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070519 Friday Staff Report I;' "` City Manager's Office DENTON 215 E. McKinney St., Denton, TX 76201 • (940) 349-8307 MEMORANDUM DATE: July 5, 2019 TO: The Honorable Mayor Watts and Council Members FROM: Todd Hileman, City Manager SUBJECT: Friday Staff Report I. Council Schedule A. Meetings 1. Public Utilities Board Meeting on Monday, July 8, 2019 at 9:00 a.m. in the City Council Work Session Room. 2. No - City Council Meeting on Tuesday,July 9, 2019. 3. Economic Development Partnership Board on Wednesday, July 10 2019 at 11:00 a.m. in the City Council Work Session Room. 4. Agenda Committee Meeting Wednesday, July 10, 2019 at 2:30 p.m. in the City Manager's Conference Room. 5. Board of Ethics Meeting on Wednesday,July 10,2019 at 5:30 p.m. in the City Hall Conference Room. 6. Hotel Occupancy Tax and Sponsorship Committee on Thursday,July 11,2019 at 9:00 a.m in the City Council Work Session Room. 7. Public Art Committee on Thursday, July 11, 2019 at 4:00 p.m. in the City Council Work Session Room. 8. Bond Advisory Committee on Thursday, July 11, 2019 at 6:00 p.m. at the Public Safety Training Center. 9. Development Code Review Committee Meeting on Friday, July 12, 2019 at 11:00 a.m. in the City Council Work Session Room. OUR CORE VALUES Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service II. General Information & Status Update A. City Staff Position to Support Non-Profits—On April 9,following the Community Market presentation, Council Member Hudspeth inquired if a City position could be made to support all non-profit agencies. This is a difficult question to answer or analyze without further direction including scope, which agencies, roles and responsibilities, services to be provided, and so forth. These items would need to be identified to determine a staffing position(s), determine resources and skillsets needed,and ensure equity between the agencies that are served.Furthermore,there are many differences between the missions and operations of various non-profit organizations (e.g. 501(c)6's for economic development non-profits vs. 501(c)3's for many different causes and purposes), and the City is often a funder with grants provided to non-profits, which could be a conflict if roles and responsibilities are not appropriately agreed upon and detailed through an agreement with each agency. For 501(c)3 human services nonprofits looking for operational support and opportunities for training, there are some local services such as local networking groups or the United Way. United Way does the most work in this space with its Project Blueprint and in direct support with its agency partners such as regular in- service type meetings. They also have provided in rare occasions direct support if a nonprofit partner has some "emergency" situation like loss of an Executive Director, financial issues, etc. Serve Denton serves as a landlord and provides office space at reduced rates saving nonprofits operational dollars. They also have invested in a training programs for their partner agencies. The Community Development Division staff support nonprofits through training and knowledge sharing. In the regional area, the most well-known and utilized educational and knowledge resource is the Center for Nonprofit Management https://thecnm.org/. They do have consulting services for a fee but are mostly geared toward strategy, board development, etc. Staff contact: Sarah Kuechler, Public Affairs B. Property Tax Reduction for Transitional Housing—On May 21, Council Member Armintor inquired if the City could provide tax exemptions to landlords to reduce property taxes for those making units available for transitional housing. The City cannot create a property tax exemption; it can only allow property tax exemptions that are permitted by state law. In regards to exemptions available for transitional housing by state law, the following may apply: • Public Property Used to Provide Transitional Housing for Indigent Persons per Tax Code 11.111. This section exempts property owned by the United States or a federal agency and used to provide transitional housing to the poor under a program operated or directed by the U.S. Department of Housing and Urban Development. Transitional housing for indigent individuals is housing provided at no cost or nominal cost to an indigent individual or family during a temporary period in which the individual or member of the family participates in a job training program,job placement program, or other program intended to help the individual or family become self-sufficient. The exemption applies if the United States or the federal agency leases the property to a nonprofit in return for assistance in operating the program to provide transitional housing. The property is 2 exempted from ad valorem taxes only by ordinance or order of the City Council. • In addition, property owned by a charitable organization could qualify for an exemption pursuant to Tax Code 11.18 if it performs a qualifying charitable function listed in the Tax Code (i.e., 11.18(d)(23) providing housing to homeless with disabling condition, etc.). The appraisal district determines whether the property qualifies for this exemption. • Other exemptions related to the provision of housing are also included in the attached summary (11.181 Charitable Organizations Improving Property for Low-Income Housing, 11.182 Community Housing Development Organizations Improving Property for Low-Income and Moderate-Income Housing: Property Previously Exempt , 11.1825 Organizations Constructing for Rehabilitating Low-Income Housing: Property Not Previously Exempt, 11.1827 Community Land Trust, etc.). Staff contact: Sarah Kuechler, Public Affairs / Mack Reinwand, City Attorney's Office C. Council Requests Regarding the Recycling Program—During the May 21 Council Meeting work session presentation about the City's recycling program, Council Member Davis requested information on a more comprehensive waste reduction strategy to manage landfill space. Staff is continuing to research this information and this will be included as part of the food waste diversion and commercial recycling work sessions that are currently planned for late summer/early fall. Additionally, Council Member Meltzer requested that staff include the cost of service and loss of landfill space when considering wholesale contracts with outside haulers at the landfill. Because each potential wholesale customer will be unique in terms of tonnage and frequency, an analysis with the requested information will be included with each of the potential contracts that are presented to Council for consideration in the future. Staff contact: Brian Boerner, Solid Waste &Recycling D. Duchess Drive On-Street Parking — The June 28 Friday Report included information about a proposed parking ordinance to establish "No Parking" along Duchess Drive. Following the distribution of the June 28 report, staff discussed the applicability of the existing code to the current parking situation along Duchess Drive with the City Attorney's Office. Based on that discussion, Capital Projects staff will be moving forward with the installation of"No Stopping, Standing or Parking" signage along the north side of Duchess Drive. Based on the interpretation of the language in the code, the installation of signage will not require approval of the Traffic Safety Commission or the City Council. Additionally, staff informed the Traffic Safety Commission about this parking issue, and staff s decision to move forward with the installation of signage, during its regularly scheduled meeting on July 1 st. Staff anticipates it will take approximately two weeks to install the signage along Duchess Drive. Staff contact: Pritam Deshmukh, Capital Projects E. Developers Luncheon — Watershed Protection and Solid Waste held a luncheon on June 25 for developers, builders, and storm water contractors to discuss 3 requirements of the TCEQ General Construction Permit (TXR 150000), and city regulations pertaining the management and disposal of construction debris. Approximately 30 attendees from both private and public sectors participated. Staff contact: Deborah Viera, Environmental Services F. Eagle Scout Industrial Project—As part of an Eagle Scout project, Daniel Stolle assisted the Parks and Recreation Department(PARD)in updating Industrial Park. PARD supplied all the necessary supplies, and Daniel brought in 27 volunteers during the day who all dedicated their time and energy into updating the park. The group laid new sod, changed out the rocks on the side of the wall to decomposed granite, and assembled new picnic tables. The PARD crews installed the new tables and pads, and added granite to the west side of the park under the trees. It was a wonderful partnership and Industrial Park has benefited from the efforts. Pictures are attached. Staff Contact: Russell Koch, Parks and Recreation VOL � 1 Industrial Street Park OW 44/ t G. Fourth of July Jubilee — The Fourth of July Jubilee was the largest ever for the City. The day began with the largest ever Liberty Run with 422 runners on a new USATF certified course. The parade had 69 entries and was over an hour-long, which was double the amount last year. The Jubilee at the Civic Center brought in several thousand residents who got to enjoy new activities like the live band, a zip line, a dunking booth, and even a mechanical bull. The hotdog eating contest had eight participants who ate a record number of hotdogs; the winner devoured 17 in less than 10 minutes. The events were a great example of inter-department work. Police supported all the efforts of the special events and Park maintenance made sure that Denton stayed looking clean and beautiful. Staff Contact: Jennifer Eusse, Parks and Recreation 4 H. Development Services Legislative Luncheon — The Development Services Department took the lead in gathering a group of representatives from cities within the metroplex to discuss the recent passage of HB2439 and HB3167 which preempts cities from specifying building materials outside of the building code and sets short timelines on review and action on development projects. There were over 70 people in attendance from over 30 cities, private land use attorneys, and also representatives from the Texas Municipal League. The goal of the meeting was to discuss the concerns, impacts, and strategies to comply with the legislation which goes into effect on September 1. It was important that representatives from TML were in attendance as they work to develop interpretations of the legislation and strategies for cities. Development Services staff are planning a follow up meeting in August at the request of the attendees. Staff contact: Scott McDonald, Development Services III. Upcoming Community Events and Meetings A. Events 1. Dive-In Movie Harry Potter and the Sorcerer's Stone — July 19 at 9 p.m. at Water Works Park wave pool. The park will open at 8 p.m. Tickets are $10 each, or $5 for season pass holders and visitors from earlier in the day still wearing their wristbands. Everyone will have access to the lazy river and wave pool. There will be specialty concessions for sale. 2400 Long Rd. Staff contact: Cathy Avery, Parks and Recreation B. Community Meetings 1. South Lakes Park Public Input Meeting—July 22 at 6:00 p.m. at South Lakes Park Pavilion #2 (556 Hobson Ln.). Staff contact: Gary Packan, Parks and Recreation 2. Mobility Plan Meeting—August 1 from 6:00 to 8:00 p.m. at the Civic Center Community Room (321 E. McKinney St.) Staff contact: Pam Alummoottil, Capital Projects IV. Attachments A. Tax Exemptions - Comptroller................................................................................7 V. Informal Staff Reports A. 2019-136 Artificial Turf Use in Parks .................................................................29 B. 2019-137 Solar Energy Installation at Water and Wastewater Facilities ............33 C. 2019-138 Contract Options for Living Wage ......................................................36 D. 2019-139 Economic Development Incentive Fund .............................................38 E. 2019-140 Executive Residency Information .......................................................57 F. 2019-141 Impact of Senate Bill 1640 ..................................................................63 G. 2019-142 Civic Center Pool and Water Works Park Hours ................................69 H. 2019-143 May 2019 Denton Energy Center Dashboard .....................................72 5 VI. Council Information I. Council Meeting Requests for Information..........................................................75 J. Other Council Requests for Information..............................................................77 K. Council Calendar..................................................................................................79 L. Draft Agenda for July 15......................................................................................82 M. Draft Agenda for July 16......................................................................................83 N. Future Work Session Items ..................................................................................92 O. Street Construction Report...................................................................................93 6 1�' Uo Glenn Hegar Texas Comptroller of Public Accounts r Texas Property 10 Tax Exemptions Complete and Partial Property Tax Code Exemptions Available to Property Owners Who Qualify February 2018 Tax Code Section 5.05(a)authorizes the Comptroller's office to prepare and issue publications relating to the appraisal of property and the administration of taxes as a public service.By publishing this manual,the Comptroller's office is mak- ing available an information resource of a general nature regarding the appraisal of property and the administration of taxes.This publication does not address and is not intended to address all aspects of property appraisal,tax administra- tion or property tax law. The information contained in this publication neither constitutes nor serves as a substitute for legal advice.Pursuant to Tax Code Section 5.041(f),the Comptroller's office may not advise a property owner,a property owner's agent or the appraisal district on a protest matter.Questions regarding property appraisal,tax administration,the meaning or interpretation of statutes,legal requirements and other similar matters should,as appropriate or necessary, be directed to an attorney or other appropriate counsel. 8 Texas Property Tax OPW Table of Contents Property Tax Exemptions. Exemption Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Owner's Qualifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Property's Qualifications and Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Chief Appraiser Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Types of Exemptions . . . . . . . . Residence Homestead (Tax Code Section 11.13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Veterans'Exemptions (Tax Code Sections 11.131, 11.132, 11.133, 11.22 and 11.23(a)) . . . . . . . .5 Surviving Spouse of First Responder(Tax Code Section 11.134) . . . . . . . . . . . . . . . . . . .6 Charitable Organizations Generally (Tax Code Section 11.18) . . . . . . . . . . . . . . . . . . . . .6 Community Land Trusts (Tax Code Section 11.1827). . . . . . . . . . . . . . . . . . . . . . . . . .6 Primarily Charitable Organizations (Tax Code Section 11.184). . . . . . . . . . . . . . . . . . . . .6 Religious Organizations(Tax Code Section 11.20) . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Private Schools (Tax Code Section 11.21). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Public Property(Tax Code Section 11.11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Appendix A—Tax Code Exemption General Application Provisions . . . . . . . . . . . . . . . . . .9 Appendix B—Other Property Tax Code Exemption Summaries . . . . . . . . . . . . . . . . . . . 11 Appendix C—Residence Homestead Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 9 Property Tax Exemptions Texas Property Tax Property Tax Exemptions 10 Texas Property Tax Property Tax Exemptions Property tax in Texas is a locally assessed and locally ad- Some exemptions require the property owner to file an ap- ministered tax. There is no state property tax. Property tax plication one time and others require the property owner to brings in the most money of all taxes available to local taxing file an application annually. Most one-time exemptions al- units.Property taxes pay for schools,roads,police and fire- low the chief appraiser to request a new application to verify men,emergency response services,libraries,parks,and other that a property or property owner remains eligible for the ex- services provided by local government.State law provides for emption. Appendix A is a chart outlining which Tax Code a variety of exemptions from property tax for property and exemptions: property owners that qualify for the exemption. • require no application; Texas offers a variety of partial or total (absolute) exemp- - require an annual application;or tions from property appraised values used to determine local ' require a one-time application, unless requested by the property taxes.A partial exemption removes a percentage or chief appraiser. a fixed dollar amount of a property's value from taxation.A total (absolute) exemption excludes the entire property from Appraisal district chief appraisers are responsible for deter- taxation.Taxing units are mandated by the state to offer cer- mining whether or not property qualifies for an exemption.' tain (mandatory) exemptions and have the option to decide Property owners may appeal the chief appraiser's exemp- locally on whether or not to offer others. tion determinations, including the denial of an exemption' Taxing units,on the other hand,may appeal the granting of an exemption to a property owner.' An individual property Exemption Applications owner may not,however,challenge the grant of an exemption The law requires the property owner to apply for an exemp- to another property owner.Only a taxing unit may challenge tion in most circumstances! If a property owner fails to file the granting of an exemption.'Property is taxable unless the a required application on time,the owner usually forfeits the owner shows that it meets all legal requirements for a total right to the exemption unless late application provisions exist exemption.' in law.' Exemption applications ask for most or all of the information The general deadline for filing an exemption application is needed to decide an exemption issue.Most exemption cases before May 1.1 Charitable organizations improving property will depend on one or more of the following three issues: (1) for low-income housing and community housing develop- the owner's eligibility;(2)the property's qualifications;or(3) ment associations must file the application for exemption the property's use. within 30 days of acquiring the property.' ' Tex.Tax Code§ 11.43(a) 5 Tex.Tax Code§ 11.45 2 Tex.Tax Code§§ 11.43(d),11.431,11.433,11.435,11.438,11.439 and 6 Tex.Tax Code§41.41 11.4391 7 Tex.Tax Code§41.03 3 Tex.Tax Code§ 11.43(d) s Tex.Tax Code§41.03 ° Tex.Tax Code§ 11.436 9 Tex.Tax Code§ 11.01(a) 11 Property Tax Exemptions— 1 Owner's Qualifications Acquisition Date Ownership requirements vary by exemption. Exemptions, When the state,a political subdivision of the state and other such as those for individuals or families (homestead or dis- qualifying organizations acquire property used for public purposes, the chief appraiser determines the property's ex- abled veterans' exemptions), may require evidence of age, emption qualifications as of the acquisition date." physical condition or disability,military service,family rela- tionship or other factors. Property's Qualifications and Use The date for determining most exemption qualifications is Many exemptions apply only to specific classes of property. Jan. 1,but there are some exceptions.Certain exemptions are The property owner must list all property subject to the ex- determined immediately upon a change in life of the prop- emption and demonstrate that each property meets exemp- erty owner or by the chief appraiser on a property's acquisi- tion requirements. tion date.10 How and when the property owner uses the property is often January 1 critical in determining exemption cases.An important factor The date for determining owner qualifications for general is whether a property's use is exclusive,primary or incidental. homestead exemptions is Jan. 1. Property receiving exemp- tions for freeport, abatement, pollution control, historic or Chief Appraiser Determinations archeological site, solar- and wind-powered energy devices, offshore drilling rigs,water conservation initiatives and dis- The chief appraiser is responsible for(1)granting an exemp- abled veterans must qualify on Jan. 1.11 tion application; (2) disapproving an exemption application and asking for more information; (3) modifying an exemp- Immediate tion application; or(4) denying an exemption application.A Homeowners who reach age 65 or who become disabled dur- property owner is entitled to a written notice of a modifica- ing a tax year,will qualify immediately for those exemptions, tion or the denial of an exemption application and may pro- as if the homeowner qualified on Jan. 1 of the tax year. In test such before an appraisal review board(ARB),if a protest addition,a surviving spouse age 55 or older may qualify for to the ARB is timely filed15 the deceased spouse's exemption, if the spouse dies in the year that he or she reaches age 65.Disabled veterans or their A chief appraiser may deny an application for any number of surviving spouses with homes donated by charitable organi- reasons.Denial of an exemption application can be because, zations, surviving spouses of U.S. armed services members but not limited to,any of the following reasons: killed in action and surviving spouses of first responders . property owner is not entitled to the exemption; killed or fatally injured in the line of duty also qualify im- . The property does not qualify for an exemption; mediately for those exemptions,as if they qualified on Jan. 1 . Documentation filed with an exemption application does of the tax year.'Z not support the exemption; • Exemption is not filed timely; Organizations qualifying for immediate exemption include In the case of age 65 or older and disabled, only one ex- cemeteries,charitable organizations,religious organizations, emption may be claimed; private schools, low-income housing organizations, youth . Documentation filed with a request for homestead exemp- development associations,nonprofit water supply and waste- water service corporations,veteran's organizations and other tion does not match the property address;or • In the case of a residence,an exemption has already been nonprofit organizations 13 granted on another property. 10 Tex.Tax Code§ 11.43(d) " Tex.Tax Code§ 11.42 12 Tex.Tax Code§ 11.42 4 Tex.Tax Code§§ 11.42 and 11.436 13 Tex.Tax Code§ 11.42 5 Tex.Tax Code§ 11.45 2 —Property Tax Exemptions 12 Texas Property Tax OWW Types of Exemptions Tax Code exemption requirements are extensive. Property homestead in or outside of Texas. The application must in- owners should read applicable statutes carefully. The Comp- clude a copy of the applicant's driver's license or state iden- troller's hardcopy publication annotated Property Tax Code tification card.This requirement does not apply to a resident contains the text of the law and notes on significant court cases. of a facility that provides services related to health,infirmity, or aging; or to applicants who are certified for participation The following is a short summary of selected exemption pro- in the Attorney General's Address Confidentiality Program.20 visions.Appendix B lists other exemptions authorized by the Tax Code. A chief appraiser is prohibited by law from allowing a home- stead exemption unless the address on the identification pro- Residence Homestead vided corresponds to the address of the property for which the exemption is claimed. A chief appraiser may waive this (Tax Code Section 11.13) requirement for an active duty U.S.armed services member or Most residential exemption court cases concern the owner's the spouse of an active duty service member if the application qualifications for the exemption;whether the exemption cov- includes a copy of the military identification card and a copy ers specific improvements or amounts of land;or whether the of a utility bill for the residence homestead.A chief appraiser property is the principal residence of the owner.Appendix C also may waive the requirement if the applicant holds specific lists mandatory and local option residence homestead exemp- driver's license issued for judges and the spouses of judges or tions,their amounts and the applicable taxing units. peace officers and includes with the application a copy of the application for that license.21 General Residence Homestead Texas law requires school districts to offer a$25,000 exemp- Normally the exemption applies to those portions of the tion on residence homesteads.16 Any taxing unit,including a house actually used as a residence, as opposed to business city,county,school district or special district,has the option or other use.22 The homestead includes up to 20 acres of land of deciding locally to offer a separate residence homestead and any improvements used for residential purposes 21 exemption of up to 20 percent of a property's appraised value, but not less than $5,000.11 Counties are also required to of- The home must be the principal residence of the applicant. fer a$3,000 exemption if the county collects farm-to-market A qualified homeowner does not lose his or her homestead roads or flood control taxes." exemption if the homeowner does not establish a different principal residence, intends to return and occupy the resi- There are no specific qualifications for the general homestead dence and is temporarily absent for a period of less than two exemption other than the owner has an ownership interest in years.The law provides that homeowners in military service the property and uses the property as the owner's principal inside or outside the United States or in a facility providing residence.19 However,an applicant is required to state that the services related to health, infirmity or aging may be away applicant does not claim an exemption on another residence from the home longer than two years and still keep the home- stead exemption. The two-year limit does not apply to these homeowners.24 2° Tex.Tax Code§ 11.430) 16 Tex.Tax Code§ 11.13(b) Tex.Tax Code§11.43(n)and(p) " Tex.Tax Code§ 11.13(n) Tex.Tax Code§11.13(k) '8 Tex.Tax Code§ 11.13(a) Tex.Tax Code§11.130)(1) 19 Tex.Tax Code§ 11.130)(1) 24 Tex.Tax Code§11.13(1) 13 Property Tax Exemptions—3 Age 65 or Older or Disabled spouses of age 65 or older owners who die while qualified for Texas law requires school districts to offer an additional the tax ceiling.These homeowners may also transfer the per- $10,000 residence homestead exemption to persons age 65 or cent of tax paid,based on their ceiling,when they purchase older or disabled 25 Any taxing unit,including a city,county, another home and use it as their principal residence." school district or special district,has the option of deciding locally to offer a separate residence homestead exemption for A county,city or junior college district can offer a tax limita- persons age 65 or older or disabled in an amount not less than tion on homesteads of taxpayers who are disabled or age 65 $3'000 26 or older.34 The taxing unit's governing body may adopt the limitation or citizens in the taxing unit by petition and elec- To qualify for the mandatory and local option exemption for tion may adopt the limitation.35 Once adopted,the Tax Code persons age 65 or older,the owner must be age 65 or older provides for the tax ceiling for disabled and age 65 or older and live in the house2' If the age 65 or older homeowner homeowners and their right to transfer to another homestead dies,the surviving spouse may continue to receive the local in that taxing unit the same benefit of that tax ceiling.It also option exemption if the surviving spouse is age 55 or older at provides for surviving spouses age 55 or older to retain the the time of death and lives in and owns the home and applies tax ceiling." for the exemption.28 Manufactured and Cooperative Housing A disabled person must meet the definition of disabled for the Manufactured homes may qualify for homestead exemptions. purpose of payment of disability insurance benefits under the For a manufactured home to qualify as a residential home- Federal Old-Age,Survivors and Disability Insurance Act.21 A stead,the owner must follow detailed provisions concerning homeowner does not have to meet the definition of disabled a statement of ownership.37 or age 65 or older on Jan. 1 of the tax year,but may qualify as disabled or age 65 or older at any time during the tax year. A property owner may also receive a homestead exemption The exemption applies to the entire tax year as if the person for cooperative (co-op) housing.38 Upon receiving a request was disabled or age 65 on Jan. 1.30 If these applicants are not from the co-op,the chief appraiser must separately appraise specifically identified on a deed or other recorded instrument, and list each individual stockholder's interest. Each stock- they must provide an affidavit or other compelling evidence holder whose interest is separately appraised may protest and of ownership.31 appeal the appraisal like any other property owner." The trustor of a qualifying trust may qualify for the residence Uninhabitable or Unstable homestead exemption. A residence owned by an individual If a qualified residential structure for which the owner re- through an interest in a qualifying beneficial trust and oc- ceives an exemption is rendered uninhabitable or unusable cupied by such individual as a trustor or beneficiary of the by a casualty or by wind or water damage, the owner may trust may qualify. An owner's surviving spouse who has a continue to receive the exemption. The exemption for the life estate in a residence may also qualify the property for a structure and the land and improvements used in the residen- residence homestead exemption.32 tial occupancy of the structure while the owner constructs a replacement qualified residential structure on the land con- The Tax Code places a ceiling on school taxes for residence tinues if the owner does not establish a different principal homesteads owned by persons who are age 65 and older or dis- residence for which the owner receives an exemption during abled.The tax ceiling continues for age 55 or older surviving that period and intends to return and occupy the structure as the owner's principal residence.40 25 Tex.Tax Code§ 11.13(c) 33 Tex.Tax Code§ 11.26(a),(g)and(i) 26 Tex.Tax Code§ 11.13(d) 34 Tex.Tax Code§ 11.261(a) 27 Tex.Tax Code§ 11.13(c)and(d) ss Tex.Const.art.VIII,§ 1-b(h) 28 Tex.Tax Code§ 11.13(q) 36 Tex.Tax Code§ 11.261(g)and(i) 29 Tex.Tax Code§ 11.13(m)(1) 37 Tex.Tax Code§ 11.432 31 Tex.Tax Code§ 11.42(c) 38 Tex.Tax Code§ 11.13(o) 31 Tex.Tax Code§ 11.43(o) 39 Tex.Tax Code§23.19(b) 32 Tex.Tax Code§ 11.130)(1)(D)and 0)(2) 1 Tex.Tax Code§ 11.135 4—Property Tax Exemptions 14 To continue to receive the exemption,the owner must begin for the exemption after Jan. 1 of a tax year,they receive an active construction of the replacement qualified residential exemption for the applicable portion of that year immediately structure or other physical preparation of the site on which upon qualifying for the exemption.Likewise,if the property the structure is to be located not later than one year after the no longer qualifies in a year, the exemption is removed for owner ceases to occupy the former qualified residential struc- that portion of the year." ture as the owner's principal residence. The owner may not receive the exemption for that property under these circum- The 100 percent disabled veteran exemption extends to a sur- stances for more than two years. The site of a replacement viving spouse who was married to a disabled veteran who qualified residential structure is considered under physical qualified or would have qualified for this exemption if it had preparation if the owner has engaged in architectural or engi- been in effect at the time of the veteran's death.To be entitled neering work,soil testing,land clearing activities or site im- to this exemption,the surviving spouse must not have remar- provement work necessary for the construction of the struc- ried;the property was the residence homestead of the surviv- ture or has conducted an environmental or land use study ing spouse when the veteran died; and the property remains relating to the construction of the structure." the residence homestead of the surviving spouse4' Veterans'Exemptions (Tax Code If the surviving spouse is eligible for the exemption and then qualifies a different property as a residence homestead, the Sections 11.131, 11.132, 11.1331 surviving spouse is entitled to the same dollar amount of the 11.22 and 11.23(a)) former exemption that was last received at the former home- Partial Exemption stead. The surviving spouse cannot remarry to receive the Texas law provides partial exemptions for any property subsequent exemption. The chief appraiser of the county in owned by disabled veterans and surviving spouses and chil- which the former residence was located must provide to the dren of deceased disabled veterans. az It also provides a partial surviving spouse a written certificate so that the amount of exemption for residence homesteads donated at no cost or not the exemption on the subsequent qualified homestead can be determined.41 more than 50 percent of the good faith estimate of its market value to disabled veterans by charitable organizations that The chief appraiser is also required,under Tax Code Section extends to surviving spouses who have not remarried. The 11.431 to accept and approve or deny an application for the amount of exemption is determined according to percentage surviving spouse after the deadline for filing has passed,if the of service-connected disability.43 application for the exemption is filed not later than two years Total Exemption after the delinquency date for the taxes on the homestead 49 A surviving spouse of a member of the U.S. armed services Veterans Organizations killed in action is allowed a total property tax exemption on Property owned by a veterans organization is exempt.Quali- his or her residence homestead if the surviving spouse has not fled veterans' organizations are defined as non-profit organi- remarried since the death of the armed services member.44 zations composed primarily of members or former members A disabled veteran who receives 100 percent disability com- of the armed forces of the United States or its allies and that pensation due to aservice-connected disability and a rating are chartered or incorporated by the U.S.Congress.51 of 100 percent disabled or individual unemployability from the United States Department of Veterans Affairs is entitled to an exemption from taxation of the total appraised value of the veteran's residence homestead45 If these veterans qualify 41 Tex.Tax Code§ 11.135 Tex.Tax Code§§ 11.42,26.10(c)and 26.1125 42 Tex.Tax Code§ 11.22 4' Tex.Tax Code§ 11.131 41 Tex.Tax Code§ 11.132 48 Tex.Tax Code§§ 11.131 44 Tex.Tax Code§ 11.133 49 Tex.Tax Code§ 11.431 45 Tex.Tax Code§ 11.131 50 Tex.Tax Code§11.23(a) 15 Property Tax Exemptions—5 Surviving Spouse of First Responder nonqualified person or business,the other use must be limited (Tax Code Section 11.134) to activities that benefit the people the organization serves" Texas law provides a total property tax exemption for the res- Community Land Trusts (Tax Code idence homestead of a surviving spouse of a first responder Section 11.1827) killed or fatally injured in the line of duty if the surviving spouse has not remarried since the first responder's death. Real and personal property owned by a community land This exemption applies regardless of the date of the first trust for the purpose of providing affordable housing for low- responder's death.If the surviving spouse is eligible for the income and moderate-income residents, promoting resident exemption and then qualifies a different property as a resi- ownership of housing, keeping housing affordable for future dence homestead,the surviving spouse is entitled to the same residents, and capturing the value of public investment for dollar amount of the former exemption that was last received long-term community benefit is exempt.56 The exemption must at the former homestead. The chief appraiser of the county be adopted by the governing body of the taxing unit before in which the former residence was located must provide to July 1.51 Once the exemption is allowed,it does not have to be the surviving spouse a written certificate so that the exemp- claimed in subsequent years unless the ownership changes or tion amount on the subsequent qualified homestead can be the person's qualifications for the exemption changes 58 determined." To receive the exemption,the trust must meet certain require- Charitable Organizations Generally ments of a charitable organization;own the land for the pur- pose of leasing it and selling or leasing housing units located (Tax Code Section 11.18) on the land; and engage exclusively in the sale or lease of Property owned by qualified charitable organizations is ex- housing as provided for in the Local Government Code Sec- empt. An organization must meet requirements regarding tion 373B.002.The trust must also conduct an annual audit how it is organized,what it does and how it uses its property. by an independent auditor and report the results of the au- The organization is limited to charitable activities that are dit to the local governing body and the chief appraiser.The listed in Tax Code Section 11.18.52 property cannot be exempted after the third year on which the trust acquired the property unless the trust is offering to Exemptions for charitable organizations require the proper- sell or lease the property or is leasing the property according ty owner to have a charter or bylaws dedicating property to to Local Government Code Chapter 373B.11 particular purposes and providing for disposition of property upon dissolution.53 The bylaws must pledge the group's prop- primarily Charitable Organizations erties to charitable purposes.The organization may not allow anyone to realize private gain from the organization's activi- (Tax Code Section 11.184) ties.54 In some cases,particularly involving medical care fa- Real and personal property owned by organizations engaged cilities,children's homes and nursing homes,questions may primarily in performing charitable functions is exempt. Be- involve whether the institution serves people who cannot pay fore applying for an exemption with the appraisal district,an for services as well as those who can. organization must obtain from the Comptroller's office a de- termination letter stating the organization is engaged primar- The exemption applies to property (buildings and land on ily in performing charitable functions. The chief appraiser which the buildings are located and personal property)owned must accept a Comptroller's office determination letter as by the charitable organization. The property must be used conclusive evidence that the organization engages primarily exclusively by the organization or other equally qualified or- in performing charitable functions and is eligible for exemp- ganizations. If part of the property is leased to or used by a tion.The chief appraiser determines if the organization uses 55 Tex.Tax Code§ 11.18 51 Tex.Tax Code§ 11.134 56 Tex.Tax Code§ 11.1827 and Tex.Loc.Gov't Code§373B.004 52 Tex.Tax Code§ 11.18 5' Tex.Tax Code§ 11.1827 53 Tex.Tax Code§ 11.18(f) S8 Tex.Tax Code§11.43(c) 54 Tex.Tax Code§ 11.18(e) S9 Tex.Tax Code§ 11.1827 6—Property Tax Exemptions 16 its property for its charitable purposes. An organization is limit of six years for contiguous property and three years for required to obtain a new Comptroller's office determination non-contiguous property." letter every fifth year after the exemption is granted.To im- plement the determination process, the Comptroller's office The exemption also applies to partially complete improve- has adopted rules and prescribed a form for applying for a ments or for physical preparation. The exemption for incom- determination letter.60 plete improvements lasts for three years 66 The exemption also applies to partially complete improve- Exemptions for religious organizations require the property ments or for physical preparation. The exemption for incom- owner to have a charter or bylaws dedicating property to par- plete improvements lasts for three years 61 ticular purposes and providing for disposition of property upon dissolution.67 Religious Organizations (Tax Code Section 11.20) Private Schools (Tax Code Section Places of religious worship and clergy residences owned by 11.21) qualified religious groups are exempt. Religious organiza- The school exemption applies to property used for school tions must be organized and operated primarily for religious purposes.As with charitable and religious organizations,the worship or the spiritual welfare of individuals.The religious school must use its assets in performing its function or the organization must meet requirements similar to those im- function of another educational organization 68 A property posed on charitable and youth organizations 62 owned by a religious organization and leased for use as a school may be exempt as a school 69 Generally, if an organization qualifies under this section, it may exempt property of the following types: actual places The exemption also applies to partially complete improve- of religious worship,personal property used at the place of ments or for physical preparation. The exemption for incom- worship,residences for clergy and personal property used at plete improvements lasts for three years70 the residences.A religious organization may use its assets in performing its functions or the functions of another religious Exemptions for private schools also require the property organization 63 owner to have a charter or bylaws dedicating property to particular purposes and providing for disposition of property Public property owned by the state or a taxing unit and leased upon dissolution." to a religious organization may receive the religious organi- zation exemption if the property is used as a place of regular public Property (Tax Code Section religious worship and meets other requirements of the Tax 11.11) Code.The religious organization applies and takes other ac- tion relating to the exemption as if the organization owned To qualify for the public property exemption, the state of the property.64 Texas or a political subdivision of the state must own the property. The property must be used for public purposes A property owned by a religious organization and leased for such as the health,comfort and welfare of the public. State- use as a school may be exempt as a school. A religious or- owned property is taxable if it is rented to a private busi- ganization's land held for expanding or constructing a place ness that uses it for something inconsistent with the agency's of worship may be exempt, so long as the land produces no duties. The property may not be used to provide housing to revenue during the holding period.The land exemption has a 65 Tex.Tax Code§ 11.20 66 Tex.Tax Code§ 11.20 61 Tex.Tax Code§ 11.184 67 Tex.Tax Code§ 11.20(c) 61 Tex.Tax Code§ 11.184 68 Tex.Tax Code§ 11.21 62 Tex.Tax Code§ 11.20 69 Tex.Tax Code§ 11.21 63 Tex.Tax Code§ 11.20 70 Tex.Tax Code§ 11.21 6a Tex.Tax Code§ 11.20 71 Tex.Tax Code§ 11.21 17 Property Tax Exemptions—7 the public other than students or agency employees.However, by the department and subject to a lease-purchase agreement if an educational institution uses the property primarily for providing that legal title to the improvement will pass to the instructional purposes and secondarily for residences, the department at the end of the lease term.74 property is exempt.Additionally,property held for the benefit of a state junior college,college or university is exempt under Tangible personal property leased to the state or a political the same conditions.72 subdivision is exempt if the property is subject to a lease- purchase agreement providing that the state or political sub- Property of a higher education development foundation or an division takes legal title to the property at the end of the lease alumni association located on land owned by the state for term.The exemption ends 30 days after the lease terminates the support, maintenance or benefit of a state institution of if the state or political subdivision does not take title to the higher education is exempt provided that the foundation or personal property.75 organization meets the requirement. The organization must be organized exclusively to operate programs or perform Real and personal property owned by a nonprofit corporation activities for the benefit of institutions of higher education. engaged primarily in providing chilled water and steam to Finally,the property must be used exclusively for those pro- certain health-related facilities is exempt. The corporation's grams or activities:' property would be considered as if it were owned by the state and used for health and education purposes.Certain facilities An improvement is considered owned by the state and prop- related to transportation leased to a private entity to provide erty used for public purposes if it is located on land owned transportation or for utility purposes are also exempt.76 by the Texas Department of Criminal Justice,leased and used 74 Tex.Tax Code§ 11.11 72 Tex.Tax Code§ 11.11 75 Tex.Tax Code§ 11.11 73 Tex.Tax Code§ 11.11 76 Tex.Tax Code§11.11 8—Property Tax Exemptions 18 Appendix A Tax Code Exemption General Application Provisions No Application Required Tax Code Section Exemption 11.11 Public Property 11.12 Federal Exemptions 11.14 Tangible Personal Property Not Producing Income 11.145 Income-Producing Tangible Personal Property Having Value Less Than$500 11.146 Mineral Interest Having Value of Less than$500 11.15 Family Supplies 11.16 Farm Products 11.161 Implements of Husbandry 11.25 Marine Cargo Containers Used Exclusively in International Commerce Annual Application Required Tax Code Section Exemption 11.111 Public Property Used to Provide Transitional Housing for Indigent Persons 11.1801 Charity Care and Community Benefits Requirements for Charitable Hospital 11.181 Charitable Organizations Improving Property for Low-Income Housing 11.1825 Organizations Constructing for Rehabilitating Low-Income Housing:Property Not Previously Exempt(Note:See provisions of 11.1826) 11.184 Organizations Engaged Primarily in Performing Charitable Functions(Note:Reapplication required every fifth tax year instead of annually.) 11.185 Colonia Model Subdivision Program 11.23(b)-(g),(i),(k)or(1) Miscellaneous Exemptions:Federation of Women's Clubs;Nature Conservancy of Texas; Congress of Parents and Teachers;Private Enterprise Demonstration Associations;Bison,Buffalo and Cattalo;Theater Schools;Community Service Clubs;Scientific Research Corporations;and Incomplete Improvements 11.24 Historic Sites 11.251 Tangible Personal Property Exempt 11.252 Motor Vehicles Leased for Personal Use 11.253 Tangible Personal Property in Transit 11.28 Property Exempted from City Taxation by Agreement 11.311 Landfill-Generated Gas Conversion Facilities 11.32 Certain Water Conservation Initiatives 19 Property Tax Exemptions—9 One-Time Application Required, Unless Requested by Chief Appraiser Tax Code Section Exemption 11.13 Residence Homestead 11.131 Residence Homestead of 100 Percent or Totally Disabled Veteran 11.132 Donated Residence Homestead of Partially Disabled Veteran 11.133 Residence Homestead of Surviving Spouse of Member of Armed Forces Killed in Action 11.134 Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty 11.17 Cemeteries 11.18 Charitable Organizations 11.182 Community Housing Development Organizations Improving Property for Low-Income and Moderate-Income Housing:Property Previously Exempt(Note:See provisions of 11.182(e)(3), 11.182(g)and 11.1826) 11.1827 Community Land Trust 11.183 Association Providing Assistance to Ambulatory Health Care Centers 11.19 Youth Spiritual,Mental and Physical Development Associations 11.20 Religious Organizations 11.21 Schools 11.22 Disabled Veterans 11.23(a),(h),(j),(j-1)or(m) Miscellaneous Exemptions:Veterans Organizations;County Fair Associations;Medical Center Development;Medical Center Development in Populous Counties;and National Hispanic Institute 11.231 Nonprofit community Business Organization Providing Economic Development Services to Local Community 11.254 Motor Vehicle Used for Production of Income and for Personal Activities 11.27 Solar and Wind-Powered Energy Devices 11.271 Offshore Drilling Equipment Not in Use 11.30 Nonprofit Water Supply or Wastewater Service Corporation 11.31 Pollution Control Property 11.315 Energy Storage System in Nonattainment Area 11.33 Raw Cocoa and Green Coffee Held in Harris County 11.437 Exemption for Cotton Stored in Warehouse 10—Property Tax Exemptions 20 Appendix B Other Property Tax Code Exemption Summaries Type Tax Code Section Summary Public property used to 11.111 This section exempts property owned by the United States or a federal provide transitional housing agency and used to provide transitional housing to the poor under a program for the indigent operated by the U.S.Department of Housing and Urban Development.The property is exempted only by ordinance or order of the taxing units in which the property is located. Federal exemptions 11.12 Property exempt from ad valorem taxation under federal law is exempt from taxation. Tangible personal property 11.14 Generally,all tangible personal property,other than manufactured homes, not used to produce income that is not held or used for production of income is exempt from property taxes.However,the governing body of a taxing unit may,by official action, continue to tax property other than family supplies,household goods or personal effects.A structure that is substantially affixed to real estate and is used or occupied as a residential dwelling is taxable.The term structure does not include trailer-type vehicles designed primarily for use as temporary living quarters in connection with recreational,camping,travel or seasonal use. Income-producing tangible 11.145 and 11.146 An owner's personal property used to produce income is aggregated to personal property and determine if the owner's total taxable value in each separate taxing unit is mineral interest property less than$500 and is exempt.The taxable value of a property owner's mineral having value of less than interests is aggregated to determine if the taxable value within each taxing $500 unit is less than$500 and is exempt. Family supplies 11.15 A family is entitled to an exemption from taxation of its family supplies for home or farm use. Farm products 11.16 Livestock,poultry,agricultural products,eggs and some nursery products are exempt when they are still in the hands of the person who raised them. Nursery products are exempt only if they are still growing on Jan.1.Livestock, poultry and eggs must be owned by the person who is paying for their care on Jan.1.Farm products include standing timber or timber that has been harvested and on Jan.1 is located on the real property on which it was produced and is under the ownership of the person who owned the timber when it was standing. Implements of husbandry 11.161 Machinery and equipment used for farming,ranching and timber production, regardless of primary design,is exempt. Cemeteries 11.17 Cemetery property is exempt.The property must be used exclusively for human burial.The property may not be held for profit. 21 Property Tax Exemptions— 11 Type Tax Code Section Summary Charity care and community 11.1801 To qualify as a charitable organization under Tax Code Section 11.18(d) benefits requirements for (1),a nonprofit hospital or hospital system must provide charity care and charitable hospital community benefits as follows:(1)at a level that is reasonable in relation to the community needs,as determined through the community needs assessment,the available resources of the hospital or hospital system,and the tax-exempt benefits received by the hospital or hospital system;(2)in an amount equal to at least 4 percent of the hospital's or hospital system's net patient revenue;(3)in an amount equal to at least 100 percent of the hospital's or hospital system's tax-exempt benefits,excluding federal income tax;or(4)in a combined amount equal to at least 5 percent of the hospital's or hospital system's net patient revenue,provided that charity care and government-sponsored indigent health care are provided in an amount equal to at least 4 percent of net patient revenue. Charitable organization 11.181 A charitable organization improving property for low-income housing is improving property for low- exempt if it meets the Tax Code requirements and uses volunteer labor to income housing build or repair housing for sale,without profit,to a low-income individual or family.Each property may be exempt for a maximum of five years after the property's acquisition date.Property that received an exemption based on its ownership by an organization that constructs or rehabilitates property and uses the property to provide affordable,low-income housing and that was subsequently transferred by that organization to a charitable organization is not exempted after the fifth year it was transferred.If the organization sells the property to an individual or family that is not low income,the chief appraiser enters a penalty in the appraisal records and notifies the organization and the buyer.The penalty is equal to the taxes that would have been imposed in each year the property was exempt plus 12 percent interest. Community housing 11.182 Improved or unimproved real property owned by an organization under Tax development organizations Code Section 11.182 is exempt if certain requirements are met.The statute (CHDOs)improving applies to CHDOs(as provided under 42 U.S.C.§12704)meeting requirements property for low-income of charitable organizations under Tax Code Section 11.18(e)and(f)and and moderate-income engaging exclusively in building or repairing property for sale or rent without housing(property previously profit to low-income or moderate-income individuals or families and related exempt) activities.An organization may qualify for an exemption only if it received an exemption under Tax Code Section 11.182 for the subject property for any part of the 2003 tax year.The statute includes restrictions on eligibility and requirements pertaining to,under specified conditions,the number of years property may be exempted,exemption in subsequent years for multifamily rental property of 36 or more dwelling units,certain property constructed after Dec.31,2001,property used for administrative purposes,property acquired or sold during the preceding year,and change in ownership.The statute includes requirements for preparation and delivery of annual audits. 12 —Property Tax Exemptions 22 Type Tax Code Section Summary Organizations constructing 11.1825 Real property owned by an organization underTax Code Section 11.1825 or rehabilitating low-income is exempt if certain requirements are met.Generally,the statute applies to housing property not organizations constructing or rehabilitating and using to provide housing to previously exempt individuals or families meeting certain income eligibility requirements and exemption is prohibited for housing projects constructed by an organization if construction was completed before Jan.1,2004.The statute provides for an exemption of 100 percent of appraised value of single-family dwellings subject to sale and,for multi-family or single-family dwellings subject to rental,an exemption of 50 percent of appraised value unless otherwise provided by a the governing body of a taxing unit any part of which is located in a county with a population of at least 1.8 million.An organization may not receive an exemption from a taxing unit located in a county with a population of at least 1.8 million unless the exemption is approved by the taxing unit's governing body.Under such circumstances,the statute sets forth a process by which an organization must submit a written request for exemption approval to a taxing unit's governing body and the governing body must take specified action on the request and,if the taxing unit approves the exemption,the chief appraiser must still make a determination that the property qualifies for an exemption. The statute includes restrictions on eligibility and requirements pertaining to, under specified conditions,status,history,policies,and board composition of the organization,income eligibility,housing project square footage reservation for certain individuals or families,rent,property owned for purposes of rehabilitation,transfer of property and change of ownership,appraisal requirements,and public notice of capitalization rates.Tax Code Section 11.1826 includes requirements for preparation and delivery of annual audits. Charitable associations 11.183 An organization that assists ambulatory health care centers is exempt if it is providing assistance to exempt from federal income tax;is funded by a grant under the Federal Public ambulatory health care Health Service§330;does not perform abortions or provide abortion services; centers and meets other Tax Code requirements. Colonia Model Subdivision 11.185 Unimproved real property owned by an organization under the colonia model Program subdivision program is entitled to an exemption if the organization meets the requirements of Tax Code Section 11.18(e)and(f);purchased the property or is developing the property with proceeds of a loan from Texas Department of Housing and Community Affairs;and owns the property for the purpose of developing a model colonia subdivision.Buildings and tangible personal property used for administration can also qualify for an exemption.Penalty with 12 percent annual interest may be assessed under certain circumstances if the property is sold. Youth spiritual,mental 11.19 The property of qualified youth development groups affiliated with a state and physical development or national organization is exempt.A youth development association may associations use its property in performing its functions or the functions of another youth development organization.The exemption also applies to partially complete improvements or physical preparation.The exemption for incomplete improvements lasts only three years. Miscellaneous exemptions 11.23 The miscellaneous exemptions apply to specific entities,such as veteran's organizations,theater schools and medical center development,as well other exemptions.See the Tax Code for more information. 23 Property Tax Exemptions— 13 Type Tax Code Section Summary Nonprofit community 11.231 An association that qualifies as a nonprofit community business organization business organization is entitled to an exemption from taxation of buildings and tangible personal providing economic property it owns and uses exclusively to perform its primary functions.The development services to exemption also applies to real property owned by the organization consisting local community of an incomplete improvement that is under active construction or other physical preparation and is designed and intended to be used exclusively by qualified nonprofit community business organizations.It also applies to the land on which the incomplete improvement is located that will be reasonably necessary for the use of the improvement. Use of exempt property by non-qualified nonprofit community business organizations does not result in the loss of an exemption if the use is incidental to use by qualified nonprofit community business organizations and limited to activities that benefit the beneficiaries of the nonprofit community business organizations that own or use the property. Historic or archeological 11.24 To qualify for the historic or archeological site exemption,a structure must be sites designated a historic building or archeological site and the taxing unit must vote to grant an exemption.The structure must be designated as a Recorded Texas Historic Landmark by the Texas Historical Commission or the taxing unit must designate it as historically significant and in need of tax relief.The taxing unit decides the amount of the exemption. Marine cargo containers 11.25 Marine cargo containers used exclusively in international commerce are used exclusively in exempt.A marine cargo container is a container used to transport goods international commerce by ship,readily handled without reloading to transfer from one mode of transport to another and used repeatedly.The definition also includes a container that is fully or partially enclosed,has an open top suitable for loading or consists of a flat rack suitable for securing goods onto the container.The exemption is limited to property owned by a citizen or entity of a foreign country and taxed in a foreign country. Goods exported from Texas 11.251 The Tax Code provides for a freeport exemption to implement Art.VIII,Sec.1-j of the Texas Constitution which exempts goods,wares,ores,merchandise and other tangible property,other than oil,gas and petroleum products(defined as liquid and gaseous materials immediately derived from refining petroleum or natural gas)and aircraft or repair parts used by a certified air carrier.The freeport goods qualify if they leave Texas within 175 days of the date they are brought into or acquired in the state.Freeport goods that are aircraft parts may qualify if they leave the state within 730 days of being acquired or brought into the state,but this extension requires official action by the taxing unit. Leased vehicles for personal 11.252 Motor vehicles(passenger cars or trucks with a shipping weight of not use more than 9,000 pounds)leased for personal use are exempt.Personal use means 50 percent or more of its use,based on mileage,is for activities that do not involve the production of income.By rule,the Comptroller's office has established exemption application requirements and procedures to determine whether a vehicle qualifies.The lessee completes a Comptroller- adopted form certifying under oath that the vehicle is not primarily used for the production of income.The owner(lessor)maintains the lessee executed forms for inspection and copying by the appraisal district.The owner renders nonexempt vehicles for taxation and provides the chief appraiser with an additional list of all leased vehicles.A city,by ordinance adopted before Jan.1, 2002,may tax personal-use leased vehicles. 14—Property Tax Exemptions 24 Type Tax Code Section Summary Tangible personal property 11.253 The Tax Code provides for an exemption for goods-in-transit to implement in transit Art. ll,Sec.1-n of the Texas Constitution.Goods in transit are goods acquired inside or outside the state,stored under a bailment contract by a public warehouse operator at one or more public warehouse facilities that are not in any way owned or controlled by the owner of the property who acquired or imported the property and then shipped to another location in or out of this state within 175 days.The goods do not include oil,gas or petroleum products or special inventories such as motor vehicles in a dealer's retail inventory.To tax goods in transit,taxing units must take official action. Motor vehicle used for 11.254 One passenger car or light truck,if it is owned by an individual and used in production of income and the individual's business or profession and also used for personal activities, for personal activities is exempt.The exemption does not apply to vehicles used to transport passengers for hire. Solar-and wind-powered 11.27 Persons who install a solar-or wind-powered energy device to produce energy devices energy for onsite use are entitled to exempt the amount of value the device contributes to their property. Offshore drilling rigs 11.271 Offshore drilling rigs that are stored in a county bordering the Gulf of Mexico or a bay or other body of water immediately adjacent to the Gulf of Mexico are exempt.Drilling rigs are exempt only if they are stored for a purpose other than repair and are not used for drilling.They must be designed for offshore drilling.Personal property that is used or part of an offshore spill response system is exempt if the system is being stored while not in use in a county bordering the Gulf of Mexico or a bay or other body of water immediately adjacent to the Gulf of Mexico.Certain ownership requirements apply. Personal property used in connection with the exploration or production of oil or gas is not exempt as an offshore spill response containment system. Tax abatement 11.28 Property owners who have entered redevelopment and tax abatement agreements with local taxing units under Tax Code Chapter 312 are allowed to exempt all or part of the property's value from taxation. Nonprofit water supply 11.30 Property owned and reasonably necessary for a nonprofit water supply or or wastewater service wastewater service corporation's functions is exempt.The exemption also corporations applies to partially complete improvements or for physical preparation.The exemption for incomplete improvements lasts for three years. Pollution control 11.31 Property acquired after Jan.1,1994 and used for pollution control may receive an exemption.The exemption applies to all or part of real and personal property used solely or partly as a facility,device or method to control air,water or land pollution.The exemption also applies to an extensive list of clean energy technologies that are used to control pollution.The Texas Commission on Environmental Quality(TCEQ)is required to adopt rules to create a list of facilities,devices or methods to control pollution that are eligible for exemption.Property not eligible for the exemption includes residential;park or scenic land;vehicles;property subject to a tax abatement agreement before Jan.1,1994;and property owned by a person or company that manufactures pollution control equipment or provides pollution control services.To qualify for a use determination,the person or company must apply to TCEQ for a permit or permit exemption.TCEQ notifies the chief appraiser about the application and determines the proportion of the property that is used for pollution control.Then,TCEQ issues a determination letter to the applicant.The property owner sends the letter with the exemption application to the appraisal district.The chief appraiser must accept the letter's determination as conclusive evidence for the exemption. 25 Property Tax Exemptions— 15 Type Tax Code Section Summary Landfill-generated gas 11.311 A person is entitled to an exemption on personal property that is located on conversion facilities or in close proximity to a landfill and is used to collect gas generated by the landfill;compress and transport the gas;process the gas;and deliver the gas. This property is considered used as a facility,device or method for the control of air,water or land pollution. Energy storage system in 11.315 Energy storage systems used,constructed,acquired or installed to meet or nonattainment area exceed air pollution laws,rules and regulations is exempt if the governing body of the taxing unit provides for the exemption by official action.It must be in an area designated as non-attainment;be in a municipality with a population of at least 100,000 adjacent to a municipality with a population of more than two million;have 10 megawatt capacity;and be installed on or after Jan.1,2014. Certain water conservation 11.32 Property designated by a taxing unit as property upon which approved local initiatives initiatives have been implemented may be exempt.The taxing unit may exempt part or all of the value of property with approved water conservation, desalination or brush control initiatives.The taxing unit's governing body must designate approved initiatives by adopting an ordinance or other law. Raw cocoa and green coffee 11.33 This section exempts all raw cocoa and green coffee held in Harris County. held in Harris County The owner need not claim the exemption,once granted,in subsequent years unless requested by the chief appraiser. Cotton Stored in Warehouse 11.437 A person who operates a warehouse used primarily for the storage of cotton for transportation outside of Texas may apply for an exemption under Tax Code Section 11.251 for the cotton stored in the warehouse on behalf of all the owners of the cotton.The cotton must be eligible for a freeport exemption under Tax Code Section 11.251 and is presumed to have been transported outside of Texas not later than 175 days after the date the cotton was acquired or imported into Texas. 16—Property Tax Exemptions 26 Appendix C Residence Homestead Exemptions Tax Code Total or Mandatory or Exemption Section Taxing Unit Partial Local Option Amount General Residence Homestead 11.13(b) School Districts Partial Mandatory $25,000 An amount up to 20 percent of the property's General Residence Cities,Counties,School value,but not less than Homestead 11.13(n) Districts or Special Districts Partial Local Option $5,000 Farm-to-Market Roads or Flood Mandatory(if Control(if collected) 11.13(a) Counties Partial collected) $3,000 Age 65 or Older or Disabled 11.13(c) School Districts Partial Mandatory $10,000 An amount adopted by Age 65 or Older or Cities,Counties,School the taxing unit,but no Disabled 11.13(d) Districts or Special Districts Partial Local Option less than$3,000 An amount determined by the percentage of Cities,Counties,School service-connected Disabled Veterans 11.22 Districts and Special Districts Partial Mandatory disability Disabled Veterans with An amount determined Homes Donated by the percentage of by Charitable Cities,Counties,School service-connected Organizations 11.132 Districts and Special Districts Partial Mandatory disability 100 Percent Cities,Counties,School 100 percent of the Disabled Veterans 11.131 Districts and Special Districts Total Mandatory property's value Surviving Spouse of U.S.Armed Services Member Killed in Cities,Counties,School 100 percent of the Action 11.133 Districts and Special Districts Total Mandatory property's value Surviving Spouse of First Responder Killed or Fatally Injured in the Line Cities,Counties,School 100 percent of the of Duty 11.134 Districts and Special Districts Total Mandatory property's value 27 Property Tax Exemptions— 17 For more information,visit our website: comptroller.texas.gov/taxes/property-tax In compliance with the Americans with Disabilities Act, this document may be requested in alternative formats by calling toll free 800-252-5555. Sign up to receive email updates on the Comptroller topics of your choice at comptroller.texas.gov/subscribe. Texas Comptroller of Public Accounts Publication#96-1740 February 2018 28 Date: July 5, 2019 Report No. 2019-136 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Artificial Turf on Sports Fields BACKGROUND: At the May 7, 2019, City Council meeting, Council Member Armintor requested information on the cost of adding Artificial Turf on sports fields. DISCUSSION: Artificial turf is becoming more popular in the recreational sports environment. This is due to the benefits of the extended use time of the artificial turf versus natural grass. The availability of artificial turf provides a durable surface, ability to play during inclement weather and, elimination of wear and tear on the playing surfaces. This year, the City of Denton had two large softball tournaments rained out in 2019. This resulted in PARD refunding $6,192.50 in revenue. These cancelations also resulted in a loss of economic impact to the community. PARD staff currently limits the number of tournaments to 15 weekends per year. This limitation is placed to assure that the fields are not overused which reduces the quality of the playing surface. This balance also aids in reducing the number of repairs that need to be completed due to heavy use. Renovating existing fields to artificial turf field could result in PARD offering 35-45 tournament weekends each year. With the artificial turf in place, tournaments would less frequently be canceled due to the weather. Tournament directors,teams and participants could depend on events not being canceled, which could result in Denton serving as a destination. Over the past number of years, communities have become very competitive with sports tourism due to the economic benefits of out-of-town visitors. Converting existing fields to artificial turf would require a capital investment.North Lakes Softball Field Complex would cost an estimated$900,000 per field to convert to full artificial turf(6 fields x $900K= $5.4M). The price would include keeping the existing facilities and fencing, removing all dirt and grass, and replacing the native material with artificial turf. An analysis was provided by AstroTurf in Exhibit A, providing a comparison for the capital and maintenance costs for artificial and natural turf. Based on the comparison, artificial turf is more expensive overall but the number of hours available for use and cost per hour supports the installation of artificial turf. Artificial turf requires less maintenance than natural grass and it does not need to be mowed. Currently all sports fields maintained by PARD are mowed 2 times per week. The artificial turf 29 Date: July 5, 2019 Report No. 2019-136 only requires a 1/4 of the water needed for natural grass fields. It is estimated that this could achieve savings of approximately $75,000 annually. The water is used to clean the artificial turf and to keep the temperatures lower on the surface. Artificial turf does require machinery to broom the turf to return infills to the proper place after heavy use. This normally takes place once every two weeks to once a month, depending on use. Currently, natural grass fields are lined, dragged, fertilized, leveled, and weed treated throughout the year. Frequency depends on the season and type of sports programmed at the time. Artificial turf does not need any of those services to be ready for play. The time saved from maintenance increases the play time on the fields,resulting in a less cost per hour of play and, an increase in recreational use for the community. Technological enhancements have been made in the artificial turf industry that decreases typical heat effects associated with artificial turf. The traditional shredded black rudder is being replaced with recyclable organic materials. These new materials consist of cork, engineered wood particle, crushed coconut shell infill, and coated sand. Natural infill products enhance the ability to recycle the artificial turf. The infill is removed and put into compost, while the artificial turf is then recycled via plastic. CONCLUSION: PARD staff will continue to investigate and evaluate options for the conversion of existing fields. In addition, when new fields are planned, staff will obtain comparisons for both natural and artificial turf. If City Council would like PARD staff to move forward with requesting official quotes to convert baseball, softball and/or soccer fields, staff can complete that task as directed. STAFF CONTACT: Drew Huffinan, Parks Superintendent drew.huffman(&,cityofdenton.com REQUESTOR: Council Member Armintor PARTICIPATING DEPARTMENTS: Parks and Recreation STAFF TIME TO COMPLETE REPORT: 5 Hours 30 powered by sportgroup The first name in nirl-...and all that's around it Comparing Natural and Synthetic Turf Systems Costs shown below are based on a 10-year usage cycle. Natural Turf 80 Hours per Year 100 Hours per Year Initial Construction: $300,000.00 $300,000.00 Maintenance Cost($20,000 -$30,000/year X 10 years): $200,000.00 $300,000.00 Remedial Repair: $ 5,000.00 $ 5,000.00 Major Renovation: $ 40,000.00 $ 40,000.00 Total Anticipated Cost of Ownership: $545,000.00 $645,000.00 Total Anticipated Hours of Use: 800 1,000 Cost per Hour: $ 681.25 $ 600.00 Synthetic Turf 1,100 Hours per Year 1,500 Hours per Year Initial Construction: $750,000.00 $750,000.00 Maintenance Cost($2,000-$5,000/year X 10 years): $ 20,000.00 $ 50,000.00 Total Anticipated Cost of Ownership: $770,000.00 $800,000.00 Total Anticipated Hours of Use: 11,000 15,000 Cost per Hour: $ 90.00 $ 53.33 As the comparison above illustrates,the usage rate is appreciably greater and cost per event is considerably less with synthetic turf. Today's synthetic turf systems provide performance characteristics unavailable in previous artificial turf systems or natural grass. System Attributes: Natural Turf Synthetic Turf + Natural appearance + Improved safety +The smell of grass + Improved Durability + Lower initial investment+ + Unmatched Consistency - More expensive to maintain + Playability - Limited usage + Unlimited usage - Weather sensitive + Unaffected by weather - Labor intensive + Minimal maintenance required - Field conditions deteriorate during the season + Unaffected by intense play - No down time for field to recover from use + Usable by every team and the marching band + Available for practices and games + Possible revenue from additional field rentals - Greater initial investment ekorfa n° 02680« 2680 Abutment Road,Dalton,GA 30721 "ray.. .oUvAG, %M pelviad TF.(800)723-TURF(8873) help@astroturf.com powered by sportgroup ,. 31 2 AstroTurf®: The Industry Innovator for over 50 years! AstroTurf®is uniquely positioned to help you meet your goal to provide quality facilities, built by experienced contractors and business partners. Our remarkable resurgence as an industry leader and controlled growth is a testament to our entire organization executing our plan and doing_ exactly what we tell our customers we will do. We're not perfect and there have been challenges along the way. In short,we're only done with the field when you are completely delighted with the field, both technically and visually. AstroTurf®employs three simple principles to guide our business and interface with our clients.They are as follows: • Provide our clients with a custom solution to using state-of-the-art products from the world's leading suppliers and produced in our own factories • Employ repeatable, precision construction methods using only experienced and proven installation crews to ensure consistent quality on every field • Provide world class customer service and after care that can't be found elsewhere within the industry Our reputation for excellence and exceeding our clients'expectations is what has propelled us to where we are today. Here are a few additional facts about our company: • AstroTurf®is owned by SportGroup Holdings,the largest sports surfacing company in the world including Advanced Polymer Technologies, Rekortan, Melos, PolyTan, Laykold and ProGrass • AstroTurf®charter member of the Synthetic Turf Council • We are the first company in both the"manufacturer"and "builder"categories to be recognized as a STC Certified Member • AstroTurf® is a member in good standing of the American Sports Builders Association (ASBA) • AstroTurf®employs ASBA Certified Field Builders on staff • We constructed 200+fields in each of the last five years; 300+ in both 2015 and 2016 • AstroTurf®holds a nationally solicited contract to offer our products through National - IPA • We're bondable up to$15,000,000.00 per site and have a $100,000,000.00 capacity • Our AstroTurf®products far exceed the published minimum specifications of the industry • Our Dalton, Georgia based manufacturing facilities are the country's leading producer of synthetic turf products and the most vertically integrated manufacturer in the industry • AstroTurf® is the industry leader in eco-friendly products and practices We believe that educating our clients with accurate information is the best approach to helping them make an informed decision. At the end of the day,you will make a decision that best meets the needs of your students' health,the usage demands of your community and your institution's budget. We are committed to making your experience in this process a positive one. Creating delighted clients is our business. Thank you for considering AstroTurf®for your project. We appreciate the opportunity to earn your business. Updated 1.31.19 MSS AstroTurt. Rekortang 32 Date: July 5, 2019 Report No. 2019-137 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Solar Energy Installation at Water and Wastewater Facilities BACKGROUND: City Council requested that staff provide a report of the potential savings or costs to the City associated with the installation of solar panels to meet the electric demands of the water and wastewater facilities. DISCUSSION: Contained within the proposed budgets for water and wastewater is a significant expenditure for electric power from DME. Both the water and wastewater utilities pay DME the Renewable Cost Adjustment (RCA) of $0.004/kwh to ensure that all electric energy used by the facilities is renewable. The budgeted amounts of electric energy for fiscal year 2019/2020 are $1,410,789 for the water utility and $1,221,000 for the wastewater utility. When DME achieves the goal of the Renewable Denton plan sometime in 2021 or 2022, there will be no need for customers to pay the RCA as all energy will be renewable. This reduction in cost will save water and wastewater approximately$111,793 per year based upon historical demand. DME personnel met with water and wastewater to discuss the type of analysis needed to evaluate the economic feasibility of installing solar panels at the major facilities of each utility. The economic screening analysis performed by DME that is provided herein is intended to provide a very high-level assessment of the economic feasibility of such a program. The screening analysis does not include any discussion of the physical requirements necessary to install solar panels and ancillary equipment such as the number of acres required per facility, the structural ability of existing roof systems to carry the load of the solar panels, sufficient land for construction lay- down,the impact of installation on operation of the facilities,the interconnection requirements for integrating the solar generation systems with the DME distribution grid, etc. That level of analysis will be required if the Council decides to pursue this approach. The screening analysis utilizes public information provided by the Department of Energy's National Renewable Energy Laboratory(NREL) on the capital, maintenance and operating costs for rooftop solar installations. The costs provided by NREL do not include the cost of land acquisition or structural improvements on existing buildings to meet local building codes. Analytical Approach: DME obtained multiple years of actual electrical demand for each meter at a water or wastewater utility facility. This meter data was then filtered and segregated to hours that 33 Date: July 5, 2019 Report No. 2019-137 a solar generation facility could provide energy and hours in which DME would be required to provide energy. Generally the daylight hourly demand of the facilities were modeled to be met with solar arrays sized to meet the peak demand of the facility. Energy required during non-solar generation periods was modeled to be supplied by DME using current rates and adjusted for removal of the RCA in 2022. To monetize the value of the Investment Tax Credits available to solar generation facilities and achieve the lowest cost of energy, DME assumed the solar arrays and associated equipment would be owned by a third party and the water or wastewater utility would enter into a 20-year Power Purchase Agreement (PPA). The financial model used assumed that the projects would be 80% debt financed and achieved a pre-tax internal rate of return to the owner of 21%. The cash flows required to support this debt and equity return were used to price the solar energy. The result of this deal structure is that the City would not have to issue bonds or take on incremental debt to support the installation of the solar panels. The effective price of the PPA was calculated at $0.18/kWh as compared to the all-in rate for DME of$.09164/kWh. The results of the analysis including the net present value to city for the water and wastewater systems are presented in the table below: Denton Wastewater System Capacity Factor 17% Size of Solar(kW) 1604.88 Solar Cost ($/kWh) $ (0.18) #of Acres 2.43 NPV No Solar Cost $ (7,254,985.18) NPV Solar Cost $(11,714,586.01) Delta (Additional Cost) $ 4,459,600.83 Renewable 22% Denton Water System Capacity Factor 17% Size of Solar(kW) 2139.00 Solar Cost ($/kWh) $ (0.18) #of Acres 3.24 NPV No Solar Cost $ (9,574,610.55) NPV Solar Cost $(15,518,417.53) Delta (Additional Cost) $ 5,943,806.98 Renewable 22% 34 Date: July 5, 2019 Report No. 2019-137 CONCLUSION: Because DME will provide 100% renewable energy to the water and wastewater utilities of the City of Denton at a current cost of approximately $0.09164/kWh and that price will drop to $0.091264 when DME achieves the Renewable Denton Plan, the construction of solar panels at water and wastewater facilities that are estimated to produce energy at the rate of$0.18/kWh only increases the cost of water and wastewater operations. The screening analysis definitively demonstrates that the net present value of the incremental costs that would have to be recovered from citizens and customers of these utilities is in excess of $10 million. The average annual increased energy cost for these combined utilities is estimated at over$851,000 per year were such systems installed. STAFF CONTACT: Terry Naulty Asst. General Manager DME Terry.naulty(a-,cityofdenton.com (940) 349-7565 REQUESTOR: Council Member Briggs PARTICIPATING DEPARTMENTS: DME, Utilities Administration STAFF TIME TO COMPLETE REPORT : 41 hours 35 Date: July 5, 2019 Report No. 2019-138 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Research related to requiring City contractors to pay their employees a living wage. EXECUTIVE SUMMARY: Texas law allows for cities to adopt requirements for city contractors to pay a living wage and there are a number of cities in Texas that have passed resolutions. BACKGROUND: Requests were made on June 3, 2019 during the Council work session on living wage to provide additional options for incentivizing current contractors to pay a living wage and to provide options to revise evaluation criteria to require bidders provide a list of employees' salaries as part of their bid submissions. DISCUSSION: The City currently does not compel city contractors to pay a certain wage above the federal minimum wage for non-construction contracts. However, below are a few options which may allow the City to determine whether contractors are paying a living wage and require or incentivize city contractors to pay a living wage. Auditing Under Current Contract The City may be able to request current contractors provide payroll information if the City were to perform an audit under any existing contract provisions allowing an audit'. Records received by the City in the course of a contract audit could be subject to the Texas Public Information Act and potentially be made public in response to an open records request. Requiring Wage Information for Renewal of Contract Another option is for the City to request payroll information from the contractor before renewing current contracts. In some instances the City may be able to choose not to renew a contract if adequate payroll information is not provided by the contractor.2 This practice would require additional staff time to administer and City operations could be negatively impacted if planned contract renewals were not executed. It is not recommended the City acquire detailed payroll records for individual employees of city contractors. 1 Prior to moving forward,this option would require a review of specific contract provisions to determine if the City has a right to perform an audit and whether payroll records are encompassed within the audit provisions of the contract. 2 This option may be limited in situations where current contracts contain specific language about how and when a renewal occurs. A review of contracts coming up for renewal would have to be performed to determine if requiring payroll information prior to renewal is an option. Future contracts could be drafted to contain language requiring payroll information prior to renewal. 36 Date: July 5,2019 Report No. 2019-138 Requiring Wage Information in Procurement The City can require vendors provide payroll information as part of bid submissions. For example, vendors for non-construction services could be required to identify what positions are required to perform the contracted services and provide a salary range for each identified position as part of their submission. It is not recommended bidders provide detailed payroll records for individual employees. Adding Living Wage to Evaluation Criteria for Procurement The City Council can adopt evaluation criteria for competitive proposals that considers, among other important factors, a vendor's approach to employee pay rates and other related considerations. This could be done for specific categories of contracts, such as general services. The City of Dallas adopted evaluation criteria for general services as listed in Table 1. The `Planned Approach' category has several subsections including rate of hourly pay for employees directly working on city contracts. City of Dallas requires bidders sign an affidavit affirming they comply with the City's living wage policy, if bidders do not sign the affidavit their proposals are deemed non-responsive. A non-responsive proposal is not evaluated or recommended for contract award. Evaluation Criteria Points Cost 35 Planned Approach 35 Experience and Capabilities 15 Business Inclusion and Development 15 Total 100 Table 1. City of Dallas Evaluation Criteria for General Services Dallas requires an annual report be provided by the contractor showing they have complied with the city's requirement and the city can audit contractors as well. STAFF CONTACT: Cassey Ogden Director of Compliance (940)349-7195 Cassandra.Ogden(&,cityofdenton.com REQUESTOR: Council Member Briggs, Council Member Davis PARTICIPATING DEPARTMENTS: Purchasing and Procurement STAFF TIME TO COMPLETE REPORT: 8 hours 37 Date: July 5, 2019 Report No. 2019-139 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Economic Development Investment Fund EXECUTIVE SUMMARY: The City Council created the Economic Development Investment Fund in 2016 to increase the City's competitiveness in the recruitment and retention of large or targeted companies. Currently, $150,000 of mixed beverage tax revenue serves as the dedicated funding source, and the Fund is projected to have a fund balance of$619,682 at the end of the current fiscal year. BACKGROUND: The concept of an economic development fund was discussed as early as 2014 during a joint meeting of the Economic Development Partnership Board(EDPB) and City Council. Following that discussion, staff brought forward additional information and accounting standards in 2015. In 2015, an Investment Action Team was formed to implement the Denton Rising: An Economic Development Action Agenda, prepared by DADCO Consulting, with one of the designated goals being to make a recommendation regarding an investment fund. Based on the feedback from the Action Team, the EDPB made a formal recommendation to City Council to create the Economic Development Investment Fund in the next fiscal year with a $1 million fund balance and with a goal to achieve a$2 million dollar fund balance within two years on August 25, 2015. While the Fund was eventually created, these parameters were not included in the authorizing ordinance. As part of the FY 2015-16 budget, the City Council approved an allocation of$150,000 for the Economic Development Investment Fund. Council chose to dedicate funding through mixed beverage tax revenue that was previously accounted for in the General Fund. At the time, the Council asked for guidelines for the Investment Fund and additional information to be brought back in 2016. The Economic Development Investment Fund was formally created by City Council on August 16, 2016,by Ordinance No. 2016-229 (attached as Exhibit 1). The Investment Fund is designed to provide a cash grant program to increase Denton's ability to compete for large or targeted economic development projects, and the creation of the Fund established a dedicated source of revenue through which to fund those grants. The Fund is considered a tool to help accomplish Denton's objective of locating targeted, new economic development projects in the community. Starting with FY 2015-16, the City Council authorized an annual allocation of$150,000 of mixed beverage tax revenue that flows into the Fund each year. The Fund was set up in accordance with Governmental Accounting Standards Board(GASB) Statement 54 as a Special Revenue Fund to account for specific revenue sources that are restricted or committed to expenditures for purposes other than debt service or capital projects. As a Special Revenue Fund, 38 Date: July 5, 2019 Report No. 2019-139 any dollars not expended from the Investment Fund are rolled over and accumulated as fund balance. Table 1 summarizes the flow of funds into the Economic Development Investment Fund since its creation. As a Special Revenue Fund, the Investment Fund is included in the City's annual budget, but is separate from the Economic Development department budget (which is funded through the General Fund). Table 1: Economic Development Investment Fund Sum ma Fiscal Year Revenue Expenditures Ending Fund Balance Mixed Bev. Tax Interest Income 2015-16 $150,000 $223 $0 $150,223 2016-17 $150,000 $1,867 $0 $302,090 2017-18 $150,000 $5,857 $0 $457,947 2018-191 $150,000 $11,735 est. $0 $619,682 est. 2019-202 $150,000 $5,000 est. $0 $774,682 est. To date, the City has received one application for a cash grant through the Investment Fund,but the application was withdrawn from consideration. The criteria to use the Investment Fund were established in both its authorizing ordinance (Ordinance No. 2016-229) and incorporated in the Denton Policy for Tax Abatement and Incentives (adopted by Resolution No. 18-148 and attached as Exhibit 2). According to both policies, in order to be eligible to receive a grant under this program, a company must meet at least two of the following criteria: • Provide higher-wage3 or knowledge-based jobs4; • Make a substantial capital investments; and • Address a recruitment or supplier target6. In order to administer the grant, the City requires that grants be performance-based and made via a City Council approved Chapter 380 agreement. 'With no planned expenditures in FY 2018-19,the estimated fund balance at the end of the current fiscal year will be$619,682. 2 Staff have included the$150,000 allocation in the proposed FY 2019-20 budget and have not proposed any expenditures at this time. Staff estimates a fund balance of$774,682 by the end of the fiscal year. s Higher-wage jobs are defined as having an average annual wage of$55,000 or greater for all positions or at least 25%of the positions have an annual wage of$65,000 or greater. 4 Knowledge-based jobs are defined as occupations which:require specialized and theoretical knowledge,usually acquired through a college education or through work experience or other training which provides comparable knowledge;require some research,analysis,report writing,and presentations;and,require special licensing, certification,or registration to perform the job task. 5 Substantial capital investment is defined as a minimum of$15 million. 6 Recruitment or supplier target includes aviation;advanced manufacturing;renewable energy;research and development;information technology; supply chain logistics and distribution;large consumers of municipal utilities. 39 Date: July 5, 2019 Report No. 2019-139 DISCUSSION: Although the Investment Fund has been established and is operating as designed in terms of securing a dedicated source of revenue to be available for cash incentives, there are some additional policy considerations that Council may wish to consider moving forward. During a review of the Investment Fund history above, staff noted that the original EDPB recommendation included a targeted fund balance but the approved design of the Fund did not include that requirement. At a recent EDPB meeting,board members requested to possibly reconsider including parameters related to a minimum or targeted maximum threshold for dollars to be held in the Fund. For example, currently there is no limit of how much fund balance can be accumulated, and, should an amount of funds be granted to a company, there is no required minimum balance that the Fund must maintain. The EDPB asked that further discussion be had regarding those parameters. Also, during the June 12, 2019 Economic Development Partnership Board meeting, board members requested an assessment to determine if the current$150,000 per year funding dedication was sufficient to give the City the funds needed to be competitive. The EDPB board requested additional discussions about the possibility of increasing the funding and ensuring that a stable revenue source was identified and secured to replenish the Fund if expenditures are made. Staff plans to bring back a discussion of the Fund to the EDPB at a future meeting. If the EDPB or Council want to consider increasing the amount of dedicated funding per year, a supplemental request would need to be added for the FY 2019-20 proposed budget for consideration. One alternative funding mechanism that has been considered is dedicating dollars from incentives as they terminate. Staff conducted a 10-year analysis of expiring incentives detailed in Exhibit 3. If this method of funding was used, expiring Chapter 380 incentives (including sales tax, construction sales and use tax, and property tax)would generate $8.2 million for the fund over a 10-year period. In addition, if expiring tax abatements and TIRZ funds were included, the total would be $10.8 million. If the EDPB or Council wanted to consider amending the Investment Fund, both the Investment Fund ordinance and the Tax Abatement and Incentive Policy would need to be amended. Pursuant to the Texas Tax Code Section 312.002(c), the City's Tax Abatement and Incentive Policy is effective for two years from the date of adoption. During that period, the guidelines and criteria may be amended or repealed by a vote of three-fourths of the members of the governing body. Since the current Policy was adopted on March 20, 2018, the Policy will need to be reviewed and possibly amended in early 2020. If EDPB or City Council would like to amend the section guiding the use of the Incentive Fund, staff can bring back that discussion either prior to or during the Incentive Policy review. 40 Date: July 5, 2019 Report No. 2019-139 ATTACHMENT(S): Exhibit 1 —Ordinance No. 2016-229 Creating Economic Development Investment Fund Exhibit 2—Resolution 18-148 Denton Policy for Tax Abatements and Incentives Exhibit 3 —Expiring Incentive Analysis STAFF CONTACT: Jessica Rogers Director of Economic Development (940) 349-7531 Jessica.Rogers&cityofdenton.com Erica Sullivan Economic Development Analyst (940) 349-7731 Erica.Sullivan(d),cityfodenton.com REQUESTOR: Council Member Briggs PARTICIPATING DEPARTMENTS: Economic Development, Finance (Accounting and Budget) STAFF TIME TO COMPLETE REPORT: 5 hours 41 sAlegal\our d0cuments\ordinances\16\ed investment fund ord 051916.doex ORDINANCE NO. 20 x 6-229 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ESTABLISHING AN ECONOMIC DEVELOPMENT INVESTMENT FUND; DEFINING AND COMMITTING CERTAIN REVENUES OF THE CITY; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton elects to establish a Special Revenue Fund to be called the Economic Development Investment Fund; and WHEREAS, the Governmental Accounting Standards Board ("GASB") has adopted Statement 54, which states that Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects; and WHEREAS, the City Council of the City of Denton elects to commit $150,000 annually of the mixed beverage taxes previously accounted for in the General Fund for Economic Development activities beginning with fiscal year ending September 30, 2016; and WHEREAS, the City Council of the City of Denton approved a budget of$150,000 for FY 2015-16 for Economic Development activities; and WHEREAS, the City Council of the City of Denton elects to establish the Economic Development Investment Fund in conjunction with its financial statements beginning with fiscal year ending September 30, 2016; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby creates the Economic Development Investment Fund, an official fund of the City of Denton, Texas. SECTION 2. In order to be eligible to receive a grant under this program, a company must meet at least two of the following criteria: 1) providing higher-wage or knowledge-based jobs; 2) making a substantial capital investment; and 3) addressing a recruitment or supplier target. Higher-wage jobs are defined as having an average annual wage of $55,000 or greater for all positions or at least 25% of the positions have an annual wage of$65,000 or greater. 42 sAlegal\our documents\ordinances\16\ed investment fund ord 051916.docx Knowledge-based jobs are defined as occupations which: • Require specialized and theoretical knowledge, usually acquired through a college education or through work experience or other training which provides comparable knowledge; • Require some research, analysis, report writing and presentations; and • Require special licensing, certification, or registration to perform the job task. Substantial capital investment under the Economic Development Investment Fund is a minimum of$15 million. Recruitment or supplier targets include aviation; advanced manufacturing; renewable energy; research and development; information technology; supply chain logistics and distribution, and large consumers of municipal utilities. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions despite any such validity. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the A.4 day of ,_, 2016. CHRIS u A 41T, MA R ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: s Al 1J l t:} I D AS l LEGAL FORM: ANITA BURGESS, CITY ATTORNEY i BY: all 43 Page 2 RESOLUTION NO. 18-148 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, AMENDING A POLICY FOR TAX ABATEMENT FOR THE CITY OF DENTON TO ESTABLISH POLICIES, GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENTS AND INCENTIVES WHICH WILL BE KNOWN AS "DENTON POLICY FOR TAX ABATEMENTS AND INCENTIVES"; REPEALING RESOLUTION R2015-042; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on June 6, 2000, the City Council approved guidelines and criteria, known as the Denton Policy for Tax Abatement ("Policy"), by passing Resolution No. R2000-28; and WHEREAS, on May 1, 2001, the City Council amended the Policy to allow waiver of the five million dollar threshold and the maximum tax abatement percentage; to define professional positions; and, to make other changes as set forth in the amended Policy; and WHEREAS, the Texas Tax Code requires the tax abatement policies be adopted every two years; WHEREAS, on August 19, 2003, the City Council amended and adopted the Policy; and WHEREAS, on December 6, 2005,the City Council amended and adopted the Policy; and WHEREAS, on December 5, 2008, the City Council adopted the Policy; and WHEREAS, on April 20, 2010, the City Council amended and adopted the Policy; and WHEREAS, on April 17, 2012, the City Council amended and adopted the Policy; and WHEREAS, on May 6, 2014, the City Council amended and adopted the Policy; and WHEREAS, on November 3, 2015, the City Council adopted Resolution R2015-042 approving a policy specifically for aircraft tax abatement and establishing guidelines and criteria governing such agreements; and WHEREAS, on April 5, 2016, the City Council amended and adopted the Policy; and WHEREAS, the Policy expires on April 5, 2018; and WHEREAS, the City Council desires to promote economic development within Denton; and WHEREAS, providing tax abatements and incentives within the City or its extraterritorial jurisdiction will likely contribute to the economic development of Denton by encouraging major investment, the creation of jobs, and other economic development benefits; and WHEREAS, the Property Development and Tax Abatement Act, Chapter 312, Texas Tax Code,allows the City to establish its own criteria for tax abatements which the City had previously adopted guidelines for tax abatement by passing Resolution Nos. R90-18, R98-004, R2000-028, 44 R2001-020, R2003-021, R2005-057, R2008-003, R2010-009, R2012-009, R2014-016, R2015- 042, and R2016-009; and WHEREAS, the City Council deems it in the public interest to repeal Resolution R2015- 042 approving a policy specifically for aircraft tax abatement and instead address such cases under the Policy; and WHEREAS, the City Council deems it in the public interest to continue to be eligible for participation in tax abatements and incentives and to adopt policies, guidelines, and criteria for tax abatement and incentives which will be known collectively as the "Denton Policy for Tax Abatements and Incentives"; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The policies, guidelines, and criteria, set forth in the attached as Exhibit which is made a part of this Resolution and incorporated herein for all purposes, is approved, and adopted and shall be known as the "Denton Policy for Tax Abatements and Incentives". SECTION 2. From and after the effective date of this Resolution, the attached Denton Policy for Tax Abatements and Incentives shall constitute the policies, guidelines and criteria for tax abatement and other incentive agreements for the City of Denton in accordance with Chapter 312 of the Texas Tax Code. SECTION 3. Resolution R2015-042 is hereby repealed. SECTION 4. Pursuant to Texas Tax Code Section 312.002(c), the Denton Policy for Tax Abatements and Incentives approved herein shall be effective for two (2) years from the date of approval of this Resolution, during which time may be amended or repealed by a vote of 3/4 of the members of the Council. SECTION 5. The City Council reasserts its decision to become eligible to participate in tax abatement and other incentives. The City Council provides certain tax abatements and incentives applicable to business enterprises in various reinvestment zones which are established in the City in accordance with the applicable provisions of Chapter 312 of the Texas Tax Code and in accordance with the Denton Policy for Tax Abatements and Incentives. SECTION 6. The Denton Policy for Tax Abatements and Incentives shall be filed in the official records with the City Secretary. SECTION 7. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the " " day of f "y � , 2018. CHRIS WATTS, MAYOR 45 ATTEST: JENNIFER WALTERS, CITY SECRETARY v BY: �p APPR( FL)AS "1 ) LEGAL FORM: A.A.RC;)"` LEAL, CITY ATTORNEY Tyw BY: ... 46 EXHIBIT A CITY OF DENTON POLICY FOR TAX ABATEMENT AND INCENTIVES I. GENERAL PROVISIONS A. Denton's central location on the I-35 transportation corridor, educated population, skilled workforce, and friendly business climate make it a natural place for business and industry success. As the county seat of Denton County, Denton is a well-established city that is currently enjoying rapid growth as companies and individuals are drawn to the opportunities found here. The provisions of this policy apply in the city limits of the City of Denton, Texas, (City) and any applicable extraterritorial jurisdiction of the City. B. The City is committed to promoting economic growth and redevelopment that expands and diversifies the tax base; creates quality jobs; enhances the quality of life for residents; protects human health and the environment, and secures new customers for municipal utilities. The City is a national model for public power through Denton Municipal Electric, which currently incorporates at least 40 percent renewable energy into its portfolio and has committed to obtaining 100% renewable energy by 2020. Local economic development incentives serve as a tool for the City to use in accomplishing these objectives. To provide a framework for the consideration of the use of public resources to stimulate economic activity, the City has established this policy to align the use of incentives with the City's strategic key focus areas and ensure a positive return on investment for the community. Tax incentives, as described herein, are governed by Section 312 of the Texas Property Tax Code and Chapter 380 of the Texas Local Government Code. C. While this policy is used to outline the procedures and criteria for granting incentives, nothing in this document implies that the City is under any obligation to provide an incentive to any applicant. Further, though this policy provides a framework for evaluation of incentive applications, every project will be considered on a case-by-case basis by the Economic Development Partnership Board (EDPB) and the City Council. Incentives will not be considered if a building permit for new construction has been issued, a permit for commercial alterations has been issued, or purchase of an existing building has been executed (excluding existing businesses seeking to expand). D. The City has target industry sectors for recruitment that will be given priority consideration: aviation/aerospace; advanced manufacturing; renewable energy; research and development; information technology; supply chain for existing primary employers, and significant consumers of municipal utilities. While these sectors will be given priority consideration, not being in a target industry does not disqualify a business from applying for an incentive if it meets other requirements under the policy. E. Priority consideration may also be given for projects that further the following City economic goals and objectives: • Promoting business and community investment • Expanding and diversifying the tax base • Promoting public-private partnerships in investment • Increasing jobs with wages above Denton County's median wage J.. 47 • Increasing the percentage of jobs paying$75,000 per year or more from 10 to 14 percent by 2020 • Encouraging higher-skilled and knowledge-based jobs • Causing infill redevelopment to reduce urban sprawl or to encourage other desirable development • Encouraging start-up and small businesses to promote entrepreneurship and innovation • Generating new customers for municipal utilities • Engaging in sustainable practices or activities F. Only retail projects (retail stores, restaurants, shopping centers, or malls)that offer unique goods, services, or a brand that is not currently offered in the Denton city limits may be considered for incentives. This consideration is designed to help address unmet demand and minimize retail leakage from the City into the surrounding trade area. A minimum of$15 million in annual taxable sales generated is required in order to be eligible for consideration of a rebate of sales taxes. The City may rebate a portion of the sales taxes generated not to exceed 50% of the sales tax receipts. G. This policy is adopted under the authority of the Constitution and Laws of the State of Texas and the City Charter of the City of Denton, Texas. H. Applicants requesting incentives in Denton will be considered under the provisions of this policy. Projects are evaluated with regard to their return on investment and public benefit. This could include addition of ad valorem tax value, sales tax, quality jobs, or other significant public benefit. I. Every incentive agreement the City enters into is an investment for the public benefit, and each project is considered with regard to its merit to the community at large. Performance measures will be established for each project, and annual compliance reporting must be completed by incentive recipients prior to receipt of incentives. J. Projects that do not meet performance measures are subject to recapture of a portion or all of the incentive value. Should an incentive recipient fail to meet performance measures and to perform under the prescribed cures, incentives are subject to repayment to the City of Denton. K. The Denton County Tax Abatement Policy states that applicants whose projects will be located in or are currently located in a municipality within the county must have an approved and executed Tax Abatement Agreement with that municipality prior to applying for a Denton County tax abatement. Denton County will not utilize Chapter 381 of the Texas Local Government Code to administer a community and economic development program to provide grants as a form of economic development. II. DEFINITIONS "Agreement"means a contract between an Incentive recipient and the City clarifying the terms, performance measures, and obligations of the parties. "Assessed Taxable Value"means the value of the real and business personal property, as appraised 2 48 by the Denton Central Appraisal District("DCAD"/or"District"), after any exemptions have been applied. "Base Year Value"means the Assessed Taxable Value as of January 1 preceding the execution of the agreement, excluding land value, inventory, vehicles and supplies,as determined by the DCAD, "Business Park" is defined as a multi-building, multi-tenant, master planned complex of approximately one million square feet or more under roof, constructed to house manufacturing, distribution, assembly, and office facilities. "Business Personal Property"means property associated with a Project other than Real Property and excluding inventory, vehicles and supplies. "Capital Investment" means the total actual capital cost to grantee for the acquisition of land, development, and construction of the Project, including a reasonable capital operating reserve, and the furniture and equipment installed at the Project. "City"means the City of Denton,Texas, and its governing and operating bodies. "City HOT Returns" means City of Denton Hotel/Motel Occupancy Tax Reports on which the grantee or other persons report and remit City of Denton hotel occupancy taxes imposed under Chapter 351 of the Texas Tax Code on amounts paid for hotel rooms in the Project. "Community Support and Involvement" may include but is not limited to monetary or active investment in local nonprofits, public institutions or community organizations. "Council" is the City Council of the City of Denton,Texas. "Default" is an event in which a party to an Agreement has failed to meet Performance Measures and to perform under prescribed cures. "Expansion"means an investment in fixed assets that will result in an increase in occupied building areas, increased employment, or higher Assessed Value of Real Property or Business Personal Property by a firm already located in the City. "Facility"means combined Real and Business Personal Property Improvements that house an economically purposeful activity. "Higher wage" means having an average annual wage of$55,000 or greater for all positions or at least 25%of the positions have an annual wage of$65,000 or greater. "Improvement"means a building, structure, or fixture erected on or affixed to land. "Incentive"means any inducement for economic activity given by the City such as a tax abatement or rebate or any other incentives not prohibited by state or federal law. "Job"means a permanent, full-time employment position that has provided or will result in employment of at least 2,080 hours per position per year. Part-time positions may be aggregated to create a full-time position for consideration in this policy. "Knowledge-based jobs"are defined as occupations which require specialized and theoretical 3 49 knowledge, usually acquired through a college education or through work experience or other training which provides comparable knowledge; require some research, analysis, report writing and presentations; or require special licensing, certification, or registration to perform the job task. "Leadership in Energy and Environmental Design" (LEER) certification is a voluntary internationally recognized green building certification system, with verification by a third party that a building or community was designed and built using strategies aimed at improving performance across the following metrics: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources. "Local Contractors"and "Local Sub-Contractors"refers to vendors that have their"principal office or place of business," as reported to the Texas Secretary of State Office, located within Denton City Limits or Extraterritorial Jurisdiction (ETJ). "Modernization"means the replacement and upgrading of existing facilities which increases the productive input or output, updates the technology, or substantially lowers the unit cost of operation,and extends the economic life of the facility. Modernization may result from the construction,alteration,or installation of buildings, structures, fixed machinery, or equipment. "Performance Measures"are the performance indicators for a Project established by Agreement and reported to the City annually using a certificate of compliance provided in the Agreement or as otherwise prescribed by the Agreement. "Primary Employer"refers to employers that produce products or services which are sold outside of the community or region. "Project" means the combination of proposed investment, improvements, and economic activity that is submitted in an application for an economic incentive. "Real Property"means land or an improvement affixed thereto. "Retail"means the selling of consumer goods or services to customers. "Retail Leakage"means that local residents are spending more for products or services than local businesses capture and indicates there is an unmet demand in the community for certain types of products. Keeping sales tax dollars in the City is the goal of minimizing retail leakage. "Tax Abatement"means the full or partial exemption of ad valorem taxes for eligible properties in a reinvestment zone designated as such for economic development purposes for new or expanded business development for a period of up to 10 years. Abatement may be granted for real property improvements and/or business personal property. "Tax Rebate"means the full or partial refund of municipally imposed tax liability. "Reinvestment Zone" is a geographic area designated as blighted and in need of revitalization for the purpose of granting incentives as authorized by law. "Sales Tax"means the 1%general municipal sales and use taxes imposed by the City of Denton pursuant to Section 321.103(a) of Texas Tax Code and 0.5% additional municipal sales and use tax imposed by the City of Denton from property tax reduction pursuant to Section 321.103(b) of 4 50 the Texas Tax Code and arising (i) from any person's collection of sales taxes as a result of sales of taxable items consummated at the Project during the term of this Agreement, (ii) from any person's payments to vendors or directly to the Texas Comptroller of Public Accounts of City Sales Taxes on purchases of taxable items consummated at the Project during the term of this Agreement, and (iii) from City Sales Taxes paid by any person in connection with the construction or equipping of the Project. "Sustainable materials" or products related to manufacturing may include but are not limited to: biobased; recyclable; pollution reduction equipment or systems; and reclaimed goods. "Texas Comptroller of Public Accounts' Monthly Sales Tax Report"means reports from the Comptroller to the City as provided in Section 321.3022 of the Texas Tax Code that identify amounts paid from the Comptroller to the City, by period, of Sales Taxes. If during the term of this Agreement, due to a change in law or policy the Comptroller ceases providing such reports with respect to the Sales Taxes, "Texas Comptroller of Public Accounts' Monthly Sales Tax Report" means alternative documentation that the Parties agree establishes the amounts of Sales Taxes received by the City. "Construction Sales and Use Tax Grant"This incentive involves a rebate of a portion of the local sales and use taxes for the purchase of construction materials and furniture/fixtures/equipment that would generate additional tax revenue that the City of Denton would not otherwise receive. "Texas Direct Payment Permit" means that permit issued by the State of Texas authorizing Grantee to self-assess and pay applicable state and local use taxes directly to the State of Texas related to selected portions of Grantee's taxable purchases. "Texas Sales and Use Tax Return" means a return or other statement in a form acceptable to the City setting forth the Grantee's collection of use tax imposed by the City and received by the City from the State of Texas, for the use of taxable items by Grantee at the Property for the applicable grant period which are to be used to determine Grantee's eligibility for a Grant, together with such supporting documentation required herein, and as the City may reasonably request. III. APPLICATION PROCEDURE A. To ensure fairness, accountability, and compliance with all applicable regulations, every incentive request must proceed through a uniform application process.Nothing within these guidelines implies or suggests that the City is under any obligation to provide an incentive to any applicant. a. Applicant shall complete the attached Incentive Application (Exhibit A). The application will not be considered until it is administratively complete. b. Applicant shall prepare a map or other documents providing the following: precise location of the property and all roadways within 500 feet of the site; existing uses and conditions of real property; proposed improvements and uses; any proposed changes in zoning; compatibility with the Denton 2030 Plan and applicable building codes and City ordinances; a complete legal description. c. Applicant shall complete all forms and information detailed in the Incentive Application and submit all information to the Economic Development Department, City of Denton, 215 E. McKinney, Denton,TX 76201. d. All information in the application package detailed above will be reviewed for 5 51 completeness and accuracy. Additional information may be requested as needed. e. The application will be distributed to the appropriate City departments for internal review and comments. Additional information may be requested as needed. f. Fiscal agents of the City may review the application for comment and recommendation. Additional information may be requested as needed. g. The Denton Economic Development Partnership board (EDPB) serves as an advisory body, which makes recommendations to the City Council regarding whether economic development incentives should be offered in each individual case. Its recommendation shall be based upon an evaluation of information submitted in the incentive application and any additional information requested by the EDPB or presented to the EDPB. The EDPB will consider the application at a regular or special-called meeting(s). All meetings of the EDPB shall be held in compliance with the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Additional information may be requested as needed. The recommendation of the EDPB will be forwarded, with all relevant materials, to the City Council. h. If the City Council decides to grant a tax abatement, it shall call a public hearing to consider establishment of a tax reinvestment zone in accordance with Section 312.201 of the Tax Code. The reinvestment zone must meet one or more of the criteria of Section 312.202 of the Tax Code. i. The City Council may consider adoption of an ordinance or resolution approving the terms and conditions of a contract between the City and the applicant governing the provision of the tax abatement or incentive and the commitments of the applicant, including all the terms required by Section 312.205 of the Tax Code and such other terms and conditions as the City Council may require. j. The City reserves the authority to enter into tax abatement agreements at differing percentages and/or terms as set forth in the guidelines of this Policy, consistent with the requirements of Chapter 312 of the Texas Tax Code. The City also reserves the authority to enter into incentive agreements under Chapter 380 of the Texas Local Government Code. B. Section 312.003 of the Texas Tax Code makes confidential information provided to the City as a part of this application that describes the specific processes or business activities to be conducted or the equipment or other property to be located on the property. This information is not subject to public disclosure until the incentive agreement is executed. Section 522.131 of the Texas Government Code (Texas Public Information Act) makes confidential information which relates to economic development negotiations between the City and a business prospect that the City seeks to have locate, stay or expand in or near the territory of the City. The information must relate to a trade secret of the business prospect, commercial or financial information which the business prospect can demonstrate based on specific factual evidence that disclosure would cause substantial competitive harm to the person from whom the information was obtained or information about a financial or other incentive being offered to the business prospect by the City or by another person. Information about a financial or other incentive being offered to the business prospect is required to be disclosed when an agreement is made with a business prospect. The City will respond to requests for disclosure as required by law and will assert exceptions to disclosure as it deems relevant. The City will make reasonable attempts to notify the applicant of the request so it may assert its own objections to the Attorney General. C. Any incentive agreement will address various issues, including but not limited to, 6 52 the following: a. General description of the project b. Amount of the incentive and percent of value to be abated or rebated each year c. Method of calculating the value of the abatement d. Duration of the abatement, including commencement date and termination date e. Legal description of the property f. Kind, number, location and timetable of planned improvements g. Specific terms and conditions to be met by applicant,which will be based on the information submitted by the applicant in the Incentive Application and/or other appropriate criteria h. The proposed use of the facility and nature of construction i. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture, any decrease in valuation, administration and assignment D. Businesses receiving an incentive are asked to use diligent efforts to purchase all goods and services from Denton businesses whenever such goods and services are comparable in availability, quality and price. The City of Denton also encourages the use, if applicable, of qualified contractors, subcontractors and suppliers who are historically underutilized businesses based on information provided by the General Services Commission pursuant to Chapter 2161 of the Government Code. E. Businesses receiving an incentive are encouraged to use diligent efforts to hire local contractors and local subcontractors where possible during construction of the project. F. Businesses receiving incentives are asked to endeavor to make available, or endeavor to cause lessees or assignees to make available full-time or part-time employment for Denton residents. In this effort, the business, lessee or assignee is encouraged to recruit from the low-moderate income Census tracts as further defined by the U.S. Department of Housing and Urban Development's (HUD) Qualified Census Tracts (QCT) map shown in Figure 1. HUD defines QCTs as "census tracts in which one-half or more of the households have incomes below 60 percent of the area median income or the poverty rate is 25 percent of[or] higher. FIGURE 1: DENTON,TEXAS 2014-2015 Qualified Census Tracts ova amen m m v w "`I ,• w, m w » d r m�s,�4 '0.mam;wa ura i wpm P Y51A L .a ',.'^tt,m�, YN ',V„ffia/iks 7 53 IV. INCENTIVE TOOLS A. Tax Abatement:New, expanding, and modernizing businesses may be considered for a tax abatement if a minimum threshold of$5 million in ad valorem value will be created by the project. To qualify, companies must meet the minimum threshold in the first 24 months from the execution of the agreement or as specified in the tax abatement agreement. If, upon initial application, a project qualifies for tax abatement under the guidelines set forth in this Policy, the City may consider the following factors in evaluating its public benefit: • The project will occupy a building that has been vacant for at least two years; • The project will create knowledge based, high-skilled o r higher-paying jobs as documented by the applicant (An average wage that is above the median wage in Denton County or at least 25 percent of jobs requiring a college bachelor's degree at entry level will be used to determine eligibility); • The project will involve a significant relationship with one of the two universities in Denton; 0 The project will create improvements to the Denton Downtown Implementation Plan area; 0 The project is an international or national headquarters facility; • Renewable energy will be generated, stored, or utilized for the projector the project incorporates significant environmentally sustainable practices that include: Leadership in Energy and Environmental Design (LEED) certification, recycling initiatives, the manufacture of sustainable materials or products that support sustainable industries, or the incorporation of clean technology; • The applicant is committed to actively supporting the Denton community through non-profit organizations,donations to public schools and/or public art • 25%of local contractors used in construction or 25%of new jobs filled by Denton residents All abatements are subject to final approval of the City Council. Even though a project may meet the criteria as set forth in this Policy, an application may be denied at the discretion of the City. The incentive shall not apply to any portion of the land value of the project. The City may consider the use of incentives to retain existing businesses, which propose to improve or redevelop property within the City limits. The City may also take into consideration the expansion/redevelopment of existing businesses that create new or additional higher wage or knowledge-based jobs. The incentive will only apply to the increased valuation of the improvements over the appraised value of the property prior to such improvements as same is established by the Denton Central Appraisal District the year in which the tax abatement agreement is executed. The City may also consider other tax incentives authorized by law. B. Chapter 380 Grants or Loans: The City may consider incentives to businesses utilizing its authority under Chapter 380 of the Texas Local Government Code (hereinafter referred to as"Chapter 380"). Chapter 380 states that a municipality may establish and provide for the administration of one or more programs for making loans and grants of public money and providing personnel and services of the municipality, to promote state or local economic development and to stimulate business and commercial activity in the municipality. The City of Denton may consider the use of grants and loans as incentives to accomplish one or more of the following economic development purposes: 8 54 • Targeted industry cluster or supply chain recruitment initiatives • Capital grants or loans for start-up and small businesses to promote entrepreneurship • Grants to offset costs associated with public infrastructure improvements or impact fees • Cash incentives to gain a competitive position when in direct competition for a project • Increase the percentage of jobs paying $75,000 per year or more from 10 to 14 percent by 2020 Chapter 380 incentives will be considered on a case-by-case basis, and may be considered for one or more of the following criteria: • Net new jobs with wages above Denton County's median wage • The relocation of a company that promotes the growth of targeted industry sectors listed in Section I.D. • Incentives for businesses that cause infill redevelopment or other desirable development objectives; • Any other activity which the City Council determines meets a specific public purpose for economic development. When the City determines that incentives are required to retain existing businesses that propose to improve or redevelop property within the City limits, the City Council may consider, on a case- by-case basis, and reserve the right to waive the minimum threshold and/or exceed the percentage and term included in Table 1 for a grant. The City of Denton may also take into consideration the expansion/redevelopment of existing businesses that create new or additional higher wage or knowledge-based jobs. Ad valorem rebates will only apply to the increased valuation of the improvements over the appraised value of the property prior to such improvements as same is established by the Denton Central Appraisal District the year in which the grant agreement is executed. Job-based grants may be considered for businesses creating higher-wage or knowledge-based jobs. The City may also consider other tax incentives authorized by law. C. Economic Development Investment Fund: The City may offer cash incentives and grants from the Economic Development Investment Fund (established by Ordinance No. 2016- 229) when appropriate and necessary. Such incentives require EDPB and Council approval through a Chapter 380 Agreement. To be eligible for consideration, the company must meet at least two of the following criteria: • higher wage or knowledge-based jobs; • substantial capital investment (minimum of$15 million); • recruitment of industry sector targets, including aviation/aerospace, advanced manufacturing, renewable energy, research and development, information technology, supply chain for primary employers, or significant consumers of municipal utilities. D.Based Aircraft Incentive: Specific considerations for a based aircraft incentive will include expansion of the tax base, annual fuel consumption, and contribution to the growth and development of Denton Enterprise Airport (DTO). Newly based aircraft may be eligible for an incentive if a minimum of$1 million in ad valorem value will be created by the aircraft. Aircraft must be operational, air worthy, and based at DTO for a majority of the year; values may not be combined to reach the $1 million minimum. 9 55 Expiring Incentive Forecast Ad Valorem Grant Payment Forecast 2 3 4 5 6 7 8 9 10 i - i i i . Tax Year 1 19 20 21 22 22 23 24 25 1 26 1 27 Total Ad Valorem 1 $0 $0 $0 $0 $38,098 $39,241 $40,418 $89,691 1 $487,408 1 $502,031 1 $1,537,223 Sales Tax and Sales and Use Tax for Construction Grant Payment Forecast 7 _ _ _ FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 ,LExpi ring Total Sales Tax 1 $0 1 $608,940 1 $627,208 1 $646,024 1 $665,405 $779,353 1 $802,734 $826,816 1 $851,620 $877,169 1 $6,685,271 Growth rate,beyond 5-year forecast,is set at 3%,unless noted Chapter 380s Expiring in 10-Year Period Ad Valorem and Sales Tax Total Z$8,2212,494 Expires • Schlumberger(Property Tax) FY 19-20 Tax Abatements $1,101,776 Denton Crossing (Sales Tax) FY 20-21 TIRZ $1,462,415 Mayday Manufacturing (Property Tax) FY 23-24 Total All Incentives in and Outside Budget $10,786,684 Unicorn Lake (Sales Tax) FY 24-25 West Gate Business Park(Property Tax) FY 26-27 WinCo Distribution (Property Tax) FY 27-28 56 Date: July 5, 2019 Report No. 2019-140 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Executive Residency Information EXECUTIVE SUMMARY: Council Member Briggs requested information about residency requirements. Information was initially included in the May 10, 2019, Friday Report. Subsequent information is being included in this informal staff report, including information on the city of residency for City of Denton directors, executives in the City Manager's Office, and City Council appointees (collectively referred to as "Executives"). BACKGROUND: At the April 23, 2019, Council meeting, Council Member Briggs requested information about the number of directors and deputy directors that work for the City of Denton, whether their annual salary is over $100,000, and whether they reside within City limits. Information responsive to this request was provided in the May 10, 2019, Friday Report. During concluding items at the June 4, 2019, City Council meeting, Council Member Briggs requested additional information regarding residency as well as information on any employment policies/incentives. Texas Local Government Code §150.021 prohibits a municipality from requiring residency within the municipal limits as a condition of employment with the municipality, with the exception of municipal department heads appointed by the mayor or governing body of the municipality. The City of Denton Charter only requires residency for the City Manager. Specifically, section 5.01 states, "At the time of his appointment he need not be a resident of the city or state but during his tenure of office he shall reside within the city." Although residency is not required for any position other than the City Manager, the City of Denton offers relocation assistance for certain positions. There are no stipulations that the employee must move within Denton's city limits; however, expectations have been that they must move within a reasonable response time to the workplace. Relevant sections of the City's Recruitment and Relocation Expenses policy(#101.05) are below. IL RELOCATION Relocation expenses may be made available for executive positions, positions that are highly competitive or difficult to fill. The activities outlined below may be paid. Some of these expenses may be taxable income to the employee based on IRS regulations at the time of reimbursement. A. Travel for Employee and Family Page 1 of 6 57 Date: July 5,2019 Report No. 2019-140 1. "House Hunting": Travel expenses for employee and one additional person for "house hunting" at new location—includes one round-trip per person, not to exceed seven days including travel. This includes transportation and reasonably priced lodging, It also includes food and incidental expenses using the Arlington/Fort Worth/Grapevine GSA per diem rate. 2. Family Move: Travel expenses for employee and family to move from former location to new location—includes transportation and reasonably priced lodging. It also includes food and incidental expenses using the Arlington/Fort Worth/Grapevine GSA per diem rate. The City will reimburse the IRS standard mileage rate for moving only one automobile. 3. Close of Sale of Home: Travel expenses for employee to return to former location to "close"sale of former home—includes one round-trip. Includes transportation and reasonably priced lodging, It also includes food and incidental expenses en route at the applicable GSA per diem rate. B. Temporary Living Expenses at New Location The City may pay reasonable lodging expenses for an employee at their new location for a maximum of 90 days. IIL MOVING EXPENSES Moving expenses may be paid for executive, highly competitive, or difficult to fill positions. Moving expenses will include all reasonable expenses in connection with packing, moving, unpacking, and insuring of household furniture. When using a moving company, three quotes will typically be required. If authorized in accordance with this directive, the lowest of three quotes will be reimbursed, unless a lesser amount is specified in writing. Comparison to Other Cities Fourteen (14) cities in the DFW metroplex were surveyed to determine if they had residency requirements for any positions, if they provide incentives to live in the city limits, or if there is current relocation policy. Twelve (12) of the cities responded. Of those 12 cities, nine (9) require residency of one or more positions. While only two cities reported that they had relocation language written in a policy, an additional four cities have a practice of offering a relocation allowance for certain level positions. Only one city(Mesquite)reported they had an incentive, and it was for Police Officers. The reported incentive is more of a relocation assistance, not to exceed $2,500, for Police Officers who move within the city limits. A compilation of the survey responses is included in Table 1 on pages 3 and 4. Page 2 of 6 58 Date: July 5, 2019 Report No. 2019-140 Table 1 Survey of Other Cities Regarding Residency Requirements,Relocation Policy,and Incentives to Live Within the City Limits June 2019 Residency Requirement City Relocation Policy Incentive(s)to Live in City Limits No Yes If yes,what position(s)? Arlington No response Carrollton X City Manager and Assistant City Manager Thefcllowing language is included as part of the compensation policy: None Reasonable relocation costs may be reimbursed for management level positions. Flower X Town Manager No policy None Mound Fort Worth X City Ma nager,Pol i ce Chi ef,a nd Fi re Chi ef Yes.The policy states:The City may providearelocationaIIowancefor None employees hired into executive,Director,Ass i sta nt Di rector,or hard-to-fill positions(as designated by the Ta I ent Acqui s i ti on Division)for reasonable relocation(moving)costs.A minimum relocation distance of 50 miles from a former resIdenceto the new work location is required for an allowance consideration.Specific relocation allowance amounts are determined by the hiring manager and must be approved by the Department Director.Relocation al lowances for Assistant Director and hard-to-fill positions must be approved by the Human Resources Director.Relocation allowances for executive and Director level positions will require City Manager approval.All allowances a resubjectto budget ava i I a bi I ity.In no event shaII a relocation allowance exceed 10%of the new hire's annual ized salary.The relocation allowance is a one-ti me payment that wi I I be i ncl uded with the empl oyee's regul a r paycheck. The approved relocation allowance should be documented in the candidate's offer letter or subsequent documentation.The City will comply with all applicable federal and state income tax withholding and Form W-2 reporting req ui rements for a rel ocati on a I I owa nce.If a n empl oyee vol unta ri ly or i nvol u nta ri ly termi nates empl oyment with the Ci ty of Fort Worth duri ng the twenty-fou r(24)month peri od fol I owi ng thei r hi re date,the empl oyee may be required to make full or partial repayment of the relocation allowance,which may be deducted,in whole or in part,from the employee's pay or other compensation to be paid to the employee. Frisco X N/A No policy None Page 3 of 6 59 Date: July 5, 2019 Report No. 2019-140 Table 1,continued Residency Requirement City Relocation Policy A&W Incentive(s)to Live in City Limits No Yes If yes,what position(s)? Garland X City Manager No formal policy but have offered a relocation allowance for some in the past. None An example ofwhatwas offered based on one offer letter is as follows: Relocation expenses directly attri buta bl a to move wi I I be reimbursed on the lowestof3 relocation bids(notto exceed$10,000). Grand Prairie X N/A No policy None Irving X Presiding Municipal Court Judge,the Municipal Court No formal policy but have offered a relocation allowance for some Executives None Jud e,and the City Mana ger in the past. Lewisville X City Manager No relocation policy but have reimbursed moving expenses for executive level None positions in the past. They are required to obtain three quotes and go with the I owest one. Little Elm No response McKinney X Mayor and City Council,but notdepartment heads No policy None Mesquite X City Manager,Deputy City Manager,Assistant City A relocation allowance has been authorized for certain Executive positions. POLICY:Police Officers employed after May 1,2006 will be eligibleto Manager,Director of Economic Development and Police The amount is pre-determined by where they are movingfrom and there are apply for reimbursementof expenses associated with relocation of Chief some stipulations.They are advised in their contingentoffer letter that in personal residence so long as the new address is within the City of exchange for this assistance,they will remain an employee of the City of Mesquite.The reimbursement of moving expenses may not exceed Mesquite for at leastfiveyears.Should they voluntarily departfrom the City's $2,500.00 for each qualified Police Officer.This policy further employment prior thefiveyears of service,they will be expected to repay the stipulates that such relocation reimbursement must be:verified by the City a prorated share of the allowance based upon the length of employment. Director of Human Resources to be related to the moving of a household.Typically such household moving expenses will include the fol I owi ng:a moving service,rental of a moving van/trailer,moving supplies such as boxes,mileage of personal vehicles used in the move, deposits for utility services,lease application fees,security deposit required in a lease,and any other related expenses approved by the Director of Human Resources;related to temporary living quarters for up to three months;verified with d eta i I ed receipts;for relocations completed within 18 months ofthe Police Officer's hire date; accompanied by a signed"Promissory Note"obligating repaymentof any relocation reimbursement received if the Police Officer does not complete at least two full years of employment with the City of Mesquite. Plano X City Manager,Police Chief,and Fire Chief None Richardson X City Manager and Assistant City Managers Nopolicy None Page 4 of 6 60 Date: July 5, 2019 Report No. 2019-140 Residency Information for Executives Table 2, below, provides a list of City of Denton Executives and residency. Table 2 City of Denton Residency for Executives as of June 21,2019 Name Department Residency Job Title Arora,Pushpendra S Wastewater Coppell Director of Wastewater Banks,Kenneth E Water Whitesboro General Managerof Utilities Bekker,Jennifer Marie Library Services Denton Director of Libraries Boerner,Brian Keith Solid Waste Pilot Point Director of Solid Waste Canizares,Mario Alberto City Manager's Office Coppell Deputy City Manager/COO Cox,Ethan Lendon Public Works Argyle Directorof Public Works Dalal,Umesh Vinochandra Internal Audit Keller City Auditor Dixon III,Frank Ralph Police Flower Mound Police Chief Estes,William Todd Engineering Denton Dir Cap Projects/City Engineer Fox,Holly Elizabeth Municipal Judge's Office Flower Mound Municipal Court Judge Gaines,David Jeffrey Finance Frisco Director of Finance Hedges, Kenneth W Fire Corinth Fire Chief Hensley,Sara Lynn City Manager's Office Denton Assistant City Manager Hileman,Lawrence Todd City Manager's Office Denton City Manager Kraft,Melissa C Technology Services Frisco Chief Technology Officer Kuechler,Sarah E Public Communications Corinth Dirof Public Affairs&IGR Leal,Aaron Legal Denton City Attorney McDonald,Scott Alexander Development Services Keller Development Svcs Director/CBO Ogden,Cassandra D Procurement/Compliance Denton Director of Prcmt&Compl Packan,Gary Robert Parks and Recreation Arlington Director of Parks&Recreation Puente Jr,Antonio Finance Denton Chief Financial Officer Pugsley,Frank East Water Flower Mound Director of Water Rogers,Jessica A Economic Development Corinth Director of Economic Dvmt Romine,Carla Jean Human Resources Frisco Directorof Human Resources Thomson,Tiffany Marie Customer Service Hickory Creek DirectorofCustomerServic Wood, Rachel Smithson Icity Manager's Office IDenton IChief of Staff CONCLUSION: With Denton's location in the DFW metroplex, employees have many options where to live while still having a reasonable commute to work. Where people choose to live can be impacted by several factors including, but not limited to, housing inventory and cost, proximity to family and/or friends, family preference, schools, and other activities. STAFF CONTACT: Carla Romine, Director of Human Resources (940) 348-8344 Carl a.romine n cityofdenton.c om Page 5 of 6 61 Date: July 5, 2019 Report No. 2019-140 REOUESTOR: Council Member Briggs PARTICIPATING DEPARTMENTS: Human Resources, City Attorney's Office, City Manager's Office STAFF TIME TO COMPLETE REPORT: 12 hours Page 6 of 6 62 Date: July 5, 2019 Report No. 2019-141 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Information on the impact of Senate Bill 1640. BACKGROUND: Senate Bill 1640 was introduced in the 861h Session of the Texas Legislature,passed unanimously in both chambers, and was signed by the governor on June 10, 2019, taking effect immediately. The bill addresses the Texas Court of Criminal Appeals opinion in State of Texas v. Doyal, which found the "criminal conspiracy" provision in the Texas Open Meetings Act (TOMA) unconstitutionally vague. §551.002(2)previously provided that: "`[d]eliberation' means a verbal exchange during a meeting between a quorum of a governmental body and another person, concerning an issue within the jurisdiction of the governmental body or any public business." §551.143(a)previously read: "(a) A member or group of members of a governmental body commits an offense if the member or group of members knowingly conspires to circumvent this chapter by meeting in numbers less than a quorum for the purpose of secret deliberations in violation of this chapter." Senate Bill 1640 amended §551.002(2) to include written exchanges and eliminated "during a meeting" and "or any public business" so that it now reads: "`[d]eliberation' means a verbal or written exchange between a quorum of a governmental body and another person, concerning an issue within the jurisdiction of the governmental body." §551.143(a) was also amended to provide greater specificity: "(a) A member of a governmental body commits an offense if the member: (1) knowingly engages in at least one communication among a series of communications that each occur outside of a meeting authorized by this chapter and that concern an issue within the jurisdiction of the governmental body in which the members engaging in the individual communications constitute fewer than a quorum of members but the members engaging in the series of communications constitute a quorum of members; and (2) knew at the time the member engaged in the communication that the series of communications: (A)involved or would involve a quorum; and (B)would constitute a deliberation once a quorum of members engaged in the series of communications. 63 Date: July 5, 2019 Report No. 2019-141 LEGAL: In State of Texas v. Doyall, Doyal was charged with violating Texas Government Code §551.143, which provides: "[a] member or a group of members of a governmental body commits an offense if the member or group of members knowingly conspires to circumvent this chapter by meeting in numbers less than a quorum for the purpose of secret deliberations in violation of this chapter." This section has commonly been referred to as the Walking Quorum provision. The Court held that the statute was unconstitutionally vague on its face. In evaluating the statutory language, the Court noted that the chapter defines "meeting" to require a quorum, but then prohibits meeting in less than a quorum in §551.143, which would make the statute "internally inconsistent." Additionally, the Court found that the use of the word"circumvent" is unclear, and therefore a person could not"know"that he was violating the law. In short, the Court found that §551.143 attempts to make criminal any "actions that are like a violation of TOMA without actually being a violation of TOMA." The Court concludes that while the Legislature does have the authority to prevent what has commonly been known as a Walking Quorum, the language in §551.143 lacks sufficient specificity for the Court to reasonably narrow it to a construction that would be constitutional. DISCUSSION: Senate Bill 1640 attempts to clarify and make more specific the deliberation and offense provision under TOMA. First, "deliberation" is defined to apply to a member or group of members discussing an issue, verbally or in writing, concerning an issue within the jurisdiction of the governing body. Second, the bill strikes the "knowingly conspires..." provision referenced earlier and replaces it with specific provisions stating that an offense is committed when: • One member engages in at least one communication in a series of communications outside of an authorized meeting; • That message concerns an issue within the jurisdiction of the governmental body • The members of the individual communications constitute less than a quorum of members, but the members engaging in a series of communications constitute a quorum of members; and • The member knew the series of communications involved or would involve a quorum and constitute a deliberation. CONCLUSION: The impact of this bill is that for an offense to be committed by a member of a governmental body, the member would have to know that the series of verbal or written communications involved or would involve a quorum, and when a quorum is reached, would constitute a deliberation. 1 State v. Doyal, ---S.W.3d---,2019 WL 944022 (Tex. Crim.App. 2019). 64 Date: July 5, 2019 Report No. 2019-141 The previous requirement did not speak to written communication and provided that an offense would be committed even if the member did not know. Additionally, an offense would only be committed if the deliberation concerned issues within the jurisdiction of the body (as opposed to any public business item). The bill, in effect, restores the "walking quorum" provision in TOMA with a more specific, precise, and clear provision to prevent members of a governmental body from skirting requirements of the Open Meetings Act by meeting in a series of small,private gatherings to avoid a quorum. ATTACHMENT(S): SB 1640 as Enrolled STAFF CONTACT: Ryan Adams Deputy Director of Public Affairs/IGR (940) 349-8565 Ryan.Adams(a),cityo fdenton.com REOUESTOR: Council Member Armintor PARTICIPATING DEPARTMENTS: Public Affairs, City Attorney's Office STAFF TIME TO COMPLETE REPORT: Public Affairs: 2 hours, Legal: 3 hours 65 S .B . No . 1640 1 AN ACT 2 relating to the open meetings law. 3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS : 4 SECTION 1 . Section 551 . 001 ( 2 ) , Government Code , is amended 5 to read as follows : 6 ( 2 ) "Deliberation" means a verbal or written exchange 7 between a quorum of a governmental body, or 8 between a quorum of a governmental body and another person, 9 concerning an issue within the jurisdiction of the governmental 10 body [era�4y e b sees s] . 11 SECTION 2 . The heading to Section 551 . 143 , Government Code , 12 is amended to read as follows : 13 Sec . 551 . 143 . PROHIBITED SERIES OF COMMUNICATIONS 14 [CONSPIRACY�irt'-I.TRCUMVENT CHAPTER] ; OFFENSE ; PENALTY. 15 SECTION 3 . Section 551. 143 ( a) , Government Code , is amended 16 to read as follows : 17 ( a) A member [Grgz-e the ] of a governmental body 18 commits an offense if the member : 19 ( 1) [e,- g,-9 of c ] knowingly engages in at 20 least one communication among a series of communications that each 21 occur outside of a meeting authorized by this chapter and that 22 concern an issue within the jurisdiction of the governmental body 23 in which the members engaging in the individual communications 24 constitute fewer than a quorum of members but the members engaging 1 66 S .B . No . 1640 1 in the series of communications constitute a quorum of members ; and 2 ( 2 ) knew at the time the member engaged in the 3 communication that the series of communications : 4 (A) involved or would involve a quorum; and 5 (B ) would constitute a deliberation once a quorum 6 of members engaged in the series of communications [GGnsJ94:,xes#G 7 8 ] . 9 SECTION 4 . Section 551 . 143 , Government Code , as amended by 10 this Act , applies only to an offense committed on or after the 11 effective date of this Act . An offense committed before the 12 effective date of this Act is governed by the law in effect on the 13 date the offense was committed, and the former law is continued in 14 effect for that purpose . For purposes of this section, an offense 15 was committed before the effective date of this Act if any element 16 of the offense occurred before that date . 17 SECTION 5 . This Act takes effect immediately if it receives 18 a vote of two-thirds of all the members elected to each house , as 19 provided by Section 39 , Article III , Texas Constitution. If this 20 Act does not receive the vote necessary for immediate effect , this 21 Act takes effect September 1, 2019 . 2 67 S .B . No . 1640 President of the Senate Speaker of the House I hereby certify that S .B . No . 1640 passed the Senate on April 9, 2019 , by the following vote : Yeas 30 , Nays 1; and that the Senate concurred in House amendment on May 23 , 2019 , by the following vote : Yeas 31 , Nays 0 . Secretary of the Senate I hereby certify that S .B . No . 1640 passed the House , with amendment , on May 17 , 2019 , by the following vote : Yeas 145 , Nays 1 , one present not voting. Chief Clerk of the House Approved: Date Governor 3 68 Date: July 5, 2019 Report No. 2019-142 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Civic Center Pool (CCP) and Water Works Park(WWP)hours of operations. BACKGROUND: The CCP and WWP are currently in the middle of the 2019 season which runs seven days a week from May 25 to August 13, 2019. After August 13th, the park will be open weekends only through Labor Day, Sep. 2, 2019. Current hours of operation for public swim at the CCP are Monday through Saturday from Noon—6 p.m. and Sunday from 1 p.m. to 6 p.m. At WWP, public swim is Monday through Saturday from 11 a.m. to 7 p.m. and Sunday from Noon to 7 p.m. Council requested the Parks and Recreation Department(PARD)provide information on the possibility of extending the CCP hours for patrons who work during the day and prefer an alternate choice to WWP admissions. The current schedule of hours is structured to allocate time for programming, after-hour rentals, and maintenance. When the CCP is not open to the public, the facility is being used as early as 6:45 a.m. Monday— Friday and as late as 7:15 p.m. Monday- Thursday. The Denton Dolphins Swim Team has 159 registered athletes that participate in morning and evening practices every weekday. Learn To Swim (LTS) classes utilize the shallow ends for group swim lessons during the evenings. LTS enrollment for the current session of lessons is at 69% capacity, while the Denton Dolphins evening registration is at 100% capacity. Summer scheduling includes: Program/Class Schedule Time Denton Dolphins Monday—Friday 6:45 a.m. — 11:30 a.m. Dolphins Splash Camp Tuesday/Thursday 8:30 a.m. — 10:00 a.m. Jul 16—August 1 Aqua Zumba— Sr. Monday/Wednesday 8:00 a.m. —9:00 a.m. Jul 19—August 9 Jr. Life guarding Monday-Thursday 5:30 p.m. —7:15 p.m. Denton Dolphins IMonda —Friday 6:00 p.m. —7:00 p.m. Learn to Swim LTS Monday—Thursday 6:15 p.m. —6:50 p.m. Scheduling at the CCP this season was also made to accommodate classes and programs impacted by the closure of the Denton Natatorium beginning July 291h. The Natatorium will undergo a scheduled replacement of the HVAC air handling system, and the competition pool will be replastered. The $1.4 million-dollar project was approved and funded by a Denton Independent School District (DISD)bond package. The Natatorium is expected to reopen on August 201h. Several programs such as the Denton Dolphins will conclude at the end of July which will allow all regular morning operations typically scheduled at the Natatorium to be moved to the Civic Center Pool. This will include contracted users like Master's Swimming, 69 Date: July 5, 2019 Report No. 2019-142 Denton Physical Therapy, and Scuba Diving programming as well as internal scheduling that includes senior aerobics, lap swimming, and water walking. Public swim and water walking will be offered from 7 a.m. through Noon during this closure, Monday through Friday. Similarly, WWP is being used for lifeguard training, classes, and programing before and after public swim hours. The amenities of the WWP such as the lazy river and the wave pool allow staff to expand and enhance regular programming to the outdoor facility. Enrollment of the classes and programs vary as some are on-going and regularly scheduled, such as Senior Aerobics and Splish Splash Storytime, and others are scheduled in blocks such as the 4-day kayak class. All programming is currently meeting and/or exceeding enrollment requirements to hold the class. Scheduling includes: Program/Class Schedule Time Kayak Class (Lazy River Monday—Thursday 8:30 a.m. — 10:30 a.m. Group Swim Lessons Monday- Thursday 9:30 a.m. — 10:45 a.m. Wave Pool Senior Aerobics (Lazy River Monday/Wednesday/Friday 10:15 a.m. — 11:15 a.m. Splish Splash Storytime Friday 10:00 a.m. — 10:45 a.m. Children's Pool - Libra River Robics (Lazy River Monday/Tuesday/Thursday 6:30 p.m. —7:25 p.m. Required Lifeguard Training Saturday 8:00 a.m. — 10:00 a.m. (4 hours per month/ 155 staff) After 7:00 p.m., the CCP and WWP are made available for after-hour rentals. This type of rental can include private parties, corporate or business events, and community group gatherings. WWP currently has 26 after-hour rentals booked for 2019 while the CCP currently has 65 after- hour rentals booked. Additionally, hours prior to opening are used to perform required staff training and maintenance of the pools. Each lifeguard is required to complete four hours of training a month to maintain their certification. Staff training is scheduled in rotations on Saturdays to meet this requirement. Pool maintenance and cleaning are performed on a daily basis with deep cleaning performed weekly on Sunday mornings. On December 3, 2018, the Parks, Recreation and Beautification Board received information on after-hour programming in response to a request for information on hours of operation for WWP. Staff provided a proposed schedule of programming which is now in place and recommended maintaining the current hours of operation to continue offering alternative programming and maximize facility usage. Staff committed to exploring the possibility of extending hours if classes and programs did not meet enrollment requirements and proposed adding evening family events. 70 Date: July 5, 2019 Report No. 2019-142 Based on that discussion, PARD added two family night events: • Dive-In Movie Moana June 21 8-11 p.m. • Dive-In Movie Harry Potter and the Sorcerer's Stone July 19 8-11 P.M. Admission options were available as an add-on to a daily admission or pass or as a ticket purchase just for the event. Free swim time was incorporated prior to the show starting after dark. The first Dive-In event was a success with 432 in attendance. DISCUSSION: The CCP and WWP currently hosts a variety of programs scheduled outside of regular public swim hours optimizing the use of each facility to meet the diverse needs and program demands of our community. Extending WWP or CCP hours beyond the current opening and closing hours would displace existing programs and potentially result in cancellations. Staff recommends maintaining the current hours of operation for both facilities to continue offering alternative programming before and after park hours. Under the current program scheduling,there is the potential to host evening family night events or extend hours on Wednesday nights at the CCP with the exception of July 24th which is booked for a rental. Staff will assess the impact of change and implement as feasible for the current season. CONCLUSION: At the end of each season, staff reviews the performance of each park and evaluates programming in the planning and scheduling for the next season. During this process, staff will continue to explore all options for extended public swim times and the addition of evening family events. STAFF CONTACT: Monica Martin Recreation Supervisor, Aquatics Monica.martin(a,cityofdenton.com REQUESTOR: Council Member Briggs PARTICIPATING DEPARTMENTS: Parks and Recreation STAFF TIME TO COMPLETE REPORT: 4 Hours 71 Date: July 5, 2019 Report No. 2019-143 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FY 2018-2019 Denton Energy Center(DEC) Dashboard—May 2019 BACKGROUND: Attached is the FY 2018-2019 Denton Energy Center Dashboard for May 2019. The dashboard is intended to give a snapshot of relevant DEC metrics. The dashboard highlights the following: • The Emission Chart displays the May engine runtime hours, starts, stops, monthly and annual emissions totals and limits. o Cold Start—Emission system is below 115°. More emissions are produced from cold starts than warmer starts. o Warm Start—Emission system is between 116' and 170°. o Hot Start - Emission system is above 170°. o Stops—Emissions are produced each time the engine is stopped. • DEC MWh Generation and Gross Revenue for FY 2018-2019 through May 2019. • A DEC financial summary showing FY 2017-2018 Actuals, FY 2018-2019 Budget, YTD Revenues &Expenses and Fiscal Year End Projections by Expense Category. • Notably, DEC debt service payments will exceed budget by$9.1M this year in adherence to bond requirements. The variation doesn't change the total amount of bond debt service payments but increases the FY 2018-19 debt service expense. o The first principal payment on the DEC revenue bond will be made on 12/1/19. In accordance with our normal procedures, we budgeted this payment in FY 2019- 20. o The bond language varies from other bonds and requires transfers to the debt service fund on a monthly basis. Thus, increased expenditures over budget are realized in FY 2018-19. This has no change on the overall DEC debt service payments. o This transfer requirement was found from an internal staff review of bond language. • The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times. • The Key Financial Trends section explains the footnotes in the financial section and will be used to explain variances in revenues and expenses. Overall, the DEC had more run hours in May 2019 than previous months. As we continue to gain historical data of DEC operations we'll be better able to identify trends in future months. ATTACHMENT(S): Denton Energy Center(DEC) Dashboard—May 2019 72 Date: July 5, 2019 Report No. 2019-143 STAFF CONTACT: David Gaines, Director of Finance (940) 349-8260 David.Gaines@cityofdenton.com REQUESTOR: Staff generated PARTICIPATING DEPARTMENTS: DME, Finance STAFF TIME TO COMPLETE REPORT: 8 hours 73 City of Denton, Texas F O -- OMM FY 2018-19 Denton Energy Center DENTON YTD May 2019 Dashboard Emissions May 2019 Engine Runtime Hot Warm Cold Description (hours) Starts Starts Starts Stops Description NOx CO VCO PM PM SO NH CO2e DEC Monthly Emissions Total(tons) 1.10 1.07 0.70 1.02 1.02 0.02 0.31 7,140.00 Engines(1-12) 2,116 30 45 73 148 DEC Annual Permit Limit Operations(tons) 30.52 92.95 48.29 69.76 69.76 1.60 60.90 Monthly Plant Emissions per DEC Permit Limit 3.62% 1.16- 1.449/ 1.465' 1.469, 0.9651 0.50% nnual to Date Plant Emissions per DEC Permit Limit 21.20% 6.90� 10.309/ 4.90Y 4.9094 4.10Y 1.00% Generation&Gross Revenues Plant Monthly Run Hour Comparison Month Revenue(In Millions) MWh $/MWh 2,500 Oct-18 $2.02 23,521 $85.77 2,116 Nov-18 $1.71 17,919 $95.16 Dec-18 $0.34 5,693 $59.61 2,000 Jan-19 $0.50 9,665 $51.80 1,481 1,539 2,633 Feb-19 $0.80 11,507 $69.79 1,433 1,458 0 1,500 - -- 1,336-- Mar-19 $1.34 17,435 $76.77 2 Apr-19 $0.95 14,467 $65.97 1,033 May-19 $0.66 12,513 $52.41 1,000 - 752 923 - Total FY 18-19 $8.31 112,719 $73.76 466 FY 2017-18 FY 2018-19 FY 2018-19 FY 2018-19 500 - ACTUALS BUDGET YTD PROJECTION DEC REVENUE* $ 11.88 $ 36.30 $ 8.31 $ 29.40 0 Jul Aug Sept Oct Nov i Dec Jan Feb Mar Apr May EXPENDITURE SUMMARY Serie5l 1,481 1,539 1,033 1,633 1, 1,458 1,336 2,116 Energy Expense-Fuel $ 2.17 $ 14.97 $ 3.63 $ 14.71 Personal Services 0.91 1.87 1.13 1.85 Operating Month Materials&Supplies 0.36 0.14 0.12 0.13 Maintenance&Repair 0.03 0.26 0.09 0.28 Insurance(1) 0.44 0.45 0.01 0.49 Key Trends Miscellaneous - - - 0.01 Operations 0.14 0.82 0.14 0.81 (1) In August 2018,$443,454 was paid to COD self insurance fund for insurance on Denton Energy Center-The policy period is 5/25/2018 to 5/25/2019. Debt Service-Principal(1) - - 3.58 5.97 (2) DEC Debt Service principal and interest payments will exceed budget by$9.1M this year in Debt Service-Interest(2) 4.45 4.21 7.58 adherence to bond requirements The variation does not change total debt service paid over the Interfund Transfers - - - - life of the bond,but does increase the FY 2018-19 debt service payment Transfer to Capital Projects(3) 0.30 0.01 - 0.01 (3) Includes$157,000 for rolling stock equipment,and $140,000for the purchase of shelving/racks/equipment in FY2017-18. DEC EXPENDITURES $ 4.35 $ 22.97 $ 12.91 $ 31.84 (4) Capital Charge Back represents capitalized expenses during construction and startup.The charge CAPITAL CHARGE BACK(4) $ (0.92) $ - $ - $ - back was charged FY 2017-18 during construction and startup. DEC NET INCOME $ 8.45 $ 13.33 $ (4.60) $ (2.44) 74 *Preliminary,Unaudited Figures I Note: All dollar figures presented are in millions of dollars. CouncilRequests Council Meeting Requests for Information Row ID —mr- Title _VW_ Request Request Date Staff Responsible ., 1 2019-260 PEC-4 Survey ISR on requirements to survey property owners adjacent to the PEC-4 project regarding their 02/26/19 Estes Capital Projects Council Meeting I Information will be provided in a future Friday report. Meltzer willingness to allow use of right-of-way easements for bicycle and pedestrian paths? 2019-357 Comprehensive Low-Income Work Session on comprehensive process for low-income housing strategy that includes housing 03/20/19 Kuechler/Shaw Community Development Council Meeting This process will be discussed during a future work session. Meltzer 2 Housing Strategy bonds,density bonuses,grants for low income rentals,land swaps and other tactics to maximize the availability of affordable housing. 3 2019-431 Rayzor Ranch Update ISR on Rayzor Ranch Town Center change of ownership,information on the land overlays and 04/03/19 McDonald/Rogers Economic Development/Development Council Meeting Information will be provided in a future Friday report. Watts the process to amend overlays,and information related to the incentives. Services 4 2019-469 Community Market Information on the addition of a City position to support all non-profit agencies. 04/09/19 Kuechler/Rogers Public Affairs/Community Development Council Meeting Information will be provided in the July 6 Friday report. Hudspeth 5 2019-586 CDBG Locations Can CDBG allocations be required to be located in specific areas around the City?How many 05/07/19 Kuechler/Shaw Community Development Council Meeting Information will be provided in a future Friday report. Hudspeth lots/homes is Habitat for Humanity planning to purchase and build? 6 2019-585 Artificial Turf Staff report on the City's use of artificial turf and the viability of using it in parks and sports fields. 05/07/19 Packan/Behrens Parks and Recreation Council Meeting Information will be provided in the July 6 Friday report. Armintor 7 2019-630 PEC 4 Property Documentation Document the current state of properties that will be upgraded and altered through the PEC 4 05/21/19 Estes Capital Projects Council Meeting Information will be provided in a future Friday report. Davis Drainage Improvements Project for historical records. 2019-650 MKOC Accessibility Information on sidewalks near MKOC and the feasibility of adding a DCTA stop at the facility. 05/21/19 Estes/Canizares Capital Projects/City Manager's Office Council Meeting Information regarding DCTA access was provided in the June 14 Friday Armintor 8 report.Information regarding sidewalks will be provided in a future Friday report. 9 2019-644 Kids at Play Signs Design and purchase a"slow-kids at play"sign with the City logo that could be made available to 05/21/19 Estes/Kuechler Capital Projects/Public Affairs Council Meeting Information will be provided in a future Friday report. Hudspeth residents for placement in their yards. 10 2019-634 DCTA Work Session Work Session on options to enhance City's partnership with DCTA under the new governance 05/21/19 Canizares City Manager's Office Council Meeting A work session has been scheduled for August 6. Davis structure. 11 2019-646 Redistricting Resolution Resolution from City Council to ask the County to wait on their redistricting until the 2020 Census 05/21/19 Wood City Manager's Office Council Meeting This will be prioritized with other requests during the July 23 Strategy Armintor Session. 12 2019-643 Habitat for Humanity Homes in Information on ways to incentivize the inclusion of Habitat for Humanity homes to new 05/21/19 Kuechler/Shaw Community Development Council Meeting Information will be provided in a future Friday report. Briggs New Developments developments. 13 2019-642 Industrial Sites to Noise Information on how industrial sites could be added to noise ordinance. 05/21/19 McDonald Development Services Council Meeting Information will be provided in a future Friday report. Briggs Ordinance 14 2019-641 Landlord Incentives Landlord incentives provided by the City for reduced taxes for those making units available for 05/21/19 McDonald Development Services Council Meeting Information will be provided in the July 6 Friday report. Briggs transitional housing. 15 2019-637 Options for Oakwood Cemetery Information on the ability to add plots or tree banking on abandoned ROW at Oakwood 05/21/19 Packan Parks and Recreation Council Meeting Information will be provided in a future Friday report. Meltzer ROW Cemetery. 16 2019-628 Recycling Contamination Staff report on ways to reduce recycling contamination rates,including alternative bin designs 05/21/19 Boerner/Cox Solid Waste Council Meeting Information will be provided in a future Friday report. Armintor/Meltzer and what cities with low contamination rates have done to educate the public. 17 2019-688 Part Time Employee Pay Information on the number of part-time City of Denton employees making less than$10 per hour. 06/03/19 Romine Human Resources Council Meeting Information will be provided in a future Friday report. Briggs 18 2019-689 Mowing Contracts Comparison of cost for the City to conduct mowing in-house compared to contracting locally for 06/03/19 Packan Parks and Recreation Council Meeting Information will be provided in a future Friday report. Armintor this service. 19 2019-686 Living Wage Incentives for Options to incentivize current City contractors to pay a living wage and projections on associated 06/03/19 Ogden Procurement Council Meeting Information will be provided in the July 6 Friday report. Hudspeth Contractors cost increases incurred by the City. 20 2019-687 Employee Wage Criteria for City Revise contractor evaluation criteria to require that bidders provide a list of employee salaries as 06/03/19 Ogden Procurement Council Meeting Information will be provided in the July 6 Friday report. Briggs/Davis Contractors a part of their submissions. 2019-685 $15 Hourly Minimum Starting Budget impact to make minimum starting pay for all City employees(full time,part time,and 06/03/19 Ogden/Romine Procurement/Human Resources Council Meeting Information will be provided in a future Friday report. Armintor/Ryan 21 Pay seasonal)incremental increases leading to$15 per hour($10,$12,and$15).Data on how many seasonal employees are in high school or college.Provide additional description of the seasonal and part time positions that are currently making less than$15 per hour. 22 2019-708 Sidewalks on Ruddell Information on use of CDBG or other funding to install sidewalks along Ruddell to support 06/04/19 Estes Capital Projects Council Meeting Information will be provided in a future Friday report. Armintor/Briggs Solutions of North Texas project. 23 2019-707 Fee Waiver to Non-Profit Information on the policy options for a development fee waiver or City administered grant 06/04/19 Kuechler/Shaw/McDonald Community Development/Development Council Meeting Information will be provided in a future Friday report. Briggs/Armintor/Davis Agencies program for non-profit agencies. Services 24 2019-716 Bad Debt How much of Customer Services'bad debt is a result of late fees and penalties? 06/04/19 Thomson/Foster Customer Service Council Meeting A work session is planned for August 20 where this information will be Briggs discussed. 2019-791 Credit Collections Work Session Work session on credit and collections follow up for Council to provide policy feedback on 06/04/19 Thomson/Foster Customer Service Council Meeting A work session is planned for August 20 where this information will be Briggs 25 percentage versus flat late fees. Provide comparative data from peer cities related to handling of discussed. account deposits and balances on transfers of service. 26 2019-705 Rates to Cover Removal of Impact of potential fee increase to average residential and commercial accounts to recoup 06/04/19 Thomson/Foster Customer Service Council Meeting Information will be provided in a future Friday report. Briggs Fees previous revenue received from online and phone payment fees. 27 2019-711 Employee Residence Policies Work session on incentive policies or employment policies to address City of Denton employees 06/04/19 Romine Human Resources Council Meeting Information will be provided in a future Friday report. Briggs living in the City limits. 28 2019-714 County Crime Lab Information on steps required to establish a County-wide crime lab. 06/04/19 Dixon/Gaines Police/Finance Council Meeting Information will be provided in a future Friday report. Ryan 29 2019-710 Energy Consumption at Water Information on the amount of energy used at City water and waste water facilities and the 06/04/19 Banks/Puente Water/Wastewater/DME Council Meeting Information will be provided in the July 6 Friday report. Briggs and Waste Water Facilities feasibility of adding solar panels to reduce energy costs. 2019-733 Full Solid Waste Value Fully value solid waste wholesale taking into consideration the cost of service and loss of landfill 06/11/19 Boerner Solid Waste Council Meeting Information will be provided in the July 6 Friday report. Meltzer 30 space.What would be required for stabilization of the fund?What would the impact be on the landfill permit expansion? 31 2019-734 Waste Reduction Strategy Information on a more comprehensive waste reduction strategy to manage landfill space. 06/11/19 Boerner Solid Waste Council Meeting Information will be provided in the July 6 Friday report. Davis 32 2019-769 Construction Projects Information on what can be done to address the appearance that City projects start and then stall 06/18/19 Estes Capital Projects Council Meeting Information will be provided in a future Friday report. Meltzer once the land is cleared or initial work is done. 33 2019-774 Rules for Relocation Rules for relocation and financial assistance during property acquisition. 06/18/19 Cody Capital Projects Council Meeting Information will be provided in a future Friday report. Briggs 34 2019-776 Property after Bonnie Brae What land will be left after the Bonnie Brae project and what are the plans for that left over land? 06/18/19 Estes Capital Projects Council Meeting Information will be provided in a future Friday report. Hudspeth Widening 35 2019-778 Referencing Emails Discussion on addressing elected officials referencing emails in an open forum without providing 06/18/19 Wood City Manager's Office Council Meeting Information will be provided in a future Friday report. Hudspeth copies of the emails referenced as back-up material for the record. 36 2019-767 Basic Services Center Work session on basic services center,include an update on the shelter workgroup and discuss 06/18/19 Kuechler/Shaw Community Development Council Meeting Information will be provided in a future Friday report. Watts 501(c)3 status,history,and ability to deliver. 37 2019-768 Basic Services Center Report on candidate properties for a Basic Services Center?Consider Ruddell property 06/18/19 Kuechler/Shaw Community Development Council Meeting Information will be provided in a future Friday report. Meltzer Exported on July 5,2019 2:04:10 PM CDT 75 Page 1 of 2 Title Request Request Type 38 2019-775 Tiny House Village Provide an update on land available for a tiny house village and if it could be collocated on 06/18/19 Kuechler/Shaw Community Development Council Meeting Information will be provided in a future Friday report. Hudspeth/Davis property for a Basic Services Center. Exported on July 5,2019 2:04:10 PM CDT 76 Page 2 of 2 CouncilRequests Other Council Requests for Information Row ID Title Request I Request Date I Staff Responsible 1 2019-079 Verizon/Frontier Pole Debt Update on the Verizon/Frontier pole attachment debt. 12/03/18 Puente/Morrow/Adams DME Other Council Requests Information will be provided in a future Legal Status Report. Meltzer 2 2019-414 Street Contractors Prepare a list of contractors who were found to have done faulty compaction work leading to 04/02/19 Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Meltzer street failures. 3 2019-601 Gas Well Pre-Emption Specifics regarding the previously stated State pre-emption concerns for gas wells.Need more 05/14/19 Leal/Banks City Attorney's Office/Utilities Other Council Requests Information will be provided during the July 15 Luncheon.A separate Legal I Davis specific information on who is grandfathered in and why. Status Report will also be distributed related to this issue. 2019-600 City Funds to Outside Entities Staff report on City funds provided to outside entities including partnerships where real estate is 05/14/19 Gaines/Wood Finance/City Manager's Office Other Council Requests Information will be provided in a future Friday report. Davis 4 provided(cash or in-kind),or funding for salaries is provided and the requirements placed on those entities. 2019-610 Gas Well Discussion Please prepare a Legal Status Report on the requirements for existing gas wells and/or pad 05/17/19 McDonald/Leal/Banks City Attorney's Office/Development Other Council Requests Information will be included in the July 15 work session and a separate Legal Watts sites.Additionally,have staff prepare maps of all gas well plats together with various setback Services/Utilities Status Report. 5 radii that identifies the applicable setback setback for each pad site and the conditions required to make new gas well development subject to new codes.If most sites are vested,what is left that would be impacted by the new regulations? 6 2019-615 Jail time vs.shelter costs How much does it cost taxpayers for someone to stay one night in jail and how does that 05/19/19 Kuechler/Dixon Community Development/Police Other Council Requests Information will be provided in a future Friday report. Briggs compare to the daily rate for the Monsignor King enhanced shelter? 7 2019-665 Oak Property Concerns Clarification on property value increase patterns for the Oak Street property.Have there been 05/28/19 Puente/Gaines Finance Other Council Requests Staff is working with the Denton County Appraisal District to prepare a Briggs similar trends with other properties or were there other factors at play specific to this property? response.Information will be provided in a future Friday report. 2019-667 Women's Safety in Denton Information on several issues associated with women's safety in Denton: 05/28/19 Dixon/Estes Police(Primary)Capital Projects Other Council Requests A response to the pedestrian lighting question was provided to CM Armintor. Armintor -Pedestrian lighting on Mulberry to Carroll due to recent sexual assaults in the area (Assist) Additional information will be provided in the July 12 Friday report. -Map of reported sexual assaults that have occurred in Denton over the past 5 years and an 8 assessment of the pedestrian lighting needs in those areas -Staff report on adding DPD Victims'Services Counselors to follow-up with victims who have reported assaults and to serve as their primary liaison. Include information on ways to ensure diversity with Victims'Services Counselors and data on the number of sexual assaults reported over the past five years and associated staffing needs to support any increases in activity. 9 2019-681 Roundup Elimination Cross-departmental strategy and budget to sunset use of Roundup citywide. 06/02/19 Packan Parks and Recreation,Utilities,Streets, Other Council Requests Information will be provided in a future Friday report. Briggs 10 2019-695 Locust and Elm Congestion Information on strategies to alleviate congestion on Locust and Elm particularly in light of staffs 06/03/19 Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Briggs recommendation not to re-open Taliaferro Street. 11 2019-694 Living Wage for City Prepare a single document responding to the questions raised by City Council during the June 3 06/03/19 Ogden Procurement Other Council Requests Staff is compiling the requested information and will include responses in a Armintor Contractors Living Wage for City Contractors presentation. future Friday report. 2019-702 Credit Collections Work Session Provide logistical and operational details of how the following may apply in Denton:Grand 06/04/19 Thomson/Foster Customer Service Other Council Requests Information will be provided in a future Friday report. Armintor 12 Prairie's rate structure,income based discounts,senior programs and discounts,Veteran's deposit waivers. Can DHA's voucher list be used to determine needs? 2019-700 City's Economic Impact as an Staff Report on the City's relative economic impact as an employer in terms of the number of jobs 06/04/19 Rogers Economic Development Other Council Requests Information will be provided in a future Friday report. Armintor Employer the city of Denton contributes to our local economy,at each of the various pay and employment 13 levels(broken down by pay level)versus other major employers in the area(the universities, Peterbilt,Tetrapak,Target,Walmart,etc.)and recent and future 380 agreements like Buc-ees, the Convention Center,and Tyson. 2019-699 Turnover Data Staff report on turnover rates by department at all pay levels(part time,full time,and seasonal) 06/04/19 Romine Human Resources Other Council Requests Information will be provided in a future Friday report. Armintor 14 including which department have the highest turnover rates and at what pay grades the turnover occurs,costs associated with turnover to the department,and known reasons for turnover. 15 2019-698 Choctaw Update Staff update on Choctaw natural preservation project. 06/04/19 Kremer/Cox Public Works Other Council Requests Information will be provided in a future Friday report. Davis 2019-729 Good Samaritan Duck Pond Follow-up requested regarding the date the construction berm was in place and for the City to 06/11/19 Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Armintor/Briggs 16 Follow-Up conduct a water sample at the conclusion of construction project to confirm that the water is clean enough to serve as a TCA-certified wildlife habitat. 17 2019-740 Lack of Handicapped Parking The public parking at Oakland and McKinney needs handicapped parking near the Oakland- 06/12/19 Deshmukh/Oliphant Capital Projects Other Council Requests Information will be provided in a future Friday report. Watts on South McKinney McKinney corner accessible to the new McKinney crosswalk. 18 2019-748 Road Warranty Provide data collected used to describe the two year warranties for roadways. 06/15/19 Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Meltzer 19 2019-751 Water Main Break Notifications Is there an automated notification service available to notify residents about loss of water when a 06/15/19 Banks/Thomson Utilities Admin Other Council Requests Information will be provided in a future Friday report. Briggs water main break occurs? 20 2019-779 Elected Officials Serving on Workshop on the potentially altering current City requirements for elected officials to serve on 06/18/19 Wood/Rios City Secretary's Office Other Council Requests This will be prioritized with other requests during the July 23 Strategy Hudspeth Community Boards community board such as the Economic Development Partnership Board. Session. 21 2019-759 Living Wage Is HR staff available to meet regarding a living wage policy for city staff and a paid family leave 06/18/19 Romine Human Resources Other Council Requests Information will be provided in a future Friday report. Armintor policy? 22 2019-760 North Lakes Park Fence When will the new partial fence around the soccer field at North Lakes Park? 06/18/19 Packan Parks and Recreation Other Council Requests Information will be provided in a future Friday report. Armintor 23 2019-787 Construction Traffic Patterns Assess traffic patterns and signage for the construction near Ave C and Hickory 06/19/19 Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Ryan 24 2019-788 Villages of Carmel Traffic Assess whether a stop sign or yield sign is supported in the Villages of Carmel 06/19/19 Deshmukh Capital Projects Other Council Requests Information will be provided in a future Friday report. Hudspeth 25 2019-796 Brookshires Property Is there any interest from grocery companies in the Brookshire's property?Are there any factors 06/22/19 Rogers Economic Development Other Council Requests Information will be provided in a future Friday report. Meltzer that are inhibiting new grocery stores from coming into that area? 2019-802 Mockingbird Lane/Mingo Road Provide information on the operational impact associated with the train,church hours on 06/26/19 Deshmukh Capital Projects Other Council Requests Information will be provided in a future Friday report. Hudspeth 26 Traffic Impact Assessment Sundays,staff recommendations for access/exits,and a potential community meeting to discuss Follow-Up Requests traffic impacts with the community. 27 2019-813 Update on Potential Kings Row Provide a status update on the potential use of the former Kings Row substation site as a 06/30/19 Heath/Puente DME Other Council Requests Information will be provided in a future Friday report. Briggs Garden community garden. 2019-812 Walking Quorums Clarification on how the new SB 1640 is different than the walking quorums of TOMA.Prepare a 06/30/19 Adams/Wood Public Affairs/City Secretary's Office Other Council Requests Information will be provided in a future Friday report. Armintor 28 staff report on this legislation including when it does/does not apply and explaining the differences between strict adherence to TOMA vs.the new requirement. 29 2019-816 Parking Congestion due to Can parking restrictions be put in place during the Bonnie Brae construction project to alleviate 07/01/19 Deshmukh/Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Briggs Bonnie Brae Traffic congestion caused by on-street parking caused along Jagoe,Bradley,and Thomas? 2019-819 Construction Traffic Concerns Residents are expressing concerns about Bonnie Brae construction traffic including how to 07/02/19 Deshmukh/Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Armintor 30 access west scripture,traffic caused by the detour combined with rush hour,and concerns about street closures on Pennsylvania and Woodbrook closures in Southridge. 31 2019-827 Duchess Drive Follow-Up Can no parking be initiated sooner than August 2019 along Duchess Drive? 07/03/19 Deshmukh Capital Projects Other Council Requests Information will be provided in the July 6 Friday report. Hudspeth 32 2019-826 Rotary Project Is staff available to meet with the Noon Rotary Club to discuss the Emily Fowler Reading/Music 07/03/19 Bekker Library Other Council Requests Information will be provided in a future Friday report. Meltzer Nook fundraising project? 33 2019-828 Bonnie Brae Can the exit for University be moved back for the Bonnie Brae detour? 07/04/19 Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Armintor Exported on July 5,2019 3:02:29 PM CDT 77 Page 1 of 2 Title Request Request Type 34 2019-829 North Lakes Trail Stop Signs Evaluate the stop signs on North Lakes Trail and Auburn Dr. 07/05/19 Estes Capital Projects Other Council Requests Information will be provided in a future Friday report. Davis Exported on July 5,2019 3:02:29 PM CDT 78 Page 2 of 2 July 2019 71:30 2 3 4 5 6 Luncheon Meeting o CouncilMeeting -2:30pmAgendaCommittee 11:00amDCRC pm Committee on the Environment Cancelled 5:3 0 p m Traffic Sa fe ty Commission 7 8 9 10 11 12 13 9:00am Public Utilities No Council Meeting 11:00amEDP HOT&S9-11 11:00amDCRC Bo a rd 2:30pm Agenda Committee 4:00 Public At Committee 5:30 Board of Ethics 6:00 pm Bond Advisory Committee 14 15 16 17 18 19 20 11:30 am Council 9am Mobility 5:00pm P&Z Work Session Luncheon 2:00 pm CC Work Session 6:30pmP&Z Regular Session 4:00pm HaBSCo Nbeting 6:30 pm CC Regular Se ssion 6:00pm Committee on 5:3 0p m HLC Persons with Disabilities 21 22 23 24 25 26 27 6:00pm Public Utilities 2:00 pm 4th Tuesday 11:00amTIF Board(TIRZ#1) Bo a rd Session 28 29 30 31 4:00pm ZBA No Council Meeting 79 August 2019 1 2 3 4:00pm Public Art Committee 4 5 6 7 8 9 10 11:30 am Council 2:00 pm CC Work Session 5:00pm P&Z Work Session 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 11 12 13 14 15 16 17 9:00a m Pub he Utilities 9:00 am Mob tlity 11:00am EDP 4:00pm HaBSCo Meting Board Committee 2:00 pm 2nd Tuesday 5:00pm Committee on 5:30pm HLC Session Persons Mth Dis abihties 18 19 20 21 22 23 24 2:00 pm CC Work Session 5:00pmP&Z Work Session 6:30 pm CC Regular 6:30pmP&Z Regular Session Se ssion 25 26 27 28 29 30 31 6:00p m Pub lic Utilities 2:00 pm 4th Tuesday Bo a rd Session 4:00pm ZBA 80 September 2019 1 2 3 4 5 6 7 o Luncheon Meeting No Council Meeting S:OOpmP&Z Work Session 4:OOpm Public AtCommittee 6:30pm P&Z Regular Session 5:3 0 p m Tra ffic Sa fe ty Commission 8 9 10 11 12 13 14 9:00a m Public Utilities 9:00 am Mob ility I1:OOamEDP Board Committee 11:30 am Joint Meeting 2:00 pm CC Work Session w/EDP Board 6:30pm CC Regular Sc ssion 15 16 17 18 19 20 21 30pm HLC 2:00 pm CC Work Session S:OOpmP&Z Work Session 4:00pmHaBSColvbeting 6:30 pm CC Regular 6:30pm P&Z Regular Session Se ssion S:OOpm Committee on Persons with Disabilities 22 23 24 25 26 27 28 6:00p m Pub lic Utilities 2:00 pm 4th Tuesday 11:00 TTF Board(TIRZ Bo a rd Session 29 30 4:00p m ZBA More Calendars from WinCalendar:Word Calendar,Excel Calendar,Online Calendar 81 Cityof Denton City Hall 215 E. McKinney St. Denton,Texas 76201 www.cityofdenton.com DENTON Meeting Agenda City Council Monday,July 15,2019 11:30 PM 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 Monday, July 15, 2019, at 11:30 a.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. Work Session Reports A. ID 19-1600 Receive a report and hold a discussion regarding gas well setback distances in Denton, setback requirements in other area cities, legal and development issues, and information concerning a gas well setback distance study. NOTE: 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. 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 AND COUNCIL CHAMBERS ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. Page 1 Printed on 71212019 82 Cityof Denton City Hall 215 E. McKinney St. Denton,Texas 76201 www.cityofdenton.com DENTON Meeting Agenda City Council Tuesday,July 16,2019 2:00 PM Work Session Room&Council Chambers WORK SESSION BEGINS AT 2:00 P.M.IN THE WORK SESSION ROOM REGULAR MEETING BEGINS AT 6:30 P.M.IN THE COUNCIL CHAMBERS After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, July 16, 2019 at 2:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street,Denton,Texas at which the following items will be considered: 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 this agenda. 3. Work Session Reports A. ID 19-1324 Receive a report, hold a discussion, and give staff direction regarding the Board of Ethics recommended amendments to the Ethics Ordinance and City Attorney's role in relation to the Ethics Board. B. ID 19-1411 Receive a report, hold a discussion, and give staff direction regarding broadband internet options in the Pecan Creek neighborhood. C. ID 19-1454 Receive a report, hold a discussion, and give staff direction regarding the 86th Session of the Texas State Legislature and impacts of new legislation to the City of Denton. D. ID 19-1513 Receive a report, hold a discussion, and give staff direction regarding a policy to receive reimbursement for uncompensated charity care costs for Emergency Medical Services. E. ID 19-1512 Receive a report, hold a discussion, and give staff direction regarding the General Fund preliminary FY 2019-20 Proposed Budget, Capital Improvement Program, and Five Year Financial Forecast. F. ID 19-1453 Receive a report, hold a discussion, and give direction regarding departmental presentations in preparation for the FY 2019-20 Proposed Budget, Capital Improvement Program, and Five Year Financial Forecast. G. ID 19-1538 Receive a report, hold a discussion and give staff direction regarding the Denton Page 1 Printed on 71512019 83 City Council Meeting Agenda July 16,2019 Municipal Electric (DME) Fiscal Year 2019-20 Operating Budget and Capital Improvement Program. 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 19-1609 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. Deliberate and discuss competitive information regarding public power operational and financial matters pertaining to the purchases and risks of wholesale energy supply pertaining to the proposed electric budget. Any final action, decision, or vote on a matter deliberated in a Closed Meeting will only be taken in an Open Meeting that is held in compliance with Texas Government Code, Chapter 551, except to the extent such final decision, or vote is taken in the Closed Meeting in accordance with the provisions of Section 551.086 of the Texas Government Code (the `Public Power Exception'). The City Council reserves the right to adjourn into a Closed Meeting or Executive Session as authorized by Texas Government Code, Section 551.001, et seq. (The Texas Open Meetings Act) on any item on its open meeting agenda or to reconvene in a continuation of the Closed Meeting on the Closed Meeting items noted above, in accordance with the Texas Open Meetings Act,including,without limitation Sections 551.071-551.086 of the Texas Open Meetings Act. REGULAR MEETING OF THE CITY OF DENTON CITY COUNCIL AT 6:30 P.M. IN THE COUNCIL CHAMBERS AT CITY HALL, 215 E. MCKINNEY STREET, DENTON, TEXAS AT WHICH THE FOLLOWING ITEMS WILL BE CONSIDERED: 1. PLEDGE OF ALLEGIANCE A. U.S.Flag B. Texas Flag "Honor the Texas Flag—I pledge allegiance to thee,Texas, one state under God,one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS A. ID 19-1480 International Order of Odd Fellows Denton Lodge,No 82, 160-Year Anniversary B. ID 19-1519 Denton Disability Rights Day C. ID 19-1606 2019 Citizen's Academy 3. PRESENTATION FROM MEMBERS OF THE PUBLIC A. Review of procedures for addressing the City Council. Page 2 Printed on 71512019 84 City Council Meeting Agenda July 16,2019 B. Receive Scheduled Citizen Reports from Members of the Public. This section of the agenda permits any person who has registered in advance to make a citizen report regarding a public business item he or she wishes to be considered by the City Council. This is limited to no more than four (4) speakers per meeting with each speaker allowed a maximum of four (4) minutes to present their report. At the conclusion of each report, the City Council may pose questions to the speaker or may engage in discussion. If the City Council believes that a speaker's report requires a more detailed review, the City Council will give the City Manager or City Staff direction to place the item on a future work session or regular meeting agenda and advise staff as to the background materials to be desired at such meeting. C. Additional Citizen Reports - This section of the agenda, which is also known as the "open microphone" section, permits any person who is not registered for a citizen report to make comments about public business items not listed on the agenda. This section is limited to two open microphone speakers per meeting with each speaker allowed a maximum of four (4) minutes. Such person(s) must file a "Blue Card" requesting to speak during this period,prior to the calling of this agenda item. During open microphone reports under this section of the agenda, the Council may listen to citizens speak. However, because notice of the subject of the open microphone report has not been provided to the public in advance, the Texas Open Meetings Act limits any deliberation or decision by the Council to: a proposal to place the item on a future agenda; a statement of factual policy; or a recitation of existing policy. Council Members may not ask the open microphone speakers questions or discuss the items presented during open microphone reports. NOTE: If audio/visual aids during presentations to Council are needed, they must be submitted to the City Secretary 24 hours prior to the meeting. 4. CONSENT AGENDA Each of these items is recommended by 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 — W). 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, the Consent Agenda Items 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 19-685 Consider approval of a resolution of the City of Denton, Texas allowing the Denton Black Chamber of Commerce to sell alcoholic beverages for the Denton Blues Festival to be held on Saturday, September 21 through Sunday, September 22, 2019, at the Quakertown Park upon certain conditions; authorizing the City Manager or his designee to execute an agreement in conformity with this resolution; and providing for an effective date. B. ID 19-1123 Consider adoption of an ordinance of the City of Denton prohibiting parking on the south side of Hickory Street from Avenue B to Welch Street; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; providing that violations of this ordinance shall be governed by Chapter 18 of the Code of Ordinances of the City of Denton; and providing for an effective date. The Page 3 Printed on 71512019 85 City Council Meeting Agenda July 16, 2019 Traffic Safety Commission recommended approval(6-0). C. ID 19-1124 Consider adoption of an ordinance of the City of Denton converting the traffic pattern on Avenue A (from Hickory to Mulberry) and Mulberry Street (from Avenue A to Welch) from two-way traffic to one-way (north and west bound); providing a repealer clause; providing a severability clause; providing for a penalty not to exceed $500 for violations of this ordinance; providing that violations of this ordinance shall be governed by Chapter 18 of the Code of Ordinances of the City of Denton, and providing for an effective date. The Traffic Safety Commission has recommended approval(5-0). D. ID l 9-1 405 Consider approval of the minutes of June 4,June 18,and June 26,2019. E. ID 19-1094a Consider adoption of a resolution of the City of Denton, Texas, Nunc Pro Tunc, correcting a mistake in passing Resolution 19-1094, specifically the version signed by the mayor after adoption was not the final version of the resolution presented to City Council. The intended resolution approves properties at 607 E. College and 900 Egan as historically significant sites in need of tax relief to encourage their preservation, pursuant to the terms and limitation of Article VI of Chapter 10 of the Denton Code of Ordinances. (ID 19-1094,Roman McAllen) F. ID 19-1441 Consider approval of a resolution of the City Council of the City of Denton superseding Resolution 18-1377 regarding the Denton Handbook for Boards, Commissions, and Council Committees to correct a prior clerical error in Resolution 18-1377, which was previously adopted by City Council to clarify which sections of the Denton Handbook for Boards, Commissions, and Council Committees are applicable to citizen boards, commissions, committees, task forces and ad hoc committees; and declaring an effective date. G. ID 19-1465 Consider the adoption of an ordinance of the City of Denton, Texas prohibiting on-street parking along the north side of Gregg Street between Fulton Street and Denton Street; providing a repealer clause; providing a savings clause; providing for a penalty not to exceed $500 for violations of this ordinance; providing that violations of this ordinance shall be governed by Chapter 18 of the Code of Ordinances of the City of Denton; and providing for an effective date. Traffic Safety Commission recommends 5-0. H. ID 19-1488 Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for the payment of wholesale transmission charges in the total amount of $188,564.50 to Texas Municipal Power Agency; and, providing an effective date. The Public Utilities Board recommends approval(?-?). I. ID 19-1504 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with Freese and Nichols, Inc., to perform risk and resiliency assessment to comply with the America Water Infrastructure Act (AWIA) of 2018 as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6590-061 Professional Services Agreement awarded to Freese and Nichols, Inc. in the not-to-exceed amount of $106,750). The Public Utilities Board recommends approval ( - Page 4 Printed on 71512019 86 City Council Meeting Agenda July 16,2019 J. ID 19-1506 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with Gupta & Associates Inc., for Development of Water Reclamation SCADA Master Plan for the City of Denton as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6919- Professional Services Agreement for awarded to Gupta & Associates Inc., in the not-to-exceed amount of $216,102). The Public Utilities Board recommends approval(-). K. ID 19-1509 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 Last Chance Redi-Mix, LLC for the disposal of spoil materials resulting from internal City construction and maintenance activities; providing for the expenditure of funds therefor; and providing an effective date (IFB 7075- awarded to Last Chance Redi-Mix, LLC, in the three (3) year not-to-exceed amount of $3,600,000). The Public Utilities Board recommends approval(-). L. ID 19-1511 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 Techline, Inc., for the supply of Traffic Signal Poles for the City of Denton Distribution Center; providing for the expenditure of funds therefor; and providing an effective date (RFP 7081-awarded to Techline, Inc. for one (1) year, with the option for three (3) additional one (1) year extensions,in the total four(4)year not-to-exceed amount of$2,500,000). M. ID 19-1514 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 Purchasing Association of Cooperative Entities (PACE), under the Government Code, Chapter 791.001, to authorize City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 7113 - Interlocal Cooperative Purchasing Agreement with Purchasing Association of Cooperative Entities). N. ID 19-1537 Consider adoption of an ordinance by the City of Denton, Texas, a Texas Home-Rule Municipal Corporation, authorizing the City Manager to execute a contract with Redflex Traffic Systems INC for the removal of an automatic traffic signal enforcement system; and providing an effective date. O. ID 19-1542 Consider adoption of an ordinance of the City of Denton releasing, abandoning, and vacating a 715.20 square foot electric utility easement granted to the City of Denton by James H. Jones, H.M. Burgess, Billy R. Jones, and J. Don Harvey, recorded as Instrument No. 1976-21419 in the Deed Records, Denton County, Texas; providing for severability and an effective date. (EAR19-0002 Park 7, electric easement abandonment -Mark Laird) P. ID 19-1543 Consider adoption of an ordinance of the City of Denton releasing, abandoning, and vacating a 0.054 acre sanitary sewer easement reserved by the City of Denton in the deed without warranty to Texas SB Holdings, llc., a Texas limited liability company, recorded as Instrument No. 2013-30090 in the Real Property Records, Denton County, Texas; Page 5 Printed on 71512019 87 City Council Meeting Agenda July 16,2019 providing for severability and an effective date. (EAR19-0003 PODS at Hickory Addition, sewer easement abandonment-Mark Laird) Q. ID 19-1586 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 with Rush Truck Center through the Buy Board Cooperative Purchasing Network Contract Number 521-16 for the acquisition of one (1) medium duty rear load refuse truck for the Solid Waste Department; providing for the expenditure of funds therefor; and providing an effective date (File 7106- awarded to Rush Truck Center, in the amount of $104,016.59). The Public Utilities Board recommends approval(-). R. ID 19-1589 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute an Interlocal Cooperative Purchasing Agreement with North Central Texas Council of Governments (NCTCOG) under the Government Code, Chapter 791.001, to authorize the City of Denton to purchase new Digital 2019 Orthophotography and Planimetrics data from the NCTCOG Geographic Information System; authorizing the expenditure of funds therefor; and declaring an effective date (File 7107 - award an Interlocal Cooperative Purchasing Agreement to North Central Texas Council of Governments for a five (5) year not-to-exceed amount of$393,963). S. ID 19-1590 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 with Sigma Surveillance, Inc. dba STS360 through the Buy Board Cooperative Purchasing Network Contract Number 574-18 for the acquisition of networked Video Surveillance Camera System for the Technology Services Department; providing for the expenditure of funds therefor; and providing an effective date (File 7053 - awarded to Sigma Surveillance,Inc. dba STS360, in the amount of$1,040,435). T. ID 19-1593 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 City of Irving, under the Government Code, Chapter 791.001, to authorize City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 7114-Interlocal Cooperative Purchasing Agreement with City of Irving). U. ID 19-1594 Consider adoption of an ordinance partially releasing, abandoning, and vacating a 165 square foot tract of an existing 420 square foot guy wire and anchor easement granted to the City of Denton by Bob E. Tripp on January 20, 1976, and recorded in Volume 771 Page 703 in the Deed Records of Denton County, Texas; and fully releasing, abandoning, and vacating (1) a 0.175 acre public access easement granted to the City of Denton by McKamy Development, Ltd., a Texas limited partnership ("McKamy Development") on August 28, 2002, recorded as Instrument No. 2003-60472 in the Real Property Records of Denton County, Texas; (II) a 0.175 acre public access easement granted to the City of Denton by McKamy Development on August 28, 2002, recorded as Instrument No. 2003-60473 in the Real Property Records of Denton County, Texas; (III) a 0.406 acre public drainage easement granted to the City of Denton by McKamy Development on Page 6 Printed on 71512019 88 City Council Meeting Agenda July 16,2019 August 28, 2002, recorded as Instrument No. 2003-60471 in the Real Property Records of Denton County, Texas; and (IV) a 0.283 acre public drainage easement granted to the City of Denton by McKamy Development on August 28, 2002, recorded as Instrument No. 2003-60470 in the Real Property Records of Denton County, Texas; providing for severability and an effective date. (Evers way Addition - guy wire easement, access easements and drainage easements abandonments) V. ID 19-1597 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 Wartsila North America, Inc. for the supply of parts and services for the electric generating equipment at the Denton Energy Center, which is the sole provider of this service in accordance with Texas Local Government Code 252.022, provides that procurement of commodities and services that are available from one source are exempt from competitive bidding; and if over $50,000 shall be awarded by the governing body; and providing an effective date (File 7104- awarded to Wartsila North America, Inc., in the two (2) year not-to-exceed amount of$287,096). The Public Utilities Board recommends approval(-). W. ID 19-1604 Consider adoption of an ordinance of the City Council of the City of Denton, Texas, a Texas home-rule municipal corporation, authorizing the city manager to execute an agreement with ASG Harvest Hill, LTD., a Texas Limited Liability Company, for the city's participation in the oversizing of water mains for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (awarded to ASG Harvest Hill, LTD. in the not to exceed amount of $20,311.00). The Public Utilities Board recommends approval(x-x). 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 19-1060 Consider adoption of an ordinance by the City of Denton, a Texas home-rule municipal corporation authorizing the City Manager, or his designee, to execute an Interlocal Agreement with the University of North Texas to define the duties and obligations involved with the coordination of public safety related efforts; and providing an effective date. B. ID 19-1321 Consider nominations/appointments to the City's Boards, Commissions, and Committees: Board of Ethics, Committee on Persons with Disabilities, and Health & Building Standards Commission. C. ID 19-1439 Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $30,720,000 in principal amount of "City of Denton Certificates of Obligation, Series 2019" for General Government, Technology Services, Water, Wastewater and Electric; authorizing the issuance of the Certificates; delegating the authority to certain City officials to execute certain documents relating to the sale of the Certificates; approving and authorizing instruments and procedures relating to said Certificates; enacting other provisions relating to the subject; and providing an effective date. D. ID 19-1440 Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $47,990,000 in principal amount of "City of Denton Page 7 Printed on 71512019 89 City Council Meeting Agenda July 16,2019 General Obligation Bonds, Series 2019"; authorizing the issuance of the Bonds; delegating the authority to certain City officials to execute certain documents relating to the sale of the Bonds; approving and authorizing instruments and procedures relating to said Bonds; enacting other provisions relating to the subject; and providing an effective date. E. ID 19-1508 Consider appointing a Nominating Committee to recommend appointees to serve on the Economic Development Partnership Board. 6. PUBLIC HEARINGS A. 518-0005g Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, approving a Specific Use Permit to allow for a multi-family dwelling use on an approximately 9.91 acre site, generally located west of Mockingbird Lane, south of Mingo Road, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2000.00 for violations thereof; providing for severability; and establishing an effective date. The Planning and Zoning Commission recommends approval 6-0, with conditions. THIS ITEM WAS POSTPONED BY CITY COUNCIL ON MAY 7, 2019. SUBSEQUENTLY THIS ITEM WAS FURTHER POSTPONED AT THE REQUEST OF THE APPLICANT. (S18-0005g, Mockingbird Multifamily, Ron Menguita) B. Z18-0011g Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, approving initial and amended zoning classifications of NR-2 and NR-3, with overlay, on approximately 92.06 acres of land generally located on the east side of East Sherman Drive (FM 428), approximately 1,465 feet north of Hartlee Field Road in the City of Denton, Denton County, Texas; adopting an amendment to the City's official zoning map; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing for severability; and establishing an effective date. The Planning and Zoning Commission recommended approval with overlay conditions (6-0). (Z18-0011, Agave Ranch,Julie Wyatt) C. Z18-0025d Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending Ordinance 2014-075 to remove one specific overlay restriction on approximately 8.627 acres of land zoned Neighborhood Residential Mixed Use (NRMU) District, generally located on the north side of East Ryan Road, approximately 850 feet west of Teasley Lane, in the city of Denton, Denton County, Texas; adopting an amendment to the City's official zoning map; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, providing for severability; and establishing an effective date. The Planning and Zoning Commission recommended approval of the request(6-0). (Z18-0025,Hunters Creek,Julie Wyatt) D. 519-0004d Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, approving a Specific Use Permit to allow for a multi-family residential use on an approximately 8.627-acre site, generally located on the north side of East Ryan road, approximately 850 feet west of Teasley Lane, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of$2,000.00 for violations thereof; providing for severability; and establishing an effective date.. The Planning and Zoning Page g Printed on 71512019 90 City Council Meeting Agenda July 16, 2019 Commission recommended approval of the request (6-0). (S19-0004, Hunters Creek, Julie Wyatt) E. S19-0002a Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, approving a Specific Use Permit to allow for a multi-family residential use on approximately 15.466 acres of land zoned Commercial Mixed Use General (CM-G) District, generally located on the north side of East McKinney Street, approximately 1,130 feet east of North Loop 288 in the City of Denton, Denton County, Texas; adopting an amendment to the City's official zoning map; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, providing for severability and an effective date. The Planning and Zoning Commission recommended approval of the request(6-0). (S19-0002,Forest Crossing,Julie Wyatt) 7. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting topics,above posted. 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 AND COUNCIL CHAMBERS ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. Page 9 Printed on 71512019 91 Future Work Session Items 7/5/2019 Meeting Date Currently Slated Work Session Items 15-July Lunch Gas Well Setback and Distance Study Gas Well Notification Disclosure Requirements 2nd Preliminary Budget Discussion/ Departmental Pecan Creek Impacts of 2019 State Presentations including 16-Jul Broadband Charity Care Legislation Board of Ethics DIVE 2019 DDC Update and Denton Police Work Session Strategy Departmental Budget 23-Jul Status Department Overview ISession Presentations lAudit Work Plan 1-Aug (Occurs on a Thursday) Budget Workshop/2019 Recommendation from Bond Advisory Committee/Bond Funded Facilities 5-Aug Lunch Joint DISD/City Council Luncheon Economic Development Corridor Utility Street Cuts Tiny Home Plan/Reinvestment Pay-As-You-Go Outdoor Music Venues 6-Aug Audit(IA) Development Grant Program Overview and Noise Ordinance Procurement Audit 13-Aug Atmos Energy Update Rayzor Ranch PID (IA) P-Card Audit(IA) Chamber Contract Manufactured Home Signage and Design Credit Collections Financial Risk 20-Aug Standards Policy DCTA Update Mosley Road Landfill Disclosure Development Services Construction Code Inspection Program Council&Committee 27-Aug Certified Mailings Review Update Real Estate Policy Rules of Procedure 9-Sep Joint EDPB/City Council Luncheon Non-Profit Commercial Food Employee Ethics Development Fee 10-Sep Diversion(September) Policy Municipal Broadband City Hall West Grant Program Affordable Housing/ City Facility Naming Accounts Payable Housing Assistance Scooter Share Policy Audit(IA) Date TBD Accounts Payable Right of Way Police Overtime(IA) Audit(IA) Ordinance Follow-up Group Home Code Waste Reduction Sobering Centers Amendment Strategies Roadway Quality Purchasing Manual Mews Streets Audit(IA) Update Top priorities from Top Priorities from 3/4 Work Session 14/23 Work Session 92 Street Closures Report Week of July 8-14,2019 NIUING ('IT`S' For general inquiries and questions,please contact the Project Management Office at(940)349-8989 (T The Construction Projects Report is updated weekly and reflects most City planned construction projects that impact traffic DENTON for a minimum of 5 days.Construction projects not listed on this report may not meet this criteria,or are not a City of Denton managed improvement or construction project. Date of Date of Other Department Updated Information/ Street/Intersection From To Construction Completion Brief Description of Construction I Department Letters Communication Contact: Notes CURRENT PROJECTS See Yellow Highlighted for Ma or Closures Mayhill Project Bridge Website& Part of Mayhill Rd.Widening Blagg Rd. Mayhill Geesling 3118119 10/31119 (Temporary Street Closure) Engineering Nextdoor (940)208-4318 Capital Project Notification Bonnie Brae St. Roselawn North of 7/1/17 10/1/19 Street Widening Engineering 6/14/18 (940)349-8910 Part of Bonnie Brae Ph. Vintage (No Street Closures) Capital Project Water Main Replacement Part of North South Water Nextdoor Bonnie Brae St. Highland Park Willowwood 5/13/19 7/19/19 North South Water Main Ph.II Engineering Website, (940)349-8910 Main Ph.II Capital Project Temporary Street Closure) Notification (Bonnie Brae from Roselawn ( to 135E); Part of Bonnie Brae Ph.IV Roundabout Capital Project(135E to Bonnie Brae St. Intersection of Scripture 6/13/19 8/31/19 Bonnie Brae Ph.IV Engineering 5/25/19 Website,Nextdoor Notification (940)349-8910 Scripture);Overall (Intersection Closure) intersection completion is 11/13/19 Brinker Loop 288 Quail Creek 7/8/19 7/29/19 Storm Drain Demolition(Temporary Drainage (940)391-6299 New Project Lane Closure) Bushey St. Morse Wilson 7/8/19 7/15/19 Street Improvements Streets (940)349-7160 New Project (Temporary Street Closure) Curb,Gutter,and Base Failure Repair Cordell St. Fulton Alice 7/1/19 8/2/19 (Temporary Lane Closure;Street will Streets 6/20/19 (940)349-7160 open after 5 pm) Eagle Dr. Elm Carroll 1/31/19 7/9/19 Eagle Drainage Improvements Engineering Website (940)268-9726 Part of Eagle Dr.Dainage (Temporary Street Closure) Capital Project Wastewater and Water Main Northwood Replacement Wastewater Edgewood PI. Crestwood 5/9/19 7/16/19 5/2/19 (940)349-7300 Terrace (Temporary,Intermittent Road and Water Closure,Reopen at 6 pm each day) 93 Date of Date of Other Department Updated Information/ Street/Intersection From To Construction Completion Brief Description of Construction Department Letters Communication Contact: Notes Street Reconstruction Egan St. Lovell Malone 6/17/19 9/20/19 (Full Street Closure;Reopen at 5 pm Streets 6/11/19 (940)349-7160 daily) Sidewalk Repair Glenn Falls Ln. Blue Sky Lane Cul de Sac 7/1/19 8/2/19 (Temporary Lane Closure,Street will Streets 6/21/19 (940)349-7160 open after 5 pm) Greenwood Dr. Intersection of Robin Wood 7/8/19 7/19/19 Valley Gutter Installation Streets (940)349-7160 New Project (Street Closure) Water Main Replacement Part of Hercules Water Hercules Ln. Sherman Stuart 3/25/19 8/6/19 Water 3/4/19 (940)349-7167 (Temporary Lane Closure) Project Wesbsite, Hickory St. Ave B Fry 6/12/19 8/3/19 Drainage and Street Improvements Streets 5/30/19 Nextdoor (940)349-7160 Street Repairs Hickroy from Fry follow on (Street Closure) to Carroll Notification Drainage and Street Improvements Wesbsite, Hickory St. Intersection of Fry 6/12/19 8/3/19 (Street Closure) Wastewater 5/30/19 Nextdoor (940)349-7300 Notification Highland St. Carroll IOOF 5/20/19 8/1/19 Highland Street Fence Parks Website (940)349-7464 (Intermittent Closures) Street Reconstruction Highview Cir. Forrest Ridge Forrest Ridge 6/10/19 10/28/19 (Full Street Closure;Reopen at 6 pm Streets 5/6/19 (940)349-7160 daily) Street and Drainage Improvements Part of Magnolia Drainage Hinkle Dr. US 380 Headlee 5/23/19 9/1/19 Magnolia Drainage Ph.II Engineering 11/13/18 (940)349-8910 Capital Project(Hinkle from (Street Closure) University to Windsor and Windsor from Hinkle to Elm) Street and Drainage Improvements Part of Magnolia Drainage Hinkle Rd. Headlee Windosr 7/3/19 9/1/19 Magnolia Drainage Ph.II Engineering Capital Project(Hinkle from (Street Closure) University to Windsor and Windsor from Hinkle to Elm) Huntington Dr. Hercules Sun Valley 6/17/19 8/6/19 (Temporary Lane Closure)Water Main Replacement Water 3/24/19 (940)349-7167 Part of Hercules Water Project Water Main Replacement Johnson St. E.Collins E.Daugherty 5/29/19 7/15/19 (Temporary Street Closure,will open Water 5/6/10 (940)349-7167 at 6:00 pm daily) Street Resurfacing,Curb and Gutter Kendo h Ln. Underwood Willowwood 6 11 19 7 24 19 Website,Nextdoor p / / / / (Temporary Street Closure;will reopen Streets 5/6/19 Notification (940)349-7160 at end of each day) 94 Date of Date of Other Department Updated Information/ Street/Intersection From To Construction Completion Brief Description of Construction Department Letters Communication Contact: Notes Wastewater Main Replacement KerleySt. Duncan Shad Oaks 4 25 19 8 17 19 Website,Nextdoor y / / / / (Temporary Street Closure, will reopen Wastewater Notification (940)349-7300 at end of each work day) Kings Row Yellowstone Sherman 5/6/19 7/14/19 Street Reconstruction Streets 12/7/18 (940)349-7160 (Temporary Lane Closure) Kings Row Yellowstone Stuart 5/29/19 7/14/19 Street Reconstruction Streets 4/9/19 Website,Nextdoor (940)349-7160 (Temporary Lane Closure) Notification Lipizzan Dr. Tennessee Rocky Mountain 7/8/19 8/2/19 Street Panel/Sidewalk Repair Streets (940)349-7160 New Project (Temporary Lane Closure) Locust St. Collins Daugherty 6/13/19 7/13/19 Locust Substation Construction DME (940)349-7669 (Temporary,Intermittent Closures) Mayhill Rd. US 380 Edwards 9 1 17 2 1 20 Street Widening Engineering 1 3 18, 1 24 18 Door Hangers Part of Mayhill Rd.Widening y / / / / g g / / / / g (940)208-4318 (Temporary Lane Closures) Capital Project Storm Drain Installation and E.McKinney St. Grissom S.Fork 3/11/19 12/1/19 Street Widening Engineering 3/7/19 (940)349-8910 Part of McKinney Rd. (Temporary,Intermittent Closures) Widening Capital Project Mills Rd. Mayhill Cunningham 6/3/19 8/1/19 Storm Drain Inlet and Repave Engineering 5/15/19 Website,Nextdoor Part of Mayhill Rd.Widening (Temporary Street Closure) Notificati (940)208-4318 on Capital Project Eagle Drainage Improvements Part of Eagle Dr.Drainage Myrtle St. Eagle Maple 1/31/19 7/9/19 Engineering 8/21/18 Contacted DCTA (940)349-8910 (Street Closure) Capital Project Wastewater and Water Main Replacement Wastewater Part of Northwood Terrace Cul de sac Edgewood Place 5/9/19 7/16/19 (Temporary,Intermittent Road and water 5/2/19 (940)349-7300 Northwood/Edgewood Closure;Reopen at 6 pm each day) Project Oak St. Intersection of Jagoe 7/9/19 7/12/19 Signal Improvements Traffic (940)349 7486 New Project (Temporary Lane Closures) Sheraton Rd. Hercules 350 ft north 6/17/19 8/6/19 Water Main Replacement Water 3/24/19 (940)349-7167 Part of Hercules Water (Temporary Lane Closure) Project Sherman Dr. Monterey Stuart 5/7/19 8/16/19 Wastewater Main ReplacementWastewater Website (940)349-7167 (Temporary Lane Closure) Sherman Dr. Intersection of Windsor 7/12/19 8/2/19 Wastewater Main ReplacementWastewater (940)349-7167 New Project (Street Closure) Street Reconstruction CM Nextdoor Stuart Rd. Long Keystone 1/30/19 7/30/19 (gq0)231-9963 (Street Closure) Construction Notification 95 Date of Date of Other Department Updated Information/ Street/Intersection From To Construction Completion Brief Description of Construction Department Letters Communication Contact: Notes Sweetgum Dr. Daisy Lantana 6/24/19 8/5/19 Street Panel/Sidewalk Repair Streets 6/12/19 (940)349-7160 (Temporary Lane Closure) Timber Ridge Cir. Intersection of Fox Hollow 7/1/19 7/12/19 Valley Gutter Installation Streets 6/21/19 (940)349-7160 (Street Closure) 1200 ft west of 1200 ft east of Street Repair Part of Mayhill Rd.Widening University Dr.(US 380) Mayhill Mayhill 6/3/19 7/12/19 (Temporary,Intermittent Lane Engineering Website (940)349-8910 Capital Project Closures) Street Widening Ft.Worth Dr.(US 377) IH 35E 0.26 M south of 12/3/18 12/12/20 (Temporary Lane Closures during non- TxDOT Public Meeting FM (940)387-1414 1830 peak traffic) 9/25/2018 10/8 Atmos Utility Relocation Wainwright St. Sycamore Bell 6/24/19 7/24/19 (Temporary,Intermittent Street Atmos 6/20/2019 Closure) Drainage Improvements Part of Pec 4 Ph.I&II Capital Wainwright St. Prairie Highland 7/1/19 8/1/19 Pec 4 Ph.I&II Engineering 6/20/2019 (940)268-9726 Project (Street Closure) Yellowstone PI. Hercules 350 ft north 6/12/19 8/6/19 (Temporary Lane Closure)Water Main Replacement Water 3/24/2019 (940)349-7167 Part of Hercules Water Project Sidewalk Repair Yellowstone PI. Kings Row Sun Valley 7/1/19 7/26/19 (Temporary Lane Closure;Reopen at 5 Streets (940)349-7160 pm daily) 96 Date of Date of Other Department Updated Information/ Street/Intersection From To Construction Completion Brief Description of Construction Department Letters Communication Contact: Notes COMPLETED PROJECTS Acorn Bend Rd. Field Bend Cule de Sac 6/3/19 6/28/19 Street Panel and Sidewalk Repair Streets 5/14/19 (940)349-7160 (Temporary Lane Closures) Bell Ave. Intersection of McKinney5 28 19 7 5 19 Intersection Improvements En 2 22 19 Website&Letters 940 349-8910 New Completion;Signal / / / / (No Street Closure) Engineering / / ( ) work to follow Bonnie Brae St. University Linden 6/3/19 6/14/19 Private Development Engineering Website (940)349-8910 (Temporary Lane Closure) Daisy Dr. Boxwood Sweet Gum 4/29/19 6/19/19 Concrete Panel Repair Streets 4/15/19 (940)349-7160 (One Way Lane Closure) Dallas Dr. Intersection of Teasley 11/12/18 6/28/19 Turn Lane Upgrade Streets 11/5/18 (940)349-7160 (Temporary Lane Closure) Heritage Tr. South of Linden 3/28/19 6/18/19 Turn Lane Installation PWI Website (940)268-9842 University (One lane both directions closed) Mercedes Rd. Oakwood Willowwood 5/15/19 6/12/19 Street Construction Streets 4/23/19 (940)349-7160 (Street Closure) Paco Tr. Ruddell Cul de sac 5/6/19 6/11/19 Sidewalk Repair Streets 4/26/19 (940)349-7167 (Lane Closure) Peak St. Greenlee Fannin 5/15/19 6/11/19 Street Construction Streets 4/23/19 (940)349-7160 (Street Closure) Pennsylvania Dr. Intersection of Hollyhill 5/28/18 6/19/19 Valley Gutter Installation Streets 5/15/19 (940)349-7160 (Temporary Lane Closures) 97 Date of Date of Other Department Updated Information/ Street/Intersection From To Construction Completion Brief Description of Construction Department Letters Communication Contact: Notes UPCOMING PROJECTS City of FM2181 Denton/Corinth Lillian Miller TBD TBD Street Widening TxDOT (940)-387-1414 TxDOTProject-currently on hold City limits Hickory Creek Rd. Teasley Riverpass TBD TBD Street Widening Engineering 11/26/18 (940)349-8910 (Temporary Lane Closures) 135E northbound service 500 ft west of Wastewater Improvements located 9/12/19 10/23/19 Wastewater (940)349-7300 road Bonnie Brae (Temporary Lane Closure) Kirby Dr. San Felipe Memorial 7/15/19 8/16/19 Street Panel/Sidewalk Repair Streets (940)349-7160 (Temporary Lane Closure) Massey St. Hwy 377 200'West TBD TBD Street Boring TxDot Email Notifications (940)387-1414 (Street Closure) Water Main Replacement,Street Mistywood Ln. Woodhaven Jamestown 8/7/19 12/4/19 Repairs Water 12/17/18 (940)349-7167 Part of Mistywood Water Project (Intermittent Street Closure) Mayhill Street Widening Morse St. Intersection of Mayhill 7/15/19 7 29 19 Part of Mayhill ProRd.ject Widening y / / (Mayhill lanes open;No access to Engineering (940)349-8910 Morse from Mayhill) Capital Project Water Improvements Wastewater and Streets to Orr St. Bolivar Locust 7/16/19 8/12/19 (Temporay Lane Closure;Reopen at Water (940)349-7167 follow end of each day) Wastewater Improvements Orr St. Elm Locust 8/14/19 9/11/19 (Temporary Lane Closure;Reopen at Wastewater (940)349-7300 Streets to follow end of each day) Parkway St. Carroll Denton 7/15/19 8/16/19 Sidewalk Repair Streets (940)349-7160 (Temporary Lane Closure) Drainage Improvements Part of Pec 4 Ph.I&II Capital Prairie St. Bell Locust TBD TBD Pec 4 Ph.I&II Engineering (940)268-9726 Project (Street Closure) Drainage and Roadway Construction Roselawn Dr. Bonnie Brae Kansas City Southern RR TBD TBD Bonnie Brae Phase 1 Engineering N/A (940)349-8910 (One Lane traffic control) Rockwood Ln. Royal Mistywood 10/28/19 TBD Street Repairs Streets 11/23/18 Door Hangers (940)349-7160 (Road Closure) Rockwood Ln. Royal Mistywood 8/7/19 12/4/19 Water Improvements Water (940)349-7167 Part of Mistywood Water (Temporary Lane Closure) Project 98 Date of Date of Other Department Updated Information/ Street/Intersection From To Construction Completion Brief Description of Construction Department Letters Communication Contact: Notes Royal Ln. Royal Rockwood 10/28/19 TBD Street Reconstruction Streets 11/23/18 (940)349-7160 (Road Closure) Royal Ln. Mistywood Rockwood 8/7/19 12/4/19 Water Improvements Water (940)349-7167 Part of Mistywood Water (Temporary lane Closure) Project Wastewater Improvements Sandy Creek Dr. Angelina Bend Angelina Bend 7/17/19 8/13/19 (Temporary Lane Closure, Will reopen Wastewater (940)349-7300 at 6 pm each day) Base Repairs Meet with business Crews will move here after Shady Oaks Dr. Teasley Woodrow TBD TBD (Temporary Lane Closure) owners Streets Electronic Signs (940)349-7160 work on Kerley St.is complete Smith St. Johnson Dallas 8/19/19 9/17/19 Wastewater ImprovementsWastewater (940)349-7300 (Temporary Lane Closure) Thomas St. Panhandle Oak TBD TBD Streets Construction Streets (940)349-7160 Part of 2019 Street Bundle Vintage Blvd. US 377 135W 10/1/19 10/1/21 Street Widening Engineering (940)349-8910 Bonnie Brae Phase 2 Wayne St. Boyd Mozingo 8/13/19 9/17/19 Water Improvements Water (940)349-7167 (Temporary Lane Closure) William St. Oak Hickory 7/15/19 8/12/19 Street Improvements Streets (940)349-7160 (Temporary Street Closure) Wintertreek Dr. Kappwood Country Club 7/15/19 8/16/19 Concrete Street Panel Repair Streets (940)349-7146 New Project (Temporary Lane Closures) 99