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2017-09-12 Agenda with Backup
City of Denton Meeting Agenda City Council City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton. com Tuesday, September 12, 2017 12:00 PM Work Session Room & Council Chambers After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, September 12, 2017 at 12:00 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. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be given a total of three (3) minutes to address any items he/she wishes that are listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers this item. 2. Requests for clari�ication of agenda items listed on the agenda for Sentember 12, 2017. 3. Work Session Renorts A. ID17-1155 Receive a report, hold a discussion, and give staff direction regarding the Energy Management Organization Financial Review conducted by Deloitte. Attachments: Exhibit 1- Aqenda Information Sheet B. ID 17-980 Attachments: C. ID 17-1019 Attachments: A ID 17-1141 Attachments: Exhibit 2 - Report Exhibit 3 - Presentation Receive a report; hold a discussion, and give staff direction regarding the FY 2017-18 City Manager's Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. Exhibit 1- Aqenda Information Sheet Exhibit 2 - Presentation Receive a report, hold a discussion and give staff direction on the design schedule for the proposed reconstruction of Fire Station 3. Exhibit 1 Aaenda Information Sheet Exhibit 2 Fire Station 3.pdf Exhibit 3 Fire Station 3.pdf Receive a report, hold a discussion, and give staff direction regarding the Vela Soccer Complex. Exhibit 1- Aaenda Information Sheet Exhibit 2 - PowerPoint.pptx Exhibit 3- Enqineer's Probable Cost / Fundinq.pdf Page 1 Printed on 9/8/2017 City Council E. ID 17-523 Attachments F. ID 17-1182 Attachments: Meeting Agenda September 12, 2017 Receive a report, hold a discussion and provide direction regarding staff proposed Perimeter Street Paving Guidelines being developed pursuant to the City's Roadway Impact Fee Ordinance (2016-189). Exhibit 1- AIS for Perimeter St. Pavinq.pdf Exhibit 2- Street Pavinq Guidelines - Survey Summary.pdf Exhibit 3- DRAFT Perimeter Street Pavinq Guidelines.pdf Exhibit 4 - Presentation.pdf Receive a report, hold a discussion, and give staff direction regarding the transition plan for Stoke Denton. Exhibit 1-- Aqenda Information Sheet Exhibit 2-- Stoke Terms and Definitions Exhibit 3 -- Stoke presentation Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. 1. Closed Meeting: A. ID 17-991 Certain Public Power Utilities: Competitive Matters --- Under Texas Govemment Code, Section 551.086. Receive competitive public power competitive information and financial information from staff regarding the proposed FY 2017-2018 operating budget for Denton Municipal Electric ("DME") including without limitation, proposed rates for DME for FY 2017-2018, expected revenues, expenses, commodity volumes, and financial commitments of DME; discuss, deliberate and provide staff with direction. B. ID17-1221 Deliberations regarding Real Property - Under Texas Government Code, Section 551.072; and Consultation with Attorneys - Under Texas Government Code, Section 551.071 Discuss, deliberate and receive information from staff and provide staff with direction pertaining to the potential purchase of various tracts in the City of Denton, Denton County, Texas, and generally located on the west side of the 2000 block to the 2600 block of South Mayhill Road, Denton, Texas as they relate to the widening and realignment of Mayhill. Consultation with the City's attorneys regarding legal issues associated with the potential acquisition or release of real property interests in the tracts described above, and the status and strategy of litigation styled City of Denton, Texas v. Robert P. Donnelly, Cause No. 17-5939-158, currently pending in the 158th District Court of Denton County, Texas, 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 Professional Conduct of the State Bar of page Z Printed on 9/8/2017 City Council Meeting Agenda September 12, 2017 Texas, or would jeopardize the City's legal position in any administrative proceeding or litigation. C. ID 17-1181 Deliberations Regarding Personnel Matters - Under Texas Govemment Code Section 551.074. Discuss and deliberate regarding the evaluation of candidates and the appointment/employment of a City Attorney. A ID 17-1257 Consultation with Attorneys - Under Texas Government Code Section 551.071. Receive information from, consult with, and provide direction to, the City's attorneys relateing to the Council's ability to provide confidential and/or proprietary information to the Public Utility Board where a public discussion associated with these legal matters would clearly 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 Professional Conduct of the State Bar of Texas. ANY F1NAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED 1N A CLOSED MEETING WILL ONLY BE TAKEN 1N AN OPEN MEETING THAT IS HELD 1N COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH F1NAL ACTION, DECISION, OR VOTE IS TAKEN 1N THE CLOSED MEETING 1N ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN 1NT0 A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE 1N A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, 1N ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Special Called Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag "Honor the Texas Flag — I pledge allegiance to thee, Texas, one state under God, one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS A. ID 17-1125 Constitution Week B. ID 17-1160 Denton Public Library's Summer Reading Challenge C. ID 17-1183 Live United Month A ID 17-1184 Blood Cancer Awareness Month Page 3 Printed on 9/8/2017 City Council Meeting Agenda September 12, 2017 3. PRESENTATION FROM MEMBERS OF THE PUBLIC A. Review of procedures for addressing the City Council. B. Receive Scheduled Citizen Reports from Members of the Public. L ID 17-1124 Bob Clifton regarding eradicating parking and pollution. 2. ID17-1153 Willie Hudspeth regarding the Confederate monument on the downtown Denton square. 3. ID 17-1206 Valerie Martinez-Ebers regarding Senate Bi114. 4. ID 17-1207 Lilyan Prado-Carrillo regarding Senate Bi114. C. Additional Citizen Reports - This section of the agenda permits any person not registered for a citizen report to make comments regarding public business on items not listed on the agenda. This is limited to two speakers per meeting with each speaker allowed a maximum of four (4) minutes. Such person(s) shall have filed a"Blue Card" requesting to speak during this period prior to the calling of this agenda item. NOTE: If audio/visual aids during presentations to Council are needed, they must be submitted to the City Secretary 24 hours prior to the meeting. 4. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A— G). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items A— G below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. ID 17-827 Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or designee, to execute generation credit rate agreements with electric utility customers owning renewable energy generating systems larger than 50 kW as needed; and providing an effective date. Attachments: Exhibit 1- Aqenda Information Sheet.pdf Exhibit 2 - Ordinance.pdf B. ID 17-1151 Consider approval of a resolution of the City of Denton, Texas, approving the increase of sick leave accruals from eight (8) hours to ten (10 hours for full-time, non-civil service employees; and providing an effective date. Page 4 Printed on 9/8/2017 City Council Meeting Agenda September 12, 2017 Attachments: C. ID 17-1169 Attachments: Exhibit 1- Aqenda Information Sheet Exhibit 2 - Resolution Exhibit 3- Auqust 22, 2017 Aqenda Information Sheet Exhibit 4- Vacation and Sick Benefits Summarv and Recommended Chanqes b Exhibit 5- Survev of DFW Metroplex Cities' Vacation and Sick Leave Benefits Exhibit 6- Comparison of Current versus Proposed Non-Civil Service Sick Leav Consider approval of the minutes of August l, August 3, August 7, August 8, August 15, and August 22, 2017. Exhibit 1- Auqust 1, 2017 Minutes Exhibit 2- Auqust 3, 2017 Minutes Exhibit 3- Auqust 7, 2017 Minutes Exhibit 4- Auqust 8, 2017 Minutes Exhibit 5- Auqust 15, 2017 Minutes Exhibit 6- Auqust 22, 2017 Minutes A ID 17-1173 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Giving Hope, Inc. for the purpose of Homeless Prevention Assistance; providing for the expenditure of funds therefor; and providing for an effective date. ($450) Attachments: Exhibit 1- Aqenda Information Sheet Exhibit 2- Ordinance - Givinq Hope Inc Exhibit 3- Aqreement - Givinq Hope Inc E. ID 17-1191 Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or designee, to execute Agreements for Interconnection and Parallel Operation of Distributed Generation as needed; authorizing the expenditure of funds therefor; and providing an effective date. Attachments: Exhibit 1- Aqenda Information Sheet.pdf F. ID 17-1193 Attachments: Exhibit 2 - Ordinance Exhibit 3- Aqreement for Interconnection.pdf Consider adoption of an ordinance to authorize the City Manager to execute the Local Project Advance Funding Agreement (LPAFA) with the Texas Depariment of Transportation associated with the US 380 � SL 288 to US 377/US 380 Intersection. Specifically, the addition of a 10-foot sidewalk along US 380 between Mayhill Road and the Greenbelt Park. The City will pay a portion of the estimated cost of $878,874.75. Exhibit 1- Aqenda Information Sheet Exhibit 2- Ord TxDOT Mavhill US 380 Sidewalk Exhibit 3 - LPAFA Aqreement Exhibit 4- US 380 sidepath limits Exhibit 5- US380 10' SDWLK Cost Estimate from TxDOT Exhibit 6- 10' Sidewalk to Greenbelt Park — Presentation Page 5 Printed on 9/8/2017 City Council G. ID 17-1251 Attachments: Meeting Agenda September 12, 2017 Consider adoption of an ordinance of the City of Denton approving a uniform emergency aid agreement for the provisions of aid by Denton Municipal Electric to other electric utilities in times of weather or natural disaster related emergencies; authorizing the city manager, or designee to execute the aid agreement as needed and provide notification to council and public utilities board; authorizing the expenditure of funds therefor; and providing an effective date. Exhibit 1- Aqenda Information Sheet Exhibit 2- Ordinance and Aqreement 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 17-1142 Consider adoption of an ordinance of the City Council of the City of Denton, Texas, amending the establishment of the Downtown Reinvestment Fund; defining and removing the commitment of certain revenues of the City; committing the fund balance remaining in the fund; providing a severability clause; and providing an effective date. Attachments: Exhibit 1- Aqenda Information Sheet B C� Exhibit 2 - Ordinance ID 17-1176 Consider nominations/appointments to the City's Boards and Commissions: Community Development Advisory Committee and Traffic Safety Commission. Attachments: Exhibit 1- Aqenda Information Sheet Exhibit 2 - Nominations Sheet ID 17-1200 Consider appointments to Council Committees. Attachments: Exhibit 1- Aqenda Information Sheet Exhibit 2- 2017-18 Council Committees A ID 17-1256 Consider approval of a resolution specifying the intent of the City of Denton, Texas to exercise or not exercise an option to purchase a certain 18.969 acre tract located in the David Hough Survey, Abstract No. 646, in the City and County of Denton, Texas, as provided in that certain Real Estate Contract - Option to Acquire Additional Real Property dated September 23, 1997, for a purchase price of Four Million One and No/100 Dollars ($4,000,001.00); and providing an effective date. Attachments: 6. PUBLIC HEARINGS Exhibit 1- Aqenda Information Sheet Exhibit 2- Ordinance 97-292 with attachments.pdf Exhibit 3- Resolution To Exercise Option.pdf Exhibit 4- Resolution Not To Exercise Option.pdf A. ID 17-994 Hold a public hearing on a proposal to adopt a tax rate of $0.637856 with a maximum allowable rate of $0.683340 per $100 valuation, which will exceed the lower of the effective or rollback tax rate. Page 6 Printed on 9/8/2017 City Council Meeting Agenda September 12, 2017 Attachments: Exhibit 1- Aqenda Information Sheet Exhibit 2- Tax Rate Notice Exhibit 3 - Presentation B. ID 17-995 Hold a public hearing and receive citizen input on the FY 2017-18 Proposed Budget. Attachments: Exhibit 1- Aqenda Information Sheet Exhibit 2- Budqet PH Notice 7. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting topics, above posted. CERTIFICATE I certify that the above notice of ineeting 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 AND COUNCIL CHAMBERS ARE ACCESSIBLE 1N ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE 1NTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS 1N 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 1NTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. page � Printed on 9/8/2017 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 <,',. www.cityofdenton.com �� � � ����� Legislation Text File #: ID 17-1155, Version: 1 AGENDA CAPTION Receive a report, hold a discussion, and give staff direction regarding the Energy Management Organization Financial Review conducted by Deloitte. City of Denton Page 1 of 1 Printed on 9/8/2017 H�xrsw�:r�;��a�r ��.xy I...�:g;�l�>f;�:;r�T��r City of Denton - � city xall t�F,�� � 215 E. McKinney Street ���j�'^(�� Denton, Texas www.cityofdenton.com DEPARTMENT: CM/ DCM/ ACM: DATE: AGENDA INFORMATION SHEET City Manager's Office Bryan Langley, Deputy City Manager September 12, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding the Energy Management Organization Financial Review conducted by Deloitte. BACKGROUND In 2014, Denton Municipal Electric ("DME") created an in-house division called the Energy Management Organization (EMO) to manage the utility's electric supply portfolio as well as to interface with the Electric Reliability Council of Texas ("ERCOT") to perform all required scheduling regulatory, and settlement activities. A goal of implementing the EMO was to achieve cost savings compared to outsourcing the function to a third party, as had been done previously. To compare costs to the previous contracted company and calculate savings, DME developed a methodology and assumptions. A cost savings estimate for FY2015 and FY2016 was developed and presented to the Strategy Committee / Operating Committee for review in February 2017. In order to perform an independent assessment of the estimated savings and model, staff contracted with Deloitte and Touche, LLC ("Deloitte") to assess and analyze the reported savings of the EMO division. Deloitte, an independent audit and consulting firm, was selected based upon the depth of their team and experience with audit functions, the energy industry, and ERCOT regulations. The scope of work included a retrospective assessment to 1) assess the accuracy and completeness of the final FY2015 and FY2016 savings calculations performed by DME, and 2) assess the model used by DME including the model's inputs, exclusions, and assumptions. Stephen Engler, Managing Director of Energy & Resources, and Timothy Metts, Senior Manager of Energy & Resources, of Deloitte will present their report and findings to the City Council on September 12. The project deliverables are attached (Exhibit 2 and 3). PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item will be presented by Deloitte to the Public Utilities Board (PUB) on Monday, September 1 l, 2017. 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: Public Infrastructure Related Goal: 2.3 Promote superior utility services and facilities EXHIBITS Exhibit 1— Agenda Information Sheet (AIS) Exhibit 2 — Report Exhibit 3 — Presentation Respectfully submitted: Bryan Langley Deputy City Manager Prepared by: Sarah Kuechler Assistant to the City Manager � i��, i � >i� f� �� � � � �����`��� a r J r i I � � rr� �'� r rd � �1 i � %�+'' i �r� � � � �� 1 (� � � �,i(//� i� :� P 1 r i� � p r�+�� % 2 �� i � � ii'� '� �a ,�/���ay� i r ��' r � �.�,,/ �'�r � � �� � l � � � � � uii�. i� d9 � i` ..� 1 �C . r x i� / �� xy �� F � � ��F i g P� .. 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City of Denton Assessment of FY 2015 and FY 2016 EMO Savings September 11, 2017 This report is intended solely for the information and internal use of City of Denton, and is not intended to be and should not be used by any other person or entity. No other person or entity is entitled to rely, in any manner, or for any purpose, on this report. Page 2 of 24 TABLE OF CONTENTS INTRODUCTION..........................................................................................3 $COPE ..........................................................................................................................................................................3 BACKGROUND.............................................................................................3 EXECUTIVE SUMMARY .................................................................................4 MODEL VALIDATION AND SAVINGS CALCULATION RE-PERFORMANCE .......................................................................................4 BENCHMARK COST ANALYSIS ............................................................................................................................................4 EMOCosr REviEw ........................................................................................................................................................5 RECOMMENDED NEXT STEPS ............................................................................................................................................6 EMOMODEL .................................................................................................6 INPUTS.........................................................................................................................................................................6 EXCLUSIONS..................................................................................................................................................................% ASSUMPTIONS...............................................................................................................................................................% CALCULATIONS...............................................................................................................................................................% BenchmarkCost .....................................................................................................................................................7 EMOCost ...............................................................................................................................................................9 EMO Model Cost Savings Calculations .................................................................................................................10 D&T APPROACH .........................................................................................10 PROCEDURES PERFORMED ..............................................................................................................................................ZO Model Validation and Savings Calculation Re-performance ................................................................................10 Benchmark CostAnalysis and Assessment ..........................................................................................................12 Observations........................................................................................................................................................13 EMOCosr REviEw ......................................................................................................................................................18 EMOCost Considerations ....................................................................................................................................18 EMO COST REVIEW CONCLUSION ...................................................................................................................................ZO APPEN DIX ................................................................................................. 21 DetailedSupport Tables .......................................................................................................................................21 This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 3 of 24 �� iiirm°� iiii.,�� � � �°�iiii iiirm ������ We are pleased to provide this report with respect to the cost savings assessment services performed in accordance with our statement of work dated July 26, 2017 by Deloitte &Touche LLP, as requested by the City of Denton. Deloitte & Touche LLP ("D&T") understands that on October 1, 2014, Denton Municipal Electric ("DME") implemented the Energy Management Organization ("EMO") to manage the utility's electric supply portfolio as well as to interface with Electric Reliability Council of Texas ("ERCOT") to perform all required scheduling, regulatory and settlement activities. A component of the decision to implement the EMO was the expectation of cost savings relative to the alternative of outsourcing the function to a 3rd pa rty. On February 2, 2017, DME held a joint meeting with the City of Denton Strategy Committee / Operating Committee to review the cost savings estimated for FY 2015 (October ist 2014 - September 30t" 2015) and FY 2016 (October ist 2015 - September 30t" 2016). While the reported net savings was budgeted at $2.3 million for FY 2015, the final net savings estimate for the 12-month period was $13.5 million. Similarly, the reported FY 2016 net savings budgeted at $5.24 million was eclipsed by the final net savings and an initial estimate of $12.9 million. The total net savings for both FY 2015 and FY 2016 was estimated to be a total of $26.4MM. In order to assess and analyze the reported savings, the City of Denton has engaged D&T to perform a model validation and cost analysis of the EMO Cost Savings Model ("EMO Model") used for the FY 2015 and FY 2016 periods. Illf�� � � III�� iiii°° � iii� � In 2002, prior to the creation of the EMO, the Texas electric market went through a deregulation process. Beginning in the post-deregulation markets, DME utilized services from several different energy companies to procure the power needed to meet end-user demand. In 2011, DME selected a single counterparty as an outsourced energy management provider to procure and deliver energy between FY 2011 until FY 2014. As the initial contract was set to expire, DME contemplated the creation of its own energy management organization to bring the function of power procurement and scheduling in-house. As part of this process and when the contract was up for renewal, DME requested a new quote from the same counterparty to extend the current contract through FY 2016. The quote or cost of power was provided in the form of a fixed heat rate multiplied by an index-based cost of natural gas to arrive at a cost of power. A heat rate is defined as the efficiency of power generation. The origin for the expression is the relative efficiency of the conversion of a fuel to electricity. It is the multiplier applied to natural gas to calculate the price of power for a particular period of time. A heat rate and efficiency have a natural inverse relationship. If there is an increase in plant efficiency, then the lower the heat rate. In other words, the lower the heat rate then the better your plant is running to be more competitive. Depending on the heat rate, it can either increase or decrease your profit margin of running your business. In May 2014, DME received the quote from incumbent counterparty, based on a 15.75 (MMBtu/MWh) heat rate, for a 2-year contract for FY 2015 and FY 2016. For context, the heat rate quote that was provided to DME for services in FY 2011 till 2014 was 11.60. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 4of 24 As part of the decision to decline the extension of the heat rate contract, DME developed a cost savings model and identified estimates ofpotential savings for the City of Denton if it were to authorize and implement theEMO. The EMO Model contains twospecificinputs: 1) Benchmark Cost and 2) EMO Cost. The Benchmark Cost is the estimated and assumed costs of continuing the outsourced energy management model based on a heat ratequote of 15.75 1 and ancillary services and qualified scheduling entity(“QSE”) service feesof approximately $5 per MWh. On the other hand, the EMO Costrepresentedtheall-incost ofdeveloping, implementingand operatingthe daily energy management servicespreviously provided by the outsourced provider. The savings are thedifference between the Benchmark Cost and the EMO Cost. Executive Summary The scope of this engagement included D&T’sassessment and validation of DME’s EMO Model to include the data used in the model and the calculation of the Benchmark Cost and the EMO Cost (described in further detail below).The approach consisted of collecting DME documentationanddata,and performing interviews with members of DME managementand personnelto understand the inputs, exclusions and assumptions associatedwith the development, maintenance, and use of theEMO Model. D&T’s approachfocused on three mainareas: 1.Validating the model and re-performing the savings calculation 2.Analyzing the Benchmark Cost, and 3.Reviewing the EMO Costestimate Model Validation and Savings Calculation Re-performance Under the model validation and savings calculation re-performance, D&Treviewed the inputs and data used in the implementation of the EMOModeland compared them to independently gathered inputs such as historical daily forward pricing and settlement pricesand re- performed the calculations for both the Benchmark and EMO Cost. Based on the re- calculation, D&Tobserved a difference in cost savings of ~$9,484or ~0% for FY 2015 and a difference of $374,166or ~2.91%for FY 2016. Please refer to Table 1 intheModel Validation and Savings Calculation Re-performancesectionfor more detail. Benchmark Cost Analysis One of the biggest factors in the calculation of the Benchmark Cost is the heat rate assumption used in the calculation of the cost of power. The larger the heat rate, the larger the cost of 1 Qualified scheduling entities are responsible for interacting with ERCOT, submitting load bids in the day-ahead and real-time markets and are generally responsible for managing the day to day energy requirements of a load serving entity (“LSE”). QSE services could also include transacting in the forward markets, procuring ancillary services, making and executing operational decisions, and managing certain activities arising from the need to provide electricity to end-users. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 5of 24 power and Benchmark Cost, and all things equal, the larger the cost savings. As part of the analysis, D&Treviewed the benchmark heat rate quoted by thecounterpartyin May2014as well as DME’s analysis on the reasonableness of the quote received.The quote provided by the counterparty was 15.75. Put into context, the average actual heat rate, for all hours of each day in the year leading up to May 2014,was 10.10. D&Tanalyzedthat the quote provided by the counterparty was reasonablebased on an analysis of market dataassuming that DME was only interested in purchasing power during on-peak hours, orfrom 7AM to 11PM each day. However, since the counterparty would,in fact,be responsible for providing power for all hours of the day, including the overnight period, it is D&T’s opinion that the more appropriate heat rate to use would be an Around-the-Clock (“ATC”) heat rate. Additionally, rather than base the quote on a single data point, as the counterparty did in developing the 15.75 heat rate quote, it is more reasonable to look at a broadhistorical data set to derive a fair heat rate to use in the cost of power calculation. D&Tperformed analysis that independently calculatedthe average heat rates usinghistorical dataranging from May 2013 to April 2014 to derive an estimate of the market heat rate for the power to be purchased on the contract. Based ontheanalysis, D&Tobserved that the ATCheat rate was 10.10, as stated above. For the ease of the analysis, the 10.10 heat rate has been rounded to 10.25. In addition to the heat rate, it is typicalto include a premium or profit margin to account for the risk the counterparty is assuming and to compensate them for the outsourced service they are providing. As part of DME’s objectiveanalysis of the counterparty’s 15.75 heat rate quote, it was estimated that the premium/profit margin was approximately 2.36 heat rate adder. For the ease of the analysis, this was rounded to a 2.5 heat rate adder. Using the D&Theat rate analysis and the DME’s premium estimate, D&T performed a sensitivity analysis on the impact of adjusting the heat rate used in the cost savings calculation. In our opinion, a 12.75 benchmark, 10.25 heat rate + 2.50 premium adder, couldrepresent a fair (to both sides) representation of the cost of power and could result in a reduction of ~$13.4 millionin the total net savings for FY 2015 and FY 2016. Thus the $26.4 million cost savings identified above and reported by DME couldbe reduced to approximately $13.0 million across the two years. EMO Cost Review For the EMO cost review,D&Thas reviewed the costsassociated with running the EMO and has compared certain elements that are embedded in a typical commodity trading and risk management (“CTRM”) program. We observed the data provided by DME and analyzed it to understand the breadth and depth of the costs considered by EMO to be core in a typical CTRM program. While the costs provided by DME and included in the cost model are reasonable, there are likely certain costs that are not being considered. In order to build greater confidence in the cost savings estimates, it is important to include costs, both direct and indirect, that arise from development, implementation, and ongoing operation of the EMO. For example, an important aspect of a CTRM program is the appropriate balance of segregation of duties among front (energy traders and marketers), middle (risk control and oversight), and back office (settlements and accounting) personnel.Our review of the organizational structure and the EMO personnel foundthat there could be an imbalance in the ratio of front to middle/back office resources. This could result in additional costs for the ongoing operation of the EMO. Based on D&T’s review of the EMO Cost, we have provided This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 6of 24 additional cost considerations intheEMO Cost Reviewsectionbelow,as well as recommended next steps to consider. Recommended Next Steps Based on D&T’s analysis and assessment of the EMO Model, including the Benchmark Cost and the EMO Costs, we recommend the following next steps in order to develop a more complete understanding of the cost savings, the risk that may or may not have been introduced by the EMO, and the EMO’s ability to effectively manage the risk. 1.FY 2017 benchmark analysis: Consider performing an analysis of alternative benchmark calculationsto be used in the cost savings calculation. This shouldbe undertaken prior to the calculation of the estimated FY 2017 cost savings. 2.Risk profile and hedge strategy assessment: Consider quantifying themarketrisk introduced by the decision move from an outsourced energy management model to an in-house management. 3.EMO risk assessment: Consider having an independent assessment of the EMO’s risk oversightcapabilities that are in place to support the EMO’s missionandenergy management activities, including any anticipated growth plans. EMOModel For FY 2015and FY 2016,the methodology for estimating the cost savings was determined to be the difference between the Benchmark Cost, as calculated under the prior outsourced arrangement but updated with the new heat rate quote, and the costs associated with development, implementation, and operation of theEMO. The reported savings are calculated using the formula below: Annual Estimated EMO Savings =Monthly BenchmarkCost for each fiscal year –Monthly EMO Cost for each fiscal year The model used to estimate the savings is referred to as the EMO Model. Inputs There are two sets of inputs used in the EMO Model:1) Benchmark Costand 2) EMO Cost 1)The Benchmark Costis calculated using the following inputs: Benchmarkquoted heat rate price of 15.75 for each MWh delivered Benchmark quoted QSEservices price of $5.25 for each MWh of DME load The PLATTSGas Daily natural gas pricefor each day in the fiscal year ERCOT Real Time(“RT”)15 minute clearing prices DME load served (as reported to ERCOT) DME purchased supply from power purchase agreement(PPA) (as reported by ERCOT) 2)The EMO Costis calculated using the following inputs: EMO general and administrative costs, including: o Personnel costs o Physical plant depreciated expense This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 7of 24 o Software and Hardware depreciated expense o Supplies and Services Energy and QSE Services costs, including: o Energy from bilateral transactions with over-the-counter counterparties o Broker fees o Financial power transactions o Financialnaturalgas transactions o ERCOT daily charges and credits o ERCOT monthly, quarterly, and semi-annual fees and charges o Congestion Revenue Right (“CRR”)auction costs Exclusions The EMOcost savingsmodel exclusions are: 1)ERCOT CRRs, 2)Select counterparties costs, 3)Renewable Energy Credits (“RECs”), and 4)Denton Power EnergyLandfillcosts The exclusions listed above have been selectively omittedfrom the comparison since they wereborne by DMEprior to the development and implementation of EMO operations and have beenpaid continuouslyby DMEregardless of the implementation of theEMOand the services and power provided by DME’s counterparty. Assumptions The EMO cost savings model assumptions include: 1)The 15.75heat rate was a reasonable, competitivemarket quoteas providedby a willing market participant, and 2 growth rateis5% each year.The ancillary services provided in 2)The ancillary services previous years had anaverage growth rate of ~5% per year. Calculations BenchmarkCost For the period prior to the creation of the EMO, DMEreceiveda monthly invoice from the counterparty for energy services provided. The invoice was in the form of a Microsoft Excel spreadsheet, which contained all the inputs listed abovein the Benchmark Cost Input section. Post-EMO creation, DMEutilized the same spreadsheet format and formulas to mimic the cost 2 Ancillary services are additional costs required to support the generation and delivery of electricity to end-users. Ancillary services are a function of the need to actively manage the generation, distribution and transmission system to ensure safe and reliable delivery of electricity to end-users. They are necessary to support the transmission of electric power from sellers to purchasers, given the obligations of control areas and transmitting utilities within those control areas, to maintain reliable operations of the interconnected transmission system. Ancillary services supplied with generation include load following, reactive power- voltage regulation, system protective services, loss compensation service, system control, load dispatch services, and energy imbalance services. Source: Federal Energy Regulatory Commission (“FERC”) This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 8of 24 calculations and establish Benchmark Cost as if an extension to the original contract was executed. Incremental Energy The DME Load, Gibbons Creek Generation, Wolf Ridge Generation would be provided as reported by ERCOT. Using these inputs provided by ERCOT, the EMO could calculatethe incremental energy. The calculation is as followed: Incremental Energy = DME Load -Gibbons Creek Generation -Wolf Ridge Generation Floating Fuel Cost Once the incremental energy iscalculated, the floating fuel cost be calculated using the floating fuel index, Houston Ship Channel,and the quoted heat rate. The calculation is as follows: Floating Fuel Cost = Incremental Energy X Floating Fuel Index ($/MMBtu) X 15.75 Heat Rate Gibbons Creek Delivery Charge To calculate the Gibbon Creek Delivery charge, EMO downloaded the Gibbons Creek Generation, the North Load Zone Settlement Point Price (SPP)and the Gibbons Creek SPP from ERCOT. The calculation is as follows: Gibbons Creek Delivery Charge = Gibbons Creek Generationx(North Load Zone SPP - Gibbons Creek SPP) Excess Generation Credit To calculate the Excess Generation Credit, EMO downloaded the DME Load, Gibbons Creek Generation, Wolf Ridge Generation, and Gibbons Creek (Settlement Point Price) from ERCOT. The calculation is as follows: Excess Generation Credit = (Gibbons Creek Generation + Wolf Ridge Generation -DME Load) x GibbonsCreek SPP Ancillary Services & QSE Cost To calculate the ancillary services and QSE services, EMO used the DME load multiplied by the ancillary services factor of $5.25/MWh (FY 2015) and $5.51/MWh (FY 2016). The calculation is as follows: AncillaryServices and QSE Cost = DME Load X $5.25/MWh (FY 2015) or $5.51/MWh (FY 2016) Benchmark Cost To calculate the Benchmark Cost, see calculation: This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 9of 24 BenchmarkCost=Floating Fuel Cost + Gibbons Creek Delivery Charge + Excess Generation Credit + Ancillary Services and QSE Cost EMO Cost DME establishedthe EMO under the assumptionthat the management of theenergy portfolio, providing supply, scheduling, hedging and transacting in the forward markets,interfacing with ERCOT,and all required regulatory and settlement activities could be provided ata significantly lowercost when compared to the services provided by other outsourced energy management providers. The EMO Cost for the first year of operation was calculated on a monthly basis within a Microsoft Excelworkbook named “Shadow PL Components” and the final estimated savings calculations and reportswere maintained in the same workbook. The inputsas well as the source origins are listed below: Counterparty Energy Invoice amounts Source: Received Invoices ERCOT CARD (CRR Auction Revenue Distribution) Invoices o Source: ERCOT Invoice Amounts recorded in Settlement Calendar workbook ERCOT CBA (CRR Balancing Account) Invoices o Source: ERCOT Invoice Amounts recorded in Settlement Calendar workbook TOTAL ESTIMATED EMO EXPENSES: o Source: JD Edwards Accounting system via Electric Administration Business Manager ERCOT DAM (Day Ahead Market) Statements o Source: ERCOT Statement Totals recorded in Settlement Calendar workbook ERCOT RTM (Real Time Market) Statements o Source: ERCOT Statement Totals recorded in Settlement Calendar workbook ERCOT CRR Auction Costs o Source: ERCOT Auction award volume and price data as storedin database ERCOT CRR Statements o Source: Query for ERCOT DAM charges and credits applicable to all CRR paths except those from Gibbons Creek which are excluded as an expense incurred by DME prior to the EMO, as stored in Settlement Data Extract database Broker Fees o Source: Broker Invoices ADMIS Bilateral This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 10of 24 o Source: ADMIS reported Cash Flows as recorded in the Settlement Calendar workbook (Tab “ADMIS Journal New”) EMO Model Cost Savings Calculations In order to estimate the savings arising from in-sourcing theenergy management operations, the monthly FY 2015 and FY 2016 Benchmark Cost and EMO Cost were aggregated and used in the formula below to estimate the annual savings. The files containing the calculations are named: Shadow PL components 2015.xlsx and Shadow PL components 2016.xlsx. The calculations areas follows: Annual Estimated EMO Savings = – D&TApproach Procedures performed Model Validation and Savings Calculation Re-performance D&Tmet with DME on June 14,2017 to develop an understanding of the EMO Model. D&T requested several different iterations ofDME documentation and data pertaining to FY 2015 and FY 2016 cost savings calculations,as well as performed follow-up interviews with DME personnel since the initial meeting. For some data elements, D&Twas able toindependently pull data that was publicly available, including some elements of the market price data required for the calculation of the cost savings.For certain data elements, D&Tobserved DME personnel pullinformationdirectly from the appropriate sources,such as ERCOT, in order to provide D&Twith data that could not be independently obtained. Once the available informationwas collected, D&Tindependently inspectedthe calculation logic built intothe Excel workbooks provided by DME. Additionally, the various formulas were reviewed and aligned with D&T’s understanding and expectations of how the model shouldbe executed. For the Benchmark Cost, D&Tdeveloped a workbook to analyzethe EMO calculated monthly costs which were included in the shadow invoice created by the EMO staff. Formonthsthat containeddiscrepancies, D&Tidentified the root cause for the deviation fromthe costs as presented in DME’s EMO Model. For the EMO Cost, D&Tcompiled an inventory of the costs using the files(Shadow PL components 2015.xlsx and Shadow PL components 2016.xlsx) provided by the EMO. D&T requested documents, data and other information to support re-performance of theEMO Cost contained within those two files. Once the files were provided to D&T,we inventoried and cross-examined the EMO Cost that were reported in the Excel files for the respective fiscal year and monthwith the data independently obtained. Each documentobtained was inventoried as it wasreceived and wascategorizedwith the appropriate input type (i.e. bilateralenergy contracts, CRR auction costs, day-ahead energy costs), fiscal year and month. Once D&Treceived a fullinventoryof the documents, data and information requested,D&T reviewed discrepancies with the EMO and documented the root causefor the discrepancy. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 11of 24 Based upon the documents, data, information, and documented discrepancies, D&Tcompared the independent BenchmarkCost, the EMO Cost and the savings with the DME calculated values for FY 2015 and FY 2016 in Exhibit 1below. Exhibit 1: Summary of Model Validation and Savings Calculation Re-performance FY 2015FY 2016 Oct 2014 –Sept 2015Oct 2015 –Sept 2016 Benchmark Cost (as calculated by $46,878,558$40,032,681 D&T*) Benchmark Cost (as calculated by $46,888,317$39,703,505 DME) Difference$(9,759)$329,176 EMO Cost (as calculated by D&T*)$(33,400,290)$(26,793,032) EMO Cost (as calculated by DME)$(33,419,533)$(26,838,022) Difference$19,243$44,990 Savings (as calculated by D&T*)$13,478,268$13,239,649 Savings (as calculated by DME)$13,468,784$12,865,483 Difference in cost savings$9,484$374,166 DME vs Independent ~0%~2.91% Savings % Source: D&Trecalculation of DME cost savings Some of the contributing factors to the differences identified above include, but are not limited to: 1)July and Sept 2016 loads as reported in themodel were different than the source data observed. 2)The Oct 2015 ancillary services input cost was inconsistent with other months in the model. 3)Other differences included auction costs, Day-Ahead Market (DAM)CRR statements, andDA/Real-Time Market (RTM)ERCOT statements. For the individual monthly detail, see tables in the Section 5 Appendix. Exhibit 7:DME Reported FY 15 Cost Savings Exhibit 8:DME Reported FY 16 Cost Savings Exhibit 9:Independent FY 15 Cost Savings Exhibit 10:Independent FY 16 Cost Savings This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 12of 24 Exhibit 11:Differences between Exhibit 7 and 9 (FY 2015) Exhibit 12:Differences between Table 8 and 10 (FY2016) Benchmark Cost Analysis and Assessment Heat Rate Analysis As discussed above, a critical and sensitive component of the cost savings calculation is the heat rate assumption used in the calculation of the Floating Fuel Cost. The higher the heat rate quoted by the counterparty, the higher the Benchmark Cost and all things equal, the higher the cost savings calculated in the EMO Model. The heat rate is the measure of efficiency in the creation of electricity. It is calculated by dividing the price of power (to be delivered in some future period) by the price of natural gas (to be purchased in the same future period). The higher the heat rate, the less efficient the power generation is and thus the more costly the power. The lower the heat rate, the more efficient power generation is and thus the less costly the power. Therefore, it is important to understand context, analysis and market conditions that factor into the determination of a reasonable heat rate to be used in the cost savings calculation. Some typical considerations include: The time frame and availability of data used in the analysisof the appropriate heat rate The time period during which the power will be provided –on-peak, off-peak, and around-the-clock(“ATC”), and The reasonable premium or profit margin commensurate with the risk being assumed by the counterparty providing the power to DME Given the sensitivity of the cost savings to the heat, D&Tperformed an analysis of historical implied heat rates in order toassess the appropriateness of the 15.75 heat rate quoted by the counterparty and usedby DMEfor the Benchmark Costcalculation. D&T’s analysis was performed based upon quoted forward contract prices provided by an independent third party. A forward contract represents the price that a third party wouldbe willing to sell (or buy) power from another third party for some period of time in the future. These contracts are typically called bilateral contracts between two counterparties. The analysis was performed for all forward contract months from February 2013 until January 2019 and for all market datesfromJanuary 1, 2013 until August 8, 2017. The data used in the analysis included ERCOT North ATC and on-peak prices and Houston Ship Channel (“HSC”)natural gas forward prices.Exhibit 2and Exhibit 3belowcompare the monthlyaveragecalculated heat rate for on-peak and ATC periods, respectively. Note the historical averages do not contain the premium/profit margin included by the counterparty in the heat rate (15.75) used in the Benchmark Cost calculation. Exhibit 13and Exhibit 14located in the Appendix provide the detailed monthly averages used to populate thegraph. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 13of 24 Exhibit 2: On-Peak Heat Rate Analysis 30 As of May 23, 2014: Benchmark = 15.75 heat rate, including premium as quoted 25 bythe counterparty 20 15 Heat Rate 10 Historical Analysis 5 Average On-Peak Heat Rate= 12.26 0 JanFebMarAprMayJunJulAugSepOctNovDec 2013201420152016201720182019 Exhibit 3: Around-the-Clock Heat Rate Analysis 30 As of May 23, 2014: Benchmark = 15.75 heat rate, including premium 25 as quoted bythe counterparty 20 15 10 5 Historical Analysis Average On-Peak Heat Rate= 10.1 0 JanFebMarAprMayJunJulAugSepOctNovDec 2013201420152016201720182019 Observations The heat rate provided by the counterparty in May 2014 was reasonable for anon- peak heat rate forthe particulardate on which it was provided; however, it may not be a reasonable representation for the power to be procured by DME from the counterparty since DME would be procuring around-the-clock (“ATC”) power for every hour of the day.If DME only needed to procure power for hours 7AM to 11PM,then an on-peak heat rate would be more appropriate. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 14of 24 The average heat rate using historical contract data for months May 2013 through April 2014 is 12.26 for anon-peak and 10.10for an ATC heat rate. When you extend the historical analysis for a longer period, withdata available through the time of this analysis, the overall average on-peak heat rate, estimated at 11.77, is slightly lower than the one-year analysis D&Tperformed.The corresponding heat rate for ATC power is estimated at 9.65, again lower than in the one-year analysis performed. Even when controlling for the fact that the 15.75 heat rate includes a premium/profit margin and the heat rate analysis shown above does not, there is an observable difference when comparing the 15.75 to the average ATCheat rate. Because of the observations noted above, D&Tperformed ananalysis to assess the sensitivity of the costsavings in theEMO Model with varying heat rateassumptionswhile holding other variables constant. The purpose of this analysis was to demonstrate how changes in the heat rate assumption, both small and large changes, couldimpact the amount of savings reported by DME. Exhibit 4belowdetails the change in the total cost savings, for FY 2015 and 2016 combined, underdifferent heat rate and premium/profit margin assumptions. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 15of 24 Exhibit 4: Adjusted Cost Savings for FY 2015 and FY 2016 under different heat rate assumptions FY 2015 Heat Reduction in Adjusted Budgeted PremiumBenchmark 3 Ratecost savingsCost SavingsCost Savings 13.252.515.75N/AN/A 12.252.514.75($2,449,176)$11,019,608 11.752.514.25($3,673,763)$9,795,021 11.252.513.75($4,898,351)$8,570,433 $2,300,000 10.752.513.25($6,122,938)$7,345,846 10.252.512.75($7,347,526)$6,121,258 9.752.512.25($8,572,113)$4,896,671 9.252.511.75($9,796,701)$3,672,083 FY 2016 Heat Reduction in Adjusted Budgeted PremiumBenchmark 4 Ratecost savingsCost SavingsCost Savings 13.252.515.75N/AN/A 12.252.514.75($2,008,451)$10,857,032 11.752.514.25($3,012,677)$9,852,806 11.252.513.75($4,016,902)$8,848,581 $5,240,000 10.752.513.25($5,021,128)$7,844,355 10.252.512.75($6,025,354)$6,840,129 9.752.512.25($7,029,579)$5,835,904 ($8,033,805)$4,831,678 9.252.511.75 Note: In order to calculate the cost savingsreductionand the adjusted cost savings, the heat rate was the only adjustment made to the Benchmark Cost in the EMO Model holding all other variables constant,includingthe ancillary services. A separate analysis was conduct on the benchmarkancillary servicesto the actual costs in the section below. When examining theexhibit above, abenchmark of 12.75 (10.25 heat rate + 2.50premium) results in ~$7.3 million and~$6.0 million for FY 2015 and FY 2016, respectively,reduction in the cost savingsreported by DME. Adjusting the heat rate assumption used in the model resultsin anadjusted cost savings of ~$6.1 million for FY 2015 and ~$6.8 million for FY 2016. As is demonstrated in the exhibit above, there is a significant reduction in the cost savings when the heat rate is adjusted toaheat rate informed by historical analysisfor FY 2015 and FY 2016. While the analysis above demonstrates that the approach to how the heat rate is constructed can have a large impact on the cost savings reported, it does not consider that there may be alternative benchmarks that could be used in the cost savings calculation. Therefore as a next step, D&T recommends that an analysis of alternative benchmark calculations be 3 The AdjustedCost Savings is calculated by applying the adjusted heat rate to the Benchmark Cost to the Cost Savingscalculated by DME($13,468,784) as presented in Exhibit 1. 4 The AdjustedCost Savings is calculated by applying the adjusted heat rate to the Benchmark Cost to the Cost Savingscalculated by DME($12,865,483) as presented in Exhibit 1. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 16of 24 completedprior to the calculation of the estimated FY 2017 cost savings calculation. DME has developed and analyzed several different approachesto calculatethe benchmarkcostfor FY 2017and have identifieda preferencegoing forward.However, prior to the final determination of the benchmark, an independent analysis should be conducted to assess whether DME’spreferred option or an alternative approach is the more appropriate benchmark to use inthe EMO Modelfor FY2017 andfuture periods. Ancillary Service and Qualified Scheduling Entity Cost Analysis D&Talsoexamined other potential areas that may help contribute to a betterunderstanding of the main drivers ofthe cost savings. As demonstrated above, we observed that the heat rate can impact the savings substantially. The same is also true when examining the ancillary services and qualified scheduling entity (“QSE”) costsas quoted by the counterparty and compared to the actual ancillary service and QSE costs incurred by DME. As described earlier in this report, ancillary service costs are costs incurred to help safeguard, balance, and managethe electricity transmission and distribution system as electricity flows from the generating sources to end users. QSE costs are costsincurred interacting with ERCOT and managing the activities required to supply electricity to end-users. As part of the analysis, we compared the ancillary serviceand QSEcostsquoted by the counterparty, $5.25/MWh (FY 2015)with an assumed 5% growth rate to derive the $5.51/MWh (FY 2016), to the actual costs incurred by DME. DME included the following costs in the QSE cost category: EMO general and administrative costs, including: o Personnel costs o Physical plant depreciated expense o Software and Hardware depreciated expense o Supplies and Services Energy and QSE Services costs, including: o Energy from bilateral transactions with over-the-counter counterparties o Broker fees o Financial power transactions o Financial natural gas transactions o ERCOT daily charges and credits o ERCOT monthly, quarterly, and semi-annual fees and charges o Congestion Revenue Right (“CRR”) auction costs Based on this analysis, we can observe that the ancillary services and QSE costscalculated based on the counterparty quote aresignificantly higher than the actual costs incurred by DME. Exhibit 5shows a summary of the ancillary service cost analysis. Exhibit 5:Comparison of Ancillary Servicesand QSE Costs(A/S) FY 2015FY 2016 Actual Cost Actual Cost BenchmarkBenchmark CostsSavingsCostsSavings EMOCost$7,977,720$4,740,205$3,237,514$8,199,242$4,701,112$3,498,130 This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 17of 24 When examining Exhibit 5above, the estimated ancillary servicecost under the counterparty proposal (Estimated Benchmark) would have been approximately ~$8 million and ~$8.2 million for FY 2015 and FY 2016 respectively. When compared to the actual EMO Costs for each year, this explains ~$3million and ~$3.5million of the reported cost savings reported by DME for FY 2015 and FY 2016 respectively. Whilethere is not a liquid forward market for ancillary services that couldallow a similar analysis that was performed for the heat rate analysis, it does help identify where a substantial portion of the cost savings arise from. As a result of the absence ofa liquid forward market, D&T does not recommend additional analysis or assessment of the ancillary service costs. Benchmark Cost Analysis and Assessment Conclusion As demonstrated by the heat rate and ancillary service analysis above, there are is some subjectivity in the assumptions used to calculate the cost of electricity (heat rate analysis) and the cost for managing and delivering the electricity (ancillary service analysis). When these two analysis are taken together, the cost savings can be described in the following manner: Exhibit 6: Summary of heat rate and ancillary service analysis’ impact on the estimated cost savings FY 2015FY2016 Budgeted cost savings$2,300,000$5,240,000 DME calculated cost savings$13,468,784$12,865,483 Heat rate benchmark adjustment($7,347,526)($6,025,354) Adjusted cost savings$6,121,258 $6,840,129 Portion of cost savings attributable to heat rate54.5%46.8% Adjusted cost savings$6,121,258 $6,840,129 $3,237,514 $3,498,130 Estimated ancillary services (“A/S”) cost savings 52.8%51.1% Portion of adjustedcost savings attributable to A/S As can be seen in Exhibit 6above approximately half of the cost savings can be explained by a heat rate benchmark that is not supported by historical analysis. When the benchmark is adjusted as described earlier in this report, the cost savings are reduced by approximately 54%and 47% for FY 2015 and FY 2016 respectively. Additionally, when you consider that the ancillary service cost quoted by the counterparty is significantly higher than the actual ancillary servicecosts reported by DME, approximately 53% and 51% of the remaining cost savings (after the application of the lower heat rate and the reduction in cost savings) can be explained by the lower actual ancillary service cost. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 18of 24 EMO Cost Review EMO Cost Considerations For the EMO Cost, D&Treviewed the costsassociated with running the EMO, and we focused on assessing the existence and/or absence of particular elements that are typically present in prevalent utilityrisk management programs. We observed the specific data provided by DME and assessed it to understand whether there were potential gaps and unconsidered costs in the EMO Cost calculation. Based on this review, D&Thascompiled a list of considerations Exhibit 6. Exhibit 7:EMO Cost Considerations ElementConsiderationDescription Governance & Strategy GovernanceLegislation and Given the increased scheduling, trading, and hedging regulatory affairs activities required under the EMO operation, it couldbe (ERCOT, CFTC, important to consider legislation and regulatory impacts and FERC, NERC)may likelyrequire some level of oversight. It does not appear that this cost is captured in the labor costs. GovernanceRisk oversight, Senior management time should be included as a select senior component of the risk oversight and control framework.It management doesnot appear that this cost is captured in the labor costs. oversight, risk culture GovernanceRisk oversight, While not large, some level of oversight by City management risk management and City council should be included in the risk control and committee, risk oversightcosts.It does not appear that this cost is captured culturein the labor costs. StrategyQuantitative Hedge strategy and program design is a critical component of hedge strategy anenergy management function, especially one that is and hedge trading bilaterally and via an exchange. To facilitate greater program designthan anticipated hedge loss/gains, a defined strategy should be developed and executed properly per the policy or to management business objectives.When done well, this includes a quantitative assessment of different hedge strategies.While it appears that there may be regular discussions regarding the hedge strategy, there is typically a hard dollar cost in the form of consulting services, software/technology, or modeling and simulation tools. ComplianceCompliance The compliance function is an important aspect of a oversightcommodity trading and risk management program.It does not appear that this cost is captured in the labor costs. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 19of 24 ElementConsiderationDescription People Risk ControlMiddle/Back An appropriate amount of risk control and accounting office support personnel is required to provide risk oversight of the front and risk control office activities. As currently configured, it appears that the risk control and oversight resources may be out of alignment oversight with the number of front office or energy marketers. Additional resources couldadd labor cost to the EMO Cost. TechnologyIT and software Whether the commodity trading and risk management development program is highly automated with a full suite of CTRM systems supportor whether the program is facilitated via spreadsheets and ad hoc models, the management of both requires some level of IT support. It does not appear that IT/software development support are fully captured in the EMO Cost. Process ControlsInternal audit A review of activities and controls is typically conducted once and/or regular a year to assess the organization’s controls, design and control reviewseffectiveness.It is unclear whether this cost is captured in the EMO Cost. LiquidityCost of capitalCareful consideration is typically given to the various uses of cash and the cost of deploying that cash to support the CTRM program. This can include margin to support exchange trading, collateral in support of bilateral transactions, and AR/AP for settlements of both financial and physical commodity. It does not appear that the cost of capital is considered in the EMO Cost. Data and Data, software The full cost of data, licenses, risk tools, fees associated with risk toolslicenses, memberships, etc. isimportant to capture and can be a substantial cost to the organization. It appeared from our membership fees review of the transactions that there may be some costs missing that couldbe present in a typical program. System Risk IndependentTypically, organizationshave amiddle office/independent role ReportingMtM, position, calculate daily mark-to-markets for all transactions, develop and risk position reports, provide risk reports, calculate VaR and KPI/KRIs. These are performed to determineappropriate risk reporting oversight of the CTRM program. Additionally, it is typical that Value-at-Risk these reports are prepared via asystem to avoid inefficiencies and human error. It is unclear from our review of the EMO (“VaR”) calculationsCost whether such a role or system exists. This could add significant cost to the EMO Cost. Key Performance Indicators (“KPI”) / Key Risk Indicators (“KRI”) This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Page 20of 24 EMO Cost ReviewConclusion While the list of EMO cost considerationspresented in Exhibit 7above could potentially reduce the cost savings and should be reviewed, this list should not be considered a comprehensive list. D&T reviewed the EMO costs and inquired about some specific aspects of a typical risk management program; however,it is difficult to identify all occurrences of missing costs considerations without a diligent review of the CTRM program and the governance, people, process and technology required to support the activities of the EMO and the energy management function. Additionally, in order to appropriately understand the future (or required) size, function, and capability of the EMO,it is important to understand risk profile, risk appetite, and hedging strategy. Accomplishing these two activities would allow the City to evaluate the potential risksposed by the EMO energy management activities. As such, D&T recommends the following next steps: 1.Risk profile and hedge strategy assessment: Consider quantifying the risk introduced by the decision move from an outsourced energy management model to an in-house management. Specifically, this should involve quantifying the impact of market, credit, and counterparty risk associated with the new activities of the EMO. Additionally, it should involve analyzing the EMO’s hedge strategy, objectives, and should consider additional hedge strategies that could more effective in helping to achieve DME’s risk management objectives. 2.EMO risk assessment: Consider having an independent assessment of the EMO’s current and future capabilities required to support the EMO’s mission, energy management and risk management activities. Thisshould involveinterviewingspecific DME personnel involved in the execution of the program and develop an in-depth understanding of the EMO’s existing activities and capabilities to identify potential gaps. It would also involve discussing and identifying DME’s required future state to help drive recommendations to mitigate the risks introduced by the EMO and its activities. This report is intended solely for the information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Sep SepSep - -- 154,121,2922,685,8811,435,410 16154,121,2922,700,6241,420,667 4,231,6362,511,1921,720,443 AugAug Aug -- - 750,929729,107 5,175,3425,926,271-5,175,3425,904,450- 15165,341,9294,102,2191,239,71015 Jul JulJul - -- 155,225,8874,550,998674,890 155,222,1734,525,151697,022165,536,6834,220,8491,315,834 Jun Jun Jun - - - 154,364,2063,420,819943,386 16 154,365,5953,417,814947,7814,217,8852,508,9491,708,936 May May May - - - 153,102,6471,597,7321,504,915 16 2,770,6662,109,828660,838 153,102,6471,600,0121,502,635 Apr Apr Apr - - - 152,333,4001,372,452960,948 16 3,003,3232,198,713804,611 152,333,4001,372,820960,580 Mar Mar Mar - - - 152,635,9431,704,877931,066 162,617,9351,873,214744,721 152,633,0991,709,550923,549 Feb Feb Feb - - - 153,045,8071,755,2271,290,581 162,306,1431,630,027676,116 153,045,8071,759,1141,286,693 Jan Jan Jan - - - 153,759,2882,212,4941,546,794 16 2,898,1941,759,3511,138,843 153,759,2882,215,8941,543,394 Dec Dec Dec - - - 144,353,2122,974,0101,379,202 152,283,8841,296,153987,731 144,348,4742,972,8491,375,624 Savings Nov Nov Nov - - - Cost Cost Savings 145,695,9493,269,7572,426,192 15 1,907,8301,110,672797,158 145,696,4933,292,3572,404,137 information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. FY 16 FY 15 Oct Oct Oct - - - ed ed 143,065,5841,936,8501,128,734 152,587,3961,516,8541,070,543 143,084,7061,941,8191,142,887 Total46,878,55833,400,29013,478,267 Total39,703,50526,838,02212,865,483 Total46,888,31733,419,53313,468,784 Independent FY 15 Cost Savings DME Report 24DME Report : : : of 8910 5 21 DME CalculationFY 201BenchmarkEMOSavingsDMECalculationFY 2016BenchmarkEMOSavingsIndependentCalculationFY 2015BenchmarkEMOSavings Page Appendix Detailed Support Tables Exhibit Exhibit Exhibit This report is intended solely for the 9 Sep SepSep - -- 14,743302,234105302,12 2,511,2972,022,573 164,533,870 150-14,74316--- Aug AugAug - -- 21,82226,84430,167 164,098,8961,269,877 5,368,773 15021,822-16-3,323- Jul JulJul - -- 3,71425,846 4,216,2911,292,884 165,509,176 15--22,1321627,5084,55822,950 Jun JunJun - -- 164,218,3802,506,3161,712,064 3,0054953,128 1516- 1,389-4,394-2,633 May - MayMay -- 162,770,3312,107,397662,934 2,097 2,280 - 1502,280-163352,431 Apr - AprApr -- 163,003,3232,195,321808,003 3,392 368 151603,392- 0368- Mar - Mar Mar - - 161,866,580753,183 2,619,763 8,461 1,828 2,8447,517 16- 15-6,634 -4,673- Feb - Feb Feb - - 161,627,471673,859 2,301,330 3,887 164,8132,5562,257 15 03,887- Jan - Jan Jan - - 161,756,1871,142,007 2,898,194 (FY 2015) 3,164 3,400 (FY2016) 1603,164- 15 03,400- 9 10 Dec and - Dec Dec and - 7- 151,293,349990,535 2,283,884 2,803 4,7391,1613,578 8 15- 02,803 14--- Nov Exhibit - Nov Nov - - 151,907,5791,108,214799,365 2,207 22,055 152512,458- 1454522,600- information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. Oct - Oct Oct - - 152,618,0791,505,7131,112,366 41,823 30,683 15- -11,140 1419,1224,96914,153 9,483 329,176374,165 Total26,793,03213,239,649 40,032,681 Total- 9,75919,242 Total-44,989- Independent FY 16 Cost SavingsDifferences between Differences between Table 24 : :: of 111213 22 Independent CalculationsFY 2016BenchmarkEMOSavingsDifferenceFY 2015BenchmarkEMOSavingsDifferenceFY 2016BenchmarkEMOSavings Page Exhibit Exhibit Exhibit This report is intended solely for the 10.129.979.909.689.269.1312.0311.8111.3311.14 Average8.139.65Average12.6211.989.1911.77 Peak) - Dec8.447.8287.97.67.44-Dec8.838.939.049.018.728.45 7.878.83 Nov8.337.788.088.087.87.64-Nov8.959.189.229.288.918.65 7.959.03 Oct8.018.488.538.428.157.96-8.26Oct9.359.789.779.719.379.129.52 of ERCOT North ATC) Sep9.89.899.699.439.128.93-9.48Sep11.6011.4811.3611.1610.7710.6011.16 Aug18.0717.316.3616.2215.2215.24-16.40Aug26.0924.4623.2923.2221.8422.0523.49 Monthly Heat Rate Jul14.5714.2813.8-Jul21.0419.3018.7117.3015.9916.26 12.7512.0212.1113.2618.10 (Average Jun-Jun13.2913.14 10.7610.9310.679.899.549.3110.1813.0712.5111.9011.6312.59 Ship Channel May8.868.818.778.628.348.13-8.59May10.169.679.979.819.519.319.74 Apr8.58.798.998.968.688.45-8.73Apr10.189.7710.3810.4410.139.8510.13 Peak / OTC Houston Ship Channel (Average Monthly Heat Rate of ERCOT North On - Mar8.198.578.638.598.348.03-8.39Mar9.709.459.919.819.649.299.64 information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. North ATC / OTC Houston Feb7.798.288.578.688.488.17-8.33Feb9.649.199.809.829.649.309.57 OTC ERCOTOTC ERCOT North On Jan-Jan-9.44 24 8.758.748.657.858.198.138.399.809.669.559.229.199.48 :: of 1415 23 erage Year2013201420152016201720182019AvYear2013201420152016201720182019Average Page Exhibit Exhibit This report is intended solely for the for a When of actual power in excess of supply regardless , the price of . offset demand the financial markets ly and reliable operation of an electric grid. tions where block power is traded. natural gas to calculate used by It is the actual commodity. in the future usually in monthly increments. The value following day. applied to need of end users in order to default fuel time period c multiplier power typically the agree to exchange a commodity for a fixed price needs. generation. delivery of power on the e for electricity at a specific geographical location. value for a specifi information/glossary/ - end user perception of changing market dynamics. ’ f Texas. o price/ . not for profit organization responsible for the order he real time pric defined and sellers - ’ action intended to decrease the , i.e., a i.e., t bilateral market for the , tentional upside risk. , i.e., a information and internal use of the City of Denton, and should not be used or relied upon by any other person or entity. . Its origin was an engineering expression of the relative efficiency of the conversion of a fuel to electricity. It has An in Energy Reliability Council The identification and management of variables that may adversely affect intended results guided by a defined, The bilateral (buyer and seller) financial market in deregulated jurisdic The process of bringing energy from a source to a destination. reflecting buyers – s The financial market The maximum amount of power required by a load for a specified period regardless of duration.ry: The cost of overcoming obstacles in the path of power delivery. The agreed to price in a bilateral transaction. The price is fixed at the point of purchase and does not change. The fuel used to generate power; natural gas is Represents the efficiency of power generation. It is the Daily (LMP) cost plus power pricing venue as determined by supply and demand market forces, historically the average lowest The maximum amount that something can contain, for instance pipeline capacity or generation capacity. A two sided transaction, i.e., a buyer and a seller The amount of energy required to meet , to calculate metrics like heat rates Texas ISO End use of retail power; the consuming customer. Day Ahead Market Locational Marginal Pricing 24 Independent System Operator Intercontinental Exchange. ICE offers market participants a range of trading and risk management services globally. http://www.infinitypowerpartners.com/market of 5 24 Bilateral:Capacity:Congestion:DAM:Demand:Demand Response:that is driving unreasonable high power prices. ISO:In Texas, this is ERCOT.ERCOT:Feedstock:use or notFixed Price:Forward Curve:continually changeHeat Rate:particular period of timemorphed into a financial expression regarding the value of ICE:transacting on the Intercontinental Exchange it is referred to as exchange trading.LMP:Load:Pe ak Demand:Physical DeliveReal Time:cost but with open ended Risk Management:transparent discipline.Wholesale Market: Source: Page Glossary 5 This report is intended solely for the this on 2016 Energy and is not intended to be and should 2015 and FY the City of Denton Denton Municipal Electric’s (“DME”) FY , 2017 th 12 is intended solely for the information and internal use of - th presentation City of Denton Assessment of Management Organization (“EMO”) Cost Savings Model September 11 This not be used by any other person or entity. No other person or entity is entitled to rely, in any manner, or for any purpose, presentation. 1 in of ofof oror an the thewill and audit, Engler by by City respect aspect person express services the outcome Owner, with performed Steve issued any any issued provide by not the theidentifying the by to to to did issues about contact services we upon things, Services standards refer to legal requestedregarding or all relied as other implications engagement for be clarification therefore, hesitate LLP, assessment an to Consulting or assurance legal professional not among and, for . on any deliverables,do any Touche savingsfor, body or intended for & responsibility constitute costinformation activities not Please provide The upon by any other person or entity. . not Standards . the ied are . we services Deloitte on . to did regulatory responsible product\[s\] anddid Owner’s by action the work pronouncements is ,additional and of nor the other the work services respect engagement 2017 to need or in benefit , Statement our disclose and this with 26 you (AICPA) regulatory to the services,if noton statement Board, management July Owner's applicable our described other the with com you . respect in asor that the should dated with presentation deliverable\[s\] for Oversight Accountantswith forth all regarding work Owner regulations serviceswork set accordance solely of Public to DME EMO Cost Savings Model Assessment understood attached in and The examination are advice . assurance sengler@deloitte – Accounting the reviewing of or laws legal as attestation further specifically Certified Owner statement . with orform continuing is as 5206 of regulatory any performed - provide the such Company It to our deliverables or . to . 602 other - were Owner”) except and than review, with provide Public audit 973 any Institute compliance forward matters, at Owner’s pleasedor (“the not the other services future services presentation look aredid the these City of Denton This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel WeaccordanceDentonOurentitydeliverables,OurAmericancompilation,AICPA,opinionWeanytobeensuringWedirectlythis 2 345 13101112131415 -- 5 6 upon by any other person or entity. ied performance - Heat Rate AnalysisAncillary Service CostsSummary Model validation and savings calculation reBenchmark Cost analysisEMO Cost assessment Engagement SummaryRecommended Next Steps ••• BackgroundEngagement ObjectivesAnalysis Agenda •••••This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 3 - to in the net new D&T initial in a (“EMO energy several savings savings . . an 2016 regulatory (“EMO”) net own fromcost FY management Model engaged and 2016 scheduling its of demand Beginning final requested FY of has .and user the . services energy - reported Savings DME , savings scheduling, . Organization end through Denton 2014 the process creation net 2015 Cost expectation of utilized FY party the FY meet renewal, required therd final procurement EMO City 3 to outsourced until for contract a all for Similarly, the was the the an (“DME”) to . upon by any other person or entity. Management up power deregulation ied 2011 by of . as a needed million of EMOcurrent FY was 3 million . contemplated including Electric 2 Energy savings, the the function 5 $ . periods power analysis eclipsed 13 at DME throughthe the function $ between the contract extend 2016 portfolio wascost the reported counterparty Municipal went was to the FY expire, implement and the energy budgeted to procure to bring and supply million single outsourcing when period to Denton market implemented to set was a of 24 . . . deliver 2015 and analyze 5 was $ DME counterparty validation decision electric FY month , and- electric at and million markets, savings 12 the the companies selected 9 activities . same process 2014 alternative of model organization net for , contract Texas the utility’s 12 1 a $ assess the procure this the DME for the of energy to the to budgeted , used of to , initial from . deregulation reported settlement - October 2011 part the perform 2002order component InpostdifferentInproviderAsmanagementhouseArelativeAsquoteOnmanageandTheestimatesavingsestimateIntoModel”) Background••••••••This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 4 - performance - upon by any other person or entity. ied performance Heat Rate Analysis Model Validation and Re EMO Cost Considerations ocument inventory d spreadsheet implementation & independently observed inputs Gather Assess inputs Execute independent calculationsCreate EMO cost Perform independent EMO cost calculation Complete independent analysis of benchmark heat rate quoted as of May 2014Perform historical heat rate analysisCalculate estimated change in savings under different heat rate assumptionsPerform ancillary service cost analysisAssess cost data provided by DME EMOConsider typical energy and risk management infrastructure requirements Model validation and savings calculation re•••••Benchmark Cost analysis••••EMO Cost assessment•• DME EMO Cost Savings AnalysisEngagement Objectives This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 5 )) ERCOT Sept 2016 – $44,990 ~2.91% $329,176 $374,166 $40,032,681 $39,703,505 $13,239,649 $12,865,483 $(26,793,032$(26,838,022 Oct 2015 , and DA/RTM uts and assumptions as previously included by DME. performance - )) Sept 2015 upon by any other person or entity. – ied ~0% $9,484 $19,243 $(9,759) $46,878,558 $46,888,317 $13,478,268 $13,468,784 $(33,400,290$(33,419,533 Oct 2014 costs, DAM CRR statements savings calculation re % performed the Benchmark Cost and EMO cost calculations with the same inp - and calculated by D&T*) validation July and Sept 2016 loads as reported in the model were different than the source data observed.The Oct 2015 ancillary services input cost was inconsistent with other months in the model.Other differences included auction statements. DifferenceDifference Difference in cost savingsDME vs Independent Savings 1.2.3. Benchmark Cost (as calculated by D&T*)Contributing factors to the difference include (but are not limited to): Benchmark Cost (as calculated by DME)EMO Cost (asEMO Cost (as calculated by DME)Savings (as calculated by D&T*) Savings (as calculated by DME) * Note that, for this portion of the engagement, D&T re Model This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel a is 6 . the it Less on price natural prices . that the of zone, based . to fuel prices or 100 means units $ fuel power higher 10 of area This electricity atof . price into takes lower a price it plant power at at particular Or the a . of upon by any other person or entity. power converted . 10 ied power on produce is of the ratio electricity (MW) a of gas) rate plants based as . generating power heat rate generate is power natural of a efficiency . e heat . that calculated unit has (i expressed rate, the plants 1 is 10 of fuel $ plant heat implied of rate create power typically the which . to power cost higher measure as heat are a by gas a or to gas the efficient rates also factor (MMBtu) natural is TheItmoreefficient,HeatofTherefore,naturalgasWhenreferred ••••• What is a heat rate?This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 7 be for . peakpeak - -to on on basis need procuring an an power be ATC for then DME’san the was on PM would on . for . 10 day to 2014 DME supply - based the AM provided6 May self of since in upon by any other person or entity. ied was hour clock power energy hours it could representation - for the . every - which utility provide for on counterparty power the counterparty to reasonable the date a the what power appropriate by was procure be to from more above not (“ATC”) particular be provided DME contract peak, and around the may - needed power clock - it by rate would for , the only - original raterate heat DME peak, off - heatprocuredaroundheat TheHoweverTheincrementalIf On••••This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 8 Dec Nov = 12.26 20132014 Oct 20152018Counterparty Quote Peak Heat Rate - April 2014 – Sep Historical Analysis Average On May 2013 Aug upon by any other person or entity. ied Jul Jun 20142017On-Peak Average May Apr quoted by counterparty Benchmark = 15.75 heat rate, including premium as Mar As of May 23, 2014: Feb 201320162019 Jan peak heat rate analysis 50 - 3025201510 Heat Rate Benchmark Cost analysisOn This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 9 Dec Nov Oct The grey shaded area 20152018Alternative Benchmark cost savings due to the lower heat rate used in the represents the reduction in Benchmark Cost calculation Sep Aug upon by any other person or entity. ied Jul associated with provided the services. in savings. embedded in the heat rate quote by the counterparty to account for risk and profit The blue shaded area represents the premium A benchmark of 12.75 (10.25 + 2.50) results in Jun ~$13.4 million reduction 20142017ATC Average May Apr counterparty Mar quoted by Benchmark = 15.75 heat rate, including premium as As of May 23, 2014: clock (“ATC”) heat rate analysis Feb Historical Analysis - 201320162019Counterparty Quote Average ATC Heat Rate = 10.1 the - Jan 50 3025201510 Heat Rate Benchmark Cost analysisAround This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 10 Savings Savings $5,240,000 $2,300,000 Budgeted Cost Budgeted Cost . . N/A N/A slide 5 slide 5 Savings Savings $9,852,806 $8,848,581 $7,844,355 $6,840,129 $5,835,904 $4,831,678 $9,795,021 $8,570,433 $7,345,846 $6,121,258 $4,896,671 $3,672,083 $10,857,032 $11,019,608 Adjusted Cost Adjusted Cost upon by any other person or entity. ied N/A N/A savings savings ($2,008,451)($3,012,677)($4,016,902)($5,021,128)($6,025,354)($7,029,579)($8,033,805) ($2,449,176)($3,673,763)($4,898,351)($6,122,938)($7,347,526)($8,572,113)($9,796,701) Reduction in cost Reduction in cost FY 2016 $12,865,483) as presented in FY 2015 $13,468,784) as presented on 15.7514.7514.2513.7513.2512.7512.2511.75 15.7514.7514.2513.7513.2512.7512.2511.75 Benchmark Benchmark Savings calculated by DME ( Savings calculated by DME ( 2.52.52.52.52.52.52.52.5 2.52.52.52.52.52.52.52.5 Premium Premium 9.759.25 13.2512.2511.7511.2510.7510.25 9.759.25 13.2512.2511.7511.2510.7510.25 Heat Rate Heat RateThe Adjusted Cost Savings for FY 2016 is calculated by applying the adjusted heat rate to the Benchmark Cost calculation, then comparing to the Cost The Adjusted Cost Savings for FY 2015 is calculated by applying the adjusted heat rate to the Benchmark Cost calculation, then comparing to the Cost • • Benchmark Cost analysisHeat rate analysis This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 11 – to an . 3 and $ need city’s allow from with the the $3,498,130 system ) Cost Savings of comparison would counterparty comes generation 2015 this that the . the ) managing approximately 4,701,112 function (FY on . FY 2016 a Actual Costs$ savings quote, by transmission and 2016 services are users cost /MWh - rate support based (FY DME and 25 . to the end ERCOT 5 by upon by any other person or entity. $ heat of ied $8,199,242 to ancillary Benchmark services /MWh with the 51 for . was calculated 5 required $ for incurred portion distribution Ancillary cost electricity the market costs $3,237,514 . costs Cost Savings of costs interacting toQSE users derive performed - service substantial forward actual to generation, a delivery end and was additional FY 2015 $4,740,205 the Actual Costs to the rate related liquid are athatwhere ancillary reliable than costs services not growth ervices and Qualified Scheduling Entity (“QSE”) costs and is manage . electricity are S % needs identify $7,977,720 Benchmark 5 analysis services higher of safe is there help million Benchmark costs ancillary actively5 . similar 3 AncillarydeliverytoensureQSEelectricityTheassumedThequote$Whileadoes EMO Costs Benchmark Cost analysis Ancillary This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel ••••• 12 an the to of % benchmark significantly 51 is approximately rate 46.8%51.1% and FY2016 by assumption $5,240,000$6,840,129$6,840,129$3,498,130 $12,865,483 ($6,025,354) % heat 53 rate a . by cost (reduced counterparty heat the the by service explained approximately significant be 54.5%52.8% FY 2015 is $2,300,000$6,121,258 $6,121,258 $3,237,514 changing quoted $13,468,784 ($7,347,526) can DME, ancillary upon by any other person or entity. ied cost by when savings actual savings service cost cost lower reported in the the respectively) . of costs ancillaryby half the 2016 difference analysis service FY that the explained , and be 10 . historical ancillary can consider 2015 rate approximately slide savings attributable to A/S by FY you on heat cost actual abovefor savings the when % clock , - supported cost seen 47 adjusted the than be not- and is demonstrated can % Budgeted cost savingsDME calculated cost savingsHeat rate benchmark adjustmentAdjusted cost savingsPortion of cost savings attributable to heat rateAdjusted cost savingsEstimated ancillary services (“A/S”) cost savingsPortion of AsthatAs54aroundAdditionallyhigherremaining ••• Benchmark Cost analysisSummary This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 13 focused People Technology Risk (“VaR”) calculations - at - upon by any other person or entity. Independent MtM, position, and risk reportingValueKey Performance Indicators (“KPI”) / Key Risk Indicators (“KRI”) ied Middle/Back office support and risk control oversightIT and software development support ••••• Process Governance & Strategy Legislation and regulatory affairs (ERCOT, CFTC, FERC, NERC)Risk oversight, senior management oversight, risk cultureRisk oversight, risk management committee, risk cultureQuantitative hedge strategy and hedge program designCompliance oversight Internal audit and/or regular control reviewsCost of capitalData, software licenses, membership fees •••••••• For the EMO Cost, D&T reviewed the costs associated with running the EMO and on assessing the existence and/or absence of particular elements that are typically present in prevalent utility risk management programs. EMO Cost assessment This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 14 a in cost year have EMO, point Deloitte ancillary per not QSE the result differences data by the of may and ) 2 million ( small single 3 that $ a analyzed rate and : only on services operation than costs year rateheat independently further and per relying more heat peak identified - ancillary . when for potential on the than upon by any other person or entity. million ) performed ied an - 1 that 7 ( . actual $ re some vs rather account are rate the costs and and implementation performance counterparty rate - 6 to $gaps re costs heat the DME identified analysis heat savings by the systems by QSE andcreation, of cost between clock and compared -and personnel the of calculation . quoted historical the costs the - reported in when . and EMO elements were as EMO software during services potential savings the costs around two the in thorough to Both drivers by (“D&T”) ana savings . are savings validation due license, : ancillary LLP main cost cost UsingUsing considered cost reviewed TherereductionTheinincurred GovernanceCostsData, two model the Touche 1.2. D&Tbeenincluding Thein&Theservices Engagement Summary•••This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel 15 in to the the risk.risk of should the the steps mission, ability alternative savings This management next of including . EMO’s EMO’s cost savings, assessment quantifying the the energy 2017 Model, analysis cost following and calculation FY an the the . EMO support Consider of EMO, : to independent the savings upon by any other person or entity. outsourced the ied estimated of an activities performing by cost an the recommend required the of having we from in assessment understanding . Consider : introduced assessment used management Costs, move becapabilities calculation Consider and strategy risk been . complete to EMO : the analysis management risk and to decision the have future more hedge the analysis a not the and and house prior - and in calculationsby assessment may Cost benchmark D&T’s an manage or develop management current to risk on profile to 2017 mayundertaken FYbenchmarkbeRiskintroducedmodelEMOEMO’senergy Benchmarkorderthateffectively Recommended Next Steps Based•••This presentation is intended solely for the information and internal use of the City of Denton and should not be used or rel City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-980,Version:1 AGENDA CAPTION Receiveareport;holdadiscussion,andgivestaffdirectionregardingtheFY2017-18CityManager’sProposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Finance DCM: Bryan Langley DATE: September 12, 2017 SUBJECT Receive a report; hold a discussion, and give staff direction regarding the FY 2017-18 Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. BACKGROUND The FY 2017-18 City provided the City Council with a comprehensive overview of the proposed budget at a Budget Work Session on August 3, 2017 and has continued discussions during subsequent work sessions. The purpose of this agenda item is to allow an additional opportunity for questions and dialogue regarding the FY 2017-18 Proposed Budget. Below is the schedule we will follow to adopt the budget and tax rate: nd September 12 2 Public Hearing on Tax Rate Public Hearing on Proposed Budget September 19 City Council Adopts Budget and Tax Rate I look forward to discussing the budget materials in detail with you. If you have any questions, or need additional information, please let me know. STRATEGIC PLAN RELATIONSHIP -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 EXHIBITS Exhibit 1 Agenda Information Sheet Exhibit 2 - Presentation Respectfully submitted: Chuck Springer, 940-349-8260 Director of Finance 18 Budget Discussions - FY 2017 2 - $84,644 - $137,866 - one Community Improvement Service Officer Eliminate FTE in Electric Fund for External Affairs Manager (Public Information) Reduce sponsorship funding from $100,000 to $50,000Move funding and supervision of GIS group of four staff from Electric Fund to Technology Services Fund (charged back to Electric Fund)Eliminate Add in supplemental package for EMS Captain in the Fire Department $165,330 Electric FundGeneral Fund Additional Recommended Changes 3 Current General Fund Projection 4 17 General - discussions with City Council on design ($40,000) FM 2499/Robinson Road FM 2181/Sundown ($400,000)FM 2181/Guyer High School ($400,000)Once this funding is finalized reallocation of these resources Budgeted $840,000 from FY 2016Fund for three new signals TxDOT may fund approximately half of the $840,000 Signal Light Funding Update 5 th 18 budget, tax rolls and - 17 budgets for General Fund - September 12 - th Adoption of tax rate, FY 2017ratification of adopted budgetAmendment of FY 2016(additional one time expenditures) and Electric Fund (to account for no sale of TMPA facility) Public Hearings September 19 Next Steps Questions? City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1019,Version:1 AGENDA CAPTION Receiveareport,holdadiscussionandgivestaffdirectiononthedesignschedulefortheproposed reconstruction of Fire Station 3. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© Agenda Information Sheet DEPARTMENT:Transportation ACM: Mario Canizares Date: September 12, 2017 SUBJECT ..Title Receive a report, hold a discussion and provide direction on the design schedule for the proposed reconstruction of Fire Station 3. ..Body BACKGROUND As part of a City Council presentation on January 10, 2017, regarding the Fire Station 4 construction contract, Council requested that staff establish a schedule providing the opportunity to review design components and related construction costs on future fire station projects. On April 18, Kirkpatrick Architect Studios was awarded a design contract in the amount of $652,000 for the design of Station 3. The reconstruction of Fire Station 4 and Fire Station 3 were approved as part of the 2014 Bond elements of a Fire Department Facilities Study completed in January 2013 that planned for Station 4 to be constructed to accommodate an Engine and a Medic Unit. Staff understands Medic 4 is tentatively approved as part of the FY 2017-18 Budget and staffing for that unit will be partially offset by the SAFER Grant award. The 2013 Facilities Study scoped a larger facility for the reconstruction of Fire Station 3. The facility was scoped to house the existing Engine Company, Medic Unit, and Aircraft Fire Rescue Truck, in addition to a future aerial Ladder Truck (currently unfunded). This scope was included in presentations to the Citizens Bond Committee and subsequently to City Council. The proposed accommodation of an additional Ladder Truck was part of the Facilities Study as it addresses an operational deficiency in capacity as validated by the recent Insurance Services Office (ISO) report. The design for the larger footprint was incorporated into the Fire Departmenfor the new station to be operational in excess of fifty years and adequately serve reasonable expansion projections. The architect recently provided staff with schematic design details, generally 15-20 percent of design. This design level provides spatial relationships, scale and form. Three facility scopes or floor plans were developed. Three options for foundations and two façade options were provided that could be applied to each floor plan. The cost estimates provided at this time are for the schematic design in Scope 1 which is the largest of the three floor plans and the staff recommended scope. Each floor plan differs in initial square footage while maintaining design similarities with the recently completed Station 2, as well as Station 4 that is currently under construction. Scope 1: This option, 16,100 square feet, represents the scope of Station 3 as originally conceived to accommodate existing Station 3 units and the addition of a future Ladder Truck. Scope 1 is the result of the challenge presented to the firefighter design team. The design team applied lessons learned from the construction of Fire Station 2 conditions experienced over the past several months since Station 2 became operational. The design team was asked to identify areas in which square footage could be reallocated, eliminated or more efficiently placed while maintaining a safe and functional facility. Scope 1 is 16,100 square feet with an estimated based base bid of $5,875,000, approximately $365 per square foot. Scope 2: This option represents a short-term savings of $964,406 from Scope 1 by designing the living quarters to accommodate existing Station 3 units only, for a total of 13,457 square feet in the initial phase. (Cost estimates are based on the opinion of probable cost developed for Scope 1, $365 per foot). This scope assumes a Phase II expansion of 1,875 square feet in living quarters at a later date to support the proposed addition of a Ladder Truck once it is funded and put into service. To ensure Option 2 remains viable for future expansion, it will be necessary to maintain the expansion property at the site to accommodate the footprint of the proposed build-out. While it is not possible to accurately estimate the cost of Phase II at an unspecified future date, staff anticipates the total cost of a phased implementation, Phase I + Phase II, to significantly exceed the cost of constructing the fully scoped station as contemplated in Scope 1, as a single construction project. Scope 3: Scope 3 is 12,217 square feet and is estimated at $4,458,105, based on the $365 per square foot cost estimate developed for Scope 1. This option provides a short-term savings of $1,416,894. Scope 3 is similar to Scope 2 in that it proposes short-term savings associated with a two-phase implementation plan by reducing living quarters in Phase I. It further reduces the footprint by eliminating a truck room bay providing only three bays. While Station 3 is designed for more units and personnel than Station 2, it is important to note that this option would have one less truck bay than Station 2. A Ladder Truck can be accommodated with a three truck room bay, however, in the long-term. The permanent reduction of the truck bay is an important operational aspect as c recommended for safety and response time considerations. A Phase II construction project could add firefighter dormitory space but it is not feasible to add an additional truck room bay in Phase II of Scope 3. Similar to Scope 2, subsequent expansions will most likely be more costly than constructing full capacity of the station in a single phase construction plan. Foundation Options: These estimates are based on the design reflected in Scope 1. Option 1A Drilled Pier with Grade Supported Slabs ($410,000) This option is included in the base bid and is acceptable by the architect but the structure may experience some movement, up to one inch vertical movement. Option 1B Drilled Pier with Structural Slabs (+ $190,000 to base) This option is preferred by the architect and would add an additional $190,000 to the estimated base bid of $5,875,000. This option provides the best structural Option 2 Shallow Spread Footings and Grade Supported Slab (- $140,000) This option is the most economical foundation considered, however, is not recommended by the architect due to the potential of one inch of vertical movement of both the spread footings and ground supported slab. This option would provide a cost savings of $140,000 to the estimated base bid cost estimate. Façade Options: Base Bid Traditional Masonry The massing and materials shown in Elevation A (Exhibit 1) and the of masonry and cast stone with divided lite windows indicates that it is firmly tied to its community. The building relies on careful brick detailing to mitigate its mass and scale and creates interest from a neighborhood vehicular perspective. Using a low slope roof behind a parapet is a departure from previous fire stations, but is in keeping with its institutional scale and proximity to the neighborhood. Alternate Elevation Contemporary Glass & Iron Elevation B commitment to transparency and allows citizens the opportunity to see their tax dollars at work while the masonry and aluminum on the façade are readily recognizable as durable f, while simultaneously acknowledging its regional setting by providing ample shade. Staff will facilitate the discussion on this proposal with Council through Exhibit 2. Based on Council direction on the recommended design, Scope 1, staff would work with the Kirkpatrick Studios to bring back an approximate 90-percent design for Council consideration in December 2017. Key City of Denton staff and representatives from the local design firm, Kirkpatrick Studios, will be available to provide additional information as Council may request. OPTIONS Scope 1: 16,100 square foot facility designed to accommodate current Station 3 units and allow additional square footage for living quarters and truck bay for a proposed Ladder Truck to meet future service levels. Cost is estimated at $5,875,000, approximately $365 per square foot Scope 2: Phased construction of a 15,332 square foot facility. Phase I is 13,457 total square feet. Scope 2 total footprint to be reduced from Scope 1 by 768 square feet. Phase II construction would add the 1,875 square feet of additional living quarters at a later date, to accommodate the proposed Ladder Truck. Cost is estimated at $4,910,594, approximately $365 per square foot. Scope 3: Phased construction of a 14,092 total square foot facility designed to accommodate current Station 3 units. Phase I construction is estimated at 12,217 square feet. 1,875 square feet of additional living quarters could be added as part of a Phase II construction project, however, total truck room bays would be capped at three bays requiring stacking of trucks. Cost is estimated at $4,458,105, approximately $365 per square foot. Other options to be considered with each scope are type of foundation, façade and whether the structure will be built to meet LEED standards. ESTIMATED SCHEDULE OF PROJECT Staff is targeting December 2017, to bring forward a 90-percent design concept with an updated opinion of probable cost to City Council for consideration. Final design submittal for building permit is targeted for March 2018, with the award of a construction contract in the Fall of 2018. An estimated construction phase of 18 months would begin thereafter. PRIOR ACTION/REVIEW (Council, Boards, Commissions) December 13, 2016 Station 4 Construction Contract January 10, 2017 Station 4 design process April 11, 2017 Station 3 design process April 18, 2017 Station 3 design contract awarded FISCAL INFORMATION The 2014 Bond Program estimated the reconstruction cost of Station 3 to be $8,620,000. The City of Denton closed on the property in May 2016 in the amount of $1,776,780. In 2016, project funding was transferred from this project in the amount of $1.1 million to offset construction costs for Station 4 and an additional $172,000 was transferred to offset construction costs for the Fire Training Burn Tower. Based on the current opinion of probable cost (Exhibit 3) for the recommended baseline design of $5,875,000 and current project expenditures to date (real estate and design services), the project is demonstrating a short-fall of approximately$1,227,587. The proposed FY 20107-18 Budget includes the sale of $1,275,000 in Certificates of Obligation to complete this project. It is anticipated a more refined cost estimate based on final project design in early Calendar Year 2018, will provide a more refined project cost estimate, prior to issuing additional debt. STRATEGIC PLAN RELATIONSHIP -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: Safe, Liveable & Family-Friendly Community Related Goal: 1.1 Manage financial resources in a responsible manner EXHIBITS 2. Fire Station 3 PowerPoint Presentation 3. Opinion of Probable Cost Respectfully submitted: Mark Nelson Transportation Director , 2017 City Council September 12 FIRE STATION NO. 3 BAYS CHIEF REPLACEMENT ROOM 4 TRUCK9 FIREFIGHTERS2 CAPTAINS1 BATTALIONPOLICE SUBSTATION PROPOSED201716,100 square feet BUILT Fire Station No. 3: Program TRUCK ROOM BAYS 26 FIREFIGHTERS1 CAPTAIN EXISTING FIRE STATION 19715,500 square feet 0.2 ± 1.5591.219 2.978 ± SITE ACREAGE Purchased McCormick Closure Existing Total Fire Station No. 3: Aerial No. 3 Current Station Fire Station No.3 : Site Plan TXDOT Proposed Phase II R.O.W. Additional SpacesFrom Stations No. 2 & 4 Scope 1 - $5,875,000 Fire Station No.3 : Floor Plan Square Feet 16,100 Additional SpacesFrom Stations No. 2 & 4 Scope 2 - $4,910,594 2 Fire Station No.3 : Floor Plan Total Phase 1 Phase - Square Feet Square Feet 1,875 13,457 15,332 Square Feet Additional SpacesFrom Stations No. 2 & 4 Scope 3 - $4,458,105 2 Fire Station No.3 : Floor Plan Total Phase Phase 1- - Feet Square Feet 1,875 Square Feet 12,217 Square 14,092 Bid Fire Station No.3 : Elevation A Elevation A:Included in Base Fire Station No.3 : Elevation B Elevation B:Increase to base by $270,000 $5,875,000 Price Cost $140,000 $410,000 - +$190,000 Included in Base NegligibleNegligibleNegligible Movement Potential Vertical Structural Options SupportedSupported Footing Piers Piers Spread Structural Ground Ground Fire Station No.3 : Probable Cost Acceptable Preferred Not Recommended Foundation: Foundation:Foundation: Slab: Slab: Slab: Options Option 1A Option 1B Option 2 Opinion of Probable Cost $5,875,000 $140,000 + $86,000 - +$190,000 $5,875,000 + $270,000 Summary of Options Scope 1 Fire Station No.3 : Probable Cost Foundation Option 1AElevation A (Masonry)Architect PreferredNot Recommended by Architect Modern Scheme Base Bid Foundation 1BFoundation 2 Elevation BLEED Certification (design) Opinion of Probable Cost $5,875,000 $6,771,613 $6,119,413 $4,847,413 $6,843,220 $8,620,000 ($1,027,587)($1,227,587) $364.91 $71,607 $1,379,445 $4,495,555 $250,000 $652,200 $1,776,780 $1,272,000 $5,875,000 $9,897,587 Summary of Cost ) Fire Station No.3 : Probable Cost and Burn Tower Transfer (Kirkpatrick Per Square Foot PriceSite CostBuilding Cost Opinion of Probable Cost 2014 Bond Estimate Baseline Cost EstimateFF&E Estimate Total Land AcquisitionReal Estate and Design ServicesDesign Cost Station No. 4 Price Preferred Acceptable Increase of $86,000 increase of $270,000- Included in Base Foundation Façade Included in Base Price Facility Components Masonry Contemporary Piers and Structural Included in Base PricePiers & Ground Supported Increase of $190,000Energy Code Certified Bronze Policy Questions Elevation Structural LEED Delayed Service CapacityReduced and Delayed Fire Station No.3 : -- Meets Facility Plan & Provides - ft ft ft Footprint and Function sq sq sq 16,100 Original Design Full Capacity13,457 Phased Expansion 12,217 Phased Expansion Service Capacity Scope 1Scope 2Scope 3 - OCT Initiate Construction est. 18 months Contract Signing bonds and insurance approvals SEPT July - Bids to Council for consideration mid JUL Advertise evaluate bids JUN Fire Station No. 3 Project - Submit construction documents for building permit MAR Finalize construction drawings FEB 12/12/17Present Final Design to Council for consideration DEC Fire Station No.3 : Probable Cost 11/10/17Complete Design Development & update Opinion of Probable Cost NOV Estimated Schedule 9/13/17Start date to complete Design Development SEP Direction - Questions City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1141,Version:1 AGENDA CAPTION Receive a report, hold a discussion, and give staff direction regarding the Vela Soccer Complex. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© Exhibit1 Agenda Information Sheet DEPARTMENT: Parks and Recreation DCM: Bryan Langley Date: September 12, 2017 SUBJECT ..Title Receive a report, hold a discussion, and give staff direction regarding the construction of the G. Roland Vela Athletic Complex. ..Body BACKGROUND/DISCUSSION This project originated in the 2005 CIP program. The original concept called for purchasing 16 acres from the DISD at the C.H. Collins Complex and constructing three lighted soccer fields and a restroom concession building at a cost of $1,600,000. This plan was abandoned when it was determined the proposed area was part of the storm water detention for the complex and the amenities could not be built on that site. Staff began a search for a new location. In 2008, council members requested that Parks pool funds with the Police Department to help purchase the 20 acre site that the McNatt Animal Adoption facility now sits on. The property was purchased in the spring of 2009. In the fall of 2009, Jacobs Engineering was hired to design the project using part of the 20 acres and the area north of the Windsor pond in North Lakes Park. Concept designs were prepared but met with strong opposition when presented to the community who wanted to preserve the proposed site as a natural area. In October of 2012, staff received approval from City Council to purchase a 26-acre tract between Riney Road and the natural area in North Lakes Park at a cost of $1,000,000. In July of 2013, a contract was signed with Dunaway & Associates for the design on the new property. The original intent was to enter and exit from Riney Road. During preliminary review, the City Traffic Engineer instructed Parks to move the parking entrance from Riney Road to the McNatt driveway so that traffic could enter from either direction off Highway 77. This design required the driveway to cross a drainage channel and that change necessitated a Conditional Letter of Map Revision (CLOMR) Study. In the fall of 2014, voters approved an additional $1,333,000 in the CIP for this project to construct a restroom/concession building and a playground. The design for this building was added to the Dunaway contract. Design is now complete and the Engineer’s Estimate of Probable Cost for the total project is $5,143,869. In addition, pro rata fees owed for the construction of water and sewer lines combined with impact and tap fees will bring the total estimated cost for this project to $5,674,499. There is currently $3,169,808 available for this construction. Staff recommends using $1,945,000 that was approved in the 2014 CIP to help fund this project. $945,000 in the 2014 CIP is available for property acquisition. This amount is slightly less than the cost of the land purchased for the Vela project. Use of these funds will expend all dollars allocated in the 2014 CIP for property acquisition. Any additional property purchases will require the use of Park Dedication funds. There is also $1,200,000 approved in the 2014 CIP to develop a Master Plan for the 200-acre Southwest Park at Bonnie Brae and Allred Roads. Staff proposes using $1,000,000 of this funding for the Vela Project and using the remaining funds combined with Parks General Fund dollars, if needed, to complete the Southwest Park Master Plan. Use of these funds will still allow staff to complete a Master Plan, survey and platting for the Southwest Park but no Phase I construction drawings will be developed. If City Council approves this funding, Parks will move forward with bidding the project. If the bids received are greater than identified funding, staff will determine if the difference can be closed using Park Maintenance labor and resources to purchase and install items identified on the alternative bid items list (Exhibit 3). If the gap is too large for this option, staff will come back to Council to request additional funding or to present Council with a smaller project that can be completed with the available funding. ESTIMATED SCHEDULE OF PROJECT Construction of the Vela project will take approximately 12 months after bidding is complete and contracts are signed. FISCAL INFORMATION Various funding sources 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: Safe, Liveable & Family-Friendly Community Related Goal: 3.2 Make Denton a destination for visitors EXHIBITS 1.Exhibit 1 – AIS 2.Exhibit 2 – PowerPoint 3.Exhibit 3 – Engineer’s Probable Cost / Funding Respectfully submitted: Emerson Vorel Director of Parks and Recreation September 12, 2017 2 program Background $1.6 million water detention for the complex and the amenities could not be built on that site. 16 acres purchased from DISD at CH Collins ComplexThree lighted soccer fieldsRestrooms and concession building Estimated cost This plan was abandoned when it was determined the proposed area was part of the storm This project originated in the 2005 CIP Original Concept 3 funds with the Police Department to purchase Background In 2008 Parks and Recreation pooled 20 acres for the proposed animal shelter facility and future park expansion 4 community who wanted to Background natural area. designs were met with strong opposition from the Engineering was hired to design the project using part of the 20 acres property was purchased in the spring of 2009 TheJacobsConceptpreserve the Staff was directed to seek additional site options Riney 5 Background In 2012 staff received approval from City Council to purchase the 26 acres between Road and the natural area for $1.0 million 6 entrance to the parking RineyRoad Background 77 from RineyRoad to the McNattdriveway so that traffic could enter from either In 2013 a contract was signed with Dunaway & Associates for the design on the new propertyThe design intent was to enter and exit from During preliminary review, the City Traffic Engineer instructed movedirection off Highway This design required the driveway to cross a drainage channel and that change necessitated a Conditional Letter of Map Revision (CLOMR) Study 7 5,143,869 (including 10% CurrentStatus ($2,504,691) Engineer’s Estimate of Probable Cost for the project is $ Thecontingency)Additional cost including pro rata fees, impact fees, and tap fees total $530,630Park Gas Well Funds $598,887Bond funds $2,048,135Park System Funds $167,449Park Development Funds $355,337 Estimated Project Cost $5,674,499:Current available funding is $3,169,808:Funding gap of 8 Engineer’s project General Fund dollars, if needed, to developed Plan and the available funding AdditionalFundingOptions allow staff to complete a Master Plan, survey and platting for the proposes using the remaining funds combined with Parks additional property purchases will require the use of Park Dedication funds Use of these funds will This amount is slightly less than the cost of the land purchased for the Vela AnyStaffcomplete the Southwest Park Master Southwest Park but no Phase I construction drawings will be With these additional funds there is still an additional gap of $544,691 between theEstimate of Probable Cost $945,000 of the $1,005,000 from 2014 Bond Program for the purchase of new park land$1,000,000 of the $1,255,000 from the 2014 Bond Program for the development of a master plan for 200 acres at Southwest Park 9 project list NextSteps signed funding the bids received are greater than identified funding, staff will determine if the the gap is too large for this option, staff will come back to Council to request additional If City Council approves this funding, Parks will move forward with bidding the difference can be closed using Park Maintenance labor and resources to purchase and install items identified on the alternative bid items funding or to present Council with a smaller project that can be completed with the availableConstruction of the Vela project will take approximately 12 months after bidding is complete and contracts are 10 Questions Exhibit3 G. Roland Vela Athletic Complex Budget 598,887 Park Gas Well Bond Funds & Interest 2,048,135 167,449 Park System 355,337 Park Land Development Funds $ 3,169,808 Projected Expenses Mobilization 10,000 Clearing and Demolition 25,000 Clearing and Grading 156,000 $ 191,000 Parking Lot (419 Spaces) Drives, and Concrete Curbs 636,120 Drop Off Area Bollards 7,000 Parking Lot Lighting 180,000 Entry Drive including curb 92,340 Entry Drive Culvert 215,000 Concrete Walk/Trail 151,800 $ 1,282,260 Water Line and Service 20,460 Impact Fee 135,550 Tap 16,000 Manifold Tap 12,500 Valt 15,000 Water Prorata 167,194 Sewer Prorata 93,326 Sewer Impact Fee 17,600 Sanitary Sewer Line and Service 26,400 Storm Drainage System 26,600 $ 530,630 Restroom / Concession Construction 700,000 Entry Plaza Concrete 43,065 Restroom Plaza Concrete 41,470 $ 784,535 Sports Field Lighting 775,000 $ 775,000 Large Group Pavilion including Slab, Columns, Lighting 210,000 Playground 150,000 2 Small Group Pavilions including Slab, Columns, Lighting 60,000 Entry 6' Ornamental Fence 28,800 $ 448,800 Projected Expenses Subtotal4,012,225$ Contingency 10%401,222.50$ Projected Expenses Total4,413,448$ Bid Alternates Sports Field Fine Grading, Soil Amendments, and Sod Turf326,550 Core Area Turf- Solid Sod 21,400 Sports Field Fencing- 16', 6', 4' Chain Link142,350 Concrete Mow Strip Under Fence 62,400 Bleachers (8) 72,000 Players Benches (8) 8,000 Irrigation- Sports Fields 140,000 Irrigation-Outside of Sports Fields 65,000 Irrigation- Pump and Control System 80,000 Large Grill (2) 2,000 Site Benches (4) 4,800 6' Picnic Tables (4 tables) 4,000 8' Picnic Tables (6 tables) 7,200 8' ADA Picnic Tables ( 8 tables) 9,600 Litter Receptacles (8) 5,600 Soccer Goals (8) 8,000 Drinking Fountains (2) including water line 20,000 Large Trees (48) 66,600 Shrubs (screening and interior buffer) 22,680 Planting Beds 30,000 Buffer Planting Concrete Mow Strip 11,070 Parking Planting- Concrete Mow Strip 11,970 Buffer Planting Steel Edging 3,990 Hydro Mulch 21,200 Bid Alternate Subtotal $ 1,146,410 Contingency 10% $ 114,641 Bid Alternate Total $ 1,261,051 Projected Expenses Total4,413,448$ Bid Alternate Total $ 1,261,051 Total $ 5,674,499 Funding Available3,169,808$ Additional Funding Option -Bond Program Funding for Future Park Land Purchase950,000$ Additional Funding Option -Bond Program Funding for Southwest Park Master Plan & Design1,000,000$ $ 554,691 Variance City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-523,Version:1 Agenda Information Sheet DEPARTMENT:Engineering Services ACM:Mario Canizares Date:July 18, 2017 SUBJECT Receiveareport,holdadiscussionandprovidedirectionregardingstaffproposedPerimeterStreetPaving Guidelines being developed pursuant to the City’s Roadway Impact Fee Ordinance (2016-189). City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© EXHIBIT 1 City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Capital Projects ACM: Mario Canizares DATE: September 12, 2017 SUBJECT Receive a report, hold a discussion and provide direction regarding staff proposed Perimeter Street Paving Guidelines being developed pursuant to the City’s Roadway Impact Fee Ordinance (2016-189). PURPOSE The purpose of this work session is to brief the Council on the history of the City’s Roadway Impact Fee, explain how the Roadway Impact Fee and Perimeter Street Paving are related, and outline staff’s proposed Perimeter Street Paving Guidelines, which are planned to be added to the City’s Transportation Design Criteria Manual after posting for public review and receiving comments. BACKGROUND The Roadway Impact Fee Ordinance (Ordinance No. 2016-189, including the Roadway Impact Fee Study) was approved by the Council on June 21, 2016, with an effective date of July 5, 2016. Roadway Impact Fees were developed because a number of developments, unaffected by Perimeter Street Paving requirements, were not contributing toward constructing improvements to impacted roadways. Since implementation of Roadway Impact Fees, questions have arisen regarding the application of the fees: A.Didn’t Roadway Impact Fees replace Perimeter Street (streets bordering the development) Paving requirements? No. The ordinance intentionally did not repeal the Perimeter Street Improvement requirements contained in Subchapter 20 of the Development Code. It provided the City with the option to require Perimeter Street Paving and credit those costs against the Roadway Impact Fees or to only collect the Roadway Impact Fees, depending on the specific situation and adopted guidelines. Sec. 4 of the Roadway Impact Fee Ordinance states the ordinance does not limit the City to using other methods authorized under state law to accomplish its purposes; and, “Guidelines may be developed… to administer this Ordinance.” Staff does not recall any statements being made in the Roadway Impact Fee presentations or related responses which indicated “proportionality” and Perimeter Street Paving requirements would go away completely. B.Have the requirements for Perimeter Street Paving changed with implementation of Roadway Impact Fees? Yes. Perimeter Street Paving will be required less frequently and only for specific situations. As provided by the Roadway Impact Fee Ordinance, Engineering has developed draft guidelines for determining when perimeter street improvements will be required, in lieu of only paying an impact fee. They have worked with key members of the development community, the Legal Department and Management to draft guidelines which would be reasonable, fair and equitable. Additionally, the draft guidelines are in line with guidelines used by other cities who have enacted Roadway Impact Fees. Staff surveyed 10 cities who have enacted Roadway Impact Fees and found that all but two require Perimeter Street Paving. One of the two is developing Perimeter Street Paving Guidelines at this time (please see attached Survey Summary at Exhibit 2). Staff has prepared the draft guidelines contained in Exhibit 3 for workshop discussion with the Council. These draft guidelines basically provide for Perimeter Street Paving: 1.When the development’s traffic impact causes the traffic Level of Service (LOS) on an affected perimeter street to drop below LOS D, the development will be required to construct perimeter street capacity proportionate to its impact. 2.(a) When the perimeter street pavement width is less than 22 ft., the development will be required to widen the street to at least 25 ft. of width and resurface the full width with asphalt (no resurfacing if concrete), or (b) When the perimeter street pavement width is less than 22 ft., and the pavement Overall Condition Index (OCI) is below 40, and the street is not scheduled to be reconstructed by the City’s current Capital Improvements Program, the development will be required to reconstruct the street to a minimum of 25 ft. width with curb & gutter (as called for by the Development Code). The City Engineer has the discretion to reduce the width to 24 ft. without curb & gutter if warranted by adjacent conditions or situations. 3.When the opposite side of a perimeter street has been improved with curb & gutter, the development will be required to reconstruct its side of the street with curb & gutter to a maximum additional width of 25 ft. C.If the value of City required Perimeter Street Paving is greater than the total value of the Roadway Impact Fees for a development, will the development receive a “refund” of the overage? No. The Roadway Impact Fee Ordinance provides a mechanism to credit the value of required Perimeter Street Paving, of “Collector Streets” and above, toward any impact fees assessed for that development. However, the ordinance also provides that the total value of “credits” granted by the City for Perimeter Street Paving cannot exceed the total value of the Roadway Impact Fees due from the development (the City cannot “owe” the developer). But, the total value of the required Perimeter Street Paving and any additional required off-site improvements for a development cannot exceed the total value of the “Maximum Assessable Roadway Impact Fees” (the City’s measure of “rough proportionality” per state law). Sec. 7.D of the Roadway Impact Fee Ordinance allows a reduction to the impact fee for “approved construction”…resulting from “contributions of land, improvements or funds to construct system improvements in accordance with the City’s subdivision and development regulations….” System improvements include perimeter street improvements, but do not include street improvements constructed to serve the development, such as turn-lanes into the development. D.Were the City’s Roadway Impact Fees set at or near the Maximum Allowable Assessable Fee (“rough proportionality” allowed by state law)? No. The Council set its Roadway Impact Fees at $2,000 for a single family detached housing unit, while the “Maximum Assessable Roadway Impact Fee” (“proportional cost”) is $6,174 - $10,981 per unit, depending on the ordinance identified Service (geographic) Area of the City. The City’s rate was set at 18 - 32% of the estimated costs of the roadway impacts (Maximum Assessable Fee). Fees for commercial and industrial uses were discounted an additional 25% below residential use. OPTIONS 1.Provide direction to staff on the draft Perimeter Street Paving Guidelines. Direct staff to review the resultant draft guidelines with the Planning & Zoning Board as an amendment to the Transportation Design Criteria Manual, post them for public comment, work to resolve any comments or objections the public might submit, and adopt the guidelines administratively, if all objections are resolved. 2.Option 1, with the additional direction that staff is to report to the Council any major changes made as a result of resolving public comments, prior to administratively adopting the changes. RECOMMENDATION Approve Option 1. ESTIMATED SCHEDULE OF PROJECT Approximately 60 days for presentation of the draft guidelines to the Planning & Zoning Board, posting for public comments, resolving comments and objections, and administrative adoption. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Council approval of the Roadway Impact Fee Ordinance on June 21, 2016. FISCAL INFORMATION N/A 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: Public Infrastructure Related Goal: 2.1 Optimize resources to improve quality of City Roadways EXHIBITS 1.AIS 2.Survey Summary of Perimeter Street Paving Guidelines 3.Draft Perimeter Street Paving Guidelines 4.Presentation Respectfully submitted: Galen Gillum Director of Capital Projects Prepared by: John T. Davis, PE EXHIBIT 2 PERIMETER STREET PAVING GUIDELINES -- SURVEY SUMMARY No Perimeter Perimeter St. St. Paving Perimeter St. Construction Perimeter St. Required; Construction Required if St. is Construction on Only Collect Perimeter St. Required if Thoroughfare Required if St. COMMUNITIES Roadway Construction There is a Plan or on is Unpaved With Roadway Impact Required for Reduction in Road Impact or in Poor Impact Fees Fees all Situations LOS on the St. Fee CIP Condition Cedar Hill X (If TIA indicates LOS is reduced below LOS required by Comp. Plan) Flower X Mound Fort Worth X Frisco X Grand Prairie X Mansfield X X (24 ft. McKinney min.) Mesquite X (developing Perimeter St. Guidelines) Prosper X Rowlett X Denton X X (orlessthan22 ft.) (Proposed) EXHIBIT 3 GUIDELINES FOR PERIMETER STREET IMPROVEMENT REQUIREMENTS Executive Summary: These are guidelines for perimeter street improvement requirements for proposed developments under the new Roadway Impact Fee Ordinance. These guidelines are intended to be general in nature, and in the event that these guidelines conflict with provisions of the Roadway Impact Fee Ordinance No. 2016-189 (the “Ordinance”) or the Denton Development Code (“DDC”), the provisions in the DDC and Ordinance will prevail over these guidelines. Proposed Guidelines: The Roadway Impact Fee Ordinance No. 2016-189 became effective on July 5, 2016. The Ordinance 1 authorizes staff to use its discretion either (1) to collect the roadway impact fee amount, or (2) to require perimeter street improvements for a development consistent with Subchapter 20 of the Denton 2 Development Code. Below, for discussion and approval, are staff’s proposed guidelines to better define when perimeter street improvements will be required, with the cost of those improvements credited against the assessed 3 road impact fee for the development. Credits will only be provided up to the amount of the assessed 4 fee. The guidelines are as follows: 1.Level of Service: For any proposed development that would generate enough traffic to reduce the Level of 5 Service below LOS D on an affected street, the development will be required to construct street capacity enhancements proportionate to the development’s impact. The Denton Development Code currently has a requirement for developments that generate 1,000 vehicle trips per day or 100 trips in a peak hour to submit a traffic study. Developments with this requirement will be required to evaluate the Level of Service for all affected streets to determine the development’s impact. If a development does not generate enough traffic to require a traffic study, then the existing traffic counts plus estimated trips from the current Trip Generation Manual will be used to determine the LOS impact. 2.Safety: a. For any proposed development that is adjacent to an affected perimeter street where the pavement width is less than 22 feet in width, the development will be required to widen the street to at least 25 feet in width (with a 2 in. minimum Type C asphaltic concrete overlay for asphalt pavements and without an overlay for concrete pavements) with appropriate transitions to the existing pavement; or 1 Some smaller developments are exempt from roadway impact fees. The exemption in Sec. 12.B of the roadway impact fee ordinance states, “\[a\] change in use that generates less than 10 times the number of Service Units attributable to the immediately preceding use is exempt from the payment of Impact Fees.” These developments will also be exempt from these perimeter street paving guidelines. 2 If the development has 100 feet or less of frontage on the perimeter street, the development will not be required to improve the street. See DDC Sec. 35.20.2.L.4. 3 The fee is assessed and “locked in” at the time of the final plat recordation. The fee will not change unless there is an increase in service units. The fee is collected at the time the building permit is pulled. 4 Credits are given for facilities identified in the roadway impact fee Capital Improvements Plan, and for facilities (streets classified as a collector or above) that qualify to be included in the Mobility Plan, even if not currently depicted on the Mobility Plan map, where the City has entered into a Credit Agreement. 5 If the LOS is already below a D, the development must improve the LOS to a level D. City of Denton, Guidelines for Perimeter Street Paving Page 1 of 2 EXHIBIT 3 b. If the adjacent affected perimeter street has a pavement width that is less than 22 feet wide and has an Overall Condition Index (OCI) of below 40, and the street is not scheduled to be reconstructed by the City’s current Capital Improvements Program, then the development will be required to reconstruct the entire 25-ft width of the perimeter street to current City standards, which includes curb and gutter, in the ultimate location with appropriate transitions to the existing pavement. If the development is located adjacent to an affected perimeter street that would, in the City Engineer’s opinion and discretion, be sufficient with reconstruction of a 24-ft width with no curb and gutter, then the development may be allowed to pursue this alternative standard. 3.Adjacent Curb and Gutter Improvements: For any proposed development that has an affected perimeter street which is improved to City standards with curb and gutter across from the development, the development is required to construct the perimeter street improvements according to Subchapter 20 of the Denton Development Code by adding curb and gutter improvements and a maximum of 25-ft. width of additional pavement. Example: Hercules Lane below is an example of adjacent and across improved streets. The City reserves the right to participate in the costs of improving the remainder of a perimeter street, if applicable, within its discretion, in accordance with the law, and in the event that adequate funding exists for such contribution. 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McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT:Economic Development CM/ DCM/ ACM: Bryan Langley DATE: September 12, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding the transition plan for Stoke Denton. BACKGROUND (DEC) to the City is continuity of service for the existing 38 member businesses and their 60 employees. On August 25, 2017, City staff hosted a member meeting at Stoke Denton to provide information, answer questions, and introduce Stoke members to the Staff communicated the following: All current Stoke Denton members are welcome to renew their membership agreements with the City when DEC management ends (45% of current members are tech or tech-enabled businesses) Membership pricing structure will not change Operational hours will not change A Request for Proposals will be issued for a new management vendor on an accelerated timeline Two more member meetings will be held on Sept. 8 and Sept. 22 Transition Team/Roles The following City staff are the primary members of the Stoke Denton transition team: Caroline Booth, Director, Economic Development o General oversight and coordination with DEC and relevant City departments; RFP process; liaison to City Council and City management Paul Desjardins, Enterprise Infrastructure Manager, Technology Services: o Technology-related items, on-site presence Jamie Lindsay, Assistant Manager, Customer Service o Customer service-related items, on-site presence Kerry Montz, Assistant Branch Manager (North Branch)/Business Outreach Librarian, Libraries o Programming/events, on-site presence Melissa Kraft (Chief Technology Officer) and Tiffany Thomson (Customer Service Manager) are serving as consultants to the team. Economic Development Department staffer Michelle Coughlin will continue to process payments for rent/utilities and other expenses and serve as liaison to the Martino Group and City Facilities. Economic Development staffer Julie Glover will assume responsibility for social media and website content updates. All Economic Development staff will be available for after-hours event staffing and additional on-site presence, as needed. Legal Considerations Deputy City Attorneys Larry Collister and Jennifer DeCurtis are drafting the following documents necessary for the transition, including: Non-renewal letter to the DEC Fee ordinance Membership agreement and ordinance Special event rental agreement and ordinance Fiscal Considerations Staff is revising the financial reporting structure to provide more accountability for both revenues and expenditures and is working on a detailed operating budget. Stoke Denton Operations The transition team is gathering information about and planning for coverage and/or resolution of the following operational items: Daily Management Programming/Events Marketing/Recruitment Mentor Program Purchase of DEC-owned furniture, fixtures, and equipment currently in the Stoke facility Transfer of website, social media platforms, and space management platforms from the DEC to the City Request for Proposals To facilitate a common understanding of terms related to Stoke Denton, staff has compiled a list of definitions for reference of the Council and the RFP Evaluation Committee (Exhibit 2). The anticipated schedule for the RFP is listed in the Estimated Schedule of Project section below. Members of the RFP Evaluation Committee are: Todd Hileman, City Manager Bryan Langley, Deputy City Manager Aaron Leal, Interim City Attorney Melissa Kraft, Chief Technology Officer Tony Puente, Assistant Director of Finance Karen Smith, Purchasing Manager Caroline Booth, Director of Economic Development NEXT STEP The agreements and ordinances will come before the Council for votes on Sept. 19 to have them in place before Oct. 1. ESTIMATED SCHEDULE OF PROJECT Sept. 12, 2017 Work session on Stoke transition No later than Sep. 15, 2017 Request for Proposals is issued for new management of Stoke Denton Sept. 19, 2017 Fee schedule and membership agreements presented for Council vote Sept. 30, 2017 DEC contract for Stoke Denton management ends Oct. 1, 2017 City management of Stoke Denton begins Oct. 2, 2017 Request for Proposals closed Oct. 6, 2017 Oct. 20, 2017 Preferred vendor selected by Evaluation Committee Nov. 10, 2017 Contract with preferred vendor executed Dec. 2017 Vendor begins management of Stoke Denton PRIOR ACTION/REVIEW (Council, Boards, Commissions) August 22, 2017 Work session presentation on the Stoke Denton management contract with the DEC; in the interim while a Request for Proposals is issued for new management. STRATEGIC PLAN RELATIONSHIP -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: Economic Development Related Goal: 3.3 Promote a business-friendly environment EXHIBITS Exhibit 1 Agenda Information Sheet Exhibit 2 Stoke-related Terms and Definitions Exhibit 3 Presentation Respectfully submitted: Caroline Booth Director of Economic Development Stoke Terms and Definitions ΛbƚƷĻʹ ŷĻƭĻ ğƩĻ ƌźƭƷĻķ źƓ ƚƩķĻƩ ƚŅ ƩĻƌĻǝğƓĭĻ Ʒƚ ƷŷĻ ĭƚƓǝĻƩƭğƷźƚƓ ğĬƚǒƷ {ƷƚƉĻ źƓƭƷĻğķ ƚŅ ğƌƦŷğĬĻƷźĭğƌƌǤ͵Μ HIGH TECH The high-tech sector can be defined as industries having high concentrations of workers in STEM (Science, Technology, Engineering, and Mathematics) occupations.This can include high-tech manufacturing industries, a subset of the goods-producing industry or high- tech service industries. Source: https://www.bls.gov/opub/btn/volume-5/pdf/the-high-tech-industry-what-is- it-and-why-it-matters-to-our-economic-future.pdf http://www.kauffman.org/what-we-do/research/2014/02/declining-business- dynamism-in-the-us-high-technology-sector TECHNOLOGY (TECH) COMPANY A technology (tech) company is a type of business that focuses primarily on the development and manufacturing of technology. Apple, IBM, Lenovo, Huawei, Microsoft, and Oracle, among others, are considered prototypical technology companies. Tech companies build hardware, software, algorithms and platforms. Source: https://en.wikipedia.org/wiki/Technology_company TECH-ENABLED COMPANY Businesses that leverage technology. Tech-enabled companies use the tech tools to enhance their core businesses, and they measure success differently. An e- commerce company by definition, tech-enabled cares about measuring traffic, purchase rates and other ROI indicators. Amazon and Uber are tech-enabled companies. Source: https://www.entrepreneur.com/article/283345# STARTUP/PHASES OF A STARTUP BUSINESS A startup is a newly-established business. It applies to entrepreneurial businesses in any sector, though the term is often associated closely with the technology sector. Phase 1 Idea Stage: This is the very beginning of the business lifecycle, before a startup is even officially in existence. This is when one or more entrepreneurs find other founders and advisors to get early feedback before incorporating. Phase 2 Incorporation/Pre-Seed/Proof of Concept Stage: After a startup is incorporated, a proof of concept (PoC) product or service is built, which is used to gain initial users/customers, and the founders, advisors, and their closest friends/family will 1 invest small amounts of capital to get the PoC into the hands of the first paying of capital funding. Phase 3 Establishing Product/Market Fit: The Seed, Post-Seed, or Bridge funding rounds are typically the first larger rounds of capital led by more established investors (angel investors, venture capitalists) when a startup has a working product and some initial traction. This stage of the business is focused on expanding and refining the product to prove that the product can start taking on an order of magnitude or more additional customers. Only 40% of seed-stage companies survive to raise a Series A round of funding. Phase 4 Market Size and Product Validation: Starting with the Series A round of funding, a startup is now growing as fast as it can to acquire as much of the target market as possible with its products. As revenue and user base expands to match the it will raise additional funding rounds to continue to grow at a very fast pace. Some startups find themselves in the black or even profitable at these stages, but many startups choose to hire more aggressively with venture capital so they can quickly capture a market (timing is everything). After the Series A round, flexibility in how many more rounds should be raised in this phase, but most successful large startups will raise an additional two or three rounds (Series B, Series C, Series D, etc...) Phase 5 Growth: After achieving market saturation, businesses begin to highly optimize their operating costs and begin growing at more predictable market-driven rates. Usually at this stage, startups looking to raise capital will turn to more traditional private equity options, but venture capitalists have also been known to invest in this category lately with more private companies becoming unicorns (startups worth > $1B). Exit This is one of the most important parts of any funded startup. It will not be able to raise money without an effective exit strategy so the investors can reap the rewards of their investment. Exits can occur any time during the overall startup lifecycle, for several reasons, but usually the best outcomes favor an exit slightly before the startup has reached market saturation. The two most common forms of exit are an acquisition by another company, or a public stock offering (or IPO). Due to the high cost and regulations around IPOs, relatively few tech startups make it to that stage, and opt for anacquisition, or stay private and give their stockholders additional liquidity through secondary markets. Having navigated the expansion stage of the business lifecycle successfully, a company should now be seeing stable profits year-on-year. While some companies continue to grow the top line at a decent pace, others struggle to enjoy those same high growth rates. Source: https://www.entrepreneur.com/article/271290 CO-WORKING/CO-WORKING SPACE The use of an office or other working environment by people who are self-employed or telecommuters/remote workers, typically so as to share equipment, ideas, and knowledge. A workspace with flexible structures that is designed for and 2 by people with atypical, new types of work - that is not exclusively for people from one certain company. whole idea of co-working is to bring bright, creative people together and let the ideas collide. Source: http://www.sparkcommons.com/en/blog/read/360767421/what-is-coworking https://en.oxforddictionaries.com/definition/co-working http://www.deskmag.com/en/coworking-spaces-101-a-new-definition INCUBATOR Incubators are designed to help startups stay in business. An incubator physically locates startups in one central work space with many other startup companies. In many cases, the startups in these incubators can all be venture funded by the same investor group. You can stay in the space as long as you need to, or until your business has grown to the scale it needs to relocate to its own space. The mentorship is typically provided by proven entrepreneurial investors, and by shared learnings of your startup CEO peers. Examples include Lightbank and Sandbox Industries in Chicago. Source: https://www.forbes.com/sites/georgedeeb/2014/08/28/is-a-startup-incubator- or-accelerator-right-for-you/#7278a8163d7a ACCELERATOR A startup accelerator is very similar to an incubator, but has some distinct differences. Your time in the space is typically limited to a 3-4 month period, basically intended to jump-start your business and then kick you out of the nest. The cash investment into your business from the accelerator itself is minimal, but your time in the accelerator should largely improve your chances of raising venture capital from a third-party entity after you graduate from the program. Often, accelerators require an equity stake in the business in exchange for their initial investment. Mentorship often comes from entrepreneurs that are affiliated with the accelerator (many of which are proven CEOs, or investors looking for their next opportunity or simply helping the local startup community). Examples include Tech Stars and Y Combinator. Source: https://www.forbes.com/sites/georgedeeb/2014/08/28/is-a-startup-incubator- or-accelerator-right-for-you/#7278a8163d7a FREELANCER A freelancer is self-employed person offering services, usually to businesses and often to multiple clients at a time. The type of work freelancers do varies. Nearly every type of service a business would need could be provided by a freelancer, including (but not limited to), marketing, such as social media marketing, copywriting, and publicity, writing, such as articles and blog posts, technological support, such as web programming and design, creative works such as graphic design, and financial support, such as bookkeeping. Source: https://www.thebalance.com/what-is-freelancing-1794415 3 TELECOMMUTER/REMOTE WORKER An employee who works outside the office, often days. Source: https://www.thebalance.com/what-is-telecommuting-2062113 BOOTSTRAPPING Bootstrapping is a situation in which an entrepreneur starts a company with little capital. An individual is said to be bootstrapping when he or she attempts to found and build a company from personal finances or from the operating revenues of the new company. his happens in Denton a lot. Source: http://www.investopedia.com/terms/b/bootstrap.asp CROWDSOURCING/CROWDFUNDING The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Examples of crowdfunding include Kickstarter, Indiegogo, RocketHub, and investment platforms like 1000 Angels. Source: https://www.forbes.com/sites/tanyaprive/2012/11/27/what-is-crowdfunding- and-how-does-it-benefit-the-economy/#76317bc9be63 ANGEL INVESTOR An angel investor is a person who invests in a business venture, providing capital for start-up or expansion. Angel investors are typically individuals who have spare cash available and are looking for a higher rate of return than would be given by more traditional investments, and usually offer a high affinity or philosophical alignment with early founders. Angels typically invest in the founders and their idea more than the business itself. Source: https://www.thebalance.com/angel-investor-2947066 VENTURE CAPITAL Venture capital is money that is invested to help build new startup firms that often are considered to have both high-growth and high-risk potential. Venture capital funds come from venture capital firms, which comprise professional investors (the venture who understand the intricacies of financing and building newly formed companies. The money that venture capital firms invest comes from a variety of sources, including private and public pension funds, endowment funds, foundations, corporations and wealthy individuals, both domestic and foreign. Those who invest money in venture capital funds are considered limited partners, while the venture capitalists are the general partners charged with managing the fund and working with the individual companies. 4 Source: http://www.businessnewsdaily.com/4252-venture-capital.html B2B Business-to-business is the exchange of products, services or information (aka e- commerce) between businesses, rather than between businesses and consumers. Source: http://searchcio.techtarget.com/definition/B2B B2C Business-to-consumer is business or transactions conducted directly between a company and consumers who are the end-users of its products or services. The business-to-consumer as a business model differs significantly from the business-to-business model, which refers to commerce between two or more businesses. Source: http://www.investopedia.com/terms/b/btoc.asp UNICORN A venture-backed, private equity technology company valued at a billion dollars or more. Source: http://fundingsage.com/what-is-a-unicorn/ 5 Sept. 12, 2017 Economic Development Presentation to Council Stoke Transition Caroline Booth To present information regarding the transition plan for Stoke DentonTo receive direction from Council regarding the transition plan / 9 Objective: 2 All current members can remain in StokePricing structure/operating hours will not changeRFP will be issued for new managementMember meetings on Sept. 8 and 22 Top priority: continuity of service for existing member businessesMember meeting Aug. 25 / 9 Background: 3 Primary: Caroline Booth, Paul Desjardins, Jamie Lindsay, Kerry MontzSupporting: Melissa Kraft, Tiffany Thomson, Michelle Coughlin, Julie GloverLegal: Larry Collister, Jennifer DeCurtisFinance: Chuck Springer, Tony Puente, Dan Galizia Transition Team: / 9 Background: 4 daily managementprogramming/eventsmarketing/recruitmentmentor Programwebsite, social media, and space management platform transfer Legal ConsiderationsFiscal ConsiderationsOperational Considerations / 9 Background: 5 enabled - management, plan with tech/tech lessee, assignment - perform Proposal types accepted:subExperience pertinent to the proposalFinancial backing and evidence of ability to Business focus and metrics Initial Scope of Work drafted / 9 RFP: 6 Dec. 2017 : New manager takes over Todd Hileman, City ManagerBryan Langley, Deputy City ManagerAaron Leal, Interim City AttorneyMelissa Kraft, Chief Technology OfficerTony Puente, Assistant Director of FinanceKaren Smith, Purchasing ManagerCaroline Booth, Director of Economic Development RFP Evaluation Committee Goal / 9 RFP: 7 in December 2017 departmental Transition Team in - Focusing on continuity of service for current membersMultiplaceQuickly issuing an RFP with a goal of new management / 9 Key Points: 8 Caroline Booth Seeking direction regarding the Stoke transition plan 9 / Direction: 9 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-991,Version:1 AGENDA CAPTION Certain Public Power Utilities: Competitive Matters --- Under Texas Government Code, Section 551.086. Receivecompetitivepublicpowercompetitiveinformationandfinancialinformationfromstaffregardingthe proposedFY2017-2018operatingbudgetforDentonMunicipalElectric(ÐDMEÑ)includingwithoutlimitation, proposedratesforDMEforFY2017-2018,expectedrevenues,expenses,commodityvolumes,andfinancial commitments of DME; discuss, deliberate and provide staff with direction. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1221,Version:1 AGENDA CAPTION DeliberationsregardingRealProperty-UnderTexasGovernmentCode,Section551.072;andConsultation with Attorneys - Under Texas Government Code, Section 551.071 Discuss,deliberateandreceiveinformationfromstaffandprovidestaffwithdirectionpertainingtothe potentialpurchaseofvarioustractsintheCityofDenton,DentonCounty,Texas,andgenerallylocatedonthe westsideofthe2000blocktothe2600blockofSouthMayhillRoad,Denton,Texasastheyrelatetothe wideningandrealignmentofMayhill.ConsultationwiththeCity’sattorneysregardinglegalissuesassociated withthepotentialacquisitionorreleaseofrealpropertyinterestsinthetractsdescribedabove,andthestatus andstrategyoflitigationstyled CityofDenton,Texasv.RobertP.Donnelly,CauseNo.17-5939-158,currently th pendinginthe158DistrictCourtofDentonCounty,Texas,whereapublicdiscussionoftheselegalmatters wouldconflictwiththedutyoftheCity’sattorneystotheCityofDentonandtheDentonCityCouncilunder theTexasDisciplinaryRulesofProfessionalConductoftheStateBarofTexas,orwouldjeopardizetheCity’s legal position in any administrative proceeding or litigation. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1181,Version:1 AGENDA CAPTION Deliberations Regarding Personnel Matters - Under Texas Government Code Section 551.074. Discuss and deliberate regarding the evaluation of candidates and the appointment/employment of a City Attorney. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1257,Version:1 AGENDA CAPTION Consultation with Attorneys - Under Texas Government Code Section 551.071. Receiveinformationfrom,consultwith,andprovidedirectionto,theCity’sattorneysrelateingtotheCouncil’s abilitytoprovideconfidentialand/orproprietaryinformationtothePublicUtilityBoardwhereapublic discussionassociatedwiththeselegalmatterswouldclearlyconflictwiththedutyoftheCity’sattorneystothe CityofDentonandtheDentonCityCouncilundertheTexasDisciplinaryRulesofProfessionalConductofthe State Bar of Texas. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1125,Version:1 AGENDA CAPTION Constitution Week City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1160,Version:1 AGENDA CAPTION Denton Public Library’s Summer Reading Challenge City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1183,Version:1 AGENDA CAPTION Live United Month City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1184,Version:1 AGENDA CAPTION Blood Cancer Awareness Month City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1124,Version:1 AGENDA CAPTION Bob Clifton regarding eradicating parking and pollution. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1153,Version:1 AGENDA CAPTION Willie Hudspeth regarding the Confederate monument on the downtown Denton square. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1206,Version:1 AGENDA CAPTION Valerie Martinez-Ebers regarding Senate Bill 4. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1207,Version:1 AGENDA CAPTION Lilyan Prado-Carrillo regarding Senate Bill 4. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-827,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or designee, to execute generation credit rate agreements with electric utility customers owning renewable energy generating systems larger than 50 kW as needed; and providing an effective date. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Denton Municipal Electric CM/ DCM/ ACM: Todd Hileman DATE: September 12, 2017 SUBJECT Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or designee, to execute generation credit rate agreements with electric utility customers owning renewable energy generating systems larger than 50 kW as needed; and providing an effective date. BACKGROUND rate ordinance, the City buys back energy from distributed generation resources through the generation primarily for solar installations, which have typically been residential and smaller commercial sized systems. Schedule DGR also includes two conditions under which the City is not obligated to purchase energy returned to the grid: (1) If the customer-owned generating system is larger than 50 kW; and (2) If the consumption). In these instances, Schedule DGR allows for the City to make special arrangements and contracts as necessary if the City chooses to buy the energy under either of these conditions. In FY 2017, the City received two large-scale commercial solar installation applications that exceed the 50 kW limit, one to be located at the Embassy Suites Hotel and Convention Center and one to be located at the Target retail facility on Loop 288. Staff has reviewed these applications and determined that the recommended course of action would be to develop and execute generation credit rate agreements with each customer in order to allow Schedule DGR to apply to generation from these solar installations. These ordinances will allow the City Manager, or designee, to execute a generation credit rate agreement with these customers, and any others in the future, that have installed qualifying systems over the 50 kW threshold. In addition, this will further aid staff in increasing the efficiency of the distributed generation olar- RECOMMENDATION Staff recommends the City Council adoptthe ordinance authorizing the City Manager, or designee,to execute generation credit rate agreements as needed. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Utilities Board will consider recommending approval on September 11, 2017 (PUB17-168). STRATEGIC PLAN RELATIONSHIP -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: Sustainable & Environmental Stewardship Related Goal: 5.3 Improve energy efficiency and conservation EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance Respectfully submitted: Bryan Langley Deputy City Manager Prepared by: Jessica Rogers Energy Services Manager City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1151,Version:1 AGENDA CAPTION ConsiderapprovalofaresolutionoftheCityofDenton,Texas,approvingtheincreaseofsickleaveaccruals from eight (8) hours to ten (10 hours for full-time, non-civil service employees; and providing an effective date. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Human Resources CM/ DCM/ ACM: Bryan Langley DATE: September 12, 2017 SUBJECT Consider approval of a resolution of the City of Denton, Texas, approving the increase of sick leave accruals from eight (8) hours to ten (10) hours for full-time, non-civil service employees; and providing an effective date. BACKGROUND At the August 22, 2017, City Council meeting, (information from the August nd 22 Council meeting is attached in Exhibits 3 - 5). These recommendations were made in an attempt to The Council was not in support of making changes to the vacation benefits; however, the Council did support the recommended changes to the sick leave accrual benefits for non-civil service employees. As part of their recommendations, the Committee suggested increasing the sick leave accrual for non-civil service employees from eight (8) hours per month to ten (10) hours per month (note: these accruals are for full-time employees. Sick leave accruals for benefitted ½ time and ¾ employees will be prorated). Exhibit 6shows the change in accrual benefits. No changes to the maximum accrual or pay out were recommended. Because t for sick leave accrual, the Sick Leave policy (#111.01) has been revised to reflect the new accrual. Since time is accrued stth on the 1 and 15 of each month, staff is recommending the revisions be effective October 1, 2017. The resolution, which includes a copy of the policy, STRATEGIC PLAN RELATIONSHIP -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 EXHIBITS Exhibit 1 Agenda Information Sheet Exhibit 2 Resolution and Policy #111.01: Sick Leave Exhibit 3 August 22, 2017 Agenda Information Sheet Exhibit 4 Vacation and Sick Benefits Summary and Recommended Changes by Council Ad Hoc Committee Exhibit 5 Exhibit 6 Comparison of Current versus Proposed Non-Civil Service Sick Leave Benefit Accruals Respectfully submitted: Carla Romine Director of Human Resources City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Human Resources CM/ DCM/ ACM: Bryan Langley DATE: August 22, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction on the City Council Employee Benefits Ad Hoc Committee recommendations for vacation and sick leave changes. BACKGROUND vacation and sick leave benefits (reference Exhibit 2 for a summary chart of the current vacation and sick leave benefits). As part of the presentation, st vacation and sick leave benefits compare to other DFW metroplex cities (reference Exhibit 3). The survey ts were less generous. During that meeting, the Council discussed putting together an ad hoc Council Committee in greater detail and make recommendations to the Council on any changes they think need to be made to be better aligned with the metroplex cities. The establishment of the Committee was approved through resolution 2017- 007 on March 7, 2017. Kathleen Wazny, Sara Bagheri, and Keely Briggs were selected to serve on the Committee. Since that time, the following activities have taken place that have lead to the recommendations of the Committee, which are outlined below in this report. March 24, 2017 the Committee met to begin discussions about the vacation and sick leave benefits. During that meeting, the Committee recognized the need and value of being able to review and discuss other City of Denton benefits. April 11, 2017 - Councilmember Wazny, chair of the Committee, requested during the Council meeting that the scope of the Committee be expanded to include review of all City of Denton employee benefits, not just vacation and sick leave. April 18, 2017 - Resolution 2017-014 was approved, which amended resolution 2017-007 to expand the scope of the Committee. Th The resolution included language to dissolve the Committee on May 16, 2017. April 27, 2017 the Committee met for a second time to continue its discussions on vacation and sick leave benefits. During this meeting, the Committee also began discussing the health insurance benefits. The Committee asked the Human Resources staff members to seek input from employees for the Committee to consider before making a final recommendation to the City Council. May 16, 2017 Human Resources (HR) staff met with the Employee Insurance Committee (EIC) to discuss the options the Committee was considering for vacation and sick leave benefit changes (note: these options were sent to the Council in an Informal Staff Report in May of 2017; reference Exhibit 4). During that meeting, possible changes to health insurance benefits and the cost associated with those changes were also shared. The HR staff requested EIC members to seek feedback from employees in the departments whom they represent to determine which options would be best supported. June 9, 2017 feedback from EIC members was due to HR. June 27, 2017 Resolution 2017-024 was approved which re-established the ad hoc Committee. The Committee consisted of Sara Bagheri, Keely Briggs, and John Ryan. July 10, 2017 the Committee met to review the feedback results from employees that the HR staff compiled (reference Exhibit 5) and to further discuss options for changes to vacation and sick leave benefits. During this meeting, the Committee made the recommendations outlined below. The recommendations below show information for regular, full-time employees only. If Council wishes to implement, benefits for ½ and ¾-time employees would have to be calculated. VACATION Њ͵ In addition to the monthly vacation accrual, the City provides 4 hours of bonus time to all regular full-time employees (6 hours for Fire civil service employees) for each year of service beginning on th the 5 anniversary date (e.g., 5 years = 4 hours, 6 years = 8 hours, 7 years = 12 hours, etc.). Note: benefits for Fire civil service employees are different because the City uses 12-hour days to calculate their benefits versus 8-hour days used for all other full-time employees. Instead of unlimited bonus time, the Committee is recommending capping bonus time at 20 years of service. This would result in the maximum bonus accrual of 60 hours for non-civil service and Police civil service employees and 90 hours for Fire civil service employees. Exhibit 6 shows a comparison of current versus proposed vacation accrual, including bonus time, by years of service. The Committee wanted to have a phased implementation. On January 1, 2018, the bonus time would be changed from 4 hours to 2 hours beyond 20 years (for Fire civil service employees, bonus time would be changed from 6 hours to 3 hours), then on January 1, 2019, the bonus hours would be removed altogether beyond 20 years. Ћ͵ rued hours, not to exceed 320 hours (480 hours for Fire civil service employees). The Committee is recommending bifurcating the carry-over hours based on years of service. There would be no change for employees with 10+ years of service with the City. Employees with 10 years of service or less would have carry-over hours changed from 320 hours to 240 hours (for Fire civil service employees, the hours would be changed from 480 to 360). Again, the Committee wanted to have a phased implementation, so on January 1, 2018, the hours would be changed to 280 (420 for Fire civil service employee). Effective January 1, 2019, the hours would be changed to 240 (360 for Fire civil service employees). Ќ͵The City currently pays out accrued vacation hours to an employee leaving the City, not to exceed 320 hours (480 hours for Fire civil service employees) as long as he/she has been employed at least six months, has not been terminated for gross misconduct, and has returned all City property on or The Committee is recommending changing the payout for employees leaving the City from a maximum of 320 hours to a maximum of 240 hours (Fire civil service employees would be changed from a maximum of 480 hours to a maximum of 360 hours). Again, the Committee wanted to have a phased implementation, so on January 1, 2018, the hours would be changed to a maximum of 280 (maximum of 420 hours for Fire civil service employees). Effective January 1, 2019, the hours would be changed to a maximum of 240 (maximum of 360 hours for Fire civil service employees). SICK Њ͵ Non-civil service employees currently accrue 8 hours of sick leave per month, with a maximum accrual of 720 hours. There is no pay out for sick leave to non-civil service employees when they leave employment with the City of Denton. Police civil service employees accrue 10 hours per month, with a maximum accrual of 720 hours. Fire civil service employees accrue 15 hours per month, with a maximum of 1,080 hours. Police and Fire civil service employees are paid accrued sick hours, up to 90 days, as required by Chapter 143 of the Texas Local Government Code. The Committee is recommending increasing sick accrual from 8 hours per month to 10 hours per month for non-civil service employees. This would equate to 15 days per year, which is equivalent to what Police and Fire civil service employees currently receive. There would be no change in sick benefits for civil service employees. Ћ͵ There would be no change in the maximum accrual amounts. Ќ͵ There would be no change in the payout amounts. Exhibit 2 shows a comparison of urrent vacation and sick leave benefits to the proposed changes outlined above. During the August 22, 2017, City Council meeting, staff will be seeking direction from the full Council as to whether or not to implement the recommended changes to vacation and sick leave benefits made by the Committee. If directed to implement, staff will revise the associated policies and include them on a future Council agenda for approval. As far as health insurance, the Committee decided it would be best to let the Council discuss their desired funding level (City portion) yearly during budget discussions instead of looking at the specific plan design options. Once funding was established by Council, staff could determine if changes needed to be made to the plan design. STRATEGIC PLAN RELATIONSHIP -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 EXHIBITS Exhibit 1 - Agenda Information Sheet Exhibit 2 - Vacation and Sick Benefits Summary and Recommended Changes by Council Ad Hoc Committee Exhibit 3 Survey of DFW Metroplex CVacation and Sick Leave Benefits Exhibit 4 May 2017 Informal Staff Report Ad Hoc Committee Update Exhibit 5- Compilation of Employee Feedback Exhibit 6 Comparison of Current versus Proposed Vacation Accrual by Years of Service Exhibit 7 - Power Point Presentation Respectfully submitted: Carla Romine Director of Human Resources Effective Date N/A1/1/18 for new employees; for existing employees, we would have a phased implementation. The bonus time beginning on 1/1/18 would be decreased to 2 hours (3 hours for Fire civil service employees) for years beyond 20; then be removed altogether 1/1/19 for years beyond 20.1/1/18 for new employees; for existing employees, we would have a phased implementation. The carryover for 0 - 10 years would be 280 hours beginning 1/1/18, then would be 240 beginning 1/1/19 (for Fire civil service employees, would be 420 hours beginning 1/1/18, then would be 360 hours beginning 1/1/19).1/1/18 for new employees; for existing employees, we would have a phased implementation. Beginning 1/1/18, employees would be paid up to 280 accrued hours, and on 1/1/19, they would be paid up to 240 accrued hours for Fire civll service employees, would be 420 hours beginning 1/1/18, then 360 hours beginning 1/1/19).1/1/18 for new as well as existing employeesN/AN/A Shift** Fire Civil Service Employees Working No changeCap at 20 years, so the maximum bonus time is 90 hours0 - 10 years = 360 hours 10+ years = 480 hoursAccrued hours up to 360 hoursNo changeNo changeNo change RECOMMENDED CHANGES BY COUNCIL AD HOC COMMITTEE 40 hours** Police Civil Service Employees Working and Fire Civil Service No changeCap at 20 years, so the maximum bonus time is 60 hours0 - 10 years = 240 hours 10+ years = 320 hoursAccrued hours up to 240 hoursNo changeNo changeNo change City of Denton Employees* Non-Civil Service No changeCap at 20 years, so the maximum bonus time is 60 hours0 - 10 years = 240 hours 10+ years = 320 hoursAccrued hours up to 240 hours10 hoursNo changeNo change Shift** Fire Civil Service Employees Working 15 hours6 hours for each year of service, beginning on the fifth anniversary 480 hoursAccrued hours up to 480 hours15 hoursUnlimited Accrued hours up to 1,080 hours Vacation and Sick Benefits Summary and Recommended Changes by Council Ad Hoc Committee 40 hours** Police Civil Service CURRENT BENEFITS Employees Working and Fire Civil Service 10 hours4 hours for each year of service, beginning on the fifth anniversary 320 hoursAccrued hours up to 320 hours10 hours Unlimited Accrued hours up to 720 hours Employees* Non-Civil Service 10 hours4 hours for each year of service, beginning on the fifth anniversary 320 hoursAccrued hours up to 320 hours8 hours720 hoursnone^^ Benefit VACATION Monthly AccrualBonus Accrual Maximum Annual Carry OverPay Out Upon Termination^SICK LEAVE Monthly AccrualMaximum Annual AccrualPay Out Upon Termination* Benefits presented in this chart are for regular, full-time employees. Regular 1/2 time and 3/4 employees receive prorated benefits.**Many of the sick and vacation benefits are mandated by Chapter 143 of the Texas Local Government Code. The mandated benefits per statute are highlighted in yellow.^Pay out upon termination is only allowed if the employee has completed 6 months of employment, has not been terminated for gross misconduct, and has returned all City property on or before issuance of the employee's final pay check.^^Exeption: per policy 111.01, employees who die while in service of the City or while on authorized military leave of absence shall be paid for all unused sick leave not to exceed 90 working days. accrued p to the maximum Employees any unused accrued p to 240 hour accrued hours General Hours Paid When Employee Leaves onths to 5 years of service = up to After 6 months, any unused hoursHired on or before 1/1/2011 with 5 years of service = up to 288 hours Hired on or before 1/1/2011 with 6 m160 hours Hired after 1/1/2011 with 6 months of service = up to 120 hoursAfter 1 year, uAfter 6 months, hoursUp to 320 hoursAfter 6 months, uallowable accrualAfter 1 year, up to 2 times annual accrualAny unused After 1 year, up to 160 hoursAfter 5 years, up to 480 hoursAfter 6 months of employment, up to 320 hours time, - Full depending on , , depending on years of 320 hours 400 hours, depending on hours hours, depending on years of 160 Maximum Carry Over Hours or , 240, or , 320 or 240 hours Executive employees receive 480 hours288 hours240 hours160 hours120 service192 to 352 service160years of service300 hours240years of service480 hours320 hours on years of anniversary th Vacation Accrual hours, depending on years of Annual 60 to 160 hours, depending on years of 4 80 to 1service Executive employees receive 160 hours8service120 to 160 hours, depending on years of service80 to 160 hours, depending on years of service96 to 160 hours, depending on years of service96 to 176 hours, depending on years of service80 to 160 hours, depending on years of service80 to 200 hours, depending on years of service80 to 200 hours, depending on years of service120 to 192 hours, dependingservice120 hours, plus 4 additional hours each year beginning on 5 City VACATION ArlingtonCarrolltonFriscoGarlandGrand PrairieIrvingLewisvilleMcKinneyMesquitePlanoDenton accrued Employees ny unused any unused accrued any unused accrued p to 240 hoursp to 360 hours shift) and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour(24 hour shift)(24 hour shift)(24 hour shift) Hours Paid When Employee Leaves Police and Fire After 6 months, ahoursPoliceAfter 6 months, up to 288 hours FireAfter 6 months, up to 432 hoursPoliceAfter 1 year, u FireAfter 1 year, uPoliceAfter 6 months, hours FireAfter 6 months, hoursPoliceUp to 320 hours FireUp to 480 hours , depending on years of hours, depending on years of hours 160 hours, depending on years of and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift Maximum Carry Over Hours (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) to 320 hourshoursoror 240 Police240 service Fire360 to 480 hours, depending on years of servicePolice288 hours Fire432 hoursPolice240 Fire360 hoursPolice160 Fire240 hoursPolice120service Fire180 service Vacation Accrual rs, depending on years of hou Annual 160 240 hours, depending on years of and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)to 240 hours, depending on years of (24 hour shift) oror Police120 to 160 hours, depending on years of service Fire180 to 240 hours, depending on years of servicePolice120service Fire180 servicePolice120 to 160 hours, depending on years of service Fire180 to 240 hours, depending on years of servicePolice120 to 160 hours, depending on years of service Fire180 servicePolice96 to 160 hours, depending on years of service Fire144 to 240 hours, depending on years of service * * City * VACATION ArlingtonCarrolltonFriscoGarlandGrand Prairie accrualaccrual annual annual p to maximum p to maximum accrued hours ths, u years, up to 480 hours and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) Hours Paid When Employee Leaves PoliceAfter 6 monallowable accrual FireAfter 6 months, uallowable accrualPoliceAfter 1 year, up to 2 X FireAfter 1 year, up to 2 X PoliceAny unused FireAny unused accrued hours PoliceAfter 1 year, up to 160 hours FireAfter 1 year, up to 240 hoursPoliceAfter 5 FireAfter 5 years, up to 720 hours 400 hours, depending on 320 hours, depending on years of 480 hours, depending on years of and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift Maximum Carry Over Hours (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) oror , 320, or Police240 to 352 hours, depending on years of service Fire360 to 528 hours, depending on years of servicePolice240 service Fire360 servicePolice300 hours Fire450 hours240years of servicePolice480 hours Fire720 hours Vacation Accrual hours, depending on years of hours, depending on years of 60 Annual 1 240 288 hours, depending on years of and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)to oror Police120 to 176 hours, depending on years of service Fire180 to 264 hours, depending on years of servicePolice120 service Fire180 servicePolice120 to 200 hours, depending on years of service Fire180 to 300 hours, depending on years of servicePolice120 to 200 hours, depending on years of service Fire180 to 300 hours, depending on years of servicePolice120 to 192 hours, depending on years of service Fire180service * City ** IrvingLewisvilleMcKinneyMesquitePlano Leaves Hours Paid When Employee (24 hour shift) Maximum Carry Over Hours PoliceAfter 6 months, up to 320 hours FireAfter 1 year, up to 480 hours and Fire, 40 hour shift (24 hour shift) Police320 hours Fire480 hours Vacation Accrual Annual additional beginning on 6 and Fire, 40 hour shift anniversaryanniversary thth Police120 hours, plus 4 additional hours each year 5 Fire (24 hour shift)180 hours, plus hours each year beginning on 5 * City Denton *Chapter 143 Civil Service City l l to g a r d okin e f r n , up z i io d r i e w a hop 0 hil with 5 t 9 hours e sick leave wu 0 b d a e l l n 720 hours di a o 960 cee o x sh e e h e p to 160 hours hil up to 432 hoursup to 588 hoursup to 720 hours w o c t up to 300 hours s n w t e Employees r o ee o n y bs a o p to 240 hour e l ty i f v C o ea mp e e l e s = none paid v pay 50%, pays 60%, pays 70%, pays 80%, k r th = up to 960 hours c f ea l si o General years = 2/3 of unused d e ry e c a 3 yea5 years = 1/3 of unused sick leave6 5 years = none paid s viit ly Hours Paid When Employee Leaves i nusa er Retirees Hired on or before 1/1/201years of service = up to Hired after 1/1/2010 = none paidAfter 1 year, uNone paidNone paidNone paidAny accrued time over 240 hours720 hoursIf worked for City a minimum of 5 consecutive years, u0 3 5 6+ years = up to 90 days0 5 years = 6 years = 7 years = 8 years = 9 years = pay 90%, up to 10+ years = pays 100%, not to exceed 720 hoursNone paid Exception: smud time, - Full Accrual Maximum 200 hours600 hours ,, 1No limitNo limit40 to 160 hours, depending on years of serviceNo limitNo limit1No limitNo limitNo limit720 hours Accrual Sick , depending on years of Annual hours (11.37 hours per month) or 120 hoursto 160 hours, depending on years of 4 120 hours8service96 hours40service120 hours 120 hours120 hours136120 hours120 hours 96 hours City SICK ArlingtonCarrolltonFriscoGarlandGrand PrairieIrvingLewisvilleMcKinneyMesquitePlanoDenton p to 240 hoursp to 360 hours ours and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) Hours Paid When Employee Leaves Police and Fire Employees PoliceRetirees = up to 960 hours FireRetirees = up to 1,440 hoursPoliceAfter 1 year, up to 960 hours FireAfter 1 year, up to 1,440 hoursPoliceAfter 1 year, u FireAfter 1 year, uPoliceUp to 720 hours FireUp to 1,080 hPoliceUp to 720 hours FireUp to 1,080 hours Accrual Maximum and Fire, 40 hour shift (24 hours shift) Police1,200 hours Fire1,800 hoursNo limitNo limitNo limitNo limit Accrual Sick Annual and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift hours(24 hour shift)hours(24 hour shift)(24 hour shift)(24 hour shift)(24 hour shift) Police120 Fire180 Police120 hours Fire180 hoursPolice96 hours Fire144 hoursPolice120 hours Fire180 hoursPolice120 hours Fire180 hours * City SICK ArlingtonCarrolltonFriscoGarland*Grand Prairie* (up to a (up to a hours, up , if eligible to , if eligible to Employee Leaves and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift) il Service employees are eligible for Hours Paid When PoliceUp to 720 hours Civil Service employees are eligible for additional pay upon separationmaximum of 2,500 hours)retire, and if they have at least 500 additional hours in excess of 720 hours; pay is equivalent to a percentage of the accrued FireUp to 1,080 hours Civadditional pay upon separationmaximum of 2,500 hours)retire, and if they have accrued at least 750 additional hours in excess of 1,080 hours; pay is equivalent to a percentage of the employeebased on hours accruedPoliceAny accrued hours over 240 to 720 hours FireAny accrued hours over 360 hours, up to 1,080 hoursPoliceIf worked for City a minimum of 5 consecutive years, up to 160 hours FireIf worked for City a minimum of 5 consecutive years, up to 240 hours Maximum Accrual and Fire, 40 hour shift (24 hour shift) No limitPolice1,600 hours Fire2,400 hoursNo limit Sick Accrual Annual and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift)(24 hour shift) Police120 hours Fire180 hoursPolice120 hours Fire180 hoursPolice136 hours (11.37 hours per month) Fire184 hours (15.4 hours per month) City Irving*LewisvilleMcKinney Employee Leaves hours and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift) Hours Paid When PoliceUp to 720 hours FireUp to 1,080 hoursPoliceUp to 720 FireUp to 1,080 hoursPoliceUp to 720 hours Fire (24 hour shift)Up to 1,080 hours Maximum Accrual No limitNo limitNo limit Sick Accrual Annual and Fire, 40 hour shiftand Fire, 40 hour shiftand Fire, 40 hour shift (24 hour shift)(24 hour shift) 0 hours 2 Police120 hours Fire180 hours Police1 Fire180 hoursPolice120 hours Fire (24 hour shift)180 hours City * Mesquite*Plano*Denton *Chapter 143 Civil Service City Non-Civil Service Sick Leave Benefit Accrual /ǒƩƩĻƓƷ .ĻƓĻŅźƷ ǝĻƩƭǒƭ tƩƚƦƚƭĻķ .ĻƓĻŅźƷ Proposed Years of Denton Current Hours Accrued Per Change in Hours ServiceAccrual per Year Year 96 12024 9612024 12024 96 9612024 12024 96 9612024 12024 96 9612024 12024 96 9612024 12024 96 9612024 12024 96 9612024 12024 96 15+9612024 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1169,Version:1 AGENDA CAPTION Consider approval of the minutes of August 1, August 3, August 7, August 8, August 15, and August 22, 2017. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© CITY OF DENTON CITY COUNCIL MINUTES August 1, 2017 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 1, 2017 at 1:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Duff, Council Member Ryan, Council Member Gregory, Mayor Pro Tem Bagheri, and Mayor Watts. ABSENT: None. 1. Citizen Comments on Consent Agenda Items Willie Hudspeth spoke on Consent Agenda A and requested Council consider it individually as it was a personal item for him. 2. Requests for clarification of agenda items listed on the agenda for August 1, 2017. Staff responded to Council requests for clarification of the following items: Council Member Briggs – pull Consent Agenda A for separate consideration; pull Consent Agenda I for separate consideration. Council Member Ryan – pull Consent Agenda K for separate consideration; Consent Agenda H explanation. Mayor Pro Tem Bagheri- pull Consent Agenda E for separate consideration as she would not be voting on that item; continue the explanation of Consent Agenda H. Council Member Hudspeth – commented on Consent Agenda G in terms of providing more information on local preferences; commented on Consent Agenda J to share the analysis on the website; Consent Agenda B; pull Consent Agenda C and D. Mayor Watts – Consent Agenda A 3. Work Session Reports A. ID 17-967 Receive a report from Denton County Transportation Authority (DCTA) staff to include agency overview, State of the Agency, bus operations and DCTA capital projects, and provide input regarding strategic initiatives in the Denton County Transportation Authority’s service plan. Mark Nelson, Director of Transportation and Aviation, introduced Jim Cline, President - DCTA, who would be making the presentation. Mr. Cline reviewed the partnership between Denton and DCTA; 2017 passenger survey; and community partnerships in terms of service & land use enhancements. Information was presented on UNT, TWU and NCTC, and Chamber of Commerce involvement including Arts & Jazz Festival and regional funding partnerships. City of Denton City Council Minutes August 1, 2017 Page 2 Council discussed whether the train could run later on Friday and Saturday during Arts & Jazz and include Sunday service. Cline continued with a review of the Denton facilities; current Denton service; Denton service enhancements; passenger amenities and Rail Trail; future commuter corridors; and the strategic plan for next five years. Council discussed with Mr. Cline various aspects of his presentation. Discussion points included signage on the Rail Trail; ridership especially in the UNT/Discovery Park area; cooperation with non-profits for reduced fares; Denton's portion of the sales tax revenues towards DCTA; special events opportunities; locations for shelters and the need for more shelters; and plans for promoting ridership to families and senior citizens. B. ID 17-841 Receive a report, hold a discussion, and give staff direction regarding nominations to the City’s Boards and Commissions and Council Committees. Jennifer Walters, City Secretary, presented the nominations that had been received to date. Council added additional nominations. Walters indicated that the nominations would be updated for Council consideration at the evening meeting. D. ID 17-970 Receive a report; hold a discussion, and receive departmental presentations in preparation for the FY 2017-18 Proposed Budget, Capital Improvement Program, and Five Year Financial Forecast. Electric - Bryan Langley, Deputy City Manager, reviewed the Electric budget in terms of FTEs, organizational chart; goals and accomplishments; performance measures; cost containment strategies; process improvements; and budget highlights. Streets - Galen Gillum, Director of Capital Projects, presented the streets budget. He reviewed the FTEs, goals and accomplishments; current and proposed performance measures; cost containment strategies; process improvements; specific process changes/ improvements; and budget highlights. Traffic Operations, Galen Gillum, Director of Capital Projects, reviewed the department’s FTEs, goals and accomplishments; current and proposed performance measures; process improvements; and budget highlights. E. ID 17-1039 Receive a report, hold a discussion, and give staff direction regarding the Charter Review Committee recommendations; discussion of ballot proposition items; and discussion of additional proposed Charter amendments regarding terms for Public Utility Board members and the month when regular municipal elections are held. Bryan Langley, Deputy City Manager, presented an update on the proposed amendments. He reviewed the background of the Charter Committee recommendations, draft ballot language; notification requirements; and next steps. Consensus of Council was to move forward with the drafting of the ordinance. City of Denton City Council Minutes August 1, 2017 Page 3 Mayor Pro Tem Bagheri questioned if Council would be interested in a discussion regarding putting before the voters a change in the Public Utilities Board member terms from 4 to 2 year terms and to change the date of the municipal elections to the General Election date in November. Consensus of the Council was to not consider these additional amendments at this time. F. ID 17-1044 Receive a report, hold a discussion, and give staff direction regarding solicitation and contracting incentives used to expedite public works projects. Karen Smith, Purchasing Manager, presented the information regarding public works contract incentives. She reviewed the goals of the program and types of incentives. Pritam Deshmukh, Traffic Engineer, reviewed the Road User Costs determination. Smith continued with incentive and disincentive considerations. Council discussed whether to apply the proposals to a current project to demonstrate how it would work. Consensus of the Council was to proceed with the development of the process. Following the completion of the Work Session, the City Council convened in a Closed Meeting to consider the specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. ID 17-845 Deliberations Regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. Receive information from staff and discuss, deliberate, and provide staff with direction regarding the potential acquisition of real property interests to a 2.168 acre tract of land situated in the Gideon Walker Survey, Abstract No. 1330, in the City of Denton, Denton County, Texas; discussion had, deliberation, and direction given, by the Denton City Council in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third party. Consultation with the City’s attorneys regarding legal issues associated with the acquisition of the real property interests described above; discussion of these legal matters in an open meeting 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 Professional Conduct of the State Bar of Texas, or would jeopardize the City’s legal position in any administrative proceeding or potential litigation. \[Spencer to Pockrus TM Line - Timber Links\] B. ID 17-914 Consultation with Attorneys - Under Texas Government Code, Section 551.071 Consult, discuss and deliberate with, and provide direction to, the City’s attorneys regarding legal issues associated with solicitation under Denton Code §16-73, where a public discussion associated with these legal matters would clearly 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 Professional Conduct of the State Bar of Texas. City of Denton City Council Minutes August 1, 2017 Page 4 Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall. 1.PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2.PROCLAMATIONS/PRESENTATIONS A. ID 17-971 Denton Citizen Academy Graduation Proclamation Mayor Watts presented a proclamation for the Denton Citizen Academy Graduation. 3. PRESENTATION FROM MEMBERS OF THE PUBLIC A. Review of procedures for addressing the City Council. B. Receive Scheduled Citizen Reports from Members of the Public. 1. ID 17-1017 Ron Seifert regarding a review of the Renewable Denton Plan approval process. Mr. Seifert presented details on his perception of the Renewable Denton Plan and the information presented during the approval process of the Plan. 2. ID 17-1018 Ginger Cain regarding the use and/or sale of property located on the north side of W. Windsor Drive. Ms. Cain spoke on property located on the north side of W. Windsor Drive. The property owner had been paying taxes on the property for years and was wanting to sell the property. The City did not follow through on an agreement with the property owner and the property owner was now unable to sell the property. She asked Council to look into the situation. 3. ID 17-1045 Deb Armintor regarding gas plant contracts. Ms. Armintor presented her views on the contracts with Burns and McDonnell in terms of emissions. C. Additional Citizen Reports 1.Willie Hudspeth presented his views on the two previous speakers regarding their views on the gas plant contracts and the emissions figures that were presented from the contracts. 2.Zach Youngblood presented information on the Denton Energy Center emissions. City of Denton City Council Minutes August 1, 2017 Page 5 4.CONSENT AGENDA Council Member Ryan motioned, Council Member Gregory seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Items A, C, D, E, I and K. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-210 B. ID 17-844 Consider adoption of an ordinance authorizing the settlement of litigation styled City of Denton, Texas V. Timber Links Apartments, LLC, a Delaware Limited Liability Company, Cause No. PR-2017-00009, currently pending in the probate court of Denton County, Texas, regarding the acquisition of a 2.168 acre electric easement tract for the Spencer to Pockrus Transmission Line Project in the settlement amount of One Hundred Thirty Thousand Dollars and Zero Cents ($130,000.00), authorizing the City Manager and City Attorney to effectuate the settlement; authorizing the expenditure of funds therefor; providing a savings clause; and providing an effective date. \[Spencer to Pockrus TM Line - Timber Links LLC\] Ordinance No. 2017-212 F. ID 17-877 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Denton Community Clinic for the purpose of Health Care Services; providing for the expenditure of funds therefor; and providing for an effective date. ($700) Ordinance No. 2017-213 G. ID 17-946 Consider adoption of an ordinance accepting competitive proposals and awarding a public works contract for the construction of the Hickory Substation Underground Transmission Line Duct Bank Project for the City of Denton which consists of the installation of a grouping of conduits for underground electrical conductors from inside the Hickory Substation boundary to appropriate points outside of the substation; providing for the expenditure of funds therefor; and providing an effective date (RFP 6416C-awarded to Larrett, Inc. in the amount of $892,455). The Public Utilities Board recommends approval (6-0). Ordinance No. 2017-214 H. ID 17-947 Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the supply of secondary pedestals for Denton Municipal Electric to be stocked in the City of Denton Distribution Center; providing for the expenditure of funds therefor; and providing an effective date (RFP 6246-awarded to Techline, Inc. in the three (3) year not-to-exceed amount of $150,000). Ordinance No. 2017-216 J. ID 17-973 Consider adoption of an ordinance rejecting any and all competitive proposals for RFP 6426-Printing Services for the City of Denton; and providing an effective date. City of Denton City Council Minutes August 1, 2017 Page 6 Council considered the items pulled for separate consideration. A. ID 17-694 Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a Professional Services Agreement with Steven J. Kunkel & Associates, Inc. for Land Appraisal and Land Rights Acquisition Services related to the Bonnie Brae Road Widening project-North Phases 4 & 5. The limits being between North Interstate 35 East and U.S. Highway 380; and establishing an effective date (File 6522 in the not-to-exceed amount of $418,000). Paul Williamson, Real Estate Manager, presented the details of the ordinance for professional appraisal services. Council discussed when the project was started and any associated neighborhood meetings; the reason to use old Bonnie Brae instead of new Bonnie Brae; whether it would be feasible to look at a different design; how the determination of fees was calculated and the amount of the appraisals for the contract. Council Member Briggs noted that she would prefer to table the item until other options were explored and the historical nature of the homes that might be removed was explored. A Speaker Card was submitted Willie Hudspeth who spoke regarding the appraisal process and the process concerning the project details. Council Member Ryan indicated that he would also like to table consideration of the item to a date certain. Council Member Ryan motioned, Mayor Pro Tem Bagheri seconded to continue the item to an event certain until Council had a presentation regarding the parameters of the project, a neighborhood meeting was held and input was received from the Parks Department regarding identification of the lots and the historic nature of the homes. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Resolution No. R2017-026 C. ID 17-861 Consider approval of a resolution approving the 2016 Tax Increment Reinvestment Zone Number Two (Westpark TIRZ) Annual Report; and declaring an effective date. The Westpark TIRZ Board recommends approval (8-0). Caroline Booth, Director of Economic Development, presented the details on the 2016 Annual Report for the Westpark TIRZ. This was a required report from the State Comptroller. She noted the bases and appraised value, revenue in the TIRZ fund from participating taxing entities, purpose of expenditures and any outstanding bonded indebtedness interest due. Council Member Briggs motioned, Council Member Hudspeth seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council City of Denton City Council Minutes August 1, 2017 Page 7 Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Resolution No. R2017-027 D. ID 17-862 Consider approval of a resolution approving the 2016 Tax Increment Reinvestment Zone Number One (Downtown TIF) Annual Report; and declaring an effective date. The Downtown TIF Board recommends approval (4-0). Julie Glover, Economic Development Program Administrator, presented the annual report from the Downtown TIF in terms of base and appraised value, revenue in the fund, purpose of expenditures and any outstanding bonded indebtedness interest due. Council Member Briggs motioned, Council Member Ryan seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No 2017-211 E. ID 17-872 Consider adoption of an ordinance of the City of Denton, Texas approving a consent to Collateral Assignment of an Airport Lease between Sykes-Vaughan Investments LLC, and Compass Bank; and providing an effective date. The Council Airport Committee recommends approval (3-0). Mayor Pro Tem Bagheri recused herself from deliberation/vote on this item. Scott Gray, Airport Manager, presented information on the assignment of the lease which was needed for the owner to secure a loan from the bank for the financing. Council Member Gregory motioned, Council Member Hudspeth seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. Mayor Pro Tem Bagheri returned to the meeting. Ordinance No. 2017-212 I. ID 17-948 Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the supply of Okonite underground distribution cables and substation control cables for Denton Municipal Electric to be stocked in the City of Denton Distribution Center; providing for the expenditure of funds therefor; and providing an effective date (RFP 6404- awarded to The Okonite Company in the three (3) year not-to-exceed amount of $1,400,000). Brent Heath, Executive Manager of Energy Delivery, stated that this was a standard warehouse item for underground cable replacement. Council Member Ryan motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member City of Denton City Council Minutes August 1, 2017 Page 8 Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-213 K. ID 17-1026 Consider adoption of an ordinance of the City of Denton, Texas, Amending the Provisions of Chapter 16 relating to licenses, permits, and business regulations by amending section 16-73 to change the hours for home solicitation; providing a savings clause; providing for a penalty not to exceed $500 for violations of the ordinance; and providing for an effective date. Stephanie Berry, Prosecutor, presented details regarding the change in the hours for home solicitation. The City has been notified that the current solicitation ordinance might be in violation of an individual’s freedom of speech rights. A proposed alternate ordinance would limit solicitation from dusk or 9:00 p.m. for a curfew. Council Member Gregory motioned, Council Member Ryan seconded to adopt the ordinance version of dusk or 9:00 p.m. Monday through Friday. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. 5.ITEMS FOR INDIVIDUAL CONSIDERATION - CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS Ordinance No. 2017-218 A. ID 17-689 Consider adoption of an ordinance of the City of Denton ("City") finding that a public use and necessity exists to acquire fee simple title to (I) a 0.697 acre tract of land and (II) a 0.018 acre tract of land, both situated in the Alexander Hill Survey, Abstract No. 623, in the City of Denton, Denton County, Texas (collectively the "Property Interests"), for the public use of, expansion, construction, maintenance, operation of an electric transmission line, ancillary facilities and structures; authorizing the City Manager, or his designee, to acquire the Property Interests by agreement including making all offers required by law; authorizing the use of the power of eminent domain to condemn the Property Interests if any agreement cannot be reached; and authorizing the City Attorney, or his designee, to file eminent domain proceedings if necessary; authorizing the expenditure of funding; makings findings; providing a savings clause; and providing an effective date. \[Spencer to Locust TM Line - Tracts 34 & 37\] Brent Heath, Executive Manager of Energy Delivery, presented the details for Spencer to Locust Transmission line substation. He reviewed the Executive Summary, CIP & Regulatory agencies involved, history of the project, location map, and site map Council Member Gregory motioned “I move that the City of Denton, after having made the offers required by State law, use the power of eminent domain, if needed, to acquire fee simple to (i) a 0.697 acre tract of land and (ii) a 0.018 acre tract of land, both situated in the Alexander Hill Survey, Abstract No. 623, City of Denton, Denton County, Texas, and more particularly described City of Denton City Council Minutes August 1, 2017 Page 9 on Exhibits “A,” “A-1,” and “B-1” to the ordinance now under consideration and on the overhead screen being now displayed to the audience, all of which is for a valid public use necessary to provide the expansion, construction, maintenance, operation, and improvement of electric transmission lines, facilities, and structures, including substations, to serve the public and citizens of the City of Denton, Texas.” Council Member Ryan seconded the motion. As the motion was read, Heath displayed the legal description and location. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-219 B. ID 17-753 Consider adoption of an ordinance of the City of Denton ("City") finding that a public use and necessity exists to acquire an easement covering a 0.339 acre tract of land situated in the Mary L. Austin Survey, Abstract No. 4, in the City of Denton, Denton County, Texas ("Property Interests"), for the public use of, expansion, construction, maintenance, and operation of an electrical transmission line, ancillary facilities, and structures supporting a new electric substation; authorizing the City Manager, or his Designee, to acquire the Property Interests by agreement including making all offers required by law; authorizing the use of power of eminent domain to condemn the Property Interests if an agreement cannot be reached; and authorizing the City Attorney, or his Designee, to file eminent domain proceedings if necessary; authorizing the expenditure of funds; making findings; providing a savings clause; and providing an effective date. \[Brinker Substation - Nu- View Tract\] Brent Heath, Executive Manager of Energy Delivery, stated that this project involved the Brinker Substation on the Nu-View tract. He presented the Executive Summary and problems with the electric system, CIP timeline and substations map, history of the project, location map, and site map. Mayor Pro Tem Bagheri motioned “I move that the City of Denton, after having made the offers required by State law, use the power of eminent domain, if needed, to acquire easement interests covering a 0.339 acre tract of land being situated in the Mary L. Austin Survey, Abstract No. 4, City of Denton, Denton County, Texas, and more particularly described on “Exhibits A and B” to the ordinance now under consideration and on the overhead screen being now displayed to the audience, all of which is for a valid public use necessary to provide the expansion, construction, maintenance, operation, and improvement of electric transmission lines, facilities, and structures, including substations, to serve the public and citizens of the City of Denton, Texas.” Council Member Ryan seconded the motion. As the motion was being read, Heath displayed the legal description and property interests. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. City of Denton City Council Minutes August 1, 2017 Page 10 Ordinance No. 2017-220 C. ID 17-843 Consider adoption of an ordinance of the City of Denton ("City") finding that a public use and necessity exists to acquire easements covering (I) a 0.057 acre tract of land and (II) a 0.141 acre tract of land, both situated in the Eugene Puchalski Survey, Abstract No. 996, City of Denton, Denton County, Texas (collectively the "Property Interests"), for the public use of, expansion, construction, maintenance, and operation of an electric transmission line, ancillary facilities and structures; authorizing the City Manager, or his designee, to acquire the Property Interests by agreement including making all offers required by law; authorizing the use of the power of eminent domain to condemn the Property Interests if an agreement cannot be reached; and authorizing the City Attorney, or his designee, to file eminent domain proceedings if necessary; authorizing the expenditure of funding; making findings; providing a savings clause; and providing an effective date. \[Hickory to Locust TL Project -Tracts 72 & 73\] Brent Heath, Executive Manager of Energy Delivery, presented the details on the Hickory to Locust Transmission line. He noted the Executive Summary, CIP & Regulatory agencies involved, history of the project, location map, and site map. Mayor Pro Tem Bagheri motioned “I move that the City of Denton, having made the offers required by State law, use the power of eminent domain, if needed, to acquire easement interests covering (i) a 0.057 acre tract of land and (ii) a 0.141 acre tract of land, both being situated in the Eugene Puchalski Survey, Abstract No. 996, City of Denton, Denton County, Texas, and more particularly described on Exhibits “A-1,” “B-1,” “A-2,” and “B-2” to the ordinance now under consideration and on the overhead screen being now displayed to the audience, all of which is for a valid public use necessary to provide the expansion, construction, maintenance, operation, and improvement of electric transmission lines, facilities, and structures, including substations, to serve the public and citizens of the City of Denton, Texas.” Council Member Gregory seconded the motion. As the motion was being read, Heath displayed the legal description and property interests. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. 6.ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 17-840 Consider nominations/appointments to the City’s Boards and Commissions and Council Committees: Airport Advisory Board; Animal Shelter Advisory Committee; Community Development Advisory Committee; Health & Building Standards Commission; Historic Landmark Commission; Human Services Advisory Committee; Library Board; Parks, Recreation and Beautification Board; Planning and Zoning Commission; Public Art Committee; Public Utilities Board; Traffic Safety Commission; Zoning Board of Adjustment, and Downtown Denton TIF Reinvestment Zone No. 1 Board. City of Denton City Council Minutes August 1, 2017 Page 11 Jennifer Walters, City Secretary, reviewed the nominations Council had discussed during the Work Session. Council Member Gregory motioned, Council Member Ryan seconded to approve the nominations. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-221 B. ID 17-866 Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute a Professional Services Agreement for professional planning services related to the development of the Sector One South Neighborhoods Small Area Plan and implementation; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6424-awarded to Fregonese Associates in the not-to-exceed amount of $239,252). Ron Menguita, Long Range Planning Administrator, presented the background on the small area plan. He reviewed the details on the location of the plan, project scope, timeline, request for qualifications, and next steps. Council discussed the size of the area involved and questioned if it was too large for the types of projects. Speaker Cards were submitted by Deb Armintor and Willie Hudspeth, both in favor. Council Member Briggs motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Gregory "aye", and Mayor Pro Tem Bagheri "aye". Council Member Ryan "nay", and Mayor Watts "nay". Motion carried with a 5-2 vote. 7. PUBLIC HEARINGS Ordinance No. 2017-222 A. S16-0007c Hold a public hearing and consider adoption of an ordinance for a Specific Use Permit to allow for a multi-family use on approximately 0.9 acres. The property is generally located on the north side of the Riney Road and Riney Court intersection. The Planning and Zoning Commission voted \[6-0\] to approve the request with conditions. (S16-0007, Riney Road Apartments). The Mayor opened the public hearing. Munal Mauladad, Director of Development Services, presented the details of the request for a specific use permit. She reviewed the site plan; landscape plan; elevations; analysis of the specific use permit criteria; analysis compatibility; future land use; mobility; and public notification. The Planning and Zoning Commission had recommended approval with conditions. She noted that a supermajority vote of Council was required. City of Denton City Council Minutes August 1, 2017 Page 12 Council discussed the conditions recommended by the Planning and Zoning Commission and staff; the number of parking spaces and bike racks; and the location of the dumpsters in relation to the neighboring homes. Brad Andrews, applicant, spoke in favor. Council continued discussion regarding parking restrictions in the area and location of the dumpsters. Willie Hudspeth questioned the location of the proposal. The Mayor closed the public hearing. Mayor Pro Tem Bagheri motioned, Council Member Gregory seconded to adopt the ordnance with both of the conditions included. On roll call vote, Council Member Hudspeth "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Council Member Briggs "nay". Motion carried with a 6-1 vote. 8. 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. Council Member Briggs requested that during the Thursday budget presentation she would like a discussion on water park fees and attendance since the wave pool opened as well as a reconsideration of the price increase. Council Member Hudspeth requested an Informal Staff Report on the convention center inspections and whether the inspectors were up to speed for high rise inspections. Council Member Hudspeth requested a presentation on a management proposal for a rewards program for small/medium businesses bringing in jobs. City of Denton City Council Minutes August 1, 2017 Page 13 Council Member Hudspeth requested a report/discussion on deliveries on the Square and possible restrictions for deliveries. Mayor Pro Tem Bagheri requested an Informal Staff Report on the Parks Foundation fundraising during the year. Mayor Pro Tem Bagheri requested information on commercial recycling and the possibility of adding recycling for multi-family to that presentation in terms of requirements and areas for improvement. Mayor Pro Tem Bagheri requested a Work Session or Closed Session on TCEQ air permits and calculations. Council Member Ryan asked for an Informal Staff report on TxDOT installing sound walls along the I35 widening through neighborhoods. B. Possible Continuation of Closed Meeting topics, above posted. There was no continuation of the Closed Meeting. With no further business, the meeting was adjourned at 9:36 p.m. __________________________ CHRIS WATTS MAYOR CITY OF DENTON, TEXAS __________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 3, 2017 After determining that a quorum was present, the City Council convened in a Work Session on Thursday, August 3, 2017 at 8:30 a.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Duff, Council Member Ryan, Council Member Gregory, Mayor Pro Tem Bagheri, and Mayor Watts. ABSENT: None. 1. Work Session Reports A. ID 17-954 Receive a report; hold a discussion, and give staff direction regarding the FY 2017-18 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. Chuck Springer, Director of Finance, provided the Council with the budget update. He reviewed the budgetary priorities, cost containment reductions in the General Fund and other funds; assumptions for the General Fund; and Vacancy Management/Salary Savings. He continued with compensation and benefits; property values and tax rate; and appraised values. Sales tax information and a chart with General Fund revenues and expenditures were noted. Springer presented the General Fund expenditures by category, by function, and five year assumptions for the General Fund. Proposed supplemental packages that were included in the proposed budget were presented. Council discussed the various items listed for further clarification of the programs. Funding options in terms of an additional one cent on the tax rate were discussed. Springer reviewed results of an all-city funds review in terms of what was reviewed and recommendations. Supplemental packages funded in the current fiscal year were noted. Council discussed various funding aspects of the packages and the details of the packages. Springer presented information on the Park Development and Dedication funds, the Street Improvement fund, and the Traffic Safety fund. Council did not object to staff's recommendation to begin looking at expanding the Park Development and Dedication fund to expand the type of park development and purchases to include community parks and trails and to also recommend expanding distance requirement for these additional types of facilities. Springer next presented information on the two Tax Increment Reinvestment Zones and the Downtown Reinvestment Fund. Council discussed the funding of the Downtown Reinvestment Fund and various scenarios of funding or not funding it. Consensus of Council was to amend the current ordinance prior to August 30, 2017 to change the current year's transfer. Springer continued with the Tree Mitigation Fund and Special Revenue Funds, Special Revenue Fund Supplemental Packages noting an Internal Service Funds Flow Chart and associated funding charges. Additional types of transfers were presented as well as Internal Service Funds City of Denton City Council Minutes August 3, 2017 Page 2 Supplemental Packages. Springer noted the Utility Fund operating expenditures and the monthly rate impact on an average residential customer. He presented the FY 2017-18 Capital Program, the proposed position additions; and the next steps in the process. Springer displayed a total net city budget chart which backed out the transfers which were normally seen in the budget; a breakdown of the Economic Development funding for the Chamber of Commerce and Parks Foundation FY 2016-17 funding. Council Member Gregory questioned the supplemental packages for the pavement marking system and early warning sirens that were not approved in the proposed budget. Council Member Ryan stated that he also had questions/concerns regarding the pavement marking system. He questioned the North Lakes dock replacement. Mayor Pro Tem Bagheri questioned if the dock could be funded out of the Park Development fund as well as the trail fitness equipment. Council Member Duff requested a presentation on why the police supplemental packages were not funded. Deputy Chief Scott Fletcher presented the rational on why those positions were no longer needed. Council Member Ryan asked about the security features for the explosive magazine/security item. Robin Paulsgrove, Fire Chief, presented details on the proposed package. Council Member Briggs asked about the updating of Wi-Fi in the downtown area. Springer noted that the TIF Board was considering that funding. Consensus of Council was to include the explosive magazine /security item in the budget. Mayor Pro Tem Bagheri questioned if the funds equivalent to the grant funding would go back into the General Fund reserve funding. Springer stated that it would roll into the General Fund balance. Mayor Pro Tem Bagheri questioned if the tax rate could be reduced with that money. Springer replied correct. Council Member Gregory stated he would like to include the early warning signals in the budget. Mayor Watts noted that these would be talking points for the next discussion and would focus in on those areas to be included. Mayor Pro Tem Bagheri asked for information on a tax rate reduction versus an increase in the homestead exemption in terms of a five year projection. City of Denton City Council Minutes August 3, 2017 Page 3 Council Member Ryan questioned various line items in various departmental budgets. Following the completion of the Closed Meeting, the City Council convened in a Special Called Meeting. 1.ITEMS FOR INDIVIDUAL CONSIDERATION Resolution No. R2017-028 A. ID 17-909 Consider approval of a resolution of the City Council of the City of Denton, Texas placing a proposal on the September 19, 2017, City Council public meeting agenda to adopt a 2017 Tax Rate that will exceed the lower of the rollback rate or the effective tax rate; calling two public hearings on a tax increase to be held on August 15, 2017, and September 12, 2017 and calling a budget public hearing on the Fiscal Year 2017-2018 Annual Program of Services of the City of Denton to be held on September 12, 2017; requiring publication of notices of the public hearings in accordance with the law; requiring the posting of the notices of the public hearings on the City’s Internet website; requiring the posting of the notices on the City’s public access channel; and providing an effective date. Chuck Springer, Director of Finance, indicated that State law required the City to put out a maximum tax rate that could be considered and call public hearings on the tax rate. A general public hearing was also required on the budget. This item set all of those public hearings in motion. Council Member Ryan motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. 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. Council Member Briggs requested a map of the coverage of the City’s warning sirens. City of Denton City Council Minutes August 3, 2017 Page 4 Council Member Briggs requested a review of the DME fee ordinance. Council Member Briggs requested information on the results of ADA study approved last year. Council Member Hudspeth requested information about public restrooms in the downtown area. Council Member Hudspeth requested information on security patrols in the downtown area. Following the completion of the Work Session, the City Council was scheduled to convene in a Closed Meeting to consider the item listed below under the Closed Meeting section of this agenda. 1. Closed Meeting A. ID 17-969 Certain Public Power Utilities: Competitive Matters --- Under Texas Government Code, Section 551.086. Receive competitive public power competitive information and financial information from staff regarding the proposed FY 2017-2018 operating budget for Denton Municipal Electric ("DME") including without limitation, proposed rates for DME for FY 2017-2018, expected revenues, expenses, commodity volumes, and financial commitments of DME; discuss, deliberate and provide staff with direction. This item was not considered. Council returned to Work Session Item A. Council Member Gregory left the meeting. Caroline Booth, Director of Economic Development, presented information on the line item budget for Stoke Revenue and Expenditures. Council discussed the funding of a position, the distribution of the membership fees; the net income loss; information on what the DEC was paying for and what the City was paying for; and budget information for just the Stoke. With no further business, the meeting was adjourned at 11:55 a.m. __________________________ _____________________ CHRIS WATTS JENNIFER WALTERS MAYOR CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 7, 2017 After determining that a quorum was present, the City Council convened in a Joint Meeting with the Economic Development Partnership Board on Monday, August 7, 2017 at 11:30 a.m. in the Training Facility Room 101/102 at Peterbilt Motors Company, 3200 Airport Road, Denton, Texas. PRESENT: Council Member Hudspeth, Council Member Ryan, Council Member Duff, and Mayor Pro Tem Bagheri. ABSENT: Council Member Briggs, Council Member Gregory, and Mayor Watts. Mayor Pro Tem Bagheri called the Council meeting to order and announced that a quorum of the Council was present. Marty Rivers, Chair of the Economic Development Partnership Board, announced there was no quorum of the EDP Board present. 1. Work Session Reports A. ID 17-1016 Receive an update on Peterbilt Motors Company and participate in a tour of the facility. Jim Fykes, Operations Liaison for Peterbilt Motors Company, stated that Peterbilt was a division of PACCAR. The Denton plant was the company’s third manufacturing plant and opened in 1980. The division office relocated to Denton in 1992. The Denton plant employs 2,500+ employees. The plant was approximately 710,000 square feet. He reviewed some of the benefits available to employees. Fykes stated that local suppliers made different parts for the trucks as well. Fykes stated that Peterbilt trucks were among the industry’s most environmentally clean and fuel efficient. Peterbilt’s facilities promoted continuous reduction of air emissions, packaging waste, waste solvent, hazardous waste, energy use and landfill disposal. Both management and employees maintained a company-wide philosophy that ensured Peterbilt continued to promote recycling and reduce pollution and waste. With no further business, the meeting was adjourned at 12:07 p.m. and attendees participated in a tour of the facilities. ____________________________________ SARA BAGHERI MAYOR PRO TEM CITY OF DENTON, TEXAS ____________________________________ JANE RICHARDSON ASSISTANT CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 8, 2017 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 8, 2017 at 2:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Hudspeth, Council Member Duff, Council Member Ryan, Mayor Pro Tem Bagheri, and Mayor Watts. ABSENT: Council Member Briggs and Council Member Gregory. 1. Work Session Reports A. ID 17-977 Receive a report; hold a discussion, and give staff direction regarding the FY 2017-18 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. Chuck Springer, Director of Finance, presented a budget follow-up from the Council's prior meeting. Staff had responded to Council's questions regarding sidewalk replacement and other line item questions. He reviewed the current General Fund projection, the Homestead exemption, and conditions to raise the Homestead exemption. Mike Penaluna, Emergency Management Program Manager, presented information concerning the City's outdoor warning system in terms of current and proposed locations. Three new locations were proposed for the next fiscal year and seven locations in future years. Council discussed the sirens on UNT and whether there was an interlocal agreement for those. Springer presented information on General Fund Supplemental Requests that were not funded. Council discussed whether to include the explosive magazine/security item and early warning sirens in the budget. Consensus was to include those two in the budget. Council discussed cash funding rather than long term debt for vehicles; possibly not lowering the tax rate and using additional funding for police vehicles. B. ID 17-1043 Receive information and updates and hold a discussion on the Texas Open Meetings Act and associated relevant law. Jennifer DeCurtis, Deputy City Attorney, presented information concerning the Texas Open Meetings Act (TOMA). She reviewed information on the notice requirements for public meetings and the triggering of the posting of the notice; basic information on what could and could not be discussed in Open Session; regulations of Executive Sessions; and definition of Walking Quorum. She continued with online message boards, relevant parts of the Public Information Act; provisions involving Social Media; and penalty provisions of TOMA. Citizen reports and whether Council could discuss those reports with citizens was reviewed. She noted that Council could not deliberate or take action on citizen reports but could ask questions. Council discussed reviewing the Council’s procedures in terms of singling out one member and whether that was a violation of free speech. It was noted that Council was able to place reasonable restrictions on citizen involvement. City of Denton City Council Minutes August 8, 2017 Page 2 C. ID 17-1046 Receive a report and hold a discussion regarding an update from the Capital Projects department on the status of key projects and overall program update. Galen Gillum, Capital Projects Manager, presented a capital projects update. He reviewed the need for capital projects. He provided details on the specific projects of Bell Avenue north through TWU campus; Bonnie Brae; Hickory Street; McKinney Street sidewalk project; Bell Avenue sidewalk; and Mayhill Road Widening. He noted bond program updates in street segments and presented information on how to get more streets done. Recently completed projects and projects in progress were also reviewed along with a review of capital projects methodology and next steps in the process. D. ID 17-1073 Receive a report, hold a discussion, and give staff direction regarding the use and potential disposal of real property tracts owned by the City of Denton Amy Parish, Senior Real Estate Analyst, presented information concerning prospective surplus city owned property tracts in terms of those available now and those available in the future. Council discussed the first five tracts that were ready to be disposed of and how to set market value. Consensus of the Council was to move forward with the first group of five to dispose of and have staff develop an Informal Staff Report on the step by step process on the procedure. Parish continued with the remaining parcels indicating location and current use. Council discussed holding back the 2910 University site for a possible fire station use. 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. Council did not have any Concluding Items. City of Denton City Council Minutes August 8, 2017 Page 3 Following the completion of the Work Session, the City Council convened in a Closed Meeting to consider the specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. ID 17-913 Consultation with Attorneys - Under Texas Government Code, Section 551.071 Consult, discuss and deliberate with, and provide direction to, the City’s attorneys regarding legal issues associated with the current and future unfunded liabilities of the Denton Firemen’s Relief and Retirement Fund, including but not limited to, a potential solution addressing future unfunded liabilities, where a public discussion associated with these legal matters would clearly 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 Professional Conduct of the State Bar of Texas." B. ID 17-988 Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086. Receive competitive public power competitive information and financial information from staff regarding the proposed FY 2017-2018 operating budget for Denton Municipal Electric ("DME") including without limitation, proposed rates for DME for FY 2017-2018, expected revenues, expenses, commodity volumes, and financial commitments of DME; discuss, deliberate and provide staff with direction. This item was not discussed. C. ID 17-1085 Deliberations regarding Real Property - Under Texas Government Code, Section 551.072; and Consultation with Attorneys - Under Texas Government Code, Section 551.071. Discuss, deliberate and receive information from staff and provide staff with direction pertaining to the potential purchase of a certain 18.969 acre tract out of the David Hough Survey, Abstract No. 646, in Denton County, Texas, and generally located in the 2600 block of South Mayhill Road, Denton, Texas, including as it relates to the widening and realignment of Mayhill Road. Consultation with the City’s attorneys on the status, strategy, and potential resolution of litigation styled City of Denton, Texas v. Robert P. Donnelly, Cause No. 17-5939-158, currently pending in the 158th District Court of Denton County, Texas, 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 Professional Conduct of the State Bar of Texas, or would jeopardize the City’s legal position in any administrative proceeding or litigation. (Option to acquire 18.969 acre Donnelly remainder tract - Ordinance 1997-276 & Ordinance 1997-292) With no further business, the Council went back into Open Session and adjourned at 5:50 p.m. __________________________ _________________________ CHRIS WATTS JENNIFER WALTERS MAYOR CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 15, 2017 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 15, 2017 at 2:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Gregory, Council Member Ryan, Mayor Pro Tem Bagheri, and Mayor Watts. ABSENT: Council Member Duff 1. Citizen Comments on Consent Agenda Items There were no citizen comments regarding Consent Agenda items. 2. Requests for clarification of agenda items listed on the agenda for August 15, 2017. Staff responded to Council’s requests for clarification to the following: Council Member Briggs - Pull Consent Agenda A for a presentation; Consent Agenda Item Q Council Member Gregory – Consent Agenda Item D Council Member Duff arrived at the meeting 3. Work Session Reports A. ID 17-557 Receive a report, hold a discussion, and give staff direction regarding the Denton Chamber of Commerce economic development contract. Caroline Booth, Director of Economic Development, presented a draft contract for the Chamber of Commerce economic development activities. She noted the background of the partnership agreement and the proposed changes to the agreement. The changes added specific goals, deliverables and metrics for recruitment of prospective companies; leads from brokers, site selectors, and developers; and monthly activity reports. Funding, insurance and indemnity provisions were also added. Council discussed whether the development of metrics was similar for both the City and Chamber departments; whether to include the financial information for the entire Chamber rather than just the economic development portion; consider bidding the function to see if it might be more cost effective; and consequences for not meeting the metrics. Council discussed that the proposed changes were initial metrics and should be a starting point for the changes. Consensus of the Council was to return with an ordinance and agreement for consideration at a future meeting. B. ID 17-978 Receive a report; hold a discussion, and give staff direction regarding the FY 2017-18 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. City of Denton City Council Minutes August 15, 2017 Page 2 Chuck Springer, Director of Finance, presented information on the updated budget in terms of the current General Fund projections. Council discussed the elimination of the transferring of funds to the Downtown Development Fund. Consensus of the Council was to not transfer the funds into the account. Springer continued with vehicle cash funding in terms of future impact and the over 65 and disabled person tax limitation impact. Council discussed potential legislation on the rollback rate. C. ID 17-1013 Receive a report, hold a discussion and give staff direction regarding the proposed renovation and adaptive use of City Hall West located at 221 North Elm. Mark Nelson, Director of Transportation, introduced Craig Melde who would be presenting options for the facility. Nelson reviewed the background history of the building, displayed views of the building, and requested use of the facility. He presented information on the analysis of the renovation consultant for the building in terms of cost estimates for high, medium and low options. Mr. Melde presented information on the various options. Option 1 was the high cost option which would restore the exterior and interior to 1927 standards. Option 2 was the middle cost option and included full exterior restoration and adaptive use of the interior. Option 3 was the low cost option and included the exterior restoration with an upgrade to the interior on the current layout/use. He indicated that structurally the building was in good shape. Council discussed whether HOT funds could be used for the renovation depending on the use; whether TIRZ money could be used; whether bond money could be used; whether partners might be involved; and whether other organizations offered ideas on how to use the facility. Goals for the building might include renovation of the interior to original state as much as possible. Mayor Watts stated that Option 1 was not an option for him. He would like to have the building back to as much an original state was possible. Mayor Pro Tem Bagheri stated that she was in favor of Option 2 as it included the green space and suggested adding another green space on the other side of the building even if parking had to be removed. Council Member Ryan suggested considering contributions from Denton citizens to help fund the project and noted that he was in favor of Option 2. Mayor Watts felt that the County might also be a partner in the project. Council Member Briggs suggested including public meetings with the process; remodel to allow for one fire truck space and include more green space. Council Member Ryan was in favor presenting the issue to the public and move forward. City of Denton City Council Minutes August 15, 2017 Page 3 Consensus of the Council was that they were not in favor of Option 1 and to move forward with Option 2 including community meetings and investigating non-profit partnerships. D. ID 17-1034 Receive a report, hold a discussion and give staff direction on the Mobility and Bike Plan. Mark Nelson, Director of Transportation, presented an overview of the Mobility and Bike Plan. Pritam Deshmukh, Traffic Engineer, presented information on the background of the Mobility Plan. Information on the components of the Mobility Plan were reviewed along with the various classifications of the components. He noted that a Mobility Plan was updated typically every five years. He reviewed completed and near-term projects. Julie Anderson, Pedestrian and Bike Coordinator, presented background information on the bike plan in terms of facility types; showed bike infrastructure from 2012-present; completed projects; and the strategic plan. E. ID 17-1052 Receive a report, hold a discussion and provide staff direction regarding the Denton Municipal Electric community sponsorship program. Bryan Langley, Deputy City Manager, presented information on the current process for DME community sponsorship programs. Staff was seeking direction on whether the program should be continued and if continued consider developing a proposed application and approval process for future sponsorships. Council discussed whether to develop a charitable organization to receive donations from the public; look at the Plus1 program structure for donations; consider a process similar to the HOT committee applications; go through PUB and then to Council for providing the funds; provide more information on the Plus1 program in order to perhaps provide more assistance to those who need it more than a general organization function. A suggestion was made to consider the Human Services Advisory Committee to look at a sponsorship process. Mayor Pro Tem Bagheri questioned if there were items that could be taken off the table for sponsorship. Council Member Gregory suggested the Human Services Advisory Committee look at how the funds were spent and the criteria staff used to spend the funds; develop new criteria for Council to consider and have that Committee administer the funds. Mayor Pro Tem Bagheri suggested putting a cap on the amount of funds an organization could receive. Focus on low income households where the need would be greatest. Council Member Gregory also suggested considering the type of organization such as the Denton School Foundation and not just on low income needs. Council consensus was to consider providing additional funding to the Human Services Advisory Committee to make recommendations on how to spend the funds. Sponsorship and marketing City of Denton City Council Minutes August 15, 2017 Page 4 should also be considered in terms of what was provided in return. Develop an inventory of what was provided in the past and what did the sponsorship provide. Consider sponsorships versus charitable organizations. City Manager Hileman stated that staff would break down the allocated funding into three pools along with an application process. Those pools would include one for rate payer assistance programs, one for social programming and one for sponsorship. The funds would be divided into thirds as a starting point. Staff would identify organizations that were receiving city funds already and note those in the report plus review excess utility funds as noted in the Charter. Following the completion of the Work Session, the City Council was to convene in a Closed Meeting to consider the specific item listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. ID 17-989 Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086. Receive competitive public power competitive information and financial information from staff regarding the proposed FY 2017-2018 operating budget for Denton Municipal Electric ("DME") including without limitation, proposed rates for DME for FY 2017-2018, expected revenues, expenses, commodity volumes, and financial commitments of DME; discuss, deliberate and provide staff with direction. This item was not considered. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall. 1.PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2.PROCLAMATIONS/PRESENTATIONS A. ID 17-853 Honor AmeriCorps’ VISTA Program Associates, in partnership with Denton Parks and Recreation. Mayor Watts and Kathy Schaeffer recognized the AmeriCorps' volunteers and thanked them for their service. B. ID 17-1000 Honor the Texas Health and Human Services Foster Grandparent Volunteers, in partnership with Denton Parks and Recreation. City of Denton City Council Minutes August 15, 2017 Page 5 Mayor Watts and Kathy Schaeffer of the Parks Department recognized the volunteers and thanked them for their service. C. ID 17-1069 Mayor’s Summer Youth Jobs Program Mayor Watts presented the proclamation for the Mayor's Summer Youth Jobs Program. 3. PRESENTATION FROM MEMBERS OF THE PUBLIC A. Review of procedures for addressing the City Council. B. Receive Scheduled Citizen Reports from Members of the Public. 1. ID 17-1086 Debra Mendoza regarding a fight against Senate Bill 4 ("sanctuary cities" ban). Ms. Mendoza requested the City of Denton oppose Senate Bill 4 as it was discriminatory. 2. ID 17-1101 Robert Donnelly regarding city incompetence. Mr. Donnelly spoke on the change of a document that had not been done officially and requested a written explanation. He also felt the Denton landfill was operating in violation of its Specific Use Permit in particular the landscape plan. He requested a response to his complaint. 3. ID 17-1104 Mariela Nunez-Janes regarding Senate Bill 4. Ms. Nunez-Janes presented reasons why the city of Denton should join in the fight against Senate Bill 4 and encouraged Denton to become involved in opposing the Bill. 4. ID 17-1105 Cristal Benitez Lopez regarding Senate Bill 4. Ms. Benitez Lopez encouraged the City to oppose SB 4 as it discriminated against a certain segment of the population. She urged the Council to join the lawsuit against the legislation. C. Additional Citizen Reports 1.David Zoltner spoke regarding public speakers in conjunction with the Texas Open Meetings Act. He felt the information provided by the Legal Department at a prior council meeting was incorrect. 2.Willie Hudspeth spoke about the procedures during the Work Session and how citizens could not speak during that portion of the meeting. He presented his views on various items listed on the Work Session and Consent Agenda. City of Denton City Council Minutes August 15, 2017 Page 6 4.CONSENT AGENDA Council Member Hudspeth motioned, Mayor Pro Tem Bagheri seconded to approve the Consent Agenda and accompanying ordinances and resolution with the exception of Item A which would be considered individually. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Resolution No. R2017-029 B. ID 17-956 Consider approval of a resolution nominating one member to the Board of Managers of the Denco Area 9-1-1 District; and declaring an effective date. Ordinance No. 2017-224 C. ID 17-1030 Consider adoption of an ordinance approving a Commercial Operator Airport Lease Agreement between the City of Denton, Texas and James W. and Nancy C. Huff; and providing an effective date. The Council Airport Committee recommends adoption of the ordinance (3-0). Ordinance No. 2017-225 D. ID 17-1031 Consider adoption of an ordinance approving a Commercial Operator Airport Lease Agreement between the City of Denton, Texas and GAhangars, LLC; and providing an effective date. The Council Airport Committee recommends adoption of the ordinance (3-0). Ordinance No. 2017-226 E. ID 17-1057 Consider adoption of an ordinance approving a City sponsorship in an amount not to exceed $14,000 of in-kind services for the 19th Annual Denton Blues Festival to be held in Quakertown Park from September 15- 17, 2017; and providing an effective date. Ordinance No. 2017-227 F. ID 17-1059 Consider adoption of an ordinance of the City of Denton, Texas granting the Denton Black Chamber of Commerce a noise exception for September 17, 2017, pursuant to section 17-20 of the Code of Ordinances; granting amplified sound on Sunday, September 17, 2017 from 1 p.m. until 9 p.m. and setting an effective date. Approved the minutes listed below. G. ID 17-1061 Consider approval of the minutes of July 18, July 19 and July 25, 2017. Resolution No. R2017-030 H. ID 17-1062 Consider approval of a resolution allowing the Black Chamber of Commerce to sell alcoholic beverages for the Blues Festival on Saturday, September 16 and Sunday, September 17, 2017, held in Quakertown Park upon certain conditions; authorizing the City Manager or his designee to execute an agreement in conformity with this resolution; and providing for an effective date. City of Denton City Council Minutes August 15, 2017 Page 7 Ordinance No. 2017-228 I. ID 17-1063 Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the supply of irrigation parts for the City of Denton Parks Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 6365-awarded to Longhorn Inc. in the three (3) year amount not- to-exceed $300,000). Ordinance 2017-229 J. ID 17-1064 Consider adoption of an ordinance accepting competitive proposals and awarding a contract for overhead door and automatic gate repairs, maintenance, or replacement at City of Denton owned facilities; providing for the expenditure of funds therefor; and providing an effective date (RFP 6369-awarded to Ray McCain Services in the five (5) year not-to-exceed amount of $350,000). Ordinance No. 2017-230 K. ID 17-1065 Consider adoption of an ordinance authorizing the City Manager to execute a Cooperative Purchasing Program Agreement with the Aubrey Independent School District (ISD) under Section 271.102 of the Local Government Code, to authorize the use of City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 6514-Cooperative Purchasing Program Agreement with the Aubrey Independent School District). Ordinance No.2017-231 L. ID 17-1067 Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the Houston-Galveston Area Council of Governments (H-GAC) for the purchase of traffic signal hardware including pedestrian push button systems, illuminated street name signs, and emergency vehicle preemption devices, for the City of Denton Traffic Department; and providing an effective date (File 6360-awarded to Consolidated Traffic Controls, Inc. in the annual estimated amount of $200,000 for a four (4) year not-to-exceed amount of $800,000). Ordinance No. 2017-232 M. ID 17-1070 Consider adoption of an ordinance authorizing an Agreement between the City of Denton, Texas and the Denton Black Chamber of Commerce for the purpose of the 2017 Denton Blues Festival; authorizing the expenditure of funds; and providing for an effective date. ($200) Ordinance No. 2017-233 N. ID 17-1075 Consider adoption of an ordinance approving a temporary license agreement between the City of Denton and Zachry Construction Corporation for temporary access and use of (1) an approximate 3.44 acre tract of land situated at the northeast corner of the intersection of East McKinney Street and North Mayhill Road; and (2) an approximate 3.457 acre tract of land situated along the west side of the 2000 block of South Mayhill Road, authorizing the City Manager or his designee to execute City of Denton City Council Minutes August 15, 2017 Page 8 the agreement; and providing an effective date. (Temporary contractor office and staging areas for the current Mayhill Widening and Improvements project) Approved the appointment as noted below. O. ID 17-1084 Consider and confirm the appointment by the City Manager of a new member to the Civil Service Commission. Ordinance No. 2017-234 P. ID 17-1088 Consider adoption of an ordinance of the City of Denton, Texas amending certain provisions of Chapter 16 of the Denton Code of Ordinances, specifically Article VI Section 16-180, 16-181, 16-182, 16-183, 16-187 to provide for clarification of the definitions and permitting requirements applicable for filming within the City of Denton; providing for a severability clause, savings clause, and an effective date. Resolution No. R2017-031 Q. ID 17-1095 Consider approval of a resolution by the City of Denton denying Oncor Electric Delivery’s application to increase electricity rates for residential and commercial customers. Council considered Consent Agenda Item A. Ordinance No. 2017-223 A. ID 17-591 Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee to execute an agreement for interconnection and parallel operation of distributed generation with Target Corporation for the installation of a solar photovoltaic system; and providing an effective date. The Public Utilities Board recommends approval (5-0). Jessica Rogers, Energy Services Manager, presented information concerning the ordinance with the Target Corporation. Target was requesting installation of a solar photovoltaic system. She reviewed the agreement terms, recommendation and next steps in the process. Council Member Briggs motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. 5.ITEMS FOR INDIVIDUAL CONSIDERATION - CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS Ordinance No. 2017-235 A. ID 17-943 Consider adoption of an ordinance of the City of Denton ("City") finding that a public use and necessity exists to acquire various permanent easements and temporary construction easements generally located along Smith Street, the limits of whichbeing bounded to the northwest by Locust Street and to the southeast extending City of Denton City Council Minutes August 15, 2017 Page 9 beyond Smith Street to the East to the DCTA Rail Corridor and being situated in the S.C. Hiram Survey, Abstract 616 and the Alexander Hill Survey, Abstract No. 623, City of Denton, Denton County, Texas (Collectively the "Property Interests"), for the public use of, expansion, construction, maintenance, and operation of an electric transmission line, ancillary facilities and structures; authorizing the City Manager, or his designee, to acquire the Property Interests by agreement including making all offers required by law; authorizing the use of the power of eminent domain to condemn the Property Interests if an agreement cannot be reached; and authorizing the City Attorney, or his designee, to file eminent domain proceedings if necessary; authorizing the expenditure of funding; makings findings; providing a savings clause; and providing an effective date. \[Spencer to Locust TM Line Project\] Brent Heath, Executive Director of Energy Delivery, presented the Executive Summary detailing the need for the project and public involvement; regulatory agencies involved with CIP and Regulation review; displayed a map of the transmission line, reviewed the public involvement history; location map; and tracts involved for the Spencer to Locust transmission line project. He noted that he would display the legal description of property during the reading of the motion. Willie Hudspeth submitted a Speaker Card in opposition. Council discussed the easement going through a parking lot and that it had enough clearance for the setback requirements to maintain the parking spots. Mayor Pro Tem Bagheri motioned “I move that the City of Denton, having made the offers required by State law, use the power of eminent domain, if needed, to acquire a permanent easement interest covering a 0.901 acre tract of land being situated in the Eugene Puchalski Survey, Abstract No. 996, City of Denton, Denton County, Texas, and more particularly described on Exhibits “A” and “B” to the ordinance now under consideration and on the overhead screen being now displayed to the audience, all of which is for a valid public use necessary to provide the expansion, construction, maintenance, operation, and improvement of electric transmission lines, facilities, and structures, including substations, to serve the public and citizens of the City of Denton, Texas.” Council Member Gregory seconded the motion. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-236 B. ID 17-944 Consider adoption of an ordinance of the City of Denton ("City") finding that a public use and necessity exists to acquire a permanent easement covering a 0.901 acre tract of land situated in the Eugene Puchalski Survey, Abstract No. 996, City of Denton, Denton County, Texas ("Property Interests"), for the public use of, expansion, construction, maintenance, and operation of an electric transmission line, ancillary facilities and structures; authorizing the City Manager, or his designee, to acquire the Property Interests by agreement including making all offers required by law; authorizing the use of the power of eminent domain to condemn the Property Interests if an agreement cannot be reached; and authorizing the City Attorney, or his City of Denton City Council Minutes August 15, 2017 Page 10 designee, to file eminent domain proceedings if necessary; authorizing the expenditure of funding; makings findings; providing a savings clause; and providing an effective date. \[Hickory to Locust TM Line - Tract 90\] Brent Heath, Executive Director of Energy Delivery, presented the details of the project which was the Hickory to Locust Transmission Line. He reviewed the Executive Summary, CIP and Regulatory Review, map of the transmission lines, history of the project, and noted that he would display the legal description of the property as the motion was read. Council Member Gregory motioned, “I move that the City of Denton, having made the offers required by State law, use the power of eminent domain, if needed, to acquire a permanent easement interest covering a 0.901 acre tract of land being situated in the Eugene Puchalski Survey, Abstract No. 996, City of Denton, Denton County, Texas, and more particularly described on Exhibits “A” and “B” to the ordinance now under consideration and on the overhead screen being now displayed to the audience, all of which is for a valid public use necessary to provide the expansion, construction, maintenance, operation, and improvement of electric transmission lines, facilities, and structures, including substations, to serve the public and citizens of the City of Denton, Texas.” Mayor Pro Tem Bagheri seconded the motion. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. 6.ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2017-237 A. ID 17-1071 Consider adoption of an ordinance ordering an election to be held on November 7, 2017 for the purpose of submitting to the registered voters of Denton, Texas amendments to the Denton City Charter regarding residency requirements for city council members; percentage of petitioners required to trigger a recall election; clarifying the city internal auditor position and responsibilities; repealing and replacing Sections 14.04 and 14.05 of the Charter with a provision requiring the adoption of an ethics ordinance; and, providing for city council members to receive a monthly stipend; prescribing the time and manner of the conduct of the election to be in accordance with an agreement with Denton County; prescribing the form of the ballot; providing for notice; providing for publication of notice of this election; providing a severability clause; providing an open meetings clause; and providing an effective date. Bryan Langley, Deputy City Manager, reviewed the details of the proposed Charter amendment election. He presented information on the background of the proposal, the charges for the Committee, proposed amendments and next steps. Speaker cards were submitted by: Willie Hudspeth addressed concerns about the proposed amendments. Deb Armintor addressed the proposed amendments. City of Denton City Council Minutes August 15, 2017 Page 11 Jennifer Lane addressed the recall signature percentage proposal. Jodi Ismert addressed the stipend provision and the recall signature percentage proposal. Mayor Pro Tem Bagheri motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. B. ID 17-1091 Consider nominations/appointments to the City’s Boards and Commissions: Airport Advisory Board; Animal Shelter Advisory Committee; Community Development Advisory Committee; Health & Building Standards Commission; Historic Landmark Commission; Human Services Advisory Committee; Library Board; and Zoning Board of Adjustment. Jennifer Walters, City Secretary, reviewed the positions which needed nominations. Consensus of the Council was to proceed with the nominations that were listed in the backup materials. Council Member Briggs motioned, Mayor Pro Tem Bagheri seconded to approve the nominations as presented. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. 7. PUBLIC HEARINGS Ordinance No. 2017-238 A. Z17-0011b Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding an initial zoning of Employment Center Commercial (EC-C) zoning district and use classification on approximately 16 acres of land generally located on the north side of Barthold Road, approximately 340 feet west of the I-35 Southbound Service Road in the City of Denton, Denton County, Texas; adopting an amendment to the City’s official zoning map; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. The Planning and Zoning Commission recommended approval of the request (6-0). (Z17-0011) The Mayor opened the public hearing. Munal Mauladad, Director of Development Services, detailed the request in terms of location, site data, compatibility analysis, mobility, public notification, and recommendation. Dana Morse spoke in favor. The Mayor closed the public hearing. Mayor Pro Tem Bagheri motioned, Council Member Ryan seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member City of Denton City Council Minutes August 15, 2017 Page 12 Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. B. ID 17-993 Hold a public hearing on a proposal to adopt a tax rate of $0.637856 with a maximum allowable rate of $0.683340 per $100 valuation, which will exceed the lower of the effective or rollback tax rate. The Mayor opened the public hearing. Chuck Springer, Director of Finance, presented the property values and tax rate in terms of the proposed tax rate, effective tax rate, and rollback tax rate. He noted the budgetary priorities, cost containment in terms of FTE reductions, General fund revenues and expenditures, and total net city budget. There would be two additional public hearings, one on the tax rate and one on the budget adoption. The following individuals spoke during the public hearing: Jodi Ismert spoke in favor Deb Armintor spoke in favor Jennifer Lane spoke in favor The Mayor closed the public hearing. No action was needed on this item at this meeting. C. S17-0004a Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a Specific Use Permit for a drive-through facility in a Downtown Commercial General (DC-G) zoning district and use classification on approximately 1.11 acres of land generally located east of North Texas Boulevard, between I-35E and Wilshire Street in the City of Denton, Denton County, Texas; adopting an amendment to the City’s official zoning map; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. The Planning and Zoning Commission recommended approval of the request with a condition (6-0). (S17-0004) The Mayor opened the public hearing. Munal Mauladad, Director of Development Services, presented the details of the request for a specific use permit for a drive-through restaurant. She noted the background of the property before and after right-of-way acquisition for the I35 widening project, the proposed site plan, landscape plan, elevations, analysis of the SUP criteria, zoning analysis, future land use map, mobility, and public notification. Greg Massey representing McDonald's spoke in favor. Council discussed the access points for the proposal, square footage of the building, number of car trips per day and at peak times. City of Denton City Council Minutes August 15, 2017 Page 13 Jimmy Lopez representing McDonald's spoke in favor. Neil Smatresk representing UNT spoke in opposition. Bob Brown representing UNT spoke in opposition. Jennifer Lane spoke in opposition. Sejin Brooks representing McDonald's spoke in favor. The Mayor closed the public hearing. Council discussed the traffic and pedestrian traffic in the area. Mr. Lopez stated that they would be agreeable to postponing the application and working with city staff and UNT to devise new proposal. Council Member Gregory motioned, Council Member Duff seconded to postpone the proposal to th the November 7 City Council meeting. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-239 D. Z17-0014a Hold a public hearing and consider adoption of an ordinance to rezone approximately 5.21 acres from Industrial Center Employment (IC-E) District to a Regional Center Commercial Downtown (RCC-D) District. The subject property is generally located on the west side of the I-35 Southbound Service Road and approximately 1,000 feet south of West University Drive. The Planning and Zoning Commission voted 5-0 to approve the request. (Z17-0014, Duluth Trading Co. & Northern Tools + Equipment). Munal Mauladad, Director of Development services, presented the request and site data, compatibility analysis, future land use map, public notification, and recommendations. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing Council Member Ryan motioned, Council Member Hudspeth seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", Mayor Pro Tem Bagheri "aye", and Mayor Watts "aye". Motion carried unanimously. City of Denton City Council Minutes August 15, 2017 Page 14 8. 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. Council Member Gregory requested a Work Session regarding the City joining the lawsuit against SB4. Council Member Briggs requested information on the landfill specific use permit requirements. Council Member Briggs requested a Work Session on Section 3.12.10(p) regarding musician/artist studios specific use permits. Council Member Briggs requested a staff report on SB 4. Council Member Duff requested a staff report on the feasibility of capturing heat from the steam engines for additional power. Mayor Pro Tem Bagheri requested a Work Session on a regional traffic signal data pilot program for data transportation. Mayor Pro Tem Bagheri requested a Work Session on the privacy issue associated with the Waze app. Mayor Pro Tem Bagheri requested an Informal Staff Report regarding electric charging for trucks. Council Member Ryan requested staff investigate a Denton PD app for tips on traffic violations. Mayor Watts requested staff provide the previous speaker with information on the landfill specific use permit and the Mobility Plan explanation if there was a resolution to the Mobility Plan problem. B. Possible Continuation of Closed Meeting topics, above posted. There was no continuation of the Closed Meeting. City of Denton City Council Minutes August 15, 2017 Page 15 With no further business, the meeting was adjourned at 10:03 p.m. __________________________ CHRIS WATTS MAYOR CITY OF DENTON, TEXAS __________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES August 22, 2017 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, August 22, 2017 at 1:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Duff, Council Member Ryan, Council Member Gregory, Mayor Pro Tem Bagheri, and Mayor Watts. ABSENT: None. 1. Work Session Reports A. ID 17-560 Receive a report, hold a discussion, and give staff direction regarding the Stoke Denton entrepreneur center’s first year of operations and the Management Agreement between the City of Denton and the Dallas Entrepreneur Center. Council Member Gregory recused himself from deliberation on this item. Caroline Booth, Director of Economic Development, presented the information regarding Stoke Denton in terms of background and year 1 of operations and management. Background information included objectives, initiatives, and the public/private partnership. She reviewed the ordinances that approved the Stoke agreement and the provisions of those ordinances. A timeline detailing the progress of Stoke Denton was reviewed. Heather Gregory, Director-Stoke Denton, presented the metrics of the program in terms of mission statement, baseline metrics, member satisfaction, and Stoke programs. Council discussed what was involved with the various benchmarks presented, what the occupancy rate represented; definition of graduation rate, and what the business generation and growth represented. Booth continued with fiscal information detailing the Stoke budget and expenditures for 2014-15, 2015-16 and 2016-17. Council questioned what benefits the City was receiving from this program and the breakdown of utility costs. Booth continued with the analysis of the program which showed eliminating Stoke as an economic development program would be detrimental to Denton's targeted efforts to grow local entrepreneurial and tech businesses and recruit new ones to the community. Council discussed that some of the number represented non-tech companies which tended to skew the figures. Booth continued with the analysis of the year 1 performance and noted that it had been successful. Options for the management agreement were presented along with staff recommendations. Staff was seeking direction regarding Stoke Denton's management for 2017-18. Trey Bowles, DEC, responded to questions regarding Stoke's profit and loss figures. City of Denton City Council Minutes August 22, 2017 Page 2 Council continued discussing the recommended goals for a future contract; preferred options for continuation of the contract; and the role of the program in the community. Consensus of the Council was to move forward with Option 3. Council Member Gregory returned to the meeting. Item D was considered. D. ID 17-1096 Receive a report, hold a discussion, and give staff direction on the City Council Employee Benefits Ad Hoc Committee recommendations for vacation and sick leave changes. Carla Romine, Director of Human Services, presented the recommended changes from the Council Committee to vacation and sick benefits. She reviewed the background of the review and the associated timeline. The employee comment process was noted. Vacation benefits - Romine reviewed the current vacation benefits for non-civil service employees and civil service employees including bonus accrual, maximum carry over and pay out upon termination. Employee feedback on vacation was presented along with a comparison of the current vacation benefit with the committee's recommended changes. Council discussed the reasoning for the recommended changes; whether Denton would be reducing the above average vacation benefits to average benefits and the reasoning for cutting hours back at year 20. Romine continued with the fiscal impact of the proposed vacation benefit changes. Council discussed the reasoning why all of the employees were considered the same for the vacation benefits; whether the amount of savings would be beneficial versus some other benefit in terms of long term employees; and where the vacation funds were budgeted. Mayor Watts noted that he was in favor of keeping the current benefit with no changes. Council Member Briggs stated that the proposed change in the vacation benefit went in concert with sick leave additions. Council Member Ryan suggested some type of cash out when an employee was over the allotted vacation time. Council Member Gregory felt that average should not be the goal for benefits and he was not in favor of changing vacation at this time. Romine continued with current sick leave benefits; maximum annual accrual; pay out upon termination; employee feedback consensus; and committee recommended changes compared to current benefits. The Committee was recommending increasing sick leave to 10 hours per month as opposed to 8 hours. City of Denton City Council Minutes August 22, 2017 Page 3 Council Member Ryan suggested considering sick leave payout. Mayor Watts noted that he was in favor of the two additional sick hours and with keeping the status quo with vacation. Council Member Gregory and Briggs suggested future consideration of some type of parental leave instead of having to use sick/vacation. Consensus of the Council was to maintain vacation benefits in the current form and add two hours of sick leave per months. B. ID 17-793 Receive a report, hold a discussion, and give staff direction regarding Williams Square. Caroline Booth, Director of Economic Development, presented information about the current uses and potential uses for the area. Staff was seeking direction on potential uses of Williams Trade Square and whether Council was interested in staff bringing forward projects for lease or sale of the property. Council Member Briggs stated that she would like to produce documents for the public to view in terms of the deed. She was in favor of keeping the current use but would be open to proposals. Mayor Watts noted that he would prefer to keep the current use but would be open to proposals. Council Member Gregory stated that he was not opposed to more discussions as long as there would be more free public parking. Council Member Briggs stated that she would like to share the legal opinion on potential actions associated with the property. Mayor Pro Tem Bagheri stated that she would be in favor of releasing the opinion. Council Member Gregory stated that he would be open to discussions that might come up and did not oppose the release of the opinion. Council Member Duff stated that he would be open to suggestions for the use of the property. Council Member Ryan stated that he was not opposed to releasing the attorney’s report. Council Member Hudspeth stated he was not in favor of a parking garage. Mayor Watts questioned what document would be released. Interim City Attorney Leal stated that legal advice was provided to Council under attorney-client privilege. Council could authorize release of documents. However, when the Council waived the privilege Council needed to take into account that some waivers could come back to expose the City to litigation or other types of impacts such as with an economic development deal. On the City of Denton City Council Minutes August 22, 2017 Page 4 other hand, there were other types of legal opinions that would be more open to be release to the public. This particular opinion was whether the City could sell or have other uses for the Williams Trade Square. He did not think releasing the document would be detrimental. Mayor Watts questioned exactly what document would be released. Interim City Attorney Leal stated that it would only be the opinion from the outside attorney. Mayor Watts wanted to make it clear that this was not an open ended request and was only for this one specific document. The waiver was for only this document in this situation. After this release anything else would be different information and would not be automatically released. Council Member Hudspeth felt that making this document available might present a situation where it could it be used against the City to keep it in a particular situation. Consensus of the Council was to make the document available to the public. In terms of the use of the property, they were open to proposals if presented. C. ID 17-979 Receive a report; hold a discussion, and give staff direction regarding the FY 2017-18 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. Chuck Springer, Director of Finance, stated that the HOT Committee met today and that the funds that were available was what they proposed for the budget. He reviewed the revenue funds for the Police Academy Special Revenue Fund. E. ID 17-1121 Receive a report, hold a discussion, and give staff direction regarding a compressed natural gas (CNG) fueling facility at the intersection of Mayhill Road and Spencer Road. Ethan Cox, Director of Solid Waste, presented information on the status of CNG. Council had recommended a CNG station for City of Denton use only but requested staff first search for existing CNG stations to tap into. He presented information on the closest existing CNG stations in the local area and possible Denton CNG stations in terms of operating expenses and risks. He noted that a presentation was done at the PUB meeting and PUB recommended approval of the COD fueling stations as proposed, without the public sales. Cox presented options for Council consideration and a financial options summary. Staff was recommending Option 1. Consensus of the Council was to proceed with Option 1. Following the completion of the Work Session, the City Council was to convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: City of Denton City Council Minutes August 22, 2017 Page 5 A. ID 17-990 Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086. Receive competitive public power competitive information and financial information from staff regarding the proposed FY 2017-2018 operating budget for Denton Municipal Electric ("DME") including without limitation, proposed rates for DME for FY 2017-2018, expected revenues, expenses, commodity volumes, and financial commitments of DME; discuss, deliberate and provide staff with direction. B. ID 17-1099 Consult with Attorneys - Under Texas Government Code Section 551.071; Deliberations regarding Real Property - Under Texas Government Code Section 551.072. Consult with and provide direction to City’s attorneys regarding legal issues and legal strategies associated with the possible access, occupation and/or use of the City’s right of way for fiber and/or fiber conduit by Zayo Group, LLC, including possible access, occupation, and/or use of the City’s right of way pursuant to an Exchange Agreement with the Denton Independent School District and the County of Denton, Texas effective July 28, 2015; a public discussion of these legal issues and legal strategies would conflict with the duty of the City’s attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. The Council did not convene into Closed Session. The City Council convened in a Special Called Meeting at which the following items. Mayor Pro Tem Bagheri left the meeting. 1.ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 17-559 Consider nominations/appointments to the City’s Economic Development Partnership Board. Caroline Booth, Director of Economic Development, presented the background information on how the members were nominated and appointed along with a list of the nominees. Those nominations included Bob Eames, Aviation; Jill Jester, Chamber of Commerce; Keely Briggs, City Council; Gerard Hudspeth, City Council; Jim Fykes, Top 20 Taxpayer; and John Baines, Denton Black Chamber of Commerce. Council Member Gregory motioned, Council Member Hudspeth seconded to approve the nominations. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No.2017-240 B. A17-0001d Conduct the second of two readings and consider adoption of an ordinance of the City of Denton voluntarily annexing approximately 118.041 acres of land, generally located north of McKinney Street and west of Trinity Road; providing City of Denton City Council Minutes August 22, 2017 Page 6 for a correction to the city map to include the annexed lands; providing for a savings clause and an effective date. Ron Menguita, Long Range Planning Administrator, presented the information concerning the proposed annexation and the annexation schedule. He read the ordinance caption into the record. Council Member Gregory motioned, Council Member Ryan seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-241 C. A17-0004d Conduct the second of two readings and consider adoption of an ordinance of the City of Denton for an involuntary annexation of approximately 6.71 acres of land, generally located north of Brush Creek Road and east of Fort Worth Drive by the City of Denton, Texas; providing for a savings clause and an effective date. Ron Menguita, Long Range Planning Administrator, stated that this was the second reading for the annexation ordinance. He presented the proposed development and location of the property. He also reviewed the annexation schedule and read the ordinance caption in to the record. Council Member Ryan motioned, Council Member Hudspeth seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. Resolution No. R2017-032 D. ID 17-1131 Consider approval of a resolution by the City of Denton, Texas, approving the grant application for "Denton - Specialized Regional Response Teams Sustainment" project for fiscal year 2016 to the Office of the Governor; authorizing the City Manager or his agents official authority over this project; declaring an effective date; and requiring delivery of the Resolution to the Office of the Governor; and providing an effective date. City Manager Hileman presented information concerning the grant application. Council Member Briggs motioned, Council Member Ryan seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-242 E. ID 17-1137 Consider adoption of an ordinance of the City of Denton adopting and approving a design manual in accordance with Chapter. 284, Deployment of Network Nodes in Public Right-of-Way, Tex. Local Gov’t code; and providing an effective date. City of Denton City Council Minutes August 22, 2017 Page 7 Mario Canizares, Assistant City Manager, presented an overview of Senate Bill 1004 regarding the purpose of the bill, highlights and implementation plan. The legislation required compliance st by all cities with a September 1 deadline. He noted what companies were involved. Council discussed procedures if two companies requested the same pole at the same location. Canizares continued with key provisions of SB 1004; implementation process; implementation plan and recommendations. Council discussed whether the cities were passing similar ordinances or would the ordinances be different for each city; was there a difference with TxDOT roads versus City roads; cost recovery for allowed fees; and coordinate with Traffic if a request was to put a device on a traffic signal. Council Member Gregory motioned, Council Member Briggs seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-243 F. ID 17-1138 Consider adoption of an ordinance of the City of Denton adopting and approving fees related to implementation of Chapter 284, Tex. Local Gov’t Code; and providing an effective date. Council Member Ryan motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-244 G. ID 17-1139 Consider adoption of an ordinance of the City of Denton adopting and approving a uniform Chapter 284 service pole wireless network node collocation attachment license agreement; authorizing the City Manager or designee to execute said agreements; and providing an effective date. Council Member Hudspeth motioned, Council Member Ryan seconded to adopt the ordinance. . On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance No. 2017-245 H. ID 17-1140 Consider adoption of an ordinance of the City of Denton authorizing the City Attorney to negotiate and draft municipally owned utility pole wireless network node collocation attachment license agreement with network providers as needed; authorizing the City Manager or designee to execute an effective date. Council Member Briggs motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council City of Denton City Council Minutes August 22, 2017 Page 8 Member Duff "aye", Council Member Ryan "aye", Council Member Gregory "aye", and Mayor Watts "aye". Motion carried unanimously. 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. Council Member Duff requested a report on the loss in revenue from property and sales taxes if the McDonalds project did not go forward. Council Member Hudspeth requested a presentation on parameters for posted agendas items and the number of times it had been challenged. Council Member Ryan requested staff research the placement of council subcommittees posted on the website. Council Member Briggs requested a traffic study for Wind River and how traffic will affect that area with the Bucee’s opening. Council Member Briggs requested a staff report on the wave of retirements/departures of employees and how that affected the budget this year. Council Member Briggs requested information on minimizing extra utility poles around the city. Council Member Briggs requested a report on the communication breakdown with the Employee Insurance Committee and how prevent something similar in the future. Council Member Gregory requested a report on the number of street lights on University Drive. B. Possible Continuation of Closed Meeting topics, above posted. There was no continuation of the Closed Meeting. With no further business, the meeting was adjourned at 6:06 p.m. City of Denton City Council Minutes August 22, 2017 Page 9 __________________________ CHRIS WATTS MAYOR CITY OF DENTON, TEXAS __________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1173,Version:1 AGENDA CAPTION ConsideradoptionofanordinanceoftheCityofDentonauthorizinganagreementbetweentheCityofDenton, TexasandGivingHope,Inc.forthepurposeofHomelessPreventionAssistance;providingfortheexpenditure of funds therefor; and providing for an effective date. ($450) City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: CM/ DCM/ ACM: Todd Hileman DATE: September 12, 2017 SUBJECT Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Giving Hope, Inc. for the purpose of Homeless Prevention Assistance; providing for the expenditure of funds therefor; and providing for an effective date. ($450) BACKGROUND This Agreement allows for the total expenditure of $450 from Council Contingency Funds. (Mayor Chris Watts) Key provisions of the Agreement include: Funds shall be used for expenses for Homeless Prevention Assistance. In addition to other reporting requirements, documentation in the form of cancelled checks and/or corresponding receipts specifically detailing expenditure of funds for the purpose provided is required for reimbursement from these designated funds. FISCAL INFORMATION Funding for the Agreement will come from Council Contingency Funds. STRATEGIC PLAN RELATIONSHIP -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: Safe, Liveable & Family-Friendly Community Related Goal: 4.4 Provide and support outstanding leisure, cultural, and educational opportunities EXHIBITS 1. Agenda Information Sheet 2. Ordinance 3. Agreement Respectfully submitted: Todd Hileman City Manager Prepared by: Robin Fox Senior Executive Assistant City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1191,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or designee, to execute Agreements for Interconnection and Parallel Operation of Distributed Generation as needed; authorizing the expenditure of funds therefor; and providing an effective date. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Legal / Denton Municipal Electric CM/ DCM/ ACM: Todd Hileman DATE: September 12, 2017 SUBJECT Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or designee, to execute Agreements for Interconnection and Parallel Operation of Distributed Generation as needed; authorizing the expenditure of funds therefor; and providing an effective date. BACKGROUND Denton Municipal Electric (DME) Customers that choose to install a distributed generation (DG) resource which could potentially return electricity to th componen Ordinances, Section 26-54. DME uses the information provided to perform necessary pre-interconnection studies, including assuring all installations meet all applic Additionally, the Interconnection Agreement allows DME to track and record locations of installed DG systems, assure DG systems are maintained as required by DME Service Standards and all applicable codes and ordinances, and access is granted to premises for City personnel to inspect, read, test, or disconnect the DG system if a hazardous condition exists or immediate action is necessary to protect persons, City facilities, or other properties. Terms of the Interconnection Agreement Include: Identification of system (ID number, location, ownership, etc.) Establishing point of interconnection Setting testing and approval procedures Setting access and inspection rights Establishing customer requirements (e.g. maintenance of system) Determining City obligations to accept or pay for produced energy (if system is a renewable source) o Note: The City is not obligated to accept or pay for energy produced by any systems or units over 50 kW unless a separate agreement has been entered into. Establishing risk and insurance requirements Setting procedures for disconnection and/or termination of agreement Throughout FY 2017, DME has seen an increase in the volume of customers wishing to install DG resources this trend is expected to continue. At this time, the only interconnected systems are solar panels and battery storage systems. To date in FY 2017, DME has received 45 applications for interconnection for solar installations alone and staff has seen a large volume of inquiries related to applications that will be filed in FY 2018. In order to increase the efficiency of the application process and expedite the approval timeline, this ordinance will authorize the City Manager, or designee, to execute Interconnection Agreements RECOMMENDATION Staff recommends the City Council consider adoption of an ordinance authorizing the City Manager, or designee, to execute Agreements for Interconnection and Parallel Operation of Distributed Generation as needed. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Utilities Board will consider recommending approval on September 11, 2017 (PUB17-169). STRATEGIC PLAN RELATIONSHIP -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: Sustainable & Environmental Stewardship Related Goal: 5.3 Improve energy efficiency and conservation EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance Exhibit 3: Agreement for Interconnection and Parallel Operation of Distributed Generation Respectfully submitted: Bryan Langley Deputy City Manager Prepared by: Jessica Rogers Energy Services Manager THE STATE OF TEXAS § § COUNTY OF DENTON § AGREEMENT FOR INTERCONNECTION AND PARALLEL OPERATION OF DISTRIBUTED GENERATION THIS INTERCONNECTION AGREEMENT ______ day of ________________, 20__, by the City of Denton, with its electric utility department operating an electric system, referred to for Public Utility Commission of Texas and ERCOT purposes as DENTON MUN__________________________________________ ( ________________________________________________ \[specify the name of any entity, if any; the type of entity, if any; and the address of any entity\] hereafter sometimes referred to WHEREAS, DME desires to permit electric customers having electric generating facilities located within the City limits of Denton, Texas, to offset a part of their electrical requirements by utilization of c system or in accordance with Schedule DGR or ancillary contract; and WHEREAS, Customer desires to interconnect the electric generating facilities to Electric Utility System; and WHEREAS, Customer has completed and submitted the Application for Interconnection and Parallel Operation of Distributed Generation with the Utility System to the City, which is incorporated herein as Exhibit A, and the City has conducted its pre-interconnection studies to determine whether the City can make available and Customer is qualified to enter into such an arrangement for such distributed energy resource interconnection with Utility System; and WHEREAS, both the City and Customer desire to enter into this Agreement, under the terms, conditions, and subject to the limitations set forth below, NOW THEREFORE, in consideration of the premises and the mutual covenants set forth herein, the City and Customer hereby AGREE as follows: 1. Scope of Agreement. City shall permit Customer to interconnect and operate an electric generating facility, Electric Utility System in accordance with the terms of this Agreement. PROVIDED HOWEVER, that this Agreement is applicable to conditions under which the City and the Customer agree that one or more generating facility or facilities operating less tility System AND Customer provides the City with generation data either through web link access or monthly reports. 2. Definitions. a. b. Electric Utility System. Agreement for Interconnection and Parallel Operation of Distributed Generation tğŭĻ Њ ƚŅ Б c. designee. d. or used by the City in connection with its delivery of electric energy to the City customers. e. Utility System as is more fully described in Exhibit A, attached hereto and incorporated herewith. f. 60 kilovolts, which will be interconnected and operated in parallel with Electric Utility System. This shall include any and all related equipment necessary, as determined by the City, for the safe operation and interconnection of the electric generating facilities to the Electric Utility System. g. the City to a Power Producing Facility. h. 3. Identification of Power Producing Facility. The Power Producing Facility referred to herein shall refer solely to the Power Producing Facility identified, located and described in this section: a. Type: __________________________ b. PPFID: __________________________ c. PPF Rating: __________________________ d. Site Address: _______________________________ _______________________________ _______________________________ 4. Establishment of Point of Interconnection. The City and Customer agree to interconnect the provisions of the City of Denton, Texas Code of Ordinances; and any applicable Public Utility Commission of Texas Substantive Rules (including §25.211 relating to Interconnection of Distributed Generation and §25.212 relating to Technical Requirements for Interconnection and Parallel Operation of On-Site generation, and as described in the attached Exhibit A. 5. Interconnection. a. Energy transferred from the PPF to the Electric Utility System under this Agreement shall be deemed delivered at the selected metering point on the premises identified in Section 3 above. Agreement for Interconnection and Parallel Operation of Distributed Generation tğŭĻ Ћ ƚŅ Б b. It is expressly understood and agreed by the parties hereto that the interconnection and monitoring of electric flow contemplated by this Agreement shall be accomplished by appropriate metering facilities owned and installed by the City. The PPF shall be responsible for all expenses associated with the purchase and installation of specialized metering facilities, including but not limited to dual metering arrangements and/or bi-directional meters. 6. Testing and Approval of Facility. a. The Customer shall install and maintain protective devices for the PPF as required by Electric Utility Engineering. The protective devices shall be tested and approved by Electric Utility Engineering prior to commencing parallel operations with the Electric Utility System. Further testing of the protective devices shall be conducted any time that modifications are made to the PPF. The City shall have the right to have representatives present at any testing of t b. The PPF shall not commence parallel operations with the City until written approval of the interconnection facilities has been granted by the General Manager . Such approval shall not be unreasonably withheld, provided that Customer has complied with all City requirements. 7. Access and Premises. The City ters; or (c) to disconnect, without notice whenever necessary, the PPF from the Electric Utility System if, in the City and such immediate action is necessary in order to protect persons, City facilities, or property of others from damage or interference caused by the PPF, or lack of properly operating PPF protective devices. 8. Maintenance and Permits. The Customer shall: (a) maintain the PPF in a safe and prudent manner, and in conformance with all applicable laws and regulations, including, but not limited to, those set forth in Exhibit A to this Agreement and the PUC Distributed Generation Interconnection Manual; and (b) obtain any governmental authorizations and permits as required for the construction and operation of the PPF and interconnection facilities. The PPF shall reimburse the City for any and all losses, damages, claims, authorizations and permits required for the construction and operation of the PPF. 9. Representations of Customer. Customer further agrees and represents to the City that the distributed generation equipment of Customer shall be designed, installed, connected, operated and m standards now in force; the applicable UL standards that are in force at the time of the execution of this Agreement; the applicable IEEE standards \[particularly IEEE 929-2000 and IEEE 1547-2003\] that are in standards in force at the time of the execution of this Agreement; the applicable ERCOT Operating Guides in force at the time of the execution of this Agreement; as well as any other applicable local, state, or federal codes, statutes, and regulations in force at the time of the execution of this Agreement . 10. Responsibilities of Customer. The Customer will, at its own cost and expense, operate, maintain, repair, inspect, and shall be fully responsible for the PPF which it now or hereafter may own unless otherwise specified on Exhibit A. Customer shall conduct operations of its PPF(s) in compliance with all applicable local, state, or federal codes, statutes, and regulations. The maintenance of the PPF shall be Agreement for Interconnection and Parallel Operation of Distributed Generation tğŭĻ Ќ ƚŅ Б Customer agrees to cause their PPF to be constructed in accordance with specifications equal to or greater n. The Customer covenants and agrees to design, install, maintain, and operate, or cause the design, installation, maintenance, and operation of the PPF so as to reasonably minimize the likelihood of a disturbance affecting or impairing the Electric Utility System, or other systems with which the Customer is interconnected. The City will notify Customer if there is evidence that the PPF operation causes disruption or deterioration of service to other customers served from the same grid, or if the PPF operation causes damage to the Electric Utility System. Customer will immediately notify the City of any emergency or hazardous condition or occurrence with the PPF that could affect safe operation of the Electric Utility System. 11. Interruption or Reduction of Deliveries. a. The City The City shall not be obligated to accept or pay for produced energy from a generating unit larger than 50 KW unless a separate agreement has been entered into between the Customer and the City. For generating units from a renewable source not more than 50 KW, City electric tariff Schedule DGR shall apply. The City may require the Customer to interrupt or reduce deliveries of available energy in the following instances: (1) When the General Manager determines that it is necessary in order to construct, or install, or maintain, or repair, or replace, or remove, or investigate any of the City equipment or any part of its Electric Utility System; (2) If the General Manager determines that curtailment, interruption, or reduction is necessary because of emergencies, or forced outages, or force majeure, or compliance with prudent electrical practices; (3) Notwithstanding any provision of this Agreement, the City shall have the right to disconnect the PPF from the Electric Utility System if it determines that either: (a) the PPF or its operation may endanger City personnel, or (b) the continued operation of the PPF may endanger the integrity of the Electric Utility System. The PPF shall remain disconnected until such time as the City is satisfied that the objectionable conditions have been corrected or no longer exists; or (4) The City discovers or learns of PPF manufacturer defects or deficiencies that may have adverse operational impacts on the Electric Utility System. Customer and the City clearly understand and agree that the City will not accept nor assume any liability for interrupting the interconnection between the PPF and the Electric Utility System. The City is authorized disconnect switch, disconnecting the PPF at the El any other action that physically separates the PPF from the Electric Utility System. The City will attempt to provide sufficient Customer notice prior to interconnection disconnection, but Customer notice is not necessary for immediate PPF isolation should a condition warrant immediate interconnection disconnection as determined by the City. 12. Limitation of Liability and Indemnification. a. Neither the City nor Customer shall be liable to the other for damages for any act that is beyond such party's control, including any event that is a result of an act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident to Agreement for Interconnection and Parallel Operation of Distributed Generation tğŭĻ Ѝ ƚŅ Б machinery or equipment, a curtailment, order, or regulation or restriction imposed by governmental, military, or lawfully established civilian authorities, or by the making of necessary repairs upon the property or equipment of either party. b. Notwithstanding the other provisions of this Agreement, Customer agrees to indemnify, defend, and hold harmless the City of Denton, as well as all of their present, future and former elected officials, agents, employees, officials and representatives in their official, individual and representative capacities from and against any and all claims, demands, causes of action, and damages (whether common law or statutory, and whether actual, punitive, consequential or incidental) of any conceivable character, due to or arising from injuries to persons (including death), or to property (both real, personal and mixed) created by, arising from, or in any manner relating to the PPF, including (a) engineering, design, construction, maintenance, repair, operation, supervision, inspection, testing, protection or ownership of; or (b) the making of replacements, ing those arising through strict liability and those arising under the constitutions of the United States and of the State of Texas. c. The City and Customer shall each be directly responsible for the safe installation, maintenance, repair and condition of their respective lines and appurtenances on their respective sides of the point of delivery. The City does not assume any duty of inspecting t or other equipment and will not be responsible therefore. Customer assumes all responsibility for the electric service Customer supplies hereunder and the facilities used in connection therewith at or beyond the point of delivery, the point of delivery being the point where the electric energy first leaves the wire or facilities provided and owned by the City and enters the wire or facilities provided by Customer. d. For the mutual protection of the Customer and the City, only with the City authorization, are the connections between the City entrance conductors to be energized. e. The provisions of this Section 12 shall not be construed to relieve any insurer of its obligation to pay any insurance claim in accordance with the provisions of any valid insurance policy. f. If the Customer fails to comply with the insurance provisions of this Agreement, the Customer shall, at its own cost, defend, save harmless and indemnify the City of Denton, its elected officials, officers, employees, agents, assignees, and successors in interest from and against any and all loss, liability, damage, claim, cost, charge, demand, or expense of any kind or nature (including and other costs of litigation) resulting from the death or injury to any person, or damage to property, including the personnel and property of the City of Denton, to the extent the City of Denton would have been protected had the Customer complied with all such insurance provisions required hereunder. The inclusion of this section is not intended to create any express or implied right in the Customer to elect not to provide the required insurance in Section 13 hereof. The provisions of this subsection shall survive the termination of this Agreement. g. If the Customer applied and received an incentive from the City, Customer shall comply with all guidelines acknowledged in the GreenSense Incentive Program Manual. If the Customer fails to meet any ongoing Program requirements stated in the GreenSense Incentive Program Manual, Customer shall repay to the City the incentive related the system. The refund amount is calculated as: \[incentive received\] x \[5 number of full years the system was operational\] x 0.2. Agreement for Interconnection and Parallel Operation of Distributed Generation tğŭĻ Ў ƚŅ Б 13. Insurance Required. Customer represents that, at the time of the execution of this Agreement, Customer has currently in force and effect property insurance on the premises described in Section 3 hereof, in the amount of the current value of the premises, and comprehensive personal liability insurance covering the premises in a minimal amount of not less than $100,000 per occurrence. Customer further represents that Customer shall maintain such insurance in force for the duration of this Agreement. Customer agrees to provide a copy of the insurance policy or a valid certificate issued by the insurer (in a form satisfactory to the City) to the City continuing coverage upon reasonable request given to Customer. The insurance herein provided in Section 13 shall, by endorsement to the policy or policies, provide for thirty (30) days written notice to the City prior to cancellation, termination, alteration, or material change of such policy or policies of insurance. 14. Right of Access, Equipment Installation, Removal & Inspection. Upon reasonable notice, the City may send qualified representatives to the premises of the Customer at or immediately before the time the PPF (including any testing), startup, and operation for a period of up to no more than three (3) days after initial startup of the unit. Following the initial inspection process described above, the City may send an employee to the premises, at reasonable hours, or at any time without notice, in the event of an emergency or hazardous condition, as determined by the City. The City shall have access to Custom reasonable purpose in connection with the performance of the obligations imposed on it by this Agreement or if necessary to meet its legal obligation to provide service to its other customers. 15. Disconnection of Unit or Termination of Agreement. The City or Customer may terminate this Agreement, at will and without cause, by giving written notice of termination to the other party not less than thirty (30) days prior to the date of termination. PROVIDED HOWEVER, this Agreement shall automatically terminate upon (1) the disconnection of electric utility service to the premises due to the delinquency of payment of Customer (that is the same rules regarding late payment and disconnection that all other ratepayers of the City have); change in the ownership of the premises by Customer; or (4) the failure to maintain the insurance coverage required under Section 13 above; or (5) the failure to comply with all terms of this Agreement.. All PPF equipment shall be completely disconnected and isolated from the Electric Utility System upon termination been disconnected. The City reserves the right to disconnect the PPF equipment itself or hire a local qualified electrician to perform such work at the sole expense of the Customer, if Customer fails to properly perform such work within seven (7) days of the date of the Agreement termination. 16. Notices. Notices given under this Agreement are deemed to have been duly delivered if hand delivered or sent by United States certified mail, return receipt requested, postage prepaid, to: (a) If to the City: General Manager Denton Municipal Electric 1659 Spencer Road Denton, Texas 76205 With a copy to: City of Denton 215 E. McKinney St. Agreement for Interconnection and Parallel Operation of Distributed Generation tğŭĻ Џ ƚŅ Б Denton, Texas 76201 (b) If to Customer: As provided in Exhibit A The above-listed names, titles, and addresses of either Party may be changed by written notification to the other Party. 17. Entirety of Agreement and Prior Agreements Superseded. This Agreement, including Exhibit A, which is expressly made a part hereof for all purposes, constitutes the entire agreement and understanding between the Parties with regard to the interconnection of the facilities of the Parties at the Points of Interconnection expressly provided for in this Agreement. The Parties are not bound by or liable for any statement, representation, promise, inducement, understanding, or undertaking of any kind or nature (whether written or oral) with regard to the subject matter hereof not set forth or provided for herein. This Agreement replaces all prior agreements and undertakings, oral or written, between the Parties with regard to the subject matter hereof. It is expressly acknowledged that the Parties may have other agreements covering other services not expressly provided for herein, which agreements are unaffected by this Agreement. 18. Governing Law and Regulatory Authority. This Agreement was executed in the State of Texas and must in all respects be governed by, interpreted, construed, and shall be exclusively enforced in accordance with the laws thereof. The provisions and obligations of this Agreement are performable in the City of Denton, Denton County, Texas. Venue shall lie for any lawsuit dealing with this Agreement in the courts of Denton County, Texas. 19. . Should either Party to this Agreement commence legal proceedings against the other to enforce the terms and provisions of this Agreement, the Party who does not substantially prevail in to expert witness fees and deposition expenses) incurred by the prevailing Party. 20. Severability. If any term or provision of this Agreement is held by a court to be illegal, invalid, or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this Agreement shall not be affected thereby, and in lieu of each illegal, invalid or unenforceable term or provision there shall be added automatically to this Agreement a legal, valid or enforceable term or provision as similar as possible to the term or provision declared illegal, invalid, or unenforceable. 21. Amendment. This Agreement may be amended only upon mutual agreement of both of the Parties hereto, which amendment will not be effective until it is reduced to writing and executed by the Parties. 22. Invoicing and Payment. Invoicing and payment terms for services associated with this Agreement shall be based upon and consistent with the applicable Ordinances of the City of Denton, Texas. 23. Assignability. Customer and the City agree that this Agreement may not be assigned due to the special nature of the Agreement. Any sale or disposition of the real property and the PPF covered hereby in whole or in part, by Customer will require that the PPF be disconnected from the Electric Utility System until DME has communicated with the new owner about relevant safety issues and until such time as the new owner signs a new Interconnection Agreement with the City. Agreement for Interconnection and Parallel Operation of Distributed Generation tğŭĻ А ƚŅ Б 24. No Waiver. The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered to waive the obligations, rights, or duties imposed upon the Parties. No waiver of any breach or violation of any term of this Agreement shall be deemed or construed to constitute a waiver of any other breach or violation, whether concurrent or subsequent, and whether of the same or of a different type of breach or violation. 25. Entire Agreement. It is understood and agreed that this Agreement contains the entire Agreement between the Parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. This Agreement cannot be changed or terminated orally and no written modification of this Agreement shall be effective unless executed and signed by both Parties. 26. No Third-Party Beneficiaries. This Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein undertaken and assumed are solely for the use and benefit of the Parties, their successors-in-interest and, where permitted, their assigns. 27. Paragraph Headings and Construction of Agreement. The descriptive headings of the various articles and sections of this Agreement have been inserted for the convenience of reference only, and are to be afforded no significance in the interpretation or construction of this Agreement. Both Parties hereto have participated in the negotiation and preparation of this Agreement, which shall not be construed either more or less strongly against or for either Party. 28. Gender. Within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural, unless the context otherwise requires. 29. Exhibits. All Exhibits to this Agreement are incorporated herewith by reference for all purposes, wherever reference is made to the same. 30. Binding Effect. Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, devisees, personal and legal representatives, successors, or assigns. 31. Multiple Counterparts. This Agreement may be executed in multiple counterparts, each of which is deemed an original, but all of which constitute but one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their respective duly-authorized representatives on this the ______ day of ___________________, 20__. CITY OF DENTON, \[CUSTOMER\] a Texas home-rule municipal corporation By: _____________________________ By: ___________________________________ Title: ___________________________ Title: __________________________________ Date: ___________________________ Date: __________________________________ Agreement for Interconnection and Parallel Operation of Distributed Generation tğŭĻ Б ƚŅ Б City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1193,Version:1 AGENDA CAPTION ConsideradoptionofanordinancetoauthorizetheCityManagertoexecutetheLocalProjectAdvanceFunding Agreement(LPAFA)withtheTexasDepartmentofTransportationassociatedwiththeUS380~SL288toUS 377/US380Intersection.Specifically,theadditionofa10-footsidewalkalongUS380betweenMayhillRoad and the Greenbelt Park. The City will pay a portion of the estimated cost of $878,874.75. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© Agenda Information Sheet DEPARTMENT: Capital Projects CM/ ACM: Mario Canizares Date: September 12, 2017 SUBJECT ..Title ..Body BACKGROUND OPTIONS RECOMMENDATION ESTIMATED SCHEDULE OF PROJECT PRIOR ACTION/REVIEW (Council, Boards, Commissions) FISCAL INFORMATION BID INFORMATION STRATEGIC PLAN RELATIONSHIP Related Key Focus Area: Public Infrastructure Related Goal: 1.6 Collaborate with local, regional, state, and federal partners EXHIBITS CSJ #: 0135-10-057 District #: 18-Dallas Code Chart #: 11400 Project: US 380 Limits: From SL 288 to US 377/US 380 Intersection County: Denton STATE OF TEXAS § COUNTY OF TRAVIS § LOCAL PROJECT ADVANCE FUNDING AGREEMENT FOR VOLUNTARY LOCAL GOVERNMENT CONTRIBUTIONS TO TRANSPORTATION IMPROVEMENT PROJECTS WITH NO REQUIRED MATCH ON SYSTEM THIS AGREEMENT is made by and between the State of Texas, acting through the Texas Department of Transportation, called the State, and the City of Denton, acting by and through its duly authorized officials called the Local Government. WITNESSETH WHEREAS, Texas Transportation Code, Chapter 201 and 222 authorizes the State to lay out, construct, maintain, and operate a system of streets, roads, and highways that comprise the State Highway System; and, WHEREAS, Texas Government Code Chapter 791 and Texas Transportation Code §201.209 and Chapter 221, authorizes the State to contract with municipalities and political subdivisions; and, WHEREAS, Texas Transportation Commission Minute Order Number 114872 authorizes the State to undertake and complete a highway improvement generally described as raising median with left turn lanes, adding right turn lanes and restriping for shared use along US 377 from SL 288 to US 377/US 380 intersection in Denton County; and, WHEREAS, the Local Government has requested that the State allow the Local Government to participate in said improvement by funding that portion of the improvement described as the construction of a 10-feet sidewalk addition along US 380 between Mayhill Road and the nature park in the City of Denton, called the Project"; and, WHEREAS, the State has determined that such participation is in the best interest of the citizens of the State; NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements of the parties hereto, to be by them respectively kept and performed as hereinafter set forth, the State and the Local Government do agree as follows: AGREEMENT 1. Time Period Covered The period of this Local Project Advance Funding Agreement (LPAFA) is as stated in the Master Agreement Governing Local Transportation Project Advance Funding Agreements (MAFA), without exception. AFALPAFA_VolProj Page 1 of 4 Revised 02/26/2016 CSJ #: 0135-10-057 District #: 18-Dallas Code Chart #: 11400 Project: US 380 Limits: From SL 288 to US 377/US 380 Intersection County: Denton 2. Project Funding and Work Responsibilities The State will authorize the performance of only those Project items of work which the Local Government has requested and has agreed to pay for as described in Attachment A, Payment Provision and Work Responsibilities which is attached to and made a part of this contract. In addition to identifying those items of work paid for by payments to the State, Attachment A, Payment Provision and Work Responsibilities, also specifies those Project items of work that are the responsibility of the Local Government and will be carried out and completed by the Local Government, at no cost to the State. 3. Payment of Funds Whenever funds are paid by the Local Government to the State under this agreement, the Local Government shall remit a check or warrant made payable to the "Texas Department of Transportation." The check or warrant shall be deposited by the State and managed by the State. The funds may only be applied by the State to the Project. If after final Project accounting excess funds remain, those funds may be applied by the State to the Local Government's contractual obligations to the State under another advance funding agreement with approval by appropriate personnel of the Local Government. 4. Right of Access If the Local Government is the owner of any part of the Project site, the Local Government shall permit the State or its authorized representative access to the site to perform any activities required to execute the work. 5. Adjustments Outside the Project Site The Local Government will provide for all necessary right of way and utility adjustments needed for performance of the work on sites not owned or to be acquired by the State. 6. Responsibilities of the Parties Responsibilities of the Parties will be under the conditions as provided for in the MAFA, without exception. 7. Document and Information Exchange The Local Government agrees to electronically deliver to the State all general notes, specifications, contract provision requirements and related documentation in a Microsoft® Word or similar document. If requested by the State, the Local Government will use the State's document template. The Local Government shall also provide a detailed construction time estimate including types of activities and month in the format required by the State. This requirement applies whether the local entity creates the documents with its own forces or by hiring a consultant or professional provider. At the request of the State, the Local Government shall submit any information required by the State in the format directed by the State. 8. Inspection and Conduct of Work Unless otherwise specifically stated in Attachment A, Payment Provision and Work Responsibilities, to this contract, the State will supervise and inspect all work performed hereunder and provide such engineering inspection and testing services as may be required to ensure that the Project is accomplished in accordance with the approved plans and AFALPAFA_VolProj Page 2 of 4 Revised 02/26/2016 CSJ #: 0135-10-057 District #: 18-Dallas Code Chart #: 11400 Project: US 380 Limits: From SL 288 to US 377/US 380 Intersection County: Denton specifications. All correspondence and instructions to the contractor performing the work will be the sole responsibility of the State. Unless otherwise specifically stated in Attachment A to this contract, all work will be performed in accordance with the Standard Specifications for Construction and Maintenance of Highways, Streets, and Bridges adopted by the State and incorporated in this agreement by reference, or special specifications approved by the State. 9. Increased Cost Increased cost will be under the conditions as provided for in the MAFA, without exception. 10. Maintenance Project maintenance will be under the conditions as provided in Attachment A, Payment Provision and Work Responsibilities of this agreement. 11. Termination Termination of this LPAFA shall be under the conditions as stated in the MAFA, without exception. 12. Notices Notices of this LPAFA shall be under the conditions as stated in the MAFA, without exception. Local Government:State: City Manager Director of Contract Services Attention: Director of Engineering Services Texas Department of Transportation th City of Denton 125 E. 11 Street 215 East McKinney Austin, Texas 78701 Denton, Texas 76201 13. Successors and Assigns The State and the Local Government each binds itself, its successors, executors, assigns, and administrators to the other party to this agreement and to the successors, executors, assigns, and administrators of such other party in respect to all covenants of this agreement. 14. Amendments Amendments to this LPAFA shall be made as described in the MAFA, without exception. 15. Incorporation of Master Agreement Provisions This LPAFA incorporates all relevant provisions of the MAFA in effect on the date of final execution of this LPAFA, unless such MAFA provision is specifically excepted in this agreement. Any conflict between the terms of the MAFA and this LPAFA shall be governed and controlled by this LPAFA. 16. State Auditor The state auditor may conduct an audit or investigation of any entity receiving funds from the State directly under the contract or indirectly through a subcontract under the contract. Acceptance of funds directly under the contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the state auditor, under the direction of the AFALPAFA_VolProj Page 3 of 4 Revised 02/26/2016 CSJ #: 0135-10-057 District #: 18-Dallas Code Chart #: 11400 Project: US 380 Limits: From SL 288 to US 377/US 380 Intersection County: Denton legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. 17. Insurance If this agreement authorizes the Local Government or its contractor to perform any work on State right of way, before beginning work the entity performing the work shall provide the State with a fully executed copy of the State's Form 1560 Certificate of Insurance verifying the existence of coverage in the amounts and types specified on the Certificate of Insurance for all persons and entities working on State right of way. This coverage shall be maintained until all work on the State right of way is complete. If coverage is not maintained, all work on State right of way shall cease immediately, and the State may recover damages and all costs of completing the work. 18. Signatory Warranty Each signatory warrants that the signatory has necessary authority to execute this agreement on behalf of the entity represented. THIS AGREEMENT IS EXECUTED by the State and the Local Government in duplicate. THE LOCAL GOVERNMENT CITY OF DENTON THE STATE OF TEXAS By: _________________________________ By: ____________________________ Todd Hileman Kenneth Stewart City Manager Director of Contract Services Texas Department of Transportation Date: _________________________________ Date: ___________________________ Approved as to Form: A City Attorney By: _________________________ A City Attorney ATTEST: Jennifer Walters City Secretary By: _________________________ Jennifer Walters City Secretary AFALPAFA_VolProj Page 4 of 4 Revised 02/26/2016 CSJ #: 0135-10-057 District #: 18-Dallas Code Chart #: 11400 Project: US 380 Limits: From SL 288 to US 377/US 380 Intersection County: Denton Attachment A PAYMENT PROVISION AND WORK RESPONSIBILITIES The Local Government will be responsible for 100% of the cost and overruns for the construction of a 10-feet sidewalk addition along US 380 between Mayhill Road and the nature park in the City of Denton The Project cost is to be as follows: Total Description Estimated Federal State Local Amount Participation Participation Participation Construction Shared Used Path (by State) $757,912.00 0% $00% $0100%$757,912.00 Direct State Cost @ 10.69% $81,020.79 0% $00% $0100%$81,020.79 Indirect State Cost @ 5.27% $39,941.96 0% $00% $0100%$39,941.96 TOTAL $878,874.75$0 $0$878,874.75 Total Estimated Local Government Participation = $878,874.75 Total Estimated Payment by the Local Government to the State prior to construction = $878,874.75 This is an estimate only. The final amount of the Local Government participation will be based o n actual costs. Maintenance Cost by the Local Government Upon completion of the Project, the Local Government shall be responsible for 100% of the cost and overruns for the State to maintain any required or needed maintenance work on the Projects10-feet sidewalk addition along US 380 between Mayhill Road and the nature park in the City of Denton Construction The State is responsible to ensure that all construction items of work for the Project are completed in accordance with the approved plans and specifications. AFALPAFA_VolProj Page 1 of 1 Attachment A COSTCOST $36,099$58,410$11,674$18,000$99,000$44,898$62,759$50,000 $453,640$212,982 υЋАЏͲАЎА$100,210$176,000 υЍБЊͲЊЎЎ$757,912 υБАБͲБАЎ$665,000$163,875 55425555905542 425110 15.00%15.00% grand total COST/UNITCOST/UNIT ƚƷğƌƚƷğƌ 11 27 200 QTYQTY 8248507110621822160018001069 Estimates from TXDOT 201610' Shared Use Path (SY )Credit for 5' SidewalkContingency (15%)Retaining Wall (SF)Riprap 4" (CY)10' Shared Use Path (SY )Pedestrain Rail (PR1)(LF)Pedestrain Rail (TY E)(LF)Slotted Barrier (LF)Credit for 5' SidewalkContingency (15%)Updated numbers*we anticipate funding from Denton County Pct 1 up to $63,874.75 but participation is not finalized.$20,000 / yr will be set aside from the bike fund for 5 years. 12312345678 /ƚƭƷ 9ƭƷźƒğƷźƚƓ 9ğƭƷ ƚŅ wźǝĻƩƭźķĻ /ƚƭƷ 9ƭƷźƒğƷźƚƓ ĻƭƷ ƚŅ wźǝĻƩƭźķĻ Local ParticipationNCTCOG (CMAQ & TIP)City of Denton (Parks)City of Denton (Bike fund) Denton City Council September 12, 2017 Advanced Funding Agreement To approve an ordinance authorizing the payment for funds, currently $878,875Payment due at completion of projectProject scheduled to let by TXDOT in May 2021Greenbelt ParkCreates a significant amount of connectivity from DCTA to Greenbelt Park The ask: Map COST $58,410$11,674$18,000$99,000$44,898$62,759 $100,210$176,000$757,912 υЍБЊͲЊЎЎ % 5555905542 425110 UNIT 15.00 COST/total grand ƚƷğƌ 1 27 200 QTY 10621822160018001069 Rail wźǝĻƩƭźķĻ Retaining Wall (SF)Riprap 4" (CY)10' Shared Use Path (SY )Pedestrain(PR1)(LF)Pedestrain Rail (TY E)(LF)Slotted Barrier (LF)Credit for 5' SidewalkContingency (15%) 12345678 /ƚƭƷ 9ƭƷźƒğƷźƚƓ 9ğƭƷ ƚŅ COST $36,099 $453,640$212,982 υЋАЏͲАЎА % 5542 UNIT 15.00 COST/ ƚƷğƌ 1 QTY 82485071 wźǝĻƩƭźķĻ Estimates from TXDOT 201610' Shared Use Path (SY )Credit for 5' SidewalkContingency (15%) 123 /ƚƭƷ 9ƭƷźƒğƷźƚƓ ĻƭƷ ƚŅ Financials: Updated Numbers: Questions? City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1251,Version:1 AGENDA CAPTION ConsideradoptionofanordinanceoftheCityofDentonapprovingauniformemergencyaidagreementforthe provisionsofaidbyDentonMunicipalElectrictootherelectricutilitiesintimesofweatherornaturaldisaster relatedemergencies;authorizingthecitymanager,ordesigneetoexecutetheaidagreementasneededand providenotificationtocouncilandpublicutilitiesboard;authorizingtheexpenditureoffundstherefor;and providing an effective date. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Denton Municipal Electric CM/ DCM/ ACM: Bryan Langley DATE: September 12, 2017 SUBJECT Consider adoption of an ordinance of the City of Denton approving a uniform emergency aid agreement for the provisions of aid by Denton Municipal Electric to other electric utilities in times of weather or natural disaster related emergencies; authorizing the city manager, or designee to execute the aid agreement as needed and provide notification to council and public utilities board; authorizing the expenditure of funds therefor; and providing an effective date. BACKGROUND In an effort to streamline response to requests for mutual aid, Denton Municipal Electric (DME) has created a uniform mutual aid agreement (Exhibit 2). Adoption of this ordinance approves the use of the agreement as it is written and would enable the city manager to execute the agreement, when necessary, with notifications to the City Council and Public Utilities Board (PUB) within twenty-four (24) hours. The City of Denton has historically assisted other electric utilities in times of emergency. Having this agreement approved would provide a uniform and manageable way to dispatch resources, receive reimbursement, and better define obligations of both parties. Participation in a mutual aid agreement would be voluntary and at the sole discretion of the City. Once a request is received, a determination would be made if resources are available to assist. If there is the ability to assist, the agreement would be signed and resources dispatched with a notification to the City Council and PUB to follow. Upon signing the agreement, the other party agrees to reimburse the City for staff, materials, equipment, and incidentals within thirty (30) days of receipt of invoice. A listing of reimbursable costs and charges is outlined in the proposed agreement under section 3.2. RECOMMENDATION Staff recommends approval of the ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item will be considered by the PUB on September 11, 2017. FISCAL INFORMATION In the event that an agreement is executed, the City of Denton would be responsible for the initial cost of staff, materials, equipment, and incidentals related to providing the emergency assistance, with reimbursement by the other party within thirty (30) days of receiving a written invoice from the City. STRATEGIC PLAN RELATIONSHIP -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: 1.6 Collaborate with local, regional, state, and federal partners EXHIBITS 1. Agenda Information Sheet 2. Ordinance Respectfully submitted: Bryan Langley Deputy City Manager EMERGENCY AID AGREEMENT This Emergency Aid Agreement is between the _________________________________ (“Requesting Party”) and the City of Denton, a Texas home-rule municipal corporation (“Denton”). This Agreement is intended to set forth the terms and conditions under which Denton will render assistance to the Requesting Party in the event the Requesting Party’s electric system suffers damage or outages due to adverse weather events or natural disaster. Requesting Party and Denton may be referred to collectively as “Parties”. 1. Underlying Premises 1.1. Voluntary Participation: Participation in this Agreement is purely voluntary and requests for and responses to requests for assistance are at the sole discretion of Denton. Denton shall have the primary interest of protecting its own constituency. Neither Party shall be liable to the other Party for, or be considered to be in breach of or default under this Agreement on account of, any delay in or failure to perform any obligation under this Agreement SAVE AND EXCEPT the obligation to make payment as specified in this Agreement. 1.2. Response Discretionary: Emergency assistance will be in the form of resources, such as personnel, equipment, and supplies, and personnel (“Emergency Assistance”). The execution of this Agreement shall not create or otherwise impose any duty to respond to a request for Emergency Assistance on the part of Denton. Denton has the absolute discretion to decline to provide any requested Emergency Assistance and to withdraw Emergency Assistance it has provided at any time without incurring any liability SAVE AND EXCEPT only to the extent that Denton abandons a repair prior to completion that creates a new and unreasonable danger or hazard. 2. Operational Provisions 2.1. Request for Assistance. The Requesting Party shall make its request for assistance under this Agreement in writing and with reasonable specificity as to the amount and nature of Emergency Assistance requested. Upon receipt of such a request, the Parties shall further detail, in writing, the Emergency Assistance to be provided with respect to the resources required, such as personnel, equipment, and supplies. 2.2. Response to Request: Upon receipt of a request for Emergency Assistance, the responsible employee of Denton receiving the request shall, with reasonable promptness, take the following action: 2.2.1. Determine if Denton has personnel and equipment available to respond to the Requesting Party and determine the number of personnel and type of equipment available. ______________________________________________________________________________________ Page 1 of 6 – Emergency Aid Agreement (09072017; DME) 2.2.2. Upon making the determination of available resources, with reasonable promptness, advise the Requesting Party of the determination reached as to Emergency Assistance, confirm the continuing need of the Requesting Party for Emergency Assistance, and dispatch the available resources to the scene. 2.2.3. In the event the determination is Denton does not have the ability to respond to the request for Emergency Assistance, advice the Requesting Party of that determination with reasonable promptness. 2.3. Command Responsibility at Response Site: The employee of the Requesting Party in charge at the site to which the response is made shall be the individual in charge of the operations and the individual under which the Emergency Assistance sent by Denton shall serve: PROVIDED THAT, Denton’s personnel, equipment and supplies shall be under the direct and immediate supervision of an employee of Denton. If the Requesting Party’s employee specifically requests an employee of Denton to assume operational control the Requesting Party shall not, by relinquishing operational control, be relieved of responsibility for the operation. 2.4. Return of Equipment and Supplies: Upon the completion of the Emergency Assistance, such assistance and help as is necessary will be rendered by each Party to locate and return any items of equipment and/or supplies to the Party owning the same. All Emergency Assistance provided under the terms of this Agreement shall be returned to Denton after the completion of the Emergency Assistance, or upon request being made by Denton for return of the same. Article 3. Compensation for Emergency Assistance Provided 3.1. Denton shall at all times be responsible to its own personnel for the payment of wages and other compensation, for carrying workmen’s compensation upon its personnel, and each shall be responsible for its own equipment and supplies and shall bear the risk of loss for the same, subject to the right to reimbursement set out in this Agreement. 3.2. The Requesting Party agrees to reimburse Denton for the following costs and charges related to the Emergency Assistance provided under this Agreement (“Emergency Assistance Charges”). 3.2.1. Charges for personnel, including necessary administrative support, shall be billed at Denton’s actual cost for hourly pay and any overtime. The time utilized by Denton’s personnel for the benefit of the Requesting Party shall be billed in one-quarter hour increments and at a rate which shall be equal to the actual compensation rate, including all benefits, paid by Denton to each of its personnel. 3.2.2. Charges for equipment, supplies and transportation shall be billed at Denton’s standard rates and practices in effect at the time. ______________________________________________________________________________________ Page 2 of 6 – Emergency Aid Agreement (09072017; DME) 3.2.3. Materials furnished shall be billed at actual cost. 3.2.4. Meals, lodging and other incidental expenses shall be reasonable and billed at actual cost. 3.2.5. Charges for transportation, meals, lodging and other incidental expenses 3.3. The Denton will provide Requesting Party a written invoice for Emergency Assistance Charges within forty-five (45) days after the completion of the Emergency Assistance. 3.4. The Requesting Party shall pay Denton all Emergency Assistance Charges due under the invoice with thirty (30) days after receipt of the same. Any due and unpaid Emergency Assistance Charges shall bear interest at the rate of 1% per month. 3.5. If a dispute arises with respect to an invoice, the Parties shall first negotiate in good faith to resolve the dispute, and failing resolution by such means, shall then submit the dispute to a mutually agreeable non-binding dispute resolution process before resorting to litigation. Article 4. Term 4.1. This Agreement shall continue in effect until the earlier of: 4.1.1. The Denton has completed the Emergency Assistance; 4.1.2. The Denton is no longer providing Emergency Assistance; or 4.1.3. A Party to this Agreement gives the other two (2) days written notice of its intent to cancel. Article 5. Damages, Disclaimer of Warranty, Limitation of Liability, Indemnity, Apportionment and Contribution 5.1. Damages. In no event shall Denton be liable to the Requesting Party for any special, indirect, incidental, punitive, exemplary or consequential damages with respect to any claim arising out of or related to the Emergency Assistance rendered under this Agreement or the work performed by Denton’s personnel or equipment. 5.2. Disclaimer of Warranty. All Emergency Assistance will be performed, and all equipment or supplies shall be provided, without warranties, which Denton disclaims, including the warranties of merchantability and fitness for a particular purpose. 5.3. Limitation of Liability. The Denton’s liability to the Requesting Party shall be limited to amounts payable under this Agreement, and all other damages at law or in equity are waived by the Requesting Party. ______________________________________________________________________________________ Page 3 of 6 – Emergency Aid Agreement (09072017; DME) 5.4. Indemnity. The Requesting Party assumes all risk of and responsibility for, and agrees to hold harmless Denton and its elected officials, appointed officials, officers and employees from and against any and all claims, demands, suits, actions, recoveries, judgments, costs and expenses (including reasonable attorney’s fees) in connection therewith , made, brought, or obtained on account of loss of life or property, or injury or damage to the person or property of any person or persons which arise out of or relate to Denton’s performance of this Agreement, except to the extent such liabilities are the direct result of gross negligence or willful misconduct by Denton. 5.5. Apportionment and Contribution. In any lawsuit brought against either Party to this Agreement or as against their elected officials, appointed officials, officers, agents, or employees by persons or entities not signatory to this Agreement, neither Party shall be limited in its legal rights to request apportionment of any judgment rendered against it, and neither Party shall be limited in its rights as provided under the laws of the State of Texas to seek contribution for any judgment it is required to pay in excess of its proportionate share of any liability judgment or award. Article 6. Insurance 6.1. Each Party agrees to maintain insurance coverage for its own personnel, equipment, and supplies, whether through third-party insurance, self-insurance, or membership in an appropriate insurance pool providing equivalent coverage. Article 7. General Terms 7.1. Waiver. The failure on the part of either Party at any time to require the performance by the other Party, of any portion of this Agreement, shall not be deemed a waiver of, or in any way effect that Party’s rights to enforce such provision, or any other provision. Any waiver by any Party herein of any provision hereof, shall not be taken or held to be a waiver of any other provision hereof, or any other breach hereof. 7.2. Cumulative Remedies. In the event of default by a Party, the other Party, except as limited by this Agreement, shall have all rights and remedies afforded to it at law or in equity to recover damages and interpret, or enforce, the terms of the Agreement. The exercise of any one right or remedy shall be without prejudice to the enforcement of any other right or remedy allowed at law or in equity. 7.3. Federal, State and Local Laws. This Agreement is subject to all applicable federal, state and local laws, statutes, codes and any applicable permits, ordinances, rules, orders and regulations of any local, state or federal government authority having or asserting jurisdiction, but nothing contained herein shall be construed as a waiver of any right to question or contest any such law, ordinance, order, rule or regulation in any forum having jurisdiction. In the event the emergency requiring Denton’s Emergency Assistance impacts a large geographical area that activates either federal or state ______________________________________________________________________________________ Page 4 of 6 – Emergency Aid Agreement (09072017; DME) emergency laws, this Agreement shall remain in effect until or unless this Agreement conflicts with such federal and state emergency laws. 7.4. No Third Party Beneficiary. The Parties are entering in this Agreement solely for the benefit of their entities and agree that nothing herein shall be construed to confer any right, privilege or benefit on any person or entity other than the Parties hereto. 7.5. Incorporation of Provisions Required by Law. Each provision and clause required by law to be inserted into this Agreement shall be deemed to be enacted herein, and the Agreement shall be read and enforced as though each were included. If through mistake, or otherwise, any such provision is not inserted, or is not correctly inserted, the Agreement shall be mutually amended to make such insertion, on application by each Party. 7.6. Entire Agreement. This Agreement constitutes the entire agreement, and supersedes all prior agreements and understandings between the Parties concerning the subject matter of this Agreement. 7.7. Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 7.8. Governing Law and Venue. The laws of the State of Texas shall apply to the interpretation and enforcement of this Agreement. Exclusive venue of any legal proceedings to enforce this Agreement shall be in Denton County. 7.9. Counterparts. This Agreement may be executed in counterparts, with each counterpart being deemed an original agreement, but with all counterparts assembled together being one Agreement. 7.10. Assignment. Neither Party shall assign this Agreement without the prior written consent of the other Party. 7.11. Authority to Sign. Each individual signing this Agreement directly and expressly warrants that he/she has been given and has received and accepted authority to sign and execute the documents on behalf of the Party for whom it is indicated he/she has signed, and further has been expressly given and received and accepted authority to enter into a binding agreement on behalf of such Party with respect to the matters set forth in this Agreement. A signature transmitted by facsimile or as a pdf copy to electronic mail shall be treated as original for all purposes. ______________________________________________________________________________________ Page 5 of 6 – Emergency Aid Agreement (09072017; DME) REQUESTING PARTY: ____________________________________________________________ Name of Requesting Party ____________________________________________________________ Signature ____________________________________________________________ Printed Name ____________________________________________________________ Title SIGNED on the __________ day of _________________________ , 2017. DENTON: CITY OF DENTON, a Texas home-rule municipal corporation ____________________________________________________________ Signature ____________________________________________________________ Printed Name ____________________________________________________________ Title SIGNED on the __________ day of _________________________ , 2017. This Emergency Aid Agreement was approved for use by the City Attorney’s Office under Ordinance No. 2017 - ______ . ______________________________________________________________________________________ Page 6 of 6 – Emergency Aid Agreement (09072017; DME) City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1142,Version:1 AGENDA CAPTION ConsideradoptionofanordinanceoftheCityCounciloftheCityofDenton,Texas,amendingthe establishmentoftheDowntownReinvestmentFund;definingandremovingthecommitmentofcertain revenuesoftheCity;committingthefundbalanceremaininginthefund;providingaseverabilityclause;and providing an effective date. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Finance DCM: Bryan Langley DATE: September 12, 2017 SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, amending the establishment of the Downtown Reinvestment Fund, defining and removing the commitment of certain revenues of the City; committing the fund balance remaining in the fund; providing a severability clause; and providing an effective date. BACKGROUND The Governmental Accounting Standards Board (GASB) adopted Statement No. 54, which states Special Revenue Funds are used to account for specific revenue sources restricted or committed to expenditures for purposes other than debt service or capital projects. In order to comply with GASB 54, the City Council must adopt an ordinance specifying its intent to add or remove a commitment of specific revenues to a Special Revenue Fund. In 2013, the City Council adopted Ordinance No. 2013-237 establishing the Downtown Reinvestment Fund and committing $100,000 annually of the mixed beverage taxes previously accounted for in the General Fund. The purpose of the fund was Economic Development Department. This fund further allowed unspent funding to be rolled over from one year to the next and utilized in future years. The revenues provided a dedicated mechanism to account for downtown reinvestment activities. In conjunction with the FY 2017-18 Proposed Budget, the City Council directed staff to remove the annual $100,000 mixed beverage taxes commitment to the Downtown Reinvestment Fund starting in FY 2016-17. All previously committed revenues were directed to remain in the Downtown Reinvestment Fund and be spent according to their original purpose. Once any unspent balance reaches a de-minimus amount, the Downtown Reinvestment Fund will be closed. Per GASB 54, in order to end the annual commitment, an ordinance must be adopted by the City Council RECOMMENDATION Staff recommends approval of the ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On September17, 2013, the City Council approved OrdinanceNo.2013-237establishing the Downtown Reinvestment Fund and annually committing $100,000 in mixed beverage taxes previously accounted for in the General Fund to the Downtown Reinvestment Fund. FISCAL INFORMATION Pending approval of this ordinance removing the annual $100,000 commitment, the estimated remaining fund balance after current commitments in the Downtown Reinvestment Fund as of September 30, 2017 is $105,575. STRATEGIC PLAN RELATIONSHIP -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 EXHIBITS 1. Agenda Information Sheet 2. Ordinance Respectfully submitted: Chuck Springer, 349-8260 Director of Finance Prepared by: Cody Wood Assistant Controller City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1176,Version:1 AGENDA CAPTION Considernominations/appointmentstotheCity’sBoardsandCommissions:CommunityDevelopment Advisory Committee and Traffic Safety Commission. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: City Manager’s Office DCM: Bryan Langley DATE: September 12, 2017 SUBJECT Consider nominations/appointments to the City’s Boards and Commissions: Community Development Advisory Committee; and Traffic Safety Commission. BACKGROUND Exhibit 2 includes the remaining vacancies for Boards and Commissions plus nominations Council has submitted for consideration. Nominations made at this meeting can be voted on should the Council desire. Approval would be contingent on completion of the confirmation process. EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – Nominations Sheet Respectfully submitted: Jennifer Walters City Secretary BOARD AND COMMISSION NOMINATIONS 9/12/2017 Board Council Member Nomination Community Development Advisory Cmte. Briggs Ryan Traffic Safety Commission Bagheri Karen DeVinney R Ï Reappointment N Ï New Nomination City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1200,Version:1 AGENDA CAPTION Consider appointments to Council Committees. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: City Secretary’s Office DCM: Bryan Langley, Deputy City Manager DATE: September 12, 2017 SUBJECT Consider appointments to Council committees. BACKGROUND Mayor Pro Tem Bagheri has resigned from some of her Council committees in order to simplify her schedule. A list of current assignments and vacancies is included in Exhibit 2. The vacancy on the Downtown TIF Reinvestment Zone 1 Board will be done separately from these appointments. If you require any further information, please let me know. EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – 2017-18 Council Committees Respectfully submitted: Jennifer Walters City Secretary COUNCIL COMMITTEE ASSIGNMENTS 2017-2018 COMMITTEE MEMBERS Agenda Committee Watts Bagheri Audit/Finance Committee Ryan Vacant Watts Committee on Citizen Engagement Gregory Hudspeth Briggs Committee on the Environment Briggs Gregory Vacant Council Airport Committee Duff Ryan Watts Council Appointee Performance Review Vacant Committee Gregory Watts Ethics Committee Briggs Duff Hudspeth Alternate #1 Ï Watts Alternate #2 Ï Vacant Alternate #3 Ï Gregory Alternate #4 Ï Vacant Hotel Occupancy Tax Committee Hudspeth Gregory Watts Mobility Committee Gregory Briggs Bagheri EXTERNAL MEMBERS Community Justice Council Briggs Convention and Visitor Bureau Advisory Board Ryan Gregory Hudspeth Dallas Regional Mobility Coalition Briggs Lake Ray Roberts P&Z Commission Briggs North Texas Commission Watts Regional Transportation Council Bagheri Ryan (Alternate) Texas Municipal Power Agency Watts AD HOC MEMBERS Development Code Review Committee Briggs Vacant Ryan City Council Employee Benefits Committee Briggs Vacant Ryan BOARD MEMBERS Economic Development Partnership Board Briggs Hudspeth Downtown Denton TIF Reinvestment Zone Vacant No. 1 Board Hudspeth Tax Increment Reinvestment Zone No. 2 Briggs Board Hudspeth City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-1256,Version:1 AGENDA CAPTION ConsiderapprovalofaresolutionspecifyingtheintentoftheCityofDenton,Texastoexerciseornotexercise anoptiontopurchaseacertain18.969acretractlocatedintheDavidHoughSurvey,AbstractNo.646,inthe CityandCountyofDenton,Texas,asprovidedinthatcertainRealEstateContract-OptiontoAcquire AdditionalRealPropertydatedSeptember23,1997,forapurchasepriceofFourMillionOneandNo/100 Dollars ($4,000,001.00); and providing an effective date. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© Agenda Information Sheet DEPARTMENT: Legal Department CM/ ACM: Aaron Leal, Interim City Attorney Date: September 12, 2017 SUBJECT Consider adoption of a resolution specifying the intent of the City of Denton, Texas to exercise or not exercise an option to purchase a certain 18.969 acre tract located in the David Hough Survey, Abstract No. 646, in the City and County of Denton, Texas, as provided in that certain Real Estate Contract – Option to Acquire Additional Real Property dated September 23, 1997, for a purchase price of Four Million One and no/100 Dollars ($4,000,001.00); and providing an effective date. BACKGROUND/HISTORY In September 1997, the City and Robert Donnelly executed a Real Estate Contract – Option to Acquire Additional Real Property, which was approved by the City Council through Ordinance Number 97-292 regarding a certain 18.969 acre tract generally located along the western side of the 2600 block of Mayhill Road in the City of Denton, Denton County, Texas (the “Subject Property”). Mr. Donnelly has received a written third-party bona-fide offer for the Subject Property, and the City must decide whether or not to exercise the option at a purchase price of Four Million One and no/100 Dollars ($4,000,001.00). DECISION POINTS FOR COUNCIL 1.Exercise the option to purchase the Subject Property; or 2.Not exercise the option to purchase the Subject Property. EXHIBITS 1.City of Denton Ordinance 97-292 with attachments 2.Proposed Resolution Specifying Intent to Exercise the Option 3.Proposed Resolution Specifying Intent to Not Exercise the Option Respectfully submitted: Aaron Leal Interim City Attorney Prepared by: Trey Lansford Deputy City Attorney City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-994,Version:1 AGENDA CAPTION Holdapublichearingonaproposaltoadoptataxrateof$0.637856withamaximumallowablerateof $0.683340 per $100 valuation, which will exceed the lower of the effective or rollback tax rate. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Finance DCM: Bryan Langley DATE: September 12, 2017 SUBJECT Hold a public hearing on a proposal to adopt a tax rate of $0.637856 with a maximum allowable rate of $0.683340 per $100 valuation, which will exceed the lower of the effective or rollback tax rate. BACKGROUND The Texas Constitution and Texas Property Tax Code require taxing units to comply with specific guidelines in adopting tax rates. The guidelines are related to a concept known as truth-in-taxation. This concept is a way to make taxpayers aware of tax rate proposals and allow tax payers in certain circumstances, to roll back or limit a tax increase. The truth-in-taxation guidelines require taxing entities to calculate and publish their effective and rollback tax rates (Exhibit 2 Notice of Proposed Tax Rate 2017). The effective rate is the calculated rate that would provide the taxing unit approximately the same amount of revenue it received in the previous year on properties taxed in both years. This rate is adjusted for new exemptions, value loss due to court appeals of taxable values 7 effective rate is $0.637856/$100 valuation. The rollback rate divides the total property tax revenue into support for maintenance and operations (M&O) taxes and debt service taxes. It provides approximately the same amount of revenue as in the previous year for maintenance and operations expenses, plus an extra eight percent, along with the necessary debt service tax rate. If a taxing unit adopts a tax rate higher than the rollback rate, the voters have the option to petition 7 rollback rate is $0.689689/$100 valuation. 7-18 Proposed Annual Program of Services recommends a tax rate of $0.637856 per $100 of valuation which is the effective tax maximum tax rate to be considered exceeds the effective tax rate, two public hearings are required to take place prior to the budget adoption. In compliance with state law, staff published the Notice of the Proposed Tax Rate in the in the Denton Record Chronicle and http://www.cityofdenton.com and the public access channel. ESTIMATED SCHEDULE OF PROJECT September 19, 2017 Adopt Tax Rate and Approve FY 2017-18 Annual Program of Services PRIOR ACTION/REVIEW (Council, Boards, Commissions) On August 3, 2017, the City Council was provided with detailed information regarding the FY 2017-18 Proposed Annual Program of Services including the proposed tax rate. On August 3, 2017, the City Council voted to place a proposal on the September 19, 2017 City Council agenda to consider a tax rate above the effective rate. ththnd On August 8, 15 and 22, 2017 the City Council discussed the proposed budget in work session. FISCAL INFORMATION In the FY 2017-18 Proposed Budget, a tax rate of $0.637856 per $100 valuation is recommended. STRATEGIC PLAN RELATIONSHIP -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 EXHIBITS Exhibit 1 Agenda Information Sheet Exhibit 2 Notice of Proposed Tax Rate 2017 Exhibit 3 Presentation Respectfully submitted: Chuck Springer, 940-349-8260 Director of Finance NOTICE OF 2017 TAX YEAR PROPOSED PROPERTY TAX RATE FOR CITY OF DENTON A tax rate of $0.683340 per $100 valuation has been proposed for adoption by the governing body of the City of Denton. This tax rate exceeds the lower of the effective or rollback tax rate, and state law requires that two public hearings be held by the governing body before adopting the proposed tax rate. The governing body of the City of Denton proposes to use revenue attributable to the tax rate increase for the purpose of paying maintenance and operation expenses, and debt service. PROPOSED TAX RATE $0.683340 per $100 X RATE $0.683340 per $100 EFFECTIVE TAX RATE $0.637856 per $100 ROLLBACK TAX RATE $0.689689 per $100 The effective tax rate is the total tax rate needed to raise the same amount of property tax revenue for the City of Denton from the same properties in both the 2016 tax year and the 2017 tax year. The rollback tax rate is the highest tax rate the City of Denton may adopt before voters are entitled to petition for an election to limit the rate that may be approved to the rollback rate. YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS FOLLOWS: property tax amount = ( rate ) x ( taxable value of your property ) / 100 For assistance or detailed information about tax calculations, please contact: Michelle French Denton County Tax Assessor-Collector 1505 E. McKinney Street, Denton, TX, 76209 940-349-3500 Property.Tax@dentoncounty.com http://tax.dentoncounty.com You are urged to attend and express your views at the following public hearings on the proposed tax rate: First Hearing: 6:30 p.m. on August 15, 2017 at City Hall, 215 E. McKinney Street, Denton, TX, 76201 Second Hearing: 6:30 p.m. on September 12, 2017 at City Hall, 215 E. McKinney Street, Denton, TX, 76201 2017 Hearing and Budget Public September 12, Tax Rate 2 $100 % 13.32 0.430311 / $100 $$0.207545 / $0.637856 / $100$0.637856 / $100$0.689689 / $100$10,332,106,452 Maintenance & OperationDebt ServiceTotal Proposed Tax RateValue Increase * Excluding TIRZ Values Property Values and Tax Rate Proposed Tax RateEffective Tax RateRollback Tax RateCertified Taxable Value* 3 replacement and expansion Reduce inefficiencies, costs and duplication of servicesCost containment strategies for all fundsExpand Public Safety response capacity Continue Street Maintenance expansionMaintenance of other general government infrastructure (traffic signals, parking lots, sidewalks, buildings)Utility Infrastructure Maintain competitive compensation plan Maintain conservative budgetary and management practices as recognized by the rating agencies Budgetary Priorities 4 FTE Reductions General Fund Cost Containment Replacing with outside contracted custodial services 1 5 FTE Reductions Other Funds Cost Containment 6 18 Proposed Budget - General Fund Revenue FY 2017 7 18 Proposed Budget - FY 2017 General Fund Expenditures by Function 8 Operating Expenditures $34.023 million $38.528 million - - $181.041 million $47.809 million - - Electric Water Wastewater Solid Waste Utility Funds 9 Average Residential Customer Monthly Rate Impact 10 11 Internal Service FundsFranchise FeesReturn on InvestmentDebt Service TransfersRevenue Funded CapitalCost of Service Allocations Types of Transfers Total Net City Budget 12 th September 19 Adoption Budget Next Steps Questions? City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Legislation Text File #:ID 17-995,Version:1 AGENDA CAPTION Hold a public hearing and receive citizen input on the FY 2017-18 Proposed Budget. City of DentonPage 1 of 1Printed on 9/8/2017 powered by Legistar© City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Finance DCM: Bryan Langley DATE: September 12, 2017 SUBJECT Hold a public hearing and receive citizen input on the FY 2017-18 Proposed Budget. BACKGROUND The City Charter and State Law require that prior to budget adoption, a public hearing be conducted to allow citizens the opportunity to provide input on the Proposed Budget. The required notice of the public hearing was published August 26, 2017, in the Denton Record Chronicle. The notice was also posted on and on the Citys public access channel. A copy of the published notice is provided for reference in Exhibit 2. ESTIMATED SCHEDULE OF PROJECT September 19, 2017 - Adopt Tax Rate and Approve FY 2017-18 Annual Operating and Capital Budget PRIOR ACTION/REVIEW (Council, Boards, Commissions) On August 3, 2017, the City Council was provided with detailed information regarding the FY 2017-18 Proposed Annual Program of Services including the proposed tax rate. On August 3, 2017, the City Council voted to place a proposal on the September 19, 2017 City Council agenda to consider approval of the FY 2017-18 Annual Operating and Capital Budget. ththnd On August 8, 15 and 22, 2017 the City Council discussed the proposed budget in work session. FISCAL INFORMATION The 2017-18 Proposed Budget totals $1,140,199,123 in estimated resources and $1,139,575,366 in estimated expenditures. STRATEGIC PLAN RELATIONSHIP -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 EXHIBITS Exhibit 1 Agenda Information Sheet Exhibit 2 Notice of Proposed Budget 2017 Respectfully submitted: Chuck Springer, 940-349-8260 Director of Finance � � � : • � : r The City Council fior the City a1' D�nton, Texas, will hold a public hearin�; on the Fise�il Year 2017-18 Annual Program of Services (I3udget), on Tuesday, September 12, 20l i ai 6:30 p.m. in the City Council Chambers ��t City Hall, lc�cated at 21S Easi M.cKinney Sti•eet in Dentan, "Texas, 76201, T'he ineeting will be helci Co�• t}ae purpose of receiving community input on the I3udget, i � � ' � 1'1, ' � • � � � � � . . , . � i ' � i ��: �' � � � � � ` � � ' ' � �� , i < ' � ' i � ' � � � ���� � •rr r � � �t . •; All interested citizens are encouraged ta attenc� a�ld express their views.