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Home My WebLink About122118 Friday Staff Report City Manager’s Office 215 E. McKinney St., Denton, TX 76201  (940) 349-8307 OUR CORE VALUES Integrity  Fiscal Responsibility  Transparency  Outstanding Customer Service MEMORANDUM DATE: December 21, 2018 TO: The Honorable Mayor Watts and Council Members FROM: Todd Hileman, City Manager SUBJECT: Friday Staff Report I. Council Schedule A. Meetings 1. No City Council Meeting Tuesday, December 25, 2018. 2. No Agenda Committee Meeting Wednesday, December 26, 2018. B. Upcoming Events 1. Third Annual State of the City, January 17, 2019 from 6:00-8:30 p.m. at the Embassy Suites Denton Convention Center 2. US Conference of Mayors, January 23-25, 2019, Washington, D.C. 3. Denton County Days, February 18-20, 2019, Austin, TX II. General Information & Status Update A. Holiday Operating Hours and Closings – City of Denton administrative offices will be closed on Monday, Dec. 24 and Tuesday, Dec. 25 in observance of the Christmas federal holiday; and Tuesday, Jan. 1, 2019, in observance of New Year’s Day. The attached press release details all of the service impacts related to the upcoming holidays. On behalf of all City of Denton employees, have a safe and happy holiday season. Jessica Rogers, Public Affairs. B. City Council Agenda Template – During the Dec. 4 Committee on Citizen Engagement (COCE) meeting, the COCE reviewed two minor changes proposed to the City Council meeting agenda template with the requested goal to make it easier for residents and visitors to see and differentiate when the afternoon work session portion of the meeting begins and when the regular business meeting begins. The attached PDF shows proposed changes in yellow to 1) clearly state the start times at the top of the agenda (or state if the regular business meeting will follow at the conclusion of the work session) and 2) show better separation by bolding when the regular business meeting agenda begins in what is usually a multi-page agenda. The revised template is planned for use beginning for the January 8, 2019 City Council meeting, unless questions or concerns are received. Staff contact: Sarah Kuechler, Public Affairs C. US Radiopharmaceuticals – On July 16, 2018, a final order was issued by the Texas Department of State Health Services (DSHS) denying an application by US Radiopharmaceuticals (USR) for a radioactive material license. USR was ordered to begin decommissioning the facility including proper disposal of radioactive material currently at its facility. This week, on December 18, DSHS issued a notice of violation against USR for violating the terms of the order and not submitting the required decommissioning plan (see attached). An administrative penalty has been proposed of $10,000 per day up to $2.2M. The company will have an opportunity to comply, accept the proposed action, or contest the notice of violation through an informal conference or formal hearing. This will likely take some time to resolve; however, staff will continue to monitor and provide updates. Staff contact: Sarah Kuechler, Public Affairs D. Council Member Briggs Appointed to Serve on National League of Cities’ Committee – Council Member Briggs has been appointed to the National League of Cities (NLC) 2019 Energy, Environment, and Natural Resources (EENR) federal advocacy committee. This committee has the lead responsibility for developing NLC’s federal policy positions on issues involving air quality, water quality, energy policy, national wetlands policy, noise control, and solid and hazardous waste management. The appointment was announced by NLC president and Gary, Indiana mayor, Karen Freeman-Wilson. Please see the attached press release for additional details. Staff contact: Jessica Rogers, Public Affairs E. Update on Fine Arts Theatre – Asbestos abatement at the Fine Arts Theatre will begin the first week of January 2019, and the owners will move straight into the necessary demolition work after that. This phase of the project is expected to be complete between the end of February and mid-March. After that, the roof structure will be assessed to determine the best method of installing a new roof. Once that phase is complete, the architects and engineers will make a final pass through the building to determine if anything found behind the walls would cause changes in the current rehabilitation plans. At that time, the owners will be able to determine final costs. The owners still plan to apply for historic tax credits and have started that process. The owners stated they anticipate approaching the City in March regarding financial assistance to complete the rehabilitation. Note: removal of the theatre seats will begin this week. The architects have determined that they have no historic value. If community members are interested in the theatre seats, they can contact the owners at 940-891-2947. Staff contact: Caroline Booth, Economic Development F. Carl Young and Quakertown Park Restroom Project Timeline – Staff was asked to provide information on the bidding history for Carl Young Park and Quakertown Park restroom projects. The Carl Young Park restroom project has been advertised three times and the Quakertown Park restroom project has been advertised twice. Initial bids were rejected on both projects due to costs being higher than anticipated. Subsequent solicitations resulted in no bids; feedback provided from prospective bidders on the reason for not bidding included the limited availability of subcontractors and other staffing-related issues. Below are a few details related to the solicitation process for both projects: Carl Young Park Restroom Project 6/2/15 Approved for CDBG funds in the 2015 Action Plan – Resolution R2015-016 – Approved Budget $85,000 - Budget Transfer of $29,585 completed 4/30/18 for a total current budget of $114,585 IFB #6733 Construction of Carl Young Splash Park Restrooms 5/18/2018 Bid Request Issued 5/31/2018 Pre-bid meeting 6/7/2018 Due Date for Bids - Proposals rejected because of high pricing IFB #6875 Construction of Carl Young Park Restrooms 8/31/2018 Bid Request Issued 9/10/2018 Pre-Bid Meeting 10/2/2018 Due Date for Bids - No Bids IFB#6925 Construction of Carl Young Park Restrooms Project 10/31/2018 Bid Request Issued 11/12/2018 Pre-bid meeting 12/4/2018 Due Date for Bids - No Bids Quakertown Park Restroom Project 6/7/2016 Approved for CDBG funds in the 2015 Action Plan – Resolution R2016-013 – Approved Budget $152,000 IFB# 6819 Construction of Quakertown Park Restrooms 8/31/2018 Bid Request Issued 9/10/2018 Pre-Bid Meeting 10/2/2018 Due Date for Bids - No Bids IFB#6924 Construction of Quakertown Park Restrooms 10/31/2018 Bid Request Issued 11/12/2018 Pre-bid meeting 12/4/2018 Due Date for Bids - No Bids Staff from Parks and Recreation and Community Development met on Friday, Dec. 14 to discuss the best options to proceed. Staff determined that the best option is to bid the projects for prefabricated structures. Foundation design will be conducted by the selected firm, and foundation construction will be conducted either in-house or by a local contractor. Prefabricated restrooms provide a cost effective, durable option that can be fully operational shortly after delivery. The funding that is currently allocated for both projects is anticipated not to be sufficient to complete these improvements. Staff currently plans to use 915/916 funding to help offset any deficiencies. Staff is hoping to bid the prefabricated restrooms in January, present to City Council in February/March, and start construction in May. Parks and Recreation has ordered a temporary portable restroom for Quakertown Park, which is anticipated to arrive the last week of December. Staff contact: Drew Huffman, Parks and Recreation. G. Fire Department Recruitment Video – DTV teamed up with the Denton Fire Department to produce a new recruitment video that rolled out on Monday. An important mantra about Denton firefighters includes words like honor, dedication, and service. By watching the video, you’ll have a greater appreciation why dedicated Denton firefighters work so diligently to take care of our community - and each other. In the last 4 days the video has been viewed more than 1,300 times. To apply to become a firefighter, the next civil service examination is Jan. 12, 2019 and the deadline to register is Jan. 4, 2019. Video link: https://youtu.be/OgPZE5WMTcw. Staff contact: Billy Matthews, DTV. H. Emily Fowler Central Library Pet Tree – Give some comfort to those spending the holidays waiting for their forever home. Emily Fowler Central Library is accepting donated items for the City of Denton Animal Shelter now through Jan. 4. Citizens are being asked to help Santa by bringing gifts for local shelter animals at the Linda McNatt Animal Care and Adoption Center. Donated items can be left for the animals under the tree and they will be delivered to the shelter. To the right is a picture of the pet tree, which has been an annual tradition at the Emily Fowler Central Library for the last 9 years. Staff contact: Kimberly Wells, Library I. City Hall West Window Replacement Schedule – At the November 13, 2018, City Council Work Session, City Council directed staff to develop a plan to replace the windows at the City Hall West facility. Due to the historical significance of City Hall West, a proposal was solicited from the Architexas historic preservation architecture firm, who has the appropriate experience to assist the City in this effort. Architexas is also the firm that facilitated the City Hall West Steering Committee process. The fee proposal, after negotiations, is currently at $29,800. The construction budget for window replacement is approximately $320,000. The project timeline from design initiation to City acceptance is approximately ten months. Below is the estimated project timeline for window replacement at City Hall West.  Design Services: 8 weeks o Start Date: January 21 o End Date: March 28  Texas Historic Commission Review of Plans: 2 weeks o Start Date: March 29 o End Date: April 12  Construction Bid: 4 weeks o Start Date: May 7 o End Date: June 7  Bid Review: 2 weeks o Start Date: June 7 o End Date: June 21  Construction Period: 12 weeks (3 months) o Start Date: June 24 o End Date: September 24 City of Denton Acceptance: October 2019 Staff contact: Mario Canizares, CMO J. Stop Signs in the Villages of Carmel – Staff has received requests from several residents in the Villages of Carmel to have stop signs installed at Camino Real and Sea Cove Lane and Camino Real and Wharfside Place. Staff is going to conduct a traffic analysis along Camino Real once school is back in session and traffic patterns return to normal in January. Staff will provide an update on the potential installation of stop signs following the conclusion of their analysis along Camino Real. Staff contact: Pritam Deshmukh, Capital Projects K. New Development Tree Canopy Requirements – Mayor Watts requested information on tree canopy requirements for new developments in reference to the proposed dog park at North Lakes Park. The Denton Development Code (DDC) Subchapter 13.7.B requires all new developments to have a specified percentage of landscape area and tree canopy based on the zoning district. The planned dog park will be located in the Neighborhood Residential Mixed Use 12 zoning district, which requires 40 percent landscape area and 45 percent tree canopy cover (see DDC excerpt below). Current plans include the planting of 94 additional trees at the site at a cost of $37,600. Staff contact: Gary Packan and Haywood Morgan, Parks and Recreation Landscape and Tree Canopy Requirements Districts Percent Landscape area Percent Tree Canopy Cover Neighborhood Residential Neighborhood Residential 6 40% 50% Neighborhood Residential Mixed Use 12 40% 45% Neighborhood Residential Mixed Use 20% 40% L. City Hall Signs – At the December 11, 2018 City Council Meeting, Council Member Briggs requested that Staff look at options of replacing the wooden monument sign at City Hall. Facilities Management and Parks Staff are taking inventory of all parks and facility monument signs around the City. Once the inventory is completed, a series of design options will be completed to provide City Council with costs and a plan to replace the signs throughout the City. The inventory should be completed within three weeks after the start of the calendar year and then another four-six weeks to complete the design options. Staff contact: Gary Packan, Parks and Recreation/Dean Hartley, Facilities Management M. Safety Cat Condos for Barn/Feral Cats – Installation of new safety cat condos is nearing completion for barn and feral cats at the Linda McNatt Animal Care & Adoption Center. The barn/feral cat program is structured to remove feral cats from urban areas, have them sterilized, and relocate them to more functional environments such as barns to help address rodents and other small pests. The new safety condos will improve the safety of staff and volunteers interacting with the feral cats and enhance the experience for feral cats while they are at the shelter. Below is an image of the new safety condos. Staff contact: Tiffany Thomson, Customer Service N. Sponsorship Contract with the Denton County Livestock Association – On Tuesday, December 4, the City Council approved a sponsorship contract in the amount of $400 with the Denton County Livestock Association for their 2019 Public Speaking Contest. The City Council requested additional information regarding this event which staff is providing herein. The 2019 Public Speaking Contest is scheduled for March 24-30, 2019 and will be held at the North Texas State Fair Grounds in conjunction with the Denton County Youth Fair. Each contestant is required to pay a $5 entry fee and present a 3-7 minute speech on any topic using research and organizational skills to a panel of three judges. Judging for the event will be held on March 26 at 1:00 p.m. and awards will be presented following the event. The Association uses the proceeds of the entry fee to purchase ribbons, trophies or plaques given to contestants, provide water and snacks for judges and contestants, and to cover expenses for the use of the facility. Staff contact: Tony Puente, Finance III. Attachments A. Holiday Operating Hours Press Release B. Draft Agenda Template C. Council Member Briggs NLC Committee Press Release D. US Radiopharmaceuticals Notice of Violation IV. Informal Staff Reports A. 2018-187 Municipal IDs B. 2018-188 Plan for Dumpsters Obstructing Sidewalks C. 2018-189 Use of Utility Billing Information for Development Public Hearing Notifications D. 2018-190 Cole and Hunter Ranch Master-Planned Communities E. 2018-191 Townhome or Condominium Designation F. 2018-192 City of Dallas Welcoming City Information G. 2018-193 Surveillance Rating for Utility System Revenue Bonds H. 2018-194 Gas Well Setback Distance Study V. Council Information A. Council Meeting Requests for Information B. Other Council Requests for Information C. Council Calendar D. Future Work Session Items E. Street Construction Report FOR IMMEDIATE RELEASE Jessica Rogers  (940) 349-7531  Jessica.Rogers@cityofdenton.com OUR CORE VALUES Integrity  Fiscal Responsibility  Transparency  Outstanding Customer Service ADA/EOE/ADEA www.cityofdenton.com TDD (800) 735-2989 Holiday Operating Hours and Closings City offices closed Dec. 24-25 and Jan. 1 DENTON, TX, Dec. 18, 2018 - City of Denton administrative offices will be closed on Monday, Dec. 24 and Tuesday, Dec. 25 in observance of the Christmas federal holiday; and Tuesday, Jan. 1, 2019, in observance of New Year’s Day. Libraries All three library branches will be closed Sunday, Dec. 23 through Tuesday, Dec. 25 resuming regular business hours on Wednesday, Dec. 26. All branches will close Monday, Dec. 31 at 6 p.m. and will remain closed through Tuesday, Jan. 1. All branches will reopen on Wednesday, Jan. 2 and resume regular business hours. Parks and Recreation All Parks and Recreation facilities will be closed Monday, Dec. 24; Tuesday, Dec. 25; and Tuesday, Jan. 1. On Monday, Dec. 31, the American Legion Hall will close at 3 p.m. and all other Parks and Recreation facilities will close at 6 p.m. Public Safety Public safety personnel will be on duty throughout the holidays. The Denton Police Department can be reached at their non-emergency number, which is (940) 349-8181, and in case of an emergency, dial 911. Solid Waste and Recycling There will be no curbside collection on Tuesday, Dec. 25 or Tuesday, Jan. 1. Collection will be delayed one day during these weeks. The City of Denton Landfill at ECO-W.E.R.C.S will be closed on Tuesday, Dec. 25 and Tuesday, Jan. 1. Check www.dentonrecycles.com for current schedule information. Utilities Customer Service will be closed on Monday, Dec. 24; Tuesday, Dec. 25; and Tuesday, Jan. 1. To report a utility service emergency, call utilities dispatch at (940) 349-7000. 2 Airport Air traffic control tower services are not affected by the holiday and will remain open from 6 a.m. to 10 p.m. and the airfield will remain open 24 hours per day. Animal Services Animal Services will be closed on Monday, Dec. 24; Tuesday, Dec. 25; and Tuesday, Jan. 1. To report an animal non-emergency, call (940) 349-8181 and select option 8. On behalf of the City of Denton employees, have a safe and happy holiday. ### Visit www.cityofdenton.com for more news and to stay updated. City Council City of Denton Meeting Agenda City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Work Session Room & Council Chambers2:00 PMTuesday, March 5, 2019 WORK SESSION BEGINS AT 2:00 P.M. IN THE WORK SESSION ROOM REGULAR MEETING BEGINS AT 6:30 P.M. 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 Tuesday, March 5, 2019 at 2:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be given a total of three (3) minutes to address any items he/she wishes that are listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers this item. 2. Requests for clarification of agenda items listed on the agenda for 3. Work Session Reports Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. 1. Closed Meeting: Any final action, decision, or vote on a matter deliberated in a Closed Meeting will only be taken in an Open Meeting that is held in compliance with Texas Government Code, Chapter 551, except to the extent such final action, decision, or vote is taken in the Closed Meeting in accordance with the provisions of §551.086 of the Texas Government Code (the ‘Public Power Exception’). The City Council reserves the right to adjourn into a Closed Meeting or Executive Session as authorized by Tex. Gov’t. Code, §551.001, et seq. (The Texas Open Meetings Act) on any item on its open meeting agenda or to reconvene in a continuation of the Closed Meeting on the Closed Meeting items noted above, in accordance with the Texas Open Meetings Act, including, without limitation §551.071-551.086 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, 215 E. MCKINNEY STREET, DENTON, TEXAS, AT WHICH THE FOLLOWING ITEMS WILL BE CONSIDERED: 1. PLEDGE OF ALLEGIANCE Page 1 Printed on 12/18/2018 March 5, 2019City Council Meeting Agenda A. U.S. Flag B. Texas Flag “Honor the Texas Flag – I pledge allegiance to thee, Texas, one state under God, one and indivisible.” 2. PROCLAMATIONS/PRESENTATIONS 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. This section of the agenda permits any person who has registered in advance to make a citizen report regarding a public business item he or she wishes to be considered by the City Council. This is limited to no more than four (4) speakers per meeting with each speaker allowed a maximum of four (4) minutes to present their report. At the conclusion of each report, the City Council may pose questions to the speaker or may engage in discussion. If the City Council believes that a speaker's report requires a more detailed review, the City Council will give the City Manager or City Staff direction to place the item on a future work session or regular meeting agenda and advise staff as to the background materials to be desired at such meeting. C. Additional Citizen Reports - This section of the agenda permits any person not registered for a citizen report to make comments regarding public business on items not listed on the agenda. This is limited to two speakers per meeting with each speaker allowed a maximum of four (4) minutes. Such person(s) shall have filed a "Blue Card" requesting to speak during this period prior to the calling of this agenda item. NOTE: If audio/visual aids during presentations to Council are needed, they must be submitted to the City Secretary 24 hours prior to the meeting. 4. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A – _). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items A – _ below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. 5. ITEMS FOR INDIVIDUAL CONSIDERATION – CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS 6. ITEMS FOR INDIVIDUAL CONSIDERATION 7. PUBLIC HEARINGS 8. CONCLUDING ITEMS Page 2 Printed on 12/18/2018 March 5, 2019City Council Meeting Agenda 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. C E R T I F I C A T E I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the ________day of ___________________, 2018 at ________o'clock (a.m.) (p.m.) __________________________________________ CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM AND COUNCIL CHAMBERS ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY’S OFFICE. Page 3 Printed on 12/18/2018 FOR IMMEDIATE RELEASE Jessica Rogers  (940) 349-7531  Jessica.Rogers@cityofdenton.com OUR CORE VALUES Integrity  Fiscal Responsibility  Transparency  Outstanding Customer Service ADA/EOE/ADEA www.cityofdenton.com TDD (800) 735-2989 Council Member Briggs Appointed to Serve on National League of Cities’ Energy, Environment, and Natural Resources Committee DENTON, TX, Dec. 20, 2018 – Denton City Council Member Keely G. Briggs has been appointed to the National League of Cities (NLC) 2019 Energy, Environment, and Natural Resources (EENR) federal advocacy committee. This committee has the lead responsibility for developing NLC’s federal policy positions on issues involving air quality, water quality, energy policy, national wetlands policy, noise control, and solid and hazardous waste management. The appointment was announced by NLC president and Gary, Indiana mayor, Karen Freeman- Wilson. “I am thankful for the opportunity to continue to serve on the National League of Cities Energy, Environment, and Natural Resources Committee,” said Council Member Briggs. “Thanks to the continuing efforts of our citizens, staff, and City leadership, Denton is a recognized leader among cities across the United States. Serving on this team alongside representatives from other leading cities is an effort to ensure that national policies are informed by relevant and workable solutions that have been developed, implemented, and proven at the local level. Now more than ever, strong advocacy by local leaders is needed at the federal level in these key areas.” As a committee member, Briggs will play a key role in shaping NLC’s policy positions and advocate on behalf of America’s cities and towns before Congress, with the administration and at home. “Our federal advocacy committees help ensure that policymakers in Washington know what's happening on the ground in our communities – and what is needed from our federal partners,” said Karen Freeman-Wilson. “I am proud to have Council Member Briggs join NLC's Energy, Environment, and Natural Resources Committee on behalf of her residents. Together, with a team of local leaders from around the country, we will work to solve the most pressing challenges facing our communities.” The leadership of this year’s committee will consist of Chair Hattie Portis-Jones, Councilmember, Fairburn, Georgia; Vice Chair TJ Cawley, Mayor, Morrisville, North Carolina; and Vice Chair Gerry Horak, Mayor Pro Tem, Fort Collins, Colorado. For more information on NLC’s federal advocacy committees, visit: www.nlc.org/advocacy/committees. ### Visit www.cityofdenton.com for more news and to stay updated. Date: December 21, 2018 Report No. 2018-187 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide information on Municipal Identification (ID) programs. BACKGROUND: Research Some local governing bodies in other states have adopted Municipal Identification programs in an effort to promote safety within its communities. Under these programs, local governing bodies issue Municipal IDs to residents who are without the ability to obtain a state or federal issued identification card because they lack the required documentation necessary to obtain the card. The following is a list of some cities that have implemented Municipal ID programs:  Phoenix, AZ (ONE PHX ID, Proposed)  Los Angeles, CA (2012)  Richmond, CA (Municipal ID/Stored Value Card, 2011)  San Francisco, CA (SF City ID Card, 2007)  New Haven, CT (Elm City Resident Card, 2007)  Chicago, IL (CityKey, 2018)  Detroit, MI (Detroit ID, 2016)  Northfield, MN (City ID, 2017)  Hudson County, NJ (County Resident ID Card, )  Newark, NJ (Newark Municipal Id Program, 2015)  New York City, NY (IDNYC, 2015)  Washington, D.C. (2014) Municipal ID programs primarily benefit undocumented residents of a city, people experiencing homelessness or who are vulnerable, such as elderly and disabled persons, including those suffering from mentally illnesses, victims of domestic violence, and persons previously incarcerated. These individuals tend to lack the ability to produce the required documents that federal or state agencies require for the issuance of state IDs or social security cards, or to obtain certain governmental services. People experiencing homelessness lack the ability to produce required documentation often times due to not having a stable place to store the documents that federal and state agencies require. That results in a loss of personal belongings or theft. Local planning committees, such as the 2015 Mayor’s Housing the Homeless Task Force and the current Shelter Planning Workgroup of the Denton County Homeless Leadership Team, have identified programs that could benefit individuals experiencing homelessness such as a document banking solution and/or providing additional social service support to help individuals obtain new identification. More information on current local social service support provided for individuals to obtain state & federal identification is discussed in the last section of this report. Date: December 21, 2018 Report No. 2018-187 The Municipal IDs serve as proof of identity or residency for such persons as described above, which enable them to access local services (e.g. bank services, food, housing, jobs, etc.). However, in most cases, Municipal IDs do not substitute for a federal or state issued ID where required by a federal or state governmental agency (e.g. a state issued ID is necessary to board an airplane, vote, license a firearm purchase cigarettes/alcohol or to obtain a passport). The Municipal ID program in some cities like Chicago is designed in a multipurpose manner to benefit all residents. The Municipal ID allows the cardholder to have the benefit of access to multiple services in one card. In other words, the card becomes not only a photo id, but also library card, a pass to use mass transit, and a discount card to encourage consumer buying for economic development, for the cardholder. In some cities the card is also a pre-paid debit card and/or provides important medical identification or other emergency information supporting a resident’s personal health as well as a city’s public safety services. Other cities have partnered the implementation of municipal identification programs with banking institutions to incorporate supportive programs aimed at improving banking services as a valuable tool to combat those who take advantage of a city’s most vulnerable residents through predatory lending practices or those targeted for theft because they must store cash either at home or on their person. Oakland, CA, Fairhaven CT, and Richmond, VA municipal ID programs include a debit card option. The City of San Francisco teamed up with a number of credit unions to provide services to those that lacked bank accounts. State of Texas Staff could not ascertain any municipal ID programs currently being implemented in the state of Texas. There is some indication that current state-wide legislative actions like SB 4 (May 7, 2017) to reduce local authority in actions taken by cities related to immigration or sanctuary cities. There may be potential legal hurdles and costs upon implementing a Municipal ID program. Some cities like San Francisco have been sued for its implementation of a Municipal ID program. The lawsuit in that city stemmed from the premise that the Municipal ID program violated federal immigration laws and policies. Also, there could be some privacy concerns depending on how the program is set up. City of Denton The City of Denton Library Services offers alternatives to state is sued ID that allows access to most library services e.g. access the facility, read materials, use Wi-Fi, obtain technology cards, except the person will not be provided a Full Service Library Card, which would allow access to library computers, online databases and online learning resources, and allows check out of downloadable and physical materials. Parks and Recreation asks for state issued ID when creating an account, but not having a state issued ID does not prevent the person from opening an account and utilizing Parks and Recreation services. Customer Service requires state issued ID to obtain Utility Services. Date: December 21, 2018 Report No. 2018-187 Other Organizations Located in Denton In a quick survey of local social service agencies, there are agencies providing assistance to individuals to apply for state & federal identification ranging from support with fees for replacements to securing vital documents. Denton County Friends of the Family, Denton County MHMR, Interfaith Ministries, Vision Ministries, and Giving Hope, Inc. are a few who responded confirming they offer assistance to individuals to obtain a state or federal government issued identification (e.g. state issued ID, social security card, etc.). Agencies help clients fill out and submit or print forms for government issued photo IDs and pay necessary fees. A number of other agencies responded that they do not offer assistance to clients who are unable to present government issued identification, but they refer those clients to Our Daily Bread and Vision Ministries, nonprofit agencies in Denton that provide nutritious meals, hygiene supplies, clothing, and other resources for persons who are homeless and facilitate referrals. In addition, Our Daily Bread provides assistance with obtaining state issued identification, and it also issues a photo identification card to clients that are accepted by other service providers like Monsignor King Outreach Center and The Salvation Army Denton for access to emergency shelter services and Denton Community Food Center for access to the food pantry. ATTACHMENT(S): N/A STAFF CONTACT: Dani Shaw Community Development Manager danielle.shaw@cityofdenton.com (940) 349-7237 Sarah Kuechler Director of Public Affairs sarah.kuechler@cityofdenton.com (940) 349-8356 Date: December 21, 2018 Report No. 2018-188 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide an overview of the Solid Waste Department’s plans to address dumpsters located on sidewalks. BACKGROUND & DISCUSSION: Council Members Armintor and Briggs recently contacted staff regarding compromised sidewalk accessibility due to the placement of solid waste and recycling dumpsters. Solid Waste staff are aware of approximately 31 dumpsters in the city that are obstructing some portion of a public sidewalk. For several years, staff has attempted to address these issues by requesting property owners to voluntarily move their dumpsters or change to an alternative form of solid waste service such as cart collection. This effort has been met with mixed results, and staff was asked to consider mandatory compliance. Without considering other agreements and allowances that may be in place for specific locations, Section 24-68 of the Code of Ordinances permits the director of Solid Waste to locate and place containers in accordance with the waste storage needs of individual commercial, industrial and institutional facilities. In order to address dumpsters blocking access to sidewalks, Solid Waste staff intends to contact the customers associated with these dumpsters and request compliance. Because collection frequency and property characteristics vary, Solid Waste staff will tailor the solutions offered to each customer in order to meet their property’s unique needs. In the event a customer does not wish to comply, staff intends to provide the customer with notice that they have thirty (30) days to comply and implement one of the proposed solutions. Unless directed otherwise, staff intends to initiate this process on January 2, 2019. Staff anticipates the effort will take between 60 and 90 days to complete. Please feel free to contact me if you have additional questions or concerns. STAFF CONTACT(S): Ethan Cox Director of Solid Waste (940) 349-7421 Ethan.Cox@cityofdenton.com Date: December 21, 2018 Report No. 2018-189 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Utilization of utility billing information for development related public hearing notifications. EXECUTIVE SUMMARY: Staff could begin utilizing utility billing information for the 500-foot courtesy notifications for development related public hearings. The major differentiation between current practice and the utilization of utility account information is the notification to individual tenants in multifamily residents who are currently not reached in the notification process. Changes to the notification procedures could result in an increased cost to applicants for the additional notifications. Based on an analysis of four recent developments, the increased cost would be dependent on the number of multifamily dwelling units within the 500-foot radius could be up to or in excess of $500. BACKGROUND: City Council requested information on November 13, 2018 regarding the utilization of utility billing information in the notification to residents of upcoming development related public hearings. Notifications are currently sent for upcoming hearings on zoning changes, specific use permits, planned developments, applications for historic landmark designation, and the creation or alteration of historic districts. The City sends notifications to property owners within 200 feet of the subject property as a requirement of the of Local Government Code Chapter 211.007 and include the notice in the Denton Record Chronicle. Also, based on direction received from City Council on April 25, 2017, staff began sending postcards notifications to addresses within 500 feet. Generally, single family residents receiving the 500-foot notice are also the individual listed in the utility billing system so there would not be a change in practice for these notifications. Since postcards are only mailed to addresses, individual units in multifamily residences are not currently receiving notifications. Utilizing the utility billing information for notifications would allow notices to be sent to individual units within a multifamily complex. Staff has analyzed four recent zoning cases to determine the effect that noticing based on utility billing information would have with data included in Table 1 below: Case Number Notifications Utility Billing Notifications Cost Increase Z18-0024 31 31 - Z18-0017 99 99 - Z18-0006 71 201 $85 Z17-0003 26 760 $477 Table 1. Recent zoning cases notification based on address versus utility billing In both instances of cases with notifications sent to mostly single-family areas, there would be no increases in the number of notifications sent with a change in procedure to utilize utility billing information. Cases Z18-0006 and Z17-0003 both are in proximity to multifamily residences and the increased notifications counts represent the mailings to individual units. All notification fees Date: December 21, 2018 Report No. 2018-189 including public hearing notices, mailing courtesy postcard notices, and publication of legal notices in the newspaper are paid by the applicant, so any increases in the costs would be passed through to the applicant to be paid prior to the public hearing. If direction were given to implement the utility billing notification practice, Development Services and Customer Service staff would collaborate to develop a process to efficiently gather billing information for affected residents on cases coming before Planning and Zoning Commission and City Council. It should be noted that all customers with utility billing accounts within the 500-foot may not receive a notice. State law provides utility customers of government-owned utilities have the right to keep their personal information confidential should they complete and return the required form to the utility. DISCLAIMER FROM LEGAL REGARDING NOTICE: State law only requires that we send notice to the “owners” of property within 200 feet a notice of a proposed change in zoning classification. TLGC, Sec. 211.007(c). Only the “owners” of property are eligible to be counted in connection with a protest petition to determine whether the requisite 20% is met to require a supermajority vote. TLGC, Sec. 211.006(d). DDC, Sec. 35.3.4 is consistent with state law. While the City can certainly provide greater notice, in this case to non-property owners (i.e., renters) and to properties beyond 200 feet, these individuals’ protests are not counted towards the 20% protest petition calculation per state law or the DDC. This topic will be included in a future Work Session strategy session with City Council if further policy discussion or research is requested. ATTACHMENT: 1. Memo regarding public hearing notification practices STAFF CONTACT: Scott McDonald Director of Development Services 940-349-8539 Scott.McDonald@cityofdenton.com Department of Development Services  Planning Division 215 W. Hickory St., Denton, TX 76201  (940) 349-8541 OUR CORE VALUES Integrity  Fiscal Responsibility  Transparency  Outstanding Customer Service MEMORANDUM DATE: November 29, 2017 TO: Planning and Zoning Commission FROM: Richard Cannone, Interim Planning Director SUBJECT: Public Hearing Notification Practices This memo is a follow up on information recently provided to the Planning and Zoning Commission regarding implemented public hearing notification practices. Following receiving input from the Planning and Zoning Commission, the Planning Division staff presented recommendations to the City Council on April 25, 2017. As a result the City Council directed staff to implement the following items: 1. Mail out public hearing notices (8½” x 11” full color) to property owners within a 200-foot radius of the subject property via regular mail and certified mail. 2. Mail out courtesy postcards notices (4” x 6” full color) to residents within 500-foot radius of the subject property via regular mail. 3. Post a public hearing notice on the city’s webpage “Notices.” 4. Enlarge the public hearing sign dimension to 4’ x 3.5’ and require the applicant to post the sign on the subject property. The sign shall include contact information and a shortened website URL for more information. 5. Implement an electronic notification system where all city notifications are centralized in a prominent location on the city’s website, and users can subscribe to email notifications when a notice is posted. 6. Revise the notification fee so that all notifications (public hearing notice, courtesy notice, and newspaper publication) will be paid by the applicant based on the actual costs. 7. Standardize notification procedures for public hearings, neighborhood or stakeholder meetings, construction notices, and other informational notices. Practices currently vary by department, and staff is working to standardize notification methods based on activity, rather than the initiating department. Starting June this year, the Planning Division implemented items 1 through 5. The revision to the notification fee described in item 6 was presented to City Council on September 19, 2017. At that meeting the City Council approved an ordinance amending the schedule of fees by amending the public hearing notification fee. Effective October 1, 2017, all projects submitted 2 that require a public hearing notification (public hearing notice, courtesy notice, and newspaper publication) applicant are required to pay notification fees based on the actual costs. In addition, effective October 1, 2017, the applicants are now required to purchase and post signs on the subject property. Applicants were notified in advance of the new notification requirements through a marketing program. Announcements of these changes were and continue to be made verbally to applicants during their Pre-Development Meeting, with their first review comments, posted throughout the Development Services building, and posted online. It is also important to note that all newspaper notices now include the applicant’s contact information and a map of the subject site. Item 7 is ongoing, all departments are working to standardize their notification methods. Please contact Ron Menguita at (940) 349-8328 if you have any questions or require additional information. Date: December 21, 2018 Report No. 2018-190 1 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Cole Ranch and Hunter Ranch master-planned communities in southwest Denton EXECUTIVE SUMMARY: In October 2018, representatives from Cole Ranch and Hunter Ranch contacted City staff to discuss a coordinated 6,500-acre master-planned development. Both Cole and Hunter Ranches are located within the city limits and are designated as Master Planned Community Districts under the Denton Development Code. A project of this size and scale requires significant public infrastructure such as water, wastewater, drainage, and road facilities, which would be paid for up front by the developers. The developers have asked the City of Denton to consider the establishment of a special district – either a municipal management district (MMD) or a Public Improvement District (PID) – to enable them to recapture a portion of the cost of construction of the public infrastructure. BACKGROUND: History and New Proposed Project Coordination Cole Ranch is an approximately 3,400 acre property located west of I-35 West and in the path of the southernmost portion of future Loop 288. The City of Denton annexed Cole Ranch in 2006, and it was classified as the Cole Ranch Master Planned Community district in 2008 (Ordinance 2008-030). Cole Ranch is represented by Stratford Land. Hunter Ranch is an approximately 3,100 acre property located directly south of Cole Ranch and east of Robson Ranch with acreage on both the west and east sides of I-35 West. The City of Denton annexed Hunter Ranch in 2001. Hunter Ranch received a Master Planned Community district classification from the City of Denton in 2008. (Ordinance 2008-286). Hunter Ranch is represented by Hillwood Communities. Under the Denton Development Code, the Master Planned Community (MPC) District is “intended to accommodate large-scale, unified, comprehensively planned development that conforms with and enhances the goals and policies contained within The Denton Plan. This district is intended to provide an alternative zoning district and development process to accommodate substantial development for residential, commercial, professional, recreational, industrial or other activities, including combinations of uses appropriately requiring flexibility under controlled condition not otherwise attainable under conventi onal zoning districts.” Each MPC application must contain the following: Date: December 21, 2018 Report No. 2018-190 2  A conceptual/schematic plan designed to aid in the preparation of the MPC zoning document and development standards document;  A zoning document which establishes standards for the MPC and addresses land uses, densities, setbacks, building heights, lot coverage, and a development plan map;  A development standards document setting forth a detailed set of standards and confirming compliance with the Denton Development Code Subchapters 13-22 and/or identifying the alternative development standards associated with the content of each of those subchapters. Standards include items such as maximum gross density, minimum lot area, maximum building height, design standards, building materials, etc.) In October 2018, representatives from Cole Ranch and Hunter Ranch contacted City staff to discuss their new approach of a coordinated master-planned development versus the prior approach of the two developing independently. The developers believe this approach will capture efficiencies in planning, design, and construction as well as result in cohesion between the two properties. The following is a summary of the project basics:  Approximately 6,500 acres total  Estimated $982 million in total project costs for infrastructure and amenities  Estimated 40-year buildout  15,717 single family units  5,090 multi-family units  424 commercial acres  101 industrial acres Although initial development plans were completed for both Cole Ranch and Hunter Ranch as part of their MPC processes, the developers are now working on a new shared vision for the coordinated project. Assuming Council supports the developers’ request for a special district, which is critical to facilitating the necessary public infrastructure, their goal is to create a new master plan by summer 2019. The developers provided City staff the following broad outlines for the revised master plan:  Community character and amenities that will be developed with stakeholder input and will be unique to Denton  Large natural open spaces with hike/bike trail connectivity  Diverse neighborhoods with a range of high-quality housing types and prices  Activity-focused programming that brings residents together  4 elementary schools, one middle school and one high school  Retail centers City staff, bond counsel, and financial advisors have held eight meetings to date with the developers to gather information needed to assess the fiscal and service provision impacts of the Date: December 21, 2018 Report No. 2018-190 3 proposed development and to make certain the City’s interests would be protected. All discussions have been fact finding to ensure that staff has a thorough understanding of the following before the City Manager agreed to bring this request to Council: the project’s financing plan; how current and future residents will be protected; how to ensure the City’s bond indebtedness is not affected; providing for adequate water and wastewater capacity; and ensuring the project is synched up with future I-35 West and Loop 288 improvements and other regional road plans. Developer Request for a Special District A project of this size and scale requires significant public infrastructure such as water, wastewater, drainage, and road facilities. The developers have asked the City of Denton to consider the establishment of a special district – either a municipal management district (MMD) or a Public Improvement District (PID) – to enable the developer to recapture a portion of the cost of construction of the required public infrastructure. Under either an MMD or a PID, the developers will front the cost for the public infrastructure improvements and would be reimbursed by the special districts. Of the estimated development costs of $982 million, $485 million would be eligible for reimbursement. An MMD must be created through the Texas Legislature, which is convening in January 2019. The Representative and Senator serving Denton will not carry and submit the MMD creation bill without the approval of the City in the form of a Council resolution. If the MMD legislation passes the Legislature and the City ultimately does not give written consent to the MMD, the MMD could not activate. Stated another way, the MMD legislation would be non-binding and gives the City the option, but not the obligation, to create an MMD. Should the legislation be passed, staff estimates a several-month process to work through a number of development- related issues prior to bringing an MMD ordinance forward for Council consideration. The MMD legislation is time-sensitive since the next opportunity to bring it forward would be in the 2021 Legislative session. Municipal Management District vs. Public Improvement District Under both the MMD and PID options, existing City residents do not pay for the new infrastructure: the cost is borne only by those specifically benefitting from using the new infrastructure. For both types of districts, the City must approve the plans and specifications for all public infrastructure prior to starting construction. One important consideration of which special district to use is what entity issues the debt to pay for the new public infrastructure and carries the obligation on its books. The City does not issue the MMD debt, whereas the City issues bonds for the PID debt. Below is a comparison of debt for each type of district: Date: December 21, 2018 Report No. 2018-190 4 Municipal Management District Public Improvement District MMD issues the bonds and the debt City issues the bonds and the debt Debt for water, sanitary sewer and drainage facilities must be approved by the Texas Commission on Environmental Quality City Council issues debt; Texas Commission on Environmental Quality does not approve debt Debt cannot be issued until assessed value is increased per the Denton County Appraisal District (DCAD) at a 10:1 value-to-lien ratio* Debt may be issued to finance public infrastructure without the guaranteed value to support the debt; City’s PID policy calls for a 3:1 value-to-lien ratio* Debt “stands alone.” Issued by District per parameters set by City Debt is issued by City from “special revenue” source, being assessments levied by District District is a separate political subdivision, therefore, no City credit is used or affected District is a zone or area within the City, therefore, City credit could be impacted if assessments do not meet projections New public infrastructure cost paid from tax bonds, which generally result in lower interest rates New public infrastructure cost paid from assessment bonds, which generally result in higher interest rates. Assessments have a second priority lien to taxes. Generally there are financial market-driven reserve requirements Board levies annual tax Council will set or approve annual assessments. Usually, supplemental assessments are needed over large master planned communities, as a first-time PID assessment is usually not financially correct. DCAD separately lists out MMD taxes, very transparent PID assessments are not separately listed out on DCAD websites since they are not a tax, rather they are commingled with City debt obligations which artificially inflates the City’s debt position Taxes tend to reduce as debt pays off and value increases Assessments are fixed at time of imposition for their duration Must file annual audit prepared by independent 3rd party auditor Audit of expenditures is part of the City audit *Value-to-lien ratio is appraised value to bond size; or, the assessed property value must be at least ten times the principal amount of the bonds sold under an MMD or at least three times the principal amount of the bonds sold under Denton’s PID policy Another difference between the two districts is control. PIDs are solely managed by the City Council; MMDs are managed by a separate elected Board of Directors. Five directors would manage the MMD and are elected by voters inside the district. Through the Development Agreement, the City and developers can agree for initial board members to be appointed by the City. In a PID, the Council either appoints the PID Board or the City Council serves as the Board. Generally, it is harder to separate PID operational and financial issues from City issues, which can lead to Councilmembers dealing with complaints directly as opposed to referring to the Board of the separate MMD. Date: December 21, 2018 Report No. 2018-190 5 The City would control every aspect of a PID, but the City also can exercise control over an MMD and remain “arm’s length” for fiscal responsibility. For example, the legislation could be drafted so that:  The City must approve all plans and specifications for public infrastructure.  The City can impose specific limitations on district bond issues: o Limit the term of each bond issue to no longer than 30 years o Require a Development Agreement with the developers o Limit sale of bonds to only finance water, sanitary sewer, drainage and road infrastructure o Require that construction of public infrastructure not commence until all plans are approved by City o Require that district will not allow construction that would result in water or wastewater flows that exceed permitted limits o Require bond applications to be filed with the City at the same time they are filed with the Texas Commission on Environmental Quality and files copy of the Preliminary and Final Official Statements with the City o File annual audit with the City o District cannot annex property into its boundaries without prior City consent o District shall permit City to make inspections of its books and records during regular business hours. CONCLUSION: If Council is interested in supporting the developers’ request for legislation to create the MMD, staff would bring back a supporting resolution for consideration in early February. There will be a work session on this topic on January 15, but if any Councilmember desires a briefing prior to that date, Caroline Booth can coordinate that request. Next Steps  Council work session on January 15 regarding the project  Drafting of a term sheet outlining the City’s requirements of the developers.  After the term sheet is agreed to, the developer would sign an escrow agreement to fund an in-depth review of the fiscal and legal impacts by the City’s consultants.  Work session with Council on draft MMD legislation and a resolution of support.  Individual consideration of resolution of support. ATTACHMENT(S): Exhibit 1 – Cole Ranch/Hunter Ranch Map Exhibit 2 – Cole/Hunter Ranch Development Projections Date: December 21, 2018 Report No. 2018-190 6 Exhibit 3 – Developer presentation excerpt STAFF CONTACT: Caroline Booth Director of Economic Development (940) 349-7751 Caroline.Booth@cityofdenton.com Development Assumptions •Residential: average home price of $350,000 before inflation; •Commercial: an average value of approximately $1,433,243 per acre after vertical construction before inflation; •Industrial: an average value of approximately $862,488 per acre after vertical construction before inflation; and •Multifamily: a weighted average value per unit of approximately $80,570 before inflation; No Inflation on Property Values | 1 Collection Year Tax Year Single Family Lots Constructed Single Family Homes Constructed Commercial Acres Industrial Acres Multi-Family Units Combined Residential Value Combined Commercial Value Combined Total Projected Value 2023 2022 1,000,000$ -$ 1,000,000$ 2024 2023 400 - - - - 28,000,000$ -$ 28,000,000$ 2025 2024 800 400 - - - 168,000,000$ -$ 168,000,000$ 2026 2025 1,300 800 - - - 315,000,000$ -$ 315,000,000$ 2027 2026 1,800 1,300 - - - 490,000,000$ -$ 490,000,000$ 2028 2027 2,400 1,800 - - - 672,000,000$ -$ 672,000,000$ 2029 2028 3,000 2,400 - - 288 882,000,000$ 25,920,000$ 907,920,000$ 2030 2029 3,600 3,000 - - 288 1,092,000,000$ 25,920,000$ 1,117,920,000$ 2031 2030 4,200 3,600 25 - 976 1,302,000,000$ 119,340,000$ 1,421,340,000$ 2032 2031 4,800 4,200 25 - 976 1,512,000,000$ 119,340,000$ 1,631,340,000$ 2033 2032 5,400 4,800 55 - 1,484 1,722,000,000$ 199,935,034$ 1,921,935,034$ 2034 2033 6,000 5,400 99 - 1,484 1,932,000,000$ 263,322,556$ 2,195,322,556$ 2035 2034 6,600 6,000 99 - 1,884 2,142,000,000$ 293,322,556$ 2,435,322,556$ 2036 2035 7,200 6,600 153 - 1,974 2,352,000,000$ 378,435,090$ 2,730,435,090$ 2037 2036 7,800 7,200 165 - 2,626 2,562,000,000$ 447,465,103$ 3,009,465,103$ 2038 2037 8,400 7,800 190 - 2,626 2,772,000,000$ 481,527,632$ 3,253,527,632$ 2039 2038 9,000 8,400 215 - 3,278 2,982,000,000$ 571,707,632$ 3,553,707,632$ 2040 2039 9,600 9,000 215 - 3,278 3,192,000,000$ 571,707,632$ 3,763,707,632$ 2041 2040 10,200 9,600 240 38 3,786 3,402,000,000$ 681,732,258$ 4,083,732,258$ 2042 2041 10,800 10,200 278 38 3,786 3,612,000,000$ 733,507,301$ 4,345,507,301$ 2043 2042 11,400 10,800 297 38 4,438 3,822,000,000$ 812,074,823$ 4,634,074,823$ 2044 2043 12,000 11,400 348 101 4,438 4,032,000,000$ 939,386,485$ 4,971,386,485$ 2045 2044 12,600 12,000 348 101 5,090 4,242,000,000$ 992,066,485$ 5,234,066,485$ 2046 2045 13,200 12,600 379 101 5,090 4,452,000,000$ 1,037,741,492$ 5,489,741,492$ 2047 2046 13,800 13,200 379 101 5,090 4,662,000,000$ 1,037,741,492$ 5,699,741,492$ 2048 2047 14,400 13,800 379 101 5,090 4,872,000,000$ 1,037,741,492$ 5,909,741,492$ 2049 2048 14,700 14,400 404 101 5,090 5,061,000,000$ 1,075,241,492$ 6,136,241,492$ 2050 2049 15,000 14,700 404 101 5,090 5,166,000,000$ 1,075,241,492$ 6,241,241,492$ 2051 2050 15,300 15,000 424 101 5,090 5,271,000,000$ 1,105,241,492$ 6,376,241,492$ 2052 2051 15,600 15,300 424 101 5,090 5,376,000,000$ 1,105,241,492$ 6,481,241,492$ 2053 2052 15,717 15,600 424 101 5,090 5,468,190,000$ 1,105,241,492$ 6,573,431,492$ 2054 2053 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ 2055 2054 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ 2056 2055 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ 2057 2056 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ 2058 2057 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ 2059 2058 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ 2060 2059 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ 2061 2060 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ 2062 2061 15,717 15,717 424 101 5,090 5,500,950,000$ 1,105,241,492$ 6,606,191,492$ Combined Cole & Hunter Ranches Cole / Hunter Ranch Presentation for the City of Denton 12.5.18 Regional Context 3Cole / Hunter Ranch Local Context 6Cole / Hunter Ranch Drone Imagery 8Cole / Hunter Ranch The Vision Cole / Hunter Ranch Open Space and Trails 12Cole / Hunter Ranch Preliminary Development Plan 11Cole / Hunter Ranch 13Cole / Hunter Ranch Character Vision Cole / Hunter Ranch Aspirational Comps Cole / Hunter Ranch Cole / Hunter Ranch 15 Cole / Hunter Ranch 16 Cole / Hunter Ranch 17 Cole / Hunter Ranch 18 Date: December 21, 2018 Report No. 2018-191 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Separate use designation for Townhome or Condominium in the Denton Development Code (DDC) Executive Summary: Staff is recommending as part of the DDC Update to include Townhome as a separate use with separate development standards. Staff does not recommend creating a separate condominium use because condominiums are technically a form of ownership and could be a number of different uses (i.e. commercial, industrial, residential). BACKGROUND: Council requested that staff provide a report on having a separate use designation for Townhome and Condominium in the Denton Development Code (DDC). This question was raised as a result of a project that was considered to be “Multi-Family Dwelling” as opposed to meeting the definition of “Attached Single-Family Dwelling (aka Townhomes).” Condominium, Attached Single-Family and Multi-Family (DDC) The DDC defines “Condominium” as: A type of ownership of attached or detached dwelling units, offices, or other space within a structure, as defined by the provision of Title 7, Chapter 82 Uniform Condominium Act of the Texas Property Code in which each unit is independently owned and financed by the occupant but in which all lands are commonly owned. The DDC defines an “Attached Single-Family Dwelling (aka Townhomes)” as: A structure containing at least three (3), but not more than eight (8) attached dwellings, and complies with the following: 1. Has individual front and rear access on the ground floor of each dwelling; 2. Each dwelling shall be separated by fire-rated walls; 3. Each dwelling shall be serviced by an individual meter for each utilities; 4. Each dwelling shall have direct access to a street or alley; and 5. Each dwelling shall be located on its own individual platted lot and each lot must have frontage on a public or private street. The DDC defines a “Multi-Family Dwelling” as: A structure that contains three (3) or more dwellings and any ancillary uses. Date: December 21, 2018 Report No. 2018-191 Condominium A condominium is a form of ownership and could be a number of different uses. The Texas Property Code, Chapter 82. Uniform Condominium Act applies to “all commercial, industrial, residential, and other types of condominiums which the declaration is recorded on or after January 1, 1994”. The declaration is a recorded document governing the establishment, maintenance, or operation of a condominium regime. The term includes a declaration or similar instrument subjecting real property to: (A) Restrictive covenants, bylaws, or similar instruments governing the administration or operation of a unit owners' association; (B) Properly adopted rules and regulations of the unit owners' association; or (C) All lawful amendments to the covenants, bylaws, instruments, rules, or regulations. By definition, the Texas Uniform Condominium Act defines a condominiums as: A form of real property with portions of the real property designated for separate ownership or occupancy, and the remainder of the real property designated for common ownership or occupancy solely by the owners of those portions. Real property is a condominium only if one or more of the common elements are directly owned in undivided interests by the unit owners. Real property is not a condominium if all of the common elements are owned by a legal entity separate from the unit owners, such as a corporation, even if the separate legal entity is owned by the unit owners. Generally speaking, a condominium development is governed by a Condominium Association (CA). Condominium owners own their individual units and have joint ownership in the building and grounds with other units. CA fees not only cover common areas but the fees also cover building repairs and maintenance. Townhouse As noted above, a townhouse is considered an “attached single family dwelling” and typically is permitted in many of the residential zoning districts with the exception of more rural type designations. The main difference of the townhouse is the requirement to be on an individually platted lot. Many times townhouse developments are governed by a homeowners association (HOA). Generally speaking, HOA’s are used for homeowners who own their lots and homes. An HOA governs and manages regulations for a residential community. It also manages and maintains Date: December 21, 2018 Report No. 2018-191 common areas such as pools and playgrounds. Membership may be required, depending upon the location. Homeowners follow regulations ranging from lawn upkeep to outdoor decorations. CONSIDERATION: Section 82.007 of the Texas Property Code, entitled, “Applicability of Local Ordinances, Regulations, and Building Codes” sets forth the following: A zoning, subdivision, building code, or other real property use law, ordinance, or regulation may not prohibit the condominium form of ownership or impose any requirement on a condominium that it would not impose on a physically identical development under a different form of ownership. Otherwise, this chapter does not invalidate or modify any provision of any zoning, subdivision, building code, or other real property use law, ordinance, or regulation. Given that a condominium is a form of ownership and can include a number of uses, (i.e. High- Rise Residential, Residential Villas, Business Park, or Industrial Park) and the limitations set forth above (Section 82.007, TPC), staff would not recommend adding regulations regarding a condominium development other than a maintaining the current as provided above. Currently, Detached and Attached Single-Family follow the same standards. What staff is recommending, and will be included in the draft update of the DDC is changing “Attached Single-Family” to “Townhome” and providing specific development standards for Townhomes. The final draft of these standards will be presented to the Development Code Review Committee, at public workshops, with the Planning and Zoning Commission, and ultimately to City Council for consideration and adoption. STAFF CONTACT: Richard Cannone, AICP Deputy Director/Planning Director Richard.cannone@cityofdenton.com 940-349-8507 Date: December 21, 2018 Report No. 2018-192 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide background information about the recent resolution passed by the City of Dallas to adopt the Welcoming Dallas Strategic Plan. BACKGROUND: Council Member Armintor requested information regarding a recent resolution passed by the City of Dallas on October 24, 2018 that establishes Dallas as a Welcoming City and formally adopts the Welcoming Dallas Strategic Plan (Attachment 1). Dallas is currently pursuing a “Welcoming City” certification designated by Welcoming America, a national certifying non-profit organization. There are currently three certified Welcoming Cities nationwide:  Dayton, Ohio  Louisville, Kentucky  Salt Lake City, Utah The Dallas Office of Welcoming Communities and Immigrant Affairs was established in March 2017 to promote the successful inclusion of immigrants into the social and economic culture of the Dallas community. To support this effort, Dallas budgeted $428,845 in the first year (FY 2017- 18), increased the budget to $623,124 this year (FY 2018-19), and currently projects a budget of $635,827 for FY 2019-20. The office includes full-time employees to execute the operation of the office. Through this office, a Welcoming Plan Task Force, consisting of 85 community members including immigrants and refugees, was created to develop the Welcoming Dallas Strategic Plan. The office appointed community leaders across a wide spectrum of backgrounds to the taskforce. The 44-page “Welcoming Plan” includes data and performance targets through the year 2021 for civic, economic, linguistic, and social integration and inclusion for immigrants and refugees residing in Dallas. The plan was written by the City of Dallas’ Office of Welcoming Communities with research and technical assistance provided through the New American Economy and Welcoming America organizations. The Welcoming Plan outlines five overarching goals and 26 recommended strategies to achieve those goals. Plan goals include:  Leadership and Communications: Local government is committed to being inclusive and welcoming, and plays a central role in building local capacity while advancing inclusion of diverse communities within its own agencies and bodies.  Safe, Healthy, and Connected Communities: Welcoming communities build relationships among diverse communities, including newcomers and longer-term residents. Date: December 21, 2018 Report No. 2018-192 They also foster trust and build relationships between diverse communities and local law enforcement and safety agencies.  Equitable Access: Welcoming communities reduce barriers to services and participation so that opportunities in the community are available to all residents.  Civic Engagement: Welcoming communities actively ensure that diverse populations fully participate in civic life, including increasing access to leadership, citizenship and community participation.  Economic Opportunity and Education: Welcoming communities harness the full potential of all their residents. Everyone has the skills and assets to thrive, and economic development systems are prepared to leverage new and existing talent. Welcoming communities also ensure everyone has the education needed to succeed in school and the workforce. ATTACHMENTS: 1. Welcoming Dallas Strategic Plan STAFF CONTACT: Stuart Birdseye Management Analyst (940) 349-8009 Stuart.birdseye@cityofdenton.com | 1 PLAN FOR CIVIC, ECONOMIC, LINGUISTIC AND SOCIAL INTEGRATION & INCLUSION 2018-2021 WELCOMING DALLAS STRATEGIC PLAN 2 | Dear Friends, Colleagues and Neighbors: As Mayor, I am pleased to support Dallas’ efforts to become a welcoming, inclusive city for all its residents, whether they were born in Texas, another state, or a distant country. Our diversity is a true asset. Research shows that immigrants are a major part of our growing economy. They account for more than 40 percent of Dallas’ overall population growth since 2011 and contribute to our vitality by starting and building businesses, investing in neighborhoods, and coaching youth sports, volunteering at schools and expanding our cultural offerings. I applaud the Welcoming Plan Task Force, created by the Dallas Office of Welcoming Communities and Immigrant Affairs, for the thoughtful recommendations it developed to make Dallas more inclusive and supportive of immigrants and refugees. The recommendations in this report will help Dallas integrate new residents from around the world into the social fabric of our city, so that we can benefit from their talents and experiences as soon as possible. Best Regards, Michael S. Rawlings – Mayor of Dallas | 3 Dear Fellow Dallasites: When I first became Dallas City Manager, I learned quickly that this city is home to a large, diverse, vibrant immigrant population. Today, one in four Dallas residents was born in another country, and 42% of Dallas households use a primary language other than English. Immigrants comprise one-third of our employed labor force. This significant, and relatively rapid, demographic change brings challenges, but it also brings energy and optimism and entrepreneurism. People want to live and work in Dallas, and that’s a good thing. In recognition of the important role that immigrants play in the life of our City, and to underscore Dallas’ commitment to inclusivity and diversity, the City of Dallas established the Office of Welcoming Communities and Immigrant Affairs (WCIA) in March 2017. Its role is to promote and advance the economic, civic and social engagement of immigrants and refugees residing in Dallas. I am glad to be working hand-in-hand with the WCIA team and with individuals throughout Dallas to create a more inclusive, resilient and welcoming community for all residents. We thank you for joining us in our efforts to be a city of Empathy, Ethics, Equity and Excellence and look forward to working with the residents of Dallas and our team at the City to become a nationally certified welcoming city. To longtime residents and to newcomers, I say, welcome to a more welcoming Dallas! TC Broadnax – City Manager 4 | TABLE OF CONTENTS | 5 Introduction Immigration in Dallas The Dallas Office of Welcoming Communities and Immigrant Affairs and the Welcoming Plan Task Force Summary of Welcoming Plan Task Force Recommendations The Way Forward Welcoming Plan Recommendations Timeframe Acknowledgements Appendix: New Americans in Dallas 7 8 10 12 16 18 28 30 32 6 | Introduction DALLAS IS WELCOMING WHEN WE EMBRACE OUR DIVERSITY | 7 A welcoming community is one in which diversity is acknowledged, celebrated and harnessed to improve the social, economic and cultural opportunities of all residents. Dallas is actively working across sectors to establish a local welcoming framework to integrate and engage immigrants and refugees in every aspect of city life. The City of Dallas is partnering with leaders and representatives of local government, businesses, nonprofit agencies, philanthropic enterprises, academia, service providers, faith-based groups and first responders to build awareness of the economic and social benefits of being a welcoming community, and to develop strategies to realize that goal. Nearly one-quarter of Dallas’ current residents were born outside of the United States. Between the years 2011 and 2016 Dallas’ foreign-born residents accounted for 40 percent of Dallas’ population growth. The integration of foreign-born residents is critical to the social, cultural and economic future of Dallas. But newcomers cannot integrate into communities by themselves. Integration requires a partnership. Immigrants must do their part – learn English, navigate the job market, understand and follow the law – and the receiving community must offer inclusion, hospitality and hope. The idea is simply that Dallas residents, from natives to newcomers, must work together to nurture and sustain a vibrant city that offers rich cultural, educational and economic opportunities to all. The purpose of this document is to recommend a series of goals and strategies that will help Dallas achieve that vision. INTRODUCTION 8 | IMMIGRATION IN DALLAS Half of Texas’ total population growth between 2010 and 2016 can be attributed to migration. Net domestic migration represented approximately 32 percent of the total increase, and net international migration accounted for 19 percent. Almost one in five (19.6 percent) of those immigrants to Texas live in Dallas. Between 2011 and 2016, the population in the City of Dallas grew 4.2 percent, with the foreign-born population accounting for 40 percent of that total growth. As of 2016, approximately 318,000 of Dallas’ 1.3 million residents were immigrants. Until 2017, Dallas was a major refugee resettlement location, with close to 2,500 refugees arriving to Dallas annually. The largest percentage of foreign-born residents are from Latin America, and most of those entered the country prior to 2000. The most common countries of origin are Mexico, followed by El Salvador, Honduras, India and Ethiopia. More than 70 languages are spoken within the Dallas Independent School District. Texas Cities Percentage Houston Dallas Fort Worth/Arlington Austin/Round Rock San Antonio McAllen/Edinburg/Mission El Paso Other 32.5 19.6 7.4 6.3 6.2 5.4 5.0 17.4 WHERE IMMIGRANTS LIVE IN TEXAS | 9 Top ﬁve countries of origin for immigrants living in the city: Total population 1,268,905 → 1,321,656 Immigrant population 296,520 → 317,756 7.2% Mexico El Salvador Honduras India Ethiopia 24% 4.2%Immigrant share of the population, 2016 Between 2011 and 2016, the population in the city grew 4.2%. The immigrant population increased 7.2%. 1 3 2 4 5 ......... ...... ....... ............ ......... Other countries of origin 25.5% Mexico 61.8% 5.6% 2.8% 1.6% 61.8% 2.7% 317,756Number of immigrants living in Dallas in 2016: • Immigrant households in Dallas earned $7.9 billion in 2016. • Foreign-born households contributed $1.9 billion in federal taxes and $591.1 million in state and local taxes. • Foreign-born workers contributed $847.7 million to Social Security and $218.9 million to Medicare. • Immigrants make up about one-third of Dallas’ employed labor force and 24 percent of its science, technology, engineering and math workers. • Immigrants are overrepresented among the city’s entrepreneurs; they are 24 percent of the population and one-third of its entrepreneurs. • The 20,405 immigrants who own their own business generated $495.9 million in business income. • Immigrants helped to create or preserve 14,617 local manufacturing jobs in 2016. • The population eligible for the Deferred Action for Childhood Arrivals (DACA) program held nearly $700 million in spending power. • In 2016, the 63,396 DACA-eligible immigrants in the Dallas area— of whom 93.4 percent were employed — paid $89 million in federal taxes and $72 million in state and local taxes. • International students, including many from China, India and Burma, supported 1,962 local jobs and spent $150.3 million in the 2016-2017 academic year. A recent study by New American Economy revealed immigrants’ tremendous economic contributions to Dallas and the region: In recognition of the important presence of immigrants and refugees in Dallas, and upon recommendation of the 2016 Mayor’s Task Force on Poverty, the City of Dallas established the Office of Welcoming Communities and Immigrant Affairs (“Dallas WCIA”) in March 2017. It aims to promote the civic, social and economic engagement of immigrants in Dallas and to build bridges between Dallas’ diverse immigrant communities and long-term residents. The director of Dallas WCIA reports directly to the Dallas City Manager. Immigration in Dallas 10 | The City of Dallas WCIA office has searched for, and found, resources to help develop its capacity to fully integrate immigrants. It became a member of Welcoming America, a national organization leading the movement to create more immigrant-inclusive communities. WCIA has received technical assistance through its membership in Welcoming America, and collaborated with Cities for Action, the New Americans Partnership and the Cities for Citizenship Campaign. As a result of active participation in these networks, and its work with local leaders across a broad spectrum of business, faith-based, civic, social service and academic organizations, Dallas earned a Gateways for Growth Challenge award from New American Economy and Welcoming America. The award included original research that resulted in a recent report, New Americans in Dallas, which appears in Appendix A. IMMIGRANTS ACCOUNT FOR NEARLY ONE THIRD OF THE CITY’S ENTREPRENEURS. THE 20,405 IMMIGRANTS WHO OWN BUSINESS GENERATED $495.9 MILLION IN BUSINESS INCOME.THE DALLAS OFFICE OF WELCOMING COMMUNITIES AND IMMIGRANT AFFAIRS AND THE WELCOMING PLAN TASK FORCE While these national partnerships offer ideas, encouragement and technical assistance, the actual work of integration takes place within communities and neighborhoods and schools. From March 2017 to June 2018, Dallas WCIA has participated in 343 community events, meetings, fairs, panel discussions and other activities, reaching approximately 23,030 attendees. Dallas WCIA staff also has sought insights from community leaders who regularly welcome and work with immigrants and refugees. An initial survey with faith-based, legal, and other service providers and educators detailed the barriers facing immigrants and what Dallas can do to help improve the quality of life for immigrant residents. NATIONAL PARTNERSHIPS COMMUNITY ENGAGEMENT IN DALLAS | 11 BIGGEST BARRIERS TOP 5 GREATEST NEEDS WHAT CAN DALLAS DO? PRELIMINARY SURVEY RESULTS Fear of immigration enforcement Lack of English language skills Poverty/Lack of resources Transportation Affordable housing Knowledge of rights and preparedness information Access to civil immigration legal services Access to and utilization of available services & benefits ESL, Literacy and Citizenship instruction Promotion of U.S. Citizenship 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Community outreach between law enforcement & government leaders Celebrate contributions of immigrants & refugees Promote & provide ESL & U.S. Citizenship instruction Support diversity initiatives & include immigrants Break down social & economic barriers After that initial outreach, Dallas WCIA formed a Welcoming Plan Task Force to develop formal recommendations to integrate immigrants fully into city life. The Dallas WCIA Welcoming Plan Task Force includes 85 members from a wide variety of backgrounds and professions, many of whom had not met previously. Tailoring efforts to the Dallas community, the task force sub-divided into five committees that address the issue areas required for Welcoming America’s national certification as a welcoming community: Civic Engagement; Economic and Educational Opportunity; Safe, Healthy and Connected Communities; Leadership and Communications; and Equitable Access. The full task force met monthly beginning in December 2017 to learn about issues impacting the Dallas immigrant and refugee communities, city policy initiatives, existing city services and barriers to equitable access and participation. Task Force members engaged with Dallas residents through listening sessions, site visits and informational interviews. These listening sessions revealed the following barriers that prevent immigrants in Dallas from fully integrating into the community: • Fear of going about daily activities due to heightened federal immigration enforcement policies • Language barriers • Lack of acceptable identification • Difficulty in understanding “paperwork” such as leases, contracts, bills • Lack of awareness of or access to information about topics such as starting a business, organizing a neighborhood group, etc • Lack of knowledge of legal rights • Lack of civics knowledge; awareness about engagement with city leaders From this community-driven process, task force members developed a set of detailed recommendations, summarized below and explained fully at the end of this report, to encourage equitable access to city and educational services and full integration into civic and social life. The Dallas Office of Welcoming Communities and Immigrant Affairs and the Welcoming Plan Task Force 12 | SUMMARY OF WELCOMING PLAN TASK FORCE RECOMMENDATIONS | 13 LEADERSHIP AND COMMUNICATIONS GOAL Local government is committed to being inclusive and welcoming, and plays a central role in building local capacity while advancing inclusion of diverse communities within its own agencies and bodies. RECOMMENDATIONS 1. Develop community awareness about the economic, social and cultural contributions immigrants make, and the benefits Dallas derives from being an inclusive community. 2. Develop and maintain a comprehensive directory/database of services and resources for immigrants and refugees. 3. Create partnerships with local, state and federal agencies, the business community and philanthropic entities to address changing needs related to evolving immigration policy. 4. Enhance understanding and trust between long-term residents of Dallas and immigrant communities. SAFE, HEALTHY, AND CONNECTED COMMUNITIES GOAL Welcoming communities build relationships among diverse communities, including newcomers and longer-term residents. They also foster trust and build relationships between diverse communities and local law enforcement and safety agencies. RECOMMENDATIONS 1. Provide training about diverse populations and establish ongoing dialogue with first responders and public safety officials to foster trusting relationships between immigrants and law enforcement. 2. Educate immigrants about their rights and responsibilities and raise awareness through on-going education throughout the community of sensitive locations pursuant to federal policy guidance. 3. Improve health care accessibility and understand and address needs of immigrants and refugees. 4. Convene a coalition of mental health care experts to coordinate and address services provided in the City of Dallas. 5. Partner with philanthropy to provide civil immigration services and rights information programs. 6. Bring diverse groups together to celebrate and foster cultural, artistic and recreational interaction between Dallas’ long-term and newer residents. EQUITABLE ACCESS GOAL Welcoming communities reduce barriers to services and participation so that opportunities in the community are available to all residents. RECOMMENDATIONS 1. Develop and utilize data-driven approaches to conduct equity analyses for decision-making processes and ensure implementation of inclusive policies for Dallas residents in coordination with other relevant offices. 2. Implement and oversee a City language access plan, including access to safety services/alerts and staff training. 3. Support efforts by the City to simplify and increase access to city services for all residents of Dallas by implementing a multi-use city identification card. 4. Work in partnership to improve housing accessibility and work to prevent housing discrimination. 5. Work in partnership to foster partnership programs to achieve equitable access to health care. 6. In partnership with mobility solutions experts, work to improve transportation accessibility in Dallas. The Welcoming Plan Task Force Summary of Recommendations 14 | CIVIC ENGAGEMENT GOAL Welcoming communities actively ensure that diverse populations fully participate in civic life, including increasing access to leadership, citizenship and community participation. RECOMMENDATIONS 1. Increase the number of Dallas immigrants who become naturalized U.S. citizens. 2. Increase knowledge of how local government works and how to access services for immigrant communities in Dallas. 3. Enhance levels of civic participation and leadership among immigrants in Dallas. 4. Promote participation in the 2020 Census to ensure maximum participation. 5. Promote voter education and registration among new citizens. 6. Raise awareness in immigrant communities of the unauthorized practice of immigration law and other predatory practices impacting immigrant consumers. ECONOMIC OPPORTUNITY AND EDUCATION GOAL Welcoming communities harness the full potential of all their residents. Everyone has the skills and assets to thrive, and economic development systems are prepared to leverage new and existing talent. Welcoming communities also ensure everyone has the education needed to succeed in school and the workforce. RECOMMENDATIONS 1. Establish welcoming hubs as community gathering and educational centers for immigrants to access information, resources and opportunities. 2. In partnership, bring to-scale workforce systems that increase skill development and career pathways to improve immigrant integration in the economy. 3. Remove barriers to immigrant families to ensure full access in all educational opportunities that exist in the City of Dallas and promote learning at all levels. 4. Participate in partnership opportunities to support the financial literacy needs of immigrants. The Welcoming Plan Task Force Summary of Recommendations | 15 16 | THE WAY FORWARD | 17 Moving forward, Dallas is striving to become a certified “Welcoming City” by the national certifying non-profit organization, Welcoming America. There are currently three certified cities in the nation (Dayton, Louisville, and Salt Lake City) and Dallas WCIA is working diligently to become the next. While national immigration policy focuses on interdiction and deportation, communities like Dallas are working to demonstrate the longtime American ideal of welcoming immigrants. For decades, people around the world have revered the United States for its hospitality and its opportunities. Dallas will continue to honor that tradition. This city has many compatriots in this effort: according to Welcoming America, one in eight Americans lives in places considered to be welcoming communities, places that actively seek to include and engage their foreign-born residents. Full integration does not happen without effort, from both the receiving population and the newcomers. It takes work and good will. We can find common ground by sharing our arrival stories — most Americans have one — of grandparents who fled pogroms in Russia, an ancestor forced onto a slave ship, a parent who crossed the Rio Grande with a goal of finding work. We find hope by reaching out, acknowledging our shared humanity, learning about our different customs and cultures, and realizing we all want to live in a safe, vibrant, compassionate city where children grow up in peace and families prosper. No matter where we came from, we are all neighbors now. E Pluribus Unum. And we know that when one person moves forward in Dallas, we all move forward. Cuando uno de nosotros sigue adelante en Dallas, todos seguimos adelante. 18 | The Welcoming Standard, as developed by the Welcoming America organization, provides a comprehensive guide for building more cohesive and equitable communities and fostering connections between newer immigrants and long-time residents. It also sets benchmarks for accountability and innovation so that city efforts can be scaled and measured in relation to established priorities that include: • Public Safety • Mobility Solutions, Infrastructure and Sustainability • Human and Social Needs • Quality of Life • Government Performance and Financial Management The Welcoming Standard includes strategies for sustaining a welcoming plan, such as: • Engaging longer-term residents • Setting goals, monitoring impact and adjusting strategies as needed • Designing for equity and inclusion. • Implementing in partnership The Dallas Welcoming Communities Task Force produced the following recommendations and strategies for implementing a Welcoming Plan in the City of Dallas.WELCOMING PLAN RECOMMENDATIONS | 19 RECOMMENDATIONS Develop a community awareness campaign about the economic, social and cultural contributions immigrants make, and the benefits Dallas will derive from being an inclusive community STRATEGIES • Hold listening sessions and focus groups with immigrants and refugees to understand the challenges and benefits of living in Dallas. • Enlist partners, including the business and philanthropic sectors, to launch a community awareness campaign, #WelcomingDallas and #BeGolden, to emphasize the ways immigrants and refugees enrich our city and contribute to the local economy. • Identify key messages for different audience segments and the most effective media channel for reaching those audience segments. • Enlist influential leaders in the receiving community (business and civic leaders, etc.) to serve as spokesmen and women who can explain the benefits of being a welcoming community. • Actively seek out or create opportunities for media coverage of immigrant- related stories, such as holding naturalization ceremonies at City Hall, etc. • Promote welcoming and inclusive culture via public proclamation or resolution. Develop a Directory/Database of Services and Resources for Immigrants and Refugees as a welcoming guide that helps newcomers more easily access services and resources STRATEGIES • Survey the landscape to learn what already exists. • Identify immigrant and refugee leaders, including youth leaders, to serve as community ambassadors to help identify needs and provide resource information. • Find a “home” or administrator for the directory, so that it is regularly updated and reviewed for accuracy, etc. Create partnerships with local, state and federal agencies, private sector and philanthropic organizations to address changing needs related to evolving immigration policy STRATEGIES • Brief City Council members and commission members on demographics and local immigrant and refugee issues and serve as a resource when elected officials need information. • Build relationships with other partners, including city staff and other public agency officials, such as Dallas and Richardson ISD, Parkland Health & Hospital System leaders, Dallas County, etc. • Develop opportunities to work with business associations or chambers of commerce, professional societies, etc. • Engage with other citywide, grass-roots organizations to discuss the benefits of becoming a welcoming city and fully integrating newcomers. Enhance understanding and trust between long-term residents of Dallas and immigrant communities by creating shared experiences STRATEGIES • Hold annual Thanksgiving dinners to bring newcomers and long-term residents together to celebrate a cherished American tradition. • Coordinate volunteer opportunities for diverse communities to collaborate and work together. • Sponsor community gardens in partnerships, use transit systems to explore the city, hold cultural celebrations, art exhibits and engage in community clean-up, soccer tournaments, Ciclovía and other activities that allow groups to become more familiar with diversity beyond their immediate neighborhoods, place of worship, and workspace. • Participate in recreational events in Dallas for families to gather on multiple weekends throughout the year and use as an opportunity to raise awareness about community and family services. • Work in partnership to welcome international guests to Dallas with protocol office. PARTNERS Business and philanthropic sectors, Dallas residents, Dallas media outlets, elected officials, service providers, local, state and federal officials. LEADERSHIP AND COMMUNICATIONS Commitment on behalf of city leaders to being inclusive and welcoming by advancing local capacity building efforts while advancing inclusion of the diverse community within the City. Welcoming Plan Recommendations 20 | RECOMMENDATIONS Develop and utilize data-driven approaches to conduct equity analyses for decision-making processes and work to ensure implementation of inclusive policies for Dallas residents in coordination with other relevant offices STRATEGIES • Review city policies concerning government leadership, equitable access, civic engagement, cultural inclusion, education, economic development, neighborhood development, and public safety for implicit bias and ensure equitable consideration of immigrant residents and visitors. • Undertake a systematic review of local laws, codes, policies, and practices to determine whether such policies (i) exclude or disenfranchise immigrants; or (ii) exclude residents based on facets of the identity, including gender, race, ability, age, religion or sexual orientation. • Revise any policies found to run counter to ((i)-(ii)) above. • Implement a process to regularly review and improve local policies to strengthen immigrant inclusion. Implement and oversee a City language access plan to remove linguistic barriers to participating in Dallas life and community engagement, while providing staff training STRATEGIES • Improve language access to information and services. • Ensure language access across city departments with the goal of expanding equitable access to programs, services, and activities. • Undertake an assessment of the language needs of the community with the goal of providing access to (i) important information including safety, emergency, and alert services; (ii) housing, transportation and health information and services; (iii) all City services; (iv) legal and non-profit resources; (iv) educational and work force training opportunities. Implement and operationalize a language policy that meets the needs identified. • Publicize and market the policy in a way that emphasizes the diversity and inclusiveness of our community. Upgrade, enhance, and publicize existing services such as 311, 211texas.org, northtexasfamilies.org, helpfinders.org. • Create partnerships with others who can assist in translation and resources. Support effort by the City to simplify and increase access to city services for all residents of Dallas by implementing a multi-use city identification card STRATEGIES • Conduct an assessment of the ways a multi-use City ID would improve the quality of life for Dallas residents. • Determine the financial costs and other feasibility issues in developing a multi-use City ID card. • Seek wide community support for a multi-use City ID card. • Provide funding and the authority to administer a multi-use City ID program to be accepted by the City for enumerated city services. EQUITABLE ACCESS Welcoming Dallas reduces or eliminates the barriers to accessing services, programs and activities, so that the opportunities of the community are available to all residents. Welcoming Plan Recommendations | 21 Improve access to Housing in partnership with community-based organizations, Dallas Fair Housing, Texas Fair Housing Authority STRATEGIES • Ensure that the comprehensive housing plan includes the integration of immigrants and other diverse populations into all neighborhoods of Dallas. • Dedicate a portion of affordable housing development requirements for the unsubsidized population and require developers to incorporate unsubsidized low-income housing into all financing plans. • Promote the value of working with immigrants in providing low-income housing; remove barriers to renting apartments. • Support tenant efforts to hold owners accountable for substandard properties and assist in disseminating discrimination policies and access to legal remedies. In partnership, actively work to foster partnership programs to achieve equitable access to health care STRATEGIES • Host dialogues on how to address fear and toxic stress that are impacting daily life and well-being of Dallas families. • Establish a network of accessible community-based primary care clinics, in under-serviced areas and areas with high immigrant concentrations. • Advocate for language access services during medical and behavioral health visits. Improve mobility and transportation options for all Dallas residents and include immigrants in the inclusion process; this would be done in partnership with Dallas Office of Transportation, DART, corporate philanthropy, and community organizations STRATEGIES • Expand services and a seek a reduction in fare prices to provide supportive public transportation to all low-income residents of Dallas. • Better utilize existing city and community resources in addressing transportation needs. PARTNERS Service providers, City of Dallas departments, philanthropic sectors, Dallas residents, elected officials, public transit authorities, public housing authorities, real estate associations, tenant associations, service providers, local, state and federal officials. Welcoming Plan Recommendations 22 | RECOMMENDATIONS Implement and Increase access to justice for immigrants and refugees STRATEGIES • Create an informational clearinghouse for information and access to legal and non-profit assistance and engagement with the law enforcement community. • Overcome language barriers in the court system and the prosecutor’s office. • Create public/private partnerships to provide civil immigration legal services for indigent respondents. Facilitate and strengthen relationships between public safety departments and Dallas immigrant communities through a “Safe Connections RoundTable” series while providing training on interacting with diverse populations STRATEGIES • Monthly meetings between the DPD, DFD, and Dallas WCIA staff; secure approval and cooperation from DPD Chief and DFD chief. • Establish the topics and data to be covered and provided at each meeting. • Establish time and place for the meetings for the calendar year. • Promote education/hold classes on municipal laws, human trafficking, and U visa policy to educate the immigrant community on issues that impact their quality of life in Dallas. • Coordinate in partnership Dallas Resident Police Academies in multiple languages. Educate communities about their rights and responsibilities as well as federally designated sensitive locations STRATEGIES • Map the sensitive locations and resource materials that explain the meaning of being a sensitive location for community distribution. • In partnership, convene classes about legal rights and responsibilities. SAFE, HEALTHY AND CONNECTED COMMUNITIES Welcoming Dallas builds relationships among diverse communities, including newcomers and longer-term residents. It also fosters trust and builds relationships between diverse communities and local law enforcement and safety agencies. Across city departments, Dallas WCIA actively engages in outreach and dialogue to help build bridges within the community and to inform community members about the importance of reporting crime and options that may exist for victims of crime. Community engagement with collaborative partners like the Dallas Police Department Unidos program to alleviate fears and increase the quality life of Dallas residents. PARTNERS First responders, public safety officials, service providers, City of Dallas departments, philanthropic sectors, Dallas residents, elected officials, service providers, local, state and federal officials. Welcoming Plan Recommendations | 23 RECOMMENDATIONS Increase the number of Dallas immigrants who become naturalized U.S. citizens by hosting bi-annual citizenship workshops with community collaborators STRATEGIES • Coordinate the #MyDallas Citizenship Campaign with key partners throughout the City. • Conduct free, large-scale naturalization workshops at the Dallas Public Libraries and other venues on a quarterly or semi-annual basis where a diverse group of volunteers can assist immigrants to apply for naturalization. • Establish Citizenship Corners in all Dallas Public Library branches and equip Citizenship Corners with wide a range of information helpful to immigrants and refugees. • Maintain active membership with national partner organizations also dedicated to promoting U.S. citizenship, such as: New Americans Campaign (NAC), Cities 4 Citizenship (C4C), National Partnership for New Americans (NPNA) and U.S. Citizenship and the Immigration Services Citizenship Grant Program. • Partner with businesses to assist lawful permanent resident employees with the process of citizenship, using New American Workforce as a model. • Create citizenship loan programs by working with credit unions and lending circles to establish low-interest loans to pay for naturalization application fees. • Encourage release time for City of Dallas employees to participate in WCIA- sponsored events, including City Hall Naturalization Ceremonies; Citizenship and DACA application workshops; and other large-scale events. • Include in City of Dallas’ Texas Legislative Agenda a request for state funding for naturalization promotion efforts as exists in numerous other states with large immigrant populations. CIVIC ENGAGEMENT Welcoming Dallas actively ensures that diverse populations fully participate in civic life, including increasing access to leadership, citizenship and community participation. Increase Knowledge of Local Government among Immigrant Communities of Dallas STRATEGIES • Create an Outreach Speakers Bureau of long-term U.S. citizens and public officials (mayor, city manager, city councilmembers, police chief, sheriff, judges, district attorney, city attorney) to educate new immigrants on major aspects of local government including: city and county roles and jurisdictions; relationship to state and federal government; law enforcement organization and roles; courts structure and organization; and many other topics. • Promote the free Text4Refugees text messaging platform. • Collaborate with Dallas Police Department UNIDOS community policing speakers and expand program to include other cultural leaders and languages. • Partner with 311 and other city departments to communicate topical information about city life. • Involve the Mayor of Dallas and Councilmembers in high- profile activities that underscore the importance of U.S. citizenship, such as speaking at naturalization ceremonies, giving media interviews or participating in PSA. • Establish a Community Ambassadors Program to include new citizens to further promote the #MyDallas Citizenship Campaign. • Engage with immigrants and refugees in coordinating and promoting citizenship civics classes and ESL classes Welcoming Plan Recommendations 24 | Promote Voter Education and Registration Among New Citizens STRATEGIES • Assist in the coordination of Citizenship Corners at Dallas Public Library to ensure they are well-supplied with voter registration and educational materials. • Promote voting through existing mass mailings such as utility bills, and other local government mailings. • Coordinate with community organizations dedicated to promoting the right to vote. • Participate at voter registration booths at USCIS Naturalization Ceremonies and other public events. Enhance Levels of Civic Participation and Leadership Among Immigrants STRATEGIES • Create a City of Dallas New Citizens Leadership Academy, modeled after New American Leaders, as a learning opportunity for new citizens to master skills necessary to: 1. Run for local, state, and/or federal office 2. Hold community leadership positions 3. Advocate for public policies supportive of immigrant families • Develop community councils, comprised of a cross section of immigrants and refugees from around the City to gather input and recommendations from their respective community for presentation to City Council and the Mayor. • Promote community service opportunities for immigrants and refugees through linkages to existing volunteer placement programs, such as Corporation for National and Community Service (CNCS), AmeriCorps, VISTA, Senior Corps, Volunteer Now and others. • Encourage immigrants and refugees to volunteer at naturalization workshops. • Involve new citizens in voter registration drives in their own immigrant communities. • Establish a WCIA Volunteer Coordinator position to match immigrants and refugees with nonprofit organizations where they will learn skills to enhance their employability. • In partnership with City protocol office, develop and foster existing relationships with sister cities around the world. Promote Participation in the 2020 Census to Ensure Maximum Participation STRATEGIES • Participate in all activities of the Mayor’s Complete Count Committee. • Conduct early and widespread outreach to familiarize immigrants and refugees with the 2020 Census and the importance of it. • Coordinate efforts with counterpart Immigrant Affairs offices throughout the U.S. to identify effective strategies and best practices for ensuring participation in the 2020 Census and privacy protections. Welcoming Plan Recommendations • Bring together key stakeholders and “influencers” into the 2020 Census outreach efforts early to deliver positive messages about the census. MyDallas Citizenship Application Workshop held at the central library in downtown Dallas. Promotion of citizenship is integral to the work of inclusion. Research shows that individuals, families and the communities where they live stand to gain through naturalization. Dallas WCIA and its partners are expanding citizenship efforts in Dallas to simplify the process and improve the lives of Dallas residents. | 25 Raise Awareness in Immigrant Communities of the Unauthorized Practice of Immigration Law (UPL) and other predatory practices impacting immigrant consumers STRATEGIES • Maintain constant and repetitive messaging warning immigrants and refugees about “notaries” and the unauthorized practice of immigration law. • Regularly update and circulate the Dallas WCIA pamphlet, “Guide to Immigration Legal Service Organizations in North Texas Recognized by the U.S. Department of Justice”. • Ensure that Dallas Public Libraries’ Citizenship Corners are stocked with materials advising about the unauthorized practice of law and immigration scams. • Build relationship with consumer-related prosecuting entities such as the State Bar Unauthorized Practice of Law Committee, the Texas Attorney General’s Office, the Federal Trade Commission and others. PARTNERS First responders, public safety officials, service providers, City of Dallas departments, philanthropic sectors, educators, Dallas residents, elected officials, service providers, local, state and federal officials. DACA is a Prime Example of Integration and Inclusion The Dallas metropolitan area has the third largest number of residents with Deferred Action for Childhood Arrivals (DACA) across the United States. Given their income, DACA-eligible immigrants contribute significantly to state and local taxes, including property, sales and excise taxes. They are highly engaged in community affairs and the employment rate of DACA-eligible living in Dallas in 2016 is 93.4%. As part of the #MyDallas campaign, WCIA plans to expand efforts to include coordinating DACA Renewal clinics with nonprofit and philanthropic partners so that all eligible recipients apply to receive protection from deportation, work authorization, and the ability to continue contributing in the formal economy. Welcoming Plan Recommendations 26 | ECONOMIC OPPORTUNITY AND EDUCATION Welcoming Dallas harnesses the full potential of all residents. Everyone has the skills and assets to thrive, and economic development systems are prepared to leverage new and existing talent. Welcoming Dallas ensures everyone has the education they need to succeed in school and the workforce. RECOMMENDATIONS In partnership, bring to-scale workforce systems that increase skill development and career pathways to improve immigrant integration in the economy STRATEGIES • Help immigrant and refugee service providers augment services and resources tailored to assisting immigrants and refugees in breaking barriers to workforce entry. • Leverage existing resources in Dallas County to improve job training and promote entrepreneurial development. • Work in partnerships, to provide credential evaluation to transition qualified immigrants into stable jobs/trades and skill appropriate workforce involvement. • Increase immigrant and refugee involvement across the full spectrum of newcomer services and agencies focusing on economic and educational opportunities. • Leverage partnerships to create opportunities for immigrant and first generation college youth to apply for internships and apprenticeships. • Conduct asset mapping of economic, educational, and transportation access gaps for immigrant residents. • Work in partnership to promote workforce and skills development. • Work in partnership with economic development chambers and other partners to encourage and provide technical assistance to small and minority-owned businesses to become vendors to bid on City projects. • Promote growth for immigrant and minority businesses and work with EB5 Program to stimulate economic development in opportunity areas. • Develop a plan to support current and future immigrant- owned businesses. • Conduct outreach on resources for starting business in Dallas and facilitate programs that augment entrepreneurial initiatives in immigrant communities. • Support efforts to fight wage theft cases for immigrants. • Develop curriculum in technological skills and competencies in multiple languages. • Participate in partnership opportunities to support the financial literacy needs of immigrants. PARTNERS Workforce Solutions of Greater Dallas, DCCCD, Texas Workforce Commission Adult Education and Literacy programs, philanthropy, employers, city and county. Welcoming Plan Recommendations City of Dallas is committed to “service first” philosophy to all its residents. | 27 Establish welcoming hubs STRATEGIES • Assess welcoming locations to create a human-centered digital platform of resources. • Create a community space for collaboration/awareness of existing resources among community-based organizations and service providers. • Create a network of community organizations by county. • Develop an online portal for all Dallas residents interested in international affairs, providing calendars of events and useful resource guides. • Promote the availability of quality information and counseling to immigrant families regarding higher education and vocational opportunities. • Provide information on civil rights and legal resources. • Publish a basic guide for newcomers. • Provide workshops to help parents understand pathways to college. • Establish one-stop shops where immigrant entrepreneurs can get information on navigating licensing and other processes • Support immigrant entrepreneurs in the tech economy by working with universities and private industry to access information and networks. • Provide reliable information on important issues and service needs, such as: tax preparation, authorized immigration legal services, proper vs predatory lending, how to avoid real estate and healthcare scams, how to recognize predatory for-profit educational programs and many others. Remove barriers to immigrant and refugee families to promote learning and ensure full access in all educational opportunities that exist in the City of Dallas STRATEGIES • Work in partnership to provide expanded subsidized preschool/daycare and early childhood programs servicing diverse populations. • Work in partnership to provide parent workshops about education and college opportunities throughout the City in multiple languages. • Ensure that English language learning opportunities are available throughout the City in convenient and safe locations. • Utilize public libraries and welcoming hubs as a center point to promote the resources available for newcomers in different languages. • Partner with educational service providers to promote a covered college education for Dallas high school students. • Organize events to encourage the international community to share experiences/knowledge. • Create mentorship opportunities between seasoned immigrant professionals and newcomer families. • Help immigrant students transition into the U.S. school system, enabling them to engage with the appropriate curricula and succeed academically. • Work with Parent Teacher Associations (PTAs) in public schools to be more encouraging and inviting of immigrants and refugees. PARTNERS RISD/DISD’s Newcomer’s program to ensure services are provided to volunteers, teachers, and administrators, Dallas Public Library, Carrollton-Farmers Branch, Coppell, Duncanville, Garland, Highland Park, Mesquite, Plano, Richardson, DISD, Irving, colleges universities nonprofit after school organizations, and business development training centers. Welcoming Plan Recommendations 28 | The Welcoming Dallas Plan includes a broad set of actions that are prioritized as short-term, mid-term and long-term and grouped in three categories. TIMEFRAME | 29 SHORT TERM 1-2 YEARS MID TERM 2-3 YEARS LONG TERM 3+ YEARS WELCOME, NEIGHBOR WELCOME, NEIGHBOR WELCOME, NEIGHBOR CONNECTING DALLAS CONNECTING DALLAS CONNECTING DALLAS FORWARD TOGETHER FORWARD TOGETHER FORWARD TOGETHER • Launch community awareness campaign and actively seek out opportunities for media coverage for immigrant related stories • Host naturalization ceremonies • Enhance understanding and trust between long-term residents of Dallas and immigrant communities by creating shared experiences • Maintain comprehensive directory • Increase the number of Dallas immigrants who become naturalized U.S. citizens • Promote participation in the 2020 Census • Ensure that English language learning opportunities are available throughout the City in convenient and safe locations • Establish welcoming hubs • Revitalize sister city relationships • Create youth taskforce on welcoming & promote next-gen leadership • Promote higher education and workforce opportunities • Enhance levels of civic participation and leadership among immigrants • Remove barriers to immigrant and refugee families to ensure full access in all educational opportunities that exist in the City of Dallas • Raise awareness throughout the community of the federally-designated sensitive locations • Develop and oversee a language access plan • Support endeavors to research & launch a City ID program • Identify & revise policies that may exclude or discriminate • Partner with philanthropy & service providers regarding civil immigration services and rights information programs • Raise awareness of the unauthorized practice of immigration law and other predatory practices • Utilize data-driven approaches to conduct equity analyses with other relevant offices • Implement and increase access to justice for immigrants and refugees • Improve housing accessibility • Improve transportation accessibility • Collect data to conduct an equity analysis for decision making processes • Improve health care accessibility • Collect and utilize data-driven approaches to conduct equity analyses for decision-making processes with other relevant offices • Promote voter education and registration among new U.S. citizens • Raise awareness of and improve immigrant integration in workforce systems and improve U.S. professional licensing processes • Promote growth for immigrant and minority businesses • Engage local, governmental, business, and civic leaders to elevate the myriad benefits of being a welcoming and diverse city • Create partnerships to address changing needs related to evolving immigration policy • Create partnership opportunities to support the financial literacy needs of immigrants • Review and revise as needed • Establish a city office to house immigrant integration efforts • Establish a welcoming city employee resource group • Expand Dallas civic engagement and leadership opportunities • Establish and maintain ongoing dialogue with first responders and public safety officials • Increase knowledge of local government for immigrant communities in Dallas • Engage local, governmental, business, and civic leaders to elevate the myriad benefits of being a welcoming and diverse city • Create partnerships to address changing needs related to evolving immigration policy • Participate in partnership opportunities to support the financial literacy needs of immigrants Timeframe 30 | ACKNOWLEDGMENTS WCIA thanks the following Dallas leaders for their commitment and contributions to developing the Welcoming Plan Recommendations for the City of Dallas. Ghazwan Abdullah, Seek the Peace Hanna Alexander, Equal Justice Center Luis Arango, J.D., Catholic Charities of Dallas Nicolas Argueta, American Salvadoran Association Virginia Arteaga-Haid, Global Economic Development Dallas County Community College District Ann Badmus, Esq., Immigrant Journey Awards Charles Barker, MD, Compassionate DFW Karen Bassett, League of Women Voters Graham Bateman, Justice for Our Neighbors Syl Benenson, National Council of Jewish Women Bill Bernstein, Mosaic Family Services Bill Betzen, The School Archive Project Dr. Watt Black, Southern Methodist University, Simmons School Ing. Erik Burgos, North Texas Dream Team Felicitas Cadena, UNIVISION Victor Carrillo, Zion Oil & Gas Jason Clarke, Seek the Peace Laura Collins, Esq., George W. Bush Institute Isabelle Collora, Homeward Bound Isabel Colunga, Injury Prevention Center of Greater Dallas Harry Davis, First Unitarian Church of Dallas Catrina Dawson, Unite Greater Dallas Angela Downes, UNT Dallas College of Law Lenita Dunlap, Heart House Linda Abramson Evans, United Nations Association Dallas Hector Flores, League of United Latin American Citizens Sara Fox, Richardson Independent School District Alfonso Franco, Proyecto Inmigrante Juan Garcia, SMU Dedman School of Law student Dr. Patty Garcia, Latino Center for Leadership Development Prisma Garcia, Social Venture Partners Yolette Garcia, Southern Methodist University, Simmons School Michelle Garza Pareja, RAICES Tom Gibbons, Compassionate DFW Dr. Jessica Gomez, Momentous Institute Rebecca Greenan, Esq., UNT Dallas College of Law Christina Hanger, Dallas Afterschool Claudia Hermann, Asociación de Mujeres Empresarias y Profesionales Jin-Ya Huang, Break Bread Break Borders Larry James, CitySquare Tiffany Jelke, International Rescue Committee Kavita Khandekar Chopra, Esq., Human Rights Initiative Irma Kusuma, Greater Dallas Asian American Chamber Brenda Kirk, The National Immigration Forum Brenda Lepenski, Foundation Communities Dr. Hilda Loria, UT Southwestern Medical Center and Children’s Health David Lozano, Cara Mia Theater Rene Martinez, League of United Latin American Citizens Mark Masepohl, UNIVISION Cheryl McCarver, Community Council of Greater Dallas Dr. Margo McClinton Stoglin, CRM & Associates, LLC; Advising and Consulting Services Regina Montoya, Esq., Dallas Mayor’s Poverty Task Force Lissette Moreno, Peace & Justice Ministry Janet Morrison-Lane, PhD, Vickery Meadow Youth Development Foundation Jennifer Nagorka, Freelance Writer Dr. Walter Nguyen, Mosaic Family Services Dr. Javier Olguin, Eastfield College WELCOMING PLAN TASKFORCE Mirjana Omeragic, Mosaic Family Services Sarah Papert, Literacy Achieves Edurne Pineda, Consulate General of Mexico Cheryl Pollman, National Council of Jewish Women Dr. Alina Ponce, Momentous Institute Angelica Portillo, Dallas Afterschool Maria Powers, The Wilkinson Center Daniel Prescott, Transformance Nina Rafiq, Parkland Hospital Diana Ramirez, Workers Defense Project Leonid Regheta, Project Start Cristal Retana, Children’s Health Edward Retta, Cross Culture Communications Sr. Patricia Ridgely, Sisters of St Mary of Namur Marissa Rodriguez, Injury Prevention Center Daley Ryan, International Rescue Committee Jaynie Schultz Blake Schwarz, Park Cities Presbyterian Church Joel Schwitzer, American Jewish Committee Dallas Dr. Irwin Segal, Family Medical Physician Dr. Michael Sorrell, Paul Quinn College Shelli Stephens Stidham, Injury Prevention Center Martha Stowe, Vickery Meadow Youth Development Foundation Jamila Thomas, Dallas Independent School District Claudia Torrescano, Dallas Independent School District Nubia Torres, Catholic Charities of Dallas Leticia Tudon, The Concilio David Villalobos, Texas Organizing Project Rev. Michael Walsh, Dallas Area Interfaith Kasey Yanna, Dallas Independent School District Acknowledgments | 31 M a y o r : Mike Rawlings Mayor Pro Tem/District 3: Casey Thomas II Deputy Mayor Pro Tem/District 2 : Adam Medrano District 1: Scott Griggs District 4: District 5: Ric key D. Callahan District 6 : Omar Narvaez District 7: Kevin Felder District 8: Tennell Atkins District 9: Mark Clayton District 10: B. Adam McGough District 11: Lee Kleinman District 12: Sandy Greyson District 13: Jennifer Staubach Gates District 14: Philip T. Kin gs ton City Manager: TC Broadnax City Manager’s Office Executive Team, City Departments, and Mayor’s Staff Office of Welcoming Communities and Immigrant Affairs Director: Mary Elizabeth (Liz) Cedillo-Pereira, Esq. Senior Program Manager: Vanna Slaughter, LCSW Community Outreach Specialist: Yolanda Ramirez 2018 Interns/Next Gen Leaders: Mirka Estrada, Jenny Yuhun Myung, John Reaves, Alice Vyukusenge Welcoming America, New American Economy and all collaborating partners, Felicia Carrillo Escobar and Monica Fuentes Photography: Kael Alford, Rooha Haghar Design: El Creative Advertising & Design, Jessie Martinez, Jacob Johnstonbaugh MANY THANKS TO OUR CITY LEADERS FOR SUPPORT AND LEADERSHIP 32 | City Council Approved Resolution (18-1520) – October 24, 2018 | 33 City Council Approved Resolution (18-1520) – October 24, 2018 CONTINUED 34 | APPENDIX New Americans in Dallas A Snapshot of the Demographic and Economic Contributions of Immigrants in the City1 POPULATION GROWTH24+76R Immigrant share of the population, 2016 Top five countries of origin for immigrants living in the city: Number of immigrants living in Dallas in 2016: Growth in the foreign-born population accounted for 40.3% of overall population growth during that period.317,756 Between 2011 and 2016, the population in the city grew 4.2%. The immigrant population increased 7.2%. Total population 1,268,905 → 1,321,656 Immigrant population 296,520 → 317,756 7.2% Mexico . . . . . . . . . . . . . . . . . . . . . . . . .61 .8% El Salvador . . . . . . . . . . . . . . . . . . . . .5 .6% Honduras . . . . . . . . . . . . . . . . . . . . . .2 .8% India . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 .7% Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . .1 .6% 1 3 2 4 5 62+6+3+3+2+24Other countries of origin 25.5% Mexico 61.8% 24% 4.2%40.3% | 35 New Americans in Dallas 2 SPENDING POWER & TAX CONTRIBUTIONS Amount earned by immigrant households in 2016: $7.9B $1.9B went to federal taxes.2 Given their income, immigrants contributed significantly to state and local taxes, including property, sales, and excise taxes levied by state or municipal governments. Leaving them with $5.4B in spending power.4 $591.1M went to state and local taxes.3 Immigrants also support federal social programs. In 2016, they contributed $847.7M to Social Security and $218.9M to Medicare.Social Security $847 .7M Medicare $218 .9M 36 | 3 New Americans in Dallas Walter Nguyen SPOTLIGHT ONLABOR FORCE GROWTH Although the foreign-born made up 24% of the city’s overall population, they represented 31.6% of its working-age population, 31.5% of its employed labor force, and 23.9% of its STEM workers in 2016. 24 .0%Population Immigrant shares of the... 31 .5%Employed labor force 31 .6%Working-age population* 23 .9%STEM workers** * Working-age refers to people ages 16-64 years old . ** STEM refers to Science, Technology, Engineering, and Math fields . Immigrants play a critical role in several key industries in the city. This includes:70+30P69.6%Share of workers in the industry who were foreign-born in 2016 Construction 43.5% 41.1% 37.9% 27.2% 41.1% 37.9% 27.2% General Services5 Manufacturing Accommodation & Recreation Professional services6 24%Share of population I n 1982, at age 31, Walter Nguyen made his fifth and final attempt to escape Vietnam . Prior attempts had landed him in jail, but he did not have a choice . Food was scarce, and because he had worked as a press officer for U .S .-backed South Vietnamese forces, the communist government had a target on his back . “I was constantly being spied on,” says Nguyen . “So I looked for a way to escape, and find freedom, and rebuild my life .” America gave him that opportunity . In Wisconsin, where he first settled, Nguyen became a bilingual social worker and earned a master’s degree in social work . He later received a PhD, as well as a distinguished alumni award, from the University of Texas at Arlington . Nguyen had moved to Texas in 1989 to be close to his fiancé and brother . He got a job as a program manager at the East Dallas Counseling Center, and in 1993 was promoted to executive director . During his tenure, he launched an ambitious expansion in which he started a refugee health and emergency services program; added a 30-bed shelter for domestic violence victims; formed an anti-human trafficking initiative; and created a counseling department and a legal unit to guide people through family and immigration court . Today, the organization is called Mosaic Family Services and serves over 15,000 north Texans, a quarter of whom were born in the United States . “I consider what I do social entrepreneurship,” he says . “I apply a business model toward social services, promoting results, effectiveness, and efficiency . But our bottom line is people, not money .” Nguyen attributes the organization’s success to his background as a refugee . “Services are most effective when the provider understands the culture and the language of the client,” he says . “They instantly gain trust if they know you’ve shared their experience .” His background as a refugee also taught him perseverance . “If you can overcome the initial adjustment and lack of resources to obtain an education—that’s powerful . The American dream is always there,” he says . “As long as you work hard and are helpful to others .” ED, Mosaic Family Services | 37 New Americans in Dallas 4 Construction Workers . . . . . . . . . .29 .7% General services8 . . . . . . . . . . . . . . .21 .1% Professional services9 . . . . . . . . . . . 15 .9% Transportation . . . . . . . . . . . . . . . . . .7 .7% Retail Trade . . . . . . . . . . . . . . . . . . . . .6 .7% Other . . . . . . . . . . . . . . . . . . . . . . . . . .18 .9% LABOR FORCE GROWTH CONT. ENTREPRENEURSHIP 14,617local manufacturing jobs that would have otherwise vanished or moved elsewhere.7 Because of the role immigrants play in the workforce helping companies keep jobs on U.S. soil, we estimate that, by 2016, immigrants living in the city had helped create or preserve... Dallas Businesses, 2012 Sales Revenue, 2012 Number of Paid Employees, 201210 African American-owned $1.3B 7,928 Asian-owned $5B 27,050 Hispanic-owned $3.5B 20,278 32.2% Immigrant share of entrepreneurs 24.0% Immigrant share of the population Despite making up 24% of the overall population, immigrants represented 32.2% of the entrepreneurs in Dallas in 2016. Immigrant entrepreneurs tended to concentrate in these industries in 2016: About 20,405 immigrants worked for their own businesses in 2016, generating $495.9M in business income. 30+21+16+8+7+18 1 3 2 4 5 6 38 | 5 New Americans in Dallas Dallas Businesses, 2012 Sales Revenue, 2012 Number of Paid Employees, 201210 African American-owned $1.3B 7,928 Asian-owned $5B 27,050 Hispanic-owned $3.5B 20,278 EDUCATION local jobs and spent . . . 1,962 3,179 students who were enrolled in Dallas colleges and universities during the fall of 2015 were temporary resi- dents.11 International students supported... $150.3M in the 2016-2017 academic year .12 SPOTLIGHT ON Immigrants are less likely to have a bachelor’s degree or higher. 13.6% of U .S .-born 7.4% of Immigrants Share of population over age 25 with an advanced degree: Advanced degree 38.8% of U .S .-born 18.2% of Immigrants Share of population over age 25 with a bachelors degree or higher: Bachelor’s degree or higher Alex Medrano A lex Medrano was 11 years old when his mother brought him to the United States from Mexico in search of a better education, an opportunity Medrano fast took advantage of . By his sophomore year of high school, he was taking college classes, and by graduation he had 62 hours of college credit and was tutoring peers in algebra and trigonometry . His mother, who had fled a violent husband, single-handedly supported her two children by cleaning houses . Medrano’s goal was to become an electrical engineer . He enrolled at the University of Texas at Arlington after high school, but had to drop out due to financial barriers . To help fund college and support his family, Medrano began working as a teller at Wells Fargo . As he advanced—he became a personal banker after just eight months— he developed a new focus: helping people in the community improve their financial situation . “One of my biggest passions is helping people who don’t realize they can do so much with their lives, to buy a house or build credit,” Medrano says . “I love getting them through the process . It’s amazing how much you can change a life .” Medrano—who has since re-enrolled in school—now advises small businesses and entrepreneurs on launching their projects . He also volunteers financial planning advice to members of the Hispanic Contractor’s Association and the Dallas Chamber of Commerce . “Since 2014, I’ve been creating a little bit of a career,” he says . Medrano is now leaning toward more community-oriented work . “I volunteer at a food pantry and attend city council meetings to share updates with my customers . I would love to work for a nonprofit and educate people in need about their finances .” Unfortunately, Medrano’s ability to continue offering his financial services could be at risk . Medrano is one of more than 226,000 Texans who have Deferred Action for Childhood Arrivals (DACA), a program that provides qualifying undocumented immigrants brought here as children with temporary legal status but that is slated to end in March 2018 . “We want to develop ourselves here and make this country better,” Medrano says . “If we lose that opportunity, there’s a lot of potential lost .” The American dream is always there,” he says . “As long as you work hard and are helpful to others .” Financial Planning Advisor | 39 New Americans in Dallas 6 NATURALIZATION Share of immigrants in Dallas who were naturalized citizens in 2016. This constituted 85,098 people. 26.8% Naturalized Share among those who were not citizens but potentially eligible for naturalization in 2016. This constituted 47,288 people. 20.3% Potentially eligible HOUSING WEALTH 43.6% of the U.S.-born owned their own homes. In 2016,42.2% of immigrants in Dallas owned their own homes, compared with57.2% who rented. The total property value of immigrant households was$11.2B. Their total annual rent was $734.1M. 42+57+1RImmigrant households Homeowners No response Renters 40 | 7 New Americans in Dallas In 2015, 92.6% of immigrant households in Dallas had bank accounts, compared with 94.9% of U.S.-born households. FOREIGN-BORN Checking Only Both Checking and SavingsSavings OnlyNo Checking or Savings 7 .4% 94 .9%92 .6% 2 .4% 25 .7%72 .0% BANKING13 Main methods of paying bills as cited by immigrants, 201537+30+12+21B37.4% - Electronic Payment via Bank 29.6% - Personal Check 11.6% - Debit Card 1 3 2 In 2015, these shares reported having applied for a bank loan or line of credit the previous year: 26.9% of immigrant households stated that their monthly income hassmall variation month to month. U.S.-born 20 .0% Foreign-born 14 .7% The income of immigrant households in the city remains relatively stable. In 2015,70.2% of immigrant households reported their income remained roughly the same each month. | 41 New Americans in Dallas 8 CONTRIBUTIONS OF THE DACA-ELIGIBLE Amount earned by DACA- eligible households in 2016: $859.7M $89M went to federal taxes. Given their income, DACA-eligible immigrants contributed significantly to state and local taxes, including property, sales, and excise taxes levied by state or municipal governments. Leaving them with $698.6M in spending power. $72.0M went to state and local taxes. About 10.7% of the DACA-eligible population ages 25 and above had at least a bachelor’s degree in the metro area. The DACA-eligible population with a bachelor’s degree or above tend to concentrate in these industries in the metro area: 18+13+10+59 1 3 2 Educational Services . . . . . . . . . . . .17 .9% Finance and Insurance . . . . . . . . . . .13 .0% Professional Services14 . . . . . . . . . .10 .4% Other industries 58.7% Top 5 Industries for the DACA-Eligible in the Dallas Metro Area: 22.3% 16.0% 13.8% 6.9% 6.8% Tourism, Hospitality, & Recreation Retail Trade Construction Administrative Support Healthcare & Social Assistance Number of DACA-eligible living in the Dallas metro area in 2016 Employment rate of DACA-eligible living in the Dallas metro area in 2016 63,396 93.4% 42 | 9 New Americans in Dallas 22+19+16+10+10+23 The median household income of the refugees in the city was $39,000 in 2016. 9 REFUGEES 16+84P16.1%Share of refugees in Dallas with a bachelor’s degree or higher, 2016 6+94P5.5%Share of refugees in Dallas with an advanced degree, 2016 Refugees in Dallas tend to concentrate in these industries in the city: Retail . . . . . . . . . . . . . . . . . . . . . . . . . .21 .6% Manufacturing . . . . . . . . . . . . . . . . . .18 .9% Healthcare . . . . . . . . . . . . . . . . . . . . .16 .4% Transportation . . . . . . . . . . . . . . . . .10 .4% Professional Services16 . . . . . . . . . .9 .6% 1 3 2 Other industries 23.1% REFUGEE WORKERS 58.7%Share of refugees in Dallas who were naturalized citizens in 2016. 5.2% Share of immigrants in Dallas who were likely refugees in 2016.15 This constituted 16,609 refugees. 4 5 Retail 21.6% | 43 New Americans in Dallas 10 1 Unless otherwise specified, data comes from 1-year samples of the American Community Survey from 2011 and 2016 and figures refer to the City of Dallas. 2 U.S. Congressional Budget Office. 2016. “The Distribution of Household Income and Federal Taxes, 2013.” 3 Institute on Taxation and Economic Policy. 2015. “Who Pays? A Distributional Analysis of the Tax Systems in All Fifty States.” 4 Estimates are based on federal tax rates from the U.S. Congressional Budget Office, and state and local tax rates from the Institute on Taxation and Economic Policy. 5 General services include personal services (e.g. laundry services, barber shops, and repair and maintenance), religious organizations, social services, and labor unions. 6 Professional services: Most of these industries include professions that require a degree or a license, such as legal services, accounting, scientific research, consulting services, etc. 7 Vigdor, Jacob. 2013. “Immigration and the Revival of American Cities: From Preserving Manufacturing Jobs to Strengthening the Housing Market.” New American Economy. This report found that every 1,000 immigrants living in a county in 2010 created or preserved 46 manufacturing jobs there. We apply that multiplier to the size of the foreign-born population in Dallas in 2016 to produce our estimates. Jobs in the manufacturing sector are defined by the North American Industry Classification System, which includes a wide range of industries such as food, machinery and electronic manufacturing. 8 General services include personal services (e.g. laundry services, barber shops, and repair and maintenance), religious organizations, social services, and labor unions. 9 Professional services: Most of these industries include professions that require a degree or a license, such as legal services, accounting, scientific research, consulting services, etc. 10 2012 Survey of Business Owners, U.S. Census Bureau 11 Data on total student enrollment in the county is derived from the Integrated Postsecondary Education Data System maintained by the National Center for Education Statistics. Temporary residents refer to people who are not U.S. citizens or permanent residents. Schools counted in the City of Dallas analysis include the Art Institute of Dallas; Dallas Baptist University; Dallas Christian College; Dallas Community College District, El Centro College; Dallas Community College District, Mountain View College; Dallas Community College District, Richland College; Dallas Theological Seminary; Parker University, College of Chiropractic; Paul Quinn College; Southern Methodist University; The University of Texas Southwestern Medical Center; and Wade College. 12 Economic data is derived from the International Student Economic Value Tool maintained by NAFSA, the association of international educators. 13 2015 Current Population Survey, U.S. Census Bureau 14 Professional services: Most of these industries include professions that require a degree or a license, such as legal services, accounting, scientific research, consulting services, etc. 15 New American Economy. 2017. “From Struggle to Resilience: The Economic Impact of Refugees in America.” 16 Professional services: Most of these industries include professions that require a degree or a license, such as legal services, accounting, scientific research, consulting services, etc. ENDNOTES 44 | Date: December 21, 2018 Report No. 2018-193 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Surveillance Rating for Series 2017 Utility System Revenue Bonds by Fitch Ratings. BACKGROUND: Over the past few weeks, staff has collaborated with Fitch Ratings on a surveillance rating of the City’s Series 2017 Utility System Revenue Bonds. This specific series of revenue bonds are the only outstanding revenue bonds that the City currently has on its books and were issued on January 19, 2017 to fund the Denton Energy Center. As of December 21, 2018, the City has $330,704,750 in outstanding principal and interest remaining with final maturity being December 1, 2037. Fitch has affirmed (maintained) the same “A+” rating with Stable Outlook from the initial offering (Attachment 1). DISCUSSION Fitch Ratings, as do other rating agencies, routinely conduct surveillance ratings on outstanding bonds they rate in conjunction with an initial offering. Formal surveillance ratings, like this one, take place every few years and result in a public release on the status of the rating. While the interest the City pays on outstanding bonds will not be impacted by the surveillance rating, it could have an impact on the trading of those bonds in the secondary market. Additionally, a changed rating could also impact the City if new bonds, of similar type, are issued in the future. There are currently no plans to issue additional revenue bonds since any debt issued for the City’s utilities (Electric, Water and Wastewater) have been issued as Certificates of Obligation (COs). This has been the City’s practice since 2010 in order to take advantage of interest savings from the COs higher rating of AA+ (Fitch and Standard & Poor’s). For your information, staff has also attached the Informal Staff Report (ISR) dated January 20, 2017 (Attachment 2) that includes details regarding the initial offering of the Series 2017 Utility System Revenue Bonds. The ISR includes the initial ratings reports from both Fitch and Standard & Poor’s. Please do not hesitate to contact me if you have any questions. ATTACHMENTS 1. Fitch Surveillance Ratings Report 2. Informal Staff Report dated January 20, 2017 STAFF CONTACT: Antonio Puente, Jr., Chief Financial Officer (940)-349-7283 Antonio.Puente@cityofdenton.com FITCH AFFIRMS DENTON, TX'S UTILITY SYSTEM REV BONDS AT 'A+'; OUTLOOK STABLE Fitch Ratings-Austin-19 December 2018: Fitch Ratings has affirmed the 'A+' rating on the following obligation issued by the City of Denton on behalf of its combined utility system: --$214,890,000 utility system revenue bonds series 2017. The Rating Outlook is Stable. SECURITY The bonds are payable from the net revenues of the combined utility system, including the water, wastewater, and electric light and power systems. KEY RATING DRIVERS COMBINED UTILITY SYSTEM: The city of Denton owns and operates a combined utility system, providing retail electric, water, and wastewater services to the city and surrounding areas. The service area is characterized by manageable population growth, low unemployment rates, and income levels modestly below the state average. TRANSITIONING POWER SUPPLY: The electric system is undertaking a transition from its historical reliance on coal and market purchases to 100% renewable energy by the end of fiscal 2020, supported by the construction and operation of the 225 MW natural-gas fired Denton Energy Center (DEC). The increased operational risk is mitigated by reduced exposure to market pricing and volatility. ELEVATED DEBT LEVELS: All in debt levels are elevated for the rating with net adjusted debt-to-adjusted FADS at 7.2x in fiscal 2018 (unaudited), improved from 10.2x in fiscal 2017. The improvement reflects profitability growth and a relatively rapid amortization period for the system's revenue bonds. STRONG LIQUIDITY METRICS: Liquidity levels are healthy with approximately 382 days cash on hand at the end of fiscal 2017, and should remain healthy, offsetting to some degree the combined system's elevated debt burden. DEMONSTRATED RATE FLEXIBILITY: The diversity of revenue from essential electric, water, and wastewater services is a credit strength, although the electric system is the largest contributor to overall financial performance. Utility rates can be modified at the discretion of the city council, which has regularly increased rates over the past several years. RATING SENSITIVITIES REDUCTION IN LEVERAGE: The current rating reflects Fitch's expectation that the city of Denton, Texas' utility system will increase funds available for debt service and reduce overall leverage as projected through consistent rate increases, higher electric sales and improved operating margins. Failure to achieve the projected reduction in leverage would likely pressure the rating. CREDIT PROFILE The city of Denton, Texas is located approximately 35 miles north of the cities of Dallas and Fort Worth and serves as a quickly growing suburb to the greater metropolitan area. Denton provides electric, water, and wastewater services through city-owned utilities. The electric system is the largest of the combined utilities and accounts for the majority of the revenues, followed by the water and wastewater systems. TRANSITIONING POWER SUPPLY Denton's electric system is undergoing a significant change in its power supply and operational profile. The system has historically relied on market purchases and its share of Gibbons Creek Steam Electric Station, a coal-fired power plant owned by the Texas Municipal Power Agency (TMPA), to provide the bulk of the system's power supply. However, the city approved a resolution on Feb. 6, 2018, to adopt its "Renewable Resource Plan" to meet the future needs of its electric customers with 100% renewable energy as early as 2020 and rescinding Resolution No. R2016-014 (Renewable Denton Plan). City projections indicate that renewable resources will be in place to provide customer needs by the end of fiscal 2020, supported by the Denton Energy Center (DEC), a directly owned and newly built 225 MW natural-gas fired peaking plant. Fitch believes there are some additional operational risks with the transition, as the system has historically not owned or operated generation resources. However, these risks are offset to some degree by the contracting of renewable energy resources at generally fixed rates for the bulk of the system's power supply, decreasing the system's exposure to potentially volatile market pricing. FINANCIAL PERFORMANCE The financial performance of the combined utility system is largely driven by the electric system, which accounted for an average of 44% of the combined system's net revenues available from fiscal 2012 - 2017. The water system and the wastewater system contributed approximately 34% and 22%, respectively. The financial metrics of the combined utility system are relatively weak but adequate for the rating. Fiscal 2017 debt service coverage and coverage of full obligations was 1.65x and 1.13x, respectively. Preliminary and unaudited financial reports for fiscal 2018 reflect Fitch-calculated coverage metrics of approximately 1.64x and 1.21, respectively. Liquidity levels for the combined utility system are healthy with approximately $172 million in unrestricted cash and investments, or 382 days cash on hand, at the end of fiscal 2017. These reflect an increase from fiscal 2016 due in part to the release of certain bond funds following recent refundings. A portion of the increased reserves are expected to be spent for capital projects in fiscal 2019 through 2022. Fitch expects Denton's financial performance to benefit from the cessation of TMPA obligations, which ran through fiscal 2018. The decrease in operating expenses is projected to contribute to margins, coverage and liquidity over the next five years. ELEVATED DEBT PROFILE The senior lien revenue bonds comprise approximately 25% of the combined utility system's total outstanding debt in 2017. The majority of the system's debt is in the form of General Obligation (GO) bonds and Certificates of Obligation (CO) that are issued and secured by the general government, but actually paid from the underlying utility systems. All of the outstanding debt is fixed rate. Fitch's coverage and debt calculations include the GO and CO bonds and the respective debt service paid by the utility systems. The combined utility system's debt metrics are elevated, at 10.2x net adjusted debt-to-adjusted FADS in fiscal 2017, improving to 7.2x in fiscal 2018 (unaudited). This rating incorporates the combined utility system's plans for around $364 million in additional debt over the next five years. The relatively high debt load reflects the systems' significant investment in generation, transmission, water and wastewater system needs. The relatively quick repayment period, including the 20 year amortization rate on the revenue bonds, together with improved operating earnings are expected to reduce the elevated net adjusted debt-to-adjusted FADS ratio over the next five years and to restore future debt capacity, if needed. Contact: Primary Analyst Rebecca Meyer Director +1-512-215-3733 Fitch Ratings, Inc. 111 Congress Ave., Suite 2010 Austin, TX 78701 Secondary Analyst Matthew Reilly, CFA Director +1-415-732-7572 Tertiary Analyst Tim Morilla Associate Director +1-512-813-5702 Committee Chairperson Dennis Pidherny Managing Director +1-212-908-0738 Media Relations: Sandro Scenga, New York, Tel: +1 212 908 0278, Email: sandro.scenga@thefitchgroup.com. Additional information is available on www.fitchratings.com Applicable Criteria Rating Criteria for Public-Sector, Revenue-Supported Debt (pub. 26 Feb 2018) https://www.fitchratings.com/site/re/10020113 U.S. Public Power Rating Criteria (pub. 18 May 2015) https://www.fitchratings.com/site/re/864007 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://WWW.FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. 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While certain of the NRSRO's credit rating subsidiaries are listed on Item 3 of Form NRSRO and as such are authorized to issue credit ratings on behalf of the NRSRO (see https://www.fitchratings.com/site/regulatory), other credit rating subsidiaries are not listed on Form NRSRO (the "non-NRSROs") and therefore credit ratings issued by those subsidiaries are not issued on behalf of the NRSRO. However, non-NRSRO personnel may participate in determining credit ratings issued by or on behalf of the NRSRO. 12ae05bc12ae05bc Date: January 20, 2017 Report No. 2017-007 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: City’s sale of Utility System Revenue Bonds, Series 2017 BACKGROUND: The purpose of this report is to provide the City Council with details regarding the sale of the Utility System Revenue Bonds, Series 2017 (hereafter, the “Bonds”) authorized on June 21, 2016 (Ordinance No. 2016-187). The Bonds were authorized for a maximum principal amount of $265 million for the purpose of constructing the Denton Energy Center, a quick start peak power generation facility. The Bonds are secured and payable only from revenues of the City’s Utility System, which is comprised by the Electric, Water and Wastewater Funds. DISCUSSION: On January 19, 2017, the City along with their financial advisor, First Southwest Company, conducted a negotiated sale of the Bonds. The underwriting firms were: JP Morgan Securities LLC, Citigroup Global Markets Inc., and Robert W. Baird & Co. Inc. The delivery date of proceeds will be January 27, 2017. As approved by the City Council on June 21, 2016, the Bonds were authorized to be issued provided they met the following parameters: 1. The maximum principal amount of bonds shall not exceed $265,000,000; 2. The final stated maturity shall not 20 years from the date of issuance; 3. The Bonds shall bear interest at a fixed rate, and the net effective interest rate on the Bonds shall not exceed 4.000%; 4. The sale must occur on or prior to June 21, 2017; 5. The Bonds shall be rated by a Rating Agency for municipal securities in one of the four highest categories for long-term obligations. Staff is pleased to inform the Council that the above criteria were met. The amount of bond proceeds was $247,157,116 at an all-in true interest cost of 3.53%. In addition, these bonds have been rated as AA- by Standard and Poor’s and A+ by Fitch. Staff would note that these ratings are similar to ratings previously issued by Standard and Poor’s of AA- and Moodys of A1 for the City’s Utility System Revenue Bonds. Date: January 20, 2017 Report No. 2017-007 As a reconciliation of amounts originally estimated and communicated to the Council on June 14, 2016, the table below reflects a side-by-side comparison to final sale proceeds: Use Category Estimated Proceeds Actual Proceeds Project Cost $240,000,000 $225,000,000 Capitalized Interest $ 23,000,000 $ 20,598,306 Issuance Costs $ 2,000,000 $ 1,558,810 Grand Total $265,000,000 $247,157,116 Attached are the final debt schedules and ratings reports. Please do not hesitate to contact me if you have any further questions on the results of the City’s most recent bond sale. ATTACHMENTS: 1. Final Debt Schedule 2. Fitch Rating Report 3. Standard & Poor’s Rating Report STAFF CONTACT: Chuck Springer, Director of Finance (940)-349-8260 Charles.Springer@cityofdenton.com Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 1 SOURCES AND USES OF FUNDS City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Dated Date 01/27/2017 Delivery Date 01/27/2017 Sources: Bond Proceeds: Par Amount 214,890,000.00 Premium 32,267,116.00 247,157,116.00 Uses: Project Fund Deposits: Project Fund 225,000,000.00 Other Fund Deposits: Capitalized Interest Fund 20,598,305.56 Delivery Date Expenses: Cost of Issuance 565,992.47 Underwriter's Discount 992,817.97 1,558,810.44 247,157,116.00 Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 2 BOND SUMMARY STATISTICS City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Dated Date 01/27/2017 Delivery Date 01/27/2017 First Coupon 06/01/2017 Last Maturity 12/01/2036 Arbitrage Yield 2.996065% True Interest Cost (TIC)3.503576% Net Interest Cost (NIC)3.831282% All-In TIC 3.527917% Average Coupon 4.980660% Average Life (years)12.662 Weighted Average Maturity (years)12.641 Duration of Issue (years)9.627 Par Amount 214,890,000.00 Bond Proceeds 247,157,116.00 Total Interest 135,522,638.89 Net Interest 104,248,340.86 Bond Years from Dated Date 2,720,977,666.67 Bond Years from Delivery Date 2,720,977,666.67 Total Debt Service 350,412,638.89 Maximum Annual Debt Service 18,077,750.00 Average Annual Debt Service 17,657,971.72 Underwriter's Fees (per $1000) Average Takedown 3.864477 Other Fee 0.755645 Total Underwriter's Discount 4.620122 Bid Price 114.553631 Par Average Average PV of 1 bp Bond Component Value Price Coupon Life change Serial Bond 214,890,000.00 115.016 4.981% 12.662 177,080.95 214,890,000.00 12.662 177,080.95 All-In Arbitrage TIC TIC Yield Par Value 214,890,000.00 214,890,000.00 214,890,000.00 + Accrued Interest + Premium (Discount)32,267,116.00 32,267,116.00 32,267,116.00 - Underwriter's Discount -992,817.97 -992,817.97 - Cost of Issuance Expense -565,992.47 - Other Amounts Target Value 246,164,298.03 245,598,305.56 247,157,116.00 Target Date 01/27/2017 01/27/2017 01/27/2017 Yield 3.503576%3.527917%2.996065% Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 3 BOND SUMMARY STATISTICS City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 4 NET DEBT SERVICE City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Period Total Capitalized Net Ending Principal Coupon Interest Debt Service Interest Fund Debt Service 09/30/2017 3,680,388.89 3,680,388.89 3,680,388.89 09/30/2018 10,685,000.00 10,685,000.00 10,685,000.00 09/30/2019 10,685,000.00 10,685,000.00 6,232,916.67 4,452,083.33 09/30/2020 7,580,000 5.000% 10,495,500.00 18,075,500.00 18,075,500.00 09/30/2021 7,970,000 5.000% 10,106,750.00 18,076,750.00 18,076,750.00 09/30/2022 8,375,000 5.000% 9,698,125.00 18,073,125.00 18,073,125.00 09/30/2023 8,805,000 5.000% 9,268,625.00 18,073,625.00 18,073,625.00 09/30/2024 9,260,000 5.000% 8,817,000.00 18,077,000.00 18,077,000.00 09/30/2025 9,735,000 5.000% 8,342,125.00 18,077,125.00 18,077,125.00 09/30/2026 10,200,000 ** % 7,873,500.00 18,073,500.00 18,073,500.00 09/30/2027 10,695,000 5.000% 7,380,875.00 18,075,875.00 18,075,875.00 09/30/2028 11,245,000 5.000% 6,832,375.00 18,077,375.00 18,077,375.00 09/30/2029 11,820,000 5.000% 6,255,750.00 18,075,750.00 18,075,750.00 09/30/2030 12,425,000 5.000% 5,649,625.00 18,074,625.00 18,074,625.00 09/30/2031 13,065,000 5.000% 5,012,375.00 18,077,375.00 18,077,375.00 09/30/2032 13,735,000 5.000% 4,342,375.00 18,077,375.00 18,077,375.00 09/30/2033 14,435,000 5.000% 3,638,125.00 18,073,125.00 18,073,125.00 09/30/2034 15,180,000 5.000% 2,897,750.00 18,077,750.00 18,077,750.00 09/30/2035 15,955,000 5.000% 2,119,375.00 18,074,375.00 18,074,375.00 09/30/2036 16,775,000 5.000% 1,301,125.00 18,076,125.00 18,076,125.00 09/30/2037 17,635,000 5.000% 440,875.00 18,075,875.00 18,075,875.00 214,890,000 135,522,638.89 350,412,638.89 20,598,305.56 329,814,333.33 Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 5 NET DEBT SERVICE City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Total Capitalized Net Annual Date Principal Coupon Interest Debt Service Interest Fund Debt Service Net D/S 06/01/2017 3,680,388.89 3,680,388.89 3,680,388.89 09/30/2017 12/01/2017 5,342,500.00 5,342,500.00 5,342,500.00 06/01/2018 5,342,500.00 5,342,500.00 5,342,500.00 09/30/2018 12/01/2018 5,342,500.00 5,342,500.00 5,342,500.00 06/01/2019 5,342,500.00 5,342,500.00 890,416.67 4,452,083.33 09/30/2019 4,452,083.33 12/01/2019 7,580,000 5.000% 5,342,500.00 12,922,500.00 12,922,500.00 06/01/2020 5,153,000.00 5,153,000.00 5,153,000.00 09/30/2020 18,075,500.00 12/01/2020 7,970,000 5.000% 5,153,000.00 13,123,000.00 13,123,000.00 06/01/2021 4,953,750.00 4,953,750.00 4,953,750.00 09/30/2021 18,076,750.00 12/01/2021 8,375,000 5.000% 4,953,750.00 13,328,750.00 13,328,750.00 06/01/2022 4,744,375.00 4,744,375.00 4,744,375.00 09/30/2022 18,073,125.00 12/01/2022 8,805,000 5.000% 4,744,375.00 13,549,375.00 13,549,375.00 06/01/2023 4,524,250.00 4,524,250.00 4,524,250.00 09/30/2023 18,073,625.00 12/01/2023 9,260,000 5.000% 4,524,250.00 13,784,250.00 13,784,250.00 06/01/2024 4,292,750.00 4,292,750.00 4,292,750.00 09/30/2024 18,077,000.00 12/01/2024 9,735,000 5.000% 4,292,750.00 14,027,750.00 14,027,750.00 06/01/2025 4,049,375.00 4,049,375.00 4,049,375.00 09/30/2025 18,077,125.00 12/01/2025 10,200,000 ** % 4,049,375.00 14,249,375.00 14,249,375.00 06/01/2026 3,824,125.00 3,824,125.00 3,824,125.00 09/30/2026 18,073,500.00 12/01/2026 10,695,000 5.000% 3,824,125.00 14,519,125.00 14,519,125.00 06/01/2027 3,556,750.00 3,556,750.00 3,556,750.00 09/30/2027 18,075,875.00 12/01/2027 11,245,000 5.000% 3,556,750.00 14,801,750.00 14,801,750.00 06/01/2028 3,275,625.00 3,275,625.00 3,275,625.00 09/30/2028 18,077,375.00 12/01/2028 11,820,000 5.000% 3,275,625.00 15,095,625.00 15,095,625.00 06/01/2029 2,980,125.00 2,980,125.00 2,980,125.00 09/30/2029 18,075,750.00 12/01/2029 12,425,000 5.000% 2,980,125.00 15,405,125.00 15,405,125.00 06/01/2030 2,669,500.00 2,669,500.00 2,669,500.00 09/30/2030 18,074,625.00 12/01/2030 13,065,000 5.000% 2,669,500.00 15,734,500.00 15,734,500.00 06/01/2031 2,342,875.00 2,342,875.00 2,342,875.00 09/30/2031 18,077,375.00 12/01/2031 13,735,000 5.000% 2,342,875.00 16,077,875.00 16,077,875.00 06/01/2032 1,999,500.00 1,999,500.00 1,999,500.00 09/30/2032 18,077,375.00 12/01/2032 14,435,000 5.000% 1,999,500.00 16,434,500.00 16,434,500.00 06/01/2033 1,638,625.00 1,638,625.00 1,638,625.00 09/30/2033 18,073,125.00 12/01/2033 15,180,000 5.000% 1,638,625.00 16,818,625.00 16,818,625.00 06/01/2034 1,259,125.00 1,259,125.00 1,259,125.00 09/30/2034 18,077,750.00 12/01/2034 15,955,000 5.000% 1,259,125.00 17,214,125.00 17,214,125.00 06/01/2035 860,250.00 860,250.00 860,250.00 Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 6 NET DEBT SERVICE City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Total Capitalized Net Annual Date Principal Coupon Interest Debt Service Interest Fund Debt Service Net D/S 09/30/2035 18,074,375.00 12/01/2035 16,775,000 5.000% 860,250.00 17,635,250.00 17,635,250.00 06/01/2036 440,875.00 440,875.00 440,875.00 09/30/2036 18,076,125.00 12/01/2036 17,635,000 5.000% 440,875.00 18,075,875.00 18,075,875.00 09/30/2037 18,075,875.00 214,890,000 135,522,638.89 350,412,638.89 20,598,305.56 329,814,333.33 329,814,333.33 Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 7 BOND PRICING City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Maturity Yield to Call Call Premium Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) Principal Cost Takedown Serial Bond: 12/01/2019 7,580,000 5.000% 1.480% 109.767 740,338.60 8,320,338.60 2.500 12/01/2020 7,970,000 5.000% 1.680% 112.307 980,867.90 8,950,867.90 2.500 12/01/2021 8,375,000 5.000% 1.880% 114.379 1,204,241.25 9,579,241.25 2.500 12/01/2022 8,805,000 5.000% 2.090% 115.928 1,402,460.40 10,207,460.40 2.500 12/01/2023 9,260,000 5.000% 2.270% 117.212 1,593,831.20 10,853,831.20 3.750 12/01/2024 9,735,000 5.000% 2.450% 118.094 1,761,450.90 11,496,450.90 3.750 12/01/2025 3,400,000 3.250% 2.630% 104.861 165,274.00 3,565,274.00 3.750 12/01/2025 6,800,000 5.000% 2.630% 118.590 1,264,120.00 8,064,120.00 3.750 12/01/2026 10,695,000 5.000% 2.760% 119.190 2,052,370.50 12,747,370.50 3.750 12/01/2027 11,245,000 5.000% 2.860% 118.244 C 3.015% 12/01/2026 100.000 2,051,537.80 13,296,537.80 3.750 12/01/2028 11,820,000 5.000% 2.970% 117.214 C 3.238% 12/01/2026 100.000 2,034,694.80 13,854,694.80 4.250 12/01/2029 12,425,000 5.000% 3.080% 116.194 C 3.430% 12/01/2026 100.000 2,012,104.50 14,437,104.50 4.250 12/01/2030 13,065,000 5.000% 3.130% 115.734 C 3.551% 12/01/2026 100.000 2,055,647.10 15,120,647.10 4.250 12/01/2031 13,735,000 5.000% 3.190% 115.184 C 3.664% 12/01/2026 100.000 2,085,522.40 15,820,522.40 4.250 12/01/2032 14,435,000 5.000% 3.250% 114.638 C 3.765% 12/01/2026 100.000 2,112,995.30 16,547,995.30 4.250 12/01/2033 15,180,000 5.000% 3.310% 114.095 C 3.854% 12/01/2026 100.000 2,139,621.00 17,319,621.00 4.250 12/01/2034 15,955,000 5.000% 3.370% 113.555 C 3.935% 12/01/2026 100.000 2,162,700.25 18,117,700.25 4.250 12/01/2035 16,775,000 5.000% 3.420% 113.107 C 4.002% 12/01/2026 100.000 2,198,699.25 18,973,699.25 4.250 12/01/2036 17,635,000 5.000% 3.460% 112.751 C 4.058% 12/01/2026 100.000 2,248,638.85 19,883,638.85 4.250 214,890,000 32,267,116.00 247,157,116.00 Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 8 BOND PRICING City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Dated Date 01/27/2017 Delivery Date 01/27/2017 First Coupon 06/01/2017 Par Amount 214,890,000.00 Premium 32,267,116.00 Production 247,157,116.00 115.015643% Underwriter's Discount -992,817.97 -0.462012% Purchase Price 246,164,298.03 114.553631% Accrued Interest Net Proceeds 246,164,298.03 Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 9 AVERAGE TAKEDOWN City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Dated Date 01/27/2017 Delivery Date 01/27/2017 Maturity Par Takedown Takedown Bond Component Date Amount $/Bond Amount Serial Bond: 12/01/2019 7,580,000 2.5000 18,950.00 12/01/2020 7,970,000 2.5000 19,925.00 12/01/2021 8,375,000 2.5000 20,937.50 12/01/2022 8,805,000 2.5000 22,012.50 12/01/2023 9,260,000 3.7500 34,725.00 12/01/2024 9,735,000 3.7500 36,506.25 12/01/2025 3,400,000 3.7500 12,750.00 12/01/2025 6,800,000 3.7500 25,500.00 12/01/2026 10,695,000 3.7500 40,106.25 12/01/2027 11,245,000 3.7500 42,168.75 12/01/2028 11,820,000 4.2500 50,235.00 12/01/2029 12,425,000 4.2500 52,806.25 12/01/2030 13,065,000 4.2500 55,526.25 12/01/2031 13,735,000 4.2500 58,373.75 12/01/2032 14,435,000 4.2500 61,348.75 12/01/2033 15,180,000 4.2500 64,515.00 12/01/2034 15,955,000 4.2500 67,808.75 12/01/2035 16,775,000 4.2500 71,293.75 12/01/2036 17,635,000 4.2500 74,948.75 214,890,000 3.8645 830,437.50 Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 10 UNDERWRITER'S DISCOUNT City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Underwriter's Discount $/1000 Amount Average Takedown 3.86448 830,437.50 Underwriters' Counsel 0.40000 85,956.00 Management Fee 0.25000 53,722.50 CUSIP 0.00398 855.50 DALCOMP (Bookrunner & Wire Fees)0.06930 14,892.36 Day Loan 0.02864 6,154.11 DTC 0.00372 800.00 4.62012 992,817.97 Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 11 COST OF ISSUANCE City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Cost of Issuance $/1000 Amount Financial Advisor Fee 0.89542 192,417.50 Bond Counsel Fee 0.94188 202,401.00 Paying Agent Acceptance Fee 0.00163 350.00 Offical Statement Printing & Distribution 0.02792 6,000.00 Fitch Rating Fee 0.39555 85,000.00 S&P Rating Fee 0.31900 68,550.00 Attorney General Fee 0.04421 9,500.00 Other 0.00826 1,773.97 2.63387 565,992.47 Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 12 FORM 8038 STATISTICS City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Dated Date 01/27/2017 Delivery Date 01/27/2017 Redemption Bond Component Date Principal Coupon Price Issue Price at Maturity Serial Bond: 12/01/2019 7,580,000.00 5.000% 109.767 8,320,338.60 7,580,000.00 12/01/2020 7,970,000.00 5.000% 112.307 8,950,867.90 7,970,000.00 12/01/2021 8,375,000.00 5.000% 114.379 9,579,241.25 8,375,000.00 12/01/2022 8,805,000.00 5.000% 115.928 10,207,460.40 8,805,000.00 12/01/2023 9,260,000.00 5.000% 117.212 10,853,831.20 9,260,000.00 12/01/2024 9,735,000.00 5.000% 118.094 11,496,450.90 9,735,000.00 12/01/2025 3,400,000.00 3.250% 104.861 3,565,274.00 3,400,000.00 12/01/2025 6,800,000.00 5.000% 118.590 8,064,120.00 6,800,000.00 12/01/2026 10,695,000.00 5.000% 119.190 12,747,370.50 10,695,000.00 12/01/2027 11,245,000.00 5.000% 118.244 13,296,537.80 11,245,000.00 12/01/2028 11,820,000.00 5.000% 117.214 13,854,694.80 11,820,000.00 12/01/2029 12,425,000.00 5.000% 116.194 14,437,104.50 12,425,000.00 12/01/2030 13,065,000.00 5.000% 115.734 15,120,647.10 13,065,000.00 12/01/2031 13,735,000.00 5.000% 115.184 15,820,522.40 13,735,000.00 12/01/2032 14,435,000.00 5.000% 114.638 16,547,995.30 14,435,000.00 12/01/2033 15,180,000.00 5.000% 114.095 17,319,621.00 15,180,000.00 12/01/2034 15,955,000.00 5.000% 113.555 18,117,700.25 15,955,000.00 12/01/2035 16,775,000.00 5.000% 113.107 18,973,699.25 16,775,000.00 12/01/2036 17,635,000.00 5.000% 112.751 19,883,638.85 17,635,000.00 214,890,000.00 247,157,116.00 214,890,000.00 Stated Weighted Maturity Interest Issue Redemption Average Date Rate Price at Maturity Maturity Yield Final Maturity 12/01/2036 5.000% 19,883,638.85 17,635,000.00 Entire Issue 247,157,116.00 214,890,000.00 12.6407 2.9961% Proceeds used for accrued interest 0.00 Proceeds used for bond issuance costs (including underwriters' discount)1,558,810.44 Proceeds used for credit enhancement 0.00 Proceeds allocated to reasonably required reserve or replacement fund 0.00 Note: Final Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 13 PROOF OF ARBITRAGE YIELD City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Present Value to 01/27/2017 Date Debt Service @ 2.9960649979% 06/01/2017 3,680,388.89 3,642,882.18 12/01/2017 5,342,500.00 5,210,007.18 06/01/2018 5,342,500.00 5,133,111.50 12/01/2018 5,342,500.00 5,057,350.75 06/01/2019 5,342,500.00 4,982,708.16 12/01/2019 12,922,500.00 11,874,349.77 06/01/2020 5,153,000.00 4,665,152.18 12/01/2020 13,123,000.00 11,705,263.04 06/01/2021 4,953,750.00 4,353,359.28 12/01/2021 13,328,750.00 11,540,436.18 06/01/2022 4,744,375.00 4,047,195.53 12/01/2022 13,549,375.00 11,387,720.96 06/01/2023 4,524,250.00 3,746,334.27 12/01/2023 13,784,250.00 11,245,672.92 06/01/2024 4,292,750.00 3,450,486.08 12/01/2024 14,027,750.00 11,109,002.81 06/01/2025 4,049,375.00 3,159,493.26 12/01/2025 14,249,375.00 10,953,871.15 06/01/2026 3,824,125.00 2,896,318.16 12/01/2026 156,789,125.00 116,996,400.64 308,366,138.89 247,157,116.00 Proceeds Summary Delivery date 01/27/2017 Par Value 214,890,000.00 Premium (Discount)32,267,116.00 Target for yield calculation 247,157,116.00 Jan 19, 2017 1:27 pm Prepared by FirstSouthwest (aml)(Finance 7.017 DENTON:2017_ELC-2017_REV) Page 14 PROOF OF ARBITRAGE YIELD City of Denton, Texas $214,890,000 Utility System Revenue Bonds, Series 2017 (Electric Supported: $225 mm) Tax-Exempt Rates As of 01/19/2017 (AA- / A1) *** Amortized over 20 Years / Cap-I Until Dec. 31, 2018 / 10 Year Call *** *** Final Numbers *** Assumed Call/Computation Dates for Premium Bonds Bond Maturity Call Call Yield To Component Date Rate Yield Date Price Call/Maturity SERIAL 12/01/2027 5.000% 2.860% 12/01/2026 100.000 2.8608749% SERIAL 12/01/2028 5.000% 2.970% 12/01/2026 100.000 2.9708499% SERIAL 12/01/2029 5.000% 3.080% 12/01/2026 100.000 3.0808988% SERIAL 12/01/2030 5.000% 3.130% 12/01/2026 100.000 3.1309065% SERIAL 12/01/2031 5.000% 3.190% 12/01/2026 100.000 3.1910106% SERIAL 12/01/2032 5.000% 3.250% 12/01/2026 100.000 3.2510176% SERIAL 12/01/2033 5.000% 3.310% 12/01/2026 100.000 3.3110346% SERIAL 12/01/2034 5.000% 3.370% 12/01/2026 100.000 3.3710595% SERIAL 12/01/2035 5.000% 3.420% 12/01/2026 100.000 3.4211176% SERIAL 12/01/2036 5.000% 3.460% 12/01/2026 100.000 3.4610653% Rejected Call/Computation Dates for Premium Bonds Bond Maturity Call Call Yield To Increase Component Date Rate Yield Date Price Call/Maturity to Yield SERIAL 12/01/2027 5.000% 2.860%3.0155152% 0.1546404% SERIAL 12/01/2028 5.000% 2.970%3.2389444% 0.2680945% SERIAL 12/01/2029 5.000% 3.080%3.4309080% 0.3500092% SERIAL 12/01/2030 5.000% 3.130%3.5518488% 0.4209423% SERIAL 12/01/2031 5.000% 3.190%3.6650704% 0.4740598% SERIAL 12/01/2032 5.000% 3.250%3.7653164% 0.5142988% SERIAL 12/01/2033 5.000% 3.310%3.8549928% 0.5439583% SERIAL 12/01/2034 5.000% 3.370%3.9359030% 0.5648436% SERIAL 12/01/2035 5.000% 3.420%4.0032138% 0.5820963% SERIAL 12/01/2036 5.000% 3.460%4.0585666% 0.5975013% Note: Final Public Finance www.fitchratings.com January 3, 2017 Public Power / U.S.A. Denton, Texas Utility System Revenue Bonds New Issue Report New Issue Details Sale Information: $224,050,000 Utility System Revenue Bonds, Series 2017. Security: Payable from the net revenues of the combined utility system, including the water, wastewater and electric light and power systems. Purpose: Bond proceeds will be used to finance the development of new peak power generation facilities, fund capitalized interest and pay the costs of issuance. Final Maturity: Dec. 1, 2036. Key Rating Drivers Combined Utility System: The city of Denton, TX owns and operates a combined utility system, providing retail electric, water and wastewater services to the city and surrounding areas. The service area is characterized by manageable population growth, low unemployment rates and income levels modestly below the state average. Transitioning Power Supply: The electric system is transitioning toward a greater reliance on renewable energy and away from coal and market purchased energy. The strategy will be supported by the construction and operation of the 220-MW natural gas-fired Denton Energy Center (DEC). The increased operational risk is mitigated by reduced exposure to market pricing and volatility. Elevated Debt Levels: The system’s projected ratio of debt to funds available for debt service is to rise considerably to 11.3x in fiscal 2017, driven in part by planned debt issuance related to the development of the DEC. However, the rating reflects Fitch Ratings’ expectation that anticipated rate increases, improvement in financial margins and the relatively rapid amortization of the revenue bonds will all contribute to reduced leverage beginning in fiscal 2019. Strong Liquidity Metrics: Liquidity levels are healthy, with approximately 275 days cash on hand at the end of fiscal 2015, and should remain robust, offsetting to some degree the combined system’s increased debt burden. Demonstrated Rate Flexibility: The diversity of revenue from essential electric, water and wastewater services is a credit strength, although the electric system is the largest contributor to overall financial performance. Utility rates can be modified at the discretion of the city council, which has regularly increased rates over the past several years. Rating Sensitivities Reduction in Leverage: The current rating reflects Fitch’s expectation that the utility system will increase funds available for debt service and reduce overall leverage as projected through consistent rate increases, higher electric sales and improved operating margins. Failure to achieve the projected reduction in leverage would likely pressure the rating. Ratings New Issue $224,050,000 Utility System Revenue Bonds, Series 2017 A+ Rating Outlook Stable Key Utility Statistics Fiscal Year Ended 9/30/15 System Type Combined Utility NERC Region ERCOT Annual Revenues ($ Mil.) 229.6 Debt Service Coverage (x) 1.65 Days Operating Cash 275 Equity/Capitalization (%) 50.7 Related Criteria U.S. Public Power Rating Criteria (May 2015) Revenue-Supported Rating Criteria (June 2014) Related Research Fitch Rates Denton, TX’s Utility System Rev Bonds ‘A+’; Outlook Stable (December 2016) U.S. Public Power (Peer Study) (June 2016) Analysts Matthew Reilly, CFA +1 415 732-7572 matthew.reilly@fitchratings.com Rebecca Meyer +1 512 215-3733 rebecca.meyer@fitchratings.com Public Finance Denton, Texas 2 January 3, 2017 Credit Profile The city of Denton is located approximately 35 miles north of the cities of Dallas and Fort Worth and serves as a quickly growing suburb to the greater metropolitan area. Denton provides electric, water and wastewater services through city-owned utilities. The electric system is the largest of the combined utilities and accounts for the majority of the revenues, followed by the water and wastewater systems. Governance and Management Strategy The utility system is governed by the city council, consisting of six elected council members and the city’s mayor. The city council receives and acts upon recommendations and advice provided by the seven-member Public Utilities Board (the board). The board serves as an advisor to the city council and is responsible for reviewing annual budgets, capital improvement plans, system rates and the issuance of debt. The city council has approved all of the board’s rate recommendations to date. Strategically, the three utilities — electric, water, and wastewater — are budgeted for and operated on a self-supporting and stand-alone basis. Each of the separate utilities has board- and council-approved financial policies, including liquidity and debt service coverage targets. A brief presentation of the targets by utility is presented in the table below. Texas Municipal Power Agency Denton, along with the cities of Garland, Bryan and Greenville, created the Texas Municipal Power Agency (TMPA) in 1975. Through TMPA, the cities developed the Gibbons Creek Steam Electric Station (GCSES), located in Grimes County, TX. The single-unit, coal-fired plant has a net capacity of 470 MW and burns Powder River Basin coal. TMPA owns the coal plant and provides power to its four members under identical court- validated, take-or-pay power sales contracts (PSCs) that expire in September 2018. The PSCs financially obligate the members to pay certain expenses to TMPA, including its debt service costs, regardless of actual plant operations. The four members recently approved a joint operating agreement (JOA), effective September 2016. The JOA establishes the framework for how TMPA and its assets and liabilities are to be managed, regardless of whether the PSCs are extended beyond September 2018. TMPA’s assets and operations are divided into three business lines under the JOA: generation, transmission and mining. Denton, Garland and Bryan agreed to continue as TMPA members along all three business lines after Rating History Rating Action Outlook/ Watch Date A+ Assigned Stable 12/29/16 Liquidity and Debt Service Coverage Targets Electric Water Wastewater Liquidity Reserve Target (Days) 60–75a 120–180 100–140 Debt Service Coverage (x) 1.25 1.25 1.25 aTexas Municipal Power Agency debt payments are not included in the city’s liquidity reserve calculation. Source: Denton (TX). TMPA Participation Shares City Share (%) Garland 47.0 Denton 21.3 Bryan 21.7 Greenville 10.0 Source: Denton (TX). Public Finance Denton, Texas 3 January 3, 2017 September 2018. Greenville chose to continue as a transmission and mining member, but opted not to continue as a generation member. The JOA allocates costs, ownership interests, decommissioning and remediation responsibilities to members based on their participation share. Denton’s participation share is 21.3%. Customer Profile and Service Area The utilities serve an area characterized by strong employment gains, a low unemployment rate, a growing workforce and below-average income levels. The city is known for its institutions of higher education and regionally prominent medical sector. Denton is home to the University of North Texas and Texas Woman’s University, with combined enrollment exceeding 48,500. The city’s growing heath care facilities serve north Texas and southern Oklahoma. These institutions include Columbia Medical Center Denton, Texas Health Presbyterian Hospital and The Heart Hospital Baylor Denton. Electric System Denton’s electric system serves an approximately 60-square-mile, single certified area within the city of Denton’s city limits and an additional 53-square-mile area that is multiple certified outside the city’s boundaries. The city has not opted in to retail competition, so its customers in the single certified area are generally unable to change electric providers. However, the system does face competition with respect to new customers who move into the multiple certified area. Approximately 5.5% of Denton’s electric customers reside in the multiple-certified area. The electric system served approximately 51,085 customers in fiscal 2016. The customer base is largely residential, comprising approximately 88% of total customers. However, commercial and industrial customers drive the majority of total MWh sales, accounting for approximately 64% of total MWh sold in fiscal 2016. All system sales are retail, with no exposure to wholesale markets. Customer concentration is moderate, with the top 10 ratepayers providing approximately 18% of electric revenues and 28% of total MWh sales in fiscal 2016. The largest customer accounted for 9% of MWh sales and 4.6% of electric revenues. The diversity of the pledged revenues from the combined utility systems further mitigates concentration risks. Annual MWh sales tend to fluctuate with weather conditions, particularly in response to summertime temperatures when the system experiences its peak demand. The graph below shows the annual variation in MWh sales during 2011–2016. (4.0) (2.0) 0.0 2.0 4.0 1,320,000 1,360,000 1,400,000 1,440,000 1,480,000 2012 2013 2014 2015 2016 (MWh) MWh Sales Trends —2012–2016 Total Retail Sales YoY Change in Retail Sales Source: Denton (TX), Fitch. (%) Public Finance Denton, Texas 4 January 3, 2017 Water System The water system provides retail water service to a growing customer base within the city and sells raw and treated water wholesale to the Upper Trinity Regional Water District (UTRWD) for resale to two of its customer cities. Wholesale sales comprised less than 2% of total gallons sold in fiscal 2015. The water system’s top 10 customers reflect relatively stable entities, including the University of North Texas, the local school district and local health centers and hospitals. In fiscal 2016, the top 10 customers comprised approximately 10% of water revenues. Wastewater System The wastewater system provides retail wastewater collection and treatment service to a growing customer base within the city and to four wholesale customers. The four wholesale customers — the cities of Corinth, Krum, Argyle and the Lake City Municipal Authority — made up less than 1% of the wastewater system average volume in fiscal 2015. Assets and Operations Electric System Denton’s electric system is undergoing a significant change in its power supply and operational profile. The system has historically relied on GCSES and market purchases to provide the bulk of the system’s power supply. However, under the city’s Renewable Denton Plan (RDP), renewable energy is expected to increase to approximately 70% of the system’s power supply, supported by the DEC, a newly built, directly owned 220-MW natural gas-fired peaking plant. Fitch views the transition as presenting some additional operational risks, as the system has historically not owned or operated generation resources. However, these risks are offset to some degree by the contracting of renewable energy resources at generally fixed rates for the bulk of the system’s power supply, decreasing the system’s exposure to potentially volatile market pricing. Public Finance Denton, Texas 5 January 3, 2017 Gibbons Creek Steam Electric Station Denton’s primary source of power over the past decade has been TMPA’s 470-MW GCSES. While the plant’s operational availability remains sound, its competitive position has eroded over the past few years as low natural gas prices and a significant increase in wind generation in ERCOT have combined to reduce market power prices. TMPA’s decision in fiscal 2016 to place GCSES in reserve shutdown for a little over a month following a scheduled outage reflected the change in market dynamics. TMPA members have authorized a potential sale of GCSES, and an agreement has been reached with two potential buyers. The buyers are currently completing their due diligence, with a signing of the sales agreement expected in early 2017. The purchase price under the two sales agreements is $57.5 million for GCSES. The purchaser for GCSES has also agreed to post $35 million towards an environmental escrow and a letter of credit for $25 million for environmental purposes. A related transaction to a separate buyer includes the sale of approximately 25% of TMPA’s transmission assets for the price of $71.5 million. Fitch views the potential sale as a credit positive, but insufficient on its own to materially affect the current rating. Benefits from the potential transaction include the use of the proceeds to pay down a portion of TMPA’s outstanding debt, reducing Denton’s obligations by a modest amount. More significantly, the sale of GCSES would eliminate Denton’s and other member cities’ exposure to decommissioning and other environmental liabilities, allowing for potentially significant future savings. Failure to complete the sale would be unlikely to affect the current rating, as TMPA would retain the option to pursue other sales opportunities while continuing to run the plant at the reduced levels of the past few years. Renewable Denton Plan and Denton Energy Center The city’s RDP calls for increasing renewables as a percentage of the city’s power supply to 70% by 2019. The plan outlines the renewable resource balance as 52% from wind, 17% from solar and 1% from locally owned landfill gas. Wind and solar resources are expected to be secured under long-term power purchase agreements at generally fixed prices. Wind energy supplied approximately 10% of system needs in fiscal 2016. Negotiations for additional resources are ongoing, with the expectation that most of the needed resources will be secured under contract by the end of 2017. The RDP also calls for the development and operation of the DEC, a 220-MW natural gas-fired electric generation facility consisting of 12 separate reciprocating internal combustion engines. The DEC is designed to economically supply power to firm up intermittent wind and solar resources. In addition, the DEC will act as a physical hedge against high market prices, with the DEC utilized when cheaper than purchasing power from the market and vice versa, effectively hedging against the risk of high peak power prices. Management estimates that the DEC will supply approximately 13% of the system’s power needs. The RDP projects that short-term purchased power will contribute approximately 17% of the system’s energy needs. Management will continue to hedge the system’s exposure to potentially volatile market prices by securing needed supply three to six months ahead of time and layering contracts. Gibbons Creek Operating Statistics (%) Fiscal Year Availability Capacity Factor 2015 79.9 55.3 2016 84.5 38.8 Source: TMPA. Public Finance Denton, Texas 6 January 3, 2017 Water System The city’s water system consists of two water treatment plants, 618 miles of water mains, 14 million gallons of ground storage, and 11 million gallons of elevated storage. The system provides water to all customers within the city of Denton and to the UTRWD for resale to the cities of Sanger (population 7,601) and Krum (population 4,919). Denton’s water system has sufficient water supply to meet projected needs. The city has a combined 24.62 million gallons per day (MGD) of available surface water from the Ray Roberts Reservoir and the Lewisville Reservoir, which is adequate to meet the city’s retail and wholesale treated water volume of approximately 17.26 MGD (fiscal 2016). Likewise, the systems treatment capacity is viewed as adequate to meet demand. The system’s two treatment plants provide 48.75 MGD of treatment and pumping capacity, providing a significant cushion relative to the maximum volume pumped to date of 37.52 MGD in 2011. Wastewater System The city’s wastewater system provides retail wastewater collection and treatment to all customers within the city and to four wholesale customers. The system consists of 521 miles of gravity wastewater lines, 25 miles of force mains and 27 lift stations. The system’s total permitted treatment capacity is 21 MGD, which is sufficient to meet the average demand of 16.74 MGD (2016). The four wholesale customers accounted for approximately 0.89 MGD of treatment volume in 2016. Cost and Rate Structure The city council has the authority to establish and modify rates for each of the utility systems without state or federal oversight. Regular rate increases over the past several years have demonstrated the council’s willingness to increase rates as necessary. A brief history of recent base rate increases by utility is provided in the table below. Please note that the electric system rate changes based on the energy cost adjustor are not reflected in the table. Electric Rate Structure The electric system’s rate structure is viewed as a credit positive, as it provides the utility with the flexibility to recapture potentially volatile energy costs in a timely manner. The structure includes a fixed charge, a volumetric charge, an Energy Cost Adjustment Factor (ECA) and a Transmission Cost Recovery Factor (TCR). The ECA is designed to capture and pass through to customers the utility’s fuel and purchased power costs. The ECA is adjusted on a quarterly basis to stay within a $5 million range. The Average Retail Rate Increase by Utility System (%) Fiscal Year Electric Water Wastewater 2017E 4.5 5.0 2.0 2016 4.5 5.0 2.0 2015 4.7 3.0 6.0 2014 2.5 — 9.0 2013 — — 9.0 E – Expected. Source: Denton (TX). Public Finance Denton, Texas 7 January 3, 2017 general manager of the electric system recommends adjustments to the board on a quarterly basis, when the $5 million threshold is projected to be breached. The electric utility also has a TCR that is designed to capture and pass through to customers the utility’s net transmission costs. This has provided another valuable means for capturing increasing fixed costs following ERCOT’s build-out of its transmission system. Financial Performance and Legal Provisions The financial performance of the combined utility system is largely driven by the electric system, which accounted for an average of 48.7% of the combined system’s net operating revenues during fiscal 2011–2016. The water system and the wastewater system contributed approximately 30.6% and 20.8%, respectively. A breakdown of the combined system’s net operating revenues by utility is provided in the chart below. As shown in the chart, the electric system’s financial performance was noticeably weaker in fiscals 2013 and 2014. This was largely driven by the ongoing but temporary period of increased TMPA obligations, including TMPA debt service costs, that runs through fiscal 2018. Denton’s payment of its respective share of TMPA’s O&M and debt service costs is recorded as a purchased power expense. Once the final payment on TMPA’s generation debt is made in fiscal 2018, Denton expects purchased power costs will decline by approximately $33 million. However, DEC operations are expected to increase operation expenses by $7 million– $9 million, offsetting some of the expected savings. The financial performance of the combined utility system will become increasingly dependent on the electric system after 2018. With the reduction in TMPA obligations that begins in fiscal 2019, Denton’s electric system will contribute approximately 75% of the projected net operating revenues for the combined utility system. Recent Financial Metrics The financial metrics of the combined utility system are relatively low but adequate for the rating. Fiscal 2015 debt service coverage and coverage of full obligations was 1.65x and 1.14x, respectively. Preliminary and unaudited financial reports for fiscal 2016 reflect Fitch-calculated coverage metrics of approximately 1.70x and 1.10x, respectively. Liquidity levels for the combined utility system are healthy, with approximately $119.8 million in unrestricted cash and investments, or 275 days cash on hand, at the end of fiscal 2015. Liquidity levels are expected to increase in fiscal 2016 to approximately $158.6 million 0 20 40 60 80 100 2011 2012 2013 2014 2015 2016 Average (2011–2016) (%) Combined Utility System Net Operating Revenue by Utility Electric Water Wastewater Source: Denton (TX). Public Finance Denton, Texas 8 January 3, 2017 (unaudited), due in part to the release of certain bond funds following recent refundings. A portion of the increased reserves are expected to be spent on capital projects in fiscal 2017. The combined system’s cash balances have declined moderately over the past several years as funds have been used for capital needs and to meet increased TMPA obligations. Additional draws are expected, including a planned $17 million use of reserves in fiscal 2017, although cash balances are projected to stabilize at still-sound levels thereafter. Financial Outlook Projected financial metrics are adequate for the rating and relatively consistent with recent performance. Fitch-calculated all-in debt service coverage ratios are projected to remain in the 1.60x–1.90x range through fiscal 2021, with the notable exception of fiscal 2018 when coverage is expected to decline to a low of 1.19x. Fiscal 2018 is the final year of elevated TMPA costs for the electric system as the outstanding generation debt is repaid. Increasing debt service costs through 2021 will keep coverage levels relatively low over the period despite improving financial margins driven by lower electric system costs after 2018. Management’s financial projections are based on several assumptions, including 2.5% annual electric load growth, 4.5% annual electric rate increases in fiscals 2017–2019 and the realization of approximately $25 million in non-contracted wholesale electric revenue beginning in fiscal 2019. An inability to achieve these assumptions could result in weaker-than-expected financial performance. General Fund Transfers Each of the utility systems pays three separate transfer amounts to the city’s general fund. The transfers include an indirect cost allocation, a “rate of return” to the city authorized in the city charter and a payment in lieu of franchise taxes. While the indirect cost allocation transfer is considered an operating expense by the utilities, the rate of return and payment in lieu of franchise taxes transfers are subordinate to debt service per the city ordinance authorizing the revenue bonds. The transfer amounts have been relatively stable over the past several years. The indirect cost allocation amount is established by an independent consultant. The rate of return and payment in lieu of franchise taxes are set at 3.5% and 5%, respectively, of each utility system’s revenues. Debt Profile The senior lien revenue bonds are expected to comprise approximately 25% of the combined utility system’s total outstanding debt in 2017. The majority of the debt is in the form of general obligation (GO) bonds and certificates of obligation (CO) that are issued and secured by the general government, but actually paid from the underlying utility systems. All of the outstanding debt is fixed-rate. Fitch’s coverage and debt calculations include the GO and CO bonds and the respective debt service paid by the utility systems. The combined utility system’s debt metrics are elevated, projected at 11.3x debt/FADS in fiscal 2017. The rating incorporates the combined utility system’s plans for around $343 million in additional GO bonds and a potential issuance of $40 million in revenue bonds over the next five years. The relatively high debt load reflects the systems’ significant investment in additional generation, transmission and other investments. The relatively quick repayment period, including the 20-year amortization rate on the revenue bonds, together with improved operating Public Finance Denton, Texas 9 January 3, 2017 earnings is expected to reduce the elevated debt/FADS ratio beginning in 2019 and restore future debt capacity, if needed. Legal Provisions The bond’s legal provisions are viewed as permissive but adequate for the rating. The bonds are payable from a first lien on the net revenues of the combined utility system. Operating costs are defined in the ordinance to include transfers of indirect costs, but exclude return on investment and payment in lieu of franchise tax transfers. The bonds feature a sum-sufficient rate covenant and do not have a debt service reserve fund. Public Finance Denton, Texas 10 January 3, 2017 Financial Summary — Denton (TX) ($000, Audited Years Ended Sept. 30) 2011 2012 2013 2014 2015 Debt Service Coverage (x) Debt Service Coverage 4.6 1.9 1.3 1.3 1.7 Adjusted DSC (Including Purchased Power Adjustment as D/S) 2.3 1.5 1.2 1.1 1.4 Adjusted DSC (Including Transfer/PILOT/Dividend as O&M Expense) 3.5 1.5 0.9 0.8 1.3 Coverage of Full Obligations (PP as D/S and Transfer/PILOT/Dividend as O&M Expense) 2.0 1.3 0.9 0.9 1.1 Liquidity Metrics Days Cash and Investments on Hand 415.1 451.3 337.9 283.5 275.4 Days Liquidity on Hand 415.1 451.3 337.9 283.5 275.4 Leverage Metrics Debt/FADS (x) 5.7 5.8 8.4 9.4 7.1 Adjusted Debt (Including PP Adj.)/Adjusted FADS (Including PP Adj.) (x) 6.3 6.4 8.3 8.8 7.4 Debt/Total Retail Customers 3,443.5 3,520.5 3,621.2 4,097.8 4,466.5 Net Debt/Net Capital Assets (%) 43.7 41.1 44.0 51.3 53.5 Equity/Capitalization (%) 54.9 55.5 54.9 52.2 50.7 Debt/Capitalization (%) 45.1 44.5 45.1 47.8 49.3 Adjusted Debt/Capitalization (%) 55.5 54.7 57.0 59.1 59.1 Other Financial & Operating Metrics Operating Margin (%) 25.2 24.5 14.9 14.3 21.7 Retail Electric Revenue/kWh (Cents/kWh) 9.1 9.5 9.7 10.4 11.3 Transfer and PILOT and Tax/Total Operating Revenue 0.3 0.4 0.4 0.5 0.7 Capex/Depreciation and Amortization (%) 215.7 242.7 314.6 389.7 411.2 Debt Service/Cash Operating Expenses (%) 10.4 21.6 19.8 19.9 21.6 Income Statement Total Operating Revenue 186,359 189,645 197,126 208,666 229,583 Total Operating Expense 139,416 143,145 167,855 178,900 179,740 Operating Income 46,943 46,500 29,272 29,766 49,844 Adjustment to Operating Income for Deferred Revenue 18,286 19,236 18,733 19,784 22,478 Funds Available for Debt Service 65,229 65,736 48,004 49,550 72,322 Total Annual Debt Service 14,271 34,484 37,143 39,756 43,722 Balance Sheet Unrestricted Funds (Cash and Liquid Investments) 139,272 155,025 138,938 124,553 119,781 Restricted Funds 95,370 98,204 107,779 129,929 142,112 Total Net Assets/Member's Equity 447,800 476,564 492,549 505,466 526,301 Total Debt 368,396 382,703 403,996 463,410 512,604 Cash Flow Statement FCF (FADS – Transfer and PILOT – Total Annual Debt Service) 36,014 16,094 (4,572) (6,516) 10,742 Capex 36,556 43,101 55,831 72,319 86,200 FCF Less Capex (543) (27,007) (60,402) (78,836) (75,458) DSC – Debt service coverage. D/S – Debt service. PP – Purchased power. FADS – Funds available for debt service. PILOT – Payment in lieu of taxes. Source: Denton (TX), Fitch. Public Finance Denton, Texas 11 January 3, 2017 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. 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Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. Date: December 21, 2018 Report No. 2018-191 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Informational summary of a “pedestrian scramble” signal timing phase and its application at intersections on the square. EXECUTIVE SUMMARY: Increase in requests from citizens to improve pedestrian safety at intersections around the square has resulted in proposal of unique solutions which include implementation of an exclusive pedestrian phase, also known as a pedestrian scramble. Pedestrian scramble phase stops vehicular traffic in all directions and provides a protected phase for pedestrians to cross an intersection in all directions. There are pros and cons for implementing the pedestrian scramble phase at the square intersections and staff is currently conducting a feasibility review. BACKGROUND: A pedestrian scramble is known to be mainly used in downtown settings where there is high pedestrian traffic. The exclusive pedestrian phase stops all vehicular movement and provides a protected phase for pedestrians at an intersection. Pedestrians can cross in any direction, including diagonally, as shown in the image. Below are the key pros and cons of implementing pedestrian scramble phase at the intersections on the square. Pros  Pedestrian safety is anticipated to increase due to the restricted vehicular movements for each signal cycle.  Pedestrian scramble phase can be implemented without any upgrades to the existing traffic signal equipment. Cons  Increased vehicle delays and congestion as pedestrians will need additional time to cross- diagonally.  Americans with Disabilities Act (ADA) compliance - Visually impaired pedestrians may have difficulty navigating diagonally through the intersection.  Longer vehicle queues due to longer wait at signals  Considerable impact on access to parking on the square - Vehicles blocking parking spaces closer to the signals Date: December 21, 2018 Report No. 2018-191  Pedestrian infrastructure such as crosswalks, accessible ramps, signage, etc. will have to be designed and constructed. PROJECT STATUS: Staff is currently reviewing several measures to improve pedestrian safety around the downtown area including the square. As such, staff will be assessing the feasibility of implementing the Pedestrian Scramble phase at the signalized intersections along with other measures to help improve pedestrian safety. The review and assessment will be completed by third week of January 2019 after which staff will implement the recommended measures. CONCLUSION: A pedestrian scramble is primarily implemented in downtown settings where there is high pedestrian traffic. Staff is currently reviewing several measures including pedestrian scramble phase to improve pedestrian safety. It is anticipated that the staff review will be completed by third week of January and the recommended improvements will be implemented in the following two to three weeks. STAFF CONTACT: Pamela Alummoottil Traffic Engineer (940) 349-7486 Pamela.Alummoottil@cityofdenton.com Date: December 21, 2018 Report No. 2018-194 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: During the concluding items portion of the December 3, 2018 City Council meeting, Council Member Meltzer requested information regarding conducting a scientific study to evaluate gas well setback distances for the City of Denton. DISCUSSION: As mentioned in the gas well setback presentation during the City Council work session on September 11, 2018, one of the most comprehensive studies specific to potential public health impacts due to emissions of compounds leaving gas well sites within the Barnett Shale was commissioned by the City of Fort Worth in 2010 through 2011. The specific goal of this study was to evaluate whether the 600-foot setback from protected uses established by the City of Fort Worth was adequate for protecting public health. The City of Fort Worth selected the Eastern Research group (“ERG”) to conduct this study. ERG began the study during August 2010 and provided a final report approximately 1 year later. Results of the study indicated that the 600- foot setback used by the City of Fort Worth was protective of public health according to the parameters used by the ERG to evaluate public health impacts. Although the study had some critics, the information was subsequently used by several other cities as a basis for setback distances, and today the 600-foot setback remains the most common setback distance used within the Dallas – Fort Worth Metroplex. The ERG study offers a framework for partially addressing the council request. However, the study conducted by ERG for the City of Ft. Worth was designed to determine if an established distance (600 feet) was sufficient for protecting public health. The current council request appears to be to facilitate research to determine “what is a safe setback distance”, which is a much more difficult issue to address since a defined distance is not implicit. With this in mind, the basic design of the ERG study is still valid for addressing the research request, but substantially more work will be needed to consider multiple distances. Using the ERG study as a framework, staff suggests the following approach: 1. Complete ambient air monitoring and associated research to establish a baseline. Complete ambient air monitoring to determine the prevalence and magnitude of specific compounds in ambient air and complete an assessment of other potential sources of emissions in proximity to gas wells. The City of Fort Worth established 8 monitoring sites to assess ambient air quality, and measurements were taken over a two-month period. Information obtained from this ambient air monitoring network was used to provide context for point source sampling and analysis efforts, characterize exposure to selected air toxics in ambient air at various locations in the city, establish concentrations of air toxics (such as benzene) present in the ambient air in the area, and as a component of the subsequent public health evaluation. Analyses of other potential sources of Date: December 21, 2018 Report No. 2018-194 emissions unrelated to gas wells will help in sample collection design and ensure that quantified emissions can be defensibly demonstrated to be from gas well pad sites. 2. Complete a point source emissions study to characterize emissions from natural gas- related point sources located within the City of Denton. Data collected during this phase can be used to derive total emissions profiles for each point source site. This point source testing must be comprehensive, since emissions at any individual site can fluctuate depending on day-to-day operating and equipment conditions. The variation in emissions over the entire population must be captured to determine the likely range of emission profiles, and the sampling will need to be done for multiple distances. 3. Use accepted, defensible analytical methods to perform monitoring. Analyze volatile organic compounds (VOCs) using established protocols, which include the Environmental Protection Agency’s (EPA' s) method TO-15, Carbonyl compounds identified by EPA' s method TO-11A (including formaldehyde), speciated non-methane organic compounds (SNMOC), as identified by ERG/SNMOC Analysis Method, and Methane as identified by EPA' s method TO-14. This approach will provide information for over 130 compounds, including 45 hazardous air pollutants such as benzene, ethylbenzene, toluene, and xylenes (BTEX compounds), formaldehyde, and acetaldehyde. It may also be advisable to consider newer passive methods for that use sorbent tube technologies such as EPA method TO-17 and /or method 325A. From a public health standpoint, concentrations of benzene should be of primary importance. 4. Complete air dispersion modeling. The results of elements 1-3 can be used to complete air dispersion modeling to quantify downwind impacts from natural gas activities using the latest EPA-approved models and methodologies. This information can then be used to determine worst case exposure scenarios and to determine the adequacy of various setback distances within the framework of a public health evaluation. 5. Use defensible and widely accepted heath based screening levels for public health evaluation. Complete a public health evaluation by comparing the ambient air monitoring data and the dispersion modeling results to the Texas Commission on Environmental Quality (TCEQ) health-based screening levels with respect to distances from pad sites. Evaluations should include both Effects Screening Levels (ESLs) and Air Monitoring Comparison Values (AMCVs). The TCEQ has developed separate ESLs for short-term and long-term exposure durations, where short-term values are typically used for assessing 1-hour average concentrations and long-term values are typically used for assessing annual average concentrations. Although ESLs are not regulatory standards, they are often used to interpret potential exposures to air pollution predicted by models. The TCEQ interprets ESLs as follows: “If predicted airborne levels of a constituent do not exceed ESLs, adverse health or welfare effects are not expected. If predicted ambient levels of constituents in air exceed the screening levels, it does not necessarily indicate a problem but rather triggers a review in more depth.” Air Monitoring Comparison Values (AMCVs) are pollutant-specific ambient air concentrations that the agency has established to protect human health and welfare. In contrast to ESLs, which are primarily used when evaluating air pollution levels predicted Date: December 21, 2018 Report No. 2018-194 by models, AMCVs are used when conducting health screening evaluations of air monitoring data. Depending on the sampling results, it is possible that Texas Risk Reduction Program’s risk based exposure levels (RBELs) for residential inhalation may also need to be considered. It is staff’s opinion that the above approach will likely be able to address the Council request. Staff obtained information on the ERG study via discussions with the City of Fort Worth staff member that was the project manager for the study. The Fort Worth ERG study was completed in approximately 1 year, and the total cost was $1,052,448. However, the study included a $45,254 component for communication and outreach that could possibly be excluded, bring the costs to $1,007,194 in 2010 dollars. Although the City of Denton has fewer gas well pad sites than the City of Fort Worth, the request for the Denton study is to determine a specific public health based setback distance, whereas the City of Fort Worth study was designed to determine if a single distance (600 feet) was protective of public health. As a result, the City of Denton study will require substantially more sampling, analytical, and modeling work. Applying a 5% per year increase to the 2010 ERG study amount of $1,007,194 indicates that the cost of the ERG study would be approximately 1.65 million in 2019. Considering the more extensive nature of the Denton study as proposed, it is not unreasonable to expect the study to be in the 2 million dollar range, and to take perhaps 1.5 to 2.5 years to complete. It is also worth noting that while the proposed health based screening levels are derived from the TCEQ and the proposed methods are supported by the EPA, if exceedences of standards are observed the TCEQ is unlikely to accept those results without additional monitoring and evaluations being performed by the TCEQ itself. STAFF CONTACT(S): Kenneth Banks General Manager of Utilities (940) 349-7165 Kenneth.Banks@cityofdenton.com Council Meeting Requests for InformationRevision Date12/21/2018RequestRequest Date Staff ResponsibleStatusRequested By1Update on marketing/advertising policy and naming opportunities at City facilities. 8/2/2018 Langley/PackanA work session is planned for February 26.Hudspeth2Information on providing additional options for broadband service aside from current service providers. 9/25/2018 Birdseye/CollisterInformation will be provided in a future Friday report. Briggs3Information and recommendations on Denton's Smart City initiatives.10/9/2018 Kraft/WoodInformation will be provided in the January 4 Friday report. Briggs/Meltzer4Strategy for addressing telecommunications and utility lines along Dallas Drive including pricing and timing. 10/16/2018 Canizares/MorrowInformation was included in the November 21 staff report. A detailed ISR will be provided in a future Friday report. A work session is scheduled for February 5.Briggs 5Review of the City's agreement with the Denton Housing Authority. 10/16/2018 Kuechler/Reinwand/Leal Information will be provided in a future Friday report. Briggs6Provide information on how quickly staff can proceed with installing windows at City Hall West.11/13/2018 Canizares/HartleyA status update was provided in the November 30 Friday report. Additional information is provided in the December 21 Friday report. Hudspeth7Information on staff's ability use utility information to notify residents within 200' and 500' of a proposed development in addition to using DCAD data. 11/13/2018 McDonald/LealISR is provided in the December 21 Friday report.Ryan8Information on alternative strategies to promote high-tech entrepreneurship.11/13/2018 BoothInformation will be provided in a future Friday report. Meltzer9Staff report on establishing a sobering center in Denton similar to the ones recently opened in San Antonio, Houston, and Austin.11/13/2018 Dixon/Kuechler/Wood Information will be provided in a future Friday report. Armintor10Staff report on the potential establishment of a citizens' tenant committee to advocate for renter rights.11/13/2018 Lahart/McDonald/Leal Information will be provided in the January 4 Friday report. Armintor11Information on a potential program to incentivize residents to use doorbell monitoring technology to assist with public safety.11/13/2018 Dixon/Padgett/Birdseye Information will be provided in a future Friday report. Hudspeth12Information on the potential creation of a small business or corridor reinvestment grant program. 11/27/2018 Booth Information will be provided in a future Friday report. Briggs13Information on programs conducted by other municipalities to help persons experiencing homelessness obtain photo IDs. 11/27/2018 KuechlerInformation is provided in the December 21 Friday report. Armintor14Staff report on the recent resolution passed by the City of Dallas to establish itself as a Welcoming City.11/27/2018 BirdseyeISR is provided in the December 21 Friday report.Armintor 15Provide an update on the street failure issue.11/27/2018 EstesInformation will be provided in a future Friday report. Meltzer16ISR on regional transit efforts that are being coordinated by NCTCOG.11/27/2018 CanizaresInformation will be provided in a future Friday report. Hudspeth Council Meeting Requests for InformationRevision Date12/21/2018RequestRequest Date Staff ResponsibleStatusRequested By17Staff report on what it would take to design study requirements tailored specifically for Denton's geology to help establish a sound policy rationale.12/3/2018& 12/4/2018 Banks ISR is provided in the December 21 Friday report. Meltzer18Staff report on the feasibility of adopting and enforcing gas well notification disclosure requirements for new occupants of dwellings located within 1,000 feet of a gas well pad site. 12/4/2018 Leal/McDonald Information will be provided in a future Friday report. Meltzer 19Staff report on having a separate Townhome/Condominium designation in the Denton Development Code. 12/4/2018 McDonald/Cannone ISR is provided in the December 21 Friday report. Armintor20Staff report on on-street parking that was turned over to UNT, including a feasibility analysis of allowing residents to use that parking. 12/4/2018 Deshmukh/Estes Information will be provided in a future Friday report. Hudspeth21Information on installing a natural/planted trash can screen at the MLK Recreation Center. 12/4/2018 Packan/Cox Information will be provided in a future Friday report. Hudspeth22Information on the total number of trucks coming through Denton, a map of the general geography of Denton's new industrial corridor indicating City vs. State roads, and quantify the infrastructure impact caused by major industrial developments. 12/11/2018 Booth/Estes Information will be provided in a future Friday report. Armintor/Briggs/Watts23Provide an update on options for a sign for City Hall. 12/11/2018 Canizares Information is provided in the December 21 Friday report.Briggs24Provide a status update on the identification of projects for the Opportunity Zone. 12/11/2018 Booth Information will be provided in a future Friday report.Briggs25Information on why Sunday bus service is not offered 12/11/2018 Canizares Information will be provided in a future Friday report.Hudspeth26Information on the best way for pedestrians to safely cross University Drive to access TWU's soccer fields. 12/11/2018 Deshmukh/Estes/Wood Information will be provided in a future Friday report.Hudspeth27Information on tree planting code requirements for park development projects. 12/18/2018 Packan Information is included in the December 21 Friday report Watts28Provide information on the new Uber flights program including details on if the Denton Enterprise Airport meets the specifications of the program. 12/18/2018 Gray/Puente Information will be provided in a future Friday report. Hudspeth29Staff report on ADA compliance issues regarding dumpsters left on sidewalks. 12/18/2018 Birdseye/Cox ISR is provided in the December 21 Friday report. Armintor30Information on the pros and cons of developing a policy requiring certificates of obligation and economic development incentives to have a public vote 12/18/2018 Booth/Puente/Leal Information will be provided in a future Friday report.Armintor31Adopt a developer engagement policy similar to what Council adopted for items resulting in a tie-vote. 12/18/2018 Wood/LealPolicy will be discussed at the January 9 Planning & Zoning Commission Meeting. A resolution will be included in the January 15 City Council agenda. Ryan32Staff report on options to have curbside bulky item collection for commercial dumpsters. 12/18/2018 Cox Information will be provided in a future Friday report. Watts33Update on red light camera pilot project. 12/18/2018 Deshmukh/Dixon Information will be provided in a future Friday report. Briggs Other Council Information Requests12/21/2018RequestRequest Date Staff ResponsibleStatusRequested By1Staff Report on commercial food diversion programs.6/4/2018 Cox Information will be provided in a future Friday report. Briggs2Information on the potential benefits of air quality monitors in Denton. 9/17/2018 BarnettInformation will be shared with the Committee on the Environment during their January meeting. Meltzer 3Information on consultant recommendations for recycling and bulk items. 11/5/2018 Cox Information will be provided in a future Friday report. Meltzer 4Staff report on rental property inspections including practices to address faulty roofs and mold and information on how other cities ensure compliance with the Tenant Bill of Rights. 11/6/2018 Lahart/McDonaldInformation will be provided in the January 4 Friday report. Armintor5Coordinate with TxDOT on Teasley and Pennsylvania to reduce speed on portion of Teasley and put a traffic light at the intersection. 11/12/2018 Deshmukh/EstesInformation was provided in the November 16 and November 30 Friday report. Staff will provide updates once a signal warrant analysis is conducted. Armintor6Develop a comprehensive housing inventory of transitional and permanent supportive housing units in the city and perform a needs assessment.11/13/2018 KuechlerStaff is working on this project and will provide updates as it progresses.Armintor7Analysis of major projects that were approved under the current Denton Development Code (DDC) that would not be acceptable under the proposed DDC and major projects that were denied under the current DDC that would be permissible under the proposed DDC.11/13/2018 McDonald Information will be provided in the January 4 Friday report. Meltzer 8Information on introducing a curbside organics/composting collection program, including to what extent a market can be found for the product.11/28/2018 Cox Information will be provided in a future Friday report. Meltzer 9Information on the feasibility and requirements to make multi-family recycling universal, including the needed education and outreach to minimize contamination risk. 11/28/2018 Cox Information will be provided in a future Friday report. Meltzer 10Information on Zoning concern for a proposed batch plant off of Roselawn Drive. 11/29/2018 Cannone/McDonaldA status update is provided in the December 7 Friday report. Staff will provide updates once additional information is received from TxDOT. Briggs11Information on the addition of stop signs at Camino Real and Sea Cove and Camino Real and Wharfside Place in the Villages of Carmel subdivision12/2/2018 Deshmukh/EstesInformation is provided in the December 21 Friday report. Armintor12Update on the Verizon pole attachment debt.12/3/2018 Puente/MorrowInformation will be provided in a future Friday and/or Legal Status report. Meltzer Other Council Information Requests12/21/2018RequestRequest Date Staff ResponsibleStatusRequested By13Information on what can be done to address dumpsters blocking sidewalks, of particular concern is a property located at 1000 Gregg Street. 12/4/2018 Cox/McDonald/Birdseye Information is provided in the December 21 Friday report. Briggs 14Update on all sidewalk projects that received Safe Routes to School funding, including Stuart to Ginnings and the area surrounding Woodrow Elementary.12/5/2018 Deshmukh/Estes/OliphantInformation was provided in the December 7 Friday report. Staff will provide additional information on project timing following feedback from TxDOT. Briggs15Information on the plans for the 7 acres between Southridge Estates and the Goodwill shopping center. 12/13/2018 Menguita/CannoneInformation will be provided in the January 4 Friday report. Armintor16Information on planned intersection enhancements at 77 and I-35. 12/14/2018 Deshmukh/EstesInformation will be provided in a future Friday Report. Briggs17Summary on the proposed zoning change on the lots north of Family Dollar on Elm Street including minutes from the Planning & Zoning Commission meeting. 12/14/2018 Cannone/McDonald Information will be provided in a future Friday report. Briggs18Clarification on how the number of parked vehicle crashes on W. Oak compared to the rest of the community -do the current numbers warrant further investigation?12/14/2018 Dixon/Padgett/Deshmukh Information will be provided in the January 4 Friday report. Meltzer 19Information on a potential process to require re-notification of a new project that is being developed where Council action was previously required, even if there are no changes to zoning.12/14/2018 Cannone/McDonald Information will be provided in a future Friday report. Meltzer 20Better lighting solution to improve pedestrian safety on the square.12/15/2018 Estes/DeshmukhInformation will be provided in a future Friday Report. Armintor/Briggs21Council Contingency Funds Item for Denton County Friends of the Family Black History Month12/18/2018 WoodItem is included on the January 8 City Council consent agenda.Armintor22Staff report on the effectiveness and resources required for municipal rental inspection programs across the state. 12/20/2018 LahartInformation will be provided in a future Friday report. Meltzer 12/19/2018 3:49 PM December 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 11:30 am Council Luncheon 1:30pm Committee on the Environment 6 pm Park Board 4 10:30am Committee on Citizen Engagement 2:00 pm CC Work Session 6:30 pm CC Regular Session 5 5:00pm Board of Ethics 6 4 p.m. Public Art Committee 7 11:00 Development Code Review 8 9 10 9:00am Public Utilities Board 5:30pm HLC 11 11:00am Mobility Committee-cancelled 1:00 pm 2nd Tuesday Session 12 11:00am EDP Board- cancelled 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 13 5:30pm Traffic Safety Commission 14 11:00 Development Code Review 15 16 17 4:00 pm ZBA cancelled 18 12:00 pm CC Work Session 6:30 pm CC Regular Session 19 20 21 11:00 Development Code Review 22 23 24 Christmas Eve - City Holiday 25 No Council Meeting Christmas Day - City Holiday 26 27 29 29 30 31 January 2019 Sun Mon Tue Wed Thu Fri Sat 1 No Council Meeting 2 3 4:00pm Public Art Committee 4 5 6 7 8:00 am Council Meeting 1:30pm Committee on the Environment-will be rescheduled 5:30pm Traffic Safety Commission 8 11:00am Mobility Committee 12:00 pm CC Work Session 6:30 pm CC Regular Session 9 11:00am EDP 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 10 11 12 13 14 9:00am Public Utilities Board 5:30pm HLC 15 2:00 pm CC Work Session 6:30 pm CC Regular Session 16 17 4:00pm HaBSCo Meeting 18 19 20 21 22 No Council Meeting 10:00 am Council Airport Comm. 23 11:00am TIF Board (TIRZ #1) 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 24 25 26 27 28 6:00pm Public Utilities Board 4:00pm ZBA 29 No Council Meeting 30 31 February 2019 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 11:30 am Council Luncheon 1:30pm Committee on the Environment 5:30pm Traffic Safety Commission 5 2:00 pm CC Work Session 6:30 pm CC Regular Session 6 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 7 4:00pm Public Art Committee 8 9 10 11 9:00am Public Utilities Board 5:30pm HLC 12 11:00am Mobility Committee 2:00 pm 2nd Tuesday Session 13 11:00am EDP 14 15 16 17 18 19 CC Work Session/Regular Session-Cancelled 20 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 21 4:00pm HaBSCo Meeting 22 23 24 25 6:00pm Public Utilities Board 4:00pm ZBA 26 10:00am Council Airport Comm. 2:00 pm 4th Tuesday Session 27 28 Future Work Session Items 12/21/2018 Meeting Date Notes 7‐Jan Lunch 8am start time for Municipal Judge Interviews Block for Municipal Judge interviews Library Annual Report Citywide Strategic Plan Update 8‐Jan DME Risk Management Policy Floodplain CRS PERF Presentation Landfill Expansion Permitting Process 15‐Jan Cole/Hunter Development Bonnie Brae and Scripture Tract SRO/Collegiate Housing E‐Cigarette Enforcement Fire Technical Rescue/Light Air Vehicle 4‐Feb Lunch Cultural District City Hall East Facility Plan for PD Development Service Fees American Legion Hall Location will be City Hall East/Police HQ 5‐Feb Recycling Business Case Analysis Housing Tax Credit Applications Dallas/Teasley Telecom Poles 1001 Mayhill Facility Improvements Cole/Hunter Development Follow‐ Up 12‐Feb Right‐of‐Way Ordinance Downtown Design Standards Denton Development Code Construction Code Review 26‐Feb Work Session Strategy Session Airport Governance Bell Avenue Update on Marketing/ Naming Policy 4‐Mar Lunch Fire Diversity Council Appointee Review Process Animal Shelter* 5‐Mar Purchasing Manual Update DEC Noise Mitigation Mews Streets 19‐Mar New Market Tax Credits Patrick Park Tennis Center Special Event Ordinance Update 26‐Mar Credit and Collections Study Home Chemical Collection Business Case Analysis Solid Waste Mid‐ Year Budget Review Integrated Pest Management Program Date TBD South Lakes Park Parking Lot Enhanced Leachate Recirculation Business Case Analysis Yard Waste Collection Business Case Analysis Solid Waste Rate Discussion (Potentially combined with budget) Purchasing Manual Update Scheduled from 10/23 Work Session Top 5 from 11/27 Work Session *Will include overview of FeLV and FIV testing Currently Slated Work Session Items Street/Intersection From ToProposed Date of ConstructionProposed Date of Completion Brief Description of Construction Department LettersOther CommunicationDepartment Contact:Updated Information / Notes Ave. AMaple Eagle3/19/18 2/28/19UNT 2018 Residence Hall Project (Both SB Lanes Closed)Engineering N/ACoordinate with UNT(940) 349‐8910Ave. CHickory Mulberry9/24/18 2/8/19UNT Monument Wall (Road Closure)Public Works InspectionsUNT Project(940) 349‐8905Extended completion from 1/2/19Bowling Green St.Georgetown Auburn11/29/18 1/22/19Water Improvements (Daily Street Closure will re‐open end of each day)Water 11/7/18(940) 349‐7167Bonnie Brae St.RoselawnNorth of Vintage7/1/2017 7/1/2019Street Widening (Phase 1)Engineering 6/14/18(940) 349‐8910Dallas Dr. Intersection of Teasley11/12/18 2/22/19Turn Lane Upgrade (Temporary Lane Closure)Streets 11/5/18(940) 349‐7160Eagle Dr.Elm Carroll12/3/18 5/31/19Drainage and Water Improvements (Street Closure)Engineering(940) 349‐8910Elm St.Eagle Maple10/22/18 1/31/19Box Culvert Installation (Temporary Lane Closures) Engineering 10/11/18Part of Eagle Communications, visited businesses on 10/11(940) 349‐8910FM 2181City of Denton/Corinth City limitsLillian Miller7/11/17 2/1/20Street WideningTxDOT TxDOT(940)‐387‐1414Fulton St.Oak Broadway6/7/18 12/31/18Water Main Construction (Street Closure)Water 6/5/18(940) 349‐7167Extended completion from 12/21/18Hickory St.Ave CAve B9/24/18 1/15/19Phase III Street Reconstruction (Street Closure)Streets 9/12/18(940) 349‐7160John Paine Rd.Athens Gilmer12/17/18 1/4/19Street Panel Repair (Temporary Lane Closure)Streets 12/7/18(940) 349‐7160 Construction Projects Report Week of December 24‐30, 2018 CURRENT PROJECTSSee Yellow Highlighted for Major ClosuresFor general inquiries and questions, please contact the Project Management Office at (940) 349‐7227 Street/Intersection From ToProposed Date of ConstructionProposed Date of Completion Brief Description of Construction Department LettersOther CommunicationDepartment Contact:Updated Information / Notes Kendoph Ln. Underwood Willowwood11/26/18 2/15/19Wastewater Improvements (Daily Street Closure will re‐open end of each day)Wastewater N/ANextdoor Notification, Door Hanger(940) 349‐7300Extended completion from 2/7/19Kings RowYellowstone Sherman12/26/18 4/26/19Curb and Gutter Replacement (Temporary Lane Closure)Streets 12/7/18(940) 349‐7160 Delayed Start from 12/17/18Laguna Dr.Yellowstone Sherman12/17/18 4/26/19Curb and Gutter Replacement (Temporary Lane Closure)Streets 12/7/18(940) 349‐7160Manhattan Dr. Yellowstone Sherman11/26/18 3/29/19Curb and Gutter Replacement (Temporary Lane Closure)Streets 11/14/18(940) 349‐7160Mayhill Rd.Intersection of Gayla11/26/18 1/11/19Part of Mayhill Street Widening (Road Closure with Detour)Engineering(940) 349‐8910Mayhill Rd.US 380 Edwards 9/1/17 2/1/20Street Widening (Temporary Lane Closures)Engineering 1/3/18, 1/24/18Door Hangers(940) 349‐8910McKinney St.Woodrow Jannie12/10/18 2/1/19Utility Improvements (Temporary Outside Lane Closure)Engineering N/A(940) 349‐8910Extended Completion from 1/11/19Mistywood Ln.Woodhaven Rockwood11/7/18 1/10/19Wastewater Main Reconstruction (Temporary Lane Closures)Wastewater 8/23/18(940) 349‐7300Extended completion from 1/3/19 Myrtle St.Eagle Maple 9/4/18 5/31/19Eagle Drainage Improvements (Street Closure)Engineering 8/21/18Contacted DCTA(940) 349‐8910Oak St. Fulton Mounts 12/17/18 12/31/18Water Improvements (Street Closure)Water 12/10/18(940) 349‐8910Extended completion from 12/21/18Prominence Pkwy.Mayhill Atlanta1/31/18 12/28/18Water and Wastewater Crossing (Road Closure)Engineering 1/24/18Door Hangers(940) 349‐8910Riney Rd.N. Elm Solana9/29/17 1/31/19Road Removal and Replacement (Road Closure)Engineering YesElectronic Signs(940) 349‐8910Rockwood Ln. Royal Mistywood11/26/18 3/5/19Rockwood Drainage Improvements (Intermitten Street Closure)Drainage 11/23/18Door Hangers(940) 349‐8488Royal Ln.Royal Rockwood11/26/18 3/5/19Rockwood Drainage Improvements (Intermitten Street Closure)Drainage 11/23/18(940) 349‐8488Seven Oaks Ln.Rambling BrookGlen Falls12/7/18 12/28/18Street Panel Replacement/ Sidewalk Repair (Temporary Lane Closures)Streets 11/7/18(940) 349‐7160Extended completion from 12/21/18 Street/Intersection From ToProposed Date of ConstructionProposed Date of Completion Brief Description of Construction Department LettersOther CommunicationDepartment Contact:Updated Information / Notes Shady Oaks Dr.Teasley Woodrow12/3/18 12/28/18Base Repairs (Temporary Lane Closure)Streets Electronic SignsMeet with business owners(940) 349‐7160Sierra Dr.Yellowstone Sherman11/26/18 3/29/19Curb and Gutter Replacement (Temporary Lane Closure)Streets 11/14/18(940) 349‐7160Spencer Rd. Mayhill Bridges4/2/18 1/11/19Mayhill Road Widening (Road Closure)Engineering 3/16/2018, 9/14Contacted departments affected(940) 349‐8910US 377 (Ft. Worth Dr.)IH 35E0.26 mi south of FM 183012/3/18 TBDStreet Widening (Temporary Lane Closures during non‐peak traffic)TxDOT 9/25/18Public Meeting 10/8(940) 387‐1414Walnut St. Locust Austin10/29/18 12/30/18Atmos Service Connection (Street Closure)Engineering N/A(940) 349‐8914Camden Ct. Londonderry Dead End10/1/18 12/14/18Londonderry Street Improvements Phase II of III (Street Closure)Streets 9/24/18(940) 349‐7160 New CompletionCollins St. Eagle Locust11/26/18 12/21/18Transmission Distribution Improvements (Street Closure)DME N/A(940) 349‐8700 New CompletionJim Christal Rd.Western Blvd Scripture7/3/18 11/26/18Utility Line Construction (Road Closure)Water/WW N/AContacted Businesses affected(940) 349‐8463Kendoph Ln. WillowwoodDead End South11/26/18 12/3/18Street Reconstruction (Street Closure)Streets N/ANextdoor Notification, Door Hanger(940) 349‐7160Kingswood Ct.Londonderry Dead End10/1/18 12/14/18Londonderry Street Improvements Phase II of III (Street Closure)Streets 9/24/18(940) 349‐7160 New CompletionLakeview Blvd.Draught Horse 801 Lakeview11/26/18 12/21/18Street Panel Repair (Temporary Lane Closure)Streets 11/14/18(940) 349‐7160Londonderry Ln.Westminster Hollyhill11/5/18 12/13/18Water/Wastewater Improvements (Street Closure)Water 9/25/18(940) 349‐7167COMPLETED PROJECTS Street/Intersection From ToProposed Date of ConstructionProposed Date of Completion Brief Description of Construction Department LettersOther CommunicationDepartment Contact:Updated Information / Notes Londonderry Ln.Teasley Hollyhill11/12/18 12/14/18Londonderry Street Improvements Phase III of III (Street Closure)Streets 9/25/18(940) 349‐7160 New CompletionMulberry St.Bell Industrial10/15/18 12/14/18Parking Garage Construction Contractor (Street Closure)Building InspectionsN/AOutside Contractor(940) 349‐8360Oak St.North Texas Thomas 12/3/18 12/14/18Sidewalk Improvements (Temporary Outside Lane Closure)Engineering(940) 349‐8910Paisley St.Frame Ruddell10/15/18 12/14/18Street Reconstruction (Temporary Lane Closures)Streets 10/3/18(940) 349‐7160 New CompletionPinehurst Ct.Wintercreek Cul de Sac11/12/18 12/14/18Sidewalk Repair (Temporary Lane Closures)Streets 11/5/18(940) 349‐7160Swan Park Dr. Glen Falls Seven Oaks11/14/18 12/21/18Sidewalk Repair/Panel Replacement (Temporary Lane Closures)Streets 11/7/18(940) 349‐7160Athens Dr.Tawakoni Eagle Mountain1/2/19 1/25/19Street Panel Repair (Temporary Lane Closure)Streets 12/17/18(940) 349‐7160Atlas Dr.Redstone Hercules3/8/19 5/4/19Wastewater Main Reconstruction (Temporary Lane Closures)Wastewater 12/17/18(940) 349‐7300 Delayed start from 1/4/19Bernard St.Fannin W Chestnut1/4/19 4/5/19Street Reconstruction (Street Closure)Streets 12/17/18(940) 349‐7160Bonnie Brae St.Roselawn I35E1/15/19 1/15/20North South Water Main Phase 2 (Temporary Lane Closures)Water 11/26/18(940) 349‐8910Bowling Green St.Auburn Georgetown1/14/19 3/29/19Street Reconstruction (Street Closure)Streets 12/17/18(940) 349‐7160Castle Ln.WilsonwoodSouthern dead end1/3/19 2/22/19Street Reconstruction (Street Closure)Streets 12/17/18(940) 349‐7160UPCOMING PROJECTS Street/Intersection From ToProposed Date of ConstructionProposed Date of Completion Brief Description of Construction Department LettersOther CommunicationDepartment Contact:Updated Information / Notes Eagle Mountain Dr.Athens Gilmer1/2/19 1/25/19Street Panel Repair (Temporary Lane Closure)Streets 12/17/18(940) 349‐7160Fulton St.Congress Gregg2/8/19 3/23/19Wastewater Main Reconstruction Pase I of II (Temporary Lane Closures)Wastewater(940) 349‐7300Hickory Creek Rd.Teasley Riverpass1/1/19 6/1/20Street Widening (Temporary Lane Closures)Engineering 11/26/18(940) 349‐8910Hinkle Dr.University Windsor1/1/19 1/1/20Phase I‐ Storm Water Improvements (Magnolia Drainage Ph II Temporary Lane Closures)Engineering 11/13/18(940) 349‐8910KerleyDuncan Shady Oaks2/1/19 4/11/19Water Improvements (Daily Street Closure will re‐open end of each day)Water(940) 349‐8910 Delayed start from 1/25/19Mistywood Ln.Rockwood Jamestown1/3/19 3/5/19Rockwood Drainage Improvements (Intermitten Street Closure)Drainage 12/17/18(940) 349‐8488Panhandle St.Carroll BolivarTBDTBDStreet Resurfacing, Curb and Gutter (Temporary Lane Closures)Streets 4/9/18Door Hangers(940) 349‐7160PEC 4 ‐ EngineeringIn DesignInstalling Underground Box CulvertEngineering 11/13/18(940) 349‐8910Ranchman Blvd.Intersection of FM 21811/2/19 1/31/19FM 2181 Road Widening (Road Closure on Ranchman to the east and west of FM 2181)TxDOT(940) 349‐8910 New ProjectRoselawn Dr.Bonnie BraeKansas City Southern RRTBDTBDDrainage and Roadway Construction (Bonnie Brae Phase 1 One Lane traffic control)Engineering N/A(940) 349‐8910Scripture St. Thomas Ector1/2/19 1/31/19Atmos Utility Relocations (Westbound Lane Closure; Intersection at Hillcrest Closed)Atmos(940) 205‐9821Scripture St. Ector Gober2/4/19 2/28/19Atmos Utility Relocations (Westbound Lane Closure; Intersection at Bradley Closed)Atmos(940) 205‐9821 Street/Intersection From ToProposed Date of ConstructionProposed Date of Completion Brief Description of Construction Department LettersOther CommunicationDepartment Contact:Updated Information / Notes Scripture St. Gober Normal3/4/19 3/29/19Atmos Utility Relocations (Westbound Lane Closure)Atmos(940) 205‐9821Spring Side Rd.Underwood Westcourt1/2/19 1/25/19Street Panel Repair (Temporary Lane Closure)Streets 12/17/18(940) 349‐7160Stuart Rd.Windsor Kings RowTBDTBDConcrete Curb and Gutter Repair (Temporary Lane Closures)Streets(940) 349‐7160Thomas St.Panhandle Oak 2/1/19TBDStreets Construction Streets(940) 349‐7160Vintage Blvd.US 377 I35W 3/1/2019 2021Street Widening (Bonnie Brae Phase 2)Engineering(940) 349‐8910YellowstoneKings Row Monterey 2/1/2019Curb and Gutter Replacement (Temporary Lane Closure)Streets(940) 349‐7160