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HomeMy WebLinkAbout2021-08-02 Agenda and BackupCit of Denton City Hall Y 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DENTON Meeting Agenda City Council Monday, August 2, 2021 9:00 AM Council Chambers WORK SESSION Note: A quorum of the City Council, at time of posting, identified to be Mayor Gerard Hudspeth, Mayor Pro Tem Paul Meltzer, and Council Members Vicki Byrd, Brian Beck, Jesse Davis, Alison Maguire, and Deb Armintor will be participating in the work session in person in the Council Chambers. After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Monday, August 2, 2021, at 9:00 a.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION 1. Work Session Reports A. ID 21-854 Receive a report, hold a discussion, and give staff direction regarding the Streets Fund and long-term funding strategies. B. ID 21-1595 Receive a report, hold a discussion and give staff direction regarding Fire Station 9. C. ID 21-1087 Receive a report, hold a discussion, and give staff direction regarding the FY 2021-22 City Manager's Proposed Budget, Capital Improvement Program, and Five -Year Financial Forecast. NOTE: The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. CERTIFICATE I certify that the above notice of meeting was posted on the official website (https://www.cityofdenton.com/en-us/govern nent/open/agendas-minutes) and bulletin board at City Hall, 215 E. McKinney Street, Denton, Texas, on July 29, 2021, in advance of the 72 -hour posting deadline, as applicable, and in accordance with Chapter 551 of the Texas Government Code. CITY SECRETARY NOTE: THE CITY OF DENTON'S DESIGNATED PUBLIC MEETING FACILITIES ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE ACCOMMODATION, SUCH AS SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED, IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 940-349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1 -800 -RELAY -TX SO THAT REASONABLE ACCOMMODATION CAN BE ARRANGED. Page 1 Printed on 8/4/2021 1 City Council Meeting Agenda August 2, 2021 Page 2 Printed on 8/4/2021 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DENTON Legislation Text File #: ID 21-854, Version: 1 AGENDA CAPTION Receive a report, hold a discussion, and give staff direction regarding the Streets Fund and long-term funding strategies. City of Denton Page 1 of 1 Printed on 7/29/2021 powered by LegistarTM 3 41,1&�Iwsm DENTON DEPARTMENT: Finance City of Denton AGENDA INFORMATION SHEET DCM: David Gaines, Assistant City Manager DATE: August 2, 2021 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com SUBJECT Receive a report, hold a discussion, and give staff direction regarding the Streets Fund and long-term funding strategies. BACKGROUND Beginning in 2020, the City of Denton's Streets Department partnered with Infrastructure Management Services (IMS) to conduct an Overall Condition Index (OCI) assessment of the City's entire roadway network. IMS has completed previous OCI assessments for the City of Denton, and staff plans to conduct these assessments on a recurring basis of no more than five (5) years. The most recent assessment was in 2015. The results of the 2020 assessment are encouraging and reflect the investments and improvements associated with the 2012 and 2014 bond packages. The City's average OCI improved from a network grade of 64 in 2015 to 68 in 2020. Additionally, the percentage of the City's network rated as "poor" or "very poor" was reduced from 20% to 14%. As part of the City of Denton's 2019 Bond Election, voters approved an additional $70 million to be included in the Street Reconstruction Proposition. The $70 million program includes 219 street segments selected based on general condition, proximity to other streets, and OCI score. Following voter approval of the 2019 Street Reconstruction Program, staff began organizing the roadways into "neighborhood construction bundles" and working with firms to assist with design and program management. By bundling roadway segments and required subsurface utility work in this manner, the City capitalizes on economies of scale and attracts higher quality construction bids. To further maximize the efficiency of each neighborhood bundle, staff has identified additional roadways with low OCI scores and/or requiring subsurface utility work that can be addressed using available funding sources. This approach will reduce the number of future construction disruptions in these neighborhoods while allowing the City to continue improving OCI and further reducing the number of poor roadways in the network. As mentioned during the Streets department's budget presentation, operational funds have traditionally been transferred to capital reconstruction projects as needs arise. Staff is recommending that this practice be formalized so that a predictable stream of funding is made available for these and future street reconstruction projects. Additionally, staff is recommending transfers from the General Fund and adjustments to franchise fee allocations to provide the funding required to address the proposed additions to the neighborhood bundles described above. 4 During the presentation, staff will provide the Council with an overview of these recommendations, the anticipated impact, and a preview of long-term funding required to maintain the City's roadway network in improved condition moving forward. OPERATIONAL IMPACT The Streets department will maintain adequate funding in the Streets Maintenance Fund to address repairs and minor maintenance. Funding intended for use with reconstruction capital projects will be transferred to the Streets Capital Fund as outlined in the proposed budget. Funding allocations will be reviewed as part of the annual budget process to ensure appropriateness. PRIOR ACTION/REVIEW (Council. Boards. Commissions) The City Council reviewed the Streets department operating budget during the July 27, 2021 work session. EXHIBITS Exhibit 1 — Agenda Information Sheet Exhibit 2 — Presentation Respectfully submitted: Cassandra Ogden, Finance Streets Operations, Funding & Capital Improvement Program [.1 City Hall August 2, 2021 - East Entrance T Mayor & Council Offices x' City Council Chamber -- �` Council Work Session Room City Manager's Office is _ T City Secretary r Economic Development E- utility Administration 1. <-- Finance Administration E Accounting j Accounts Payable ; E Legal Department - - �•,.�, P Accessible Route I [.1 Objectives Review Current Street Funding Tools Update 5 Year Progress in Streets Condition Present FY22-26 Streets Plan Discuss Long Range Plans and Options 4* 27 Streets Capital Fund • FY 2021-2022 Council budget priority as noted in February's Council Retreat • Establish additional Fund for enhanced streets maintenance and reconstruction • Goal of lessening dependence on long-term debt for reconstruction and major maintenance activities • Annual revenue contributions allow for additional flexibility in managing capital plans • Reserves can be used for unforeseen or catastrophic capital needs • Continue periodic bond programs in conjunction with Streets Capital Fund • Develop sustainable source of revenues for a long-term street maintenance and repair program • Best practices for capital and financial management of capital assets f 38 Streets Funding — Current State • Street Maintenance Fund • Established per Ordinance 2011-154, Ordinance 2013-219 • Effective October 1, 2012 • Dedicated revenue for street maintenance and improvement activities from: • Dedicated portion of Franchise Fees (current year 77%) • Interest income • Interest savings from Utilities for issuing Certificates of Obligation instead of Revenue Bonds • Excess funding toward rehab program • Debt Funding • 2012/14/19 Bond Programs • Street Rehab Program • Investments into street reconstruction of existing network • Major Roadway Projects Street • Hickory Creek ' ond Programs Reconstruction Fundin,-- • Bonnie Brae • Ryan Road 2019 Bond Program $154.00 million • Additional CO Issuance as needed 2014 Bond Program $61.71 million • External Funding • TXDOT/COG 2012 Bond Program $20.40 million • Roadway Impact Fee Funding • Restricted to major roadways identified in study 4* 49 Recommendation — FY 21/22 Franchise Fee Revenue 80% 20% ell— Streets 60% 40% Streets Maintenance Fund* Streets Capital Fund General Fund *Rename existing Street Improvement Fund 10 Roadway Condition Comparison — 2015 to 2020 200 180 160 140 w 120 100 a e O so 60 40 20 0 Very Poor 2015; 111 Miles (3%) 202D: 20 Miles (196) Poor 2415: 158 Miles (12%) 2020: 182 Miles (13%) 0-5 5-10 10-15 15-20 20-25 75-34 341k-&5 35-40 0 201 Lane Miles m 202 Lane Miles OCI Goal - 70 • 2015: 64 • 2020: 68 Fair 2415: 229 Miles (17%) 2020:343 Miles (24%) 0-45 45-50 50-55 55-6( OCI Range `Backlog' Goal - <10% • 2015: 20% • 2020:14% Good 2015: 231 Miles {17%) 2420: 125 Miles (9%) Very Good 2015:471 Miles (36%) 2020:441 Miles (30%) Excellent 2015: 227 Miles (17%) 2420: 339 Miles (23%) #65 65-74 7C,75 75-90 80-85 85-90 90-95 95-100 4* 2020 Roadway Conditions & Treatment Costs Good 125 Lane Miles veryGood 441 Miles (30%) -65 65-70 70-75 75-84 80-85 Excellent 339 Miles (23%) .ff [� 95-94 90-95 95-100 Reconstruction Major Maintenance Minor Maintenance • Comprehensive rebuild to new 0 Restorative work to address distressed 0 Restorative work for localized problems condition roadways such as potholes, deterioration, and • Includes rebuild of subgrade, roadway 0 Includes asphalt mill & overlays, base repairs base, and surface concrete panel replacements, and base 0 Includes pothole filling, resurface • May also include drainage, utility, traffic, repairs treatments, and crack sealing and pedestrian/bike facilities 12 Very Poor Paar Fair 20 Miles (196) 182 Miles (13%) 343 Miles (24%) 200 160 160 140 v 120 100 a C A 60 lit. 60 40 20 0 0-5 5-10 1-15 _3-20 20-15 25-30 30-35 35-04 40-45 45-50 5&55 55-60 ■ 2020 Lane Miles 4CI Range Good 125 Lane Miles veryGood 441 Miles (30%) -65 65-70 70-75 75-84 80-85 Excellent 339 Miles (23%) .ff [� 95-94 90-95 95-100 Reconstruction Major Maintenance Minor Maintenance • Comprehensive rebuild to new 0 Restorative work to address distressed 0 Restorative work for localized problems condition roadways such as potholes, deterioration, and • Includes rebuild of subgrade, roadway 0 Includes asphalt mill & overlays, base repairs base, and surface concrete panel replacements, and base 0 Includes pothole filling, resurface • May also include drainage, utility, traffic, repairs treatments, and crack sealing and pedestrian/bike facilities 12 2019 Bond Street Reconstruction Program Partially focused on addressing "very poor" streets with an OCI of 20 or less Disadvantage of this approach was it did not include connecting streets Similar approach to 2012/2014 bond packages Partially focused on a neighborhood -based approach that included connecting streets and utility work Disadvantage of this approach is it did not address all "poor" and "very poor" streets Hybrid approach was the basis for the 219 segments included in the voter -approved $70 million Street Reconstruction Program 4* 13 2019 Bond Package Street Reconstruction Neighborhood Packages • Bundle Segments = Economies of Scale • Minimize future neighborhood disruptions Rationale for New Segments • Include roadways receiving utility work • Include roadways with marginal OCI "Neighborhood -'Packages 14 21-854 Impact of Bond Program on Street Condition 200 180 160 140 a, 120 u 100 60 40 20 0 Very Poor 2020: 20 Lane Miles (1.4%) Remaining: 9 Lane Miles (0.6%) Poor Fair 2020: 182 Lane Miles (13%) 2020: 343 Lane Miles (24%) Remaining: 74 Lane Miles (5%) Remaining: 319 Lane Miles (22%) Good Very Good Excellent 2020: 125 Lane Miles (9%) 2020:441 Lane Miles 00%] 2020: 339 Lane Miles (23%) Remaining: 1Z3 Lane Miles (9%1 Remaining: 438 Miles (30%) Remaining: 336 Miles (23%) 0-5 5.10 10.15 i5.2C 30.35 35-40 55-60 _ 70.75 75-80 80.85 85-90 90-95 95-100 ■Bond Lane Miles .2020 Lane Mile: 2019 Bond Program - Street Reconstruction Description Original Program Recommended Program Segments 219 401 Lane Miles 69 114 Required Capital $70.0 million $108.0 million Projected Impact Over 5 Years: • 00: Between 71 to 75 • Backlog: Between 12 to 15% Ongoing Maintenance - 5 Year Work Plan Description Year 1 Year 5 Lane Miles 897 1090 Required Funding $5.0 million $6.0 million 15 Stu Long -Term Funding Needs Funding Source 2022-2026 2027-2031 2032-2036 Revenue Capital Funding — Franchise Fees $ 31 $ 36 $ 39 Maintenance Funding — Franchise Fees $ 35 $ 55 $ 58 Bond Funding (Future Bond Programs) $ 70 $ 146 $ 177 Expenses Wounus I' ° • nflo a Pa o o Maintenance Costs $ (34) $ (39) $ (58) Reconstruction Costs $ (108) $ (209) $ (253) Gap $ (6) $ (11) $ (37) Reconstruction Lane Miles *Funding & Costs in millions 116 M'IIE Assumptions: • Growth — 20 lane miles/yr • Roadway Degradation — 2.5 OCI points/yr • "Backlog" of Poor/Very Poor - 10% or less • "Just in Time" Maintenance • Cost Inflation — 5% • Recurring Franchise Fees increase 3% per year, until 2031 • Street Reconstruction —70% Bond Funded 118ft, 116 Policy Funding Options Included in FY2022 Proposed Budget Other Options 117 Franchise Fee Growth '80% FF to Streets Franchise Fee Revenue Annual Current funding likely won't match cost Included in Proposed Allocation mechanism Budget escalation 9$14.5 million/year Transfer from General One-time No impact to Reduces General Fund •FY 2021 - $2.5 million Included in Proposed Fund operations reserve balance Budget *Variable revenue stream. Phased in over multiple *Approximately $5.6 Sales tax dedication Annual Large annual revenue million for 0.0125% years. Revenue would be contribution. .Revenue has to be made(1/8) of sales tax offset by increased up in the General Fund. property tax rate. Stable revenue Revenue has to be made Approximately $1.5 Property tax dedication Annual stream that could up in the General Fund or million for $0.01 of tax Property tax rate would grow over time additional cent has to be rate. increase as necessary. added to rate. •Approximately $1.5No Increase in City owned Annual No impact to General Possible minimal impacts million per year with direct impact to FY Utility Franchise Fee Fund to ratepayers 2021-22 utility rates. 0.5% increase Increase Franchise Fee Current funding Revenue has to be made $51ncrease from 80% to Revenue would be offset Revenue Allocation Annual mechanism up in General Fund by increased property tax 9$1 million/ year rate. 117 Long Term Strategy Fundine Source 2022-2026 2027-2031 2032-2036 Revenue Capital Funding— Franchise Fees $ 31 $ 36 $ 39 Maintenance Funding — Franchise Fees $ 35 $ 55 $ 58 Bond Funding (Future BondPrograms) $ 70 $ 146 $ 177 f e Expenses DUNURRfATV ��,�, � • Ul�Jlf hhUR nW FftW0WW Maintenance Costs $ (34) $ (39) $ (58) Reconstruction Costs $ (108) $ (209) $ (253) Gap $ (6) $ (11) $ (37) Reconstruction Lane Miles *Funding & Costs in millions 0.5% Increase to City Owned Utility Franchise Fee* $0.01 Property Tax Rate Dedication* Net Balance 116 190 180 $ 7 $ 8 $ 9 Other Funding Options $ 8 $ 9 $ 11 Could Be Considered $ 15 $ 17 $ 20 $ 9 $ $ 9 $ 7 $ (17) 16 $ (2) 10* 118 Next Steps • Revise Streets Improvement Ordinance for Council Consideration • FY 2022 Budget Adoption • Including appropriate changes based on Council direction • Contract with Outside Consultant for 30-40 year Streets Funding Plan • Continue to Review Funding Options • i.e. Transportation Fee low 119 Questions? City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DENTON File #: ID 21-1595, Version: 1 Legislation Text AGENDA CAPTION Receive a report, hold a discussion and give staff direction regarding Fire Station 9. City of Denton Page 1 of 1 Printed on 7/29/2021 powered by LegistarTM 21 11'1%1-0001� DENTON DEPARTMENT: Fire City of Denton AGENDA INFORMATION SHEET CM/ DCM/ ACM: Frank Dixon, Interim Assistant City Manager DATE: 08/02/2021 SUBJECT Receive a report, hold a discussion, and give staff direction regarding Fire Station 9. BACKGROUND City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com The Fire Department continues to see an increase in overall call for service volume, specifically in the northwest portion of the City. Data and response trends allow staff to conservatively predict the work load of future years. Staff ran a response analysis and compared call response times based on National Fire Protection Association Standard 1710, Standard for the Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations, and Special Operations to the Public by Career Fire Departments. A proposed Airport/Fire Station 9, when constructed, will reduce extended response times west of Interstate 35 including Denton Enterprise Airport and industrial area, as well as assist with the coverage of the western portion of the City. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Presentation Respectfully submitted: Kenneth Hedges Fire Chief Prepared by: Lindsey Garrison Fire Administration Manager 0+ Fire Department Update p;w-,tN7'oN Department Update Review historical data of department emergency responses Discussion about future Fire Station 9 Next Steps August 2, 2021 ID 21-1595 2 24 Population Forecast 2010 - 2030 2030 2020 207)334 147PS25 2010 1131383 Source: Univers ity o f North Texas' C ente r for Eoonorn is Deve I o pm a nt an d Research, (1) 2010 U.S. Census Bu reau data utilimd for base years Erica.SuII -Iva n0cityofdenton.corn August 2, 2021 ID 21-1595 325 Total Calls for Service 2015 2016 SERVICE 2017 2018 2019 2020 2021* 2022 5.8% average growth from 2015-2019 *11.4% growth based on average of 2019 and 2020 1,000 CFS removed from Winter Storm Uri additional responses August 2, 2021 ID 21-1595 4 26 Fire Station Locations T US377 + Aubrey f I'm156/ / / + N1 116 / 4 2 Krugervdte + r r Kr Jrr !1 + �� — !i FM 624 / \471 1 ql ' A il$ 377 � \1fi7 t35 3RD + . „� L'�S JeJ r - CrO55 ROc7ds ! _ Uncoln Farts - / /, De zee FM 720 / i� i \ ! Pander 1 I ! TI ❑ _ + Shady Sf+ore; I \ Little Elm �dCorinth arkn�rfy V 459 l3krvood 715HJ. / \ ! � ! \ 1499 4581 + I NUrthldke 79 / Fill i F37 \ 4$7 + I I 9J qr v \ \ H.ckory Creek OpenStreetMap (and) contributors, CC -BY -SA August 2, 2021 ID 21-1595 5 27 District Call Volume 0 August 2, 2021 ID 21-1595 6 28 Upcoming Response Challenges • District 5 calls for service is escalating rapidly and will continue to rise as growth around the new Denton High develops • Response times are a concern now and will increase as more density along the western 380 corridor • As calls for service increase, out of district responses increase • Nearest secondary response stations are: • Station 1— 332 E Hickory • Station 3 — 1401 Underwood • Station 4 — 2110 E Sherman • Station 7 — 4201 Vintage Pkwy August 2, 2021 ID 21-1595 7 29 I District 5 - Backfill FM 156 FM 156 III 4ry�rl I —� J FM 2150 FAl-156 FM 156 .00,-4—A,, _ Yrppn :4 F r;• rhI:I4A Wor�un DISTRICT 5 CALLS FOR SERVICE 2020 Bluc Mo 2•M m Nr v!m Ir _, FM 1173 r 1 F 114 � } I_F35 I iem,�yma F�fr(1 , L. 269 Den 1t „ .a1 • �� Y ter.. v •r,a.� 1 � 1 �♦ 1 � - US 3iY me 467 /4 �I c CpenStreetMap (and) contributors, CC -BY -SA ^ 'F. i + Shady Shores August 2, 2021 ID 21-1595 8 30 Effective Response Force • Fire suppression resources shall be deployed to provide the arrival of an engine company within 4 minutes travel time to 90% of the incidents • The fire department shall have the capability to deploy an initial full alarm assignment with 8 minutes travel time to 90% of the incidents. E NFPA Standard for the Organization and Deployment of Fire Suppression Operations, Emergency Medical Operations. and Special Operations to the Public by Career Fire Departments It DlIA91MEIt L I Future Fire Station 9 i DENTON ENTERPRI5 AIRPORT DFW ACCESS, EXTRAORDINARY BUSINESS. Denton Enter rise Airportp • 8511 busiest airport in the country (121h for contract towers) for FY 19/20 8th busiest airport in Texas (2nd for contract towers) • Over 375 based aircraft • Two runways with full approaches and lights • Runway 18-36 (7,002 ft) can handle aircraft as large as a Boeing 737 • Over 70 buildings with near 200 individual hangers • Home to two full service FBO's; over 1.4 million gallons of fuel dispensed annually • Home to over 30+ aviation businesses • Nearly 1,000 acres of land with 200 acres of undeveloped property on west side of the airport • DEA is one of only two top 10 busiest airports in Texas that does not have a fire station on site August 2, 2021 ID 21-1595 KICI ESCIEmergency Services Consulting International Community Risk Assessment: Standards of Cover, February 2020 Improvement Goal G: Add New Airport Fire Station After review of current conditions, future City growth patterns and associated risk profiles a fire station at the airport offers an enhancement opportunity. Incident Demand Study: Fire Station and Resource Triggers, March 2020 Recommendation G: ESCI recommends that a fire station be located in the vicinity of Airport Rd and Masch Branch Rd to optimize future access/egress routes August 2, 2021 ID 21-1595 34