HomeMy WebLinkAboutDecember 03, 2012 Agenda
AGENDA
CITY OF DENTON CITY COUNCIL
December 3, 2012
After determining that a quorum is present, the City Council of the City of Denton, Texas will
convene in a Work Session on Monday, December 3, 2012 at 11:30 a.m. in the Council Work
Session Room, 215 E. McKinney Street, Denton, Texas at which the following item will be
considered:
NOTE: A Work Session is used to explore matters of interest to one or more City Council
Members or the City Manager for the purpose of giving staff direction into whether or not such
matters should be placed on a future regular or special meeting of the Council for citizen input,
City Council deliberation and formal City action. At a Work Session, the City Council generally
receives informal and preliminary reports and information from City staff, officials, members of
City committees, and the individual or organization proposing council action, if invited by City
Council or City Manager to participate in the session. Participation by individuals and members
of organizations invited to speak ceases when the Mayor announces the session is being closed to
public input. Although Work Sessions are public meetings, and citizens have a legal right to
attend, they are not public hearings, so citizens are not allowed to participate in the session
unless invited to do so by the Mayor. Any citizen may supply to the City Council, prior to the
beginning of the session, a written report regarding the citizen’s opinion on the matter being
explored. Should the Council direct the matter be placed on a regular meeting agenda, the staff
will generally prepare a final report defining the proposed action, which will be made available
to all citizens prior to the regular meeting at which citizen input is sought. The purpose of this
procedure is to allow citizens attending the regular meeting the opportunity to hear the views of
their fellow citizens without having to attend two meetings.
1.Receive a report from the City Council Ethics Committee and hold a discussion regarding
recommendations of the Committee as a result of their meeting on October 12, 2012.
2.Receive a report, hold a discussion and give staff direction regarding a
Branding/Marketing Proposal presented by the Economic Development Partnership
Board for a new Denton Airport Logo, Tag Line, Anthem and Name. The Economic
Development Partnership Board recommends approval (7-0).
3.Receive a report, hold a discussion and give staff direction regarding Airport Fund
Investment Guidelines. The Economic Development Partnership Board recommends
approval (8-0).
4.Receive a report, hold a discussion and give staff direction regarding Airport entry
infrastructure improvements. The Airport Advisory Board recommends approval of
modified improvement (6-1).
5.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;
City of Denton City Council Agenda
December 3, 2012
Page 2
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
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,
including without limitation, Sections 551.071-551.086 of the Texas Open Meetings Act.
C E R T I F I C A T E
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 CITY OF DENTON COUNCIL WORK SESSION ROOM IS
ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT.
THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING
IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED
MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE
TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-
RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED
THROUGH THE CITY SECRETARY’S OFFICE.
AGENDA INFORMATION SHEET
AGENDA DATE
: December 3, 2012
DEPARTMENT
: Airport
ACM:
Jon Fortune
SUBJECT
Receive a report, hold a discussion and give staff direction regarding a Branding/Marketing
Proposal presented by the Economic Development Partnership Board for a new Denton Airport
Logo, Tag Line, Anthem and Name. Economic Development Partnership Board recommends
approval (7-0)
BACKGROUND
In March 2011, the Denton City Council passed Ordinance No. 2011-042 which expanded the
duties of the Economic Development Partnership Board (EDPB) to include branding and
marketing for the Denton Airport in support of the Denton Airport 2010 Business Plan, as well
as duties related to Airport economic development. EDPB membership was expanded to include
a member knowledgeable of aviation. Cleve Breedlove was subsequently appointed as the
aviation representative of the EDPB.
In December of 2011, an Airport Branding Task Force (ABTF) was formed by staff under the
direction of the EDPB and Cleve Breedlove was appointed as Chairman (Exhibit 1). The ABTF
assumed two primary responsibilities:
1: Name, Branding/Identity Project
This assignment was to consider
lengths to capture the Airport story in a way it could be used for developing marketing materials,
and, (4) logo. Additionally, the ABTF considered (5) graphical representation of the logo and
theme line as one or separate graphic elements. The marketing consultant Sullivan Perkins was
engaged to create multiple options for each of these five branding elements for consideration by
the ABTF.
2: Basic Stationery Items
Once approved, the new identity would be applied to business cards, letterhead, envelopes,
mailing labels and other basic stationery items as needed. The services of Sullivan Perkins
included creating multiple options and prepping final files for use by a printer of choice to
produce marketing materials using the new Denton Airport brand.
Agenda Information Sheet
December 3, 2012
Page 2
The ABTF presented their preliminary considerations to the EDPB at the July 10, 2012 meeting
regarding a new Denton Airport name, logo and tag line to be used in marketing Airport
development to prospective aviation business and industry. Attached is a copy of the Task Force
recommended documents. The recommendation includes four (4) changes as follows:
1.Airport Logo
2.Logo Tag Line
3.Airport Anthem
4.Airport name
The Airport Advisory Board (AAB) discussed the ABTF recommendations at their September
12, 2012 meeting regarding each of the four proposed changes. There was unanimous support for
each of the changes except the Airport name, which was supported with one dissenting opinion.
RECOMMENDATION
The Economic Development Partnership staff and the Denton Airport staff recommend approval
of the Airport Branding Task Force proposed Airport Logo, Tag Line, Anthem and name.
EXHIBITS
1.Airport Branding Task Force Membership
2.Airport Logo, Tag Line and Name
3.Airport Anthem
Respectfully submitted:
Quentin Hix
Director of Aviation
Exhibit 1
Airport Branding Task Force
Chair: Cleve Breedlove
AAB Chair: Bob Eames
UNT Aviation Program: Steve Schwartz
Airport Business (2):
Jeff Soules, US Aviation Group
Mike Sutphin, Owner, Avionics International Supply (AIS)
Airport Non-Business (2):
Landon Sproell, Peterbilt Engineer, leases a hangar
Rick Woolfolk, Raymond James Financial Services, (former Airport Board Member
Staff Representatives (2):
Karen Dickson, CEcD, Vice President, Denton Economic Development
Quentin Hix, Director of Aviation, City of Denton
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Denton Enterprise Airport
DFW access, extraordinary business
.
Welcome to Denton Enterprise Airport, where serving business is the first order of business.
We are in the right place to serve enterprise on the rise. We are advantageously positioned at the top of
the enterprise triangle formed by Denton, Dallas and Fort Worth. So we are the natural c
companies doing business in DFW north, offering executives an ea
getahead.
Denton Enterprise Airport is also a convenient stopover for transcontinental flights. Since I-35 East and
West meet at our front door, we are a vital link in the corporat
Our airport includes a 7,000 x 150-foot runway, 500,000-square-feet of hangar space, on-site avionics,
superior Fixed Base Operators, full-service aeronautical maintenance and repairs, and a flight schoo
land available for lease development.
Of course, it takes more than just first-rate facilities to land prime business aviation clients. It take
commitment to service that is above and beyond. Speed matters, a
counts, too. So Denton Enterprise Airport is an easy experience, getting travelers in and out as quickly
and conveniently as possible. We provide not just business aviat
that high-flying executives and their spouses appreciate.
At Denton Enterprise Airport, business travelers will find less congestion, more convenience and easier
access to businesses in our region. The citizens of Denton will
increaseour prosperity and prestige and attract new aviation services an
years to come.
With top-flight amenities to serve business and a prime location to provide DFW access, Denton
Enterprise Airport is just plane easier.
AGENDA INFORMATION SHEET
AGENDA DATE
: December 3, 2012
DEPARTMENT
: Airport
ACM:
Jon Fortune
SUBJECT
Receive a report, hold a discussion and give staff direction regarding Airport Fund Investment
Guidelines. Economic Development Partnership Board recommends approval (8-0)
BACKGROUND
The 2010 Business Plan includes a recommendation for Denton Airport to be operated as an
Enterprise Fund (2010 Business Plan, page 51). As an Enterprise Fund, the Airport benefits
from additional revenue generated through aviation commercial, industrial and hangar facilities
built by the Airport and leased to tenants. The policy of providing ground only leases limits the
revenue potential from Airport property to the value of unimproved lots. Current ground leases
range from $0.12 to $0.25 per square foot annually, depending on the property location and the
inauguration date of each lease. Although the policy of offering Airport ground leases at low
rates has been successful in attracting private investment at the Airport in hangars and business
facilities, the Airport has developed to a point that additional revenue is required for
maintenance and public infrastructure improvements. In order to achieve sustainable financial
performance as an Airport Enterprise Fund, the Airport may identify and undertake investment
in aviation commercial and industrial facilities with long term lease agreements in place to
support the investments. Investment in public/private partnerships requires a high degree of
analysis of financial risk/return, as well as careful consideration of the private entity
participating in the lease or operation of a jointly funded/constructed facility. Investment of
public funds at the Airport to generate additional revenue for Airport operations is proposed to
include the guidelines attached as Exhibit 1.
Attached as Exhibit 2 is a summary of Airport infrastructure recently approved by the City
Council as property improvements leased to specific tenants. The terms of these improved
property leases is similar to the proposed Airport Fund Investment guidelines. The total cost of
improvements is estimated at $408,987, with total annual lease revenue of $28,860. The average
payback period for funds expended is 14.2 years, with the length of individual leases ranging
from 37 to 40 years. Each lease includes a provision to adjust the lease rate every second year by
the amount of increase in the Consumer Price Index and maintenance is the responsibility of the
tenant.
The alternate income from lease of the improved property as unimproved ground would have
been $14,400, if the tenants had decided to enter into a ground lease and construct improvements
themselves. This approach to investing gas well royalty revenue in property improvements
Agenda Information Sheet
December 3, 2012
Page 2
allows the Airport to establish lease revenue that has long term value to fund annual operating
expenses of the Airport and to build toward generating a net annual contribution to the Airport
Fund reserve.
EXHIBITS
1.Public/Private Partnership Investment Guidelines
2.Improved Property Financial Summary
Respectfully submitted:
Quentin Hix
Director of Aviation
Denton Airport Development Incentives
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Public/Private Partnership Investment Guidelines
July 2012
The 2010 Business Plan includes a recommendation for Denton Airport to be operated as an Enterprise Fund (2010 Business
Plan, page 51). As an Enterprise Fund, the Airport benefits from additional revenue generated through aviation commercial,
industrial and hangar facilities built by the Airport and leased to tenants. The policy of providing only ground leases limits
revenue from Airport property to the value of unimproved lots. Although this policy has been successful in attracting private
investment at the Airport in hangars and business facilities, the Airport has developed to a point that additional revenue is
required for maintenance and public infrastructure improvements. In order to achieve sustainable financial performance as an
Airport Enterprise Fund, the Airport may identify and undertake investment in aviation commercial and industrial facilities with
long term lease agreements in place to support the investments. Investment in public/private partnerships requires a high degree of
analysis of financial risk/return, as well as careful consideration of the private entity participating in the lease or operation of a
jointly funded/constructed facility. Investment of public funds at the Airport to generate additional revenue for Airport operations
must include the following guidelines:
1.Any private entity considered for participation with the Airport through a shared investment or long-
term lease/operation of a facility financed from the Airport Fund must have at least a five (5) year
record of successful performance in the type of business considered for development. Proof of
financial performance must be provided in the form of annual financial statements, annual corporate
reports or audited financial pro-forma. Equivalent financial credentials may be provided through
performance bonds or secured financial instruments to refund any loss of initial public funds invested
in a project approved by the City.
2.A financial pro-forma of Airport Fund investment must produce a minimum of capital recovery
amortized over a twenty (20) year period with a four-and-one-quarter percent (4.25%) annual return on
investment. The required rate of return may be adjusted periodically by the City to reflect a current
cost of capital for the City of Denton.
3.Cash flow into the Airport Fund from any investment should produce an amount equal to a range of
twenty-five percent (25%) to fifty percent (50%) additional revenue over the amortized investment
recovery. This revenue compensates for the value of the land included in any improved property lease.
4.The calculated payback period from cash flow of funds invested based upon a twenty (20) year
amortization plus an operating margin will be eight (8) to twelve (12) years, depending on the size of
investment, projected ongoing maintenance cost, longevity of business venture, risk mitigation plan or
other issues determined through the project vetting process.
5.Projects which match the investment guidelines established by the City Council will be presented by
City Staff to the City Council for consideration. Projects which include exceptions or alternate terms
for investment from the Airport Fund will be presented to the Economic Development Partnership
Board (EDPB) for recommendation to the City Council.
Exhibit 2
Improved Property Lease Summary
Development Annaul LeasePaybackLease
ProjectCostRevenueYearsYears
JVC Parking (Clear Star Street):
Fencing$1,125
Striping325
Curb Stops (26@$50)1,300
Concrete Paving34,794
Total Cost$37,544$3,00012.542
USAG Parking (4703 Spartan):
Fencing$4,830
Striping425
Curb Stops (59@$50)2,950
Concrete Paving79,172
Total Cost$87,377$7,14012.237
USAG Ramp (Taxilane "H"):
Subgrade Stabilization$106,100
Concrete Paving177,966
$284,066$18,72015.237
TOTAL$408,987$28,86014.2
Notes:
1. $408,987 @ 4.25% for 20 years = $30,384 P&I annually;
2. $28,860 X 37years = $1,067,820.
AGENDA INFORMATION SHEET
AGENDA DATE
: December 3, 2012
DEPARTMENT
: Airport
ACM:
Jon Fortune
SUBJECT
Receive a report, hold a discussion and give staff direction regarding Airport entry infrastructure
improvements. Airport Advisory Board recommends approval of modified improvement (6-1)
BACKGROUND
Denton Airport entrance improvements are being planned by staff to accommodate current and
future operation of the Airport. There is a current need to provide a Denton County Transit
Authority (DCTA) bus stop and turnaround to accommodate bus service scheduled to begin in
January 2013. Also, there is an ongoing need to provide a truck turnaround for the daily traffic
of semi tractor-trailers that reach the dead end of FM 1515 at the Airport entrance and then have
no accommodation to turn and go back on the highway. Another current improvement that needs
to be accommodated with the Airport entry improvement is a small open area to host an Airport
sculpture commissioned by the City Council through the Parks Department.
As a part of the proposed entry improvement, Airport staff has included a new road entering
from Airport Road and connecting south to an extension of Spartan Drive. This improvement
will allow access to over twenty-seven (27) commercial hangar locations in the southeast area of
the Airport, as well as a location for on-site directional signage for public access to these sites.
Both US Aviation Services and Business Air Management, the two Airport flight line service
providers, will be accommodated by the improved entry access and signage.
Exhibit 1 is a concept plan for improvements being considered for the Airport Road entrance to
Denton Airport. Engineered plans and specifications for construction of Airport entrance
improvements have been developed and construction quotes have been requested from Jagoe
Public Company and Floyd Smith Concrete under the terms of their City Council approved
annual contracts. If staff is directed to proceed with planning the proposed entry improvements
by the City Council, construction quotes will be presented for consideration on a subsequent City
Council agenda.
FISCAL INFORMATION
does not exceed three hundred fifty thousand dollars ($350,000). Quotes for actual construction
have been requested from Jagoe Public Company and Floyd Smith Concrete under terms of their
annual contracts with the City of Denton.
Agenda Information Sheet
December 3, 2012
Page 2
PRIOR ACTION
This entry improvement was presented to the Airport Advisory Board (AAB) at their meeting on
November 14, 2012 and following discussion, the AAB recommended approval of a modified
improvement to the Airport entry. The portion of the staff proposal related to the bus stop/truck
turnaround was approved and the portion of the proposed entry improvement related to the
southbound entry road was tabled for future consideration (Exhibit 2). The discussion with AAB
Members included specific requests of staff to provide more information regarding potential
development in the area adjacent to the southbound entry road (Exhibit 3) and notification to all
tenants in the southeast area of the Airport that this improvement is pending. Notification to
tenants has been provided and staff has not received any feedback. Additional area development
information will be discussed with the AAB at the December 12, 2012 meeting.
RECOMMENDATION
Airport staff recommends approval of the improvement proposed for the Airport entry.
EXHIBITS
1.Airport Entry Concept Plan
2.Excerpt from Airport Advisory Board Draft Minutes
3.Area development included in the 2003 Airport Master Plan
Respectfully submitted:
Quentin Hix
Director of Aviation
Excerpt
Exhibit 2
DRAFT
Airport Advisory Board Minutes
November 14, 2012
11-21-12
Item 3:
Staff presented a proposed Airport entry development that includes ground transportation
improvements to provide an alternate entry from Airport Road ontus
stop and turnaround for a new Denton County Transportation Authority (DCTA) route se
Airport beginning in January 2013 and an entry road from Airport
Drive. There followed discussion regarding the purpose of the entry improvement and the amount of
notice given to Airport tenants that the improvements are being
requested staff to provide a comprehensive plan showing the pote
adjacent to the proposed road south into the Airport. Bill Schofield requested staff to n
affected by the proposed improvement and to provide them an oppo
the entry road development.
Marc Moffitt made a motion to recommend approval of the entry improvement for a bus stop and truck
y
Karen Dickson. Motion passed 6-1.
JOHN CARRELL DR.JOHN CARRELL DR.
SPARTAN DR.SPARTAN DR.
FM 1515 AIRPORT RD.FM 1515 AIRPORT RD.
JIM CHRISTAL RD.JIM CHRISTAL RD.
01MP02-5A-2/28/03