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HomeMy WebLinkAbout2017-04-25 Agenda with BackupTuesday, April 25, 2017 City of Denton Meeting Agenda City Council 2:00 PM City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Work Session Room After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, April 25, 2017 at 2:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Work Session Reports A. ID 17-414 Receive a report, hold a discussion, and give staff direction regarding the Water Works Park wave pool project schedule and associated admission fees. Attachments: Exhibit 1 - Wave Pool Presentation Exhibit 2 Marketing Advertisement B. ID 17-415 Receive a report, hold a discussion, and give staff direction regarding current notification practices and requirements for public hearings and public meetings. Attachments: Exhibit 1 - Comparison Table of Public Hearing Notification Requirements Exhibit 2 - Comparison Table of Neiahborina Cities Notification Reauirements Exhibit 3 - Example of an 8'/2" x 11" Letter Notice.docx Exhibit 4 - Example of a 500 -foot Postcard Notice.pdf Exhibit 5 - Notifications Matrix C. ID 17-531 Receive a report, hold a discussion and give staff direction establishing an anonymous reporting mechanism as that relates to the duties of the City Auditor. Attachments: City Council Presentation 5217 Comparison Study 2. Concluding Items A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. City ofDenton Page 1 Printed on 412112017 City Council Meeting Agenda April 25, 2017 NOTE: The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 2017 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1 -800 -RELAY -TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. City ofDenton Page 2 Printed on 412112017 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEN' `IN File #: ID 17-414, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Parks and Recreation DCM: Bryan Langley AGENDA DATE: April 25, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding the Water Works Park wave pool project schedule and associated admission fees. BACKGROUND Voters approved the construction of a new wave pool and concession stand at Water Works Park as part of the 2014 CIP Bond election. This is the first addition to Water Works Park since its inception in 2003. On September 20, 2016 City Council approved an adjusted Fee Schedule for FY 2016-17 based on the addition of wave pool and concession stand amenities at Water Works Park. On November 8, 2016 Council approved an ordinance awarding the contract for construction of a 13,308 square foot wave pool and 1,425 square foot concession stand to Schmoldt Construction, Inc. in the not -to -exceed amount of $2,630,310.70. Staff had originally intended for the new amenities at Water Works Park to be open Memorial Day weekend. However, due to delays in construction, staff now estimates the wave pool and concession stand will not be open to the public until July 1, 2017. The construction of the project has been primarily delayed due to permit delays and inclement weather days. RECOMMENDATION Since the new amenities will not be open at the beginning of the summer season, staff recommends fees be offered at the prior year fee structure for daily admissions and preseason prices until the wave pool opens. Below is a comparison of the FY 2015-16 Fee Schedule to what was approved in the FY 2016-17 budget process. Daily Admission Fees FY 2015-16 FY2016-17 48" and Above $11.00 $17.00 Under 48" $7.00 $13.00 Water Park Passes FY 2015-16 FY 2015-16 FY 2016-17 FY2016-17 Preseason Regular Season Preseason Regular Season City of Denton Page 1 of 4 Printed on 4/21/2017 powered by I-eg;gl;>karI File #: ID 17-414, Version: 1 Individual Season Pass $65.00 $75.00 Individual Monthly Pass N/A $30.00 Family Season Pass up to 6 $200.00 $225.00 *Nonresidents add an additional $5/pass $65(1-3)$55(4+) $75(1-3)$65(4+) N/A $30(1-3)$25(4+) N/A N/A Due to the delayed opening, staff recommends compensating pass holders who have pre -purchased 4 or more season passes for the 2017 season from options listed below. • Refund the difference of the preseason FY 2015-16 pass fees vs. the preseason FY 2016-17 pass fees. See example below: Resident purchased 4 preseason season passes at $55/pass for a total of $220. Staff will issue a partial refund of $20. Staff estimates a maximum amount of $2,100 in partial refunds would be processed. • Full refund for purchased passes if requested before June 3, 2017. Additionally, staff is proposing that daily admission fees and the season passes be offered at the FY 2015-16 fees until the wave pool opens. Since these fees are different from what was approved by Council, staff will need to bring back a new fee ordinance for consideration. This is tentatively planned to be considered by the Council on May 2, 2017. ESTIMATED SCHEDULE OF PROJECT Staff has worked diligently with the contractor to make up as much time as possible on this project. To compensate for delays, the contractor is currently working six days per week and has added an additional crew to improve progress on the project. Project target dates are below: • April 20 - Pool floor poured • April 25 - Concession stand slab poured • May 1 - Start to build concession stand • May 1 - Start to build the wave pool equipment room • June 1 - Wave pool equipment room complete • June 6 - Start installation of shade structures • June 16 - Concession stand complete • June 20 - Fill wave pool, approximately 300,000 gallons of water • June 20 - Final Inspections • June 23 - CO issued for wave pool and concession stand City of Denton Page 2 of 4 Printed on 4/21/2017 powered by L.ag;gl;>karI File M ID 17-414, Version: 1 • June 24 - June 30 Water balance and staff training • July 1 - Estimated opening day * This schedule is subject to inclement weather delays FISCAL INFORMATION The Water Works Park wave pool and concession stand will only be open for a maximum of 53 days after the estimated project completion date of July 1, 2017. DISD approved an earlier back to school start date than staff had anticipated, which impacts the overall total revenue. Due to the revised calendar, staff is forecasting the following: Budgeted increase in Operating Budget expenditures for Water Works Park: $608,076 REDUCTION IN EXPENDITURES Temp Seasonal Staffing Reduction if open July 1 FT Staff Savings: Salary savings due to current vacancy for Recreation Coordinator Reduction of Operational Costs as a result of July 1 opening TOTAL REDUCTION IN EXPENDITURES: Net Operating Costs as a result of July 1 opening REDUCTION IN REVENUE Revenue Enhancement Submitted in FY 2016-17 Budget Reduce Revenue by 50% due to delay and reducing fees NET ADDITIONAL REVENUE NET ADDITIONAL EXPENDITURES NET ADDITIONAL REVENUE ANTICIPATED WATER PARK DEFICIT DUE TO DELAY ($'1102,602) ($'1174,1129) $433,947 $610,000 $305,000 $433,947 $128,947 Staff recommends the additional estimated deficit be absorbed by the City so as not to impact the joint use agreement with DISD. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area Related Goal: EXHIBITS Safe, Liveable & Family -Friendly Community Provide and support outstanding leisure, cultural, and educational opportunities City of Denton Page 3 of 4 Printed on 4/21/2017 powered by I._ag;gl;>karI File #: ID 17-414, Version: 1 1. PowerPoint 2. Marketing Advertisement Respectfully submitted: Emerson Vorel Director of Parks and Recreation Prepared by: D'Lee Williams Assistant Director of Leisure Services City of Denton Page 4 of 4 Printed on 4/21/2017 powered by I._ag;gl;>karI C O 0 N a Z O �a W 0 C: (/) Q W O — 47 O > U Q .c/) = W =3 ate -J 4-J cn _0 U c N w C: O O O0 .� U m cn ca O a_ C: N ca O M U LZ E p M Q C:U Q +-+ N M V)O Q N C: aA > -Ln .O O ca _0 C o cn O O ' > v 0 — }O = ca � N > (1O > O +-+ O U C: 0N Q Q 0- C: ca O O >; Q i Q Q O QQ C6 C6 U i N Q U UO U =3C6 — fB = =3 +-+ U N N C3- N O U O iUl Q 00 N Q 4-: }, M 1 N 4J �a Ou � � U > U U ri I'D � O [V O O N 0 N 1 r1V 1 0�1 w Q O O z cn z I IN Al O O Q Q U X N Al O m Cl z 0 z LU O u r -I (3) N N O ui ON N N N rl Q Q C6 C6 C6 C6 Q Q C C C C O m Cl z 0 z LU O u O M O O M 4 M (Z rl N N N N c C: C: C: C: C: C (/) � C6 4--) O��, Lf) W c /O O O /}.��V�� btA/ O 0 U ca O .aA N_ Lr)ro N -0N 0 .N N CSA J M U Q O cin O Q v aA u' cN c/1 '� O L a--+ v O O ro — 00 +�-+ _0 O ';j p OQ Q N N _0 % a� l/1 M O O M ro 0 Ln Ln E Q ro 0 k 4- c 0 ra CDE E O Q� ria1 10" CL 0 0 CL 3 t I*% M r -I r -I AA- AA- 00 RZT m, C M + m + o O °' w f6 O L L L L LU Q Q Q Q '� C� D Ln Ln N tm o M N o u i/� V), i/� V), m + Ln V) U U L Z3 D Q LALn w Ln i/,). 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U U N O N O C: U o C6 cn c/) U U 0 N 'p O Q t�: CD ro N o C: C: O o � oc O O C: U C6 (A (A C: i 4A � 4-J O m Q 'U N a -a Q E O CD 0 0 n z 0 z 0 0 u I G New wave pool and concessions to debut this summer. To purchase a season pass or book a party, call (940) 349-8800. Nonresident fee will apply. 2400 Long Rd., Denton, TX Exhibit 1 2017 water park season passes are on sale until the wave pool opens! Ca tdllh i iiiii° lll[i IIIast yeuiiiii'-uIII'es 1111Iindividuall Ip ss, IIID airnilly IID ss, For pass perks, terms, and more, visit www.dentonwaterworks.com. Join us for sneak peek fun, May 20-21 and Memorial Day Weekend, May 27-29. City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I1EN' `IN File #: ID 17-415, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services CM: Todd Hileman DATE: April 25, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding current notification practices and requirements for public hearings and public meetings. BACKGROUND The Texas Local Government Code (TLGC) sets minimum requirements for notifications for Planning and Zoning -related public hearings. The TLGC requires: • Published notice of the hearing in the official newspaper before the 15th day before the date of the hearing; and • Written notices be mailed out to property owners located within 200 -feet of the subject property via regular mail before the 10th day before the hearing date. In addition to the TLGC requirements, the current practice of the Planning Division is to: • Publish a notice in the Denton Record Chronicle 17 days prior to the public hearing date; • Mail written notices to property owners located within 200 -feet of the subject property via certified mail 12 days prior to the public hearing date. • Mail a courtesy notice via regular mail to all residents of property located within 500 ft of the subject property 12 days prior to the public hearing date. • Post a sign on the subject property 12 days prior to the public hearing date. Exhibit 1 provides a comparison table of public hearing notification requirements found in repealed Sections of the Municipal Code of Ordinances, the notification requirements per Subchapter 35.3 of the DDC, and the notification requirements per section 211.007 of the TLGC. City of Denton Page 1 of 3 Printed on 4/21/2017 powered by I._eggl;>karI File #: ID 17-415, Version: 1 Exhibit 2 provides a comparison table illustrating the notification requirements of neighboring cities. RECOMMENDATIONS In order to enhance the City's notification efforts and level of service to residents and property owners, staff recommends the following changes to current practices: Mail out public hearing notices (81/2" x 11" full color, two-sided letter) to property owners within a 200 - foot radius of the subject property via regular mail. Changing the delivery method from certified to regular mail reduces a barrier for recipients, as they do not have to make a trip to the post office to receive the notice. An example of the revised notification letter is attached as Exhibit 3. 2. Mail out courtesy notices (postcards) to residents within 500 -foot radius of the subject property via regular mail. Staff recommends changing the format for courtesy notices to postcard to improve visibility of the notice. An example of a notification postcard is attached as Exhibit 4. 3. Enlarge the public hearing sign dimension to 4' x 3.5' and require the applicant to post the sign on the subject property. The sign would include contact information and a shortened website URL for more information. 4. Implement an electronic notification system where all City notifications are centralized in a prominent location on the City's website, and users can subscribe to email notifications when a notice is posted. 5. Revise the notification fee for all notifications (public hearing notice, courtesy notice, and newspaper publication). The current notification fee for projects that require a public hearing is a flat fee of $220. Staff recommends a flat fee for the newspaper publication and charging a variable fee for mailed notices based on the actual cost of distribution, which may vary widely based on the subject site. 6. Standardize notification procedures for public hearings, neighborhood or stakeholder meetings, construction notices, and other informational notices. Practices currently vary by department, and staff is working to standardize notification methods based on activity, rather than the initiating department. Exhibit 5 shows the standard and supplemental tools that would be used for each type of activity. City departments will also continue to work with Community Affairs to build relationships with established neighborhoods and other key stakeholders. When there is a project that has the potential to impact a neighborhood, Community Affairs will proactively engage the affected stakeholders by hosting a neighborhood meeting. The goal of the meeting is to involve everyone early in the development review process, and addressing as many questions/issues as possible. ADDITIONAL OPTIONS 1. Extend the courtesy notices radius from 500 -foot to 1,000 -foot from the subject site. 2. The City could require the applicant to send out all notifications, and before the first public hearing receive from the applicant a signed and notarized affidavit attesting to meeting the notification requirements. City of Denton Page 2 of 3 Printed on 4/21/2017 powered by L.ag;gl;>karI File #: ID 17-415, Version: 1 PRIOR ACTION/REVIEW (Council, Boards, Commission) April 27, 2016, Planning and Zoning Commission Work Session October 12, 2016, Planning and Zoning Commission Work Session October 26, 2016, Planning and Zoning Commission Work Session STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 1.3 Promote effective internal and external communication EXHIBITS 1. Comparison Table of Public Hearing Notification Requirements 2. Comparison Table of Neighboring Cities Notification Requirements 3. Example of an 81/2" x 11" Letter Notice 4. Example of a 500 -foot Postcard Notice 5. Notifications Matrix Respectfully submitted: Munal Mauladad Director of Development Services Prepared by: Alison Ream Assistant Director of Administration, Development Services City of Denton Page 3 of 3 Printed on 4/21/2017 powered by I._ag;gl;>karI Exhibit 1 Com arison of Notification Requirements Ord. No. 99-029 DDC — PlanningDDC —Zoning (Repealed) and Zoning Amendment §211.007 Loc. Current Practice Commission Process Govt. Code Procedure Sec. 35.3.5.0 - Code Residential §211.007 Loc. Reference N/A (Repealed) Replats and Sec. 35.3.4.0 Govt. Code Variance applications Published Yes Yes Yes Yes Notice Notices sent to all Notices sent to all Notices sent to all Notices sent to all owners of real owners of real owners of real owners of real Mailed property located property located property located property located Notice within 200 feet of within 200 feet of within 200 feet of within 200 feet of the subject site via the subject site the subject site the subject site vla Courtesy Yes N/A N/A N/A Notice Sign Yes N/A N/A N/A Posting 0 U r" o m �° m a y cz m�° a �a on o �_ �o�y go-yy goy ry, Q% �I •~nil ��y •ISI ° •�I U U r�` z a U c o ���� u U ct o cn ci z pct U a y w a Notice of Public Hearing Z17-0007 CST Corner Store Notice Is Hereby Given To All Interest Persons, That: The City of Denton Planning and Zoning Commission will hold a public hearing and consider a request by Vandesmith Developers, Ltd. to rezone approximately 0.862 acres from aNeighborhood Residential Mixed Use (NRMU) District to a CM -G District. The subject property is generally located on the north side of Hobson Lane, approximately 340 feet east of Country Club Road in the City of Denton, Denton County, Texas. Properties within 200 feet of the subject property must be notified of the request pursuant to the Texas Local Government Code. As an owner of property within 200 feet of this request, you are invited to make your views known by attending this hearing, emailing the Department of Development Services, or returning this form with your comments prior to the date of the public hearing. If written opposition to the request exceeds 20% (acreage within 200 feet of the property), a three-fourths vote of City Council is required to approve the request. As a courtesy, the City of Denton also sends notification to all physical addresses within a 500 foot radius of the subject property. You are invited, not required, to attend these hearings. If you attend, you will be given an opportunity to speak for or against the change or you may attend only to observe. Any citizen or group of citizens interested in attending the meetings is invited to do so. Applicants and their agents are expected to attend. Agent: Allen Perez, John Thomas Engineering Phone: (214)491-1830 Meeting Details: Wednesday, April 26, 2017, 6:30 pm City Hall, City Council Chambers 215 E McKinney St Denton, TX 76201 The recommendation of the Planning and Zoning Commission will be forwarded to the City Council for final action, which is tentatively scheduled for Tuesday, May 16, 2017, at 6:30 p.m. The Planning and Zoning Commission may recommend and City Council may approve any zoning district which is equivalent or more restrictive than that which is requested and which is deemed consistent with Denton Plan 2030. For more information, please contact the Department of Development Services at (940) 349-8541, or visit www.cityofdenton.com/news-events/notices. "Dedicated to Quality Service" www. cityofdenton. com Department of Development Services Ic',,,, t1woom 215 W. Hickory Street Denton, TX 76201 DENTON (940) 349-8541 www.cityofdenton.com Notice of Public Hearing Z17-0007 CST Corner Store Notice Is Hereby Given To All Interest Persons, That: The City of Denton Planning and Zoning Commission will hold a public hearing and consider a request by Vandesmith Developers, Ltd. to rezone approximately 0.862 acres from aNeighborhood Residential Mixed Use (NRMU) District to a CM -G District. The subject property is generally located on the north side of Hobson Lane, approximately 340 feet east of Country Club Road in the City of Denton, Denton County, Texas. Properties within 200 feet of the subject property must be notified of the request pursuant to the Texas Local Government Code. As an owner of property within 200 feet of this request, you are invited to make your views known by attending this hearing, emailing the Department of Development Services, or returning this form with your comments prior to the date of the public hearing. If written opposition to the request exceeds 20% (acreage within 200 feet of the property), a three-fourths vote of City Council is required to approve the request. As a courtesy, the City of Denton also sends notification to all physical addresses within a 500 foot radius of the subject property. You are invited, not required, to attend these hearings. If you attend, you will be given an opportunity to speak for or against the change or you may attend only to observe. Any citizen or group of citizens interested in attending the meetings is invited to do so. Applicants and their agents are expected to attend. Agent: Allen Perez, John Thomas Engineering Phone: (214)491-1830 Meeting Details: Wednesday, April 26, 2017, 6:30 pm City Hall, City Council Chambers 215 E McKinney St Denton, TX 76201 The recommendation of the Planning and Zoning Commission will be forwarded to the City Council for final action, which is tentatively scheduled for Tuesday, May 16, 2017, at 6:30 p.m. The Planning and Zoning Commission may recommend and City Council may approve any zoning district which is equivalent or more restrictive than that which is requested and which is deemed consistent with Denton Plan 2030. For more information, please contact the Department of Development Services at (940) 349-8541, or visit www.cityofdenton.com/news-events/notices. "Dedicated to Quality Service" www. cityofdenton. com Response Form Z17-0007 CST Corner Store In order for your opinion to be counted, please complete and mail this form to: Department of Development Services Attn: Hayley Zagurski, Project Manager 215 W Hickory Street Denton, TX 76201 You may also email or fax a copy to: Email: Hayley.ZagurskiCcityofdenton.com Fax: (940)349-7707 Project No: Z17-0007 Please circle one: In favor of request Opposed to request Comments: Signature Printed Name Mailing Address City, State Zip Phone Number Email Address Physical Address of Property within 200 feet Q � N Z in Lu y1 N Lu i= Q U o ° o � o ° u o z d V 1 __ - 0 v u _ w u Z -„ 10 g om m - O - T - -O _ o = ° O O o r O o VZ m m c o? 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I m ao v- E r z w o 0 o 0 mu - o o Z� y z v- z o v L o Nm v v Z r E E 2 c - w = _ uw v m m z a - o w m- c m v = v- Q L m E t v o a° z- w Q _ w E _ N o o' 2 w o O w _ N LUW 4 N m .” 3u > 0 u ao .o E O > m r 3 = 3 o E O m a Eom a o .. ° o r .. 0 v E` _ - m m N E N o o ` w ¢ '-�° E a E 0 N_ E Ti v- n° - u O uw ¢ v _ w -x - z ' a _ w u °O m o9 a u vO g voEt m y o> ao m v u m .. o w r 'o oo ^ O w o_ w o m wa O Q o m aLv E > ° = om -a ' v mw a Lz vw u ow n E n z w T H O 'O Y H N w O O O d F 9 N S N - M a O E a w m v Z w Q 0 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'FON Legislation Text File #: ID 17-531, Version: 1 Agenda Information Sheet DEPARTMENT: Internal Audit CM/ ACM: Mayor and Council Date: May 2, 2017 SUBJECT Receive a report, hold a discussion and give staff direction establishing an anonymous reporting mechanism as that relates to the duties of the City Auditor. BACKGROUND City Auditor broached the topic of an anonymous reporting mechanism to strengthen the City's antifraud program on March 28, 2017. At that time, the City Council instructed the City Auditor to bring this topic back as a Work Session item. Currently, according to the Fraud Directive, employees who suspect fraud shall report it to their supervisor or can go outside the normal chain of command. That could include their department director, an Assistant City Manager, the City Manager or a member of the investigation committee. Again, from the Fraud Directive, city employees who are contacted by citizens with evidence or written allegations of fraud shall immediately report it their department director, a member of the investigation committee, an Assistant City Manager or the City Manager. According to the "Report to the Nations on Occupational Fraud and Abuse," put out by the Association of Certified Fraud Examiners, the most common detection method in their study was tips (39.1% of cases), but organizations that had reporting hotlines were much more likely to detect fraud through tips than organizations without hotlines (47.3% compared to 28.2%, respectively). In a survey performed by the Association of Local Government Auditors when asked the question, "Do you have a fraud/waste/abuse hotline?" with 92 audit shops responding, 64% indicated "Yes." With 45 audit shops responding, 44% indicated the hotline was third party, staffed. The second highest response was 27% showing in house, dedicated staff. If the City of Denton does not have an anonymous reporting mechanism we risk losing sources who are not comfortable revealing their identity. OPTIONS The options are as follows: City of Denton Page 1 of 2 Printed on 4/21/2017 powered by I-eg;gl;>karI File #: ID 17-531, Version: 1 1) Continue not having an anonymous reporting mechanism. 2) Have an in-house anonymous reporting mechanism 3) Have an outsourced anonymous reporting mechanism Additionally, the anonymous reporting mechanism can be applied to only Fraud, Waste and Abuse issues or also include Ethics, Compliance and HR complaints. RECOMMENDATION Staff recommends to use the Lighthouse outsourced anonymous reporting mechanism. ESTIMATED [SC C EDU CE D E[PROJECT Staff recommends the minimum one year contract and then reassess the program. PRIOR [ACTION [RE CIE C CC =E=IB EErd CIC = C === The anonymous reporting mechanism was mentioned at the March 28, 2017 City Council Work Session. CISCA C [IN CORMATION Outsourced vendors range from $1,800 - $4,000 annually. BID JN CORMATION City Auditor received three informal bids which are displayed in Exhibit 1 STRATEGIC Y CAN [RE CATIONS C IP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner F 7 7 IRITS Exhibit 1 - City Council Presentation Exhibit 2 - Comparison Study Respectfully submitted: Craig Hametner City Auditor Prepared by: Craig Hametner City Auditor City of Denton Page 2 of 2 Printed on 4/21/2017 powered by I._ag;gl;>karI COMPARISON STUDY Navex Global Lighthouse Red Flag In -House Cost Annual = Annual = Annual = Annual = $4,000; One- $1,822.50 $2,750 $250 Time = $4,890 FWA/AII- Purpose Either Either Either Either Customers 12,500 2,000 350 N/A Municipalities Not Sure 50 5-10 N/A Minimum Length of 2 Years 1 Year 1 Year N/A Contract Feedback Yes Yes Yes No Case Management Yes Yes Yes No Confidentiality Yes Yes Yes Yes Multi -Lingual Yes Yes Yes No In -Business 5 Years 14 Years 7 Years N/A 24/7/365 Yes Yes Yes Yes Reports On -Demand On- On- On - Demand Demand Demand Allegations 1,000,000 12,000 Numerous N/A Annually Live Operator on Duty Yes Yes Yes No