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January 31, 2012 Agenda
ANNUAL PLANNING SESSION AGENDA CITY OF DENTON CITY COUNCIL January 31, 2012 After determining in Open Session that a quorum is present, the City Council of the City of Denton, Texas will convene in an Annual Planning Session on Tuesday, January 31, 2012, at 8:30 a.m. in the Facilities Management Department Training Room at 869 S. Woodrow Lane, Denton, Texas at which the following will be considered: 1. Closed Session A.Consultation with Attorneys under Texas Government Code Section 551.071. 1. Consult with and provide direction to City’s attorneys regarding legal issues and strategies associated with Phase I and proposed Phase II Gas Well Ordinance regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including Constitutional limitations, statutory limitations upon municipal regulatory authority, moratorium on drilling and production, and statutory preemption of municipal regulatory authority. 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, as set forth below. Following the completion of the Closed Session, the Council will convene in a Planning Session to discuss the following: ITEMS FOR DISCUSSION: 1.Receive a report, hold a discussion and give staff direction concerning the long and short term goals of the city including, but not limited to, the following: a.Gas Wells b.Future Bond Programs c.Comprehensive Plan d.City Council Meeting Procedures e.Citywide Strategic Plan f.DME Infrastructure Planning and Pole Attachment Policy g.Regional Transportation Issues 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 __________, 2012, at ________o’clock. (a.m.)(p.m.) __________________________________________ City Secretary NOTE: THE FACILITIES MANAGEMENT DEPARTMENT TRAINING ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRE IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY’S OFFICE AT (940) 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. AGENDA INFORMATION SHEET AGENDA DATE: January 31, 2012 DEPARTMENT: Planning & Development ACM: Fred Greene SUBJECT and Gas Well Inspections Division Update Receive a report, hold a discussion and give staff direction regarding the Task Force Division (GWI). BACKGROUND Gas Well Task Force Due to the complex nature of the issues germane to the gas well Phase II ordinance revisions, staff determined that it was in the best interest of all stakeholders (including our citizens, neighborhoods, the industry, and the City) to solicit the input of individuals, external to the organization, with specialized knowledge in the environmental, gas, engineering, and legal industries. Staff also determined that it was crucial to capture the concerns and experiences of our citizens prior to completing the Phase II Ordinance. As such, with the concurrence of the City Council, the City Manager appointed a Gas Well Task Force. The preliminary objectives of the Task Force were identified as: (1) assist the City draft an ordinance that is fair, defensible, appropriate, and does not risk taxpayer resources, and (2) represent the interests of all stakeholders by soliciting public input. The ultimate goal is to implement reasonable regulations to protect the health, safety, and general welfare of the public and to accomplish the orderly and practical development of mineral resources. To this end, the Task Force is comprised of the following personnel: Voting Members: Don Butler , New Tech Global Regulatory Affairs (an oil and gas engineering firm), industry and applicant perspective; Dr. Ed Ireland , Executive Director, Barnett Shale Energy Education Council (a non-profit industry organization); Dr. Tom La Point , UNT Professor, environmental research; Vicki Oppenheim , Founder and Principal of Green Leaf Environmental Planning (an environmental planning and sustainability firm); John Siegmund, Retired VP, Wells Fargo Advisors (former petroleum engineer); Non-voting Members Darren Groth, Gas Well Administrator; Dr. Ken Banks, Director of Environmental Services and Sustainability; Advisory Members Dr. Kenneth Tramm, Modern Geosciences; Terry Morgan , Gas Well Legal Planning Issues; Terry Cross , Oil and Gas Drilling Legal Issues; Martin Rochelle(and David Klein) , Gas Well Legal Environmental Issues; and Additional City Staff , from various departments, including: Mark Cunningham , Director of Planning and Development; o City Legal staff; and o Other staff, as deemed necessary. o The citizen representatives of the Gas Well Task Force (Vicki Oppenheim, Tom La Point, and John Siegmund) with the assistance of City Staff, facilitated the first public meeting on August 25, 2011. On October 27, 2011, City Staff and the all members of the Gas Well Advisory Task Force met and comments and input received during the August 25, 2011 Public Meeting, as identified in Exhibit 3; (4) potential topics to be included in the Phase II ordinance update; and (5) the process by which the ordinance would be written. The University of North Texas Department of Philosophy and Religion Studies Professor, Dr. Adam Briggle, and the Denton Stakeholders Drilling Advisory Group (DAG) also held a series of gas drilling related meetings. Via panel discussions, DAG presented pertinent drilling and production information to the public. The DAG process assisted the City by serving as an additional forum for capturing public input that will greatly contribute to the Phase II revisions. City Staff met with Dr. Briggle on November 10, 2011 to share and discuss information and core principles that should be considered during the Phase II draft. Regular Gas Well Task Force meetings reconvened at the conclusion of the DAG series of meetings. On December 8, 2011, the City hosted a second public meeting at the Denton Civic Center in preparation for gas well ordinance revisions. The public was invited to provide input to the seven members of the active Task Force, the voting and non-voting members. In addition, on December 20, 2011, the Task Force met to devise a list of Focus Area topics the voting Task Force members hoped to broadly address during this process. The voting results of the December 20 meeting are included in the back-up materials. The Gas Well Ordinance Flow Chart is also included in the back-up and provides an outline for the process City staff will follow to revise the drilling and production ordinance. A schedule for weekly meetings was also approved during the December 20 meeting. Since the Task Force approved 10 Focus Area topics, they recommended holding a series of 10 public meetings to address a separate topic each week. Weekly meetings were scheduled beginning on Monday, January 9, 2012 to address each Focus Area. During the weekly meetings, the Task Force members present various action items included in the broad Focus Area, hold a discussion on each action item, and vote to forward as a Task Force recommendation. The Task Force has only held two (2) weekly meetings to date because of the observance of the January 16 City holiday. The voting results for the January 9 meeting are included in the back-up material and January 23 meeting results are posted online. The City of Denton will host additional Gas Well Task Force meetings on upcoming Monday evenings. The meeting dates are listed below. Each meeting will begin at 6 p.m. and the meetings are open to the public. The meetings are held in the City Council Chamber at City Hall. Public comment cards are distributed during each meeting to gather public input. Additional 2012 Task Force meeting dates: January 30; February 6; February 13; February 20; February 27; March 5; March 12; March 19; and March 26. Meeting minutes, presentations, comment cards, and additional resources for each meeting http://www.cityofdenton.com/gaswellinspections. Gas Well Inspections Update Annual Inspection Program Updates Initial efforts to map the wells within the City and ETJ relied on data obtained by the Railroad Commission of Texas (RRC). This data merely identified a total number of permits; however, it did not include all active wells and counted wells that were permitted and never drilled, plugged wells, and cancelled locations. To garner more accurate figures of the total number of wells GWI Division conducts site inspections of each facility. As of December 20, 2011, this Division inspected and verified the existence of two hundred and fifty seven (257) active wells within the City, and one hundred and seventy four (174) active wells within the The inaugural 2011 annual inspection invoices, however, were originally sent to drilling operators based on the RRC data. The annual inspection fee amount is $850 for wells within the City Limits, and $580 for wells within the Division I ETJ. However, in 2011, the City billed operators only half of the respective fee amounts per well due to the fact that the City only had the capability to conduct one of the two annual inspections. As such, the City originally mailed invoices totaling $165,700 and as of January 12, 2012, we have received approximately $144,335 in remittance. The outstanding balance is approximately 4.5 percent of the total invoiced. The balance accounts for payments both remitted by an operator for a respective well and wells voided due to multiple factors such as plugged well, well permitted and not drilled, or permitted dry holes. The breakdown of 2011 annual inspection payments is included for review in the agenda back-up materials. Gas Well Permitting Activities Prior to the August 4, 2010 effective date of the Ordinance 2010-196, the City issued one hundred and eighty six (186) gas well permits. Since August 4, 2010, twenty one (21) drilling permits have been issued for new wells and all issued permits resulted in new drilled wells. To gauge the level of permitting activity, the graph attached in the agenda back-up materials depicts the number of RRC issued permits by year. The graph illustrates a drastic decline in the number of permits issued from 2010 to 2011. While the 2010 total was the fourth highest in the past decade, the 2011 figure was the lowest single year total since 2000. Some speculation of the decline in permitting has been attributed to the decline in natural gas prices. The table below shows the yearly average natural gas price per million British Thermal Unit (MMBtu), approximately one thousand (1,000) cubic feet of natural gas (Mcf): 998.12. The low prices recorded at the end of 2011 and recently were the lowest since 2002. Based on this trend, the number of newly issued RRC permits is at a low level and not anticipated to grow during 2012. Average U.S. Natural Gas Prices Price per MMBtu 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $3.68 $4.00 $2.95 $4.88 $5.46 $7.33 $6.39 $6.25 $7.97 $3.67 2010 1/11 5/11 10/11 1/12 $4.48 $4.08 $4.12 $3.62 $2.59 Source: U.S. Energy Information Administration (EIA) This data is used by the GWI division to anticipate the number of gas wells that may be drilled in the future. process. Inspection Summary The GWI division began performing drilling and production site inspections in April 2011. For the first three months, April to June, the division performed well identification inspections to field verify the previously obtained RRC data. In July 2011, GWI inspectors began compliance checks of the sites. The attached 2011 Inspection Summary illustrates the monthly inspection totals and the number of Notices of Violation (NOV) sent to the operators of these facilities. As the request of City Council, the 2011 Inspection Summary also categorizes each violation by topic and tallies the number of each respective violation. The December summary will be the reporting format as we continue tracking inspections and violations in 2012 because of the similarity in the field forms used by each inspector. In addition, in December, the GWI division issued one citation for a discharge of wastewater from a pipeline, which was found to be in violation of Denton Development Code Subchapter 35.22.5.A.2.f. CONCLUSION Staff is actively involved in Force members to conclude discussions by the last scheduled public meeting on March 26. The recommendations of the Task Force will be compiled and considered with multiple other sources, e.g., the DAG report, citizen input submitted during the public meetings, state and federal governmental publications, and staff research and knowledge, to draft ordinance revision language. In addition, the Gas Well Inspections division will continue jurisdiction. EXHIBITS Exhibit 1 Gas Well Task Force Voting Summary Exhibit 2 Gas Well Ordinance Flow Chart Exhibit 3 Annual Inspection Invoice Summary Exhibit 4 RRC Permits Issued Each Year Exhibit 5 GWI 2011 Inspection Summary Prepared by: Mark A. Cunningham, AICP, CPM Planning and Development Department Director Respectfully submitted: Fred Greene Assistant City Manager EXHIBIT 1 AIRQUALITY OutlineSummaryofJanuary9,2012GasWellTaskForceMeeting ACTIONITEMVOTINGRESULTS 5Votingmembers:DonButler(DB),JohnSiegmund(JS),VickiOppenheim(VO),TomLaPoint(TL),andEdIreland(EI) 1.Noelectricitygenerationonsite a.Approved,41vote b.AYEDB,JS,VO,andTL c.NAYEI 2.Vaporrecoveryunits a.Approved,50vote b.AYEDB,JS,VO,TL,andEI c.NAYnone 3.Greencompletions te a.Approved,32vo b.AYEDB,VO,andTL c.NAYJSandEI 4.Bestpracticesforgasdrillingandproduction a.Approved,50vote b.AYEDB,JS,VO,TL,andEI c.NAYnone 5.Airmonitoringasacompliancetoolthroughamonitoringprogram a.Approved,50vote b.AYEDB,JS,VO,TL,andEI c.NAYnone 6.Referenceotherapplicablelocal,state,andfederalrules,laws,andregulations a.Approved,50vote b.AYEDB,JS,VO,TL,andEI c.NAYnone 7.Incorporatecompliancetimetables a.Approved,50vote b.AYEDB,JS,VO,TL,andEI c.NAYnone Page 1 of 2 EXHIBIT 1 ACTIONITEMSSTILLPENDINGVOTE (ListssummarizedbyCitystaffunderTaskC©-;xsuggestionatconclusionof1/9meeting) RemainingItemsfromDAGList 1.4Appropriatevalvesandfittings 1.5Nocompressorstations,collectionstations,ortankfarmsinCity 1.6Airqualityanalysisandmonitoring 1.7Outfitregulatorswithappropriateequipment 1.8Properactionsforregulatoryinfractionsregardingemissions 1.9Pipelinepressuremonitoringandshutoffvalves z-zxList 1.Baselineanalysisforair,water,soil,andtraffic 2.Summarizeimpactpathways 3.EnvironmentalImpactAssessment(EIA)foreachSUPsiteandTrafficImpactAnalysis(TIA) required 4.Ongoingairqualitymonitoring 5.EDFrecommendedemissionreductionmeasures 6.Updatestoordinancedocument xList 1.BestAvailableTechnology 2.MonitorVOCemissions 3.FewerdrillsitesinCityandETJ 4.Pipelinepressuremonitoringandshutoffvalves 5.Vaporrecoveryunits 6.Eliminateflaring Page 2 of 2 EXHIBIT 2 EXHIBIT 3 AnnualInspectionSummary 2011(asof1/12/12) OriginalInvoice$165,700 AdditionalInvoices$10,050 OutstandingBalance$8,020 AtmounPida$144335, AtPid$144335 VoidAmount$23,395 PercentageOutstanding4.56% 2012(projected) 2012(projected) CODwellcount266 ETJDivisionIwellcount185 CODInvoiceAmount$226,100 ETJDivisionIInvoice$107,300 TOTALINVOICEAMOUNT$333,400 TOTALINVOICEAMOUNT$333,400 2012Collection If2011Rate$316,730 ercent$300,060 If90p p If85percent$283,390 If80percent$266,720 If75percent$250,050 1/23/2012 EXHIBIT 5 GasWellInspectionsDivision 2011InspectionSummary AprilJune* NumberofViolations0 NumberofInspections590 *WellIDinspectionsonly July&August NumberofViolations671 NumberofInspections217 September p NumberofViolations272 NumberofInspections143 October NumberofViolations347 umeronspecons NbfIti179 NbfIti179 November NumberofViolations225 NumberofInspections176 December NumberofViolations829 NumberofInspections287 SUMMARY TotalViolations2344 TotalInspections1592 1/23/2012 EXHIBIT 5 15operatorsthatreceivedinspectionreport1Citationissued 287siteinspectionscompletedDecember2011 SIGNAGE:14 Reflectiveletteringorproperlighting 4 LETTERS:2"4 OperatingCompanyName 4 SiteAddress 20 WellName 4 RRCPermitandWellAPINumbers 27 Emergency911Number 87 Company24hourContactPhoneNumber 14 "DANGERNOSMOKINGALLOWED"(4"Letters) 4 STREETS:0 Streetsfreeofdirtanddebrisfromsiteoperations 7 ROWappearstobeingoodconditionandnotdamaged 37 FENCING:0 Secureandlockedgate 30 8footmasonrywallinstalled,ifrequired 0 Securityfencingor24houronsitesupervision 17 EQUIPMENT:0 Paintedandmaintained 87 Layoutasspecifiedperpermit,siteplan,orplat 0 Permanentequipmentlessthan8feetinheight,asapplicable 9 ELECTRICALLINES:0 Safedistancefromsiteandequipment 0 Locatedcompatibletosurroundingareasorsubdivision 0 PIPELINES:0 Adequatemarkersforindentifiedlocations 7 PITS:(Whereapplicable)0 Liner(s)&fencinginplace 0 Liner(s)freeofpuncturesorotherdamage 1 MISCELLANEOUS:0 Erosioncontrolinplace 134 SecondarycontainmentinplaceSteelorConcretewithliner 10 Drippotsatalldisconnectpoints 30 Accessibleemergencyshutoffvalves 0 MSDSsheetsstoredonsite,asrequired 0 HAZMATManagementPlansonfilewithCity 0 Storagetanksequippedwithalevelcontroller 60 Lighteningarrestorsysteminstalledasrequired 84 SitelightingdoesnotaffectadjacentpropertiesorROW 0 Propertyfreeoftrash,debris,weeds/brush,poolsofliquid 134 Odors,fumes,dust,noise,andvibrationcontrolledormitigated 0 Total 829 AGENDA INFORMATION SHEET AGENDA DATE: January 31, 2012 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding future bond programs. BACKGROUND As discussed during the development of the FY 2011-12 Budget, the improvement of our street infrastructure is a major initiative for the City. The Strategic Plan approved by the City Council in April 2011 reinforces this concept in Key Focus Area 2: Public Infrastructure. Specifically, goals 2.1 and 2.5 of the Strategic Plan provide the following objectives related to street infrastructure: Objective 2.1.2 Develop a long-range strategy to transition street funding to achieve the OCI criteria. Objective 2.5.2 Develop and implement financing plans for identified infrastructure needs. As a result of this approach, the City significantly increased street maintenance funding from $2.8 to $3.5 million in FY 2011-12. Additionally, it is planned that this funding level will increase on an annual basis to $5.8 million by FY 2015-16. While this increase in funding is noteworthy, it is still significantly below the $10 million in annual funding that is needed for street maintenance. As a result, further enhancements to maintenance funding will also need to be considered in future budget cycles as well. In addition to the street maintenance funding, the City also needs to provide a capital investment of approximately $4 million per year to reconstruct existing streets. As a result, staff is proposing the development of a $20 million street infrastructure bond program to address this need. The program assumes no tax rate increase, and it is expected that voters would be requested to approve the program in the November 2012 election. Exhibit 1 provides a brief summary of future bond programs and a calendar of events. Additionally, an initial draft of proposed bond program projects is shown as Exhibit 2. The purpose of this discussion is to 1) review street maintenance and capital funding needs, 2) present key elements of proposed bond issuances in FY 2011-12 and beyond, 3) provide an overview of the planned voter approved bond program, and 4) discuss the proposed structure and Agenda Information Sheet January 31, 2012 Page 2 charge of an advisory committee for the 2012 bond election. The PowerPoint presentation attached as Exhibit 3 will be used to facilitate this discussion. EXHIBITS Exhibit 1: Future Bond Program Summary and Proposed Calendar of Events Exhibit 2: Draft Bond Program Summary by Street Exhibit 3: PowerPoint Presentation Respectfully submitted: Bryan Langley CFO and Director of Strategic Services EXHIBIT 1 Future Bond Program Summary In April 2012, a total of approximately $58.6 million in General Obligation Bonds (GOs) and Certificates of Obligation (COs) will be issued as follows: $3,997,800 in GOs for General Government projects Represents final issuance o related to 2005 bond program. $7,410,000 in COs for General Government projects. o $41,200,000 in COs for Utility System (Electric, Water and Wastewater) projects. o $5,978,187 in COs for Solid Waste Fund projects. o In 2012, there is also the potential of a Certificate of Obligation issuance associated with a proposed Conference Center. In November 2012, a $20 million Street Infrastructure Only voter approved GO Bond Program is proposed ($4 million sold each year over 5 years beginning in FY 2012-13). Developed in response to the Strategic Plan Objectives that were approved by the o City Council in April 2011. Objective 2.1.2 - Develop a long-range strategy to transition street funding o to achieve the OCI criteria. Objective 2.5.2 - Develop and implement financing plans for identified o infrastructure needs. Funding is intended to be used only for reconstruction of existing streets. o Designed to complement increase in street maintenance funding approved in FY o 2011-12 Budget. $20 million figure includes all costs for engineering, design, right-of-way o acquisition, signalization, drainage, and construction activities. Bond program Committee recommended to be no larger than 14 members (2 o appointments per City Council member). Analysis assumes no tax rate increase in GO Debt Service Fund. o Brae and Mayhill projects in FY 2013-14. An additional $40-50 million bond program is also tentatively planned for FY 2015-16. Approximately $20 million of this program will also be dedicated to street o reconstruction activities to meet the strategic objectives outlined above. The balance of the bond program will be determined at a later date according to community needs. o Future size and timing of additional GO bond election will be dependent on economic factors. EXHIBIT 1 2012 Bond Election Schedule January 31, 2012 City Council Retreat Discussion of Committee Structure and Bond Program Characteristics February 21 and March 5, 2012 Council appoints bond committee April 3, 2012 Council approves committee charge April 23, 2012 Kick-Off meeting of Citizens Advisory Committee April June 2012 Committee develops recommendations May 7, 2012 Meeting of Citizens Advisory Committee May 21, 2012 Meeting of Citizens Advisory Committee June 4, 2012 Meeting of Citizens Advisory Committee (if needed) June 6, 2012 Citizens Advisory Committee presents recommendation to the Planning and Zoning Commission June 19, 2012 Citizens Advisory Committee makes recommendation to City Council July 17, 2012 City Council holds additional discussion on bond election August 7, 2012 Council holds public hearing August November Committee educates public on bond program. August 14, 2012 * Council passes an ordinance calling for a bond election on November 6, 2012 (Election must be called no earlier than August 8 and no later than August 20) October 22, 2012 * Early voting begins November 2, 2012 * Early voting ends November 6, 2012 * Street Improvement Bond election held * Denotes legally required dates associated with a bond election. AGENDA INFORMATION SHEET AGENDA DATE: January 31, 2012 DEPARTMENT: Planning & Development ACM: Fred Greene SUBJECT Receive a report, hold a discussion, and give staff direction regarding the Comprehensive Plan work schedule and contract amount. BACKGROUND City staff and Wallace, Roberts, and Todd (WRT), the consultant selected to prepare an update to continued discussions on the project costs, phasing, and project tasks needed to complete this project within the agreed upon timeframe. Part of this effort to control project costs and provide project deliverables as agreed is the development of a work schedule. Attached for your review is a draft Gantt chart for the update to the Comprehensive Plan that will be finalized with the execution of the contract with the consultant. The schedule assumes a 21-month work schedule that would commence March 2012, but may extend to 24-months if additional public input is required. The chart includes all of the tasks noted for completion along with an approximate time frame for each task in the overall project schedule. The symbols noted at the end of certain tasks are defined project deliverables that must be submitted to the City. Also worth noting in the project schedule are activities where City Council participation or action is especially valued or required. Once the project has commenced, development of the update will progress through five (5) phases: Phase 1 Project Organization; Phase 2 Issues Existing Conditions; Phase 3 Framing the Vision; Phase 4 Comprehensive Plan Development; and Phase 5 Final Comprehensive Plan and Adoption. Each phase is designed to elicit the necessary data to assess the current conditions, develop a vision and goals, and identify strategies for achieving goals, plan preparation and adoption. Staff anticipates that City Council will be briefed quarterly on the progress of the update to the Comprehensive Plan. To update the City Council on the current contract negotiations, t the contract was $743,700 which staff renegotiated to $640,900. Further reductions in the contract produced the amount of $628,500 which is $115,200 less than originally bid. Each reduction was made to provide the greatest opportunity for public input and to take advantage of WRTs experience in community visioning, comprehensive planning, and sustainable development. Agenda Information Sheet January 31, 2012 Page 2 In the latest round of negotiations, the applicant responded that further reductions could be made by eliminating the third community meeting, shifting the data collection and assessment performed in Phase 2 to City staff, and eliminating the community survey entirely. Some of the initial cost cutting measures will be offset by utilizing the recently launched www.EngageDenton.com that will be used to receive citizen input however, staff is of the opinion that further reductions will have an effect on the overall quality of the update by not utilizing WRTs expertise in these areas. RECOMMENDATION Staff recommends that the City Council direct staff to adopt the work schedule as part of the final contract and finalize negotiations with WRT for an amount not to exceed $628,500. EXHIBIT 1.Gantt Chart Comprehensive Plan Update Draft Work Program AGENDA INFORMATION SHEET AGENDA DATE: January 31, 2012 DEPARTMENT: City Manager’s Office CM/DCM/ACM: George C. Campbell, City Manager SUBJECT: City Council Meeting Procedures – Public Hearings BACKGROUND: Currently the Mayor and Council follow the practice of holding public hearings (zoning cases) that follow the typical process outlined in the first attachment to this report titled EXISTING. This normal process provides that the staff essentially presents the zoning case and, in many cases, responds to Council’s questions regarding the case before the Mayor actually opens the Public Hearing. In some instances this process has resulted in the staff attempting to respond to questions that might more appropriately and accurately be answered by the applicant. It also creates an environment where Council Members may easily express or imply their position on the case prior to an opportunity for the public to express their opinion which is a primary purpose of the public hearing. Staff presentation of a zoning case also has a tendency to preclude the applicant’s opportunity to present their own case. The second attachment to this report titled PROPOSED suggests a modified process wherein the Mayor would immediately open the public hearing, staff would present certain factual information to begin the hearing, but the applicant would be permitted to present their zoning request to the council. The public would then be permitted to address the Council. This process will assure the public that their opinions were considered before conclusions are drawn and questions of both the council and the public can be addressed by either staff or the applicant. This issue is placed on the agenda in order that council can discuss the benefits of changes to the process and provide staff with direction. EXISTING Typical City Council Process Mayor reads caption A. City Manager introduces Staff for presentation B. Staff’s presentation of case C. Potential questioning of Staff by City Council Potential statements made by City Council Mayor opens public hearing D. Mayor asks if applicant present to speak before other individuals speak on issue Potential questioning of applicant by City Council Potential questioning of Staff by City Council Potential statements made by City Council Input provided by public Potential questioning of public by City Council Potential statements made by City Council Potential rebuttal by applicant Potential questioning of Staff and Applicant by City Council Potential statements made by City Council Mayor closes the public hearing E. nd City Council discussion, motion, 2 of the motion, discussion, vote F. PROPOSED Typical City Council Process Mayor reads caption, then opens public hearing A. City Manager introduces Staff for presentation B. Staff’s presentation of facts relative to the case C. Applicant’s presentation of the case D. Potential questioning of Applicant by City Council Input provided by public Potential questioning of public by City Council Potential rebuttal by Applicant Potential questioning of Staff and/or Applicant by City Council Mayor closes the public hearing E. nd City Council discussion, motion, 2 of the motion, discussion, vote F. AGENDA INFORMATION SHEET AGENDA DATE: January 31, 2012 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding 1) potential modifications to the City-wide strategic plan and 2) the development of a Strategic Plan Performance Report. BACKGROUND After many months of work by the City Council and staff, the City Council adopted its first Strategic Plan last year on April 5, 2011. The Strategic Plan is a product of the input generated from the 2008/2009 Citizen Survey, two City Council Planning Sessions, two Leadership Retreats, and a special appointed Strategic Planning Steering Committee. The Strategic Plan is intended to serve as a roadmap for achieving long-term goals and objectives that capture the CStrategic Plan adopted in April 2011 is attached as Exhibit 1. In October 2011, the staff level Strategic Planning Steering Committee reconvened to 1) consider potential modifications to the Strategic Plan, and 2) begin work on developing performance measures that are aligned with the Strategic Plan. After conducting a review of the Strategic Plan, staff does not recommend any changes at this time. Once performance measures are completely developed for each Key Focus Area (KFA), however, staff will likely recommend future adjustments to the Strategic Plan in order to more closely align performance measures with the goals and objectives identified. Staff has also began a second phase of the strategic planning process to more clearly link departmental functions to the strategic plan, define appropriate performance indicators, and develop systematic reporting mechanisms. In Exhibit 2, a draft Strategic Plan Performance Report is presented for your review to address the above mentioned objectives. It is contemplated that this report will be included in the Quarterly Financial Report that is published for public review. The first portion of the report is a brief narrative that describes the key elements of the Strategic Plan. In addition, a matrix is presented to depict which departments are responsible for implementing each of the KFAs outlined in the plan. While every department has some level of area of focus. Agenda Information Sheet January 31, 2012 Page 2 The second portion of the report is a Performance Dashboard for KFA 1: Organizational Excellence. This portion of the report links Key Performance Indicators (KPIs) by department to each goal presented for KFA 1. If the format and approach is approved by the City Council, staff will prepare a complete Performance Report that includes performance measures for all KFAs outlined in the Strategic Plan. The purpose of this discussion, therefore, is to solicit City Council feedback on possible changes to the Strategic Plan and the draft Performance Report. A PowerPoint presentation outlining this discussion is attached for review as Exhibit 3. EXHIBITS Exhibit 1: Strategic Plan approved by the City Council on April 5, 2011 Exhibit 2: Proposed Strategic Plan Performance Report Exhibit 3: PowerPoint Presentation Respectfully submitted: Bryan Langley CFO and Director of Strategic Services Exhibit 1 City of Denton Strategic Plan Adopted April 5, 2011 KFA 1: ORGANIZATIONAL EXCELLENCE Goal 1.1. Manage financial resources in a responsible manner. Objective 1.1.1. Utilize benchmarking, performance measurement, and progress eval improve operations. Objective 1.1.2. Develop and implement long-range strategic plans. Objective 1.1.3. Provide timely, accurate, and relevant financial information. Objective 1.1.4. Ensure adequate internal controls are in place to prevent waste,use. Objective 1.1.5. Manage enterprise funds to achieve financial self-sufficiency. Objective 1.1.6. Minimize fees and rates that are charged to our citizens and customers. Goal 1.2. Develop a high performance work force. Objective 1.2.1. Create succession and workforce management strategy to ensure organizational sustainability and continuity. Objective 1.2.2. Attract, retain, and motivate qualified and diverse staff to ensure consistent implementation of established vision. Objective 1.2.3. Establish a culture where employees feel valued and respected. Objective 1.2.4. Facilitate open inter- and intra-departmental communication and collaboration. Objective 1.2.5. Establish a culture of accountability at all levels of governanc Goal 1.3. Promote effective internal and external communication. Objective 1.3.1. Maintain on-going staff communication with City Council, Boards, and Commiss. Objective 1.3.2. Utilize both traditional and non-traditional forms of communication to disseminate accurate information. Objective 1.3.3. Actively seek feedback from citizens and employees, in order to implement programmatic changes, as appropriate. Goal 1.4. Provide exemplary customer service. Objective 1.4.1. Ensure all customer interactions are conducted in a professional and courteous manner. Objective 1.4.2. Respond to customer inquiries in a timely fashion. Objective 1.4.3. Provide convenient methods of conducting business with the City. Goal 1.5. Utilize technology to enhance efficiency and productivity. Objective 1.5.1. Develop Information technology systems to automate routine proce Objective 1.5.2. Utilize data analysis to make informed management and operationa Objective 1.5.3. Reduce reliance on paper-based systems. Exhibit 1 KFA 2: PUBLIC INFRASTRUCTURE Goal 2.1. Optimize resources to improve quality of City roadways. Objective 2.1.1. Manage City street funding based on Overall Condition Index (OCI methodology. Objective 2.1.2. Develop a long-range strategy to transition street funding to achieve the OCI c. Objective 2.1.3. Improve the design criteria for all dedicated roadways. Objective 2.1.4. Maintain an acceptable level of service on all City roadways. Objective 2.1.5. Design and construct all capital street projects on a 40-year design life. Objective 2.1.6. Update the Mobility Plan every five years. Goal 2.2. Seek solutions to mobility demands and enhance connectivity. Objective 2.2.1. Coordinate with DCTA to provide effective multi-modal connectivity. Objective 2.2.2. Coordinate with TxDOT to maintain and enhance the state road net Objective 2.2.3. Improve walkability/pedestrian access. Objective 2.2.4. Encourage and improve bicycle mobility. Objective 2.2.5. Enhance aviation infrastructure at the Denton Airport. Goal 2.3. Promote superior utility services and facilities. Objective 2.3.1. Plan for long-term resource acquisition and development. Objective 2.3.2. Assure regulatory compliance and legislative oversight. Objective 2.3.3. Protect public health and provide reliable service. Objective 2.3.4. Ensure operational and environmental sustainability. Objective 2.3.5. Effectively maintain and operate municipal facilities. Objective 2.3.6. Develop and support rates to provide funding for strategic objectives. Goal 2.4. Manage drainage infrastructure. Objective 2.4.1. Require new drainage infrastructure to design 100-year flood protection, based on fully developed conditions. Objective 2.4.2. Rehabilitate existing drainage system in compliance with 100-year flood protection criteria. Objective 2.4.3. Develop funding mechanism to rehabilitate inadequate drainage sy over a 20-year period. Objective 2.4.4. Require finished floor elevation certification on studied and unstudied drainage basins. Objective 2.4.5. Maintain street sweeping in compliance with the municipal good h management practices associated with storm water regulations. Goal 2.5. Develop Capital Improvement Program (CIP) based on community nee. Objective 2.5.1. Manage existing and future infrastructure needs to meet projecte. Objective 2.5.2. Develop and implement financing plans for identified infrastructneeds. Exhibit 1 KFA 3: SUSTAINABLE ECONOMIC DEVELOPMENT & ENVIRONMENTAL STEWARDSHIP Goal 3.1. Manage growth, development, and redevelopment opportunities. Objective 3.1.1. Update Comprehensive Plan. Objective 3.1.2. Execute Downtown Implementation Plan (DTIP). Objective 3.1.3. Promote Smart Growth/Infill initiatives in assessing development project Objective 3.1.4. Preserve and maintain historic structures and culture of Denton. Objective 3.1.5. Encourage environmentally-sustainable development, business, and construction practices. Goal 3.2. Encourage economic development. Objective 3.2.1. Create comprehensive Economic Development incentive policy to maximize Return on Investment to community. Objective 3.2.2. Develop marketing effort to build on existing assets. Objective 3.2.3. Create Industrial Park Master Plan, identifying challenges and o sound growth. Objective 3.2.4. Focus on economic development efforts that enhance the developmethe University of North Texas Discovery Park. Objective 3.2.5. Increase growth of visitor industry in Denton. Goal 3.3. Promote environmental sustainability. Objective 3.3.1. Establish sustainability goals and actions. Objective 3.3.2. Improve local and regional air quality. Objective 3.3.3. Manage natural resources responsibly. Objective 3.3.4. Provide public education and involvement opportunities. Objective 3.3.5. Ensure financial integrity of sustainability efforts. Exhibit 1 KFA 4: SAFE, LIVABLE, and FAMILY FRIENDLY COMMUNITY Goal 4.1. Enhance public safety in the community. Objective 4.1.1. Expand departmental collaboration and community partnerships by involvement, communication, education, and utilizing technology. Objective 4.1.2. Secure and deploy public safety resources in the most effective and efficient manner possible. Objective 4.1.3. Evaluate existing and future public safety facility needs in ord effective delivery of emergency response services. Objective 4.1.4. Focus on prevention programs to heighten awareness, minimize los safer community. Objective 4.1.5. Maintain a high level of preparedness through planning, training of resources. Goal 4.2. Seek clean and healthy neighborhoods in the City of Denton. Objective 4.2.1. Provide effective code enforcement services that meet community . Objective 4.2.2. Promote positive environmental behaviors and practices for the C its residents. Objective 4.2.3. Enhance the quality, livability, and sustainability of the neigh. Objective 4.2.4. Support revitalization efforts of existing low-moderate income neighborhoods. Goal 4.3. Provide quality, diverse, and accessible neighborhood services for the community. Objective 4.3.1. Meet customer needs through quality and diverse programs. Objective 4.3.2. Provide quality parks, libraries, and recreation services to promote leisure, cultural, and educational opportunities in the community. Objective 4.3.3. Promote a family friendly environment. Objective 4.3.4. Co-sponsor annual community events and festivals. Exhibit 1 KFA 5: PARTNERSHIPS AND REGIONAL LEADERSHIP Goal 5.1. Actively participate in regional, state, and federal initiatives. Objective 5.1.1. Maintain dialogue with state and federal delegation and agencies. Objective 5.1.2. Promote bi-annual legislative agenda and congressional priorities. Objective 5.1.3. Pursue effective representation at the state and federal levels. Goal 5.2. Maintain visible and effective relationships with governmental and non-governmental organizations. Objective 5.2.1. Maintain dynamic presence at the local Chambers of Commerce. Objective 5.2.2. Participate in regional, state, national, and international coalitions (RTC, NC TML, NLC, ICMA, etc). Objective 5.2.3. Support staff participation in regional, state, national, and in organizations. Objective 5.2.4. Build relationships with key organizations to enhance community and social services. Objective 5.2.5. Cultivate mutually beneficial relationships with local education and governmental institutions. Exhibit 2 5 Section City of Denton Quarterly Financial Report December 2011 PERFORMANCE REPORT Exhibit 2 Strategic Plan Performance Dashboards In FY 2010-11, the City of Denton embarked on the development of a Strategic Plan to serve as a roadmap for achieving long-term goals and objectives that capture the City’s Vision, Mission, and Value statements. The Strategic Plan is a product of the input generated from the 2008/2009 Citizen Survey, two City Council Planning Sessions, two Leadership Retreats, a special appointed Strategic Planning Steering Committee, and a City Council retreat in February 2011. The Strategic Plan is organized into five Key Focus Areas (KFAs) and major goals associated with each KFA are also identified. In April 2011, the City Council adopted the below Strategic Plan to serve as the basis for resource allocation decisions. Key Focus Area 1: Organizational Excellence Goal 1.1 Manage financial resources in a responsible manner. Goal 1.2 Develop a high performance work force. Goal 1.3 Promote effective internal and external communication. Goal 1.4 Provide exemplary customer service. Goal 1.5 Utilize technology to enhance efficiency and productivity. Key Focus Area 2: Public Infrastructure Goal 2.1 Optimize resources to improve quality of City roadways. Goal 2.2 Seek solutions to mobility demands and enhance connectivity. Goal 2.3 Promote superior utility services and facilities. Goal 2.4 Manage drainage infrastructure. Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs. Key Focus Area 3: Sustainable Economic Development & Environmental Stewardship Goal 3.1 Manage and facilitate growth, development, and redevelopment opportunities. Goal 3.2 Encourage economic development. Goal 3.3 Promote environmental sustainability. Key Focus Area 4: Safe, Livable and Family Friendly Community Goal 4.1 Enhance public safety in the community. Goal 4.2 Seek clean and healthy neighborhoods in the City of Denton. Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community. Key Focus Area 5: Partnerships and Regional Leadership Goal 5.1 Actively participate in regional, state, and federal initiatives. Goal 5.2 Maintain visible and effective relationships with governmental and non-governmental organizations. In addition to the above KFAs and goals, the Strategic Plan also identified a number of specific and actionable objectives for the organization. While this level of detail is beyond the scope of this document, the detailed version of the Strategic Plan is used by the organization to drive results and achieve the stated goals. On the following page, a matrix is presented to depict which departments are responsible for implementing each of the KFAs described above. While every department has some level of responsibility for each KFA, the matrix is intended to only highlight the department’s primary area of focus. On the accompanying Performance Dashboards, the Key Performance Indicators (KPIs) for each KFA by department are depicted. Exhibit 2 Strategic Plan Department Responsibility Matrix SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5 UTILITIES Electric Water Wastewater Solid Waste INTERNAL SUPPORT Technology Services Materials Management Fleet Risk NEIGHBORHOOD SERVICES Libraries Parks and Recreation Planning and Development Development Review Administration PUBLIC SAFETY Animal Services Fire Police Municipal Court Municipal Judge TRANSPORTATION Airport Streets Traffic ADMINISTRATIVE & COMMUNITY SERVICES City Manager's Office Economic Development Facilities Management Finance Human Resources Internal Audit Legal Public Communications Key Focus Area 1: Organizational Excellence Key Focus Area 2: Public Infrastructure Key Focus Area 3: Sustainable Economic Development & Environmental Stewardship Key Focus Area 4: Safe, Livable and Family Friendly Community Key Focus Area 5: Partnerships and Regional Leadership AGENDA INFORMATION SHEET AGENDA DATE: January 31, 2012 DEPARTMENT: Denton Municipal Electric (DME) ACM: Howard Martin, Utilities, 349-8232 ______________________________________________________________________________ SUBJECT Receive a report, hold a discussion and give staff direction regarding DME infrastructure planning. BACKGROUND In May and August of 2011, staff presented information to the Public Utility Board (PUB) related to our Capital Improvement Plan. Earlier this year staff also oversaw the completion of a FERC 715 study of the transmission system in and around Denton. The report and analysis were submitted to NERC to demonstrate DME’s compliance with NERC requirements. The report provided detailed discussion associated with the adequacy and the accuracy of the transmission facility maps, breaker diagrams, and single line diagrams for the city’s transmission facilities. The diagrams were used to construct mathematical power flow models to calculate and validate transmission system operation under normal and emergency conditions while considering single and multiple contingencies. The studies utilized actual 2010 substation and transmission line loadings and extrapolated those loadings outward to assess operation of the transmission system for forecasted 2020 summer peak loads (a 10 year forward looking study). The maps and documentation attached help illustrate the present loadings at each of DME’s substations and show that during this summer’s all-time high peak usage one of our substation transformers was 80% loaded. The average loading of all of our substations was 55%. During a planning presentation to the Board in May 2010, staff indicated that anytime a station is loaded over 50% we would need to plan for shifting loads and begin to plan constructing additional substation infrastructure. The 50% mark exists because if one of the station transformers inadvertently fails in-service then those customers affected could be easily switched and served from an adjacent substation transformer without seriously overloading another transformer. Therefore, it can be seen that, although DME’s substations served the peak loads we experienced this summer; our present system continues to need new substation and transmission infrastructure which must be constructed to continue provide customers highly reliable electric service and to comply with NERC requirements. EXHIBITS 1.DME 2011 Distribution Substation Loading 2.Map of 2011 Percent of Station’s Maximum Transformer Ratings 3.Map of 2013-2017 Transmission Enhancement Schedule Respectfully submitted: Phil Williams General Manager Denton Municipal Electric EXHIBIT1 DME 2011 Distribution Substation Loading 2003 2009 2010 2011 2011 % of System System System System Station's Total Substation Transformer Supply Peak Peak Peak Peak Substation Maximum 1 Voltage (kV) Capacity (MVA) Demand Demand Demand Demand Transformer 2345 Ratings (MW) (MW) (MW) (MW) BaseMax Arco138305022192322.444.8 Denton North13815250212320.180.4 Fort Worth**1381525001212.650.4 Hickory69244030292823.358.3 Industrial138305027373939.478.8 Jim Christal13830502410010.521.0 Kingsrow6924402519192255.0 Locust69427052494241.659.4 Northlakes6927453623292964.4 Pockrus138457538454740.153.5 RD Wells*1384575011252229.3 Teasley***138305010212127.354.6 Woodrow69305026252236.472.8 387645290309330346.7 1 - Base and Max MVA Transformer Rating at 55 degrees C (131 * - RD Wells Transformers added June 2009 4 - Load snapshot taken August 23, 2010 at 107 degrees F ** - Fort Worth Transformer added June 2010 *** - Teasley #2 Transformer added June 2011 5 - Load snapshot taken August 3, 2011 at 109.5 degrees F EXHIBIT2 U 2164 " !$# 35 £ ¤ 8 42 £W ¤ •••••••••••••••••• 77 LOOP288 80.4% ••••••••••• ••••••••••••• 55.0% W U 64.4% LOOP288 2164 £ ¤ £ ¤ £ ¤ 8 42 380 77 £ ¤ £ ¤ 380 ••••••••••••• 380 ••••••• •••••••• 44.8% " !$# 35 •••••••••••••• £ ¤ •••••••••• 21.0% 6 42 58.3% " !$# •••••••••• 35E •••••••••• U ••••••••••••• 29.3% £ ¤ £ ¤ 1515 77 ••••••••• 377 "72.8% !$# £ 78.8% ¤ W 35W 6 42 59.4% LOOP288 •••••••••• " !$# 35E U 2449 ••••••••••••••••••••• •••••••••• " !$# £53.5% ¤ 35W 377 U U •••••••••• 1830 2181 50.4% ••••••••••••• " #$ 3 •••••••••• 54.6% " !$# 35W •••••••••••• TransmissionOHLineSection 69kV 345kV 138kV 345kV DentonMunicipalElectric SUBSTATIONS&TRANSMISSION 2011PercentofStation'sMaximumTransformerRatings 8/18/2011 EXHIBIT3 AGENDA INFORMATION SHEET AGENDA DATE: January 31, 2012 DEPARTMENT: Denton Municipal Electric (DME) UTILITIES ACM: Howard Martin, Utilities, 349-8232 ______________________________________________________________________________ SUBJECT Receive a report, hold a discussion and give staff direction regarding pole attachments. BACKGROUND To minimize the number of the poles required to provide utility services and to share costs, many years ago, electric and telephone entities agreed to allow each other to attach to each other’s poles. As cable companies entered the market they also sought to utilize and attach to existing poles. It is an important distinction to make that cable companies have attached via pole attachment agreements where as telephone companies have attached via shared cost agreements. Cable companies have never intended to seriously be in the “pole business” and have usually attached to other utility poles. Phone companies were originally in the “pole business” on an equal basis with electric utilities but in more recent years have minimized their pole investment by utilizing electric utility poles wherever possible. Cable companies have paid an amount based on the percentage of space they occupy on the pole. In Denton, cable companies attach to about 6,600 poles at $24.45 per pole which amounts to over $160,000 annually. Verizon’s billings are based on net pole attachments. According to our records, Verizon is attached to 7,083 DME poles. DME is attached to 2,168 Verizon poles. Net billing to Verizon is for 4,915 poles. In December of 2002, the City of Denton participated in a work group of cities that developed a model Pole Attachment License Agreement based on existing Federal Communication Commission (FCC) standards. Exhibit I includes the Pole Attachment License Agreement that was approved by the Denton City Council on May 27, 2003. This ordinance, applicable to all entities using the City’s poles, establishes a uniform rate and adopts uniform technical standard for use and removal (see page 18 Article 10 – Abandonment or Removal of Utility Facilities). Currently, all telecommunication companies have signed the agreement and are paying the $24.45, with the exception of Verizon. We have billed Verizon the same amount per pole ($24.45) as the cable companies, but Verizon has written back that according to FCC rules their calculations indicate that they should only pay $12.01 per pole.Staff is in discussions with the City Attorney office about our legal options. Presently the cable companies have been cooperative in informing DME of attachments and transferring facilities from abandoned poles to new poles. This has not been the case with Verizon. EXHIBITS: 1. Pole Attachment Ordinance Respectfully submitted: Phil Williams General Manager Denton Municipal Electric AGENDA INFORMATION SHEET AGENDA DATE: January 31, 2012 DEPARTMENT: ACM: Jon Fortune SUBJECT Receive a report and hold a discussion regarding Regional Transportation Issues. BACKGROUND This item has been placed on the retreat agenda to provide the City Council and staff an opportunity to discuss regional transportation issues. Topics of discussion may include items such as the IH-35E project, DCTA, the Regional Transportation Council (RTC) and other regional transportation matters. Staff will be available to respond to Council questions. Respectfully Submitted: Jon Fortune Assistant City Manager