSO-3837 for the acquisition of Apple branded products and services and Microsoft Surface line of products accessories; providing for the expenditure of funds therefor; and providing an effective date (File 7046-awarded to CDW Government, LLC,in the three(3)year not-to-exceed amount of$600,000). O. ID 19-606 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract through the Department of Information Resources (DIR) Cooperative Purchasing Network Contract # DIR-TSO-3838 for the acquisition of Apple branded products and services, Microsoft software products and related services and Software Products and related services plus Software as a Service; providing for the expenditure of funds therefor; and providing an effective date (File 7047 - awarded to SHI-Government Solutions, Inc., in the three (3) year not-to-exceed amount of$600,000). P. ID 19-610 Consider adoption of an ordinance of the City of Denton, approving an agreement with the Denton Animal Support Foundation and the City of Denton, Texas to allow the Denton Animal Support Foundation to raise funds on behalf of the Denton Animal Shelter; authorizing the City Manager or his designee to execute the Denton Animal Support Foundation Agreement; and providing an effective date. 2. ITEMS FOR INDIVIDUAL CONSIDERATION A. HL19-0002a Consider approval of a resolution approving an application for a historically significant site tax exemption for the property at 2400 North Bell Avenue, in accordance with Chapter 10, Article VII, Sections 10-131, (4) and 10-134 of the Denton Code of Ordinances. (HL 19-0002,Roman McAllen). B. ID 19-609 Consider adoption of an ordinance of the City of Denton, Texas approving the Denton Firemen's Relief and Retirement Fund actuarial valuation as of December 31, 2017; and providing an effective date. 3. PUBLIC HEARINGS A. AESA18-000 Hold a public hearing and consider adoption of an ordinance of the City of Denton, 2a Texas, to amend Ordinance 2016-215, approving an Alternative Environmentally Sensitive Area Plan with conditions to restore Upland Habitat on approximately 0.23 acre generally located on the west side of Harbour Mist Trail, approximately 240 feet north of Del Rey Drive in the City of Denton, Denton County, Texas and a Riparian Stream Buffer on approximately 1 acre of land generally located north of Pockrus Page, approximately Page 5 Printed on 311512019 77 City Council Meeting Agenda March 26,2019 570 feet east Fox Sedge Lane in the City of Denton, Denton County, Texas. The Planning and Zoning Commission recommended approval with conditions (7-0). (AESA18-0002, Villages of Carmel,Julie Wyatt) 4. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting topics,above posted. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas,on the day of ,2019 at o'clock(a.m.)(p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS 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 6 Printed on 311512019 78 March 2019 1 2 3 4 5 6 7 8 9 11:30am Council 12:00 pro CC Work 5:00pmP&Z Work Session 11:00am Committee on the 11:00amDCRC Luncheon Session 6:30pmP&Z Regular Session Environment 5:30pm Traffic Safety 6:30 pm CC Regular Commission Se ssio n 4:00pm Public Art Committee HLC-Cancelled 10 11 12 13 14 15 16 9:00am Public Utilities No Council Meeting 11:00amEDP 11:00amDCRC Bo a rd Nb Agenda Conn uaee 17 18 19 20 21 22 23 12:00 pm CC Work 9:00 am Mobility HOT&Sponsorship 11:00 11:00amDCRC Se ssion Committee 6:30 pm CC Regular 4:0 mHaBSCoNbetin 4:OOpmP&Z Work Session g Session 6:30pm P&Z Regular Session 6:00pm Committee on 2:30pmAgenda Committee Persons With Disabilities 24 25 26 27 28 29 30 6:00pm Public Utilities 10:00am Council Airport 11:00amTIF Board(TIRZ#1) Board Comm. 4:00pm ZBA 12:00 pm 4th Tuesday Session 31 79 April 2019 1 2 3 4 5 6 11:30 am Council 2:00 pm CC Work Session 5:00pm PH Work Session 4:00pm Public At Committee Luncheon 6:30 pm CC Regular 6:30pm P&Z Regular Session 1:30pm Committee on the Se ssion Environment 5:3 0 p m Tra ffic Sa fe ty Commission 7 8 9 10 11 12 13 9:00a m Pub lic Utilities 1):00 am Mob ility I I:00amEDP Board Committee 2:00 pm 2nd Tuesday 5:30pm HLC Session 14 15 16 17 18 19 20 2:00 pm CC Work Session 5:00pm P&Z Work Session 4:00pm HaBSCo Acting 6:30 pm CC Regular :30pm P&Z Regular Session Se ssion 5:00pm Committee on Persons With Disabilities 21 22 23 24 25 26 27 6:00p m Pub lic Utilities 2:00 pm 4th Tuesday Bo a rd Session 28 29 30 4:00pm ZBA No Council Meeting 80 May 2019 1 2 3 4 5:00pm PH Work Session 4:00pm Pubic Art Committee 6:30pm P&Z Regular Session 5 6 7 8 9 10 11 9:00a m Public Utilities 9:00 a m Mob ility 11:00am EDP Board Committee 11:30 am Council 2:00 pm CC Work Session Luncheon 6:30 pm CC Regular 1:30pm Committee on the Sc ssion Environment 5:3 0 p m Im tfic Sa fe ty Commission 12 13 14 15 16 17 18 5:30p m BIC 5:00pm P&Z Work Session 4:00pm HaBSCo Meting 6:30pm P&Z Regular Session 5:00pm Committee on Persons with Disabilities 19 20 21 22 23 24 25 6:00pm Public Utilities 2:00pm CC Work Session I 1:00am TIF Board(TIRZ#1) Board 6:30 pm CC Regular Se ssio n 4:00pm ZBA 26 27 28 29 30 31 o Council Meeting 81 Future Work Session Items 3/15/2019 Meeting Date Currently Slated Work Session Items Notes New Market Tax SB 1156 Policy Denton Development 19-Mar Credits Discussion Code FY 2017-2018 CAFR Community Market Credit and Supplemental Denton Development Downtown Design 26-Mar Collections Study lRequest Code IStandards JMcKenna Park 1-Apr Lunch Financial Forecast Infrastructure and Facility Capital Project Plans Carl Young/Quakertown Development Service Denton Development 2-Apr Airport Governance Park Restrooms Charity Care Policy Fees Code Integrated Pest Infrastructure and Construction Code Management Facility Capital Project 9-Apr Review Mews Streets Eagle Substation Program Plans Enhanced Leachate Funding Options for Recirculation Shelter and Business Case 16-Apr Homelessness Analysis Affordable Housing Financial Forecast Rayzor Ranch PID Home Chemical Collection and Bulky Work Session Special Event Item Business Case 23-Apr Strategy Session Ordinance Update Zero Energy Homes Rayzor Ranch Park Analysis AED Training will take Update on Naming Hickory Street place at the close of 6-May Lunch Policy Bicycle Lanes Bicycle Share Pilot AED Training the meeting Recommendations Red Light Camera Right-of-Way 7-May from HSAC and CDAC Pilot and Contract DEC Noise Mitigation Ordinance Follow-Up P-Card Audit Economic Utility Billing Development Information for Corridor/Small Area Gateway Signage and Public Hearing 14-May Reinvestment Grant Design Standards Scooter Share Notification Traffic Signalization Yard Waste Collection Business Living Wage for City Inclement Weather 21-May Case Analysis lContractors I Policy 3-June Lunchl Joint City/EDPB Luncheon South Lakes Park Purchasing Manual Employee Ethics Parking Lot Update Blue Zones Policy Solid Waste Rate Discussion Mandatory Recycling (Potentially for Commercial and combined with Multifamily Real Estate Policy DEC Noise Mitigation budget) Traffic and Roadway Date TBD ISobering Centers I Project Technology Top 5 from 11/27 Work Session Top priorities from 3/4 Work Session 82 - Construction Projects Report Y IWROUING Week of March 18-24,2019 DENTONFor general inquiries and questions,please contact the Project Management Office at(940)349-7227 DENTCN 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 Atlas Dr. Redstone Hercules 3/19/19 5/15/19 Water Main Replacement Water 12/17/18 Website&Letters (940)349-7167 New Project (Temporary Lane Closures) Ave.C Hickory Mulberry 9/24/18 4/22/19 UNT Monument Wall Public Works LINTProject (940)349-8905 (Road Closure) Inspections Bernard St. Fannin W Chestnut 1/4/19 4/5/19 Street Reconstruction Streets 12/17/18 (940)349-7160 (Street Closure) Mayhill Project Bridge (Road Website& Blagg Rd. Mayhill Geesling 3/18/19 10/31/19 Closure) Engineering Nextdoor (940)208-4318 New Project Notoficaficin Sewer Line Installation Nextdoor Bonnie Brae St. University Linden 3/4/19 3/24/19 Engineering Notification& (940)268-9842 (West side Southbound Lane Closure) Website Bonnie Brae St. Roselawn North of 7/1/17 7/1/19 Street Widening Engineering 6/14/18 (940)349-8910 Vintage (Phase 1 Street Closure) Bowling Green St. Georgetown Auburn 1/5/19 4/10/19 Street Reconstruction Streets 12/17/18 (940)349-7160 (Street Closure) Carroll Blvd. Congress Egan 2/11/19 3/29/19 Street Panel Repair Streets 2/4/19 (940)349-7160 (Northbound Only Lane Closure) Dallas Dr. Intersection of Teasley 11/12/18 4/26/19 Turn Lane Upgrade Streets 11/5/18 (940)349-7160 (Temporary Lane Closure) Eagle Dr. Elm Carroll 1/31/19 5/31/19 Drainage and Water Improvements Drainage (940)268-9726 (Street Closure) Water 83 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 Main Replacement, Fulton St. Congress Gregg 2/27/19 4/9/19 Street Repairs Wastewater 2/14/19 Wastewater Street improvements to (Daily Street Closure will re-open at (940)349-7300 follow in 6/3/19-10/3/19 the end of each day) Hercules Ln. Sherman Stuart 3/19/19 7/8/19 Water Main Replacement Water 3/4/19 (940)349-7167 New Project (Temporary Lane Closure) Atmos UtilityRelocations, Website, Atmos Street Repairs to follow Hickory St. Intersection of Welch 12/10/18 3/8/19 (parking Area Only) Atmos Letters,Public (940)205-9821 6/3/19 to 10/1/19 Meeting,etc. Safety Improvements Website&Social Hickory Creek Rd. Riverpass FM 1830 2/4/19 3/15/19 (Temporary Lane Closure) County Media (940)349-8910 Notifications Wastewater Main Replacement Hillcrest St. Crescent Emory 3/1/19 4/25/19 (Daily Street Closure will re-open end Wastewater 2/22/19 Website&Letters (940)349-7300 of each day) / / / / Water and Sewer Improvements g g / / ( ) j Hinkle Dr. Mimosa Greenbriar 3 18 19 3 30 19 Engineering 3 11 19 940 268-9842 New Project (Closed to Thru Traffic) Water,Wastewater Main Nextdoor Wastewater improvements Kerley St. Duncan Shady Oaks 1/3/19 3/18/19 Replacement and Street Repairs Water Notification, Water to follow 4/10/19-8/5/19 (Daily Street Closure will re-open end Door Hanger (940)349-7167 Streets Repairs 8/5/19- of each day) 1/9/20 Kings Row Yellowstone Sherman 12/26/18 4/26/19 Curb and Gutter Replacement Streets 12/7/18 (940)349-7160 (Temporary Lane Closure) Laguna Dr. Yellowstone Sherman 12/17/18 4/26/19 Street Reconstruction Streets 12/7/18 (940)349-7160 (Street Closure) Mayhill Rd. US 380 Edwards 9/1/17 2/1/20 Street Widening Engineering 1/3/18, 1/24/18 Door Hangers (940)208-4318 (Temporary Lane Closures) Street Construction Completion date updated McKinney St. Mack Bellaire 2/25/19 3/29/19 Engineering 2/14/19 (940)268-9726 (Temporary Lane Closure) from 3/25/19 Storm Drain Installation and E.McKinney St. Grissom S.Fork 3/11/19 7/1/19 Street Widening Engineering 3/7/19 (940)349-8910 (Temporary Lane Closure Drainage Improvements,Water Main Water Replacement to Mistywood Ln. Rockwood Jamestown 1/3/19 3/29/19 Replacement,Street Repairs Drainage 12/17/18 Drainage(940)349-8488 Follow 6/28/19-10/23/19 (Intermittent Street Closure) Street Repairs 10/28/19-TBD 84 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 Concrete Street Panel and Sidewalk Mustang Dr. Sundown Palomino 3/4/19 4/5/19 Repair Streets 2/22/19 (940)349-7160 (Temporary Lane Closure) Myrtle St. Eagle Maple 9/4/18 5/31/19 Eagle Drainage Improvements Engineering 8/21/18 Contacted DCTA (940)349-8910 (Street Closure) Paisley St. Ruddell Audra 1/22/19 3/29/19 Sidewalk Repair Streets 1/16/19 (940)349-7160 (No Street Parking) FM 2181 Road Widening Nextdoor Ranchman Blvd. Intersection of FM 2181 1/4/19 TBD (Road Closure on Ranchman to the TxDOT Notification, (940)349-8910 east and west of FM 2181) Electronic Signs Drainage Improvements, Rockwood Ln. Royal Mistywood 11/26/18 3/29/19 Street Repairs Drainage 11/23/18 Door Hangers Drainage Street Repairs follow (Intermittent Street Closure) (940)349-8488 10/28/19 TBD Roselawn Dr. US 377 Bernard 1/7/19 3/16/19 US 377 Street Improvement TxDOT Nextdoor (940)387-1414 (Road Closure) Notification Drainage Improvements, Royal Ln. Royal Rockwood 11/26/18 3/29/19 Street Repairs Drainage 11/23/18 Drainage (940) Street Repairs follow (Intermittent Street Closure) 349 8488 10/28/19-TBD Atmos Utility Relocations Scripture St. Ector Gober 2/4/19 3/15/19 (Westbound Lane Closure,Intersection Atmos Nextdoor (940)205-9821 Street Repairs follow at Hillcrest Closed) Notification 3/25/19-TBD Sheraton PI. Sheraton Buckingham 3/18/19 4/26/19 Street Reconstruction Streets 3/11/19 (940)349-7160 New Project (Street Closure) Concrete Street Panel and Sidewalk Silent Star Ln. Winding Montecito 2/25/19 3/29/19 Repair Streets 2/14/19 (940)349-7160 Stream (Temporary Lane Closure Street Construction Nextdoor Completion date updated Springtree St. Pecan Grove McKinney 2/25/19 3/29/19 Engineering (940)268-9726 (Street Closure) Notification from 3/25/19 Street Reconstruction CM Nextdoor Stuart Rd. Long Keystone 1/30/19 4/30/19 (Street Closure) Construction Notification (940)231-9963 Street Widening US 377(Ft.Worth Dr.) IH 35E 0.26 mi south of 12/3/18 12/12/20 (Temporary Lane Closures during non- TxDOT 9/25/18 Public Meeting FM 1830 10/8 (940)387-1414 peak traffic) Yellowstone PI. Kings Row Monterey 1/28/19 5/20/19 Street Reconstruction Streets 1/23/19 (940)349-7160 (Temproary Block Closures) 85 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 COMPLETED PROJECTS Atlas Dr. Redstone Hercules 1/8/19 3/1/19 Wastewater Main Replacement Wastewater 12/17/18 Wastewater (Temporary Lane Closures) (940)349-7300 City of Delayed Project FM 2181 Denton/Corinth Lillian Miller 7/11/17 7/1/20 Street Widening TxDOT TxDOT (940)-387-1414 City limits Will resume at a later date Forrestridge Dr. Timbergreen Rolling Hills 2/11/19 3/1/19 Street Panel Repair Streets 2/4/19 (940)349-7160 (Southbound Road Closure) Water Taps with Pavement Repairs Nextdoor Jannie St. McKinney Noble 2/25/19 3/1/19 Engineering (940)268-9726 (Temporary Lane Closure) Notification Wastewater Improvements Nextdoor Kendoph Ln. 1-35 Willowwood 11/26/18 3/1/19 (Daily Street Closure will re-open end Wastewater N/A Notification, (940)349-7300 of each day) Door Hanger Lipizzan Dr. Wheeler Ridge Thoroughbred 1/22/19 3/1/19 Street Panel Repair Streets 1/11/19 (940)349-7160 (Temporary Lane Closure) McKinney St. Woodrow Jannie 12/10/18 3/1/19 Utility Improvements Engineering N/A (940)349-8910 (Temporary Outside Lane Closure) 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 3/4/19 (Road Closure) Engineering 3/16/2018,9/14 departments (940)208-4318 New Completion affected UPCOMING PROJECTS Intersection Improvemetns Bell Ave. Intersection of McKinney 4/8/19 5/4/19 (Northbound right turn lane, Engineering 2/22/19 Website&Letters (940)349-8910 Updated Start Date from 3/11/19 temporary lane closure) Sewer Line Installation We site,Letters, Bonnie Brae St. University Crescent 4/1/19 4/19/19 (West Side Southbound Lane) Engineering 3/14/19 Business (940)268-9842 Water Improvements We site,Letters, Bonnie Brae St. Scripture Linden 4/1/19 4/19/19 (Street Closure) Engineering 3/14/10 Business (940)268-9842 86 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 Bonnie Brae St. Roselawn 135E TBD TBD North South Water Main Phase 2 Engineering 11/26/18 (940)349-8910 (Temporary Lane Closures) Carroll Blvd. Panhandle Crescent 3/25/19 4/26/19 Street Panel Repair Streets 3/11/19 (940)349-7160 New Project (Northbound Only Lane Closure) Hickory Creek Rd. Teasley Riverpass TBD TBD Street Widening Engineering 11/26/18 (940)349-8910 (Temporary Lane Closures) Phase I-Storm Water Improvements Hinkle Dr. University Windsor 4/1/19 6/1/20 (Magnolia Drainage Ph 11 Engineering 11/13/18 (940)349-8910 Temporary Lane Closures) Johnson St. E.Collins E.Daugherty 5/16/19 6/27/19 Water Main Replacement Water (940)349-7167 (Temporary Lane Closure) Kendoph Ln. 1-35 Willowwood 4/22/19 7/4/19 Street Repairs Streets (940)349-7167 (Street Closure) Wastewater Main Replacement Streets Repairs to follow Kerley St. Duncan Shady Oaks 4/10/19 8/5/19 (Temporary Lane Closure) Wastewater (940)349-7300 8/5/19-1/9/20 McKinney St. Austin Oakland 3/25/19 4/19/19 Sidewalk and ADA Improvements Engineering (940)349-8910 Start Date updated from (Temporary Eastbound Lane Closure) 4/8/19 Curb and Gutter Panhandle St. Carroll Bolivar TBD TBD Street Resurfacing, 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 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 Base Repairs Meet with business Start Date updadted from Shady Oaks Dr. Teasley Woodrow TBD TBD Streets Electronic Signs (940)349-7160 (Temporary Lane Closure) owners 3/18/19 to alleviate traffic Stuart Rd. Windsor Kings Row TBD TBD Concrete Curb and Gutter Repair Streets (940)349-7160 (Temporary Lane Closures) Thomas St. Panhandle Oak TBD TBD Streets Construction Streets (940)349-7160 Vintage Blvd. US 377 135W 10/1/2019 10/1/2021 Street Widening Engineering (940)349-8910 (Bonnie Brae Phase 2) 87