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Home My WebLink AboutJune 23, 2015 Agenda'� ., ��o�u��l�l� ��'�,��k�,�� Tuesday, June 23, 2015 City of Denton Meeting Agenda City Council 2:00 PM City Hall 215 E. McKinney St. Denton, Texas 76201 www.ci tyofdenton. com Work Session Room After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Special Called Work Session on Tuesday, June 23, 2015 at 2:00 p.m. in the Council Wark Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Work Session Reports A. ID 15-494 Receive a report, hold a discussion, and give staff direction regarding the outcome of the 84th Texas Legislative Session and future legislative issues and strategies. Attachments: Exhibit 1- 2015 Denton Lepislative Propram B. ID 15-508 Attachments: Receive a report, hold a discussion, and give staff direction about possible ways that the City can support or assist in a potential residential development near Ryan Road and Teasley Lane. Exhibit 2- Proposed Park Propertv C. Under Section 55 L042 of the Texas Open Meetings Act, respond to inquiries from the City Council ar 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 55 L0415 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. Following the completion of the Special Called Wark 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 alnended, or as otherwise allowed by law. L Closed Meeting: A. ID 15-498 Consultation with Attorneys - Under Texas Government Code, Section 55 L071; Deliberations Regarding Real Property - Under Texas Government Code, Section 551.072. City ofDenton Page 1 Printed on 6/18/2015 City Council B. ID 15-499 Meeting Agenda June 23, 2015 Receive information from staff pertaining to the acquisition of real property interests related to the proposed expansion and reconstruction of Locust Substation generally located southeast of Fart Warth Drive & West Collins Street, in the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the potential acquisition and/or condemnation of parcels of real property near the aforementioned location and more particularly described as: Lot 1, Block A of Garcia Addition, an addition to the City of Denton, Denton County, Texas, according to the plat thereof recorded in document No. 2009-168 of the plat records of Denton, County, Texas. [Locust Substation] Deliberations regarding 55 L072; Consultation 551.071. Real Property - Under Texas Government Code Section with Attorneys - Under Texas Government Code Section Receive information from staff, discuss, deliberate, and provide staff with direction relating to the site selected far the DME Hickory Substation and the acquisition of real property interests. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests in the 100 block of N. Bonnie Brae St., Denton, TX where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Frofessional Conduct of the State Bar of Texas, or would jeopardize the City's legal position in any administrative proceeding or potential litigation. [Hickory Substation] CERTIFICATE I certify that the above notice of ineeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 2015 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABII,ITIES 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. City ofDenton Page 2 Printed on 6/18/2015 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 ��'u'� I�ui�im�lll��l� www.cityofdenton.com �� File #: ID 15-494, Version: 1 DEPARTMENT: CMO CM/ ACM: Date: Legislation Text Agenda Information Sheet John Cabrales, Jr. June 23, 2015 SUBJECT Receive a report, hold a discussion, and give staff direction regarding the outcome of the 84�' Texas Legislative Session and future legislative issues and strategies. BACKGROUND The City of Denton compiled its key legislative issues into the 2015 State Legislative Program for the 84�' Session of the Texas Legislature. This Program was adopted by City Council on December 16, 2014. The Program consists of issues that we anticipated the Texas Legislature would consider, primarily related to state initiatives that impact city finances, cities' ability to regulate oil and gas drilling activities, development and land use, rights-of-way, transportation, utility, and public safety issues. Focused Advocacy representatives will present a full overview of the positive and negative legislative outcomes, both in terms of cities affected statewide and Denton specifically. The Important Numbers Lawmakers filed 6,476 bills and proposed constitutional amendments in the 2015 Session; 20.5 percent of which passed, as compared to 6,061 bills in 2013 with a passage rate of 23.7 percent. Indeed, the volume of bills that could have affected city authority was impressive and, some may even say, at an all-time high. By the bill filing deadline in March, we were tracking more than 850 bills that could have had some impact on the City of Denton. ear ITotal Bills ITotal Bills ICity-Related Bills Introduced* Passed Introduced 1993 4560 1089 800+ 1995 5147 1101 800+ 1997 5741 1502 1100+ 1999 5908 1638 1230+ 2001 5712 1621 1200+ 2003 5754 1403 1200+ 2005 5369 1397 1200+ 2007 6374 1495 1200+ City of Denton ;ity-Related �ills Passed 40+ 40+ 30+ 30+ 50+ 10+ 05+ 20+ Page 1 of 2 Printed on 6/18/2015 I� rw<�;i��i Iry I c��r:}i=;l„r�nw File #: ID 15-494, Version: 1 2009 7609 1468 1500+ 120+ 2011 6303 1410 1500+ 160+ 2013 6061 1437 1500+ 220+ 2015 6476 1329 1600+ 220+ *Includes bills and proposed Constitutional amendments; regular session only. (Source.� Texas Municipal League Legislative update, June 5, 2015) EXHIBITS Exhibit 1- 2015 State Legislative Program Respectfully submitted: Lindsey N. Baker Intergovernmental Relations/Public Information Officer City of Denton Page 2 of 2 Printed on 6/18/2015 I� rw<�;i��i Iry I c��r:}i=;l„r�nw City of Denton 2015 State Legislative Agenda 84th Texas Legislature TABLE OF CONTENTS L City of Denton Mayor and Council Contact Information 3 IL City Manager, City Attorney and City Staff Contact Information 4 IIL 2015 State Legislative Program Adopting Resolution 5 IV. General Legislative Policy 6 V. Priority Legislative Agenda 8 VL Discussion of Priority Legislative Issues 9 VIL General Legislative Agenda 15 Page 2 Greg Johnson At-Large, Place 6 Greg.Johnson@cityofdenton.com Joey Hawkins District 4 Joey.Hawkins@cityofdenton.com Citv of Denton Citv Councii Members Mayor Chris Watts Chris.Watts@cityofdenton.com Mayor Pro Tem Jim Engelbrecht District 3 Jim.Engelbrecht@cityofdenton.com John Ryan District 2 Dalton Gregory At-Large, Place 5 Dalton.Gregory@cityofdenton.com John.Ryan@cityofdenton.com Kevin Roden District 1 Kevin.Roden@cityofdenton.com Page 3 City of Denton City Haii: (940) 349-8200 215 E. McKinney Denton, Texas 76201 www.cityofdenton.com Please feel free to contact the Denton City Council and staff to provide additional information and research on legislative issues. George Campbeii Anita Burgess City Manager City Attorney o/ (940) 349-8306 0/ (940) 349-8336 George.Cam�bell(a�citvofdenton.com Anita.Burgess(a�citvofdenton.com Howard Martin Assistant City Manager Utilities o/ (940) 349-8232 Howard.Martin(a�citvofdenton. com John Cabrales, Jr. Assistant City Manager Development Services o/ (940) 349-8509 John. Cabrales (a� citvofdenton. c om Lindsey Baker Intergovernmental Relations/Public Information Officer o/ (940) 349-8234 c/ (817) 994-7133 Lindsev.Baker(a�citvofdenton.com Jon Fortune Assistant City Manager Operations o/ (940) 349-8535 Jon.Fortune(a�citvofdenton.com Bryan Langiey Assistant City Manager Administrative Services o/ (940) 349-8224 Bryan. Langley�a� citvofdenton. com Page 4 � �,�� . , .. � R. � RESOLUTION NO. �� 14-044 A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF DENTON'S 2015 STATE LEGISLATIVE PROGRAM FOR THE 84��' TEXAS LEGISLATURE; AND PROVIDING AN EFFECTIVE DATE. ' WHEREAS, the 84th Texas Legislature will commence in January 2015; and WHEREAS, appraisal caps, revenue caps, budgeting authority and revenue sources, and many other legislative issues affecting local government will be considered; and WHEREAS, the City of Denton desires to adopt its 2015 State Legislative Program for the 84`" Texas Legislature; NOW, THERFORE, THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES: SECTION 1. The City of Denton's 2015 State Legislative Program for the 84th Texas Legislature is adopted as set forth herein and made a part of this resolution for all purposes. SECTION 2. The Mayor and City Council, City Manager and the City Attorney, or their designees shall communicate the items included in the 2015 State Legislative Program to members of the Texas Legislature. SECTION m3. The City Manager, or his designee, is directed to draft appropriate legislation, seek a sponsor, and actively pursue passage of such legislation by providing testimony from the Mayor and City Council and City Staff and through other appropriate means. PASSED AND�APPROVED this the �day of December 2014. �� „�.-�"" _ � �� ._ (�'�� 't�r�TTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY ► � w �, � BY: .._ '�`� �'-�-�' ,�� ._� �^�..: �'`�� AP��'�� ' ��,� �� :��0 LEGAL FORM: ANITA BURGESS, CITY ATTORNEY .�'"��.,d � � �� „ . � BYk �� ' �� r� �� .�` —� � y "��"� � m , „� �� GENERAL LEGISLATIVE POLICY PRESERVE THE CITY'S STRATEGIC GOALS & INTERESTS STATEMENT OF PRESERVATION As a general policy, the City will oppose any legislation viewed as detrimental to the City's strategic goals; or that is contrary to the health, safety, and welfare of its citizens; or that mandates increased costs or loss of revenues; or that would diminish the fundamental authority of the City. SUPPORT LEGISLATION THAT ADVANCES THE CITY'S STRATEGIC GOALS & INTERESTS STATEMENT OF SUPPORT Likewise, the City supports any legislation viewed as ad�ancing the City's strategic goals; or that improves the health, safety, and welfare of its citizens; or that responsibly increases revenues; or that ad�ances the City's authority to conduct the public's business. The City will oppose any initiatives that seek to erode municipal authority or that otherwise have a negative impact on municipal operations, including but not limited to legislation that would: • Erode home rule authority; • Detrimentally affect the City's financial position by reducing revenue streams or increasing costs; • Erode the authority of Texas cities to manage and control their rights-of-way or other public property, and to be reasonably compensated for such use; • Erode current municipal economic development authority; • Erode the current authority of Texas cities to enact a system and set the level of impact fees for new development; and � Further restrict cities' ability to adopt or amend zoning regulations, and annex property in a city's extraterritorial jurisdiction. FORM COALITIONS WITH PARTIES THAT SHARE COMMON GOALS AND INTERESTS WITH THE CITY FORM COALITIONS The City will form strategic partnerships with cities, political subdivisions, and private sector entities that share common goals with the City of Denton. Additionally, the City will wark in coordination with organizations such as the Texas Municipal League when their adopted positions are in-line with the legislative obj ectives and goals of the City. The formation of strategic partnerships and coordinated efforts is intended to provide the City with a stronger presence in the legislative process. GOALS OF THE CITY'S LEGISLTIVE ACTIVITIES Page 6 STATEMENT OF GOALS The fundamental goal of all City of Denton's legislative activities is to produce positive outcomes for the citizens of Denton as a whole. Numerous proposals in the Texas Legislature have the potential to seriously impact the ability of the City to carry out its overall mission. By taking a proactive role in monitoring and commenting on proposals in the Texas Legislature, we are working to ensure that the citizens of Denton can continue to enjoy the quality of life they have come to expect and deserve. Page 7 PRIORITY LEGISLATIVE AGENDA PRIORITY LEGISLATIVE ISSUES l. Preserve Local Budgeting Authority and Revenue Sources Uppose legislation that would unduly �^est�^ict the ability of the City to set its own budget o�^ �^aise the necessa�y �^evenue to p�^ovide se�^vices to City �^esidents and businesses. 2. Preserve Local Control of Land Use Planning and Zoning Su�o�^t legislation that p�^ese�^ves local land use autho�^ity. Uppose legislation that would e�^ode local land use autho�^ity by �^est�^icting the ability of cities to zone o�^ �^ezone p�^ope�^ties. Su�o�^t legislation that would cla�^ify that the state's vested �^ights law does not apply to subsu�^face �nine�^al develop�nent as it �^elates to pe�^�nits issued by the �nunicipality fo�^ oil and gas develop�nent activities. 3. Preserve Local Control of Denton Municipal Electric • Uppose legislation that would de�^egulate Municipally Owned Utilities o�^ a�nend thei�^ gove�^ning st�uctu�^e. � Su�o�^t legislation that would p�^ese�^ve Municipally Owned Utilities' autho�^ity and gove�^ning st�uctu�^e that �naintain a dive�^sified ene�^gy po�^tfolio. Page 8 DISCUSSION OF PRIORITY LEGISLATIVE ISSUES Preserve Local Budgeting Authoritv and Revenue Sources The City of Denton will oppose legislation that will unduly restrict the ability of the City to set its own budget or raise the necessary revenue to provide ser�vices expected by City residents and businesses. ISSUE During the last several Texas Legislative Sessions, proposals have been set forth that would severely limit the ability of cities to set their budgets or raise adequate revenues to carry out their fundamental functions. For example, numerous proposals to "cap" local revenues and property appraisals have been filed in the Texas Legislature. Every elected official in the City of Denton is sensitive to the tax burden our citizens and businesses pay, and is accountable to the local electorate for the decisions they make. We are also mindful, however, that it takes a great deal of flexibility with our local budget to meet the unique demands for services while at the same time preserving the high standards our community has come to expect. PROBLEM Appraisal and revenue caps undermine the ability of local governments to meet the individual needs and circumstances of their cities. Additionally, one size fits all "caps" violate the fundamental principle of local control. Citizens and businesses have numerous opportunities to provide input to the City of Denton's budget and tax rate setting processes. Most importantly, the citizens of our City get to voice their approval or disapproval of our budgeting performance and tax rates every time we hold a City election. Unfortunately, extremely low appraisal and revenue caps can produce numerous problems. For instance, appraisal caps shift the inequitable tax burden to businesses and new homeowners. This inequitable shift can produce serious long-term negative consequences for the local economy. Revenue caps, on the other hand, require the City to cut services or take on more debt to fund local projects and services. These types of "caps" are particularly harmful to a city like Denton, because it prevents the City from adequately dealing with the infrastructure needs brought on by tremendous population growth. It is inappropriate for the State of Texas to expect local governments to provide numerous public services with no funding from the State, while at the same time unduly restricting the ability of local governments to raise the necessary levels of revenue to provide the required services. SOLUTION If revenue caps are going to be applied to local governments they should be applied uniformly to the state budget as well. In short, the same rules should apply to all levels of government. The State could also supplement local government funding as other states that impose revenue caps have done. Page 9 Preserve Local Control of Land Use Planning and Zoning The City of Denton will support legislation that preser�ves local land use authority and oppose legislation that will erode local land use authority by restricting the ability of cities to zone or rezone properties. ISSUE Over the past few legislative sessions various proposals have been introduced to restrict the ability of cities to enforce their traditional land use controls. Specifically, legislation that requires cities to compensate landowners any time a zoning classification change is effected (often referred to as a"downzoning"), has come dangerously close to becoming the law. Under these proposals, cities would have to compensate landowners, even if the proposed zoning changes did not interfere with the current or intended use of the property. In addition to compensating landowners for zoning changes, proposals have been considered that would require compensation for numerous types of city regulations. For example, previously proposed legislation would have required cities to compensate landowners if they restricted the ability of patrons to smoke on premises or limited the time of day that alcohol could be served. All of these types of local restrictions have been debated under the theory of "regulatory takings." Additional legislative proposals would have prevented cities from ever changing the zoning classification of a property if any type of basic permit or site plan has been filed with any governmental entity. Since 1999 the Texas Legislature has continually expanded the "permit vesting" statute to include different aspects of city land use authority. The expansion of the "permit vesting" statute is beginning to interfere with the ability of cities to impose orderly, efficient, and comprehensive land use and development plans for their communities. PROBLEM Restricting the ability of cities to properly regulate land uses ultimately prevents them from being able to respond to the needs and demands of their citizens. For example, land use controls are used to keep undesirable businesses from locating in neighborhood-type settings. Additionally, one of the main reasons people live in cities is to have the protection of a regulated land use system. In short, when a home or business locates in a particular city they do so, in part, to ensure that an incompatible structure will not be placed next to their property. SOLUTION The ability of most cities to manage growth and development is based on the Texas constitution's home rule provisions. Cities are allowed to amend charters and pass ordinances as long as they do not conflict with the constitution or general laws enacted by the state legislature. This means that each home rule city can make its own decisions about what planning tools and techniques are most appropriate to its situation unless those tools have been proscribed by the Texas legislature. The State should be very cautious in proscribing solutions that are only applicable to individual situations because of the vast differences between cities in this large state. Page 10 Preserve Local Control of Land Use Planning and Zoning Support legislation that would clarify that the state's vested rights law does not apply to subsurface mineral development as it relates to permits issued by the municipality for oil and gas development activities. ISSUE Denton, Texas is a home rule city acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code. Denton, along with other cities in North Texas, identified that its gas well regulations did not fully implement the goals of allowing gas well operations while protecting the public's health, safety and general welfare. The rising demand for clean alternative fuel sources, and the advent of new drilling and production technologies, including hydraulic fracturing, has encouraged mineral development, including in the Barnett Shale gas play, a massive reservoir of natural gas underlying a substantial portion of southern Oklahoma and North Central Texas. The most active production zone of the Barnett Shale is situated under the highly urbanized Denton, Tarrant, and Wise counties. The City of Denton has witnessed significant conflict between increased drilling and urban expansion. The conflict between land use issues, that of gas well operations and that of surface owners seeking the peaceful and quiet enj oyrnent of their property, has become commonplace. Potential harmful impacts of gas well drilling and production within municipal boundaries fall heavily on neighborhoods and properties adjacent to gas well drilling and production operations, and the balancing of interests of the mineral owners and operators as against quality of life issues for those citizens warking and living near drilling sites and production infrastructure has proven challenging. By way of example, during our ordinance review, citizens presented compelling evidence of the impacts of gas well drilling in an urban environment, to include noise, dust, odor, light pollution, vibrations, fire safety, visual aesthetics, surface property value impacts, negative changes to neighborhoods, incompatibility of land uses, impacts to infrastructure related to public health and welfare such as water wells, concerns over setbacks, landscaping, public notice, signage, issues related to operating hours, operator insurance issues, road impacts, and other quality of life issues. Additionally, gas well flaring, gas well completion techniques, closed loop systems, vapor recovery units, water and soil impacts, other environmental impairment issues, methods of plugging and abandoning wells, pits involved in gas well operations, emergency operation plans, and other operational aspects of extraction of minerals trigger public health, safety, property preservation, and order and security of the City of Denton and its inhabitants. Gas well operations have the propensity for polluting or degrading streams, drains, recharge features, or tributaries that may constitute or recharge the City of Denton's drinking water supply. Notwithstanding these concerns, the City encountered substantial resistance from local operators on its ability to prevent ar moderate potentially harmful impacts of gas well drilling and production activities on adjacent and proximate land uses. Page 11 PROBLEM The concept of vested rights, in particular, is argued to restrict a City's authority to address impacts of gas well drilling: vested rights, regulatory takings, and preemption. This paper is offered in support of the City's Resolution asking the Texas Legislature to clarify the state's vested rights law. "Vested rights" claims are grounded in Tex. Loc. Godt Code, Chapter 245, as interpreted by the case of Ha�pe� Pa�k Two, LP v. Austin, 359 S.W. 3d 247 (Tex.App.-Austin 2011). Under Chapter 245, once an application for the first permit required to complete a property development "project" is filed with the municipality that regulates the use of the property, the municipality's regulations applicable to the project are frozen in their then-current state and the city is prohibited from enforcing subsequent regulatory changes to further restrict the property's use. However, these vested rights protections are lost to the extent that the development being pursued constitutes a new or different "project" from the one for which the initial permit was sought. A"project" is defined in Chapter 245 is an "endeavor" that requires a series of permits to complete. It is the filing of the first permit in the series of required permits that triggers the vested rights protection under the statute. In the context of commercial or residential development, the application of the vested rights law is somewhat problematic, as illustrated by Ha�^pe�^ Pa�^k Two. In the context of gas well drilling, it is even more difficult to apply. For example, assume that a gas well operator filed a gas well plat in 1992, identifying one well and a series of tank batteries on the plat. In 2007, the operator desires to drill five more wells, one of which is on the pad site of the original well, and three of which are on a pad site 5,000 feet distant from the original site. What is the project? Is it only that pad site identified on the original plat? Is it one well, or two wells, or five wells? Is the project the complete exhaustion of the mineral stores of the mineral lease, no matter the necessity of burdening the surface estate with additional wells and gas infrastructure? In an urban environment with underlying gas plays, the answer to these questions determines the health and safety and the quality of life of a municipality's citizens. SOLUTION It is Denton's position that the Texas Legislature never intended the vested rights analysis to apply to subsurface mineral development and that legislative clarification is need in this respect. Page 12 Preserve Local Control of Denton Municipal Electric The City of Denton will oppose legislation that deregulates Municipally Owned Utilities or amends their governance authority. ISSUE For the first time in over a decade, the 2011 State Legislative session saw bills introduced regarding partial deregulation for specific Municipally Owned Utilities (MOU). Ultimately, none of the bills passed into law. However, this type of legislative pressure toward specific MOUs can have a widespread, negative impact and unforeseen consequences on MOUs throughout the state. Municipalities owning an electric utility, such as in Denton's case, retain local regulatory authority through its main governing body, the City CounciL It is the role and choice of these City Councils to determine each MOUs energy future by exercising its authority whether to opt- in to the deregulated market or to retain its local authority. In April, 2001, the Denton City Council took a wait-and-see approach and exercised its authority choosing not to opt-in to deregulation. To date, there has been no viable reason for Denton to enter into the deregulated market. Requiring MOUs to participate in the deregulated market essentially eliminates the authority of the governing bodies of MOUs and forces them to operate under the same guidelines as investor owned utilities. Historically, DME electric rates have remained stable and competitively priced. Mandating that an MOU participate in the deregulated market not only increases its financial burden, but also ensures that the increased costs are passed through to the DME ratepayers, thus placing DME at a com�etitive disadvanta�e in the electric market. In addition, should an MOU such as that owned by the citizens of Denton be required to opt-in, it mitigates the strategic measures that the local citizens have enacted such as requiring more renewable resources from their MOU. PROBLEM Austin Energy's (AE) rate increase has raised the deregulation issue and it is anticipated that legislation will be proposed to deregulate all or a portion of AE. The opt-in discussions concerning AE may be expanded to include all MOUs. For Denton to enter the deregulated market, the additional operating expense would be substantiaL The current and additional operating expenses could be spread across a smaller customer base should customers exercise their "power to choose." A reduction in DME's customer base would ensure that its remaining customers would have to absorb the increased costs in the form of higher electric rates. SOLUTION MOUs must preserve the local authority and governing structure to provide affordable electric service and energy portfolio diversity to its ratepayers. Page 13 Preserve Local Control of Denton Municipal Electric The City of Denton will support legislation that preser�ves the authority and governance structure of Municipally Owned Utilities that maintain a diversified energy portfolio. ISSUE During recent sessions of the Texas State Legislature, proposals were sent forth regarding Texas' Renewable Portfolio Standard (RPS) and its proposed soft target for non-wind renewable generation. Restricting the types of generation which would qualify for inclusion in the RPS essentially eliminates the authority of the governing bodies of Municipally Owned Utilities (MOU) to procure renewable energy sources that are financially feasible for the MOU to maintain a diversified energy portfolio. As such, the increased financial burden for the City of Denton would be passed through to Denton Municipal Electric (DME) ratepayers. The City of Denton is a nationally recognized environmental leader because of its continued diversification of DME's energy portfolio. At no additional cost to its ratepayers, DME provides more wind energy per capita than any other city in the United States and offers one of the largest rebates for the installation of renewable energy generation in Texas. The City of Denton and DME recognize the importance of reducing the overall dependence on fossil fuel generation, while, at the same time being fiscally responsible to its citizens and ratepayers. PROBLEM Any legislation that eliminates MOUs' authority to determine and maintain a diversif'ied energy portfolio is fiscally irresponsible to the ratepayers. While some areas are more suited for specific types of renewable generation, not all utility scale generation is appropriate in all locations. For example, the cost of constructing and operating solar energy generation can be prohibitive. While solar costs have declined over recent years, the capital costs, scarcity of land, lack of electric infrastructure, and diminished levels of generation output, as compared to conventional generation, can substantially drive the cost per megawatt-hour of solar energy production upward. It is unrealistic and cost prohibitive for the State of Texas to expect MOUs to provide economically priced electricity to its citizens, while requiring a diversified energy portfolio that includes predetermined amounts of specific renewable sources without funding from the State. SOLUTION MOUs must preserve the local authority and governing structure to provide affordable electric service to its ratepayers. If energy portfolio diversity becomes a requirement, MOUs should have the option to determine which renewable generation source is most suited to each MOU's service area. If a generation requirement is mandated, it should be applied uniformly to investor owned utilities, cooperatives, and MOUs. In addition, the State should supplement local government funding of the construction of utility scale renewable generation to offset the impact to the citizens of Denton. Page 14 GENERAL LEGISLATIVE AGENDA Revenue and Taxation � Suppo�^t legislation that would improve the appraisal process to ensure equal and uniform application of property taxes. • Oppose legislation that would restrict the ability of cities to impose and collect municipal impact fees from new developments. Land Use and Resources � Suppo�^t legislation that would provide municipalities the authority to regulate and enforce zoning, building codes, and property maintenance codes within extraterritorial jurisdictions (ETJ). � Suppo�t legislation that would address the failure of utility companies to relocate their facilities in a timely manner as required by current law. • Oppose legislation that would reduce a municipality's authority and discretion to approve the creation of a special district within a city's incorporated area or ETJ, including the expansion of a district's boundaries or powers. • Oppose legislation that would erode city annexation authority. • Oppose legislation that would reduce or eliminate development fees, exactions, or building permits. • Oppose legislation that would restrict cities' ability to adopt or amend zoning regulations, vest, or otherwise create a property right in a zoning classification. � Suppo�t legislation that would allow local governments to enact ordinances relating to health and safety regulations as applied to gas drilling and production activities. � Suppo�^t legislation that would allow cities to enact ordinances regulating zoning and development, including but not limited to issues related to Chapter 245 Local Government Code. � Suppo�t the preservation of municipal authority to reduce the effects of oil and gas development on city residents. Utilities � Suppo�t legislation that preserves Congestion Revenue Rights (PCRRs) assigned to municipal utilities in exchange for supporting the nodal market construct. � Suppo�t legislation that preserves the Self Regulation of Municipal Electric Utilities. Page 15 � Suppo�t legislation that protects the ability of governmental entities to maintain confidentiality of certain critical documents and activities. � Suppo�t legislation that requires market participants and Retail Electric Providers (REPs) to be properly capitalized before they are allowed to participate in the ERCOT market. � Suppo�^t legislation that requires more stringent credit requirements for the startup of Retail Electric Providers (REPs). • Oppose legislation that requires municipal electric utilities to pay uplifted charges for those ERCOT Retail Electric Providers (REP) that declare bankruptcy or for any other ERCOT short pay charges. • Oppose legislation that would extend electric subsidies provided by municipal utilities to four-year state universities, upper level institutions, Texas state technical colleges, or liberal arts colleges. • Oppose any legislation that will increase ERCOT Fees. • Oppose legislation that provides any further exemptions to the drainage fee. • Oppose any legislation that would limit or prohibit a city's ability to make and sell compost/mulch products, inside and outside of the city limits. • Oppose legislation that would impose state "tap fees" or any other type of state charge on municipal water systems. � Suppo�^t legislation that would raise the exemption amounts for public warks projects in the Texas Engineering Practices Act. � Suppo�^t legislation that clarifies TCEQ's sanitary sewer overflow reporting standards. Transportation � Suppo�^t legislation that would retain limited authority far TxDOT to enter into public- private partnerships on specific projects. • Suppo�t legislation that would identify additional transportation revenue to enhance statewide and regional ability to maintain and improve transportation infrastructure, and that would provide metropolitan areas with flexible solutions to solve problems and ensure that areas contributing to transportation solutions will not be penalized with a loss of traditional transportation funding. Suppo�^t legislation that would constitutionally protect all revenues in Fund 6 and discontinue the diversion of transportation revenues to non-transportation purposes, and appropriate all revenues from highway user fees and taxes to fund transportation. Suppo�t legislation that would index the motor fuels tax to reduce the decline in purchase power of transportation funding. Page 16 � Suppo�^t legislation that would increase vehicle registration fees to address transportation funding needs. � Suppo�^t legislation that would enforce existing regulations and penalties of driving requirements (e.g. vehicle registrations, driver licenses, and vehicle insurance). • Oppose legislation that would remove or negate the strictly voluntary nature of highway turnbacks. • Oppose legislation that would create a Regional Mobility Authority in the four county area of North Central Texas including Dallas, Denton, Collin and Tarrant Counties for the purpose of administering funds received through revenue sharing agreements. � Suppo�^t legislation that directly benefits Denton County Transportation Authority, if such proposals do not adversely affect the city's interest. Public Safetv � Suppo�^t legislation that would require 100 percent reimbursement of costs incurred by cities for services provided during emergency evacuation and shelter operations resulting from an emergency evacuation ordered by the governor or the governor's Division of Emergency Management. • Oppose legislation that further restricts a city's ability to implement a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. • Oppose legislation that would allow open-carry firearms in municipally-owned facilities. • Oppose legislation that would restrict a city's authority to use license plate readers by law enforcement agencies. General Government • Oppose state preemption of municipal authority in the regulation of payday lenders, unless proposed legislation provides adequate protections from aggressive and harmful lending practices. � Suppo�^t legislation that heightens environmental standards, improves air and water quality and protects the health, safety, and welfare of Texans. Suppo�t legislation that would exempt cities from any federal collective bargaining legislation that may become law in the future. Suppo�t legislation amending Section 11.1825 of the Tax Code by adding that community housing development organizations (CHDOs) must receive an exemption from taxation from any affected municipality prior to receiving a tax exempt status from the local property appraisal district. Page 17 � Suppo�t legislation that would provide additional state funding for local and regional initiatives related to reducing the number of homeless persons and those at risk of homelessness in our community. � Suppo�t legislation that would provide state funding to assist local non-profits in providing adequate and coordinated mental health services throughout Denton County. � Suppo�^t legislation that would provide funding for Early Childhood Programs, including full-day service pre-kindergarten programs. � Suppo�t legislation that directly benefits LJNT and/ar TWLJ, if such proposals do not adversely affect the city's interest. � Suppo�t legislation that directly benefits Denton ISD, if such proposals do not adversely affect the city's interest. • Oppose legislation that would further reduce funding to Denton ISD, if such proposals do not adversely affect the city's interest. Page 18 � � Produced by PC0,12/2014 • ADA/EOE/ADEA • TDD: (800) 735-2989 • wuvw.cityofdenton.com Cover photos by Thorpeland Photography City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 ��'u'� I�ui�im�lll��l� www.cityofdenton.com �� Legislation Text File #: ID 15-508, Version: 1 Agenda Information Sheet DEPARTMENT: Economic Development CM/ ACM: Date: George Campbell June 23, 2015 SUBJECT Receive a report, hold a discussion, and give staff direction about possible ways that the City can support or assist in a potential residential development near Ryan Road and Teasley Lane. BACKGROUND Bob Shelton Enterprises is interested in developing a tract of land near Ryan Road and Teasley Lane as a residential development with large, single-family homes with values of approximately $400,000 to $600,000. The tract of land in question has significant development constraints, associated with flood plain, offsite sewer improvements, improvements to Ryan Road, and an existing gas well located on the property. Shelton has approached the City about opportunities to partner on the development in order to make the development economically viable and accomplish the City Council's objective of providing some inventory of higher-value homes. The request for a proposed partnership is attached as Exhibit 1. One opportunity for partnership is the possibility of the City acquiring some of the heavily-treed acreage as Park property. This acquisition would create contiguous park access from Ryan Road (see Exhibit 2). The property is heavily treed, and a significant portion of it is within the flood plain. Shelton has requested that the City consider the use of the Tree Fund to acquire the property for Park use. A second request for partnership is the possibility of the City extending the offsite sewer line to the boundary of the property (approximately 1,200 feet). This wark session is intended to obtain feedback from the City Council regarding potential interest in partnering with Bob Shelton Enterprises in order to facilitate the development of higher-value homes in Denton. OPTIONS The City Council can give staff direction to pursue a partnership with Shelton or to not pursue a partnership. Mr. Shelton has indicated that he will be unable to purchase and develop the property without some assistance from the City. Currently, the property is in the ETJ and has a non-annexation agreement in place. Mr. Shelton is willing to voluntarily annex the property to accomplish mutual goals for the development. PRIOR ACTION/REVIEW (Council, Boards, Commissions) N/A City of Denton Page 1 of 2 Printed on 6/18/2015 I� rw<�;i��i Iry I c��r:}i=;l„r�nw File #: ID 15-508, Version: 1 FISCAL INFORMATION The proposed Park land is approximately 28 acres. Mr. equates to $40,000 per acre, or 92 cents per square foot. The estimated cost of the sewer extension is $500,000. Shelton has quoted a price of $12 million, which EXHIBITS Exhibit 1- Letter from Bob Shelton Enterprises (under separate cover) Exhibit 2- Proposed Park property Respectfully submitted: Aimee Bissett Economic Development Director Prepared by: Aimee Bissett Economic Development Director City of Denton Page 2 of 2 Printed on 6/18/2015 I� rw<�;i��i Iry I c��r:}i=;l„r�nw r � 0 a` m a w 0 0 a � s w �• _ � m _ x W H i � U W Z Z O U Y � d �� W O �: � � LL �� _ �� g` �� p z � ~ � � � �� Z o � F \ � N � F$F �S n �-w �s��o �� z z �q� �� w � �.� o ��' mh �� Handout to Council 06/23/2015 �� '�� ,a � � � �. I"^� .�9_ �~ W�� ='" 1�-i I `:�R �.e �� -� T�r�e 18, 2015 A�i��ee F3iss��t I��iector, ]Ccono��ic Deveic�p�ae��t �'lai7n�n� Dega�rtm�nt �1t�F �� i�T1147T1 �� J� �. �C�IIIIIi;v ��Ci1tCrT1, �� 7�� R.e: I'ra�osed Ryan ��x�ch ��t��ivis�can �iear �i��c; I: �pc�lca�iz� for this ial��n�; s� 1o17g tc� �;et tc� yeru ai7c� �c��e the; follc�win�; will �e helpfiul far yc�ur prese�tiatic�n �o ��e C'c�uncil. �`Ve �•es�ectfiiPly p°equ�st tk�e �"ity c�t l�eart.csl� cc�l�sid�r tl�e fc��lawir�� re�,�r�i�� c�ur �ra�ased develc�p��xent c�r1 Ryaz� Road, cc�n�rtaonly refc�rrecl i:c� as R�r�n FZ�z�ch. �, 3. �:ity tc� p�rchase t�e east �;aack ft�r �ark: Iax�d (appr��it-�zately 2� ac��s) far �arl� and recreatic�nal use a� c��tlirle� e�n the attacheci a�ri�l. �'h� purcl��s� ��rice wTc��ilc� be `�1,12(Jgf)C►p. C"i�y to cc�z��truct c�r payr fc�r tl�e cc�nstr��c;tic�n cast tc, bri�7�; sew�r tc� tl�e sc�u�herr� �n� a�f �hi� ��ac�. I'lcas� see t�a� att��hec� cf��awin� for the c��`fsi�e s��v�� ci estin�atcd coz�st��,�ctio�z �c�s�s. (�ity tc� vvai��c �z�y �ree mi�i��tic�n ��s, b��1°ix�� it� n�in� �hat �11 th�s� trees car� bc. rctnc�vcd befc�re City anne:�atie�n because �he tract is t7ow ia�t tl�c ET�; kacrwever, w� �v�aufld lilce �o savu as rna�zy tr•e�s as �ve pc�ssi��y can ar�d will st�:ive i�r da sa. C�ur �r�sea�t lay��i �llc�ws �ar ag�pi•ca�il�ra�te,ly Si lots iftlze ��.isting �;as vaell r•eri�t�in�. Ifiw� are stacc�ssful i� �uy��; cru� �he ��s wcll, �Thich �ve are �oir�� ta attcin��t tc� cic�, we wr��d have �ppraxizaxai�Iy 70 �t�ts. The avera�;e szze o$'4he Ic�ts woulcC be al�c�ut 20,ChCYO sq.�iare f��t w�il� a n�air�in�u�n a�C 1 S,QOa scruaie feet �nc� a m�axim�:z�� ai'45,C1�0 s�u�re E-c�t. �c �a�at�cipaie tl7e lo�s ��e�ulct ra��;� i� �7rice lrc�r�7 �;➢10,0(�C� tc� �140,i�(�0. Ha�ra� priccs s��rr�ld c�me �r� �� a rninimu�n �f applc�xim�d:ely ��50,�JOfJ ancl �;o �pward 1i�c�a�n t��ere �vith an aver�ge �?ric� af sarn�wh�re in t�e i�ei�hborl��od of $50(�,QOQ. � ho�� tl�is is tihe i�a�c�rmation yu� w�1e 1c�c�l�;it�� tc�x. If�va, c�n answ�a �n�F q��estic��s ar �rc�vic�e a�di��onal zz��o��n��tio��, ��ease teel �'rc�e ic� calfl ei�her F�racl c�� mys�i�', �s always, til��r�k ycru fo�° yca�l�• �ssista��c�. �iii��er�ly> �ati �heltcrn �z�esi��r�t �;��i� �� u�� u� .�.,� �;��;�'� �� ll�� °� �� '�'�� `� � �� l��i%� �j'�/P1'f f �J ri i f�' � i j��/ �{��! ��f� u� � � � � G�� r��i'I- � ��I�.i�"'' �-: p �+ "� �` � -' `�1 � ' u�� `�� . ' � � � " �� : � �� ' W �� u7 �w"�w � � � �mm � � � � a� r��-- � z�,r o � x ,� w� � �� z v�� r s..._ u7�'�. &.� cr—�i � ��u.�� a& EN�"rI�EE6�'S CiPlNIt7�d C7F 1'f2C7BABl.E �CdP�STRCfC'ff47� CfiST *��E�P'i$Rl`,A�7� ��1'IE� 6�8�L1.1i2�C?*** 141MLEY-HCbFCPd APd� �SSCYCIAT�� LiATE: MAY 1�, Z61�a JECT IVAME: ftyan l�oad EiJ TraCt - West Sede PVE.T ACRES: 3.Q�� Nf7. C1F L(77"S: - Denian E7J. !?enCOn County, Texas GRqSS ACfy'ES: 3.0 CREFITED BY: Tl..F NllMBER: d693p8774 CREAiCD: CMECK�CJ BY.' TLF NAME,- 2016 06tt7 Ryan Ftpad ETJ Ssn�tary Sewer.xlsx� PRdIUTED; i2LVlS�D BY: