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City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-520,Version:1
AGENDA CAPTION
Receiveareport,holdadiscussionandgivestaffdirectionregardingtheFY2017-18ComprehensiveAnnual
Financial Report and annual audit. (Audit/Finance Committee approves 2-0)
City of DentonPage 1 of 1Printed on 3/15/2019
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City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Finance
DCM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Receive a report, hold a discussion and give staff direction regarding the FY 2017-18 Comprehensive
Annual Financial Report and annual audit. (Audit/Finance Committee approves 2-0)
BACKGROUND
Each year, the City hires an independent accounting firm to conduct an audit of the City's basic financial
statements. The purpose of the audit is to express an opinion as to whether the City's financial statements
present fairly, in all material respects, the financial position of the City. The annual audit report is
comprised of four major components: 1) the Comprehensive Annual Financial Report (CAFR), 2)
Management Letter (when appropriate), 3) Single Audit, and 4) Auditor's Communication to the Audit
Committee.
The CAFR represents the entire financial position of the City, specifically for the fiscal year ending
September 30, 2018. The document includes the independent auditor's opinion of management's
representations within the annual report. The auditors have provided the City a clean opinion (unmodified),
which means that in the opinion of Pattillo, Brown & Hill, L.L.P., the City's financial statements present
fairly, in all material respects, the financial position of the City. A clean or unmodified opinion is the best
opinion that may be rendered in an audit of the financial statements. The audit specifically included the
following items:
Audit of the City's CAFR in accordance with generally accepted auditing standards.
Performance of a Single Audit, which is an audit of the City's expenditures of State and Federal
grant awards.
An evaluation of the City's internal control over financial reporting.
The auditor's examination of internal controls was conducted at a level sufficient to gain an understanding
of the internal control structure to determine the nature, timing, and extent of audit procedures. The auditors
did not perform an audit of internal controls, but performed limited tests of internal controls for the purpose
of providing an opinion on the financial statements. Additionally, the auditors examined, on a test basis,
evidence supporting amounts and disclosures in the combined financial statements. The City did not receive
a management letter as there were no material weaknesses or recommendations for strengthening controls
identified.
The following points are highlighted as key financial information from the CAFR:
1. Overall positive financial results
2. Unassigned General Fund balance
$28.9 million
23.1% of FY 2017-18 final budgeted expenditures
$2,852,092 decrease from prior year.
3. Net Unrestricted Position of Enterprise Funds (Utilities, Solid Waste, and Airport)
$166.2 million
$29.8 million increase from prior year.
Representatives from Pattillo, Brown & Hill, L.L.P. will be present at the City Council meeting to provide
their opinion and to answer any questions that you may have.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
On March 5, 2019, the Audit/Finance Committee unanimously approved that the FY 2017-18 CAFR be
forwarded to the City Council for consideration and approval.
EXHIBITS
1. Agenda Information Sheet
2. FY 2017-18 CAFR
3. Single Audit Report
4.
5. Presentation
Respectfully submitted:
Antonio Puente, Jr., 349-7283
Chief Financial Officer
Fiscal Year Ending Sept. 30, 2018
COMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
CITY OF DENTON, TEXAS
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CITY OF DENTON, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended September 30, 2018
CITY MANAGER
Todd Hileman
DEPUTY CITY MANAGER
AND CHIEF OPERATING OFFICER
Bryan Langley
Prepared by:
Antonio Puente, Jr.
Chief Financial Officer
David Gaines
Assistant Director of Finance
Harvey Jarvis
Controller
Brian Hogan, CPACody Wood
Assistant Controller Assistant Controller
Mary DickinsonEd Lane, CPA
Electric BusinessManager Senior Accountant
Kurt BreyfogleCatherine Bai, CPA
SeniorAccountantSenior Accountant
Cindy Liang, CPAKaty Magee, CPA
Senior AccountantAccountant
Jenny Wang, CPALori Allen
AccountantAccountant
Nancy TowleKevin Ann Mullen, CPA
Budget ManagerTreasury Manager
City of Denton, Texas
Comprehensive Annual Financial Report
For Year Ended September 30, 2018
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION (UNAUDITED):
Transmittal Letter ................................................................................................................................................. i
Organizational Chart ........................................................................................................................................ viii
Certificate of Achievement ................................................................................................................................. ix
List of Principal Officials..................................................................................................................................... x
FINANCIAL SECTION:
Independent Auditors Report.............................................................................................................................. 1
............................................................................................................. 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 17
Statement of Activities .......................................................................................................................... 18
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ................................................................................................................................. 20
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .... 21
Statement of Revenues, Expenditures and Changes in Fund Balances .......................................... 22
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities .............................................................. 23
Statement of Revenues, Expenditures and Changes in Fund Balance Budget to Actual
General Fund............................................................................................................................... 25
Proprietary Fund Financial Statements:
Statement of Net Position ............................................................................................................... 26
Statement of Revenues, Expenses and Changes in Fund Net Position .......................................... 30
Statement of Cash Flows ................................................................................................................ 32
Agency Fund Financial Statements:
Statement of Assets and Liabilities ................................................................................................ 34
Notes to Basic Financial Statements ........................................................................................................... 35
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and Related Ratios Texas Municipal Retirement
System Last Four Fiscal Years .................................................................................................... 87
Schedule of Contributions Texas Municipal Retirement System Last Ten Fiscal Years ...................... 88
Schedule of Changes in Net Pension Liability and Related Ratios
and Retirement Fund Last Four Fiscal Year................................................................................ 89
Schedule of Contributions Dent Last Ten Fiscal Years ...... 90
Schedule of Changes in Total OPEB Liability and Related Ratios Medical Last Fiscal Year.............. 91
Schedule of Changes in Total OPEB Liability and Related Ratios Texas Municipal Retirement System .
Supplemental Death Benefit Fund Last Fiscal Year ................................................................... 92
Combining and Individual Fund Financial Statements and Schedules:
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual:
Debt Service Fund ................................................................................................................................ 93
Combining Balance Sheet Nonmajor Governmental Funds..................................................................... 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds ............................................................................................................ 98
City of Denton, Texas
Comprehensive Annual Financial Report
For Year Ended September 30, 2018
TABLE OF CONTENTS
(Continued)
Page
FINANCIAL SECTION (continued):
Combining and Individual Fund Financial Statements and Schedules (continued):
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual:
Recreation..................................................................................................................................... 100
Police Confiscation ...................................................................................................................... 101
Tourist and Convention ................................................................................................................ 102
Street Improvement Fund ............................................................................................................. 103
Gas Well Revenues Fund ............................................................................................................. 104
...................................................................................................................... 105
Combining Statement of Net Position Internal Service Funds ............................................................... 108
Combining Statement of Revenues, Expenses and Changes in Fund Net Position -
Internal Service Funds ........................................................................................................................ 110
Combining Statement of Cash Flows Internal Service Funds ................................................................ 112
Combining Statement of Changes in Assets and Liabilities Agency Funds .......................................... 114
Capital Assets Used in the Operation of Governmental Funds:
Comparative Schedules by Source ............................................................................................................ 115
Schedule by Function and Activity ........................................................................................................... 116
Schedule of Changes by Function and Activity ........................................................................................ 117
STATISTICAL SECTION (UNAUDITED):
Table
1 Net Position by Component .................................................................................................................... 120
2 Changes in Net Position .......................................................................................................................... 122
3 Fund Balances of Governmental Funds .................................................................................................. 126
4 Changes in Fund Balances of Governmental Funds ................................................................................ 128
5 Assessed Value and Estimated Actual Value of Taxable Property ......................................................... 130
6 Property Tax Rates (Per $100 of Assessed Value) Direct and Overlapping Governments .................. 132
7 Principal Property Taxpayers .................................................................................................................. 134
8 Property Tax Levies and Collections ...................................................................................................... 136
9 Ratio of Outstanding Debt by Type......................................................................................................... 138
10 Ratio of General Bonded Debt Outstanding ............................................................................................ 140
11 Direct and Overlapping Governmental Activities Debt .......................................................................... 142
12 Pledged Revenue Coverage ..................................................................................................................... 144
13 Demographic and Economic Statistics .................................................................................................... 146
14 Principal Employers ................................................................................................................................ 147
15 Full-Time Equivalent City Government Employees by Function/Program ............................................ 148
16 Operating Indicators by Function/Program ............................................................................................. 150
17 Capital Asset Statistics by Function/Program ......................................................................................... 152
OTHER SUPPLEMENTAL INFORMATION:
Schedule of Expenditures Budget and Actual General Fund .............................................................. 155
Finance Department
215 E. McKinney St., Denton, TX 76201 (940) 349-8531
February 28, 2019
The Honorable Mayor and Members of the City Council
City of Denton
Denton, Texas
It is with great pleasure that we present to you a copy of the Comprehensive Annual Financial Report (CAFR) of
the City of Denton (the City) for the fiscal year ended September 30, 2018. The purpose of the report is to provide
the City Council, management, citizens, and other interested parties with detailed information concerning the
THE REPORT
The Texas Local Government Code (§103.001) requires an annual audit for municipalities. In addition, the City
Charter (Section 2.13) requires a Certified Public Accountant who, as of the end of the fiscal year, shall make an
independent audit of accountsand prepare a report to the City Council and the City Manager. This document
fulfills the above-mentioned requirements, and topinion is included in the report for the
fiscal year ended September 30, 2018.
The CAFR is presented in three main sections: Introductory, Financial, and Statistical. The Introductory Section
rt, and a list of principal officials. The Financial
Supplementary Information, Combining and Individual Fund Financial Statements, along with the independent
and Other Supplementary Information include selected financial and
demographic information, generally presented on a multi-year basis.
The responsibility for both the accuracy of the presented information and the completeness and fairness of the
presentation of the data, including all disclosures, rests with the City, and is based upon a comprehensive
framework of internal control established for this purpose. Because the cost of internal control should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance the financial statements
are free of any material misstatements. To the best of our knowledge and belief, the enclosed data is accurate in
all material respects and is reported in a manner designed to fairly present the results of our operations in each of
the various funds reported by the City. All disclosures necessary to enable the reader to gain an understanding of
The accounting firm of Pattillo, Brown & Hill L.L.P. has issued an unmodified
financial statements for the period ended September 30, 2018. As a recipient of federal and state grant awards, a
separate audit is prepared to meet the requirements of the Single Audit Act Amendments of 1996 and related
Uniform Guidance
with applicable laws and regulations related to federal awards.
iscussion and Analysis (MD&A) immediately follows the independen
provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A
complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
Originally incorporated on September 26, 1866, the City of Denton is now 98.818 square miles and has an
estimated population of 127,093. The City is a home rule city and operates under the Council-Manager form of
government. The elected seven-member council consists of a Mayor and six Council Members. The Mayor and
two Council Members are elected at large, while the remaining representatives are elected from single member
OUR CORE VALUES
Integrity Fiscal Responsibility Transparency Outstanding Customer Service
ADA/EOE/ADEA www.cityofdenton.com TDD (800) 735-2989
districts. The City Council enacts local laws, determines policy, and adopts the annual budget, and the City
Manager is the chief executive officer for the City.
The City of Denton is in the northern portion of the Dallas/Fort Worth Consolidated Metropolitan Statistical Area
(CMSA). The City is a part of the Dallas/Fort Worth Metroplex and is situated at the apex of a triangle based by
Dallas (37 miles to the southeast) and Fort Worth (35 miles to the southwest) providing excellent access to and
from all parts of the area.
The City provides a full range of general government services to its citizens including: public safety (police and
fire protection); public works (construction and maintenance of highways, streets and infrastructure); parks and
recreation; library; planning and zoning; economic development; and general administrative services.
enterprise fund operations consist of a utility system, solid waste, and airport
provides electric, water and wastewater services.
The internal service operations consist of the Materials Management, Fleet Services, Risk Retention, Health
Insurance, Engineering Services, and Technology Services funds. The Materials Management Fund accounts for
the financing of Warehouse and Purchasing services which are provided to other City departments. The Fleet
Services Fund accounts for the financing of goods and services provided by the municipal garage to other
departments within the City. The Risk Retention Fund accounts for the accumulation of resources for the payment
compensation, general liability claims, and insurance policies. The Health Insurance Fund accounts
for administration of the self-insurance program for health coverage in the City. The Engineering Services Fund
accounts for the provision of internal engineering services to various City operations and capital projects. The
Technology Services Fund provides support for the various information and computer systems within the City.
The financial statements presented include all government activities, organizations, and functions for which the
City is financially accountable as defined by the Governmental Accounting Standards Board (GASB).
LOCAL ECONOMY
continues to grow with an average growth rate of 6.25% over the last 10 years.
Recently, tgrew by 8.38% in FY 2016-17, 13.57% in FY 2017-18, and 9.70% in FY2018-19.
After property tax revenues, the second largest source of revenue in the General Fund is sales tax. Representing
approximately 34%of overall revenue in the General Fund, sales tax is a significant revenue source that is
dependent upon a variety of economic factors. For FY 2017-18, total sales tax revenues equaled $38,270,026,
which is $1,428,889 or 3.88%, more than the prior year collections of $36,841,137.
Increased strength in employment and growth in new residential and commercial construction are leading
not
seasonally adjusted annual unemployment average rate remains below state and national levels at 3.1percent in
2018. The City of Denton has issued 2,102 new residential and commercial building permits for FY2017-18, with
an estimated value of $612 million. This compares to a total of 1,592 commercial and residential permits issued
for FY2016-17 and an estimated value of $471 million.
The following two charts highlight the strength of the local economy over the last ten years by displaying the
per capita in the City of Denton.
ii
Annual Unemployment Rate for U.S., Texas, and Denton
(Not Seasonally Adjusted)
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
200720082009201020112012201320142015201620172018
Denton Texas United States
Taxable Property Value Per Capita
(City of Denton)
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
20082009201020112012201320142015201620172018
iii
Fiscal year 2017-18 brought exciting news in economic development. Listed below are just a few of the
highlights:
The Rayzor Ranch mixed-use development is located on both the north and south sides of US Highway
380 in Denton. Rayzor Ranch Marketplace, on the north side of the development, has constructed over
-Mart anchor the development.
New tenants at the Marketplace include: James Avery, TJ Maxx and Tuesday Morning. The southern
Town Center continues to expand with the construction of Chase Bank and Zoës Kitchen. New tenants
include: Cotton Patch Café, Massage Envy, Alamo Drafthouse, Rooms To Go, Cheddars Scratch Kitchen
. These new tenants surround the Embassy Suites Hotel
and Convention Center described in more detail below.
-square-foot Convention Center, 318-room
18. The Embassy Suites by Hilton
is LEED Gold Certified. As a major anchor for the Rayzor Ranch Town Center, the project capitalizes
on the shopping, entertainment, and restaurants located nearby. The privately managed convention center
is also expected to
-foot wide second runaway. This project
is funded by the City and a grant by the Texas Department of Transportation Aviation Division. The
runway is under construction, with completion anticipated in early September 2019. This will
significantly expand the capacity of the Denton airport which is currently the seventh busiest airport in
Texas and the number one general aviation airport in the state.
The North Central Texas College (NCTC) is moving forward with the construction of a new campus, the
First State Bank Exchange, in downtown Denton that is scheduled to open in Fall 2019. The facility will
be approximately 45,000 square feet with classrooms for 2,500 students. Plans also include a four-story
parking garage with 350 spaces. NCTC has a partnership with the University of North Texas and Texas
opportunity to be concurrently enrolled at all three institutions.
Denton was ranked number 6 by City Lab as one of America's Top 25 High-Tech Hotspots. One of the
catalysts for this growth in high-
Hickory & Rail Ventures took over the management of the coworking space in 2018. Their vision for
Stoke is to make it the first of many places Denton entrepreneurs can call home. The center currently has
60-member companies. Some recent examples of their success include:
Flyp An app that allows users to operate multiple phone numbers from a single smart phone.
Users can then text and make/receive calls from those numbers, which each have a unique
ringtone and voicemail box.
Upventur iasts and hobbyists a place to
Kubos Kubos is a satellite software company targeting the emerging commercial space
industry. It combines quality engineering, modern software development, and mission-critical
services to serve the satellite industry.
Denton Municipal Electric (DME) has invested in infrastructure with the Denton Energy Center (DEC),
composed of twelve fast start electricity generating engines and ancillary equipment, which will be able
to achieve full output in just five minutes. The DEC will generate 225 megawatts of electricity and is
estimated to be operational this summer. The DEC will provide reliable energy at reduced costs for
industries that are significant consumers of electric utility services. United States Cold Storage and Tyson
Sales and Distribution, detailed below, are examples of these industries.
United States Cold Storage (USCS) provides its clients with refrigerated and frozen food warehousing
and transportation with 38 facilities in 13 states and 2,500 employees. In 2018, USCS closed on a 40-
acre site in the Westpark Tax Increment Reinvestment Zone (TIRZ). USCS plans to offer storage, re-
pack, case pick, distribution and transportation solutions for production facilities in the United States and
Mexico. The company estimates that it will invest $34 million in the project, which will create
iv
approximately $28 million in new ad valorem value in Denton. The estimated electric demand is 1.5
megawatts annually, which will make USCS a Top 25 customer for DME. The company plans to create
67 new jobs by Year 3 of operations with an average salary of $36,074. In 2018, USCS received a grant
of a 50% cost share of the sales and use taxes for the construction of their new distribution facility on a
40-acre site in the Westpark TIRZ.
Tyson Sales and Distribution provides refrigerated warehousing and distribution services to the Tyson
Foods, Inc. companies. Tyson had $38 billion in sales in FY 2017 and employs 122,000. The company
will construct 350,000+ square foot highly automated refrigerated distribution center. The facility will
contain automated storage and retrieval systems, including stacker cranes, gantry robots for layer picking,
pallet conveyors and transfer cars, and a monorail. It is expected to ship 700 million pounds of product
annually from the facility. The facility will have about a 2-megawatt annual electric demand which will
add another Top 25 customer for DME. It will employ 100 on a full-time basis with hourly wages ranging
from $20 to $45. In 2019, Tyson received an abatement of 25% of their business personal property only
(which does not go into the TIRZ) for 6 years.
LONG-TERM FINANCIAL PLANNING
In conjunction with this document, interested parties are encouraged to read the s FY 2018-19
Annual Budget document. This document details the strategic plan, long-term financial policies, program
accomplishments, and other key initiatives. The document also includes the long-term financial forecasts for each
of the major funds, and a summary of the assumptions that are included in these plans. In addition, the budget
document provides an overview of the adopted Capital Improvement Program and planned future debt issuances.
The Annual Budget can be accessed web site at www.cityofdenton.com and selecting Financial
Transparency Open Government
RELEVANT FINANCIAL POLICIES
The City of Denton maintains reserve balances for emergencies. In the General Fund, the target reserve level is a
minimum of 20% of budgeted expenditures with an additional 5% resiliency reserve for a combined total of 25%
to provide stability and flexibility for the organization. As described in the accompanying CAFR document, the
unassigned fund balance is $28.9 million, or 23.06%, of the budgeted General Fund expenditures for the fiscal
year ended September 30, 2018.
Beginning in FY 2011-12, the City adopted a policy which requires a minimum ending working capital balance
(current assets minus current liabilities) of at least 8% of budgeted expenditures for the Electric, Water,
Wastewater and Solid Waste Funds. If the working capital level should fall below the desired minimum, the City
will implement necessary corrective action with a five-year plan to restore the working capital balance to 8% of
budgeted expenditures.
Additionally, rate reserve levels were established for the Electric, Water, Wastewater, and Solid Waste Funds in
FY 2011-12 according to the unique operational aspects of each utility. The rate reserve levels were most recently
revised in FY 2015-16 based on the factors of revenue stability, expense and demand volatility, infrastructure
age, debt levels and management plans for the use of these reserves. The rate reserve level is established at a
range of 8% to 12% of expenses for the Electric Fund, at a range of 20% to 31% of expenses for the Wastewater
Fund, at a range of 25% to 42%ofexpenses for the Water Fund, and at a range of 6% to 10%of expenses for the
Solid Waste Fund. If the rate reserve level falls below the range, the City will implement necessary corrective
action within a five-year plan to restore the balances to the levels outlined above.
The City of Denton has adopted an Investment Policy which guides the investment of all City funds. In accordance
with State law, the policy is reviewed annually by the City Council to ensure that public funds are being invested
in a conservative and prudent fashion. In addition, the City also annually reviews and approves a Debt
Management policy. The purpose of this policy is to provide general guidelines regarding the issuance of City
debt and the use and limitation of such debt. The City complied with all aspects of the Investment and Debt
Management policies during FY 2017-18.
v
MAJOR INITIATIVES
In FY 2017-18, the Citycontinued to emphasizestreet maintenance and repair activitiesasfundingin the Street
Improvement Fund increased by $1.1 million.This additional funding was used forconcrete pavement, curb and
gutter, and sidewalk repairs along with additional crack and micro seal repairs.
street infrastructure, the enhancement of public safety is also identified in the Strategic Plan as a major initiative.
Accordingly, the FY 2017-18General Fund budget included $1.4 millionin funding enhancements for public
safety programs. These enhancements included a new medic unit (six new personnel) at Fire Station 4 and Taser
system expansionsate the Police Department.
Employee compensation remained a continuing priority inFY 2017-18with an average 3% merit increase
provided to all employees along with eligible step increases for all police and fire civil service personnel.Another
major funding priority was $1.2 millionof one-time capital expenditures from the Traffic Safety Fund.These
expendituresincludedthe replacement of three traffic signals.
AWARDS AND ACKOWLEDGEMENTS
Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended
September 30, 2017, for the thirtysecond consecutive year. In order to be awarded the Certificate of Achievement
in Financial Reporting, the City must publish an easily readable and efficiently organized Comprehensive Annual
Financial Report. This report satisfies both generally accepted accounting principles and applicable legal
requirements. The Certificate of Achievement is held for a period of one year only. We believe our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement requirements, and we
are submitting it to GFOA to determine its eligibility for another certificate.
The City also received the GFOA award for Distinguished Budget Presentation for its fiscal year 2017-18 Annual
Budget for the thirtysecond consecutive year. In order to qualify for the Distinguished Budget Presentation
de, financial
plan, policy document, and communications device. The City has submitted its fiscal year 2018-19 Annual
Budget to GFOA to determine its eligibility for another certificate. We believe it continues to meet the
Distinguished Budget Presentation Award criteria.
In 2018Department earned the Excellence in Procurement Award from the National
Purchasing Institute, Inc. (NPI) for the twentieth year in a row. This award is achieved by those organizations
that demonstrate excellence in procurement by achieving a high score on standardized criteria designed to
measure innovation, professionalism, productivity, and leadership. NPI represents purchasing officials employed
by national, state, and local governments; educational institutions; and tax-supported and public entities
throughout the country.
We would like to thank the City Council for their strong leadership and support that helped make the presentation
of this report possible. We would also like to thank the City Manager, Finance staff, department directors, division
heads and especially the Accounting Division staff for their diligent efforts in the preparation of the annual
financial report.
Bryan Langley Antonio Puente, Jr.
Deputy City Manager Chief Financial Officer
vi
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viii
CITY OF DENTON, TEXAS
List of Principal Officials
TitleName
MayorChris Watts
Councilmember, District 1Gerard Hudspeth
Councilmember, District 2Keely G. Briggs
Councilmember, District 3Don Duff
Councilmember, District 4, Mayor Pro TemJohn Ryan
Councilmember, At LargePlace 5Deb Armintor
Councilmember, At Large Place 6Paul Meltzer
TitleName
City ManagerTodd Hileman
Deputy City Manager / Chief OperatingOfficerBryan Langley
Assistant City ManagerMario Canizares
City AttorneyAaron Leal
Municipal Judge Robin Ramsay
City SecretaryJennifer Walters
x
Management’s Responsibility for the Financial Statements
Auditors’ Responsibility
Opinions
Change in Accounting Principle
Other Matters
Government Auditing Standards
CITY OF DENTON, TEXAS
SEPTEMBER 30, 2018
The Management Discussion and Analysis is designed to (a) assist the reader in focusing on significant
financial position (its ability to address the next and
deviations from the financial plan (the approved budget), and (e) identify individual fund issues or concerns.
Since
resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning
beginning on page 17).
FINANCIAL HIGHLIGHTS
The assets of the City exceeded its liabilities at the close of the fiscal year ended September 30, 2018 by
$935,276,385 (net position). Of this amount, $158,503,794 (unrestricted net position) may be used to meet
position on the statement of net position increased by $131,776,812 in fiscal year 2018.
As of September 30, 2018
$182,101,943, an increase of $40,137,195 in comparison with the prior fiscal year. Compared to the prior
year, revenues were higher by $30.8 million due primarily to higher property tax of $2.8 million, sales tax
of $1.4 million, hotel occupancy tax of $0.4 million, building permits of $0.7 million, franchise fees of $1.8
million, fees for services of $0.1 million, investment revenue of $0.6 million,other intergovernmental
revenues of $20.8 million, and miscellaneous revenue of $2.7 million. The higher revenues were offset by
lower fines and forfeitures of $0.5 million.Expenditures reflect higher costs for public safety of $5.2 million,
higher costs for general government of $1.5 million, higher costs for parks and recreation of $0.5 million,
higher capital expenditures of $17.7 million, and higher debt service interest costs of $0.8 million. The higher
expenditures were offset by lower public works expenditures of $1.2 million.
combined governmental funds are $24.5 million higher than the prior year. New proceeds from the issuance
of long-term debt added $57.0 million in new funding.Net transfers out increased by $7.5 million, from a
net transfer in of $0.9 million in fiscal year 2017, to a net transfer out of $6.7 million in fiscal year 2018.
Approximately 15.4% of the $182,101,943, or $27,974,751, is available for spending at the governmen
discretion (unassigned fund balance).
Tnoncurrent liabilities, including other noncurrent liabilities, increased by $5,494,410 during
the fiscal year. The primary reasons for the changes are the issuance of $39.1 million of certificates of
obligation and $19.2 million of general obligation bonds, which were offset by the scheduled pay down of
general obligation bonds and certificates of obligation of $53.9 million and the amortization of related
premium and discounts of $6.0 million. Favorable market conditions contributed to a decrease of $26.1
ity for other post-employment benefits increased $31.9 million
due to a new actuarial study and implementation of GASB Statement No. 75. Other changes include an
increase of $0.9 million for the landfill closure and post closure liability, an increase of claims payable
of $0.4 million, an increase in compensated absences of $0.5, and a decrease in leases payable of $0.5
million. -term debt can be found in note IV.G. on pages 56 - 60 of
this report.
OVERVIEW OF THE FINANCIAL STATEMENTS
are comprised of three components: (1) government-
wide financial statements, (2) fund financial statements and (3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements.The government-wide financial statements are designed to provide
aprivate-sector business.
The statement of net position presents information , liabilities, deferred inflows, and
deferred outflows with the difference reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
5
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
net position changed during the most
h
is received or paid. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but not used vacation leave). Both
the statement of net position and the statement of activities are prepared using the accrual basis of accounting as
opposed to the modified accrual basis.
In the Statement of Net Position and the Statement of Activities, the City is divided between two kinds of
activities:
Governmental activities
libraries, development, public services and operations, public works, building inspection, technology
services and general administration. Property taxes, sales taxes, and franchise fees finance most of these
activities.
Business-type activities. The City charges a fee to customers to cover the cost of services it provides. The
s (electric, water and wastewater), solid waste, and airport activities are reported here.
The government-wide financial statements can be found on pages 17 - 19 of the report.
Fund Financial Statements.A fund is a grouping of related accounts used to maintain control over resources
that have been segregated for specific activities or objectives. Fund financial statements provide detailed
information about the most significant funds, not the City as a whole. Some funds are required to be established
by state law or bond covenants. However, the City Council establishes many other funds to help it control and
manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes,
grants and other monies. The below illustration summariz statements.
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Scope Entire City governmentActivities of the City that are Activities the City operates
not proprietary, such as similar to private businesses:
police, fire and parkselectric, water, wastewater
utilities, solid waste and
airport operations
Required financial Statement of net position Balance Sheet Statement of net position
statementsStatement of activitiesStatement of revenues, Statement of revenues,
expenditures and changes in expenses and changes in net
fund balancesposition
Statement of cash flows
Accounting basis and Accrual accounting and Modified accrual accounting Accrual accounting and
measurement focuseconomic resources focusand current financial economic resources focus
resources focus
Types of asset/liability All assets and liabilities, Only assets expected to be All assets and liabilities, both
informationboth financial and capital, used up and liabilities that financial and capital, short-
short-term and long-termcome due during the year or term and long-term
soon thereafter; no capital
assets included
Type of inflow/outflow All revenues and expenses Revenues for which cash is All revenues and expenses
informationduring year, regardless of received during or soon after during year, regardless of
when cash is received or the end of the year; when cash is received or paid
paidexpenditures when goods or
services have been received
and payment is due during
the year of soon thereafter
6
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and
fiduciary funds.
Governmental funds
focus on how money flows into and out of those funds and the balances left at year-end that are available for
spending. These funds are reported using an accounting method identified as the modified accrual basis of
accounting, which measures cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-
operations and the basic services it provides. Governmental fund information helps the reader determine
programs. By comparing information presented for governmental funds with similar information presented
for governmental activities in the government-wide financial statements, readers may better understand the
long--term financing decisions. The relationship or differences
between governmental activities (reported in the Statement of Net Position and the Statement of Activities)
and governmental funds are detailed in a reconciliation following the fund financial statements.
The City of Denton maintains twelve governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and
changes in fund balances for the general fund, debt service fund and capital projects fund, all of which are
considered to be major funds. Data from the other nine governmental funds are combined into a single,
aggregated presentation. Individual fund data for eight of these non-major governmental funds, along with
an aggregate of all other governmental funds, is provided in the form of combining statements elsewhere in
this report.
Proprietary funds. The City charges customers for certain services it provides, whether to outside
customers or to other units within the City. These services are generally reported in proprietary funds.
Proprietary funds are reported in the same manner that all activities are reported in the Statement of Net
Position ry
funds) are similar to the business-type activities that are reported in the government-wide statements but
provide more detail and additional information, such as cash flows. The internal service funds (the other
component of proprietary funds) are utilized to report activities that provide supplies and services for the
-insurance fund,
andequipment maintenance function. Because these services benefit both governmental and
business-type functions, they have been included in both the governmental and business-type activities in
the government-wide financial statements.
The City of Denton maintains five enterprise funds. The City uses enterprise funds to account for its electric,
water, wastewater, solid waste, and airport operations. The funds provide the same type of information as
the government-wide financial statements, only in more detail and include the internal service fund-type
activity. The City considers all enterprise funds to be major funds.
Fiduciary funds.Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statement because the
resources of those funds are not available to support the C
fiduciary funds is much like that used for proprietary funds. Agency funds are a component of fiduciary
funds. Agency funds differ from other fiduciary funds in that they do not typically involve a formal trust
a
as receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations,
or other governments.
The City maintainsone fiduciary fund, an agency fund. The City uses agency funds to account for the
collection and payment of property and evidence, temporary developer holdings and other similar
relationships.
7
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found on pages 35 - 85 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As of September 30, 2018 were $935,276,385, of which $196,533,071 can be
attributed to governmental activities and $738,743,314 attributed to business-type activities. This analysis
focuses on the net position (Table 1) and changes in net position
business-type activities.
position (78.6%) reflects its investment in capital assets (e.g., land, building,
machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The City
uses these capital assets to provide services to citizens; consequently, these assets are not available for future
that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
Table 1
Net Position
(in thousands)
Governmental ActivitiesBusiness-type Activities
Total
201820172018201720182017
Current and other assets $ 289,367 $ 268,812 $ 426,310 $ 541,416 $ 715,677 $ 810,228
Capital assets, net of accumulated depreciation 310,971 266,657 1,224,104 1,081,445 1,535,075 1,348,102
Total assets 600,338 535,469 1,650,414 1,622,861 2,250,752 2,158,330
Deferred outflows of resources 26,043 26,540 13,973 15,437 40,016 41,977
Long-term liabilities outstanding 319,898 272,171 889,517 931,750 1,209,415 1,203,921
Other liabilities 92,018 112,156 27,357 46,513 119,375 158,669
Total liabilities 411,916 384,327 916,874 978,263 1,328,790 1,362,590
Deferred inflows of resources 17,932 4,253 8,770 526 26,702 4,779
Net position:
Net investment in capital assets 194,211 165,408 540,697 502,801 734,908 668,209
Restricted 21,655 14,531 20,209 11,516 41,864 26,047
Unrestricted (19,333) (6,510) 177,837 145,192 158,504 138,682
Total net position $ 196,533 $ 173,429 $ 738,743 $ 659,509 $ 935,276 $ 832,938
Governmental activities inet position by $40,064,536 with a prior period adjustment
decreasing governmental activities by $16,960,959. Business-type activities inposition by
$91,712,276 with a prior period adjustment decreasing business-type activities by $12,478,262. The key
elements of these increases are contained in Table 2.
8
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
Table 2
Changes in Net Position
(in thousands)
GovernmentalBusiness-type
ActivitiesActivitiesTotal
201820172018201720182017
Revenues:
Program Revenues:
Charges for services$ 20,212$ 19,334$318,471$282,063$ 338,683$ 301,397
Operating grants and contributions3,6984,668--3,6984,668
Capital grants and contributions33,99117,18020,52020,34854,51137,528
General Revenues:
Property tax67,18664,349--67,18664,349
Sales tax38,27036,841--38,27036,841
Franchise tax26,00724,211--26,00724,211
Hotel occupancy tax2,7342,374--2,7342,374
Beverage tax632618--632618
Bingo tax1114--1114
Investment Income1,9381,3304,0833,4726,0214,802
Miscellaneous4,8892,2342413845,1302,618
Total revenues199,568173,153343,315306,267542,883479,420
Expenses:
General government37,96940,762--37,96940,762
Public safety71,94568,547--71,94568,547
Public works25,68424,994--25,68424,994
Parks and recreation17,42216,793--17,42216,793
Interest on long-term debt5,3794,971--5,3794,971
Electric--168,111174,901168,111174,901
Water--27,48128,20327,48128,203
Wastewater--26,28426,73026,28426,730
Solid waste--29,02834,53329,02834,533
Airport--1,8031,9311,8031,931
Total expenses 158,399156,067252,707266,298411,106422,365
Increase in net position before transfers41,16917,08690,60839,969131,77757,055
Transfers(1,104)9171,104(917)--
Increase in net position40,06518,00391,71239,052131,77757,055
Net position at beginning of year173,429155,426659,509620,457832,938775,883
Prior period adjustment(16,961)-(12,478)-(29,439)-
Net position at beginning of year156,468155,426647,031620,457803,499775,883
Net position at end of year$196,533$173,429$738,743$659,509$ 935,276$ 832,938
Governmental activities.Expenses for the governmental activities reflects a decrease of $2.8 million in general
government expenses. This decrease was offset by an increase of $3.4 million in public safety, a $0.7 million
increase in public works, and a $0.6 million increase in parks and recreation. The most significant governmental
activities expense was in providing public safety, which incurred expenses of $71,945,219. The most significant
portion of public safety is the cost of personnel, which totaled $55,804,242. Governmental activities expense
also includes general government, which incurred $37,968,945 in expenses, of which $15,959,200 represented
personnel charges.
9
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
These expenses were funded by revenues collected from a variety of sources, with the largest being from property
taxes, which are $67,185,610 for the fiscal year ended September 30, 2018. The $16.7 million increase in the
governmental program revenues are mainly due to an increase of $17.2 million in capital grants and contributions
for public works. The increase was offset by a decrease of $0.4 million for parks and recreation and $0.1 million
for general government. Increases in charges for services of $1.2 million for General government and $0.4 for
parks and recreation were offset by decreases of $0.6 million for public safety and $0.2 for public works. Total
operating grants and contributionsdecreased by $1.0 million for general government, public safety, and parks
and recreation. Governmental general revenues included an increase of $2.8 million for property tax due to rising
values and new construction, and an increase of $1.4 million for sales tax due to an improving economy.
Transfers reflect a $6.6 million transfer out of governmental activities for the current year as compared to a
transfer in of $0.9 million for the prior fiscal year.
Business-type activities. Business-tposition by $91,712,276 with a prior
period adjustment of $12,478,262. This accounts for 77.4% of the growth in the entity-wide net position. All
Utility service revenues increased by a total of $30.0 million. Electric charges for services increased by $24.7
million. Water charges for services increased by $4.7 million as compared to the service charges from prior year.
Wastewater charges provided $0.8 million of the increase. Solid Waste charges for service provided decreased
$0.2 million compared to the prior year. Airport charges for goods and services increased by $0.3 million as
compared to service charges from the prior year. Water and Wastewater collected $7.9 million and $4.0 million
in impact fees, respectively, reflecting a $4.5 million increase over the prior year.Capital contributions, which
arise from new property development within the City, represent a major revenue source for the Water and
Wastewater funds during the current fiscal year. Capital contributions were $20.5 million during the year and
represent a $0.2 million increase from the prior year. The Airport gas well revenues contributed an additional
$0.4 million to the increase in net position, a decrease of $0.2 million from the prior year. Total enterprise funds
operating costs, before depreciation, decreased $7.8 million. Electric expenses reflect a decrease in costs for
purchased power costs of $4.4 million and administrative costsof $1.2 million. These declines were offset by an
increase in insurance costs of $0.7 million. Water expenses reflect $0.1 million in decreased costs for personal
services. Wastewater expenses include an increase in administrative costs of $0.3 million that was offset by a
decrease in maintenance and repair costs of $0.3 million. Solid Waste operations expenses reflect decreased
costs for personal services of $0.6 million and closure/post closure costs of $1.9 million compared to the prior
year. Airport operations expenses reflect a $0.1 million decrease in personnel costs.
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds.-term
inflows, outflows, and balances of resources available to spend
financing requirements. In particular, unassigned
net resources available for spending at the end of the fiscal year.
As of the end of the cu
of $182.1 million, an increase of $40.1 million in comparison with the prior year. $27,974,751 constitutes
unassigned . The remainder of the
fund balance has been classified to indicate that it is not available for new spending because it has already been
classified as restricted ($126.5 million), committed ($8.2 million), and assigned ($19.4 million).
The General Fund is the chief operating fund of the City. At September 30, 2018, the unassigned fund balance
of the General Fund was $28.9 million, or 23.1% of budgeted general fund expenditures. The General Fund
ending fund balance decreased by $1.5 million during the current fiscal year. The change in fund balance is due
to expenditures, including other financing uses, of $114.9 million, and revenues, including other financing
sources, of $113.4 million. Revenues were $3.0 million higher compared to the previous year primarily due to
increased taxes of $2.6 million and licenses and permits of $0.7 million. These increases were offset by decreases
10
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
in revenue of $0.1 million for fines and forfeitures and $0.2 million in fees for services. The net change in
expenditures was $8.0 million higher ascompared to the previous year primarily due to increased costs related
to personal services, operations, and transfers out. The increased personnel costs accounted for $4.0 million, of
which public safety accounted for all of the personnel costs. The increase in operations, services costs of $1.2
million over the prior year is related to an increase of general government in the amount of $0.4 million, public
safety in the amount of $0.3 million, and parks and recreation in the amount of $0.5 million. The increased
insurance costs of $0.7 million is due to an increase in general government of $0.2 million and public safety of
$0.5 million.
Personnel costs, on a year over year comparison, were higher due to an average merit increase of 3% for non-
civil service employees, a pay adjustment for civil service employees to reach the market average plus 5% and
continued step raises for public safety civil service employees. During the fiscal year 11
public safety r Fire.
At the end of the fiscal year, the capital projects fund has a total fund balance of $125.5 million, an increase of
$36.2 million. The total fund balance is made up of $104.5 million in restricted funds, $3.0 million in committed
funds, and $18.0 million in assigned funds, all for capital construction and acquisition. In 2018, the City received
$60.2 million of proceeds from the issuance of debt and recognized $20.5 million of regional toll revenues from
the Texas Department of Transportation,while expending $52.8 million on construction and acquisition. In
addition, the capital projects fund received $1.0 million in interest income and $13.5 million of transfers from
other funding sources. The City also received approximately $8.1 million
recorded in the government-wide financial statements. This is $1.3 million less than in the prior year.
The debt service fund has a total fund balance of $5.5 million, all of which is restricted for the payment of debt
service. As compared with the prior year results, the overall increase in the debt service fund balance of $0.1
million resulted from an increase of $1.3 million in tax revenue offset by an increase of $1.9 million in principal
and interest costs. Additional amounts include a reduction from the prior year of a$0.6 million of premiums on
debt issuance, and a reduction of transfers in by $0.1 million.
Proprietary funds.-
wide financial statements, but in more detail.
Unrestricted net position at September 30, 2018 in proprietary funds are $70.8 million for Electric, $51.8 million
for Water, $38.6 million for Wastewater, $1.8 million for Solid Waste, and $3.3 million for the Airport Fund.
The results reflect increases of the unrestricted net position in the Electric Fund of $23.0 million, the Water fund
of $6.9 million, the Wastewater fund of $0.5 million, and the Airport fund of $0.5 million. The Solid Waste fund
unrestricted net position decreased by $1.1 million. Other factors concerning the finances of these funds have
already been addressed in the discussio-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
During fiscal year 2018, four formal amendments to adjust the City of Denton Annual Program of Services
were approved by Council for the General Fund. Council approved funding to provide for additional
improvements, equipment and other expenses. The additional funds increased the General Fund by $5.7 million
to fund traffic and park improvements, the Electric Fund by $24.0 million to fund capital improvements, the
Capital Projects Fund by $11.8 million, the Downtown Tax Increment Reinvestment Zone by $1.5 million for
sidewalks and streetlights, the Solid Waste Fund for $0.8 million to fund a reimbursement to the Electric Fund,
the Risk Retention Fund by $0.6 million to fund additional claims, $0.1 million each to the Park Land Dedication
and Park Development Funds for park land acquisition and development, and $20,000 to the Debt Service Fund
for additional fiscal charges.
11
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
GENERAL FUND BUDGET TO ACTUAL HIGHLIGHT
For fiscal year 2018, General Fund actual expenditures (including transfers) on a budgetary basis were $123.2
million compared to the final budget of $125.4 million. The $2.2 million positive expenditure variance was
primarily due to reduced costs of $1.3 million in personnel, $0.4 million in materials and supplies, $0.2 in
maintenance and repairs, and $0.3 million in service operations.
The personnel savings is due to reduced costs of $0.2 million in general government, $0.3 million in public
safety, $0.2 million in public works and $0.6 million in parks and recreation. In addition to personnel savings,
general government and parks and recreation both saw positive variances to budget of $0.2 million in materials
and supplies. Maintenance and repair costs were favorable to budget by $0.1 in general government. The net
favorable variance in service operations was due to general government savings of $0.6 million that was offset
by increased costs for public safety of $0.2 million and $0.1 million in parks and recreation.
Actual revenues for the General Fund (including transfers and sale of capital asset) on a budgetary basis were
$121.7 million compared to the final budget of $119.7 million. Of the $2.0 million revenue variance, favorable
sales tax revenues of approximately $2.1 million were offset by a$0.2 million negative revenue variance for ad
valorem taxes. In addition, favorable revenue variances of $1.0 million for licenses and permits and $0.3 million
for franchise fees were offset by negative revenue variances of $0.4 million for fines and forfeitures and $0.8
million for fees for services.
General Fund unassigned fund balance at September 30, 2018 is $28.9 million, or 23.1%
of budgeted expenditures. Below is a listing of the ending unassigned balances for the prior year, as well as the
fiscal year 2018 unassigned fund balance.
ActualActual
9/30/20189/30/2017
Unassigned balance$28,918,681 $31,770,773
% of final budgeted expenditures23.1%26.7%
Policy level20% plus up to 20% plus up to
a 5% resiliency a 5% resiliency
reservereserve
ad valorem ad valorem tax rate
is comprised of two components. The first is the operations and maintenance component that is used to calculate
calculate revenue to p
certified appraisal roll shows an increase of 13.32%compared to the prior year certified value, which showed
an increase of 8.23%. The current property tax year included $288.6 million of new growth and construction that
was added to the tax rolls in Tax year 2017 as compared to Tax year 2016. The fiscal year 2018 ad valorem tax
rate decreased to $0.637856 as compared to the prior yearof $0.683340 per $100 of valuation.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. At the end of fiscal year 2018, the City had $1,535,075,855 invested in a broad range of capital
assets, including police and fire equipment, buildings, park facilities, roads, bridges, electrical infrastructure, and
water and sewer lines (see Table 3 below). This amount represents a net increase (including additions and
deductions) of $186,973,859 or 13.9% over the prior fiscal year.
12
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
Table 3
Capital Assets at Year-end
(Net of Accumulated Depreciation, in Thousands)
Governmental ActivitiesBusiness-type ActivitiesTotals
201820172018201720182017
Land$ 2 2,244$ 21,679$ 49,287$ 29,413$ 71,531$ 5 1,092
Landfill improvements-- 2,1703,7122,1703,712
Building and improvements43,98640,17217,85216,00961,83856,181
Plant, machinery and equipment42,98140,691336,017263,292378,998303,983
Water rights-- 49,43950,13549,43950,135
Infrastructure114,902107,434380,315363,451495,217470,885
Construction in progress86,85856,681389,024355,433475,882412,114
Total capital assets$310,971$266,657$ 1,224,104$ 1,081,445$ 1,535,075$ 1,348,102
asset additions included:
DescriptionAmount
Arco Substation Reconstruction$ 15,523,934
North Lakes Substation Expansion12,091,244
Kings Row Substation10,978,714
Denton North - Kings Row Transmission Lines7,800,052
McKinney - Cooper Creek Transmission Lines6,199,133
Fire Station #2 Expansion5,491,543
Teasley - Pockrus Transmission Line Rebuild4,852,089
Woodrow - McKinney Transmission Line4,730,607
North Lakes - Denton North Transmission Line4,153,294
Beaver Creek Subdivision Infrastructure3,941,023
Rayzor Ranch Town Center Infrastructure3,885,131
Denton North Interchange 138Kv Converter3,742,716
Bonnie Brae - North Lakes Transmission Line3,499,573
Teasley Trails Subdivision Infrastructure3,361,445
Preserves at Pecan Creek Subdivision Infrastructure3,051,554
Water Works Park Additions2,746,811
Total$ 96,048,863
on pages 51 - 53 of this report.
13
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
Debt.At year-end, the City had $982.1 million in bonds and notes outstanding as compared to $977.7 million
at the end of the prior fiscal year, an increase of 0.45%, as shown in Table 4.
Table 4
Outstanding Debt at Year-end
(in thousands)
Governmental ActivitiesBusiness-type ActivitiesTotals
201820172018201720182017
General obligation bonds$ 127,648$118,268$111,347$127,677$238,995$245,945
Certificates of obligation81,200 447,05049,285467,620528,250516,905
Revenue bonds- 214,890-214,890214,890214,890
Total$ 208,848$167,553$773,287$810,187$982,135$977,740
These amounts do not include net unamortized premiums/ (discounts) of $74,020,204 or net deferred gain/ (loss)
on refunding of ($5,099,034).
During the current fiscal year, the City issued debt two times, in June 2018 and in September 2018. The June
debt issuance included $19.2 million of general obligation bonds and $9.6 million in certificates of obligation to
pay the costs of various governmental capital improvements. The September debt issuance resulted in $29.5
million in certificates of obligation, of which $1.4 million was for enterprise operations, to pay for various capital
improvements. Normal pay down in debt was $26.2 million in general obligation bonds and $27.8 million in
certificates of obligation.
Obligation a rating of 2Standard and
+
rating. has given nds -.
Fitch
The City is permitted by Article XI,
Section 5 of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general
governmental services including the payment of principal and interest on general obligation long-term debt. The
current ratio of tax-supported debt to certified assessed value of all taxable property is 2.33%.
Other long-term liabilities. The City maintains a self-insurance program for general liability, auto liability,
omission liability, police professional liabili
Private insurance companies cover claims for property loss over $50,000 per location/$250,000 per occurrence
aggregate, losses over $500,000 per occurrence, and for liability over $500,000 per
occurrence. The Risk Retention Fund has a reserve for claims and judgments of $2.8 million outstanding at year-
end compared with $2.5 million at the end of the prior fiscal year. Other obligations include pension liabilities,
-term liabilities is presented
in Note IV. G., on pages 56 - 60 of this report.
While growth for the Denton community is expected to be moderate in the short term, demands for city services
are expected to remain strong over the long term. As a result, the fiscal year 2019 Budget includes an Ad valorem
tax rate of $0.620477/$100 valuation, a decrease of $0.017379/$100 in comparison to the prior year. While sales
tax increased over the prior year by 3.9%, the fiscal year 2019 Budget projectsan increase of 5.0% over fiscal
year 2018 actual sales tax revenues. General Fund expenditure enhancements for fiscal year 2019 include new
positions in public safety, parks and recreation, and internal audit. Funding enhancements of $1.7 million will
be budgeted for public safety, $1.0 million for neighbor services, and $1.0 million for administrative and
community services in fiscal year 2019 in accordance with priorities established through the Strategic Plan.
14
CITY OF DENTON, TEXAS
(continued)
SEPTEMBER 30, 2018
The fiscal year 2019 budget includes no Electric base rate changes and a one year suspension of the Transmission
Cost Recovery Factor for a net residential decrease of 3.5% with minor variances across customer classes for
electric customer classes. Water rates have no changes in fiscal year 2019. There are no rate changes for solid
waste customers beyond the 12% mid-year reduction provided to residential customers in fiscal year 2018.
Wastewater rates include a 5% reduction in fiscal year 2019.
REQUESTS FOR INFORMATION
This financial report is designed
additional financial information should be addressed to the City of Denton Finance Department, 215 E.
McKinney, Denton, Texas 76201.
15
16
CITY OF DENTON, TEXASExhibit I
STATEMENT OF NET POSITION
AS OF SEPTEMBER 30, 2018
Primary Government
GovernmentalBusiness-type
ActivitiesActivitiesTotal
ASSETS:
Current assets:
Cash, cash equivalents and investments,
at fair value$ 76,992,520$ 190,089,013$ 267,081,533
Receivables, net of allowances:
Taxes8,317,499-8,317,499
Accounts-17,784,31717,784,317
Unbilled utility service-14,529,18514,529,185
Interest413,954929,0481,343,002
Other2,470,7548,382,07910,852,833
Internal balances(16,255,420)16,255,420-
Due from other governments3,908,135-3,908,135
Inventory6,583,598-6,583,598
Prepaid items287,96322,483,86422,771,827
Other Assets-23,268,44023,268,440
Total current assets82,719,003293,721,366376,440,369
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments,
at fair value205,235,442131,893,494337,128,936
Escrow deposits189,00050,000239,000
Accrued interest966,379644,6481,611,027
Other receivables256,618-256,618
Capital assets not being depreciated:
Land22,243,77149,287,18471,530,955
Construction in progress86,858,308389,024,110475,882,418
Capital assets, net of accumulated depreciation:
Buildings43,985,95417,852,13261,838,086
Plant, machinery and equipment42,981,397336,017,449378,998,846
Infrastructure114,901,994380,314,828495,216,822
Landfill improvements-2,170,0142,170,014
Water rights-49,438,71449,438,714
Total noncurrent assets517,618,8631,356,692,5731,874,311,436
Total assets 600,337,8661,650,413,9392,250,751,805
DEFERRED OUTFLOWS OF RESOURCES:
Deferred loss on refundings1,590,4773,508,5575,099,034
Deferred pension balances22,563,3239,407,11831,970,441
Deferred other post-employment benefit balances1,889,2121,057,4752,946,687
Total deferred outflows of resources26,043,01213,973,15040,016,162
LIABILITIES:
Current liabilities:
Accounts payable7,668,0448,102,28415,770,328
Retainage payable79,13255,167134,299
-4,416,5294,416,529
Deposits
Accrued interest3,064-3,064
395,792-395,792
Other liabilities
Unearned revenue75,648,7174,105,64279,754,359
Payable from restricted assets:
Accounts payable5,252,8471,955,7257,208,572
Retainage payable1,948,4982,205,4594,153,957
Accrued interest1,021,9616,516,0207,537,981
92,018,05527,356,826119,374,881
Total current liabilities
Noncurrent liabilities:
Noncurrent liabilities due within one year27,345,97651,589,17678,935,152
Noncurrent liabilities due in more than one year292,551,766837,928,3571,130,480,123
Total noncurrent liabilities319,897,742889,517,5331,209,415,275
Total liabilities411,915,797916,874,3591,328,790,156
DEFERRED INFLOWS OF RESOURCES:
Deferred pension balances17,932,0108,769,41626,701,426
Total deferred inflows of resources17,932,0108,769,41626,701,426
NET POSITION:
Net investment in capital assets194,210,730540,697,505734,908,235
Restricted for:
Debt service4,773,2672,683,6447,456,911
Parks and recreation5,565,167-5,565,167
Capital acquisition4,157,67117,525,76421,683,435
Other grants and purposes7,158,843-7,158,843
Unrestricted(19,332,607)177,836,401158,503,794
Total net position$ 196,533,071$ 738,743,314$ 935,276,385
The notes to the basic financial statements are an integral part of this statement.
17
CITY OF DENTON, TEXASExhibit II
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Program Revenues
OperatingCapital
Charges forGrants andGrants and
Functions/ProgramsExpensesServicesContributionsContributions
Primary government:
Governmental activities:
General government$ 37,968,945$ 6,489,438$ 1,734,744$ -
Public safety71,945,2198,221,3141,447,303238,358
Public works25,683,779649,293-32,998,320
Parks and recreation17,422,2734,852,322515,649754,628
Interest expense5,379,149---
Total governmental activities 158,399,36520,212,3673,697,69633,991,306
Business-type activities:
Electric system168,110,899198,748,366--
Water system27,481,05848,912,059-7,334,728
Wastewater system26,284,04935,594,624-13,179,314
Solid waste29,028,29933,590,463--
Airport1,802,7031,625,672-5,468
Total business-type activities252,707,008318,471,184-20,519,510
Total primary government$ 411,106,373$338,683,551$ 3,697,696$ 54,510,816
(continued on the following page)
The notes to the basic financial statements are an integral part of this statement.
18
CITY OF DENTON, TEXASExhibit II
STATEMENT OF ACTIVITIES (concluded)
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Net (Expense) Revenue and Changes in Net Position
Primary Government
GovernmentalBusiness-type
Functions/ProgramsActivitiesActivitiesTotal
Primary government:
Governmental activities:
General government$ (29,744,763)$ -$ (29,744,763)
Public safety(62,038,244)-(62,038,244)
Public works7,963,834-7,963,834
Parks and recreation(11,299,674)-(11,299,674)
Interest expense(5,379,149)-(5,379,149)
Total governmental activities (100,497,996)-(100,497,996)
Business-type activities:
Electric system-30,637,46730,637,467
Water system-28,765,72928,765,729
Wastewater system-22,489,88922,489,889
Solid waste-4,562,1644,562,164
Airport-(171,563)(171,563)
Total business-type activities-86,283,68686,283,686
Total primary government(100,497,996)86,283,686(14,214,310)
General revenues:
Taxes:
Property tax67,185,610-67,185,610
Sales tax38,270,026-38,270,026
Franchise fees26,007,002-26,007,002
Hotel occupancy tax2,733,720-2,733,720
Beverage tax632,217-632,217
Bingo tax11,244-11,244
Investment income1,937,5794,083,5606,021,139
Gain on sale of capital assets188,958240,740429,698
Miscellaneous 4,700,466-4,700,466
Transfers(1,104,290)1,104,290-
Total general revenues and transfers 140,562,5325,428,590145,991,122
Change in net position40,064,53691,712,276131,776,812
Net position at beginning of year173,429,494659,509,300832,938,794
Prior period adjustment (Note I.G.)(16,960,959)(12,478,262)(29,439,221)
Net position at beginning of year - as restated156,468,535647,031,038803,499,573
Net position at end of year$ 196,533,071$ 738,743,314$ 935,276,385
The notes to the basic financial statements are an integral part of this statement.(concluded)
19
CITY OF DENTON, TEXASExhibit III
BALANCE SHEET
GOVERNMENTAL FUNDS
AS OF SEPTEMBER 30, 2018
CapitalOtherTotal
GeneralDebt ServiceProjectsGovernmentalGovernmental
FundFundFundFundsFunds
ASSETS:
Cash, cash equivalents and investments,
at fair value$ 25,135,009$ 5,473,139$ 207,857,751$ 21,071,263$ 259,537,162
Receivables, net of allowances
for uncollectibles:
Taxes7,765,590298,402-253,5078,317,499
Accrued interest125,13526,7511,015,932102,9831,270,801
Other2,293,444--325,9902,619,434
Interfund receivables913,501---913,501
Prepaid Items4,200---4,200
Due from other governments1,575,685-552,2641,780,1863,908,135
Total assets $ 37,812,564$ 5,798,292$ 209,425,947$ 23,533,929$ 276,570,732
LIABILITIES:
Accounts payable4,082,201-5,651,0011,386,11711,119,319
Retainage payable--2,023,1674,4632,027,630
Interfund payables---488,735488,735
Other liabilities395,792---395,792
Unearned revenues--75,625,96722,75075,648,717
Total liabilities4,477,993-83,300,1351,902,06589,680,193
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - property taxes578,330268,809--847,139
Unavailable revenue - general services1,923,754---1,923,754
Unavailable revenue - intergovernmental515,102-552,264950,3372,017,703
Total deferred inflows of resources3,017,186268,809552,264950,3374,788,596
FUND BALANCES:
Restricted for:
Debt service-5,529,483--5,529,483
Parks and recreation--3,589,6405,564,0149,153,654
Streets and drainage projects--78,935,3003,767,61682,702,916
Other capital projects--21,984,608-21,984,608
Other grants and purposes---7,158,8437,158,843
Committed to:
Streets--2,872,5441,623,4274,495,971
Parks and recreation--159,845361,007520,852
Other purposes---3,150,4913,150,491
Assigned to:
Streets and drainage projects--10,591,478-10,591,478
Use of reserves1,398,704---1,398,704
Capital projects--7,440,133-7,440,133
Other purposes---5959
Unassigned
28,918,681--(943,930)27,974,751
Total fund balances30,317,3855,529,483125,573,54820,681,527182,101,943
Total liabilities, deferred inflows of
resources and fund balances$ 37,812,564$ 5,798,292$ 209,425,947$ 23,533,929$ 276,570,732
The notes to the basic financial statements are an integral part of this statement.
20
CITY OF DENTON, TEXASExhibit IV
RECONCILIATION OF THE BALANCE SHEET
OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF NET POSITION
AS OF SEPTEMBER 30, 2018
Total fund balances - governmental funds (Exhibit III)$ 182,101,943
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental activities are not financial resources and
therefore are not reported as assets in governmental funds. Includes capital assets
of internal service funds.310,971,424
Certain receivables will be collected next year but are not available soon enough
to pay for the current period's expenditures and therefore are reported as
deferred inflows of resources in the funds.4,788,596
Deferred outflows of resources are not reported in the governmental funds. Includes
deferred outflows of internal service funds:
Deferred loss on refundings$ 1,590,477
22,563,323
Deferred pension balances
1,889,21226,043,012
Deferred other post-employment benefits contributions
An internal charge to business-type activities is not recorded at the fund level.(11,615,186)
Several internal service funds are used by the City's management to charge the
costs of certain activities, such as insurance and fleet management, to individual
funds. The assets, liabilities, deferred outflows, and deferred inflows of the internal
service funds are included with governmental activities. Internal service fund
balances not included in other reconciling items listed above or below:
Current assets$ 29,964,631
Liabilities(11,650,090)18,314,541
Long-term balances, including bonds payable, are not due and payable in the current
period and therefore are not reported as liabilities in the funds. Includes balances of
internal service funds. Long-term liabilities and related balances at year-end consist of:
General obligation bonds payable$ (127,647,935)
Certificates of obligation payable(81,200,000)
Bond (premiums)/discounts(12,515,724)
Accrued interest on the bonds(1,025,025)
Capital leases payable(4,171)
Net Pension Liability(53,542,658)
Total other post-employment benefits liability(27,625,731)
Compensated absences (12,578,005)(316,139,249)
Deferred inflows of resources are not reported in the governmental funds. Includes
deferred outflows of internal service funds:
Deferred pension balances(17,932,010)
Total net position of governmental activities (Exhibit I)$ 196,533,071
The notes to the basic financial statements are an integral part of this exhibit.
21
CITY OF DENTON, TEXASExhibit V
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
CapitalOtherTotal
GeneralDebt ServiceProjectsGovernmentalGovernmental
FundFundFundFundsFunds
REVENUES:
Taxes$83,621,197$21,480,611$ -$ 3,601,206$ 108,703,014
Licenses and permits3,739,691---3,739,691
Franchise fees13,263,247--12,743,75526,007,002
Fines and forfeitures3,523,068--2,016,7255,539,793
Fees for services7,223,541--3,313,27610,536,817
Investment revenue 514,938288,340972,711161,5901,937,579
Intergovernmental1,005,259-24,709,8154,803,06730,518,141
Miscellaneous432,820-445,9874,174,2755,053,082
Total revenues113,323,76121,768,95126,128,51330,813,894192,035,119
EXPENDITURES:
Current:
General government27,725,208-359,2954,715,67232,800,175
Public safety63,268,420-245,0682,841,79466,355,282
Public works3,077,807-664,23810,968,16614,710,211
Parks and recreation12,332,725-211,2622,127,90714,671,894
Capital outlay623,931-52,776,1601,429,85854,829,949
Debt service:
Principal retirement50,05215,379,645--15,429,697
Bond issuance costs--284,181-284,181
Interest and other charges-6,561,442--6,561,442
Total expenditures107,078,14321,941,08754,540,20422,083,397205,642,831
Excess (deficiency) of revenues
over (under) expenditures6,245,618(172,136)(28,411,691)8,730,497(13,607,712)
OTHER FINANCING SOURCES (USES):
Issuance of long-term debt--56,960,000-56,960,000
Premium on debt issuance--3,206,728-3,206,728
Insurance recoveries--18,135-18,135
Sale of capital assets111,674--114,351226,025
Transfers in-292,47513,465,8611,325,35915,083,695
Transfers out(7,810,680)-(9,040,938)(4,898,058)(21,749,676)
Total other financing sources (uses)(7,699,006)292,47564,609,786(3,458,348)53,744,907
Net change in fund balances(1,453,388)120,33936,198,0955,272,14940,137,195
Fund balance at beginning of year31,770,7735,409,14489,375,45315,409,378141,964,748
Fund balances at end of year$30,317,385$ 5,529,483$125,573,548$ 20,681,527$ 182,101,943
The notes to the basic financial statements are an integral part of this statement.
22
CITY OF DENTON, TEXASExhibit VI
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
OF GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Net change in fund balances - total governmental funds (Exhibit V) $ 40,137,195
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlay ($54,829,949) is different from depreciation and
retirement of assets ($17,708,595 = $19,598,153 total governmental minus
$1,889,558 internal service portion) in the current period. 37,121,354
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. Such amounts are
recorded in the funds when considered available.(776,875)
The net effect of various miscellaneous transactions involving capital assets
(i.e., sales, trade-ins and donations) is to increase net position.6,387,365
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the statement of net position.
Repayment of bond principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the statement of net
position. This is the amount by which payments exceeded proceeds.(41,530,303)
Fund-level financials report costs related to bonds as expenditures; however,
these are deferred and amortized on the government-wide financials.(1,964,697)
Certain expenses reported in the statement of activities do not require the use
of current financial resources and therefore are not reported as expenditures
in governmental funds. (1,594,484)
Internal service funds are used by management to charge the costs of certain
activities, such as insurance and technology services, to individual funds.
A portion of the net revenue (expense) of certain internal service funds is
reported with governmental activities. The amount reported with
business-type activities is $2,860,212.2,284,981
Change in net position of governmental activities (Exhibit II)$ 40,064,536
The notes to the basic financial statements are an integral part of this statement.
23
24
CITY OF DENTON, TEXASExhibit VII
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Adjustments -Actual on aFinal Budget -
Budgeted AmountsActualBudgetaryBudgetaryPositive
OriginalFinalAmountsBasisBasis(Negative)
REVENUES:
Taxes$81,737,350$81,737,350$83,621,197$ -$83,621,197$ 1,883,847
Licenses and permits2,731,4772,731,4773,739,691-3,739,6911,008,214
Franchise fees12,982,76712,982,76713,263,247-13,263,247280,480
Fines and forfeitures3,962,0803,962,0803,523,068-3,523,068(439,012)
Fees for services8,267,6228,267,6227,223,541245,1727,468,713(798,909)
Investment revenue530,000530,000514,938-514,938(15,062)
Intergovernmental1,072,4881,072,4881,005,259-1,005,259(67,229)
Miscellaneous244,900244,900432,820-432,820187,920
Total revenues111,528,684111,528,684113,323,761245,172113,568,9332,040,249
EXPENDITURES:
Current:
General government32,983,04532,418,82927,725,2083,531,95331,257,1611,161,668
Public safety60,529,69760,468,12663,268,420(3,189,053)60,079,367388,759
Public works3,163,4363,163,4363,077,807(105,024)2,972,783190,653
Parks and recreation12,413,21712,371,87312,332,725(622,047)11,710,678661,195
Capital outlay557,000553,561623,931-623,931(70,370)
Debt service:
Principal retirement--50,052-50,052(50,052)
Total expenditures109,646,395108,975,825107,078,143(384,171)106,693,9722,281,853
Excess (deficiency) of revenues
over (under) expenditures1,882,2892,552,8596,245,618629,3436,874,9614,322,102
OTHER FINANCING SOURCES
(USES):
141,000141,000111,674-111,674(29,326)
Sale of capital assets
Transfer in8,050,6888,050,688-8,036,5278,036,527(14,161)
Transfers out(10,041,596)(16,425,648)(7,810,680)(8,665,870)(16,476,550)(50,902)
Total other financing
sources (uses)(1,849,908)(8,233,960)(7,699,006)(629,343)(8,328,349)(94,389)
Excess (deficiency) of revenues
and other sources over (under)
expenditures and other uses32,381(5,681,101)(1,453,388)-(1,453,388)4,227,713
31,770,77331,770,773-31,770,773-
Fund balances at beginning of year31,770,773
Fund balance at end of year$31,803,154$26,089,672$30,317,385$ -$30,317,385$ 4,227,713
Adjustments - Budgetary Basis are expenditures allocated to and reimbursed by other funds. These
expenditures are recorded in the other funds' financials.
The notes to the basic financial statements are an integral part of this statement.
25
CITY OF DENTON, TEXASExhibit VIII
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
AS OF SEPTEMBER 30, 2018
Business-type Activities - Enterprise Funds
Utility System
Electric WaterWastewater
FundFundFund
ASSETS:
Current assets:
Cash, cash equivalents and investments,
at fair value$ 75,847,789$ 57,356,554$ 43,360,226
Receivables, net of allowances:
Accounts 11,865,0402,329,3021,912,250
Unbilled utility service9,407,9101,742,2071,706,272
Accrued interest370,716280,305211,927
Other8,200,616--
Interfund receivables3,773,453665,789200,992
Merchandise inventory---
Prepaid items22,483,864--
Other Assets23,268,440--
Total current assets155,217,82862,374,15747,391,667
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments,
at fair value62,225,93528,229,25811,157,452
Escrow deposit-50,000-
Accrued interest304,138137,97454,534
Total restricted assets 62,530,07328,417,23211,211,986
Capital assets, net of accumulated depreciation663,909,790264,834,724224,755,233
Total noncurrent assets726,439,863293,251,956235,967,219
Total assets 881,657,691355,626,113283,358,886
DEFERRED OUTFLOWS OF RESOURCES:
Deferred charges on refunding1,264,0341,931,840181,175
Deferred pension balances4,103,3911,910,3621,461,334
Deferred other post employment benefit balances359,431261,823209,146
Total deferred outflows of resources5,726,8564,104,0251,851,655
LIABILITIES:
Current liabilities:
Accounts payable5,998,229713,0401,012,430
Retainage payable--55,167
Claims payable---
Compensated absences payable1,183,104547,217370,240
Deposits3,795,174296,652103,080
Accrued interest---
Interfund payables---
Unearned revenue4,105,642--
Payable from restricted assets:
Accounts payable787,08352,74440,938
Retainage payable1,817,626-151,231
Accrued interest5,585,394452,384221,418
Certificate and general
obligation bonds25,068,85010,568,1905,680,528
Total current liabilities paid from restricted
assets33,258,95311,073,3186,094,115
Total current liabilities48,341,10212,630,2277,635,032
(continued on the following page)
26
CITY OF DENTON, TEXASExhibit VIII
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
AS OF SEPTEMBER 30, 2018
Governmental
Business-type Activities - Enterprise Funds
Activities -
Total Internal
Solid WasteAirportEnterprise Service
FundFundFundsFunds
ASSETS:
Current assets:
Cash, cash equivalents and investments,
at fair value$ 9,902,871$ 3,621,573$ 190,089,013$ 18,553,351
Receivables, net of allowances:
Accounts 1,629,29948,42617,784,317-
Unbilled utility service1,672,796-14,529,185-
Accrued interest48,39917,701929,04889,310
Other750180,7138,382,079107,938
Interfund receivables--4,640,234-
Merchandise inventory---6,583,598
Prepaid items--22,483,864283,763
Deferred charges--23,268,440-
Total current assets13,254,1153,868,413282,106,18025,617,960
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments,
at fair value27,840,8712,439,978131,893,4944,137,449
Escrow deposit--50,000189,000
Accrued interest136,07611,926644,64820,222
Total restricted assets 27,976,9472,451,904132,588,1424,346,671
Capital assets, net of accumulated depreciation53,986,70916,617,9751,224,104,4318,461,785
Total noncurrent assets81,963,65619,069,8791,356,692,57312,808,456
Total assets 95,217,77122,938,2921,638,798,75338,426,416
DEFERRED OUTFLOWS OF RESOURCES:
Deferred charges on refunding131,508-3,508,55719,679
Deferred pension balances1,830,571101,4609,407,1182,195,534
Deferred other post employment benefit balances214,96212,1131,057,475284,910
Total deferred outflows of resources2,177,041113,57313,973,1502,500,123
LIABILITIES:
Current liabilities:
Accounts payable361,28317,3028,102,2841,801,572
Retainage payable--55,167-
Claims payable---2,422,363
Compensated absences payable406,15725,2172,531,935604,188
Deposits209,99811,6254,416,529-
Accrued interest---3,064
Interfund payables---5,065,000
Unearned revenue--4,105,642-
Payable from restricted assets:
Accounts payable1,074,960-1,955,725-
Retainage payable236,602-2,205,459-
Accrued interest256,824-6,516,020-
Certificate and general
obligation bonds7,739,673-49,057,241295,127
Total current liabilities paid from restricted
assets9,308,059-59,734,445295,127
Total current liabilities10,285,49754,14478,946,00210,191,314
(continued on the following page)
27
CITY OF DENTON, TEXASExhibit VIII
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
AS OF SEPTEMBER 30, 2018
Business-type Activities - Enterprise Funds
Utility System
Electric WaterWastewater
FundFundFund
Noncurrent liabilities:
General obligation bonds payable$ 38,435,702$ 48,013,078$ 9,880,202
Certificates of obligation349,490,68230,010,11427,543,809
Revenue bonds payable, net of premium/discount240,528,922--
Compensated absences payable250,15659,34261,867
Claims payable---
Net pension liability10,930,8835,086,3714,091,228
Total other post-employment benefits liability5,105,0663,818,2233,059,980
Landfill closure/postclosure costs---
Total noncurrent liabilities644,741,41186,987,12844,637,086
Total liabilities693,082,51399,617,35552,272,118
DEFERRED INFLOWS OF RESOURCES:
Deferred pension balances3,880,8161,791,7451,333,032
Total deferred inflows of resources3,880,8161,791,7451,333,032
NET POSITION:
Net investment in capital assets116,940,015195,658,116188,854,293
Restricted for debt service2,683,644--
Restricted for capital acquisition-10,884,2984,189,562
Unrestricted70,797,55951,778,62438,561,536
Total net position$ 190,421,218$ 258,321,038$ 231,605,391
(continued on the following page)
The notes to the basic financial statements are an integral part of this statement.
28
CITY OF DENTON, TEXASExhibit VIII
STATEMENT OF NET POSITION (concluded)
PROPRIETARY FUNDS
AS OF SEPTEMBER 30, 2018
Governmental
Business-type Activities - Enterprise Funds
Activities -
Total Internal
Solid WasteAirportEnterprise Service
FundFundFundsFunds
Noncurrent liabilities:
General obligation bonds payable$ 3,526,621$ -$ 99,855,603$ 251,533
Certificates of obligation38,305,175-445,349,780120,641
Revenue bonds payable, net of premium/discount--240,528,922-
Compensated absences payable112,0032,355485,72385,739
Claims payable---2,361,155
Net pension liability5,071,047342,26025,521,7895,704,146
Total other post-employment benefits liability3,114,898176,98515,275,1524,140,550
Landfill closure/postclosure costs10,911,388-10,911,388-
Total noncurrent liabilities61,041,132521,600837,928,35712,663,764
Total liabilities71,326,629575,744916,874,35922,855,078
DEFERRED INFLOWS OF RESOURCES:
Deferred pension balances1,682,80081,0238,769,4162,095,662
Total deferred inflows of resources1,682,80081,0238,769,4162,095,662
NET POSITION:
Net investment in capital assets22,627,10616,617,975540,697,5057,814,163
Restricted for debt service--2,683,644-
Restricted for capital acquisition-2,451,90417,525,7644,157,671
Unrestricted1,758,2773,325,219166,221,2154,003,965
Total net position$ 24,385,383$ 22,395,098$ 727,128,128$ 15,975,799
Adjustment to reflect inclusion of internal service fund activities related to enterprise funds.11,615,186
Net position of business-type activities (Exhibit I)$ 738,743,314
The notes to the basic financial statements are an integral part of this statement.(concluded)
29
CITY OF DENTON, TEXASExhibit IX
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Business-type Activities - Enterprise Funds
Utility System
ElectricWaterWastewater
FundFundFund
OPERATING REVENUES:
Utility services$ 193,490,477$ 39,820,284$ 30,092,561
Charges for goods and services---
Other fees5,257,8891,189,7121,536,921
Miscellaneous---
Total operating revenues198,748,36641,009,99631,629,482
OPERATING EXPENSES:
Operating expenses before depreciation141,793,52117,722,52617,922,144
Depreciation14,628,5888,112,9257,950,294
Total operating expenses156,422,10925,835,45125,872,438
Operating income (loss)42,326,25715,174,5455,757,044
NON-OPERATING REVENUES (EXPENSES):
Investment revenue2,112,874871,500615,293
Interest expense and fiscal charges(12,795,374)(2,353,869)(961,984)
Impact fee revenue-7,902,0633,965,142
Gain (loss) on disposal of capital assets(100,478)73,3127,823
Gas well revenues---
Other non-operating revenues (expenses)-162,87263,638
Total non-operating revenues (expenses)(10,782,978)6,655,8783,689,912
Income (loss) before contributions and transfers31,543,27921,830,4239,446,956
CONTRIBUTIONS AND TRANSFERS:
Capital contributions-7,334,72813,179,314
Transfers in 774,68267,904386,833
Transfers out(2,380,063)(1,132,562)(1,206,452)
Total contributions and transfers(1,605,381)6,270,07012,359,695
Change in net position29,937,89828,100,49321,806,651
Net position at beginning of year - as previously stated166,844,553232,480,701211,710,707
Prior period adjustment (Note I.G.)(6,361,233)(2,260,156)(1,911,967)
Net position at beginning of year160,483,320230,220,545209,798,740
Total net position at end of year$ 190,421,218$ 258,321,038$ 231,605,391
(continued on the following page)
The notes to the basic financial statements are an integral part of this statement.
30
CITY OF DENTON, TEXASExhibit IX
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION (concluded)
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Governmental
Business-type Activities - Enterprise Funds
Activities -
TotalInternal
Solid WasteAirportEnterpriseService
FundFundFundsFunds
OPERATING REVENUES:
Utility services$33,229,712$ -$ 296,633,034$ -
Charges for goods and services-1,069,5211,069,52169,276,589
Other fees360,751-8,345,273-
Miscellaneous-114,238114,2381,108,208
Total operating revenues33,590,4631,183,759306,162,06670,384,797
OPERATING EXPENSES:
Operating expenses before depreciation22,663,2531,228,687201,330,13169,138,534
Depreciation6,305,288592,62737,589,7221,889,558
Total operating expenses28,968,5411,821,314238,919,85371,028,092
Operating income (loss)4,621,922(637,555)67,242,213(643,295)
NON-OPERATING REVENUES (EXPENSES):
Investment revenue420,94462,9494,083,560200,227
Interest expense and fiscal charges(1,269,087)-(17,380,314)(36,542)
Impact fee revenue--11,867,205-
Gain (loss) on disposal of capital assets159,605-140,26210,236
Gas well revenues-441,913441,913-
Other non-operating revenues (expenses)606,312603833,425-
Total non-operating revenues (expenses)(82,226)505,465(13,949)173,921
Income (loss) before contributions and transfers4,539,696(132,090)67,228,264(469,374)
CONTRIBUTIONS AND TRANSFERS:
Capital contributions-5,46820,519,51052,876
Transfers in 738,6244,951,5346,919,5775,702,000
Transfers out(1,046,215)(49,995)(5,815,287)(140,309)
Total contributions and transfers(307,591)4,907,00721,623,8005,614,567
Change in net position4,232,1054,774,91788,852,0645,145,193
Net position at beginning of year - as previously stated21,993,05917,725,306650,754,32613,603,432
Prior period adjustment (Note I.G.)(1,839,781)(105,125)(12,478,262)(2,772,826)
Net position at beginning of year20,153,27817,620,181638,276,06410,830,606
Total net position at end of year$24,385,383$22,395,098$ 727,128,128$ 15,975,799
88,852,064
Change in fund net position of proprietary funds
2,860,212
Adjustment to reflect inclusion of internal service fund activities related to enterprise funds.
$ 91,712,276
Change in net position of business-type activities (Exhibit II)
(concluded)
The notes to the basic financial statements are an integral part of this statement.
31
CITY OF DENTON, TEXASExhibit X
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Business-type Activities - Enterprise Funds
Utility System
ElectricWaterWastewater
FundFundFund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $182,288,371$41,265,345$31,115,489
Cash paid to employees for services(16,004,727)(9,958,034)(7,354,731)
Cash paid to suppliers(134,857,747)(8,030,078)(9,997,408)
Net cash provided (used) by operating activities31,425,89723,277,23313,763,350
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers out(1,665,639)(1,132,562)(1,206,452)
Transfers in-67,904(319,698)
Principal payments on non-capital debt(3,825,000)--
Interest and fiscal charges on non-capital debt(2,216,062)--
Net cash provided (used) by noncapital financing activities:(7,706,701)(1,064,658)(1,526,150)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from issuance of debt 749,687333,351444,228
Principal payments on capital debt (13,290,000)(8,810,000)(5,110,000)
Interest and fiscal charges(15,664,816)(3,448,451)(1,461,884)
Principal payments under capital lease obligation ---
Proceeds from gas wells---
Proceeds from impact fees-7,902,0633,965,142
Proceeds from capital contributions and transfers in---
Proceeds from sale of capital assets790,97673,31224,562
Acquisition and construction of capital assets (131,806,056)(9,281,110)(10,405,894)
Net cash provided (used) by capital financing activities (159,220,209)(13,230,835)(12,543,846)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale and maturities of investment securities 180,284,57124,573,39521,720,906
Purchase of investment securities (35,597,206)(15,966,399)(11,008,438)
Interest received on investments 2,632,133787,334587,867
Net cash provided (used) by investing activities147,319,4989,394,33011,300,335
Net increase in cash and cash equivalents11,818,48518,376,07010,993,689
Cash and cash equivalents at beginning of year32,502,9829,101,3346,506,611
Cash and cash equivalents at end of year44,321,46727,477,40417,500,300
Investments, at fair value (Note IV.A.)93,752,25758,108,40837,017,378
Cash, cash equivalents and investments, at fair value $138,073,724$85,585,812$54,517,678
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)$42,326,257$15,174,545$5,757,044
Adjustments:
Depreciation expense14,628,5888,112,9257,950,294
Decrease (Increase) in receivables(10,180,671)299,689(528,183)
Decrease (Increase) in interfund receivables (59,400)(44,340)14,190
Decrease in inventories---
Increase in prepaid items(427,628)--
Decrease in other assets3,661,975--
Increase (Decrease) in accounts payable(12,589,610)(481,918)398,933
Decrease in unearned revenue(6,219,924)--
Increase (Decrease) in compensated absences payable 41,66217,2399,977
Decrease in net municipal pension balances(71,763)(33,110)(24,563)
Increase in other post employment benefit balances316,411232,203185,658
Increase in closure/postclosure liability---
Decrease in interfund payables ---
Total adjustments(10,900,360)8,102,6888,006,306
Net cash provided (used) by operating activities$31,425,897$23,277,233$13,763,350
NONCASH CAPITAL, INVESTING AND FINANCING ACTIVITIES:
Decrease in fair value of investments(242,665)(289,332)(175,354)
Increase in equity due to non-cash transfers60,258--
Capital asset contributions -7,334,72813,179,314
(continued on the following page)
The notes to the basic financial statements are an integral part of this statement.
32
CITY OF DENTON, TEXASExhibit X
STATEMENT OF CASH FLOWS (concluded)
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018Governmental
Business-type Activities - Enterprise Funds
Activities
Total
Internal
Enterprise
Solid WasteAirportService
Funds
FundFundFunds
CASH FLOWS FROM OPERATING ACTIVITIES:
$289,389,931
Cash received from customers $33,536,259$1,184,467$70,580,504
(44,110,630)
Cash paid to employees for services(10,308,023)(485,115)(12,447,220)
(164,577,171)
Cash paid to suppliers(10,948,184)(743,754)(55,734,320)
80,702,130
Net cash provided (used) by operating activities12,280,052(44,402)2,398,964
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
(5,100,863)
Transfers out(1,046,215)(49,995)(140,309)
578,364
Transfers in738,62491,534167,000
(3,825,000)
Principal payments on non-capital debt---
(2,216,062)
Interest and fiscal charges on non-capital debt---
(10,563,561)
Net cash provided (used) by noncapital financing activities:(307,591)41,53926,691
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
1,527,266
Proceeds from issuance of debt ---
(34,450,273)
Principal payments on capital debt (7,240,273)-(285,082)
(22,686,710)
Interest and fiscal charges(2,111,559)-(41,446)
-
Principal payments under capital lease obligation --(443,839)
437,296
Proceeds from gas wells-437,296-
11,867,205
Proceeds from impact fees---
4,860,000
Proceeds from capital contributions and transfers in-4,860,0005,535,000
2,201,457
Proceeds from sale of capital assets1,312,607--
(163,317,826)
Acquisition and construction of capital assets (9,153,798)(2,670,968)(2,631,724)
Net cash provided (used) by capital financing activities (17,193,023)2,626,328(199,561,585)2,132,909
CASH FLOWS FROM INVESTING ACTIVITIES:
248,787,063
Proceeds from sale and maturities of investment securities 19,360,5382,847,6537,763,587
(74,103,939)
Purchase of investment securities (7,551,614)(3,980,282)(7,184,632)
423,95348,2624,479,549
Interest received on investments 169,799
Net cash provided (used) by investing activities12,232,877(1,084,367)179,162,673748,754
49,739,657
Net increase in cash and cash equivalents7,012,3151,539,0985,307,318
53,621,359
Cash and cash equivalents at beginning of year5,103,780406,6522,167,005
Cash and cash equivalents at end of year12,116,0951,945,750103,361,0167,474,323
218,621,491
Investments, at fair value (Note IV.A.)25,627,6474,115,80115,216,477
Cash, cash equivalents and investments, at fair value $37,743,742$6,061,551$321,982,507$22,690,800
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
$67,242,213
Operating income (loss)$4,621,922$(637,555)$(643,295)
Adjustments:
37,589,722
Depreciation expense6,305,288592,6271,889,558
(10,512,235)
Decrease (Increase) in receivables(103,778)708195,707
(89,550)
Decrease (Increase) in interfund receivables ---
-
Decrease in inventories--959,586
(427,628)
Increase in prepaid items--(86,581)
3,661,975
Decrease in other assets---
(12,192,283)
Increase (Decrease) in accounts payable491,241(10,929)(74,722)
(6,219,924)
Decrease in unearned revenue---
(21,177)
Increase (Decrease) in compensated absences payable (91,522)1,467(19,930)
(161,941)
Decrease in net municipal pension balances(31,034)(1,471)(38,790)
935,322
Increase in other post employment benefit balances190,29910,751252,431
897,636
Increase in closure/postclosure liability897,636--
-
Decrease in interfund payables --(35,000)
Total adjustments7,658,130593,15313,459,9173,042,259
Net cash provided (used) by operating activities$12,280,052$(44,402)$80,702,130$2,398,964
NONCASH CAPITAL, INVESTING AND FINANCING ACTIVITIES:
(844,704)
Decrease in fair value of investments(113,874)(23,479)(78,636)
60,258
Increase (Decrease) in equity due to non-cash transfers---
20,519,510
Capital asset contributions -5,46852,876
The notes to the basic financial statements are an integral part of this statement.(concluded)
33
CITY OF DENTON, TEXASExhibit XI
STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
AS OF SEPTEMBER 30, 2018
Agency
Fund
ASSETS:
Cash, cash equivalents and investments,
at fair value$ 189,999
Total assets$ 189,999
LIABILITIES:
Accounts payable189,999
Total liabilities$ 189,999
The notes to the basic financial statements are an integral part of this statement.
34
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2018
I.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Denton is a municipal corporation governed by an elected seven-member council consisting of a
mayor elected at large and six councilpersons, four representing specific geographical districts and two
elected at large. The City receives funding from state and federal government sources and must comply with
the requirements of these funding source entities. However, the City is not included in any other governmental
ncements by the Governmental Accounting Standards Board (GASB),
as council members are elected by the public and have decision-making authority, the authority to levy taxes,
the power to designate management, the ability to significantly influence operations, and primary
accountability for fiscal matters.
The financial statements of the City have been prepared to conform to accounting principles generally
accepted (GAAP) in the United States of America as applicable to state and local governments. Generally
accepted accounting principles for local governments include principles prescribed by GASB, the accepted
standard-setting body for establishing governmental accounting and financial reporting principles. The
following is a summary of the more significant policies.
A.Reporting Entity
An elected seven-member council consisting of a mayor and six councilpersons govern the City. As required
by accounting principles generally accepted in the United States of America, these financial statements
present the City (the primary government) and its component units, which are entities for which the City is
considered to be financially accountable. Blended component units, although legally separate entities, are, in
substance, part of the City's operations, and so data from these units are combined with data of the primary
government. A discretely presented component unit, on the other hand, is reported in a separate column in
the government-wide financial statements to emphasize it is legally separate from the City. The City had no
component units, discretely presented or blended, at September 30, 2018.
B.Government-wide and Fund Financial Statements
The basic financial statements include both government-wide (based on the City as a whole) and fund
financial statements. The reporting focus is either the City as a whole (government-wide financial statements)
or major individual funds (within the fund financial statements). The government-wide financial statements
(i.e., the statement of net position and the statement of activities) report information on all non-fiduciary
activities of the primary government. For the most part, the effect of inter-fund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The government-wide statement of activities demonstrates the degree to which the direct expenses of a
functional category (public safety, public works, etc.) or segment are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function or segment. Program revenues include
(1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges
provided by a given function or segment; (2) grants and contributions that are restricted to meeting operational
requirements of a particular function or segment; and (3) grants and contributions that are restricted to meeting
the capital requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
The net cost (by function or business-type activity) is normally covered by general revenue (property taxes,
sales taxes, franchise fees, interest income, etc.).
Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
governmental funds and major enterprise funds are reported as separate columns in the fund financial
statements. GASB Statement No. 34 sets forth minimum criteria (percentage of assets, liabilities, revenues
or expenditures/expenses of either fund category and for the governmental and enterprise funds combined)
35
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
for the determination of major funds. Non-major funds are combined in a column in the fund financial
statements.
Internal service funds, which traditionally provide services primarily to other funds of the government, are
presented in summary form as part of the proprietary fund financial statements. The financial statements of
internal service funds are allocated (based on the percentage of goods or services provided) between the
governmental and business-type activities when presented at the government-wide level.
fund financial statements. By definition these assets are being
held for the benefit of a third party (other local governments, individuals, etc.) and cannot be used to address
activities or obligations of the government, and as such, these funds are not incorporated into the government-
wide statements.
The government-wide focus is more on the sustainability of the City as an entity and the change in aggregate
financial position resulting from the activities of the fiscal period. The focus of the fund financial statements
is on the major individual funds of the governmental and business-type categories, as well as the fiduciary
funds (by category). Each presentation provides valuable information that can be analyzed and compared to
enhance the usefulness of the information.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as are the proprietary fund statements. Revenues are recorded when earned,
and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund-level financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized, and susceptible to accrual, as
soon as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the government considers revenues to be available if they are collected within 60 days of the end of
the current fiscal period. Any amounts collected beyond the 60 days are recorded as deferred revenues.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences and claims and judgments, are
recorded only when payment is due.
The City reports the following major governmental funds:
ting fund. All general tax revenues and other receipts that
are not allocated by law or contractual agreement to some other fund are accounted for in this fund.
From the fund are paid general operating costs, fixed charges and capital improvement costs that are not
paid through other funds.
The debt service fund accounts for the accumulation of financial resources for the payment of principal,
interest and related costs on general long-term debt, paid primarily by taxes levied by the City. On a
budgetary-basis, the debt service fund also accounts for pass-through debt service payments from the
self-supporting proprietary funds.
The capital projects fund accounts for financial resources used for the acquisition or construction of
capital other than those recorded in the enterprise funds and internal service funds.
Other governmental funds are a summarization of all of the non-major governmental funds.
36
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
The City reports the following major proprietary funds:
The City utility system is made up of three separate funds as follows:
The electric fund accounts for electrical utility services to the residents and commercial
establishments of the City. Activities necessary to provide such services are accounted for in the fund,
including, but not limited to, administration, operations, maintenance, finance and related debt
service.
The water fund accounts for water utility services to the residents and commercial establishments of
the City. Activities necessary to provide such services are accounted for in the fund, including, but
not limited to, administration, operations, maintenance, finance and related debt service.
The wastewater fund accounts for sewer and storm water services to the residents and commercial
establishments of the City. Activities necessary to provide such services are accounted for in the fund,
including, but not limited to, administration, operations, maintenance, finance and related debt
service.
The City provides additional services through the following funds:
The solid waste fund accounts for the provision of solid waste services to the residents of the City.
Activities necessary to provide such services are accounted for in the fund, including, but not limited
to, administration, operations, maintenance, finance and related debt service.
The airport fund accounts for the airport services to the public and is funded through operational and
gas well revenues. Activities necessary to provide such services are accounted for in the fund,
including, but not limited to, administration, operations, maintenance, and finance.
The City additionally reports the following funds:
Internal service funds are used to account for the financing of materials and services provided by one
department of the City to other departments of the City on a cost-reimbursement basis.
liabilities. The City holds the assets in an agency capacity for individuals, private organizations or other
governments.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
water, wastewater, solid waste, and airport funds are charges to customers for services. Operating expenses
for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as non-operating revenues and expenses. The City recognizes, as an asset or a liability, the difference between
adjustment (ECA) revenue collected and related costs.
resources first, then unrestricted resources as they are needed.
D. Budgetary Information
The City Council follows these procedures, as prescribed by City Charter, in establishing the budgets reflected
in the financial statements:
1. Within the time period required by law, the City Manager submits to the City Council a proposed
budget for the fiscal year beginning on the following October 1. The operating budget includes
proposed expenditures and the means of financing them.
2. Public hearings are conducted prior to the adoption of the budget in order to obtain taxpayer comments.
37
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
3. The annual budget adopted by the City Council covers the general fund, non-major special revenue
funds (Recreation Fund, Police Confiscation Fund, Tourist and Convention Fund, Gas Well Revenues
und, the enterprise
funds, and internal service funds. The budget is legally enacted by the City Council through passage
of an ordinance prior to the beginning of the fiscal year. The basic financial statements reflect the legal
level of control, (i.e. the level at which expenditures cannot legally exceed the appropriated amount)
which is established at the total fund level as approved by City Council.
4. The City Charter provides for the City Manager to transfer any part of the unencumbered appropriation
balance or the entire balance thereof between programs or general classifications of expenditures
within an office, department, agency or organizational unit. (The City Council defines an
organizational unit as set forth in Article VIII, Section 8.07 of the City Charter, to be a fund that has
been appropriated by the City Council.) City Council approval is not required up to the fund level. The
Charter also provides that at any time during the year, at the request of the City Manager, City Council
may by resolution transfer any part of the unencumbered appropriation balance or the entire balance
thereof from one office, department, agency, or organizational unit to another, as well as make any
increases in fund appropriations.
Budgets are adopted on a basis for the governmental funds and the budgeted special revenue funds that is
generally consistent with generally accepted accounting principles. Budgets for enterprise funds are prepared
on the full accrual basis, except certain noncash transactions such as depreciation expense and amortization
on debt issuance costs where it is not budgeted, and debt service payments where it is budgeted. Also, during
the budgetary process, amounts are included in all fund budgets to recognize administrative transfers between
funds for goods or services. These amounts are not included in the reporting of actual activity for the funds.
For funds reporting required budget-to-actual comparisons, these administrative transfers are included as
adjustments budgetary basis.
Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances.
Encumbrances are commitments related to unperformed contracts for goods or services (i.e., purchase orders
and contracts). While all appropriations and encumbrances lapse at year end, valid outstanding encumbrances
are re-
expenditures.
E.Assets, Liabilities and Net Position or Equity
1. Cash, cash equivalents and investments
-term
investments with original maturities of three months or less from the date of acquisition. Investments are
carried at fair value, except for the position in local government investment pools. Fair value is
determined as the price at which two willing parties would complete an exchange.
nts.
For financial reporting purposes, the investment balances in the pooled fund are allocated back to the
individual funds based on their respective share of the pooled total. Interest earned on investments is also
allocated back and recorded directly to the individual funds on a monthly basis.
2. Receivables
balances between governmental activities and business-type activities are reported in the government-
Trade, property tax receivables, and municipal court receivables are shown net of an allowance for
uncollectible accounts. The City accrues amounts for utility services provided in September, but not billed
at September 30, 2018.
38
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
3. Inventories
Inventories of supplies are maintained at the City warehouse for use by all City funds and are accounted
for by the consumption method. Cost is determined using a moving average method. No inventories exist
in the governmental fund types.
4. Prepaid items
Certain costs applicable to future accounting periods are recorded as prepaid items. In prior fiscal years
the City prepaid certain contractual obligations to the Texas Municipal Power Agency (TMPA) relating
to the cost of TMPA providing energy to the City. The benefit from the prepayment is being amortized
over the benefit period of 15 years, of which 6.5 years is remaining in the electric fund. See note V.E.
for further information regarding TMPA.
5. Other Assets
Certain costs applicable to future accounting periods are recorded as other assets. In the prior fiscal year
the City impaired its TMPA prepaid purchase power due to a change in seasonality generation. The
impaired amount was recorded as an Other Asset to be amortized over 7.5 years in the electric fund, of
which 6.5 years is remaining in the electric fund. See note V.E. for further
information regarding TMPA.
6. Restricted assets
vernmental and proprietary fund general obligation bonds and
certificates of obligation, as well as certain resources set aside for their repayment, are classified as
restricted assets on the balance sheet because their use is limited by applicable bond covenants. Assets
collected from impact fees are limited by state statute in use and also shown as restricted on the balance
sheet of the Water and Wastewater funds.
7. Capital assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks and similar items) are reported in applicable governmental or business-type activities columns
in the government-wide financial statements and in the proprietary fund financial statements. The City
defines capital assets as assets with an initial, individual cost of more than $5,000 and an estimated useful
life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at acquisition value, which is the price that
would be paid to acquire an asset with equivalent service potential at the acquisition date.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Net interest
incurred during the construction phase of capital assets of business-type activities and enterprise funds is
included as part of the capitalized value of the assets constructed. For 2018, net interest capitalization of
$10,055,948 was recorded for electric fund projects, $382,480 for water fund projects, $428,840 for
wastewater fund projects, and $210,859 for solid waste fund projects.
39
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Capital assets are depreciated using the straight-line method over the following useful lives:
AssetsYears
Buildings40
Infrastructure2040
General improvements10
Machinery and equipment1020
Furniture and office equipment10
Computer equipment/software310
Plant and equipment5
Underground pipe40
Water storage rights50100
Water recreation rights50
Communication equipment5
Vehicles310
Renewals and betterments of property and equipment are capitalized, whereas normal repair and
maintenance are charged to expense as incurred.
8. Compensated absences
The City allows full-time employees to accumulate unused vacation up to 320 hours (480 for Civil
Service Fire employees.) Upon termination, any accumulated vacation time will be paid to an employee.
Generally, sick leave is not paid upon termination except for civil service fire fighters and police officers.
Firefighters and police officers accumulate for payout unused sick leave up to a maximum of 1080 hours
and 720 hours, respectively. All other employees are paid only upon illness while employed by the City.
Accumulated vacation and sick leave is accrued when incurred in the government-wide, proprietary and
fiduciary fund financial statements. A liability for these amounts is reported in governmental funds only
if they have matured, for example, as a result of employee resignations and retirements but have not been
paid this amount at the end of the fiscal year. The General Fund and Other Governmental Funds are used
proprietary fund payouts for their employees are recorded as reductions to the liabilities in those funds.
9. Arbitrage
Arbitrage involves the investment of the proceeds from the sale of tax-exempt bonds in taxable
instruments and securities authorized by the Public Funds Investment Act (Texas Government Code,
Chapter 2256) that yield a higher rate, resulting in interest revenue in excess of interest costs. Federal tax
code requires that these excess earnings be rebated to the federal government. The Capital Projects Fund
has been used in prior years to liquid There were no arbitrage
payments in the current fiscal year.
10. Pensions
For purposes of measuring the net pension liability, pension-related deferred outflows and inflows of
resources, and pension expense, information about the Fiduciary Net Position of the Texas Municipal
Retirement System (TMRS) and additions
Fiduciary Net Position have been determined on the same
basis as they are reported by TMRS and the FRRF. For this purpose, plan contributions are recognized
in the period that compensation is reported for the employee, which is when contributions are legally due.
Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
40
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
11. Other post-employment benefits
The City participates in a single-employer, unfunded, defined benefit group-term life insurance plan
operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death Benefit
Fund (SDBF). The City elected, by ordinance, to provide group-term life insurance coverage to both
current and retired employees. The funding policy for the SDBF program is to assure that adequate
resources are available to meet all death benefit payments for the upcoming year rather than prefunding.
For purposes of
measuring the total SDBF OPEB liability, related deferred outflows and inflows of resources, and
expense, City specific information about its total SDBF liability and additions to/deductions from the
TMRS. The
SDBF expense and deferred (inflows)/outflows of resources related to SDBF, primarily result from
changes in the components of the total SDBF liability. Most changes in the total SDBF liability will be
included in SDBF expense in the period of the change. For example, changes in the total SDBF liability
resulting from current-period service cost, interest on the Total OPEB Liability, and changes of benefit
terms are required to be included in SDBF expense immediately. Changes in the total SDBF liability that
have not been included in SDBF expense are required to be reported as deferred outflows of resources or
deferred inflows of resources related to SDBF.
The City provides post-employment medical care (Medical OPEB) for retired employees through a
single-employer defined benefit medical plan. The plan provides medical benefits for eligible retirees,
ased on the same rates it charges to active employees, the City
is in effect providing a subsidy to retirees. This implied subsidy exists because, on average, retiree
healthcare costs are higher than active employee healthcare costs. By the City not contributing anything
toward the plan in advance, the City employs a pay-as-you-go method through paying the higher rate for
active employees each year. The City also contributes up to $200 per month, based on years of service,
toward the cost of retiree coverage. As an irrevocable trust has not been established, the plan is not
accounted for as a trust fund. For this purpose, plan contributions are recognized in the period that the
direct and indirect subsidies are paid by the City. Total OPEB liability, OPEB-related deferred outflows
and inflows of resources, and OPEB expense is based on the actuarial measurement dates.
12. Long-term obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized
over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.
Gain/loss on refunding are reported as deferred outflow/inflow and recognized as a component of interest
expense over the remaining life of the old debt or life of the new debt, whichever is shorter.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
13. Fund equity
The City follows
ccordance with the statement, the classifications of governmental fund balances are
presented as follows:
s includes amounts not in a spendable form or are legally or
contractually required to be maintained intact. Examples include inventory or endowments.
41
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
includes amounts that can be spent only for the specific purposes
stipulated by external resource providers, creditors, grantors, and contributors or through enabling
legislation.
includes amounts that can be used only for the specific purposes
determined by the City Council through an ordinance and may only be changed or lifted through
another ordinance. The ordinance must either adopt or rescind the commitment, as applicable, prior
to the last day of the fiscal year for which the commitment is made. The amount subject to the
constraint may be determined in the subsequent period.
- comprises amounts intended to be used for specific purposes. Intent can
be expressed by the City Council, or per the policy adopted by an ordinance by the City Council,
assignment. In governmental funds other than the general fund, assigned fund balance represents
the amount that is not restricted or committed and, at a minimum, is intended for the purpose of
that fund.
is the residual classification of the general fund and includes all
amounts not constrained in the other classifications. Unassigned amounts are technically available
for any purpose. The General Fund is the only fund to report a positive unassigned fund balance
amount. However, other governmental funds may report a negative unassigned fund balance as
necessary if expenditures incurred for specific purposes exceed the amounts restricted, committed,
or assigned for those purposes.
When multiple categories of fund balance are available for expenditure and approved for use by the City
Council, the City will start with the most restricted category and spend those funds first before moving
down to the next category with available funds. Normally this would result in the use of restricted, then
committed, then assigned, and lastly, unassigned fund balance.
14. Minimum fund balance policy
It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to
20% of budgeted expenditures. An additional 5% resiliency reserve (25% combined total) may be
maintained to safeguard against unusual financial circumstances or economic downturns.
15. Net position
Net position represents the difference between assets, deferred inflows, deferred outflows, and liabilities.
Net investment in capital assets consists of capital assets net of accumulated depreciation and the
outstanding balances of any borrowing spent for the acquisition, construction or improvements of those
assets. Net position is reported as restricted when there are limitations imposed on their use either through
the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors
or laws or regulations of other governments.
16. Deferred outflows and inflows of resources
In addition to assets, the statement of net position and/or balance sheet will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net position applying to a future period and will not be
recognized as an outflow of resources, either expenses or expenditures, until that time. The City reports
the following items qualifying for this category:
Deferred charges on refunding reported in the statements of net position - A deferred charge on
refunding results from the difference in the carrying value of refunded debt and its reacquisition
price and is amortized over the shorter of the life of the refunded or refunding debt.
Deferred pension deficit earnings reported in the statement of net position A deferred charge is
recorded for the difference between actual investment earnings and expected investment earnings
during the period and is amortized over future periods.
42
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Deferred pension actuarial losses reported in the statement of net position A deferred charge is
recorded for the difference between actual experience and expected experience during the period
between two actuarial valuations and is amortized over future periods.
Deferred pension and other postemployment benefit plan contributions reported in the statement
of net position A deferred charge is recorded for pension contribution amounts paid by the City
measurement date (December 2017) and will be fully recognized in the
next period on the next measurement date (December 2018).
Deferred pension and other postemployment benefit plan actuarial assumption changes A
deferred charge is recorded for the difference due to assumption changes and amortized over
future periods.
In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position applying to a future period and will not be
recognized as an inflow of resources, or revenues, until that time. The City reports the following items
qualifying for reporting in this category:
Deferred pension excess earnings reported in the statement of net position A deferred charge is
recorded for the difference between actual investment earnings and expected investment earnings
during the period and is amortized over future periods.
Deferred pension actuarial gains reported in the statement of net position A deferred charge is
recorded for the difference between actual experience and expected experience during the period
between two actuarial valuations and is amortized over future periods.
Deferred pension actuarial assumption changes A deferred charge is recorded for the difference
due to assumption changes and amortized over future periods.
Deferred unavailable revenues reported on the balance sheet of the governmental funds A
deferred amount is recorded for the billed revenues not yet collected or available. These amounts
are deferred and recognized as inflow of resources in the period the amounts become available.
F.Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses/expenditures during the reporting
period. Actual results could differ from those estimates.
43
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
G.Prior Period Adjustments
Two adjustments have been recorded to the beginning net position. The details of the adjustment are as
follows:
Net Position atChange in ReportingChange inNet Position at
September 30, 2017,for Other Post-Depreciation of CertainSeptember 30, 2017,
as Previously ReportedEmployment BenefitsElectric Assetsas Restated
Government-Wide Information
Governmental Activities$ 173,429,494$ (16,960,959)$ -$ 156,468,535
Business-Type Activities659,509,300(9,351,546)(3,126,716)647,031,038
Fund Level Information
Electric166,844,553(3,234,517)(3,126,716)160,483,320
Water232,480,701(2,260,156)-230,220,545
Wastewater211,710,707(1,911,967)-209,798,740
Solid Waste 21,993,059(1,839,781)-20,153,278
Airport17,725,306(105,125)-17,620,181
Materials Management1,235,031(439,184)-795,847
Fleet Services3,783,323(417,494)-3,365,829
Risk Retention863,295(225,385)-637,910
Technology Services3,980,703(1,053,981)-2,926,722
Engineering Services(1,102,261)(636,782)-(1,739,043)
One adjustment was a decrease to the net position balance of $3,126,716 in the business-type activities in the
electric fund due to an adjustment of accumulated depreciation on certain transmission assets. The prior
period adjustment is recognizing depreciation expense on assets put into service before fiscal year 2018 and
reducing the net value of these assets. The second adjustment was a decrease in fund-level net position for
certain proprietary funds, governmental activities net position in the government-wide statement of activities,
and business-type activities net position in the government-wide statement of activities due to the
This resulted in a government-wide net decrease in net position of
$26,312,505 due to recording (a) the full OPEB liability, a decrease in net position of $26,930,702, and (b)
the related deferred outflows for OPEB contributions, an increase in net position of $618,197. See footnotes
V.B. and V.I. for
additional GASB information.
II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Explanation of certain differences between the governmental fund statement of revenues, expenditures
and changes in fund balances and the government-wide statement of activities
An
funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond
principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the
statement of net position. This is the amount by which payme
($41,530,303) difference are as shown on the following page:
44
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Debt issued or incurred:
Issuance of general obligation debt $(19,235,000)
Issuance of certificates of obligation (37,725,000)
Principal repayments:
General obligation debt principal retirement9,604,645
Certificates of obligation principal retirement5,775,000
Lease obligations principal retirement50,052
Net adjustment to decrease net changes in fund
changes in net position of governmental activities $(41,530,303)
capital assets (i.e., sales, trade-ins and donations) is to dethis $6,387,365
difference are as follows:
Net effect of transactions involving asset retirements/disposals $(1,230,881)
Capital assets transferred to business-type activities as capital
contributions (502,742)
Donations of capital assets increase net position in the statement of
activities but do not appear in the governmental funds because they
are not financial resources 8,120,988
Net adjustment to increase net changes in fund balances - total
governmental funds $ 6,387,365
require the use of current financial resources and therefore are not reported as expenditures in governmental
the ($1,594,484) difference are as follows:
Compensated absences $ (506,816)
Net pension liability 13,749,867
Municipal pension deferred actuarial losses (16,351,710)
Municipal pension deferred contributions 475,504
Municipal pension deferred assumption changes (196,113)
Municipal pension deferred economic differences 2,718,866
Total OPEB liability (2,695,301)
OPEB deferred actuarial losses -
OPEB deferred contributions 146,404
OPEB deferred assumption changes 1,124,553
OPEB deferred economic differences -
Accrued interest (59,738)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities $(1,594,484)
45
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
III. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Deficit FundEquity
The Criminal Justice fund had deficit fund balances of ($53,372)at September 30, 2018. The deficit wasa
result of reimbursement timing and clears in fiscal year 2018-2019. The Risk Retention and Engineering
Services internal service funds had deficit net positions of ($294,023) and ($1,761,056), respectively, due to
and GASB Statement No.75
which resulted in an increase in the net pension
liability inthe prior year and the total OPEB liability in the current year.
IV. DETAILED NOTES ON ALL FUNDS
A.Deposits and Investments
In order to facilitate effective cash management practices, the operating cash of all funds is pooled into a
common account for the purpose of increasing income through combined investment activities. At year-end,
the City had $194,020,041 in cash and cash equivalents of which $189,999 is included in the agency funds
and $12,318 in petty cash.
The Public Funds Investment Act (Texas Government Code) authorizes the City to invest in obligations of
the U.S. Treasury, U.S. agencies, fully collateralized repurchase agreements, public fund investment pools,
SEC-registered no-load money market mutual funds, municipal securities of any state rated A or better,
certificates of deposit (fully collateralized, insured, and standby letters of credit backed), and commercial
paper rated not less than A-1 or P-1 with a stated ma
policy may further restrict those investment options. The investments reported on September 30, 2018 were
similar to those held during the fiscal year.
The City reports all investments in the financial statements at fair value. At September 30, 2018
investments carried a fair value of $605,082,174, of which $194,701,747 is in a local governmental
investment pool which the City classifies in the financial statements as cash equivalents.
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application
establishes an authoritative definition of fair value, sets a framework for measuring fair value, and requires
additional disclosures about fair value measurements. The fair value hierarchy categorizes the inputs to
valuation techniques used to measure fair value into three levels.
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets a
government can access at the measurement date.
Level 2 inputs are inputs, other than quoted prices included within Level 1, observable for an asset
or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
If a price for an identical asset or liability is not observable, a government should measure fair value using
another valuation technique maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than one
level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input
significant to the entire measurement.
46
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
At September 30, 2018, the City had the following recurring fair value investments:
Fair Value Measurement Method
Quoted Prices in Weighted
Active Markets Significant Other Percent of Average
for Identical Observable Inputs Total Maturity
9/30/2018Assets (Level 1)(Level 2)Investments(Days)
Investments Measured at Amortized Cost:
TexSTAR - Investment Pool194,701,74732.18%1
Certificates of Deposit82,000,00013.55%252
Investments by Fair Value Level:
Debt Securities:
U.S. Treasury Securities 26,893,742 26,893,742-4.44%104
U.S. Agency Securities 254,844,355 92,993,315161,851,04042.12%373
Commercial Paper 35,711,560 -35,711,5605.90%116
Municipal Bonds - Coupon 10,930,770 -10,930,7701.81%153
Total Investments605,082,174119,887,057208,493,370
Portfolio Weighted Average Maturity
206
Of the investments recorded at fair value, $159,524,713 used the documented trade history in exact security
pricing model, $34,257,124 used the option-adjusted discounted cash flow pricing model, and $134,598,590
used the present value of expected future cash flow pricing model.
In accordance with its investment policy, the City manages its exposure to declines in fair
values due to interest rate fluctuations by limiting the weighted average maturity of its investment portfolio
to less than eighteen months.
and its agencies, investment quality obligations of the State of Texas (including agencies, municipalities,
counties, and other political subdivisions) with a rating not less than AA, certificates of deposits and savings
deposits (fully insured, collateralized, or standby letter of credit backed), fully collateralized repurchase
agreements, local public fund investment pools with a dollar weighted average maturity of 60 days or less,
U.S. government money market mutual funds with a dollar weighted average maturity of 60 days or less and
a stable net asset value of $1 for each share, and commercial paper that has a maturity of 270 days or less and
aminimum rating of A-1, P-1, or an equivalent rating by at least two nationally recognized rating agencies.
TexSTAR were
This is the risk that in the event of a bank or
may not be returned. The policy states that all bank deposits of City funds shall be secured by pledged
collateral with a market value equal to no less than 102 percent of the principal plus accrued interest less an
amount insured by FDIC. As of September 30, 2018, the bank balance for deposits was $1,634,710 and was
dian, BNY Mellon.
potential loss by
diversifying investment types according to the following limitations based on value: U.S. Treasury
bills/notes/bonds (100%), U.S. Agencies and Instrumentalities (100%), State of Texas Obligations
including agencies and local governments (15%), local government investment pools (50% in government
securities and 15% in prime securities), repurchase agreements (20%), certificates of deposit (35%), savings
deposits (15%), U.S. Money Market Mutual Funds (50%), callable U.S. Agencies and Instrumentalities
(20%), and commercial paper (15%).
. The Texas Short Term Asset Reserve Program (TexSTAR) is a local government investment pool
organized under the authority of the Interlocal Cooperation Act, Chapter 791, Texas Government Code, and
the Public Funds Investment Act, Chapter 2256, Texas Government Code (PFIA). TEXSTAR was created in
47
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
April 2002 by contract among its participating governmental units and is governed by a board of directors.
J.P. Morgan Investment Management Inc. (JPMIM) and Hilltop Securities Inc. (HTS) serve as co-
administrators. JPMIM provides investment management services, and FirstSouthwest, a division of HTS,
provides participant service and marketing. Custodial, fund accounting, and depository services are provided
by JPMorgan Chase Bank, N.A. and/or its subsidiary J.P. Morgan Investor Services Co. Transfer agency
services are provided by Boston Financial Data Services, Inc.
TexSTAR states all investments at amortized cost value. The investment pool has a redemption notice of one
day or same day, which may be redeemed daily. As the redemption period is only one day or less, the City
classifies these balances in the financials as cash equivalent. TexSTAR may only impose restrictions on
redemptions in the event of a general suspension of trading on major securities markets, a general banking
commitments related to the investment pool.
Cash, cash equivalents and investments, at fair value are reported together on the financial statements.
Investments, at fair value, by fund were as follows:
Other
Capital Governmental
General FundDebt ServiceProjectsFunds
Unrestricted investments $ 17,504,834 $ 3,742,084 $142,116,126 $ 14,405,778
Change in fair value (120,753) (25,815) (980,414) (99,381)
Restricted investments - - - -
Change in fair value - - - -
Total $ 17,384,081 $ 3,716,269 $141,135,712 $ 14,306,397
ElectricWaterWastewaterSolid Waste
Unrestricted investments $ 51,858,513 $39,211,207 $ 29,645,970 $ 6,770,363
Change in fair value (357,756) (270,506) (204,518) (46,707)
Restricted investments 42,545,005 19,300,858 7,628,553 19,035,310
Change in fair value (293,505) (133,151) (52,627) (131,319)
Total $ 93,752,257 $58,108,408 $ 37,017,378 $ 25,627,647
Internal
Service Total City
AirportFundsInvestments
Unrestricted investments $ 2,476,135 $12,493,331 $320,224,341
Change in fair value (17,082) (86,188) (2,209,120)
Restricted investments 1,668,257 2,828,849 93,006,832
Change in fair value (11,509) (19,515) (641,626)
Total $ 4,115,801 $15,216,477 $410,380,427
B.Property Tax Revenue
Property taxes attach as an enforceable lien on property as of January 1st. Taxes are levied on October 1st
and are due and payable at that time; therefore, the legally enforceable claim arises on October 1st. A
48
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
receivable is recorded at that time. All unpaid taxes levied October 1st become delinquent February 1st of the
following year.
Property taxes at the fund level are recorded as receivables and revenue in the period they become available.
Current-year revenues recognized are those Ad valorem taxes collected within the current period or soon
enough thereafter to pay current liabilities, which is sixty days after year-end. All other outstanding
receivables are adjusted from revenue and recognized as deferred inflows of resources for future collections.
Current tax collections for the year ended September 30, 2018 were 99.49% of the tax levy. An allowance is
provided for delinquent taxes not expected to be collected in the future.
At September 30, 2018, the City had a tax rate of $0.637856 per $100 valuation. Based upon the maximum
Ad valorem tax of $2.50 per $100 valuation imposed by Texas Constitutional law, the City had a tax rate
margin of $1.862144. Additional revenues up to $193,976,956 could be raised per year based on the current
year's certified assessed value of $10,416,861,217 before the limit is reached.
On December 7, 2010, the City Council approved a Tax Increment Financing Reinvestment Zone (TIRZ #1)
for the purpose of dedicating the increase in tax revenues generated within the TIRZ district for development
in the downtown area of the City for a total of 30 years. The tax increment to be paid is 100% of the increment
in years 1-5, 95% in years 6-10, 90% in years 11-20, and 85% in years 21-30. In fiscal year 2018, the total
assessed value of $161,351,215 after supplemental adjustments for TIRZ #1 was an increase of $81,994,361
over the base fiscal year 2011 assessed value and resulted in $496,856 of property tax revenue recorded in
the TIRZ Fund as part of All Other Special Revenue Funds.
On December 18, 2012, the City Council approved a Tax Increment Financing Reinvestment Zone (TIRZ
#2) for the purpose of dedicating 40% of the increase in tax revenues generated within the TIRZ district for
development in the Westpark Industrial District for a total of 25 years. In fiscal year 2018, the assessed value
of $63,108,366 after supplemental adjustments was an increase of $62,988,908 over the base fiscal year 2014
assessed value and resulted in $160,711 of property tax revenue recorded in the TIRZ Fund as part of All
Other Special Revenue Funds. Denton County participates in the zone and based on their tax rate and a
participation contribution of 40% $59,918 of property tax revenue was generated for
Fiscal Year 2018.
The City created the Rayzor Ranch Public Improvement District No. 1 in 2014 for the undertaking and
financing of public improvements authorized by Chapter 372 of the Texas Local Government Code. The
contiguous acres. The estimated costs of the proposed public improvements total $40 million. The authorized
improvement costs will be apportioned 100% to the District. The method of assessment will impose equal
shares of the costs of the proposed public improvements on parcels that are similarly benefited. No City
property will be assessed, and the City will not be obligated to pay any assessments.
49
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
C. Receivables
Receivables at September 30, 2018 -major funds,
internal service funds and fiduciary funds), including the applicable allowancesfor uncollectible accounts,
are as follows:
Other
Capital Governmental
General FundDebt ServiceProjectsFundsElectric
Receivables:
Taxes$ 8,166,349$ 445,960$ -$ 253,507$ -
Accounts----12,680,048
Accrued interest125,13526,7511,015,932102,983674,854
Unbilled utility service----9,407,910
Other - EMS Services4,730,573----
Other2,806,053--328,0618,200,616
Gross receivables15,828,110472,7111,015,932684,55130,963,428
Less: Allowance for
uncollectibles(5,643,941)(147,558)-(2,071)(815,008)
Net total receivables$10,184,169$ 325,153$1,015,932$ 682,480$30,148,420
Internal
Service
WaterWastewaterSolid WasteAirportFundsTotal
Receivables:
Taxes$ -$ -$ -$ - $ - $ 8,865,816
Accounts2,489,3012,043,6021,741,21551,752 19,027,47821,560
Accrued interest418,279266,461184,47529,627109,5322,954,029
Unbilled utility service1,742,2071,706,2721,672,796- 14,529,185-
Other - EMS Services---- 4,730,573-
Other--750 180,713 11,603,95687,763
Gross receivables4,649,7874,016,3353,599,236262,092218,85561,711,037
Less: Allowance for
uncollectibles(159,999)(131,352)(111,916)(3,326)(1,385) (7,016,556)
Net total receivables$ 4 ,489,788$ 3,884,983$ 3,487,320$ 2 58,766$ 2 17,470$ 54,694,481
50
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
D.Capital Assets
Capital asset balances and transactions for the year ended September 30, 2018 are summarized below and on
the following page.
Balance at Transfers and Balance at
Governmental activities:October 1, 2017IncreasesDecreasesSeptember 30, 2018
Capital assets not being depreciated:
Land$ 21,678,996$ 564,775$ -$ 22,243,771
Construction in progress56,681,66257,724,117(27,547,471)86,858,308
Total capital assets not being depreciated78,360,65858,288,892(27,547,471)109,102,079
Capital assets being depreciated:
Buildings66,851,0415,491,543-72,342,584
Infrastructure269,787,10216,941,878(5,468)286,723,512
Machinery, equipment, and other improvements104,638,64111,242,376(1,663,011)114,218,006
Total capital assets being depreciated441,276,78433,675,797(1,668,479)473,284,102
Less accumulated depreciation for:
Buildings26,679,1001,677,530-28,356,630
Infrastructure162,353,2579,468,261-171,821,518
Machinery, equipment, and other improvements63,947,6588,452,362(1,163,411)71,236,609
Total accumulated depreciation252,980,01519,598,153(1,163,411)271,414,757
Total capital assets, being depreciated, net188,296,76914,077,644(505,068)201,869,345
Governmental activities capital assets, net$ 266,657,427$ 72,366,536$ (28,052,539)$ 310,971,424
(continued)
51
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Balance at Transfers and Balance at
Business-type activities:October 1, 2017IncreasesDecreasesSeptember 30, 2018
Capital assets not being depreciated:
Land$ 29,412,602$ 19,768,077$ 106,505$ 49,287,184
Construction in progress355,433,364164,594,806(131,004,060)389,024,110
Total capital assets not being depreciated384,845,966184,362,883(130,897,555)438,311,294
Capital assets being depreciated:
Buildings23,963,9472,523,942-26,487,889
Landfill improvements27,042,647157,655(1,248,354)25,951,948
Water rights69,883,098--69,883,098
Infrastructure519,056,12629,488,582343,360548,888,068
Plant, machinery, equipment, and other
improvements447,118,12398,904,754(7,164,744)538,858,133
Total capital assets being depreciated1,087,063,941131,074,933(8,069,738)1,210,069,136
Less accumulated depreciation for:
Buildings7,954,646681,111-8,635,757
Landfill improvements23,330,9381,299,403(848,407)23,781,934
Water rights19,748,396695,988-20,444,384
Infrastructure155,605,39912,967,841-168,573,240
Plant, machinery, equipment, and other
improvements183,825,95925,072,095(6,057,370)202,840,684
Total accumulated depreciation390,465,33840,716,438(6,905,777)424,275,999
Total capital assets, being depreciated, net696,598,60390,358,495(1,163,961)785,793,137
Business-type activities capital assets, net1,081,444,569$ $274,721,378$ (132,061,516)$ 1,224,104,431
Transfers and decreases include $502,297 ($52,432 in related accumulated depreciation) transferred from
Governmental Activities to Business-Type Equipment. Increases in accumulated depreciation include the
Electric prior period adjustment of $3,126,716 for certain transmission assets.
52
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Depreciation expense was charged to activities of funds/functions/programs as follows:
Governmental activities:
General government$ 2,952,824
Public Safety3,288,360
Public Works9,263,508
Parks & Recreation2,203,903
Capital assets held by the internal service funds are
charged to the various functions based upon usage1,889,558
Total depreciation expense - governmental activities$ 19,598,153
Business-type activities:
Electric$ 14,628,588
Water8,112,925
Wastewater7,950,294
Solid Waste6,305,288
Airport592,627
Total depreciation expense - business-type activities$ 37,589,722
Construction commitments:
The City has several major construction/capital projects planned or in progress as of September 30, 2018.
These projects are evidenced by contractual commitments with contractors and include:
Remaining
ProjectSpent-to-DateCommitment
Mayhill Widening - Phase 4 Construction $ 17,445,805 $ 19,435,977
Bonnie Brae South Widening - Construction 8,110,127 7,869,320
Denton Energy Center 203,776,320 5,564,970
Brinker Substation 10,175,206 3,419,281
McKinney Street Widening 1,336,448 3,395,771
Radio Communications System 1,383,133 2,489,640
Vela Soccer Complex 3,823,531 2,310,143
Jim Christal Substation 20,818,024 2,145,845
Bonnie Brae Widening - Phase 6 2nd Arterial 8,410 1,974,740
Masch Branch Electrical Switch Station 5,229,797 1,809,544
Bonnie Brae South Widening - Engineering 5,995,537 1,352,860
Traffic Management System -Fiber Optic Trunk Lines 547,978 1,010,797
Eagle Drive Drainage - Phase 2 544,134 1,007,011
53
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
E. Interfund Receivables, Payables and Transfers
A summary of interfund receivables and payables (in thousands) at September 30, 2018, is as follows:
Interfund Receivables:
Governmental
Major FundsBusiness-Type Major Funds
Interfund Payables:General FundElectricWaterWastewaterTotal
Non-Major
Governmental Funds$ 489$ -$ -$ -$ 489
Internal Service Funds 3,773425666201 5,065
Total$ 914 $ 3,773$ 666$ 201$ 5,554
The more significant interfund receivables and payables include the following:
Interfund receivablesInterfund payablesAmount
Electric fund Internal service funds-materials management $ 3,773,453
Water fund Internal service funds-materials management 665,789
General fund Non-Major Governmental Funds 488,735
General fund Internal service funds-materials management 424,766
Wastewater fund Internal service funds-materials management 200,992
The outstanding balances between the Electric, Water, Wastewater, and General Fund related to the Materials
Management Fund are a result of the cash position in the Materials Management Fund due to inventory
purchases.The outstanding balance between the General Fund and the Non-Major Governmental Funds is
due to reimbursement timing from outside sources.
Transfers between funds (in thousands) during the year were as follows:
Transfers Out:
Governmental Major FundsBusiness-Type Major Funds
Capital Non-Major Internal
Projects Governmental Electric Water Wastewater Solid Airport Service
Transfers In:General FundFundFundsFundFundFundWasteFundFundsTotal
Governmental Major Funds:
Debt Service Fund$ -$ -$ 125$ -$ -$ 167$ -$ -$ -$ 292
Capital Projects Fund7,592-4,773824184529-14013,466
1746-735260100-50-1,325
Non-Major Governmental Funds
Electric Fund------775--775
Water Fund-45---23---68
Wastewater Fund----125-262--387
Solid Waste Fund---714-24---738
Airport Fund-4,952-------4,952
Internal Service Funds454,038-849330440---5,702
Total
$ 7,811$ 9,041$ 4,898$ 2,380$ 1,133$ 1,206$ 1,046$ 50$ 140$27,705
54
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
The more significant transfers include the following:
Transfers from fundTransfers to fundAmount
General Fund Capital Projects$7,591,340
Capital Projects Airport 4,860,000
Capital Projects Internal Service - Technology Services4,020,000
Capital Projects2,629,858
Capital Projects1,727,020
Business-type Major Funds1,034,581
Electric Internal Service - Technology Services848,500
Solid Waste Electric774,682
Transfers from the General Fund, from the Non-Major Governmental Fund Street Improvement, and from
the Non-Major Governmental Fund Other Special Revenue Funds to the Capital Projects Fund were to fund
capital projects. Transfers from the Capital Projects Fund to the Airport Fund and the Internal Service
Technology Services Fund as well as the transfer from the Electric Fund to the Internal Service Technology
Services Fund were to fund Airport capital improvements and fund a radio communications system.
Transfers from the Business-type Major Funds (Electric, Water, and Wastewater) to the Non-Major
Governmental Fund Street Improvements were for bond savings costs related to the issuance of certificates
of obligation, which fund street maintenance operations in the Street Improvements Fund. Transfers from the
Solid Waste Fund to the Electric Fund were related to the transfer of land and building assets.
F. Leases
Leases payable represent the remaining principal amounts payable under lease purchase agreements for the
acquisition of equipment through the General Fund. These leases are recorded as capital leases. Remaining
requirements, including an interest amount of zero, under these leases are one payment of $4,171 in the
following fiscal year.
arrangements as of September 30, 2018:
Equipment$ 8,439,448
Less: Accumulated Depreciation(8,428,690)
Total$ 10,758
55
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
G.Long-term Debt
Long-term liabilities transactions for the year ended September 30, 2018 are summarized as follows below
and on the following pages:
Balance at
Balance at Decreases / September 30, Due Within
October 1, 2017IncreasesTransfers2018One Year
Governmental Activities:
General obligation bonds$ 118,267,663$ 19,235,000$ 9,854,728$ 127,647,935$10,154,979
Certificates of obligation49,285,00037,725,0005,810,00081,200,0007,030,000
Obligations under capital leases498,062-493,8914,1714,171
Compensated absences payable12,091,1197,659,2877,172,40212,578,0055,951,214
Claims payable4,334,01324,757,57024,308,0654,783,5182,422,363
Net pension liability69,602,32925,064,57841,124,24953,542,658-
Other post employment benefits24,453,0483,172,683-27,625,731-
Unamortized premium/(discounts)10,994,1773,206,7271,685,18012,515,7241,783,249
Total governmental
long-term liabilities$ 289,525,411$120,820,845$ 90,448,515$ 319,897,742$27,345,976
Balance at
Balance at Decreases / September 30, Due Within
October 1, 2017IncreasesTransfers2018One Year
Business-type Activities:
Revenue bonds$ 214,890,000$ -$ -$ 214,890,000$ -
General obligation bonds127,677,337- 16,330,272111,347,06518,990,021
Certificates of obligation467,620,0001,375,00021,945,000447,050,00022,905,000
Compensated absences payable3,038,8352,592,0002,613,1773,017,6582,531,935
Net pension liability35,549,44712,106,19222,133,85025,521,789-
Other post employment benefits13,507,2481,767,904- 15,275,152-
Landfill closure/post-closure10,013,752897,636- 10,911,388-
Unamortized premium/(discounts)69,029,537152,5667,677,62261,504,4817,162,220
Total business-type activities941,326,15618,891,29870,699,921889,517,53351,589,176
Total long-term liabilities$ 1,230,851,567$ 139,712,143$ 161,148,436$ 1,209,415,275$ 78,935,152
\[The beginning balances at October 1, 2017 include a prior period adjustment for other post-employment benefits of
$17,354,263 in governmental activities and $9,576,439 in business-type activities. See footnote I.G. for more
information.\]
For Internal Service funds, long-term liabilities are included as part of the above totals for governmental
activities. Compensated absences payables and net pension liability balances and payments are based on the
assignment of an employee within a fund. Other postemployment benefits are liquidated from the Health
Insurance internal service fund, with the retiree subsidy amounts paid predominantly by the General Fund.
Claims payable represents an estimate of self-insured claims liability outstanding in the Health Insurance and
Risk Retention internal service funds.
56
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
General Bonded Debt - General bonded debt at September 30, 2018, is comprised of the following:
Original Gross Amount
General Obligation Bonds and Interest Rate Amount of Outstanding at
Certificates of Obligation Debt(%)Issue DateFinal MaturityIssueSeptember 30, 2018
General obligation3.8 to 4.320102030$ 4,115,000$ 2,905,000
General obligation refunding2.0 to 4.75201120312,225,0001,655,000
General obligation refunding2.0 to 5.02012203214,358,7399,455,000
General obligation refunding2.0 to 4.02013203310,221,0237,597,935
General obligation refunding2.0 to 3.5201420347,165,0003,985,000
General obligation refunding3.0 to 5.02015203536,110,00032,665,000
General obligation refunding3.0 to 5.02016203627,635,00026,195,000
General obligation refunding3.0 to 5.02017203727,825,00023,955,000
General obligation3.0 to 5.02018203819,235,00019,235,000
Total general obligation bonds148,889,762127,647,935
Certificates of obligation2.0 to 5.0201020302,790,000630,000
Certificates of obligation2.0 to 5.0201120313,455,000735,000
Certificates of obligation2.0 to 5.0201220324,490,000930,000
Certificates of obligation3.0 to 4.02013203310,805,0007,605,000
Certificates of obligation2.0 to 5.0201420398,635,0007,265,000
Certificates of obligation2.0 to 5.0201520347,420,0004,990,000
Certificates of obligation3.0 to 5.0201620367,190,0005,815,000
Certificates of obligation3.0 to 5.02017203717,000,00015,505,000
Certificates of obligation3.0 to 5.0201820389,555,0009,555,000
Certificates of obligation3.375 to 5.02018203828,170,00028,170,000
Total certificates of obligation99,510,00081,200,000
Total general bonded debt$ 248,399,762$ 208,847,935
\[These amounts do not include net unamortized premiums/ (discounts) of $12,515,724 nor net deferred gain/ (loss) on
refunding of ($1,590,477).\]
Proceeds of general obligation bonded debt are restricted to the uses for which they were approved in the
bond elections or, in the case of a refunding issuance, to the uses for which the certificates of obligation were
originally issued. The City Charter expressly prohibits the use of bond proceeds to fund operating expenses.
The general obligations are collateralized by the full faith and credit of the City and, primarily, payable from
property taxes.
In June 2018, the City issued $9,555,000 in certificates of obligation. The debt was issued to pay the costs of
various capital improvements in the Capital Projects Fund of $6,080,000. The remaining proceeds
($3,475,000) were transferred out of the Capital Projects Fund to the Airport Fund for runways and taxiways
at the municipal airport with the debt remaining in governmental activities.
In June 2018, the City issued $19,235,000 of general obligation. The debt was issued to pay the costs of
various capital improvements in the Capital Projects Fund.
In September 2018, the City issued $29,545,000 in certificates of obligation. Of this amount, $1,375,000 was
included as part of business-type activities in the Electric ($675,000), Water ($300,000), and Wastewater
($400,000) funds, and the proceeds were transferred to the Technology Services Fund for a radio
communications system. An amount of the proceeds ($1,220,000) were transferred out of Capital Projects
57
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Fund to the Airport Fund for improving vehicle roadways at the municipal airport with the debt remaining in
governmental activities. The remaining proceeds were issued to pay the costs of various capital improvements
in the Capital Projects Fund of $26,950,000.
Business-type Revenue Bonds Revenue bond debt at September 30, 2018, is comprised of the following
issues:
Gross Amount
Interest Rate Original Amount Outstanding at
Revenue Bonds(%)Issue DateFinal Maturityof IssueSeptember 30, 2018
Utility system3.25 to 5.020172037$ 214,890,000$ 214,890,000
Total revenue bonds$ 214,890,000$ 214,890,000
\[These amounts do not include net unamortized premiums/ (discounts) of $28,009,001.\]
The revenue bonds are collateralized by the revenue of the Denton utility system funds (System) and the
related interest and sinking fund. The ordinance provides that the revenue of the System is to be used first to
pay operating and maintenance expenses of the System and second to establish and maintain the revenue
bond funds. Any remaining revenues may then be used for any lawful purpose. The ordinance also contains
provisions, which among other items restrict the issuance of additional revenue bonds unless certain financial
ratios are met. Management believes the City is in compliance with all significant requirements. The interest
and sinking fund had a net position balance of $2,683,644 as of September 30, 2018 and is restricted for debt
service.
In prior years, the City defeased revenue bonds by placing the proceeds of new bonds in an irrevocable trust
to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and
liabilities for the defeased bonds are not included in the City's financial statements. On September 30, 2018,
$9,340,000 of revenue bonds considered defeased are still outstanding.
58
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Business-type General Obligation Bonds and Certificates of Obligation General obligation bonds and
certificates of obligation issued for electric, water, wastewater, and solid waste funds at September 30, 2018,
is comprised of the following:
Gross Amount
General Obligation Bonds and Interest Rate Original Amount Outstanding at
Certificates of Obligation Debt(%)Issue DateFinal Maturityof IssueSeptember 30, 2018
General obligation refunding3.0 to 5.020102022$ 35,815,000$ 14,005,000
General obligation refunding2.0 to 4.75201120318,620,0001,625,000
General obligation refunding2.0 to 5.02012203219,231,26111,475,000
General obligation refunding2.0 to 4.020132033513,977357,065
General obligation refunding3.0 to 5.02014A203927,155,00022,995,000
General obligation refunding3.0 to 5.0201520351,530,000940,000
General obligation refunding4.0 to 5.02015A202633,945,00022,430,000
General obligation refunding3.0 to 5.0201620281,295,0001,235,000
General obligation refunding3.0 to 5.02016A203038,425,00035,265,000
General obligation refunding3.0 to 5.0201720221,280,0001,020,000
Total general obligation bonds167,810,238111,347,065
Certificates of obligation2.0 to 5.02010203058,295,00037,710,000
Certificates of obligation2.0 to 5.02010202558,820,00032,610,000
Certificates of obligation2.0 to 5.02011203128,645,00018,215,000
Certificates of obligation2.0 to 5.02012203240,185,00027,800,000
Certificates of obligation3.0 to 4.02013203352,715,00038,625,000
Certificates of obligation2.0 to 5.02014203980,545,00070,130,000
Certificates of obligation2.0 to 5.02015203485,595,00077,700,000
Certificates of obligation3.0 to 5.02016204676,115,00071,530,000
Certificates of obligation3.0 to 5.02017204773,800,00071,355,000
Certificates of obligation3.375 to 5.0201820281,375,0001,375,000
Total certificates of obligation556,090,000447,050,000
Total business-type G.O./C.O.
bonds
$ 723,900,238$ 558,397,065
\[These amounts do not include net unamortized premiums/ (discounts) of $33,495,480 nor net deferred gain/ (loss) on
refunding of ($3,508,557.\]
59
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Schedule of Long-term DebtMaturities
Aggregate maturities of the long-term debt (principal and interest) for the years subsequent to September 30,
2018 are shown below:
Governmental Activities:
General ObligationCertificates of ObligationCapital LeasesTotal
Fiscal YearPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest
2019$ 10,154,979$ 4,888,985$ 7,030,000$ 3,254,850$ 4,171$ -$ 17,189,150$ 8,143,835
20209,865,4244,398,0266,785,0003,065,681- 16,650,424-7,463,707
20219,965,6783,965,2826,285,0002,772,981- 16,250,678-6,738,263
20229,480,8783,531,9645,800,0002,486,669- 15,280,878-6,018,633
20238,591,2623,130,0594,580,0002,236,394- 13,171,262-5,366,453
2024-202837,119,71410,707,24919,615,0008,265,238- 56,734,714-18,972,487
2029-203325,505,0005,124,12617,505,0004,221,031- 43,010,000-9,345,157
2034-203816,965,0001,132,76913,600,0001,118,609- 30,565,000-2,251,378
Total127,647,935$ $ 36,878,460$ 81,200,000$ 27,421,453$ 4,171$ -$ 208,852,106$ 64,299,913
Business-Type Activities:
General ObligationCertificates of ObligationRevenueTotal
Fiscal YearPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest
2019$ 18,990,021$ 4,675,888$ 22,905,000$ 18,296,958$ -$ 10,685,000$ 41,895,021$ 33,657,846
202019,914,5763,793,39423,330,00017,244,7947,580,00010,495,50050,824,57631,533,688
202117,019,3222,942,08922,585,00016,153,0827,970,00010,106,75047,574,32229,201,921
202215,124,1222,156,19522,435,00015,090,9258,375,0009,698,12545,934,12226,945,245
202310,513,7381,517,46321,380,00014,097,4068,805,0009,268,62540,698,73824,883,494
2024-202826,035,2862,907,337101,370,00056,598,90151,135,00039,245,875178,540,28698,752,113
2029-20333,750,000113,40090,355,00035,897,31065,480,00024,898,250159,585,00060,908,960
2034-2038-- 53,415,00022,138,64465,545,0006,759,125118,960,00028,897,769
2039-2043-- 56,860,00012,015,763- 56,860,000-12,015,763
2044-2047-- 32,415,0001,848,578- 32,415,000-1,848,578
Total111,347,065$ $ 18,105,766$447,050,000$ 209,382,361$ 214,890,000$ 121,157,250$ 773,287,065$ 348,645,377
\[These amounts do not include net unamortized premiums/ (discounts) of $74,020,205 nor net deferred gain/ (loss) on
refunding of ($5,099,034).\]
Bonds Authorized and Unissued
General obligation bonds authorized but unissued as of September 30, 2018 amounted to $34,035,000. When
issued, the proceeds will be allocated to the applicable street, drainage, and parks projects.
H.LandfillClosure and Post-closure Cost
State and federal laws and regulations require the City to place a final cover on its Mayhill Road landfill site
upon closure and to perform certain maintenance and monitoring functions at the site for thirty years after
closure. Although closure and post-closure care costs will be paid only upon anticipated closure, the City
reports a portion of these costs as an operating expense in each period based on landfill capacity used as of
each balance sheet date. Based on a model created by a 2017 engineering study, total landfill closure and
post-closure cost increased from $20,351,142 at September 30, 2017 to $20,819,218 at September 30, 2018.
The $10,911,388 reported as landfill closure and post-closure care liability is an $897,636 increase from the
$10,013,752 liability reported on September 30, 2017. This liability represents the cumulative amount
incurred to date based on the use of 50.16% of the estimated capacity of the entire landfill at September 30,
2018.
Based on this estimate, the remaining potential estimated liability for closure and post-closure care of the
entire landfill is $15,692,944. The City will recognize the remaining estimated cost of closure and post-
closure care as the remaining capacity is filled. These amounts are based on what it would cost to perform
closure and post-closure care in 2018. Actual cost may fluctuate due to inflation, changes in technology, or
changes in regulations. The landfill has a remaining life of 10 years, and the City expects to close the landfill
in fiscal year 2028.
60
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
The solid waste fund has provided for a reservation and designation of cash and investments of $9,896,590
at September 30, 2018, and anticipates increasing the reserve in future periods as the closure and post-closure
activities are carried out.
V.OTHER INFORMATION
A.Pension Plans
Employee Retirement Plans
The City of Denton participates in two pension plans; Texas Municipal Retirement System (TMRS), an agent-
multiple employer traditional, joint contributory, hybrid defined benefit pension plan; and the Denton
plans are described in detail below. Aggregate amounts for the two pension plans are as follows:
TMRSFRRFTotal
Pension liability $ 467,822,431$ 102,845,928$ 570,668,359
Pension assets406,215,62985,388,283491,603,912
Net pension liability$ 61,606,802$ 17,457,645$ 79,064,447
Deferred outflows of resources22,573,809$ $ 9,396,632$ 31,970,441
Deferred inflows of resources20,937,5485,763,87826,701,426
Pension expense14,588,7483,210,28517,799,033
Texas Municipal Retirement Plan
Plan Description
The City of Denton participates as one of 883 plans in the nontraditional, joint contributory, hybrid defined
benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees
in the State of Texas. The TMRS Act places the general administration and management of the System with
a six-member board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints
benefit pension plan is a
tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly-available
comprehensive annual financial report (CAFR) obtainable at www.tmrs.com.
All eligible employees of the city are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing
body of the City, within the options available in the state statutes governing TMRS.
city-financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven payments options. Members may also choose to receive a
portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly
payments
Upon retir-
financed monetary credits, with interest. City-financed monetary credits are composed of three sources: prior
service credits, current service credits, and updated service credits. Prior service credit, granted by each city
joining TMRS, is a monetary credit equal to the accumulated value of the percentage of prior service credit
salary prior to
61
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
participation, for the number of months the employee has been employed, accruing 3% annual interest, and
including the matching ratio adopted by the City. Monetary credits for service since the plan began (or current
service credits) are a percent (200%) of the employee's accumulated contributions. In addition, the City grants
on an annually repeating basis, another type of monetary credit referred to as an updated service credit. This
monetary credit is determined by hypothetically recompu
current member deposit rate of the City (7%) has always been in effect. The computation also assumes the
using a salary calculation based on the 36-
month period ending a year before the effective date of calculation. This hypothetical account balance is
increased by 3% each year, and increased by the city match currently in effect (200%). The resulting sum is
ccount balance increased by the actual city match and actual interest
credited. If the hypothetical calculation exceeds the actual calculation, the member is granted a monetary
credit (or Updated Service Credit) equal to the difference between the hypothetical calculation and the actual
calculation times the percentage adopted. The plan provisions also include an annually repeating basis cost
of living adjustments for retires equal to 70% of the change in the consumer price index.
Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service regardless
of age. A member is vested after five years.
Employees Covered by Benefit Terms
At the December 31, 2017 valuation and measurement date, the following employees were covered by the
benefit terms:
Inactive employees or beneficiaries currently receiving benefits576
Inactive employees entitled to but not yet receiving benefits545
Active employees1,246
Total2,367
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the
city matching percentages are either 100%, 150%, or 200%, both as adopted by the City Council. Under the
state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using
the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount
necessary to finance the cost of benefits earned by employees during the year, with an additional amount to
finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 17.30% and 17.13% in calendar years 2017 and 2018, respectively.
8were $14,931,800 and were equal
to the required contributions.
Net Pension Liability
) was measured as of December 31, 2017, and the Total Pension
Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that
date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2017 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.0% per year
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar
62
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected
on a fully generational basis by scale BB to account for future mortality improvements. For disabled
annuitants, the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are
used with male rates multiplied by 109% and female rates multiplied by 103% with a 3-year set-forward for
both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for
younger members who become disabled. The rates are projected on a fully generational basis by scale BB to
account for future mortality improvements subject to the 3% floor.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of
TMRS over the four year period from December 31, 2010 to December 31, 2014. They were adopted in 2015
and first used in the December 31, 2015 actuarial valuation. The post-retirement mortality assumption for
healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation
Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first
used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method
and a one-time change to the amortization policy. Plan assets are managed on a total return basis with an
emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term
and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. In determining their best estimate of a
recommended investment return assumption under the various alternative asset allocation portfolios,
actuary focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time
(conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target
allocation and best estimates of real rates of return for each major asset class in fiscal year 2018 are
summarized in the following table:
Long-Term
Expected Real
Target Rate of Return
Asset ClassAllocation(Arithmetic)
Domestic Equity17.5%4.55%
International Equity17.5%6.35%
Core Fixed Income10.0%1.00%
Non-Core Fixed Income20.0%3.90%
Real Return10.0%3.80%
Real Estate10.0%4.50%
Absolute Return10.0%3.75%
Private Equity5.0%7.50%
Total100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the rates
Net Position was projected to be
available to make all projected future benefit payments of current active and inactive employees. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the Total Pension Liability.
63
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Changes in the Net Pension Liability
Increase (Decrease)
Total PensionPlan FiduciaryNet Pension
LiabilityNet PositionLiability
(a)(b)(a) - (b)
Balance at 12/31/2016$438,599,411$353,041,063$ 85,558,348
Changes for the year:
Service cost14,514,171 14,514,171-
Interest29,543,513 29,543,513-
Difference between expected
and actual experience1,514,980 1,514,980-
Contributions - employer 14,821,752-(14,821,752)
Contributions - employee 6,014,227-(6,014,227)
Net investment income 48,954,660-(48,954,660)
Benefit payments, including refunds
of employee contributions(16,349,644)(16,349,644)-
Administrative expense (253,578)-253,578
Other changes-(12,851)12,851
Net changes29,223,02053,174,566(23,951,546)
Balance at 12/31/2017$467,822,431$406,215,629$ 61,606,802
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
-
percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
1% Decrease inCurrent1% Increase in
Discount RateDiscount RateDiscount Rate
(5.75%)(6.75%)(7.75%)
City's net pension liability131,733,921$ $ 61,606,802$ 4,406,685
Pension Plan Fiduciary Net Position
-issued
TMRS financial report. That report may be obtained on the Internet at .
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended September 30, 2018, the City recognized pension expense of $14,588,748. This amount
is included as part of personal services expenses.
64
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources
related to TMRS pension from the following sources:
Deferred OutflowsDeferred Inflows
of Resourcesof Resources
Differences between projected and
actual investment earnings$ 9,474,797$ (20,121,039)
Contributions subsequent to the
measurement date11,422,858-
Differences between expected and
actual economic experience1,676,154(645,510)
Difference in assumption changes-(170,999)
Total$ 22,573,809$ (20,937,548)
$11,422,858 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for the
fiscal year ending September 30, 2019. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
Measurement
Year Ended
December 31st
2018$ 109,135
2019(610,753)
2020(4,579,951)
2021(4,711,063)
20226,035
Total$ (9,786,597)
Denton Firemen's Relief and Retirement Plan
Plan Description
The City contributes to the retirement plan for firefighters in the Denton Fire Department known as the
de
Retirement Act (TLFFRA). TLFFRA provides the authority and procedure to amend benefit provisions. The
plan is administered by the Board of Trustees of t
does not have access to nor can it utilize assets within the retirement plan trust. The Fund issues a stand-alone
report pursuant to GASB Statement No. 67, which may be obtained by writing the Denton
and Retirement Fund at P.O. Box 2375, Denton, Texas 76202. See that report for all information about the
plan fiduciary net position.
Benefits Provided
and Retirement Fund
which provides service retirement, death, disability, and withdrawal benefits. These benefits fully vest after
20 years of credited service. Firefighters may retire at age 50 with 20 years of service. A partially-vested
benefit is provided for firefighters who terminate employment with at least 10 but less than 20 years of
service. If a terminated firefighter has a partially vested benefit, the firefighter may retire starting on the date
they would have both completed 20 years of service if they had remained a Denton firefighter and attained
age 50. The present plan effective January 1, 2011 provides a monthly normal service retirement benefit,
65
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
payable in a Joint and Two-Thirds to Spouse form of annuity, equal to 2.59% of Highest 36-Month Average
Salary for each year of service.
A retiring firefighter who is at least age 52 with at least 22 years of service has the option to elect the
Retroactive Deferred Retirement Option Plan (RETRO DROP) which will provide a lump sum benefit and a
reduced monthly benefit. The reduced monthly benefit is based on the service and Highest 36-Month Average
Salary as if the firefighter had terminated employment on their selected RETRO DROP benefit calculation
date, which is no earlier than the later of the date the firefighter meets the age 52 and 22 years of service
requirements and the date four years prior to the date the firefighter actually retires. Upon retirement, the
member will receive, in addition to the monthly retirement benefit, a lump sum equal to the sum of (1) the
amount of monthly contributions the member has made to the Fund after the RETRO DROP benefit
calculation date plus (2) the total of the monthly retirement benefits the member would have received between
the RETRO DROP benefit calculation date and the date retired under the plan. There are no account balances.
The lump sum is calculated at the time of retirement and distributed as soon as administratively possible.
There is no provision for automatic postretirement benefit increases. The Fund has the authority to provide,
and has periodically in the past provided, ad hoc postretirement benefit increases.
Employees Covered by Benefit Terms
In the December 31, 2017 actuarial valuation, the following numbers of members were covered by the Fund:
Inactive employees or beneficiaries currently receiving benefits84
Inactive employees entitled to but not yet receiving benefits3
Active employees189
Total276
Contributions
The contribution provisions of the Fund are authorized by TLFFRA. TLFFRA provides the authority and
procedure to change the amount of contributions determined as a percentage of pay by each firefighter and a
percentage of payroll by the City.
12.6% of pay by the firefighters, the rate elected by the firefighters according to TLFFRA. The City
contribution rate in calendar year 2017 was 17.48% until the City began contributing in December 2017
according to a new City funding policy. The ordinance defining it includes an actuarially determined
contribution rate over a closed 25-year amortization period, a contribution rate of 18.5% for several years, a
minimum rate standard, and City review and approval of each actuarial valuation. The December 31, 2017
actuarial valuation includes the assumption the City contribution rate will be 18.5% over the unfunded
liability amortization period. The costs of administering the plan are paid from the F
contributions to the Fund for the year ended September 30, 2018 were $3,310,248
year
to year. Investment policy decisions are established and maintained by the board of trustees. The board selects
investments and employs investment managers with the advice of their investment consultant who is
completely independent of the investment managers. For the calendar year ending December 31, 2017, the
money-weighted rate of return on pension plan investments was 11.58%. This measurement of the investment
performance is net of investment-related expenses, reflecting the effect of the timing of the contributions
received and the benefits paid during the year.
While the contribution requirements are not actuarially determined, state law requires that each change in
plan benefits adopted by the Fund must first be approved by an eligible actuary, certifying the contribution
commitment by the firefighters and the assumed city contribution rate together provide an adequate
is determined as a percentage of payroll. The excess of the total contribution rate over the normal cost
66
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
mined using an open, level percentage of payroll
method.
Net Pension Liability
The 7, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of December
31, 2017.
Actuarial Assumptions
The total pension liability in the December 31, 2017 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50% per year
Overall payroll growth 3.00% per year, plus promotion, step and longevity increases that vary by
service
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
Mortality rates were based on the RP-2000 Combined Healthy Mortality Tables for males and for females
(sex distinct) projected to 2024 by scale AA.
The long-term expected rate of return on pension plan investments is reviewed for each biennial actuarial
valuation and was determined using a building-block method in which expected future net real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each major asset
class. These components are combined to produce the long-term expected rate of return by weighting the
expected future net real rates of return by the target asset allocation percentage (currently resulting in 5.1%)
and by adding expected inflation (2.5%). In addition, the final 6.75g
85% for adverse deviation. The target allocation and expected
arithmetic net real rates of return for each major asset class are summarized in the following table:
Long-Term
Expected Real
Target Rate of Return
Asset ClassAllocation(Arithmetic)
Equities
Large Cap Domestic40.0%6.00%
Small/Mid Cap Domestic10.0%6.50%
International Developed10.0%6.50%
Alternatives
Master Limited Partnerships8.0%8.00%
Real Estate15.0%4.50%
Fixed Income10.0%1.00%
Cash7.0%0.00%
Total100.0%
Discount Rate
T he discount rate used to measure the total pension liability was 6.75%. No projection of cash flows was
used to determine the discount rate because the December 31, 2017 actuarial valuation showed expected
contributions would pay the normal cost and amortize the unfunded actuarial accrued liability (UAAL)
in 15 years. Because of the 15-
67
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
position is expected to be available to make all projected future benefit payments of current active and
inactive members. Therefore, the long-term expected rate of return on pension plan investments of 6.75%
was applied to all periods of projected benefit payments as the discount rate to determine the total pension
liability.
Changes in the Net Pension Liability
Increase (Decrease)
Total PensionPlan FiduciaryNet Pension
LiabilityNet PositionLiability
(a)(b)(a) - (b)
Balance at 12/31/2016$ 94,898,178$ 75,304,750$ 19,593,428
Changes for the year:
Service cost3,182,608 3,182,608-
Interest6,493,255 6,493,255-
Difference between expected
and actual experience2,040,716 2,040,716-
Contributions - employer 2,979,807-(2,979,807)
Contributions - employee 2,142,990-(2,142,990)
Net investment income 8,793,234-(8,793,234)
Benefit payments, including refunds
of employee contributions(3,768,829)(3,768,829)-
Administrative expense-(63,669)63,669
Net changes7,947,75010,083,533(2,135,783)
Balance at 12/31/2017$102,845,928$ 85,388,283$ 17,457,645
Sensitivity of the Net pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City of Denton, calculated using the discount rate
of 6.75a discount
rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
1% Decrease inCurrent1% Increase in
Discount RateDiscount RateDiscount Rate
(5.75%)(6.75%)(7.75%)
City's net pension liability30,523,721$ $ 17,457,645$ 6,442,050
Pension Plan Fiduciary Net Position
The plan fiduciary net position reported above is the same as reported by the Fund. Detailed information
which are reported using the economic resources measurement focus and the accrual basis of accounting in
conformity with accounting principles generally accepted in the United States of America. Revenues are
recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of the
related cash flows. Investments are reported at fair value, the price that would be recognized to sell an asset
in an orderly transaction between market participants at the measurement date.
68
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended September 30, 2018, the City recognized pension expense of $3,210,285. Amounts
recognized in the fiscal year represent changes between the current and prior year measurement dates. This
amount is included as part of personnel services expenses.
At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources
related to the Fund from the following sources:
Deferred OutflowsDeferred Inflows
of Resourcesof Resources
Differences between projected and
actual investment earnings$ 3,355,753$ (4,333,409)
Contributions subsequent to the
measurement date2,594,163-
Differences between expected and
actual economic experience1,830,116(1,430,469)
Difference in assumption changes1,616,600-
Total$ 9,396,632$ (5,763,878)
Deferred outflows of resources related to pensions resulting from contributions subsequent to the
measurement date of $2,594,163 will be recognized as a reduction of the net pension liability for the
measurement year ending December 31, 2018 9. Other
amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in
pension expense as follows:
Measurement
Year Ended
December 31st
2018$ 740,363
2019691,436
2020(961,976)
2021(495,271)
2022238,052
Thereafter825,987
Total$ 1 ,038,591
B. Post-employment Benefits Other than Pensions (OPEB)
The City of Denton provides for two post-employment benefit (OPEB) plans; one provides for post-
employment medical care through a single-employer defined benefit medical plan (Medical OPEB), and the
other is the Texas Municipal Retirement System Supplemental Death Benefits Fund (TMRS SDBF), a single-
employer defined benefit OPEB plan. Both plans are described in detail below.
69
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Aggregate amounts for the two OPEB plans are as follows:
Medical OPEBTMRS SDBFTotal
Total OPEB liability$ 39,631,890$ 3,268,993$ 42,900,883
Deferred outflows of resources2,600,480$ $ 346,207$ 2,946,687
OPEB expense3,340,971296,1223,637,093
Medical Benefits
Plan Description
The City of Denton provides post-employment medical care (OPEB) for retired employees through a single-
employer defined benefit medical plan. The plan provides medical benefits for eligible retirees, their spouses
members. The benefits, benefit levels, and contribution rates are recommended annually by the City
management as part of the budget process. Any changes in rate subsidies for retirees are approved by the City
Council. Since an irrevocable trust has not been established, the plan is not accounted for as a trust fund. The
plan does not issue a separate financial report.
Benefits Provided
The City provides post-employment medical, dental, and vision care benefits to its retirees. To be eligible for
benefits, an employee must qualify for retirement under the Texas Municipal Retirement System or the
nt Plan. Retirees must make a one-time irrevocable decision to choose
benefits at the time of retirement, after that their eligibility for the benefits ceases. However, retirees can
move between plans and can add and drop dependents based on qualifying events.
-insured health plan. The benefit levels are the
same as those afforded to active employees.
Employees Covered by the Benefit Terms
In the December 31, 2017 actuarial valuation, the following number of employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits123
Inactive employees entitled to but not yet receiving benefits0
Active employees1,402
Total1,525
Funding Policy
The plan premium rates are recommended annually by City management and approved by the City Council
the actuarially determined blended
premium rate less a subsidy dependent upon years of service at retirement. By providing retirees with access
providing a subsidy to retirees. This implied subsidy exists because, on average, retiree health care costs are
higher than active employee healthcare costs. By the City not contributing anything toward this plan in
advance, the City employs a pay-as-you-go method through paying the higher rate for active employees each
year. The City contributes $40 per month for each five-year increment of service, up to $200 per month,
toward the cost of retiree coverage. The full cost for dental and vision is paid by the retiree. Retirees are
required to enroll in Medicare Part B once eligible (age 65) and are moved into a fully-insured Medicare
Supplement plan at that time. The same City contribution level applies to the supplement.
70
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Medical OPEB Liability
al OPEB liability of $39,631,890 was measured as of December 31, 2017 and determined
by an actuarial valuation as of that date.
Actuarial Methods and Assumptions
The medical OPEB liability in the December 31, 2017 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise
specified.
Significant method and assumptions used for this fiscal year valuation were as follows:
Actuarial Assumptions
12/31/2017
Valuation dateDecember 31, 2017
Actuarial cost methodIndividual Entry-AgeNormal Method
Discount Rate3.31% as of December 31, 2017
Inflation rate2.5% per annum
Projected salary increases3.50% to 10.5% including inflation
Healthcare trend ratesInitial rate of 7.50% declining to an ultimate rate
of 4.25% after 15 years
MortalityTMRS: For healthy retirees, the gender-district
RP-2000 Combined Healthy Mortality Tables
with Blue Collar Adjustment are used with male
rates multiplied by 109% andfemale rates
multiplied by 103%. The rates are projected on a
fully generational basis by scale BB to account
for future mortality improvements.
Firefighters:The gender-distinct RP-2000
Combined Healthy Mortality Tables projected to
2024 with Scale AA. No additional provision is
made for future improvements in mortality after
the measurement date other than the margins
described above.
Participation Rates60% for retirees age 65 or older at retirement:
45% for retirees between the ages of 50 and 64
at retirement;
0% for retirees under age 50 at retirement
71
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Changes in the Medical OPEB Liability
Total Medical
OPEB Liability
Balance at 12/31/2016$35,196,570
Changes for the year:
Service cost1,750,172
Interest1,360,179
Changes of assumptions2,067,787
Benefit payments
(742,818)
Net changes4,435,320
Balance at 12/31/2017$39,631,890
Sensitivity of the Medical OPEB Liability to Changes in the Discount Rate
The following schedule shows the impact of the medical OPEB liability if the discount rate used was 1% less
than and 1% greater than the discount rate that was used (3.31%) in measuring the medical OPEB liability:
Current
1% DecreaseDiscount Rate1% Increase
(2.31%)(3.31%)(4.31%)
Total medical OPEB liability44,196,544$ $ 39,631,890$ 35,625,856
Sensitivity of the Medical OPEB Liability to Changes in the Healthcare Cost Trend Rate Assumption
The following schedule shows the impact of the medical OPEB liability if the healthcare trend cost rate used
was 1% less than and 1% more than the healthcare cost trend rate that was used (7.50%) in measuring the
medical OPEB liability:
Current Healthcare
1% DecreaseCost Trend Rate1% Increase
(6.50%)(7.50%)(8.50%)
Total medical OPEB liability36,019,869$ $ 39,631,890$ 43,913,059
Medical OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Medical OPEB
For the year ended September 30, 2018, the City recognized medical OPEB expense of $3,340,971. At
September 30, 2018, the City reported deferred outflows of resources (no deferred inflows of resources)
related to medical OPEB from the following sources:
Deferred Outflows
of Resources
Changes in actuarial assumptions$ 1,837,167
Contributions subsequent to the measurement date763,313
Totals$ 2,600,480
72
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Amounts reported as deferred outflows of resources related to the medical OPEB will be recognized in OPEB
expense as follows:
Year EndingNet Deferred
September 30Outflows/(Inflows)
2019$230,620
2020230,620
2021230,620
2022230,620
2023230,620
Thereafter684,067
Total$1,837,167
TMRS Supplemental Death Benefit Fund
PlanDescription
The City of Denton voluntarily participates in the Texas Municipal Retirement System Supplemental Death
Benefits Fund (TMRS SDBF). The SDBF is a single-employer defined benefit Other Postemployment
Benefit (OPEB) plan as defined by GASB Statement No. 75,
. No assets are accumulated in a trust that meets the criteria in
paragraph 4 of GASB Statement No. 75. It is established and administered in accordance with the TMRS Act
Benefits Provided
The SDBF provides group-term life insurance to City employees who are active members in TMRS, including
or not including retirees. The City Council opted into this system via an ordinance, and may terminate
st
coverage under, and discontinue participation in, the SDBF by adopting an ordinance before November 1 of
st
any year to be effective the following January 1.
Payments from this fund are similar to group-term life insurance benefits, and are paid to the designated
beneficiaries upon the receipt of an approved application for payment. The death benefit for active employees
provides a lump-
employee-month period preceding the month of death). The death benefit for
Employees Covered by the Benefit Terms
In the December 31, 2017 actuarial valuation, the following number of employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits449
Inactive employees entitled to but not yet receiving benefits165
Active employees 1,246
Total1,860
Contributions
The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial
valuation, which was 0.18% for 2018 and 0.18% for 2017, of which 0.02% and 0.02%, respectively
represented the retiree-only portion for each year, as a percentage of annual covered payroll. The rate is equal
to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure
that adequate resources are available to meet all the death benefit payments for the upcoming year; the intent
73
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
is not to prefund retiree term life insurance during employees
SDBF for two years ended September 30, 2018 and 2017 were $156,539 and $152,556 respectively
representing contributions for both active and retiree coverage, which equaled the required contribution each
year.
Actuarial Methods and Assumptions
The SDBF OPEB liability in the December 31, 2017 actuarial valuation was determined using the following
actuarial assumptions:
12/31/2017
Inflation rate2.50% per annum
Discount rate3.31%
Actuarial cost methodEntry Age Normal Method
Projected salary increases3.50% to 10.5% including inflation
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the following:
Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000
Combined Healthy Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and
female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account
for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Combined Healthy
Mortality Tables with Blue Collar Adjustment are used with male rates multiplied by 109% and female rates
multiplied by 103% with a 3-year set forward for both males and females. In addition, a 3% minimum
mortality rate is applied to reflect the impairment for younger members who became disabled. The rates are
projected on a fully generational basis by scale BB to account for the future mortality improvements subject
to the 3% floor. Administrative expenses for the SDBF are paid through the TMRS Pension Trust Fund and
are wholly accounted for under the provisions of GASB Statement No. 68.
Changes in assumptions reflect the annual change in the municipal bond rate. The actuarial assumptions used
in the December 31, 2017 valuation were based on the results of an actuarial experience study for the period
December 31, 2010 to December 31, 2014.
Discount Rate
The SDBF program is treated as an unfunded OPEB plan because the SDBF trust covers both actives and
retirees and the assets are not segregated for these groups. As such, a single discount rate of 3.31% was used
to measure the SDBF OPEB Liability. Because th-as-you-
discount rate is equal to the prevailing municipal bond rate. The source of the municipal bond rate was fixed-
income municipal bonds with 20 years to maturity that include only federally tax-exempt municipal bonds as
-
Sensitivity of the SDBF OPEB Liability to Changes in the Discount Rate
The following schedule shows the impact of the SDBF OPEB liability if the discount rate used was 1% less
than and 1% greater than the discount rate that was used (3.31%) in measuring the medical OPEB liability:
Current
1% DecreaseDiscount Rate1% Increase
(2.31%)(3.31%)(4.31%)
Total SDBF OPEB liability3,965,711$ $ 3,268,993$ 2,728,823
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources Related to OPEBs
At September 30, 2018 the City reported a liability of $3,268,993 for its Total SDBF OPEB liability. The
total SDBF liability was determined by an actuarial valuation as of December 31, 2017. For the year ended
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CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
September 30, 2018, the City recognized SDBF OPEB expense of $296,122. There were no changes of benefit
terms that affected measurement of the Total SDBF Liability during the measurement period.
Changes in the SDBF OPEB Liability
Total SDBF
OPEB Liability
Balance at 12/31/2016$ 2,763,726
Changes for the year:
Service cost144,886
Interest106,885
Changes of assumptions270,541
Benefit payments
(17,045)
Net changes505,267
Balance at 12/31/2017$ 3,268,993
At September 30, 2018, the City reported deferred outflows of resources (no deferred inflows of resources)
related to other SDBF post-employment benefits from the following sources:
Deferred Outflows
of Resources
Changes in actuarial assumptions$ 226,190
Contributions subsequent to the measurement date120,017
Totals$ 346,207
The $120,017 reported as deferred outflows of resources related to SDBF OPEB resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the Total SDBF Liability for the
year ending September 30, 2019. Other amounts reported as deferred outflows of resources related to SDBF
OPEB will be recognized in OPEB expense as follows:
Year EndingNet Deferred
September 30Outflows/(Inflows)
2019$44,351
202044,351
202144,351
202244,351
202344,351
Thereafter4,435
Total$226,190
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CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
C. Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue
Code Section 457. For the calendar years 2017 and 2018, the plan, available to all permanent City employees,
permitted them to defer, until future years, up to $18,000 and $18,500, respectively. Employees who are age
50 or older may contribute an amount not to exceed $24,500. Employees who are within three years of
retirement eligibility may elect to participate in a catch-up provision allowed by Section 457, which has an
annual maximum contribution amount of $36,000 in 2017 and $37,000 in 2018. The withdrawal of deferred
compensation funds is only available to employees by loan, termination, retirement, death, or unforeseeable
emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with those amounts,
and all income attributable to those amounts, property or rights are, until paid or made available to the
employee or other beneficiary, solely the property and rights of the employees. Accordingly, the assets and
It is the opinion of the City's legal counsel that the City has no liability for losses under the plan.
D. Self-insurance Plan
The City has established a self-insurance plan for liability and workers' compensation claims in the Risk
Retention Fund. Accrued claims payable include provisions for claims reported and claims incurred but not
reported. The provision for reported claims is determined by estimating the amount which will ultimately be
paid for each claimant. The provision for claims incurred but not yet reported is estimated based on actuarial
studies.
It is the policy of the City of Denton not to purchase commercial insurance for workers' compensation claims
or general liability. Commercial liability insurance coverage is purchased for airport operations, emergency
medical services, take-home vehicles, and employee theft and dishonesty. Additionally, excess insurance is
purchas
reports liabilities when it is probable that a loss has occurred and the amount of that loss can be reasonably
estimated. Liabilities include an amount for claims that have been incurred but not reported. Because actual
claim liabilities depend on such complex factors as inflation, changes in legal doctrines, and damage awards,
the process used in computing claims liability does not necessarily result in an exact amount.
In January 2008, the City started a self-insured group employee health insurance plan. Claims are paid from
the Health Insurance Fund, which has an annually negotiated stop loss provision.
-insurance plans are interfund transactions. Accordingly, they are
treated as operating revenues of the Internal Service Risk Retention Fund and Health Insurance Fund and
operating expenditures (expenses) of the other funds and employee payroll deductions.
Claims liabilities are re-evaluated periodically to take into consideration settlement of claims, new claims and
other factors. As of September 30, 2018 the estimated value of these liabilities was $4,783,518. Changes in
balances of claims liabilities during fiscal years 2018 and 2017 were as shown on the following page:
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CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Claims Liability Claims and Claims Liability
Beginning of Change in Claims End of Fiscal
Fiscal YearEstimatesPaymentsYear
Workers'
Compensation
2018$ 1,661,902$ 1,040,854$ 912,087$ 1,790,669
20171,887,2961,059,0621,284,4561,661,902
General Liability
2018$ 844,772$ 440,089$ 266,975$ 1,017,886
2017609,030442,108206,366844,772
Health Insurance
2018$ 1,827,339$ 23,276,627$ 23,129,003$ 1,974,963
20171,575,07821,964,58321,712,3221,827,339
On September 30, 2018, the City of Denton had a negative unrestricted net position of $294,023 in the Risk
Retention Fund and an additional positive net position of $3,261,266 in the Health Insurance Fund for
payment of claims. There were no significant reductions in insurance coverage from coverage in the prior
year, and the amount of settlements did not exceed insurance coverage in the current year or in any of the
past three fiscal years.
E. Commitments and Contingencies
Agreement with TMPA
In 1976, the City, along with the cities of Bryan, Greenville, and Garland, Texas (the Cities) entered into a
Power Sales Contract with the Texas Municipal Power Agency (TMPA). TMPA was created through
concurrent ordinances of the Cities and is governed by a Board of Directors consisting of eight members, two
appointed by the governing body of each city. Under the terms of the agreement, TMPA agreed to construct
or acquire electric generating plants to supply energy and power to the Cities for a period of not less than 35
years. The Cities in turn agreed to purchase all future power and energy requirements in excess of the amounts
generated by their systems from TMPA at prices intended to cover operating costs and retirement of debt. In
the event that revenues are insufficient to cover all costs and retire the outstanding debt, each of the cities has
guaranteed a portion of the unpaid debt based, generally, upon the pro rata share of the energy delivered to
consumers in the prior operating year.
TMPA, a municipal corporation, is governed by a Board of Directors consisting of eight members. The
governing body of each of the four Cities appoints two members to the Board. An affirmative vote of five
Directors, plus a weighted majority vote based on the respective energy usage of the Cities, is required for
major decisions.
The City pays TMPA a pro-
fixed operating costs and debt service payments, which is currently 21.3%. As of September 30, 2017, total
TMPA long-term debt outstanding was approximately $218,637,000, all of which was transmission debt and
has no effect on the term of the contract. All outstanding generation debt was paid off on September 1, 2018.
In January 2016 and again in June 2017, TMPA issued requests for proposals (RFPs) regarding the proposed
2016 RFP were pursued in 2016 and into 2017, but negotiations were ultimately discontinued. TMPA
received additional proposals in the summer and fall of 2017 and is in negotiations with a proposal.
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CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
The sale proposal involves two potential sales, one involving the conveyance of Gibbons Creek and the other
TMPA management anticipates, if an agreement is reached with the proposer,
assets would be transferred prior to the first date, September 1, 2020, when all transmission debt is subject to
optional or mandatory redemption or could otherwise be prepaid.
Effective September 1, 2016, TMPA and the Member Cities entered into a Joint Operating Agreement (JOA).
In general, the purposes of the JOA include: (i) funding TMPA operations such as mine reclamation,
transmission service, and plant decommissioning following expiration of the Power Sales Contract (PSC);
(ii) subject to certain exceptions, requiring Member City approval for the issuance of new debt, the execution
of certain significant contracts, and the sale of property exceeding $10 million in value; (iii) specifying
provisions for determining how costs of TMPA and proceeds from the sale of assets are to be allocated among
the Member Cities; (iv) providing for the establishment by TMPA of reserve funds for the decommissioning
of the plant and the indemnification of TMPA Board Members and Member City officials, employees,
contractors, and agents; and (v) dividing the operations of TMPA into three business functions (mine,
generation, and transmission)and requiring separate budgets and books for each business function.
The PSC provides upon dissolution of TMPA, the assets of TMPA automatically being transferred to the
Member Cities, with each Member City receiving an undivided interest in the assets of TMPA in proportion
to the amount paid by the Member City to TMPA. The JOA requires TMPA to periodically make this
calculation for each business unit, and sets out formulas for making these calculations. Under the JOA, these
ownership calculations are relevant not only to the allocation of assets upon dissolution of TMPA, but also
to the allocation of certain proceeds from the sale of assets, and in some cases, the allocation of TMPA costs.
At the request of a majority of the Member Cities, TMPA is required by the JOA to transfer a divided interest
in the transmission system to each Member City. Under this partition process, the objective is for each City
to receive ownership of transmission facilities in the vicinity of the Member City, and in proportion to the
be in compliance with relevant bond covenants, including those requiring defeasance of all or a portion of
transmission debt.
The JOA includes a reclamation plan for the mine, requires the development of a decommissioning plan, and
sets out standards for environmental remediation. TMPA is required to comply with these plans and standards.
Under the JOA, in discharging its contractual obligations, including mine reclamation, decommissioning,
transmission service, environmental remediation, indemnification, and other obligations, TMPA is rendering
services to the Member Cities. The JOA obligates each Member City to pay the cost of these services, and to
collect rates and charges for electric service sufficient to enable it to pay to TMPA all amounts due under the
JOA for these services. The re payable exclusively from such
electric utility revenues, and constitute an operating expense of the electric system.
Unless terminated earlier through the mutual consent of all parties, the JOA remains in effect until the
dissolution of TMPA and the winding up of its affairs.
Effective September 1, 2016, the JOA was amended (Amendment No. 1). The primary purposes of the
amendment were to authorize the sale of Gibbons Creek and the sale of the Southern 345 kV Transmission
System and to authorize the issuance of refunding bonds in connection with such sales. As the sale
contemplated by Amendment No. 1 did not occur, by its own terms, Amendment No. 1 ceased to have any
force or effect. Effective September 22, 2017, the JOA was amended a second time (Amendment No. 2). The
contemplated in Amendment No. 1; revise the dates on which the separate budgets of the JOA become
effective; authorize TMPA to sell certain mining and transmission assets, provided the sales do not exceed in
value certain financial thresholds, and provided the sales comply with bond covenants; and allow for an
extension to the term of the PSC, applicable only to the cities notifying TMPA of the extension, in order to
complete a period of seasonal operation in 2018, or such other period of time as desired by the notifying
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CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
cities. Pursuant to this provision, the City extended the PSC from September 1, 2018 to September 30, 2018,
in order to complete the period of 2018 seasonal operation.
Effective October 17, 2017, Gibbons Creek entered into a seasonal operations mode, operating during the
summer months only (June-September). This change was authorized by ERCOT through a Notification of
Suspension of Operations (NSO) Initial and Final Determination, dated August 2017. Due to the significant
decline in service utility of the generation assets, such assets were deemed largely impaired as of September
30, 2017. The City also largely impaired its TMPA prepaid purchase power due to the seasonality changes as
of September 30, 2017. In December 2018, TMPA notified ERCOT that it will suspend operation (i.e.
mothball) Gibbons Creek indefinitely. This filing category does not mean the unit cannot be returned to
service if TMPA should subsequently elect to do so by providing the requisite six-
The City has recorded $14,211,345 in TMPA prepaid purchase power outstanding as of September 30, 2018,
lance in the Electric fund, and $23,268,440 impaired and recorded as an
Other Asset to be amortized over the remaining 6.5 remaining years. If Gibbons Creek is still shut down
indefinitely as of September 30, 2019, the outstanding balances will be reviewed and impaired accordingly.
Selected financial statement information of TMPA is as follows:
September 30
(Unaudited)
20182017
(000s)(000s)
Operating revenues $175,471 $ 277,155
Operating expenses 68,769 121,245
Operating income 106,702 155,910
Other non-operating sources (uses) 6,785 2,922
Current unrestricted assets 54,506 52,658
Total assets and deferred outflows 269,423 407,095
214,487 207,824
Total liabilities 255,208 362,208
Total net position 14,215 44,887
Financial statements for TMPA are available from the TMPA website www.texasmpa.org.
Power Purchase Agreements
Following is a list of power purchase agreements in effect as of the publication date of these financial
statements as well as agreements entered into subsequent to year. The information provided is all that is
allowed under the confidentiality provision(s) of the particular agreements.
Denton Power, Landfill-Gas Digester - In 2008, the City entered into a 16 year power purchase agreement
with Denton Power, LLC. Under the agreement, the City purchases 1.6 MW of output from a landfill gas-
fired electric generating facil
NextEra - In 2009, the City entered into a power purchase agreement for firm energy and associated renewable
energy credits with NextEra Energy Power Marketing, LLC.
Santa Rita, Wind - In 2016, the City entered into a 20 year power purchase agreement for wind energy,
capacity, and environmental attributes with Santa Rita Wind Energy, LLC.
Bluebell Solar - In 2015, the City entered into a 20 year power purchase agreement with Bluebell Solar
Energy, LLC, a subsidiary of NextEra Energy, Inc. Under the agreement, the City purchases solar energy,
capacity, and environmental attributes commencing from the commercial operation date which was
November 2018.
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CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
Long Draw Solar - In 2018, subsequent to year-end, the City entered into a 15 year power purchase agreement
with Engie Long Draw Solar, LLC. Under the agreement, which is scheduled to end June 2035, the City will
purchase 75 MW of solar generation and environmental attributes. Projected in-service date is June 30, 2020.
Bluebell II Solar - In 2018, the City entered into a 15 year power purchase agreement with Bluebell Solar II
Energy, LLC, a subsidiary of NextEra Energy, Inc. Under the agreement, the City will purchase 100 MW of
solar generation and environmental attributes commencing from the commercial operation date projected for
December 31, 2020.
Samson Solar - In 2018, subsequent to year-end, the City of Denton entered into a 15 year power purchase
agreement with Samson Solar Energy, LLC. Under the agreement, which is scheduled to end in 2037, the
city will purchase 75 MW of solar generation and environmental attributes. Projected in-service date is June
1, 2022.
Encumbrances
As discussed in note I.D., Budgetary information, encumbrances are utilized to the extent necessary to assure
effective budgetary control and accountability and to facilitate effective cash planning and control. At year
end the amount of encumbrances in governmental funds expected to be honored upon performance by the
vendor in the next year were as follows:
General Fund$ 883,097
Capital Projects Fund42,701,532
Nonmajor Governmental Funds991,525
Total$ 44,576,154
F.Tax Abatements
The City enters into economic development incentive agreements with entities to promote development and
redevelopment within the City, stimulate commercial activity, generate additional sales tax, and enhance the
property tax base and economic vitality of the City. Some agreements provide for an abatement of property
taxes, while others provide for a rebate of a portion of sales and use tax or a portion of ad valorem (property)
tax, as established per the agreements. The incentives are performance-based, and the City generally expects
to receive increased revenue as a result of the agreements. These incentive agreements require approval by a
City Council ordinance and are authorized under Chapter 312 (Property Redevelopment and Tax Abatement
Act) of the Texas Tax Code and Chapter 380 of the Texas Local Government Code.
Property Tax Abatements
Tax abatements under Chapter 312 of the Texas Tax Code allow the City to designate tax reinvestment zones
and negotiate tax abatement agreements with applicants. In 1990, the City Council adopted a resolution setting
guidelines and criteria for granting abatements in the reinvestment zones which specifically notes incentives
are limited to companies which create new wealth and do not adversely affect existing businesses operating
within the City. The City is required to renew/adopt a Tax Abatement Policy every two years in accordance
with Chapter 312 of the Texas Tax Code. The last policy was adopted in March of 2018. The abatement
agreements authori
percentage specified in the agreement, and the taxpayer will pay taxes on the lower assessed value during the
term of the agreement. For the fiscal year ended September 30, 2018, the City abated property taxes totaling
$432,226 under this program, as detailed in the following agreements:
Target In 2010, a 65% tax abatement agreement for a $100 million project was granted to Target
Corporation for a period of five years for a 400,000 square foot frozen and refrigerated food
distribution center and to help offset costs to improve Airport and Corbin roads. In the event of a
failure to meet the conditions of the agreement, an increased assessed value of real property of at least
$5 million, the agreement provides for a full refund all abatements previously granted plus interest.
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CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
The abatement amount for the current fiscal year was $395,868, which was the final abatement on this
agreement.
Tetra Pak In 2013, a 65% tax abatement agreement for a term of four years was granted to Tetra Pak
Materials LP on new capital investments, including a 32,000 square foot expansion of their facility
and relocating their corporate headquarter operations from Chicago to Denton. In the event of a failure
to meet the conditions of the agreement, an increased assessed value of real property of at least $5
million, the agreement provides for a full refund all abatements previously granted plus interest. The
abatement amount for the current fiscal year was $36,358, with one year remaining.
The City has three additional abatement agreements not listed above becoming effective in future fiscal
years should the grantees meet the obligations of the agreements. The three agreements are for West Gate
Business Park, Peterbilt, and Tyson Sales and Distribution.
380 Agreements
The City Council has the authority under Chapter 380 of the Texas Local Government Code to grant or loan
City funds in order to accomplish specific economic development goals. These incentives are considered on
a case-by-case basis. The City has target industry sectors for recruitment that will be given priority
consideration: aviation/aerospace, advanced manufacturing, renewable energy, research and development,
information technology, supply chain for existing primary employers, and significant consumers of municipal
utilities. Consideration may also be given for projects causing infill redevelopment or other desirable
development objectives and/or any other activity which the City Council determines meets a specific public
purpose for economic development.
Each agreement is based on the contribution in sales or property tax or both. For the fiscal year ended
September 30, 2018, the City rebated sales taxes totaling $2,316,510 and property taxes totaling $114,926, as
detailed in the following agreements:
Denton Crossing In 2001, an agreement was approved for the 500,000 square foot, $50 million
Denton Crossing retail center. The grantee receives one-third of the City sales tax, or 0.5%, generated
by the project for a maximum of fifteen years as reimbursement for public improvement costs related
to the project not to exceed $7,250,000 plus accrued interest. The tax rebates initiated in 2005 and will
terminate in 2020. The tax rebate amount for the current fiscal year was $579,035.
Unicorn Lake In 2004, an agreement was approved for Unicorn Lake, an urban-style mixed-use
development. The grantee receives one-third of the City sales tax, or 0.5%, generated by the project
for a maximum of fifteen years as reimbursement for public improvement costs related to the project
not to exceed $6,664,901 plus accrued interest. The tax rebates initiated in 2010 and will terminate in
2025. The tax rebate amount for the current fiscal year was $75,011.
Rayzor Ranch In 2007, an agreement was approved for the Rayzor Ranch mixed-use development.
The 410-acre project will have over one million square feet of retail and will be built in two phases.
The agreement provides a sales tax reimbursement of one half of the City sales tax, or 0.75%,
generated by the project for public improvement costs, which include the widening of a state highway
bisecting the project. The grantee will receive a maximum of $20 million over a 15 year term for phase
one and a maximum of $48 million over a term of 20 years for phase two. An additional 15% of the
City sales tax, or 0.225%, was added to both phases to offset the hotel and convention center costs
until $5 million is reached. As of the current fiscal year, the tax rebate amount for phase one was
$1,219,390 and the tax rebate amount for phase two was $300,903.
Golden Triangle Mall In 2011, an agreement was approved for a major renovation of the Golden
Triangle Mall. A threshold of a minimum $45 to $65 million was required as an investment into the
property to receive a one half share of the sales tax resulting from the renovations, less a monthly mall
81
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
baseline amount established at $95,898. The total grant payments are estimated between $7.12 and
$9.5 million and may not exceed 15.83% of the required investment. The tax rebates initiated in 2016
and will terminate in 2035. The tax rebate amount for the current fiscal year was $82,163.
Schlumberger In 2010, an agreement was granted to Grand Mesa for the renovation and equipping
of the building for Schlumberger. The agreement was assigned to Schlumberger Technology
Corporation in 2012 equal to one half of new property tax revenue generated for their 150,000 square
foot regional maintenance facility. Agreement thresholds require maintaining $5 million in real
property improvements and business personal property valuation and the creation of 80 jobs with an
average wage of $45,000. The term of the agreement is seven years and will terminate in 2018. In the
event of a failure to meet the conditions of the agreement, the agreement provides for a full refund of
all rebates previously granted plus interest. The tax rebate amount for the current fiscal year was
$51,232.
Mayday Manufacturing In 2012, an agreement was approved for Mayday Manufacturing/Tailwind
Technologies for the relocation of the business and expansion of a manufacturing facility. The
agreement provides a 75% tax rebate on the increment of property tax revenue generated above the
base valuation for a period of ten years. In the event of a failure to meet the conditions of the
agreement, an increased assessed value of real property of at least $3 million, the agreement provides
for a 50% refund of all rebates previously granted. The tax rebate amount for the current fiscal year
was $29,633.
West Gate Business Park In 2015, an agreement was approved for West Gate Business Park (WGBP)
for industrial development and provided for a 70% rebate of increased City property tax revenue
generated for a period of ten years. WGBP includes three multi-tenant buildings totaling 413,000
square feet of new industrial/manufacturing space in the City. In 2016 the agreement was amended to
include a 70% rebate on building 1 improvements and to add a one-time grant payment in the amount
of $50,000. A separate tax abatement agreement for building 2 and 3 was also approved so WGBP
could be eligible to apply for a tax abatement from Denton County. The terms of the agreement include
a 60% abatement of City property taxes attributable to new capital investments resulting in an
increased assessed value of real property improvements. The amount of the abatement may be
increased by an additional 5% for a national headquarters and/or 10% for a supplier in support of
major employers in Denton. The tax rebate amount for the current fiscal year was $34,061.
WinCo Foods In 2015, an agreement was approved for WinCo Foods for a $135 million, 800,000
square foot distribution facility expected to create 165 jobs with an annual payroll of around $7.2
million. In the event of a failure to meet the conditions of the agreement, the agreement provides for
a 20-50% refund of all rebates previously granted, depending on the timing of a failure. Winco
received reimbursement for infrastructure financing from Water and Wastewater funds and a local
sales and use tax grant for the construction and equipping of the facility in prior fiscal years,
completing those portions of the agreement.The active portion of the agreement provides for the
following:
A grant equal to 100% of the incremental property tax generated by the property and paid
into the Tax Increment Fund by both the City and the County, paid annually until the full
reimbursement of the project costs for public improvements is reached. These payments have
not initiated as of the current fiscal year.
A grant equal to 60% of City property taxes attributable to improvements resulting in an
increase of assessed value of real property improvements and tangible personal property,
paid annually until full reimbursement of the project costs for public improvements is
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CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
reached. Once this full reimbursement is reached, the 60% property tax rebate will continue
for a period of four years as long as the increase in investment in improvements is $50 million
excluding purchase price of the property. These payments have not initiated as of the current
fiscal year.
In 2015, an agreemen
Denton for a convention center with a hotel and restaurant located in the Rayzor Ranch Town Center.
The agreement includes a 100% rebate of the property tax (excluding land, inventory, vehicles, and
supplies), hotel occupancy tax, and sales tax generated by the project. The term is for a maximum of
25 years or a combined principal ($28 million) and interest ($26 million) amount of $54 million is
reached, whichever comes first. The agreement also includes 100% rebate of the construction sales
tax up to $850,000, then 50% thereafter. In the event of a failure to meet the conditions of the
agreement, the agreement provides for a 100% refund of all rebates granted in the previous year. The
construction sales tax rebate amount for the current fiscal year was accrued in the amount of $60,008,
and when combrings the total rebate payment made in January 2019
to $396,936. This completes the construction sales tax portion of the agreement. The payments related
to property taxes, hotel occupancy taxes, and general sales taxes will be initiated in the following fiscal
year.
The City has two additional Chapter 380 agreements not listed above becoming effective in future fiscal years
should the grantees meet the obligations of the agreements. The two agreements are for United States Cold
Storage and Sally Beauty. Sally Beauty came online in the following fiscal year and received one payment of
$542. Conditions of the grant require Sally Beauty occupy the improvements continuously for the term of the
grant. As Sally Beauty has announced its intent to close its 3900 Morse Street location, the City will terminate
the grant.
G.Litigation
Various claims and lawsuits are pending against the City. In accordance with GAAP, those judgments
disclosed but not accrued. In the opinion of City management and legal counsel, the maximum amount of all
significant claims considered reasonably possible, excluding condemnation proceedings and the item
described following, is approximately $500,000 as of September 30, 2018. Potential losses after insurance
coverage on all probable claims and lawsuits will not have a material effect on the City's financial position
as of September 30, 2018.
H.Subsequent Events
The City has evaluated all events or transactions that occurred after September 30, 2018 up through February
28, 2019, the date the financial statements were issued. Except for the suspended status of the Gibbons Creek
power generation facility of TMPA, as disclosed in note V.E., there were no significant subsequent events to
disclose.
I.New Accounting Pronouncements
The Governmental Accounting Standards Board (GASB) issued the following statements which became
effective for the fiscal year 2018.
This Statement replaces the requirements of Statements No. 45 and No. 57 related
to OPEB. The primary objective of this Statement is to improve accounting and financial reporting by
state and local governments for postemployment benefits other than pensions, OPEB. It also improves
information provided by state and local governmental employers about financial support for OPEB that
is provided by other entities. This Statement results from a comprehensive review of the effectiveness
of existing standards of accounting and financial reporting for all postemployment benefits (pensions
83
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
and OPEB) with regard to providing decision-useful information and changes the focus of OPEB
accounting from whether the employer is responsibly funding the OPEB benefits to reporting a liability
in the financial statements for any unfunded portion of benefits earned to-date. Implementation resulted
in the restatement of the beginning net position of the governmental activities and the business-type
activities in the government-wide financial statements and the beginning net position of the Statement
of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds and Internal Service
Funds. The restatement included the elimination of the previously reporting OPEB obligation liability,
the recording of the beginning total OPEB liability, and the beginning deferred outflow for OPEB
contributions made subsequent to the measurement date of December 31, 2017. The total adjustment of
$26,312,505 is shown in more detail in footnote I.G. See also footnote V.B.
for disclosure requirements.
- This Statement establishes accounting and
financial reporting standards for irrevocable split-interest agreements created through trusts in which a
donor irrevocably transfers resources to an intermediary, who administers these resources for the
unconditional benefit of a government and at least one other beneficiary. This Statement had no impact
on the financial statements.
This Statement addresses practice issues identified during
implementation and application of certain GASB Statements, a variety of topics including issues related
to blending component units, goodwill, fair value measurement application, and post-employment
benefits.
This Statement improves consistency in
accounting and financial reporting for in-substance defeasance of debt by providing guidance for
transactions in which cash and other monetary assets, other than the proceeds of refunding debt, are
placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves
accounting and financial reporting for prepaid insurance on debt extinguished and notes to financial
statements for debt that is defeased in-substance. The City had no refunding bonds issued during the
current fiscal year, and there was no impact of this Statement on the financial statements.
This Statement establishes and clarifies accounting and financial reporting requirements for pensions
provided to the employees of state or local governmental employers, specifically (1) the presentation of
payroll-related measures in required supplementary information, (2) the selection of assumptions and
the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting
purposes, and (3) the classification of payments made by employers to satisfy employee contribution
requirements.
The following statements for the GASB are effective for future fiscal years ending as listed below. The City
statements.
This Statement addresses accounting and
financial reporting for certain asset retirement obligations, a legally enforceable liability associated with
the retirement of a tangible capital asset. Criteria are established for determining the timing and pattern
of recognition of a liability and a corresponding deferred outflow of resources for these obligations. This
Statement will become effective for the City in fiscal year 2019.
This Statement improves guidance regarding the
identification of fiduciary activities for accounting and financial reporting purposes and how those
activities should be reported. The focus is generally on whether a government is controlling the assets
of the fiduciary activity and on the beneficiaries with whom a fiduciary relationship exists. This
Statement will become effective for the City in fiscal year 2020.
84
CITY OF DENTON, TEXAS
NOTES TO BASIC FINANCIAL STATEMENTS (continued)
SEPTEMBER 30, 2018
This Statement is to improve the accounting and financial reporting for
leases by governments by requiring recognition of certain lease assets and liabilities previously classified
as operating leases. It establishes a single model for lease accounting based on the principle that leases
are financing the right to use an underlying asset. Under this Statement, a lessee is required to recognize
a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources, enhancing the relevance and consistency of information
about leasing activities. This Statement will become effective for the City in fiscal year 2021.
****
85
86
CITY OF DENTON, TEXASExhibit XII
REQUIRED SUPPLEMENTARY INFORMATION
TEXAS MUNICIPAL RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
1
LAST FOUR FISCAL YEARS (PREVIOUS YEARS ARE NOT AVAILABLE)
MeasurementMeasurement
MeasurementMeasurement
YearYear
YearYear
20142015
20162017
Total pension liability:
Service Cost$ 10,667,694$ 12,615,957$ 13,925,238$ 14,514,171
Interest (on the total pension liability)25,182,94126,905,70027,656,65429,543,513
Difference between expected and
actual experience(171,241)(1,525,911)763,5891,514,980
Change of assumptions-(428,789)--
Benefit payments, including refunds of
employee contributions(11,387,617)(12,697,735)(13,023,330)(16,349,644)
Net change in total pension liability24,291,77724,869,22229,322,15129,223,020
Total pension liability - beginning360,116,261384,408,038409,277,260438,599,411
Total pension liability - ending (a)$ 384,408,038$ 409,277,260$ 438,599,411$ 467,822,431
Plan fiduciary net position:
Contributions - employer$ 13,065,763$ 13,615,410$ 14,046,860$ 14,821,752
Contributions - employee4,991,4155,365,2315,712,4646,014,227
Net investment income16,867,596469,53021,947,63548,954,660
Benefit payments, including refunds of
employee contributions(11,387,617)(12,697,735)(13,023,330)(16,349,644)
Administrative expense(176,083)(285,957)(247,766)(253,578)
Other(14,477)(14,123)(13,349)(12,851)
Net change in plan fiduciary net position23,346,5976,452,35628,422,51453,174,566
Plan fiduciary net position - beginning294,819,596318,166,193324,618,549353,041,063
Plan fiduciary net position - ending (b)$ 318,166,193$ 324,618,549$ 353,041,063$ 406,215,629
Net pension liability - ending (a) - (b)$ 66,241,845$ 84,658,711$ 85,558,348$ 61,606,802
Plan fiduciary net position as a percentage of
total pension liability82.77%79.32%80.49%86.83%
Covered payroll$ 71,025,494$ 76,646,157$ 81,481,789$ 85,227,078
Net pension liability as a percentage of
covered payroll93.26%110.45%105.00%72.29%
1
Schedule is intended to present information for ten years. Additional years of information will be presented
as they become available.
87
CITY OF DENTON, TEXASExhibit XIII
REQUIRED SUPPLEMENTARY INFORMATION
TEXAS MUNICIPAL RETIREMENT SYSTEM
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS (Unaudited)
(a)(b)(c)(d)
ContributionsContributions
in Relation toContributionas a Percentage
Actuariallythe ActuariallyExcessof Covered
FiscalDeterminedDetermined(Deficiency)CoveredPayroll
YearContributionsContributions(b) - (a)Payroll(b)/(d)
20099,709,2797,952,938(1,756,341)57,250,10813.89%
201011,194,0868,849,577(2,344,509)59,457,34514.88%
201111,580,0859,579,358(2,000,727)58,139,68816.48%
201211,475,70210,435,001(1,040,701)60,340,21217.29%
201312,174,64012,171,482(3,158)64,940,23418.74%
201412,912,74612,911,461(1,285)69,872,02418.48%
201513,507,27213,507,272-75,379,63217.92%
201614,435,63814,435,638-83,127,60117.37%
201714,648,60614,648,606-84,753,37717.28%
201814,931,80014,931,800-86,832,07417.20%
Notes to Schedule:
Actuarial determined contribution rates are calculated as of December 31st and become effective in January, 13 months
later. Contributions above do not include contributions into the supplemental death benefit fund.
Methods and assumptions used to determine contribution rate for 2018:
Actuarial Cost MethodEntry Age Normal
Amortization MethodLevel Percentage of Payroll, Closed
Remaining Amortization Period28 Years (Equivalent Single Amortization Period of 17.1 years)
Asset Valuation Method10 Year Smoothed Market; 15% Soft Corridor
Inflation2.50%
Salary Increases3.50% to 10.50% including inflation
Investment Rate of Return6.75%
Retirement AgeExperience-based table of rates that are specific to the City's plan of benefits.
Last updated for the 2015 valuation pursuant to an experience study of the
period 2010 - 2014.
MortalityRP2000 Combined Mortality Table with Blue Collar Adjustment with male rates
multiplied by 109% and female rates multiplied by 103% and projected on a fully
generational basis with scale BB.
88
CITY OF DENTON, TEXASExhibit XIV
REQUIRED SUPPLEMENTARY INFORMATION
DENTON FIREMEN'S RELIEF AND RETIREMENT FUND
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
1
LAST FOUR FISCAL YEARS (PREVIOUS YEARS ARE NOT AVAILABLE)
MeasurementMeasurementMeasurementMeasurement
YearYearYearYear
2014201520162017
Total pension liability:
Service Cost$ 2,747,253$ 2,836,263$ 3,089,911$ 3,182,608
Interest (on the total pension liability)5,685,3965,998,9596,135,5886,493,255
Difference between expected and actual experience-(2,063,421)-2,040,716
Change of assumptions-2,331,908--
Benefit payments, including refunds of
employee contributions(4,036,009)(4,048,358)(4,270,006)(3,768,829)
Net change in total pension liability4,396,6405,055,3514,955,4937,947,750
Total pension liability - beginning80,490,69484,887,33489,942,68594,898,178
Total pension liability - ending (a)$ 84,887,334$ 89,942,685$ 94,898,178$ 102,845,928
Plan fiduciary net position:
Contributions - employer$ 2,566,875$ 2,567,219$ 2,759,844$ 2,979,807
Contributions - employee1,745,4191,803,0641,997,1552,142,990
Net investment income4,411,066(3,287,188)6,935,2158,793,234
Benefit payments, including refunds of
employee contributions(4,036,009)(4,048,358)(4,270,006)(3,768,829)
Administrative expense(81,005)(76,538)(94,175)(63,669)
Net change in plan fiduciary net position4,606,346(3,041,801)7,328,03310,083,533
Plan fiduciary net position - beginning66,412,17271,018,51867,976,71775,304,750
Plan fiduciary net position - ending (b)$ 71,018,518$ 67,976,717$ 75,304,750$ 85,388,283
Net pension liability - ending (a) - (b)$ 13,868,816$ 21,965,968$ 19,593,428$ 17,457,645
Plan fiduciary net position as a percentage of
total pension liability83.66%75.58%79.35%83.03%
Covered payroll$ 14,238,486$ 14,310,032$ 15,850,437$ 17,007,857
Net pension liability as a percentage of
covered payroll97.40%153.50%123.61%102.64%
1
Schedule is intended to present information for ten years. Additional years of information will be presented
as they become available.
89
CITY OF DENTON, TEXASExhibit XV
REQUIRED SUPPLEMENTARY INFORMATION
FIREMEN'S RELIEF AND RETIREMENT FUND
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS (Unaudited)
(a)(b)(c)(d)
ContributionsContributions
in Relation toContributionas a Percentage
Annualthe AnnualExcessof Covered
FiscalRequiredRequired(Deficiency)CoveredPayroll
YearContributionsContributions(b) - (a)Payroll(b)/(d)
20091,747,9081,747,908-12,485,06114.00%
20101,976,4191,976,419-13,070,04115.12%
20112,141,6622,141,662-12,828,44616.69%
20122,253,6672,253,667-12,899,80017.47%
20132,579,4532,579,453-13,629,82518.93%
20142,576,6522,576,652-13,828,07018.63%
20152,535,7192,535,719-14,029,05118.07%
20162,819,0462,819,046-15,540,82618.14%
20172,924,7572,924,757-16,747,21717.46%
20183,310,2483,310,248-18,080,01418.31%
Notes to Schedule:
Annual required contributions are not actuarially determined. According to a City ordinance, since December 2017 the City
contributes to the Firemen's Relief and Retirement Fund at the rate of 18.5%, the assumed actuarial valuation rate over the
unfunded liability amortization period.
While the contribution requirements are not actuarially determined, state law requires an actuary certify the assumed City
contribution rate is adequate. Methods and assumptions used to contribution adequacy for fiscal year 2018:
Actuarial Cost MethodEntry Age
Amortization MethodLevel Percentage of Payroll, Open
Remaining Amortization Period15 Years
Asset Valuation Method5-year smoothing
Inflation2.50%
Salary Increases3.00% annual general compensation increase plus promotion, step, and longevity
increases which average 1.98% per year over a 30-year career
Investment Rate of Return6.75%, net of pension plan investment expense, including inflation
Retirement AgeAverage expected age at retirement of 57
MortalityRP-2000 Combined Healthy Mortality Tables projected to 2024 for males and for
females (sex distinct)
90
CITY OF DENTON, TEXASExhibit XVI
REQUIRED SUPPLEMENTARY INFORMATION
MEDICAL OTHER POST-EMPLOYMENT BENEFITS
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
1
LAST FISCAL YEAR (PREVIOUS YEARS ARE NOT AVAILABLE)
Measurement
Year
2017
Total OPEB liability:
Service Cost$ 1,750,172
Interest (on the total OPEB liability)1,360,179
Change of assumptions or other inputs2,067,787
Benefit payments(742,818)
Net change in total OPEB liability4,435,320
Total OPEB liability - beginning35,196,570
Total OPEB liability - ending$ 39,631,890
Covered-employee payroll$ 104,783,403
Net pension liability as a percentage of
covered-employee payroll37.82%
1
Schedule is intended to present information for ten years. Additional years of information will be presented
as they become available.
Methods and assumptions used to determine contribution rate for 2018:
Actuarial cost methodIndividual Entry-Age Normal
Discount rate3.31% (Based on the Fidelity Index's "20-Year Municipal GO AA
Index" rates as of December 31, 2017.) The prior year discount rate was
4.00%.
Inflation rate2.50%
Projected salary increases3.5% to 10.5% including inflation
Healthcare trend ratesInitial rate of 7.50% declining to an ultimate rate of 4.25% after 15
years.
MortalityRP2000 Combined Mortality Table with Blue Collar Adjustment with
male rates multiplied by 109% and female rates multiplied by 103% and
projected on a fully generational basis with scale BB.
Participation rates60% for retirees age 65 or older at retirement
45% for retirees between the ages of 50 and 64 at retirement
0% for retirees under age 50 at retirement
91
CITY OF DENTON, TEXASExhibit XVII
REQUIRED SUPPLEMENTARY INFORMATION
TEXAS MUNICIPAL RETIREMENT SYSTEM - SUPPLEMENTAL DEATH BENEFIT FUND
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
1
LAST FISCAL YEAR (PREVIOUS YEARS ARE NOT AVAILABLE)
Measurement
Year
2017
Total OPEB liability:
Service Cost$ 144,886
Interest (on the total OPEB liability)106,885
Change of assumptions or other inputs270,541
Benefit payments(17,045)
Net change in total OPEB liability505,267
Total OPEB liability - beginning2,763,726
Total OPEB liability - ending$ 3,268,993
Covered-employee payroll$ 85,227,078
Net pension liability as a percentage of
covered-employee payroll3.84%
1
Schedule is intended to present information for ten years. Additional years of information will be presented
as they become available.
Methods and assumptions used to determine contribution rate for 2018:
Inflation rate2.50% per annum
Discount rate3.31% (Based on the Fidelity Index's "20-Year Municipal GO AA Index"
rates as of December 31, 2017.) The prior year discount rate was 3.78%.
Actuarial cost methodEntry Age Normal
Projected salary increases3.5% to 10.5% including inflation
MortalityRP2000 Combined Mortality Table with Blue Collar Adjustment with male
rates multiplied by 109% and female rates multiplied by 103% and
projected on a fully generational basis with scale BB.
92
CITY OF DENTON, TEXASExhibit XVIII
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Adjustments -Actual on aFinal Budget -
Budgeted AmountsActualBudgetaryBudgetaryPositive
OriginalFinalAmountsBasisBasis(Negative)
REVENUES:
Taxes$ 21,443,770$21,443,770$21,480,611$ -$21,480,611$ 36,841
Investment revenue
200,000200,000288,340 -288,340 88,340
Total revenues 21,643,77021,643,77021,768,951 -21,768,951125,181
EXPENDITURES:
Debt service:
21,941,087
Principal, interest and fiscal charges 85,790,96485,810,96463,854,71985,795,806 15,158
Total expenditures 85,790,96485,810,96421,941,08763,854,71985,795,806 15,158
Excess (deficiency) of revenues
over (under) expenditures (64,147,194)(64,167,194)(172,136)(63,854,719)(64,026,855)140,339
OTHER FINANCING SOURCES (USES):
Transfers in 64,147,19464,147,194292,47563,854,71964,147,194 -
Total other financing sources (uses) 64,147,19464,147,194292,47563,854,71964,147,194 -
Net change in fund balance -(20,000)120,339 -120,339140,339
Fund balance at beginning of year
5,409,1445,409,1445,409,144 -5,409,144 -
Fund balance at end of year$ 5,409,144$5,389,144$5,529,483$ -$5,529,483$140,339
Adjustments - Budgetary Basis are pass-through debt service payments
budgeted as transfers in from enterprise and internal service funds.
Other Financing Sources (Uses) related to refunding are adjusted out as
they are non-budgeted items reducing future debt service payments.
93
94
95
CITY OF DENTON, TEXASExhibit XIX
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
AS OF SEPTEMBER 30, 2018
Special Revenue Funds
CommunityTourist
DevelopmentCriminalPolice and
Block GrantRecreationJusticeConfiscationConvention
ASSETS
Cash, cash equivalents and investments,
at fair value$ -$ 391,545$ -$ 317,581$ 2,185,606
Receivables (net of allowances):
Taxes----253,507
Accrued interest-1,906-1,55210,682
Other-5,2027,849--
Due from other governments534,802-135,686--
Total assets$ 534,802$ 398,653$ 143,535$ 319,133$ 2,449,795
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable134,76834,8972,778--
Interfund payables347,978-140,757--
Retainage payable-----
Unearned revenues-----
Total liabilities482,74634,897143,535--
DEFERRED INFLOWS OF RESOURCES:
34,3842,74953,372--
Unavailable revenue - intergovernmental
34,3842,74953,372--
Total deferred inflows of revenues
FUND BALANCES (DEFICIT):
Restricted for:
-----
Parks and recreation
-----
Streets and drainage projects
52,056--319,1332,449,795
Other grants and purposes
Committed to:
-----
Streets
-361,007---
Parks and recreation
-----
Other purposes
Assigned to:
-----
Other purposes
Unassigned(34,384)-(53,372)--
Total fund balance (deficit)17,672361,007(53,372)319,1332,449,795
Total liabilities, deferred inflows of
$ 534,802$ 398,653$ 143,535$ 319,133$ 2,449,795
resources, and fund balances (deficit)
(continued on the following page)
96
CITY OF DENTON, TEXASExhibit XIX
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (concluded)
AS OF SEPTEMBER 30, 2018
Special Revenue FundsTotal
Citizens'Nonmajor
StreetGas WellParkAllGovernmental
ImprovementRevenuesTrustsOtherFunds
ASSETS
Cash, cash equivalents and investments,
at fair value$ 1,920,445$ 84,619$ 5,620,642$ 10,550,825$ 21,071,263
Receivables (net of allowances):-
Taxes----253,507
Accrued interest9,38641427,47251,571102,983
Other-12,873-300,066325,990
Due from other governments---1,109,6981,780,186
Total assets$ 1,929,831$ 97,906$ 5,648,114$ 12,012,160$ 23,533,929
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable306,404-262,528644,7421,386,117
Interfund payables----488,735
Retainage payable--4,463-4,463
Unearned revenues---22,75022,750
Total liabilities306,404-266,991667,4921,902,065
DEFERRED INFLOWS OF RESOURCES:
-1,153-858,679950,337
Unavailable revenue - intergovernmental
-1,153-858,679950,337
Total deferred inflows of revenues
FUND BALANCES (DEFICIT):
Restricted for:
-96,7535,381,12386,1385,564,014
Parks and recreation
---3,767,6163,767,616
Streets and drainage projects
---4,337,8597,158,843
Other grants and purposes
Committed to:
1,623,427---1,623,427
Streets
----361,007
Parks and recreation
---3,150,4913,150,491
Other purposes
Assigned to:
---5959
Other purposes
Unassigned---(856,174)(943,930)
Total fund balance (deficit)1,623,42796,7535,381,12310,485,98920,681,527
Total liabilities, deferred inflows of
$ 1,929,831$ 97,906$ 5,648,114$ 12,012,160$ 23,533,929
resources, and fund balances (deficit)
(concluded)
97
CITY OF DENTON, TEXASExhibit XX
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Special Revenue Funds
CommunityTourist
DevelopmentCriminalPolice and
Block GrantRecreationJusticeConfiscationConvention
REVENUES:
Tax revenue$ -$ -$ -$ -$ 2,733,720
Franchise fees-----
Fines and forfeitures---41,105-
Fees for services-1,897,758---
Investment revenue-5,185-5,82427,912
Intergovernmental1,431,735-218,099--
Miscellaneous335,39162,239--430
Total revenues1,767,1261,965,182218,09946,9292,762,062
EXPENDITURES:
General government1,755,477---2,452,042
Public safety--252,07381,131-
Public works-----
Parks and recreation-1,843,057---
Capital outlay---119,584-
Total expenditures1,755,4771,843,057252,073200,7152,452,042
Excess (deficiency) of revenues over (under)
expenditures11,649122,125(33,974)(153,786)310,020
OTHER FINANCING SOURCES (USES):
Sale of capital assets-----
Transfers in-----
Transfers out-(200,928)--(115,252)
Total other financing sources (uses)-(200,928)--(115,252)
Net change in fund balances11,649(78,803)(33,974)(153,786)194,768
Fund balance (deficit) at beginning of year6,023439,810(19,398)472,9192,255,027
Fund balance (deficit) at end of year$ 17,672$ 361,007$ (53,372)$ 319,133$ 2,449,795
(continued on the following page)
98
CITY OF DENTON, TEXASExhibit XX
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (concluded)
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Special Revenue Funds
Total
Citizens'Nonmajor
StreetGas WellParkAllGovernmental
ImprovementRevenuesTrustsOtherFunds
REVENUES:
Tax revenue$ -$ -$ -$ 867,486$ 3,601,206
Franchise fees12,743,755---12,743,755
Fines and forfeitures---1,975,6202,016,725
Fees for services292,51791,664621,074410,2633,313,276
Investment revenue93370361,64559,388161,590
Intergovernmental---3,153,2334,803,067
Miscellaneous1,647--3,774,5684,174,275
Total revenues13,038,85292,367682,71910,240,55830,813,894
EXPENDITURES:
General government---508,1534,715,672
Public safety---2,508,5902,841,794
Public works10,968,166---10,968,166
Parks and recreation--5,313279,5372,127,907
Capital outlay--937,601372,6731,429,858
Total expenditures10,968,166-942,9143,668,95322,083,397
Excess (deficiency) of revenues over (under)
expenditures2,070,68692,367(260,195)6,571,6058,730,497
OTHER FINANCING SOURCES (USES):
Sale of capital assets114,351---114,351
Transfers in1,034,581-66,443224,3351,325,359
Transfers out(2,754,858)(100,000)-(1,727,020)(4,898,058)
Total other financing sources (uses)(1,605,926)(100,000)66,443(1,502,685)(3,458,348)
Net change in fund balances464,760(7,633)(193,752)5,068,9205,272,149
Fund balance (deficit) at beginning of year1,158,667104,3865,574,8755,417,06915,409,378
Fund balance (deficit) at end of year$ 1,623,427$ 96,753$ 5,381,123$ 10,485,989$ 20,681,527
(concluded)
99
CITY OF DENTON, TEXASExhibit XXI
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
SPECIAL REVENUE FUNDS: RECREATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Adjustments -Actual on aFinal Budget -
Budgeted AmountsActualBudgetaryBudgetaryPositive
OriginalFinalAmountsBasisBasis(Negative)
REVENUES:
Fees for services$2,113,074$2,113,074$1,897,758$ -$1,897,758$ (215,316)
Investment revenue5,5005,5005,185-5,185(315)
Miscellaneous25,00025,00062,239-62,23937,239
Total revenues2,143,5742,143,5741,965,182-1,965,182(178,392)
EXPENDITURES:
Parks and recreation1,985,8351,984,9071,843,057(205,848)1,637,209347,698
Total expenditures1,985,8351,984,9071,843,057(205,848)1,637,209347,698
Excess of revenues
over expenditures157,739158,667122,125205,848327,973169,306
OTHER FINANCING USES:
Transfers out(407,739)(408,667)(200,928)(205,848)(406,776)1,891
Total other financing uses(407,739)(408,667)(200,928)(205,848)(406,776)1,891
Net change in fund balance(250,000)(250,000)(78,803)-(78,803)171,197
Fund balance at beginning of year439,810439,810439,810-439,810-
Fund balance at end of year$ 189,810$ 189,810$ 361,007$ -$ 361,007$ 171,197
Adjustments - Budgetary Basis are expenditures allocated from and reimbursed to other funds. These
expenditures are recorded as operating expenditures but budgeted as cost of service transfers.
100
CITY OF DENTON, TEXASExhibit XXII
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
SPECIAL REVENUE FUNDS: POLICE CONFISCATION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Adjustments -Actual on aFinal Budget -
Budgeted AmountsActualBudgetaryBudgetaryPositive
OriginalFinalAmountsBasisBasis(Negative)
REVENUES:
Fines and forfeitures$210,000$210,000$ 41,105$ -$ 41,105$ (168,895)
Investment revenue3,5003,5005,824-5,8242,324
Miscellaneous50,00050,000---(50,000)
Total revenues263,500263,50046,929-46,929(216,571)
EXPENDITURES:
Public safety255,000255,00081,131-81,131173,869
Capital outlay120,584120,584119,584-119,5841,000
Total expenditures375,584375,584200,715-200,715174,869
Net change in fund balance(112,084)(112,084)(153,786)-(153,786)(41,702)
Fund balance at beginning of year472,919472,919472,919-472,919-
Fund balance at end of year$360,835$360,835$ 319,133$ -$ 319,133$ (41,702)
101
CITY OF DENTON, TEXASExhibit XXIII
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
SPECIAL REVENUE FUNDS: TOURIST AND CONVENTION FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Adjustments -Actual on aFinal Budget -
Budgeted AmountsActualBudgetaryBudgetaryPositive
OriginalFinalAmountsBasisBasis(Negative)
REVENUES:
Taxes$3,052,174$3,052,174$2,733,720$ -$2,733,720$ (318,454)
Investment revenue--27,912-27,91227,912
Miscellaneous--430-430430
Total revenues3,052,1743,052,1742,762,062-2,762,062(290,112)
EXPENDITURES:
General government3,287,7643,172,5122,452,042-2,452,042720,470
Total expenditures3,287,7643,172,5122,452,042-2,452,042720,470
Excess (deficit) of revenues
over (under) expenditures(235,590)(120,338)310,020-310,020430,358
OTHER FINANCING
SOURCES:
Transfers out-(115,252)(115,252)-(115,252)-
Total other financing sources-(115,252)(115,252)-(115,252)-
Net change in fund balance(235,590)(235,590)194,768-194,768430,358
Fund balance at beginning of year2,255,0272,255,0272,255,027-2,255,027-
Fund balance at end of year$2,019,437$2,019,437$2,449,795$ -$2,449,795$ 430,358
102
CITY OF DENTON, TEXASExhibit XXIV
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
SPECIAL REVENUE FUNDS: STREET IMPROVEMENT FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Adjustments -Actual on aFinal Budget -
Budgeted AmountsActualBudgetaryBudgetaryPositive
OriginalFinalAmountsBasisBasis(Negative)
REVENUES:
Franchise fees$12,476,060$12,476,060$12,743,755$ -$12,743,755$ 267,695
Fees for services357,000357,000292,517-292,517(64,483)
Investment revenue10,00010,000933-933(9,067)
Miscellaneous--1,647-1,6471,647
Total revenues12,843,06012,843,06013,038,852-13,038,852195,792
EXPENDITURES:
Public Works13,660,01510,975,48810,968,166(115,015)10,853,151122,337
Debt service:
Principal retirement59,16559,165---59,165
Interest and other charges------
Total expenditures13,719,18011,034,65310,968,166(115,015)10,853,151181,502
Excess (deficit) of revenues
over (under) expenditures(876,120)1,808,4072,070,686115,0152,185,701377,294
OTHER FINANCING
SOURCES (USES):
Sale of capital assets--114,351-114,351114,351
Transfers in1,118,1351,118,1351,034,581-1,034,581(83,554)
Transfers out(242,015)(2,926,542)(2,754,858)(115,015)(2,869,873)56,669
Total other financing sources (uses)876,120(1,808,407)(1,605,926)(115,015)(1,720,941)87,466
Net change in fund balance--464,760-464,760464,760
Fund balance at beginning of year1,158,6671,158,6671,158,667-1,158,667-
Fund balance at end of year$ 1,158,667$ 1,158,667$ 1,623,427$ -$ 1,623,427$ 464,760
Adjustments - Budgetary Basis are expenditures allocated from and reimbursed to other funds. These
expenditures are recorded as operating expenditures but budgeted as cost of service transfers.
103
CITY OF DENTON, TEXASExhibit XXV
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
SPECIAL REVENUE FUNDS: GAS WELL REVENUES FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Adjustments -Actual on aFinal Budget -
Budgeted AmountsActualBudgetaryBudgetaryPositive
OriginalFinalAmountsBasisBasis(Negative)
REVENUES:
Fees for service$ 50,000$ 5 0,000$ 91,664$ -$ 91,664$ 41,664
Investment revenue1,0001,000703-703(297)
Miscellaneous------
Total revenues51,00051,00092,367-92,36741,367
OTHER FINANCING
USES:
Transfers out(100,000)(100,000)(100,000)-(100,000)-
Total other financing uses(100,000)(100,000)(100,000)-(100,000)-
Net change in fund balance(49,000)(49,000)(7,633)-(7,633)41,367
Fund balance at beginning of year104,386104,386104,386-104,386-
Fund balance at end of year$ 55,386$ 5 5,386$ 96,753$ -$ 96,753$ 41,367
104
CITY OF DENTON, TEXASExhibit XXVI
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
SPECIAL REVENUE FUNDS: CITIZENS' PARK TRUSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Adjustments -Actual on aFinal Budget -
Budgeted AmountsActualBudgetaryBudgetaryPositive
OriginalFinalAmountsBasisBasis(Negative)
REVENUES:
Fees for service$ 300,000$ 300,000$ 621,074$ -$ 621,074$ 321,074
Investment revenue45,00045,00061,645-61,64516,645
Total revenues345,000345,000682,719-682,719337,719
EXPENDITURES:
Parks and recreation--5,313-5,313(5,313)
Capital outlay900,0001,100,000937,601-937,601162,399
Total expenditures900,0001,100,000942,914-942,914157,086
Deficit of revenues
under expenditures(555,000)(755,000)(260,195)-(260,195)494,805
OTHER FINANCING
USES:
Transfers in--66,443-66,44366,443
Total other financing uses--66,443-66,44366,443
Net change in fund balance(555,000)(755,000)(193,752)-(193,752)561,248
Fund balance at beginning of year5,574,8755,574,8755,574,875-5,574,875-
Fund balance at end of year$5,019,875$4,819,875$5,381,123$ -$5,381,123$ 561,248
105
106
107
CITY OF DENTON, TEXASExhibit XXVII
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
AS OF SEPTEMBER 30, 2018
Materials Fleet HealthRisk
ManagementServicesInsuranceRetention
FundFundFundFund
ASSETS:
Current assets:
Cash, cash equivalents and investments,
at fair value$ 280,720$ 1,818,793$ 4,874,945$ 3,337,093
Receivables, net of allowances:
Accrued interest-8,89023,82716,310
Other-107,938--
Merchandise inventory6,478,205105,393--
Prepaid items11,437-148,457-
Total current assets6,770,3622,041,0145,047,2293,353,403
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments,
at fair value----
Accrued interest----
Escrow deposit--189,000-
Capital assets, net of accumulated depreciation754,7304,399,284--
Total noncurrent assets754,7304,399,284189,000-
Total assets7,525,0926,440,2985,236,2293,353,403
DEFERRED OUTFLOWS OF RESOURCES:
Deferred charges on refunding13,5316,089--
Deferred pension balances258,581306,182-158,506
Deferred other post employment benefits balances43,60845,927-22,185
Total deferred outflows of resources315,720358,198-180,691
LIABILITIES:
Current liabilities:
Accounts payable247,870604,673-43,963
Claims payable--1,974,963447,400
Compensated absences payable54,998103,737-42,662
Accrued interest1,1351,891--
Interfund payables5,065,000---
Payable from restricted assets:
Certificate and general obligation bonds44,871240,155--
Total current liabilities5,413,874950,4561,974,963534,025
Noncurrent liabilities:
Payable from restricted assets:
General obligation bonds payable185,66065,873--
Certificates of obligation-120,641--
Compensated absences payable1,29336,362-18,876
Claims payable---2,361,155
692,374875,625-445,253
Net pension liability
641,311673,643-324,253
Total other post-employment benefits liability
Total noncurrent liabilities:1,520,6381,772,144-3,149,537
Total liabilities6,934,5122,722,6001,974,9633,683,562
DEFERRED INFLOWS OF RESOURCES:
Deferred pension balances242,856275,798-144,555
Total deferred inflows of resources242,856275,798-144,555
NET POSITION:
537,7303,978,704--
Net investment in capital assets
----
Restricted for capital acquisition
Unrestricted125,714(178,606)3,261,266(294,023)
Total net position$ 663,444$ 3,800,098$ 3,261,266$ (294,023)
(continued on the following page)
108
CITY OF DENTON, TEXASExhibit XXVII
COMBINING STATEMENT OF NET POSITION (concluded)
INTERNAL SERVICE FUNDS
AS OF SEPTEMBER 30, 2018
Total
Technology EngineeringInternal
ServicesServicesService
FundFundFunds
ASSETS:
Current assets:
Cash, cash equivalents and investments,
at fair value$ 7,264,453$ 977,347$ 18,553,351
Receivables, net of allowances:
Accrued interest35,5064,77789,310
Other--107,938
Merchandise inventory--6,583,598
Prepaid items123,869-283,763
Total current assets7,423,828982,12425,617,960
Noncurrent assets:
Restricted assets:
Cash, cash equivalents and investments,
at fair value4,137,449-4,137,449
Accrued interest20,222-20,222
Escrow deposit--189,000
Capital assets, net of accumulated depreciation3,216,93590,8368,461,785
Total noncurrent assets7,374,60690,83612,808,456
Total assets14,798,4341,072,96038,426,416
DEFERRED OUTFLOWS OF RESOURCES:
Deferred charges on refunding59-19,679
Deferred pension balances837,515634,7502,195,534
Deferred other post employment benefits balances103,58869,602284,910
Total deferred outflows of resources941,162704,3522,500,123
LIABILITIES:
Current liabilities:
Accounts payable759,279145,7871,801,572
Claims payable--2,422,363
Compensated absences payable238,295164,496604,188
Accrued interest38-3,064
Interfund payables--5,065,000
Payable from restricted assets:
Certificate and general obligation bonds10,101-295,127
Total current liabilities1,007,713310,28310,191,314
Noncurrent liabilities:
Payable from restricted assets:
General obligation bonds payable--251,533
Certificates of obligation--120,641
Compensated absences payable20,3728,83685,739
Claims payable--2,361,155
2,087,3171,603,5775,704,146
Net pension liability
1,499,8191,001,5244,140,550
Total other post-employment benefits liability
Total noncurrent liabilities:3,607,5082,613,93712,663,764
Total liabilities4,615,2212,924,22022,855,078
DEFERRED INFLOWS OF RESOURCES:
Deferred pension balances818,305614,1482,095,662
Total deferred inflows of resources818,305614,1482,095,662
NET POSITION:
3,206,89390,8367,814,163
Net investment in capital assets
4,157,671-4,157,671
Restricted for capital acquisition
Unrestricted2,941,506(1,851,892)4,003,965
Total net position$ 10,306,070$ (1,761,056)$ 15,975,799
(concluded)
109
CITY OF DENTON, TEXASExhibit XXVIII
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Materials Fleet HealthRisk
ManagementServicesInsuranceRetention
FundFundFundFund
OPERATING REVENUES:
Charges for goods and services$ 10,943,897$ 10,334,892$26,017,794$2,935,274
Miscellaneous120,7696,445891,72741,834
Total operating revenues11,064,66610,341,33726,909,5212,977,108
OPERATING EXPENSES:
Operating expenses before depreciation11,172,3929,696,27228,552,3953,942,471
Depreciation19,297217,838--
Total operating expenses11,191,6899,914,11028,552,3953,942,471
Operating income (loss)(127,023)427,227(1,642,874)(965,363)
NONOPERATING REVENUES (EXPENSES):
Investment revenue3,29913,17560,79941,930
Interest expense and fiscal charges(11,435)(13,613)--
Gain on disposal of capital assets2,7567,480--
Total non-operating revenues (expenses)(5,380)7,04260,79941,930
Income (loss) before contributions and transfers(132,403)434,269(1,582,075)(923,433)
Capital contributions----
Transfers in----
Transfers out---(8,500)
Change in net position(132,403)434,269(1,582,075)(931,933)
Net position at beginning of year - as previously stated1,235,0313,783,3234,843,341863,295
Prior period adjustment (Note I.E)(439,184)(417,494)-(225,385)
Net position at beginning of year795,8473,365,8294,843,341637,910
Total net position at end of year$ 663,444$ 3,800,098$ 3,261,266$ (294,023)
(continued on the following page)
110
CITY OF DENTON, TEXASExhibit XXVIII
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION (concluded)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Total
Technology EngineeringInternal
ServicesServicesService
FundFundFunds
OPERATING REVENUES:
Charges for goods and services$14,033,366$ 5,011,366$69,276,589
Miscellaneous47,433-1,108,208
Total operating revenues14,080,7995,011,36670,384,797
OPERATING EXPENSES:
Operating expenses before depreciation10,783,0674,991,93769,138,534
Depreciation1,634,15218,2711,889,558
Total operating expenses12,417,2195,010,20871,028,092
Operating income (loss)1,663,5801,158(643,295)
NONOPERATING REVENUES (EXPENSES):
Investment revenue66,78214,242200,227
Interest expense and fiscal charges(11,494)-(36,542)
Gain on disposal of capital assets--10,236
Total non-operating revenues (expenses)55,28814,242173,921
Income (loss) before contributions and transfers1,718,86815,400(469,374)
Capital contributions-52,87652,876
Transfers in5,702,000-5,702,000
Transfers out(41,520)(90,289)(140,309)
Change in net position7,379,348(22,013)5,145,193
Net position at beginning of year - as previously stated3,980,703(1,102,261)13,603,432
Prior period adjustment (Note I.E)(1,053,981)(636,782)(2,772,826)
Net position at beginning of year2,926,722(1,739,043)10,830,606
Total net position at end of year$10,306,070$ (1,761,056)$15,975,799
(concluded)
111
Exhibit XXIX
CITY OF DENTON, TEXAS
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
MaterialsFleetHealthRisk
ManagementServicesInsuranceRetention
FundFundFundFund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers$ 11,064,666$ 10,324,954$ 26,909,521$ 3,189,198
Cash paid to employees for services(1,484,460)(1,706,500)-(856,436)
Cash paid to suppliers(9,254,417)(7,945,086)(28,553,228)(2,819,111)
Net cash provided (used) by operations325,789673,368(1,643,707)(486,349)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers out---(8,500)
Transfers in----
Net cash provided (used) by noncapital
financing activities---(8,500)
CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES:
Principal payments on capital debt(37,716)(237,366)--
Interest and fiscal charges(9,802)(20,030)--
Principal payments under capital lease obligation----
Proceeds from capital contributions and transfers in----
Acquisition and construction of capital assets(14,693)(285,823)--
Net cash provided (used) by capital financing activities (62,211)(543,219)--
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale and maturities of investment securities-579,5543,404,5041,780,722
Purchase of investment securities-(338,723)(1,035,508)(711,606)
Interest received on investments3,29911,67665,41342,322
Net cash provided (used) by investing activities 3,299252,5072,434,4091,111,438
Net increase in cash and cash equivalents266,877382,656790,702616,589
Cash and cash equivalents at beginning of year13,843201,174774,148454,613
Cash and cash equivalents at end of year280,720583,8301,564,8501,071,202
Investments, at fair value -1,234,9633,310,0952,265,891
Cash, cash equivalents and investments, at fair value$ 280,720$ 1,818,793$ 4,874,945$ 3,337,093
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)$ (127,023)$ 427,227$ (1,642,874)$ (965,363)
Adjustments:
Depreciation expense19,297217,838--
Decrease (Increase) in receivables-(16,383)-212,090
Decrease in inventories952,5617,025--
Decrease (Increase) in prepaid items(503)-(148,457)-
Increase (Decrease) in accounts payable(515,965)(20,487)147,624249,105
Increase (decrease) in compensated absences(1,856)22,425-795
Decrease in interfund payables(35,000)---
Decrease in net pension balances(4,488)(5,075)-(2,664)
Increase in other post-employment benefit balances38,76640,798-19,688
Total adjustments452,812246,141(833)479,014
Net cash provided (used) by operating activities$ 325,789$ 673,368$ (1,643,707)$ (486,349)
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:
Decrease in fair value of investments-(6,050)(13,262)(10,025)
Capital asset contributions----
(continued on the following page)
112
Exhibit XXIX
CITY OF DENTON, TEXAS
COMBINING STATEMENT OF CASH FLOWS (concluded)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Total
TechnologyEngineeringInternal
ServicesServicesService
FundFundFunds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers$ 14,080,799$ 5,011,366$ 70,580,504
Cash paid to employees for services(4,752,302)(3,647,522)(12,447,220)
Cash paid to suppliers(5,691,599)(1,470,879)(55,734,320)
Net cash provided (used) by operations3,636,898(107,035)2,398,964
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers out(41,520)(90,289)(140,309)
Transfers in167,000-167,000
Net cash provided (used) by noncapital
financing activities125,480(90,289)26,691
CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES:
Principal payments on capital debt(10,000)-(285,082)
Interest and fiscal charges(11,614)-(41,446)
Principal payments under capital lease obligation(443,839)-(443,839)
Proceeds from capital contributions and transfers in5,535,000-5,535,000
Acquisition and construction of capital assets(2,331,208)-(2,631,724)
Net cash provided (used) by capital financing activities 2,738,339-2,132,909
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale and maturities of investment securities1,445,241553,5667,763,587
Purchase of investment securities(4,902,534)(196,261)(7,184,632)
Interest received on investments32,51114,578169,799
Net cash provided (used) by investing activities (3,424,782)371,883748,754
Net increase in cash and cash equivalents3,075,935174,5595,307,318
Cash and cash equivalents at beginning of year584,059139,1682,167,005
Cash and cash equivalents at end of year3,659,994313,7277,474,323
Investments, at fair value 7,741,908663,62015,216,477
Cash, cash equivalents and investments, at fair value$ 11,401,902$ 977,347$ 22,690,800
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)$ 1,663,580$ 1,158$ (643,295)
Adjustments:
Depreciation expense1,634,15218,2711,889,558
Decrease (Increase) in receivables--195,707
Decrease in inventories--959,586
Decrease (Increase) in prepaid items62,379-(86,581)
Increase (Decrease) in accounts payable210,673(145,672)(74,722)
Increase (decrease) in compensated absences(10,391)(30,903)(19,930)
Decrease in interfund payables--(35,000)
Decrease in net pension balances(15,180)(11,383)(38,790)
Increase in other post-employment benefit balances91,68561,494252,431
Total adjustments1,973,318(108,193)3,042,259
Net cash provided (used) by operating activities$ 3,636,898$ (107,035)$ 2,398,964
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES:
Decrease in fair value of investments(46,438)(2,861)(78,636)
Capital asset contributions-52,87652,876
(concluded)
113
CITY OF DENTON, TEXASExhibit XXIX
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
BalanceBalance
October 1, 2017AdditionsDeductionsSeptember 30, 2018
OTHER AGENCY FUNDS
ASSETS
Cash, cash equivalents and
investments, at fair value$ 182,026$ 1,250,405$ 1,242,432$ 189,999
Total assets$ 182,026$ 1,250,405$ 1,242,432$ 189,999
LIABILITIES
Accounts payable$ 182,026$ 1,250,405$ 1,242,432$ 189,999
Total liabilities$ 182,026$ 1,250,405$ 1,242,432$ 189,999
114
CITY OF DENTON, TEXASExhibit XXXI
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
COMPARATIVE SCHEDULES BY SOURCE*
AS OF SEPTEMBER 30, 2017 AND 2018
20182017
Governmental funds capital assets:
Land$ 21,445,129$ 20,880,354
Work in progress85,427,19256,604,771
Buildings69,079,25463,587,711
Plant, machinery and equipment93,134,03984,848,684
Infrastructure284,834,482267,898,072
Total governmental funds capital assets$ 553,920,096$ 493,819,592
Investments in governmental funds capital assets by source:
General fund$ 206,600,034$ 198,261,192
Special revenue funds9,905,6139,442,322
Capital projects funds337,414,449286,116,078
Total governmental funds capital assets$ 553,920,096$ 493,819,592
*This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of internal service funds are included as
governmental activities in the statement of net position.
115
CITY OF DENTON, TEXASExhibit XXXII
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY*
AS OF SEPTEMBER 30, 2018
Plant,
MachineryWork
andin
Function and ActivityLandBuildingsEquipmentInfrastructureProgressTotal
General government:
Finance$ -$ -$ 403,130$ -$ 45$ 403,175
Legal--358,124--358,124
Human resources--74,643--74,643
City manager/economic development-808,462966,397--1,774,859
Facilities management2,742,11515,529,85515,455,202742,6651,430,14235,899,979
Library-12,050,4778,244,98314,715-20,310,175
Building inspections--428,876--428,876
Planning/community development-494,500649,473275,011-1,418,984
Engineering----3,770,6483,770,648
Community improvement services--227,467--227,467
Gas Well Review--27,478--27,478
Reprographics--150,155--150,155
Total general government2,742,11528,883,29426,985,9281,032,3915,200,83564,844,563
Public works:
Traffic operations1,23614,6001,868,99420,971,9561,211,86124,068,647
Streets991,3715,0007,295,207242,117,73662,298,015312,707,329
Total public works992,60719,6009,164,201263,089,69263,509,876336,775,976
Parks and recreation11,586,21917,115,41016,652,42720,707,3995,464,64071,526,095
Public safety:
Fire administration2,720,603-266,186--2,986,789
Fire operations2,399,52117,003,27617,796,9555,00010,570,98747,775,739
Fire prevention--1,467,598--1,467,598
Emergency medical services--417,131--417,131
Police-11,99319,496,129-646,84920,154,971
Animal services1,004,0646,045,681389,377-33,8987,473,020
Municipal court/judge/clerks--498,107-107498,214
Total public safety6,124,18823,060,95040,331,4835,00011,251,84180,773,462
Total governmental funds
capital assets$ 21,445,129$ 69,079,254$ 93,134,039$ 284,834,482$ 85,427,192$ 553,920,096
*This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of internal service funds are included as
governmental activities in the statement of net position.
116
CITY OF DENTON, TEXASExhibit XXXIII
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY*
FOR THE YEAR ENDED SEPTEMBER 30, 2018
GovernmentalGovernmental
Funds CapitalFunds Capital
AssetsAssets
Function and ActivityOctober 1, 2017AdditionsDeductionsSeptember 30, 2018
General government:
Finance$45,930$357,200$-$403,130
Legal358,124--358,124
Human resources74,643--74,643
City manager/economic development1,722,69052,169-1,774,859
Facilities management33,668,995850,062(49,220)34,469,837
Library19,920,506504,222(114,553)20,310,175
Building inspections384,22244,654-428,876
Planning/community development1,161,984257,000-1,418,984
Community improvement services231,40372,299(76,235)227,467
Gas Well Review27,478--27,478
Reprographics150,155--150,155
Total general government57,746,1302,137,606(240,008)59,643,728
Public works:
Traffic operations21,898,882957,904-22,856,786
Streets237,651,15013,653,397(895,233)250,409,314
Total public works259,550,03214,611,301(895,233)273,266,100
Parks and recreation59,243,5357,017,708(199,788)66,061,455
Public safety:
Fire administration2,981,4645,325-2,986,789
Fire operations30,893,6236,334,295(23,166)37,204,752
Fire prevention1,467,598--1,467,598
Emergency medical services417,131--417,131
Police16,925,7762,922,838(340,492)19,508,122
Animal services7,491,425-(52,303)7,439,122
Municipal court/judge/clerks498,107--498,107
Total public safety60,675,1249,262,458(415,961)69,521,621
Work in progress56,604,77155,212,231(26,389,810)85,427,192
Total governmental funds capital assets$493,819,592$88,241,304$(28,140,800)$553,920,096
*This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of internal service funds are included as
governmental activities in the statement of net position.
117
118
119
CITY OF DENTON, TEXASTable 1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
20092010201120122013
Governmental activities
Net investment in capital assets$ 102,110,134$ 104,636,239$ 103,073,465$ 101,784,929$ 116,146,838
Restricted1,947,5532,894,6762,839,5563,460,0274,116,256
Unrestricted38,252,07846,480,56934,590,67335,005,10935,136,072
Total governmental activities
net position142,309,765154,011,484140,503,694140,250,065155,399,166
Business-type activities
Net investment in capital assets282,463,031277,356,195296,006,601315,479,026347,780,207
Restricted33,380,59530,598,92330,454,31428,559,73128,654,879
Unrestricted109,826,810131,497,936158,120,736169,653,341158,145,443
Total business-type activities
net position425,670,436439,453,054484,581,651513,692,098534,580,529
Primary government
Net investment in capital assets384,573,165381,992,434399,080,066417,263,955463,927,045
Restricted35,328,14833,493,59933,293,87032,019,75832,771,135
Unrestricted148,078,888177,978,505192,711,409204,658,450193,281,515
Total primary government
net position$ 567,980,201$ 593,464,538$ 625,085,345$ 653,942,163$ 689,979,695
(continued on the following page)
Source: Comprehensive Annual Financial Reports
120
CITY OF DENTON, TEXASTable 1
NET POSITION BY COMPONENT (concluded)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
20142015201620172018
Governmental activities
Net investment in capital assets$ 128,915,116$ 141,914,877$ 145,309,987$ 165,408,284$ 194,210,730
Restricted12,233,22613,215,42113,736,62414,530,90821,654,948
Unrestricted28,096,148(8,775,520)(3,620,580)(6,509,698)(19,332,607)
Total governmental activities
net position169,244,490146,354,778155,426,031173,429,494196,533,071
Business-type activities
Net investment in capital assets383,678,313421,894,337460,330,063502,801,204540,697,505
Restricted28,056,60525,356,4588,892,54711,516,20720,209,408
Unrestricted139,515,508122,542,446151,234,604145,191,889177,836,401
Total business-type activities
net position551,250,426569,793,241620,457,214659,509,300738,743,314
Primary government
Net investment in capital assets512,593,429563,809,214605,640,050668,209,488734,908,235
Restricted40,289,83138,571,87922,629,17126,047,11541,864,356
Unrestricted167,611,656113,766,926147,614,024138,682,191158,503,794
Total primary government
net position$ 720,494,916$ 716,148,019$ 775,883,245$ 832,938,794$ 935,276,385
(concluded)
Source: Comprehensive Annual Financial Reports
121
CITY OF DENTON, TEXASTable 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
20092010201120122013
EXPENSES
Governmental activities:
General government$ 27,482,131$29,569,535$28,198,604$29,421,275$27,686,735
Public safety45,368,78347,998,90649,154,37152,496,01052,906,985
Public works15,816,06515,767,92616,089,30218,662,02918,663,884
Parks and recreation12,755,03712,854,33612,421,89312,968,42613,714,245
Interest expense5,733,2685,121,3295,046,7244,755,9384,464,309
Total governmental activities expenses107,155,284111,312,032110,910,894118,303,678117,436,158
Business-type activities:
Electric system124,901,262114,903,831117,769,599122,428,808146,246,880
Water system28,636,19027,219,94428,293,10926,822,69026,814,020
Wastewater system19,909,22920,560,60020,455,42420,890,61421,467,088
Solid waste18,036,33118,028,83220,008,74621,695,32221,730,796
Airport--1,326,3971,472,1551,608,989
Total business-type activities expenses191,483,012180,713,207187,853,275193,309,589217,867,773
Total primary government expenses298,638,296292,025,239298,764,169311,613,267335,303,931
PROGRAM REVENUES
Governmental activities:
Charges for services:
General government4,792,8563,551,7334,108,6873,873,3494,105,648
Public safety6,554,6196,431,0077,075,3287,069,7707,767,083
Public works586,3771,425,683525,0241,086,2691,159,605
Parks and recreation2,990,9213,372,5793,964,5173,951,4334,059,383
Operating grants and contributions2,281,1363,407,0854,270,6972,598,1573,118,105
Capital grants and contributions3,641,29615,206,4247,497,9084,292,46814,671,571
Total governmental activities
program revenues20,847,20533,394,51127,442,16122,871,44634,881,395
Business-type activities:
Charges for services:
Electric system128,511,236119,156,314131,435,554132,352,950136,655,892
Water system30,067,77428,407,95436,790,72036,265,06137,586,306
Wastewater system22,342,17421,917,65123,338,84124,570,09526,588,179
Solid waste18,386,61618,432,24520,979,96722,944,27224,468,976
Airport--3,203,4261,909,6191,880,812
Capital grants and contributions8,099,7225,153,5685,053,0244,317,4639,877,185
Total business-type activities
program revenues207,407,522193,067,732220,801,532222,359,460237,057,350
Total primary government
program revenues228,254,727226,462,243248,243,693245,230,906271,938,745
NET (EXPENSE)/REVENUE
Governmental activities(86,308,079)(77,917,521)(83,468,733)(95,432,232)(82,554,763)
Business-type activities15,924,51012,354,52532,948,25729,049,87119,189,577
Total primary government program
net expense$ (70,383,569)$ (65,562,996)$ (50,520,476)$ (66,382,361)$ (63,365,186)
122
CITY OF DENTON, TEXASTable 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
20142015201620172018
EXPENSES
Governmental activities:
General government$30,476,840$31,260,126$33,847,052$40,761,972$37,968,945
Public safety56,893,85958,132,14663,118,51668,546,55771,945,219
Public works16,950,28020,331,93424,557,48224,994,62825,683,779
Parks and recreation14,543,46114,982,74216,043,69716,792,41717,422,273
Interest expense4,339,1544,384,9734,664,6084,970,9685,379,149
Total governmental activities expenses123,203,594129,091,921142,231,355156,066,542158,399,365
Business-type activities:
Electric system157,906,294158,106,661145,963,753174,900,860168,110,899
Water system24,023,39225,870,48926,000,73428,202,50027,481,058
Wastewater system22,176,19124,307,30523,921,15426,730,15726,284,049
Solid waste23,844,05526,766,89029,435,10134,532,85629,028,299
Airport2,435,4462,100,2812,536,4601,930,7671,802,703
Total business-type activities expenses230,385,378237,151,626227,857,202266,297,140252,707,008
Total primary government expenses353,588,972366,243,547370,088,557422,363,682411,106,373
PROGRAM REVENUES
Governmental activities:
Charges for services:
General government4,645,6555,364,4056,015,3055,266,7776,489,438
Public safety7,064,9277,276,0249,827,7848,773,2218,221,314
Public works885,010707,604729,528879,453649,293
Parks and recreation5,833,2384,926,4655,268,6374,414,3794,852,322
Operating grants and contributions4,788,1493,380,1192,855,5014,667,7913,697,696
Capital grants and contributions11,127,69510,443,2205,885,03317,180,09133,991,306
Total governmental activities
program revenues34,344,67432,097,83730,581,78841,181,71257,901,369
Business-type activities:
Charges for services:
Electric system150,362,507167,696,288166,290,498172,027,080198,748,366
Water system34,865,80337,572,33138,181,03441,332,00648,912,059
Wastewater system28,629,75430,790,88531,900,88533,360,60335,594,624
Solid waste25,980,91429,091,21631,236,50633,847,59333,590,463
Airport1,925,8251,277,4021,183,6611,495,6191,625,672
Capital grants and contributions5,656,6228,593,6997,705,10120,347,88920,519,510
Total business-type activities
program revenues247,421,425275,021,821276,497,685302,410,790338,990,694
Total primary government
program revenues281,766,099307,119,658307,079,473343,592,502396,892,063
NET (EXPENSE)/REVENUE
Governmental activities(88,858,920)(96,994,084)(111,649,567)(114,884,830)(100,497,996)
Business-type activities17,036,04737,870,19548,640,48336,113,65086,283,686
Total primary government program
net expense$ (71,822,873)$ (59,123,889)$ (63,009,084)$ (78,771,180)$ (14,214,310)
(continued on the following page)
123
CITY OF DENTON, TEXASTable 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
20092010201120122013
GENERAL REVENUES AND OTHER CHANGES
IN NET POSITION
Governmental activities:
Taxes:
Property tax$ 43,187,433$43,144,645$44,144,844$45,174,160$47,275,552
1
20,466,77220,484,95422,871,28225,886,94026,522,473
Sales tax
Franchise tax15,669,98117,457,99419,324,24419,336,70119,901,459
Hotel occupancy tax1,239,2611,302,6171,513,4681,555,3471,910,125
Beverage tax338,700347,940359,671345,032392,192
Bingo tax22,91522,61121,96320,88920,774
Investment income2,413,339684,709459,615581,849354,089
Gain on sale of capital assets-----
Miscellaneous3,327,7585,690,9692,370,6821,390,3981,428,907
Transfers846,119482,801(10,430,082)887,287(101,707)
Total governmental activities87,512,27889,619,24080,635,68795,178,60397,703,864
Business-type activities:
Investment income6,075,4531,653,5151,472,0781,638,8301,085,856
Gain on sale of capital assets-----
Miscellaneous557,690257,379278,180(690,967)511,291
Transfers(846,119)(482,801)10,430,082(887,287)101,707
Total business-type activities5,787,0241,428,09312,180,34060,5761,698,854
Total primary government93,299,30291,047,33392,816,02795,239,17999,402,718
CHANGE IN NET POSITION
Governmental activities1,204,19911,701,719(2,833,046)(253,629)15,149,101
Business-type activities21,711,53413,782,61845,128,59729,110,44720,888,431
Total primary government$ 22,915,733$ 25,484,337$ 42,295,551$ 28,856,818$ 36,037,532
(continued on the following page)
Source: Comprehensive Annual Financial Reports
1
Sales tax figures in fiscal years 2010 and prior present amounts net of economic incentive payments.
124
CITY OF DENTON, TEXASTable 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
20142015201620172018
GENERAL REVENUES AND OTHER CHANGES
IN NET POSITION (concluded)
Governmental activities:
Taxes:
Property tax$48,833,077$54,174,965$58,788,255$64,348,754$67,185,610
1
27,764,11430,601,96532,624,29736,841,13738,270,026
Sales tax
Franchise tax21,001,42721,996,03122,659,01424,211,08126,007,002
Hotel occupancy tax1,982,6432,156,2942,243,2642,374,2212,733,720
Beverage tax419,498573,758597,284617,662632,217
Bingo tax20,68420,38018,91013,63311,244
Investment income563,236759,3341,019,5941,330,0081,937,579
Gain on sale of capital assets-707,966498,265192,583188,958
Miscellaneous1,980,5451,220,0601,087,5042,042,2744,700,466
Transfers876,5251,140,9381,184,433916,940(1,104,290)
Total governmental activities103,441,749113,351,691120,720,820132,888,293140,562,532
Business-type activities:
Investment income1,355,7301,692,9712,010,0083,471,6354,083,560
Gain on sale of capital assets-42,4551,197,915383,741240,740
Miscellaneous521,013----
Transfers(876,525)(1,140,938)(1,184,433)(916,940)1,104,290
Total business-type activities1,000,218594,4882,023,4902,938,4365,428,590
Total primary government104,441,967113,946,179122,744,310135,826,729145,991,122
CHANGE IN NET POSITION
Governmental activities14,582,82916,357,6079,071,25318,003,46340,064,536
Business-type activities18,036,26538,464,68350,663,97339,052,08691,712,276
Total primary government$ 32,619,094$ 54,822,290$ 59,735,226$ 57,055,549$ 131,776,812
(concluded)
Source: Comprehensive Annual Financial Reports
1
Sales tax figures in fiscal years 2010 and prior present amounts net of economic incentive payments.
125
CITY OF DENTON, TEXASTable 3
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
1
2011
2009201020122013
General fund
Committed to streets$ -$ -$ 921,779$ -$ -
Assigned to use of reserves--668,116664,8941,377,039
Unreserved, undesignated, unassigned22,794,95521,526,77922,834,10825,171,18624,378,139
Total general fund22,794,95521,526,77924,424,00325,836,08025,755,178
All other governmental funds
Reserved for:
Debt service2,414,2883,354,535---
Capital projects35,339,60644,970,571---
Unreserved, undesignated reported in:
Special revenue funds16,435,44913,838,425---
Restricted for:
Debt Service--3,279,0803,824,4384,572,807
Parks and recreation--9,561,24410,496,8879,220,953
Streets and drainage projects--21,857,67022,004,37723,759,574
Other capital projects--5,907,8778,444,07312,231,061
Other grants and purposes--1,223,8221,789,2412,223,626
Committed to:
Streets---991,9421,330,184
Parks and recreation--1,427,717570,534590,062
Other purposes--1,867,6391,468,8371,801,661
Assigned to:
Streets and drainage projects--724,241-144,485
Other capital projects--1,332,1053,003,3442,599,101
Other purposes--77,34149,02656,900
Unassigned
--(758,734)(91,145)(8,901)
Total all other governmental funds$ 54,189,343$ 62,163,531$ 46,500,002$ 52,551,554$ 58,521,513
(continued on the following page)
Source: Comprehensive Annual Financial Reports
1
The City adopted GASB Statement No. 54 which changed the classification of governmental fund balances
to nonspendable, restricted, committed, assigned, and unassigned.
126
CITY OF DENTON, TEXASTable 3
FUND BALANCES OF GOVERNMENTAL FUNDS (concluded)
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
20142015201620172018
General fund
Committed to streets$ -$ -$ -$ -$ -
Assigned to use of reserves661,545-99,365-1,398,704
Unreserved, undesignated, unassigned25,176,73727,365,16828,070,48331,770,77328,918,681
Total general fund25,838,28227,365,16828,169,84831,770,77330,317,385
All other governmental funds
Reserved for:
Debt service-----
Capital projects-----
Unreserved, undesignated reported in:
Special revenue funds-----
Restricted for:
Debt Service4,726,8414,791,8804,893,0325,409,1445,529,483
Parks and recreation11,584,89014,288,65913,553,83410,599,5689,153,654
Streets and drainage projects25,790,64842,537,94146,511,50951,149,30582,702,916
Other capital projects11,925,97810,603,69513,512,73318,544,08621,984,608
Other grants and purposes2,465,0933,218,4663,319,2304,104,0367,158,843
Committed to:
Streets916,6131,388,2231,798,6241,158,6674,495,971
Parks and recreation573,429513,484498,150439,825520,852
Other purposes3,560,1594,430,3925,500,9836,889,0933,150,491
Assigned to:
Streets and drainage projects423,1522,214,6133,430,6817,897,07710,591,478
Other capital projects2,868,3901,666,0293,728,9556,945,4927,440,133
Other purposes34,84749,63074,5585959
Unassigned
(144,084)(73,857)(242,338)(2,942,377)(943,930)
Total all other governmental funds$ 64,725,956$ 85,629,155$ 96,579,951$110,193,975$151,784,558
(concluded)
Source: Comprehensive Annual Financial Reports
1
The City adopted GASB Statement No. 54 which changed the classification of governmental fund balances
to nonspendable, restricted, committed, assigned, and unassigned.
127
CITY OF DENTON, TEXASTable 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
20092010201120122013
REVENUES:
Taxes:
Property tax$ 42,980,209$ 43,326,427$ 44,147,706$ 45,116,485$ 47,330,522
1
20,466,77220,484,95422,871,28225,886,94026,522,473
Sales tax
Hotel occupancy tax1,239,2611,302,6171,513,4681,555,3471,910,125
Beverage tax338,700347,940359,671345,032392,192
Bingo tax22,91522,61121,96320,88920,774
Licenses and permits1,265,7331,198,5521,460,5481,436,2151,446,580
Franchise fees15,669,98117,457,99419,324,24419,336,70119,901,459
Fines and forfeitures4,972,9054,828,1594,929,1105,462,1335,342,966
Fees for services7,595,44012,244,2588,395,5838,519,7638,683,278
Investment revenue 2,415,817684,709459,615581,849354,089
Intergovernmental4,049,43916,639,03810,896,0636,739,8649,914,834
Miscellaneous3,183,8911,002,1331,911,6341,171,6181,322,762
Total revenues104,201,063119,539,392116,290,887116,172,836123,142,054
EXPENDITURES:
General government25,223,04126,909,48525,784,29624,359,01825,047,062
Public safety42,540,42344,398,44246,561,74748,118,05151,303,825
Public works6,753,3146,517,7177,483,9268,608,5549,425,446
Parks and recreation11,444,57711,072,06110,913,45011,315,95112,274,908
Capital outlay21,863,64714,164,66212,937,05310,983,98720,038,064
Debt service:
Principal retirement9,479,2439,277,8049,670,8929,770,66010,017,719
Advance refunding escrow148,575--130,111110,145
Bond issuance costs105,39278,91929,156163,811181,308
Interest and other charges5,570,7705,095,2455,070,7344,758,3054,552,348
Total expenditures123,128,982117,514,335118,451,254118,208,448132,950,825
Excess (deficiency) of revenues
over (under) expenditures(18,927,919)2,025,057(2,160,367)(2,035,612)(9,808,771)
OTHER FINANCING SOURCES (USES):
Refunding bonds issued6,120,0003,460,000-10,173,3036,182,405
Payment to refunded bond escrow agent(6,265,255)(3,774,764)-(11,432,581)(6,547,180)
Issuance of long-term debt-6,905,0005,680,0008,020,00014,765,000
Premium on debt issuance246,012498,68232,6282,016,1931,232,674
Insurance recoveries---19,961-
Proceeds of capital lease-----
Sale of capital assets44,865160,495303,307153,127148,417
Transfers in10,286,4965,815,7691,968,2534,741,7352,980,448
Transfers (out)(9,280,022)(8,384,227)(7,915,382)(4,192,497)(3,063,936)
Total other financing sources (uses)1,152,0964,680,95568,8069,499,24115,697,828
NET CHANGE IN FUND BALANCES$ (17,775,823)$ 6,706,012$ (2,091,561)$ 7,463,629$ 5,889,057
Debt service as a percentage of noncapital
expenditures14.9%13.9%14.0%13.6%12.9%
Source: Comprehensive Annual Financial Reports(continued on the following page)
1
Sales tax figures in fiscal years 2010 and prior present amounts net of economic incentive payments.
128
CITY OF DENTON, TEXASTable 4
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (concluded)
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
20142015201620172018
REVENUES:
Taxes:
Property tax$ 48,872,016$ 54,230,541$ 58,802,856$ 64,317,641$ 67,055,807
1
27,764,11430,601,96532,624,29736,841,13738,270,026
Sales tax
Hotel occupancy tax1,982,6432,156,2942,243,2642,374,2212,733,720
Beverage tax419,498573,758597,284617,662632,217
Bingo tax20,68420,38018,91013,63311,244
Licenses and permits1,978,4212,782,3953,106,1623,016,6973,739,691
Franchise fees21,001,42721,996,03122,659,01424,211,08126,007,002
Fines and forfeitures6,261,5796,505,1756,433,1586,039,4015,539,793
Fees for services10,187,1959,391,26010,927,30510,395,16610,536,817
Investment revenue 563,236759,3341,019,5941,330,0081,937,579
Intergovernmental10,986,12810,236,6895,217,3029,647,97730,518,141
Miscellaneous2,648,1601,387,1271,347,2582,382,7085,053,082
Total revenues132,685,101140,640,949144,996,404161,187,332192,035,119
EXPENDITURES:
General government28,188,72229,277,27531,024,35631,330,75732,800,175
Public safety53,380,06455,978,17459,067,01961,156,69466,355,282
Public works9,979,99712,439,13111,604,96615,871,80414,710,211
Parks and recreation12,808,70113,277,51613,987,69414,140,51814,671,894
Capital outlay20,660,46123,712,40025,966,69538,191,80354,829,949
Debt service:
Principal retirement10,703,07111,918,98313,390,57614,351,48715,429,697
Advance refunding escrow-120,519147,687103,950-
Bond issuance costs86,800181,409154,948171,252284,181
Interest and other charges4,741,2574,647,5285,246,9255,819,9496,561,442
Total expenditures140,549,073151,552,935160,590,866181,138,214205,642,831
Excess (deficiency) of revenues
over (under) expenditures(7,863,972)(10,911,986)(15,594,462)(19,950,882)(13,607,712)
OTHER FINANCING SOURCES (USES):
Refunding bonds issued3,130,00014,290,00012,045,00010,850,000-
Payment to refunded bond escrow agent(3,194,293)(15,604,758)(14,075,445)(11,358,665)-
Issuance of long-term debt12,635,00029,240,00022,780,00033,405,00056,960,000
Premium on debt issuance635,0373,214,9144,317,8173,077,3603,206,728
Insurance recoveries--30,62486,99218,135
Proceeds of capital lease--150,155--
Sale of capital assets85,059715,685530,054236,068226,025
Transfers in3,596,4334,557,8248,164,57510,856,90415,083,695
Transfers (out)(2,735,717)(3,071,594)(6,592,842)(9,987,828)(21,749,676)
Total other financing sources (uses)14,151,51933,342,07127,349,93837,165,83153,744,907
NET CHANGE IN FUND BALANCES$ 6,287,547$ 22,430,085$ 11,755,476$ 17,214,949$ 40,137,195
Debt service as a percentage of noncapital
expenditures12.9%13.0%13.8%14.1%14.6%
Source: Comprehensive Annual Financial Reports(concluded)
1
Sales tax figures in fiscal years 2010 and prior present amounts net of economic incentive payments.
129
CITY OF DENTON, TEXASTable 5
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Estimated Market ValueLess:Total TaxableTotal Direct
FiscalRealPersonalTax-ExemptAssessedTax
1
YearPropertyPropertyPropertyRate
Value
2009$ 6,443,103,507$ 938,547,047$ 1,090,291,442$ 6,291,359,1120.66652
20106,619,118,472922,539,8011,213,749,2516,327,909,0220.66652
20116,744,096,534879,202,4961,393,181,0726,230,117,9580.68975
20126,903,311,493933,580,1011,424,516,5906,412,375,0040.68975
20137,083,330,1271,125,646,1161,492,264,8756,716,711,3680.68975
20147,427,124,9691,161,189,4211,609,090,1166,979,224,2740.68975
20158,285,049,3211,329,999,8831,817,871,5967,797,177,6080.68975
20168,989,650,9461,332,290,7431,858,794,9298,463,146,7600.68975
20179,784,179,1331,429,040,0122,040,968,6529,172,250,4930.68334
201812,013,555,7941,267,029,7062,344,445,87110,936,139,6290.63786
Source: Denton Central Appraisal District
1
Total Taxable Assessed Value from 2013-2018 include the Downtown and West Park TIRZ's.
130
131
CITY OF DENTON, TEXASTable 6
PROPERTY TAX RATES (PER $100 OF ASSESSED VALUE)
1
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Overlapping Rates
School Districts
DentonArgyle
City of DentonIndependentIndependent
FiscalOperatingDebt ServiceTotalDentonSchoolSchool
YearRateRateDirect RateCountyDistrictDistrict
2009$ 0.44765$ 0.21887$ 0.66652$ 0.235770$ 1.49000$ 1.410050
20100.447650.218870.666520.2498001.490001.410050
20110.470880.218870.689750.2739001.530001.440050
20120.470880.218870.689750.2773571.530001.460050
20130.470880.218870.689750.2828671.530001.480050
20140.474800.214950.689750.2849141.530001.475000
20150.481190.208560.689750.2722001.540001.570050
20160.474560.215190.689750.2620001.540001.570050
20170.466740.216600.683340.2484091.540001.570050
20180.430310.207550.637860.2378121.540001.585050
(continued on the following page)
Source: Denton County Tax Office
Denton County Central Appraisal District
1
Overlapping rates are those of the school district and county government that apply to property owners within the City of Denton.
132
CITY OF DENTON, TEXASTable 6
PROPERTY TAX RATES (PER $100 OF ASSESSED VALUE) (concluded)
1
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Overlapping Rates
School Districts
AubreyKrumPilot PointPonderSangerTotal Direct
IndependentIndependentIndependentIndependentIndependent& Overlapping
FiscalSchoolSchoolSchoolSchoolSchoolRates
YearDistrictDistrictDistrictDistrictDistrict(Range)
2009$ 1.485600$ 1.365500$ 1.390000$ 1.321220$ 1.3700002.223510 - 2.392290
20101.5400001.4400001.3700001.3090281.3600002.225348 - 2.456320
20111.5400001.4800001.3700001.3248901.3600002.288540 - 2.503650
20121.5400001.5400001.3700001.3446101.3720672.311717 - 2.507107
20131.5400001.5200001.3700001.3532921.3720672.325909 - 2.512617
20141.5100001.5400001.3700001.3850001.3720702.344664 - 2.514664
20151.5100001.5400001.3700001.3808001.3720672.331950 - 2.532000
20161.5100001.5400001.3700001.3875001.3720672.321750 - 2.521800
20171.5100001.5400001.3700001.4678401.3720672.301749 - 2.501799
20181.5100001.5400001.3700001.4677901.3720672.245668 - 2.460718
(concluded)
Source: Denton County Tax Office
Denton County Central Appraisal District
1
Overlapping rates are those of the school district and county government that apply to property owners within the City of Denton.
133
CITY OF DENTON, TEXASTable 7
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2018
2009
Percentage ofPercentage of
TaxableTotal TaxableTaxableTotal Taxable
AssessedAssessedAssessedAssessed
12
Name of TaxpayerValueName of TaxpayerValue
ValueValue
Columbia Medical
Center of Denton
Well Services Division of (Denton Regional
STC (Schlumberger)Hospital)
$171,825,0101.57%$83,900,4621.33%
Inland Western
PACCAR Inc. (Peterbilt)Crossing
93,771,6770.86%53,041,5200.84%
Columbia Medical Center
of Denton (Denton PACCAR Inc
Regional Hospital)(Peterbilt)
86,844,8950.79%52,109,6100.83%
AC Denton, LLCVerizon Southwest
58,727,2320.54%32,549,1400.52%
Winco Foods, LLCGEL Timberlands
57,478,0700.53%29,500,0000.47%
Timber Links Apartments,
LLC (The Timber Links)Aldi, LLC
44,553,6460.41%25,554,7800.41%
Inland Western Crossing
(Denton Crossing Shopping Denton Education
Center)Housing Corp
43,621,8380.40%21,693,0000.34%
SCI Gateway at Denton
NREA Gardens, DSTFund 25, LLC
39,048,0360.36%20,717,9900.33%
HRA University
Courtyard, LLC
(University Courtyard
Apartments)CNL Retirement CRSI
38,253,0000.35%19,778,4230.31%
Gateway Investors Owner, Value Family
LLCProperties
35,640,0320.33%19,776,3680.31%
Total$ 669,763,4366.12%Total$ 358,621,2935.69%
Source: Denton Central Appraisal District
1
Total taxable assessed value for tax year 2017 (fiscal year 2018) is $10,936,139,629.
2
Total taxable assessed value for tax year 2008 (fiscal year 2009) is $6,291,359,112.
134
135
CITY OF DENTON, TEXASTable 8
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Taxes LeviedAdjustmentsAdjustedCollected Within the
Within theto Levy inTaxes LeviedFiscal Year of the LevyCollections
FiscalFiscal YearSubsequentfor thePercentagein Subsequent
Yearof the LevyYearsFiscal YearAmountof LevyYears
2009$ 43,086,123$ 56,862$ 43,142,985$ 42,423,70798.33%$ 636,661
201042,898,41456,14242,954,55642,448,36498.82%429,151
201143,890,121(2,755)43,887,36643,447,50899.00%378,294
201244,856,27721,89844,878,17544,461,50199.07%338,151
201346,965,49537,84847,003,34346,638,97599.22%266,302
201448,398,90056,66448,455,56448,083,91099.23%265,431
201553,829,793(147,846)53,681,94753,503,02999.67%31,504
201658,634,172(51,097)58,583,07558,280,01399.48%109,365
201764,030,255(97,648)63,932,60763,702,95499.64%46,433
201866,830,333-66,830,33366,493,77499.50%-
(continued on the following page)
Source: Denton Central Appraisal District
136
CITY OF DENTON, TEXASTable 8
PROPERTY TAX LEVIES AND COLLECTIONS (concluded)
LAST TEN FISCAL YEARS
Total Collections to Date
FiscalPercentage
YearAmountof Levy
2009$ 43,060,36899.81%
201042,877,51599.82%
201143,825,80299.86%
201244,799,65299.83%
201346,905,27799.79%
201448,349,34199.78%
201553,534,53399.73%
201658,389,37899.67%
201763,749,38799.71%
201866,493,77499.50%
(concluded)
Source: Denton Central Appraisal District
137
CITY OF DENTON, TEXASTable 9
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental ActivitiesBusiness-Type Activities
GeneralCertificatesGeneralCertificates
FiscalObligationofPremiums,OtherRevenueObligationof
YearBondsObligationDiscountsObligationsBondsBondsObligation
2009$77,358,650$48,611,150$1,658,410$2,769,671$ 266,705,000$ 4,366,350$ 11,243,850
201077,314,65045,727,9501,798,0931,771,952209,885,00039,600,350126,207,050
201173,395,65043,036,4191,475,6731,879,906187,525,00047,209,350150,553,581
201280,013,43933,910,3423,272,8871,891,895156,855,00059,301,561181,314,658
201380,719,76137,514,4853,737,386983,249144,225,00055,970,239222,955,515
201478,316,16141,570,0003,593,0571,102,864112,170,00079,188,839290,640,000
201595,019,05841,590,0006,039,8232,079,22763,340,000 108,585,942359,375,000
2016 109,861,17434,565,0009,250,7791,373,230- 141,063,826416,465,000
2017 118,267,66349,285,000 10,994,176498,062214,890,000 127,677,337467,620,000
2018 127,647,93581,200,000 12,515,7244,171214,890,000 111,347,065447,050,000
(continued on the following page)
Source: Comprehensive Annual Financial Reports
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
138
CITY OF DENTON, TEXASTable 9
RATIO OF OUTSTANDING DEBT BY TYPE (concluded)
LAST TEN FISCAL YEARS
Business-Type Activities
TotalPercentage
FiscalPremiums,OtherPrimaryof PersonalPer
11
YearDiscountsObligationsGovernment
IncomeCapita
2009$ 5,586,295$ 3,161,549$ 421,460,9250.01667%3,791.48
201014,799,6741,824,177518,928,8960.02103%4,576.78
201113,078,3161,279,130519,433,0250.01982%4,535.86
201217,869,148713,408535,142,3380.02150%4,626.78
201318,645,703363,487565,114,8250.02040%4,813.71
201423,263,019-629,843,9400.02145%5,285.79
201527,564,104-703,593,1540.02398%5,817.46
201638,514,641-751,093,6500.02545%6,118.44
201769,029,540-1,058,261,7780.03267%8,466.91
201861,504,481-1,056,157,3580.03176%8,310.11
(concluded)
Source: Comprehensive Annual Financial Reports
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
1
See Table 13 for personal income and population data.
139
CITY OF DENTON, TEXASTable 10
RATIO OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Bonded Debt Outstanding
Less: AmountsPercentage of
GeneralCertificatesAvailable Taxable
FiscalObligationofPremiums,in DebtValue ofPer
12
YearBondsObligationDiscountsService FundTotal
PropertyCapita
2009$ 81,725,000$ 59,855,000$1,779,105$ 1,947,553$ 141,411,5522.25%$ 1,272.14
2010116,915,000171,935,00011,933,4742,894,676297,888,7984.71%2,627.28
2011120,605,000193,590,00010,580,0692,839,556321,935,5135.17%2,811.25
2012139,315,000215,225,00018,283,1903,460,027369,363,1635.76%3,193.47
2013136,690,000260,470,00020,029,8294,116,256413,073,5736.15%3,518.60
2014157,505,000332,210,00025,434,6474,261,848510,887,7997.32%4,287.48
2015203,605,000400,965,00033,414,8164,260,793633,724,0238.13%5,239.77
2016250,925,000451,030,00047,765,4204,314,370745,406,0508.81%6,072.11
2017245,945,000516,905,00049,644,6344,666,797807,827,8378.81%6,463.24
2018238,995,000528,250,00046,011,2044,773,267808,482,9377.39%6,361.35
Source: Comprehensive Annual Financial Reports(continued on the following page)
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
1
See Table 5 for property value data.
2
See Table 13 for population data.
3
In 2010, the City began issuing Certificates of Obligation not only for general government purposes which are repaid by
property taxes, but also for utility related projects of the City. The Certificates of Obligation issued for utility purposes are
repaid from the specific utility fund as revenue supported for which the debt was issued.
140
CITY OF DENTON, TEXASTable 10
RATIO OF GENERAL BONDED DEBT OUTSTANDING (concluded)
LAST TEN FISCAL YEARS
Tax Supported General Bonded Debt Outstanding
Percentage of
Actual Taxable
FiscalLess: RevenueNet TaxValue ofPer
32
YearSupported DebtProperty
Supported DebtCapita
2009$ 15,730,895$ 125,680,6572.00%$ 1,130.63
2010175,942,781121,946,0171.93%1,075.52
2011206,867,327115,068,1861.85%1,004.81
2012255,626,522113,736,6411.77%983.35
2013295,218,197117,855,3761.75%1,003.90
2014391,670,429119,217,3701.71%1,000.50
2015495,335,935138,388,0881.77%1,144.22
2016596,043,467149,362,5831.76%1,216.71
2017633,947,795173,880,0421.90%1,391.17
2018619,901,546188,581,3911.72%1,483.81
(concluded)
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
1
See Table 5 for property value data.
2
See Table 13 for population data.
3
In 2010, the City began issuing Certificates of Obligation not only for general government purposes which are repaid by
property taxes, but also for utility related projects of the City. The Certificates of Obligation issued for utility purposes are
repaid from the specific utility fund as revenue supported for which the debt was issued.
141
CITY OF DENTON, TEXASTable 11
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2018
Estimated
EstimatedShare of
DebtPercentageOverlapping
1
Governmental UnitOutstandingDebt
Applicable
Debt repaid with property taxes:
Denton Independent School District$1,167,039,10461.66%$ 719,596,312
Denton County612,630,00012.25%75,047,175
Argyle Independent School District125,869,6809.75%12,272,294
Aubrey Independent School District86,720,6630.14%121,409
Krum Independent School District38,854,7038.38%3,256,024
Lake Dallas Independent School District77,342,7871.54%1,191,079
Pilot Point Independent School District15,985,0001.92%306,912
Ponder Independent School District18,005,0000.93%167,447
Sanger Independent School District20,382,1590.46%93,758
Subtotal, overlapping debt812,052,410
City of Denton, direct debt100.00%221,367,830
Total direct and overlappping debt$ 1,033,420,240
Ratio of direct and overlapping funded debt to the City's taxable assessed valuation9.45%
Per capita overlapping funded debt$ 8,131
Source: Municipal Advisory Council of Texas website
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries
of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments
that is borne by the residents and businesses of the City of Denton. This process recognizes that, when
considering the City of Denton's ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every
taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
1
The percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of the overlapping government's
taxable assessed value that is within the City of Denton's boundaries and dividing it by the overlapping
government's total taxable assessed value.
142
143
CITY OF DENTON, TEXASTable 12
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
1
Utility System Revenue Bonds
Less:Add:
Fair MarketLess:Franchise Fees
ValueOperatingand Return
AdjustmentExpenseson Investment
FiscalOperatingInvestmentto InvestmentImpact FeeBeforePaid to
23
YearRevenueRevenueRevenueDepreciation
RevenueGeneral Fund
2009$ 176,464,357$ 5,817,918$ 930,936$ 4,456,827$ 147,392,056$ 11,325,647
2010166,295,6941,593,161(550,830)3,186,225137,201,40212,828,293
2011186,359,2261,340,539(66,712)5,205,889136,774,86614,304,393
2012189,645,2771,477,452110,6263,542,829139,801,42114,414,769
2013197,126,041983,424(227,534)3,704,336164,688,19814,582,800
2014208,666,1781,225,87946,2265,191,886175,620,12515,278,150
2015229,583,4831,512,820156,2306,476,021175,131,64516,356,904
2016229,086,0081,772,813(132,432)7,286,409163,392,32317,027,566
2017239,310,6633,150,469(737,238)7,409,026182,455,76218,215,432
2018271,387,8443,599,667(707,351)11,867,205177,438,19120,089,862
(continued on the following page)
Source: Comprehensive Annual Financial Reports
1
The Utility System includes the Electric, Water, and Wastewater funds.
2
For the coverage calculation, the fair market adjustment to the value of investments is excluded.
3
For the coverage calculation, franchise fees and return on investment payments to the General Fund
are excluded from operating expenses.
4
Revenue bond covenants required a times coverage of 1.25 or greater through fiscal year 2016.
Starting in fiscal year 2017, revenue bond convenants require a times coverage of 1.00 or greater.
5
Total times coverage provided to assess total bond debt related to the Utility System.
144
CITY OF DENTON, TEXASTable 12
PLEDGED REVENUE COVERAGE (concluded)
LAST TEN FISCAL YEARS
1
Utility System Revenue Bonds
Certificate of Obligation &
Revenue Bond DebtGeneral Obligation Bond Debt
NetTotal
FiscalAvailableTimesTimesTimes
45
YearRevenuePrincipalInterestPrincipalInterestCoverage
CoverageCoverage
2009$ 49,741,757$15,935,000$ 12,267,7991.76--N/A1.76
201047,252,80113,180,0009,208,6822.11--N/A2.11
201170,501,8938,460,0007,982,2844.294,610,0007,315,1895.912.49
201269,168,28012,630,0007,028,8003.5211,880,0007,477,2333.571.77
201351,935,93713,260,0006,437,0882.649,940,0009,115,3482.731.34
201454,695,74211,570,0004,902,3193.3211,860,00010,306,2452.471.42
201578,641,35310,210,0002,551,4566.1615,535,00014,115,7132.651.85
201691,912,90510,210,0002,551,4567.2018,800,00018,258,5832.481.84
201786,367,066-3,680,38923.4725,495,00021,419,2931.841.71
2018130,213,738-10,685,00012.1931,035,00022,962,2372.412.01
(concluded)
Source: Comprehensive Annual Financial Reports
1
The Utility System includes the Electric, Water, and Wastewater funds.
2
For the coverage calculation, the fair market adjustment to the value of investments is excluded.
3
For the coverage calculation, franchise fees and return on investment payments to the General Fund
are excluded from operating expenses.
4
Revenue bond covenants required a times coverage of 1.25 or greater through fiscal year 2016.
Starting in fiscal year 2017, revenue bond convenants require a times coverage of 1.00 or greater.
5
Total times coverage provided to assess total bond debt related to the Utility System.
145
CITY OF DENTON, TEXASTable 13
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
FiscalEstimatedPersonalPer CapitaMedianGrade SchoolUniversityUnemployment
122345
YearIncome
PopulationIncomeAgeEnrollmentEnrollmentRate
2009111,1602,527,667,24022,73928.822,76145,6586.2%
2010113,3832,467,894,37821,76628.924,04747,2366.6%
2011114,5172,621,408,64722,89128.924,90147,7206.3%
2012115,6622,489,161,90221,52127.025,79148,2275.5%
2013117,3972,769,630,02423,59226.926,33948,5845.2%
2014119,1582,936,410,59424,64327.527,10548,4974.2%
2015120,9452,934,125,70024,26027.927,47349,6653.4%
2016122,7592,950,758,08324,03728.428,65850,8093.5%
2017124,9883,239,064,02025,91528.529,43350,9113.1%
2018127,0933,325,388,34526,16529.130,21951,1003.1%
Sources:
1
City of Denton Planning and Development Department estimate. Prior population figures have been adjusted to reflect the 2010
census data.
2
United States Census and Denton Chamber of Commerce
3
Denton Independent School District
4
University of North Texas' and Texas Woman's University's Denton campus enrollment
5
Texas Workforce Commission estimate
146
CITY OF DENTON, TEXASTable 14
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
20182009
PercentagePercentage
of Total Cityof Total City
Name of EmployerEmployeesEmploymentName of EmployerEmployeesEmployment
University of North Texas5,4167.37%University of North Texas7,94912.47%
Denton Independent Denton Independent
4,4176.01%2,6004.08%
School DistrictSchool District
Peterbilt Motors-Peterbilt Motors-
2,3143.15%1,4502.27%
Headquarters & PlantHeadquarters & Plant
Denton State Supported Denton County
1,7782.42%1,4412.26%
Living Center(in Denton)
Denton County
1,6812.29%Denton State School1,5352.41%
(in Denton)
Texas Woman's
1,6722.28%City of Denton1,3192.07%
University
Texas Woman's
City of Denton1,6672.27%1,3032.04%
University
Federal Emergency Denton Regional Medical
1,1001.50%8501.33%
Management AgencyCenter
Texas Presbyterian Presbyterian Hospital of
1,0761.46%8001.25%
HospitalDenton
Medical City Denton9501.29%Victor Equipment6000.94%
Total 22,07130.04%Total19,84731.12%
Source: Office of Economic Development & Denton Chamber of Commerce
147
CITY OF DENTON, TEXASTable 15
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Full-time Equivalent Employees for Fiscal Year
Function / Program20092010201120122013
General government191.63194.63195.00204.25210.25
Public safety
Police217.23217.23222.23217.23219.23
Fire163.25163.25163.25163.25167.75
Animal services8.008.008.009.0011.00
Municipal Court/Judge16.7517.5018.5019.5019.50
Public works39.0039.0039.0041.0044.00
Parks and recreation144.15143.08142.58141.08143.35
Electric system125.00129.50129.50131.50143.00
Water system160.50158.00158.50158.00154.00
Wastewater system84.8786.3788.3792.3797.25
Solid waste93.5093.5098.50105.50115.00
Airport--5.005.506.50
Materials management13.5013.5013.5012.0013.00
Fleet services21.0021.0021.0022.0022.00
Technology services25.0025.0026.0027.0029.00
Engineering-----
Risk Retention5.005.005.006.006.00
Total1,308.381,314.561,333.931,355.181,400.83
(continued on the following page)
Source: City of Denton Budget Office
148
CITY OF DENTON, TEXASTable 15
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM (concluded)
LAST TEN FISCAL YEARS
Full-time Equivalent Employees for Fiscal Year
Function / Program20142015201620172018
General government210.25218.75229.75224.75224.25
Public safety
Police225.23228.23230.23249.73253.73
Fire167.75168.25177.25184.25191.25
Animal services11.0013.0013.0014.0014.00
Municipal Court/Judge19.5019.0019.0018.0017.00
Public works46.0049.5054.5061.0060.00
Parks and recreation145.81145.81148.48157.73157.73
Electric system164.00174.00188.00191.00199.00
Water system133.50140.50144.50151.50149.00
Wastewater system100.75108.75111.25111.25110.00
Solid waste117.00120.00124.50132.50132.50
Airport6.507.507.506.506.00
Materials management15.0015.0016.0017.0018.00
Fleet services22.0022.0024.0024.0023.00
Technology services31.0036.0036.0043.0044.00
Engineering31.0034.0034.0035.0036.00
Risk Retention6.008.008.009.009.00
Total1,452.291,508.291,565.961,630.211,644.46
(concluded)
Source: City of Denton Budget Office
149
CITY OF DENTON, TEXASTable 16
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
Function / Program20092010201120122013
Public Safety
Police
Calls for service83,55783,74684,89981,10481,084
Traffic citations issued36,59833,99029,16228,32730,166
Fire
Fire calls for service3,3913,1993,4233,3163,845
EMS calls for service7,0177,2557,4587,6577,717
Inspections (Businesses)3,6224,7394,3704,3104,366
Animal Services
Animals sheltered4,3415,0424,9365,4675,420
Animals adopted, transferred, or returned2,1933,2643,7304,3324,209
Public Works
Street repaving (lane miles)17.4310.278.3315.4310.26
Pot holes repaired11,59320,98810,53510,8077,227
Cutouts base failures (square feet)126,691169,396146,925102,879114,448
Crack seal maintenance (linear feet)55,89453,712116,556117,780155,838
Parks and Recreation
Attendance
Leisure Services1,031,5301,153,6321,093,705969,858909,395
Water Park179,386193,361200,553212,123215,605
Total Acres Maintained2,6332,6332,5702,4052,272
Water
Number of customers30,28830,88931,22231,37231,837
Annual finished water production
(in thousand gallons)6,210,4726,209,9667,331,9026,750,8406,827,186
Wastewater
Number of customers28,64729,10529,51929,77230,103
Annual wastewater discharge
(in thousand gallons)4,733,8395,617,4904,852,0974,966,2504,943,270
Solid Waste
Number of customers
(residential and commercial)31,17332,04432,62133,04934,003
MSW Landfilled (tons)160,378140,284149,930164,436176,076
Recycling collections (tons)44,54050,24673,91286,88796,055
(continued on the following page)
Source: Various city departments
150
CITY OF DENTON, TEXASTable 16
OPERATING INDICATORS BY FUNCTION/PROGRAM (concluded)
LAST TEN FISCAL YEARS
Fiscal Year
Function / Program20142015201620172018
Public Safety
Police
Calls for service83,70484,43486,39987,12281,672
Traffic citations issued27,16022,02220,20722,32320,251
Fire
Fire calls for service4,1833,9334,5114,6514,978
EMS calls for service7,9778,0798,9439,6879,876
Inspections (Businesses)4,8304,0664,3613,9884,142
Animal Services
Animals sheltered5,0724,8765,0324,9444,924
Animals adopted, transferred, or returned3,8953,8704,4684,2034,236
Public Works
Street repaving (lane miles)25.5918.2125.6928.3632.01
1
Pot holes repaired8,99611,87215,25416,9726,228
2
Cutouts base failures (square feet)72,09899,085152,00295,601328,022
3
Crack seal maintenance (linear feet)77,45159,11537,828119,611438,240
Parks and Recreation
Attendance
Leisure Services1,060,988967,1321,007,1021,082,2461,166,987
Water Park209,406218,232224,893232,527210,171
Total Acres Maintained2,4252,4692,5112,2062,245
Water
Number of customers32,40533,46534,19834,71435,945
Annual finished water production
(in thousand gallons)6,155,7246,355,6086,301,3336,368,5827,141,131
Wastewater
Number of customers30,56231,24332,07732,61833,987
Annual wastewater discharge
(in thousand gallons)4,926,0805,834,1006,111,6805,175,5714,548,900
Solid Waste
Number of customers
(residential and commercial)36,59337,54039,80641,21942,499
MSW Landfilled (tons)203,928227,859251,305268,000276,537
Recycling collections (tons)87,65581,558113,743117,155105,493
(concluded)
Source: Various city departments
1
Pot hole repairs decreased in 2018 as a result of the City's continued street improvement program.
2
The repairs are part of the increased spending and exapnsion of the street improvement program.
3
The crack and micro seal preventative maintenance work was facilitated by favorable weather.
151
CITY OF DENTON, TEXASTable 17
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
Function / Program20092010201120122013
Public safety
Police
Police stations11111
Police patrol units149149143139137
Fire
Fire stations77777
Emergency vehicles2630303031
Animal services
Animals shelters11111
Public works
Lane miles added per year14.7941.771.562.4512.00
Streetlights7,0157,0166,9966,9877,020
Parks and recreation
Parks3434343434
Parks and open spaces acreage1,4381,3411,3321,4311,461
Recreation centers1212121212
Water
Water mains (miles)550558560565572
Raw water (in thousand gallons)6,471,2586,416,0867,572,1497,013,3516,776,717
Wastewater
Wastewater mains (miles)488495496501509
Maximum daily capacity (in million gallons)2525252525
Solid waste
Landfills11111
(continued on the following page)
Source: Various city departments
152
CITY OF DENTON, TEXASTable 17
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM (concluded)
LAST TEN FISCAL YEARS
Fiscal Year
Function / Program20142015201620172018
Public safety
Police
Police stations11111
Police patrol units138137141147155
Fire
Fire stations77777
Emergency vehicles3132363637
Animal services
Animals shelters11111
Public works
Lane miles added per year12.205.838.1122.4522.64
Streetlights7,0677,1647,2337,4147,771
Parks and recreation
Parks3434343434
Parks and open spaces acreage1,7831,7832,2842,2842,245
Recreation centers1212121212
Water
Water mains (miles)592604618626631
Raw water (in thousand gallons)6,195,6246,493,4576,182,4506,232,0326,946,073
Wastewater
Wastewater mains (miles)513516521526533
Maximum daily capacity (in million gallons)2525252525
Solid waste
Landfills11111
(concluded)
Source: Various city departments
153
154
CITY OF DENTON, TEXASExhibit XXXIV
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Actual on aFinal Budget -
Budgeted Amounts
BudgetaryPositive
OriginalFinalBasis(Negative)
EXPENDITURES:
Personal Service$ 2,153,124$ 2,153,124$ 2,248,085$ (94,961)
Materials and Supplies189,900189,900162,54527,355
Maintenance and Repairs25,10025,10022,6822,418
Insurance18,62318,62318,623-
Miscellaneous96,77596,775139,468(42,693)
Operations, Services196,656196,656254,268(57,612)
Transfers - Interfund149,125149,125149,125-
City Manager's Office2,829,3032,829,3032,994,796(165,493)
Personal Service282,061282,061278,4703,591
Materials and Supplies1,0001,0001,136(136)
Maintenance and Repairs1,3501,350920430
Insurance3,4713,4713,471-
Miscellaneous1,0001,000551449
Operations, Services13,44813,44810,0553,393
Transfers - Interfund20,94120,94120,91625
Cable Television323,271323,271315,5197,752
Personal Service254,302254,302176,16678,136
Materials and Supplies4,0004,0003633,637
Insurance829829829-
Operations, Services4,2504,250192,747(188,497)
Internal Audit263,381263,381370,105(106,724)
Personal Service321,435321,435291,59929,836
Materials and Supplies27,16027,1607,32519,835
Insurance3,1093,1093,109-
Operations, Services122,401122,40187,99734,404
Transfers - Interfund20,91620,91620,916-
Public Communications495,021495,021410,94684,075
Personal Service1,169,8601,169,8601,175,866(6,006)
Materials and Supplies31,15031,15020,25610,894
Maintenance and Repairs500500305195
Insurance16,01016,01016,010-
Miscellaneous60,87360,87342,77118,102
Operations, Services384,762339,762362,647(22,885)
Transfers - Interfund92,710137,710137,710-
Human Resources1,755,8651,755,8651,755,565300
Personal Service2,095,5622,095,5621,718,339377,223
Materials and Supplies59,08359,08347,86611,217
Insurance13,01413,01413,014-
Operations, Services204,435204,435139,93864,497
Transfers - Interfund81,67881,67881,678-
Legal Administration$ 2,453,772$ 2,453,772$ 2,000,835$ 452,937
(continued on the following page)
155
CITY OF DENTON, TEXASExhibit XXXIV
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Actual on aFinal Budget -
Budgeted Amounts
BudgetaryPositive
OriginalFinalBasis(Negative)
EXPENDITURES:
Personal Service$ 379,106$ 352,449$ 346,808$ 5,641
Materials and Supplies4,9431,6004,584(2,984)
Maintenance and Repairs--108(108)
Insurance4,1294,1294,129-
Operations, Services7,0837,0836,696387
Transfers - Interfund40,86370,86340,86330,000
Municipal Judge436,124436,124403,18832,936
Personal Service2,238,2822,208,2821,654,643553,639
Materials and Supplies54,55363,70971,020(7,311)
Maintenance and Repairs--60(60)
Insurance22,61322,61322,613-
Miscellaneous43,18143,18128,56314,618
Operations, Services733,168668,590791,508(122,918)
Transfers - Interfund319,134409,134409,10925
Planning3,410,9313,415,5092,977,516437,993
Personal Service2,504,2182,504,2182,239,330264,888
Materials and Supplies54,30054,30049,7204,580
Maintenance and Repairs8,4348,434538,381
Insurance36,86636,86636,866-
Operations, Services122,480117,902121,063(3,161)
Transfers - Interfund349,595349,595349,195400
Building Inspections3,075,8933,071,3152,796,227275,088
Personal Service206,570206,570165,60940,961
Materials and Supplies202,800202,800135,83266,968
Maintenance and Repairs3,0003,0004,472(1,472)
Insurance1,8241,8241,824-
Operations, Services3,6353,63551,427(47,792)
Transfers - Interfund15,81715,81715,817-
Reprographics433,646433,646374,98158,665
Personal Service338,174338,174118,712219,462
Materials and Supplies4,8504,8509273,923
Maintenance and Repairs5050-50
Insurance3,6323,6323,632-
Miscellaneous250250-250
Operations, Services12,70812,708250,621(237,913)
Transfers - Interfund33,36233,36233,33725
Gas Well Review393,026393,026407,229(14,203)
Personal Service860,530860,530856,3474,183
Materials and Supplies49,10049,10033,99915,101
Maintenance and Repairs--438(438)
Insurance50,08250,08250,082-
Miscellaneous200200214(14)
Operations, Services486,340486,340402,76483,576
Transfers - Interfund118,042118,042117,742300
Community Improvement$ 1,564,294$ 1,564,294$ 1,461,586$ 102,708
(continued on the following page)
156
CITY OF DENTON, TEXASExhibit XXXIV
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Actual on aFinal Budget -
Budgeted AmountsBudgetaryPositive
OriginalFinalBasis(Negative)
EXPENDITURES:
Personal Service$ 1,140,474$ 1,140,474$ 1,019,061$ 121,413
Materials and Supplies45,70045,70041,8583,842
Insurance15,89815,89815,898-
Miscellaneous5,000---
Operations, Services61,10064,00841,28322,725
Transfers - Interfund111,530115,030115,030-
Fixed Assets2,000592-592
Municipal Court1,381,7021,381,7021,233,130148,572
Personal Service2,592,1282,592,1282,592,252(124)
Materials and Supplies84,50383,34655,30528,041
Maintenance and Repairs675675675-
Insurance22,28722,28722,287-
Miscellaneous1,4151,415690725
Operations, Services129,256105,74262,98542,757
Transfers - Interfund245,956268,827257,36711,460
Finance3,076,2203,074,4202,991,56182,859
Personal Service649,372649,372647,7601,612
Materials and Supplies56,64346,64335,41011,233
Maintenance and Repairs10,6005,6001,9843,616
Insurance6,2886,2886,288-
Miscellaneous91,39791,39796,061(4,664)
Operations, Services3,589,2083,604,2082,663,765940,443
Transfers - Interfund54,56354,56342,56312,000
Economic Development4,458,0714,458,0713,493,831964,240
Personal Service8,086,5548,086,0547,508,825577,229
Materials and Supplies874,227874,223721,018153,205
Maintenance and Repairs626,882616,097559,10556,992
Insurance172,650172,650172,650-
Miscellaneous--685(685)
Operations, Services2,652,9042,622,8492,748,394(125,545)
Transfers - Interfund983,4381,599,7821,597,3822,400
Fixed Assets--45,543(45,543)
Parks & Recreation13,396,65513,971,65513,353,602618,053
Personal Service1,730,8381,730,8381,551,073179,765
Materials and Supplies43,84143,84145,912(2,071)
Maintenance and Repairs1,164,8351,018,925936,18282,743
Insurance21,97821,97821,978-
Miscellaneous1,2271,227693534
Operations, Services1,196,8901,196,8901,237,731(40,841)
Transfers - Interfund165,033310,943310,618325
Fixed Assets--7,438(7,438)
Facilities Management4,324,6424,324,6424,111,625213,017
Personal Service3,823,7743,797,7743,533,325264,449
Materials and Supplies152,288159,992153,2486,744
Maintenance and Repairs67,58871,31369,5881,725
Insurance73,11373,11373,113-
Operations, Services460,437464,223415,45348,770
Transfers - Interfund1,011,9121,011,9121,011,86250
Fixed Assets475,000485,785485,76520
Library$ 6,064,112$ 6,064,112$ 5,742,354$ 321,758
(continued on the following page)
157
CITY OF DENTON, TEXASExhibit XXXIV
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Actual on aFinal Budget -
Budgeted Amounts
BudgetaryPositive
OriginalFinalBasis(Negative)
EXPENDITURES:
Personal Service$ 384,246$ 384,246$ 252,965$ 131,281
Materials and Supplies13,90013,9004,2649,636
Maintenance and Repairs50,300300-300
Insurance1,9581,9581,958-
Miscellaneous4,9004,9001,6243,276
Operations, Services180,297180,297154,52225,775
Transfers - Interfund211,057211,057211,057-
Transportation Operations846,658796,658626,390170,268
Personal Service943,060943,060878,96964,091
Materials and Supplies15,30815,30816,525(1,217)
Maintenance and Repairs645,200695,200692,3692,831
Insurance14,17914,17914,179-
Miscellaneous2,2002,2002,085115
Operations, Services152,888152,888152,006882
Transfers - Interfund99,1932,219,1932,218,918275
Traffic Operations1,872,0284,042,0283,975,05166,977
Operations, Services755,000755,000801,318(46,318)
Street Lighting755,000755,000801,318(46,318)
Personal Service27,938,48927,909,91927,092,461817,458
Materials and Supplies424,895424,895437,963(13,068)
Maintenance and Repairs214,000214,000210,7783,222
Insurance447,847447,847447,847-
Miscellaneous147,897147,897145,5642,333
Operations, Services981,097981,0971,033,654(52,557)
Transfers - Interfund2,143,5812,172,1512,215,506(43,355)
Police32,297,80632,297,80631,583,773714,033
Personal Service931,170931,170940,616(9,446)
Materials and Supplies56,13456,13444,93411,200
Maintenance and Repairs21,50021,50012,7888,712
Insurance20,64820,64820,648-
Operations, Services439,448439,448421,88417,564
Transfers - Interfund90,30590,30590,180125
Animal Services1,559,2051,559,2051,531,05028,155
Personal Service24,783,67524,783,67525,419,513(635,838)
Materials and Supplies632,533566,733543,80722,926
Maintenance and Repairs262,140239,640207,88531,755
Insurance237,332237,332237,332-
Miscellaneous135,085127,08575,55951,526
Operations, Services1,298,2651,287,7651,480,049(192,284)
Transfers - Interfund1,282,5501,430,4501,449,900(19,450)
Fixed Assets80,00038,90058,975(20,075)
Fire$ 28,711,580$ 28,711,580$ 29,473,020$ (761,440)
(continued on the following page)
158
CITY OF DENTON, TEXASExhibit XXXIV
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (concluded)
GENERAL FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Variance with
Actual on aFinal Budget -
Budgeted AmountsBudgetaryPositive
OriginalFinalBasis(Negative)
EXPENDITURES:
Personal Service$ 281,699$ 281,699$ 289,243$ (7,544)
Materials and Supplies1,7501,7501,370380
Insurance3,3123,3123,312-
Miscellaneous307,355307,355309,620(2,265)
Operations, Services3,8183,8183,988(170)
Transfers - Interfund31,80431,80431,77925
Agency Contributions629,738629,738639,312(9,574)
Personal Service(1,475,857)(1,591,332)73,559(1,664,891)
Materials and Supplies80,00041,80046,498(4,698)
Maintenance and Repairs--134(134)
Miscellaneous257,100297,100256,17440,926
Operations, Services1,756,2041,727,9201,569,796158,124
Transfers - Interfund2,262,6005,396,5575,373,64122,916
Fixed Assets-28,28426,2102,074
Miscellaneous/Finance2,880,0475,900,3297,346,012(1,445,683)
Personal Service84,612,84684,385,64483,069,5961,316,048
Materials and Supplies3,164,5613,062,9172,683,685379,232
Maintenance and Repairs3,102,1542,921,6842,720,526201,158
Insurance1,211,6921,211,6921,211,692-
Miscellaneous1,155,8551,182,8551,100,32282,533
Operations, Services15,948,17815,763,36315,458,559304,804
Transfers - Interfund9,935,70516,319,75716,302,21117,546
Fixed Assets557,000553,561623,931(70,370)
TOTAL GENERAL FUND$ 119,687,991$ 125,401,473$ 123,170,522$ 2,230,951
(concluded)
159
160
Government Auditing Standards
GOVERNMENT AUDITING STANDARDS
Government Auditing Standards
Internal Control over Financial Reporting
deficiency in internal control
material weakness
significant deficiency
Compliance and Other Matters
Government Auditing Standards.
Government Auditing
Standards
OMBCompliance Supplement Uniform Grants Management Standards
Management’s Responsibility
Auditor’s Responsibility
Government Auditing Standards
Code of Federal Regulations
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards
Opinion on Each Major Federal and State Program
Uniform Grant Management
Standards
deficiency in internal control over compliance
material weakness in internal control over compliance
significant deficiency in internal control over
compliance
Uniform Grant Management Standards
Uniform Grant Management Standards
Generally Accepted Government Auditing Standards
,
Significant Accounting Policies
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions
Significant Accounting Estimates
Financial Statement Disclosures
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-120,Version:1
AGENDA CAPTION
Receive a report, hold a discussion, and give staff direction regarding New Market Tax Credits.
City of DentonPage 1 of 1Printed on 3/15/2019
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City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Economic Development
CM/ DCM/ ACM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Receive a report, hold a discussion, and give staff direction regarding New Market Tax Credits.
BACKGROUND
The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new
or increased private investments into operating businesses and real estate projects located in low-income
communities.
The NMTC Program attracts investment capital to low-income communities by permitting individual and
corporate investors to receive a tax credit against their Federal income tax return in exchange for making
equity investments in specialized financial institutions called Community Development Entities (CDEs). In
turn, the CDE uses the proceeds of those investments to make loans with favorable terms (such as below-
market interest rates) to qualified businesses or nonprofits in low-income communities. Examples of
qualified businesses in NMTC transactions include large mixed use facilities, apartment buildings, student
housing, hotels, restaurants, charter schools, and community facilities, among others.
While the economics of an NMTC investment vary depending on the facts and circumstances of the deal,
the credit benefits all parties. The entity making the investment will receive tax credits and the return of
some or all of its equity investment. The CDE will earn fees from the use of its funding allocation and
management of the selected investments. The qualified business that ultimately receives the loan will get
reduced financing costs.
Definitions
A number of terms are necessary to understand the NMTC Program and the roles of the different entities
involved in the process. The main ones are included below.
New Market Tax Credits (NMTCs) are granted for a 7-year term. This allows for a 5% credit in years 1-3
and a 6% credit in years 4-7 for a total credit of 39% of the investment.
Certified Development Financial Institution (CDFI): a division of Treasury Department with the credit
authority for the program authorized by Congress. The agency is charged with oversight of the NMTC
program.
Certified Development Entity (CDE): an intermediary that makes the investment or the loan. The CDE must
be certified by the CDFI. Banks, developers, and local governments are eligible to become a CDE.
Qualified Equity Investment (QEI): an investment paid to the CDE to obtain equity in the CDE. The CDE
grants this investment as a QLICI.
Qualified Low-Income Community Investment (QLICI) is typically a loan or investment to any qualified
active low-income community business.
Qualified Active Low-Income Community Business (QALICB) is a recipient of a loan; it can be a business
or a non-profit.
Low Income Community designation requires a census tract with a poverty rate which exceeds 20% or the
median income is below 80% of the greater of the state or metropolitan statistical area (Dallas-Fort Worth-
Arlington) median income. The eligible NMTC 2010 Census tracts in Denton are included in Exhibit 2.
Process
Figure 1. Visual Depiction of the NMTC Process from Capital Impact Partners
The first step in the application process is certification. A Certified Development Entity (CDE) intermediary
must be certified by the CDFI in order to be eligible under the NMTC program.
The second step is the completion and submittal of an application. The funding cycle opens in with the
Notice of Allocation Availability (NOAA) in May and is awarded the following winter. The application
consists of five parts: Business Strategy, Community Outcomes, Management Capacity, Capitalization
Strategy and Previous Awards.
If selected, the third step in the application process is the award announcement, which is followed by the
allocation agreement.
The final step is compliance and reporting on the measurable community impact of the NMTC project.
If selected for funding, a CDE identifies equity investors. The NMTCs usually are combined with other
funding sources, such as historic tax credits, in order to make the projects work. Examples of projects CDEs
invest in are: manufacturing, retail, or healthcare facilities.
-
a failure to: invest 85% of the original QEI, meet QALICB requirements, or meet the one-year investment
requirement.
Table 1: Texas CDEs That Received Funding in
2016-2017
Service
Awardee City State Year Program Amount
Area
Dallas Development Fund Dallas TX 2017 NMTC $55,000,000 Local
Fort
Pacesetter CDE, Inc. TX 2016 NMTC $35,000,000 National
Worth
PeopleFund NMTC LLC Austin TX 2017 NMTC $30,000,000 State
PeopleFund NMTC LLC Austin TX 2016 NMTC $30,000,000 State
Texas Mezzanine Fund, Inc. Dallas TX 2016 NMTC $75,000,000 State
San
TransPecos Development Corp TX 2017 NMTC $65,000,000 State
Antonio
Source: CDFI
Note: Awardee column has active links for more details on each award
Pros and Cons
Some of the advantages and disadvantages of the NMTC program are included in the table below.
Advantages Disadvantages
The operation of residential rental property does not constitute
Mixed use projects can be a qualifying business a qualifying business
Tax credit claims are spread over 7 years: 5% each year for the
NMTC is generated at the moment a QEI is made into for the 1st 3 years, and 6% each year for the next 4 years for a
a CDE total of 39%; usually need to be combined with other funding
Can be combined with historic rehabilitation tax credits Cannot be combined with low income tax credits
Local government and quasi-governmental CDEs were awarded
QALICB (business) generally receives favorable terms less often and for smaller allocations; 2% of projects in 2013
or equity, but need to provide collateral to the CDE were associated with governmental or tribal organizations
2
Leveraging of the equity investment and the loan allow Credit allocation process is very complicated and competitive
for a return that is closer to a conventional loan (25% of applicants receive the allocation)
1
The tax credit equals 39% of the Qualified Equity Investment
NMTC administration is easier in the long term than
(QEI). Investor may have borrowed to make the equity
some federal grant programs.
investment
A CDE may be able to provide a grant and/or a bridge The initial program is difficult to establish and requires funding
loan to assist with closing and permitting components to be in place at closing
Holland and Knight's Leveraged Model
1
Source: Tax Policy Center Briefing Book "A Citizen's Guide to the Fascinating (though often Complex) Elements of the Federal tax
2
System," 2016
Timeframes for a QALICB to receive funding from a CDE can range from 12 to 24 months. Successful
funding requests often involve significant expenses for the business to hire specialized consultants,
accountants, and attorneys.
EXHIBITS
Exhibit 1 Agenda Information Sheet
Exhibit 2 Eligible NMTC Census tracts in Denton
Exhibit 3 Presentation
Respectfully submitted:
Caroline Booth
Director of Economic Development
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:DCA18-0009g,Version:1
AGENDA CAPTION
Receive a report, hold a discussion, and provide staff direction on the Denton Development Code Update and
Draft Zoning Map.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Department of Development Services
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Receive a report, hold a discussion, and provide staff direction on the Denton Development Code Update
and Draft Zoning Map.
BACKGROUND
At the work session staff will discuss the Denton Development Code (DDC) Update and Draft Zoning Map.
Staff will summarize the following draft Subchapters listed below and discuss associated significant
changes being proposed:
Subchapter 4 - Overlay and Historic Districts (pages 159 – 198)
Subchapter 5 - Use Regulations (pages 199 – 302) \[Continued from the previous work session\]
Subchapter 6 - Development Standards (pages 303- 438) \[This Subchapter will be introduced and
further discussed at the next work session\]
If possible, please provide your comments/questions to staff in advance by email so that staff can prepare a
response prior to the work session.
Staff has organized a series of Planning and Zoning Commission and City Council work sessions (outlined
below) to respond to questions and provide clarification. The series of work sessions are spread out to
ensure that there is ample time for the Commission and City Council to discuss the DDC Update. The work
sessions are grouped by topic to help facilitate the discussion. Below is a brief outline and schedule of each
work session:
Work Session #2
Dates Topics Subchapters
February 20 – Planning Nonconformities Subchapter 1 - General
and Zoning Commission Provisions (pages 1 – 14)
Status of Pending
(completed)
Applications/Approved Subchapter 2 -
February 26 - City ProjectsAdministration and
Council (completed) Procedures (pages 15 –
Transition to New Zoning
108)
Districts
Subchapter 3 - Subchapter
Summary Table of
3 - Zoning Districts (pages
Review Procedures
109 – 158) \[This
Citizen Participation
Subchapter will be
Certification of Zoning
introduced and further
Compliance
discussed at the next work
Planned Development
session\]
Minor Modifications
Zoning Districts \[This
topic will be introduced
and further discussed at
the next work session\]
Work Session #3
Dates Topics Subchapters
February 27 – Planning Zoning Districts Subchapter 3 - Zoning
and Zoning Commission o Purpose Districts (pages 109 –
o Dimensional 158) \[Continued\]
March 5 - City Council
Standards
(completed)
Subchapter 5 - Use
Zoning Map Regulations (pages 199 –
302)
Master Planned
Communities (MPCs) and
Planned Developments
(PDs)
Conditioned Zoning
Table of Allowed Uses
o New Uses
o Approval Type
Use-specific Standards
Work Session #4
Dates Topics Subchapters
March 6 – Planning and Zoning Map Subchapter 4 - Overlay
Zoning Commission and Historic Districts
Table of Allowed Uses
(pages 159 – 198)
March 19 - City Council
Use-specific Standards
Subchapter 5 - Use
Overlay and Historic
Regulations (pages 199 –
Districts
302) \[Continued\]
o Rayzor Ranch
Subchapter 6 -
o Historic Districts
Development Standards
Development Standards
(pages 303- 438) \[This
\[This topic will be
Subchapter will be
introduced and further
introduced and further
discussed at the next work
discussed at the next work
session\]
session\]
Work Session #5
Dates Topics Subchapters
March 20 – Planning and Landscaping, Screening, Subchapter 6 -
Zoning Commission Buffering, and Fences Development Standards
(pages 303 - 438)
March 26 - City Council Parking and Loading
\[Continued\]
Site and Building Design
Subchapter 7 -
Open Space Requirements
Subdivision Regulations
Gated Community
(pages 439 – 460)
Cluster Development
Subchapter 8 –
Homeowners Association
Definitions (pages 460 –
Definitions
510)
An Initial Adoption Draft of the DDC Update and Draft Zoning Map was made available online for all to
review on Friday, March 15. We encourage individuals interested in the DDC Update and Draft Zoning
Map to visit www.DentonCode2030.com for more information or they can call Development Services at
(940) 349-8541 during office hours to talk with a member of the City’s Planning staff.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
City Council and Planning and Zoning Commission
September 11, 2012 – City Council approved contract with Clarion Associates
December 13, 2016 – City Council approved first amendment to contract
April 28, 2017, – Purchasing staff approved second amendment to contract
November 7, 2017 - City Council approved third amendment to contract
March 27, 2018 – City Council Work Session regarding Administration and Procedures (Module
2)
March 28, 2018 – Special Called Planning and Zoning Commission Work Session regarding
Administration and Procedures (Module 2)
April 10, 2018 - City Council Work Session regarding DDC Advisory Committee
November 14, 2018 – Planning and Zoning Commission Work Session
February 12, 2019 – City Council Work Session #1
February 13, 2019 - Planning and Zoning Commission Work Session #1
February 20, 2019 - Planning and Zoning Commission Work Session #2
February 26, 2019 – City Council Work Session #2
February 27, 2019 - Planning and Zoning Commission Work Session #3
March 5, 2019 – City Council Work Session #3
March 6, 2019 - Planning and Zoning Commission Work Session #4
Development Code Review Committee
32 meetings
Other Boards and Commissions
October 29, 2018 – Zoning Board of Adjustment Meeting
November 12, 2018 – Historic Landmark Commission
Public Meetings
June 7, 2017 – Kick-off Open House
September 28, 2017 – Zoning Districts and Use Regulations (Module 1) Public Meeting
November 13 - 15, 2017 – Zoning Districts and Use Regulations (Module 1) Public Meetings
March 28, 2018 - Administration and Procedures (Module 2) Public Meeting
April 21, 2018 – Redbud Festival
April 23, 2018 – Public Meeting at Fred Moore High School
April 26, 2018 – Public Meeting at LaGrone Advance Technology Center
May 2 – 3, 2018 – Office Hours at Development Services Center
May 5, 2018 – Denton Community Market
May 7, 2018 - Public Meeting at the Denton Convention Center
May 10, 2018 - Public Meeting at Sam Houston Elementary School
May 12, 2018 - Public Meeting at the Civic Center
June 22, 2018 – Juneteenth Celebration
August 4, 2018 – Denton Community Market
October 6, 2018 – Denton Community Market
November 3, 2018 – Denton Community Market
January 17, 2019 – State of the City
February 13, 2019 - Public Meeting #1 at the Council Chamber
February 25, 2019 - Public Meeting #2 at the Council Chamber
February 28, 2019 - Public Meeting #3 at the Civic Center
March 18, 2019 - Public Meeting #4 at the Civic Center
Stakeholder Meetings
March 28, 2018 - Denton Community Development Alliance
April 18, 2018 - Denton Community Development Alliance
April 18, 2018 - Administration and Procedures (Module 3) Public Meeting
April 30, 2018 – Denia Neighborhood Meeting
May 15, 2018 – AIA Dallas Codes and Standards Committee
May 21, 2018 – Evening Rotary Club
June 11, 2-18 – North Texas Fair and Rodeo Board (President)
July 10, 2018 – Kiwanis Meeting
August 27, 2018 – SEDNA Meeting
November 6, 2018 – Kiwanis Meeting
November 27, 2018 – AIA Dallas Codes and Standards Committee
November 28, 2018 - Denton Community Development Alliance
December 3, 2018 – Denia Neighborhood Meeting
February 13, 2019 - Denton Community Development Alliance
February 18, 2019 - Denton Community Development Alliance
EXHIBITS
1. Agenda Information Sheet
2. Comparison of Allowed Uses Table
3. Comparison of General Regulations Table
4. Presentation
Respectfully submitted:
Richard Cannone, AICP
Deputy Director/Planning Director
Prepared by:
Ron Menguita, AICP
Principal Planner
LIVING
LIVING
HOUSEHOLDGROUP
FACILITIES
USES
ANIMAL
CULTURAL
AND
FACILITIES
AND
FACILITIES
COMMUNITYEDUCATIONALHEALTHCAREAGRICULTURAL
SERVICES
SERVICES
PROFESSIONAL
ENTERTAINMENT
AND
AND
BEVERAGES
BUSINESS,
AND
RECREATIONALFOODOFFIC,
SERVICES
SALES
PERSONALRETAIL
EQUIPMENT
FACILITIES
AND
LODGINGVEHICLES
ESTABLISHMENTS
PROCESSING
AND
WAREHOUSING
AND
ENTERTAINMENT
ADULTMANUFACTURINGSTORAGE
USES
UTILITY
PUBLIC
SEMI
USES
AND
PUBLICACCESSORY
USES
TEMPORARY
City Hall
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215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-569,Version:1
AGENDA CAPTION
Receive a report, hold a discussion, and provide staff direction regarding Senate Bill 1156 which was recently
th
introduced in the 86 Texas Legislature and would require the Texas Railroad Commission to hold public
hearings on certain gas well permit applications.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Public Affairs / IGR
CM/ DCM/ ACM: Bryan Langley, Deputy City Manager
DATE: March 19, 2019
SUBJECT
Receive a report, hold a discussion, and provide staff direction regarding Senate Bill 1156 which was
th
recently introduced in the 86 Texas Legislature and would require the Texas Railroad Commission to hold
public hearings on certain gas well permit applications.
BACKGROUND
SB 1156 was filed by Senator Judith Zaffirini (D, District 21) on Feb. 26, 2019. SB 1156 would require
the Texas Railroad Commission to hold public hearings on certain gas well permit applications. The full
text of the bill is attached (see Attachment 3); however, the following further describes the key points of
the bill:
The Railroad Commission shall require that an applicant for a permit to drill a new oil or gas well
indicate on the application whether the proposed well site is located within 1,500 feet of the property
line of a child-care facility, private school, or primary or secondary public school;
The Railroad Commission cannot grant an application for a permit to drill a new oil or gas well if
the proposed well site is located within 1,500 feet of the property line of a child-care facility, private
school, or primary or secondary public school unless:
o The Railroad Commission holds a public hearing in the county in which the proposed well
site is located to receive public comments on whether granting the permit application is in
the public interest; and
o The Railroad Commission considers the comments received when determining whether to
grant the application.
SB 1156 was introduced and referred to the Senate Natural Resources and Economic Development
Committee on March 7.
Representative Chris Turner (D, District 101) filed HB 2920, a companion bill that is identically worded to
SB 1156, on March 1. On March 12, HB 2920 was referred to the House Energy Resources Committee.
th
The same bill was filed by Senator Zaffirini in the prior 85 Texas Legislature session in 2017 as SB 1868.
The bill was introduced and referred to the Senate Natural Resources and Economic Development
Committee, but it did not receive a hearing and did not proceed forward.
DISCUSSION
Council Members requested for this bill to be discussed and for a position on the bill to be considered by
City Council. If Council wishes to take a position on the bill, staff can draft a resolution for Council
consideration at the March 26 Council meeting.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
EXHIBITS
Exhibit 1 Agenda Information Sheet
Exhibit 2 Presentation
Exhibit 3 SB 1156 Legislation
Respectfully submitted:
Sarah Kuechler
Director of Public Affairs
Jessica Rogers
Deputy Director of Public Affairs
86R7485 JXC-F
By: Zaffirini S.B. No. 1156
A BILL TO BE ENTITLED
AN ACT
relating to the requirement of a public hearing on certain
applications for a permit to drill an oil or gas well.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 91, Natural Resources Code,
is amended by adding Section 91.118 to read as follows:
Sec. 91.118. PUBLIC HEARING ON CERTAIN DRILLING PERMIT
APPLICATIONS. (a) In this section:
(1) "Child-care facility" has the meaning assigned by
Section 42.002, Human Resources Code.
(2) "Private school" means a private school, including
a parochial school, that:
(A) offers a course of instruction for students in
one or more grades from kindergarten through grade 12; and
(B) has more than 100 students enrolled and
attending courses at a single location.
(b) The commission by rule shall require an applicant for a
permit to drill a new oil or gas well to indicate on the application
whether the proposed well site is located within 1,500 feet of the
Page - 1 -
S.B. No. 1156
property line of a child-care facility, private school, or primary
or secondary public school.
(c) The commission may not grant an application for a permit
to drill a new oil or gas well if the proposed well site is located
within 1,500 feet of the property line of a child-care facility,
private school, or primary or secondary public school unless:
(1) the commission holds a public hearing in the county
in which the proposed well site is located to receive public
comments on whether granting the permit application is in the
public interest; and
(2) the commission considers the comments received when
determining whether to grant the application.
(d) This section does not affect the authority of a political
subdivision to enact, amend, or enforce an ordinance or other
measure related to the drilling of new oil or gas wells.
SECTION 2. The change in law made by this Act applies only
to a permit application submitted to the Railroad Commission of
Texas on or after the effective date of the rules adopted under
Section 91.118, Natural Resources Code, as added by this Act. A
permit application submitted before the effective date of the rules
adopted under Section 91.118, Natural Resources Code, as added by
this Act, is governed by the law in effect when the permit
application was submitted, and the former law is continued in
Page -2 -
S.B. No. 1156
effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.
Page -3 -
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Legislation Text
File #:ID 19-363,Version:1
AGENDA CAPTION
Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code
Section 551.086; Consultation with Attorneys - Under Texas Government Code Section 551.071.
DiscussanddeliberateonstrategiesandopportunitiesfortheCitytoacquirenaturalgasfortheDentonEnergy
Center(“DEC”);receiveapresentationfromstaffregardingpublicpowercompetitiveandfinancialmattersfor
thepurchaseofnaturalgas;andproviderecommendationsonthepurchaseofnaturalgasundertheexisting
BaseContractforthePurchaseandSaleofNaturalGaswithEnterpriseProductsOperating,LLC.Consultation
withtheCity’sattorneysregardinglegalissuesassociatedwiththeagreementsdescribedabovewhere
discussionoftheselegalmattersinanopenmeetingwouldconflictwiththedutyoftheCity’sattorneystothe
CityofDentonandtheDentonCityCouncilundertheTexasDisciplinaryRulesofProfessionalConductofthe
State Bar of Texas.
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Legislation Text
File #:ID 19-557,Version:1
AGENDA CAPTION
Deliberations Regarding Real Property - Under Texas Government Code, Section 551.072; 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 real property interests located within the City of Denton, Denton County, Texas, generally
located in the N. Britton, M. Forrest, W. Durham, Woodrow, A. Hickman, Gideon Walker, Home, and J.W.
Withers surveys. The potential purchases are related to the City’s park and tree preservation initiatives.
Consultation with the City’s attorneys regarding legal issues associated with the potential acquisition of the real
property interests described above 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 Rules of Professional
Conduct of the State Bar of Texas.
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Legislation Text
File #:ID 19-611,Version:1
AGENDA CAPTION
DeliberationsregardingRealProperty-UnderTexasGovernmentCodeSection551.072;Consultationwith
Attorneys - Under Texas Government Code Section 551.071.
Receiveinformationfromstaff,discuss,deliberate,andprovidestaffwithdirectionpertainingtothepotential
acquisitionofrealpropertyinterestsintheEugenePuchalskiSurvey,AbstractNo.996,DentonCounty,Texas,
andlocatedgenerallyalongthenorthsideofthe1200and1300blocksofWestOakStreet,CityofDenton,
Texas.ConsultationwiththeCity’sattorneysregardinglegalissuesassociatedwiththepotentialacquisitionor
condemnationoftherealpropertyinterestsdescribedabovewhereapublicdiscussionoftheselegalmatters
wouldconflictwiththedutyoftheCity’sattorneystotheCityofDentonandtheDentonCityCouncilunder
theTexasDisciplinaryRulesofProfessionalConductoftheStateBarofTexas,orwouldjeopardizetheCity’s
legal position in any administrative proceeding or potential litigation. (West Oak Parking)
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Legislation Text
File #:ID 19-556,Version:1
AGENDA CAPTION
National Blood Clot Awareness Month
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Legislation Text
File #:ID 19-513,Version:1
AGENDA CAPTION
Charlotte Robinson regarding climate change.
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Legislation Text
File #:ID 19-616,Version:1
AGENDA CAPTION
Ronald Shenberger regarding community-based internet service.
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Legislation Text
File #:ID 19-414,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDenton,aTexashome-rulemunicipalcorporation,authorizing
andapprovingtheCityManager,orhisdesignee,toexecuteanagreementwithSTHProject,Inc.,anon-profit
corporation,providingforauthorizationofSTHProject,Inc.,toprovidefreelunchestochildrenundertheage
ofeighteenandqualifyingdisabledparticipantsthroughage21atnochargetosaidrecipientsduringthe
summer months at designated City of Denton Park and Recreation facility sites; and providing an effective date.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Parks and Recreation
CM/ DCM/ ACM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing and approving the City Manager, or his designee, to execute an agreement with STHProject,
Inc., a non-profit corporation, providing for authorization of STHProject, Inc., to provide free lunches to
children under the age of eighteen and qualifying disabled participants through age 21 at no charge to said
recipients during the summer months at designated City of Denton Park and Recreation facility sites; and
providing an effective date.
BACKGROUND
The Summer Food Service Program (SFSP) ensures that low-income children continue to receive nutritious
meals when school is not in session. Children 18 and younger may receive free meals and snacks through
SFSP. Meals and snacks are also available to persons with disabilities, over age 18, who participate in
school programs for people who are mentally or physically disabled.
Since 2005, the Parks and Recreation Departments (PARD) has facilitated the SFSP. The SFSP was
provided through a grant that covered the direct cost of the program. In 2016 the SFSP budget was $223,038
and included temp/seasonal personnel costs, food, supplies, rental vans, gas, and coolers. In 2017, the
department partnered with the STHProject, a local private nonprofit, to administer the SFSP. The
STHProject started serving a free dinner at the MLK Jr. Recreation Center in the fall of 2016. Since the
free dinner program was a success the STHProject approached the City and offered to take over the SFSP.
STHProject provides the food at no cost to the City and saves PARD approximately $17,283 in staff time
that was not covered by the grant. It also allowed full time staff to focus on summer camps by reducing the
time they spent contracting with DISD to provide food, delivery of food to SFSP sites, serving food,
documenting meals served and requesting reimbursement for expenditures.
The STHProject currently serves dinner Monday - Friday at the MLK Jr. and Denia Recreation Center year
round. During the summer they offer lunch and a snack at the following camps:
Camp Voyage and Denia Preschool at Denia Recreation Center
Camp Discovery and MLK Jr. Preschool at MLK Jr. Recreation Center
Camp Quest at North Lakes Recreation Center
Camp Exploration at the Denton Civic Center
Super Kids McMath Middle School
STHProject served over 35,222 and 29,550 school year dinners. They
also serve members of the community at the recreation center locations.
RECOMMENDATION
Staff recommends adoption of the ordinance.
FISCAL INFORMATION
The service is free and has saved PARD approximately $17,283 in staff time.
EXHIBITS
Exhibit 1 Agenda Information Sheet
Exhibit 2 Ordinance
Exhibit 3 STHProject Summer Food Program Contract
Respectfully submitted:
Gary Packan
Director, Parks and Recreation
Prepared by:
Caroline Seward
Program Area Manager
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Legislation Text
File #:ID 19-444,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDentonauthorizinganagreementbetweentheCityofDenton,
TexasandFilmmakingAccess,Inc.,forthepurposeof2019OracleinTimesponsorship;providingforthe
expenditureoffunds;andprovidinganeffectivedate.($500)TheHotelOccupancyTaxandSponsorship
Committee recommends approval (2-0).
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Finance
DCM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of
Denton, Texas and Filmmaking Access, Inc., for the purpose of the 2019 Oracle in Time sponsorship;
providing for the expenditure of funds: and providing for an effective date. ($500 Hotel Occupancy Tax
and Sponsorship Committee recommends 2-0)
BACKGROUND
This agreement allows for the total expenditure of $500 fund. Key provisions
of the Agreement include:
Funds shall be used by Filmmaking Access for the 2019 Oracle in Time in accordance with the
budget attached as Exhibit A.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The Hotel Occupancy Tax and Sponsorship Committee reviewed additional sponsorship budget
applications on February 28, 2019 and recommends this organization to receive $500 of the remaining
$3,100 in the fund balance.
FISCAL INFORMATION
Funding for this agreement will come from the -19.
EXHIBITS
1. Agenda Information Sheet
2. Ordinance
Respectfully Submitted,
Antonio Puente, Jr.
Chief Financial Officer
Prepared by:
Randee Klingele
Treasury Analyst
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-477,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDenton,aTexashome-rulemunicipalcorporation,accepting
competitivebidsandawardingacontractforthesupplyofTrafficSignsandAccessoriesfortheCityofDenton
DistributionCenter;providingfortheexpenditureoffundstherefor;andprovidinganeffectivedate(IFB6883
-awardedtothelowestresponsivebidderforeachlineitem:CenterlineSupply,Inc.,inatotalnot-to-exceed
amountof$82,000,DobieSupply,LLC,inatotalnot-to-exceedamountof$344,000,Vulcan,Inc.,inatotal
not-to-exceed amount of $22,000, in a total four (4) year, not-to-exceed amount of $448,000).
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
accepting competitive bids and awarding a contract for the supply of Traffic Signs and Accessories for the
City of Denton Distribution Center; providing for the expenditure of funds therefor; and providing an
effective date (IFB 6883 - awarded to the lowest responsive bidder for each line item: Centerline Supply,
Inc., in a total not-to-exceed amount of $82,000, Dobie Supply, LLC, in a total not-to-exceed amount of
$344,000, Vulcan, Inc., in a total not-to-exceed amount of $22,000, in a total four (4) year, not-to-exceed
amount of $448,000).
IFB INFORMATION /BACKGROUND
This Invitation for bid (IFB) is for traffic signs and accessories including posts, barricades, safety netting,
cones, warning light flashers, sign bases, and glass beads. The items are stocked by the
Center and sold to various field service departments as needed. Most of the items are used to provide traffic
control devices in work zones. The sign blanks and posts are utilized by the Traffic Department to replace
or install new roadway signs. These items will be carried in the Distribution Center Working Capital
inventory. The items are stocked by the Distribution Center and used as needed.
Invitation for bids was sent to 156 prospective suppliers of this item. In addition, specifications were placed
on the Materials Management website for prospective suppliers to download and advertised in the local
newspaper. Five (5) bids were received. The awarded vendor for each item is highlighted on the bid
tabulation (Exhibit 2). P ricing was not received for line item numbers 1 and 2, therefore, these items will
not be awarded.
RECOMMENDATION
Award a contract for Traffic Signs and Accessories to the lowest responsive bidder meeting specifications
for each line item, in the four (4) year not-to-exceed amount of $448,000. This amount is based on the
purchase history for items included in the IFB, but quantities will vary depending on operating needs.
PRINCIPAL PLACE OF BUSINESS
Dobie Supply, LLC Centerline Supply, Inc.
Austin, TX Grand Prairie, TX
Vulcan Inc.
Foley, AL
ESTIMATED SCHEDULE OF PROJECT
This is a four (4) year contract.
FISCAL INFORMATION
These items will be funded out of the Distribution Center Working Capital account and charged back to the
using department.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Bid Tabulation
Exhibit 3: Ordinance and Contracts
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Laura Hermosillo at 940-349-8438.
Legal point of contact: Mack Reinwand at 940-349-8333.
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-515,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDentonauthorizinganagreementbetweentheCityofDenton,
nd
Texas,andDentonBlackChamberofCommerce,Inc.forthepurposeof22AnnualBanquetsponsorship;
providingfortheexpenditureoffunds;andprovidingforaneffectivedate.($440)TheHotelOccupancyTax
and Sponsorship Committee recommends approval (2-0).
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Finance
DCM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Consider an adoption of an ordinance of the City of Denton authorizing an agreement between the City of
nd
Denton, Texas, and Denton Black Chamber of Commerce, Inc. for the purpose of 22 Annual Banquet
sponsorship; providing for the expenditure of funds; and providing for an effective date. ($440 Hotel
Occupancy Tax and Sponsorship Committee recommends approval 2-0)
BACKGROUND
This agreement allows for the total expenditure of $440 Key provisions
of the Agreement include:
nd
Funds shall be used by Denton Black Chamber of Commerce, Inc. for the 22 Annual Banquet in
accordance with the budget attached as Exhibit A.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The Hotel Occupancy Tax and Sponsorship Committee reviewed additional sponsorship budget
applications on February 28, 2019 and recommends this organization to receive $440 of the remaining
$3,100 in the fund balance.
FISCAL INFORMATION
in Fiscal Year 2018-19.
EXHIBITS
1. Agenda Information Sheet
2. Ordinance
Respectfully submitted:
Antonio Puente, Jr.
Chief Financial Officer
Prepared by:
Randee Klingele
Treasury Analyst
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-516,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDentonauthorizinganagreementbetweentheCityofDenton,
Texas,andHabitatforHumanityofDentonCounty,Inc.forthepurposeDreamBuilder’sLuncheon
sponsorship;providingfortheexpenditureoffunds;andprovidingforaneffectivedate.($500)TheHotel
Occupancy Tax and Sponsorship Committee recommends approval (2-0).
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Finance
DCM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Consider an adoption of an ordinance of the City of Denton authorizing an agreement between the City of
Denton, Texas, and Habitat for Humanity of Denton County, Inc. for the purpose of
Luncheon sponsorship; providing for the expenditure of funds; and providing for an effective date. ($500
Hotel Occupancy Tax and Sponsorship Committee recommends approval 2-0)
BACKGROUND
This agreement allows for the total expenditure of $500 Key provisions
of the Agreement include:
Funds shall be used by Habitat for Humanity of Denton County, Inc. for the
Luncheon in accordance with the budget attached as Exhibit A.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The Hotel Occupancy Tax and Sponsorship Committee reviewed additional sponsorship budget
applications on February 28, 2019 and recommends this organization to receive $500 of the remaining
$3,100 in the fund balance.
FISCAL INFORMATION
Sponsorship Fund in Fiscal Year 2018-19.
EXHIBITS
1. Agenda Information Sheet
2. Ordinance
Respectfully submitted:
Antonio Puente, Jr.
Chief Financial Officer
Prepared by:
Randee Klingele
Treasury Analyst
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-517,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDentonauthorizinganagreementbetweentheCityofDenton,
Texas,andDentonAssistanceCenter,Inc.,dbaServeDentonforthepurpose2019Celebrationsponsorship;
providingfortheexpenditureoffunds;andprovidingforaneffectivedate.($1,500)TheHotelOccupancyTax
and Sponsorship Committee recommends approval (2-0).
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Finance
DCM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of
Denton, Texas, and Denton Assistance Center, Inc., dba Serve Denton for the purpose of 2019
Celebration sponsorship; providing for the expenditure of funds; and providing for an effective date.
($1,500 Hotel Occupancy Tax and Sponsorship Committee recommends approval 2-0)
BACKGROUND
This agreement allows for the total expenditure of $1,500 nd. Key
provisions of the Agreement include:
Funds shall be used by Serve Denton for the 2019 Celebration in accordance with the budget
attached as Exhibit A.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The Hotel Occupancy Tax and Sponsorship Committee reviewed additional sponsorship budget
applications on February 28, 2019 and recommends this organization to receive $1,500 of the remaining
$3,100 in the fund balance.
FISCAL INFORMATION
Sponsorship Fund in Fiscal Year 2018-19.
EXHIBITS
1. Agenda Information Sheet
2. Ordinance
Respectfully submitted:
Antonio Puente, Jr.
Chief Financial Officer
Prepared by:
Randee Klingele
Treasury Analyst
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-528,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDenton,aTexashome-rulemunicipalcorporation,authorizing
theCityManagertoexecuteacontractwithIntegrityMunicipalSystems,LLC,torefurbishthebulkcaustic
storagetankforthechlorinescrubbersystemoftheCityofDenton’sLakeRayRobertsWaterTreatmentPlant;
providingfortheexpenditureoffundstherefor;andprovidinganeffectivedate(IFB6750-awardedto
Integrity Municipal Systems, LLC, in the not-to-exceed amount of $111,400).
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with Integrity Municipal Systems, LLC, to refurbish
the bulk caustic storage tank for the chlorine scrubber system of e Ray Roberts
Water Treatment Plant; providing for the expenditure of funds therefor; and providing an effective date
(IFB 6750 awarded to Integrity Municipal Systems, LLC, in the not-to-exceed amount of $111,400).
IFB INFORMATION /BACKGROUND
The Lake Ray Roberts Water Treatment Plant uses chlorine and ammonia gas to produce chloramine,
which, is added to treated water to maintain the disinfectant residual in the water distribution system.
Chlorine at the water plant is stored as a liquid under pressure in two (2) separate 4,000-gallon (20 ton)
bulk storage tanks. The anhydrous ammonia is stored in two (2) separate 1,450-gallon bulk storage tanks.
A chlorine scrubbing safety system was installed to neutralize the air when unsafe levels of chlorine are
detected in the chlorinator room and chlorine storage room due to a small leak or larger failure. When
activated the air/chlorine from the room is sent to the scrubber system caustic soda solution tank (37,000
gallons) to remove the chlorine from the air; which, is then safely released into the atmosphere. Similarly,
an ammonia scrubbing system was installed for the ammonia storage room. The ammonia scrubbing
system uses water to remove the ammonia from the air, which is then safely released into the atmosphere.
The 37,000-gallon chlorine scrubber tank was installed in 2002. In July 2011, the scrubber tank developed
a leak at the drain valve. The leak was repaired and the tank continued to function as part of the chlorine
scrubber system. In August 2015 the tank developed another leak around the drain line. The caustic
solution from the tank was pumped to a temporary tank for the repair work. Once the repair was
completed, caustic was transferred back to the scrubber tank. In October 2017, the tank developed another
leak at the seam s floor.
Staff contracted with Integrity Municipal Systems (IMS), LLC in 2018 to conduct a full evaluation of the
chlorine scrubber tank. The field evaluation was performed on November 1, 2018, and IMS submitted the
detailed inspection report on November 21, 2018. According to the report, the tank appears to be in poor
overall condition and IMS recommended replacing the first four or more interior layers of damaged
fiberglass to completely rehabilitate the tank. This project will include mobilization, demobilization,
rehabilitation, post-repair inspection, leak testing and final repair report of the tank.
Invitation for Bids was sent to 39 prospective suppliers of this item. In addition, specifications were
placed on the Materials Management website for prospective suppliers to download and advertised in the
local newspaper. One (1) bid was received by Integrity Municipal Systems, LLC.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 25, 2019, this item will be presented to the Public Utilities Board for recommendation to the
City Council for consideration.
RECOMMENDATION
Award a contract with Integrity Municipal Systems, LLC, for the chlorine scrubber tank rehabilitation at
the Lake Ray Roberts Water Treatment Plant, in the not-to-exceed amount of $111,400.
PRINCIPAL PLACE OF BUSINESS
Integrity Municipal Systems, LLC
Poway, CA
ESTIMATED SCHEDULE OF PROJECT
The scrubber tank rehabilitation is expected to begin in March 2019 and be completed in April 2019.
FISCAL INFORMATION
These services will be funded from the Water Production Operating Budget, HBU 630100. Requisition #
141242 has been entered into the Purchasing software system in the amount of $111,400.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Bid Tabulation
Exhibit 3: Tank Inspection Report
Exhibit 4: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Mamun Yusuf at 940-349-7523.
Legal point of contact: Mack Reinwand at 940-349-8333.
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-531,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDenton,aTexashome-rulemunicipalcorporation,authorizing
theapprovalofafirstamendmenttoacontractbetweentheCityofDentonandClassicLandscapes,Inc.,for
LandscapeandSodReplacementServicesforvariousCitydepartments,amendingthecontractapprovedby
CityCouncilonJune7,2016,inthenot-to-exceedamountof$500,000;providingfortheexpenditureoffunds
therefor;andprovidinganeffectivedate(File6098-providingforanadditionalexpenditureamountnot-to-
exceed $125,000, for a total contract amount not-to-exceed $625,000).
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Materials Management
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a first amendment to a contract between the City of Denton and Classic
Landscapes, Inc., for Landscape and Sod Replacement Services for various City departments, amending
the contract approved by City Council on June 7, 2016, in the not-to-exceed amount of $500,000; providing
for the expenditure of funds therefor; and providing an effective date (File 6098 providing for an
additional expenditure amount not-to-exceed $125,000, for a total contract amount not-to-exceed
$625,000).
INFORMATION /BACKGROUND
This contract is to supply landscaping and sod replacement services for various City departments. The
services are needed to repair damage to yards and landscaped areas resulting from utility excavation or
other City crew activities. The City of Denton Streets, Water and Waste Water, and Parks staff utilize the
contracted vendor to provide replacement sod in a timely manner to complete repair or construction
projects. The additional amount will allow us to continue this service until the contract expires on June 7,
2019 and a new contract is in place.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 7, 2016, Council approved an agreement with Classic Landscapes, Inc. in the amount of $500,000
(Ordinance 2016-153).
On March 25, 2019, this first amendment will be presented to the Public Utilities Board.
RECOMMENDATION
Award a first amendment with Classic Landscapes, Inc., for Landscape and Sod Replacement Services in
the amount of $125,000, for a total amended contract amount not-to-exceed $625,000.
PRINCIPAL PLACE OF BUSINESS
Classic Landscapes, Inc.
Denton, TX
ESTIMATED SCHEDULE OF PROJECT
This contract will expire on June 7, 2019.
FISCAL INFORMATION
These services will be funded from Water, Waste Water, Parks, and Streets operating accounts. Purchase
orders will be issued on an as needed basis.
EXHIBITS
Exhibit 1: Agenda Information sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Cassey Ogden at 940-349-7195.
Legal point of contact: Mack Reinwand at 940-349-8333.
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-541,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDenton,aTexashomerulecorporation(“City”),authorizing
theCityManager,orhisdesignee,toadministrativelyapproveandexecutetemporaryRights-of-Entrytoallow
publicagencies,utilities,andtheirrepresentativestoconductenvironmentalstudiesandfieldsurveyworkon
City-owned property when such work is being conducted in preparation for a public project.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Capital Projects
CM/ DCM/ ACM: Mario Canizares
DATE: March 19, 2019
SUBJECT
Consider the approval of an ordinance of the City of Denton, a Texas home rule corporation (),
authorizing the City Manager or his designee, to administratively approve and execute temporary Rights-
of-Entry to allow public agencies, utilities, and their representatives to conduct environmental studies and
field survey work on City-owned property when such work is being conducted in preparation for a public
project.
BACKGROUND
From time to time the Capital Projects Real Estate Division receives requests from public agencies and
utility companies for a temporary Right-of-Entry (ROE) to conduct environmental surveys and to perform
field survey work on City-owned property in preparation for a public project. Because ROEs only allow
temporary access to property and do not convey an ownership interest, granting the ROE can be processed
administratively.
Currently, the City has two pending ROE requests from the Texas Department of Transportation (TXDOT):
1. In preparation for the design and construction of a new portion of Loop 288 between I-35W and I-
35 on the west side of the City to improve capacity and mobility in the region and to reduce
congestion.
2. A roadway improvement project along FM 1515 between Denton Enterprise Airport and Bonnie
Brae Street.
Real Estate staff has obtained input from each City department responsible for the management of the
subject properties. Each managing department has determined that the TXDOT ROE will not conflict with
existing operations and therefore are not opposed to allowing temporary access under a ROE.
OPTIONS
1. Authorize the City Manager or designee to administratively approve and execute temporary Rights
of Entry to allow environmental studies and field survey work on City property.
2. Do not authorize the City Manager or designee to administratively approve and execute temporary
Rights of Entry to allow environmental studies and field survey work on City property.
RECOMMENDATION
Staff recommends granting access.
ESTIMATED SCHEDULE OF PROJECT
Work for the two (2) listed ROEs will take 1-2 days each and it is anticipated work will be completed by
the end of April.
EXHIBITS
1. Agenda Information Sheet
2. Project vicinity map
3. Site maps
4. ROE Request from TXDOT representatives
5. Ordinance
Respectfully submitted:
Deanna Cody
Deputy Director Real Estate
Prepared by:
Amy B. Parish
Sr. Real Estate Analyst
ROE Request from TXDOT representative - Loop 288
PERMISSION FOR RIGHT-OF-ENTRY FORM
DENTON, CITY OF
MUNICIPAL BUILDING
215 E MCKINNEY ST
DENTON, TX 76201
ROE CPY_ID: 13, 15, 16, 17, 18 County CAD Account #: R36643, R36616, R36713, R36554, R36607
CSJ: 2250-02-013, -014
Loop 288 from IH 35W to IH 35
Dear Property Owner(s):
The Texas Department of Transportation (TxDOT) is conducting preliminary design and environmental studies for
a new location Loop 288 roadway on the west side of Denton in Denton County. This preliminary work includes
locating existing property corners, utilities and drainage structures, conducting field surveys of existing drainage
creeks, evaluating environmental constraints, and determining the presence (or absence) of cultural resources.
An explanation as to how the survey work would be conducted and why it is required is included in the attached
form titled Supplemental Information Regarding Environmental Surveys. This Permission for Right-of-Entry Form
does not authorize any mechanical excavation activities.
We respectfully request your permission to allow TxDOT and its representativeÔs access to the portion of your
property adjoining and near the Right-of-Way to perform this work.
Our survey and environmental staff will not disturb any fences and will leave all gates as they are found. Trimming
of small branches around utilities and creeks may be necessary. We are responsible for the safety of our
employees, and release you from any and all liability in conjunction with their efforts.
We appreciate your consideration in this matter of importance. Should you have any questions or concerns
please feel free to contact Sarah Itz directly at (719) 213-0047 or via email at sitz@cpyi.com.
Two (2) forms are provided. Please fill out the bottom of each form and return one in the enclosed stamped
envelope and retain one for your records. This form may also be returned via email to sitz@cpyi.com. If you or
any lessees or tenants on the property need to be contacted prior to entering your property, please include your
and their contact information below. If this property has been sold, please provide the name, address, and
phone number of the new owner, if known to you.
PLEASE SIGN AND RETURN THIS PAGE
GRANTED / DENIED for the uses and purposes herein described.
Permission is hereby
OwnerÔs Signature: ________________________________ Date:________________
OwnerÔs Name (print): ______________________________ OwnerÔs Phone No.: _________________________
Special Comments, Instructions, Locked Gate Combinations, LesseesÔ or TenantsÔ Names, Address and Phone
Numbers:
DCAD Tracts 36607, 36554, 36713: Contact DEC Plant Manager, Jason Brown (940) 349-7140 to schedule
dates and times for ROW access, just east of the DEC facility and outside the walls.
DCAD Tract 36643: Contact lessee, Robert Smithers (940) 391-4252.
DCAD Tract_36616: Contact Airport Operations Supervisor, Chase Patterson (940) 349-7739 at least 48 hours
in advance.
ROE Request from TXDOT representative - Loop 288
PERMISSION FOR RIGHT-OF-ENTRY FORM
DENTON, CITY OF
MUNICIPAL BUILDING
215 E MCKINNEY ST
DENTON, TX 76201
ROE CPY_ID: 13, 15, 16, 17, 18 County CAD Account #: R36643, R36616, R36713, R36554, R36607
CSJ: 2250-02-013, -014
Loop 288 from IH 35W to IH 35
Dear Property Owner(s):
The Texas Department of Transportation (TxDOT) is conducting preliminary design and environmental studies for
a new location Loop 288 roadway on the west side of Denton in Denton County. This preliminary work includes
locating existing property corners, utilities and drainage structures, conducting field surveys of existing drainage
creeks, evaluating environmental constraints, and determining the presence (or absence) of cultural resources.
An explanation as to how the survey work would be conducted and why it is required is included in the attached
form titled Supplemental Information Regarding Environmental Surveys. This Permission for Right-of-Entry Form
does not authorize any mechanical excavation activities.
We respectfully request your permission to allow TxDOT and its representativeÔs access to the portion of your
property adjoining and near the Right-of-Way to perform this work.
Our survey and environmental staff will not disturb any fences and will leave all gates as they are found. Trimming
of small branches around utilities and creeks may be necessary. We are responsible for the safety of our
employees, and release you from any and all liability in conjunction with their efforts.
We appreciate your consideration in this matter of importance. Should you have any questions or concerns
please feel free to contact Sarah Itz directly at (719) 213-0047 or via email at sitz@cpyi.com.
Two (2) forms are provided. Please fill out the bottom of each form and return one in the enclosed stamped
envelope and retain one for your records. This form may also be returned via email to sitz@cpyi.com. If you or
any lessees or tenants on the property need to be contacted prior to entering your property, please include your
and their contact information below. If this property has been sold, please provide the name, address, and
phone number of the new owner, if known to you.
PLEASE KEEP FOR YOUR RECORDS
Permission is hereby GRANTED / DENIED for the uses and purposes herein described.
OwnerÔs Signature: ________________________________ Date:________________
OwnerÔs Name (print): ______________________________ OwnerÔs Phone No.: _________________________
Special Comments, Instructions, Locked Gate Combinations, LesseesÔ or TenantsÔ Names, Address and Phone
Numbers:
DCAD Tracts 36607, 36554, 36713: Contact DEC Plant Manager, Jason Brown (940) 349-7140 to schedule
dates and times for ROW access, just east of the DEC facility and outside the walls.
DCAD Tract 36643: Contact lessee, Robert Smithers (940) 391-4252.
DCAD Tract_36616: Contact Airport Operations Supervisor, Chase Patterson (940) 349-7739 at least 48 hours
in advance.
ROE Request from TXDOT representative - Loop 288
SUPPLEMENTAL INFORMATION REGARDING ENVIRONMENTAL SURVEYS
FOR WETLANDS: The Environmental Consultant under contract with TxDOT may conduct limited shovel testing
to determine soil characteristics of a suspected wetland area, consisting of the removal of one or more plugs of
soil approximately 18 inches deep and 12 inches in diameter, which will be replaced after inspection. Walking
surveys will be used to identify plant species and hydrologic influences in the area. Depending on what is
determined, the results of the survey, including photos, may be sent to the United States Army Corps of
Engineers, as well as other state and federal agencies, in order to obtain the proper permit authority under the
Federal Clean Water Act.
FOR THREATENED OR ENDANGERED PLANTS AND ANIMALS: The Consultant Biologists will conduct walking
surveys to determine if the property has either a threatened or endangered species or the habitat to support a
threatened or endangered species. If an individual or the habitat of a threatened or endangered species is
found, the information will be coordinated with the United States Fish and Wildlife Service according to the
Endangered Species Act, as well as with the Texas Parks and Wildlife Department. There are occasions when
all survey results, either positive or negative, may be coordinated with the appropriate agency.
FOR HISTORIC BUILDINGS AND STRUCTURES: The Consultant Historians/Architects will conduct a survey of the
project area to determine the existence of any buildings or structures that may be historically significant for their
architecture or their association with local, state or national history. Historic buildings or structures may be
houses, barns, agricultural buildings, silos, tanks, bridges, cattle guards or any other form of construction. The
survey will consist of the inspection and photography of the exterior of structures within or adjacent to the project
route, although in rare instances, with permission, photography of interior features of a building or structure may
also be necessary. Survey results will be provided to the Texas Historical Commission as required by state and
federal law.
FOR HAZARDOUS MATERIALS ASSESSMENTS: The Environmental Consultant under contract with TxDOT will
conduct a preliminary survey (Phase I Environmental Site Assessment) of the project area to determine the
likelihood that hazardous substances and/or petroleum contamination exists on the property and the extent to
which further investigation and/or remediation may be necessary. The preliminary survey will be limited to a
walking survey, inspection and photography of possible concerns on the property. No samples of soil, water
and/or materials will be obtained. Interviews with property owners and/or current occupants may also be
conducted. If sampling and analytical testing is required to characterize potential hazardous substances and/or
determine the extent of contamination, then such investigations will be part of a separate agreement at a later
date. TxDOT may make available a copy of the results to the Texas Commission on Environmental Quality or other
appropriate regulatory agency.
FOR ARCHEOLOGICAL SURVEYS: TxDOT personnel or their environmental consultants would conduct walking
surveys, shovel tests and/or deep trenching to determine if archeological sites are present.
Shovel tests would be located at increments of 1 every 100 meters for linear projects (or 3 shovel tests per acre),
although if an area seems to have a higher probability based on an on-ground assessment of topographic
features and vegetation, there may be a greater density of shovel tests. If cultural material is encountered we
will do additional shovel tests in order to define the boundaries of the site within the Area of Potential Effects.
Mechanical Excavation such as backhoe trenching may be conducted only if specified in the Permission for Right-
of-Entry Form. For deep backhoe trenches, generally one trench is placed on each side of a channel (2 trenches
per channel). Any soil removed from these tests will be screened on-site to locate cultural evidence. All test
holes and trenches will be back-filled.
If archeological sites are located, all materials recovered from the fill of the tests, as well as some surface
artifacts would either be collected or left in place for further study. Any collected artifacts will be stored in an
official state repository upon completion of the studies and survey results will be provided to the Texas Historical
Commission as required by state and federal law. Locations of archeological sites will be recorded and
documented; however, these records are not open to the general public.
Project Vicinity Map
Site Map - Loop 288
Jim Christal Rd
36607
36554
36713
36616
36643
Tom Cole Rd
Legend
City of Denton Parcels
Proposed Loop 288 ROW¯
00.1250.250.5
Miles
ROE Request from TXDOT representative - FM 1515
Engineering
Surveying
Subsurface Utility Engineering
Construction Management
August 1, 2018
City of Denton
215 E McKinney St
Denton,TX76201-4229
Highway: FM 1515
CSJ: 1951-01-011
Limits: From to the Denton Municipal Airport to Bonnie Brae Lane
County: Denton
Re: RIGHT OF ENTRY CONSENT FORM
LTRA project # 136-02 FM 1515 Environmental Survey
Dear Property Owner:
Lina T. Ramey & Associates, Inc. (LTRA) has been contracted by the Texas Department of Transportation
(Dallas District), to provide professional land surveying services for a roadway improvement project along FM
1515 between the Denton Municipal Airport and Bonnie Brae Lane.
I respectfully request your permission for our environmental survey crews to briefly access your property to
obtain requested environmental data. Our access is generally on foot and not by vehicles. Field survey efforts
will occur betweenFebruaryand March2018.
Survey vehicles are clearly marked with our logo, and our field crew personnel are easily identifiable.
We appreciate your cooperation. Please return the completed form below to LTRA, listing any conditions in
the space provided. If you have any questions, please contact LTRA representativeTyler Martin, P.E. at 214-
979-1144.
Respectfully,
Tyler Martin P.E.
Project Manager
214-979-1144
3320 Belt Line Road, Farmers Branch, TX 75234 Phone (214) 979-1144 Fax (214) 979-2480
Texas Board of Professional Land Surveying Firm No. 10140700
ROE Request from TXDOT representative - FM 1515
Engineering
Surveying
Subsurface Utility Engineering
Construction Management
RIGHT of ENTRY CONSENTFORM
Please provide this completed portion to Lina T. Ramey & Associates, Inc. by returning it using the enclosed
stamped/addressed envelope, or viafax(214-979-2480).
Lina T. Ramey & Associates, Inc.
3320 Belt Line Road
Farmers Branch, TX 75234
214-979-1144
214-979-2480 (fax)
LTRA project # 136-02 FM 1515 Environmental Survey
I hereby give consent to LTRA for Right of Entry for this project (Circle one): YESNO
Denton County Appraisal ID #33493REF # (13)
_________________________________________ __________________
(Signed Name) (Date)
__________________________________________ _____________________
(Printed Name) (Telephone number)
ForaccesscallLt.DavidHildebrand,DentonPoliceDept.(940)349-7987
Special Instructions from Landowner: ___________________________________________________________
__________________________________________________________________________________________
3320 Belt Line Road, Farmers Branch, TX 75234 Phone (214) 979-1144 Fax (214) 979-2480
Texas Board of Professional Land Surveying Firm No. 10140700
Site Map - FM 1515
wźŭŷƷ ƚŅ ĻƓƷƩǤ źƭ ƩĻƨǒĻƭƷĻķ Ʒƚ 5ĻƓƷƚƓ /ƚǒƓƷǤ tƩƚƦĻƩƷǤ L5 ЌЌЍВЌ ƭŷƚǞƓ ğĬƚǝĻ͵
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-542,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityCounciloftheCityofDenton,Texas,approvingagrant
applicationfromJoeyHawkins,representingSweetwaterGrillandTavern,fromtheDowntownReinvestment
GrantProgramnottoexceed$5,000;andprovidingforaneffectivedate.TheEconomicDevelopment
Partnership Board recommends approval (9-0).
City of DentonPage 1 of 1Printed on 3/15/2019
powered by Legistar™
City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
CITY COUNCIL
DEPARTMENT: Economic Development
CM/ DCM/ ACM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant
application from Joey Hawkins, representing Sweetwater Grill and Tavern, from the Downtown
Reinvestment Grant Program not to exceed $5,000; and providing for an effective date (the Economic
Development Partnership Board recommends approval 9-0).
BACKGROUND
The original Sweetwater Grill and Tavern, located at 115 S. Elm, opened in 1998. The owners retired and
sold the business in 2013. In 2014, Ryan and Rick Reid bought the business, applied for a Downtown
Reinvestment Grant, and were awarded $5,000. Sweetwater Grill became Agua Dulce and then closed last
year.
The original owners, along with some new partners, have now reopened Sweetwater Grill. Some exterior
painting was started before the grant application was turned in, so that work is not eligible for
reimbursement. As this building previously received a $5,000 Downtown Reimbursement Grant, it is now
eligible for a maximum grant award of $20,000.
Improvements include:
Façade and building renovation
Utility upgrades
Signage
Awnings
Impact fees
Grant applications are scored based on:
Economic Impact - 0-5 Points
o Total investment dollars as provided in the grant application
o Investment in structure construction or renovation (excluding purchase price)
o Investment in furniture, fixtures and equipment; estimated taxable sales
Historic Accuracy/Design - 0-5 Points
o New construction/complements existing buildings
o Restores building to historic accuracy
o Renovation of building with historic marker (Local, state or national historic marker)
Upgrades to Utilities/Impact Fees - 0-5 Points
o Requires upgrades in electrical service
o Increases existing water/wastewater capacity
o No existing utilities to structure
o Extends water/wastewater lines (improves additional properties)
o Impact fees may be ranked depending upon percentage of fees to eligible expenses
Increases Population - 0-5 Points
o Increases consumer traffic (day or night)
o Increases quality residential units
Interior/Code Improvements - 0-5 points
o Asbestos and mold abatement
o Fire suppression systems
Other - 0-10 Points
Including, but not limited to:
o Partners with other businesses (i.e., shared parking)
o Project is a "target" business (i.e., grocery, pharmacy, locally owned)
o Promotes development of Denton arts and entertainment Longevity of business
Total project scores can range from 0 to 35 points.
Downtown Task Force members use the following matrix to score each project:
4
2
1
Grant Scoring System
5
3
0
Economic Impact (0-5)
Historic Accuracy/Design (0-5)
Utility Upgrades/Impact fees
(0-5)
Increases Population (0-5)
Interior/Code Improvements (0-
5)
Other (0-10)
Totals
Recommendations are be based on:
0-14 points = No funding
15-19 points = Grant recommendation up to $5,000
20-24 points = Grant recommendation up to $10,000
25-35 points = Grant recommendation up to $25,000
Each Downtown Task Force member scores each project, then staff members total and average the scores.
Sweetwater Tavern and Grill had an average score of 15.7, which was rounded up to 16, allowing a
recommendation up to $5,000.
PRIOR ACTION/REVIEW
December 13, 2018 -- The Downtown Task Force met and recommended a Downtown Reinvestment
Grant in the amount of $5,000 to the Economic Development Partnership Board (15-0).
February 13, 2019 -- The Economic Development Partnership Board met and recommends a Downtown
Reinvestment Grant in the amount of $5,000 (9-0).
EXHIBITS
Exhibit 1 - Agenda Information Sheet
Exhibit 2 - Ordinance and Grant Application
Exhibit 3 - Minutes from the December 13, 2018, Downtown Task Force meeting
Exhibit 4 - Minutes from the February 13, 2019, Economic Development Partnership Board meeting
Respectfully submitted:
Caroline Booth
Director of Economic Development
Prepared by:
Julie Glover
Economic Development Program Administrator
MINUTES
CITY OF DENTON DOWNTOWN TASK FORCE
February 14, 2019
The Downtown Task Force, a subcommittee of the Economic Development Partnership Board of the City of
Denton, convened on Thursday, February 14, 2019, at 8:44 a.m., in the City Council Work Session Room, 215
E. McKinney Street, Denton, Texas, 76201.
PRESENT: Georgina Ngozi, Monte Jensen, Alex Payne, Melissa Lenaburg, Brandon Martino,
Bob Moses, Peggy Capps and Beth Lewis
ABSENT: Hank Dickenson, Herbert Holl, Jill Jester, Brandon McClesky, and
Brock McKnight
EX-OFFICIO: N/a
STAFF PRESENT: Christina Davis, Caroline Booth, Mack Reinwand,
Dana Lodge, Karen Boenker, and Michelle Coughlin
1. Consider approval of the minutes from the December 13, 2018, Downtown Task Force
Meeting.
Capps made a motion to approve the minutes as presented. Moses seconded the motion. The motion was
approved unanimously by a vote of 8-0.
Alex Payne left the room.
2. Receive a report, hold a discussion, and give staff direction regarding a Downtown
Reinvestment Grant for 101 W. Hickory (former Abby Inn).
Alex Payne recused himself prior to the discussion.
Davis opened the discussion by reviewing the applicable criteria for a Downtown Business Grant, and
the Downtown Task Force (DTTF) members received a copy of the Downtown Reinvestment Grant
Scoring Sheet. Regarding 101 W. Hickory (the former Abby Inn), Davis said that Glover has not met
with the new tenants of the property, however; Glover did confirm the new occupying business will be
an English style pub. Therefore there will not be a change in the type of business that will occupy the
space. Davis said the building, as it stands now, was built in 1970 and it replaced the original building.
Davis said that because the building is not the original structure there is no historical criteria that needs
to be met. Eligible expenses listed are $144,000 for the façade and $15,000 for the awnings. Davis
pointed out there was one correction on the application: the total cost of the project is $500,000 - there
was a miscommunication and the applicant only listed the total allowable amount ($159,165)
rather than the total cost of the project ($500,000).
The General Contractor for the project, Jason Abt, presented information and answered questions about
the remodel. Abt said that plans include improvements to the interior of the building, the façade, and
awnings. Booth added that Davis left the room while Abt gave the presentation in order to confirm
whether the property received a grant in the past.
Booth said that if the property has been awarded a grant in the past, the dollar amount that had
previously been awarded would need to be subtracted from the maximum allowable amount, which is
$25,000 (if the DTTF voted to award the maximum amount). Davis returned to the meeting and
confirmed the property had not been awarded a grant in the past.
Prior to the vote, Davis reminded the DTTF members that although their votes will remain
anonymous, the scoresheets would be public record. Once the voting was completed, the scores were
tallied by Boenker and Coughlin. It was determined the project received a score of 27.57 (rounded to
28), which means the project is eligible for a Downtown Reinvestment Grant in the amount of $25,000.
Martino made a motion to approve a Downtown Reinvestment Grant in the amount of $25,000 for 101
W. Hickory (formerly the Abby Inn). Capps seconded the motion. The motion was approved
unanimously by a vote of 7-0.
Staff Reports
a. Openings: None
b. Coming soon: Fine Arts Theatre, Rubber Gloves Rehearsal Studio, H2Oak, Gelati, Gnome Cones, and
Travelstead, La Rose Maison (furniture & art store)
c. Closings: None
d. Moving: None
e.
open? -Lenaburg asked for this topic to be added to the March agenda.
f. Upcoming events:
1. Materials Hard and Soft exhibit at the Patterson-Appleton Arts Center (PAC)
2. Thursday, February 28, 2019 Re-dedication of the Pops Carter sculpture at
the PAC.
3. enton Main Street Association DMSA members are encouraged to give back
to the community by donating to local nonprofit organizations of their choice
rd
4. 33 Annual Storytelling Festival on March 5, 6, and 7
g. Next meeting date: Thursday, March 14, 2019 at 8:30a.m.
The meeting adjourned at 9:16 a.m.
Exhibit1
MINUTES
CITYOFDENTON
ECONOMICDEVELOPMENTPARTNERSHIPBOARD
February13,2019
Afterdeterminingthataquorumwaspresent,theEconomicDevelopmentPartnershipBoardconvenedonWednesday,
E.McKinney
February13,2019,at11:17a.m.ThemeetingwasheldintheCityCouncilWorkSessionRoomatCityHall,215
Street,Denton,Texas,76201.
PRESENT:SteveEdgar,BobEames,ChrisDavis,JohnBaines,KeelyG.Briggs,MartyRivers,PamelaPadilla,
JillJester,andJimmyMejia
ABSENT:TonyClark,Tomlinson,andGerardHudspeth
EXOFFICIO:Present:PamMaruffoAbsent:JamieWilson,ToddHileman
STAFFPRESENT:
1.ITEMSFORINDIVIDUALCONSIDERATION
A.EDP19009Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardingan
ordinanceontheexpendituresofthefundbalanceoftheGeneralFundaccountrelatedtothe
DowntownReinvestmentGrantProgram.
Boothreportedthatthisitempertainstohousekeepingrelatedtospendingdowntheremaining
fundsintheGeneralFundfortheDowntownReinvestmentGrantProgram.Boothsaidthatin
Septemberof2018theCityCouncilapprovedchangingthefundingsourcefortheDowntown
ReinvestmentGrantprogramfromtheDowntownmixedbeveragefundtotheDowntownTIFFund
andatthesametimeupdatedthegrantreviewprocesssotheexpendituresfortheprogramare
reviewedbytheDowntownTIFBoard.BoothsaidthatatthesametimetheCityCouncilgavestaff
directiontospenddownthefundsintheGeneralFunddowntozero.Boothsaidanordinanceis
neededinordertooutlineaprocessforspendingtheremainingfunds.Boothsaidthismakesthis
theOrdinanceupfortheEconomicDevelopmentPartnership.ƚğƩķƭ
itemstraightforwardinthat
considerationwouldestablishtheprocess.Boothsaidtheamountinthefundisapproximately
$108,000.BoothsaidthegrantswillfirstbereviewedbytheDowntownTaskForce,thenthe
EconomicDevelopmentPartnershipBoard,andthenultimatelysubjecttofinalapprovalbytheCity
Council.
Boothsaidoncethefundsarespentdowntozero,thegrantapprovalprocesswillbeinthisorder:
DowntownTaskForce,DowntownTIFBoard,andfinalapprovalbyCityCouncil.
TherewereacoupleofquestionsfromtheEconomicDevelopmentPartnershipBoardmembers
regardingchangesthatwouldbemadeastheprocesschangesfromoneprocesstotheother.
Exhibit1
BriggsmadeamotionofapprovalforrecommendationtotheCityCouncilregardingtheOrdinance.
Eamessecondedthemotion.Themotionwasapprovedunanimouslybyavoteof80.
Jesterjoinedthemeeting.
B.EDP19001Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
DowntownReinvestmentGrantRequestfor106N.LocustStreet(JupiterHouse).
Glovergaveareportregardingtherequestfora$25,000DowntownReinvestmentGrant
for106N.LocustStreet(JupiterHouse).JoeyHawkins,owneroftheJupiterHouse,waspresentto
speakwiththeEconomicDevelopmentPartnershipBoardandtoansweranyquestionstheymay
haveregardingthegrantrequest.
Briggsmadeamotiontoapprovethe$25,000DowntownReinvestmentGrantrequestfor106N.
LocustStreet(JupiterHouse).Bainessecondedthemotion.Themotionwasapprovedunanimously
byavoteof90.
Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
C.EDP19010
DowntownReinvestmentGrantrequestfor115S.ElmStreet(SweetwaterGrillandTavern).
GlovergaveareportregardingtheDowntownReinvestmentGrantrequestfor115S.ElmStreet
(SweetwaterGrillandTavern).
JestermadeamotiontoapproveaDowntownReinvestmentGrantintheamountof$5,000for115
S.ElmStreet(SweetwaterGrillandTavern).Eamessecondedthemotion.Themotionwasapproved
unanimouslybyavoteof90.
D.EDP19008Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
DowntownReinvestmentGrantrequestfor119W.HickoryStreet(TheLoopholeGastropuband
andAleHouse.
GlovergaveareportregardingtheDowntownReinvestmentGrantrequestfor119W.Hickory
Street(TheLoopholeGastropubandAleHouse).CliffTender,GeneralContractorfortheproject,
waspresentatthemeetingtospeakwiththeEconomicDevelopmentPartnershipBoardaboutthe
grantrequestandansweranyquestionsonbehalfofthebusinessowner.
BriggsmadeamotiontoapproveaDowntownReinvestmentGrantintheamountof$5,000for119
W.HickoryStreet(TheLoopholeGastropubandAleHouse).Jestersecondedthemotion.The
motionwasapprovedunanimouslybyavoteof90.
Exhibit1
E.EDP19002Receiveareport,holdadiscussion,andgivestaffdirectionregardingthe2017Economic
DevelopmentIncentivizedProjectsNetRevenueReportfortheCityofDenton.
Sullivangaveareportregardingthe2017EconomicDevelopmentIncentivizedProjectsNetRevenue
ReportfortheCityofDenton.
F.EDP19003Receiveareport,holdadiscussion,andgivestaffdirectionregardingthedevelopmentoftheCole
RanchandHunterRanchmasterplannedcommunitiesinsouthwestDenton.
BoothgaveanoverviewofboththeColeRanchandtheHunterRanchmasterplannedcommunities
Boothmentionedtheoverviewofinformationwasprimarilyforinformationalpurposesonlyanddid
notrequireactionbytheEconomicDevelopmentPartnershipBoard.
G.EDP19004ConsiderapprovaloftheminutesoftheNovember14,2018meeting.
Jestermadeamotiontoapprovetheminutesaspresented.Briggssecondedthemotion.The
motionwasapprovedunanimouslybyavoteof90.
H.EDP19005StaffReports
Riverssuggestedthatintheinterestoftime,astheEconomicDevelopmentPartnershipBoard
meetingwasscheduledtobefollowedbytheTIRZNumber2Boardmeeting,theBoardwould
forgoindividualpresentationsregardingtheStaffReports.Riversthankedstafffortheirdiligent
effortstopreparethereports.
1.CityEDStrategicPerformanceReport
2.December2018STaNDReport
3.February2019ChamberActivityReport
Themeetingadjournedat12:15p.m.
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-543,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityCounciloftheCityofDenton,Texas,approvingagrant
applicationfromCharlesNolet,representingtheLoophole,fromtheDowntownReinvestmentGrantProgram
nottoexceed$5,000;andprovidingforaneffectivedate.TheEconomicDevelopmentPartnershipBoard
recommends approval (9-0).
City of DentonPage 1 of 1Printed on 3/15/2019
powered by Legistar™
City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
CITY COUNCIL
DEPARTMENT: Economic Development
CM/ DCM/ ACM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant
application from Charles Nolet, representing the Loophole, from the Downtown Reinvestment Grant
Program not to exceed $5,000; and providing for an effective date (the Economic Development
Partnership Board recommends approval 9-0).
BACKGROUND
The Loophole, 119 W. Hickory, has operated as a restaurant on the Square for several decades; it was
pr
Improvements include:
Façade work
Signage
Awnings
Utility upgrades
Impact fees
Addition of a patio in front
Addition of a roof sign
Grant applications are scored based on:
Economic Impact - 0-5 Points
o Total investment dollars as provided in the grant application
o Investment in structure construction or renovation (excluding purchase price)
o Investment in furniture, fixtures and equipment; estimated taxable sales
Historic Accuracy/Design - 0-5 Points
o New construction/complements existing buildings
o Restores building to historic accuracy
o Renovation of building with historic marker (Local, state or national historic marker)
Upgrades to Utilities/Impact Fees - 0-5 Points
o Requires upgrades in electrical service
o Increases existing water/wastewater capacity
o No existing utilities to structure
o Extends water/wastewater lines (improves additional properties)
o Impact fees may be ranked depending upon percentage of fees to eligible expenses
Increases Population - 0-5 Points
o Increases consumer traffic (day or night)
o Increases quality residential units
Interior/Code Improvements - 0-5 points
o Asbestos and mold abatement
o Fire suppression systems
Other - 0-10 Points
Including, but not limited to:
o Partners with other businesses (i.e., shared parking)
o Project is a "target" business (i.e., grocery, pharmacy, locally owned)
o Promotes development of Denton arts and entertainment Longevity of business
Total project scores can range from 0 to 35 points.
Downtown Task Force members use the following matrix to score each project:
4
2
1
Grant Scoring System
5
3
0
Economic Impact (0-5)
Historic Accuracy/Design (0-5)
Utility Upgrades/Impact fees
(0-5)
Increases Population (0-5)
Interior/Code Improvements (0-
5)
Other (0-10)
Totals
Recommendations are be based on:
0-14 points = No funding
15-19 points = Grant recommendation up to $5,000
20-24 points = Grant recommendation up to $10,000
25-35 points = Grant recommendation up to $25,000
Each Downtown Task Force member scores each project, then staff members total and average the scores.
The Loophole had an average score of 15.9, which was rounded up to 16, allowing a recommendation up
to $5,000.
PRIOR ACTION/REVIEW
June 11, 2018 The Historic Landmark Commission met and recommended the proposed changes (5-0).
October 11, 2018 -- The Downtown Task Force met and recommended a $5,000 Downtown Reinvestment
Grant to the Economic Development Partnership Board (9-0).
February 13, 2019 -- The Economic Development Partnership Board met and recommends a Downtown
Reinvestment Grant in the amount of $5,000 (9-0).
EXHIBITS
Exhibit 1 Agenda Information Sheet
Exhibit 2 Ordinance and Grant application
Exhibit 3 - Minutes from the October 11, 2018, Downtown Task Force meeting
Exhibit 4 - Minutes from the February 13, 2019, Economic Development Partnership Board meeting
Respectfully submitted:
Caroline Booth
Director of Economic Development
Prepared by:
Julie Glover
Economic Development Program Administrator
MINUTES
CITY OF DENTON DOWNTOWN TASK FORCE
October 11, 2018
The Downtown Task Force, a subcommittee of the Economic Development Partnership Board of
the City of Denton, convened on Thursday, October 11, 2018, at 8:38 am, in the City Council
Work Session Room, 215 E. McKinney Street, Denton, Texas, 76201.
PRESENT: Monte Jensen, Melissa Lenaburg, Georgina Nzogi, Alex Payne, Jill Jester,
Brock McKnight, Don Lee, Bob Moses, and Hank Dickenson
ABSENT: Kate Lynass, Beth Lewis, Herbert Holl, Peggy Capps, and Brandon
Martino
EX-OFFICIO: Absent: Glen Farris
STAFF PRESENT: Caroline Booth, Kim Phillips, Christina Davis, Karen Boenker, and
Michelle Coughlin
1. Consider approval of the minutes from the September 6, 2018 Downtown Task
Force meeting.
Lee made a motion to approve the minutes as presented from the September 6, 2018,
2018, Downtown Task Force meeting. Dickenson seconded the motion. The motion was
approved unanimously, 7-0.
Hank Dickenson and Bob Moses arrived.
*The DTTF chose to skip to item number 3 since there were no representatives from the
Loophole at the time. Representatives from Jupiter House were present.
3. Receive a report, hold a discussion, and give staff direction regarding a Downtown
Reinvestment Grant for 106 N. Locust (Jupiter House).
Joey and Amy Hawkins were present at the meeting in order to present their plans for
renovating Jupiter house and to request a Downtown Reinvestment Grant from the DTTF.
The renovations are necessary in order to re-open their business. Jupiter House was
severely damaged in the fire that took place next door, at the Downtown Mini Mall, the
day after Christmas 2017. Their business has been closed since that time.
Hawkins mentioned he and Amy s Bagels in the next month, as heir
lease is up, however their plans for Jupiter House include combining both concepts into
one. Joey provided a copy of the proposed design sketches, which he explained came
from a UNT student project. The major part of the renovation will include shoring up the
exterior wall and roof. Joey mentioned the target date for re-opening is mid-January
2019.
2. Receive a report, hold a discussion, and give staff direction regarding a Downtown
Reinvestment Grant for 119 W. Hickory (The Loophole).
Davis mentioned that renovations of this building include restoring the historical
significance of the façade, vestibule, and signage. Davis said that plans have been
presented to and approved by the Historic Land Commission, therefore if the DTTF
offers suggestions or changes to the existing plans, the new tenant would be required
to go back to the HLC for another review and second approval.
Cliff Tinder, Builder and Contractor, with Origins was present to answer questions.
4. Staff Report
a. Openings:
b. Coming soon: Fine Arts Theatre, Sweetwater Grill, Rubber Gloves Rehearsal Studio,
H2Oak, Gelato shop on Oak Street, Gnome Cones
c. Closings: Fox Vapor Shop, Hypnotic Donuts
d. Moving: The DIME Store, to the corner of McKinney and Austin
e.
f. Upcoming events:
Twilight Tunes @ 6:00,
Geezer Palooza, October 20
th
Day of the Dead, 27
th
UNT Homecoming, 27
College Football every Saturday
g. Next meeting date: November 8, 2018
Lenaburg made a motion to approve a Downtown Reinvestment Grant for The Loophole
in the amount of $5,000.00. Moses seconded the motion. The motion was approved
unanimously by a vote of 9-0.
Payne made a motion to approve a Downtown Reinvestment Grant in the amount of
$25,000 for Jupiter House. Lee seconded the motion. The motion was approved
unanimously by a vote of 9-0.
The meeting adjourned at 9:35 a.m.
Exhibit1
MINUTES
CITYOFDENTON
ECONOMICDEVELOPMENTPARTNERSHIPBOARD
February13,2019
Afterdeterminingthataquorumwaspresent,theEconomicDevelopmentPartnershipBoardconvenedonWednesday,
E.McKinney
February13,2019,at11:17a.m.ThemeetingwasheldintheCityCouncilWorkSessionRoomatCityHall,215
Street,Denton,Texas,76201.
PRESENT:SteveEdgar,BobEames,ChrisDavis,JohnBaines,KeelyG.Briggs,MartyRivers,PamelaPadilla,
JillJester,andJimmyMejia
ABSENT:TonyClark,Tomlinson,andGerardHudspeth
EXOFFICIO:Present:PamMaruffoAbsent:JamieWilson,ToddHileman
STAFFPRESENT:
1.ITEMSFORINDIVIDUALCONSIDERATION
A.EDP19009Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardingan
ordinanceontheexpendituresofthefundbalanceoftheGeneralFundaccountrelatedtothe
DowntownReinvestmentGrantProgram.
Boothreportedthatthisitempertainstohousekeepingrelatedtospendingdowntheremaining
fundsintheGeneralFundfortheDowntownReinvestmentGrantProgram.Boothsaidthatin
Septemberof2018theCityCouncilapprovedchangingthefundingsourcefortheDowntown
ReinvestmentGrantprogramfromtheDowntownmixedbeveragefundtotheDowntownTIFFund
andatthesametimeupdatedthegrantreviewprocesssotheexpendituresfortheprogramare
reviewedbytheDowntownTIFBoard.BoothsaidthatatthesametimetheCityCouncilgavestaff
directiontospenddownthefundsintheGeneralFunddowntozero.Boothsaidanordinanceis
neededinordertooutlineaprocessforspendingtheremainingfunds.Boothsaidthismakesthis
theOrdinanceupfortheEconomicDevelopmentPartnership.ƚğƩķƭ
itemstraightforwardinthat
considerationwouldestablishtheprocess.Boothsaidtheamountinthefundisapproximately
$108,000.BoothsaidthegrantswillfirstbereviewedbytheDowntownTaskForce,thenthe
EconomicDevelopmentPartnershipBoard,andthenultimatelysubjecttofinalapprovalbytheCity
Council.
Boothsaidoncethefundsarespentdowntozero,thegrantapprovalprocesswillbeinthisorder:
DowntownTaskForce,DowntownTIFBoard,andfinalapprovalbyCityCouncil.
TherewereacoupleofquestionsfromtheEconomicDevelopmentPartnershipBoardmembers
regardingchangesthatwouldbemadeastheprocesschangesfromoneprocesstotheother.
Exhibit1
BriggsmadeamotionofapprovalforrecommendationtotheCityCouncilregardingtheOrdinance.
Eamessecondedthemotion.Themotionwasapprovedunanimouslybyavoteof80.
Jesterjoinedthemeeting.
B.EDP19001Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
DowntownReinvestmentGrantRequestfor106N.LocustStreet(JupiterHouse).
Glovergaveareportregardingtherequestfora$25,000DowntownReinvestmentGrant
for106N.LocustStreet(JupiterHouse).JoeyHawkins,owneroftheJupiterHouse,waspresentto
speakwiththeEconomicDevelopmentPartnershipBoardandtoansweranyquestionstheymay
haveregardingthegrantrequest.
Briggsmadeamotiontoapprovethe$25,000DowntownReinvestmentGrantrequestfor106N.
LocustStreet(JupiterHouse).Bainessecondedthemotion.Themotionwasapprovedunanimously
byavoteof90.
Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
C.EDP19010
DowntownReinvestmentGrantrequestfor115S.ElmStreet(SweetwaterGrillandTavern).
GlovergaveareportregardingtheDowntownReinvestmentGrantrequestfor115S.ElmStreet
(SweetwaterGrillandTavern).
JestermadeamotiontoapproveaDowntownReinvestmentGrantintheamountof$5,000for115
S.ElmStreet(SweetwaterGrillandTavern).Eamessecondedthemotion.Themotionwasapproved
unanimouslybyavoteof90.
D.EDP19008Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
DowntownReinvestmentGrantrequestfor119W.HickoryStreet(TheLoopholeGastropuband
andAleHouse.
GlovergaveareportregardingtheDowntownReinvestmentGrantrequestfor119W.Hickory
Street(TheLoopholeGastropubandAleHouse).CliffTender,GeneralContractorfortheproject,
waspresentatthemeetingtospeakwiththeEconomicDevelopmentPartnershipBoardaboutthe
grantrequestandansweranyquestionsonbehalfofthebusinessowner.
BriggsmadeamotiontoapproveaDowntownReinvestmentGrantintheamountof$5,000for119
W.HickoryStreet(TheLoopholeGastropubandAleHouse).Jestersecondedthemotion.The
motionwasapprovedunanimouslybyavoteof90.
Exhibit1
E.EDP19002Receiveareport,holdadiscussion,andgivestaffdirectionregardingthe2017Economic
DevelopmentIncentivizedProjectsNetRevenueReportfortheCityofDenton.
Sullivangaveareportregardingthe2017EconomicDevelopmentIncentivizedProjectsNetRevenue
ReportfortheCityofDenton.
F.EDP19003Receiveareport,holdadiscussion,andgivestaffdirectionregardingthedevelopmentoftheCole
RanchandHunterRanchmasterplannedcommunitiesinsouthwestDenton.
BoothgaveanoverviewofboththeColeRanchandtheHunterRanchmasterplannedcommunities
Boothmentionedtheoverviewofinformationwasprimarilyforinformationalpurposesonlyanddid
notrequireactionbytheEconomicDevelopmentPartnershipBoard.
G.EDP19004ConsiderapprovaloftheminutesoftheNovember14,2018meeting.
Jestermadeamotiontoapprovetheminutesaspresented.Briggssecondedthemotion.The
motionwasapprovedunanimouslybyavoteof90.
H.EDP19005StaffReports
Riverssuggestedthatintheinterestoftime,astheEconomicDevelopmentPartnershipBoard
meetingwasscheduledtobefollowedbytheTIRZNumber2Boardmeeting,theBoardwould
forgoindividualpresentationsregardingtheStaffReports.Riversthankedstafffortheirdiligent
effortstopreparethereports.
1.CityEDStrategicPerformanceReport
2.December2018STaNDReport
3.February2019ChamberActivityReport
Themeetingadjournedat12:15p.m.
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-544,Version:1
AGENDA CAPTION
Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant
application for Joey Hawkins, representing Jupiter House Coffee, from the Downtown Reinvestment Grant
Program not to exceed $25,000; and providing for an effective date. The Economic Development Partnership
Board recommends approval (8-0).
City of DentonPage 1 of 1Printed on 3/15/2019
powered by Legistar™
City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
CITY COUNCIL
DEPARTMENT: Economic Development
CM/ DCM/ ACM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant
application for Joey Hawkins, representing Jupiter House Coffee from the Downtown Reinvestment Grant
Program not to exceed $25,000; and providing for an effective date (the Economic Development
Partnership Board recommends approval 8-0).
BACKGROUND
Jupiter House Coffee is located at 106 N. Locust. On December 26, 2017, a fire broke out next door,
resulting in the destruction of the Downtown Mini Mall. Jupiter House was heavily damaged by smoke
and water during the event. The business has remained closed since the fire.
The building owner is Frank Zangerl. Mr. Zangerl received some insurance money for the fire damage,
but the repairs exceed the amount he obtained. Mr. Hawkins insurance covered losses on food and some
equipment, but not on the building or its contents.
They plan on making the following improvements to the building:
Façade work
Asbestos removal
Roof repair
Signage
Awnings
Utility upgrades
Addition of a full kitchen, in the basement
Addition of a mezzanine
Setback of the entrance, to create a front patio
Grant applications are scored based on:
Economic Impact - 0-5 Points
o Total investment dollars as provided in the grant application
o Investment in structure construction or renovation (excluding purchase price)
o Investment in furniture, fixtures and equipment; estimated taxable sales
Historic Accuracy/Design - 0-5 Points
o New construction/complements existing buildings
o Restores building to historic accuracy
o Renovation of building with historic marker (Local, state or national historic marker)
Upgrades to Utilities/Impact Fees - 0-5 Points
o Requires upgrades in electrical service
o Increases existing water/wastewater capacity
o No existing utilities to structure
o Extends water/wastewater lines (improves additional properties)
o Impact fees may be ranked depending upon percentage of fees to eligible expenses
Increases Population - 0-5 Points
o Increases consumer traffic (day or night)
o Increases quality residential units
Interior/Code Improvements - 0-5 points
o Asbestos and mold abatement
o Fire suppression systems
Other - 0-10 Points
Including, but not limited to:
o Partners with other businesses (i.e., shared parking)
o Project is a "target" business (i.e., grocery, pharmacy, locally owned)
o Promotes development of Denton arts and entertainment Longevity of business
Total project scores can range from 0 to 35 points.
Downtown Task Force members use the following matrix to score each project:
4
2
1
Grant Scoring System
5
3
0
Economic Impact (0-5)
Historic Accuracy/Design (0-5)
Utility Upgrades/Impact fees
(0-5)
Increases Population (0-5)
Interior/Code Improvements (0-
5)
Other (0-10)
Totals
Recommendations are be based on:
0-14 points = No funding
15-19 points = Grant recommendation up to $5,000
20-24 points = Grant recommendation up to $10,000
25-35 points = Grant recommendation up to $25,000
Each Downtown Task Force member scores each project, then staff members total and average the scores.
Jupiter House Coffee had an average score of 27.3, which was rounded down to 27, allowing a
recommendation up to $25,000.
PRIOR ACTION/REVIEW
December 13, 2018 -- The Downtown Task Force met and recommended a Downtown Reinvestment Grant
in the amount of $25,000 to the Economic Development Partnership Board (16-0).
February 13, 2019 -- The Economic Development Partnership Board met and recommended a Downtown
Reinvestment Grant in the amount of $25,000 (8-0).
EXHIBITS
Exhibit 1 - Agenda Information Sheet
Exhibit 2 - Ordinance and grant application
Exhibit 3 - Minutes from the October 11, 2018, Downtown Task Force meeting
Exhibit 4 - Minutes from the February 13, 2019, Economic Development Partnership Board meeting
Respectfully submitted:
Caroline Booth
Director of Economic Development
Prepared by:
Julie Glover
Economic Development Program Administrator
MINUTES
CITY OF DENTON DOWNTOWN TASK FORCE
October 11, 2018
The Downtown Task Force, a subcommittee of the Economic Development Partnership Board of
the City of Denton, convened on Thursday, October 11, 2018, at 8:38 am, in the City Council
Work Session Room, 215 E. McKinney Street, Denton, Texas, 76201.
PRESENT: Monte Jensen, Melissa Lenaburg, Georgina Nzogi, Alex Payne, Jill Jester,
Brock McKnight, Don Lee, Bob Moses, and Hank Dickenson
ABSENT: Kate Lynass, Beth Lewis, Herbert Holl, Peggy Capps, and Brandon
Martino
EX-OFFICIO: Absent: Glen Farris
STAFF PRESENT: Caroline Booth, Kim Phillips, Christina Davis, Karen Boenker, and
Michelle Coughlin
1. Consider approval of the minutes from the September 6, 2018 Downtown Task
Force meeting.
Lee made a motion to approve the minutes as presented from the September 6, 2018,
2018, Downtown Task Force meeting. Dickenson seconded the motion. The motion was
approved unanimously, 7-0.
Hank Dickenson and Bob Moses arrived.
*The DTTF chose to skip to item number 3 since there were no representatives from the
Loophole at the time. Representatives from Jupiter House were present.
3. Receive a report, hold a discussion, and give staff direction regarding a Downtown
Reinvestment Grant for 106 N. Locust (Jupiter House).
Joey and Amy Hawkins were present at the meeting in order to present their plans for
renovating Jupiter house and to request a Downtown Reinvestment Grant from the DTTF.
The renovations are necessary in order to re-open their business. Jupiter House was
severely damaged in the fire that took place next door, at the Downtown Mini Mall, the
day after Christmas 2017. Their business has been closed since that time.
Hawkins mentioned he and Amy s Bagels in the next month, as heir
lease is up, however their plans for Jupiter House include combining both concepts into
one. Joey provided a copy of the proposed design sketches, which he explained came
from a UNT student project. The major part of the renovation will include shoring up the
exterior wall and roof. Joey mentioned the target date for re-opening is mid-January
2019.
2. Receive a report, hold a discussion, and give staff direction regarding a Downtown
Reinvestment Grant for 119 W. Hickory (The Loophole).
Davis mentioned that renovations of this building include restoring the historical
significance of the façade, vestibule, and signage. Davis said that plans have been
presented to and approved by the Historic Land Commission, therefore if the DTTF
offers suggestions or changes to the existing plans, the new tenant would be required
to go back to the HLC for another review and second approval.
Cliff Tinder, Builder and Contractor, with Origins was present to answer questions.
4. Staff Report
a. Openings:
b. Coming soon: Fine Arts Theatre, Sweetwater Grill, Rubber Gloves Rehearsal Studio,
H2Oak, Gelato shop on Oak Street, Gnome Cones
c. Closings: Fox Vapor Shop, Hypnotic Donuts
d. Moving: The DIME Store, to the corner of McKinney and Austin
e.
f. Upcoming events:
Twilight Tunes @ 6:00,
Geezer Palooza, October 20
th
Day of the Dead, 27
th
UNT Homecoming, 27
College Football every Saturday
g. Next meeting date: November 8, 2018
Lenaburg made a motion to approve a Downtown Reinvestment Grant for The Loophole
in the amount of $5,000.00. Moses seconded the motion. The motion was approved
unanimously by a vote of 9-0.
Payne made a motion to approve a Downtown Reinvestment Grant in the amount of
$25,000 for Jupiter House. Lee seconded the motion. The motion was approved
unanimously by a vote of 9-0.
The meeting adjourned at 9:35 a.m.
Exhibit1
MINUTES
CITYOFDENTON
ECONOMICDEVELOPMENTPARTNERSHIPBOARD
February13,2019
Afterdeterminingthataquorumwaspresent,theEconomicDevelopmentPartnershipBoardconvenedonWednesday,
E.McKinney
February13,2019,at11:17a.m.ThemeetingwasheldintheCityCouncilWorkSessionRoomatCityHall,215
Street,Denton,Texas,76201.
PRESENT:SteveEdgar,BobEames,ChrisDavis,JohnBaines,KeelyG.Briggs,MartyRivers,PamelaPadilla,
JillJester,andJimmyMejia
ABSENT:TonyClark,Tomlinson,andGerardHudspeth
EXOFFICIO:Present:PamMaruffoAbsent:JamieWilson,ToddHileman
STAFFPRESENT:
1.ITEMSFORINDIVIDUALCONSIDERATION
A.EDP19009Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardingan
ordinanceontheexpendituresofthefundbalanceoftheGeneralFundaccountrelatedtothe
DowntownReinvestmentGrantProgram.
Boothreportedthatthisitempertainstohousekeepingrelatedtospendingdowntheremaining
fundsintheGeneralFundfortheDowntownReinvestmentGrantProgram.Boothsaidthatin
Septemberof2018theCityCouncilapprovedchangingthefundingsourcefortheDowntown
ReinvestmentGrantprogramfromtheDowntownmixedbeveragefundtotheDowntownTIFFund
andatthesametimeupdatedthegrantreviewprocesssotheexpendituresfortheprogramare
reviewedbytheDowntownTIFBoard.BoothsaidthatatthesametimetheCityCouncilgavestaff
directiontospenddownthefundsintheGeneralFunddowntozero.Boothsaidanordinanceis
neededinordertooutlineaprocessforspendingtheremainingfunds.Boothsaidthismakesthis
theOrdinanceupfortheEconomicDevelopmentPartnership.ƚğƩķƭ
itemstraightforwardinthat
considerationwouldestablishtheprocess.Boothsaidtheamountinthefundisapproximately
$108,000.BoothsaidthegrantswillfirstbereviewedbytheDowntownTaskForce,thenthe
EconomicDevelopmentPartnershipBoard,andthenultimatelysubjecttofinalapprovalbytheCity
Council.
Boothsaidoncethefundsarespentdowntozero,thegrantapprovalprocesswillbeinthisorder:
DowntownTaskForce,DowntownTIFBoard,andfinalapprovalbyCityCouncil.
TherewereacoupleofquestionsfromtheEconomicDevelopmentPartnershipBoardmembers
regardingchangesthatwouldbemadeastheprocesschangesfromoneprocesstotheother.
Exhibit1
BriggsmadeamotionofapprovalforrecommendationtotheCityCouncilregardingtheOrdinance.
Eamessecondedthemotion.Themotionwasapprovedunanimouslybyavoteof80.
Jesterjoinedthemeeting.
B.EDP19001Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
DowntownReinvestmentGrantRequestfor106N.LocustStreet(JupiterHouse).
Glovergaveareportregardingtherequestfora$25,000DowntownReinvestmentGrant
for106N.LocustStreet(JupiterHouse).JoeyHawkins,owneroftheJupiterHouse,waspresentto
speakwiththeEconomicDevelopmentPartnershipBoardandtoansweranyquestionstheymay
haveregardingthegrantrequest.
Briggsmadeamotiontoapprovethe$25,000DowntownReinvestmentGrantrequestfor106N.
LocustStreet(JupiterHouse).Bainessecondedthemotion.Themotionwasapprovedunanimously
byavoteof90.
Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
C.EDP19010
DowntownReinvestmentGrantrequestfor115S.ElmStreet(SweetwaterGrillandTavern).
GlovergaveareportregardingtheDowntownReinvestmentGrantrequestfor115S.ElmStreet
(SweetwaterGrillandTavern).
JestermadeamotiontoapproveaDowntownReinvestmentGrantintheamountof$5,000for115
S.ElmStreet(SweetwaterGrillandTavern).Eamessecondedthemotion.Themotionwasapproved
unanimouslybyavoteof90.
D.EDP19008Receiveareport,holdadiscussion,andmakearecommendationtotheCityCouncilregardinga
DowntownReinvestmentGrantrequestfor119W.HickoryStreet(TheLoopholeGastropuband
andAleHouse.
GlovergaveareportregardingtheDowntownReinvestmentGrantrequestfor119W.Hickory
Street(TheLoopholeGastropubandAleHouse).CliffTender,GeneralContractorfortheproject,
waspresentatthemeetingtospeakwiththeEconomicDevelopmentPartnershipBoardaboutthe
grantrequestandansweranyquestionsonbehalfofthebusinessowner.
BriggsmadeamotiontoapproveaDowntownReinvestmentGrantintheamountof$5,000for119
W.HickoryStreet(TheLoopholeGastropubandAleHouse).Jestersecondedthemotion.The
motionwasapprovedunanimouslybyavoteof90.
Exhibit1
E.EDP19002Receiveareport,holdadiscussion,andgivestaffdirectionregardingthe2017Economic
DevelopmentIncentivizedProjectsNetRevenueReportfortheCityofDenton.
Sullivangaveareportregardingthe2017EconomicDevelopmentIncentivizedProjectsNetRevenue
ReportfortheCityofDenton.
F.EDP19003Receiveareport,holdadiscussion,andgivestaffdirectionregardingthedevelopmentoftheCole
RanchandHunterRanchmasterplannedcommunitiesinsouthwestDenton.
BoothgaveanoverviewofboththeColeRanchandtheHunterRanchmasterplannedcommunities
Boothmentionedtheoverviewofinformationwasprimarilyforinformationalpurposesonlyanddid
notrequireactionbytheEconomicDevelopmentPartnershipBoard.
G.EDP19004ConsiderapprovaloftheminutesoftheNovember14,2018meeting.
Jestermadeamotiontoapprovetheminutesaspresented.Briggssecondedthemotion.The
motionwasapprovedunanimouslybyavoteof90.
H.EDP19005StaffReports
Riverssuggestedthatintheinterestoftime,astheEconomicDevelopmentPartnershipBoard
meetingwasscheduledtobefollowedbytheTIRZNumber2Boardmeeting,theBoardwould
forgoindividualpresentationsregardingtheStaffReports.Riversthankedstafffortheirdiligent
effortstopreparethereports.
1.CityEDStrategicPerformanceReport
2.December2018STaNDReport
3.February2019ChamberActivityReport
Themeetingadjournedat12:15p.m.
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-548,Version:1
AGENDA CAPTION
Consider approval of the minutes of January 15, February 4, February 5, and February 12, 2019.
City of DentonPage 1 of 1Printed on 3/15/2019
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CITY OF DENTON CITY COUNCIL MINUTES
January 15, 2019
After determining that a quorum was present, the City Council of the City of Denton, Texas
convened in a Work Session on Tuesday, January 15, 2019 at 12:00 p.m. in the Council Work
Session Room at City Hall, 215 E. McKinney Street, Denton, Texas.
PRESENT: Council Member Hudspeth, Council Member Briggs, Mayor Pro Tem Ryan, Council
Member Armintor, Council Member Meltzer, and Mayor Watts.
ABSENT: Council Member Duff.
WORK SESSION
1. Citizen Comments on Consent Agenda Items
There were no citizen comments on Consent Agenda items.
2. Requests for clarification of agenda items listed on the agenda for January 15, 2019.
Staff responded to Council requests for clarification on the following:
Council Member Briggs asked about the Oak Gateway Plan and the section on bike lanes and
whether that would be considered by the Mobility Committee.
Council Member Briggs asked about Consent Agenda Item D.
Mayor Watts asked about Public Hearing Items 5B and 6A.
3. Work Session Reports
A. ID 19-026 Receive a report, hold a discussion, and give staff direction regarding the
development of the Cole Ranch and Hunter Ranch master planned communities in southwest
Denton.
Bryan Langley, Deputy City Manager, provided background on the Cole Ranch and Hunter Ranch
master planned communities. Cole Ranch and Hunter Ranch each represented 3,000 acres in
southwest Denton that were zoned as Master Planned Communities. In recent years, Cole Ranch
approached Council about establishing a Public Improvement District (PID) to finance the required
public infrastructure for the development. Council declined to establish a PID because of concerns
about the debt that would be included on the City’s financials, among other issues.
In 2018, the Cole Ranch/Hunter Ranch developers partnered on a coordinated development and
were asking the City to consider the establishment of a municipal management district (MMD)
instead of a PID to enable them to recapture part of the cost of the required public infrastructure.
An MMD was a separate political subdivision from the City that could collect property taxes or
assessments from property owners within the district under limitations set by the City. Developers
would front the cost for the public infrastructure and would be reimbursed by bonds issued by the
MMD. Reimbursement only occurred after the developer had paid for and built the improvements
City of Denton City Council Minutes
January 15, 2019
Page 2
and created assessed value from homes and commercial buildings at a 10:1 ratio to the bond
reimbursement. Revenue from property taxes collected from the property owners within the
district was used pay back the debt. A key difference between a PID and an MMD was that the
MMD-issued debt would not be carried on the City's financials.
Brian Carlock with Hillwood Communities stated that the objective of this project was to develop
a 6,000 acre Master Planned Community and to create a special financing district (MMD) on each
property that was necessary to finance the currently unavailable regional infrastructure and to
provide a superior level of quality architecture, amenities, and lifestyle; and to create a
development and financing structure through the MMD that avoided any risk or financial burden
to the City while creating $4 billion in assessed value at build out.
Carlock reviewed elements of the Denton 2030 Plan that were guiding principles for the projects
and provided an analysis of the sites. He provided a preliminary development plan. He reviewed
the phases of the projects. He stated that the quality and standards of housing, parks, amenities and
mixed use would exceed the City standards. He stated that they were requesting City approval of
an MMD "Support Resolution"; City approval / consent of the MMD creation; and City approval
of master plan documents including design guidelines and development plan map.
Council discussion included staff's comments on the development plan; other Hillwood projects
that were not in a MMD; question regarding alignment of Denton Airport and Alliance Airport,
building to scale in phases of affordability, affordable housing within the project.
Langley stated that staff recommended an MMD given that it addressed the Council’s feedback
more effectively than a PID. The developers had requested a resolution in support of the MMD
for the Texas Legislature. If passed, Council could still decide not to create the MMD or to restrict
powers through a developer agreement. Staff also recommended that the developer fund an escrow
to conduct an independent fiscal impact analysis of the project and provide a legal review by City’s
consultants.
City Manager Hileman stated that staff could show pros and cons of the development and provide
answers to most of the questions asked. If there was not enough benefit to the community, then
the project would die.
Consensus of Council was to bring it back for another discussion with the additional information
requested.
B. ID 19-037 Receive a report, hold a discussion, and give staff direction regarding multi-family
dwelling, collegiate housing and dormitory land use classifications.
Ron Menguita, Development Services, stated that Council had directed staff to refine / clarify the
definition of dormitory. The refined definition of dormitory was a structure with three or more
dwelling units in which individual bedrooms were offered for consideration to residents for periods
in excess of 30 days, and which each bedroom lacks exclusive use of a full kitchen.
Menguita stated there were 33 Rent by the Bedroom Developments and reviewed the zoning
district they were located in. He stated there were 6,153 units in the Rent by the Bedroom
City of Denton City Council Minutes
January 15, 2019
Page 3
Developments which was 18,090 bedrooms. He reviewed the existing dormitories and how they
were permitted. Proposed limitation dormitories over 45 feet in height were required to obtain a
Specific Use Permit. New development would fall under this. Existing would be grandfathered.
Council discussion how to regulate it, height of dormitories, enforcement of
conversions/alterations of existing multi-family dwelling developments; non-conforming uses.
single-family dwelling detached, duplex and townhome offering individual bedrooms for
consideration.
Consensus of Council was to extend the SUP in current zoning classifications to DR-2, DC-N and
DC-G and when the new classifications come in to extend the SUP to R7, MN and MD and make
it SUP across the board and the only one by right would be PF – Public Facilities.
C. ID 19-053 Receive a report, hold a discussion, and give staff direction regarding information
on current laws and policies which regulate the sale and use of electronic cigarettes, including
information on age restrictions.
Sarah Kuechler, Director of Public Affairs, reviewed the City of Denton regulations related to the
smoking ordinance. E-cigs were prohibited in all locations where smoking was prohibited. They
had added a provision making it unlawful to sell or give e-cigs or paraphernalia to anyone under
18 years of age. The Texas Education Code required school districts to prohibit the use or
possession of e-cigs or tobacco products at a school-related or school-sanctioned activity on or off
school property and ensure that school personnel enforce the policies on school property. DISD
has a policy in the Student and Parent Handbook and Enforcement actions for policy violations
were handled by Denton ISD personnel.
Kuechler reviewed the San Antonio tobacco ordinance and stated that small retailer associations
had filed a federal lawsuit challenging the City of San Antonio ordinance. They alleged that the
ordinance discriminated against retailers since they were the only ones subject to punishment under
the ordinance. Young adults between the ages of 18-20 who were caught purchasing, using, or
possessing tobacco did not face penalties or enforcement under the San Antonio ordinance or state
law.
Kuechler advised that considerations at the State level were legislation to raise the state’s minimum
age had been introduced in prior legislative sessions. A coalition of organizations called Texas 21
th
was seeking to introduce and pass legislation in the 86 Legislative Session to raise the tobacco
and e-cigarette sales age to 21 state-wide. Considerations at the Federal level were the FDA
announcement in Nov. 2018 targeting action to limit the sale of flavored e-cigarette products to
minors both in stores and online.
Council discussion included raising the tax on cigarettes, education campaign with county and
school district.
Council direction was to work on a joint partnership with DISD and share with Council a copy of
the proposed legislation and prepare a resolution in support should Council want to consider that.
D. ID 19-078 Receive a report from staff, hold a discussion, and give staff direction regarding
the funding of a replacement Fire Technical Rescue/ Light Air Vehicle.
City of Denton City Council Minutes
January 15, 2019
Page 4
Kenneth Hedges, Fire Chief, stated that the Fire Department used two separate apparatus for major
fires, rescues, or hazmat incidents. The Technical Rescue Unit was a truck and trailer unit and
current challenges were that the unit operated near the maximum weight capacity slowing down
response times along with the challenge of transporting all necessary equipment required for the
specific incident. The air-light apparatus was designed to carry necessary equipment for breathing
air support, spare bottle storage, scene illumination, and electrical support. The unit has been out
of service for over a year and a half, which required the department to dispatch surrounding
departments for mutual aid assistance during major events.
A Fire Technical Rescue/Light Air Vehicle was a specialized combined rescue vehicle carrying
rescue equipment, air-light equipment on-site with an expected life span of 15 years. The air-light
component offered the ability to refill tanks for Self-Contained Breathing Apparatus at the scene
and continued to do so for an extended period. The department had applied for funding assistance
three years in a row through the FEMA Assistance to Firefighters Grant, in which the department’s
requests had not been approved.
Staff recommended the purchase of one combination Fire Technical Rescue/Light Air Vehicle for
the approximate cost of $750,000, and the reduction of two vehicles: the current air-light apparatus
and heavy rescue apparatus from the department fleet. $250,000 had been allotted to replace this
unit in the 2018-19 budget. In addition, there was $500,000 available from the FY 2018-19 CIP
vehicle replacement budget. The estimated cost to replace the technical rescue vehicle with
air/light capabilities was $750,000.
David Gaines, Assistant Director of Finance, stated that a reimbursement ordinance approved by
Council on October 16, 2018 included $2.9 million for vehicle replacements. Based on the
preliminary inventory analysis, $450,000 in previously scheduled FY2018-19 replacements was
available - three light duty trucks and two pieces of heavy equipment scheduled for replacement
were no longer necessary. These funds could be appropriated to the fire rescue truck.
Consensus of Council was to move forward.
E. ID 19-044 Receive a report, hold a discussion and provide staff direction regarding activities
related to participation in the National Flood Insurance Program’s Community Rating
System. Staff will give an overview of the City’s flood program and current classification
status in the Community Rating System.
Todd Estes, City Engineer, stated that the City of Denton's Community Rating System
Classification had increased from a Class 6 to Class 8 in October 2018. He reviewed the rating
process. A lower classification number provided a greater discount for policy owners. The City
currently had 455 policy holders. 253 policy holders were eligible for discounts through the CRS.
Classification was point based. Points were assessed by activity. Activities were defined by
FEMA. Activities and Criteria were updated by FEMA about every 5 years. Floodplain
Management Planning included an annual update on the City’s flood protection action plan. Action
Plan was available from the City of Denton Office of Emergency Management. Action items
included - CASA Weather Radar System; Public Education Program; Emergency Operations
Center Relocation; and New Flood Studies of High and Moderate Hazard Dams. Capital Projects
City of Denton City Council Minutes
January 15, 2019
Page 5
included a Stormwater Master Plan. Ongoing Flood Mitigation Projects were – Eagle Drive
improvements, PEC-4, and Downtown Storm Drain Project.
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 19-016 Deliberations Regarding Certain Public Power Utilities: Competitive Matters -
Under Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas
Government Code Section 551.071.
Receive information from staff, and discuss, deliberate and provide direction to staff
regarding the future plans for, and current and future operations of, the Gibbons Creek Steam
Electric Station owned by the Texas Municipal Power Agency. Consultation with the City’s
attorneys regarding legal issues associated with the future plans for, and current and future
operations of, the Gibbons Creek Steam Electric Station 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. (The City of Denton is a member of TMPA).
B. ID 19-114 Deliberations regarding a Personnel Matter under Government Code Section
551.074
Discuss and deliberate regarding the evaluation of candidates and the
appointment/employment of a Municipal Judge.
C. ID 19-140 Consultation with Attorneys - Under Texas Government Code Section 551.071;
Deliberations regarding Personnel Matters - Under Texas Government Code Section
551.074.
Consult with the City’s attorneys on legal considerations, status and strategy, in advance of
a proposed mediation before the Equal Employment Opportunity Commission, relating to
the pending charge of former employee Shandrian Jarvis, and to receive legal advice
regarding same, where the City’s Attorneys’ duties to the governmental body under the Texas
Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with
Chapter 551 of the Texas Open Meetings Act. This closed session also concerns
deliberations involving a public officer or employee, under circumstances allowing closed
session under section 551.074 of the Texas Open Meetings Act.
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.
City of Denton City Council Minutes
January 15, 2019
Page 6
2.PROCLAMATIONS/PRESENTATIONS
A. ID 19-089 Resolution of Appreciation for Jennifer Walters.
The Mayor read a Resolution of Appreciation for Jennifer Walters.
Council Member Hudspeth motioned, Mayor Pro Tem Ryan seconded to approve the resolution.
On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Mayor Pro
Tem Ryan "aye", Council Member Armintor "aye", Council Member Meltzer "aye", and Mayor
Watts "aye". Motion carried unanimously.
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.
C. Additional Citizen Reports.
Willie Hudspeth, 623 Newton, spoke regarding dumpsters and how they were emptied.
Jane Piper Lunt, 1205 N. Austin, spoke regarding the opening of the Monsignor King Center when
the temperatures were below freezing. She challenged each Council Member to donate their
monthly stipend to help pay for the cost of two full-time employees for the Center so it could be
open seven nights a week.
4.CONSENT AGENDA
Mayor Pro Tem Ryan motioned, Council Member Armintor seconded to adopt the Consent
Agenda and accompanying ordinances and resolutions. On roll call vote, Council Member
Hudspeth "aye", Council Member Briggs "aye", Mayor Pro Tem Ryan "aye", Council Member
Armintor "aye", Council Member Meltzer "aye", and Mayor Watts "aye". Motion carried
unanimously.
Ordinance No. 19-010
A. ID 19-010 Consider adoption of an ordinance of the City of Denton, approving in-kind
services for security in an amount not to exceed $4,536 for the Women’s March on Saturday,
January 19, 2019, from 9:30 a.m. to 2:00 p.m., to be held on the courthouse lawn in
downtown Denton; and providing an effective date.
Ordinance No. 19-043
B. ID 19-043 Consider adoption of an ordinance of the City of Denton, Texas authorizing the
expenditure of funds for payment by the City of Denton for the operation and maintenance
fee for water storage at Lake Lewisville and Lake Ray Roberts to the U.S. Army Corps of
Engineers; and providing an effective date (Water Storage O&M Fee in the total amount not
to exceed $123,000).
City of Denton City Council Minutes
January 15, 2019
Page 7
Ordinance No. 19-059
C. ID 19-059 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, accepting competitive bids and awarding an annual contract for heavy
equipment rental for various City of Denton departments; providing for the expenditure of
funds therefor; and providing an effective date (IFB 6713 - awarded to the lowest responsive
bidder for each line item: Berry Companies Inc. dba Bobcat of Dallas, in a total not-to-exceed
amount of $50,000, Southlake Equipment Company, Inc. dba B&R Equipment Company in
a total not-to-exceed amount of $100,000, Closner Equipment Co., Inc., in a total not-to-
exceed amount of $115,000, Herc Rentals Inc., in a total not-to-exceed amount of $50,000,
Kirby-Smith Machinery, Inc., in a total not-to-exceed amount of $150,000, RDO Equipment
Co., in a total not-to-exceed amount of $275,000, ROMCO Equipment Co., LLC, in a total
not-to-exceed amount of $50,000, T-K-O Equipment Co., in a total not-to-exceed amount of
$150,000, United Rentals (North America), Inc., in a total not-to-exceed amount of
$205,000, Zimmerer Kubota, in a total not-to-exceed amount of $50,000; in a total one (1)
year, not-to-exceed amount of $1,195,000).
Ordinance No. 19-061
D. ID 19-061 Consider adoption of an ordinance of the City of Denton, Texas, a Texas home-
rule municipal corporation, authorizing the City Manager to execute a contract through the
U.S. Communities Cooperative Purchasing Program Contract # 00254 for the purchase of
residential refuse and recycling carts and replacement parts; providing for the expenditure of
funds therefor; and providing an effective date (File 6926 - awarded to Rehrig Pacific
Company, in the three (3) year not-to-exceed amount of $1,010,208).
Ordinance No. 19-076
E. ID 19-076 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract for the purchase
of Emergency Medical Services (EMS) patient lift equipment, and maintenance service
agreement, inspection, and repair, with Stryker Sales Corporation; which is the sole provider
of this equipment and service in accordance with Texas Local Government Code 252.022,
which provides that procurement of commodities and services that are available from one
source are exempt from competitive bidding and if over $50,000 shall be awarded by the
governing body; and providing an effective date (File 6921 - awarded to Stryker Sales
Corporation in the three (3) year not-to-exceed amount of $392,501.56).
Ordinance No. 19-077
F. ID 19-077 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager, or his designee, to execute a contract
through the Buy Board Cooperative Purchasing Network Contract Number 571-18 for the
acquisition one (1) Pierce Velocity Pumper Engine; providing for the expenditure of funds
therefor; and providing an effective date (File 6973 - award to Siddons-Martin Emergency
Group, LLC, in the amount of $929,196.68).
Ordinance No. 19-084
G. ID 19-084 Consider adoption of an ordinance of the City of Denton approving a City
sponsorship in an amount not to exceed $500.00 to the Denton Chamber of Commerce for
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January 15, 2019
Page 8
the 2019 Denton County Days on Monday, February 18, 2019 through Wednesday, February
20, 2019; and providing an effective date.
Approved the minutes listed below
H. ID 19-092 Consider approval of the minutes of December 3, December 4, December 11, and
December 18, 2018.
Resolution No. 19-139
I. ID 19-139 Consider approval of a resolution of the City Council of the City of Denton, Texas,
appointing an interim City Secretary; setting forth the terms of the appointment; and
providing an effective date.
5. PUBLIC HEARINGS
A. S18-0008f Hold a public hearing and consider adoption of an ordinance of the City of
Denton, Texas, approving a Specific Use Permit to allow for a multi-family residential use
as part of a mixed-use development on an approximately 31-acre site, generally located on
the north side of Windsor Drive, east of the I-35 N Frontage Road, in the City of Denton,
Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for
violations thereof; providing for severability; and establishing an effective date. (S18-0008,
Windsor Drive Apartments). THIS PUBLIC HEARING HAS BEEN CONTINUED FROM
THE DECEMBER 4, 2018 CITY COUNCIL MEETING.
The Mayor stated that the applicant had asked for this item to be postponed to the February 5
Council meeting.
The Mayor opened the public hearing.
The following individual spoke during the public hearing:
Ed Soph, 1620 Victoria Drive, spoke in opposition
A comment card in opposition was submitted by Carol Soph, 1620 Victoria.
Mayor Pro Tem Ryan motioned, Council Member Briggs seconded to postpone the item to the
February 5 Council meeting. On roll call vote, Council Member Hudspeth "aye", Council Member
Briggs "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council Member
Meltzer "aye", and Mayor Watts "aye". Motion carried unanimously.
B. ID 19-083 Hold a public hearing and consider adoption of an ordinance of the City Council
of the City of Denton, Texas designating a certain area within the City limits of Denton as
Tyson Sales and Distribution Reinvestment Zone No. XIV for commercial/industrial tax
abatement; establishing the boundaries of such zone; making findings required in accordance
with Chapters 311 and 312 of the Texas Tax Code; ordaining other matters relating thereto;
providing a severability clause; providing for repeal; and providing an effective date.
City of Denton City Council Minutes
January 15, 2019
Page 9
The Mayor opened the public hearing.
A comment card in opposition was submitted by Samuel Escalante, 2565 Quail Ridge Drive.
Mayor Pro Tem Ryan motioned, Council Member Hudspeth seconded to postpone the item to the
February 5 Council meeting. On roll call vote, Council Member Hudspeth "aye", Council Member
Briggs "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council Member
Meltzer "aye", and Mayor Watts "aye". Motion carried unanimously.
6.ITEMS FOR INDIVIDUAL CONSIDERATION
A. ID 19-025 Consider adoption of an ordinance authorizing the Mayor to execute a tax
abatement agreement with Tyson Sales and Distribution, Inc. setting forth all the required
terms of the tax abatement agreement in accordance with the terms of Chapter 312 of the
Texas Tax Code; setting forth the various conditions to Tyson Sales and Distribution, Inc.
receiving the tax abatement; providing for a severability clause; and providing an effective
date.
The Mayor stated that the applicant had asked for this item to be postponed to the February 5
Council meeting.
A comment card in opposition was submitted by Samuel Escalante, 2565 Quail Ridge Drive.
Mayor Pro Tem Ryan motioned, Council member Hudspeth seconded to postpone the item to the
February 5 Council meeting. On roll call vote, Council Member Hudspeth "aye", Council Member
Briggs "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council Member
Meltzer "aye", and Mayor Watts "aye". Motion carried unanimously.
Ordinance No. 19-008
B. ID 19-008 Consider adoption of an ordinance of the City of Denton, Texas updating impact
fees by amending Chapter 26, "Utilities," section 26-210 through section 26-232 of the City
of Denton Code of Ordinances; adopting revised land use assumptions and capital
improvements plans for water and wastewater impact fees; establishing new service areas
for water and wastewater impact fees; establishing new maximum impact fees per service
unit and impact fees to be collected; creating schedules for the assessment and collection of
impact fees; repealing conflicting ordinances and resolutions; providing for a severability
clause; providing for a penalty not to exceed $2,000 for each violation thereof; and providing
an effective date.
Kenneth Banks, General Manager of Utilities, stated that impact fees were a one-time charge for
new development that covered a portion of the costs for the capital improvements programs
necessary to accommodate growth. Impact fees were authorized by the Texas Local Government
Code and were required to be updated every 5 years. The City Council appointed a Capital
Improvements Advisory Committee and the Committee evaluated the impact fees, made a
recommendation, and filed comments with the City Council. The impact fee study results and the
recommendations were presented to the City Council during the public hearing on December 18,
City of Denton City Council Minutes
January 15, 2019
Page 10
2018. Staff prepared the final ordinance in accordance with the direction of City Council during
the December 18, 2018 public hearing.
Council Member Meltzer motioned, Council Member Hudspeth seconded to adopt the ordinance.
On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "nay", Mayor Pro
Tem Ryan "aye", Council Member Armintor "nay", Council Member Meltzer "aye", and Mayor
Watts "aye". Motion carried (4-2).
C. ID 19-013 Consider approval of a resolution accepting the visions, goals, recommendations,
and implementation strategies proposed in the Oak Gateway Area Plan which covers an area
generally located South of Panhandle Street, North of Interstate 35, East of Bonnie Brae
Street, and West of Carroll Boulevard ("Oak Gateway Area"); and, providing an effective
date.
Ron Menguita, Development Services, reviewed the purpose of the plan. A proposed mixed-use
development on Fry Street came before Council but was not approved. The Fry Street Small Area
Plan was updated. The Oak Gateway Area Plan was created. The Oak Gateway Area Plan was
created in January 2016. Council selected a steering committee in 2018. The Committee had about
20 meetings and had some area plan tours and walking tours. A Community Workshop was held
and a public open house was held.
Committee members provided draft goals and recommendations for each sub-area and included
Land Use, Community Design, Mobility, Parking, and Services. Recommendations included the
following:
Create an Overlay District for the Scripture Street area that promotes walkability and
ensures revitalization and reinvestment projects are in scale with the area through a Form
Based Code format.
Create an Overlay District for the Oak/Hickory Street area that promotes walkability and
ensures revitalization and reinvestment projects are in scale with the area through a Form
Based Code format.
Make improvements to existing parks and identify new parks opportunities, such as the
UNT property on Bradley Street, the future decommissioned DME property on the
northwest corner of Bonnie Brae and Hickory Street, and pocket parks.
Create a Parking Benefit District on Oak/Hickory/Fry Streets. Evaluate the costs/benefits
of parking enforcement provided by the District vs. enforcement by the Police Department.
Identify parking spaces and non-parking areas with paint markings.
Create and expand open space on city-owned properties. This should include any excess
properties purchased as part of the Bonnie Brae widening project and the future
decommissioned DME property on the northwest corner of Bonnie Brae and Hickory
Street.
Designate the Collins area as an Overlay District (Fannin/Avenue A/Greenlee/Bernard).
City of Denton City Council Minutes
January 15, 2019
Page 11
Designate the Sycamore area as a Historic Conservation District
(Mulberry/Bernard/Prairie/Carroll).
Expand two-way stop at Bernard and Collins to a four-way stop.
Repair existing street lights and install street lights where lighting is needed in the area.
With residents, explore and consider residential districts that may be suitable for visitor
parking tag requirements (evaluated block-by-block).
Encourage Neighborhood Groups to participate in implementation of the Oak Gateway
Area Plan recommendations.
Comment cards were submitted by the following individuals.
Charles Browning, 3220 Hornbeam, Argyle, opposition to option 5 for the Hickory Street Bike
Lane.
Wendy McQuade, 9 Highview Court, opposition to the Hickory Street sharrows.
Manvela Picariello, 3232 N. Locust Street, opposition to the plan for the sharrows.
The following individuals spoke regarding the item.
Garrett Rumohr, 1700 Crescent Street, spoke in opposition to the Hickory Street segment of the
plan.
Alejandro Juarez, 425 Fulton Street, spoke regarding the Hickory Street segment and that the bike
lane was inadequate for cyclists.
Suzanne Rumohr, 1700 Crescent Street, spoke in support of the Plan but would like to see a
protected bike lane.
Christopher Walker, 805 Emory, spoke in support of the Plan but would like to see a re-design of
the bike lane.
Wendy McQuade, 9 Highview Court, spoke in support of the Plan but would like to see a
continuous bike lane along Hickory Street.
Council discussion included the parking plan, parking issues in the area, public safety issue and
the bike lane, continuous protected bike lane, sidewalk connections.
Council Member Briggs motioned, Council Member Meltzer seconded to approve the resolution
excluding the specific recommendation \[recommendation Area 1-M2(e)\] regarding the street cross
section for Hickory Street between Avenue B and Welch Street pending further deliberation by
City Council. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye",
Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council Member Meltzer "aye",
and Mayor Watts "nay". Motion carried (5-1).
D. ID 19-058 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract with Thalle
Construction Company, Inc., for the construction of the North South Phase II 36-inch/42-
City of Denton City Council Minutes
January 15, 2019
Page 12
inch Water Transmission Line Project for the City of Denton; providing for the expenditure
of funds therefor; and providing an effective date (IFB 6901 - awarded to Thalle Construction
Company, Inc., in the not-to-exceed amount of $7,798,807).
Todd Estes, City Engineer, stated that this project was to extend approximately 10,000 linear feet
of 36-inch and 42-inch pipeline from the 24-inch line along Roselawn Drive up to the TxDOT
facility at the intersection of northbound I-35E service road and Bonnie Brae Road, with the
pipeline being within the Bonnie Brae Street right-of-way. This project was on the City’s water
master plan and was needed to provide more adequate and reliable water service to the customers.
Mayor Pro Tem Ryan motioned, Council Member Meltzer seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Mayor Pro Tem
Ryan "aye", Council Member Armintor "aye", Council Member Meltzer "aye", and Mayor Watts
"aye". Motion carried unanimously.
E. ID 19-127 Consider nominations/appointments to the City’s Boards, Commissions, and
Committees: Airport Advisory Board, Health & Building Standards Commission, Library
Board, Traffic Safety Commission, and Committee on Persons with Disabilities.
Mayor Pro Tem Ryan motioned, Council Member Briggs seconded to approve the nominations of
Mike Upshaw to the Airport Advisory Board, and Rex King and Tammera Beckham to the
Committee on Persons with Disabilities. On roll call vote, Council Member Hudspeth "aye",
Council Member Briggs "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "aye",
Council Member Meltzer "aye", and Mayor Watts "aye". Motion carried unanimously.
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.
Council Member Hudspeth asked staff to explore future options for coordinating public events to
take advantage of free parking during evenings and weekends at TWU’s new parking garage and
provide pedestrian lighting and safety options to promote use of the new parking deck.
City of Denton City Council Minutes
January 15, 2019
Page 13
Council Member Armintor requested a staff report regarding the possibility on council donating
their stipend to fund staff at Monsignor King Outreach Center.
Council Member Armintor asked about the possibility of donating her stipend - since she cannot
take it - towards funding staff at Monsignor King Outreach Center.
Council Member Armintor requested information on potential reconfiguration of the Work Session
Room to increase the number of seats in the room.
Council Member Armintor requested a test pilot of unlimited number of open mic reports for one
to three months.
Mayor Watts requested additional information with the informal staff report regarding open mic
and stop gap measures to resolve those staffing issues for Monsignor King Outreach Center.
Council Member Meltzer asked staff to look at an alternative for the open mic request and that was
to consider one night a month that's just open mic.
Mayor Pro Tem Ryan stated that Thursday evening was the third annual State of the City.
With no further business, the meeting was adjourned at 9:27 p.m.
____________________________________
CHRIS WATTS
MAYOR
CITY OF DENTON, TEXAS
____________________________________
JANE RICHARDSON
ASSISTANT CITY SECRETARY
CITY OF DENTON, TEXAS
CITY OF DENTON CITY COUNCIL MINUTES
February 4, 2019
After determining that a quorum was present, the City Council of the City of Denton, Texas
convened in a Work Session on Monday, February 4, 2019 at 11:00 a.m. in the Public Safety
Training Facility, Classroom C, at City Hall East, 601 E. Hickory Street, Denton, Texas.
PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Duff, Mayor
Pro Tem Ryan, Council Member Armintor, and Council Member Meltzer.
ABSENT: Mayor Watts.
WORK SESSION
1. Work Session Reports
A. ID 19-015 Receive a report, hold a discussion, and give staff direction regarding the City of
Denton’s application to the Texas Commission on the Arts Cultural Districts Program.
Caroline Booth, Director of Economic Development, provided an update on the application
process for a cultural district. Cultural districts were defined geographical areas which encouraged
and celebrated arts, culture, entertainment, and history for the purpose of economic and community
development. They were formed around an existing concentration of cultural assets clustered in a
walkable area that a city wanted to promote to visitors and residents. Cultural districts did not
obligate property owners to any type of additional regulations.
There were three options for the district boundaries. Option 1 was 0.35 square miles and was the
Downtown TIF boundary. Option 2 was 1.8 square miles and was the 1917 city limits boundary.
Option 3 included the Downtown TIF boundary plus Quakertown Park and Oakwood Cemetery.
There were two governance options. Option 1 was the Public Art Committee. Option 2 was to
create a new committee with the Department of Economic Development staff serving as committee
liaison.
General consensus of Council was to go with Option 3 boundary and the Public Art Committee to
provide governance.
B. ID 19-285 Receive a report, hold a discussion and give staff direction regarding potential
polling locations for the May 4, 2019 City Council election.
Rachel Wood, Chief of Staff, reviewed the polling locations used during the 2018 election and
basic information for the 2019 election. In January, the Council had provided a general consensus
that there should be two polling locations per district. The polling locations used last year were
available with the exception of Ryan High School. The DISD Annex was available to use in place
of Ryan High School.
Council discussed an additional voting location on the UNT campus, TWU campus, and the Civic
Center.
City of Denton City Council Minutes
February 4, 2019
Page 2
C. ID 19-199 Conduct a walking tour of the Denton Police Department and Public Safety
Dispatch located within City Hall East.
The Council and staff participated in a walking tour of the Police Department and Dispatch Center.
D. ID 19-200 Receive a report, hold a discussion, and give staff direction regarding current and
future space planning needs at City Hall East for municipal operations including Police,
Public Safety Dispatch, Public Safety Training Center, and Development Services.
Mario Canizares, Assistant City Manager, reviewed the history of the building. In 2018, Council
and staff went on a tour of the Police Department and Public Safety Dispatch. It was noted that
there was broken and outdated furniture; outdated computers; undersized and mismatched work
spaces for police operations; inefficient space configurations which contributed to workflow
problems; no locker rooms for employees and inadequate restrooms facilities; inadequate work
space for public safety dispatch; and a lack of parking.
Council Member Armintor left the meeting at 1:40 p.m.
At that time, the proposed facility renovations for Public Safety Dispatch and the Criminal
Investigations Bureau were stopped until the entire facility could be reviewed and better planned.
The City engaged the architectural services of Brinkley, Sargent, Wiginton (BSW) of Dallas to
develop options for the City Council to consider that addressed staff concerns. The options were
Option A. Renovate existing Police building and Shell Space - $26,381,000 ; Option B. Renovate and
add to existing Police building and Shell Space – 34,253,413; Option C. Build a new Police Substation
- $11,424,084; Option D. Build a new Police Substation and add a Training Center - $22,200,000; and
Option E. Build a new Police facility at the City Hall East site - $47,242,227.
Staff recommended options A and C which was to renovate the existing Police building, the shell
space, and build a new Police substation. The estimated cost for these two options was
$37,805,084. To immediately initiate this project, property would need to be acquired and an
architectural firm selected to provide 30% designs services. The funds needed for these two
components were estimated at $3,948,000.
Consensus of Council was to proceed with Options A and C.
Following the completion of the Work Session, the City Council convened in a Closed Meeting at
2:22 p.m. to consider the following item.
1. Closed Meeting:
A. ID 19-281 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, discuss, deliberate, and provide staff with direction
pertaining to the potential acquisition of real property interests located in the City of Denton,
Texas generally east of Railroad Ave., south of E. McKinney St., west of N. Bradshaw St.,
and north of E. Hickory St. Consultation with the City’s attorneys regarding legal issues
associated with the potential acquisition or condemnation of the real property interests
City of Denton City Council Minutes
February 4, 2019
Page 3
described above 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 potential litigation. (City Hall
East)
The Council reconvened in Open Session and with no further business, the meeting was adjourned
at 2:45 p.m.
____________________________________
JOHN RYAN
MAYOR PRO TEM
CITY OF DENTON, TEXAS
____________________________________
JANE RICHARDSON
ASSISTANT CITY SECRETARY
CITY OF DENTON, TEXAS
CITY OF DENTON CITY COUNCIL MINUTES
February 5, 2019
After determining that a quorum was present, the City Council of the City of Denton, Texas
convened in a Work Session on Tuesday, February 5, 2019 at 1:30 p.m. in the Council Work
Session Room at City Hall, 215 E. McKinney Street, Denton, Texas.
PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Duff, Mayor
Pro Tem Ryan, Council Member Armintor, Council Member Meltzer, and Mayor
Watts.
ABSENT: None.
WORK SESSION
1. Citizen Comments on Consent Agenda Items
There were no citizen comments on Consent Agenda items.
2. Requests for clarification of agenda items listed on the agenda for February 5, 2019.
Council Member Armintor asked for clarification on Consent Agenda items G and H.
3. Work Session Reports
B. ID 19-128 Receive a report, hold a discussion, and give staff direction regarding a request
for a resolution of support from a developer applying for 9% housing tax credit with the
Texas Department of Housing and Community Affairs.
Dani Shaw, Community Development Manager, presented the item. Community Development
received an application seeking a Resolution of Support for a 9% application. This project was
previously submitted to the City Council and was provided a Resolution for Support for that HTC
9% application to TDHCA in 2018 but they did not receive sufficient points to be awarded housing
tax credits. This project has been modified to include additional partners as well as slight
modifications to the site plan and unit breakdown. Shaw stated that the project was Riva Denton
and Riva Switzerland was partnering with Casa Linda Development Corporation. The
development would have 120 units on 6.84 acres; current zoning was CM-G District. This would
be a three-story community with 1, 2 & 3 bedroom units - 804 square feet to 1,154 square feet.
Riva Denton would pay all property tax.
Staff believed that this complied with the principles and policies in the City’s Denton 2030 Plan
and the 5Year Consolidated Plan for Housing and Community Development as well as the
Housing Tax Credit Request for Support Policy. The project would still be required to go through
full development review process if their project was selected by TDCHA and they moved forward
with the development.
Consensus of Council was Option 1 – approve a resolution of support.
City of Denton City Council Minutes
February 5, 2019
Page 2
C. ID 19-201 Receive a report, hold a discussion, and give staff direction regarding the
feasibility and cost to reduce and/or eliminate utility poles along Dallas Drive and Teasley
Lane.
George Morrow, General Manager of DME, introduced Jerry Fielder with DME, who presented
the item. The Parks Department had budgeted to improve the northeast corner of Dallas Drive and
Teasley Lane through development of a median park. DME had been asked to investigate the
possibilities of reducing and/or eliminating the number of utility poles near this intersection. Both
Verizon and Charter had assets in this same area. Some of their assets currently occupied space on
DME’s overhead construction; however, both utilities also had facilities on topped-off poles that were
adjacent to the road’s right-of-way or directly adjacent to DME’s existing overhead construction. DME
has had conversations with both Verizon and Charter during which two potential options were
discussed. Option 1 was for both Verizon and Charter to move as much of their assets as practical from
“topped-off” poles to DME’s poles allowing the potential removal of up to nine (9) poles providing
for a cleaner look in this area. The cost would be minimal. Option 2 was to convert all, or some
portion, of DME’s, Charter’s, and Verizon’s facilities underground which could potentially remove as
many as 121 poles (both DME and topped-off poles”) in the area.
Consensus of Council was to go with Option 1.
A. ID 19-027 Receive a report, hold a discussion, and give staff direction regarding the
development of the Cole Ranch and Hunter Ranch master planned communities in southwest
Denton.
Bryan Langley Deputy City Manager, presented the item. He provided follow-up information
from the January 15 work session. He stated that the documents required to create an MMD would
be the ordinance, MMD Operating Agreement and Developer Agreement. Development Services
staff confirmed that the future land use map reflected the development of master planned
communities in this area. Staff confirmed that the preferred project phasing was at the north of
Cole Ranch near the future Loop 288 and I-35 moving south and west, and at the south of Hunter
Ranch near I-35 and Robson Ranch and moving north and west. Limits on the MMD’s use of
economic development tools could be included in the MMD operating agreement. The Council
could make a policy decision on whether to use City economic development tools within the
MMD. Estimated off-site infrastructure costs were $65 million; estimated regional infrastructure
costs were $240 million; and estimated on-site public infrastructure costs were $300 million.
Roughly two-thirds of the development could be served by DME. The developer agreement can
specify that DME will be the electric provider in all the areas where it was certified to serve.
Questions regarding donation of land for public safety facilities, park land, trees, gas well sites and
setbacks, affordable housing, and other issues of importance to the City Council could be
negotiated and included in either the MMD operating agreement or the developer agreement.
Consensus of Council was to move forward with the MMD process.
Following the completion of the Work Session, the City Council convened in a Closed Meeting to
consider the specific items listed below.
1. Closed Meeting:
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February 5, 2019
Page 3
A. ID 19-146 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 the City’s attorneys and provide
staff and the City’s attorneys with direction pertaining to the status, strategy, current
discussions with opposing counsel, and possible outcomes of the condemnation case styled
City of Denton v. Tommy R. Holamon and Sharlet Y. Holamon, Cause No. PR-2018-00005,
currently pending in the Probate Court of Denton County, Texas regarding the acquisition of
real property interests generally located in the 3400 block of south Bonnie Brae Street, City
of Denton, Texas; 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 potential litigation. (Bonnie
Brae Widening and Improvements project - Parcel 42 - Holamon & Hickory Creek Sanitary
Sewer Interceptor project - Phase II - Holamon)
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
There were no proclamations or presentations.
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 19-158 Matt Farmer regarding the development of Cole Ranch/Hunter Ranch and the
environmental impact.
Matt Farmer, 2042 Scripture Street, spoke regarding a regulatory floodway and hazard area in the
proposed Cole Ranch/Hunter Ranch developments. Armintor asked for a link to the FEMA map
and a staff report with a transposition of the Cole Ranch/Hunter Ranch.
2. ID 19-177 Rena Hardeman regarding proposed Municipal Management District.
Ms. Hardeman was not present.
3. ID 19-204 Ed Soph regarding City Council action on disclosure and reverse setbacks.
City of Denton City Council Minutes
February 5, 2019
Page 4
Ed Soph, 1620 Victoria Drive, spoke regarding gas well sites and setbacks in new developments.
Armintor asked how he felt about having schools notify parents and students of close proximity to
gas well sites.
4. ID 19-282 Diana Leggett regarding SUPs and SROs.
Diana Leggett, 1019 Aileen Street, spoke regarding Denton Development Code regarding SUPs
and SROs. Armintor asked if she was aware of the violation under the Fair Housing Act.
C. Additional Citizen Reports.
George Ferrie, 2932 Stockton Street, spoke in support of the LGBQT community (Carrollton just
passed a policy re anti-bullying, etc. and they were asking for inclusive policies.
Carol Soph, 1620 Victoria Street, spoke regarding the Chairy Orchard at the end of her street.
4.CONSENT AGENDA
Council Member Briggs motioned, Mayor Pro Tem Ryan seconded to adopt the Consent Agenda
and accompanying ordinances and resolutions. On roll call vote, Council Member Hudspeth "aye",
Council Member Briggs "aye", Council Member Duff "aye", Mayor Pro Tem Ryan "aye", Council
Member Armintor "aye", Council Member Meltzer "aye", and Mayor Watts "aye". Motion carried
unanimously.
Ordinance No. 19-041
A. ID 19-041 Consider adoption of a resolution adopting a policy informing Planning & Zoning
Commission interactions with developers or parties/entities interested beyond that of the
public at large while a matter is on the Planning & Zoning Commission agenda due to a tie-
vote or subject to a motion for future reconsideration, and a voluntary disclosure of meetings
on any pending development case; and providing an effective date. The Planning and Zoning
Commission recommends approval (7-0).
Ordinance No. 19-115
B. ID 19-115 Consider adoption of an ordinance ordering an election to be held in the City of
Denton, Texas, on May 4, 2019 and, if a runoff election is required said runoff election is to
be held on June 8, 2019, for the purpose of electing Council Members to Districts 1, 2, 3 and
4 of the City Council of the City of Denton, Texas; prescribing the time and manner of the
conduct of the election to be in accordance with an agreement with the Election
Administrator of Denton County; providing a severability clause; providing an open
meetings clause; and providing an effective date.
Ordinance No. 19-142
C. ID 19-142 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract with Rush Truck
Center of Texas, LP, for Peterbilt repair services; which is the sole provider of these services
in accordance with Texas Local Government Code 252.022, which provides that
City of Denton City Council Minutes
February 5, 2019
Page 5
procurement of commodities and services that are available from one source are exempt from
competitive bidding and if over $50,000 shall be awarded by the governing body; and
providing an effective date (File 6951 - awarded to Rush Truck Center of Texas, LP, in the
five (5) year not-to-exceed amount of $450,000). The Public Utilities Board recommends
approval (5-0).
Ordinance No. 19-144
D. ID 19-144 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract through the
Department of Information Resources (DIR) Cooperative Purchasing Network Contract
Number DIR-SDD-2502 with Granicus, LLC, for the supply of agenda management
software; providing for the expenditure of funds therefor; and providing an effective date
(File 6928 - awarded to Granicus, LLC, in the three (3) year not-to-exceed amount of
$95,524.73).
Ordinance No. 19-149
E. ID 19-149 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract with N. Harris
Computer Corporation, for the purchase of Harris Public Utility Billing System, software
maintenance, continued vendor support and associated software modules which is the sole
provider of this software in accordance with Texas Local Government Code Chapter
252.022, which provides that procurement of commodities and services that are available
from one source are exempt from competitive bidding; and if over $50,000 shall be awarded
by the governing body; and providing an effective date (File 6952 - awarded to N. Harris
Computer Corporation in the three (3) year not-to-exceed amount of $775,526.65).
Resolution No. 19-150
F. ID 19-150 Consider approval of a resolution by the City of Denton authorizing the City
Manager, or his designee, to accept the 2018 UASI - Denton - Fire EMS Rescue Task Force
Grant (Grant No. 3690801) in the amount of $100,000 from the State of Texas, Office of the
Governor, through a grant from the US Department of Homeland Security for the period of
September 1, 2018 through August 31, 2019; and providing an effective date.
Resolution No. 19-151
G. ID 19-151 Consider approval of a resolution by the City of Denton authorizing the City
Manager, or his designee, to accept the 2018 UASI - City of Denton - SWAT Equipment
Grant (Grant No. 3692101) in the amount of $26,000 from the State of Texas, Office of the
Governor, through a grant from the US Department of Homeland Security for the period of
September 1, 2018 through August 31, 2019; and providing an effective date.
Resolution No. 19-152
H. ID 19-152 Consider approval of a resolution by the City of Denton authorizing the City
Manager, or his designee, to accept the 2018 SHSP - Denton - SWAT Equipment
Enhancement (Grant No. 3324402) in the amount of $24,000 from the State of Texas, Office
of the Governor, through a grant from the US Department of Homeland Security for the
period of October 1, 2018 through September 30, 2019; and providing an effective date.
City of Denton City Council Minutes
February 5, 2019
Page 6
Ordinance No. 19-157
I. ID 19-157 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager, or his designee, to execute a contract
through the Buy Board Cooperative Purchasing Network Contract Number 498-15 for the
purchase of the Palo Alto Firewall software and continued vendor support; providing for the
expenditure of funds therefor; and providing an effective date. (File 6962 - awarded to Solid
Border, Inc., in the three (3) year not-to-exceed amount of $847,935).
Ordinance No. 19-160
J. ID 19-160 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager, or his designee, to execute a contract
through the State of Texas Smart Buy Program Contract Number 680-A1 for the purchase of
ammunition for the City of Denton Police Department; providing for the expenditure of funds
therefor; and providing an effective date (File 6966 - awarded to Precision/Delta
Corporation, in the five (5) year not-to-exceed amount of $380,000).
Ordinance No. 19-176
K. ID 19-176 Consider adoption of an ordinance of the City of Denton approving and
authorizing the City Manager or his designee to execute an Interlocal Cooperation
Agreement between the City of Denton and Denton County for Ambulance Services; and
declaring an effective date.
Ordinance No. 19-182
L. ID 19-182 Consider adoption of an ordinance of the City of Denton approving and
authorizing the City Manager or his designee to execute an Interlocal Cooperation
Agreement between the City of Denton and Denton County for Fire Protection Services; and
declaring an effective date.
Ordinance No. 19-183
M. ID 19-183 Consider adoption of an ordinance of the City of Denton, Texas appointing Holly
Fox as Presiding Judge for the City of Denton Municipal Court of Record; establishing a
term of office for the Presiding Judge beginning on the 11th day of February, 2019, and
extending through 10th day of February, 2021; authorizing the Mayor to execute an
employment agreement for term of office; ratifying terms of said agreement; and declaring
an effective date.
Ordinance No. 19-184
N. ID 19-184 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract through the
Department of Information Resources (DIR) Cooperative Purchasing Network Contract
Number DIR-TSO-3755 with ImageNet Consulting, LLC, for the purchase of Laserfiche
Document Imaging Application software maintenance, additional licensing for Laserfiche
Forms Package, and software enhancements; providing for the expenditure of funds therefor;
and providing an effective date (File 6956 - awarded to ImageNet Consulting, LLC, in the
three (3) year not-to-exceed amount of $286,425.98).
City of Denton City Council Minutes
February 5, 2019
Page 7
Ordinance No. 19-272
O. ID 19-272 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract for the
development of an Urban Forest Master Plan for the City of Denton; providing for the
expenditure of funds therefor; and providing an effective date (RFP 6949 - awarded to Davey
Resource Group, Inc., in the not-to-exceed amount of $71,741).
Resolution No. 19-290
P. ID 19-290 Consider approval of a resolution of the City of Denton, Texas authorizing the
Mayor to sign a letter to members of Congress requesting their commitment to address
infrastructure funding during the 116th Congress; and providing an effective date.
5. PUBLIC HEARINGS
A. Z18-0023b Hold a public hearing and consider adoption of an ordinance of the City of
Denton, Texas, regarding a change in the zoning district and use classification from Regional
Center Commercial Downtown (RCC-D) district to Employment Center Industrial (EC-I)
district with overlay conditions on approximately 8.7 acres of land, and a change in the
zoning district and use classification from Regional Center Commercial Neighborhood
(RCC-N) district to Employment Center Industrial (EC-I) district with overlay conditions on
approximately 7.7 acres of land, all of which is generally located at the northwest corner of
Worthington Drive and Schuyler Street in 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 for severability and
establishing an effective date. The Planning and Zoning Commission voted 7-0 to approve
the request. (Z18-0023, Worthington Truckport, Julie Wyatt)
Julie Wyatt, Development Services, presented the item. The request was for a rezoning from
Regional Center Commercial Neighborhood to Employment Center Industrial. The Planning &
Zoning Commission recommended approval with the following condition – Electric Substations
and Switch Stations were not a permitted use and a Type C Buffer was required between any new
private improvements and the west property boundary. A Type C Buffer was a fifteen (15) foot planted
strip that included a combination of six (6) evergreen and deciduous trees and twenty (20) shrubs per
one hundred (100) linear feet. Staff recommended approval of this request.
The Mayor opened the public hearing.
Aimee Bissett, 212 S. Elm Street, representing the applicant, spoke in support.
Dan Hite, 3800 Hampton Road, spoke in opposition and asked that Council protect the
neighborhood regarding noise concerns.
Willie Hudspeth, 623 Newton, expressed concerns that the homeowners be protected.
Rebecca Hite submitted a comment card in opposition.
The Mayor closed the public hearing.
Council Member Briggs motioned, Council Member Meltzer seconded to postpone the item.
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February 5, 2019
Page 8
Council Member Briggs withdrew the motion to postpone.
Council Member Meltzer motioned, Council Member Briggs seconded to adopt the ordinance with
the following conditions – Electric Substations and Switch Stations, Craft Alcohol Production, and
Kennels were not permitted uses; a Type C Buffer was required between any new private
improvements and the west property boundary. A Type C Buffer was a fifteen (15) foot planted
strip that included a combination of six (6) evergreen and deciduous trees and twenty (20) shrubs
per one hundred (100) linear feet; and engines on parked tractor trucks may not be allowed to idle
for more than one hour at a time. On roll call vote, Council Member Hudspeth "aye", Council
Member Briggs "aye", Council Member Duff "aye", Mayor Pro Tem Ryan "aye", Council Member
Meltzer "aye", and Mayor Watts "aye". Council Member Armintor "nay". Motion carried (6-1).
6.ITEMS FOR INDIVIDUAL CONSIDERATION
Ordinance No. 19-111
B. ID 19-111 Consider adoption of an ordinance of the City of Denton, Texas authorizing the
expenditure of funds for the payment of wholesale transmission charges in the total amount
of $4,655,183.48 to Cross Texas Transmission, LLC ($269,987.38), Electric Transmission
Texas, LLC ($1,103,574.81), Lone Star Transmission, LLC ($333,779.25), Lower Colorado
River Authority ($1,597,852.36), Sharyland Utilities, LP ($943,784.53), Wind Energy
Transmission Texas, LLC ($406,205.15); and, providing an effective date. The Public
Utilities Board recommends approval (5-0).
George Morrow, General Manager of DME, presented the item. Approval of this item would
authorize the issuance of purchase orders to each of the entities to reimburse them for DME’s share
of their transmission costs, less the amount that each entity owes DME for DME’s transmission
costs. These payments were mandated by the Texas Public Utility Regulatory Act and the Public
Utility Commission of Texas.
Mayor Pro Tem Ryan motioned, Council Member Meltzer seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member
Duff "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council Member
Meltzer "aye", and Mayor Watts "aye". Motion carried unanimously.
Ordinance No. 19-148
C. ID 19-148 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a public works contract with
Jagoe-Public Company for the construction of the Hickory Creek Road Widening Project for
the City of Denton; providing for the expenditure of funds therefor; and providing an
effective date (IFB 6903 - awarded to Jagoe-Public Company, in the not-to-exceed amount
of $5,320,870).
Todd Estes, City Engineer, presented the item. This part of the project included 4,000 linear feet
of storm drain (18-48 inches in diameter). The drainage system that would be constructed was
designed to provide capacity for the 100-year storm event. A new bridge would be constructed
next to the existing bridge over Fletcher Branch to carry the eastbound traffic. This covered
Hickory Creek Road from Teasley Lane to Riverpass Drive.
City of Denton City Council Minutes
February 5, 2019
Page 9
Emily Meisner, 1700 Cordero Court, thanked the Council for working with the County on this
project.
Council Member Hudspeth motioned, Mayor Pro Tem Ryan seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member
Duff "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council Member
Meltzer "aye", and Mayor Watts "aye". Motion carried unanimously.
Ordinance No. 19-165
D. ID 19-165 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a public works contract with
Quality Excavation, Ltd., for the construction of the Hinkle and Windsor Paving and
Drainage Project (Magnolia Phase II) for the City of Denton; providing for the expenditure
of funds therefor; and providing an effective date (IFB 6902 - awarded to Quality Excavation,
Ltd., in the not-to-exceed amount of $6,227,259). The Public Utilities Board recommends
approval (4-0).
Todd Estes, City Engineer, presented the item. The project would improve storm water drainage
conditions and prevent flooding on Hinkle Drive and in the adjacent neighborhoods between West
Windsor Drive to the north and University Drive to the south.
Council Member Hudspeth 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", Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council
Member Meltzer "aye", and Mayor Watts "aye". Motion carried unanimously.
E. ID 19-181 Consider nominations/appointments to the City’s Boards, Commissions, and
Committees: Animal Shelter Advisory Committee, Health & Building Standards
Commission, Library Board, Traffic Safety Commission, and Committee on Persons with
Disabilities.
Council Member Briggs motioned, Mayor Pro Tem Ryan seconded to approve the nominations of
Randi Weinberg to the Animal Shelter Advisory Committee and Sonya Redwine to the Committee
on Persons with Disabilities. On roll call vote, Council Member Hudspeth "aye", Council Member
Briggs "aye", Council Member Duff “aye”, Mayor Pro Tem Ryan "aye", Council Member
Armintor "aye", Council Member Meltzer "aye", and Mayor Watts "aye". Motion carried
unanimously.
5. PUBLIC HEARINGS
B. Z18-0017c Hold a public hearing and consider adoption of an ordinance of the City of
Denton, Texas, assigning an initial zoning classification and use designation of
Neighborhood Residential 4 (NR-4) on approximately 86 acres of land, and rezoning
approximately 6 acres of land from the existing Neighborhood Residential 2 (NR-2) zoning
classification and use designation to a Neighborhood Residential 4 (NR-4) zoning
classification and use designation; all generally located between Creekdale Drive and
Hickory Creek Road, east of the railroad tracks in the city of Denton, Denton County, Texas;
City of Denton City Council Minutes
February 5, 2019
Page 10
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 for severability and
establishing an effective date. (Z18-0017, Lakeside Place, Cindy Jackson).
Cindy Jackson, Development Services, presented the item. The request was for an initial zoning
designation of Neighborhood Residential 4 (NR-4) on approximately 86 acres of land and a request
to rezone approximately six acres of land from Neighborhood Residential 2 (NR-2) to
Neighborhood Residential 4 (NR-4) to facilitate the development a single family residential
development.
The Mayor opened the public hearing.
Abra Nusser, Southlake, representing the applicant, spoke in support.
The Mayor closed the public hearing.
Council discussed placing a condition on the platting that the first home couldn’t be built until the
construction on Hickory Creek Road was completed.
Council Member Hudspeth motioned, Mayor Pro Tem Ryan seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Duff "aye", and Mayor Pro Tem
Ryan "aye". Council Member Briggs "nay", Council Member Armintor "nay", Council Member
Meltzer "nay", and Mayor Watts "nay". Motion failed (3-4).
C. S18-0008g Hold a public hearing and consider adoption of an ordinance of the City of
Denton, Texas, approving a Specific Use Permit to allow for a multi-family residential use
as part of a mixed-use development on an approximately 31-acre site, generally located on
the north side of Windsor Drive, east of the I-35 N Frontage Road, in the City of Denton,
Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for
violations thereof; providing for severability; and establishing an effective date. (S18-0008,
Windsor Drive Apartments). THIS PUBLIC HEARING HAS BEEN CONTINUED FROM
THE JANUARY 15, 2019 CITY COUNCIL MEETING.
Hayley Zagurski, Development Services, presented the item. The request was for a Specific Use
Permit (SUP) to permit a multi-family use on approximately 31 acres of property generally located
on the north side of Windsor Drive east of Interstate 35 north. The subject property was zoned
Neighborhood Residential Mixed Use (NRMU) District, which permitted multi-family
developments with an SUP and Limitation (4) = Multi-family is permitted only: with a Specific
Use Permit; or as part of a Mixed-Use Development; or as part of a Master Plan Development,
Existing; or if the development received zoning approval allowing multi-family use within one (1)
year prior to the effective date of Ordinance No. 2005-224; or if allowed by a City Council
approved neighborhood (small area) plan. There were two existing gas wells in operation on the
site – Payne #1 and Payne #2 and a 250’ reverse setback was required.
The Planning and Zoning Commission recommended approval \[4-3\] of the request with staff’s
conditions, which were:
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February 5, 2019
Page 11
1. The City Council recognizes that driveway access locations from state highways must be
approved by the Texas Department of Transportation (“TxDOT”), and that alterations in
the configuration of I-35 are currently in planning. Any driveway access locations from the
northbound I-35 frontage road which must be altered in response to changing TxDOT
requirements during the permitting process may be administratively approved by City staff,
provided that such alterations comply with all DDC and criteria manual requirements, and
that all remaining elements of the approved site plan are satisfied.
2. Landscaping in the attached site plan reflects an intent to comply with the DDC
requirements for parking, street trees, minimum landscape and canopy areas, and
compatibility buffers, with administrative approval of alternative buffer elements permitted
in accordance with DDC 35.13.8. Minor alterations to the depicted locations of individual
plantings may be approved by City staff, provided that the final landscaping, as planted,
complies with the attached site plan in terms of buffer and open space locations, as well as
all elements of the DDC.
3. The Agreement entered into and executed by CL Ventures LLC and Sage Natural
Resources, LLC, which sets forth the 250 foot reverse setbacks for the multi-family
development from the two wells as shown on the attached site plan, must be filed in the
records of Denton County prior to approval of a plat for the subject property, and a note on
the plat shall reference the Agreement and setbacks.
4. Notwithstanding the limited administrative approvals authorized in conditions 1 and 2, the
City reserves the right to require approval by ordinance of any amendments to the SUP,
the attached site plan, and the elements described in the Site Plan Requirements (Section 3
of ordinance), including those referenced in conditions 1 and 2.
The Mayor opened the public hearing.
Lee Allison, 2415 N. Elm Street, representing the applicant, spoke in support of the item.
The Mayor closed the public hearing.
Council Member Armintor motioned, Council Member Briggs seconded to deny the Specific Use
Permit. On roll call vote, Council Member Briggs "aye", Council Member Armintor "aye", Council
Member Meltzer "aye", and Mayor Watts "aye". Council Member Hudspeth "nay", Council
Member Duff "nay", and Mayor Pro Tem Ryan "nay". Motion carried (4-3).
Ordinance No. 19-159
D. ID 19-159 Hold a public hearing and consider adoption of an ordinance of the City of Denton,
Texas designating a certain area within the city limits of Denton as Tyson Sales and
Distribution Reinvestment Zone No. XIV for commercial/industrial tax abatement;
establishing the boundaries of such zone; making findings required in accordance with
Chapters 311 and 312 of the Texas Tax Code; ordaining other matters relating thereto;
providing a severability clause; providing for repeal; and providing an effective date.
Caroline Booth, Director of Economic Development, presented this item and the tax abatement
item. Booth stated that under Chapter 312 of the Texas Tax Code, businesses that received tax
City of Denton City Council Minutes
February 5, 2019
Page 12
abatements must be located within a reinvestment zone, which was a designated area where
economic development was encouraged. Tyson Sales and Distribution plans to build a 350,000+
square foot, highly automated refrigerated distribution center on an approximately 50-acre site
located at the southeast corner of Jim Christal Road and Western Boulevard. The adoption of the
ordinance establishing the reinvestment zone would allow Council to consider a tax abatement
agreement with Tyson Sales and Distribution.
Booth stated that Tyson had requested an incentive to offset development costs and to enable
application for a Denton County tax abatement and a Texas Enterprise Zone Program grant. Tyson
met the following priority considerations under the 2018 Council-adopted economic development
incentive policy: business and community investment, expanding the tax base, increasing jobs
with wages above the Denton County average, and generating significant new customers for
municipal utilities. The Tax Abatement Agreement contained the following safeguards for the
City: operations must begin by Dec. 31, 2021; set minimum thresholds for appraised value of
business personal property, number of jobs, and weighted average hourly wage; capped the total
amount of the tax abatement; and required submission of an annual certificate of compliance.
The Mayor opened the public hearing.
The following individuals spoke during the public hearing:
George Ferrie, 2932 Stockton, stated that the carbon footprint of Tyson would be large.
Jennifer Lane, 1526 Willowwood, spoke in opposition.
Christoper Wilkins, 708 IOOF Street, spoke in opposition.
Comment cards were submitted by:
Sidney Hartz, 922 Fannin Street – opposition
Dacen Kinser, 3504 Shadow Trail - opposition
The Mayor closed the public hearing.
The Mayor called for comments on Item 6A.
Amina Abiola, 1702 N. Ruddell Street, spoke in opposition.
Dewey Marshall, 1215 Scripture Street, spoke in opposition.
Marty Rivers, 120 Industrial, spoke in support.
Comment cards were submitted by:
Eric Clark, 3913 Andrew Avenue – support
Matthew Morgan, 1213 Linden Drive – support
Persephone Abrahamson, 722 Fannin Street – support
Kyra Solis, 4505 Shy Creek Lane – opposition
Dacen Kinser, 3504 Shadow Trail – opposition
Sidney Hartz, 922 Fannin Street – opposition
Brandon Beach, 4505 Shy Creek Lane – opposition
City of Denton City Council Minutes
February 5, 2019
Page 13
Council discussion included energy rider, wages of employees, Tyson business practices,
establishment of the Reinvestment Zone.
Council Member Hudspeth motioned, Council Member Duff seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Duff "aye", Mayor Pro Tem
Ryan "aye", Council Member Meltzer "aye", and Mayor Watts "aye". Council Member Briggs
"nay", and Council Member Armintor "nay". Motion carried (5-2).
6.ITEMS FOR INDIVIDUAL CONSIDERATION
Ordinance No. 19-161
A. ID 19-161 Consider adoption of an ordinance authorizing the Mayor to execute a tax
abatement agreement with Tyson Sales and Distribution, Inc. setting forth all the required
terms of the tax abatement agreement in accordance with the terms of Chapter 312 of the
Texas Tax Code; setting forth the various conditions to Tyson Sales and Distribution, Inc.
receiving the tax abatement; providing for a severability clause; and providing an effective
date.
Council Member Hudspeth motioned, Council Member Duff seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Duff "aye", Mayor Pro Tem
Ryan "aye", and Mayor Watts "aye". Council Member Briggs "nay", Council Member Armintor
"nay", and Council Member Meltzer "nay". Motion carried (4-3).
F. ID 19-116 Consider approval of a resolution authorizing Election Day polling locations for
the City of Denton City Council Election to be held on May 4, 2019; and providing an
effective date.
Rachel Wood, Chief of Staff and Interim City Secretary, presented the item. On January 7, 2019
Council provided staff with direction on polling locations for the May 4, 2019 City Council
election. At that time, consensus of the Council was to proceed with the eight locations that were
used for the 2018 Council election. The DISD has confirmed that Pecan Creek Elementary School
and LA Nelson Elementary School can be used as Election Day polling locations. However, Ryan
High School is not available due to multiple events being held at the school. Staff has researched
alternative locations in the general vicinity of Ryan High School and determined that the DISD
Annex, located at 230 N. Mayhill Road is the most viable option. Exact precincts for each polling
location will be determined after consultation with the Denton County Elections Administrator.
Council discussion included adding an additional location on the UNT campus or close to the
center of District 3.
Council Member Armintor recused herself.
The following individuals spoke regarding this item:
Alfred Sanchez, 711 Jackson Street, spoke in support of an additional polling location at UNT
Matt Farmer, 2042 Scripture Street, spoke in support of an additional polling location at UNT
City of Denton City Council Minutes
February 5, 2019
Page 14
Christopher Wilkins, 708 IOOF Street, spoke in support of an additional polling location at UNT
Jennifer Lane, 1526 Willowwood, spoke in support of an additional polling location at UNT
David Urbanek, 714 W. Hickory, spoke in support of an additional polling location at UNT
George Ferrie, 2932 Stockton Street, spoke in support of an additional polling location at UNT
and in District 1
Emily Meisner, 1700 Cordero Court, spoke in support of any additional polling location
Comment cards were submitted by:
Mary Infante, 321 Cross Timbers Drive – support
Jordan Villarreal, 707 Bernard Street – support
Council Member Meltzer motioned, Council Member Briggs seconded to postpone the item to
March 5. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye",
Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council Member Meltzer "aye",
Mayor Watts "aye", and Council Member Duff "nay". Motion carried (6-1).
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.
Council Member Hudspeth requested information on if the City had mobile home building
standards criteria. If current criteria did not exist, he requested that staff develop and ensure there
were requirements for adequate parking.
Council Member Hudspeth asked staff to coordinate with the DISD to explore community parking
options at the Elm Street facility when it is not in use for DISD purposes.
Council Member Briggs requested a staff report on the criteria used to determine when traffic
signals move to flashing red/yellow lights during the evening and early morning hours –
particularly University and Malone.’
Council Member Briggs asked if voting information could be posted on the Civic Center’s
electronic sign and provide voter education and notification about the voting process to the
Committee on Citizen Engagement.
City of Denton City Council Minutes
February 5, 2019
Page 15
Council Member Briggs asked that the gas well ordinance be brought back to the full Council for
conversation and include a survey of the active and inactive gas wells and a policy discussion on
the City’s ability to determine setback distances.
Council Member Briggs asked about changing the weighted average used for economic
development incentives.
Council Member Armintor asked for a work session item on sobering centers following the
February 1 Informal Staff Report and ensure Chief Dixon was invited to participate.
Mayor Watts asked for a work session item on a policy discussion on setbacks for gas wells and a
survey on plugged gas wells.
Mayor Watts asked about TWU being left out of polling location discussions.
With no further business, the meeting was adjourned at 12:43 a.m.
____________________________________
CHRIS WATTS
MAYOR
CITY OF DENTON, TEXAS
____________________________________
JANE RICHARDSON
ASSISTANT CITY SECRETARY
CITY OF DENTON, TEXAS
CITY OF DENTON CITY COUNCIL MINUTES
February 12, 2019
After determining that a quorum was present, the City Council of the City of Denton, Texas
convened in a Work Session on Tuesday, February 12, 2019 at 11:30 a.m. in the Council Work
Session Room at City Hall, 215 E. McKinney Street, Denton, Texas.
WORK SESSION
1. Citizen Comments on Consent Agenda Items
There were no citizen comments on Consent Agenda items.
2. Requests for clarification of agenda items listed on the agenda for February 12, 2019.
Council Member Armintor requested the Consent Agenda Item J be pulled for individual
consideration.
3. Work Session Reports
A. ID 19-209 Receive a report, hold a discussion, and give staff direction regarding a mid-year
update on the Denton Chamber of Commerce, the Denton Convention and Visitors Bureau,
and the Denton Chamber of Commerce’s Office of Economic Development.
Caroline Booth, Director of Economic Development, introduced Eric Clark, Chairman of the
Denton Chamber of Commerce. He provided an overview of the Chamber. Annual Budget was
$481,562 from memberships and services. Activities included ribbon cuttings and ground
breakings; events and programs; the Women in Commerce group; and Leadership Denton.
Hank Dickenson provided an overview of the Convention and Visitors Board. Annual Budget was
$1.3 million from HOT funds; $132,500 from publications, co-ops, and events; and $201,750 from
Welcome Center sales and sponsorships. Activities included sales to meetings and convention
groups; marketing activities, including web and social media; operation of the Discover Denton
Welcome Center and DentonRadio.com.
Marty Rivers provided an overview of the Office of Economic Development. Annual Budget was
$238,829 from the City of Denton contract and $75,006 from investors in the Economic
Development Partnership. Activities included business recruitment; marketing activities,
including web and social media; and management of the Economic Development Partnership
Investor Program. Rivers asked for a joint meeting of the EDP Board and the City Council.
B. DCA18-0009 Receive a report, hold a discussion, and provide staff direction on the Denton
Development Code Update and Draft Zoning Map.
Scott McDonald, Development Services, presented the item. He reviewed key changes in
Subchapter 1 – General Standards, Subchapter 2 – Administration and Procedures, Subchapter 3 -
Zoning Districts, Subchapter 4: Overlay & Historic District, Subchapter 5: Use Regulations,
Subchapter 6: Development Standards, Subchapter 7: Subdivisions, and Subchapter 8: Definitions.
City of Denton City Council Minutes
February 12, 2019
Page 2
C. ID 19-289 Receive a report, hold a discussion, and give staff direction regarding the Solid
Waste department’s residential and commercial recycling operations.
Ethan Cox, Director of Solid Waste, presented the item. He stated the objective was to reduce per
capita waste disposal. He provided the Committee on the Environment recommendations –
Implement compliance and enforcement processes and replace recycling containers in parks and
public areas to reduce contamination. Increase participation by evaluating implementation of a
mandatory recycling ordinance for multifamily and commercial customers. The COE also
recommended improving education and outreach by hands on education for schools, improved
signage on containers, targeted education on plastic bags and plastics accepted by the program,
and proactively “right size” under/over utilized containers.
D. ID 19-312 Receive a report, hold a discussion, and give staff direction regarding an ordinance
governing the use of the City of Denton’s Right of Ways for construction purposes and the
processes and procedures implementing it.
Todd Estes, City Engineer, presented the item. He stated that staff had been working to craft a
comprehensive right-of-way use ordinance. In the process, two primary categories of use were
identified. The first category was construction activities within the right-of-way, and second was
the use of the right-of-way. Use of the right-of- way was a more complex issue than construction
and would be covered in separate work sessions after adoption of the construction portion of the
right-of-way ordinance. Staff proposed to reach out to the development community through
various private developments and design professional organizations enabling those external
stakeholders to provide feedback on the ordinance. Feedback would also be solicited from internal
stakeholders (i.e., water department, Denton Municipal Electric, etc.) and external franchise
utilities. Staff recommended moving forward with a right-of-way ordinance for construction
purposes only and related processes and procedures.
Consensus of Council was to move forward with the right-of-way use ordinance for construction
purposes.
Following the completion of the Work Session, the City Council convened in a Closed Meeting to
consider the item listed below.
1. Closed Meeting.
A. ID 19-317 Consultation with Attorneys - Under Texas Government Code Section 551.071;
Deliberations regarding Personnel Matters - Under Texas Government Code Section
551.074.
Consult with the City’s attorneys on legal considerations, status and strategy, in advance of
a proposed mediation before the Equal Employment Opportunity Commission, relating to
the pending charge of former employee Shandrian Jarvis and any potential settlement, and
to receive legal advice regarding same, where the City’s Attorneys’ duties to the
governmental body under the Texas Disciplinary Rules of Professional Conduct of the State
Bar of Texas clearly conflict with Chapter 551 of the Texas Open Meetings Act. This closed
session also concerns deliberations involving a public officer or employee, under
City of Denton City Council Minutes
February 12, 2019
Page 3
circumstances allowing closed session under section 551.074 of the Texas Open Meetings
Act.
Following the completion of the Closed Meeting, the City Council convened in an Open Meeting
to consider the following items.
1.CONSENT AGENDA
Council Member Briggs motioned, Council Member Hudspeth seconded to approve the Consent
Agenda and accompanying ordinances and resolutions with the exception of Item J. On roll call
vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff
“aye”, Mayor Pro Tem Ryan “aye”, Council Member Armintor "aye", Council Member Meltzer
"aye", and Mayor Watts "aye". Motion carried (7-0).
Ordinance No. 19-034
A. ID 19-034 Consider adoption of an ordinance of the City of Denton, approving a City
sponsorship in an amount not to exceed $330 of in-kind services for the Tails and Trails to
be held on Saturday, March 30, 2019, from 9:30 a.m. to 11:00 a.m., at the North Lakes Park;
and providing an effective date.
Resolution No. 19-227
B. ID 19-227 Consider approval of a Resolution of the City of Denton, Texas evidencing
support for the proposed new construction of Riva Denton apartments in Denton to provide
affordable and market rate rental housing; and providing for an effective date.
Ordinance No. 19-265
C. ID 19-265 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager, or his designee, to execute a contract
through the Buy Board Cooperative Purchasing Network Contract Number 571-18 for the
acquisition one (1) Pierce Enforcer Heavy Rescue Light and Air Truck; providing for the
expenditure of funds therefor; and providing an effective date (File 6995 - awarded to
Siddons-Martin Emergency Group, LLC, in the amount of $702,960.51)
Resolution No. 19-287
D. ID 19-287 Consider approval of a resolution of the City of Denton, Texas in support of
proposed amendments to Chapter 460 of the Texas Transportation Code related to
governance of Denton County Transportation Authority (DCTA); supporting legislation
adopting said amendments; authorizing the Mayor, City Manager and the City Manager’s
designee to represent and communicate the City’s position; and authorizing the Mayor and
City Manager to sign all letters, petitions, and/or other documents on behalf of the City to
promote the City’s position.
Ordinance No. 19-297
E. ID 19-297 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a contract through the
Department of Information Resources (DIR) Cooperative Purchasing Network Contract
City of Denton City Council Minutes
February 12, 2019
Page 4
Number DIR-TSO-3965 with Johnston Technical Services, Inc., for the Motorola radio tower
modifications; providing for the expenditure of funds therefor; and providing an effective
date (File 6983 - awarded to Johnston Technical Services, Inc., in the not-to-exceed amount
of $65,012.80).
Ordinance No. 19-314
F. ID 19-314 Consider adoption of an ordinance of the City of Denton, Texas amending the
Fiscal Year 2018-19 Budget and Annual Program of Services of the City of Denton to allow
for increases to the Roadway Impact Fee Fund of $4,250,000 for the purpose of funding
roadway improvements; declaring a municipal purpose; providing a severability clause;
providing an open meetings clause; and providing for an effective date.
Ordinance No. 19-325
G. ID 19-325 Consider adoption of an ordinance authorizing the settlement of litigation styled
City of Denton, Texas v. Tommy R. Holamon and Sharlet Y. Holamon, Cause No. PR-2018-
00005, currently pending in the Probate Court of Denton County, Texas, regarding
the acquisition of fee and easement interests required for the Bonnie Brae Widening and
Improvements project and the Hickory Creek Sanitary Sewer Interceptor - Phase II project
in the total settlement amount of One Hundred Fifty Thousand Dollars and No Cents
($150,000.00); 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.
Ordinance No. 19-334
H. ID 19-334 Consider adoption of an ordinance of the City Council of the City of Denton,
Texas, a Texas home-rule municipal corporation, authorizing the City Manager to execute
an agreement with SCM Fireside, LLC, a Texas Limited Liability Company, for the City’s
participation in the oversizing of sewer mains for the City of Denton; providing for the
expenditure of funds therefor; and providing an effective date (awarded to SCM Fireside,
LLC in the not to exceed amount of $68,786).
Ordinance 19-351
I. ID 19-351 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a Professional Services
Agreement with HDR Engineering, Inc., for the Hickory Creek Road Realignment street
improvement project as set forth in the agreement; providing for the expenditure of funds
therefor; and providing an effective date (RFQ 6590-049 - Professional Services Agreement
for design services awarded to HDR Engineering, Inc., in the not-to-exceed amount of
$3,342,509).
Item J which was pulled from the Consent Agenda was considered.
Ordinance No. 19-367
J. ID 19-367 Consider adoption of an ordinance of the City of Denton authorizing the City
Manager to execute and deliver a First Amendment to Lease of City Property between the
City of Denton City Council Minutes
February 12, 2019
Page 5
City of Denton and VOW 221 E HICKORY, LLC, correcting the Lessee name and
confirming the remaining terms of the Agreement; and providing an effective date.
Council Member Hudspeth motioned, Mayor Pro Tem Ryan seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Duff “aye”, Mayor Pro Tem
Ryan “aye”, Council Member Meltzer "aye", Mayor Watts "aye", and Council Member Briggs
"nay", and Council Member Armintor "nay". Motion carried (5-2).
2.ITEMS FOR INDIVIDUAL CONSIDERATION
Resolution No. 19-028
A. ID 19-028 Consider approval of a resolution of the City of Denton, Texas, supporting
legislation to create the "Cole Ranch Improvement District No. 1 of Denton County, Texas";
and providing an effective date.
The Mayor called items A, B and D.
Bryan Langley, Deputy City Manager, presented the items. Approval of the resolutions for Items
A and B provided the City’s written consent for the legislation, but did not constitute the City’s specific
consent to the creation of the MMD – the City specifically reserves the right to consent to the MMD
and impose conditions on the district through three documents: the City Ordinance, the MMD
Operating Agreement, and the Developer Agreement. If the project continued to move forward, these
three documents would be negotiated concurrently and voted on by the Council at the same time; the
three documents all must be approved, or the district could not be created.
Comment cards for Item A and Item B was submitted by Kim McKibben, 1306 W. Hickory in
opposition.
Langley stated that Item D was for the escrow agreement, and with that the developers agreed to
pay and reimburse the City for the time, costs and expenses of staff and all of its professional
advisory and consulting fees, costs and expenses, including but not limited to legal, financial
advisor and engineering costs, incurred in connection with or related to the preparation of, and
analysis of the financial and supporting documents necessary for the execution of the consent
agreement, MMD operating agreement, developer agreement, or other necessary documents to
establish the MMDs and for the potential issuance of bonds. After execution of the agreement, a
sum of $50,000 would be delivered to the escrow agent, and additional increments of $50,000 will
be delivered when the amount on deposit was reduced to $10,000. The City would send invoices
to the escrow agent and the developers for payment. The City had no obligation to execute any
project documents, to establish the MMDs, or to issue any bonds or other indebtedness, and
nothing contained within the escrow agreement created such an obligation. The developers’
obligation to pay the City’s expenses would exist independent of whether the MMDs or bonds or
other indebtedness were approved.
Mayor Pro Tem Ryan motioned, Council Member Duff seconded to approve the resolution for
Item A. On roll call vote, Council Member Hudspeth "aye", Council Member Duff “aye”, Mayor
Pro Tem Ryan “aye”, Mayor Watts "aye", Council Member Briggs "nay", Council Member
Armintor "nay", and Council Member Meltzer "nay". Motion carried (4-3).
City of Denton City Council Minutes
February 12, 2019
Page 6
Resolution No. 19-332
B. ID 19-332 Consider approval of a resolution of the City of Denton, Texas, supporting
legislation to create the "Hunter Ranch Improvement District No. 1 of Denton County,
Texas"; and providing an effective date.
Mayor Pro Tem Ryan motioned, Council Member Duff seconded to approve the resolution for
Item B. On roll call vote, Council Member Hudspeth "aye", Council Member Duff “aye”, Mayor
Pro Tem Ryan “aye”, Mayor Watts "aye", Council Member Briggs "nay", Council Member
Armintor "nay", and Council Member Meltzer "nay". Motion carried (4-3).
Ordinance No. 19-328
D. ID 19-328 Consider adoption of an ordinance of the City Council of Denton, Texas
authorizing the Mayor to execute an escrow agreement regarding reimbursement of City
expenses related to municipal improvement districts; and providing an effective date.
Council Member Duff motioned, Mayor Pro Tem Ryan seconded to adopt the ordinance for Item
D. On roll call vote, Council Member Hudspeth "aye", Council Member Duff “aye”, Mayor Pro
Tem Ryan “aye”, Mayor Watts "aye", Council Member Briggs "nay", Council Member Armintor
"nay", and Council Member Meltzer "nay". Motion carried (4-3).
Ordinance No. 19-163
C. ID 19-163 Consider adoption of an ordinance of the City of Denton, a Texas home-rule
municipal corporation, authorizing the City Manager to execute a Professional Services
Agreement with James R. Kirkpatrick Architect, Inc., dba Kirkpatrick Architecture Studio
for architectural design services for the City of Denton Fire Station 8 to be located at 3131
Colorado Blvd., Denton, TX 76210 as set forth in the contract; providing for the expenditure
of funds therefor; and providing an effective date (RFQ 6910 - awarded to James R.
Kirkpatrick Architect, Inc., dba Kirkpatrick Architecture Studio, in the not-to exceed amount
of $410,907).
Council Member Briggs recused herself.
Kenneth Hedges, Fire Chief, provided a brief background of Fire Station 8 to be built at 3131
Colorado Blvd.
Mario Canizares, Assistant City Manager, reviewed the process for selecting the architect. Based
on qualifications, past performance and experience, Kirkpatrick Architecture Studio was selected.
Mayor Pro Tem Ryan motioned, Council Member Armintor seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Duff “aye”, Mayor Pro Tem
Ryan “aye”, Council Member Armintor "aye", Council Member Meltzer "aye", and Mayor Watts
"aye". Motion carried (6-0).
Ordinance No. 19-327
E. ID 19-327 Consider adoption of an ordinance approving a settlement agreement and release
between the City of Denton, a Texas home rule municipal corporation and American Bio
Source, LLC, a Texas limited liability company, regarding issues and disputes related to a
City of Denton City Council Minutes
February 12, 2019
Page 7
lease agreement approved under ordinance no. 2014-020 and authorizing the City Manager,
or his designee, to execute the same; approving the expenditure of funds therefor; and
declaring an effective date.
Ethan Cox, Director of Solid Waste presented the item. The initial term of the agreement expired
on December 31, 2018, and the City Council elected not to renew the agreement for an additional
term. Upon notification of non-renewal, American Bio Source requested that the City of Denton
consider extending the lease term to March 31, 2019 to allow the firm time to shut down operations
and transport their assets to the business’ new location. In exchange the firm would agree to a
settlement agreement and mutual release of claims.
Mayor Pro Tem Ryan motioned, Council Member Armintor seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Briggs “aye”, Council Member
Duff “aye”, Mayor Pro Tem Ryan “aye”, Council Member Armintor "aye", Council Member
Meltzer "aye", and Mayor Watts "aye". Motion carried (7-0).
F. ID 19-353 Consider a motion to reconsider the February 5, 2019 denial of an ordinance for
a Specific Use Permit (File ID S18-0008g) to allow for a multi-family residential use as part
of a mixed-use development on an approximately 31-acre site, generally located on the north
side of Windsor Drive, east of the I-35 N Frontage Road, in the City of Denton, Denton
County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations
thereof; providing for severability; and establishing an effective date (S18-0008g, Windsor
Drive Apartments, Hayley Zagurski).
Mayor Watts motioned to reconsider the item, Mayor Pro Tem Ryan seconded. On roll call vote,
Council Member Hudspeth "aye", Council Member Briggs “aye”, Council Member Duff “aye”,
Mayor Pro Tem Ryan “aye”, Mayor Watts "aye", Council Member Armintor "nay", and Council
Member Meltzer "nay". Motion carried (5-2).
G. ID 19-356 Consider nominations/appointments to the City’s Boards, Commissions, and
Committees: Animal Shelter Advisory Committee, Health & Building Standards
Commission, Library Board, Traffic Safety Commission, and Committee on Persons with
Disabilities.
Council Member Briggs motioned, Council Member Meltzer seconded to approve the nomination
of Jean Greenlaw to the Library Board. On roll call vote, Council Member Hudspeth "aye",
Council Member Briggs "aye", Council Member Duff “aye”, Mayor Pro Tem Ryan “aye”, Council
Member Armintor "aye", Council Member Meltzer "aye", and Mayor Watts "aye". Motion carried
(7-0).
3. 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,
City of Denton City Council Minutes
February 12, 2019
Page 8
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 asked staff to schedule a joint meeting with the Economic Development
Partnership Board.
Council Member Briggs asked staff to consider extending the yellow light pilot for red light
cameras to another intersection to see if it has a similar effect and provide accident data prior to
and after the launch of the April 2018 pilot at the intersection of Carroll and Oak.
Council Member Meltzer asked for a report on the goals and key principles of the Denton Plan
2030.
Council Member Armintor asked for a discussion on changing the rules of procedure and allowing
residents to speak more than once during a public hearing.
Council Member Armintor asked for information on citizenship requirements for committees.
Mayor Pro Tem Ryan asked for a report from Legal regarding the current reconsideration process,
including an interpretation of the “next scheduled meeting” and if it included Monday luncheons
and any potential impacts from the 72 hour posting requirement.
With no further business, the meeting was adjourned at 6:10 p.m.
____________________________________
CHRIS WATTS
MAYOR
CITY OF DENTON, TEXAS
____________________________________
JANE RICHARDSON
ASSISTANT 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 19-558,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDenton,TexasamendingtheFiscalYear2018-2019Budget
andAnnualProgramofServicesoftheCityofDentontoallowforadjustmentsto(A)theAnimalDonation
Fundofeightythousanddollars($80,000)forthepurposeoffundingDentonAnimalSupportFoundation
donations,(B)thetaxincrementreinvestmentzonenumbertwo(commonlyknownasthe“WestparkTIRZ”)
fundofonehundredninetyeightthousandninehundredandninetyonedollars($198,991)forthepurposeof
fundingaChapter380agreementwithDenton-TarrantPRW,LLC,aTexaslimitedliabilitycompany,and(C)
theTouristandConventionFundofthreehundredsixtyninethousandsevenhundredninedollars($369,709)
forthepurposeoffundingaChapter380agreementwithO’ReillyHotelPartners-Denton,LLC,aMissouri
limitedliabilitycompany;declaringamunicipalpurpose;providingaseverabilityclause;anopenmeetings
clause; and, an effective date.
City of DentonPage 1 of 1Printed on 3/15/2019
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:March19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2018-2019
Budget and Annual Program of Services of the City of Denton to allow for adjustmentsto(A)the Animal
Donation Fundof eightythousand dollars ($80,000)for the purpose of fundingDenton Animal Support
Foundation donations,(B) the tax increment reinvestment zone number two (commonly known as the
“Westpark TIRZ”) fund of one hundred ninety eight thousand nine hundred and ninetyone dollars
($198,991)for the purpose of funding a Chapter 380 agreement with Denton-Tarrant PRW, LLC,a Texas
limited liability company,and (C) the Touristand Convention Fund of three hundred sixty ninethousand
seven hundred nine dollars ($369,709)for the purpose of funding a Chapter 380 agreement with O’Reilly
Hotel Partners–Denton, LLC, a Missouri limited liability company;declaring a municipal purpose;
providing a severability clause; an open meetings clause; and, an effective date.
BACKGROUND
Staff is proposing the following amendments to the City’s FY 2018-19 budget.
Increase appropriations in the FY 2018-19 Animal Donation Fundby $80,000.This amendment will
provideexpenditure authority to utilize donations receivedfrom the Denton Animal Support Foundation.
The Animal Shelter Donation Fund was established for the use of donated funds dedicated to the Animal
Shelter. The fund receives donations from the DASF to subsidize pet adoptions, and for non-adoption
related expendituressuch as specific medical bills. Additionally, the fund receives donations from residents
or other non-DASF groupsfor general operating expenses. Theproposed budget amendment will increase
appropriations for thefund from $50,000 to $130,000.
Increase appropriations in the FY 2018-19 Westpark TIRZ Fundby $198,991. Under the Chapter 380
Agreement, WinCo Foods will pay 100% of the property taxes owed to the City and will receive a grant
equal to 60% of the building and equipment valuation of the distribution center (excluding inventory,
vehicles and supplies). The Agreement thresholds require a minimum valuation of $50 million in real
property improvements and business personal property value. Since WinCo Foods met theirthreshold
requirements, they will receive an ad valorem grant payment equal to 60% of the eligible amount.The
proposed budget amendment will increase appropriations for the fund from $0 to $198,991.
Increase appropriations in the FY 2018-19 Tourist and Convention Fund by $369,709.This amendment
will allow for the rebateof hotel occupancy tax from December 2017-September 2018. The Chapter 380
Agreement with O’Reilly Hotel Partners Denton includes, a 100% rebate of thehotel occupancy tax
generated by the project. The proposed budget amendment will increase appropriations for the fund from
$3,249,863to $3,619,572,
RECOMMENDATION
Staff recommends adoption of the ordinance.
FISCAL INFORMATION
This ordinance will amend the FY 2018-19Budget and Annual Program of Services to allow for an increase
to the Animal Donations Fund by $80,000, increase to the Westpark TIRZ Fund by $198,991and an
increase to the Tourist and Convention Fund by $369,709.
EXHIBITS
1.Agenda Information Sheet
2.Ordinance
Respectfully submitted:
Antonio Puente, Jr., 349-7283
Chief Financial Officer
Prepared by:
Nick Vincent, 349-8063
Budget Manager
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-559,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDentonauthorizingaserviceagreementbetweentheCityof
DentonandtheDentonBlackChamberofCommerce;authorizingtheCityManager,orhisdesignee,to
executesaidagreement;providingfortheexpenditureofCouncilContingencyfundsinanamountnotto
exceed $300; and providing for an effective date. ($300)
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT:
CM/ DCM/ ACM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton authorizing a service agreement between the
City of Denton and the Denton Black Chamber of Commerce; authorizing the City Manager, or his
designee, to execute said agreement; providing for the expenditure of Council Contingency funds in an
amount not to exceed $300; and providing for an effective date. ($300)
BACKGROUND
This Agreement allows for the total expenditure of $300 from Council Contingency Funds. (Council
Member Gerard Hudspeth).
Key provisions of the Agreement include:
Funds shall be used for Scholarships.
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.
EXHIBITS
Exhibit 1 Agenda Information Sheet
Exhibit 2 Ordinance and 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 19-570,Version:1
AGENDA CAPTION
Consider adoption of an ordinance of the City of Denton, approving a City sponsorship in an amount not to exceed
$250 of in-kind services to the Denton Assistance Center, Inc. (DBA “Serve Denton”) for the Celebration
Fundraising Event, to be held on Saturday, March 30, 2019, from 5:30 p.m. to 8:30 p.m. at the Embassy Suites by
Hilton Denton Convention Center; and providing an effective date.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Fire
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton, approving a City sponsorship in an amount not to
exceed $250 of in-kind services to the Denton Assistance Center, Inc. (DBA Serve Denton) for the
Celebration Fundraising Event, to be held on Saturday, March 30, 2019, from 5:30 p.m. to 8:30 p.m. at the
Embassy Suites by Hilton Denton Convention Center; and providing an effective date.
BACKGROUND
Serve Denton is a community-based organization with a mission to support nonprofits that open doors for
people to become self-sufficient. The Celebration Fundraiser event is held at the Embassy Suites on Saturday,
March 30, 2019. The event includes a silent auction, dinner, and Elizabeth Smart; abducted survivor as the
keynote speaker, event organizers anticipate 600 in attendance.
Serve Denton is requesting the City of Denton participate as a sponsor for in-kind services by waiving the room
use fee at Central Fire Station for two hours, staff time for two hours, providing a station tour, and 12 goody
bags as part of a Fire Station Birthday Party Package. In exchange for the support, the City of Denton will be
considered an event sponsor at a sponsorship level equal to the value of fees waived.
RECOMMENDATION
Staff recommends approval.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
N/A
FISCAL INFORMATION
The following fees represent the value of in-kind services not to exceed $250
$100 Value based on 2019 $50 after hours room use fee for Central Fire Station
$110 Value based on 2019 staff time
$40 Value based on 12 birthday party goody bags
$250 Total
Respectfully submitted:
Kenneth Hedges
Fire Chief
Prepared by:
Christine Taylor
Fire Administration Manager
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-571,Version:1
AGENDA CAPTION
Consideradoptionofanordinanceapprovingasalaryincreaseofthreepercent(3%)forCityAuditorUmesh
DalalundertheperformancereviewprovisionofhisemploymentagreementwiththeCity;authorizingthe
expenditure of funds; and providing an effective date.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Human Resources
CM/ DCM/ ACM: Todd Hileman, City Manager
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance approving a salary increase of three percent (3%) for City Auditor
Umesh Dalal under the performance review provision of his employment agreement with the City;
authorizing the expenditure of funds; and providing an effective date.
BACKGROUND
During the October 9, 2018, and March 5, 2019, City Council meetings, the Council reviewed the
accomplishments and goals of City Auditor Umesh Dalal. The Council has agreed to provide a 3% increase
to the base pay for the City Auditor as a result of his performance, retroactive to March 10, 2019 (first pay
period ary date). The attached ordinance authorizes the increase.
OPTIONS
Approve the ordinance as proposed, not approve the ordnance, or make modifications.
EXHIBITS
Exhibit 1 Agenda Information Sheet
Exhibit 2 Ordinance
Respectfully submitted:
Carla Romine
Director of Human Resources
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-572,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceapprovingafirstamendmenttotheemploymentagreementforthePresiding
JudgeandauthorizingtheMayortoexecutesaidamendmenttotheagreement;settinga6%contributionof
PresidingJudge’sbasesalarytoherICMA-RC’s457plan;authorizingexpenditures,andprovidinganeffective
date.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Human Resources
CM/ DCM/ ACM: Todd Hileman, City Manager
DATE: March 19, 2019
SUBJECT
Consider approval of an ordinance approving a first amendment to the employment agreement for the
Presiding Judge and authorizing the Mayor to execute said amendment to the agreement; setting a 6%
-
providing an effective date.
BACKGROUND
Presiding Judge Holly Fox was under the assumption during negotiations with the Executive recruiter that
City-paid contributions to ICMA was considered an Executive benefit. As such, she did not look for it in
her employment agreement. When attending a new employee orientation session, she understood that a
City-paid contribution to an ICMA 457 deferred compensation plan was not part of her compensation. This
matter was discussed with the City Council at the March 5, 2019, Council meeting. The Council agreed to
OPTIONS
Approve the ordinance as proposed, not approve the ordnance, or make modifications.
EXHIBITS
Exhibit 1 Agenda Information Sheet
Exhibit 2 Ordinance and First Amendment to Employment Agreement
Respectfully submitted:
Carla Romine
Director of Human Resources
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-365,Version:1
AGENDA CAPTION
ConsideradoptionofanordinanceoftheCityofDentonauthorizingtheCityManager,ordesignee,toexecute
aphysicalgastransactionconfirmationforthepurchaseofnaturalgasunderthetermsandconditionsofbase
contractforthepurchaseandsaleofnaturalgaswithEnterpriseProductsOperating,LLC;providingforthe
expenditure of funds; and, providing for an effective date.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT:Denton Municipal Electric
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Consider adoption ofan Ordinanceof the City of Denton authorizing the City Manager, or designee, to
execute a physical gas transaction confirmation for the purchase of natural gas under the terms and
conditions of base contract for the purchase and sale of natural gas with Enterprise Products Operating,
LLC; providing for the expenditure of funds; and, providing for an effective date.
BACKGROUND
The City Council approved Ordinance No. 2018-017 on January 16, 2018 authorizing the execution of a
Base NAESB Contract with Enterprise Products Operating, Inc. (Enterprise).
Ordinance 2018-17 also stated that Denton is authorized to buy natural gas for use in the testing and
operation of the Denton Energy Center (DEC) under the authority previously provided in Ordinance 18-
237 which approved the Energy Risk Management Policy (2018 ERMP).
A transaction for the purchase of natural gas has been negotiated for operation of the Denton Energy Center
for a certain period of time beginning the second quarter of 2019. A Transaction Confirmation (attached is
a redacted version of the Transaction Confirmation) that contains the business terms of the natural gas
purchase will be executed by the parties. Redactions are necessary due to terms of the base contract with
the natural gas seller.
The recommended Ordinance affirms and grants, as necessary, authority to the City Manager to
consummate a natural gas purchase Transaction Confirmation as described in this agenda information sheet.
RECOMMENDATION
Staff recommends adoption of the attached Ordinance by the City Council.
FISCAL INFORMATION
Sufficient funds for the purchase of natural gas as described above are budgeted in the electric utility’s
purchased power budget.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance
Respectfully submitted:
George Morrow
DME General Manager
Prepared by:
Smith Day
Regulatory & Risk Div. Manager
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:ID 19-390,Version:1
Consider adoption of an ordinance of the City of Denton approving the Denton Affordable Housing Fee Grant
Program; establishing the guidelines for the program and the provisions for enforcement thereof; establishing
an annual budget; and declaring an effective date.
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_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Public Affairs and IGR - Community Development
CM/ DCM/ ACM: Bryan Langley, Deputy City Manager/COO
DATE: March 19, 2019
SUBJECT
Consider adoption of an ordinance of the City of Denton, approving the Denton Affordable Housing Fee
Grant Program; establishing the guidelines for the program and the provisions for enforcement thereof;
establishing an annual budget; and providing for an effective date.
BACKGROUND
On December 18, 2018 City Council received a work session report, held a discussion, and gave staff
direction regarding a proposed affordable housing fee grant program. The work session report was
requested to provide Council information on programs available in the Metroplex for waiving building
and impact fees for affordable housing development and in response to a request by Habitat for Humanity
for assistance with impact fees.
Through the December 18, 2018 work session presentation and Agenda Information Sheet, City Council
received information regarding:
History of a similar program called the Impact Fee Incentive Grant Program that was originally
adopted by City Council in September 1998 under Resolution 98-052, extended by City Council
in September 2000 under Resolution R2000-046, extended again in April 2004 under Resolution
R2004-017, and finally in June 2008 under Resolution R2008-023;
Research of programs in other cities;
Analysis of fees paid by affordable housing programs including the C
funded housing programs;
Current average cost of fees to construct new single family units, rehabilitate or reconstruct
housing units under the Minor Repair, Home Improvement, and Homebuyer Assistance
Programs; and Proposed guidelines for an Affordable Housing Fee Grant Program with
recommendation for an annual budget of $75,000.
Proposed Program and Guidelines Requiring City Council Direction
City Council received a draft of program guidelines in conjunction with the December 18, 2018 work
session presentation. The program guidelines have been updated to reflect the discussion and direction
provided by City Council (Exhibit 3). Based upon City Council discussion and staff recommendations,
key elements of the program guidelines have been revised as outlined below. Some alternative options
have also been provided based upon the questions from the last session; if any of the alternatives are
desired, staff will bring back a revised ordinance and program guidelines for Council consideration at a
future Council meeting.
1. Eligible Programs During the last Council work session, Council discussed initially starting the
program with a limited scope for only single-family homes. Staff has drafted the program guidelines
with eligibility for both nonprofit single-family housing developers and homeowners participating in
the City housing programs, such as the Home Improvement Program which assists low-to-moderate
income homeowners with the rehabilitation or reconstruction of their home. A grant program utilizing
general revenue funds on projects will help open up additional federal funds
(CDBG/HOME) for direct assistance to homeowners, as well as help the City meet the HOME
Investment Partnership requirement to match every dollar of HOME funds used with 25 cents from
nonfederal sources.
o As Drafted: include BOTH nonprofit single-family housing developers and homeowners
participating in City housing programs
o Alternative: include ONLY nonprofit single-family housing developers
While City Council did ask about extending the grant program to other types of supportive housing
development, it is recommended to start the program with a limited scope in order to set up
monitoring and compliance and then make any necessary adjustments. The program could be
expanded at a later date with experience and an understanding of resources needed to perform ongoing
monitoring for a 10-year period on projects to ensure affordability.
2. Affordability Requirements During the last Council discussion, Council discussed if there should
be different incentives to encourage providing affordable housing for lower income levels (between
30% and 60% of Area Median Income) rather than 80% of Area Median Income (AMI).
Staff has drafted the program guidelines and recommends using the 80% AMI threshold to be
consistent with CDBG and HOME housing assistance programs qualification thresholds for owner-
occupied single-family residential home programs. Habitat for Humanity serves households at or
below 60
as homeowners with up to 80% AMI are served.
o As Drafted: (80%): Homebuyer must earn 80% or less of the area median income and use the
property as their primary residence;
o Alternative: (60%): Homebuyer or renter must earn 60% or less of the area median income and
use the property as their primary residence.
3. Geographic Limitations During the last Council discussion, Council discussed if there should be
geographic limitations. Staff recommends and has drafted the program guidelines to encourage the
dispersal of housing assistance throughout the City of Denton and to require the developer to
demonstrate that it has made reasonable attempts to promote the deconcentration of projects. This
approach would provide the most flexibility to ensure a maximum number of families can be assisted
under the program due to the current land assets held by Habitat for Humanity and the general
availability of affordable land options necessary to make new home construction affordable to income
eligible program participants.
o As Drafted: Developer seeking the Affordable Housing Fee Grant must demonstrate it has
made reasonable attempts to deconcentrate affordable housing assistance by expanding
housing choice through the dispersal of housing assistance throughout the City of Denton.
Preference will be given to projects that promote deconcentration of affordable housing
opportunities. Projects that do not promote an equitable distribution of Affordable Housing
may be eligible for the grant if the developer demonstrates that there are limited options for
geographic deconcentration due to limited availability of affordable parcels of land, owner
choice for location of home, projects retain property already used for Affordable Housing, etc.
o Alternative: Affordable Housing Fee Grants will be evenly distributed to all City Council
districts.
4. Agreement Authority - Direction is needed to identify who will have authority to sign the agreement
for the grant of funds up to $12,000 by project.
With the amount of the grant program set at $12,000 per project and a maximum of $75,000 annually,
and program guidelines consistent with other programs administered by Community Development,
staff has drafted the program guidelines for the grants to be managed administratively by staff. It is
recommended that the Community Development Manager be granted the authority to approve the
application and the City Manager and/or his designee be granted the authority to sign each grant
agreement to ensure timely review and approval of the agreements. Staff could report on the program
each quarter to Council.
o As Drafted: City Manager and/or his designee
o Alternative: City Council consideration and approval
There was also a question regarding if the Community Development Advisory Committee could
review; however, under the current structure, this committee only convenes in fall and winter to
review the Community Development grant application process, review applications received, and
make recommendations.
OPTIONS
1. Proceed with Affordable Housing Fee Grant Program Guidelines as drafted.
2. Do not proceed with Affordable Housing Fee Grant Program Guidelines.
3. Provide other direction regarding Affordable Housing Fee Grant Program Guidelines.
RECOMMENDATION
Proceed with an Affordable Housing Fee Grant Program Guidelines to begin in June 2019 with $18,000
funding for the remainder of FY 2018/19 and an annual funding allocation of $75,000. Staff is only
recommending $18,000 for the remainder of FY2018/19 based upon consultation with Habitat for
Humanity of the current assets and projects and the anticipated projects under the C
programs.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
On December 18, 2018 City Council received a work session report, held a discussion, and gave staff
direction regarding a proposed affordable housing fee grant program.
FISCAL INFORMATION
Proposed Annual Budget of $18,000 for the remainder of FY18/19 and a budget of $75,000 for FY19/20.
EXHIBITS
1. Agenda Information Sheet
2. Ordinance
3. Proposed Affordable Housing Fee Grant Program Guidelines
4. Presentation
Respectfully submitted:
Sarah Kuechler
Director of Public Affairs
Prepared by:
Danielle Shaw
Community Development Manager
CITY OF DENTON
AFFORDABLE HOUSING FEE GRANT PROGRAM
AFFORDABLE HOUSING FEE GRANT PROGRAM GUIDELINES
SECTION 1: PURPOSE
The City of Denton seeks to encourage and maintain community diversity by ensuring housing
choice and homebuyer opportunities, to meet the needs of people of different ages, incomes
and/or social and economic backgrounds, and different household and family structures.
Incentives for affordable housing help to:
Reduce the housing cost burden for low-income families;
Increase homeownership opportunities for low-income families; and
Encourage preservation of existing and construction of new affordable housing in Denton.
The purpose of the Affordable Housing Fee Grant Program is to support the
development of quality, accessible, affordable housing for low-income families through a grant
to assist Qualified Nonprofit Developers and homeowners that qualify for city housing programs
with the costs of building permits and utility fees, including road, water and wastewater impact
fees.
SECTION 2: SCOPE
This document sets forth the administrative process for the application, implementation, and
monitoring of the Program, which includes but is not limited to the following:
A. Authorize the Program to assist Qualified Nonprofit Developers and homeowners that
qualify for city housing programs with the cost of building permits and utility fees,
including road, water and wastewater impact fees;
B. Require execution of agreements between the City and Qualified Nonprofit Developers
and/or homeowners to ensure compliance with the Program;
C. Establish eligibility requirements that require the Affordable Housing units be sold to and
owned by a low-income individual or family;
D. Establish compliance requirements for a minimum of ten years for Affordable Housing
units;
E. Set forth a process for submitting a grant request to the City;
F. Establish monitoring requirements for the Program participants and authorize actions in
the event of non-compliance; and
G. Require Program participants to submit periodic reports to evaluate the effectiveness of
the Program.
SECTION 3: INCENTIVES OFFERED TO AFFORDABLE HOUSING QUALIFIED NONPROFIT
DEVELOPERS AND LOW-INCOME HOMEOWNERS
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CITY OF DENTON
AFFORDABLE HOUSING FEE GRANT PROGRAM
Grants available for the Program shall be limited to an amount set by City Council on an annual
basis. All Program grants will be approved or denied solely at the discretion of the City of Denton,
subject to the Program requirements and the availability of funds.
Qualified Nonprofit Developers of Affordable Housing units and homeowners eligible for housing
CDBG) and HOME
Investment Partnership (HOME) funds may be eligible for a grant award for some or all of the
following fees up to a maximum per unit cost of $12,000, including but not limited to:
Building permit fees including plan review, building permits, temporary power, and
fence permits;
Roadway Impact Fees; and
Utility Fees including water and wastewater impact fees.
SECTION 4: ELIGIBILITY
In order to qualify for the Program, the following criteria must be met:
A. QUALIFYING ENTITY OR HOMEOWNER
1. Must be a Qualified Nonprofit Developer of Affordable Housing as defined in SECTION
6: DEFINITIONS; or
2. Must be a low-income homeowner eligible for housing programs supported by the
3. Qualified Nonprofit Developers will not be eligible for the Program if the entity owes
city ad valorem taxes, other city debt, or has code or other accessibility violations on
any previous units or projects. Homeowners will not be eligible for the Program if the
homeowner owes city ad valorem taxes or other city debt.
B. AFFORDABILITY REQUIREMENTS
1. The price set for the Affordable Housing unit must meet affordability requirements as
defined in SECTION 6: DEFINITIONS.
C. OCCUPANCY REQUIREMENTS
1. Must be low-income individuals or families as defined in SECTION 6: DEFINITIONS.
2. Homebuyer(s) and homeowner(s) must live in the affordable housing unit for at least
ten years.
D. PROPERTY/UNIT REQUIREMENTS
1. The Affordable Housing unit must be a new single-family residential unit developed
by a Qualified Nonprofit Developer and/or a new or existing single-family residential
unit qualifying for a housing program supported b
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CITY OF DENTON
AFFORDABLE HOUSING FEE GRANT PROGRAM
2. The Affordable Housing unit must meet the requirements of all applicable City Codes
and regulations.
E. GEOGRAPHIC LIMITATIONS
The City of Denton seeks to encourage an equitable distribution of Affordable Housing in
all parts of Denton.
1. Qualified Nonprofit Developer(s) seeking the Affordable Housing Fee Grant must
demonstrate it has made reasonable attempts to reduce the isolation of income
groups within geographic areas by expanding and disbursing affordable housing
throughout the City of Denton. Preference will be given to projects that promote the
spatial deconcentration of affordable housing opportunities. Projects that do not
promote an equitable distribution of Affordable Housing may be eligible for the
Program if the Qualified Nonprofit Developer demonstrates that there are limited
options for geographic deconcentration due to limited availability of affordable
parcels of land, owner choice for location of home, projects retain property already
used for Affordable Housing, etc.
SECTION 5: AFFORDABLE HOUSING FEE GRANT APPLICATION PROCESS
Qualified Nonprofit Developers and homeowners requesting to participate in the Program must
submit a completed Affordable Housing Fee Grant Developer Application to the Community
Development Division and enter into an agreement with the City of Denton that require the
applicant and the Affordable Housing unit to comply with the Program.
A. To obtain certification of agreement compliance (Authorization Form) the following
documentation is required:
1. Completed Affordable Housing Fee Grant Program Application for each Affordable
Housing Unit project property location must be provided to the Community
Development Division at least 2 weeks prior to application for permits. The fees
eligible under the Program are:
a. Building Permit Fees:
i. Plan review;
ii. Building permits;
iii. Temporary power; and
iv. Fence permits;
b. Roadway Impact Fees, when applicable; and
c. Utility Fees, including Water and Wastewater Impact Fees.
2. The Program grant approval will be based upon verification that the proposed
Affordable Housing unit and the applicant are eligible for the Program.
3. After review by City staff for compliance with the Program, an agreement, note, and
deed of trust will be prepared by Community Development and approved by the City
Manager.
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CITY OF DENTON
AFFORDABLE HOUSING FEE GRANT PROGRAM
4. Upon the execution of the required documents by the applicant, the City Manager will
execute the documents and the Community Development Division manager will
provide an Authorization Form to the Building Official identifying the service
addresses of the Affordable Housing units selected to receive grants. The
Authorization Form must be made before the issuance of a building permit authorizing
the start of construction of the Affordable Housing unit.
B. Program grant funds will not normally be provided directly to the applicant. The amount
of applicable grant funding will be transferred by the Community Development Division
to the appropriate department upon issuance of an Authorization Form. If permit fee
payments have been made by the applicant on the units that have been awarded a grant,
the Community Development Division will process a reimbursement.
C. If the Affordable Housing unit does not comply with the agreement, note, and deed of
trust during the term of the agreement, the applicant is required to repay the grant to the
City. Once the grant is approved, to avoid repayment of fees, the Affordable Housing
unit(s) must meet the minimum requirements, including:
1. Complete repair/renovation/construction within 15 months of the issuance of the
Authorization Form.
2. Provide prior to sale:
a. V
b. Copy of new home contract indicating final cost of the single-family residential
unit; and
c. .
3. Unit will be subject to property inspections.
4. Applicant will provide records and reports requested by the City. Income information
for new homeowners over the course of the agreement must be available for review
by the Community Development Division staff.
SECTION 6: DEFINITIONS
The following words, terms, phrases, when used in these Affordable Housing Fee Grant Program
Guidelines, shall have the meanings ascribed to them in this section, except where the context
clearly indicates a different meaning:
A. Affordable Housing:
Affordable Housing means owner-occupied single family residential homes owned or sold
to a low-income family which housing qualifies for the City of Denton CDBG and HOME
housing assistance programs or has a purchase price and an estimated appraised value at
acquisition that does not exceed value limits established and published annually by U.S.
Department of Housing and Urban Development in Section 92.254(a)(2)(iii) of the Final
Rule of the HOME regulations, as amended.
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CITY OF DENTON
AFFORDABLE HOUSING FEE GRANT PROGRAM
B. Single Family Residential:
A stand-alone single-unit family residence detached from other housing structures, and
does not include a multi-family residential dwelling.
C. Qualified Nonprofit Developer:
1. A nonprofit organization that develops housing for low-income individuals and
families as a primary activity to promote community-based revitalization of the
municipality; or
2. A nonprofit corporation described by 26 U.S.C. Section 501(c)(3) that:
a. has been incorporated in this state of Texas for at least one year;
b. has a corporate purpose to develop affordable housing that is stated in its articles
of incorporation, by-laws, or charter;
c. has at least one-fourth of its board of directors residing in Denton; and
d. engages primarily in the building, repair, or sale of housing for low-income
individuals and families.
D. Low-Income Individuals and Families:
An individual or family whose annual income is less than eighty percent (80%) of the area
median income, with allowable adjustments, as determined and annually updated by U.S.
Department of Housing and Urban Development.
5
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Legislation Text
File #:ID 19-553,Version:1
AGENDA CAPTION
HoldapublichearingandconsideradoptionofanordinanceoftheCityofDenton,adoptingStandardsofCare
forrecreationalcareprogramsadministeredbyDenton’sParksandRecreationDepartmentasrequiredbyTexas
Human Resources Code Section 42.041 (b) (14); and providing an effective date.
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AGENDA INFORMATION SHEET
DEPARTMENT: Parks and Recreation
CM/ DCM/ ACM: Bryan Langley
DATE: March 19, 2019
SUBJECT
Hold a public hearing and consider adoption of an ordinance of the City of Denton, adopting Standards of
Care for recreational care programs Department as required
by Texas Human Resources Code Section 42.041 (b) (14); and providing an effective date. The Parks,
Recreation and Beautification Board recommends approval (7-0).
BACKGROUND
The Texas Department of Regulatory Services requires municipalities to adopt an ordinance approving
Standards of Care for specific types of programming or to obtain a license. The Standards of Care are
requirements that either meet or exceed the current State Day Care requirements and are intended to be
minimum standards by which the City of Denton Parks and Recreation Department (PARD) will operate
programs related to youth and teens. The programs operated by PARD under the Standards of Care are
recreational in nature and are not day care programs.
1
The Texas Human Resources Code exempts municipal operated recreation programs for elementary-age
children (ages 5-13) from day care licensing as long as Standards of Care are adopted annually and in
accordance with the following statutory requirements:
the governing body of the municipality annually adopts standards of care by ordinance after a
public hearing for such programs, that such standards are provided to the parents of each program
participant, and that the ordinances shall include, at a minimum, staffing ratios, minimum staff
qualifications, minimum facility, health and safety standards, and mechanisms for monitoring and
enforcing the adopted local standards; and further provided that parents be informed that the
2
program is not licensed by the state and the program may not be advertised as a child care facility.
The first Standards of Care were adopted by the City Council through Ordinance 99-365. Since the State
exemption certification requires the adoption of a new ordinance each year for the Standards of Care, the
Parks and Recreation Department makes revisions and updates to the original Standards of Care prior to the
new ordinance being adopted each year.
Proposed revisions and updates to the 2019-20 Standards of Care were presented to the Park Board on
March 4, 2018. The following changes were made to the 2019-20 Standards of Care and are listed below:
1
Tex. Hum. Res. Code Ann. § 42.041.
2
Id.
1. Updated camp names Kids to Camp Discovery, added Camp Quest at North
Lakes and Counselors in Training
2. Changed Youth/Teen Services to Recreational Care to be consistent with department
reorganization
3. Updated Program Specialist to Camp Supervisor/Counselors to be consistent with common
nomenclature
4. Removed a duplicate entry for medical authorization form
The Parks, Recreation and Beautification Board reviewed and unanimously recommended the City Council
adopt the Standards of Care on March 4, 2019.
RECOMMENDATION
Staff recommends the City Council approve the proposed ordinance as presented.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
City Council approved the 2018-2019 Standards of Care on March 20, 2018 by Ordinance 2018-386.
The Parks, Recreation and Beautification Board reviewed the proposed Standards of Care on March 4,
2019, and recommended approval with a vote of 7-0.
FISCAL INFORMATION
This ordinance and Standards of Care require no additional City funding.
EXHIBITS
Exhibit 1 Agenda Information Sheet
Exhibit 2 Ordinance
Respectfully submitted:
Gary Packan
Director, Parks and Recreation
Prepared by:
Caroline Seward
Program Area Manager
City of Denton
Parks & Recreation Department
City of Denton
Parks and Recreation
Standards of Care
2019-2020
1
TABLE OF CONTENTS
Standards of Care
General Administration 3
Organization 3
Definitions 4
Inspections 4
Enrollment 5
Suspected Abuse 6
Staffing - Responsibilities and Training 6
Youth/Teen/Center Supervisor Qualifications 6
Supervisor 6
Coordinator 7
Program Coordinator 7
Program Specialist & Leader Qualifications 7
Specialist and Leader Responsibilities 8
Training/Orientation 8
Operations 9
Staff-Participant Ratio 9
Discipline 9
Programming 9
Communication 10
Transportation 10
Facility Standards 11
Safety 11
Fire 11
Health 12
Toilet Facilities 13
Sanitation 13
*Programs include: After School Action Site, Camp Discover, Camp Quest, Camp Voyage,
Camp Exploration, Super Kids, Kids Day Out, Holiday Camps, Spring Break Camps,
Counselors in Training and Teen Camp
Any questions related to Standards of Care should be addressed to the Rec Care Supervisor at
940-349-8730.
2
CITY OF DENTON PARKS AND RECREATION
STANDARDS OF CARE
The following Standards of Care have been adopted by the City Council of the City of Denton, Texas
in order to comply with Senate Bill 212 as approved by the Texas Legislature during the 74th
legislative session. The Standards of Care are intended to be minimum standards by which the City
of Denton Parks and Recreation Department will operate the CiPrograms. The programs
listed in this Standards of Care are recreational in nature and are not licensed day care programs.
programs are exempt from licensing under Texas
Administrative Code 745.115(3).
GENERAL ADMINISTRATION
1. Organization
A. The governing body of the City of Denton Parks and Recreation Programs is the City
of Denton City Council.
B. Implementation of the Rec Care Programs Standards of Care is the responsibility of
the Parks and Recreation Department Director and Departmental employees.
C. Recreational Care Care will
apply are After School Action Site, Holiday Break Camps, Spring Break Camps,
Kids Day Off, Camp Discover, Camp Quest, Camp Voyage, Camp Exploration,
Super Kids, Counselors in Training, and Teen Summer Camp programs.
D. Each Rec Care Program site will have available for public and staff review a current
copy of the Standards of Care.
E. Parents of participants will be provided the website address of where a current copy
of the Standards of Care is located.
F. Criminal background checks will be conducted on prospective staff. No person with
conviction or who is under indictment for, or is the subject of an official criminal
complaint alleging violation of any of the crimes listed in the Texas Department of
Guidelines Appendix II as same may be amended or a felony violation of the Texas
Controlled Substance Act may be present while children are in care. An example of
current Appendix II is attached as Exhibit A.
3
2.Definitions
A. City: City of Denton.
B. City Council: City Council of the City of Denton.
C. Department: Parks and Recreation Department of the City of Denton.
D. Youth/Teen Programs or Program: City of Denton Youth/Teen Programs consisting
of After School Action Site, Holiday Break Camps, Spring Break Camps, Kids Day
Off, Camp Discovery, Camp Quest, Camp Voyage, Camp Exploration, Super Kids,
Counselors in Training and Teen Summer Camp programs.
E. Program Manual: Notebook of policies, procedures, required forms, and
organizational and programming information relevant to City of Denton Programs.
F. Director: City of Denton Parks and Recreation Department Director or his or her
designee.
G. Program Manager: City of Denton Parks and Recreation Department full-time
Manager who has been assigned administrative responsibility for City of Denton
Camp Programs.
H Recreation Supervisor or Coordinator: City of Denton Parks and Recreation
Department full-time employee who has been assigned responsibility to implement
Rec Care Programs.
I. Program Site: Area and facilities where City of Denton Rec Care Programs are held
consisting of Civic Center, Martin Luther King Recreation Center, Denia Recreation
Center, North Lakes Recreation Center, and McMath Middle School.
J. Participant: A youth/teen whose parent(s) have completed all required registration
procedures and determined to be eligible for a City of Denton Rec Care Program.
K. Parent(s): This term will be used to represent one or both parent(s) or adults who
have legal custody and authority to enroll their child(ren)/teen(s) in City of Denton
Rec Care Programs.
L. Employee(s) or Staff: Term used to describe people who have been hired to work for
the City of Denton and have assigned responsibility for managing, administering, or
implementing some portion of the City of Denton Rec Care Programs.
3. Inspections/Monitoring/Enforcement
A. A monthly inspection report will be initiated by the Supervisor or Coordinator of
each Program to confirm the Standards of Care are being adhered to.
4
(1)Inspection reports will be kept on record for at least two years.
(2) The Supervisor will review the report and establish deadlines and criteria for
compliance with the Standards of Care.
B: The Supervisor/Coordinators- will make visual inspections of the Program based on
the following schedule:
(1) Each After School Program site will be inspected bimonthly;
(2) The Holiday & Spring Break Camp Program will be inspected once during
its holiday schedule; and
(3) Camp Exploration, Camp Voyage, Camp Discovery, Camp Quest, and
Super Kids will be inspected twice during the summer break.
(4) Teen Camp Program and Counselors in Training will be inspected once
during the summer break;
(5) The Kids Day Off will be inspected two times a year;
C. Complaints regarding enforcement of the Standards of Care will be directed to the
Supervisor. The Supervisor will be responsible to take the necessary steps to resolve
the problems. Complaints regarding enforcement of the Standards of Care and their
resolution will be recorded by the Coordinator. Serious complaints regarding
enforcement of the Standards of Care will be addressed by the Program Manager and
the complaint and resolution will be noted.
4. Enrollment
A. Before a child can be enrolled, a parent must sign registration forms that contain
(1) name, address, home telephone number, email address;
(2) name and address of parents and telephone number during Program hours;
(3) the names of people to whom the child can be released;
(4)
(5) emergency medical authorization;
(6) proof of residency when appropriate; and
(7) a liability waiver.
5. Suspected Abuse
Program employees will report suspected child abuse or neglect in accordance with the
5
Texas Family Code.
STAFFING - RESPONSIBILITIES AND TRAINING
6. Rec Care Supervisor ( Qualifications
A. Supervisor will be full-time, professional employees of the City of Denton Parks and
Recreation Department and will be required to have all Program Leader or
Coordinator qualifications as outlined in Section 10 of the document.
B. Supervisor must be at least 21 years old.
C. Supervisor University or
at least five (5) years of direct supervision of recreational activities related to children
ages 4-15 years of age. Acceptable degrees include:
(1) Recreation Administration or General Recreation;
(2) Physical Education; and
(3) Any other comparable degree plan that would lend itself to working in a
public recreation environment.
D. Supervisor must have five years experience planning and implementing recreational
activities.
E. Supervisor must pass a background investigation including testing for illegal
substances.
F. Supervisor must have successfully completed a course in first aid and Cardio
Pulmonary Resuscitation (CPR) based on either American Heart Association or
American Red Cross standards. Supervisor must also complete a course in Defensive
Driving.
G. Supervisor must complete 10 hours of child care training per calendar year.
7. Supervisors
A. Supervisors
compliance with the adopted Standards of Care.
B. Supervisors are responsible to recommend for hire, supervise, and evaluate
Specialist, Coordinators and Leaders.
C. Supervisors are responsible to plan, implement, and evaluate programs.
8. Program
6
A.Coordinatorwill be full-time, professional employees of the City of Denton Parks
and Recreation Department and will be required to have all Program Leader or
Specialist qualifications as outlined in Section 10 of the document except for
section 10A.
B. Coordinator must have two years of experience planning and implementing
recreational activities.
C. Coordinators must complete 8 hours of child care training per calendar year.
Training must be completed prior to their start date of child care programs and
completed on an annual basis.
9. Coordinator Responsibilities
A. Coordinators are responsible to assist in the administration of
operations in compliance with the adopted Standards of Care.
B. Coordinators are responsible to assist in the recommendation for hiring,
supervising, and evaluating Specialist and Leaders.
C. Coordinators are responsible to assist in the planning, implementing, and
evaluating programs.
D. Coordinatorer or Specialist
responsibilities as outlined in Section 11 of the document.
10. Camp Supervisor/Counselors Qualifications
A. Camp Supervisor/Counselors will be part-time or temporary employees of the Parks
and Recreation Department.
B. Camp Supervisor/Counselors working with children must be age 18 or older.
C. Camp Supervisor/Counselors should be able to consistently exhibit competency,
good judgment, and self-control when working with children.
D. Camp Supervisor/Counselors must relate to children with courtesy, respect,
tolerance, and patience.
E. Camp Supervisor/Counselors must have successfully completed a course in first aid,
CPR, and AED training based on either American Heart Association or American
Red Cross standards. An exception can be made for no more than one staff person at
each site, and that person shall successfully complete a first aid and CPR course
within four weeks of starting work.
F. Camp Supervisor/Counselors must pass a background investigation including testing
7
for illegal substances.
G. Camp Supervisor/Counselors must complete 8 hours of child care training per
calendar year. Training must be completed prior to their start date of child care
programs and completed on an annual basis.
11. Camp Supervisor/Counselors Responsibilities
A. Camp Supervisor/Counselors will be responsible to provide participants with an
environment in which they can feel safe, can enjoy wholesome recreation activities,
and can participate in appropriate social opportunities with their peers.
B. Camp Supervisor/Counselors will be responsible to know and follow all City,
Departmental, and Program standards, policies, and procedures that apply to City of
Denton Youth/Teen Programs.
C. Camp Supervisor/Counselors must ensure that participants are released only to a
parent or an adult designated by the parent. All Program sites will have a copy of the
Department approved plan to verify the identity of a person authorized to pick up a
participant if that person is not known to the Specialist and Leader.
12. Training/Orientation
A. The Department is responsible for providing training and orientation to employees in
working with children and for specific job responsibilities. Supervisors and
Coordinators will provide each Camp Supervisor/Counselors with a program manual
specific to each Rec Care Program. On-line child care training may be completed in
lieu of departmental training for 3 hours of the required 8 hours per year.
B. Program employees must be familiar with the Standards of Care for Rec Care
Program operation as adopted by the City Council.
C.
discipline, guidance, and release of participants as outlined in the Program Manual.
D. Program employees will be trained in appropriate procedures to handle emergencies.
E. Program employees will be trained in areas including City, Departmental, and
Program policies and procedures, provision of recreation activities, safety issues,
child development, and organization.
F. Program employees will be required to sign an acknowledgment that they received
the required training.
OPERATIONS
13. Staff-Participant Ratio
8
A. In a City of Denton Rec Care Program, the standard ratio of participants to Leaders
will be 17 to 1. In the event a Leader is unable to report to the Program site, a
replacement will be assigned.
B. Each participant shall have a Program employee who is responsible for him or her
as
14. Discipline
A. Program employees will implement discipline and guidance in a consistent
manner based on the best interests of Program participants.
B. There must be no cruel or harsh punishment or treatment.
C. Program employees may use brief, supervised separation from the group if necessary.
D. As necessary, Program employees will initiate discipline reports to the parent(s) of
participants. Parents will be asked to sign discipline reports to indicate they have
been advised about specific problems or incidents.
E. A sufficient number and/or severe nature of discipline reports as detailed in the
Program Manual may result in participant being suspended from the Program.
F. In instances where there is a danger to participants or staff, offending participants
will be removed from the Program site as soon as possible.
15. Programming
A. Program employees will attempt to provide activities for each group according to the
to
-being. The activities also must be flexible and
B. Program employees will attempt to provide that indoor and outdoor times include:
(1) alternating active and passive activities;
(2) opportunity for individual and group activities; and
(3) outdoor time each day weather permits.
C.
field trips and during any transportation provided by the Program.
(1) During trips, Program employees supervising participants must have
immediate access to emergency medical forms and emergency contact
9
information for each participant.
(2) Program employees must have a written list of the participants in the group
and must check the roll frequently.
(3) Program employees must have first aid supplies and a guide to first aid and
emergency care available on field trips.
16. Communication
A. Each Program employee will have the option to use their own cell phone device or
use a city provided cell phone to allow the staff to be contacted by Parks and
Recreation personnel, and for use in contacting the Supervisor, Coordinator, or
making emergency calls.
B. The Supervisor or Coordinator will post the following telephone numbers adjacent to
a telephone accessible to all Program employees at each site:
(1) Denton ambulance or emergency medical services;
(2) City of Denton Police Department;
(3) City of Denton Fire Department;
(4) Civic Center, Recreation Centers, and McMath;
(5) Numbers at which parents may be reached; and
(5) The telephone number for the site itself.
17. Transportation
A. Before a participant may be transported to and from city sponsored activities, a City
waiver form, completed by the parent of the participant, must be filed.
B. First aid supplies will be available in all Program vehicles that transport children.
C. All children must be securely seated in the appropriate safety seat/booster based on
state child safety laws.
D. All vehicles used for transporting participants must have available a 6-BC portable
fire extinguisher which will be installed in the passenger compartment of the vehicle
and must be accessible to the adult occupants.
FACILITY STANDARDS
18. Safety
10
A.Program employees will visually inspect Program sites daily to detect sanitation and
safety concerns that might affect the health and safety of the participants.
B. Buildings, grounds, and equipment on the Program site will be inspected, cleaned,
repaired, and maintained to protect the health of the participants.
C. Program equipm
D. Program employees must have first aid supplies readily available at each site, during
transportation to an off-site activity, and for the duration of any off-site activity.
E. Program air conditioners, electric fans, and heaters must be mounted out of
reach or have safeguards that keep participants from being injured.
F. Program porches and platforms more than 30 inches above the ground must be
equipped with railings participants can reach.
G. All swing seats at Program sites must be constructed of durable, lightweight,
relatively pliable material.
H. Program employees must have first aid supplies readily available to staff in a
designated location.
19. Fire
A. In case of fire,
first priority is to evacuate the participants to a designated safe area.
B. The Program site will have a biennial fire inspection by the local Fire Marshal, and
the resulting report will detail any safety concerns observed. The report will be
forwarded to the Program Manager who will review and establish deadlines and
criteria for compliance.
C. Each site must have at least one fire extinguisher approved by the Fire Marshal
readily available to all employees. The fire extinguisher is to be inspected monthly
by the camp supervisors or consolers, All Program employees will be trained in the
proper use of fire extinguishers.
D. Fire drills will be initiated at Program sites based on the following schedule:
(1) After School Program: A fire drill once every three months.
(2) Spring Break Camp and Holiday Camp: A fire drill once during the
session.
(3) Camp Exploration, Camp Voyage, Camp Discover, Camp Quest, and
Super Kids: A fire drill twice during the session.
(4) Teen Camp and Counselors in Training: A fire drill once during session
11
20. Health
A. Illness or Injury
(1) A participant who is considered to be health or safety concern to other
or employees will not be admitted to the Program.
(2) Illnesses and injuries will be handled in a manner to protect the health of all
participants and employees.
(3) Program employees will follow plans to provide emergency care for injured
participants with symptoms of an acute illness as specified in the Program
manual.
(4) Program employees will follow the recommendation of the Texas Department
of Health concerning the admission or readmission of any participant after a
communicable disease.
B. Program employees will administer medication only if:
(1) Parent(s) complete and sign a medication form that provides authorization
for employee to dispense medication with details as to time and dosages.
The form will include a hold harmless clause to protect the City.
(2) Prescription medications are in the original containers labeled with the
employees will administer the medication only as stated on the label.
Program employees will not administer medication after the expired date.
(3) date
the medication was brought to the Program. Nonprescription medication
must be in the original container. Program employees will only administer
only according
to label direction.
(4) Medication dispensed will be limited to routine oral ingestion not requiring
special knowledge or skills on the part of Program employees.
(5) Program employees must ensure medications are inaccessible to participants
or, if it is necessary to keep medications in the refrigerator (when available),
medications will be kept separate from food.
(6) Children who may require epi-pen injections due to severe allergic reactions
must complete an Anaphylaxis Emergency Action Plan (AEAP) before their
child starts the program. Staff will administer the epi-pen in case of
emergency based on the instructions stated on the AEAP.
12
C. Toilet Facilities
(1) The Program site will have inside toilets located and equipped so children can
use them independently and Program staff can supervise as needed.
(2) There must be one (1) flush toilet for every 30 children. Urinals may be
counted in the ratio of toilets to children, but they must not exceed 50% of the
total number of toilets.
(3) An appropriate and adequate number of lavatories will be provided.
D. Sanitation
(1) The Program facilities must have adequate light, ventilation, and heat.
(2) The Program must have an adequate supply of water meeting the standards of
the Texas Department of Health for drinking water and ensure that it will be
supplied to the participants in a safe and sanitary manner.
(3) Program employees must see that garbage is removed from buildings daily.
13
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:S19-0001b,Version:1
AGENDA CAPTION
Hold a public hearing and consider adoption of an ordinance approving a Specific Use Permit to allow for an
Accessory Dwelling Unit behind an existing residence on approximately 0.5374 of an acre. The property is
generally located on the south side of Roberts Street, west of Brown Drive, in the City of Denton, Denton
County, Texas (S19-0001, 606 Roberts Accessory Building, Sean Jacobson).
City of DentonPage 1 of 1Printed on 3/15/2019
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City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Department of Development Services
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Hold a public hearing and consider adoption of an ordinance approving a Specific Use Permit to allow for
an Accessory Dwelling Unit behind an existing residence on approximately 0.5374 of an acre. The
property is generally located on the south side of Roberts Street, west of Brown Drive, in the City of
Denton, Denton County, Texas (S19-0001, 606 Roberts Accessory Building, Sean Jacobson).
BACKGROUND
The applicant, Lee Allison of Allison Engineering, on behalf of Anthony Marks, the property owner, is
requesting approval of a Specific Use Permit (SUP) for an Accessory Dwelling Unit behind his existing
residence The subject site is located within the NR-3 zoning district, which requires approval of a SUP for
an Accessory Dwelling unit.
The owner is requesting the SUP to facilitate construction of a 672-square-foot Accessory Dwelling Unit
behind their 1,634-square-foot home. The Accessory Dwelling Unit will function as a cabana and will
living, sleeping, eating, cooking, and sanitation accommodations
dwelling unit.
OPTIONS
1. Approve as submitted.
2. Approve subject to conditions.
3. Deny.
4. Postpone Consideration
4. Table item.
RECOMMENDATION
The Planning and Zoning Commission recommended approval \[7-0\].
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
February 20, 2019 Planning and Zoning Commission voted to recommend approval of S19-0001.
EXHIBITS
1. Agenda Information Sheet
2. Staff Analysis
3. Staff Presentation
4. Aerial/Location Map
5. Site Zoning Map
6. Site Plan
7. Architectural Rendering of Proposed Accessory Dwelling Unit
8. Neighborhood Accessory Buildings Map
9. Notification Map
10. Ordinance
Respectfully submitted:
Richard Cannone, AICP
Deputy Director/Planning Director
Prepared by:
Sean Jacobson
Assistant Planner
S:\\Legal\\Our Documents\\Ordinances\\19\\S19-0001.docx
ORDINANCE NO. ______________
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE
PERMIT TO ALLOW FOR CONSTRUCTION OF AN ACCESSORY DWELLING UNIT ON
AN APPROXIMATELY 0.5374 ACRE SITE, GENERALLY LOCATED ON THE SOUTH
SIDE OF ROBERTS STREET, WEST OF BROWN DRIVE, IN THE CITY OF DENTON,
DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM
AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE. (S19-0001, 606 ROBERTS ACCESSORY
BUILDING)
WHEREAS, Lee Allison of Allison Engineering, on behalf of the property owner, Anthony
Marks, has applied for a Specific Use Permit (SUP) to allow for an Accessory Dwelling Unit use
on approximately 0.5374 acre, within the Neighborhood Residential 3 (NR-3) zoning district and
use classification, as described and shown in Exhibit A the Property); and
WHEREAS, on February 20, 2019, the Planning and Zoning Commission, in compliance
with the laws of the State of Texas, having given the requisite notices by publication and otherwise,
and having afforded full and fair hearings and to all property owners interested in this regard, has
recommended approval \[7-0\] of the requested SUP, subject to conditions; and
WHEREAS, on March 19, 2019, the City Council likewise conducted a public hearing as
required by law to consider the Specific Use Permit request. Upon consideration, the City Council
hereby finds that the request is consistent with the Denton Plan and federal, state, and local law,
including but not limited to, this Ordinance, and has further agreed to comply with the additional
restrictions and conditions set forth herein; and
WHEREAS, the City Council has determined that it will be beneficial to Denton and its
citizens to grant the SUP; that such grant will not be detrimental to the public welfare, safety, or
health; and that the SUP should be granted; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance are
incorporated herein by reference and found to be true.
SECTION 2. The SUP to allow the Accessory Dwelling Unit use on the Property as shown
on the site plan attached and incorporated herein as , is hereby approved.
SECTION 3. Failure to Comply. Except as otherwise stated above, all terms of the SUP
shall be complied with prior to issuance of a Certificate of Occupancy. Failure to comply with any
term or condition of the Ordinance will result in the SUP being declared null and void, and of no
force and effect. The SUP that is issued to the entity named above runs with the land, and is
assignable and transferable to subsequent owners of the Property.
SECTION 4. Severability. If any provision of this ordinance or the application thereof to
any person or circumstance is held invalid by any court, such invalidity shall affect the validity of
the provisions or applications, and to this end the provisions of this ordinance are severable.
SECTION 5. Penalty. Any person, firm, entity or corporation violating any provision of
this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00 for each violation.
Each day that a provision of this ordinance is violated shall constitute a separate and distinct
offense. The penal provisions imposed under this Ordinance shall not preclude Denton from filing
suit to enjoin the violation and it retains all legal rights and remedies available to it under local,
state and federal law.
SECTION 6. In compliance with Section 2.09(c) of the Denton Charter, this ordinance
shall become effective fourteen (14) days from the date of its passage, and the City Secretary is
hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-
Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the
date of its passage.
The motion to approve this ordinance was made by __________________________ and
seconded by _________________________________, the ordinance was passed and approved by
the following vote \[___ - ___\]:
Aye Nay Abstain Absent
Mayor Chris Watts: ______ ______ ______ ______
Gerard Hudspeth, District 1: ______ ______ ______ ______
Keely G. Briggs, District 2: ______ ______ ______ ______
Don Duff, District 3: ______ ______ ______ ______
John Ryan, District 4: ______ ______ ______ ______
Deb Armintor, At Large Place 5: ______ ______ ______ ______
Paul Meltzer, At Large Place 6: ______ ______ ______ ______
PASSED AND APPROVED this the _____ day of _____________, 2019.
_______________________________________
CHRIS WATTS, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY: /s/Jerry E. Drake, Jr.
Exhibit A
Legal Description and Location Map
BROWNWOOD BLK C LOT 4,5 ///4&5/141A///N H MEISENHEIMER SUR AB811
Exhibit B
Site Plan
Planning Report
S19-0001, 606 Roberts Accessory Building
City Council District 2
March 19, 2019
REQUEST:
Hold a public hearing and consider adoption of an ordinance approving a Specific Use Permit to
allow for an Accessory Dwelling Unit behind an existing residence on approximately 0.5374 of an
acre. The property is generally located on the south side of Roberts Street, west of Brown Drive,
in the City of Denton, Denton County, Texas. (S19-0001, 606 Roberts Accessory Building, Sean
Jacobson).
OWNER:
Anthony Marks
APPLICANT:
Lee Allison, Allison Engineering
BACKGROUND:
On February 20, 2019 the Planning and Zoning Commission held a public hearing regarding this
request and recommended to approve the request. At the public hearing the applicant spoke and
provided information about the design and intent of the proposed Accessory Dwelling Unit. One
individual from the public, a neighbor of the applicant, spoke in support of the request.
The applicant, Lee Allison of Allison Engineering, on behalf of Anthony Marks, is requesting
approval of a Specific Use Permit (SUP) for a 672-square-foot Accessory Dwelling Unit behind
his existing 1,634-square-foot residence. The subject site is located within the NR-3 zoning district
which requires approval of a SUP for an Accessory Dwelling unit. The Accessory Dwelling Unit
will function as a cabana and contain living, sleeping, eating, and cooking, and accommodations
and n Accessory Dwelling Unit.
SITE DATA:
The subject site is a 23,071-square-foot residential lot containing a 1,634-square-foot single-
family house, a pool, and a shed. The shed will be replaced as part of this project. The subject
site is located on the south side of Roberts Street.
SURROUNDING ZONING AND LAND USES:
Northwest: North: Northeast:
Zoning: NR-3 Zoning: NR-3 Zoning: NR-3
Use: SF Residential Use: SF Residential Use: SF Residential
West: East:
Zoning: NR-3 Zoning: NR-3 & NR-4
SUBJECT PROPERTY
Use: SF Residential Use: SF Residential
Southwest: South: Southeast:
Zoning: NR-3 Zoning: NR-3 Zoning: NR-3
Use: SF Residential Use: SF Residential Use: SF Residential
CONSIDERATIONS:
1. Section 35.6.4 of the Denton Development Code (DDC) outlines the criteria for approval of a
SUP. These criteria are as follows:
a. That the use would be in conformance with all standards within the zoning district in
which the use is proposed to be located, and in conformance with The Denton Plan
and federal, state, or local law.
Accessory Dwelling Units (ADUs) are permitted in the Neighborhood Residential 3
(NR-3) zoning district, with an SUP. The proposed Accessory Dwelling Unit the pool
house -- conforms with all applicable NR-3 standards, including maximum lot
coverage and minimum setbacks. The proposed ADU meets the requirements of DDC
Section 35.12.4(B), including that it is architecturally compatible with the associated
principal structure in
Denton Plan 2030 references ADUs as a possible
otect neighborhood fabric. This careful examination
in this case occurs through this SUP process which ensures that the additional building
is compatible with the main house in size and material, and meets the overall SUP
approval criteria. The ADU will be also be required to comply with all applicable
building codes through the Building Permit process.
b. A SUP shall only be granted if all of the following conditions have been met:
i. That the specific use will be compatible with and not injurious to the use and
enjoyment of other property nor significantly diminish or impair property values
within the immediate vicinity.
Swimming pools, detached garages, and other accessory buildings are common in
this neighborhood. The addition of an ADU which will function primarily as a
cabana, to this 23,071-square-foot lot, will be compatible with and not injurious
to the use and enjoyment of other property, nor significantly diminish or impair
property values, within the immediate vicinity.
ii. That the establishment of the specific use will not impede the normal and orderly
development and improvement of surrounding vacant property.
The ADU will not impede the normal and orderly development and improvement
of surrounding vacant property.
iii. That adequate utilities, access roads, drainage and other necessary supporting
facilities have been or will be provided.
The site has been developed with a 1,643-square-foot, two-bedroom single-family
home, with all necessary utilities and public services provided, for many years.
The addition of a 672-square-foot ADU results in the equivalent of a 2,315-
square-foot three-bedroom home on the site, which should have minimal
additional impact on the provision of utilities, access, and other public services to
the site. Considering the small size of the ADU, and that maximum lot coverage
and minimum landscape standards ensure that this site retains significant
permeable ground, the addition of this use should not significantly impact
existing drainage flow.
iv. The design, location and arrangement of all driveways and parking spaces
provides for the safe and convenient movement of vehicular and pedestrian traffic
without adversely affecting the general public or adjacent developments.
The site plan has been evaluated to determine that sufficient parking is provided
for both the primary dwelling and the ADU. The driveway location is not being
modified, and no modification is considered necessary given that this ADU is not
expected to generate significant additional vehicular or pedestrian traffic on the
site.
v. That adequate nuisance prevention measures have been or will be taken to
prevent or control offensive odor, fumes, dust, noise and vibration.
The addition of an ADU to the property is not anticipated to produce any
offensive odor, fumes, dust, noise and vibration.
vi. That directional lighting will be provided so as not to disturb or adversely affect
neighboring properties.
Exterior lighting has been assessed through the SUP application review process.
Exterior lighting for the ADU will have to comply with the Development Code
requirement for a maximum one-half foot-candle illumination at the property line.
vii. That there is sufficient landscaping and screening to ensure harmony and
compatibility with adjacent property.
The site meets landscape requirements for NR-3 zoning. Large trees screen
the site on the east and west sides. The property is also bounded on all sides by
a 6-foot-tall fence, which should substantially screen the ADU from all sides,
reducing its visual impact and helping to ensure harmony and compatibility with
the neighborhood.
STAFF RECOMMENDATION:
Staff recommends approval of the request as it is compatible with the surrounding property and
conforms to the approval criteria for a Specific Use Permit in Section 35.6.4 of the Denton
Development Code.
PUBLIC NOTIFICATION:
To comply with the public hearing notice requirements for the Planning & Zoning Commission
hearing, 22 notices were sent to property owners within 200 feet of the subject property, 84
courtesy notices were sent to physical addresses within 500 feet of the subject property, a notice
was published in the Denton Record Chronicle, and a sign was placed on the property.
The City Council hearing was separately noticed: 22 notices were sent to property owners within
200 feet of the subject property, 84 courtesy notices were sent to physical addresses within 500
feet of the subject property, a notice was published in the Denton Record Chronicle, and a sign
was placed on the property.
In total, after two rounds of notifications, three responses have been received from property owners
within 200 feet of the subject property, all in support.
st
The applicant held a neighborhood meeting on January 31 which was attended by 13 residents.
Attendees were supportive of the proposed project, with one attendee noting that the proposed
Accessory Dwelling Unit
cards, made available by the developer, were filled out by attendees all were in support (See
Exhibit 8).
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:S18-0007a,Version:1
AGENDA CAPTION
HoldapublichearingandconsideradoptionofanordinanceoftheCityofDenton,Texas,approvingaSpecific
UsePermittoallowforavehiclerepairuseonapproximately0.57acresite,generallylocatedonthesouthside
ofE.McKinneyStreet,approximately135feetwestofOaklandStreetintheCityofDenton,DentonCounty,
Texas;providingforapenaltyinthemaximumamountof$2,000.00forviolationsthereof;providinga
severability clause and an effective date. (S18-0007, Dent One - Auto Hail Repair, Hayley Zagurski).
City of DentonPage 1 of 1Printed on 3/15/2019
powered by Legistar™
City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
AGENDA INFORMATION SHEET
DEPARTMENT: Department of Development Services
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Hold a public hearing and consider an ordinance of the City of Denton, Texas, approving a Specific Use
Permit to allow for a vehicle repair use on approximately 0.57 acre. The property is generally located on
the south side of E. McKinney Street, approximately 135 feet west of Oakland Street in the City of
Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations
thereof; providing a severability clause and an effective date. (S18-0007, Dent One Auto Hail Repair,
Hayley Zagurski).
BACKGROUND
OnFebruary 20, 2019 the Planning and Zoning Commission held a public hearing regarding this request
and recommended to approve/deny the request with Staffs recommended conditions \[7-0\]. At the public
hearing the applicant spoke and provided information regarding the business operations of Dent One. No
individuals from the public spoke about the request.
The request is for a Specific Use Permit (SUP) to permit a vehicle repair use on an approximately 0.57-acre
property generally located on the south side of E. McKinney Street, approximately 135 feet west of Oakland
Street. The subject property is zoned Downtown Commercial General (DC-G) District, which permits
vehicle repair only with an SUP.
The subject property consists of two separate parcels of land, both parcels are owned by Second Hand
Sports & Game Swap LLC. There are currently three existing businesses located on the property:
Second Hand Sports (204 E. McKinney)
Ambros Tacos y Mas (208 E. McKinney)
Dent One Auto Hail Repairs (208 E. McKinney).
Second Hand Sports is located in a separate building on the western side of the property. Ambros Tacos
and Dent One are located within the same building, with the restaurant located in the front approximately
430 square feet of the building and the vehicle repair use located in rear approximately 600 square feet of
thebuilding. A third, currently vacant, building is also located on the eastern portion of the property. A
parking lot containing six spaces is located in the central portion of the property, with a large gravel vehicle
storage area located south of the existing parking lot.
This request originated as a code violation case. In May 2017 a notice of violation was first issued for Dent
One operating without a certificate of occupancy (CO). An initial CO application was made in July of 2017,
butthe application was denied because the vehicle repair use requires an SUP within the DC-G District.
Over the next year multiple applications were made for permits and SUPs, but the applications were never
completed. Additional citations were issued for continuing operations without a CO, and the applicant
appeared in Court once and was fined for the violation. A more detailed timeline of events is provided in
Exhibit 7. In July 2018 a complete SUP application was submitted and reviewed for the project. Over the
past few months staff has worked with the applicant to review this request and determine what can be done
to help bring the site and the use into better compliance with the Denton Development Code site design
standards.
A full Staff Analysis of the request is provided as Exhibit 2.
OPTIONS
1. Approve as submitted.
2. Approve subject to conditions.
3. Deny.
4. Postpone consideration.
5. Table item.
RECOMMENDATION
Staff recommends approval of this request, with the following conditions:
1. The vehicle repair use shall be limited to the approximately 600 square foot one-story building area
shown on the attached Site Plan.
2. All customer vehicles located at the facility for either repair or pick-up following repair work shall be
kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan.
3. The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and maintained so
long as a vehicle repair use is located on the subject property, unless the vehicle storage area is paved and
striped as a parking lot.
4. The proposed Type C landscape buffer shown on the Site Plan along the southern property line shall be
installed and maintained in accordance with the Cityscape code. In addition, the proposed Type C
landscape buffer shall be installed along the eastern property line along the existing wood fence up to the
southern edge of the existing vacant building shown on the Site Plan. Additionally, the proposed deciduous
ornamental trees within the buffer shall be replaced with a deciduous tree from the Medium or Large
Canopy tree list in the Site Design Criteria Manual.
5. No storage of inoperable vehicles shall be permitted on the subject property.
6. Failure to adhere to the conditions stated above may result in revocation of the SUP in accordance with
DDC Section 35.6.6.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The subject property was zoned Downtown Commercial General (DC-G) District as part of the 2002 city-
wide rezoning.
OnFebruary 20, 2019 the Planning and Zoning Commission recommended \[7-0\] to approve this request
with the Staff recommended conditions.
DEVELOPER ENGAGEMENT DISCLOSURES
No developer contact and/or meeting disclosures have been provided to staff as of the issuance of this
report.
EXHIBITS
1. Agenda Information Sheet
2. Staff Analysis
3. Aerial Map
4. Zoning Map
5. Future Land Use Map
6. Site Plan
7. Timeline
8. Notification Map and Responses
9. Presentation
10. Planning and Zoning Commission Meeting Minutes
11. Draft Ordinance
Respectfully submitted:
Richard Cannone, AICP
Deputy Director/Planning Director
Prepared by:
Hayley Zagurski
Senior Planner
Њ
Ћ Minutes
Ќ Planning and Zoning Commission
Ѝ February 20, 2019
Ў
Џ After determining that a quorum was present, the Planning and Zoning Commission of the City of
А Denton, Texas convened in a Work Session on Wednesday, February 20, 2019 at 2:00 p.m. in the
Б Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the
В following items were considered:
ЊЉ
ЊЊ PRESENT: Chair Andrew Rozell. Commissioner: Alfred Sanchez, Larry Beck, Jason Cole,
ЊЋ Mat Pruneda, Margie Ellis, and Tim Smith.
ЊЌ
ЊЍ ABSENT: None.
ЊЎ
ЊЏ STAFF: Scott McDonald, Richard Cannone, Charlie Rosendahl, Ron Menguita, Julie
ЊА Wyatt, Hayley Zagurski, Cindy Jackson, Sean Jacobson, Christi Upton, Karen Hermann,
ЊБ and Cathy Welborn.
ЊВ
ЋЉ WORK SESSION
ЋЊ
ЋЋ Chair Rozell opened the Work Session at 2:09 p.m.
ЋЌ
ЋЍ 1. Work Session Reports
ЋЎ
ЋЏ A. Receive a presentation from Denton Independent School District regarding student
ЋА generation rates, capacity and planned improvements.
ЋБ
ЋВ Chair Rozell introduced Paul Andress, with the Operations Department at Denton Independent
ЌЉ School District (DISD).
ЌЊ
ЌЋ Paul Andress introduced Gary Ryan, Ray Bledsoe, and Bob Templeton with Templeton
ЌЌ Demographics to discuss construction, planning, and growth for DISD.
ЌЍ
ЌЎ Bob Templeton, Templeton Demographics, stated they are a consulting firm that specializes in
ЌЏ working with school districts to determine enrollment growth.
ЌА
ЌБ Commissioner Beck questioned if multi- family is included in the presentation. Templeton stated
ЌВ multi- family is not included in the presentation, but is tracked very closely.
ЍЉ
ЍЊ Chair Rozell questioned if the plans for Cole Ranch and Hunter Ranch are included in the future
ЍЋ number of 29,000 new homes. Templeton stated he does have the information on Cole Ranch, but
ЍЌ as the development goes further into the platting process they will then receive refinements;
ЍЍ currently the estimates show about 11,000 lots from Cole Ranch included in the 29,000.
ЍЎ
Њ
Њ Andress stated DISD is working with Hunter and Cole Ranch to place school sites in both
Ћ developments.
Ќ
Ѝ Chair Rozell questioned at what process DISD starts to see the development. Templeton stated as
Ў soon as the project comes in as a preliminary plat it is picked up as a future development.
Џ
А B. Receive a report, hold a discussion, and provide staff direction on the Denton Development
Б Code Update and Draft Zoning Map. (DCA18-0009, DDC Update, Ron Menguita).
В
ЊЉ Ron Menguita, Principal Planner, provided a presentation on the Denton Plan 2030 and the Denton
ЊЊ Development Code Update (DDC). Menguita stated the Denton Plan 2030 is used as a guide for
ЊЋ decision making, managing growth, and how to look at future development.
ЊЌ
ЊЍ Chair Rozell questioned if single family residents would be required to meet the threshold
ЊЎ requirements. Menguita stated yes residents would be required to conform to the new requirements
ЊЏ of the DDC when they are requesting a change.
ЊА
ЊБ Commissioner Ellis requested a link to access the draft zoning map be placed on the main City of
ЊВ Denton webpage. Charlie Rosendahl, Business Services Manager, agreed with Commissioner
ЋЉ Ellis.
ЋЊ
ЋЋ Chair Rozell questioned if staff has done analysis on the properties that could be considered non-
ЋЌ conforming. Menguita stated no staff has not. Staff clarified that the DDC update will create
ЋЍ nonconformity but will also clean up current non-conformities created back in 2002.
ЋЎ
ЋЏ Chair Rozell questioned if there is a consequence or remediation for property owners when they
ЋА have a non-conforming can continue as a
ЋБ non-conforming use and if the property is vacant and marketed they are also able to keep the non-
ЋВ conformity; however, if the property is vacant not marketed or not used then they could potentially
ЌЉ lose the non-conformity.
ЌЊ
ЌЋ Richard Cannone, Deputy Director of Development Services, stated staff has been very strategic
ЌЌ to ensure that single family uses were not made non-conforming.
ЌЍ
ЌЎ Chair Rozell questioned since the draft has been public for five days does staff have a report on
ЌЏ the number of views and has staff received any feedback or inertia. Menguita stated staff has
ЌА received feedback since it has been posted.
ЌБ
ЌВ C. Hold a discussion on establishing policies and procedures for the Planning and Zoning
ЍЉ Commission.
ЍЊ
ЍЋ Richard Cannone, Deputy Director of Development Service, stated there have been a number of
ЍЌ items that have come up that have triggered the need for policies and procedures for the Planning
ЍЍ and Zoning Commission. Cannone stated over the last couple of meetings staff has received
ЍЎ deferrals or postponement from the applicant after the notices have been sent out. Cannone
ЍЏ continued the commission should be the one to grant the postponement or deferral.
Ћ
Њ
Ћ Commissioner Smith stated the applicant should reserve the right to pull their item up until the
Ќ agenda is posted.
Ѝ
Ў Jerry Drake, First Assistant Attorney, clarified the applicant does not reserve the right to postpone
Џ an item. The Planning and Zoning Commission is allowed to move the item forward, hear the item,
А then decide to postpone the item.
Б
В Commissioner Ellis requested staff to bring concerns as a work session item to allow the
ЊЉ commission the opportunity to discuss implementing policies. Chair Rozell also requested the
ЊЊ commission provide staffof any known policies to help staff fill in all gaps.
ЊЋ
ЊЌ Chair Rozell called a recess at 4:33 p.m.
ЊЍ
ЊЎ Chair Rozell reconvened the Work Session at 4:42 p.m.
ЊЏ
ЊА Chair Rozell stated Public Hearing item 3A and 3C have been withdrawn and 3B has been
ЊБ postponed to the March 6, 2019 Planning and Zoning Commission meeting.
ЊВ
ЋЉ Richard Cannone stated staff is requesting item 3L to be opened and continued to the March 6,
ЋЊ 2019Planning and Zoning meeting.
ЋЋ
ЋЌ 2.Clarification of agenda items listed on the agenda for this meeting. This is an opportunity for
ЋЍ Commissioners to ask questions of staff on the Consent and Regular Agenda items, which may
ЋЎ include a full briefing on an item in the order it appears on the regular session agenda. Any such
ЋЏ briefing will be repeated in regular session.
ЋА
ЋБ Julie Wyatt, Senior Planner, presented Item for Individual Consideration 2A. Wyatt stated the
ЋВ request is for a proposed Alternative Development Plan for a proposed office development.
ЌЉ
ЌЊ Chair Ellis questioned if the street tress have been assessed for vision impediment due to the
ЌЋ amount of school children. Wyatt stated the trees locations has been assessed by engineering; the
ЌЌ trees will be planted between the sidewalk and right-of-way which should not impair
ЌЍ visibility.
ЌЎ
ЌЏ Wyatt stated staff does recommend approval of the request.
ЌА
ЌБ Hayley Zagurski, Senior Planner, presented Item of Individual Consideration 2B.
ЌВ
ЍЉ Zagurski stated the request is to deviate from Sections 35.13.9 Perimeter Fences and Screening
ЍЊ Requirements, 35.13.10 Access, Parking, and Circulation Requirements, and35.13.13.3.C
ЍЋ Nonresidential and Mixed Use Buildings Parking. Zagurski stated Staff recommends approval
ЍЌ of this request as it meets the established requirements for the approval of an ADP in DDC
ЍЍ 35.13.5.A.
Ќ
Њ Chair Rozell stated Public Hearing item 3A and 3C have been withdrawn and 3B has been
Ћ postponed to the March 6, 2019 Planning and Zoning Commission meeting.
Ќ
Ѝ Cindy Jackson, Senior Planner, presented Public Hearing item 3D. Jackson stated staff does
Ў recommend approval of the request.
Џ
А Hayley Zagurski, Senior Planner, presented Public Hearing item 3E. Zagurski stated the request is
Б to hold a public hearing and consider making a recommendation to City Council regarding a Detail
В Plan for Planned Development (PD) 176 to depict a storage warehouse use.
ЊЉ
ЊЊ Zagurski stated staff recommends approval of the request with the following conditions as it is
ЊЋ compatible with the surrounding property and is consistent with the goals and objectives of the
ЊЌ Denton Plan 2030: 1. No exterior lighting on the building shall face a single-family residential use,
ЊЍ or if such lighting is proposed, it shall be screened from view of adjoining residential properties.
ЊЎ A photometric plan shall be provided with the building permit application demonstrating
ЊЏ irements in Section 35.13.12. 2. Due to the proximity
ЊА of this location to single-family residences, the majority of the PD being residential, and the lack
ЊБ
ЊВ requirements for non-residential districts as well as the following limitations: a. No illuminated
ЋЉ wall signs may face an adjoining single-family use.
ЋЊ Commissioner Beck questioned if the two gates in the back of the property is to allow access for
ЋЋ maintaining the grass. Zagurski stated yes the gates are there to access for property maintenance.
ЋЌ
ЋЍ Chair Rozell called a recess at 5:31 p.m.
ЋЎ
ЋЏ Chair Rozell reconvened the Work Session at 5:37 p.m.
ЋА
ЋБ Julie Wyatt, Senior Planner and Christi Upton, Environmental Compliance Coordinator, presented
ЋВ Public Hearing item 3F. Wyatt stated the request is for an Alternative Environmental Sensitive
ЌЉ Area (ESA) to, restore Cross Timbers Upland Habitat on approximately 0.23 acre generally located
ЌЊ on the west side of Harbour Mist Trail and restore Riparian Stream Buffer on approximately 1 acre
ЌЋ of land generally located north of Pockrus Page, approximately 570 feet east of Fox Sedge Lane.
ЌЌ Uptonstated staff recommends approval of the request with following conditions: 1. 195 tree-
ЌЍ caliper inches, 35 American Beautyberry shrubs, Blackland Prairie seed mix and Riparian
ЌЎ Recovery seed mix and shall be planted. 2. 0.50 acres adjacent to the USACE restoration project
ЌЏ shall be planted according to the Alternative ESA Plan. 3. 0.23 acres of Cross Timbers upland
ЌА habitat shall be restored according to the Alternative ESA Plan. 4. Annual reporting during the
ЌБ first three years describing the cumulative mitigation work performed and the survivability of the
ЌВ plantings shall be submitted for staff review and inspection. 5. Plants installed as a part of the
ЍЉ proposed native flora revegetation are to be installed and maintained by the current property
ЍЊ owner/developer for a period of three (3) years following installation. Plants that are removed,
ЍЋ destroyed, or die within that three (3) year period are required to be replaced by the current property
ЍЌ owner/developer to achieve 90% survival rate. 6. A bond, letter of credit, or escrow in the amount
Ѝ
Њ of $24,375.00 ($125.00 per tree-caliper inches to be planted) should be provided to the City within
Ћ 60 days of AESA18-0002 approval. Upon completion of the three (3)-year landscape
Ќ establishment period, the City shall inspect the trees and determine whether ninety (90) percent of
Ѝ the trees are healthy and have a reasonable chance of surviving to maturity. Upon such a finding,
Ў the City shall release the bond or letter of credit. In the absence of such a finding, the Applicant
Џ shall be notified to replace any unhealthy or dead trees. If the applicant does not take remedial
А steps to bring the property into compliance, the City shall make demand for payment on the cash
Б bond, surety bond, or letter of credit. The City may use all legal remedies to enforce this Subchapter
В in addition to making demand on the security provided herein. 7. NEW Home owner association
ЊЉ(HOA) documents shall be created and filed establishing Lot 14 Block F and Lot 20 Block 28 in
ЊЊ Villages of Carmel Phase 4B to be owned by the HOA for the purpose of preserving the ESAs in
ЊЋ perpetuity. Any maintenance of these lots shall be done according to Subchapter 17 ESA
ЊЌ standards. Copy of the HOA documents shall be provided to the City no later than the final annual
ЊЍ report.
ЊЎ Julie Wyatt, Senior Planner, presented Public Hearing item 3G. Wyatt stated if the Planning and
ЊЏ Zoning Commissions opts to recommend approval, the following overlay conditions are suggested
ЊА to increase conformance with the Future Land Use (FLU) : 1. Restrict the permitted uses to single-
ЊБ family attached dwellings limited to a maximum twelve (12) units per acre \[L(40)\]. 2. Reduce the
ЊВ maximum building height to 40 feet. 3. Common area lots owned and maintained by the
ЋЉ
ЋЊ common area lots must be of sufficient size to accommodate the following entrance features
ЋЋ outside any existing or proposed easements located adjacent to Audra Lane: a six foot masonry
ЋЌ screening wall and a Type B buffer. A Type B buffer is a ten (10) foot planted strip that includes
ЋЍ a combination of five (5) evergreen and deciduous trees and thirty (30) shrubs per one hundred
ЋЎ(100) linear feet.
ЋЏ Wyatt stated staff recommends denial of the request as it does not meet the Future Land Use
ЋА designation as required in the criteria for approval outlined in Denton Development Code Section
ЋБ 35.3.4.B.
ЋВ Hayley Zagurski, Senior Planner, presented Public Hearing item 3H. Zagurski stated staff
ЌЉ recommends approval of this request, with the following conditions: 1. The vehicle repair use shall
ЌЊ be limited to the approximately 600 square foot one-story building area shown on the attached Site
ЌЋ Plan. 2. All customer vehicles located at the facility for either repair or pick-up following repair
ЌЌ work shall be kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan.
ЌЍ 3.The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and
ЌЎ maintained so long as a vehicle repair use is located on the subject property, unless the vehicle
ЌЏ storage area is paved and striped as a parking lot. 4. The proposed Type C landscape buffer shown
ЌА on the Site Plan along the southern property line shall be installed and maintained in accordance
ЌБ ype C landscape buffer shall be installed
ЌВ along the eastern property line along the existing wood fence up to the southern edge of the existing
ЍЉ vacant building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
ЍЊ within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree
ЍЋ list in the Site Design Criteria Manual. 5. No storage of inoperable vehicles shall be permitted on
Ў
Њ the subject property. 6. Failure to adhere to the conditions stated above may result in revocation
Ћ of the SUP in accordance with DDC Section 35.6.6.
Ќ Sean Jacobson, Assistant Planner, presented Public Hearing 3I. Jacobson stated the request is for
Ѝ a City initiated rezoning.
Ў
Џ Jacobson stated staff does recommend approval of the request as it is consistent with section
А 35.3.4.B of the Denton Development Code.
Б
В Richard Cannone, Deputy Director of Development Services, stated the rezoning is the first step
ЊЉ in the process, next will be to replat the property because of the multiple parcels.
ЊЊ
ЊЋ Ron Menguita, Principal Planner, presented Public Hearing item 3J. Menguita stated the request
ЊЌ is for a zoning change Zoning Change from Neighborhood Residential 4 (NR-4) to Neighborhood
ЊЍ Residential Mixed Use (NRMU). Menguita continued staff does recommend approval of the
ЊЎ request.
ЊЏ Scott McDonald, Director of Development Services, stated the first phase to Public Hearing item
ЊА 3I would be renovating the fleet bays, the second phase is updating the parking lots. McDonald
ЊБ continued during the second phase the buffering and landscaping requirements would be
ЊВ addressed.
ЋЉ
ЋЊ Sean Jacobson, Assistant Planner, presented Public Hearing item 3K. Jacobson stated staff does
ЋЋ recommend approval of the request as it is compatible with the surrounding property and conforms
ЋЌ to the SUP approval criteria in DDC section 35.6.4.
ЋЍ
ЋЎ Chair Rozell closed the Work Session at 6:28 p.m.
ЋЏ
ЋА
ЋБ REGULAR MEETING
ЋВ
ЌЉ Chair Rozell opened the Regular Meeting at 6:41 p.m.
ЌЊ
ЌЋ The Planning and Zoning Commission convened in a Regular Meeting on Wednesday, February
ЌЌ 20, 2019 at 6:30 p.m. in the City Council Chambers at City Hall, 215 E. McKinney at which time
ЌЍ the following items were considered:
ЌЎ
ЌЏ Chair Rozell stated Public Hearing item 3A and 3C have been withdrawn and 3B has been
ЌА postponed to the March 6, 2019 Planning and Zoning Commission meeting.
ЌБ
ЌВ 1. PLEDGE OF ALLEGIANCE
ЍЉ
ЍЊ A. U.S. Flag B. Texas Flag
ЍЋ
ЍЌ 2. ITEMS FOR INDIVIDUAL CONSIDERATION
ЍЍ
Џ
Њ A. Consider a request by Denton MOP Partners for approval of an Alternative
Ћ Development Plan for a proposed office development on 3.4 acres located at the northwest
Ќ corner of Teasley Lane and Lillian Miller Parkway in the City of Denton, Denton County,
Ѝ Texas. The property is currently zoned Neighborhood Residential Mixed Use (NRMU)
Ў District with overlay conditions. The purpose of the Alternative Development Plan is to
Џ deviate from Section 35.13.13.4 Nonresidential and Mixed Use Buildings in a Pedestrian
А Oriented District of the Denton Development Code. (ADP18-
Б Julie Wyatt)
В
ЊЉ Julie Wyatt, Senior Planner, presented Item for Individual Consideration 2A. Wyatt stated staff
ЊЊ does recommend approval of the request.
ЊЋ
ЊЌ The following individuals spoke during the Public Hearing:
ЊЍ S.L Montgomery, 1117 Ellison Park Circle, Denton, Texas 76205. Opposed to the request.
ЊЎ Charles Parker, 1524 Hunters Ridge Circle, Denton, Texas 76205. Opposed to the request.
ЊЏ Connie Guess, 1504 Hunters Ridge Circle, Denton, Texas 76205. Opposed to the request.
ЊА Matt Cragin, 2080 N. Highway 360 Ste. 240, Grand Prairie, Texas 75050. Supports the
ЊБ request.
ЊВ Gary McCalla, 780 North Watters Road Ste. 100, Allen, Texas 75013. Supports the request.
ЋЉ
ЋЊ The following individuals requested not to speak:
ЋЋ Kathryn Parker, 1524 Hunters Ridge Circle, Denton, Texas 76205. Opposed to the Request.
ЋЌ
ЋЍ Matt Cragin, the Civil Engineer, stated the owner is currently working with City of Denton to
ЋЎ address the drainage issues.
ЋЏ
ЋА Commissioner Sanchez questioned Charles Parker if the neighborhood was having flooding issues
ЋБ prior to the 24 hour emergency development. Parker stated the issue has dated back to 2006 when
ЋВ a zoning overlay was placed on the property and for the owner to address existing drainage issues.
ЌЉ
ЌЊ Chair Rozell questioned the conformity of the ER functioning to the approved overlay and why
ЌЋ the drainage issue was not addressed during the engineering process. Wyatt stated the use did
ЌЌ conform to the Denton Development Code (DDC) at the time of approval. Wyatt stated the
ЌЍ applicant is proposing underground water retention to divert the water from the adjacent properties.
ЌЎ
ЌЏ Commissioner Ellis questioned if the City of Denton is addressing the area with the sandbags.
ЌА Wyatt stated yes the City of Denton is looking to add a flume to drain the water.
ЌБ
ЌВ Commissioner Ellis questioned the applicant if they are aware per the ordinance the office building
ЍЉ cannot be named after adjacent subdivisions. Gary McCalla stated he was unaware of the
ЍЊ stipulation and will correct the name.
ЍЋ
ЍЌ Chair Andrew Rozell motioned, Commissioner Mat Pruneda seconded to approve Item for
ЍЍ Indiviual Consideration 2A with the conditions that Hunters Ridge title be removed from
ЍЎ nomenclature of the project. Commissioner Ellis requested an amendment to add signage to
ЍЏ caution school children crossing. Chair Rozell questioned the applicant if they were amenable to
А
Њ adding additional crossing signage on the south side at Teasley Lane to address children crossing.
Ћ Gary McCalla agreed to add the signage to the drive on the south side at Teasley Lane. Chair
Ќ Rozell agreed to add the amendment. Commissioner Pruneda agreed to the amendment.
Ѝ
Ў Chair Andrew Rozell motioned, Commissioner Mat Pruneda seconded to approve Item for
Џ Indiviual Consideration 2A with the conditions that Hunters Ridge title be removed from
А nomenclature of the project and additional signage be added to the south entrance of Teasley Lane
Б that there are children crossing. Motion approved (7-0). Commissioner Alfred Sanchez "aye",
В Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye",
ЊЉ Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim
ЊЊ Smith "aye".
ЊЋ
ЊЌ B. Consider a request by PACCAR Inc. for approval of an Alternative Development Plan
ЊЍ(ADP) for a proposed truck sales facility on approximately 12.07 acres located on the west
ЊЎ side of Precision Drive, approximately 330 feet south of West Oak Street in the City of
ЊЏ Denton, Denton County, Texas. The property is currently zoned Industrial Center General
ЊА(IC-G) District. The purpose of this ADP request is to deviate from the requirements of
ЊБ Sections 35.13.9 Perimeter Fences and Screening Requirements, 35.13.10 Access, Parking,
ЊВ and Circulation Requirements, and 35.13.13.3.C Nonresidential and Mixed Use Buildings
ЋЉ- Parking of the Denton Development Code. (ADP18-0009, New Truck Lot, Hayley
ЋЊ Zagurski).
ЋЋ
ЋЌ Hayley Zagurski, Senior Planner, presented Item for Individual Consideration 2B. Zagurski stated
ЋЍ the request is to deviate from sections 35.13.9 Perimeter Fences and Screening Requirements,
ЋЎ 35.13.10 Access, Parking, and Circulation Requirements, and35.13.13.3.C Nonresidential and
ЋЏ Mixed Use Buildings Parking. Zagurski stated Staff recommends approval of this request as it
ЋА meets the established requirements for the approval of an ADP in DDC 35.13.5.A.
ЋБ The following individuals spoke during the Public Hearing:
ЋВ Ashley Reynolds, 7557 Rambler Road, Ste. 1400, Dallas, Texas 75231. Supports the
ЌЉ request.
ЌЊ Craig Wedeman, 609 Grainte Trail, Northlake, Texas 76120. Supports the request.
ЌЋ
ЌЌ Commissioner Smith questioned what an undecking building is. Craig Wedeman, General
ЌЍ Contractor, stated that undecking is a process where the trucks are stacked on top of each other,
ЌЎ then a crane moves them on and off of each other.
ЌЏ
ЌА Commissioner Jason Cole motioned, Commissioner Tim Smith seconded to approve Item for
ЌБ Individual Consideration 2B. Motion approved (7-0). Commissioner Alfred Sanchez "aye",
ЌВ Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye",
ЍЉ Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim
ЍЊ Smith "aye".
ЍЋ
ЍЌ
ЍЍ
ЍЎ
Б
Њ 3. PUBLIC HEARINGS
Ћ
Ќ Chair Rozell stated as a reminder Public Hearing item 3A and 3C have been withdrawn and 3B
Ѝ has been postponed to the March 6, 2019 Planning and Zoning Commission meeting.
Ў
Џ A. Hold a public hearing and consider making a recommendation to City Council regarding
А a request by Craig Bond representing Parvar Property, LLC for a zoning change from a
Б Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district to a Neighborhood
В Residential Mixed Use (NRMU) zoning district. The 2.683 acre site is generally located at
ЊЉ 3131 and 3161 N Elm Street, in the City of Denton, Denton County, Texas. (Z18-0009,
ЊЊ Centennial on N. Elm Apartments, Cindy Jackson). THIS ITEM HAS BEEN
ЊЋ WITHDRAWN BY THE APPLICANT.
ЊЌ
ЊЍ B. Hold a public hearing and consider making a recommendation to City Council regarding
ЊЎ a request by Kirkman Engineering for a Specific Use Permit (SUP) to allow for a multi-
ЊЏ family dwelling use with 111 dwelling units proposed on three adjacent tracts totaling
ЊА approximately 9.91 acres. The subject property is generally located west of Mockingbird
ЊБ Lane and south of the Mingo Road in the City of Denton, Denton County, Texas. (S18-
ЊВ 0005, Mockingbird Multi-Family, Ron Menguita) THIS ITEM HAS BEEN POSTPONED
ЋЉ TO THE MARCH 6, 2019 PLANNING AND ZONING COMMISSION MEETING.
ЋЊ
ЋЋ C. Hold a public hearing and consider making a recommendation to City Council regarding
ЋЌ a request by Andrew Glass representing Hills of Argyle Monticello, Ltd. to rezone an 11.5
ЋЍ acre site from a Neighborhood Residential 1 (NR-1) zoning district to a Neighborhood
ЋЎ Residential 4 (NR-4) zoning district. The subject property is generally located on the east
ЋЏ side of Fort Worth Drive/U.S. 377 and Chipping Campden Road, in the City of Denton,
ЋА Denton County, Texas. (Z18-0024, Hills of Argyle Manor Homes, Cindy Jackson)
ЋБ
ЋВ D. Hold a public hearing and consider a request Tony Kimbrough with Kaz Surveying
ЌЉ representing Tim Refsland for approval of a Final Replat of Lots 1A-1 and 1A-2, Block A
ЌЊ of the Gray Forest Addition; being a residential replat of Lot 14, Block D of Park West
ЌЋ Addition, and Lot 1-A, Block A of the DeWeerd Addition. The approximately 1.15 acre
ЌЌ property is generally located on the west side of Stuart Road, and including 704 Chisholm
ЌЍ Trail, in the City of Denton, Denton County, Texas. (FR18-0015, Gray Forest Addition,
ЌЎ Cindy Jackson)
ЌЏ
ЌА Chair Rozell opened the Public Hearing.
ЌБ
ЌВ Cindy Jackson, Senior Planner, presented Public Hearing item 3D. Jackson stated staff does
ЍЉ recommend approval of the request.
ЍЊ
ЍЋ The following individuals spoke during the Public Hearing:
ЍЌ Lynn Beckford, 1009 Stuart Rd., Denton, Texas 76209. Opposed to the request.
ЍЍ Gale Frisby, 1112 Abbotts Ln., Denton, Texas 76205. Opposed to the request.
ЍЎ
ЍЏ Chair Rozell closed the Public Hearing.
В
Њ
Ћ Commissioner Tim Smith motioned, Commissioner Larry Beck seconded to approve Public
Ќ Hearing item 3D. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner
Ѝ Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner
Ў Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
Џ
А E. Hold a public hearing and consider making a recommendation to City Council regarding
Б a Detail Plan for a 2.96-acre parcel located within the Planned Development 176 (PD-176)
В Zoning District, generally located on the west side of North FM 2499, approximately 1,450
ЊЉ feet north of Hickory Creek Road in the City of Denton, Denton County, Texas to allow a
ЊЊ storage warehouse (self-storage) use. (PDA18-0009, Proposed Self Storage Facility,
ЊЋ Hayley Zagurski).
ЊЌ
ЊЍ Chair Rozell opened the Public Hearing.
ЊЎ
ЊЏ Hayley Zagurski, Senior Planner, presented Public Hearing item 3D. Zagurski stated the request
ЊА is to consider making a recommendation to City Council regarding a Detail Plan for a 2.96-acre
ЊБ parcel located within the Planned Development 176 (PD-176) Zoning District to allow a storage
ЊВ warehouse.
ЋЉ Zagurski stated staff does recommend approval of the request with the following conditions as it
ЋЊ is compatible with the surrounding property and is consistent with the goals and objectives of the
ЋЋ Denton Plan 2030: 1. No exterior lighting on the building shall face a single-family residential use,
ЋЌ or if such lighting is proposed, it shall be screened from view of adjoining residential properties.
ЋЍ A photometric plan shall be provided with the building permit application demonstrating
ЋЎ 2. Due to the proximity
ЋЏ of this location to single-family residences, the majority of the PD being residential, and the lack
ЋА of signage regulations in the PD, the project shall comp
ЋБ requirements for non-residential districts as well as the following limitations: a. No illuminated
ЋВ wall signs may face an adjoining single-family use.
ЌЉ Commissioner Ellis questioned the discussion that took place at the Home Owners Association
ЌЊ(HOA) meetings. Zagurski stated she was able to attend one HOA meetings, there were about 15-
ЌЋ 20 people with mixed views.
ЌЌ
ЌЍ The following individuals spoke during a Public Hearing:
ЌЎ Rick Jones, 3317 Princeton, Dallas, Texas 75205. Supports the request.
ЌЏ Tom Brandt, 6600 Hayling Way, Denton, Texas 76210. Opposed to the request.
ЌА
ЌБ Rick Jones, the applicant, provided a presentation regarding the proposed facility and site.
ЌВ
ЍЉ Chair Rozell closed the Public Hearing.
ЍЊ
ЍЋ Commissioner Tim Smith motioned, Commissioner Mat Pruneda seconded Public Hearing item
ЍЌ 3D. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner Larry Beck
ЊЉ
Њ"aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner Mat Pruneda
Ћ"aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
Ќ
Ѝ F. Hold a public hearing and consider making a recommendation to City Council regarding
Ў a request by Astra Carmel LLC for an Alternative Environmental Sensitive Area (AESA)
Џ Plan to restore Cross Timbers Upland Habitat on approximately 0.23 acre generally located
А on the west side of Harbour Mist Trail, approximately 240 feet north of Del Rey Drive in
Б the City of Denton, Denton County, Texas and a Riparian Stream Buffer on approximately
В 1 acre of land generally located north of Pockrus Page, approximately 570 feet east of Fox
ЊЉ Sedge Lane in the City of Denton, Denton County, Texas. (AESA18-0002, Villages of
ЊЊ Carmel, Julie Wyatt)
ЊЋ
ЊЌ Chair Rozell opened the Public Hearing.
ЊЍ
ЊЎ Julie Wyatt, Senior Planner and Christi Upton, Environmental Compliance Coordinator, presented
ЊЏ Public Hearing item 3F.
ЊА
ЊБ Upton stated staff recommends approval of the request with following conditions: 1. 195 tree-
ЊВ caliper inches, 35 American Beautyberry shrubs, Blackland Prairie seed mix and Riparian
ЋЉ Recovery seed mix and shall be planted. 2. 0.50 acres adjacent to the USACE restoration project
ЋЊ shall be planted according to the Alternative ESA Plan. 3. 0.23 acres of Cross Timbers upland
ЋЋ habitat shall be restored according to the Alternative ESA Plan. 4. Annual reporting during the
ЋЌ first three years describing the cumulative mitigation work performed and the survivability of the
ЋЍ plantings shall be submitted for staff review and inspection. 5. Plants installed as a part of the
ЋЎ proposed native flora revegetation are to be installed and maintained by the current property
ЋЏ owner/developer for a period of three (3) years following installation. Plants that are removed,
ЋА destroyed, or die within that three (3) year period are required to be replaced by the current property
ЋБ owner/developer to achieve 90% survival rate. 6. A bond, letter of credit, or escrow in the amount
ЋВ of $24,375.00 ($125.00 per tree-caliper inches to be planted) should be provided to the City within
ЌЉ 60 days of AESA18-0002 approval. Upon completion of the three (3)-year landscape
ЌЊ establishment period, the City shall inspect the trees and determine whether ninety (90) percent of
ЌЋ the trees are healthy and have a reasonable chance of surviving to maturity. Upon such a finding,
ЌЌ the City shall release the bond or letter of credit. In the absence of such a finding, the Applicant
ЌЍ shall be notified to replace any unhealthy or dead trees. If the applicant does not take remedial
ЌЎ steps to bring the property into compliance, the City shall make demand for payment on the cash
ЌЏ bond, surety bond, or letter of credit. The City may use all legal remedies to enforce this Subchapter
ЌА in addition to making demand on the security provided herein. 7. NEW Home Owner Association
ЌБ(HOA) documents shall be created and filed establishing Lot 14 Block F and Lot 20 Block 28 in
ЌВ Villages of Carmel Phase 4B to be owned by the HOA for the purpose of preserving the ESAs in
ЍЉ perpetuity. Any maintenance of these lots shall be done according to Subchapter 17 ESA
ЍЊ standards. Copy of the HOA documents shall be provided to the City no later than the final annual
ЍЋ report.
ЍЌ The following individual spoke during the Public Hearing:
ЍЍ Justin Bono, 9219, Arbor Trail Dr., Denton, Texas 75243. Supports the request.
ЊЊ
Њ
Ћ Commissioner Smith questioned the applicant if they are amenable to condition seven. Justin
Ќ Bono, stated yes they agree to the condition, on the Final Plat both areas are already considered a
Ѝ common area and there is no change in the intent to have the Home Owner Association (HOA)
Ў maintain those areas.
Џ
А Chair Rozell closed the Public Hearing.
Б
В Commissioner Tim Smith motioned, Commissioner Jason Cole seconded to approve with
ЊЉ conditions: 1. 195 tree-caliper inches, 35 American Beautyberry shrubs, Blackland Prairie seed
ЊЊ mix and Riparian Recovery seed mix and shall be planted. 2. 0.50 acres adjacent to the USACE
ЊЋ restoration project shall be planted according to the Alternative ESA Plan. 3. 0.23 acres of Cross
ЊЌ Timbers upland habitat shall be restored according to the Alternative ESA Plan. 4. Annual
ЊЍ reporting during the first three years describing the cumulative mitigation work performed and the
ЊЎ survivability of the plantings shall be submitted for staff review and inspection. 5. Plants installed
ЊЏ as a part of the proposed native flora revegetation are to be installed and maintained by the current
ЊА property owner/developer for a period of three (3) years following installation. Plants that are
ЊБ removed, destroyed, or die within that three (3) year period are required to be replaced by the
ЊВ current property owner/developer to achieve 90% survival rate. 6. A bond, letter of credit, or
ЋЉ escrow in the amount of $24,375.00 ($125.00 per tree-caliper inches to be planted) should be
ЋЊ provided to the City within 60 days of AESA18-0002 approval. Upon completion of the three (3)-
ЋЋ year landscape establishment period, the City shall inspect the trees and determine whether ninety
ЋЌ(90) percent of the trees are healthy and have a reasonable chance of surviving to maturity. Upon
ЋЍ such a finding, the City shall release the bond or letter of credit. In the absence of such a finding,
ЋЎ the Applicant shall be notified to replace any unhealthy or dead trees. If the applicant does not take
ЋЏ remedial steps to bring the property into compliance, the City shall make demand for payment on
ЋА the cash bond, surety bond, or letter of credit. The City may use all legal remedies to enforce this
ЋБ Subchapter in addition to making demand on the security provided herein. 7. NEW Home Owner
ЋВ Association (HOA) documents shall be created and filed establishing Lot 14 Block F and Lot 20
ЌЉ Block 28 in Villages of Carmel Phase 4B to be owned by the HOA for the purpose of preserving
ЌЊ the ESAs in perpetuity. Any maintenance of these lots shall be done according to Subchapter 17
ЌЋ ESA standards. Copy of the HOA documents shall be provided to the City no later than the final
ЌЌ annual report. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner Larry
ЌЍ Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner Mat
ЌЎ Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЌЏ G. Hold a public hearing and consider making a recommendation to City Council regarding
ЌА a request by Goodhorn Land Holdings LLC for a change in the zoning district and use
ЌБ classification from Neighborhood Residential Mixed Use 12 (NRMU-12) to a
ЌВ Neighborhood Residential Mixed Use District (NRMU) on approximately 8.7 acres of land
ЍЉ generally located on the north side of Audra Lane 110 feet east of Bayfield Street in the
ЍЊ City of Denton, Denton County, Texas. (Z18-0028, Audra Heights Phase II, Julie Wyatt).
ЍЋ
ЍЌ Chair Rozell opened the Public Hearing.
ЍЍ
ЊЋ
Њ Julie Wyatt, Senior Planner, presented Public Hearing item 3G. Wyatt stated if the Planning and
Ћ Zoning Commissions opts to recommend approval, the following overlay conditions are suggested
Ќ to increase conformance with the Future Land Use (FLU): 1. Restrict the permitted uses to single-
Ѝ family attached dwellings limited to a maximum twelve (12) units per acre \[L(40)\]. 2. Reduce the
Ў maximum building height to 40 feet. 3. Common area lots owned and maintained by the
Џ
А common area lots must be of sufficient size to accommodate the following entrance features
Б outside any existing or proposed easements located adjacent to Audra Lane: a six foot masonry
В screening wall and a Type B buffer. A Type B buffer is a ten (10) foot planted strip that includes
ЊЉ a combination of five (5) evergreen and deciduous trees and thirty (30) shrubs per one hundred
ЊЊ(100) linear feet.
ЊЋ Wyatt stated staff recommends denial of the request as it does not meet the Future Land Use
ЊЌ designation as required in the criteria for approval outlined in Denton Development Code Section
ЊЍ 35.3.4.B.
ЊЎ Chair Rozell questioned why staff believes Neighborhood Residential Mixed Use 12 (NRMU-12)
ЊЏ is better than Neighborhood Residential Mixed Use (NRMU). Wyatt stated the applicant was
ЊА proposing a specific project, and when staff analyzes a rezoning request all factors associated with
ЊБ the zoning district and what it could bring are considered. Wyatt continued to state staff concern
ЊВ was how the development fits with the future land use and the NRMU coming closer to the single
ЋЉ family residents.
ЋЊ
ЋЋ The following individuals spoke during the Public Hearing:
ЋЌ Alan Hermely, 1401 Brandywine Circle, Denton, Texas 76209. Opposed to the request.
ЋЍ Earl Escobar, 2570 Justin Rd Ste. 209, Lewisville, Texas 75077. Supports the request.
ЋЎ Austin Good, 2717 Gull Lake Dr., Plano, Texas 75025. Supports the request.
ЋЏ
ЋА The following individual requested not to speakduring the Public Hearing:
ЋБ Nancy Carson, 2908 Oakshire St., Denton, Texas 76209. Opposed to the request.
ЋВ
ЌЉ Earl Escobar, the applicant, provided a presentation regarding the development and the reason for
ЌЊ the zoning change request.
ЌЋ
ЌЌ Commissioner Smith questioned why the buffer area requirements are difficult to comply with.
ЌЍ Earl Escobar stated there is currently a gas main that runs along Audra Lane which has a 50 foot
ЌЎ easement to accommodate the gas main, there are no issues complying with the open space, but
ЌЏ
ЌА
ЌБ Commissioner Beck requested the tenant type that will be leasing to townhomes. Austin Good
ЌВ stated they will be targeting young families.
ЍЉ
ЍЊ Chair Rozell closed the Public Hearing.
ЍЋ
ЍЌ
ЊЌ
Њ Commissioner Tim Smith motioned, Commissioner Larry Beck seconded to approve with staffs
Ћ limitations: 1. Restrict the permitted uses to single-family attached dwellings limited to a
Ќ maximum twelve (12) units per acre \[L (40)\]. 2. Reduce the maximum building height to 40 feet.
Ѝ And change condition three as follows: 3. A six -foot masonry screening wall and a Type B buffer
Ў(10-foot planted strip with 5 evergreen and deciduous trees and 30 shrubs per 100 linear feet) shall
Џ be required between the subject property and Audra Lane. Motion approved (7-0). Commissioner
А Alfred Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair
Б Andrew Rozell "aye", Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and
В Commissioner Tim Smith "aye".
ЊЉ Chair Rozell called a recess at 9:22 p.m.
ЊЊ
ЊЋ Chair Rozell reconvened the Regular Meeting at 9:32 p.m.
ЊЌ
ЊЍ H. Hold a public hearing and consider making a recommendation to City Council regarding
ЊЎ a request by Second Hand Sports & Game Swap LLC for a Specific Use Permit to allow
ЊЏ for a vehicle repair use on approximately 0.57 acre. The property is generally located on
ЊА the south side of E. McKinney Street, approximately 135 feet west of Oakland Street in the
ЊБ City of Denton, Denton County, Texas. (S18-0007, Dent One - Auto Hail Repair, Hayley
ЊВ Zagurski).
ЋЉ
ЋЊ Chair Rozell opened the Public Hearing.
ЋЋ
ЋЌ Hayley Zagurski, Senior Planner, presented Public Hearing item 3H. Zagurski stated Staff
ЋЍ recommends approval of this request, with the following conditions: 1. The vehicle repair use shall
ЋЎ be limited to the approximately 600 square foot one-story building area shown on the attached Site
ЋЏ Plan. 2. All customer vehicles located at the facility for either repair or pick-up following repair
ЋА work shall be kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan.
ЋБ 3.The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and
ЋВ maintained so long as a vehicle repair use is located on the subject property, unless the vehicle
ЌЉ storage area is paved and striped as a parking lot. 4. The proposed Type C landscape buffer shown
ЌЊ on the Site Plan along the southern property line shall be installed and maintained in accordance
ЌЋ ype C landscape buffer shall be installed
ЌЌ along the eastern property line along the existing wood fence up to the southern edge of the existing
ЌЍ vacant building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
ЌЎ within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree
ЌЏ list in the Site Design Criteria Manual. 5. No storage of inoperable vehicles shall be permitted on
ЌА the subject property. 6. Failure to adhere to the conditions stated above may result in revocation
ЌБ of the SUP in accordance with DDC Section 35.6.6.
ЌВ
ЍЉ The following individual spoke during the Public Hearing:
ЍЊ CJ Moyo, 208 E. McKinney St., Denton, Texas 76201. Supports the request.
ЍЋ
ЍЌ Commissioner Smith stressed to the applicant there are rules in place that need to be followed from
ЍЍ the City and for the safety of those around us.
ЊЍ
Њ
Ћ Chair Rozell closed the Public Hearing
Ќ
Ѝ Commissioner Mat Pruneda motioned, Commissioner Jason Cole seconded to approve Public
Ў Hearing item 3H with staffs conditions: 1. The vehicle repair use shall be limited to the
Џ approximately 600 square foot one-story building area shown on the attached Site Plan. 2. All
А customer vehicles located at the facility for either repair or pick-up following repair work shall be
Б kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan. 3. The
В proposed 6-foot wood screening fence shown on the Site Plan shall be installed and maintained so
ЊЉ long as a vehicle repair use is located on the subject property, unless the vehicle storage area is
ЊЊ paved and striped as a parking lot. 4. The proposed Type C landscape buffer shown on the Site
ЊЋ Plan along the southern property line shall be installed and maintained in accordance with the
ЊЌ e proposed Type C landscape buffer shall be installed along
ЊЍ the eastern property line along the existing wood fence up to the southern edge of the existing
ЊЎ vacant building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
ЊЏ within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree
ЊА list in the Site Design Criteria Manual. 5. No storage of inoperable vehicles shall be permitted on
ЊБ the subject property. 6. Failure to adhere to the conditions stated above may result in revocation
ЊВ of the SUP in accordance with DDC Section 35.6.6. Motion approved (7-0). Commissioner Alfred
ЋЉ Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew
ЋЊ Rozell "aye", Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and
ЋЋ Commissioner Tim Smith "aye".
ЋЌ I. Hold a public hearing and consider making a recommendation to City Council regarding
ЋЍ a request by the City of Denton for a change in the zoning district and use classification on
ЋЎ a site made up of fifteen adjacent tracts of land, including a change from Downtown
ЋЏ Residential 1 (DR-1) to Downtown Commercial General (DC-G) on one approximately
ЋА 0.39-acre tract, from a mixed zoning of DR-1 and Neighborhood Residential 4 (NR-4) to
ЋБ DC-G on two tracts totaling approximately 13.85 acres, from NR-4 to DC-G on nine tracts
ЋВ totaling approximately 22.07 acres, and from Neighborhood Residential Mixed-Use 12 to
ЌЉ DC-G on three tracts totaling approximately 8.81 acres. The subject site, composed of all
ЌЊ fifteen of the tracts mentioned above and totaling approximately 45.13 acres, is generally
ЌЋ located on the southeast side of Mingo Road, north of Paisley Street, northwest of
ЌЌ Lattimore Street, and west of Pertain Street (Z18-0027b, Fleet Services Facility, Sean
ЌЍ Jacobson).
ЌЎ
ЌЏ Chair Rozell opened the Public Hearing.
ЌА
ЌБ Sean Jacobson, Assistant Planner, presented Public Hearing item 3I. Jacobson stated the request
ЌВ is to rezone from Downtown Residential 1 (DR-1), Neighborhood Residential (NR-4), and
ЍЉ Neighborhood Residential Mixed Use 12 (NRMU-12) to a Downtown Commercial General (DC-
ЍЊ G) Zoning District on approximately 45.13 acres of land.
ЍЋ Commissioner Smith stated his disappointment in the City of Denton for not correcting the zoning
ЍЌ sooner than now, but is happy the City of Denton is now correcting their zoning to support the use.
ЊЎ
Њ Jerry Drake, First Assistant Attorney, stated on behalf of the City of Denton the service center
Ћ facility has been there since he started working for the City of Denton more than thirty years ago,
Ќ and the last City wide rezoning was in 2002; City of Denton built the structure in
Ѝ account for the existing uses.
Ў
Џ Commissioner Ellis stated she was concerned with the change to DC-G, but looking at the draft
А zoning map it is labeled public facility which would eliminate other uses.
Б
В The following individual requested to speak:
ЊЉ Leonard Chavez, 921 N. Ruddell St., Denton, Texas 76209. Opposed to the request.
ЊЊ Carolyn Griffin, 916 N. Wood St., Denton, Texas 76209. Opposed to the request.
ЊЋ Patsy Nash, 916 N. Wood St., Denton, Texas76209. Opposed to the request.
ЊЌ Karen Rodriguez, 821 N. Ruddell St., Denton, Texas 76209. Opposed to the request.
ЊЍ
ЊЎ Scott McDonald, Director of Development Service, stated the plan is some renovations to the Fleet
ЊЏ Services building and parking lot improvements, with the parking lot improvements the drainage
ЊА issues will be taken into consideration.
ЊБ
ЊВ Commissioner Beck questioned if the large trucks have egress and ingress on Ruddell Street.
ЋЉ McDonald stated there has not been a traffic management plan for this area and are attempting to
ЋЊ correct misdirection.
ЋЋ
ЋЌ Chair Rozell closed the Public Hearing.
ЋЍ
ЋЎ Commissioner Tim Smith motioned, Commissioner Mat Pruneda seconded to approve Public
ЋЏ Hearing item 3I. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner
ЋА Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner
ЋБ Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЋВ
ЌЉ J. Hold a public hearing and consider making a recommendation to City Council regarding
ЌЊ a request by Redmon Ebony Inc. for a change in the zoning district and use classification
ЌЋ from Neighborhood Residential 4 (NR-4) to Neighborhood Residential Mixed Use
ЌЌ(NRMU) zoning district and use classification on approximately 0.82 acres of land. The
ЌЍ subject property is generally located on the north side of Robertson Street, approximately
ЌЎ 300 feet east of Skinner Street in the City of Denton, Denton County, Texas. (Z19-0001,
ЌЏ Sweet Y, Ron Menguita).
ЌА
ЌБ Chair Rozell opened the Public Hearing.
ЌВ
ЍЉ Ron Menguita, Principal Planner, presented Public Hearing item 3J. Menguita stated the request
ЍЊ is for a zoning change from Neighborhood Residential 4 (NR-4) to a Neighborhood Residential
ЍЋ Mixed Use (NRMU). Mengita stated staff does recommend approval of the zoning change request.
ЍЌ
ЍЍ Commissioner Smith questioned why staff is not recommending any overlay restrictions.
ЍЎ Menguita stated staff felt there was no need for overlay restrictions, and if there were issues
ЍЏ regarding the height they would be addressed with the development standards.
ЊЏ
Њ
Ћ Commissioner Beck questioned why the home next door is included in the rezoning, Menguita
Ќ stated the property owner is requesting to rezone all four lots that could potentially be used as
Ѝ storage for the restaurant.
Ў
Џ Commissioner Pruneda stated he is for allowing the use, but is nervous to agree with the zoning
А change, but likes the idea to add an overlay and wants to make sure the character of the area is
Б preserved.
В
ЊЉ Commissioner Sanchez stated the neighborhood needs to be remembered for its history and
ЊЊ bringing back part of the history will help.
ЊЋ
ЊЌ Commissioner Ellis stated she understands the concerns, but every tract of land has its own set of
ЊЍ unique circumstances, this project looks like a revitalization of history and neighborhood services.
ЊЎ
ЊЏ The following individuals spoke during the Public Hearing:
ЊА Tammy Bradley, 729 Alexander St, Denton, Texas 76205. Supports the request.
ЊБ Ray Redmon 724 Morse Street, Denton, Texas 76205. Supports the request.
ЊВ Mary B. Wright, 2745 Mill Pond Rd, Denton, Texas 76209. Supports the request.
ЋЉ George Ferrie, 2932 Stockton Street, Denton, Texas 76209. Supports the request.
ЋЊ Jennifer Lane, 1526 Willowword Street, Denton, Texas 76205. Supports the request.
ЋЋ
ЋЌ Chair Rozell closed the Public Hearing.
ЋЍ
ЋЎ Commissioner Smith made a motion to approve the zoning change with the following condition
ЋЏ to restrict the use of the NRMU area to restaurant use only. Commissioner Beck seconded.
ЋА Commissioner Pruneda questioned the property owner if by placing the overlay would be impeding
ЋБ any future plans. Redmon, the property owner, stated it should not impede.
ЋВ
ЌЉ Chair Rozell requested Commissioner Smith to remove the amendment. Commissioner Smith
ЌЊ denied the request.
ЌЋ
ЌЌ Chair Andrew Rozell motioned, Commissioner Jason Cole seconded to make the amended motion
ЌЍ to rezone from NR-4 to NRMU with no conditions the primary motion. Motion approved (6-1).
ЌЎ Commissioner Alfred Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole
ЌЏ"aye", Chair Andrew Rozell "aye", Commissioner Mat Pruneda "aye", and Commissioner Margie
ЌА Ellis "aye". Commissioner Tim Smith "nay".
ЌБ
ЌВ Chair Andrew Rozell motioned, Commissioner Jason Cole seconded to approve Public Hearing
ЍЉ 3J with no conditions. Motion Approved (7-0). Commissioner Alfred Sanchez "aye",
ЍЊ Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye",
ЍЋ Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЍЌ
ЍЍ Chair Rozell called a recess at 11:26 p.m.
ЍЎ
ЍЏ Chair Rozell reconvened the Regular Meeting 11:31 p.m.
ЊА
Њ
Ћ
Ќ K. Hold a public hearing and consider making a recommendation to City Council regarding
Ѝ a request by Lee Allison of Allison Engineering, on behalf of Anthony Marks, for a
Ў Specific Use Permit to allow for an Accessory Dwelling Unit behind an existing residence
Џ on approximately 0.5374 of an acre. The property is generally located on the south side of
А Roberts Street, west of Brown Drive, in the City of Denton, Denton County, Texas. (S19-
Б 0001, 606 Roberts Accessory Building, Sean Jacobson).
В
ЊЉ Chair Rozell opened the Public Hearing.
ЊЊ
ЊЋ Sean Jacoson, Assistant Planner, presented Public Hearing item 5K. Jacobson stated the request is
ЊЌ for a Specific Use Permit (SUP) to allow for an Accessory Dwelling Unit behind an existing
ЊЍ residence. Staff does recommend approval of the request as it is compatible with the surrounding
ЊЎ property and conforms to the SUP approval criteria.
ЊЏ
ЊА The following individuals spoke during the Public Hearing:
ЊБ Lee Allison, 2415 N. Elm Street, Denton, Texas 76201. Supports the request.
ЊВ Sonia Whiddon, 528 Roberts Street, Denton, Texas 76209. Supports the request.
ЋЉ
ЋЊ The following individuals requested not to speak during the Public Hearing:
ЋЋ Gary Hayden, 2106 North Bell Ave., Denton, Texas 76209. Supports the request.
ЋЌ Deb Conte, 2106 North Bell Ave., Denton, Texas 76209. Supports the request.
ЋЍ
ЋЎ Chair Rozell closed the Public Hearing.
ЋЏ
ЋА Commissioner Mat Pruneda motioned, Commissioner Jason Cole seconded to approve Public
ЋБ Hearing item 5K. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner
ЋВ Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Mat Pruneda
ЌЉ"aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЌЊ
ЌЋ L. Hold a public hearing and consider making a recommendation to City Council regarding a
ЌЌ proposed revision to the Denton Development Code; specifically to amend Subchapters 13 and 17
ЌЍ related to tree preservation, landscape standards, and environmentally sensitive area standards.
ЌЎ(DCA18-0008, Conservation and Landscape Code, Hayley Zagurski).
ЌЏ
ЌА Chair Rozell opened the Public Hearing.
ЌБ
ЌВ Hayley Zagurski, Senior Planner, stated there currently are no additional updates to the draft; staff
ЍЉ is still taking in feedback from the development community and requested to postpone to a date
ЍЊ certain of March 6, 2019.
ЍЋ
ЍЌ Commissioner Tim Smith motioned, Commissioner Margie Ellis seconded to table Public Hearing
ЍЍ item 5L to the March 6, 2019 Planning and Zoning Commission meeting. Motion approved (7-0).
ЍЎ Commissioner Alfred Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole
ЊБ
Њ"aye", Chair Andrew Rozell "aye", Mat Pruneda "aye", Commissioner Margie Ellis "aye", and
Ћ Commissioner Tim Smith "aye".
Ќ
Ѝ 4. PLANNING & ZONING COMMISSION PROJECT MATRIX
Ў A. Planning and Zoning Commission project matrix.
Џ
А Richard Cannone, Deputy Director of Development Services, stated Pritam Deshmukh, Deputy
Б City Engineer will be speaking regarding matrix items at the March 6, 2019. Cannone
В recommended to discuss the RD-5x zoning at the next special called meeting on February 27,
ЊЉ 2019.
ЊЊ
ЊЋ Commissioner Beck questioned if Deshmukh will be discussing the mobilty plan. Cannone stated
ЊЌ Deshmukh will be speaking some on the mobility plan but will have it coming before the
ЊЍ Commission once they have a consultant lined up.Commissioner Beck requested staff to address
ЊЎ the traffic issue behind the service center. Commissioner Ellis requested the time framing for
ЊЏ updating Bernard Street due to safety concerns. Commissioner Smith requested the staff to look at
ЊА other City of Denton properties that could potentially be zoned incorrectly. Chair Rozell requested
ЊБ the Commissioners send items to staff for the implementation of the policies and procedures.
ЊВ
ЋЉ Chair Rozell closed Regular Meeting at 11:51 p.m.
ЊВ
S:\\Legal\\Our Documents\\Ordinances\\19\\S18-0007.docx
ORDINANCE NO. ______________
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE
PERMIT TO ALLOW FOR VEHICLE REPAIR USE ON AN APPROXIMATELY 0.57 ACRE
SITE, GENERALLY LOCATED ON THE SOUTH SIDE OF E. MCKINNEY STREET,
APPROXIMATELY 135 FEET WEST OF OAKLAND STREET, IN THE CITY OF DENTON,
DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM
AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE. (S18-0007, Dent One Auto Hail Repair)
WHEREAS, Sijabuliso Moyo of Dent One, on behalf of the property owner, Second Hand
Sports & Game Swap LLC, has applied for a Specific Use Permit (SUP) to allow for a vehicle
repair use on approximately 0.57 acre, within the Downtown Commercial General (DC-G) zoning
district and use classification, as described and shown in Exhibit A the Property);
and
WHEREAS, on February 20, 2019, the Planning and Zoning Commission, in compliance
with the laws of the State of Texas, having given the requisite notices by publication and otherwise,
and having afforded full and fair hearings and to all property owners interested in this regard,
recommended approval \[7-0\] of the requested SUP, subject to conditions; and
WHEREAS, on March 19, 2019, the City Council likewise conducted a public hearing as
required by law to consider the Specific Use Permit request. Upon consideration, the City Council
hereby finds that the request is consistent with the Denton Plan and federal, state, and local law,
and that the Applicant has agreed to comply with all provisions of the Denton Development Code
including but not limited to, this Ordinance, and has further agreed to
comply with the additional restrictions and conditions set forth herein; and
WHEREAS, the City Council has determined that it will be beneficial to Denton and its
citizens to grant the SUP; that such grant will not be detrimental to the public welfare, safety, or
health; and that the SUP should be granted; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance are
incorporated herein by reference and found to be true.
SECTION 2. The SUP to allow the vehicle repair use on the Property as shown on the site
plan attached and incorporated herein as , is hereby approved, subject to the following
conditions:
1. The vehicle repair use shall be limited to the approximately 600 square foot one-story
building area shown on the attached Site Plan.
2. All customer vehicles located at the facility for either repair or pick-up following repair
work shall be kept behind the 6-foot wood fence in the gravel storage area shown on the
Site Plan.
3. The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and
maintained so long as a vehicle repair use is located on the subject property, unless the
vehicle storage area is paved and striped as a parking lot.
4. The proposed Type C landscape buffer shown on the Site Plan along the southern
code. In addition, the proposed Type C landscape buffer shall be installed along the eastern
property line along the existing wood fence up to the southern edge of the existing vacant
building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy
tree list in the Site Design Criteria Manual.
5. No storage of inoperable vehicles shall be permitted on the subject property.
6. Failure to adhere to the conditions stated above may result in revocation of the SUP in
accordance with DDC Section 35.6.6.
SECTION 3. The attached site plan provided in Exhibit B specifies the following
requirements, and are incorporated as requirements of the SUP.
1. The vehicle repair use is associated with a 600 square foot existing building located at
208 E. McKinney Street.
2. Two parking spaces are dedicated to the Auto Repair use.
3. Vehicle storage is indicated to be screened by a 6-foot tall wooden fence to be located
in between the retail store building at 204 E. McKinney Street and the automotive repair
building.
4. The proposed maximum lot coverage is 20,803 square feet (83.2% of the lot area). This
amount may be reduced due to the installation of the additional landscape buffer along
the eastern property line as indicated in Section 2.
SECTION 4. Failure to Comply. Except as otherwise stated above, all terms of the SUP
shall be complied with prior to issuance of a Certificate of Occupancy. Failure to comply with any
term or condition of the Ordinance will result in the SUP being declared null and void, and of no
force and effect. The SUP is issued to the entity named above runs with the land, and is assignable
and transferable to subsequent owners of the Property.
SECTION 5. SUP Regulations. Upon notice to the property owner and a hearing before
the City Council, a SUP may be revoked or modified if: 1. There is one or more of the conditions
imposed by this Ordinance that has not been met or has been violated on the Property; or 2. The
SUP was obtained or extended by fraud or deception; or 3. As otherwise permitted by law and/or
Denton's Zoning Ordinance.
SECTION 6. Unlawful use. It shall be unlawful for any person, firm, entity, or corporation
to make use of the above-referenced Property in some manner other than as authorized by the
Denton Codes of Ordinances and this Ordinance.
SECTION 7. Severability. If any provision of this ordinance or the application thereof to
any person or circumstance is held invalid by any court, such invalidity shall affect the validity of
the provisions or applications, and to this end the provisions of this ordinance are severable.
SECTION 8. Penalty. Any person, firm, entity or corporation violating any provision of
this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00 for each violation.
Each day that a provision of this ordinance is violated shall constitute a separate and distinct
offense. The penal provisions imposed under this Ordinance shall not preclude Denton from filing
suit to enjoin the violation and it retains all legal rights and remedies available to it under local,
state and federal law.
SECTION 9. In compliance with Section 2.09(c) of the Denton Charter, this ordinance
shall become effective fourteen (14) days from the date of its passage, and the City Secretary is
hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-
Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the
date of its passage.
The motion to approve this ordinance was made by __________________________ and
seconded by _________________________________, the ordinance was passed and approved by
the following vote \[___ - ___\]:
Aye Nay Abstain Absent
Mayor Chris Watts: ______ ______ ______ ______
Gerard Hudspeth, District 1: ______ ______ ______ ______
Keely G. Briggs, District 2: ______ ______ ______ ______
Don Duff, District 3: ______ ______ ______ ______
John Ryan, District 4: ______ ______ ______ ______
Deb Armintor, At Large Place 5: ______ ______ ______ ______
Paul Meltzer, At Large Place 6: ______ ______ ______ ______
PASSED AND APPROVED this the _____ day of _____________, 2019.
_______________________________________
CHRIS WATTS, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY: /s/Jerry E. Drake, Jr.
Exhibit A
Legal Description and Location Map
Being all that certain tract or parcel of land situated in the Hiram Sisco Survey Abstract Number 1184,
Denton County, Texas and being all of Tract One and all of Tract Two described in a deed from James W.
Hardin to Wendell Smith and Jeff Smith as recorde-R0059606 of
the Real Property Records, Denton County, Texas, and being more particularly described as follows
BEGINNING at a X-CUT set in the South line of East McKinney Street and being the Northwest corner of
the herein described tract and the Northwest corner of said Tract Two,
THENCE South 88 Degrees 08 Minutes 39 Seconds East with the South line of the said street a distance of
163.87 feet to a X-CUT set for the Northeast corner of the herein described tract and the Northeast corner
of said Tract One and being the Northwest corner of Lot 5R, Block 18 of the replat of the Original Town of
Denton, an addition to the City of Denton, Denton County, Texas as recorded in Cabinet E, Page 291 of
the Plat Records of Denton County, Texas,
THENCE South 00 Degrees 11 Minutes 45 Seconds West with the West line of said Lot 5R, Block 18 a
distance of 150.00 feet to a point for the Southeast corner of the herein described tract and the Southwest
corner of said Lot 5R, Block 18 and the Northwest corner of the remainder of a tract of land described in
-R0050767
of the Real Property Records of Denton County, Texas and being the Northeast corner of a tract of land
described in a deed from Denton Melrose, LP to Edward C. Prout and Satorn B. Prout as recorded in
Volume 5044, Page 1467 of the Real Property Records of Denton County, Texas and being the Southeast
corner of said Tract One said point bears North 78 Degrees 56 Minutes 47 Seconds East a distance of 2.49
THENCE West with the North line of said Prout tract a distance of 160.80 feet to a X-CUT set 8.2 feet South
and 1.9 feet West of a building corner for the Southwest corner of the herein described tract and the
Southwest corner of said Tract Two,
THENCE North 00 Degrees 11 Minutes 45 Seconds East with the West line of the said Tract Two a distance
of 155.31 feet to the POINT OF BEGINNING and enclosing 0.574 acres of land more or less.
Exhibit B
Site Plan
DENTON COUNTY, TEXAS
CITY OF DENTON
REGISTRATION # 10095100
WWW.COLEMANSURVEYING.COM
DENT ONE, INC.
IN THE H. SISCO SY. A-1184
PH(940)565-8215, FAX (940)565-9800,
CLIENT
5,000 SQ. FT. OF LAND
Land Surveying
Coleman & Assoc.
DENT ONE - AUTO HAIL REPAIRS
SPECIFIC USE PERMIT SITE PLAN
Z:\\2100-2199\\18-2155 H SISCO SY A-1184 (DENT ONE PAINTLESS DENT REPAIR) SUP\\CARLSON\\2155-GRID.dwg, 1/3/2019 3:49:47 PM
Planning Staff Analysis
S18-0007/Dent One Auto Hail Repair
City Council District 1
March 19, 2019
REQUEST:
Hold a public hearing and consider adoption of an ordinance for a Specific Use Permit to allow
for a vehicle repair use on approximately 0.57 acre. The property is generally located on the
south side of E. McKinney Street, approximately 135 feet west of Oakland Street in the City of
Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for
violations thereof; providing a severability clause and an effective date. (S18-0007, Dent One
Auto Hail Repair, Hayley Zagurski).
OWNER:
Victor Ambrosio, Second Hand Sports & Game Swap LLC
APPLICANT:
Sijabuliso Moyo, Dent One
BACKGROUND:
On February 20, 2019 the Planning and Zoning Commission held a public hearing regarding this
-
0\]. At the public hearing the applicant spoke and provided information regarding the business
operations of Dent One. No individuals from the public spoke about the request.
The request is for a Specific Use Permit (SUP) to permit a vehicle repair use on an
approximately 0.57-acre property generally located on the south side of E. McKinney Street,
approximately 135 feet west of Oakland Street. The subject property is zoned Downtown
Commercial General (DC-G) District, which permits vehicle repair only with an SUP.
The subject property consists of two separate parcels of land, both parcels are owned by Second
Hand Sports & Game Swap LLC. There are currently three existing businesses located on the
property:
Second Hand Sports (204 E. McKinney)
Ambros Tacos y Mas (208 E. McKinney)
Dent One Auto Hail Repairs (208 E. McKinney).
Second Hand Sports is located in a separate building on the western side of the property. Ambros
Tacos and Dent One are located within the same building, with the restaurant located in the front
approximately 430 square feet of the building and the vehicle repair use located in rear
approximately 600 square feet of the building. A third, currently vacant, building is also located
on the eastern portion of the property. A parking lot containing six spaces is located in the central
portion of the property, with a large gravel vehicle storage area located south of the existing
parking lot.
This request originated as a code violation case. In May 2017 a notice of violation was first
issued for Dent One operating without a certificate of occupancy (CO). An initial CO application
was made in July of 2017, but the application was denied because the vehicle repair use requires
an SUP within the DC-G District. Over the next year multiple applications were made for
permits and SUPs, but the applications were never completed. Additional citations were issued
for continuing operations without a CO, and the applicant appeared in Court once and was fined
for the violation. A more detailed timeline of events is provided in Exhibit 7. In July 2018 a
complete SUP application was submitted and reviewed for the project. Over the past few months
staff has worked with the applicant to review this request and determine what can be done to
design standards.
SITE DATA:
The subject property includes a total of approximately 0.57 acre of land that is comprised of two
separate parcels. As described above, the property is currently developed with three separate
buildings and associated parking and gravel storage areas.
The property is zoned DC-G District, and it is located within the Central Business District.
The property has approximately 160 feet of frontage on East McKinney Street. The Mobility
Plan classifies East McKinney Street as a secondary arterial roadway.
SURROUNDING ZONING AND LAND USES:
Northwest: North: Northeast:
Zoning: Downtown Zoning: DR-2 District Zoning: DR-2 District
Residential 2 (DR-2) District
Use: City Hall Use: City Hall and Civic
Use: City Hall and Post Office Center
West: East:
Zoning: DC-G District Zoning: DC-G District
SUBJECT PROPERTY
Use: Bar/Restaurant uses Use: Professional Services and
Offices
Southwest: South: Southeast:
Zoning: DC-G District Zoning: DC-G District Zoning: DC-G District
Use: Multi-family dwellings Use: Multi-family Dwellings Use: Professional Services and
and Bar/Restaurant uses Offices
CONSIDERATIONS:
Section 35.6.4 of the DDC outlines the criteria for approval of a SUP. These criteria are as
follows:
a. That the use would be in conformance with all standards within the zoning district
in which the use is proposed to be located, and in conformance with The Denton
Plan and federal, state, or local law.
Development of the subject property pre-dates the current DC-G zoning.
Therefore, the site does not currently meet the standards of the zoning district of
the Denton Development Code, specifically with regard to:
i. Land Use Vehicle Repair uses require a SUP within the DC-G District.
Although the subject property was zoned Commercial (C) (a district which
permitted vehicle repair by right) prior to the 2002 City-wide rezoning,
records available do not indicate that a vehicle repair use has been in
continual operation at this location. Therefore, the use cannot be deemed
legally nonconforming or a special exception, and an SUP is required for
the use to continue on the property.
ii. Screening at the right-of-way Section 35.13.9 of the DDC requires that
all outside storage and all inoperable vehicles be screened from all rights-
of-way. Although no screening is currently in place, the Site Plan indicates
a proposed 6-foot wood screening fence with gates to be constructed
behind the existing parking spaces and in between the Second Hand Sports
building and the building currently occupied by Dent One.
iii. Buffering Section 35.13.8 of the DDC requires landscaped compatibility
buffers in between certain uses. Vehicle repair is a commercial use, which
requires a Type C buffer. A Type C buffer is a 15-foot wide planting area
that includes a combination of 6 trees and 25 shrubs per 100 linear feet.
The Site Plan indicates a proposed Type C buffer along the southern
property line where the site abuts an existing multi-family development.
iv. Minimum Landscape Area and Tree Canopy Within the DC-G District, a
minimum of 15% landscape area and a minimum of 20% tree canopy is
required. The Site Plan indicates that with the addition of the Type C
buffer along the southern property line and the maintenance of an existing
grassy area the site would achieve a total of 16.8% landscape area. The
Site Plan indicates 9 trees proposed within the buffer, but the proposed
trees (redbuds and mountain laurels) will have an estimated mature canopy
of less than 10% of the lot area. While this is an improvement over the
existing site conditions in which there are no trees, the site will not meet
the minimum requirements for the DC-G District as proposed.
In addition to the proposed buffer shown on the Site Plan, staff
recommends the Type C buffer be extended along the existing fence on
the eastern property line to aid in buffering noise from the vehicle repair
use. This would include the planting of at least 3 additional trees.
Additionally, Staff recommends that the proposed deciduous ornamental
trees (redbuds) within the buffer be replaced with a deciduous tree from
the Medium or Large Canopy tree list in the Site Design Criteria Manual
to enhance the amount of tree canopy on the site to closer to the minimum
20% required.
v. Street Trees Section 35.13.7 of the DDC requires commercial
developments to have one street tree for every 45 linear feet of frontage.
However, as is shown on the Site Plan, there is existing pavement all
along the property frontage, and no street trees are proposed to be added.
b. A SUP shall only be granted if all of the following conditions have been met:
i. That the specific use will be compatible with and not injurious to the use
and enjoyment of other property nor significantly diminish or impair
property values within the immediate vicinity.
ii. That the establishment of the specific use will not impede the normal and
orderly development and improvement of surrounding vacant property.
iii. That adequate utilities, access roads, drainage and other necessary
supporting facilities have been or will be provided.
iv. The design, location and arrangement of all driveways and parking spaces
provides for the safe and convenient movement of vehicular and
pedestrian traffic without adversely affecting the general public or
adjacent developments.
v. That adequate nuisance prevention measures have been or will be taken to
prevent or control offensive odor, fumes, dust, noise and vibration.
vi. That directional lighting will be provided so as not to disturb or adversely
affect neighboring properties.
vii. That there is sufficient landscaping and screening to ensure harmony and
compatibility with adjacent property.
The vehicle repair use in question has existed on the subject property for over a
year. As it exists today the use is not entirely compatible with the use and
enjoyment of surrounding properties because vehicles are stored outside and not
screened from the right-of-way and very little landscaping and buffering exists on
the site. The use itself is necessary and can be beneficial in a downtown area
where people both live and work because it provides a frequently needed service.
With required screening in place for the storage areas and landscaping installed to
buffer the site from surrounding properties this use could be made more
compatible with other exiting development in the area.
All of the surrounding properties are currently developed, so this continued use
would not impede development or improvements to surrounding properties. The
driveways for this site are already in place, as are the parking and vehicle storage
areas. The Denton Development Code does not require parking for commercial
uses within the Central Business District, so the parking that exists on the
property today does not have to be increased to meet Code requirements. With the
addition of a screening fence and gates, the flow of traffic through the site should
be better defined.
No changes are proposed at this time to site lighting; however, the vehicle repair
use does have the potential generate noise and fumes. The proposed Type C
buffer shown on the site plan and the additions to the buffer recommended by
Staff would aid in reducing these potential nuisances for neighboring properties.
c. That adequate capacity of infrastructure can and will be provided to and through
the subject property.
The vehicle repair use exists on the property today, and the building is currently
served by utilities and roadway infrastructure.
d. That the Special Use is compatible with and will not have an adverse impact on
the surrounding area. When evaluating the effect of the proposed use on the
surrounding area, the following factors shall be considered in relation to the
target use of the zone:
i. Similarity in scale, bulk, and coverage.
ii. Generation of traffic and effects on surrounding streets. Increases in
pedestrian, bicycle, and mass transit use are considered beneficial
regardless of capacity of facilities.
iii. Architectural compatibility with the impact area.
iv. Air quality, including generation of dust, odors, and other environmental
pollutants.
v. Generation of noise, light, and glare.
vi. The development of adjacent property as envisioned in the Denton Plan.
vii. Other factors found to be relevant to satisfy the requirements of this
Chapter.
As is indicated above, the use has been in place on the property for over one and a
half years, and the development of the site itself dates back several decades, with
the first CO for the site address being for a fuel station in the 1970s. The
development of the site is consistent in scale and bulk with surrounding
properties. The continuation of this existing use would not contribute to additional
traffic.
Buffering and screening as described above is needed on the site to aid in
nuisance mitigation and to improve the aesthetics of the subject property from the
adjacent right-of-way.
The Denton Plan designates the subject property and surrounding area as
Downtown Denton. This designation calls for a mixture of high-density
residential development with commercial, office, civic, and other uses. Although
the vehicle repair use does have more nuisance potential than other commercial
uses, it is a necessary use in a full-service downtown area. With proper screening
and buffering the use can help promote a downtown that serves the residential and
STAFF RECOMMENDATION:
Staff recommends approval of this request, with the following conditions:
1. The vehicle repair use shall be limited to the approximately 600 square foot one-story building
area shown on the attached Site Plan.
2. All customer vehicles located at the facility for either repair or pick-up following repair work
shall be kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan.
3. The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and
maintained so long as a vehicle repair use is located on the subject property, unless the vehicle
storage area is paved and striped as a parking lot.
4. The proposed Type C landscape buffer shown on the Site Plan along the southern property
addition, the proposed Type C landscape buffer shall be installed along the eastern property
line along the existing wood fence up to the southern edge of the existing vacant building
shown on the Site Plan. Additionally, the proposed deciduous ornamental trees within the
buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree list in
the Site Design Criteria Manual.
5. No storage of inoperable vehicles shall be permitted on the subject property.
6. Failure to adhere to the conditions stated above may result in revocation of the SUP in
accordance with DDC Section 35.6.6.
PUBLIC NOTIFICATION:
To comply with the public hearing notice requirements, 11 notices were sent to property owners
within 200 feet of the subject property, 68 courtesy notices were sent to physical addresses
within 500 feet of the subject property, a notice was published in the Denton Record Chronicle,
and the applicant was required to place a sign on the property.
The applicant has not held a neighborhood meeting as of the issuance of this report. Two written
responses were received from adjoining property owners who oppose the request. One indicated
that the opposition was due to noise and parking concerns. The property owner provided a
written response form indicating support of the request.
S18-0007
Site Location
050100200
Feet
SITE
µ
Parcels
Roads
Date: 8/7/2018
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
S18-0007
Zoning Map
DR-2
DC-G
050100200
Feet
SITEDC-G
µ
DR-2
Parcels
Roads
Date: 8/7/2018
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
S18-0007
Future Land Use Map
Low
Downtown
Residential
Compatibility Area
PECAN
WALNUT
Downtown
Denton
SYCAMORE
0125250500
Feet
SITEDowntown Compatibility Area
Future Land Use
µ
Neighborhood / University Compatibility Area
Low Residential
Parcels
Downtown Denton
Roads
Date: 8/7/2018
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
DENTON COUNTY, TEXAS
CITY OF DENTON
REGISTRATION # 10095100
WWW.COLEMANSURVEYING.COM
DENT ONE, INC.
IN THE H. SISCO SY. A-1184
PH(940)565-8215, FAX (940)565-9800,
CLIENT
5,000 SQ. FT. OF LAND
Land Surveying
Coleman & Assoc.
DENT ONE - AUTO HAIL REPAIRS
SPECIFIC USE PERMIT SITE PLAN
Z:\\2100-2199\\18-2155 H SISCO SY A-1184 (DENT ONE PAINTLESS DENT REPAIR) SUP\\CARLSON\\2155-GRID.dwg, 1/3/2019 3:49:47 PM
Below is a timeline of events that has led to this SUP application:
May 2017 A Notice of Violation was issued for Dent One operating a business without
a certificate of occupancy (CO).
June 2017 Dent One Hail Repair applied for a CO for a vehicle repair use, and the CO
was denied because an SUP is required for this use within the DC-G District.
July 2017 A stop work order was issued for a temporary office/trailer being established
on the property without a permit.
July 2017 A commercial alteration permit was applied for and cancelled because an
SUP is required for the proposed use.
August 2017 Dent One started an SUP application but never completed it or provided
information/documents for review. The application was closed in December 2017 due to
inactivity.
January 2018 The property owner was notified of Dent One continuing to operate
without a CO.
February 2018 A citation was issued. The citation indicated the applicant was to apply
for the needed SUP by February 12, 2018.
February 2018 A second SUP application was initiated for the auto repair use but was
not complete.
April 2018 A second notice was written.
April 2018 Required documents were provided for staff review of the second SUP
application.
May 2018 Applicant appeared in Court for the February 2018 violation, pled guilty, and
was fined $200.
July 2018 The second SUP application was closed due to inactivity after multiple
attempts at communication.
July 2018 Dent One applied for a commercial alteration permit and a wall sign permit,
which were both denied due to the need for an SUP. A third SUP application was
submitted.
August December 2018 The third SUP application was submitted for review. Staff
provided comments and reviewed resubmitted documents.
January 2019 Final documents needed to proceed with the SUP request were submitted
to Staff, and a date was set for the first public hearing for this case.
S18-0007
Notification Response Map
500ft Buffer
200ft Buffer
050100200
Feet
SITE
In Favor
µ
Parcels
Neutral
Opposed
Roads
Date: 2/20/2019
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
Scanned with CamScanner
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:PDA18-0009a,Version:1
AGENDA CAPTION
HoldapublichearingandconsideradoptionofanordinanceregardingaDetailedPlanfora2.96-acreparcel
locatedwithinthePlannedDevelopment176(PD-176)ZoningDistrict,generallylocatedonthewestsideof
NorthFM2499,approximately1,450feetnorthofHickoryCreekRoadintheCityofDenton,DentonCounty,
Texas,toallowastoragewarehouse(self-storage)use;providingforapenaltyinthemaximumamountof
$2,000.00forviolationsthereof;providingforseverability;andestablishinganeffectivedate.(PDA18-0009a,
Proposed Self Storage Facility, Hayley Zagurski).
City of DentonPage 1 of 1Printed on 3/15/2019
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City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_______________
___________________
AGENDA INFORMATION SHEET
DEPARTMENT: Department of Development Services
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Hold a public hearing and consider approval of an ordinance regarding a Detailed Plan for a 2.96-acre
parcel located within the Planned Development 176 (PD-176) Zoning District, generally located on the
west side of North FM 2499, approximately 1,450 feet north of Hickory Creek Road in the City of
Denton, Denton County, Texas, to allow a storage warehouse (self-storage) use; providing for a penalty in
themaximum amount of $2,000.00 for violations thereof; providing for severability; and establishing an
effective date. (PDA18-0009a, Proposed Self Storage Facility, Hayley Zagurski).
BACKGROUND
OnFebruary 20, 2019 the Planning and Zoning Commission held a public hearing regarding this request
and recommended to approve the request \[7-0\]. The recommendation did not include staffs recommended
conditions, but the Commission did not indicate any opposition to the conditions. At the public hearing the
applicant presented information regarding the Advantage Self Storage company and their facilities. One
individual from the surrounding neighborhood spoke regarding the request and indicated he had concerns
regarding impacts to property values, visual impacts of the use, traffic, and the hours of operation of the
business.
The applicant has requested Detailed Plan approval for a self-storage facility in Planned Development 176
(PD-176) District, also known as Wheeler Ridge. In accordance with the 1991 Development Code, planned
developments require approval of a Concept plan and a Detail Plan prior to development. The Concept Plan
forPD-176 District was approved in 2000, but at that time, a Detail Plan for the site was not contemplated.
Currently, in anticipation of a proposed development, a Detailed Plan has been submitted for a self-storage
facility. This proposed development is located immediately to the north of a proposed car wash facility, for
which a Detail Plan was considered by the Planning and Zoning Commission on July 25, 2018 approved
bythe City Council on September 18, 2018.
The Detail Plan includes a site plan, a landscape plan, and building elevations for the proposed facility. The
Detail Plan specifies the following elements:
Four buildings with a total area of 84,933 square feet. Of this square footage, 1,134 square feet is
proposed as office space, and the remaining 83,799 square feet is warehouse/storage space.
The buildings range in height from 13 feet to 32.5 feet.
A total of 5 parking spaces are proposed near the office.
Entrances to the interior of the facility are gated, and all drive aisles and unloading areas are internal
to the facility.
A proposed 8-foot high masonry screening wall with wrought-iron gates is proposed along the rear
property line in between the buildings, and an 8-foot high wrought-iron fence is proposed around
the detention pond on the north end of the property.
Approximately 27% of the subject property is proposed to be landscape area, and approximately
21% of the subject property is to be covered by tree canopy.
A full staff analysis is attached in Exhibit 2.
OPTIONS
1. Approve as submitted.
2. Approve subject to conditions.
3. Deny.
4. Postpone consideration.
5. Table item.
RECOMMENDATION
Staff recommends approval of the request with the following conditions as it is compatible with the
surrounding property and is consistent with the goals and objectives of the Denton Plan 2030:
1. No exterior lighting on the building shall face a single-family residential use, or if such lighting is
proposed, it shall be screened from view of adjoining residential properties. A photometric plan
shall be provided with the building permit application demonstrating compliance with the DD
site lighting requirements in Section 35.13.12.
2. Due to the proximity of this location to single-family residences, the majority of the PD being
residential, and the lack of signage regulations in the PD, the project shall comply with the Code of
Ordinancesgn requirements for non-residential districts as well as the following limitations:
a. No illuminated wall signs may face an adjoining single-family use.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
OnOctober 5, 1999, City Council approved Ordinance 99-367, establishing PD-176 and approving
development standards and a general Concept Plan for 168.57 of land.
OnJune 20, 2000, City Council approved Ordinance 2000-216, which amended ordinances 99-257, 99-
367, and 99-405 to provide a detail plan for approximately 253 acres of land within PD-170, PD-172, and
PD-176. The detail plan specifically excluded two tracts intended for commercial development, one of
which includes the subject property.
AConveyance Plat of the subject property and the approximately 2-acre lot to the south was approved by
the Planning and Zoning Commission on October 24, 2018.
On February 20, 2019 the Planning and Zoning Commission recommended \[7-0\] to approve this request.
DEVELOPER ENGAGEMENT DISCLOSURES
No developer contact and/or meeting disclosures have been provided to staff as of the issuance of this
report.
EXHIBITS
1. Agenda Information Sheet
2. Staff Analysis
3. Aerial Map
4. Zoning Map
5. Future Land Use Map
6. Proposed Site Plan
7. Proposed Landscape Plan
8. Proposed Elevations
9. Notification Map and Responses
10. Presentation
11. Planning and Zoning Commission Meeting Minutes
12. Draft Ordinance
Respectfully submitted:
Richard Cannone, AICP
Deputy Director/Planning Director
Prepared by:
Hayley Zagurski
Senior Planner
Њ
Ћ Minutes
Ќ Planning and Zoning Commission
Ѝ February 20, 2019
Ў
Џ After determining that a quorum was present, the Planning and Zoning Commission of the City of
А Denton, Texas convened in a Work Session on Wednesday, February 20, 2019 at 2:00 p.m. in the
Б Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the
В following items were considered:
ЊЉ
ЊЊ PRESENT: Chair Andrew Rozell. Commissioner: Alfred Sanchez, Larry Beck, Jason Cole,
ЊЋ Mat Pruneda, Margie Ellis, and Tim Smith.
ЊЌ
ЊЍ ABSENT: None.
ЊЎ
ЊЏ STAFF: Scott McDonald, Richard Cannone, Charlie Rosendahl, Ron Menguita, Julie
ЊА Wyatt, Hayley Zagurski, Cindy Jackson, Sean Jacobson, Christi Upton, Karen Hermann,
ЊБ and Cathy Welborn.
ЊВ
ЋЉ WORK SESSION
ЋЊ
ЋЋ Chair Rozell opened the Work Session at 2:09 p.m.
ЋЌ
ЋЍ 1. Work Session Reports
ЋЎ
ЋЏ A. Receive a presentation from Denton Independent School District regarding student
ЋА generation rates, capacity and planned improvements.
ЋБ
ЋВ Chair Rozell introduced Paul Andress, with the Operations Department at Denton Independent
ЌЉ School District (DISD).
ЌЊ
ЌЋ Paul Andress introduced Gary Ryan, Ray Bledsoe, and Bob Templeton with Templeton
ЌЌ Demographics to discuss construction, planning, and growth for DISD.
ЌЍ
ЌЎ Bob Templeton, Templeton Demographics, stated they are a consulting firm that specializes in
ЌЏ working with school districts to determine enrollment growth.
ЌА
ЌБ Commissioner Beck questioned if multi- family is included in the presentation. Templeton stated
ЌВ multi- family is not included in the presentation, but is tracked very closely.
ЍЉ
ЍЊ Chair Rozell questioned if the plans for Cole Ranch and Hunter Ranch are included in the future
ЍЋ number of 29,000 new homes. Templeton stated he does have the information on Cole Ranch, but
ЍЌ as the development goes further into the platting process they will then receive refinements;
ЍЍ currently the estimates show about 11,000 lots from Cole Ranch included in the 29,000.
ЍЎ
Њ
Њ Andress stated DISD is working with Hunter and Cole Ranch to place school sites in both
Ћ developments.
Ќ
Ѝ Chair Rozell questioned at what process DISD starts to see the development. Templeton stated as
Ў soon as the project comes in as a preliminary plat it is picked up as a future development.
Џ
А B. Receive a report, hold a discussion, and provide staff direction on the Denton Development
Б Code Update and Draft Zoning Map. (DCA18-0009, DDC Update, Ron Menguita).
В
ЊЉ Ron Menguita, Principal Planner, provided a presentation on the Denton Plan 2030 and the Denton
ЊЊ Development Code Update (DDC). Menguita stated the Denton Plan 2030 is used as a guide for
ЊЋ decision making, managing growth, and how to look at future development.
ЊЌ
ЊЍ Chair Rozell questioned if single family residents would be required to meet the threshold
ЊЎ requirements. Menguita stated yes residents would be required to conform to the new requirements
ЊЏ of the DDC when they are requesting a change.
ЊА
ЊБ Commissioner Ellis requested a link to access the draft zoning map be placed on the main City of
ЊВ Denton webpage. Charlie Rosendahl, Business Services Manager, agreed with Commissioner
ЋЉ Ellis.
ЋЊ
ЋЋ Chair Rozell questioned if staff has done analysis on the properties that could be considered non-
ЋЌ conforming. Menguita stated no staff has not. Staff clarified that the DDC update will create
ЋЍ nonconformity but will also clean up current non-conformities created back in 2002.
ЋЎ
ЋЏ Chair Rozell questioned if there is a consequence or remediation for property owners when they
ЋА have a non-conforming can continue as a
ЋБ non-conforming use and if the property is vacant and marketed they are also able to keep the non-
ЋВ conformity; however, if the property is vacant not marketed or not used then they could potentially
ЌЉ lose the non-conformity.
ЌЊ
ЌЋ Richard Cannone, Deputy Director of Development Services, stated staff has been very strategic
ЌЌ to ensure that single family uses were not made non-conforming.
ЌЍ
ЌЎ Chair Rozell questioned since the draft has been public for five days does staff have a report on
ЌЏ the number of views and has staff received any feedback or inertia. Menguita stated staff has
ЌА received feedback since it has been posted.
ЌБ
ЌВ C. Hold a discussion on establishing policies and procedures for the Planning and Zoning
ЍЉ Commission.
ЍЊ
ЍЋ Richard Cannone, Deputy Director of Development Service, stated there have been a number of
ЍЌ items that have come up that have triggered the need for policies and procedures for the Planning
ЍЍ and Zoning Commission. Cannone stated over the last couple of meetings staff has received
ЍЎ deferrals or postponement from the applicant after the notices have been sent out. Cannone
ЍЏ continued the commission should be the one to grant the postponement or deferral.
Ћ
Њ
Ћ Commissioner Smith stated the applicant should reserve the right to pull their item up until the
Ќ agenda is posted.
Ѝ
Ў Jerry Drake, First Assistant Attorney, clarified the applicant does not reserve the right to postpone
Џ an item. The Planning and Zoning Commission is allowed to move the item forward, hear the item,
А then decide to postpone the item.
Б
В Commissioner Ellis requested staff to bring concerns as a work session item to allow the
ЊЉ commission the opportunity to discuss implementing policies. Chair Rozell also requested the
ЊЊ commission provide staffof any known policies to help staff fill in all gaps.
ЊЋ
ЊЌ Chair Rozell called a recess at 4:33 p.m.
ЊЍ
ЊЎ Chair Rozell reconvened the Work Session at 4:42 p.m.
ЊЏ
ЊА Chair Rozell stated Public Hearing item 3A and 3C have been withdrawn and 3B has been
ЊБ postponed to the March 6, 2019 Planning and Zoning Commission meeting.
ЊВ
ЋЉ Richard Cannone stated staff is requesting item 3L to be opened and continued to the March 6,
ЋЊ 2019Planning and Zoning meeting.
ЋЋ
ЋЌ 2.Clarification of agenda items listed on the agenda for this meeting. This is an opportunity for
ЋЍ Commissioners to ask questions of staff on the Consent and Regular Agenda items, which may
ЋЎ include a full briefing on an item in the order it appears on the regular session agenda. Any such
ЋЏ briefing will be repeated in regular session.
ЋА
ЋБ Julie Wyatt, Senior Planner, presented Item for Individual Consideration 2A. Wyatt stated the
ЋВ request is for a proposed Alternative Development Plan for a proposed office development.
ЌЉ
ЌЊ Chair Ellis questioned if the street tress have been assessed for vision impediment due to the
ЌЋ amount of school children. Wyatt stated the trees locations has been assessed by engineering; the
ЌЌ trees will be planted between the sidewalk and right-of-way which should not impair
ЌЍ visibility.
ЌЎ
ЌЏ Wyatt stated staff does recommend approval of the request.
ЌА
ЌБ Hayley Zagurski, Senior Planner, presented Item of Individual Consideration 2B.
ЌВ
ЍЉ Zagurski stated the request is to deviate from Sections 35.13.9 Perimeter Fences and Screening
ЍЊ Requirements, 35.13.10 Access, Parking, and Circulation Requirements, and35.13.13.3.C
ЍЋ Nonresidential and Mixed Use Buildings Parking. Zagurski stated Staff recommends approval
ЍЌ of this request as it meets the established requirements for the approval of an ADP in DDC
ЍЍ 35.13.5.A.
Ќ
Њ Chair Rozell stated Public Hearing item 3A and 3C have been withdrawn and 3B has been
Ћ postponed to the March 6, 2019 Planning and Zoning Commission meeting.
Ќ
Ѝ Cindy Jackson, Senior Planner, presented Public Hearing item 3D. Jackson stated staff does
Ў recommend approval of the request.
Џ
А Hayley Zagurski, Senior Planner, presented Public Hearing item 3E. Zagurski stated the request is
Б to hold a public hearing and consider making a recommendation to City Council regarding a Detail
В Plan for Planned Development (PD) 176 to depict a storage warehouse use.
ЊЉ
ЊЊ Zagurski stated staff recommends approval of the request with the following conditions as it is
ЊЋ compatible with the surrounding property and is consistent with the goals and objectives of the
ЊЌ Denton Plan 2030: 1. No exterior lighting on the building shall face a single-family residential use,
ЊЍ or if such lighting is proposed, it shall be screened from view of adjoining residential properties.
ЊЎ A photometric plan shall be provided with the building permit application demonstrating
ЊЏ irements in Section 35.13.12. 2. Due to the proximity
ЊА of this location to single-family residences, the majority of the PD being residential, and the lack
ЊБ
ЊВ requirements for non-residential districts as well as the following limitations: a. No illuminated
ЋЉ wall signs may face an adjoining single-family use.
ЋЊ Commissioner Beck questioned if the two gates in the back of the property is to allow access for
ЋЋ maintaining the grass. Zagurski stated yes the gates are there to access for property maintenance.
ЋЌ
ЋЍ Chair Rozell called a recess at 5:31 p.m.
ЋЎ
ЋЏ Chair Rozell reconvened the Work Session at 5:37 p.m.
ЋА
ЋБ Julie Wyatt, Senior Planner and Christi Upton, Environmental Compliance Coordinator, presented
ЋВ Public Hearing item 3F. Wyatt stated the request is for an Alternative Environmental Sensitive
ЌЉ Area (ESA) to, restore Cross Timbers Upland Habitat on approximately 0.23 acre generally located
ЌЊ on the west side of Harbour Mist Trail and restore Riparian Stream Buffer on approximately 1 acre
ЌЋ of land generally located north of Pockrus Page, approximately 570 feet east of Fox Sedge Lane.
ЌЌ Uptonstated staff recommends approval of the request with following conditions: 1. 195 tree-
ЌЍ caliper inches, 35 American Beautyberry shrubs, Blackland Prairie seed mix and Riparian
ЌЎ Recovery seed mix and shall be planted. 2. 0.50 acres adjacent to the USACE restoration project
ЌЏ shall be planted according to the Alternative ESA Plan. 3. 0.23 acres of Cross Timbers upland
ЌА habitat shall be restored according to the Alternative ESA Plan. 4. Annual reporting during the
ЌБ first three years describing the cumulative mitigation work performed and the survivability of the
ЌВ plantings shall be submitted for staff review and inspection. 5. Plants installed as a part of the
ЍЉ proposed native flora revegetation are to be installed and maintained by the current property
ЍЊ owner/developer for a period of three (3) years following installation. Plants that are removed,
ЍЋ destroyed, or die within that three (3) year period are required to be replaced by the current property
ЍЌ owner/developer to achieve 90% survival rate. 6. A bond, letter of credit, or escrow in the amount
Ѝ
Њ of $24,375.00 ($125.00 per tree-caliper inches to be planted) should be provided to the City within
Ћ 60 days of AESA18-0002 approval. Upon completion of the three (3)-year landscape
Ќ establishment period, the City shall inspect the trees and determine whether ninety (90) percent of
Ѝ the trees are healthy and have a reasonable chance of surviving to maturity. Upon such a finding,
Ў the City shall release the bond or letter of credit. In the absence of such a finding, the Applicant
Џ shall be notified to replace any unhealthy or dead trees. If the applicant does not take remedial
А steps to bring the property into compliance, the City shall make demand for payment on the cash
Б bond, surety bond, or letter of credit. The City may use all legal remedies to enforce this Subchapter
В in addition to making demand on the security provided herein. 7. NEW Home owner association
ЊЉ(HOA) documents shall be created and filed establishing Lot 14 Block F and Lot 20 Block 28 in
ЊЊ Villages of Carmel Phase 4B to be owned by the HOA for the purpose of preserving the ESAs in
ЊЋ perpetuity. Any maintenance of these lots shall be done according to Subchapter 17 ESA
ЊЌ standards. Copy of the HOA documents shall be provided to the City no later than the final annual
ЊЍ report.
ЊЎ Julie Wyatt, Senior Planner, presented Public Hearing item 3G. Wyatt stated if the Planning and
ЊЏ Zoning Commissions opts to recommend approval, the following overlay conditions are suggested
ЊА to increase conformance with the Future Land Use (FLU) : 1. Restrict the permitted uses to single-
ЊБ family attached dwellings limited to a maximum twelve (12) units per acre \[L(40)\]. 2. Reduce the
ЊВ maximum building height to 40 feet. 3. Common area lots owned and maintained by the
ЋЉ
ЋЊ common area lots must be of sufficient size to accommodate the following entrance features
ЋЋ outside any existing or proposed easements located adjacent to Audra Lane: a six foot masonry
ЋЌ screening wall and a Type B buffer. A Type B buffer is a ten (10) foot planted strip that includes
ЋЍ a combination of five (5) evergreen and deciduous trees and thirty (30) shrubs per one hundred
ЋЎ(100) linear feet.
ЋЏ Wyatt stated staff recommends denial of the request as it does not meet the Future Land Use
ЋА designation as required in the criteria for approval outlined in Denton Development Code Section
ЋБ 35.3.4.B.
ЋВ Hayley Zagurski, Senior Planner, presented Public Hearing item 3H. Zagurski stated staff
ЌЉ recommends approval of this request, with the following conditions: 1. The vehicle repair use shall
ЌЊ be limited to the approximately 600 square foot one-story building area shown on the attached Site
ЌЋ Plan. 2. All customer vehicles located at the facility for either repair or pick-up following repair
ЌЌ work shall be kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan.
ЌЍ 3.The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and
ЌЎ maintained so long as a vehicle repair use is located on the subject property, unless the vehicle
ЌЏ storage area is paved and striped as a parking lot. 4. The proposed Type C landscape buffer shown
ЌА on the Site Plan along the southern property line shall be installed and maintained in accordance
ЌБ ype C landscape buffer shall be installed
ЌВ along the eastern property line along the existing wood fence up to the southern edge of the existing
ЍЉ vacant building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
ЍЊ within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree
ЍЋ list in the Site Design Criteria Manual. 5. No storage of inoperable vehicles shall be permitted on
Ў
Њ the subject property. 6. Failure to adhere to the conditions stated above may result in revocation
Ћ of the SUP in accordance with DDC Section 35.6.6.
Ќ Sean Jacobson, Assistant Planner, presented Public Hearing 3I. Jacobson stated the request is for
Ѝ a City initiated rezoning.
Ў
Џ Jacobson stated staff does recommend approval of the request as it is consistent with section
А 35.3.4.B of the Denton Development Code.
Б
В Richard Cannone, Deputy Director of Development Services, stated the rezoning is the first step
ЊЉ in the process, next will be to replat the property because of the multiple parcels.
ЊЊ
ЊЋ Ron Menguita, Principal Planner, presented Public Hearing item 3J. Menguita stated the request
ЊЌ is for a zoning change Zoning Change from Neighborhood Residential 4 (NR-4) to Neighborhood
ЊЍ Residential Mixed Use (NRMU). Menguita continued staff does recommend approval of the
ЊЎ request.
ЊЏ Scott McDonald, Director of Development Services, stated the first phase to Public Hearing item
ЊА 3I would be renovating the fleet bays, the second phase is updating the parking lots. McDonald
ЊБ continued during the second phase the buffering and landscaping requirements would be
ЊВ addressed.
ЋЉ
ЋЊ Sean Jacobson, Assistant Planner, presented Public Hearing item 3K. Jacobson stated staff does
ЋЋ recommend approval of the request as it is compatible with the surrounding property and conforms
ЋЌ to the SUP approval criteria in DDC section 35.6.4.
ЋЍ
ЋЎ Chair Rozell closed the Work Session at 6:28 p.m.
ЋЏ
ЋА
ЋБ REGULAR MEETING
ЋВ
ЌЉ Chair Rozell opened the Regular Meeting at 6:41 p.m.
ЌЊ
ЌЋ The Planning and Zoning Commission convened in a Regular Meeting on Wednesday, February
ЌЌ 20, 2019 at 6:30 p.m. in the City Council Chambers at City Hall, 215 E. McKinney at which time
ЌЍ the following items were considered:
ЌЎ
ЌЏ Chair Rozell stated Public Hearing item 3A and 3C have been withdrawn and 3B has been
ЌА postponed to the March 6, 2019 Planning and Zoning Commission meeting.
ЌБ
ЌВ 1. PLEDGE OF ALLEGIANCE
ЍЉ
ЍЊ A. U.S. Flag B. Texas Flag
ЍЋ
ЍЌ 2. ITEMS FOR INDIVIDUAL CONSIDERATION
ЍЍ
Џ
Њ A. Consider a request by Denton MOP Partners for approval of an Alternative
Ћ Development Plan for a proposed office development on 3.4 acres located at the northwest
Ќ corner of Teasley Lane and Lillian Miller Parkway in the City of Denton, Denton County,
Ѝ Texas. The property is currently zoned Neighborhood Residential Mixed Use (NRMU)
Ў District with overlay conditions. The purpose of the Alternative Development Plan is to
Џ deviate from Section 35.13.13.4 Nonresidential and Mixed Use Buildings in a Pedestrian
А Oriented District of the Denton Development Code. (ADP18-
Б Julie Wyatt)
В
ЊЉ Julie Wyatt, Senior Planner, presented Item for Individual Consideration 2A. Wyatt stated staff
ЊЊ does recommend approval of the request.
ЊЋ
ЊЌ The following individuals spoke during the Public Hearing:
ЊЍ S.L Montgomery, 1117 Ellison Park Circle, Denton, Texas 76205. Opposed to the request.
ЊЎ Charles Parker, 1524 Hunters Ridge Circle, Denton, Texas 76205. Opposed to the request.
ЊЏ Connie Guess, 1504 Hunters Ridge Circle, Denton, Texas 76205. Opposed to the request.
ЊА Matt Cragin, 2080 N. Highway 360 Ste. 240, Grand Prairie, Texas 75050. Supports the
ЊБ request.
ЊВ Gary McCalla, 780 North Watters Road Ste. 100, Allen, Texas 75013. Supports the request.
ЋЉ
ЋЊ The following individuals requested not to speak:
ЋЋ Kathryn Parker, 1524 Hunters Ridge Circle, Denton, Texas 76205. Opposed to the Request.
ЋЌ
ЋЍ Matt Cragin, the Civil Engineer, stated the owner is currently working with City of Denton to
ЋЎ address the drainage issues.
ЋЏ
ЋА Commissioner Sanchez questioned Charles Parker if the neighborhood was having flooding issues
ЋБ prior to the 24 hour emergency development. Parker stated the issue has dated back to 2006 when
ЋВ a zoning overlay was placed on the property and for the owner to address existing drainage issues.
ЌЉ
ЌЊ Chair Rozell questioned the conformity of the ER functioning to the approved overlay and why
ЌЋ the drainage issue was not addressed during the engineering process. Wyatt stated the use did
ЌЌ conform to the Denton Development Code (DDC) at the time of approval. Wyatt stated the
ЌЍ applicant is proposing underground water retention to divert the water from the adjacent properties.
ЌЎ
ЌЏ Commissioner Ellis questioned if the City of Denton is addressing the area with the sandbags.
ЌА Wyatt stated yes the City of Denton is looking to add a flume to drain the water.
ЌБ
ЌВ Commissioner Ellis questioned the applicant if they are aware per the ordinance the office building
ЍЉ cannot be named after adjacent subdivisions. Gary McCalla stated he was unaware of the
ЍЊ stipulation and will correct the name.
ЍЋ
ЍЌ Chair Andrew Rozell motioned, Commissioner Mat Pruneda seconded to approve Item for
ЍЍ Indiviual Consideration 2A with the conditions that Hunters Ridge title be removed from
ЍЎ nomenclature of the project. Commissioner Ellis requested an amendment to add signage to
ЍЏ caution school children crossing. Chair Rozell questioned the applicant if they were amenable to
А
Њ adding additional crossing signage on the south side at Teasley Lane to address children crossing.
Ћ Gary McCalla agreed to add the signage to the drive on the south side at Teasley Lane. Chair
Ќ Rozell agreed to add the amendment. Commissioner Pruneda agreed to the amendment.
Ѝ
Ў Chair Andrew Rozell motioned, Commissioner Mat Pruneda seconded to approve Item for
Џ Indiviual Consideration 2A with the conditions that Hunters Ridge title be removed from
А nomenclature of the project and additional signage be added to the south entrance of Teasley Lane
Б that there are children crossing. Motion approved (7-0). Commissioner Alfred Sanchez "aye",
В Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye",
ЊЉ Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim
ЊЊ Smith "aye".
ЊЋ
ЊЌ B. Consider a request by PACCAR Inc. for approval of an Alternative Development Plan
ЊЍ(ADP) for a proposed truck sales facility on approximately 12.07 acres located on the west
ЊЎ side of Precision Drive, approximately 330 feet south of West Oak Street in the City of
ЊЏ Denton, Denton County, Texas. The property is currently zoned Industrial Center General
ЊА(IC-G) District. The purpose of this ADP request is to deviate from the requirements of
ЊБ Sections 35.13.9 Perimeter Fences and Screening Requirements, 35.13.10 Access, Parking,
ЊВ and Circulation Requirements, and 35.13.13.3.C Nonresidential and Mixed Use Buildings
ЋЉ- Parking of the Denton Development Code. (ADP18-0009, New Truck Lot, Hayley
ЋЊ Zagurski).
ЋЋ
ЋЌ Hayley Zagurski, Senior Planner, presented Item for Individual Consideration 2B. Zagurski stated
ЋЍ the request is to deviate from sections 35.13.9 Perimeter Fences and Screening Requirements,
ЋЎ 35.13.10 Access, Parking, and Circulation Requirements, and35.13.13.3.C Nonresidential and
ЋЏ Mixed Use Buildings Parking. Zagurski stated Staff recommends approval of this request as it
ЋА meets the established requirements for the approval of an ADP in DDC 35.13.5.A.
ЋБ The following individuals spoke during the Public Hearing:
ЋВ Ashley Reynolds, 7557 Rambler Road, Ste. 1400, Dallas, Texas 75231. Supports the
ЌЉ request.
ЌЊ Craig Wedeman, 609 Grainte Trail, Northlake, Texas 76120. Supports the request.
ЌЋ
ЌЌ Commissioner Smith questioned what an undecking building is. Craig Wedeman, General
ЌЍ Contractor, stated that undecking is a process where the trucks are stacked on top of each other,
ЌЎ then a crane moves them on and off of each other.
ЌЏ
ЌА Commissioner Jason Cole motioned, Commissioner Tim Smith seconded to approve Item for
ЌБ Individual Consideration 2B. Motion approved (7-0). Commissioner Alfred Sanchez "aye",
ЌВ Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye",
ЍЉ Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim
ЍЊ Smith "aye".
ЍЋ
ЍЌ
ЍЍ
ЍЎ
Б
Њ 3. PUBLIC HEARINGS
Ћ
Ќ Chair Rozell stated as a reminder Public Hearing item 3A and 3C have been withdrawn and 3B
Ѝ has been postponed to the March 6, 2019 Planning and Zoning Commission meeting.
Ў
Џ A. Hold a public hearing and consider making a recommendation to City Council regarding
А a request by Craig Bond representing Parvar Property, LLC for a zoning change from a
Б Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district to a Neighborhood
В Residential Mixed Use (NRMU) zoning district. The 2.683 acre site is generally located at
ЊЉ 3131 and 3161 N Elm Street, in the City of Denton, Denton County, Texas. (Z18-0009,
ЊЊ Centennial on N. Elm Apartments, Cindy Jackson). THIS ITEM HAS BEEN
ЊЋ WITHDRAWN BY THE APPLICANT.
ЊЌ
ЊЍ B. Hold a public hearing and consider making a recommendation to City Council regarding
ЊЎ a request by Kirkman Engineering for a Specific Use Permit (SUP) to allow for a multi-
ЊЏ family dwelling use with 111 dwelling units proposed on three adjacent tracts totaling
ЊА approximately 9.91 acres. The subject property is generally located west of Mockingbird
ЊБ Lane and south of the Mingo Road in the City of Denton, Denton County, Texas. (S18-
ЊВ 0005, Mockingbird Multi-Family, Ron Menguita) THIS ITEM HAS BEEN POSTPONED
ЋЉ TO THE MARCH 6, 2019 PLANNING AND ZONING COMMISSION MEETING.
ЋЊ
ЋЋ C. Hold a public hearing and consider making a recommendation to City Council regarding
ЋЌ a request by Andrew Glass representing Hills of Argyle Monticello, Ltd. to rezone an 11.5
ЋЍ acre site from a Neighborhood Residential 1 (NR-1) zoning district to a Neighborhood
ЋЎ Residential 4 (NR-4) zoning district. The subject property is generally located on the east
ЋЏ side of Fort Worth Drive/U.S. 377 and Chipping Campden Road, in the City of Denton,
ЋА Denton County, Texas. (Z18-0024, Hills of Argyle Manor Homes, Cindy Jackson)
ЋБ
ЋВ D. Hold a public hearing and consider a request Tony Kimbrough with Kaz Surveying
ЌЉ representing Tim Refsland for approval of a Final Replat of Lots 1A-1 and 1A-2, Block A
ЌЊ of the Gray Forest Addition; being a residential replat of Lot 14, Block D of Park West
ЌЋ Addition, and Lot 1-A, Block A of the DeWeerd Addition. The approximately 1.15 acre
ЌЌ property is generally located on the west side of Stuart Road, and including 704 Chisholm
ЌЍ Trail, in the City of Denton, Denton County, Texas. (FR18-0015, Gray Forest Addition,
ЌЎ Cindy Jackson)
ЌЏ
ЌА Chair Rozell opened the Public Hearing.
ЌБ
ЌВ Cindy Jackson, Senior Planner, presented Public Hearing item 3D. Jackson stated staff does
ЍЉ recommend approval of the request.
ЍЊ
ЍЋ The following individuals spoke during the Public Hearing:
ЍЌ Lynn Beckford, 1009 Stuart Rd., Denton, Texas 76209. Opposed to the request.
ЍЍ Gale Frisby, 1112 Abbotts Ln., Denton, Texas 76205. Opposed to the request.
ЍЎ
ЍЏ Chair Rozell closed the Public Hearing.
В
Њ
Ћ Commissioner Tim Smith motioned, Commissioner Larry Beck seconded to approve Public
Ќ Hearing item 3D. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner
Ѝ Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner
Ў Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
Џ
А E. Hold a public hearing and consider making a recommendation to City Council regarding
Б a Detail Plan for a 2.96-acre parcel located within the Planned Development 176 (PD-176)
В Zoning District, generally located on the west side of North FM 2499, approximately 1,450
ЊЉ feet north of Hickory Creek Road in the City of Denton, Denton County, Texas to allow a
ЊЊ storage warehouse (self-storage) use. (PDA18-0009, Proposed Self Storage Facility,
ЊЋ Hayley Zagurski).
ЊЌ
ЊЍ Chair Rozell opened the Public Hearing.
ЊЎ
ЊЏ Hayley Zagurski, Senior Planner, presented Public Hearing item 3D. Zagurski stated the request
ЊА is to consider making a recommendation to City Council regarding a Detail Plan for a 2.96-acre
ЊБ parcel located within the Planned Development 176 (PD-176) Zoning District to allow a storage
ЊВ warehouse.
ЋЉ Zagurski stated staff does recommend approval of the request with the following conditions as it
ЋЊ is compatible with the surrounding property and is consistent with the goals and objectives of the
ЋЋ Denton Plan 2030: 1. No exterior lighting on the building shall face a single-family residential use,
ЋЌ or if such lighting is proposed, it shall be screened from view of adjoining residential properties.
ЋЍ A photometric plan shall be provided with the building permit application demonstrating
ЋЎ 2. Due to the proximity
ЋЏ of this location to single-family residences, the majority of the PD being residential, and the lack
ЋА of signage regulations in the PD, the project shall comp
ЋБ requirements for non-residential districts as well as the following limitations: a. No illuminated
ЋВ wall signs may face an adjoining single-family use.
ЌЉ Commissioner Ellis questioned the discussion that took place at the Home Owners Association
ЌЊ(HOA) meetings. Zagurski stated she was able to attend one HOA meetings, there were about 15-
ЌЋ 20 people with mixed views.
ЌЌ
ЌЍ The following individuals spoke during a Public Hearing:
ЌЎ Rick Jones, 3317 Princeton, Dallas, Texas 75205. Supports the request.
ЌЏ Tom Brandt, 6600 Hayling Way, Denton, Texas 76210. Opposed to the request.
ЌА
ЌБ Rick Jones, the applicant, provided a presentation regarding the proposed facility and site.
ЌВ
ЍЉ Chair Rozell closed the Public Hearing.
ЍЊ
ЍЋ Commissioner Tim Smith motioned, Commissioner Mat Pruneda seconded Public Hearing item
ЍЌ 3D. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner Larry Beck
ЊЉ
Њ"aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner Mat Pruneda
Ћ"aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
Ќ
Ѝ F. Hold a public hearing and consider making a recommendation to City Council regarding
Ў a request by Astra Carmel LLC for an Alternative Environmental Sensitive Area (AESA)
Џ Plan to restore Cross Timbers Upland Habitat on approximately 0.23 acre generally located
А on the west side of Harbour Mist Trail, approximately 240 feet north of Del Rey Drive in
Б the City of Denton, Denton County, Texas and a Riparian Stream Buffer on approximately
В 1 acre of land generally located north of Pockrus Page, approximately 570 feet east of Fox
ЊЉ Sedge Lane in the City of Denton, Denton County, Texas. (AESA18-0002, Villages of
ЊЊ Carmel, Julie Wyatt)
ЊЋ
ЊЌ Chair Rozell opened the Public Hearing.
ЊЍ
ЊЎ Julie Wyatt, Senior Planner and Christi Upton, Environmental Compliance Coordinator, presented
ЊЏ Public Hearing item 3F.
ЊА
ЊБ Upton stated staff recommends approval of the request with following conditions: 1. 195 tree-
ЊВ caliper inches, 35 American Beautyberry shrubs, Blackland Prairie seed mix and Riparian
ЋЉ Recovery seed mix and shall be planted. 2. 0.50 acres adjacent to the USACE restoration project
ЋЊ shall be planted according to the Alternative ESA Plan. 3. 0.23 acres of Cross Timbers upland
ЋЋ habitat shall be restored according to the Alternative ESA Plan. 4. Annual reporting during the
ЋЌ first three years describing the cumulative mitigation work performed and the survivability of the
ЋЍ plantings shall be submitted for staff review and inspection. 5. Plants installed as a part of the
ЋЎ proposed native flora revegetation are to be installed and maintained by the current property
ЋЏ owner/developer for a period of three (3) years following installation. Plants that are removed,
ЋА destroyed, or die within that three (3) year period are required to be replaced by the current property
ЋБ owner/developer to achieve 90% survival rate. 6. A bond, letter of credit, or escrow in the amount
ЋВ of $24,375.00 ($125.00 per tree-caliper inches to be planted) should be provided to the City within
ЌЉ 60 days of AESA18-0002 approval. Upon completion of the three (3)-year landscape
ЌЊ establishment period, the City shall inspect the trees and determine whether ninety (90) percent of
ЌЋ the trees are healthy and have a reasonable chance of surviving to maturity. Upon such a finding,
ЌЌ the City shall release the bond or letter of credit. In the absence of such a finding, the Applicant
ЌЍ shall be notified to replace any unhealthy or dead trees. If the applicant does not take remedial
ЌЎ steps to bring the property into compliance, the City shall make demand for payment on the cash
ЌЏ bond, surety bond, or letter of credit. The City may use all legal remedies to enforce this Subchapter
ЌА in addition to making demand on the security provided herein. 7. NEW Home Owner Association
ЌБ(HOA) documents shall be created and filed establishing Lot 14 Block F and Lot 20 Block 28 in
ЌВ Villages of Carmel Phase 4B to be owned by the HOA for the purpose of preserving the ESAs in
ЍЉ perpetuity. Any maintenance of these lots shall be done according to Subchapter 17 ESA
ЍЊ standards. Copy of the HOA documents shall be provided to the City no later than the final annual
ЍЋ report.
ЍЌ The following individual spoke during the Public Hearing:
ЍЍ Justin Bono, 9219, Arbor Trail Dr., Denton, Texas 75243. Supports the request.
ЊЊ
Њ
Ћ Commissioner Smith questioned the applicant if they are amenable to condition seven. Justin
Ќ Bono, stated yes they agree to the condition, on the Final Plat both areas are already considered a
Ѝ common area and there is no change in the intent to have the Home Owner Association (HOA)
Ў maintain those areas.
Џ
А Chair Rozell closed the Public Hearing.
Б
В Commissioner Tim Smith motioned, Commissioner Jason Cole seconded to approve with
ЊЉ conditions: 1. 195 tree-caliper inches, 35 American Beautyberry shrubs, Blackland Prairie seed
ЊЊ mix and Riparian Recovery seed mix and shall be planted. 2. 0.50 acres adjacent to the USACE
ЊЋ restoration project shall be planted according to the Alternative ESA Plan. 3. 0.23 acres of Cross
ЊЌ Timbers upland habitat shall be restored according to the Alternative ESA Plan. 4. Annual
ЊЍ reporting during the first three years describing the cumulative mitigation work performed and the
ЊЎ survivability of the plantings shall be submitted for staff review and inspection. 5. Plants installed
ЊЏ as a part of the proposed native flora revegetation are to be installed and maintained by the current
ЊА property owner/developer for a period of three (3) years following installation. Plants that are
ЊБ removed, destroyed, or die within that three (3) year period are required to be replaced by the
ЊВ current property owner/developer to achieve 90% survival rate. 6. A bond, letter of credit, or
ЋЉ escrow in the amount of $24,375.00 ($125.00 per tree-caliper inches to be planted) should be
ЋЊ provided to the City within 60 days of AESA18-0002 approval. Upon completion of the three (3)-
ЋЋ year landscape establishment period, the City shall inspect the trees and determine whether ninety
ЋЌ(90) percent of the trees are healthy and have a reasonable chance of surviving to maturity. Upon
ЋЍ such a finding, the City shall release the bond or letter of credit. In the absence of such a finding,
ЋЎ the Applicant shall be notified to replace any unhealthy or dead trees. If the applicant does not take
ЋЏ remedial steps to bring the property into compliance, the City shall make demand for payment on
ЋА the cash bond, surety bond, or letter of credit. The City may use all legal remedies to enforce this
ЋБ Subchapter in addition to making demand on the security provided herein. 7. NEW Home Owner
ЋВ Association (HOA) documents shall be created and filed establishing Lot 14 Block F and Lot 20
ЌЉ Block 28 in Villages of Carmel Phase 4B to be owned by the HOA for the purpose of preserving
ЌЊ the ESAs in perpetuity. Any maintenance of these lots shall be done according to Subchapter 17
ЌЋ ESA standards. Copy of the HOA documents shall be provided to the City no later than the final
ЌЌ annual report. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner Larry
ЌЍ Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner Mat
ЌЎ Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЌЏ G. Hold a public hearing and consider making a recommendation to City Council regarding
ЌА a request by Goodhorn Land Holdings LLC for a change in the zoning district and use
ЌБ classification from Neighborhood Residential Mixed Use 12 (NRMU-12) to a
ЌВ Neighborhood Residential Mixed Use District (NRMU) on approximately 8.7 acres of land
ЍЉ generally located on the north side of Audra Lane 110 feet east of Bayfield Street in the
ЍЊ City of Denton, Denton County, Texas. (Z18-0028, Audra Heights Phase II, Julie Wyatt).
ЍЋ
ЍЌ Chair Rozell opened the Public Hearing.
ЍЍ
ЊЋ
Њ Julie Wyatt, Senior Planner, presented Public Hearing item 3G. Wyatt stated if the Planning and
Ћ Zoning Commissions opts to recommend approval, the following overlay conditions are suggested
Ќ to increase conformance with the Future Land Use (FLU): 1. Restrict the permitted uses to single-
Ѝ family attached dwellings limited to a maximum twelve (12) units per acre \[L(40)\]. 2. Reduce the
Ў maximum building height to 40 feet. 3. Common area lots owned and maintained by the
Џ
А common area lots must be of sufficient size to accommodate the following entrance features
Б outside any existing or proposed easements located adjacent to Audra Lane: a six foot masonry
В screening wall and a Type B buffer. A Type B buffer is a ten (10) foot planted strip that includes
ЊЉ a combination of five (5) evergreen and deciduous trees and thirty (30) shrubs per one hundred
ЊЊ(100) linear feet.
ЊЋ Wyatt stated staff recommends denial of the request as it does not meet the Future Land Use
ЊЌ designation as required in the criteria for approval outlined in Denton Development Code Section
ЊЍ 35.3.4.B.
ЊЎ Chair Rozell questioned why staff believes Neighborhood Residential Mixed Use 12 (NRMU-12)
ЊЏ is better than Neighborhood Residential Mixed Use (NRMU). Wyatt stated the applicant was
ЊА proposing a specific project, and when staff analyzes a rezoning request all factors associated with
ЊБ the zoning district and what it could bring are considered. Wyatt continued to state staff concern
ЊВ was how the development fits with the future land use and the NRMU coming closer to the single
ЋЉ family residents.
ЋЊ
ЋЋ The following individuals spoke during the Public Hearing:
ЋЌ Alan Hermely, 1401 Brandywine Circle, Denton, Texas 76209. Opposed to the request.
ЋЍ Earl Escobar, 2570 Justin Rd Ste. 209, Lewisville, Texas 75077. Supports the request.
ЋЎ Austin Good, 2717 Gull Lake Dr., Plano, Texas 75025. Supports the request.
ЋЏ
ЋА The following individual requested not to speakduring the Public Hearing:
ЋБ Nancy Carson, 2908 Oakshire St., Denton, Texas 76209. Opposed to the request.
ЋВ
ЌЉ Earl Escobar, the applicant, provided a presentation regarding the development and the reason for
ЌЊ the zoning change request.
ЌЋ
ЌЌ Commissioner Smith questioned why the buffer area requirements are difficult to comply with.
ЌЍ Earl Escobar stated there is currently a gas main that runs along Audra Lane which has a 50 foot
ЌЎ easement to accommodate the gas main, there are no issues complying with the open space, but
ЌЏ
ЌА
ЌБ Commissioner Beck requested the tenant type that will be leasing to townhomes. Austin Good
ЌВ stated they will be targeting young families.
ЍЉ
ЍЊ Chair Rozell closed the Public Hearing.
ЍЋ
ЍЌ
ЊЌ
Њ Commissioner Tim Smith motioned, Commissioner Larry Beck seconded to approve with staffs
Ћ limitations: 1. Restrict the permitted uses to single-family attached dwellings limited to a
Ќ maximum twelve (12) units per acre \[L (40)\]. 2. Reduce the maximum building height to 40 feet.
Ѝ And change condition three as follows: 3. A six -foot masonry screening wall and a Type B buffer
Ў(10-foot planted strip with 5 evergreen and deciduous trees and 30 shrubs per 100 linear feet) shall
Џ be required between the subject property and Audra Lane. Motion approved (7-0). Commissioner
А Alfred Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair
Б Andrew Rozell "aye", Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and
В Commissioner Tim Smith "aye".
ЊЉ Chair Rozell called a recess at 9:22 p.m.
ЊЊ
ЊЋ Chair Rozell reconvened the Regular Meeting at 9:32 p.m.
ЊЌ
ЊЍ H. Hold a public hearing and consider making a recommendation to City Council regarding
ЊЎ a request by Second Hand Sports & Game Swap LLC for a Specific Use Permit to allow
ЊЏ for a vehicle repair use on approximately 0.57 acre. The property is generally located on
ЊА the south side of E. McKinney Street, approximately 135 feet west of Oakland Street in the
ЊБ City of Denton, Denton County, Texas. (S18-0007, Dent One - Auto Hail Repair, Hayley
ЊВ Zagurski).
ЋЉ
ЋЊ Chair Rozell opened the Public Hearing.
ЋЋ
ЋЌ Hayley Zagurski, Senior Planner, presented Public Hearing item 3H. Zagurski stated Staff
ЋЍ recommends approval of this request, with the following conditions: 1. The vehicle repair use shall
ЋЎ be limited to the approximately 600 square foot one-story building area shown on the attached Site
ЋЏ Plan. 2. All customer vehicles located at the facility for either repair or pick-up following repair
ЋА work shall be kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan.
ЋБ 3.The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and
ЋВ maintained so long as a vehicle repair use is located on the subject property, unless the vehicle
ЌЉ storage area is paved and striped as a parking lot. 4. The proposed Type C landscape buffer shown
ЌЊ on the Site Plan along the southern property line shall be installed and maintained in accordance
ЌЋ ype C landscape buffer shall be installed
ЌЌ along the eastern property line along the existing wood fence up to the southern edge of the existing
ЌЍ vacant building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
ЌЎ within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree
ЌЏ list in the Site Design Criteria Manual. 5. No storage of inoperable vehicles shall be permitted on
ЌА the subject property. 6. Failure to adhere to the conditions stated above may result in revocation
ЌБ of the SUP in accordance with DDC Section 35.6.6.
ЌВ
ЍЉ The following individual spoke during the Public Hearing:
ЍЊ CJ Moyo, 208 E. McKinney St., Denton, Texas 76201. Supports the request.
ЍЋ
ЍЌ Commissioner Smith stressed to the applicant there are rules in place that need to be followed from
ЍЍ the City and for the safety of those around us.
ЊЍ
Њ
Ћ Chair Rozell closed the Public Hearing
Ќ
Ѝ Commissioner Mat Pruneda motioned, Commissioner Jason Cole seconded to approve Public
Ў Hearing item 3H with staffs conditions: 1. The vehicle repair use shall be limited to the
Џ approximately 600 square foot one-story building area shown on the attached Site Plan. 2. All
А customer vehicles located at the facility for either repair or pick-up following repair work shall be
Б kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan. 3. The
В proposed 6-foot wood screening fence shown on the Site Plan shall be installed and maintained so
ЊЉ long as a vehicle repair use is located on the subject property, unless the vehicle storage area is
ЊЊ paved and striped as a parking lot. 4. The proposed Type C landscape buffer shown on the Site
ЊЋ Plan along the southern property line shall be installed and maintained in accordance with the
ЊЌ e proposed Type C landscape buffer shall be installed along
ЊЍ the eastern property line along the existing wood fence up to the southern edge of the existing
ЊЎ vacant building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
ЊЏ within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree
ЊА list in the Site Design Criteria Manual. 5. No storage of inoperable vehicles shall be permitted on
ЊБ the subject property. 6. Failure to adhere to the conditions stated above may result in revocation
ЊВ of the SUP in accordance with DDC Section 35.6.6. Motion approved (7-0). Commissioner Alfred
ЋЉ Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew
ЋЊ Rozell "aye", Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and
ЋЋ Commissioner Tim Smith "aye".
ЋЌ I. Hold a public hearing and consider making a recommendation to City Council regarding
ЋЍ a request by the City of Denton for a change in the zoning district and use classification on
ЋЎ a site made up of fifteen adjacent tracts of land, including a change from Downtown
ЋЏ Residential 1 (DR-1) to Downtown Commercial General (DC-G) on one approximately
ЋА 0.39-acre tract, from a mixed zoning of DR-1 and Neighborhood Residential 4 (NR-4) to
ЋБ DC-G on two tracts totaling approximately 13.85 acres, from NR-4 to DC-G on nine tracts
ЋВ totaling approximately 22.07 acres, and from Neighborhood Residential Mixed-Use 12 to
ЌЉ DC-G on three tracts totaling approximately 8.81 acres. The subject site, composed of all
ЌЊ fifteen of the tracts mentioned above and totaling approximately 45.13 acres, is generally
ЌЋ located on the southeast side of Mingo Road, north of Paisley Street, northwest of
ЌЌ Lattimore Street, and west of Pertain Street (Z18-0027b, Fleet Services Facility, Sean
ЌЍ Jacobson).
ЌЎ
ЌЏ Chair Rozell opened the Public Hearing.
ЌА
ЌБ Sean Jacobson, Assistant Planner, presented Public Hearing item 3I. Jacobson stated the request
ЌВ is to rezone from Downtown Residential 1 (DR-1), Neighborhood Residential (NR-4), and
ЍЉ Neighborhood Residential Mixed Use 12 (NRMU-12) to a Downtown Commercial General (DC-
ЍЊ G) Zoning District on approximately 45.13 acres of land.
ЍЋ Commissioner Smith stated his disappointment in the City of Denton for not correcting the zoning
ЍЌ sooner than now, but is happy the City of Denton is now correcting their zoning to support the use.
ЊЎ
Њ Jerry Drake, First Assistant Attorney, stated on behalf of the City of Denton the service center
Ћ facility has been there since he started working for the City of Denton more than thirty years ago,
Ќ and the last City wide rezoning was in 2002; City of Denton built the structure in
Ѝ account for the existing uses.
Ў
Џ Commissioner Ellis stated she was concerned with the change to DC-G, but looking at the draft
А zoning map it is labeled public facility which would eliminate other uses.
Б
В The following individual requested to speak:
ЊЉ Leonard Chavez, 921 N. Ruddell St., Denton, Texas 76209. Opposed to the request.
ЊЊ Carolyn Griffin, 916 N. Wood St., Denton, Texas 76209. Opposed to the request.
ЊЋ Patsy Nash, 916 N. Wood St., Denton, Texas76209. Opposed to the request.
ЊЌ Karen Rodriguez, 821 N. Ruddell St., Denton, Texas 76209. Opposed to the request.
ЊЍ
ЊЎ Scott McDonald, Director of Development Service, stated the plan is some renovations to the Fleet
ЊЏ Services building and parking lot improvements, with the parking lot improvements the drainage
ЊА issues will be taken into consideration.
ЊБ
ЊВ Commissioner Beck questioned if the large trucks have egress and ingress on Ruddell Street.
ЋЉ McDonald stated there has not been a traffic management plan for this area and are attempting to
ЋЊ correct misdirection.
ЋЋ
ЋЌ Chair Rozell closed the Public Hearing.
ЋЍ
ЋЎ Commissioner Tim Smith motioned, Commissioner Mat Pruneda seconded to approve Public
ЋЏ Hearing item 3I. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner
ЋА Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner
ЋБ Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЋВ
ЌЉ J. Hold a public hearing and consider making a recommendation to City Council regarding
ЌЊ a request by Redmon Ebony Inc. for a change in the zoning district and use classification
ЌЋ from Neighborhood Residential 4 (NR-4) to Neighborhood Residential Mixed Use
ЌЌ(NRMU) zoning district and use classification on approximately 0.82 acres of land. The
ЌЍ subject property is generally located on the north side of Robertson Street, approximately
ЌЎ 300 feet east of Skinner Street in the City of Denton, Denton County, Texas. (Z19-0001,
ЌЏ Sweet Y, Ron Menguita).
ЌА
ЌБ Chair Rozell opened the Public Hearing.
ЌВ
ЍЉ Ron Menguita, Principal Planner, presented Public Hearing item 3J. Menguita stated the request
ЍЊ is for a zoning change from Neighborhood Residential 4 (NR-4) to a Neighborhood Residential
ЍЋ Mixed Use (NRMU). Mengita stated staff does recommend approval of the zoning change request.
ЍЌ
ЍЍ Commissioner Smith questioned why staff is not recommending any overlay restrictions.
ЍЎ Menguita stated staff felt there was no need for overlay restrictions, and if there were issues
ЍЏ regarding the height they would be addressed with the development standards.
ЊЏ
Њ
Ћ Commissioner Beck questioned why the home next door is included in the rezoning, Menguita
Ќ stated the property owner is requesting to rezone all four lots that could potentially be used as
Ѝ storage for the restaurant.
Ў
Џ Commissioner Pruneda stated he is for allowing the use, but is nervous to agree with the zoning
А change, but likes the idea to add an overlay and wants to make sure the character of the area is
Б preserved.
В
ЊЉ Commissioner Sanchez stated the neighborhood needs to be remembered for its history and
ЊЊ bringing back part of the history will help.
ЊЋ
ЊЌ Commissioner Ellis stated she understands the concerns, but every tract of land has its own set of
ЊЍ unique circumstances, this project looks like a revitalization of history and neighborhood services.
ЊЎ
ЊЏ The following individuals spoke during the Public Hearing:
ЊА Tammy Bradley, 729 Alexander St, Denton, Texas 76205. Supports the request.
ЊБ Ray Redmon 724 Morse Street, Denton, Texas 76205. Supports the request.
ЊВ Mary B. Wright, 2745 Mill Pond Rd, Denton, Texas 76209. Supports the request.
ЋЉ George Ferrie, 2932 Stockton Street, Denton, Texas 76209. Supports the request.
ЋЊ Jennifer Lane, 1526 Willowword Street, Denton, Texas 76205. Supports the request.
ЋЋ
ЋЌ Chair Rozell closed the Public Hearing.
ЋЍ
ЋЎ Commissioner Smith made a motion to approve the zoning change with the following condition
ЋЏ to restrict the use of the NRMU area to restaurant use only. Commissioner Beck seconded.
ЋА Commissioner Pruneda questioned the property owner if by placing the overlay would be impeding
ЋБ any future plans. Redmon, the property owner, stated it should not impede.
ЋВ
ЌЉ Chair Rozell requested Commissioner Smith to remove the amendment. Commissioner Smith
ЌЊ denied the request.
ЌЋ
ЌЌ Chair Andrew Rozell motioned, Commissioner Jason Cole seconded to make the amended motion
ЌЍ to rezone from NR-4 to NRMU with no conditions the primary motion. Motion approved (6-1).
ЌЎ Commissioner Alfred Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole
ЌЏ"aye", Chair Andrew Rozell "aye", Commissioner Mat Pruneda "aye", and Commissioner Margie
ЌА Ellis "aye". Commissioner Tim Smith "nay".
ЌБ
ЌВ Chair Andrew Rozell motioned, Commissioner Jason Cole seconded to approve Public Hearing
ЍЉ 3J with no conditions. Motion Approved (7-0). Commissioner Alfred Sanchez "aye",
ЍЊ Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye",
ЍЋ Mat Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЍЌ
ЍЍ Chair Rozell called a recess at 11:26 p.m.
ЍЎ
ЍЏ Chair Rozell reconvened the Regular Meeting 11:31 p.m.
ЊА
Њ
Ћ
Ќ K. Hold a public hearing and consider making a recommendation to City Council regarding
Ѝ a request by Lee Allison of Allison Engineering, on behalf of Anthony Marks, for a
Ў Specific Use Permit to allow for an Accessory Dwelling Unit behind an existing residence
Џ on approximately 0.5374 of an acre. The property is generally located on the south side of
А Roberts Street, west of Brown Drive, in the City of Denton, Denton County, Texas. (S19-
Б 0001, 606 Roberts Accessory Building, Sean Jacobson).
В
ЊЉ Chair Rozell opened the Public Hearing.
ЊЊ
ЊЋ Sean Jacoson, Assistant Planner, presented Public Hearing item 5K. Jacobson stated the request is
ЊЌ for a Specific Use Permit (SUP) to allow for an Accessory Dwelling Unit behind an existing
ЊЍ residence. Staff does recommend approval of the request as it is compatible with the surrounding
ЊЎ property and conforms to the SUP approval criteria.
ЊЏ
ЊА The following individuals spoke during the Public Hearing:
ЊБ Lee Allison, 2415 N. Elm Street, Denton, Texas 76201. Supports the request.
ЊВ Sonia Whiddon, 528 Roberts Street, Denton, Texas 76209. Supports the request.
ЋЉ
ЋЊ The following individuals requested not to speak during the Public Hearing:
ЋЋ Gary Hayden, 2106 North Bell Ave., Denton, Texas 76209. Supports the request.
ЋЌ Deb Conte, 2106 North Bell Ave., Denton, Texas 76209. Supports the request.
ЋЍ
ЋЎ Chair Rozell closed the Public Hearing.
ЋЏ
ЋА Commissioner Mat Pruneda motioned, Commissioner Jason Cole seconded to approve Public
ЋБ Hearing item 5K. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner
ЋВ Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Mat Pruneda
ЌЉ"aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЌЊ
ЌЋ L. Hold a public hearing and consider making a recommendation to City Council regarding a
ЌЌ proposed revision to the Denton Development Code; specifically to amend Subchapters 13 and 17
ЌЍ related to tree preservation, landscape standards, and environmentally sensitive area standards.
ЌЎ(DCA18-0008, Conservation and Landscape Code, Hayley Zagurski).
ЌЏ
ЌА Chair Rozell opened the Public Hearing.
ЌБ
ЌВ Hayley Zagurski, Senior Planner, stated there currently are no additional updates to the draft; staff
ЍЉ is still taking in feedback from the development community and requested to postpone to a date
ЍЊ certain of March 6, 2019.
ЍЋ
ЍЌ Commissioner Tim Smith motioned, Commissioner Margie Ellis seconded to table Public Hearing
ЍЍ item 5L to the March 6, 2019 Planning and Zoning Commission meeting. Motion approved (7-0).
ЍЎ Commissioner Alfred Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole
ЊБ
Њ"aye", Chair Andrew Rozell "aye", Mat Pruneda "aye", Commissioner Margie Ellis "aye", and
Ћ Commissioner Tim Smith "aye".
Ќ
Ѝ 4. PLANNING & ZONING COMMISSION PROJECT MATRIX
Ў A. Planning and Zoning Commission project matrix.
Џ
А Richard Cannone, Deputy Director of Development Services, stated Pritam Deshmukh, Deputy
Б City Engineer will be speaking regarding matrix items at the March 6, 2019. Cannone
В recommended to discuss the RD-5x zoning at the next special called meeting on February 27,
ЊЉ 2019.
ЊЊ
ЊЋ Commissioner Beck questioned if Deshmukh will be discussing the mobilty plan. Cannone stated
ЊЌ Deshmukh will be speaking some on the mobility plan but will have it coming before the
ЊЍ Commission once they have a consultant lined up.Commissioner Beck requested staff to address
ЊЎ the traffic issue behind the service center. Commissioner Ellis requested the time framing for
ЊЏ updating Bernard Street due to safety concerns. Commissioner Smith requested the staff to look at
ЊА other City of Denton properties that could potentially be zoned incorrectly. Chair Rozell requested
ЊБ the Commissioners send items to staff for the implementation of the policies and procedures.
ЊВ
ЋЉ Chair Rozell closed Regular Meeting at 11:51 p.m.
ЊВ
S:\\Legal\\Our Documents\\Ordinances\\19\\PDA18-0009.docx
ORDINANCE NO. ______________
AN ORDINANCE OF THE CITY OF DENTON, TEXAS REGARDING A DETAILED PLAN
FOR A 2.96-ACRE PARCEL LOCATED WITHIN THE PLANNED DEVELOPMENT 176 (PD-
176) ZONING DISTRICT, GENERALLY LOCATED ON THE WEST SIDE OF NORTH FM
2499, APPROXIMATELY 1,450 FEET NORTH OF HICKORY CREEK ROAD IN THE CITY
OF DENTON, DENTON COUNTY, TEXAS, TO ALLOW A STORAGE WAREHOUSE
(SELF-STORAGE) USE; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF
$2,000.00 FOR VIOLATIONS THEREOF; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE. (PDA18-0009, Proposed Self-Storage Facility)
WHEREAS, Rick Jones of Advantage Storage, on behalf of the property owner, ADV
FINCO LLC., has applied for a Planned Development Amendment for a Detailed Plan on
approximately 2.96 acres of land, as described and shown in Exhibit A the
Property); and
WHEREAS, on August 3, 1999, by Ordinance 99-257 the City Council approved a change
in zoning for 65.17 acres of land in Planned Development 172 (PD-172) zoning district; and
WHEREAS, On October 5, 1999, by Ordinance 99-367, the City Council established
Planned Development 176 (PD-176), approved development standards for PD-176, and approved
the Concept Plan for 168.57 acres of land located within the PD-176 zoning district, and
WHEREAS, The Concept Plan designated the subject property as part of Tract 3, which
was designated for commercial development, and
WHEREAS, on November 2, 1999, by Ordinance 99-405, the City Council approved a
change in zoning for 38.6 acres of land in Planned Development 170 (PD-170) Zoning District;
and
WHEREAS, on June 20, 2000, by Ordinance 2000-216 the City Council approved a
Detailed Plan for residential uses on 253.36 acres located in the PD-170, PD-172 and PD 176
Zoning District which specifically excluded Tracts 1 and 3 as shown on the Concept Plan approved
by Ordinance 99-367; and
WHEREAS, on February 20, 2019, the Planning and Zoning Commission, in compliance
with the laws of the State of Texas, having given the requisite notices by publication and otherwise,
and having afforded full and fair hearings and to all property owners interested in this regard,
recommended approval \[7-0\] of the requested Detailed Plan, subject to conditions; and
WHEREAS, on March 19, 2019, the City Council likewise conducted a public hearing as
required by law to consider the Detailed Plan request and found that the Detailed Plan is consistent
with the approved Concept Plan for PD-176, and is consistent with the Denton Plan and the
Development Code, provided certain conditions of approval are met; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance are
incorporated herein by reference and found to be true.
SECTION 2. The Detailed Plan for the subject Property, located within Tract 3 of Planned
Development 176 (PD-176), is attached hereto and incorporated herein by reference as Exhibit
B, and is hereby approved, subject to the following conditions:
1. No exterior lighting on the building shall face a single-family residential use, or if such
lighting is proposed, it shall be screened from view of adjoining residential properties. A
photometric plan shall be provided with the building permit application demonstrating
2. Due to the proximity of this location to single-family residences, the majority of the PD
being residential, and the lack of signage regulations in the PD, the project shall comply
with the Code of Ordinances sign requirements for non-residential districts as well as the
following limitations:
a. No illuminated wall signs may face an adjoining single-family use.
SECTION 3. The attached site plan, landscape plan, and building elevations provided in
the Detailed Plan provided in Exhibit B specify the following requirements, and are
incorporated as requirements of the SUP.
1. Four buildings with a total area of 84,933 square feet. Of this square footage, 1,134 square
feet is proposed as office space, and the remaining 83,799 square feet is warehouse/storage
space.
2. The buildings range in height from 13 feet to 32.5 feet.
3. A total of 5 parking spaces are proposed near the office.
4. Entrances to the interior of the facility are gated, and all drive aisles and unloading areas
are internal to the facility.
5. A proposed 8-foot high masonry screening wall with wrought-iron gates is proposed along
the rear property line in between the buildings, and an 8-foot high wrought-iron fence is
proposed around the detention pond on the north end of the property.
6. Approximately 27% of the subject property is proposed to be landscape area, and
approximately 21% of the subject property is to be covered by tree canopy.
SECTION 3. The provisions of this ordinance, as they apply to the 2.96 acres shown in
the Detailed Plan herein approved, shall govern and control over any conflicting provisions of
Ordinance No. 99-367, but all provisions of Ordinance No. 99-367, as they apply to that remaining
portion of the district not herein amended, shall continue in force and effect, and shall apply to the
remainder of said district.
SECTION 4. That a copy of this ordinance shall be attached to Ordinance No. 99-367
showing the amendment herein approved.
SECTION 5. Unlawful use. It shall be unlawful for any person, firm, entity, or corporation
to make use of the above-referenced Property in some manner other than as authorized by the
Denton Codes of Ordinances and this Ordinance.
SECTION 6. Severability. If any provision of this ordinance or the application thereof to
any person or circumstance is held invalid by any court, such invalidity shall affect the validity of
the provisions or applications, and to this end the provisions of this ordinance are severable.
SECTION 7. Penalty. Any person, firm, entity or corporation violating any provision of
this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00 for each violation.
Each day that a provision of this ordinance is violated shall constitute a separate and distinct
offense. The penal provisions imposed under this Ordinance shall not preclude Denton from filing
suit to enjoin the violation and it retains all legal rights and remedies available to it under local,
state and federal law.
SECTION 8. In compliance with Section 2.09(c) of the Denton Charter, this ordinance
shall become effective fourteen (14) days from the date of its passage, and the City Secretary is
hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-
Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the
date of its passage.
The motion to approve this ordinance was made by __________________________ and
seconded by _________________________________; the ordinance was passed and approved by
the following vote \[___ - ___\]:
Aye Nay Abstain Absent
Chris Watts, Mayor: ______ ______ ______ ______
Gerard Hudspeth, District 1: ______ ______ ______ ______
Keely G. Briggs, District 2: ______ ______ ______ ______
Don Duff, District 3: ______ ______ ______ ______
John Ryan, District 4: ______ ______ ______ ______
Deb Armintor, At Large Place 5: ______ ______ ______ ______
Paul Meltzer, At Large Place 6: ______ ______ ______ ______
PASSED AND APPROVED this the _________ day of ___________________, 2019.
_______________________________________
CHRIS WATTS, MAYOR
ATTEST:
RACHEL WOOD, INTERIM CITY SECRETARY
BY: __________________________________
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY: /s/Jerry E. Drake, Jr.
Exhibit A
Legal Description and Location Map
BEGINNING, at a 1/2--of-way line of
F.M. 2499 (Barrel Strap, a 120-foot right-of-way); said point being the southeast corner of said
Lot 1, Block A and the northeast corner of Lot , Block A of said Green Carwash Addition;
THENCE, departing the said westerly line of F.M. 2499 and along the common line between
said Lot 1, Block A and said Lot 2, Block A, the following five (5) calls:
North 75 degrees, 57 minutes, 49 seconds West, a distance of 8.02 feet a 1/2-inch iron rod with
-tangent curve to the left;
In a southwesterly direction, along said curve to the left, having a central angle of 84 degrees, 19
minutes, 59 seconds, a radius of 37.00 feet, a chord bearing and distance of South 61 degrees, 52
minutes, 31 seconds West, 49.68 feet, an arc distance of 54.46 feet to a 1/2-inch iron rod with
rve;
South 19 degrees, 42 minutes, 31 seconds West, a distance of 37.21 feet to a 1/2-inch iron rod
-tangent curve to the right;
In a southwesterly direction, along said curve to the right, having a central angle of 69 degrees,
59 minutes, 38 seconds, a radius of 37.00 feet, a chord bearing and distance of South 54 degrees,
42 minutes, 42 seconds West, 42.44 feet, an arc distance of 45.20 feet to a 1/2-inch iron rod with
ve;
South 89 degrees, 42 minutes, 31 seconds West, a distance of 388.94 feet to a 1/2-inch iron rod
Block D, Wheeler Ridge Phase Two, an addition to the City of Denton, Texas according to the
plat recorded in Cabinet V, Page 208 of the said Plat Records; said point also being the
southwest corner of said Lot 1, Block A and the northwest corner of said Lot 2, Block A;
THENCE, North 48 degrees, 15 minutes, 18 seconds East, departing the said common line
between Lot 1, Block A and Lot 2, Block A and along the said common line between Green
Carwash Addition and Lot 19X, Block D, Wheeler Ridge Phase Two, a distance of 807.56 feet to
a 1/2-inch iron rod found for corner; said point being in the west right-of-way line of a 30-foot
street dedication as shown on Wynstone at Oakmont Phase I, an addition to the City of Denton,
Texas according to the plat recorded in Cabinet Q, Page 320 of the said Plat Records;
THENCE, South 02 degrees, 09 minutes, 33 seconds East, departing the said common line
between Green Carwash Addition and Lot 19X, Block D, Wheeler Ridge Phase Two and the east
line of said Lot 1, Block A and the said west line of a 30-foot street dedication, a distance of
156.72 feet to a 1/2-
F.M. 2499; said point also being the beginning of a non-tangent curve to the left;
THENCE, in a southerly direction, along said westerly line of F.M. 2499 and said curve to the
left, having a central angle of 15 degrees, 56 minutes, 10 seconds, a radius of 1,160.00 feet, a
chord bearing and distance of South 22 degrees, 02 minutes, 52 seconds West, 321.60 feet, an
arc distance of 322.64 feet to the POINT OF BEGINNING;
CONTAINING, 128,859 square feet or 2.958 acres of land, more or less.
Exhibit B
Detail Plan
- REVISED 12.07.18
Staff Analysis
PDA18-0009/Proposed Self-Storage Facility
City Council District 4
City Council
March 19, 2019
REQUEST:
Hold a public hearing and consider approval of an ordinance regarding a Detail Plan for a 2.96-
acre parcel located within the Planned Development 176 (PD-176) Zoning District, generally
located on the west side of North FM 2499, approximately 1,450 feet north of Hickory Creek
Road in the City of Denton, Denton County, Texas, to allow a storage warehouse (self-storage)
use; providing for a penalty in the maximum amount of $2,000.00 for violations thereof;
providing for severability; and establishing an effective date. (PDA18-0009a, Proposed Self
Storage Facility, Hayley Zagurski).
OWNER:
ADV FINCO, LLC.
APPLICANT:
Rick Jones, Advantage Self Storage
BACKGROUND:
On February 20, 2019 the Planning and Zoning Commission held a public hearing regarding this
request and recommended to approve the request \[7-0\]. The recommendation did not include
conditions. At the public hearing the applicant presented information regarding the Advantage
Self Storage company and their facilities. One individual from the surrounding neighborhood
spoke regarding the request and indicated he had concerns regarding impacts to property values,
visual impacts of the use, traffic, and the hours of operation of the business.
The applicant has requested Detailed Plan approval for a self-storage facility in Planned
Development 176 (PD-176) District, also known as Wheeler Ridge. In accordance with the 1991
Development Code, planned developments require approval of a Concept plan and a Detail Plan
prior to development. The Concept Plan for PD-176 District was approved in 2000, but at that
time, a Detail Plan for the site was not contemplated. Currently, in anticipation of a proposed
development, a Detailed Plan has been submitted for a self-storage facility. This proposed
development is located immediately to the north of a proposed car wash facility, for which a
Detail Plan was considered by the Planning and Zoning Commission on July 25, 2018 and
approved by the City Council on September 18, 2018.
PD-176 District was created prior to the 2002 adoption of the Denton Development Code
(DDC). Therefore, new development within the PD boundary is subject to the requirements of
the 1991 outlined in Article IV, Sections 35-151 through 158 and
35-171 through 184. These requirements define a planned development process that includes two
phases: a Concept Plan and a Detailed Plan. The Concept Plan establishes the general guidelines
for the PD, including project boundaries, land uses, and general thoroughfare locations. A
Detailed Plan provides more specific information about the proposal and is defined as:
Detailed Plan the final step in the planned development process which contains the
details of the development of the property. Such standards may include permitted land
uses and the acreage for each use, adjacent or surrounding land uses, zoning, streets,
drainage facilities, existing or proposed off-site improvements, parking lots and parking
spaces, access and connection to existing or proposed streets, trees and landscaping, the
maximum height of all buildings, the maximum total floor area, the location of water
retention areas and major drainage facilities, and the location of all major utilities.
On October 5, 1999, City Council approved Ordinance 99-367, establishing PD-176 and
adopting a Concept Plan for said acreage. The Concept plan established the permitted uses,
general locations of the use categories, and development standards. On June 20, 2000, City
Council approved Ordinance 2000-216, which amended ordinances 99-257, 99-367, and 99-405
to provide a detail plan for approximately 253 acres of land within PD-170, PD-172, and PD-
176. The detail plan specifically excluded two tracts intended for commercial development, one
of which includes the subject property.
The proposed Detail Plan includes a site plan, a landscape plan, and building elevations for the
proposed facility. The Detail Plan specifies the following elements:
Four buildings with a total area of 84,933 square feet. Of this square footage, 1,134
square feet is proposed as office space, and the remaining 83,799 square feet is
warehouse/storage space.
The buildings range in height from 13 feet to 32.5 feet.
A total of 5 parking spaces are proposed near the office.
Entrances to the interior of the facility are gated, and all drive aisles and unloading areas
are internal to the facility.
A proposed 8-foot high masonry screening wall with wrought-iron gates is proposed
along the rear property line in between the buildings, and an 8-foot high wrought-iron
fence is proposed around the detention pond on the north end of the property.
Approximately 27% of the subject property is proposed to be landscape area, and
approximately 21% of the subject property is to be covered by tree canopy.
SITE DATA:
The subject site is 2.96 acres out of an approximately 4.89-acre tract. The property has
approximately 322 feet of frontage along FM 2499, which was recently constructed by TXDOT.
The proposed facility is intended to share a driveway entry with the proposed car wash facility to
the south. Plans for this driveway and an associated left-turn lane into the property have been
approved by TXDOT and are intended to be constructed as part o he car wash development.
PD-176 designates the subject property as a Commercial tract intended to accommodate the
development of an office, retail, and commercial center. The permitted uses correspond to the
91 DDC. A Storage Warehouse facility is a
-176 District.
SURROUNDING ZONING AND LAND USES:
Northwest: North: Northeast:
PD-176 District PD-176 District PD-111 and Neighborhood
Residential Mixed Use
Utility easement and single- Utility easement and single-
(NRMU) District
family residential family residential
Single-family and
Undeveloped
West: East:
PD-176 District PD-111 District
SUBJECT PROPERTY
Utility easement and single- FM 2499 and single-family
family residential residential
Southwest: South:
Southeast:
PD-172 District PD-176 District
PD-111 District
Single-family residential Proposed car wash facility FM 2499 and single-family
residential
CONSIDERATIONS:
1. The applicant has submitted a Detailed Plan for PD-176 District for a Storage Warehouse
or self-storage facility. The associated Site Plan, Landscape Plan, and Building
Elevations, are attached for reference.
2. The proposal reflects the following elements:
a. Four buildings with a total area of 84,933 square feet. Of this square footage,
1,134 square feet is proposed as office space, and the remaining 83,799 square
feet is warehouse/storage space.
b. The buildings range in height from 13 feet to 32.5 feet.
c. A total of 5 parking spaces are proposed near the office.
d. Entrances to the interior of the facility are gated, and all drive aisles and
unloading areas are internal to the facility.
e. A proposed 8-foot high masonry screening wall with wrought-iron gates is
proposed along the rear property line in between the buildings, and an 8-foot high
wrought-iron fence is proposed around the detention pond on the north end of the
property.
f. Approximately 27% of the subject property is proposed to be landscape area, and
approximately 21% of the subject property is to be covered by tree canopy.
3.
criteria have been met:
a. The plan complies with the general concept plan or development plan approved
for that property;
The use is permitted within the PD, and the development outlined in the proposed
Detailed Plan generally conform to the approved PD development standards.
Specifically, the Wheeler Ridge development standards specify that all buildings
shall have an exterior façade of glass, stone, stucco, tile, concrete, wood, or
similar materials. Additionally, a minimum six-foot screening wall is to be
provided between areas developed for residential uses, and the wall is be
constructed of stone, brick, or similar materials.
The Detail Plan specifies buildings with brick and stone veneer as the primary
exterior materials. In between buildings on the western side of the property, an 8-
foot masonry screening wall is proposed.
b. The plan provides for a compatible arrangement of buildings and land uses and
would not adversely affect adjoining neighborhoods or properties outside the
plan,
The proposal is consistent with development patterns typically found along
highways such as FM 2499.
To shield the commercial development from surrounding residences, the applicant
has proposed for the western side of the property to feature a combination of rear
building walls and a masonry screening wall. Within the 25-foot building setback,
a mixture of large and medium canopy trees as well as accent trees are proposed
as well.
The site plan reflects a building arrangement that internalizes the drive-aisles and
loading areas. This arrangement will prevent headlights from vehicles from
shining into the nearby residences and help minimize noise from vehicle traffic
and loading/unloading activities. Additionally, approximately 175-feet of power
and utility easements separate the subject property from residences to the west.
c. The plan provides for adequate and safe circulation of vehicular traffic; and
The proposed Detail Plan provides for adequate and safe circulation, which
includes one point of vehicular access FM 2499. This point of access is to be
shared with the car wash facility to the south. A 20
present throughout the facility, and loading spaces are provided on the interior of
the complex outside of the fire lane and drive aisle. Parking is limited to five
spaces in front of the office.
d. The plan is in substantial compliance with the landscape, sign, subdivision, and
other regulations of the city, or, if not, the plan offers corresponding benefits that
merit deviation from those regulations.
The proposed Detailed Plan is in substantial compliance with the City regulations,
which includes the PD ordinance and the 1998 landscape code. The proposed
devel
Sign and lighting regulations are not outlined in the PD ordinance. Due to the
close proximity of residential development and to further ensure no nuisances are
generated from this proposed development, staff recommends that conditions be
placed upon this Detail Plan to require compliance with the current DDC site
-residential
districts.
4. The Future Land Use designation for the subject property and surrounding area is Low
Density Residential. The proposed commercial development is not consistent with the
future land use designation. However, the commercial development of the subject
property and the tract located at the southeast corner of Teasley Lane and Robinson Road
has been intended since the development of the PD regulations in 1999. Commercial
development on the subject property has not been feasible or practical until the recent
extension of FM 2499 along the eastern boundary of the subject property.
STAFF RECOMMENDATION:
Staff recommends approval of the request with the following conditions as it is compatible with
the surrounding property and is consistent with the goals and objectives of the Denton Plan 2030:
1. No exterior lighting on the building shall face a single-family residential use, or if such
lighting is proposed, it shall be screened from view of adjoining residential properties. A
photometric plan shall be provided with the building permit application demonstrating
2. Due to the proximity of this location to single-family residences, the majority of the PD
being residential, and the lack of signage regulations in the PD, the project shall comply
with the Code of Ordinances sign requirements for non-residential districts as well as the
following limitations:
a. No illuminated wall signs may face an adjoining single-family use.
PUBLIC NOTIFICATION:
To comply with the public hearing notice requirements, 36 notices were sent to property owners
within 200 feet of the subject property, 124 courtesy notices were sent to physical addresses
within 500 feet of the subject property, a notice was published in the Denton Record Chronicle,
and signs were placed on the property. One written response in favor of the request has been
received as of the issuance of this report.
The applicant did not hold a public neighborhood meeting; however they did arrange for separate
meetings with the . Staff was able to
attend the Oakmont HOA meeting. Approximately 20 individuals were in attendance at the
meeting, including the HOA board. The applicant presented his proposed Detail Plan and
answered questions primarily regarding the business operation and traffic. No written responses
has been received as of the issuance of this report.
PDA18-0009
Site Location
BUTLER
SAN LORENZO
LUCK HOLE
BLACK
BUTTE
0125250500
Feet
SITE
µ
Parcels
Roads
Date: 11/13/2018
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
PDA18-0009
Zoning Map
RD-5X
BUTLER
SAN LORENZO
PD
NR-4
LUCK HOLE
NRMU
BLACK
BUTTE
NRMU-12
0125250500
Feet
SITENR-4PD
µ
NRMURD-5X
Parcels
NRMU-12
Roads
Date: 11/13/2018
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
PDA18-0009
Future Land Use Map
MARYMOUNT
2181
"
)
LUCK HOLE
Low
Residential
Community
Mixed
Use
0205410820
Feet
SITECommunity Mixed Use
Future Land Use
µ
Parks / Open Space
Low Residential
Parcels
Moderate Residential
Roads
Date: 11/13/2018
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
- REVISED 12.07.18
PDA18-0009
Notification Map
BUTLER
SAN LORENZO
LUCK HOLE
BLACK
BUTTE
200ft Buffer
500ft Buffer
0125250500
Feet
SITE
µ
Parcels
Roads
Date: 11/13/2018
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:DCA18-0008e,Version:1
AGENDA CAPTION
HoldapublichearingandconsideradoptionofanordinanceoftheCityofDenton,Texas,amendingthe
DentonDevelopmentCode,AmendingSubchapters13and17relatedtotreepreservation,landscapestandards,
andenvironmentallysensitiveareastandards;providingforapenaltyinthemaximumamountof$2000.00for
violationsthereof;providingforseverability;andestablishinganeffectivedate.(DCA18-0008,Conservation
and Landscape Code, Hayley Zagurski).
City of DentonPage 1 of 1Printed on 3/15/2019
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City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Department of Development Services
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending the
Denton Development Code, Amending Subchapters 13 and 17 related to tree preservation, landscape
standards, and environmentally sensitive area standards; providing for a penalty in the maximum amount
of $2000.00 for violations thereof; providing for severability; and establishing an effective date. (DCA18-
0008, Conservation and Landscape Code, Hayley Zagurski).
BACKGROUND
The tree preservation regulations are currently a component of Sec. 35.13.7, of the Denton Development
Requirements (inclusive of the tree fund) were adopted in 2004 to promote tree preservation and to facilitate
site design and construction that would allow for the long-term viability of trees.
This report briefly outlines the history of meetings, discussions, and changes that have occurred over the
last year regarding updates to the tree, landscape, and environmentally sensitive area (ESA) standards
within the DDC. Additionally, the Considerations section below describes the primary changes proposed
in the consolidated draft of the new Conservation and Landscape Code.
The final draft is similar to what was discussed most recently at the March 5, 2019 City Council Work
Session, but a few key changes were made following that discussion, and these are noted below. Those
changes were presented to the Planning and Zoning Commission at a public hearing on March 6, 2019. At
that time the Planning and Zoning Commission recommended approval of the draft \[5-1\]. Three individuals
from the development community spoke regarding the proposed draft. One indicated that the local
homebuilders have concerns with the impacts this code will have on residential housing development and
costs. The other two, who are members of the local Denton Community Developers Alliance, indicated that
st
the draft was substantially improved from what the February 1 draft they originally reviewed. However,
once was still concerned with the required minimum preservation amounts and indicated that the code
should focus more on planting than on preservation.
Initially, on May 21, 2018 staff presented a number of policy questions regarding the comprehensive rewrite
of DDC Subchapter 13, Tree Preservation and Landscape Standards to the Committee on the Environment
(COE). Policy questions discussed included:
1. Should the city develop a comprehensive Tree Management Plan?
2. Where applicable, should the new code defer to Texas Local Government Code Section 212.905 as the
governing language?
3. Should all or a percentage of tree mitigation plantings be permitted off-site or as street trees?
4. Should the planting of trees in an off-site tree bank (i.e. area set aside as a permanent receiver site for
tree plantings) be explored?
5. If preserved canopy is credited towards meeting tree canopy requirements as part of the landscape
requirements, should it only apply to buffer tree requirements; meaning a developing property would
still be required to provide street trees and trees within the parking lot?
6. Should property owners subject to the tree preservation regulations memorialize their tree preservation
plan through the use of a development agreement, conservation easements, land use or deed restrictions,
or tree preserves/transfer of title to a public agency/entity or other method?
Subsequently, on August 6, 2018 staff presented to the COE specific changes proposed to the Tree Code,
including the following:
o Creates an intent to achieve a 30% tree canopy coverage citywide to promote a multi-aged urban
forest.
o Establishes Exempt, Quality, Heritage and Historic Trees.
o Establishes a Development Impact Area within each lot being developed.
o Establishing Preserved Habitat Areas and Conservation Easements as incentives for preserving trees
in close proximity to each other and to ESA habitats.
On August 22, 2018 staff presented an update on the Tree Code to the Planning and Zoning Commission
during the work session. During this update, staff discussed some of the larger policy questions that had
been previously reviewed with the City Council and COE. A few of the major concerns of the Planning and
Zoning Commissioners included:
Whether mesquite trees should be protected or exempted from preservation requirements.
A desire to focus more on the preservation of high quality trees such as Post Oaks and Blackjack
Oaks.
Whether the 30% preservation goal was sufficient or whether the goal should be increased to 40%.
Staff again presented updates to the tree code and landscape code to the COE on September 17, 2018 and
to the Planning and Zoning Commission on September 26, 2018 and October 10, 2018. At the September
COE meeting, staff was asked to conduct further research into what types of trees are the most efficient at
improv-of-way is available for planting trees if trees are
donated as a result of mitigation requirements, and whether the proposed standards will be sufficient to
meet the proposed canopy coverage goals.
Following the September COE meeting staff researched these topics and further refined the drafts of the
tree preservations and landscape regulations. Staff presented a consolidated draft of the newly proposed
Landscape and Conservation Code, which includes ESA regulations in addition to tree preservation and
landscaping, to the COE on November 5, 2018.
On November 13, 2018 a work session was held with City Council to get policy input and post an updated
draft of the regulations for public input in advance of public hearings. Subsequently, the same draft was
presented to the Planning and Zoning Commission at public hearings on November 28, 2018 and December
12, 2018.
Following these hearings and discussions with other City departments, including the City Att
staff prepared a final draft of the consolidated code and posted this draft for public review on February 1,
2019. This draft was presented to the Committee on the Environment on February 4, 2019. Additional
updates to the draft were made and scheduled for a public hearing with the Planning and Zoning
Commission for February 20, 2019. At this public hearing staff informed the Commission that many
aspects of the proposed regulations are still being actively discussed with stakeholders such as the local
development community. In order to allow additional time for staff to respond to and incorporate much of
this feedback and to finalize the draft, the Planning and Zoning Commission voted \[7-0\] to continue this
item to the March 6, 2019 Planning and Zoning Commission meeting.
Staff again updated the draft based upon input received. The City Manager recommendation was to meet
with Mayor Watts and Council Member Briggs, Chair of the COE, to review and provide feedback on the
latest changes. Three separate meeting were held to collaborate and review changes that address issues
raised by the development community and residents, and how those changes balance property rights and
tree preservation. Staff then also met with members of the local Denton Community Developers Alliance
to review the proposed changes before proceeding to public hearing. A summary of comments received
form the local development community as well as individuals who co
been provided in Exhibit 4.
Outlined below is a summary of the most recent updates to the February 1, 2019 draft, which was updated
based on feedback from the March 5, 2019 City Council work session discussion as well as continued
review and cleanup of language and formatting. The final draft of Subchapter 17 Conservation and
Landscape Code is provided in the Draft Ordinance as Exhibit 2.
CONSIDERATIONS
1. Applicability
th
This section has been reorganized since the March 5 Work Session to further clarify that the
Tree Preservation requirements apply to the following:
o Undeveloped land;
o All nonresidential and multifamily property to be redeveloped including additions or
alterations, but not including interior alterations or exterior alterations that do not
change the footprint of the building, and that do not require the removal of trees; and
o Existing single-family and two-family properties applying for a demolition permit for
the primary structure
Existing Single-family and Duplex are now exempt.
Carried forward existing language for Agricultural Operations
Included exemptions listed in non-protected trees section.
Carried forward existing language on exemptions for understory for completing surveys and
protected trees less than 10 inches dbh to determine a property line.
Site Plans, Preliminary or Final Plat applications or a Building Permit application deemed
complete as of the effective date would also be exempt.
2. Tree Types
Reduced Protected Trees to 4 types
1) Landmark No changes from previous drafts and none currently in the City.
2) Heritage - All Quality trees with a dbh greater than 18 inches and all Post Oaks
with a dbh of six inches or greater.
3) Quality - All healthy non-secondary trees, except Post Oaks that measures
between six inches and up to 18 inches at dbh
4) Secondary - A healthy Ash, Bois D' Arc, Hackberry, or Cottonwood with a dbh
greater than six inches.
thth
Since the March 5 and 6 public meetings, Ash trees have been added as a
Secondary Tree Species due to confirmation that the Emerald Ash Borer has been
found in Tarrant County. Refer to Exhibit 5 for more details.
Preservation primarily based on Heritage and Quality trees. However, following the March
th
5 Work Session the following was added for Secondary Trees:
Secondary Trees There is no minimum preservation required when there are Quality and
Heritage Trees located on a property. In instances where there are no Quality or Heritage
Trees located on a property, then a minimum of 20% of the total dbh of Secondary Trees on
the property must be preserved within the Development Impact Area.
Mitigation based on Heritage, Quality, and Secondary trees.
3. Preservation
Simplified and reduced replacement rate for trees removed.
Seco
Option to reduce minimum preservation of 30% to 20% with additional mitigation of .25
inches for the 10% removed.
Alternative Tree Preservation Plan. Provides an additional option for challenged sites at a
staff level in the following circumstances:
1) To allow trees less than the minimum DBH to be counted for Protected Trees
when:
a. The allowance would result in the preservation of a greater number of Post
Oak trees regardless of DBH; or
b. The preservation of a Protected Trees would cause a substantial burden but
smaller DBH quality trees are located in such a way that the trees can be
incorporated into the site design such as the parking lot, buffer, or front
yard landscaping.
2) To allow Secondary Trees to count towards the minimum required preservation
instead of Quality Trees.
4. Credits and Incentives
Credits based upon Texas Local Government Code 212.905
50% Credit for Residential stayed the same
Reduced Nonresidential to 40% per 212.905
Consolidated credits for Heritage trees and increase credits for Quality trees.
Allow for an additional credit for Secondary trees provided:
Minimum preservation of 30% is achieved for Heritage and Quality Trees; and
Credit for Secondary Trees dbh preserved shall not be greater than 50% of the
preserved Quality tree dbh.
5. Mitigation
Included Cross-Reference to Tree Preservation Relief provisions currently in the DDC
Allows a determination by City Council of whether Tree Preservation and related
development applications, would if not modified or other relief granted, may unreasonably
burden the development of the property.
City Council shall consider whether there is any evidence from which it can
reasonably conclude that the application of all or a part of the provisions of tree
preservation may deprive the applicant of all economically viable use of the
property, based on the following factors:
Whether there is a unique physical circumstance on the property.
Whether the proposed design has minimized the loss of trees to the extent
possible.
Whether preservation and/or mitigation unduly burdens the development of
the property
Payment-in-Lieu. Basing the fee on actual costs to the city for the purchase, planting, and
irrigation of a 2-inch tree for 2-years. The previous draft version had one year and the
current DDC is based upon 3-years.
While not a component of the text amendment, staff recommends increasing the
mitigation fee from $125 an inch to $200 an inch. This fee is based upon a cost of
$190 an inch for the purchase and planting and $6.50 an inch for the irrigation;
$209 rounded down to $200 given the increase in require preservation and increase
in required trees.
Tree Fund. This section was reorganized so that the eligible use of that fund are
6. Landscaping Requirements
The only substantial change made to the landscaping requirements is the following minimum
requirements for new single-family and duplex subdivisions:
o All single-family and duplex lots shall contain a minimum of 1 large shade tree per
dwelling.
o Not less than 30 percent of the front yard shall be landscaped
o Not less than 20 percent of the rear yard shall be landscaped.
Other changes made to the landscape requirements were to further clarify that trees planted for
mitigation of removed trees count towards landscaping and canopy requirements and to further
clarify that all developing uses are required to install compatibility buffers.
OPTIONS
1. Approve as submitted.
2. Approve subject to conditions.
3. Deny.
4. Postpone consideration.
5. Table item.
RECOMMENDATION
Staff recommends approval of the draft Subchapter 17 and Subchapter 13 as provided.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
Committee on the Environment
5/21/2018
8/6/2018
9/17/2018
11/05/2018
02/04/2019
City Council
04/24/2018 Work Session
11/13/2018 Work Session
03/05/2019 Work Session
Planning and Zoning Commission
8/22/2018 Work Session
9/26/2018 Work Session
10/10/2018 Work Session
11/28/2018 Public Hearing
12/12/2018 Public Hearing
02/20/2019 Public Hearing
03/06/2019 Public Hearing The Commission recommended approval of the draft Conservation and
Landscape Code \[5-1\].
DEVELOPER ENGAGEMENT DISCLOSURES
No developer contact and/or meeting disclosures have been provided to staff as of the issuance of this
report.
EXHIBITS
1. Agenda Information Sheet
2. Draft Ordinance
3. Presentation
4. Public Comments
5. Emerald Ash Borer Memo
6. Planning and Zoning Commission Meeting Minutes
Respectfully submitted:
Richard D. Cannone, AICP
Deputy Director/Planning Director
S:\\Legal\\Our Documents\\Ordinances\\19\\DCA18-0008 Landscape and Tree Amendment.docx
ORDINANCE NO. ______________
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING THE DENTON
DEVELOPMENT CODE, AMENDING SUBCHAPTERS 13 AND 17 RELATED TO TREE
PRESERVATION, LANDSCAPE STANDARDS, AND ENVIRONMENTALLY SENSITIVE
AREA STANDARDS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF
$2,000.00 FOR VIOLATIONS THEREOF; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE. (DCA18-0008)
WHEREAS, pursuant to Ordinance No. 2002-040, the City Council of the City of
WHEREAS, Sections 35.13.7, 35.13.8, and 35.13.10, and 35.13.13.3 of the DDC provide
for requirements for tree preservation, landscaping, street trees, and compatibility buffers and
Subchapter 35.17 provides for requirements for Environmentally Sensitive Areas (ESA); and
WHEREAS, the City desires to amend the tree preservation, landscaping, and ESA
regulations, specifically including the relocation of all tree preservation and landscaping
requirements from Subchapter 13 to Subchapter 17 in order to create consolidated Conservation
and Landscape Requirements; and
WHEREAS, the City also desires to amend the current standards for tree preservation and
landscaping in order to make a more understandable and efficient code for the citizens of the
City of Denton; and
WHEREAS, on both November 28, 2018, December 12, 2018, and February 20, 2019 the
Planning and Zoning Commission, in compliance with the laws of the State of Texas, has given
the requisite notices by publication, held due hearings, and provided opportunity for public
comment on these proposed amendments to the Denton Development Code; and
WHEREAS, on March 6, 2019, the Planning and Zoning Commission, in compliance
with the laws of the State of Texas, has given the requisite notices by publication, held due
hearings and recommended approval \[5-1\] of these proposed amendments to the Denton
Development Code; and
WHEREAS, on March 19, 2019, the City Council likewise conducted a public hearing in
accordance with local and state law, and the City Council hereby finds that the subject
amendments to Subchapter 35.13 and Subchapter 35.17 are consistent with the C
comprehensive plan, and federal, state, and local law, and are in best interests of the citizens of
the City of Denton; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance
are incorporated herein by reference and found to be true.
SECTION 2. The following amendments to Denton Development Code Subchapter
35.13, are hereby adopted as shown:
hereby amended to add cross-references to DDC Subchapter 35.17, under the
these relocated provisions.
DDC Section 35.13.7. is deleted in its entirety, and superseded by amendments to
DDC Subchapter 35.17, as set forth by reference in SECTION 2 of this
Ordinance, below.
DDC Section 35.13.8. is deleted in its entirety, and superseded by amendments to
DDC Subchapter 35.17, as set forth by reference in SECTION 2 of this
Ordinance, below.
DDC Subsection 35.13.10.C. is deleted in its entirety, and superseded by
amendments to DDC 35.17, as set forth by reference in SECTION 2 of this
Ordinance, below. Subsections 35.13.10.A. and 35.13.10.B. remain as currently
written, without modification.
DDC Subsection 35.13.13.3.b. is hereby amended to read as follows:
b. Landscape Standards. Applicable landscaping standards are defined in
Subchapter 35.17.
All remaining provisions of DDC Subchapter 35.13 not explicitly amended above
are to remain as currently written.
SECTION 3. The amendments to Denton Development Code Subchapter 35.17, as
presented in Exhibit A, and incorporated by reference herein, are hereby adopted as shown in
that Exhibit.
SECTION 4. Any person, firm, partnership or corporation violating any provision of
this ordinance shall, upon conviction, be deemed guilty of a misdemeanor and shall be punished
by fine in a sum not exceeding $2,000.00 for each offense. Each day that a provision of this
ordinance is violated shall constitute a separate and distinct offense.
SECTION 5. If any provision of this ordinance or the application thereof to any person
or circumstance is held invalid by any court, such invalidity shall not affect the validity of the
provisions or applications, and to this end the provisions of this ordinance are severable.
SECTION 6. An offense committed before the effective date of this ordinance is
governed by prior law and the provisions of the Denton Code of Ordinances, as amended, in
effect when the offense was committed, and the former law is continued in effect for this limited
purpose.
SECTION 7. In compliance with Section 2.09(c) of the Denton Charter, and in order to
facilitate a smooth and orderly transition, this ordinance and the changes made therein shall
become effective on October 1, 2019, and the City Secretary is hereby directed to cause the
caption of this ordinance to be published twice in the Denton Record-Chronicle, a daily
newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage.
The motion to approve this ordinance was made by __________________________ and
seconded by _________________________________, the ordinance was passed and approved by
the following vote \[___ - ___\]:
Aye Nay Abstain Absent
Mayor Chris Watts: ______ ______ ______ ______
Gerard Hudspeth, District 1: ______ ______ ______ ______
Keely G. Briggs, District 2: ______ ______ ______ ______
Don Duff, District 3: ______ ______ ______ ______
John Ryan, District 4: ______ ______ ______ ______
Deb Armintor, At Large Place 5: ______ ______ ______ ______
Paul Meltzer, At Large Place 6: ______ ______ ______ ______
PASSED AND APPROVED this the _____ day of _____________, 2019.
_______________________________________
CHRIS WATTS, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY: /s/Jerry E. Drake, Jr.
1 SUBCHAPTER 17 CONSERVATION AND LANDSCAPING REQUIREMENTS
2 35.17.1 Definitions and Terms
3 Building Pad: The actual foundation area of the primary building and a 10-foot clear area extending
4 from the foundation perimeter, necessary for construction and grade transitions.
5 Calculated dbh: The combined dbh of the Tree(s) to be removed, multiplied by the appropriate Tree
6 classification ratio, as described Subsections 35.17.3.I.7 of this subchapter.
7 Dead or Unhealthy Tree: Means any tree certified by a ISA certified arborist, an ASCA registered
8 arborist, a SAF certified forester, or a registered landscape architect, to be dead or significantly diseased
9 beyond recovery, injured, or hazardous and in danger of falling or dying.
10 Development Impact Area: Means and includes any man-made change to improved or unimproved real
11 estate, including but not limited to, accessory buildings or other structures, paving, drainage or utilities.
12 Development activities include: subdivision of land; construction or alteration of structures, roads,
13 parking, fences, pools, signs, temporary uses, utilities, and other facilities; installation of septic systems;
14 grading; excavation, mining or drilling operations; deposit of refuse, debris, or fill materials; and clearing
15 of natural vegetative cover (with the exception of agricultural activities as defined and as permitted).
16 Environmental Sensitive Areas (ESA), Conservation Easements, and Preserved Habitat are excluded from
17 the Development Impact Area.
18 Heritage Trees: All Quality trees with a dbh greater than 18 inches and all Post Oaks with a dbh of six
19 inches or greater.
20 Landmark Trees: A healthy tree that is designated by the property owner on the Texas Big Tree Registry
21 regardless if the tree is protected or a non-protected tree; or a tree designated as a Historic Tree where
22 an event of historic significance occurred that had local, regional, or national importance; or at the
23 home of a citizen who is famous on a local, regional, or national basis; or that has taken on a legendary
24 stature in the community, is mention in literature or documents of historic value, or is considered
25 unusual due to size, age, or other landmark status. Historic Trees shall be designated following the
26 Historic Landmark Designation procedure.
27 Mitigation dbh: The total combined dbh of trees removed that must be mitigated by replanting, or by
28 alternative means as described in subsection 35.17.3.I of this subchapter. This total is determined by
29 subtracting credits granted for preserved trees from the Preliminary Mitigation dbh.
30 Non-Protected Tree: The following are considered Non-Protected Trees:
31 a. Dead or Unhealthy Trees;
32 b. Tree that poses an imminent or immediate threat to persons or property;
33 c. Crepe Myrtles and ornamental pears;
34 d. Mesquite unless part of a Preserved Habitat or Conservation Easement;
35 e. Honey Locust, unless part of a Preserved Habitat or Conservation Easement; or
36 f. Any tree listed on the Texas Department of Agriculture Noxious and Invasive Plant List.
37
38 Nuisance. Physical or environmental conditions resulting in regular and/or continuous problems
39 affecting the health, safety, and quality of life of citizens.
Conservation & Landscape 3/15/2019 12:36 PM 1
40 Preliminary Mitigation dbh: The numeric result determined by multiplying the total Calculated dbh of
41 trees to be removed by 50%.
42 Preserved Habitat: Areas adjacent to an ESA where vegetation is retained to preserve natural ecological
43 conditions and protect wildlife.
44 Protected Trees: Landmark, Heritage, Quality, or Secondary Trees, as defined here or in Subchapter 23.
45 Quality Trees: All healthy non-secondary trees, except Post Oaks that measure between six inches and
46 18 inches dbh.
47 Replacement Inches: The total combined dbh, in inches, of all Protected Trees that are proposed to be
48 removed and that are located within the Development Impact Area.
49 Secondary Tree: A healthy Ash, Bois D' Arc, Hackberry, or Cottonwood tree, with a dbh greater than six
50 inches.
51 Tree Protection Zone (TPZ): is an area shown on a Tree Survey and Preservation Plan and field
52 inspected where construction activities are prohibited or restricted to prevent injury to preserved trees,
53 especially during pre-construction and construction, and includes the Critical Root Zone and/or beyond.
54 35.17.2 Environmentally Sensitive Areas (ESAs)
55 A. Purpose.
56 This Section is intended to achieve the following goals:
57 1. Manage and protect environmentally sensitive areas within the City.
58 2. Protect the natural and ecological resources that are essential elements of the City's health
59 and community character and which provide irreplaceable plant and wildlife habitat;
60 3. Establish a development framework for the City that respects private property rights, while
61 encouraging them to be used responsibly for the benefit of the entire community;
62 4. Preserve and enhance the City's distinctive community character and quality of life by
63 ensuring that its natural and built environments are consistent with the community vision
64 and values embodied in the comprehensive plan.
65 5. Establish regulations that conform to the requirements of the state and federal government
66 regarding air quality, water quality and environmental protection.
67
68 B. Applicability.
69 1. The standards of this Subsection shall apply to all land and all development within the
70 corporate limits of the City, except as otherwise specifically provided for in this Subchapter.
71 2. The floodplain standards of this Subchapter shall apply to all land and all development within
72 the extraterritorial jurisdiction (ETJ) of the City.
73 3. The type of regulation applicable to the land depends upon the specific ESA classification
74 determined for the property in question on the on the Environmentally Sensitive Areas Map. If
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75 specific ESA regulations conflict with other regulations of this Subsection, the more stringent
76 of the two regulations shall apply.
77 4. Exemptions:
78 a. Property that does not contain any Environmentally Sensitive Areas as depicted on the
79 City's Environmentally Sensitive Areas Map.
80 b. Grading, filling, cutting or other earth-moving activity on any lot involving less than
81 twenty-five (25) cubic yards for residential projects, or fifty (50) cubic yards for non-
82 residential projects.
1
83 c. Lots platted for with single-family or duplex uses before February 20, 2002.
84 d. The applicant can demonstrate through an Environmentally Sensitive Area field
85 assessment application the subject property contains no Environmentally Sensitive
86 Areas or their location is not as depicted on the ESA map.
87 C. Official Map.
88 1. Environmentally Sensitive Areas Map.
89 The official map that identifies areas designated as Environmentally Sensitive Areas (ESAs).
90 2. Environmentally Sensitive Areas Map Amendments.
91 a. The map may be updated administratively when an ESA field assessment is conducted
92 for a property and approved by the Director of Development Services.
93 b. The ESA map may be updated administratively when the FEMA 1%Annual Chance Flood
94 Zone s are revised or amended.
95 c. Substantial amendments of the map shall follow the Zoning Amendment Procedure
96 detailed in Subchapter 3. Substantial amendment is defined as changes impacting the
97 whole city, excepting changes caused by the publication of new flood insurance rate
98 maps (FIRMs) by FEMA.
99 3. Environmentally Sensitive Areas Field Assessments.
100 Field assessments are required prior to platting of property when there is reasonable evidence
101 that Environmentally Sensitive Areas, as depicted on the official ESA Map, may not be accurate.
102 ESA field assessments that require map adjustment shall supersede the official ESA Map in
103 determining what areas of a proposed development are subject to the requirements of this
104 Subchapter.
105 a. Information Required.
106 i. Information as required on the Environmentally Sensitive Area Assessment
107 application and checklist must be provided. Additional information deemed
108 appropriate and necessary to process the application may be required for
109 development review and determination of permit completeness.
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EXPLANATORY REFERENCE: Date of adoption of ESA regulations with Denton Development Code.
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110 b. Expiration.
111 i. An Environmentally Sensitive Areas field assessment shall expire two (2) years
112 after its approval, or if the natural conditions of the ESA have been significantly
113 altered.
114 c. Appeals.
115 i. Appeals to staff determinations shall follow the Zoning Amendment Procedure
116 detailed in Section 35.3.4.
117 4. Text Applicability.
118 The text of this Subchapter, including definitions, describes and regulates the protected ESAs
119 shown on the City's Environmentally Sensitive Areas Map. In the case of any discrepancy, the
120 text of Section 35.17.2 shall control.
121 D. Environmentally Sensitive Areas Criteria Manual.
122 In addition to meeting the requirements expressly established in this Subchapter, all environmentally
123 sensitive areas shall comply with the Environmentally Sensitive Areas Criteria Manual. Where there is
124 conflict between a provision set forth in this Subchapter and a provision of the Environmentally Sensitive
125 Areas Criteria Manual, the provisions of this Subchapter shall apply.
126 E. Criteria for Approval.
127 1. Review Required.
128 Environmentally Sensitive Area compliance review for residential or non-residential
129 development must be performed as part of a final plat application, site plan application, clearing
130 and grading permit, or any other applicable permission to commence land-clearing activity.
131 2. Information Required.
132 Information as required on the applicable checklist must be provided. Additional information
133 deemed appropriate and necessary to process the application may also be required.
134 3. Criteria for Approval.
135 The requirements of an Environmentally Sensitive Areas review shall be deemed met either
136 upon approval of an alternate environmentally sensitive area plan, as set forth in §35.17.2. J.,
137 below, or when the applicant demonstrates:
138 a. The land development activity complies with the requirements of this Subchapter for
139 floodplains, Riparian Buffers, Water Related Habitat, and Upland Habitat, as well as all
140 other federal, state or local laws as part of the final plat or site plan;
141 b. The land disturbing activity will not cause damage to Environmentally Sensitive Areas
142 adjacent to the areas to be disturbed;
143 c. The land disturbing activity complies with the requirements of Subchapter 18;
144 d. Protective fencing as specified in the Environmentally Sensitive Areas Criteria Manual
145 has been established at the perimeter of the ESA. Protective fencing shall clearly mark
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146 and delineate all ESAs to be protected and preserved for the duration of the land
147 disturbing activities on the property; and
148 e. A wetland delineation by a trained scientist has been performed if encroachments into
149 jurisdictional wetlands are proposed, and a Section 404
150 Nationwide Permit or a Letter of Permission from the U.S. Army Corps of Engineers has
151 been obtained.
152 4. Expiration.
153 The Environmentally Sensitive Area review shall expire when the final plat for residential
154 development approval expires, or when the site plan approval for a non-residential
155 development expires.
156 5. Credit.
157 Any Environmentally Sensitive Area that is preserved may be used towards meeting:
158 a. Park land dedication in accordance with Chapter 22, Article III of the Denton Code of
159 Ordinances.
160 b. Drainage standards in accordance with Subchapter 19.
161 F. Floodplain Development ESAs.
162 Upon field verification, areas designated as FEMA 1% Annual Chance Floodplain would be classified
163 according to the existing conditions as Developed or Undeveloped floodplains.
164 1. Developed Floodplain.
165 a. Development within the Developed Floodplains shall comply with Subchapter 35.19
166 Drainage Standards.
167 b. Section 35.17.2.G applies when Riparian buffers and Water-related habitats are nested,
168 partially or wholly, inside Developed floodplain ESAs.
169 c. Gas well drilling and production within developed floodplains shall comply with
170 Subchapter 35.22 (Gas Well Drilling and Production).
171 2. Undeveloped Floodplain.
172 The following uses and activities are regulated in the Undeveloped Floodplain.
173 a. Permitted Uses and Activities.
174 The following permitted uses and activities are allowed if compliant with the Subchapter
175 19 Drainage Standards and Chapter 30 of the Code of Ordinances:
176 i. The planting of any new trees or vegetation.
177 ii. Restoration or enhancement of floodplains, riparian buffers, water related
178 habitats, upland habitats, wetlands and streams as required by federal and state
179 standards.
180 iii. The placement of public or private utility facilities, such as sewer, storm water,
181 water, electricity, gas, or other utilities as long as the disturbed area is restored to
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182 minimized erosion and promote the recovery of the Environmentally Sensitive
183 Areas, and when adequately flood proofed.
184 iv. Measures to remove or abate nuisances, the removal of invasive plant species, or
185 any other violation of federal, state or local law, with the approval of the
186 Department of Environmental Services.
187 v. Parking lots, subject to the limitations on fill as specified in Section 35.17.2.F.2.c
188 and constructed of pervious materials.
189 vi. Parks, open space, recreational uses, trails, walkways and bike paths.
190 vii. Storm water quality controls.
191 viii. Construction of roadways identified on the Mobility Plan as long as the disturbed
192 areas are restored to minimize erosion and promote the recovery of the
193 Environmentally Sensitive Area subject to the Director of Environmental Services
194 approval.
195 ix. Routine repair and maintenance of existing structures, roadways, driveways,
196 utilities, and accessory uses.
197 x. Agricultural activity permitted through Nationwide Permit 40 (NWP 40),
198 Agricultural Activities pursuant Section 404 of the Clean Water Act or any other
199 federal permits.
200 xi. Any action taken by federal, state, or local officials in an emergency to mitigate an
201 existing or potential hazard.
202 xii. The construction of a private driveway, as long as the disturbed areas are restored
203 to minimize erosion and promote the recovery of the Environmentally Sensitive
204 Area subject to the Department of Environmental Services approval.
205 xiii. Gas well drilling and production shall comply with Subchapter 35.22 Gas Well
206 Drilling and Production.
207 xiv. Fill activities subject to the limitations of Section 35.17.2.F.2.c.
208 xv. Culverts and bridges, as long as the disturbed areas are restored to minimize
209 erosion and promote the recovery of the Environmentally Sensitive Area subject to
210 the Department of Environmental Services approval. Culverts and bridges are
211 exempt from the limitations of Section 35.17.2.F.2.c.
212 b. Prohibited Uses and Activities.
213 The following prohibited uses and activities are not allowed in Undeveloped Floodplains:
214 i. Placement, handling, processing, or storage of hazardous waste. Hazardous waste
215 and solid waste landfills.
216 ii. Land disturbing activity not authorized by a U.S. Army Corps of Engineers Section
217 404 Permit or Letter of Permission.
218 iii. Any new structures or additions, including garages and carports, and storage sheds
219 located within the area mapped as Undeveloped Floodplain.
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220 iv. Tree and understory vegetation removal, except as allowed by Subsection 35.22.9
221 and 35.19.4.E.2.
222 v. Septic tanks, septic tank drain fields, and other forms of on-site wastewater
223 treatment.
224 c. Standards for fill in Undeveloped Floodplains.
225 The following are standards for fill in the Undeveloped floodplain:
226 i. Filling of any floodplain of a stream that drains more than one (1) square mile is
227 prohibited unless the fill on any lot is less than fifty (50) cubic yards or three
228 hundred (300) cubic feet per acre, whichever is greater.
229 ii. Up to fifteen (15) percent of the floodplain valley storage may be filled if the stream
230 drains less than one (1) square mile.
231 iii. In addition to meeting the requirement for fill set above, all fill activities in the
232 Undeveloped floodplain shall comply with the Environmental Sensitive Area
233 Criteria Manual, Subchapter 19 Drainage Standards, and federal law.
234
235 G. Riparian Buffer and Water Related Habitat ESAs .
236 The following section defines permitted and prohibited uses and activities within Riparian Buffers and
237 Water Related Habitats. In areas where multiple types of ESA overlap the standards, permissions, and
238 prohibitions specified for those other types of ESA as outlined in this Subsection also apply.
239 1. Permitted Uses and Activities.
240 a. Placement of private residential yard amenities, including but not limited to: gardens,
241 yards, trails, and clearings, that would result in disturbing up to ten (10) percent of the
242 area, but in no instance shall the protective buffer width be decreased below twenty-
243 five (25) feet, measured each direction from the centerline of the existing channel, or
244 the outer edge of surface water bodies. No disturbance is permitted in delineated
245 wetlands.
246 b. Riparian buffers nested, partially or wholly, inside Developed floodplains may be
247 disturbed up to ten (10) percent of the area, but in no instance shall the protective
248 buffer width be decreased below twenty-five (25) feet measured each direction from
249 the centerline of the existing channel, or from the outer edge of surface water bodies.
250 No disturbance is permitted in delineated wetlands.
251 c. Repair, replacement or improvement of public utility facilities where the disturbed
252 portion of the Environmentally Sensitive Area is restored, and vegetation listed as
253 invasive is removed and replaced with vegetation from the CityNative Plant List in the
254 Site Design Criteria Manual.
255 d. Additions, alterations, rehabilitation, or replacement of existing structures that do not
256 increase the existing structural footprint in the Riparian Buffer or Water Related Habitat.
257 Any disturbed areas must be restored using native vegetative cover.
258 e. Stream, wetland, riparian and upland enhancement or restoration projects.
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259 f. Agricultural activity, including buildings and structures, permitted through Nationwide
260 Permit 40 (NWP 40), Agricultural Activities pursuant to Section 404 of the Clean Water
261 Act, or any other federal permit.
262 g. Routine repair and maintenance of existing structures, roadways, driveways, utility
263 facilities, accessory uses and other development.
264 h. Construction of roadways identified on the City Mobility Plan, as long as the disturbed
265 areas are restored to minimize erosion and promote the recovery of the
266 Environmentally Sensitive Area, and subject to the Director of Environmental Services
267 approval.
268 i. Measures to remove or abate nuisances, or any other violation of state statute,
269 administrative rule, or City Code of Ordinances.
270 j. Any action taken by the City in an emergency to mitigate an existing or potential hazard.
271 k. Gas well drilling and production within riparian buffers and water related habitats shall
272 comply with Subchapter 35.22 Gas Well Drilling and Production and with the use
273 regulations in Subchapter 35.5.
274 2. Prohibited Uses and Activities.
275 The following uses and activities are not allowed in Riparian Buffers and Water Related Habitats:
276 a. Land disturbing activity not authorized by a US Army Corps of Engineers Section 404
277 Permit Letter of Permission.
278 b. Tree and understory vegetation removal, except as allowed by Subsection 35.19.4.E.2.
279 c. Placement, handling, processing, or storage of hazardous waste.
280 d. Any structures, including storage sheds, garages and carports.
281 e. Septic tanks, septic tank drain fields, and other forms of onsite wastewater treatment.
282 H. Cross Timbers Upland Habitat ESAs.
283 The following section defines permitted and prohibited uses and activities within Upland Habitat In areas
284 where multiple types of ESA overlap the standards, permissions, and prohibitions specified for those other
285 types of ESA as outlined in this Subsection also apply.
286 1. Permitted Uses and Activities:
287 a. Residential development shall be designed to retain a contiguous fifty (50) percent of
288 the area defined as Upland Habitat, which shall remain predominantly in its natural
289 state. Preservation of upland habitat contiguous to forested areas on adjacent
290 properties or parcels is strongly encouraged. Trees removed shall be considered part of
291 the Development Impact Area of a site and will be subject to tree preservation and
292 landscape requirements.
293 b. Non-residential development shall be designed to retain thirty (30) percent of the area
294 defined as Upland Habitat, which shall remain predominantly in its natural state.
295 Preservation of upland habitat contiguous to forested areas on adjacent properties or
296 parcels is strongly encouraged. Trees removed shall be considered part of the
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297 Development Impact Area of a site and will be subject to tree preservation and
298 landscape requirements.
299 c. Selective pruning conducted by or under the supervision of an International Society of
300 Arboriculture (ISA) certified arborist is allowed to remove up to one-quarter of the
301 preserved canopy area for the purposes of tree health, subject to the approval of the
302 Environmental Services Department.
303 d. Enhancement or restoration projects as approved by the Department of Environmental
304 Services. Funds expended on an approved enhancement or restoration project may be
305 credited against required replacement in Section 32.17.2.I.
306 2. Prohibited Uses and Activities.
307 a. Septic tanks, septic tank drain fields, and other forms of on-site wastewater treatment are
308 prohibited in areas set aside for required preservation.
309 I. Development Clustering
310 Development clustering is encouraged to minimize impact to the natural environment. Clustering shall be
311 designed to maintain a contiguous forested area.
312 J. Alternative Environmentally Sensitive Area Plans.
313 1. Approval Process.
314 The Alternative Environmentally Sensitive Area Plan provides the option to address the
315 regulations through a flexible discretionary process utilizing the Zoning Amendment Procedure
316 outlined in Subchapter 35.3.4.
317 2. Development Impact Area
318 If an Alternative Environmentally Sensitive Area Plan is approved, any areas of the ESA in which
319 encroachment is permitted are considered part of the Development Impact Area of a site and
320 are subject to tree preservation and landscape requirements.
321 Areas of ESA that are to be left undisturbed will be excluded from the Development Impact
322 Area. Additionally, areas restored or provided as mitigation as part of an approved Alternative
323 ESA plan will be excluded from the Development Impact Area.
324 3. Criteria for Approval.
325 City Council may approve the alternative plan with conditions necessary to mitigate the impacts
326 of the proposed development upon considering the factors and goals noted in this section.
327 a. Mitigation goals are obtained by creating, expanding, and/or improving
328 environmentally sensitive areas.
329 b. Mitigation goals are obtained by preserving environmentally sensitive areas above the
330 minimum requirements, exchanges between different types of ESAs, installing pollution
331 prevention controls, and/or implementing best management practices or any other
332 approaches that result in the improvement of the environment being impacted.
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333 c. Areas offered as mitigation are linked to existing or planned open space or conserved
334 areas to provide an overall open space system.
335 d. Development is arranged for maximizing access and utilization of the environmentally
336 sensitive areas by citizens.
337 e. Areas offered as mitigation are placed either in a lot or lots that incorporate a
338 permanent conservation easement, a preserved habitat, restrictive covenants, or such
339 other legal mechanism to allow for the long term conservation of said areas. Such legal
340 mechanisms shall limit any future land disturbing activity or construction within the
341 environmentally sensitive areas, shall run with the land, and shall be binding upon all
342 successors and assigns of the current owner.
343 f. The Alternative Environmentally Sensitive Area Plan shall demonstrate that the property
344 owner's alternative proposal results in a high-quality development meeting the intent
345 of the standards in the Denton Development Code.
346 4. Information Required.
347 Information as required on the alternative environmentally sensitive areas plan checklist must
348 be provided. Additional information deemed appropriate and necessary to process the
349 application may also be required.
350
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351 35.17.3 Tree Preservation
352 A. PURPOSE AND INTENT.
353 1. Purpose. The Denton Plan identifies the importance of environmental management, while
354 allowing reasonable and responsible development of land within the City. Towards this end, the
355 purpose of these regulations is to promote the preservation and expansion of tree canopy,
356 facilitate site design and construction that contributes to the long term viability of existing trees,
357 and to establish a process to manage the removal of tree canopy. Further, this Subchapter is
358 intended to accomplish the following public purposes:
359 a. Protect trees and promote the ecological, environmental, and aesthetic values of the
360 City;
361 b. Maintain and enhance a positive image of the City through the preservation,
362 mitigation, and planting of trees;
363 c. Prevent the untimely and indiscriminate removal or destruction of trees and clear-
364 cutting of land;
365 d. Provide for a permitting and enforcement procedure;
366 e. Preserve the public health, safety, and general welfare of citizens;
367 f. Encourage the protection of healthy trees and provide for the replacement of trees that
368 are necessarily removed during construction, development, or redevelopment;
369 g. Provide for the preservation and protection of larger native and established trees, which
370 provide a valuable amenity to the urban environment and which, once destroyed, can
371 only be replaced after generations, if at all;
372 h. Enhance and preserve established tree stands adjacent to Environmental Sensitive Areas
373 in order to further protect wildlife habitats and reduce impacts from new developments;
374 i. Provide for shade, windbreaks and the cooling of air; thereby, reducing dependence upon
375 air conditioning and its drain upon nonrenewable energy sources;
376 j. Provide for open space and more efficient drainage of land; thereby, reducing the effects
377 of soil erosion and the need for additional drainage facilities.
378
379
380 B. APPLICIBILITY
381 1. Unless exempted by subsection B.2, below, the requirements of 35.17.3 apply to:
382 (a) Undeveloped land;
383 (b) All nonresidential and multifamily property to be redeveloped including additions or
384 alterations, but not including interior alterations or exterior alterations that do not
385 change the footprint of the building, and that do not require the removal of trees;
386 and
387 (c) Existing single-family and two-family properties applying for a demolition permit for
388 the primary structure, provided that the minimum dbh for protected trees shall be
389 ten inches or greater.
390 2. Exemptions
391 (a) Agricultural operations under Tex. Agric. Code Sec. 251.002(1)
392 (b) Property on which a single-family or two-family residential dwelling unit(s) exists
393 i. Trees designated for preservation on an approved Tree Survey or
394 Preservation Plan and/or an associated Plat shall be preserved unless
395 otherwise exempt under Texas Local Government Code 212.905 or its
396 successor
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397 (c) Any tree determined to be diseased beyond recovery, dying, dead, creating a public
398 nuisance or damaging a foundation by a qualified professional.
399 (d) Any tree determined to be causing a danger, or to constitute a hazardous condition,
400 as a result of a natural event such as tornado, storm, flood or other act of God, that
401 endangers the public health, welfare or safety and requires immediate removal.
402 (e) Any tree listed on the Texas Department of Agriculture Noxious and Invasive Plant
403 List
404 (f) Clearing of understory necessary to perform soil borings, boundary surveying of real
405 property, to conduct tree surveys or inventories, or to install tree protection
406 fencing, provided that clearing for surveying shall not exceed a width of four (4) feet
407 for general survey (Ļ͵ŭ͵Ͳ of easement boundary) and eight (8) feet for survey of
408 property boundary lines, and provided that any Protected Tree having a dbh of ten
409 (10) inches dbh or greater may not be removed under this exemption. For the
410 installation of tree protection fencing the clearing shall not exceed a width of four
411 (4) feet, measured radially from the trunk, and must not encroach into the dripline
412 or critical root zone of any tree to be protected.
413 (g) Site Plan, Preliminary or Final Plat applications, or a Building Permit application
414 deemed complete as of the effective date of this Subchapter.
415
416 C. TREE REMOVAL PERMIT
417 1. New Development/Construction. In the event it becomes necessary to remove a Tree for
418 development or construction, a Tree Removal Permit is required. No protected tree may be
419 removed for development or construction until the final plat has been approved and the
420 Building Official has properly issued a Tree Removal Permit for that purpose. In instances
421 where a final plat is not required, proposed removal of protected trees shall be reviewed with
422 any required site plan for development.
423 a. All areas within the public rights-of-way, utility easements or drainage easements, as
424 shown on an approved Plat, and areas designated as cut/fill on the related drainage plan
425 approved by the City Engineer, shall be subject to the requirements of this Subchapter.
426 2. Municipal/Public Property. Property owned by the City of Denton, State of Texas, a political
427 subdivision of the State of Texas, or any public school, pubic school district, or nonprofit
428 charter school shall be subject to requirements of Section 35.17.3.
429 3. Tree Removal Permit Required
430 a. No Protected Trees may be removed or transported until authorized by a Tree Removal
431 Permit. It shall be an affirmative defense to prosecution that permitting is exempted by
432 35.17.3.C.3.b or 35.17.3.C.4.
433 4. Tree Removal Permit Review and Approval Process.
434 a. Applicant submits a complete application, along with the applicable fees.
435 b. A Tree Survey and Tree Preservation Plan is required for all new development, in
436 accordance with subsection 35.17.3.F.
437 c. A Tree Removal Permit is valid for one hundred eighty (180) days, or for the duration
438 of a Building Permit, Clearing and Grading Permit, or Clearing and Grubbing Permit
439 issued in conjunction with the Tree Removal Permit, whichever is longer.
440 d. Protected trees shall not be removed until:
441 i. Proper mitigation or replacement requirements have been determined and
442 approved for the lot or site on an approved Tree Survey and Preservation Plan;
443 and
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444ii. A preconstruction meeting has been held with proper city staff authorizing
445grading and construction activities to begin on the lot or site; and/or
446iii. A tree removal permit has been issued for the lot or site.
447
4485. Standard for Relocating Heritage and Quality Trees.
449All permitted tree relocations shall comply with applicable American National Standards for Tree
450Care Operations ANSI A300.
4516. Permits Issued for Public Need, Danger, or Calamity
452a. The Director or designee may issue a permit for the removal of a Protected Tree, provided
453that it:
454i. is determined to be in a hazardous or dangerous condition so as to endanger the
455public health, welfare, or safety;
456ii. hinders or obstructs the construction, maintenance, repair, or replacement of
457City streets, water and sewer lines, and drainage and storm sewer;
458iii. is located in any right-of-way required under the Mobility/Thoroughfare plan to
459be dedicated to, and accepted by the City. This does not include trees being
460removed for proposed driveways, right and left turn lanes, or median openings
461required or warranted by a development. Trees removed in these instances shall
462be replaced per Section G;
463iv. hinders or obstructs the construction, repair, maintenance, or replacement of
464public improvement projects, including, but not limited to, major collection lines
465for sanitary sewer, distribution lines for water, collection and management of
466storm water runoff, and thoroughfares designated for construction in
467Capital Improvement Project plan, Water and Sanitary Distribution Line Maps, or
468Mobility/Thoroughfare Plan;
469v. is damaged or killed by a tornado, ice or wind storms, flooding, or other acts of
470nature; or
471vi. is otherwise required by statute.
472
473 D. TREE PROTECTION REQUIREMENTS DURING CONSTRUCTION
474Property owners shall adhere to the following tree protection measures on all construction sites,
475consistent with Figure 17-1.
4761. Prior to grading, brush removal, or construction, the developer shall clearly tag or mark all
477trees to be preserved.
4782. The developer shall erect an orange
479plastic mesh fence, or other approved
480fencing material, a minimum of 4 feet in
481height around each tree or group of trees
482to prevent the placement of debris,
483equipment, or fill within the dripline or
484critical root zone. The fence shall be
485installed prior to the release of any
486permit. If the protection fence is found
487removed, damaged, or altered at any
488time during construction, prior to final
489inspection or landscape installation, a
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490stop work order may be issued by the Building Official.
4913. During the construction phase of development, the developer shall prohibit cleaning, parking,
492or storage of equipment or materials under the canopy of any tree or group of trees required
493to be preserved. The developer shall not allow the disposal of any waste material harmful to
494tree growth and health, such as, but not limited to, paint, oil, solvents, asphalt, concrete, or
495mortar in the dripline area.
4964. No attachments or wires of any kind, other than those intended to identify or protect a
497protected tree, shall be attached to any tree.
4985. No fill or excavation may occur within the drip line of a tree to be preserved unless there is a
499specific approved plan for use of tree wells or retaining walls. Any plan proposing the use of
500tree wells or retaining walls within the drip line of a tree to be preserved shall be designed by
501a licensed landscape architect. Major changes of grade (4 inches or greater) will require
502additional measures to maintain proper oxygen and water exchange with the roots. In
503addition, the developer should adhere to the following guidelines to protect the trees to be
504preserved:
505a. With grade changes, a reinforced
506retaining wall or tree well of a design
507approved by the city should be
508constructed around the tree no closer
509than half the distance between the trunk
510and the drip line. The retaining wall
511should be constructed so as to maintain
512the existing grades around a tree or group
513of trees.
514b. At no time should a wall, pavement, or
515porous pavement be placed closer than 5
516feet or one foot for every 2 inches in
517caliper, whichever is greater, to the trunk
518of the tree.
519c. In instances where tree wells or retaining
520walls are approved, root pruning may be
521necessary when the critical root zone is to
522be disturbed. See Figure 17-2.
523d. If a patio, sidewalk, drive, parking lot, or
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524other paved surface must be placed
525within the drip line of an existing tree, material such as a porous pavement or other
526approved construction methods that will allow the passage of water and oxygen may
527be required.
528
529
530 E. TREE SURVEY AND PRESERVATION/REPLACEMENT PLAN
5311. Tree Survey and Preservation/Replacement Plan is required for the Development Impact
532Areas and must accompany the initial application for a site plan, preliminary plat, replat, gas
533well site plan, or a clear and grade permit, regardless of the number of trees present on a
534property.
5352. A Tree Survey and Preservation/Replacement Plan may be required to accompany a zoning
536application, Specific Use Permit, or planned development amendment where tree and
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537 landscaping requirements are relevant to the requested zoning or development amendment,
538 as determined by the Director.
539 3. Each Tree Survey and Preservation Plan shall contain, but not be limited to, the following
540 required elements:
541 a. The locations of all Trees to be preserved and removed on the subject site.
542 b. A table containing the following information for all trees:
543 (1) Tree number;
544 (2) Common name of each tree;
545 (3) dbh of each tree;
546 (4) General health and condition of each Tree;
547 (5) Average canopy spread;
548 (6) Classification (Quality, Heritage, Landmark, Secondary, or Non-Protected)
549 and Status (Preserve or Remove) for each tree; and
550 (7) Mitigation worksheet as shown in Table I.1, as applicable.
551 4. The Tree Survey and Preservation/Replacement Plan shall be prepared by or under the
552 supervision of an ISA certified or ASCA registered arborist, a SAF certified forester, botanist,
553 professional land surveyor that has documented completion of at least 8 hours of training in
554 Texas tree identification, or a registered landscape architect.
555 5. Phased Residential Subdivisions. Residential subdivisions that are to be developed in phases
556 must provide a plan that complies with the preservation requirements at full buildout as
557 approved on the preliminary plat or general development plan.
558 6. Any subsequent redevelopment of property must preserve the minimum percentage of dbh
559 inches as indicated by the initial Tree Survey and Preservation/Replacement Plan.
560 7. A notation must be placed on the Preliminary Plat, Final Plat, Site Plan, and Building Permit
561 identifying the dbh of trees to be preserved and the location of the lots that contain Preserved
562 Trees. The notation shall limit any future unauthorized land disturbing activity or construction
563 that would impact and/or damage the tree(s) preserved.
564 8. A tree survey and preservation plan shall be approved if the minimum preservation and
565 replacement requirements are met.
566 9. If there are no Protected Trees on a property, then a signed and notarized letter indicating such
567 shall be prepared by or under the supervision of an ISA certified or ASCA registered arborist, a
568 SAF certified forester, botanist, professional land surveyor that has documented completion of
569 at least 8 hours of training in Texas tree identification, or a registered landscape architect and
570 submitted with the initial development application.
571
572 F. ALTERNATE TREE PRESERVATION PLAN
573 1. The Alternative Tree Preservation/Replacement Plan provides the option to further the
574 purpose and intent of these regulations through a flexible process reviewed and
575 approved by the Director for one of the following purposes:
576 a. To allow trees measuring below the minimum dbh to be counted for Protected
577 Trees when:
578 i. The allowance would result in the preservation of a greater number of
579 Post Oak trees, regardless of dbh; or
580 ii. The preservation of a Protected Tree(s) would cause a substantial
581 burden, but smaller dbh non-secondary trees are located in such a way
Conservation & Landscape 3/15/2019 12:36 PM 15
582 that the trees can be incorporated into the site design, such as the
583 parking lot, buffer, or front yard landscaping.
584 b. To allow Secondary Trees to count towards the minimum required preservation
585 instead of Quality Trees.
586 2. Criteria for Approval.
587 a. The proposed Alternative Tree Preservation Plan adequately achieves, or is an
588 improvement on, the intent of the requirements of this Subsection; and
589 b. The proposed site design has minimized the loss of Protected Trees to the greatest
590 extent possible or has maintained existing tree stands.
591 3. Replacement Trees. Required replacement and mitigation contained in subsections H
592 and I shall be required for those alternatives 1.a and 1.b above.
593
594 G. MINIMUM PRESERVATION REQUIREMENTS
595 1. Landmark Trees 100% of all Landmark trees must be preserved.
596 2. Heritage and Quality Trees - A minimum of 30% of the total dbh must be preserved within the
597 Development Impact Area. Removed trees shall be replaced in accordance with subsection I
598 and subsection J if applicable.
599 a. The 30% minimum preservation requirement may be reduced to 20% if:
600 i. The 20% preserved dbh is in either a dedicated Conservation Easement or in
601 a Preserved Habitat. All Protected and Non-Protected trees, unless dead or
602 dbh may be counted toward
603 meeting the 20% requirement.
604 1. Preserved Habitats may be dedicated as a Conservation Easement, and if
605 not dedicated as a Conservation Easement must otherwise be restricted
606 on a plat. Preserved Habitat shall contain the prescribed minimum
607 preservation amount, contain a stand of trees and understory, and shall
608 be the greater of 10% of the property or 5,000 square feet.
609 ii. All other trees remaining in the Development Impact Area but removed shall
610 be replaced in accordance with subsection I and J, if applicable.
611 b. Properties without a Preserved Habitat or Conservation Easement, may reduce
612 the 30% minimum to 20% provided:
613 i. The 10% reduced is mitigated at the rates described below:
614 1) Heritage Tree(s) Two and three-quarter (2.75) inches for every
615 inch removed; and
616 2) Quality Tree(s) Two and one-quarter (2.25) inches for every
617 inch removed.
618 ii. All other trees remaining in the Development Impact Area but removed shall
619 be replaced in accordance with subsection I and J, if applicable.
620 3. Secondary Trees There is no minimum preservation of Secondary Trees required when there
621 are Quality and Heritage Trees located on a property. In instances where there are no Quality
622 or Heritage Trees located on a property, then a minimum of 20% of the total dbh of Secondary
623 Trees on the property must be preserved within the Development Impact Area. Preservation
624 Relief City Council may approve relief of the Preservation Requirements in accordance with
625 Section 35.3.11 Tree Preservation Relief Provisions.
626
627 I. TREE REPLACEMENT
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628 1. In the event that it is necessary to remove a Protected Tree(s) as allowed in this chapter, the
629 applicant shall be required to replace the tree(s) being removed with healthy trees or pay a
630 mitigation fee as explained hereafter.
631 a. If it is determined that tree replacement is required, the Tree Preservation/Replacement
632 Plan must be approved prior approval of a final plat or replat and a note shall be placed
633 on that plat referencing the approved tree replacement plan.
634 b. If platting is not required, the tree replacement plan shall be included as part of a site
635 plan approval or tree removal permit.
636 2. In accordance with Texas Local Government Code, Section 212.905, as amended, replacement
637 trees must:
638 a. be planted on property in which they were removed; or
639 b. be planted at a location mutually agreed upon by the city and the property owner; and
640 c. measure at least two inches dbh when planted.
641 3. In order to ensure biodiversity and protect against tree disease, if twenty (20) or more
642 replacement trees are planted, no one species of tree may exceed thirty percent (30%) of
643 the total new trees on the site.
644 4. To determine the Replacement Inches required by this section, the applicant shall inventory
645 and combine the total dbh of all protected trees that are to be removed and that are located
646 within the Development Impact Area.
647 5. This inventory shall be separated into dbh removed per protected tree classification, as
648 calculated using the following replacement rates or the rates:
649 a. Heritage Tree Two and one-half (2.5) inches for every inch removed;
650 b. Quality Tree Two (2) inches for every inch removed; and
651 c. Secondary Tree Four (4) inches for every tree removed.
652 6. The total of the required inventories represents the Replacement Inches that shall be
653 replaced through new tree plantings or preservation of existing trees.
654 a. New Trees required to satisfy the landscaping provisions of this chapter shall be
655 counted towards satisfying this requirement.
656 7. Once each Tree on the site is inventoried, tree mitigation shall be calculated as follows and as
657 shown in Table I.1:
658 a. The Calculated dbh of each Tree shall be the dbh of the Tree multiplied by the
659 appropriate classification ratio as described section I.5 above. The Total Calculated
660 dbh shall be the sum of all these Trees.
661 8. In accordance with Texas Local Government Code Section 212.905, as amended, a credit of
662 fifty percent (50%) shall automatically be given to the Total Calculated dbh for all residential
663 development, and forty percent (40%) for non-residential development. The Preliminary
664 Mitigation dbh is 50% of the Total Calculated dbh for all residential, or 40% for
665 nonresidential. Mixed Use developments shall be credited at the residential rate of 50%.
666 9. Tree Preservation Credit. Additional Credit shall be given for all protected trees that are
667 preserved. Preserved Credits shall be the sum of:
668
669 a. A four (4) inch credit against mitigation for each one inch of Preliminary
670 Mitigation dbh shall be applied to the preservation of any Landmark Tree, or any
671 trees preserved within a Conservation Easement or Preserved Habitat;
672 b. A three (3) inch credit against mitigation for each one inch of Preliminary
673 Mitigation DBH shall be applied to the preservation of any other Heritage Tree.
Conservation & Landscape 3/15/2019 12:36 PM 17
674 c. A two (2) inch credit against mitigation for each one-inch Preliminary Mitigation dbh
675 shall be applied to the preservation of any other Quality Tree.
676 d. Preserved Credit for Secondary Trees. An additional Preserved Credit may be
677 credited against Preliminary Mitigation dbh for preserved Secondary Trees,
678 provided:
679 i. The minimum preservation of 30% is achieved for Heritage and Quality
680 Trees; and
681 ii. A one-half (.5) inch credit against mitigation for each one-inch Preliminary
682 Mitigation DBH shall be applied to the preservation of Secondary Trees
683 iii. Credit for preserved Secondary Trees may not exceed 50% of the preserved
684 DBH of Quality Trees.
685
686
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687
Table I.1. Sample Tree Mitigation Worksheet
dbh
Total dbh 120
Non-Protected 20
dbh
Total Protected 100
dbh
Required 30
Preservation
(30%)
Dead Tree dbh 0
Protected Trees Removed
Type dbh Replacement Calculated dbh
Removed Ratio
Heritage 40 2.5:1 100
Quality 30 2:1 60
Subtotal 70 160
Trees Replacement Calculated dbh
Removed Ratio
Secondary 4 16
Total 176
Preliminary Mitigation dbh 50% 88
Reduction
Trees Preserved
Type dbh Preserved Credit
Preserved
Heritage 20 3:1 60
Quality 10 2:1 20
Secondary 5 0.5:1 2.5
Total 30 82.5
Mitigation dbh
5.5
688
689
690 10. After calculating the Preliminary Mitigation dbh and subtracting the Preserved Credits,
691 any remaining dbh is defined as the Mitigation dbh. The Mitigation dbh is required to be
692 satisfied either by the planting of new trees on site with an equivalent total dbh or by
693 using one of the alternative methods described in subsection I.
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694 11. If any Preserved or Replacement Tree(s) dies within three (3) years of initial planting or
695 issuance of a Certificate of Occupancy, the current property owner shall be subject to the
696 same replacement per these requirements, unless otherwise exempt or deemed a non-
697 protected tree.
698
699
700 J. ALTERNATIVES TO TREE REPLACEMENT REQUIREMENTS
701 In order to satisfy the Mitigation dbh, the property owner may utilize any combination of alternative
702 methods of compliance listed below. These alternative methods may also be used in combination
703 with or in lieu of tree replacement, so long as the total replacement dbh is satisfied by one or all
704 methods.
705 1. Payment in Lieu of Replacement
706 a. Payment in lieu may be made in the amount prescribed separately and periodically by
707 ordinance, and, if made, such a payment shall be deposited into the Tree Fund for the
708 purposes described in Subsection K. This amount is calculated by the average cost incurred
709 by the City for the purchase, planting, and irrigation of a two-inch tree for three years.
710 b. The applicant must pay the fees contributed to the Tree Fund prior to the issuance of a Gas
711
712 required, payment shall be prior to issuance of a Tree Removal Permit.
713 c. Notwithstanding any other provision in this subsection 35.17.3.I.4, no tree mitigation fee may
2
714 be collected or enforced in contravention of State law.
715 2.
716 Department for planting within the City, with the approval of the Parks Director.
717 3. Conservation Easement. The property owner may request to grant a conservation easement
718 by plat to the City that includes Protected Trees and non-protected trees beyond the
719 minimum preservation amount, and with a combined dbh equal to or exceeding the dbh for
720 which mitigation is being requested.
721 a. In addition to the tree survey and preservation/replacement plan, a detailed baseline
722 document describing the physical and biological condition, the general age of
723 any Tree stands, locations of easements and construction, and the conservation values
724 protected by the easement, shall be required.
725 b. The City may decline the request for a conservation easement for any reason; however, a
726 request so declined will not satisfy the mitigation requirement, and mitigation must be
727 achieved in a different manner as described above
728
729 K. TREE FUND
730 1. The City shall administer and use the Tree Fund to:
731 a. purchase, plant, and maintain trees;
732 b. Conduct maintenance on conservation easements dedicated in accordance with this
733 subsection;
734 c. preserve wooded property in a naturalistic state in perpetuity;
735 d. perform and maintain a City-wide tree inventory;
2
STATE LAW REFERENCE
of a municipality to charge a tree mitigation fee under certain specified circumstances.
Conservation & Landscape 3/15/2019 12:36 PM 20
736 e. educate citizens and property owners on the preservation, care, maintenance, benefits
737 and value of trees within the City of Denton; and
738 f. support programs for the public purpose of increasing the tree canopy within the City
739 of Denton as approved by City Council.
740 2. Proceeds from the Tree Fund shall not be used to meet any requirements for preservation,
741 mitigation, landscaping, buffering, streetscaping, or similar requirements in the Denton
742 Development Code or the Denton Code of Ordinances.
743 3. Voluntary contributions for tree planting shall be placed in the Tree Fund.
744
745
746
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747 35.17.4 - Landscape and Tree Canopy Requirements
748 A. Purpose. The City recognizes landscaping, tree preservation, buffering, and screening as
749 important activities to:
750 1. Blend the built and natural environment and preserve the natural landscape;
751 2. Mitigate or minimize potential nuisances, such as noise, light, glare, dirt, litter, signs,
752 parking, or storage areas, and to provide a transition between uses;
753 3. Conserve water resources by using sustainable design and maintenance techniques and
754 low-water plant species;
755 4. Promote environmental benefits, such as improved stormwater retention, water quality,
756 air quality, soil moisture, groundwater, and erosion prevention;
757 5. Improve the appearance of development and establish an attractive streetscape; and
758 6. Increase the urban tree canopy.
759 B. Intent. The intent of these regulations is to achieve and maintain an average minimum of
760 thirty percent (30%) tree canopy coverage citywide from preserved trees and newly planted
761 trees, and to promote a multi-
762 city-wide average tree canopy cover of at least thirty percent (30%), the following goals are
763 established for specific areas of the City based upon the unique ecoregions present in
764 different areas of the City:
765 1. For areas east of the Interstate 35 / Interstate 35-W corridor where the Cross Timbers
766 ecoregion is more prevalent, the minimum canopy goal shall be 40% coverage.
767 2. For areas west of the Interstate 35 / Interstate 35-W corridor, where the Grand
768 Prairie ecoregion is more prevalent, the minimum canopy goal shall be 20% coverage.
769 These regulations are intended to promote the functional distribution of that canopy
770 throughout various land uses as development occurs through a combination of planting and
771 retention goals and requirements for tree canopy cover.
772
773 C. Applicability.
774 1. Single-family, duplex and townhome.
775 a. Existing single family, duplex, and townhome lots that are currently developed are
776 exempt from the minimum requirements contained in subsection D.
777 b. New detached single-family and duplex subdivisions are required to provide
778 landscaping as specified in Section 35.17.4.D.3.
779 2. Multi-family and non-residential developments are required to comply with all
780 landscape and tree canopy requirements in this Section.
781 3. All replacement trees included as part of the approved Tree Preservation/Replacement
782 Plan shall be credited against the trees planted, as required by this subsection.
783
784 D. Minimum Requirements.
785 1. Minimum Landscape Area and Tree Canopy.
786 a. Landscape area is the portion of a Development Impact Area which is comprised of
787 trees, shrubs, and pervious groundcovers. The percentage of Landscape Area
788 , as indicated in Table
789 17.4.A below.
790 b. Tree canopy is measured by computing the area that the mature canopy will
791 encompass, based on the Tree List contained in the Site Design Criteria Manual. The
Conservation & Landscape 3/15/2019 12:36 PM 22
792 mature canopies may be estimated for existing trees on site. Any tree not on the
793 Tree List may be estimated by a Registered Landscape Architect.
794 c. The required percentage of Tree Canopy required shall be based on the zoning of the
795 property as described in Table 17.4.A below. The required tree canopy area shall
796 apply to either:
797 i. The entire Development Impact Area, or
798 ii. The entire lot being developed, minus the footprint area of any
799 proposed buildings.
800 The selected method for calculating the required tree canopy must be explicitly
801 stated on the Landscape Plan.
802 d. The following may count towards meeting the landscape and tree canopy
803 requirements:
804 i. All landscaped areas planted and maintained within the Development
805 Impact Area;
806 ii. Tree canopy in the adjacent public right-of-way;
807 iii. All required mitigation trees may count towards landscaping (including
808 street trees and yard trees) if planted trees have a minimum dbh of 2
809 inches dbh;
810 iv. Plazas and pedestrian circulation areas, if constructed with pervious
811 material and not located within the public right-of-way.
812 v. Low Impact Design (LID) options if installed and maintained pursuant to
813 the North Central Texas Council of Governments Integrated Storm
814 Water Management (iSWM) strategies, including:
815 (a) Bioswales: Bioswales are vegetated swales planted with wet
816 tolerant species of plants or ornamental grasses. They
817 transport, store, and allow infiltration of water, and can be
818 designed as a landscape feature. Bioswales are not grassed, but
819 are planted with a variety of plant species that can withstand
820 occasional water inundation for short periods of time.
821 (b) Grassed Swales: Grassed swales are designed conveyance
822 devices used to transport water over the surface of the ground
823 to a point of disposal that may be a catch basin, ditch, or water
824 body that will filter, infiltrate, evaporate, and clean the water of
825 total suspended solids and other pollutants. Swales are often
826 appropriate along property lines, public streets, and around
827 buildings.
828 (c) Bioretention Facilities (a.k.a. Rain Gardens): Bioretention
829 facilities are small shallow depressions planted with a variety of
830 native or ornamental plants that can treat small amounts of
831 runoff to improve water quality. Bioretention facilities are
832 generally small collections of flood-tolerant plants planted on a
833 low site area that naturally collects rainfall.
834 (d) Sand Filters: Sand filters are depressions, trenches, barriers, or
835 sand lens, constructed of porous mineral matter that improve
836 ground water recharge, to filter, clean and trap waterborne
837 pollutants.
838
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839
Table 17.4.A Minimum Landscape Area and Tree Canopy
Percent Landscape Percent Tree Canopy
Districts
area Cover
Rural
RD-5 Rural Residential 75%
25%
RC Rural Commercial 65%
Neighborhood Residential
NR-1 Neighborhood Residential 1 70%
NR-2 Neighborhood Residential 2 50%
50%
NR-3 Neighborhood Residential 3 50%
NR-4 Neighborhood Residential 4 40%
NR-6 Neighborhood Residential 6 25% 40%
NRMU-Neighborhood Residential Mixed Use
12 12
20% 40%
NRMU Neighborhood Residential Mixed Use
Downtown University Core
DR-1 Downtown Residential
20% 40%
DR-2 Downtown Residential
Downtown Commercial
DC-N
Neighborhood
15% 20%
DC-G Downtown Commercial General
Community Mixed Use Centers
CM-G Community Mixed Use General 20% 30%
Conservation & Landscape 3/15/2019 12:36 PM 24
Table 17.4.A Minimum Landscape Area and Tree Canopy
Percent Landscape Percent Tree Canopy
Districts
area Cover
CM-E Community Mixed Use employment
Regional Mixed Use Centers
RCR-1 Regional Center Residential 1
RCR-2 Regional Center Residential 2
25% 30%
Regional Center Commercial
RCC-N
Neighborhood
Regional Center Commercial
RCC-D
Downtown
Employment Centers
EC-C Employment Centers Commercial 20% 30%
EC-I Employment Centers Industrial 15% 20%
Industrial Centers
IC-E Industrial Centers Employment 15% 20%
IC-G Industrial Centers General 15% 15%
840
841 e. 90% of all plantings shall be from the approved Landscape Plant List in the Site
842 Design Criteria Manual.
843 f. In order to ensure biodiversity and protect against tree disease, if twenty (20) or
844 more trees are planted, no one species of tree may exceed thirty percent (30%) of
845 the total new trees on the site.
846 g. At least 50% of the trees planted must be native, indigenous, or adapted, as
847 indicated on the approved Landscape Plant List.
848 2. Landscape Installation and Maintenance.
849 a. Landscaping installed as part of the requirements of the landscape standards must be
850 free from diseases and insects, and maintained in a healthy, growing condition at all
851 times.
852 b. The property owner is responsible for regular weeding, mowing, irrigation, fertilizing,
853 pruning, litter removal, and other maintenance as needed for all plantings.
Conservation & Landscape 3/15/2019 12:36 PM 25
854 c. The property owner shall remove and replace any required landscaping as part of an
855 approved landscape plan that dies with other approved living plants from the
856 approved plant list contained in the Site Design Criteria Manual, no later than thirty
857 (30) days after: actual knowledge that the landscaping has died, or after the
858 postmarked date of written notification from the City, whichever is sooner. The
859 Director or designee may, in his sole discretion, extend this time period due to
860 weather, appropriate planting season, or other events outside of the reasonable
861 control of the property owner.
862 d. Irrigation. To ensure viability, landscape areas shall be irrigated by one or a
863 combination of the following methods:
864 i. An automated underground system.
865 ii. A drip irrigation system.
866 iii. The Director or designee may waive the irrigation system requirement if
867 the approved landscape plan includes drought tolerant plants, a
868 xeriscape system, or other approved materials. In such cases, a
869 temporary irrigation system shall be installed and maintained until the
870 plants are established.
871
872 3. Minimum landscape requirements for Single-Family and Duplex Lots
873 a. All single-family and duplex lots must contain a minimum of 1 large shade tree per
874 dwelling.
875 b. Not less than 30 percent of the front yard must be landscaped
876 c. Not less than 20 percent of the rear yard must be landscaped.
877
878 4. Landscape Plan and Point System. In addition to the above standards, the following
879 requirements shall apply to all developments, except single- and two-family lots within
880 residential developments:
881 a. A Landscape Plan is required for all developments, demonstrating compliance with
882 the required minimum Landscape Area requirements at the time of application for: a
883 specific use permit, an alternative development plan, a site plan, or a building permit,
884 whichever comes first,
885 b. All Landscape Plans shall be drawn and sealed by a registered landscape architect.
886 c. All landscape plans shall contain, at a minimum, the following elements:
887 i. A delineation of the property boundary, the Development Impact Area,
888 ESAs, Preserved Habitat areas, and any easements;
889 ii. Dimensioned buffer areas, right-of-way screening areas, and parking lot
890 landscaping areas;
891 iii. Location and tabulation of all proposed plantings, including size at the
892 time of planting and expected canopy area of all trees at maturity, as
893 provided for in the Site Design Criteria Manual;
894 iv. Tabulation of how the required landscape and buffer points, as
895 described in the sections below, are provided;
896 v. Tabulation of the required and provided number of street trees, unless
897 provided on a separate Street Tree Plan at the time of platting; and
898 vi. Any additional information required to demonstrate compliance with
899 the requirements of this section.
900 d. Landscape Area and Tree Canopy shall be designed using a combination of elements
901 from the point system described below.
Conservation & Landscape 3/15/2019 12:36 PM 26
902 i. All developments are required to provide a combination of landscaping
903 elements from Table 17.3.B, totaling at least 30 points and meeting the
904 minimum required percentage of Landscaping Area and Tree Canopy.
905 ii. At least two elements must be selected from both Sections A and B in
906 the table, except as noted below. The remaining points may be selected
907 from Sections A, B, or C.
908 (a) Right-of-Way Screening shall be provided between the front-
909 most row of parking and the street. Screening area shall begin
910 at the back edge of either the right-of-way or public utility
911 easement, as necessary to prevent encroachment into those
912 areas. The area dedicated to right-of-way screening must
913 contain sufficient area to plant the proposed screening
914 elements and allow for full growth potential. For developments
915 where parking is not located between the building and the
916 street, any drive aisles located in front of the building shall be
917 screened by at least one of the elements in Section A.
918 (b) Parking Lot landscaping shall be provided internal to the parking
919 lot. Turf grass does not satisfy requirements for planting
920 materials in parking lot landscaping elements. Planting materials
921 permitted include drought-tolerant plants, ornamental or native
922 grasses, and pervious non-living ground cover installed with a
923 permeable weed-barrier.
924 (c) If proposed, living walls and living green roofs should be
925 engineered in accordance with building industry standards to
926 ensure building safety and longevity of the plant material. Living
927 green roofs must be installed in a manner allowing for
928 inspection consistent with applicable OSHA standards, along
929 with all other site landscaping.
930
Conservation & Landscape 3/15/2019 12:36 PM 27
Table 17.3.B
Landscaping Element Points
Section A. Right-of-Way Screening Elements
(Minimum 2 unless no front parking, then 1)
A landscaped berm with a maximum 3:1 side slope on both sides 5
One (1) large canopy tree planted every 40 linear feet 5
Three (3) small accent trees clustered every thirty (30) linear feet when 5
space does not permit large canopy trees
A minimum three (3)-foot high continuous hedge of evergreen shrubs 5
A minimum three (3)-foot high continuous wall made of any combination 5
of wrought iron, masonry, or stone. If wrought iron is used, vines shall be
planted every 10 feet on center on the wrought iron to create a more
opaque wall.
Section B. Parking Lot Landscaping Elements (Minimum 2)
Internal landscape islands with an area of at least 9-feet by 18-feet 5
containing at least one large canopy tree placed evenly at an average of
one (1) for every ten (10) spaces (or portion thereof).
For lots of ten (10) spaces or less, at least one internal landscape island is
required but does not have to be centrally located within a row of parking
spaces
End caps with an area of at least 9-feet by 18-feet containing at least one 5
large canopy tree.
A landscape median of at least 8-feet wide running the length of a parking 5
row and containing at least one (1) large tree per 30 linear feet.
Section C. Other Site Landscaping Elements
A minimum 10 foot wide area provided for the length of the building 3
frontage between the front of the building and the parking lot and
containing a 5 foot wide landscape area abutting the building wall. This
area may be paved as a walkway if pots or planters are provided along at
least 75% of the building frontage.
Each planted tree meets or exceeds four (4) caliper inches at the time of 5
planting
At least 75% of plants proposed are drought-tolerant as indicated in the 5
approved landscape plant list or adaptive
as determined by the US Department of Agriculture.
Landscape area provided exceeds required minimum by an additional 10% 3
or more.
No more than 30% of landscaped areas is covered in turf grass. 3
Tree Canopy exceeding minimum requirement by an additional 25% or 3
more
A mixture of Bioswales, Gassed Swales, Bioretention facilities, and Sand 7
Filter Low Impact Design techniques as described in Section 35.17.4.C. If
designed as part of a parking lot island or median, points may be counted
for both elements.
Living walls/vertical gardens provided in a designated pedestrian area or as 5
an architectural feature of a primary external building wall. Living walls
must account for at least 25% of the wall face.
Conservation & Landscape 3/15/2019 12:36 PM 28
931
Rooftop vegetation provided as part of an engineered green roof 5
accounting for at least 25% of the roof area.
932
Butterfly or pollinator gardens that include native milkweed and nectar 5
933
plants that are provided as part of a designated pedestrian amenity or
934
plaza area and that comprise at least 5% of the required overall landscape
935
936
designation as a Monarch City.
937
938
939
940
941 5. Permits, Enforcement, and Drought
942 a. No permits will be issued for any non-residential or multi-family development until a landscape
943 plan is submitted as part of the Site Plan, Specific Use Permit, Alternative Development Plan, or
944 building permit review process.
945 b. Prior to the issuance of a Certificate of Occupancy for any building or structure, all screening and
946 landscaping shall be in place, in accordance with the approved landscape plan and applicant
947 shall call to arrange inspection of all landscape installations.
948 c. An as-built landscape plan shall be provided to the City upon final inspection.
949 d. Landscaping which dies shall be replaced by the owner with plants of similar variety and size, no
950 later than thirty (30) days after: actual knowledge of the death; or the postmark of written
951 notice from the City, whichever is earlier. The Director or designee may, in his sole discretion,
952 extend this time period due to weather or other events outside of the reasonable control of the
953 property owner. Replacement trees of similar mature canopy may be replanted with
954 confirmation and approval from the Director or designee. Replacement trees must be a
955 minimum of 3- inch caliper, measured six inches above the ground.
956 e. A planting extension may be granted in the sole discretion of the Director or designee if
957 substantial evidence is presented to indicate abnormal circumstances beyond the control of the
958 owner or his agent. Seasons of drought, extreme heat, or heavy rainfall causing construction
959 delays are examples of abnormal circumstances.
960
961
962
Conservation & Landscape 3/15/2019 12:36 PM 29
963 35.17.5 - Street Tree Requirements
964 As specified below, applications for development shall propose, and be required to plant, street trees in
965 accordance with the following standards, and in accordance with the spacing requirements identified in
966 the Site Design Criteria Manual. The Director may approve alternative plans due to special site
967 conditions, which may, for reasons such as safety or existing trees on the lot, affect the ability to meet
968 these regulations. All replacement trees included as part of an approved Tree Preservation/Replacement
969 Plan will be credited against the required Street Trees.
970 A. Street Tree Plan. A street tree plan shall be submitted with a Site Plan for multi-
971 family or non-residential developments, and with a Final Plat for new residential
972 subdivisions. Additionally, street trees should be specifically called out on building
973 permits and landscape plans.
974 B. Street Tree Location. Street trees shall be located within the street right-of-way or
975 within 10 feet of the street right-of-way.
976 C. Street Tree Number and Spacing. At least one street tree is required for every 30
977 feet of street frontage.
978 1. Street trees need not be regularly spaced at 30-foot intervals; however,
979 street trees shall not be planted further apart than 50-foot intervals, and
980 not closer than 25 feet apart.
981 2. Street trees shall be planted in accordance with the spacing requirements
982 from utilities, intersections, and driveways described in the Site Design
983 Criteria Manual.
984 3. In order to ensure biodiversity and protect against tree disease, if twenty
985 (20) or more street trees are planted along a residential street, no one
986 species of tree may exceed thirty percent (30%) of the total new street
987 trees. Where multiple species are required within a single block, trees of the
988 same species shall be planted non-contiguously to the greatest extent
989 possible.
990 D. Tree Planting.
991 1. Tree planting standards shall be in accordance with the Site Design Criteria
992 Manual.
993 2. Each tree planted shall meet the most current version of American
994 Standards for Nursery Stock ANSI Z60.1 and shall have a minimum size of 3"
995 caliper measured 6" above grade, unless the trees are planted as
996 replacement for the removal of existing trees, in which case the trees must
997 have a minimum size dbh. Any tree that does not meet ANSI Z60.1
998 may be rejected by the Director.
999 E. Maintenance.
1000 1. Street trees shall be maintained by the adjoining property owner.
1001 2. It is the adjoining property owner's responsibility to water, prune, fertilize,
1002 and treat for insect and disease, as may be deemed necessary. All incurred
1003 costs are to be borne by the property owner.
1004 3. It is the adjoining property owner's responsibility to remove any hazardous
1005 or dead tree, as may be deemed necessary. All incurred costs are to be
1006 borne by the property owner.
Conservation & Landscape 3/15/2019 12:36 PM 30
1007 4.Tree Canopy Clearance Height: All trees shall be maintained by pruning and
1008 other necessary care by the adjacent property owner to ensure a minimum
1009 clearance of 15 vertical feet from the curb line, 15 vertical feet from an
1010 alley, and 8 vertical feet from the sidewalk.
1011 5. The City may prune or remove any tree or planting located in Public Right-
1012 of-Way or in a landscape maintenance easement that constitutes a hazard
1013 to person or property, or for any other reason.
1014 6. All pruning shall be in accordance with the most current version of American
1015 National Standards for Tree Care Operations ANSI A300.
1016 7. Tree Replacement: The City may replace an approved street tree or other
1017 planting that has died or may have been removed for any reason, or plant
1018 additional street trees deemed appropriate and consistent with available
1019 resources.
1020 8. Abuse or Mutilation: It shall be unlawful for any person to damage any
1021 street tree, or to attach or place any rope or wire, sign, poster or other
1022 device on any street tree. Each occurrence shall constitute a distinct and
1023 separate offense.
1024
Conservation & Landscape 3/15/2019 12:36 PM 31
1025 35.17.6 - Compatibility Buffer Requirements
1026 Compatibility buffers are required to mitigate or minimize potential nuisances such as noise, light, glare,
1027 dirt, litter, signs, parking, or storage areas and to provide a transition between incompatible uses.
1028 A. Minimum Buffer Required
1029 All developing uses, unless exempted in 35.14.6.D, shall be required to install a buffer as
1030 specified in Table 17.6.A below. All replacement trees included as part of an approved Tree
1031 Preservation/Replacement Plan will be credited against trees required in this subsection.
1032
Table 17.6.A: Buffer Points and Minimum Width Requirements
Developing Use Adjacent Use
Agricultural Single-family Multifamily Commercial Industrial
detached or and and
duplex townhome institutional
Agricultural None None None None None
Single-family Minimum 10 None Minimum 10 Minimum 10 Minimum 10
detached and points; no points; no points; no points; no
duplex minimum minimum minimum minimum
width width width width
Multifamily Minimum 10 Minimum 20 None Minimum 20 Minimum 20
and townhome points; no points; points; points;
minimum Minimum Minimum Minimum
width width 10 feet width 10 feet width 10 feet
Commercial or None Minimum 30 Minimum 30 None Minimum 20
institutional points; points; points;
Minimum Minimum Minimum
width 15 feet width 15 feet width 10 feet
Industrial None Minimum 50 Minimum 50 Minimum 30 None
points; points; points;
Minimum Minimum Minimum
width 30 feet width 30 feet width 30 feet
for
institutional
and 10 feet
for
commercial
1033
1034 B. Buffer Point System
1035 Buffers shall accumulate the designated point total through a combination of elements, as
1036 indicated in Table 17.6.B below. For buffers including more than two listed elements, vegetation
1037 may also include a combination of shrubs and trees. No more than one fence or wall type may
1038 be used to meet the buffer point requirements.
1039
Conservation & Landscape 3/15/2019 12:36 PM 32
Table 17.6.B: Buffer Points
Buffer Element Points
Solid wood screening fence, minimum 6 feet in
5
height, single-faced
Vinyl, Composite, double-faced solid wood, or
similar non-masonry screening fence, minimum 10
6 feet in height
Solid masonry wall, minimum 6 feet in height 20
Each additional 5 feet in landscaped buffer
5
width beyond required minimum
3 ornamental trees for every 50 linear feet of
5
buffer (minimum 3-inch caliper)
3 ornamental trees for every 25 linear feet of
10
buffer (minimum 3-inch caliper)
5 shrubs for every 20 linear feet of buffer (5-
5
gallon size)
5 shrubs for every 20 linear feet of buffer (10-
10
gallon size)
1 large tree for every 30 linear feet of buffer
10
(minimum 3-inch caliper)
Preservation of existing Landmark, Heritage,
Quality, or Secondary trees within at least 50% 5
of the buffer area.
1040 C. Buffer Standards
1041 1. Buffers shall be located on the outer perimeters of lots or parcels, and shall extend to the
1042 limits of the developed area of the site. Buffers may not occupy any portion of an existing,
1043 dedicated, or reserved right-of-way, or be located on public property.
1044 a. In instances where a required drainage or public utility easement is located within a
1045 buffer area, the easement area will count toward the buffer area requirement. No
1046 trees or shrubs are allowed within the easement. However, if the remaining buffer
1047 area outside the easement is 10 feet or greater, buffer elements are required.
1048 b. In those instances where a perimeter fence or wall is used in conjunction with a
1049 buffer, the perimeter fence or wall shall have a minimum height of six feet, shall be
1050 constructed of material permitted by Table 17.6.B, and shall be located on the
1051 boundary of the required buffer.
1052 2. Buffers shall be designed based on the following standards.
1053 a. The entire buffer area must be landscaped with ground cover other than turf grass.
1054 b. Vegetation included in the buffer shall meet the following requirements:
1055 i. Plant species shall be selected from the approved Landscape Plant List or Native
1056 Plant List.
1057 ii. At least 50 percent of the plants shall be evergreen.
1058 iii. No more than 50 percent of the plants shall be from the same genus.
Conservation & Landscape 3/15/2019 12:36 PM 33
1059 c. The buffer may contain pedestrian or bike trails to promote connectivity to adjoining
1060 properties, as long as no required plant material is omitted from the design, and the
1061 required buffer width is maintained.
1062 3. Designated tree preservation areas occupying a portion of a required buffer satisfy the
1063 planting requirement for the portions they occupy.
1064 4. When healthy, Protected Trees are located within the required buffer, the Protected
1065 Trees should be preserved to the greatest extent possible. The Director may determine if
1066 additional buffer elements are required to mitigate or minimize potential nuisances.
1067 5. When a preserved Environmentally Sensitive Area is located in an area where a buffer
1068 would be required, the ESA may count as the required buffer for that portion of the
1069 property.
1070 D. Exceptions to Buffer Requirements
1071 1. Buffer requirements may be waived by the Director when the property is an internal site
1072 within a master planned development or within a mixed-use development. Buffers shall
1073 still be required around the perimeter of the development based on the requirements in
1074 this subsection.
1075 2. Buffer requirements shall not apply to the Downtown Residential and Downtown
1076 Commercial districts, except for multi-family or non-residential properties adjoining
1077 single-family detached, duplex, or townhome uses.
1078
1079 35.17.7. Relief for Landscape, Tree Canopy, and Buffer Requirements.
1080 A. Alternative Development Plan. The Alternative Development Plan provides the option to
1081 modify the requirements in Sections 35.17.4, 34.17.5, and 35.17.6 utilizing the Planning
1082 and Zoning Commission Procedure outlined in Subchapter 3 and the criteria for approval
1083 in Section 35.13.5. In no instance shall the Alternative Development Plan reduce any
1084 replacement trees required as part of an approved Tree Preservation/Replacement Plan.
1085 B. Payment in Lieu of Planting. In instances where easements, encumbrances, physical
1086 constraints, or life safety requirements limit the ability to plant the required trees
1087 needed to meet the minimum tree canopy coverage, an applicant may pay into the Tree
1088 Fund as an alternative. The Director may approve a reduction in minimum tree canopy
1089 area of up to 10% of the required amount. Any reduction in tree canopy area shall be
1090 nopy size of
1091 a large canopy tree as specified in the Site Design Criteria manual, assuming each
1092 required tree measures 2 caliper inches. The payment per inch shall be calculated as
1093 provided in Section 35.17.3.J.
Conservation & Landscape 3/15/2019 12:36 PM 34
City of Denton Parks and Recreation Department
601 E. Hickory St., Suite B, Denton, TX 76201 (940) 349-7275
MEMORANDUM
DATE: March 11, 2019
TO: Richard Cannone and Planning Staff
FROM: Haywood Morgan, Jr, Urban Forester
SUBJECT: Emerald Ash Bore Confirmed in DWF
Emerald Ash Borer (EAB) is an invasive exotic borer native to Asia that was first discovered
near Detroit Michigan in 2002. EAB has been confirmed in Texas and will be a concern for the
City of Denton. Since then the beetle has spread to 35 States and 6 Canadian provinces killing
hundreds of millions of ash trees.
As of December 2018 reports of emerald ash bore (EAB) in Tarrant County have been confirmed
by the Texas A&M Forest Service. EAB has infested and killed ash trees in the Eagle Mountain
Lake area (less than 30 miles away from Denton). With this confirmation, it is imperative that
ash be removed from the approved tree list for new development projects. In addition, it is my
recommendation that ash be listed as a non-protected tree in the proposed Conservation and
Landscape Requirements. Protecting ash will only delay the removal of the tree or commit the
property owner to treating program for the life of the tree.
I cannot overemphasize the impact this pest has had to ash populations in infested areas. Options
for managing EAB are:
1. Commit to a preventative treatment program for the life of the tree.
2. Treat large population of ash trees to allow for removal over time.
3. Remove the tree and replant with a different species of tree.
While treatments can begin after a tree has been infested, generally by the time EAB is detected
the infestation is too far-gone (less than 50% of crown remaining) for treatments to be effective.
Depending on the insecticide used, treatments are required annually or biennial.
Please see the following websites attachments for additional information. If you have any
http://www.emeraldashborer.info/
https://www.aphis.usda.gov/aphis/maps/plant-health/eab-storymap
https://www.aphis.usda.gov/aphis/ourfocus/planthealth/plant-pest-and-disease-programs/pests-and-
diseases/emerald-ash-borer
OUR CORE VALUES
Integrity Fiscal Responsibility Transparency Outstanding Customer Service
ADA/EOE/ADEA www.cityofdenton.com TDD (800) 735-2989
Њ Minutes
Ћ Planning and Zoning Commission
Ќ March 6, 2019
Ѝ
Ў After determining that a quorum was present, the Planning and Zoning Commission of the City of
Џ Denton, Texas convened in a Work Session on Wednesday, March 6, 2019 at 3:00 p.m. in the
А Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the
Б following items were considered:
В
ЊЉ PRESENT: Chair Andrew Rozell. Commissioners: Alfred Sanchez, Larry Beck, Jason
ЊЊ Cole, Margie Ellis, and Tim Smith.
ЊЋ
ЊЌ ABSENT: Commissioner Mat Pruneda.
ЊЍ
ЊЎ STAFF: Scott McDonald, Richard Cannone, Ron Menguita, Jerry Drake, Julie Wyatt,
ЊЏ Cindy Jackson, Hayley Zagurski, Sean Jacobson, Karen Hermann, Charlie Rosendahl and
ЊА Cathy Welborn.
ЊБ
ЊВ WORK SESSION
ЋЉ
ЋЊ Chair Rozell called the Work Session to order at 3:05 p.m.
ЋЋ
ЋЌ 1. Work Session Reports
ЋЍ
ЋЎ A. Hold a discussion and receive information regarding roundabouts and special study
ЋЏ areas. (Pritam Deshmukh).
ЋА
ЋБ Pritam Deshmukh, Deputy City Engineer, presented a presentation regarding roundabouts and
ЋВ special study areas.
ЌЉ
ЌЊ Commissioner Ellis questioned what the term critical project meant within the workings of the
ЌЋ City of Denton. Deshmukh stated when a project is considered critical, engineering staff will take
ЌЌ it before City Council to recommend a bond funded project or reallocating general funds. This
ЌЍ allows a project to be put on priority list.
ЌЎ
ЌЏ Commissioner Sanchez stated his dedicated support of using roundabouts.
ЌА
ЌБ B. Receive an update on the master thoroughfare/ mobility plan. (Pritam Deshmukh).
ЌВ
ЍЉ Pritam Deshmukh, Deputy City Engineer, stated for the mobility plan there are three elements staff
ЍЊ is focusing on which are the master thoroughfare, bicycle, and pedestrian plan and those combined
ЍЋ make up the mobility plan. Deshmukh stated the first draft should be out later this year.
ЍЌ
ЍЍ C. Receive a report, hold a discussion, and provide staff direction on the Denton Development
ЍЎ Code Update and Draft Zoning Map. (DCA18-0009, DDC Update, Ron Menguita).
ЍЏ
Њ
Њ Ron Menguita, Principal Planner, stated the discussion will be over subchapters four and five.
Ћ
Ќ Commissioner Ellis stated if the intent is to update the zoning map it will require a lot of planning
Ѝ and if the properties are left as a Residential Rural (RR) they cannot be developed.
Ў
Џ Commissioner Rozell questioned why the City of Denton zoned a Residential 1 (R1) to a
А Residential 4 (R4). Richard Cannone, Deputy Director of Development Services, stated staff took
Б it back to the properties original zoning which was Neighborhood Residential 4 (NR-4) district.
В
ЊЉ Chair Rozell stated a discussion was started with the rural areas and split zoning, based on the
ЊЊ discussion the City of Denton looked at all zoning areas. Cannone stated no, a discussion took
ЊЋ place with outside council that the rezoning of properties should be as close to the current zoning.
ЊЌ
ЊЍ Commissioner Ellis confirmed the discussion started in Denton Code Review Committee (DCRC)
ЊЎ meeting on an RR property and it ended up becoming realigning the zoning map as closely as it
ЊЏ looks today with the current zoning. Scott McDonald, Director of Development Services, agreed
ЊА with Commissioner Ellis, but also stressed to the Commission this is a draft zoning map.
ЊБ McDonald continued that outside of Council the DCRC is also guided by a land use expert to be
ЊВ consistent how it is being applied.
ЋЉ
ЋЊ Menguita stated currently there are a number Mixed-Use Downtown Core (MD) zoning districts
ЋЋ along the highway corridor, near the University of North Texas and Texas University
ЋЌ because the current zoning was Downtown Commercial General (DC-G). Menguita stated staff
ЋЍ looked at those properties and gave them a zoning based on the context currently there.
ЋЎ Commissioner Ellis stated that makes sense but questioned why that logic is not being used
ЋЏ throughout the map.
ЋА
ЋБ Menguita requested the Commission to provide feedback on Subchapter 5 Use Regulations and if
ЋВ there are any questions or comments regarding the proposed land uses.
ЌЉ
ЌЊ Commissioner Beck questioned why mobile home communities are allowed with a Specific Use
ЌЋ Permit (SUP) in the RR and Residential 2 (R2) but are not allowed in the R1 district. Julie Wyatt,
ЌЌ Senior Planner, stated currently mobile home communities are allowed in RD-5 by right,
ЌЍ Neighborhood Residential 2 (NR-2) and Neighborhood Residential 6 (NR-6) with an SUP.
ЌЎ McDonald stated staff will take the question to the DCRC to discuss further.
ЌЏ
ЌА Menguita stated current Planned Developments (PD) and Master Planned Communities (MPC)
ЌБ
ЌВ
ЍЉ Menguita stated the Rayzor Ranch overlay district will be referenced in Subchapter 4, but will be
ЍЊ added to the Denton Development Code as an appendix.
ЍЋ
ЍЌ Menguita stated there will be technical experts at the Work Session regarding Subchapter 6.
ЍЍ
ЍЎ Chair Rozell called a recess at 5:27 p.m.
ЍЏ
Ћ
Њ Chair Rozell reconvened the Work Session at 5:46 p.m.
Ћ
Ќ 2. Clarification of agenda items listed on the agenda for this meeting. This is an opportunity for
Ѝ Commissioners to ask questions of staff on the Consent and Regular Agenda items, which may
Ў include a full briefing on an item in the order it appears on the regular session agenda. Any such
Џ briefing will be repeated in regular session.
А
Б Chair Rozell stated Public Hearing item 4A has been withdrawn and item 4B is being postponed
В to the March 20, 2019 Planning and Zoning Commission meeting.
ЊЉ
ЊЊ Chair Rozell questioned if the Commission had any questions regarding the Consent Agenda.
ЊЋ Commissioner Ellis commented on Consent Agenda 3A, it stated in the general notes that the lots
ЊЌ were close to gas wells, but they did not have an asterisk on them. Commissioner Ellis continued
ЊЍ that adding the asterisk is more of a preference than a requirement. Julie Wyatt, Senior Planner,
ЊЎ stated Commissioner Ellis is speaking of Note 8 that references certain lots located within a
ЊЏ specific distance from a gas well.
ЊА
ЊБ Hayley Zagurski, Senior Planner, presented Public Hearing item 4C.
ЊВ
ЋЉ Richard Cannone, Deputy Director of Development Services and Hayley Zagurski presented
ЋЊ Public Hearing item 4D. Cannone discussed additional revisions made and provided the type of
ЋЋ comments received from the outreach done by staff.
ЋЌ
ЋЍ Chair Rozell closed the Work Session at 6:25 pm
ЋЎ
ЋЏ REGULAR MEETING
ЋА
ЋБ The Planning and Zoning Commission convened in a Regular Meeting on Wednesday, March 6,
ЋВ 2019 at 6:30 p.m. in the City Council Chambers at City Hall, 215 E. McKinney at which time the
ЌЉ following items were considered:
ЌЊ
ЌЋ Chair Rozell opened the Regular Meeting at 6: 33 p.m.
ЌЌ
ЌЍ 1. PLEDGE OF ALLEGIANCE
ЌЎ A. U.S. Flag B. Texas Flag
ЌЏ
ЌА 2. CONSIDER APPROVAL OF THE PLANNING AND ZONING COMMISSION MINUTES
ЌБ FOR:
ЌВ A. Consider approval of the Planning and Zoning Commission meeting minutes.
ЍЉ
ЍЊ Commissioner Tim Smith motioned, Commissioner Larry Beck seconded to approve the February
ЍЋ 6, 2019 meeting minutes. Motion approved (5-0). Commissioner Alfred Sanchez "aye",
ЍЌ Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Commissioner Margie Ellis
ЍЍ"aye", and Commissioner Tim Smith "aye".
ЍЎ
Ќ
Њ Commissioner Margie Ellis motioned, Commissioner Alfred Sanchez seconded to approve the
Ћ February 13, 2019 meeting minutes. Motion approved (5-0). Commissioner Alfred Sanchez "aye",
Ќ Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Commissioner Margie Ellis
Ѝ"aye", and
Ў
Џ
А 3. CONSENT AGENDA
Б
В A. Consider a request by Bent Rail Farms, LLC for approval of a Final Plat of Bent Rail
ЊЉ Farm Addition. The approximately 14.01-acre site is generally located at the southeast
ЊЊ corner of Jackson Road and Thomas J Egan Road in Denton County, Texas. (FP18-0007
ЊЋ Bent Rail Farm Addition, Julie Wyatt).
ЊЌ
ЊЍ B. Consider a request by Premier Denton Public Facility Corporation for approval of a
ЊЎ Final Plat for Lot 2, Block 1, Brinker Road Addition. The approximately 12.37-acre site is
ЊЏ generally located on the east side of Brinker Road, approximately 990 feet south of South
ЊА Loop 288 in the City of Denton, Denton County, Texas. (FP18-0008, Brinker Road
ЊБ Addition, Hayley Zagurski).
ЊВ
ЋЉ C. Consider a request by Blue Beacon International, Inc. for approval of a Final Plat of Lot
ЋЊ 1, Block A of Blue Beacon International Addition. The approximately 11.79-acre site is
ЋЋ generally located on the east side of Interstate Highway 35E and on the north side of
ЋЌ Barthold Road in the City of Denton, Denton County, Texas. (FP18-0020, Blue Beacon,
ЋЍ Hayley Zagurski).
ЋЎ
ЋЏ D. Consider a request by Stephen Shannon representing Willis Endeavors for approval of
ЋА a Final Plat of the Lot 1, Block A of the 734 Crawford Addition. The approximately 1.84-
ЋБ acre site is generally located on the north side of Crawford Road, approximately 810 feet
ЋВ west of Carnegie Ridge Road in the ETJ of the City of Denton, Denton County, Texas.
ЌЉ(FP18-0031, 734 Crawford, Cindy Jackson).
ЌЊ
ЌЋ Commissioner Tim Smith motioned, Commissioner Margie Ellis seconded to approve the Consent
ЌЌ Agenda. Motion approved (6-0). Commissioner Alfred Sanchez "aye", Commissioner Larry Beck
ЌЍ"aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner Margie Ellis
ЌЎ"aye", and T Commissioner Tim Smith "aye".
ЌЏ
ЌА 4. PUBLIC HEARINGS
ЌБ
ЌВ A. Hold a public hearing and consider making a recommendation to City Council regarding
ЍЉ a request by Kirkman Engineering for a zoning change from Neighborhood Residential
ЍЊ Mixed Use 12 (NRMU-12) to a Neighborhood Residential Mixed Use (NRMU) Zoning
ЍЋ District. The applicant is proposing a multi-family dwelling use with 267 units proposed
ЍЌ on three adjacent tracts totaling approximately 9.91 acres. The subject property is generally
ЍЍ located west of Mockingbird Lane and south of the Mingo Road in the City of Denton,
ЍЎ Denton County, Texas. (Z18-0022, Mockingbird Multi-Family, Ron Menguita). THIS
ЍЏ ITEM HAS BEEN WITHDRAWN BY THE APPLICANT.
Ѝ
Њ
Ћ B. Hold a public hearing and consider making a recommendation to City Council regarding
Ќ a request by Kirkman Engineering for a Specific Use Permit (SUP) to allow for a multi-
Ѝ family dwelling use on three adjacent tracts totaling approximately 9.91 acres. The subject
Ў property is generally located west of Mockingbird Lane and south of the Mingo Road in
Џ the City of Denton, Denton County, Texas. (S18-0005, Mockingbird Multi-Family, Ron
А Menguita) THIS ITEM HAS BEEN POSTPONED TO THE MARCH 20, 2019
Б PLANNING AND ZONING COMMISSION MEETING.
В
ЊЉ C. Consider a request by A-3 Denton MCD, LLC for approval of a Final Replat for Lot
ЊЊ 1R, Sunrise Addition. The approximately 1.69-acre site is generally located on the east side
ЊЋ of Fort Worth Drive and north of the I-35 Frontage Road in the City of Denton, Denton
ЊЌ County, Texas. (FR18-0018, McDonalds, Hayley Zagurski).
ЊЍ
ЊЎ Chair Rozell opened the Public Hearing.
ЊЏ
ЊА Hayley Zagursk, presented Public Hearing item 3C. The Commission had no questions.
ЊБ
ЊВ The following individual spoke during the Public Hearing:
ЋЉ Greg Massey, 2933 S Bryant Ave, Edmond OK, 73013. Supports the request.
ЋЊ
ЋЋ Chair Rozell closed the Public Hearing
ЋЌ
ЋЍ Commissioner Alfred Sanchez motioned, Commissioner Tim Smith seconded to approve Public
ЋЎ Hearing item 3C. Motion approved (6-0). Commissioner Alfred Sanchez "aye", Commissioner
ЋЏ Larry Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner
ЋА Margie Ellis "aye", and T Commissioner Tim Smith "aye".
ЋБ
ЋВ D. Hold a public hearing and consider making a recommendation to City Council regarding
ЌЉ a proposed revision to the Denton Development Code; specifically to amend Subchapters
ЌЊ 13 and 17 related to tree preservation, landscape standards, and environmentally sensitive
ЌЋ area standards. (DCA18-0008, Conservation and Landscape Code, Hayley Zagurski).
ЌЌ
ЌЍ Richard Cannone, Deputy Director of Development Services, and Hayley Zagurski, Senior Planner
ЌЎ presented the Public Hearing it 3D. Cannone and Zagurski provided the purposed changes to the
ЌЏ Conservation and Landscape code.
ЌА
ЌБ Commissioner Beck asked if the developer would be responsible if a tree dies within two to three
ЌВ years of planting. Cannone stated if it is an approved landscape plan.
ЍЉ
ЍЊ Commissioner Sanchez questioned if there is a stipulation on preserving female cotton wood trees
ЍЋ in neighborhoods because of issues they cause with home air conditioning units during their
ЍЌ production season. Cannone stated that can be included in the recommendation to City Council.
ЍЍ
ЍЎ The following individual spoke during the Public Hearing:
ЍЏ David Lehde, 5816 W. Plano Pkwy, Plano, Texas 75093. Opposed to the request.
Ў
Њ Rick Baria, 5138 Edwards Rd. Denton, Texas 76208. Supports the request.
Ћ Jim Strange, 3613 Falcon Ct., Corinth, Texas 76210.
Ќ
Ѝ Commissioner Smith questioned what is entailed during the six month grace period. Cannone
Ў stated within the six months as long as the applicant has submitted for a preliminary, final or
Џ building permit, they have the option of submitting under the current code or the proposed code,
А but they are unable to pick and choose from code to code.
Б
В Scott McDonald, Director of Development Services stated the tree fund has been moved under the
ЊЉ Parks and Recreation Department. McDonald continued to state Parks and Recreation is also doing
ЊЊ a tree master plan and city staff will be coming together in a way to utilize the tree fund.
ЊЋ
ЊЌ Chair Rozell questioned the City of canopy east of Interstate 35 (I-35) and what
ЊЍ is the City wide canopy goal. Cannone stated the current canopy east of I-35 is 33% and the canopy
ЊЎ goal is 40%.
ЊЏ
ЊА Chair Rozell closed the Public Hearing.
ЊБ
ЊВ Commissioner Beck stated there are things
ЋЉ something that can be worked on.
ЋЊ
ЋЋ Commissioner Sanchez stated no program that has been implemented is a hundred percent it
ЋЌ always has to be worked on.
ЋЍ
ЋЎ Commissioner Smith stated he is afraid of the affordability both for the money that goes into the
ЋЏ tree fund and the new single family residents. Commissioner Smith also recommended the 6 month
ЋА grace period be considered by City Council and the tree fund to be highlighted in a City Council
ЋБ presentation.
ЋВ
ЌЉ Commissioner Ellis stated staff has done a tremendous job, including stakeholders and the public.
ЌЊ Commissioner Ellis believes the Conservation and Landscape Code has improved, is fair, and
ЌЋ should move forward. Now, the City of Denton has to get a process in place on how to spend
ЌЌ money out of tree fund. Proposed it should be used to plant trees and beautify the City of Denton.
ЌЍ
ЌЎ Commissioner Cole stated the proposed
ЌЏ progress. Commissioner Cole continued one issue he has is Mesquite and Honey Locust trees are
ЌА still being given a life line.
ЌБ
ЌВ Chair Rozell stated with his fellow Commissioners still providing inputs that show the
ЍЉ Conservation and Landscape Code draft to be weak and it sounds there are no efforts to take a few
ЍЊ more months in perfecting it. Chair Rozell continued to state staff has done a great job, but he is
ЍЋ not a proponent of proposed Conservation and Landscape Code.
ЍЌ
ЍЍ Commissioner Larry Beck motioned, Commissioner Alfred Sanchez seconded, to approve Public
ЍЎ Hearing 4D. Motion approved (5-1). Commissioner Alfred Sanchez "aye", Commissioner Larry
Џ
Њ Beck "aye", Commissioner Jason Cole "aye", Commissioner Margie Ellis "aye", and
Ћ Commissioner Tim Smith "aye". Chair Andrew Rozell "nay".
Ќ
Ѝ 5. PLANNING & ZONING COMMISSION PROJECT MATRIX
Ў A. Planning and Zoning Commission project matrix.
Џ
А Richard Cannone, Deputy Director of Development Services, recommends having Gary Packan,
Б Director of Parks & Recreation, come and have a discussion regarding the tree fund.
В
ЊЉ Commissioner Beck requested Haywood Morgan, Urban Forster, to provide his opinion regarding
ЊЊ the issues with the Black Jack Oaks.
ЊЋ
ЊЌ Commissioner Ellis requested an update on Bernard Street between Sycamore Street and Mulberry
ЊЍ Street.
ЊЎ
ЊЏ Chair Rozell closed the Regular Meeting at 9:12 p.m.
ЊА
А
City Hall
City of Denton
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Legislation Text
File #:Z18-0028b,Version:1
AGENDA CAPTION
HoldapublichearingofanordinanceoftheCityofDenton,Texas,regardingachangeinthezoningdistrict
anduseclassificationfromNeighborhoodResidentialMixedUse12(NRMU-12)DistricttoaNeighborhood
ResidentialMixedUse(NRMU)Districtwithoverlayrestrictionsonapproximately8.7acresoflandgenerally
locatedonthenorthsideofAudraLane110feeteastofBayfieldStreetintheCityofDenton,DentonCounty,
Texas;adoptinganamendmenttotheCity’sofficialzoningmap;providingforapenaltyinthemaximum
amountof$2,000.00forviolationsthereof;providingforseverabilityandestablishinganeffectivedate.The
PlanningandZoningCommissionvoted7-0toapprovetherequestwithoverlayrestrictions.(Z18-0028,Audra
Heights Phase II, Julie Wyatt)
City of DentonPage 1 of 1Printed on 3/15/2019
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City of Denton
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
_______________
___________________
AGENDA INFORMATION SHEET
DEPARTMENT: Department of Development Services
CM: Todd Hileman
DATE: March 19, 2019
SUBJECT
Hold a public hearing of an ordinance of the City of Denton, Texas, regarding a change in the zoning
district and use classification from Neighborhood Residential Mixed Use 12 (NRMU-12) District to a
Neighborhood Residential Mixed Use (NRMU) District with overlay restrictions on approximately 8.7
acres of land generally located on the north side of Audra Lane 110 feet east of Bayfield Street in the City
of Denton, Denton County, Texas; adopting an amendment to the
a penalty in the maximum amount of $2,000.00 for violations thereof; providing for severability and
establishing an effective date. The Planning and Zoning Commission voted 7-0 to approve the request
with overlay restrictions. (Z18-0028, Audra Heights Phase II, Julie Wyatt)
BACKGROUND
The applicant is requesting to rezone the subject property from Neighborhood Residential Mixed Use 12
(NRMU-12) District to Neighborhood Residential Mixed Use (NRMU) District on approximately 8.7 acres
to develop the site with single-family attached (townhome) dwellings. Although the current zoning permits
townhomes at a maximum density of 12 dwelling units per acre, the maximum lot coverage is 60 percent,
which would impact the development potential of the lots.
In order to construct townhomes, the property owner is seeking to rezone the property to Neighborhood
Residential Mixed Use (NRMU) District, which would increase the maximum lot coverage from 60 to 80
percent.
Atthe February 20, 2019 the Planning and Zoning Commission, Staff presented an analysis of the proposed
rezoning based upon the criteria for approval, including a discussion regarding the two Future Land Use
designations affecting the subject property: Moderate Residential and Neighborhood Mixed-use. Staffs
assessment concluded that the proposed use conformed to the goals of the Comprehensive Plan, but the
existing zoning of NRMU-12 District was more consistent with the Future Land Use designations and more
appropriate with the surrounding development pattern.
During the presentation, the Commission expressed concerns regarding staff recommendation of denial
since the applicant could develop the property with the proposed use under current zoning, but with taller
buildings to reduce the impervious surface footprint.
Two individuals opposed to the request attended the public hearing. One attendee spoke regarding the
request and indicated he had concerns regarding the impacts of upcoming projects to the adjacent
neighborhoods, as there have been several recent rezoning requests in the general area.
The applicant presented the proposed townhome project and agreed to the possible conditions discussed in
theStaff Analysis, but requested that any landscape buffers and screening walls be placed on a residential
lot, and not on a common area lot. Additionally, the wall and landscape buffer would be located outside of
an existing variable width easement along Audra Lane.
Atthe close of the meeting, the Planning and Zoning Commission recommended to approve the request
with conditions (7-0) designed to increase the compatibility between the use and the surrounding
neighborhoods.
A full analysis of the request is attached in Exhibit 2.
OPTIONS
1. Approve as submitted.
2. Approve subject to conditions.
3. Deny.
4. Postpone consideration.
5. Table item.
RECOMMENDATION
Staff recommended denial of the request as it does not meet the Future Land Use designation as required in
the criteria for approval outlined in Denton Development Code Section 35.3.4.B.
The Planning and Zoning Commission recommended approval of the request with the following conditions
(7-0):
1. Restrict the permitted uses to single-family attached dwellings limited to a maximum twelve (12)
units per acre \[L (40)\].
2. Reduce the maximum building height to 40 feet.
3. A six -foot masonry screening wall and a Type B buffer (10-foot planted strip with 5 evergreen and
deciduous trees and 30 shrubs per 100 linear feet) shall be required between the residential use and
Audra Lane.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The subject property was zoned Neighborhood Residential Mixed Use 12 (NRMU-12) District during the
2002 City-wide rezoning.
OnDecember 13, 2017, the Planning and Zoning Commission recommended approval of a Preliminary Plat
for87 townhome lots accessed by an alley, one common area lot, and two commercial lots.
OnFebruary 20, 2019 the Planning and Zoning Commission voted 7-0 to recommend approval of the
request with overlay restrictions.
DEVELOPER ENGAGEMENT DISCLOSURES
No developer contact and/or meeting disclosures have been provided to staff as of the issuance of this
report.
EXHIBITS
1. Agenda Information Sheet
2. Staff Analysis
3. Aerial Map
4. Zoning Map
5. Future Land Use Map
6. Proposed Zoning Map
7. Zoning and Proposed Buffer Exhibit
8. Comparison of Permitted Uses
9. Notification Map and Responses
10. Presentation
11. Planning and Zoning Commission Meeting Minutes
12. Draft Ordinance
Respectfully submitted:
Richard Cannone, AICP
Deputy Director/Planning Director
Prepared by:
Julie Wyatt
Senior Planner
Њ of $24,375.00 ($125.00 per tree-caliper inches to be planted) should be provided to the City within
Ћ 60 days of AESA18-0002 approval. Upon completion of the three (3)-year landscape
Ќ establishment period, the City shall inspect the trees and determine whether ninety (90) percent of
Ѝ the trees are healthy and have a reasonable chance of surviving to maturity. Upon such a finding,
Ў the City shall release the bond or letter of credit. In the absence of such a finding, the Applicant
Џ shall be notified to replace any unhealthy or dead trees. If the applicant does not take remedial
А steps to bring the property into compliance, the City shall make demand for payment on the cash
Б bond, surety bond, or letter of credit. The City may use all legal remedies to enforce this Subchapter
В in addition to making demand on the security provided herein. 7.NEW Home owner association
ЊЉ(HOA) documents shall be created and filed establishing Lot 14 Block F and Lot 20 Block 28 in
ЊЊ Villages of Carmel Phase 4B to be owned by the HOA for the purpose of preserving the ESAs in
ЊЋ perpetuity. Any maintenance of these lots shall be done according to Subchapter 17 ESA
ЊЌ standards. Copy of the HOA documents shall be provided to the City no later than the final annual
ЊЍ report.
ЊЎ Julie Wyatt, Senior Planner, presented Public Hearing item 3G. Wyatt stated if the Planning and
ЊЏ Zoning Commissions opts to recommend approval, the following overlay conditions are suggested
ЊА to increase conformance with the Future Land Use (FLU) : 1. Restrict the permitted uses to single-
ЊБ family attached dwellings limited to a maximum twelve (12) units per acre \[L(40)\]. 2.Reduce the
ЊВ maximum building height to 40 feet. 3.Common area lots owned and maintained by the
ЋЉ homeowner’s association must separate any proposed residential lots or uses and Audra Lane. The
ЋЊ common area lots must be of sufficient size to accommodate the following entrance features
ЋЋ outside any existing or proposed easements located adjacent to Audra Lane: a six foot masonry
ЋЌ screening wall and a Type B buffer. A Type B buffer is a ten (10) foot planted strip that includes
ЋЍ a combination of five (5) evergreen and deciduous trees and thirty (30) shrubs per one hundred
ЋЎ(100) linear feet.
ЋЏ Wyatt stated staff recommends denialof the request as it does not meet the Future Land Use
ЋА designation as required in the criteria for approval outlined in Denton Development Code Section
ЋБ 35.3.4.B.
ЋВ Hayley Zagurski, Senior Planner, presented Public Hearing item 3H. Zagurski stated staff
ЌЉ recommends approval of this request, with the following conditions: 1. The vehicle repair use shall
ЌЊ be limited to the approximately 600 square foot one-story building area shown on the attached Site
ЌЋ Plan.2. All customer vehicles located at the facility for either repair or pick-up following repair
ЌЌ work shall be kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan.
ЌЍ 3.The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and
ЌЎ maintained so long as a vehicle repair use is located on the subject property, unless the vehicle
ЌЏ storage area is paved and striped as a parking lot. 4. The proposed Type C landscape buffer shown
ЌА on the Site Plan along the southern property line shall be installed and maintained in accordance
ЌБ with the City’s landscape code. In addition, the proposed Type C landscape buffer shall be installed
ЌВ along the eastern property line along the existing wood fence up to the southern edge of the existing
ЍЉ vacant building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
ЍЊ within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree
ЍЋ list in the Site Design Criteria Manual. 5. No storage of inoperable vehicles shall be permitted on
Ў
Њ
Ћ Commissioner Smith questioned the applicant if they are amenable to condition seven. Justin
Ќ Bono, stated yes they agree to the condition, on the Final Plat both areas are already considered a
Ѝ common area and there is no change in the intent to have the Home Owner Association (HOA)
Ў maintain those areas.
Џ
А Chair Rozell closed the Public Hearing.
Б
В Commissioner Tim Smith motioned, Commissioner Jason Cole seconded to approve with staff’s
ЊЉ conditions:1. 195 tree-caliper inches, 35 American Beautyberry shrubs, Blackland Prairie seed
ЊЊ mix and Riparian Recovery seed mix and shall be planted. 2. 0.50 acres adjacent to the USACE
ЊЋ restoration project shall be planted according to the Alternative ESA Plan. 3. 0.23 acres of Cross
ЊЌ Timbers upland habitat shall be restored according to the Alternative ESA Plan. 4. Annual
ЊЍ reporting during the first three years describing the cumulative mitigation work performed and the
ЊЎ survivability of the plantings shall be submitted for staff review and inspection. 5. Plants installed
ЊЏ as a part of the proposed native flora revegetation are to be installed and maintained by the current
ЊА property owner/developer for a period of three (3) years following installation. Plants that are
ЊБ removed, destroyed, or die within that three (3) year period are required to be replaced by the
ЊВ current property owner/developer to achieve 90% survival rate. 6. A bond, letter of credit, or
ЋЉ escrow in the amount of $24,375.00 ($125.00 per tree-caliper inches to be planted) should be
ЋЊ provided to the City within 60 days of AESA18-0002 approval. Upon completion of the three (3)-
ЋЋ year landscape establishment period, the City shall inspect the trees and determine whether ninety
ЋЌ(90) percent of the trees are healthy and have a reasonable chance of surviving to maturity. Upon
ЋЍ such a finding, the City shall release the bond or letter of credit. In the absence of such a finding,
ЋЎ the Applicant shall be notified to replace any unhealthy or dead trees. If the applicant does not take
ЋЏ remedial steps to bring the property into compliance, the City shall make demand for payment on
ЋА the cash bond, surety bond, or letter of credit. The City may use all legal remedies to enforce this
ЋБ Subchapter in addition to making demand on the security provided herein. 7.NEW Home Owner
ЋВ Association (HOA) documents shall be created and filed establishing Lot 14 Block F and Lot 20
ЌЉ Block 28 in Villages of Carmel Phase 4B to be owned by the HOA for the purpose of preserving
ЌЊ the ESAs in perpetuity. Any maintenance of these lots shall be done according to Subchapter 17
ЌЋ ESA standards. Copy of the HOA documents shall be provided to the City no later than the final
ЌЌ annual report. Motion approved (7-0). Commissioner Alfred Sanchez "aye", Commissioner Larry
ЌЍ Beck "aye", Commissioner Jason Cole "aye", Chair Andrew Rozell "aye", Commissioner Mat
ЌЎ Pruneda "aye", Commissioner Margie Ellis "aye", and Commissioner Tim Smith "aye".
ЌЏ G.Hold a public hearing and consider making a recommendation to City Council regarding
ЌА a request by Goodhorn Land Holdings LLC for a change in the zoning district and use
ЌБ classification from Neighborhood Residential Mixed Use 12 (NRMU-12) to a
ЌВ Neighborhood Residential Mixed Use District (NRMU) on approximately 8.7 acres of land
ЍЉ generally located on the north side of Audra Lane 110 feet east of Bayfield Street in the
ЍЊ City of Denton, Denton County, Texas. (Z18-0028, Audra Heights Phase II, Julie Wyatt).
ЍЋ
ЍЌ Chair Rozell opened the Public Hearing.
ЍЍ
ЊЋ
Њ Julie Wyatt, Senior Planner, presented Public Hearing item 3G. Wyatt stated if the Planning and
Ћ Zoning Commissions opts to recommend approval, the following overlay conditions are suggested
Ќ to increase conformance with the Future Land Use (FLU): 1. Restrict the permitted uses to single-
Ѝ family attached dwellings limited to a maximum twelve (12) units per acre \[L(40)\]. 2.Reduce the
Ў maximum building height to 40 feet. 3.Common area lots owned and maintained by the
Џ homeowner’s association must separate any proposed residential lots or uses and Audra Lane. The
А common area lots must be of sufficient size to accommodate the following entrance features
Б outside any existing or proposed easements located adjacent to Audra Lane: a six foot masonry
В screening wall and a Type B buffer. A Type B buffer is a ten (10) foot planted strip that includes
ЊЉ a combination of five (5) evergreen and deciduous trees and thirty (30) shrubs per one hundred
ЊЊ(100) linear feet.
ЊЋ Wyatt stated staff recommends denialof the request as it does not meet the Future Land Use
ЊЌ designation as required in the criteria for approval outlined in Denton Development Code Section
ЊЍ 35.3.4.B.
ЊЎ Chair Rozell questioned why staff believes Neighborhood Residential Mixed Use 12 (NRMU-12)
ЊЏ is better than Neighborhood Residential Mixed Use (NRMU). Wyatt stated the applicant was
ЊА proposing a specific project, and when staff analyzes a rezoning request all factors associated with
ЊБ the zoning district and what it could bring are considered. Wyatt continued to state staff concern
ЊВ was how the development fits with the future land use and the NRMU coming closer to the single
ЋЉ family residents.
ЋЊ
ЋЋ The following individuals spoke during the Public Hearing:
ЋЌ Alan Hermely, 1401 Brandywine Circle, Denton, Texas 76209. Opposed to the request.
ЋЍ Earl Escobar, 2570 Justin Rd Ste. 209, Lewisville, Texas 75077. Supports the request.
ЋЎ Austin Good, 2717 Gull Lake Dr., Plano, Texas 75025. Supports the request.
ЋЏ
ЋА The following individual requested not to speakduring the Public Hearing:
ЋБ Nancy Carson, 2908 Oakshire St., Denton, Texas 76209. Opposed to the request.
ЋВ
ЌЉ Earl Escobar, the applicant, provided a presentation regarding the development and the reason for
ЌЊ the zoning change request.
ЌЋ
ЌЌ Commissioner Smith questioned why the buffer area requirements are difficult to comply with.
ЌЍ Earl Escobar stated there is currently a gas main that runs along Audra Lane which has a 50 foot
ЌЎ easement to accommodate the gas main, there are no issues complying with the open space, but
ЌЏ the screening wall couldn’t be adjacent to Audra Lane.
ЌА
ЌБ Commissioner Beck requested the tenant type that will be leasing to townhomes. Austin Good
ЌВ stated they will be targeting young families.
ЍЉ
ЍЊ Chair Rozell closed the Public Hearing.
ЍЋ
ЍЌ
ЊЌ
Њ Commissioner Tim Smith motioned, Commissioner Larry Beck seconded to approve with staffs
Ћ limitations: 1. Restrict the permitted uses to single-family attached dwellings limited to a
Ќ maximum twelve (12) units per acre \[L (40)\]. 2.Reduce the maximum building height to 40 feet.
Ѝ And change condition three as follows: 3.A six -foot masonry screening wall and a Type B buffer
Ў(10-foot planted strip with 5 evergreen and deciduous trees and 30 shrubs per 100 linear feet) shall
Џ be required between the subject property and Audra Lane. Motion approved (7-0). Commissioner
А Alfred Sanchez "aye", Commissioner Larry Beck "aye", Commissioner Jason Cole "aye", Chair
Б Andrew Rozell "aye", Commissioner Mat Pruneda "aye", Commissioner Margie Ellis "aye", and
В Commissioner Tim Smith "aye".
ЊЉ Chair Rozell called a recess at 9:22 p.m.
ЊЊ
ЊЋ Chair Rozell reconvened the Regular Meeting at 9:32 p.m.
ЊЌ
ЊЍ H.Hold a public hearing and consider making a recommendation to City Council regarding
ЊЎ a request by Second Hand Sports & Game Swap LLC for a Specific Use Permit to allow
ЊЏ for a vehicle repair use on approximately 0.57 acre. The property is generally located on
ЊА the south side of E. McKinney Street, approximately 135 feet west of Oakland Street in the
ЊБ City of Denton, Denton County, Texas. (S18-0007, Dent One - Auto Hail Repair, Hayley
ЊВ Zagurski).
ЋЉ
ЋЊ Chair Rozell opened the Public Hearing.
ЋЋ
ЋЌ Hayley Zagurski, Senior Planner, presented Public Hearing item 3H. Zagurski stated Staff
ЋЍ recommends approval of this request, with the following conditions: 1. The vehicle repair use shall
ЋЎ be limited to the approximately 600 square foot one-story building area shown on the attached Site
ЋЏ Plan.2. All customer vehicles located at the facility for either repair or pick-up following repair
ЋА work shall be kept behind the 6-foot wood fence in the gravel storage area shown on the Site Plan.
ЋБ 3.The proposed 6-foot wood screening fence shown on the Site Plan shall be installed and
ЋВ maintained so long as a vehicle repair use is located on the subject property, unless the vehicle
ЌЉ storage area is paved and striped as a parking lot. 4. The proposed Type C landscape buffer shown
ЌЊ on the Site Plan along the southern property line shall be installed and maintained in accordance
ЌЋ with the City’s landscape code. In addition, the proposed Type C landscape buffer shall be installed
ЌЌ along the eastern property line along the existing wood fence up to the southern edge of the existing
ЌЍ vacant building shown on the Site Plan. Additionally, the proposed deciduous ornamental trees
ЌЎ within the buffer shall be replaced with a deciduous tree from the Medium or Large Canopy tree
ЌЏ list in the Site Design Criteria Manual. 5. No storage of inoperable vehicles shall be permitted on
ЌА the subject property. 6. Failure to adhere to the conditions stated above may result in revocation
ЌБ of the SUP in accordance with DDC Section 35.6.6.
ЌВ
ЍЉ The following individual spoke during the Public Hearing:
ЍЊ CJ Moyo, 208 E. McKinney St., Denton, Texas 76201. Supports the request.
ЍЋ
ЍЌ Commissioner Smith stressed to the applicant there are rules in place that need to be followed from
ЍЍ the City and for the safety of those around us.
ЊЍ
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ORDINANCE NO.___________________
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, REGARDING A CHANGE IN THE
ZONING DISTRICT AND USE CLASSIFICATION FROM NEIGHBORHOOD
RESIDENTIAL MIXED USE 12 (NRMU-12) DISTRICT TO A NEIGHBORHOOD
RESIDENTIAL MIXED USE (NRMU) DISTRICT WITH OVERLAY RESTRICTIONS ON
APPROXIMATELY 8.7 ACRES OF LAND GENERALLY LOCATED ON THE NORTH
SIDE OF AUDRA LANE 110 FEET EAST OF BAYFIELD STREET IN THE CITY OF
OFFICIAL ZONING MAP; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT
OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING FOR SEVERABILITY AND
ESTABLISHING AN EFFECTIVE DATE. (Z18-0028)
WHEREAS, Cody Crannell, has applied for a zoning change on approximately 8.7
acres of land legally described in Exhibit A, attached hereto and incorporated herein by
reference (hereinafter, the Property); and
WHEREAS, on February 20, 2019, the Planning and Zoning Commission, in
compliance with the laws of the State of Texas, gave the requisite notices by publication and
otherwise, held full and fair hearings to all citizens and property owners interested in this
regard, and recommended approval 7-0 of the change in zoning district and use classification,
with overlay conditions; and
WHEREAS, on March 19, 2019, the City Council likewise conducted a public hearing
as required by law, and finds that the request meets and complies with all substantive and
procedural standards set forth in Section 35.3.4 of the Denton Development Code, and is
consistent with the Denton Plan and the Denton Development Code; and
WHEREAS, the Planning and Zoning Commission and the City Council of the City of
Denton, in considering the application for a change in the zoning classification of the property,
determined that the proposed use is in the best interest of the health, safety, morals, and
general welfare of the City of Denton, and accordingly, the City Council of the City of Denton
is of the opinion and finds that said zoning change is in the public interest and should be granted
as set forth herein; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance
are incorporated herein by reference and found to be true.
SECTION 2. The zoning district and use classification for the Property is hereby
changed from the Neighborhood Residential Mixed Use 12 (NRMU-12) District to the
Neighborhood Residential Mixed Use (NRMU) District, with the following overlay conditions:
1. The permitted uses are restricted to single-family attached dwellings, limited to a
maximum twelve (12) units per acre \[L(40)\].
2. The maximum building height is 40 feet.
3. A six -foot masonry screening wall and a Type B buffer (10-foot planted strip with 5
evergreen and deciduous trees and 30 shrubs per 100 linear feet) shall be required
between the residential use and Audra Lane.
SECTION 3. The City official zoning map is hereby amended to show the change in
the zoning district and use classification.
SECTION 4. If any provision of this ordinance or the application thereof to any person
or circumstance is held invalid by any court, such invalidity shall not affect the validity of the
remaining provisions or applications, and to this end the provisions of this ordinance are
severable.
SECTION 5. Any person, firm, partnership or corporation violating any provision of
this ordinance shall, upon conviction, be deemed guilty of a misdemeanor and shall be
punished by fine in a sum not exceeding $2,000.00 for each offense. Each day that a provision
of this ordinance is violated shall constitute a separate and distinct offense.
SECTION 6. That an offense committed before the effective date of this ordinance is
governed by prior law and the provisions of the Denton Code of Ordinances, as amended, in
effect when the offense was committed, and the former law is continued in effect for this limited
purpose.
SECTION 7. In compliance with Section 2.09(c) of the Denton Charter, this
ordinance shall become effective fourteen (14) days from the date of its passage, and the City
Secretary is hereby directed to cause the caption of this ordinance to be published twice in the
Denton Record- Chronicle, a daily newspaper published in the City of Denton, Texas, within
ten (10) days of the date of its passage.
The motion to approve this ordinance was made by __________________________ and
seconded by _________________________________, the ordinance was passed and approved by
the following vote \[___ - ___\]:
Aye Nay Abstain Absent
Mayor Chris Watts: ______ ______ ______ ______
Gerard Hudspeth, District 1: ______ ______ ______ ______
Keely G. Briggs, District 2: ______ ______ ______ ______
Don Duff, District 3: ______ ______ ______ ______
John Ryan, District 4: ______ ______ ______ ______
Deb Armintor, At Large Place 5: ______ ______ ______ ______
Paul Meltzer, At Large Place 6: ______ ______ ______ ______
PASSED AND APPROVED this the _____ day of _____________, 2019.
_______________________________________
CHRIS WATTS, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY: /s/Jerry E. Drake, Jr.
Exhibit A
Legal
Description
Being portion of certain lot, tract or parcel of land lying and being situated in the R.B.
Longbottom Survey, Abstract Number 775, City of Denton, Denton County, Texas and
being of a called 37.60-acre tract of land described in the deed to PAAGE, Ltd. as
recorded in Document Number 015-143386, Real Property Records of said County; the
subject tract being more particularly as follows:
BEGINNING at a point on the approximate centerline of Audra Lane and southwestern
corner of said tract;
Thence North 00 degrees 06 minutes 57 seconds West 100.00 feet to a 12 inch rebar with
a cap stamped "KAZ" found for an interior "ell" corner of Lot 1R, Block A of the Audra
Heights Addition Doc. No. 2009-74);
Thence North 11 degrees 43 minutes 13 seconds West, with the Northeast line of said
Block A, a distance of 173.52 feet to a point set for an interior "ell" corner of Lot 4,
Block A of said Audra Heights Addition;
Thence North 00 degrees 06 minutes 32 seconds West a distance of 911.35 feet to a
point;
Thence North 89 degrees 53 minutes 28 seconds West with the South a distance of
153.12 feet to a point;
Thence North 06 degrees 55 minutes 09 seconds West a distance of 49.27 feet to a point;
Thence North 35 degrees 10 minutes 03 seconds East a distance of 58.48 feet to a point;
Thence South 89 degrees 15 minutes 55 seconds East a distance of 97.70 feet to a point;
Thence North 89 degrees 53 minutes 28 seconds East a distance of 20.00 feet to a point;
Thence South 00 degrees 06 minutes 32 seconds East a distance of 937.20 feet to a point;
Thence beginning a tangent curve to the left, having a central angle of 13 degrees 24
minutes 31 seconds, a radius of 247.50 feet, and a chord bearing and distance of South 06
degrees 48 minutes 47 seconds East, 57.79 feet to a point;
Thence South 13 degrees 31 minutes 02 seconds East a distance of 65.79 feet to a point;
Thence beginning a tangent curve to the right, having a central angle of 13 degrees 56
minutes 06 seconds, a radius of 552.50 feet, and a chord bearing and distance of South 06
degrees 33 minutes 00 seconds East, 134.04 feet to a point;
Thence South 00 degrees 15 minutes 41 seconds West a distance of 44.52 feet to a point;
Thence South 44 degrees 54 minutes 26 seconds East a distance of 7.03 feet to a point;
Thence South 00 degrees 13 minutes 31 seconds East a distance of 34.96 feet to a point
for corner on the approximate centerline of Audra Lane;
Thence South 89 degrees 46 minutes 27 seconds West a distance of 311.84 feet to the
Point of Beginning and containing 376,200 square feet or 8.636 acres of land, more or
less
Planning Report
Z18-0028b / Audra Heights Ph 2
City Council District 1
City Council
March 19, 2019
REQUEST:
Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas,
regarding a change in the zoning district and use classification from Neighborhood Residential
Mixed Use 12 (NRMU-12) District to a Neighborhood Residential Mixed Use (NRMU) District
with overlay restrictions on approximately 8.7 acres of land generally located on the north side of
Audra Lane 110 feet east of Bayfield Street in the City of Denton, Denton County, Texas; adopting
of $2,000.00 for violations thereof; providing for severability and establishing an effective date.
(Z18-0028b, Audra Heights Phase II, Julie Wyatt)
BACKGROUND:
The applicant is requesting to rezone the property from Neighborhood Residential Mixed Use 12
(NRMU-12) District to Neighborhood Residential Mixed Use (NRMU) District on approximately
8.7 acres to develop the site with single-family attached (townhome) dwellings. Although the
current zoning permits townhomes at a maximum density of 12 dwelling units per acre, the
maximum lot coverage is 60 percent, which would impact the development of the lots.
On December 13, 2017, a preliminary plat for the Audra Heights Phase 2 subdivision was
approved. The single-family attached (townhome) lots are generally 2,400 to 3,000 square feet and
are consistent with the maximum density allowed in NRMU-12 District.
misapplication of the Denton Development Code
(DDC), which classified pervious driveways as landscape area, and not counted toward lot
percentage of parking areas if constructed with brick pavers or pervious pavement systems as
lot coverage. DDC Subchapter 23 defines lot coverage as the portion of a lot used for building,
parking, vehicular and pedestrian circulation, loading areas, and outside storage. Landscape area
is the portion of the site not defined as lot coverage.
Recently, DDC Section 35.13.7.B.4.e was discussed during an update to the Denton Development
Code, which revised the parking standards for residential developments to require four parking
spaces for each single-family, duplex, and townhome dwelling. At that time, it was determined
that DDC Section 35.13.7.B.4.e was misapplied to single-family attached and duplex dwellings.
The preface to Section 35.13.7.B specifically removes single- and two-family lots from the
provision that driveways and walkways, when constructed with a pervious surface, are excluded
from the lot coverage calculation.
The discovery of the misapplication, coupled with the updated parking requirements, affects the
project development, as an adequately sized home, driveway, and walkway cannot meet the
maximum lot coverage on a majority of the lots.
In order to construct townhomes as originally intended, the property owner is now seeking to
rezone the property to Neighborhood Residential Mixed Use (NRMU) District, which would
increase the maximum lot coverage from 60 to 80 percent.
SITE DATA:
The 8.7-acre subject site is located north of Audra Lane, between Bayfield Street and Loop 288.
Uses in the surrounding area are primarily residential with some commercial development to the
north. The nearby residential development includes very large-lot single-family dwellings,
established suburban-style single-family neighborhoods, and duplexes.
SURROUNDING ZONING AND LAND USES:
Northwest: North: Northeast:
Zoning : NRMU Zoning : NRMU Zoning : NRMU
Land Use: Self-service Land Use: Self-service Land Use: Commercial
storage storage and undeveloped
West: East:
Zoning : NRMU-12 Zoning : NRMU
SUBJECT PROPERTY
Land Use: Duplexes Land Use: Undeveloped
Southwest: South: Southeast:
Zoning NR-4 Zoning : NRMU-12 Zoning : NRMU-12 and
Land Use: Single-family Land Use: Undeveloped NRMU
dwellings Land Use: Undeveloped and
DME staging
CONSIDERATIONS:
1. Section 35.3.4.B of the DDC provides the following criteria for approval of rezoning
request:
a. The proposed rezoning conforms to the Future Land Use element of The Denton
Plan 2030.
Per the Denton Plan 2030, the subject property is located within two Future Land
Use designations: Moderate Residential and Neighborhood Mixed-Use.
Moderate Residential is intended for residential development with densities
ranging between 4 and 12 dwelling units per acre. Housing types are diverse and
can include single-family detached dwellings on small lots, low-rise multi-family
dwellings, and townhomes; however, development should maintain a scale and
style that complements the character of the surrounding area. The Denton Plan 2030
recommends this Future Land Use designation in central areas of the City and in
transition areas between established single-family neighborhoods and mixed-use
development.
Neighborhood Mixed-Use is also intended for residential developments with a
variety of housing types, but with the addition of retail and services to meet the
day-to-day needs of nearby neighborhoods. Scale is also important in
Neighborhood Mixed-Use and should be compatible with the surrounding
environment.
Since the subject property is located on the cusp of two designations, the area is
transitional, borrowing goals and design criteria from each Future Land Use to
ensure appropriate and compatible development. The zoning which follows the
Future Land Use must protect existing development scale and neighborhoods so
that any new development is harmonious in both use and character. This is often
accomplished through zoning patterns that provide buffers and transition areas to
allow development to gradually increase or decrease in intensity. Since the site is
situated between low-density residential uses to the west and future commercial
development on Loop 288 to the east, the zoning pattern must reflect this
progression of intensity. The request to enlarge the NRMU District adjacent to
Loop 288 could disrupt the progression, resulting an inappropriate transition.
While the proposed townhome use is consistent with both Future Land Use
designations, the requested NRMU District typically aligns more closely with the
intent of the Neighborhood Mixed-Use Future Land Use designation rather than
Moderate Residential. If the request is approved, the commercial uses, higher
densities, and greater development scale (building heights up to 65 feet) permitted
in NRMU District could introduce inconsistent development adjacent to, and across
the street from, established neighborhoods.
The existing NRMU-12, by contrast, is more consistent with the transitional nature
of the area and Future Land Use map. The reduced intensity of the existing NRMU-
12 District more successfully bridges the gap between the two Future Land Use
designations, as it permits some neighborhood-serving commercial uses and a
variety of moderate density housing types, but at a scale more complementary to
the surrounding neighborhoods. New development within NRMU-12 District
would allow the intensity to gradually increase as the zoning and development
pattern moves from the low-density residential neighborhoods west of the site
toward the future commercial development on Loop 288.
As proposed, increasing the NRMU District toward the west would further extend
into an established residential area, reducing the existing NRMU-12 District, which
under the current zoning pattern, provides a transition area between the
neighborhoods to the west and the future development along Loop 288.
b. The proposed rezoning facilitates the adequate provision of transportation, water,
sewers, schools, parks, other public requirements, and public convenience.
drainage, and infrastructure requirements. Impact fees for water, wastewater,
roadways, and parks are assessed at the time of development.
Although the proposed use associated with the rezoning request would not increase
the development density relative to public facilities, it would increase the intensity
of development due to increased lot coverage. The following is a short analysis of
the potential impacts to the surrounding infrastructure.
Transportation
th
According to the 8 Edition of the ITE Trip Generation Manual, the proposed
development would generate 604 trips during a 24-hour weekday, with peak hour
traffic of 54 trips. This number of trips does not trigger a full Traffic Impact
Analysis.
Water and Wastewater
To provide water to the site, the proposal will connect to an existing 12-inch public
property line. Sewer located near the
north boundary of the property.
Parks
A park land dedication fee must be paid prior to the filing of the plat and a park
development fee is required with every residential building permit.
2. The preliminary plat for a townhome development approved on December 13, 2017
conforms to the maximum density requirements for the existing and proposed zoning
districts. The purpose of the requested NRMU District is to secure a higher lot coverage
percentage to accommodate a greater intensity of development on each lot to meet the
parking requirements.
3. If approved, NRMU District would reduce the transition area between Loop 288 and the
single-family neighborhoods to the west, increasing the intensity of development within
proximity of residential areas. The permitted uses and development scale in the requested
NRMU District could introduce incompatibilities or create negative impacts such as traffic
and noise in an established residential area.
However, if the City Council opts to recommend approval, staff suggests the following
overlay conditions to increase conformance with the Future Land Use designation and
compatibility:
a. Restrict the permitted uses to single-family attached dwellings l imited to a
maximum twelve (12) units per acre \[L(40)\].
b. Reduce the maximum building height to 40 feet.
c. A six -foot masonry screening wall and a Type B buffer (10-foot planted strip with
5 evergreen and deciduous trees and 30 shrubs per 100 linear feet) shall be required
between the residential use and Audra Lane.
4. On January 31, 2019, the applicant held a neighborhood meeting. Due to a conflict with
another neighborhood meeting, Staff was not able to attend the majority of the discussion.
STAFF RECOMMENDATION:
Staff recommends denial of the request as it does not meet the Future Land Use designation as
required in the criteria for approval outlined in Denton Development Code Section 35.3.4.B.
OPTIONS:
1. Recommend approval as submitted.
2. Recommend approval subject to conditions.
3. Recommend denial.
4. Table the item.
PUBLIC NOTIFICATION:
To comply with the public hearing notice requirements, 10 notices were sent to property owners
within 200 feet of the subject property, 139 courtesy notices were sent to physical addresses within
500 feet of the subject property, a notice was published in the Denton Record Chronicle, and signs
were placed on the property.
Z18-0028
Site Location
BRANDYWINE
0205410820
Feet
SITE
µ
Parcels
Roads
Date: 1/30/2019
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
Z18-0028
Existing Zoning Map
IC-E
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BRANDYWINE
NR-3
NRMU
PD
NR-2
NR-6
NR-4
NRMU-12
0205410820
Feet
SITECM-GNR-2NRMU
µ
EC-CNR-3NRMU-12
Parcels
EC-INR-4PD
Roads
IC-ENR-6
Date: 1/30/2019
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
Z18-0028
Future Land Use Map
Community
Mixed
Use
Business
Innovation
BRANDYWINE
Neighborhood
Mixed Use
Low Residential
Moderate
Residential
Government
/ Institutional
02555101,020
Feet
SITENeighborhood Mixed Use
Future Land Use
µ
Business Innovation
Low Residential
Parcels
Government / Institutional
Moderate Residential
Roads
Parks / Open Space
Community Mixed Use
Date: 1/30/2019
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
Z18-0028
Proposed Zoning Map
IC-E
CM-G
EC-C
EC-I
BRANDYWINE
NR-3
NRMU
PD
NR-2
NR-6
NR-4
NRMU-12
0205410820
Feet
SITECM-GNR-2NRMU
µ
EC-CNR-3NRMU-12
Parcels
EC-INR-4PD
Roads
IC-ENR-6
Date: 1/30/2019
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
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Accessory Dwelling UnitsL(1)N
AgriculturePP
Attached Single-family DwellingsPL(40)
Community Homes for the DisabledpP
DormitorySUPSUP
DuplexesPN
Dwellings above BusinessesPP
Fraternity or Sorority HouseSUPSUP
Group HomesSUPSUP
Live/Work UnitsPP
LivestockL(7)L(7)
Manufactured Housing DevelopmentsNN
Multi-family DwellingsL(4)SUP L(4)
Single-family DwellingsPN
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Administrative or Research FacilitiesNL(14)
Auto and RV SalesNN
BarNL(11)
Bed and BreakfastL(10)P
Broadcasting or Production StudioNL(14)
Commercial Parking LotsNN
Drive-Through FacilityNSUP
Equestrian FacilitiesNN
Home OccupationPP
HotelsNP
Indoor RecreationNN
Laundry FacilitiesPP
Major Event EntertainmentNN
Medical OfficeL(14)L(17)
MotelsNN
Movie TheatersNN
Outdoor RecreationSUPSUP
Private ClubNL(11)
Professional Services and OfficesL(14)L(17)
Quick Vehicle ServicingNSUP
RestaurantNL(11)
Retail Sales and ServiceL(15)L(17)
Sale of Products Grown on SiteNN
Self-service StorageNN
Sexually Oriented BusinessNN
Temporary UsesL(38)L(38)
Vehicle RepairNN
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BakeriesNL(21)
Compressor StationsNN
Construction Materials SalesNN
Craft Alcohol ProductionNSUP
Distribution Center/Warehouse, GeneralNN
Feed LotsNN
Food ProcessingNN
Gas WellsL(27)L(27)
Heavy ManufacturingNN
Junk Yards and Auto WreckingNN
KennelsNN
Light ManufacturingNN
Manufacture of Non-Odiferous FoodsNN
Printing/PublishingNN
Sanitary Landfills, Commercial Incineratiors, Transfer
NN
Stations
Veterinary ClinicsNL(14)
Warehouse, RetailNN
Wholesale NurseriesNN
Wholesale SalesNN
Wrecker Services and Impound LotsNN
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Adult or Child Day CarePP
Basic UtilitiesL(25)L(25)
Business/Trade SchoolNL(14)
CemeteriesNN
ChurchesPP
CollegesNN
Community ServicePP
Conference/Convention CentersNN
Elderly HousingL(13)P
Electric Substations & Switch StationsL(43)L(43)
High SchoolNSUP
Hospital ServicesNN
Kindergarten, Elementary SchoolPP
Medical ClinicNSUP
Middle SchoolPP
MortuariesNN
Parks and Open SpacePP
Semi-Public Halls, Clubs, and LodgesL(15)P
WECS (building mounted)SUPSUP
WECS (freestanding monopole)SUPSUP
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Minimum Lot Area (square feet)
3,5002,500
Minimum Lot Width30 feet20 feet
Minimum Lot Depth
80 feet50 feet
Maximum Density12*30*
Maximum Lot Coverage
60%80%
Minimum Landscaped Area40%20%
Maximum Building Height
40 feet65 feet
* For subdivisions of more than 2 acres in lieu of minimum lot size and dimension requirements
ΛЊΜ = Accessory dwelling units are permitted, subject to the following additional criteria:
The proposal must conform with the overall maximum lot coverage and setback requirements of the underlying zone.
The maximum number of accessory dwelling units shall not exceed one (1) per lot.
The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed fifty (50) percent of the GHFA of the primary residence on the lot, and shall not
exceed one thousand (1,000) sq. ft. GHFA unless the lot meets the requirements of L(1).5.
One (1) additional parking space shall be provided that conforms to the off-street parking provisions of this Chapter.
The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed fifty (50) percent of the GHFA of the
primary residence on the lot, where the lot size is equal to or greater than ten (10) acres in size. An SUP is not required for such an accessory
residential structure where the lot size is equal to or greater than ten (10) acres.
L(4) = Multi-family is permitted only:
With a Specific Use Permit; or
As part of a Mixed-Use Development; or
As part of a Master Plan Development, Existing; or
If the development received zoning approval allowing multi-family use within one (1) year prior to the effective date of Ordinance No. 2005-224;
or
If allowed by a City Council approved neighborhood (small area) plan.
L(7) = Limited to two (2) animals on parcels one (1) to three (3) acres in size. Additional animals may be added at a rate of one (1) per each acre
over three (3).
L(8) = Travelers' accommodations, are permitted, provided that:
1. The business-owner or manager shall be required to reside on the property occupied by the accommodation, or adjacent property.
2. That each accommodation unit shall have one (1) off-street parking space, and the owners shall have two (2) parking spaces. All spaces shall be
in conformance with the requirements of the Off-Street Parking section of this Chapter.
3. That only one (1) ground or wall sign, constructed of a non-plastic material, non-interior illuminated of four (4) sq. ft. maximum size be
allowed. Any exterior illumination of signage shall be installed such that it does not directly illuminate any residential structures adjacent or
nearby the travelers' accommodation.
4. That the number of accommodation units allowed shall be proportional to the permitted density of the zone. Each traveler's accommodation
unit shall be counted as 0.6 units for the purpose of calculating the permitted number of traveler's accommodations.
5. All traveler's accommodations shall be within two hundred (200) feet of a collector or arterial. Street designations shall be as determined by
the City Comprehensive Plan. Distances shall be measured via public street or alley access to the site from the arterial.
6. Excluding the business-owner's unit and the area of the structure it will occupy, there must be at least four hundred (400) sq. ft. of gross
interior floor space remaining per unit.
7. Traveler's accommodations are limited to no more than eight (8) guest units.
L(10) = All restrictions of L(8), but limited to no more than five (5) guest units.
L(11) = Limited to sit down only, and no drive up service permitted. Limited to no more than one hundred (100) seats and no more than four
thousand (4,000) square feet of restaurant area.
L(13) = Uses are limited to no more than fifty-five thousand (55,000) square feet of gross floor area per lot.
L(14) = Uses are limited to no more than ten thousand (10,000) square feet of gross floor area.
L(15) = Uses are limited to no more than five thousand (5,000) square feet of gross floor area per lot. An SUP is required for additional square
footage for Semi-Public Halls, Clubs and Lodges
L(17) = Uses that exceed twenty-five thousand (25,000) square feet of gross floor area per use require approval of a SUP.
L(21) = Bakery and bottling areas not to exceed two thousand five hundred (2,500) square feet. Sales on premises of products produced required
in this zone.
L(25) = If proposed use is within two hundred (200) feet of a residential zone, approval is subject to a Specific Use Permit.
L(27) = Must comply with the provisions of Subchapter 89, Gas Well Drilling and Production.
L(41) = Lots where the proposed WECS will be located shall have a minimum lot area of two (2) acres. A maximum of one (1) WECS is permitted
L(42) = Building-mounted WECS may not extend higher than ten (10) feet above where the WECS is mounted on the building. The height shall be
measured from the base of the WECS where it is mounted on the building to the highest point of the arc of the blades' elevation. If the WECS
does not use blades, then height is measured from the base of the WECS where it is mounted on the building to the highest point of the WECS.
L(43) = Electric Substations and Switch Stations are permitted subject to the following criteria:
1. An applicant shall be required to submit an application for a Specific Use Permit pursuant to Subsection 35.6 in accordance with procedures set
forth in Subsection 35.3.4 unless it is able to meet the following requirements:
A. Use of the property is associated with a City Council approved Capital Improvements Plan (CIP) or other City Council approved Master Plan;
and
B. A public hearing was held at the City Council for the selection of the site to include:
i. Written notice of the public hearing was provided to property owners within two hundred (200) feet and physical addresses within five hundred
(500) feet of the subject property at least twelve (12) days prior to public hearing; and
Written notice of the public hearing was provided to property owners within two hundred (200) feet and physical addresses within five hundred
(500) feet of the subject property at least twelve (12) days prior to public hearing; and
ii. A sign advertising the public hearing was posted on or adjacent to the property at least twelve (12) days prior to the public hearing.
C. A neighborhood meeting was held at least fifteen (15) days prior to the public hearing at City Council for the acquisition of the site.
2. All Electric Substations or Switch Stations shall comply with the following development requirements:
1. The proposed electric substation or switch station shall substantially comply with all of the development and regulatory standards established
in Subchapter 24; and
2. A site plan demonstrating substantial conformance with all the applicable design standards identified in Subchapter 24 shall be submitted.
L(38) = Must meet the requirements of Section 35.12.9.
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AgriculturePP
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Community Homes for the DisabledPP
DuplexesNL(3)
Group HomesSUPN
Live/Work UnitsPN
Manufactured Housing DevelopmentsPN
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Administrative or Research FacilitiesSUPN
Bed and BreakfastL(10)N
Broadcasting or Production StudioSUPN
Equestrian FacilitiesPN
Feed LotsSUPN
KennelsL(14)N
Veterinary ClinicsPL(14)
Wholesale NurseriesPN
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Adult or Child Day CarePSUP
Basic UtilitiesPL(25)
Electric Substations & Switch StationsPL(43)
Kindergarten, Elementary SchoolPSUP
Semi-Public Halls, Clubs, and LodgesNSUP
WECS (building mounted)L(42)SUP
WECS (freestanding monopole)L(41)SUP
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Minimum Lot Area 5 acres7,000 sq ft
Minimum Lot Width
200 feet50 feet
Minimum Lot Depth250 feet80 feet
Maximum Density
0.2*4**
Maximum Lot Coverage15%60%
Minimum Landscaped Area
75%40%
Maximum Building Height65 feet40 feet
Z18-0028
Notification Map
500ft Buffer
200ft Buffer
BRANDYWINE
0205410820
Feet
SITE
µ
Parcels
Roads
Date: 1/30/2019
The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather
for reference purposes. These maps are the property of
the City of Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate
information possible. No warranties, expressed or
implied, are provided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.
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