HomeMy WebLinkAbout060520 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: June 5, 2020
TO: The Honorable Mayor Watts and Council Members
FROM: Todd Hileman, City Manager
SUBJECT: Friday Staff Report
I. Council Schedule
A. Meetings
1. Public Utilities Board Meeting on Monday, June 8, 2020 at 9:00 a.m. via
video/teleconference – City Council Work Session Room.
2. Historic Landmark Commission on Monday, June 8, 2020 at 3:00 p.m. via
video/teleconference – City Council Work Session Room.
3. Work Session of the City Council on Tuesday, June 9, 2020 at 1:00 p.m. via
video/teleconference – City Council Work Session Room.
4. Cancelled - Mobility Committee Meeting on Tuesday, June 9, 2020 at 9:00 a.m.
in the City Council Work Session Room.
5. Cancelled - Agenda Committee Meeting Wednesday, June 10, 2020 at 2:30 p.m.
in the City Manager’s Conference Room.
6. Hotel Occupancy Tax and Sponsorship Committee on Thursday, May 23, 2020
at 10:00 a.m. via video/teleconference – City Council Work Session Room.
II. General Information & Status Update
A. Pending Council Requests Work Session Topics – There are NO items scheduled for
discussion during the June 9 City Council work session. Staff contact: Stuart Birdseye,
City Manager’s Office
B. COVID-19 Testing at Nursing Homes – The Denton Fire Department concluded testing
in Denton on May 29. 746 total residents and staff were tested at four nursing facilities
(both Good Samaritans, The Vintage, and Senior Care) last Thursday and Friday.
Results from those tests should be received by the County Health Department and
disseminated to the nursing facilities soon. Pilot Point Fire Department also requested
the Denton Fire Department assist with testing the Pilot Point Care Center. This testing
was completed on Tuesday, June 2 to 103 total residents and staff. In all, the Fire
Department tested 849 persons in 3 days. Staff will submit the expenses that were
incurred for reimbursement. Staff contact: Kenneth Hedges, Fire
C. COVID-19 Expense Reimbursement – During the June 2 City Council Meeting, staff
received a question regarding the Federal Emergency Management Agency (FEMA)
reimbursement submittal timeframe. To be eligible for reimbursement, expenses must
be submitted within 60 days of the end of the national disaster declaration, accord ing
to the Texas Department of Emergency Management (TDEM). Staff Contact: David
Gaines, Finance
D. 8 Can’t Wait Initiative – On May 25, George Floyd, an unarmed person of color, died
while in the custody of officers of the Minneapolis Police department. This death has
stirred a national debate for the need to review and improve the equitable and proper
use-of-force by public safety entities across the nation. Locally, residents have led and
joined in demonstration and protests to express their outrage at the death of George
Floyd, expressing their concern that the use-of-force by police on persons of color
across the United St ates has been committed in a discriminatory and disproportionate
manner that has resulted in injury or death, and the desire to have such policies and
practices of the Denton Police department Reviewed.
On June 4, Council Member Armintor forwarded an email from a resident and staff
have received other articles regarding the “8 Can’t Wait” initiative by Campaign Zero.
Campaign Zero examined the use of force policies of 91 of America’s 100 largest
cities’ police departments to identify the policies that establish restrictions on how and
when police use force against civilians. Out of that research, the initiative identifies 8
measures to be included in Department policy in the effort to reduce violent encounters
between police and citizens. Currently, very few cities in the U.S. have reported
adopting all eight measures.
The Denton Police Department has very intentionally and deliberately continued to
review and update all General Orders (policies) in place prior to 2018. Within these
general orders, the Denton Police Department has adopted eight (8) of the measures
(see attached) prescribed by Campaign Zero. The ongoing process to refine and
improve the all General Orders continues today.
To see an updated version of current Denton Police Department General Orders, go to
https://www.cityofdenton.com/en-us/all-departments/public-safety/police and click on
the link “General Orders (Updated Monthly)” under Documents and Forms. Staff
contact: Frank Dixon, Police
E. Loop 288 Property Virtual Neighborhood Meeting – On Thursday, June 4 at 6:30 p.m.,
the City hosted a virtual neighborhood meeting to discuss the proposed zoning change
of 909 N Loop 288 from Suburban Corridor (SC) to Public Facilities (PF). Staff shared
with the attendees an overview of the proposed zoning change and potential uses being
considered for the proposed center. There was a total of 11 attendees that participated
in the virtual meeting, some asked questions while other s just observed. Questions
included: 1) What will the City do to prevent those visiting the center from traveling
through my neighborhood?; 2) What are the plans for the area between the center and
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my neighborhood?; 3) Was there other locations identified for the proposed center?;
and 4) How will the City prevent individuals that are living unshe ltered from camping
near the center in wooded areas or on other properties? Staff responded to all the
questions and provided the attendees with a timeline of upcoming public hearings
where they can provide their comments and ask additional questions. Staff Contact:
Sarah Kuechler and Dani Shaw, Community Services
F. Downtown Fence/Wall – Several Council Members have requested information about
the temporary fence/wall at 108 N. Locust St. in downtown (former Mini-Mall). This
site has remained undeveloped since the fire in December 2017, and the wood wall was
put in place as a temporary solution. Since the time of the fire, staff has worked with
the property owners to secure the fence when damaged/fallen as a result of severe
weather. This week, staff provided several options to the property owners to provide a
more permanent solution and re medy the wind damaged wall. Staff will continue to
work with the property owners to mitigate the hazard. Staff contact: Scott McDonald,
Development Services
G. Weekly Unemployment & Business Update – Staff is working to assemble, review,
and analyze unemployment and labor data each week. Staff will provide ongoing
updates throughout the COVID-19 pandemic as data is made available.
• U.S. Department of Labor (DOL)
o DOL released its weekly unemployment report on Thursday, June 4. The
full report is available here.
• Bureau of Labor Statistics (BLS)
i. The BLS released the May Employment Situation Summary on
Friday, June 5. The full report is available here.
• Texas Workforce Commission (TWC)
o TWC has created a UI Claimant Dashboard to provide updated graphical
representations of data and datasets for download. The dashboard is
available here.
o April local unemployment data was released on the Texas Labor Market
Information (www.texasLMI.com) system on May 22. The next release is
scheduled for June 19.
o TWC also provides data on weekly unemployment claims filed and how
the claim was received. The chart with data as of May 29 is below.
• U.S. Census Bureau
o The U.S. Census Bureau is conducting experimental Small Business Pulse
Surveys to measure the changes in business conditions on small businesses
throughout the country.
o Data is now available for the week of May 24-30.
o The results of the survey are available here.
Staff contact: Jessica Rogers, Economic Development
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H. Utilities Management Study – Denton Utilities are required by the Section 12.08(f) of
the City Charter to conduct a management study in an interval not to exceed 10 years.
The Charter specifies the study shall be conducted by a competent management
consulting or industrial engineering firm and that the report and recommendations shall
be made public. The purpose of conducting management studies is to provide a
thorough examination of major elements of Utilities operations to ensure Utilities are
adhering to processes required by the charter and organization, are being managed
efficiently, and are cost effective. The last management studies were completed in
2008-2009.
On July 24, 2018 the City Council adopted an Ordinance awarding a contract with
NewGen Strategies and Solutions, LLC (NewGen) for a Utility Management Study for
Electric, Water, and Wastewater. The study was conducted during 2018-2019, and the
draft findings were presented to the Public Utility Board on Feb 24, 2020 and the City
Council on March 2, 2020. The draft report was then comp leted, although some delays
occurred due to the COVID-19 pandemic. The final report is attached. Staff continues
to work on initiatives to address the findings and recommendations of the report. Staff
contact: Kenneth Banks, Utilities Administration
I. Library Internet Access – During the May 19 City Council Meeting, Council Member
Armintor requested information about how citizens can access Denton Public Library
wi-fi internet outside library facilities. Library staff added information about facility
wi-fi range to the library’s website on the COVID-19 response page and shared the
information on library social media channels on May 20.
Denton Public Library also submitted a grant application with the Texas State Library
and Archives Commission for the compet itive TSLAC CARES Act Grant. The
library’s request is for funding to expand library wi-fi internet into the parking lots at
all three library locations. If funded, community members would be able to access wi-
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fi 24/7 while parked in library public parking lots. In addition, the library is requesting
funding for additional mobile wi-fi hotspots for circulation. Additional mobile wi-fi
hotspots would reduce wait times as the library’s existing 30 hotspots are so popular
and have a continual wait list of 5-15 patrons waiting for hotspot access. If Denton
Public Library’s application is approved for grant funding, the TSLAC CARES Grant
funding would be available in July or August 2020.
Library users also now can make appointments to access library computers or bring
their own devices to access library wi-fi inside library facilities as part of the library’s
Phase 2 reopening plan, which started Monday, June 1. The first appointments began
Tuesday, June 2. Staff contact: Jennifer Bekker, Library
J. Wildflower Patch Mowing – On June 1, Council Member Briggs forwarded a resident
concern about a wildflower patch on Sherman Dr. that was mowed over recently. This
wildflower area was inadvertently mowed by a new City contractor. Staff contacted the
contractor to review t he map that was given to them showing the areas that should be
mowed. Staff reached out to the resident to attempt to replant some seed now and will
help again this fall to try to reinstitute some wildflowers in the future.
Additionally, this contractor notified staff that they were not prepared for a workload
of this nature and terminated their contract. These parcels will be going out to bid again
and will be presented to the Council later this summer for consideration. Staff contact:
Gary Packan, Parks and Recreation
K. Update on Denton Women’s Interracial Fellowship Monument Project – At the
January 28 City Council meeting, Council Member Meltzer presented a request for
consideration of a monument to the Denton Women’s Interracial Fellowship (DWIF).
The Council directed the item be reviewed and considered by the Public Art Committee
(PAC). The PAC reviewed the item at their March 5 meeting and approved to place the
project on their work plan so that they could consid er funding for the project later.
In May 2020, the Texas Commission on the Arts (TCA) released their applications for
the Arts Respond – Cultural District Project grant program. The PAC, as the primary
board for the City’s cultural district, is e ligible to apply for the TCA grant program.
Although there are multiple public art projects in the works, the monument to the DWIF
was the only current project eligible for submission by the PAC to TCA, so staff
worked with the PAC and the Greater Denton Arts Council to develop an application,
project budget, and narrative for submission. At the June 4 PAC meeting, the
committee recommended approval of the application and requested Council approve a
letter of support. A resolution approving the application and the letter of support will
be on the June 9 City Council agenda for consideration. Staff contact: Jessica Rogers,
Economic Development
L. Hinkle Drive Roundabout – On May 19, Council Member Briggs requested that staff
assess the lighting at the new roundabout at Hinkle Dr. after a sign had been run over.
Staff visited the sight last week and determined short- and long-term solutions to
resolve the concern. First, reflective pavement markers have been installed on the
inside and outside of the roundabout lanes which will allow a vehicle’s headlights to
illuminate the roundabout edges when they shine on the reflectors. Long -term, Capital
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Projects is developing a schedule with DME to install streetlights at this intersection.
Staff contact: Brian Jahn, Capital Projects
M. Signal Timing – On June 2, Mayor Pro Tem Hudspeth requested that staff assess the
signal timing at the intersection of Locust St. and US 77/Elm St. and determine whether
a flashing yellow (yield) light would be better suited for this site. Staff looked at the
timing and detection of this signal and updated the timing to make it turn green sooner
when opposing traffic is not present. Staff does not recommend a flashing yellow arrow
for the southbound right -turning movement, as it would create an unsafe condition due
to the lane geometry of the intersection. Staff contact: Brian Jahn, Capital Projects
N. Upcycling Plastic Buckets – On May 29, Council Member Briggs forwarded a resident
suggestion about upcycling plastic five-gallon buckets to be used for distributing
DynoDirt or for use at the ReUse Store. Unfortunately, contractual and safety issues
prevent the City from attempting to segregate this mat erial from the recycling stream
once it is collected.
The City contracts with a third party to manage and recycle materials collected from
Denton residents and commercial entities. Pursuant to the contract, our process has the
exclusive right to manage t he recyclable material collected. Because there is revenue
involved, it is incumbent upon the City to deliver as much empty, clean, and dry
programmatic material as possible.
From a safety standpoint, scavenging (the search for and collection of anything usable
from discarded waste) of material from within dumpsters or the working face of the
landfill is extremely dangerous and contrary to industry best practices. All Landfills
have an anti-scavenging policy. The solid waste industry is the fifth most dangerous
profession as listed by the Department of Labor based on number of deaths. It is
estimated that several people are killed each year at landfills and material recycling
facilities due to the removal of objects from discarded material.
The safest, and cleanest mechanism, to obtain materials for upcycling is from the
generators directly. While some may have a policy that prohibits distribution, many
businesses are happy and willing to segregate and distribute buckets and other items at
the request of patrons.
Upcycling is the reuse of discarded objects or materials in such a way as to create a
product of higher quality or value than the original. Moving forward, upcycling will be
a component examined as part of the upcoming Solid Waste Management Strate gy.
Staff contact: Brian Boerner, Solid Waste and Recycling
O. Orr Street Repairs – On May 26, Council Member Briggs forwarded a resident concern
that Orr Street was sinking near the intersection with Locust. The next day, May 27, a
crew from the Streets Department completed a patch on the street, and staff assessed
the underground utilities to verify the cause of the pavement failure. Staff used their
CCTV camera down the sewer line at the intersection, and found no issues with the
pipe, leading staff to believe that the issue was soil settling over the pipe, which is not
uncommon for a pipe nearing 20 feet. Staff will continue monitoring the area, but do
not anticipate this being a continued issue. Staff contact: Daniel Kremer, Public Works
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P. Proposed Park Property in Rayzor Ranch East – In April of 2019, Parks and Recreation
presented City Council the proposed development of potential park property located in
Rayzor Ranch. The 9.86-acre parcel of green space was to be developed and dedicated
to the City with both land and improvements. The presented improvements consisted
of the linear trail, trees, landscaping, mounding, signage, and lighting.
At this time, per the City park land dedication and development ordinance, the
development, as proposed, is required to dedicate a minimum of 6.14 acres of park land
as well as $311,995 for park development.
During the meeting, the City Council provided feedback with potential ideas for the
new park. Some of the ideas were integrated, such as spacing for food trucks,
wildflower areas, trees, and shaded areas. At this time, some of the suggestions
provided by Council will not be in the initial plan due to budgetary restrictions.
Suggested ideas from Council include an interactive fountain, elevated stage, and
terraced seating. The development group did have several conversations regarding
potential opportunities with the Denton Explorium Museum.
On November 19, 2019, Allegiance Hillview received a developer agreement for
review and feedback. Numerous communications have been sent to the developer
requesting feedback on the agreement. Since this date, it has been the desire of Parks
and Recreation staff to provide the developer agreement to City Council. Staff intends
to present a proposed development agreement as soon as the agreement is finalized.
The developer has been working on the construction of the park and has made
significant progress. The developer has already installed the grading, drainage,
irrigation, sod, landscaping, trees, and the trail. Per estimates provided by Allegiance
Hillview, the cost of the park is estimated at over $1,000,000. These construction costs
well exceed the amount of required park development fees that the residential projects
with Rayzor Ranch East would generate. Any improvement made above this amount is
not eligible for any such payment or reimbursement from the City. Additio nally, the
developer continues to construct the parcel in good faith to provide enjoyable park
space for the neighborhood and the City. Staff contact: Gary Packan, Parks and
Recreation
Q. Atlas Road Repairs – On May 27, Council Member Briggs requested information about
the status of street repairs on Atlas Rd. Repairs on this road are anticipated to begin
within the next eight months, as the construction on Hercules needs to be complete
before beginning on Atlas. Atlas Rd. will be repaired by in-house crews (highlighted
in red on the map below) and all other streets in the neighborhood are part of the 2019
Bond package (highlighted in blue). Staff contact: Daniel Kremer, Public Works
In-House Construction Schedule
• Currently Under Construction: Masch Branch, Kerely
• Next on Schedule: Rockwood, Royal, Mistywood, Woodhaven
• Awaiting Atmos Clearance: Edgewood Place, Northwood Terrace, Atlas
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R. Virtual Yankee Doodle Parade – Parks and Recreation is reorganizing the annual event
into an online parade video, which will premiere on Facebook on July 4. Anyone who
would like to participate is asked to submit a picture or short video/animation (30
seconds or less with no music) o f their version of a float. Participants are asked to have
fun and be creative. There will be awards for multiple categories, including Most
Patriotic Baby, Pet, Vehicle, Yard, and more. All entries must be submitted by June 14.
Visit www.dentonparks.com for more information and to register. Staff contact:
Keanna Stallings, Parks and Recreation
S. Virtual Liberty Run – The 22nd Annual Liberty Run 5K and 1-Mile Walk is becoming
a virtual run this year. Registration is free, or $12 for a T -shirt. Participants should
complete their run or walk by July 4. Runners and walkers can share pictures of
themselves in festive out fits and be entered to win $25 gift cards. For more information
and to register, visit www.cityofdenton.com/virtualreccenter. Staff contact: Jennifer
Eusse, Parks and Recreation
III. Upcoming Community Events and Meetings
A. Events
All City-sponsored events and programs are suspended until further notice.
B. Community Meetings
All City-sponsored meetings are also suspended until further notice.
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IV. Attachments
A. Denton PD 8 Can’t Wait Chart ......................................................................... 10
B. Denton Organizational Assessment ................................................................... 11
V. Informal Staff Reports
A. 2020-055 Riney Road Water Site .................................................................... 275
B. 2020-056 Forestar-Rayzor and Drury Tract 4 .................................................. 279
C. 2020-057 2019 Water Loss Report.................................................................. 283
VI. Council Information
A. Council Requests for Information .................................................................. 306
B. Council Calendar ........................................................................................... 307
C. Draft Agenda for June 16 ................................................................................ 310
D. Future Work Session Items ............................................................................ 318
E. Street Construction Report ............................................................................. 319
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Denton Police Department " 8 Can't Wait Chart"NameGeneral Order #300Requires De‐EscalationHas Use of Force Continuum Bans ChokeholdsRequires Warning Before ShootingRestricts Shooting At Moving CarsRequires Exhaust All Means Prior to Duty to InterveneRequires Comphrehensive ReportingResponse to ResistanceYes (300.3.1) Yes* (300.4.2) Yes (300.4.4)Yes (300.5) Yes (300.5.1) Yes (300.4) Yes (300.2.1) Yes (300.6.1)10
REPORT | May 2020
Utility Management Study
City of Denton, Texas
11
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Table of Contents
TOPIC PAGE
PROJECT OVERVIEW 4
EXECUTIVE SUMMARY 7
SURVEY RESULTS 13
UTILITY MANAGEMENT STUDY –KEY FINDINGS & RECOMMENDATIONS
–Electric 23
–Water / Wastewater 37
–Shared Services 53
Communications 55
Finance 64
Infrastructure 93
People 107
Process 122
Strategy 126
FRANCHISE & PAYMENT IN LIEU OF TAXES
–Electric 130
–Water / Wastewater 138
COMPARATIVE ANALYSIS (BENCHMARKING) 147
–Electric 167
–Water 215
–Wastewater 233
APPENDICES
–Appendix A –Persons Interviewed 250
–Appendix B –Documents Reviewed 252
–Appendix C –Follow-up Survey 259
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Glossary of Terms
3
A&G Administrative & General
ACM Assistant City Manager
AE Austin Energy
AMI Automated Metering Infrastructure
APPA American Public Power Association
AWWA American Water Works Association
BPUB Brownsville Public Utilities Board
BTU Bryan Texas Utilities
CAFR Comprehensive Annual Financial Reports
CAPEX Capital Expenditure
CIP Capital Improvement Plan
CMO City Manager's Office
DEC Denton Energy Center
DME Denton Municipal Electric
DRRP Denton Renewable Resource Plan
DSCR Debt Service Coverage Ratio
EMO Energy Market Operations
ERCOT Electric Reliability Council of Texas
FCU Fort Collins Utilities
FERC Federal Energy Regulatory Commission
FTE Full-Time Employee
GEUS Greenville Electric Utility Service
GFOA Government Finance Officers Association
GFT General Transfer Fund
GP&L Garland Power & Light
IOU Investor-Owned Utility
KFA Key Focus Areas
kWh kilowatt hour
LUS Lafayette Utility Systems
MAOP Maximum Allowable Operating Pressure
MG millions of gallons
NBU New Braunfels Utilities
NERC North American Electric Reliability Corporation
OPEX Operating Expenses
PILOT Payment in Lieu of Taxes
PMO Project Management Office
PUB Public Utility Board
PURA Public Utility Regulatory Act
REU Redding Electric Utility
ROI Return on Investment
RPU Riverside Public Utilities
SAIDI System Average Interruption Duration Index
SAIFI System Average Interruption Frequency Index
SCADA Supervisory Control and Data Acquisition
SOC System Operations Center
SPP Southwest Power Pool
TCOS Transmission Cost of Service
TMPA Texas Municipal Power Agency
TRE Texas Reliability Entity
W/WW Water/Wastewater
13
PROJECT OVERVIEW
Scope & Project Objectives
TOC
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
PROJECT OVERVIEW
•NewGen Strategies & Solutions (NewGen) was retained to perform a
Management Study of the City of Denton Utilities (Electric, Water and
Wastewater) per City requirements every ten years.
•The project consisted of review of pertinent documents, interviews with Utility
and City staff, CMO and PUB/Council Surveys.
•NewGen performed an overall Organizational Assessment to review what is
working and areas needing improvement in addition to specific review and
analysis of the following areas defined in the Scope of Work.
NOTE: This Study was conducted utilizing data from 2017 and interviews held
in 2018.
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Scope of Work
•Governance Review
•Organizational Structure Review
•Financial Practices Analysis
•Development Policies Review
•Support Services Review
•Franchise & Payment in Lieu of Taxes Comparison and Impact Analysis
•Communications Review
•Public Relations Review
•Planning Review
•Budget Process Review –Operations & Capital Budgeting
•Rate Development & Administration Review
•Other Significant Issues Effecting Utility Management Identification and
Review
•Significant Operational Cost Components Comparative Analysis
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16
EXECUTIVE SUMMARY
TOC
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Executive Summary
•General Findings
–The Management Study is performed every ten years to meet a requirement of
the City Charter to perform a general management review of the City’s utilities.
–NewGen reviewed the last two reports from 1998 and 2008 and found that the reports,
while apparently using the same scope of work tended to focus on certain topics more
than provide a “general survey of the utilities” -a holistic view of the organization to
identify what is working and what needs improvement. The 1998 report focused on
electric utility deregulation and the 2008 report focused on the cost of shared services.
–The ten year timeframe seems to be too long between studies as much change can
take place between studies.
–Each of the three utilities have had leadership changes.
•NewGen Recommendations
–Develop a Scope for future Management Studies that provides a general review of the
utilities similar to the holistic organizational assessment approach NewGen performed
for this Study.
–Even if conducted internally, consider performing a Management Study Interim Review
every five (5) years tracking progress on the implementation of actionable
recommendations from the previous Management Study; this may also provide a fresh
general review of the utilities again to identify what is working and what needs
improvement.
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Scorecard – DME
9
Lack of formal
strategic planning
process
Monitor rates for
competitive
position and
deregulation
pressure
EMO Center needs
better technology
to more fully
automate its
process
(in progress)
GIS & Work Order
systems work very
well
Substation &
Distribution
engineering & ops
processes appear
to be well
documented
High caliber & well-
trained team
Lack of a dedicated
rates position(s)
Several vacant
senior positions
Solid financial policies
& procedures
Extremely strong
liquidity and reserves
position
Lack of an Integrated
Resource Plan
Evaluate DEC financial
viability on on-going
basis
Finance reporting has
shifted to the CFO
Beneficial TCOS
recovery
Debt service ratio is
below Fitch guidelines
Formal corporate
communication
function
Misunderstanding &
miscommunications
Community
awareness of DME
value is low
Best in class
facilities
Consistent site
design standards
improve
serviceability
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Actionable Priorities – DME
10
ACTION RECOMMENDATION
CRITICAL SUCCESS FACTOR
CLICK FOR MORE INFOCOMMUNICATIONFINANCEINFRASTRUCTUREPEOPLEPROCESSSTRATEGY1.Hire a General Manager
a)Hire a GM / Assistant GM that exhibits the following qualities:
Experience managing an electric utility
Top tier leadership qualities
INFO
2.A Utilities rates group is
needed comprised of
DME and Finance staff for
the rates it charges
a)Need long term rate plan that contemplates multiple scenarios
with impacts from Council decisions such as rate decreases and
major capital purchases
b)Finalize the development of the 10-year financial forecast
c)Review rates structure to ensure adequate fixed cost recovery
INFO
3.Communicate with
stakeholders regarding
concern over viability of
Denton Energy Center
a)Review financials, supply contracts, opportunities to improve the
financial viability of the DEC and develop a short-term and long-
term mitigation plan
b)Conduct or update an integrated resource planning study
c)Improve communication with stakeholders regarding the DEC
INFO
INFO
4.Create a formal corporate
communication function
a)Begin a formal stakeholder engagement process that is ongoing
and comprehensive
b)Document “rules of engagement” that form the basis of
governance interaction and authority limits
INFO
5.Communicate with staff
to build trust bi-
directionally
a)Utility leadership must model the trust inwardly and outwardly
and communicate the why for changes being made in a way that
is clear and consistent over time
INFO
INFO20
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Scorecard –Water & Wastewater
11
Lack of formal
strategic planning
process
Identify need for
and acquire source
water to meet
future demand
Processes need to
be inventoried and
documented
Lack of system or
process automation
limits efficiency /
effectiveness
Outsourcing /
contractual options
underutilized
(mowing)
Key positions to be
filled
Relatively new in
certain Divisions
Bench Strength
Several vital
positions lack
needed backup
Organizational
structure needs to
be more clearly
defined
Solid financial policies
& procedures
Extremely strong
liquidity and reserves
Strong record of
communicating
changes and ensuring
financial stability
Finance reporting has
shifted to the CFO
Capital project
funding/accounting
getting more focus
Debt service ratio is
below 2.1 median Fitch
guidelines for Water
Formal corporate
communication
function
Misunderstanding &
miscommunications
Lack of community
engagement to
educate on rate
pressures
WATER
Clean & well
maintained
Appears to be
lacking some
appropriate SCADA
technology
WASTEWATER
Lack of integrated
technology
Issues with
cleanliness
One safety concern
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Actionable Priorities –Water & Wastewater
ACTION RECOMMENDATION
CRITICAL SUCCESS FACTOR
CLICK FOR MORE INFOCOMMUNICATIONFINANCEINFRASTRUCTUREPEOPLEPROCESSSTRATEGY1.Create a formal corporate
communication function
a)Begin a formal stakeholder engagement process that is
ongoing and comprehensive
b)Document “rules of engagement” that form the basis of
governance interaction and authority limits
INFO
2.Communicate the execution
of capital planning
a)Communicate and coordinate system planning methodology
and goals throughout the organization INFO
3.Communicate with staff to
build trust bi-directionally
a)Utility leadership must model the trust inwardly and outwardly
and communicate the why for changes being made in a way
that is clear and consistent over time
INFO
INFO
4.Develop standard
operations
procedures/technical
specifications
a)Develop procedures and specifications that define the "Denton
Way" of operating, maintaining the utility infrastructure and
technical specifications for any and all equipment to be
installed
INFO
INFO
5.Develop succession plan a)Develop a formal utility wide succession plan working with City
and Utility Human Resources staff INFO
6.A Utilities rates group is
needed comprised of the
Utilities and Finance staff
a)Need long term rate plan that contemplates multiple scenarios
with impacts from Council decisions such as rate decreases
and major capital purchases
b)Finalize the development of the 10-year financial forecast
INFO
INFO
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SURVEY RESULTS
City Council & Public Utilities Board
TOC
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
PUB and City Council Survey
•In January 2019, NewGen surveyed the PUB
and City Council.
–The survey asked, “What is your view of how
the Utility is operated?
–Answer choices and the numeric value
NewGen assigned to each are below:
•Two primary observations emerged from
these weighted responses.
1.All Measures Were Better than “Good”
2.The PUB consistently rated each area lower
than City Council.
•We recommend the City survey each group
with the same questions annually or biennially
for comparison purposes.
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Scored Area City Council PUB
Water Operations 4.33 3.33
Wastewater Operations 4.60 3.67
Electric Operations 4.00 3.67
Utilities Staff 4.00 3.5724
NEWGEN STRATEGIES AND SOLUTIONS, LLC
City Council
•Managing Growth
•Environmental Issues
•Homelessness
•Affordable Housing
•Mobility
Public Utilities Board
•Planning for Growth
•Aging Infrastructure
•Homelessness
•Affordable Housing
•Downtown parking/streets/traffic
What do you believe are the top 3-5 issues
facing the City of Denton?
15
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
City Council
•Competitive Rates
•Environmental stewardship
•Sufficient capacity for Growth
•Replacement of aging
Infrastructure
•Better customer service
Public Utilities Board
•Affordability of services
•Meeting green energy targets
affordably
•Growth putting strain on ability to
serve
•Age of infrastructure
•ROI of DEC
What do you believe are the top 3-5 issues
facing the City of Denton Utilities?
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
City Council
•Good to Excellent*
–Impressive, knowledgeable
leadership
–Ability to respond quickly to water
leaks
–Not many complaints. Effective
customer service
–Not enough focus on conservation
–Costs seem higher for certain
customer classes
Public Utilities Board
•Good* to Excellent
–Water quality good, well monitored
–Improvements to system staying
ahead of growth
–Improved communication on water
quality achievements
–Good balance on improvements
needed vs. rate impacts
–Better future planning needed
What is your view of how the WATER utility
is operated?
17
* Majority view 27
NEWGEN STRATEGIES AND SOLUTIONS, LLC
City Council
•Good to Excellent*
–Impressive, knowledgeable
leadership
–Ability to respond quickly to leaks
without much impact
–Facilities appear well run
–Concern over rate calculations
Public Utilities Board
•Good* to Excellent
–Recognized as leader in
wastewater industry
–Improvements to system staying
ahead of growth
–Utility is perceived to have no
known major issues
–Few hiccups recently; being
proactive with info to the public is
beneficial
–Better future planning needed
What is your view of how the
WASTEWATER utility is operated?
18
* Majority view 28
NEWGEN STRATEGIES AND SOLUTIONS, LLC
City Council
•Poor to Good to Excellent*
–Gas Plant is a huge financial
liability
–Moving smartly toward 2020 100%
renewable goal yet competitively
priced
–Deposit policy needs to be
evaluated
–New management has performed
well, transparent vs. closed
approach
Public Utilities Board
•Good* to Excellent
–Plan for DEC could have been
better planned and executed
–Morale seems to be low
–Recognized as one of the best
electric utilities by APPA
–Well managed, diversified energy
sources providing low cost power;
good planning for growth
–Being managed with greater
transparency and efficiency
What is your view of how the ELECTRIC
utility is operated?
19
* Majority view 29
NEWGEN STRATEGIES AND SOLUTIONS, LLC
City Council
•Good to Excellent
–City Council had an even split of
their view of the Utilities’ Staff
–Some customer service complaints
on being friendly but mostly good
–Lineman are very knowledgeable,
conduct themselves well and have
won awards
–Control room staff very good
–Deposit policy needs to be
evaluated
Public Utilities Board
•Good* to Excellent
–Good people concerned about losing
them
–Staff gives good presentations and
has been responsive to Board
requests
–New DME General Manager has
strong financial and operational
background; good at conveying
complex topics in simple terms
–Despite all the changes over last few
years overall experience,
knowledgeable and organized
–Energy Services group good at
managing risk for the utility
–Hard working with intent to serve
citizens of Denton but get caught in
politics
What is your view of the UTILITIES’ STAFF?
20
* Majority view 30
NEWGEN STRATEGIES AND SOLUTIONS, LLC
City Council
•Continue road reconstruction and
resurfacing
•Develop downtown Denton, Parks,
mobility and open space master
plan
•Continue strong management of
fiscal resources
•Up to date status on capital
projects i.e. streets for citizens
•Address homeless issue
Public Utilities Board
•Improve roads, congestion
•Attract businesses to bring better
paying jobs to Denton
•Improve coordination of projects to
complete in a more timely manner
•Streamline/eliminate bureaucracy,
empower staff
•Address homeless issue
What are the top 3-5 items that can be
implemented to improve the City?
21
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
City Council
•Plan for long-term water system
needs; wastewater system needs
•Communication plan for day to day
capital repair projects
•Continue to educate public on
financial commitments and budgets
•Evaluate rates and deposits
•Encourage conservation
Public Utilities Board
•Improve the planning and execution
of water and wastewater projects
•Improve employees morale
•Ensure proper planning for future
capacity needs
•Achieve 100% renewable goal
affordably
•Better communication with
residents on projects
•Address the ROI of DEC
What are the top 3-5 items that can be
implemented to improve the City’s Utilities?
22
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UTILITY MANAGEMENT STUDY
Denton Municipal Electric
TOC
33
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Study of DME
•Denton Municipal Electric (DME) Utility has undergone significant change in
the last several years specifically related to:
–Personnel and process changes
–The addition of its own generation facilities with the construction of the Denton
Electric Center (DEC); and
–Some trust and credibility concerns.
•NewGen’s scope did not include an evaluation of the changes themselves,
but the Management Study does evaluate the effect of these changes and
the state of the Utility overall.
•The Utility has experienced changes in governance and senior leadership.
DME continues to work through a “re-setting” stage.
•With clear direction from City Council and CMO, DME is redefining the
“Denton Way” with its own new leadership, processes and sharing of
services with the City.
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34
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Study of DME (cont’d)
•Overall, based on the documents reviewed, interviews conducted with DME
and City staff, CMO, Council/PUB surveys, NewGen believes DME is
operationally very well run and we did not find any “red flags” requiring
immediate attention.
•NewGen has several findings and recommendations concerning the ongoing
operation of DME which are summarized in the Executive Summary and
detailed throughout the report.
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35
NEWGEN STRATEGIES AND SOLUTIONS, LLC
What’s Working at DME
CITY •Good training programs available for employees
FINANCIAL •Cost savings after ERCOT settlement setup
INFRASTRUCTURE •DEC is running well and operated by a good team
•Robust ability to handle load growth
ORGANIZATION •One of the better organizations to work for-good people
concerned about the customers
PEOPLE •Good people/team capable of doing excellent work
•Apprenticeship Program
PROCESS / CITY •Working with Finance to setup ERCOT settlement process/
accounts
RELIABILITY /
COMPLIANCE
•Electricity Reliability and Compliance is Good (NERC certified).
DME has experienced very high levels of reliability and even
sustained significant 20 MW peak jump in the last year.
•The 2018 SAIDI/SAIFI ratings were good to excellent.
TECHNOLOGY •Best-in-class tools and technology provide protection for the
system and building blocks for design and construction
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36
Key Findings & Recommendations
Denton Municipal Electric
TOC
37
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations
Key Issue Description Recommendation Click for
More Info
COMMUNICATIONCommunication Need to improve communication with other
City departments.
a)Recommend monthly meetings with each City
department the Utilities interface with to discuss the list
of outstanding items and action items for each until the
next meeting. Once better communication is
established may be able to move to bi-monthly or
quarterly meetings.
INFO
Formal corporate
communication
function
Communication to external stakeholders has
led to misunderstandings.
a)Begin a formal stakeholder engagement process that is
ongoing and comprehensive.
b)Document “rules of engagement” that form the basis of
governance interaction and authority limits.
INFO
Silos/Need for
Improved
Coordination
Silos exist between parts of DME internally.
a)Suggest internal departmental head/ manager meetings
bi-weekly or monthly to increase collaboration and
coordination across all levels of DME.
INFO
INFO
Issues between
Engineering and
Operations
There seems to be a disconnect between
Engineering and Operations overall which is
affecting the efficiency and coordination of
these two groups of DME.
a)Some of the issues may be simply personality
differences but suggest engineers spend more time in a
formalized field training program and operations staff
work with engineering on completing O&M procedures;
look at potential team building activities as well to
improve relations.
INFO
INFO
28
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations
Key Issue Description Recommendation Click for
More Info
COMMUNICATIONLack of formal
corporate
communication
function
Communication to external stakeholders has led
to misunderstanding and miscommunication
regarding DME strategies and objectives
negatively impacting DME’s reputation within
the community and its relationship with the
City.
a)Begin a formal stakeholder engagement process that is
ongoing and comprehensive.
b)Document “rules of engagement” that form the basis of
governance interaction and authority limits.
INFO
Governance Issues
Concerns about council members either
contacting staff members directly for
information or work to be performed.
a)All requests from Council to utility or city staff needs to
go through the City Manager's office.INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
FINANCEConcern over
viability of
Denton Energy
Center
There continues to be stakeholder concern
regarding long term financial viability of the
DEC.
a)Review financials, supply contracts, opportunities to
improve the financial viability of the DEC and develop a
short-term and long-term mitigation plan.
b)Conduct or update a supply optimization study.
c)Communicate the results of the supply optimization
study to stakeholders.
INFO
INFO
Form Utilities
rates group
A Utilities rates group is needed comprised of
DME and Finance staff. It is our
understanding from staff that this is in
progress. The Energy Cost Adjustment (ECA) is
not currently being used as a true tracker of
fuel/energy costs.
a)Finalize the development of the 10-year financial
forecast including capability to run multiple scenarios
and analyze rate impact
b)Review rates structure to ensure adequate fixed cost
recovery
c)Decide as a body what the policy regarding ECA will be
going forward.
INFO
Long-term
forecasting
The Utilities Financial Strategies document
reviewed suggest an annual 20-year pro forma
be completed, but NewGen was unable to
identify or review any 20-year financial plans.
a)Although we understand the Utilities Financial
Strategies document suggests a 20-year pro forma to be
completed, at this time of market volatility we see no
benefit of forecasting beyond 10 years.
INFO
Working capital
for Enterprise
Funds
While DME meets GFOA guidelines, reserve
targets may need to be increased to allow for
larger shifts in energy pricing, especially if
hedging strategies will involve any long
positions.
a)Evaluate the need to increase target reserves.
b)Consider updating policies to address the DEC debt
payments similar to its TMPA debt reduction strategy.
INFO
Capital planning
DME has adequately planned for load growth
and has focused intently on planning for
reliability in recent years.
a)Communicate and coordinate system planning
methodology and goals throughout the organization INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
FINANCECapital planning
DME has adequately planned for load growth
and has focused intently on planning for
reliability in recent years.
a)Communicate and coordinate system planning
methodology and goals throughout the organization INFO
Concern over
viability of Denton
Energy Center
There continues to be stakeholder concern
regarding long term financial viability of the
DEC.
a)Review financials, supply contracts, opportunities to
improve the financial viability of the DEC and develop a
short-term and long-term mitigation plan.
b)Conduct or update an integrated resource planning study.
c)Communicate the results of the integrated resource
planning study to stakeholders.
INFO
INFO
Debt service
coverage is below
Fitch median of 2.1
Fitch uses guidelines to assign debt ratings in
order for the Utilities to improve debt ratings
they will need to improve debt service
coverage.
a)Consider changing policy to match Fitch guidelines
INFO
INFO
INFO
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PEOPLEMorale
At the time of the survey, staff morale was low
presumably due to changes and negative
perception of DME. However, recent
conversations with staff indicate that morale
has improved.
a)Utility leadership must help the organization continue
to move to a better future by establishing clear goals
and objectives.
b)Increase communication from DME Senior Management
to all levels of the organization.
Small groups or one-on-one communication in effort
to qualm the uncertainty and repudiate the notion
that everyone is on probation.
INFO
Succession
Planning
Succession Planning is not formalized at the
utility level and largely left up to each
manager to figure out and keep up with.
a)Develop a formal utility wide succession plan working
with City and Utility Human Resources staff.
INFO
Turnover/
resource
allocation/
acquisition
At the time of the survey, a number of
positions were open in the organization.
a)Evaluate need for open positions and set timetable to
eliminate or fill if needed. Suggest an overall FTE
analysis of the organization (in progress).
INFO
Resistance to
change
At the time of the survey the organization was
struggling with change.
a)Leadership should meet one-on-one and with
departments to explain the overall strategic plan once
developed and routinely to help staff understand
changes facing the organization.
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PEOPLELack of trust
The lack of trust is bi-directional and is outward
looking in (other city departments, Council,
CMO) and inward looking out from DME
towards the same groups.
a)Utility leadership must model the trust inwardly and
outwardly and communicate the why for changes being
made in a way that is clear and consistent over time.
INFO
Morale Morale is low amongst staff due to changes and
negative perception of DME in last few years.
a)Utility leadership must help the organization "right itself"
and move on to a better future by establishing clear goals
and objectives.
INFO
Issues between
Engineering and
Operations
There seems to be a disconnect between
Engineering and Operations overall which is
affecting the efficiency and coordination of
these two groups of DME.
a)Some of the issues may be simply personality differences
but suggest engineers spend more time in a formalized
field training program and operations staff work with
engineering on completing O&M procedures; look at
potential team building activities as well to improve
relations.
INFO
INFO
Silos/Need for
Improved
Coordination
Silos exist between parts of DME internally.
a)Suggest internal departmental head/ manager meetings
bi-weekly or monthly to increase collaboration and
coordination across all levels of DME.
INFO
INFO
33
43
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PEOPLE (cont’d)Lack of
communication
Need for better communication with other City
departments especially with the advent of more
services being moved from the utility to City
departments i.e. IT, Procurement,
Transportation, etc.
a)Recommend monthly meetings with each City
department the Utilities interface with to discuss the list
of outstanding items and action items for each until the
next meeting. Once better communication is established
may be able to move to bi-monthly or quarterly
meetings.
INFO
Lack of Succession
Planning
Succession Planning is not formalized at the
utility level and largely left up to each manager
to figure out and keep up with.
a)Develop a formal utility wide succession plan working
with City and Utility Human Resources staff.INFO
Turnover/ resource
allocation/
acquisition
Turnover is up and a number of positions are
open in the organization that have not been
filled.
a)Evaluate need for open positions and set timetable to
eliminate or fill if needed. Suggest an overall FTE analysis
of the organization.
INFO
Resistance to
change
Overall the organization is struggling with
change and not accepting either changes that
have occurred or are to come.
a)Leadership should meet one-on-one and with
departments to explain the overall strategic plan once
developed and routinely to help staff understand changes
facing the organization.
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PROCESSProcedures and
Technical
Specifications
need to be
completed, staff
trained and
published to all
parts of DME
Procedures and technical specifications exist
in various degrees of completeness focused on
new construction primarily and are not found
in one comprehensive manual.
a)Review existing procedures and technical specifications
and assign owners to complete for operations and
maintenance as well as new construction at direction of
General Manager; once complete train employees and
ensure accessibility to procedures by all staff.
INFO
STRATEGYLack of Strategic
Planning/ Overall
Planning
Continual need for strong leadership, better
communication and utility level strategic and
operational planning.
a)Recommend DME go through an externally facilitated
strategic planning process to develop a roadmap for
utility operations for the next 3-5 years followed by
monthly meetings to ensure the plan is being
implemented across the organization.
b)Recommend performing formal Strategic Planning
process at least every 5 years.
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PROCESSProcedures and
Technical
Specifications need
to be completed,
staff trained and
published to all
parts of DME
Procedures and technical specifications exist in
various degrees of completeness focused on
new construction primarily and are not found in
one comprehensive manual.
a)Review existing procedures and technical specifications
and assign owners to complete for operations and
maintenance as well as new construction at direction of
General Manager; once complete train employees and
ensure accessibility to procedures by all staff.
INFO
STRATEGYLack of Strategic
Planning/Overall
Planning
Overall need for strong leadership, better
communication and utility level strategic and
operational planning so staff knows the plan
before taking action.
a)Recommend DME go through an externally facilitated
strategic planning process to develop a roadmap for
utility operations for the next 3-5 years followed by
monthly meetings to ensure the plan is being
implemented across the organization.
b)Recommend performing formal Strategic Planning
process at least every 5 years.
INFO
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UTILITY MANAGEMENT STUDY
Denton Water and Wastewater Utilities
TOC
47
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Study of Water & Wastewater Utilities
•Denton Water and Wastewater utilities have undergone significant change in
the last several years specifically related to:
–Personnel, organizational structure and process changes
–Lack of execution with respect to capital planning
–Large amounts of capital set aside for projects that have not been started or
completed has created trust and credibility concerns
•NewGen’s scope did not include an evaluation of the changes themselves,
but the Management Study does evaluate the effect of these changes and
the state of the Utilities overall.
•The Utilities have experienced changes in governance and senior leadership.
The Utilities working through a “re-setting” stage.
•With clear direction from City Council and CMO leadership, the Utilities are
redefining the “Denton Way” with its own new leadership, processes and
sharing of services with the City.
38
48
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Study of Water & Wastewater Utilities
(cont’d)
•Overall, based on the documents reviewed, interviews conducted with the
utilities and City staff, CMO, Council/PUB surveys, NewGen believes the
water and wastewater utilities are operationally sound and we did not find
any “red flags” requiring immediate attention to address.
•NewGen has several findings and recommendations concerning the ongoing
operation of the utilities which are summarized in the Executive Summary
and detailed throughout the body of the report.
39
49
NEWGEN STRATEGIES AND SOLUTIONS, LLC
What’s Working at Water & Wastewater
ORGANIZATION •Good place to work
•Loyal staff
PEOPLE •Good people who enjoy working here
PROCESS •Development of Project Management Office (PMO)
•More data driven focus
INFRASTRUCTURE •Limited wastewater spills
•Award-winning drinking water quality
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50
Key Findings & Recommendations
Denton Water and Wastewater Utilities
TOC
51
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations
Key Issue Description Recommendation Click for
More Info
COMMUNICATIONFormal corporate
communication
function
Improve communication to external
stakeholders
a)Begin a formal stakeholder engagement process that is
ongoing and comprehensive
b)Document “rules of engagement” that form the basis of
governance interaction and authority limits
INFO
Communication Improve communication with other City
departments.
a)Recommend monthly meetings with each City
department the Utilities interface with to discuss the list
of outstanding items and action items for each until the
next meeting. Once better communication is
established may be able to move to bi-monthly or
quarterly meetings.
INFO
Execution of
capital planning
The Utilities have adequately planned for
growth and has focused intently on planning
for reliability in recent years.
a)Communicate and coordinate system planning
methodology and goals throughout the organization INFO
42
52
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations
Key Issue Description Recommendation Click for
More Info
COMMUNICATIONLack of formal
corporate
communication
function
Communication to external stakeholders has led
to misunderstanding and miscommunication
regarding the Utilities’ strategies and objectives
negatively impacting the Utilities’ reputation
within the community and its relationship with
the City.
a)Begin a formal stakeholder engagement process that is
ongoing and comprehensive.INFO
Governance Issues
Several complaints of council members either
contacting staff members directly for
information or work to be performed.
a)All requests from Council to utility or city staff needs to
go through the City Manager's office.INFO
Public Relations
Web Site –Water needs to tell the story better.
Could not easily locate the miles of water
system or source water on City’s page
Capital Project Education
a)Create a “Trophy Room” for achievements
b)Add easily understood facts for utilities
c)Improve capital project education using information,
system metrics, and measures that demonstrate the need
for capital projects and how these projects are improving
the system
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
FINANCENot spending
capital set aside
for projects
Better project definition and project
management needed to ensure only capital is
set aside as needed for needed infrastructure
projects.
a)Outcome of a formalized capital planning process is a
list of projects needed for the next 3-5 years with spend
by year (in process).
INFO
Long-term
forecasting
The Utilities Financial Strategies document
reviewed suggest an annual 20-year pro forma
be completed. NewGen was unable to identify
or review any 20-year financial plans.
a)Consider creating a 20-year forecast to comply with the
City’s policy and consider long-term rate strategies.
b)Update financial forecast tools and long-term rate
strategies.
INFO
Working capital
targets for
Enterprise Funds
While the Utilities meet GFOA guidelines,
given its substantial capital cash funding for
capital repair and replacements, restricted and
unrestricted working capital should be clearly
delineated.
a)Consider reviewing how restricted and unrestricted
working capital are allocated to ensure balances are not
improperly committed to future capital spending.
INFO
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54
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
FINANCEExecution of capital
planning
The Utilities have adequately planned for
growth and has focused intently on planning for
reliability in recent years.
a)Communicate and coordinate system planning
methodology and goals throughout the organization
INFO
INFO
INFO
Improve timeliness
of capital spending
Improve project definition and project
management to ensure capital requirements
reflect needed infrastructure projects within
planning horizon.
a)Outcome of a formalized capital planning process is a list
of projects needed for the next 3-5 years with spend by
year.
INFO
Lack of long-term
planning
The long-term financial forecast tool available
to the Utilities is not utilized.
a)Training should be provided on the use of the financial
forecast modeling tools.
b)Update financial forecast tools and long-term rate
strategies.
INFO
Debt service
coverage below
Fitch median of 2.1
Fitch uses guidelines to assign debt ratings in
order for the Utilities to improve debt ratings
they will need to improve debt service
coverage.
a)Consider changing policy to match Fitch guidelines
INFO
INFO
INFO
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
FINANCE (cont’d)Working capital
targets for
Enterprise Funds
While the Utilities meet GFOA guidelines, given
its substantial capital cash funding for capital
repair and replacements, restricted and
unrestricted working capital should be clearly
delineated to ensure no balances used to meet
targets are committed for future capital
spending.
a)Consider reviewing how restricted and unrestricted
working capital are allocated to ensure balances are not
improperly committed to future capital spending.
INFO
Long-term
forecasting
The Utilities Financial Strategies document
reviewed suggest an annual 20-year pro forma
be completed, but NewGen was unable to
identify or review any 20-year financial plans.
a)Consider creating a 20-year forecast to comply with the
City’s policy and consider long-term rate strategies.
b)Update financial tools and long-term rate strategies.
INFO
Service delivery
backlog
The Utilities made efforts to save money
through use of internal crews for capital
projects. When project scheduling and internal
staff capacity allows, this has benefited City rate
payers. However, project timelines have
suffered and/or projects are not completed.
a)Consider further supplementation of internal crews to
complete projects.INFO
Utilities rates group Form a Utilities rates group comprised of
Utilities and Finance staff.
a)Need long-term rate plan that contemplates multiple
scenarios with impacts from Council decisions such as
rate decreases and major capital purchases.
b)Finalize the development of the 10-year financial forecast
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PEOPLESuccession
Planning
Succession Planning is not formalized at the
utility level
a)Develop a formal utility wide succession plan working
with City and Utility Human Resources staff.INFO
Silos/Need for
Improved
Coordination
Silos exist between water and wastewater and
internally in each utility. Departments need to
work together better to ensure better
operations and reliability of services. Open
communication is needed between the water
and wastewater utilities and internally within
each utility i.e. plant personnel and
distribution system personnel
a)Re-instate departmental head manager meetings bi-
weekly or monthly to increase collaboration and
coordination.
b)Institute cross training sessions "lunch and learn" to
educate departments on what each other does.
INFO
Need training
program geared
towards Water
and Wastewater
Utility operations
and management
With senior staff leaving, more formal training
is needed to ensure there is no drop-off in
staff's ability to operate, maintain and manage
utilities.
a)Review any existing training activities and develop
formal training program for all water and wastewater
staff pertinent to their job and the W/WW operations,
maintenance and management principles overall.
Fulfillment maybe through associations including
AWWA or local Texas water/wastewater associations.
INFO
INFO
Resource
allocation/
acquisition
At the time of the survey, a number of
positions were open in the organization.
a)Evaluate need for open positions and set timetable to
eliminate or fill if needed. Suggest an FTE analysis of the
organization be performed.
INFO
Resistance to
change
At the time of the survey, the organization was
struggling with change.
a)Leadership should meet one-on-one and with
departments to explain the overall strategic plan once
developed and routinely to help staff understand
changes facing the organization (in process).
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PEOPLELack of trust
The lack of trust is bi-directional and is outward
looking in (other city departments, Council,
CMO) and inward looking out from the Utilities
towards the same groups.
a)Utility leadership must model the trust inwardly and
outwardly and communicate the why for changes being
made in a way that is clear and consistent over time.
INFO
Silos/Need for
Improved
Coordination
Silos exist between water and wastewater and
internally in each utility. Departments need to
work together better to ensure better
operations and reliability of services. Open
communication is needed between the water
and wastewater utilities and internally within
each utility i.e. plant personnel and distribution
system personnel
a)Re-instate departmental head manager meetings bi-
weekly or monthly to increase collaboration and
coordination.
b)Institute cross training sessions "lunch and learn" to
educate departments on what each other does.
INFO
Lack of
communication
Need for better communication with other City
departments especially with the advent of more
services being moved from the utility to City
departments i.e. IT, Procurement,
Transportation, etc.
a)Recommend monthly meetings with each City
department the Utilities interface with to discuss the list
of outstanding items and action items for each until the
next meeting. Once better communication is established
may be able to move to bi-monthly or quarterly
meetings.
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PEOPLE (cont’d)Resource
allocation/
acquisition
A number of positions are open in the
organization that have not been filled.
a)Evaluate need for open positions and set timetable to
eliminate or fill if needed. Suggest an FTE analysis of the
organization be performed.
INFO
Resistance to
change
Overall the organization is struggling with
change and not accepting either changes that
have occurred or are to come.
a)Leadership should meet one-on-one and with
departments to explain the overall strategic plan once
developed and routinely to help staff understand changes
facing the organization.
INFO
INFO
Need training
program geared
towards Water and
Wastewater Utility
operations and
management
With changeover in senior staff leaving, more
formal training is needed to ensure there is no
drop-off in staff's ability to operate, maintain
and manage utilities.
a)Review any existing training activities and develop formal
training program for all water and wastewater staff
pertinent to their job and the W/WW operations,
maintenance and management principles overall.
Fulfillment maybe through associations including AWWA
or local Texas water/wastewater associations.
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PROCESSStandard
operations
procedures /
technical
specifications
The Utilities need more formalized operations
procedures and technical specifications for
infrastructure to reduce reliance on the
knowledge of key individuals for such
information.
a)Develop procedures and specifications that define the
"Denton Way" of operating, maintaining the utility
infrastructure and technical specifications for any and
all equipment to be installed.
INFO
Unnecessary
emergency work
due to improper
system
operations.
Pressure management decisions may cause
undue stress on pipes. Pay system is not setup
appropriately for crews working days on end
to fix leaks.
a)Need overall system SCADA map at each water plant
and in main office which shows water plants and T&D
system network with system pressures and
maintenance identified. Need to consider and resolve
call in pay issues for emergency work through policy
revision or review for staff understanding.
INFO
Lacking long term
system planning
Largely system planning is performed by the
directors and outside engineering firms and
while there are some notable items that have
been developed i.e. Wastewater asset
management, fundamental day to day system
planning and modeling needs should have a
more critical role in planning to ensure
reliability, efficient operations, and improved
capital planning.
a)We understand Denton has hired one individual to lead
up system planning and asset management group and is
developing a team to perform system planning and
modeling. Denton should also bring in experienced
consultants different from the same ones involved with
the Directors now to advise on critical issues in the next
1-3 years.
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
PROCESSLack of standard
operations
procedures/technic
al specifications
The Utilities did not appear to have formalized
operations procedures nor technical
specifications for items being installed in the
infrastructure but rely on knowledge of key
individuals for such information.
a)Develop procedures and specifications that define the
"Denton Way" of operating, maintaining the utility
infrastructure and technical specifications for any and all
equipment to be installed.
INFO
Unnecessary
emergency work
due to improper
system operations.
Water leaks due to mismanagement of system
putting too much stress on pipes which are
cracking. Pay system is not setup appropriately
for crews working days on end to fix leaks.
a)Need one overall system map at each water plant and in
main office which shows water plants and distribution
system network with MAOP system pressures identified.
Need to resolve pay issue for emergency work.
INFO
Lacking long term
system planning
Largely system planning is performed by the
general managers and outside engineering firms
and while there are some notable items that
have been developed i.e. Wastewater asset
management, fundamental day to day system
planning and modeling needs to have a more
critical role to ensure reliability of the system,
correct operations of the system and proper
capital planning.
a)We understand Denton has hired one individual to lead
up system planning and asset management group and is
developing a team to perform system planning and
modeling removing these duties from the general
managers. Denton should also bring in experienced
consultants different from the same ones involved with
the GMs now to advise on the best path practically
forward to mitigate critical issues in the next 1-3 years.
INFO
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations (cont’d)
Key Issue Description Recommendation Click for
More Info
STRATEGYStrategic
Planning/ Overall
Planning
Overall need for strong leadership, better
communication and utility level strategic and
operational planning so staff is fully informed
of the plan before taking action.
a)Recommend the Utilities go through an externally
facilitated strategic planning process to develop a
roadmap for utility operations for the next 3-5 years
followed by monthly meetings to ensure the plan is
being implemented across the organization.
b)Recommend performing formal Strategic Planning
process at least every 5 years.
INFO
TECHNOLOGYTechnology could
play a bigger role
in the operations
of the Utilities.
The Utilities are operated very manually.
There are numerous areas where technology
could improve efficiency, data storage and
access, and operations overall. No Technology
Roadmap currently exists and items to be
evaluated include: One System Control Room
Map linked to SCADA systems, AMR/AMI,
Automation Meter shop automation and
more comprehensive GIS/Asset Management
Data to support system operations, planning
and modeling, etc.
a)Develop a Technology Roadmap for each Utility
including key stakeholders and IT staff to identify
technology needs, priorities, timeframes and costs for
the next 3-5 years as a starting place; execute
Technology projects by priority once Roadmap is
complete and agreed upon.
INFO
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62
Key Findings & Recommendations
Shared Services
TOC
63
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Key Issues & Recommendations
Key Issue Description Recommendation Click for
More Info
PROCESSDelays in
Purchasing Goods
and Services
New purchasing procedures, some resistance to
change, overworked Purchasing staff are
causing some delays in purchasing goods and
services.
a)Evaluate new Purchasing procedures for efficiencies and
improvements, whether additional training is needed for
users and need for short-term purchasing staff
augmentation to get tasks completed to shave delays in
purchasing processes.
INFO
Fixed Asset
Accounting
Fixed asset accounting problems stem from
general project management deficiencies in
planning and closing projects, and improper
record-keeping can significantly affect rate
options.
a)Review new capital projects and project management
procedures instituted by the PMO office to see if they
address these issues.
INFO
INFO
INFO
INFO
INFO
FINANCEConcern over the
impact of rate
changes to long-
term viability of
the Utilities.
Rate changes have been made recently by the
City without reviewing the long-term financial
forecast of the Utilities, which may affect the
financial sustainability of the organization.
a)Review and model the CAPEX and OPEX needs of the
Utilities over the next 5-10 years to evaluate financial
needs and impact to rates.
INFO
INFO
INFO
INFO
INFO
INFO
INFO
STRATEGYA Utilities rates
group is needed
comprised of the
Utilities and
Finance staff for
the rates it charges
Need long term rate plan that contemplates
multiple scenarios with impacts from Council
decisions such as rate decreases and major
capital purchases
a)Finalize the development of the 10-year financial
forecast.
b)Review rates structure to ensure adequate fixed cost
recovery.
INFO
INFO
INFO
54
64
COMMUNICATIONS
TOC
65
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Common Thread
•While the Utilities are well run operationally, the areas that need
improvement have one common thread.
•There is a lack of a formal corporate communication function which has led
to misunderstanding and miscommunication regarding the Utilities’ strategies
and objectives that have negatively impacted the Utilities’ reputation within
the community and its relationship with the City.
–The perceived lack of transparency regarding the DEC created a lack of trust and
credibility of DME with the Council and the CMO’s office.
–The public’s negative perception of the Utilities has impacted morale.
56
BACK
66
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Common Thread (cont’d)
•Silos exist
–Within DME (namely operations and engineering) due, in large part, to the lack of
communication and coordination affecting overall efficiency of these functional
areas.
–Between and within the Water and Wastewater Utilities due, in large part, to the
lack of communication and coordination creating redundancies between the
Utilities.
•Need for better communication with other City departments, especially with
more services moving to the City, such as IT and Procurement.
•Overall need for strong leadership throughout the organization, better
communication and utility level strategic and operational planning so staff
knows the plan before needing to take action.
57
BACK
67
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Governance
•Several complaints of council members either contacting staff
members directly for information or work to be performed.
•Governance policies are not separate but listed under the roles
and powers of each entity involved i.e. City Council, Public
Utilities Board, City Manager etc.
•Governance policies do not specifically spell out rules of
engagement and/or communications or directives allowed
between parts of City government i.e. Council, PUB, CMO’s
office, City staff.
•Recommend documenting “rules of engagement” that form the
basis of governance interaction and authority limits i.e.
Council, PUB cannot direct staff but must funnel all request
through the CMO.
58
BACK
68
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Governance (cont’d)
•City Manager has instituted rules of engagement to funnel all
requests from Council, PUB through one City staff person
(chief of staff) vs. Council, PUB members going to staff directly.
•Large amount of data requests by Council and PUB taking City
staff time and attention away from daily priorities.
•Governance policies and rules of engagement should focus on
keeping entities in their respective “swim lanes” i.e. Council,
PUB-setting policy and review expenditures and CMO and staff
executing those policies with sustainable strategic and tactical
plans that survive regardless of changeover in Council and
PUB membership.
59
69
Public Relations
TOC
70
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Public Education and Advertorials
•Web Site
–Water needs to tell the story better
•Could not locate miles of water system or source
water easily on City’s page
•Capital Project Education
–2019 Construction Guide Looks Great, but
focuses primarily on road-driven CIP
–Video of Project Types, with timing and
customer impacts
61
71
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Create “Trophy Room” for
Achievements
–Superior Drinking Water
–Best Tasting Water at
Texas Water
•National if ranked
–Wastewater Collection
System Asset
Management Program
•Water Environment
Association of Texas
Sidney L. Allison Award
Public Relations Recommendations
62
BACK
72
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Trophy Cabinet
63This Photo by Unknown Author is licensed under CC BY-NC-ND
Water and
Wastewater
3-Time
Best
Tasting
Water
Superior
Public
Water
System
Wastewater
Sidney L
Allison
Award
LEED
Certified
City
APPA
Excellence
in
Reliability
73
FINANCE
TOC
74
Financial Practices
Denton Municipal Electric
TOC
75
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Financial Practices – Electric
•DME needs to review the financial viability of the DEC with a view on the
potential revenues needed to offset the increasing debt burden in 2019.
–The DEC has been a lightning rod for public discussion and consternation in the
community
–It is a state of the art power plant but appears to be overbuilt and therefore more
expensive for DME and Denton power needs
•Concern of the impact of rate changes to long-term viability of the Utility
•Suggest need for a Utility Rates group comprised of DME and Finance staff
working together to assess financial needs of the organization and impact to
rates
•Transmission Cost of Service has a very healthy return at 28%
66
BACK
76
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Financial Policy Review
•Annual Financial Strategies Review and Documented Path Forward
–Denton has done a good job reviewing financial policies annually for DME as well
as Water and Wastewater Funds
•The utilities’ Financial Strategies and Practices were compared to the best
practices promulgated by the Government Finance Officers Association
(GFOA)
•NOTES:
–Key policies in this section are identified in “quotes”
–Adherence to these policies is noted in BLACK font
–Comments and recommendations are annotated in RED font
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison
Area: Working Capital Targets for Enterprise Funds
(Policy date February 2011)
•“GFOA recommends that local governments adopt a target amount of
working capital to maintain in each of their enterprise funds. Ideally, targets
would be formally described in a financial policy and/or financial plan.”
–DME meets this guidance.
•DME may need to consider increasing the reserve targets to allow for larger shifts in
energy pricing, especially if hedging strategies will involve any long positions.
•DME may need to consider updating its policies to address the DEC debt payments
similar to its TMPA debt reduction strategy
68
Reserve Type Target
Working Capital 8%
Operating Reserves 8-12%
Operating Days 60-75 Days
BACK
78
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Establishing Government Charges and Fees
(Policy date February 2014)
•DME uses a 1.25 debt service coverage ratio in setting rates
–This is a good policy and helps ensure bond payments adequately covered.
–Per policy, this may be supplemented by operating reserve funds to meet 1.25
•While City policy allows for this use of reserves, DME should be cautious in its
application as some bond pledges may specifically prohibit use of reserves.
•DME meets this best practice guidance, with only the one exception below:
–“Utilize long-term forecasting… If the charges will recover costs associated with
other long-term plans, such as a multi-year capital plan, a longer-term service fee
plan should be consistent, recognizing the plan may be amended to reflect
changing conditions in the future.”
•The Utilities Financial Strategies document reviewed by NewGen suggested an annual
20-year pro forma be completed, but NewGen was unable to identify or review any 20-
year financial plans for DME. If not already created, this should be done to comply with
the City’s policy and to consider long-term rate strategies.
69
BACK
79
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Capital Planning Policies
(Policy date September 2013)
•DME meets this guidance, with the few exceptions below:
–“To create a sustainable capital plan, the finance officer and other participants in
the capital planning process need to consider all capital needs as a whole, assess
fiscal capacity, plan for debt issuance, and understand impact on reserves and
operating budgets, all within a given planning timeframe.”
•Until recently, the Denton Finance Department has had limited involvement and project
accounting for capital planning has been challenging.
•While this is being corrected, NewGen believes this historical disconnect between City
finance and DME financial planning created several challenges that DME is still facing
today.
–“Provisions for monitoring and oversight of the CIP program, including reporting
requirements and how to handle changes and amendments to the plan.”
•Uncertainty about project funding, project viability and project prioritization has damaged
confidence in PUB and DME decision making.
•Multiple efforts have recently been made to remedy this, but the systems and practices
to ensure clarity in capital project monitoring are still a work in progress.
70
BACK
80
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Communicating Capital Improvement Strategies
(Policy date February 2014)
•DME has suffered significant loss in public trust by not following this practice.
•Examples are below
–“Capital programs gain from the support of the community both to ensure that
capital projects will deliver expected and desired outcomes as well as to ensure
there is adequate support for the investment.”
•The Renewable Resource Plan calls for the Power Purchase Agreements needed to
reach the 100% renewable goal to be completed by 2020. However, the costs and risks
in delivering on the 100% plan may not have been clearly communicated and rate
increases (if any) related to 100% renewable sources may or may not be well-received
by DME customers.
–“…recommends that organizations develop a communications plan for public
participation focused on explaining capital needs, options, and strategies and
facilitating feedback in advance of any major capital program. ”
•The Denton Energy Center became a very sensitive community issue, but only after the
decision was made.
71
BACK
81
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Capital Project Monitoring and Reporting
(Policy date October 2017)
•DME has a strong history of capital project management and seeing projects
through has assisted in its FERC accounting and TCOS filings.
•DME meets this guidance, which is generally described below.
–“1. Identify and incorporate legal and fiduciary requirements into capital
monitoring and reporting processes.”
–“2. Identify relevant data for external and internal stakeholder information needs.”
–“3. Plan and design systems to collect, store, and analyze project data and to
report results.”
–“4. Regularly monitor capital projects’ financial and project activity information.”
–“5. Reporting on project status and activities.”
–“6. Project close-out.”
–“7. Evaluate monitoring and reporting activities.”
72
BACK
82
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Creating a Comprehensive Risk Management Program
(Policy date March 2009)
•DME has contracted with Deloitte to evaluate and set in place plans to
mitigate risk throughout DME
–NewGen generally concurs with Deloitte recommendations
•DME has already started change efforts or implementation of several
recommended strategies including:
Reviewing and updating the Enterprise Risk Management Policy
Evaluating and planning to implement Energy Trading Risk Management system
Improving clarity in boundaries in Delegation of Authority for transactions
Clarifying hedge strategies, limits and quantifiable objectives
Improved training for PUB members
73
83
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Evaluating Service Delivery Alternatives
(Policy date September 2018)
•DME meets this guidance, with the few exceptions below:
–“Consideration must be given to how service delivery is affected by
demographics, the economy, geography, citizen sensitivity and the local political
environment.”
•Service delivery alternatives for DME include the DEC. While has been mentioned
previously, alternatives to DEC may not have been given enough consideration to gain
continued public buy-in.
–“The government should establish clear expectations and standards in analyzing
service delivery options. ”
•Both DEC and EMO functions have been questioned recently. DME needs to spell out its
expected financial outcomes and analyze the cost and benefits of each.
•NewGen recommends benchmarking each against similar market or comparator utilities
to show the relative benefit of each. This analysis should be shared with the PUB,
Council and the public at large.
74
84
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Key Issues in Succession Planning
(Policy date February 2011)
•DME needs to update its succession planning
–“Many governments face the challenge of ensuring continuity and consistency of
service delivery due to employee turnover. ”
•DME has undergone significant change in senior leadership.
•Filling key roles has been challenging and succession plans are unclear.
•DME needs to solidify management and support function roles
–“Develop written policies and procedures to facilitate knowledge transfer.”
•DME’s multiple reorganizations has also changed the nature and responsibilities for a
number of roles
•Documenting expectations for each position is a key first step
•Knowledge management practices and cross training may help DME cope with any
future turnover
75
BACK
85
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Technology in Capital Planning and Management
(Policy date October 2011)
•This best practice calls for “Capital Planning for multi-year capital forecasting
that identifies needs of new items, replacement items, and major
renovations.”
–Denton clearly meets this guidance
76
•DME has a very solid approach to
technology in capital planning
–Tech Services, in coordination with DME,
maintains 5-Year Roadmap
•This list of major initiatives, confirming funding
status and planned timelines
...
…
…
…
…
…
…
86
Financial Practices
Denton Water and Wastewater Utilities
TOC
87
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Financial Policy Review
•Annual Financial Strategies Review and Documented Path Forward
–Denton has done a good job reviewing financial policies annually for DME as well
as Water and Wastewater Funds
•Favorable AA-Bond Rating from S&P –Report from March 14, 2019
–Related to Denton Utility System Revenue Debt
–Per S&P’s Report
•“We consider the utility’s financial management policies and practices very strong…”
•“Extremely strong liquidity and reserves”
•“Very strong fixed-charge coverage and…plans to cash fund more than half of its capital
improvements plan (CIP).’
•The utilities’ Financial Strategies and Practices were compared to the best
practices promulgated by the GFOA
78
88
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison
Area: Working Capital Targets for Enterprise Funds
(Policy date February 2011)
•“GFOA recommends that local governments adopt a target amount of
working capital to maintain in each of their enterprise funds. Ideally, targets
would be formally described in a financial policy and/or financial plan.”
–Denton Water and Wastewater meets this guidance.
•Given its substantial cash funding for capital repair and replacements, restricted and any
unrestricted working capital should be clearly delineated to make sure no balances used
to meet targets are committed for future capital spending.
•Appropriable balances reported in the Budget exclude Impact Fees, but do not appear to
exclude the $1M Development Plan Line Reserve called for in the financial policies.
79
Reserve Type Water Target Wastewater Target
Working Capital 8%8%
Operating Reserves 25-42%20-31%
Operating Days 120-180 Days 100-140 Days
BACK
89
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Establishing Government Charges and Fees
(February 2014)
•Denton W/WW meets this guidance, with the few exceptions below:
–“Utilize long-term forecasting… If the charges will recover costs associated with
other long-term plans, such as a multi-year capital plan, a longer-term service fee
plan should be consistent, recognizing the plan may be amended to reflect
changing conditions in the future.”
•The Utilities Financial Strategies document reviewed by NewGen suggested an annual
20-year pro forma be completed, but NewGen was unable to identify or review any 20-
year financial plans for Denton W/WW. If not already created, this should be done to
comply with the City’s policy and to consider long-term rate strategies.
–“State whether the jurisdiction intends to recover the full cost of providing goods
and services. Set forth under what circumstances the jurisdiction might set a
charge or fee at more or less than 100 percent of full cost. If the full cost of a
good or service is not recovered, then an explanation of the government's
rationale for this deviation should be provided.”
•Recent rate reductions signal that the budgeting practices or strategy for cash-funding a
portion of CIP has changed or may not have been consistent with the longer term
financial plan.
80
BACK
90
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Establishing Government Charges and Fees (cont’d)
(Policy date February 2014)
•Denton W/WW uses a 1.25 debt service coverage ratio in setting rates
–This is a good policy and helps ensure bond payments are adequately covered.
–Per policy, this may be supplemented by operating reserve funds to meet 1.25
•While City policy allows for this use of reserves, Denton W/WW should be cautious in its
application as some bond pledges may specifically prohibit use of reserves.
81
BACK
91
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Capital Planning Policies
(Policy date September 2013)
•Denton W/WW meets this guidance, with the few exceptions below:
–“To create a sustainable capital plan, the finance officer and other participants in
the capital planning process need to consider all capital needs as a whole, assess
fiscal capacity, plan for debt issuance, and understand impact on reserves and
operating budgets, all within a given planning timeframe.”
•Until recently, the Denton Finance Department has had limited involvement and project
accounting for capital planning has been challenging.
•While this is being corrected, NewGen believes this historical disconnect between City
finance and W/WW financial planning created several challenges that Denton W/WW is
still facing today.
–“Provisions for monitoring and oversight of the CIP program, including reporting
requirements and how to handle changes and amendments to the plan.”
•Project funding and significant excess transfers without a clear plan have damaged
confidence in cash funding needs within rate revenue requirements for W/WW.
•Multiple efforts have recently been made to remedy this, but the systems and practices
to ensure clarity in capital project monitoring are still a work in progress.
82
BACK
92
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Communicating Capital Improvement Strategies
(Policy date February 2014)
•Examples for areas of improvement are below
–“Capital programs gain from the support of the community both to ensure that
capital projects will deliver expected and desired outcomes as well as to ensure
there is adequate support for the investment.”
•Cash capital has been consistently set aside, which has been seen as very favorable
when reviewed by bond rating agencies. Denton W/WW has not been effective in
consistently delivering on planned capital project implementation and have accumulated
significant cash funding as a result. This build up of cash, following years of rate
increase without clear understanding, has eroded confidence in the practice.
–“…recommends that organizations develop a communications plan for public
participation focused on explaining capital needs, options, and strategies and
facilitating feedback in advance of any major capital program. ”
•Denton W/WW and City leadership are instituting a Project Management Office, which
will aid in successfully meeting this best practice.
83
BACK
93
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Evaluating Service Delivery Alternatives
(Policy date September 2018)
•Denton W/WW meets this guidance, with the few exceptions below:
–“Consideration must be given to how service delivery is affected by
demographics, the economy, geography, citizen sensitivity and the local political
environment.”
•Denton W/WW has made efforts to save money through the use of internal crews for
capital projects. When project scheduling and internal staff capacity allows, this practice
has been to the benefit of Denton rate payers.
•City staff may create cost savings from internal crews, but savings and quality of service
may be overstated if project timelines suffer or the project are not being completed.
•Denton should consider further supplementing internal crews given the volume of
projects that are backlogged.
–“The government should establish clear expectations and standards in analyzing
service delivery options. ”
•For example, if a standard was set that employees would consistently provide the
highest value possible, certain activities (such as mowing around water facilities) may be
considered for outsourcing or best completed by other departments with routine outdoor
maintenance duties.
84
BACK
94
NEWGEN STRATEGIES AND SOLUTIONS, LLC
GFOA Best Practice Comparison (cont’d)
Area: Technology in Capital Planning and Management
(Policy date October 2011)
•Denton W/WW meets much of this guidance, but could improve as outlined
below.
–“Alignment with other organization-wide planning efforts will avoid redundant
systems and will provide a greater opportunity for systems to efficiently support
end-to-end business processes.”
•Denton W/WW has limited strategic coordination with the Tech Services function. One
example that merits review is the use various fiber backbones to support SCADA and
possible, while limited, information sharing for non-sensitive operations data.
–“…analyze the projected benefits, costs, and risks in moving to a new system to
determine if there is a suitable business case for moving forward.”
•Denton W/WW should reconsider Advanced Metering Infrastructure (AMI). The meter
reading requirements for water is substantially more time consuming than getting
electricity usage from smart meters throughout the City. Neither DME nor Denton W/WW
are getting the full benefit of smart meters since the meter reading function is still
required on a monthly basis. If AMI is not deployed for Denton W/WW, a review of the
meter reading function may result in additional cost assignment to W/WW.
85
BACK
95
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Capital Planning
•Money has been set aside for capital projects for several years with no real
plan to spend the money causing CMO and Council to question the need for
the capital money, planning abilities of the utilities and ability to get projects
done in a timely fashion especially in relation to public works and
development projects.
•Both the Water and Wastewater Utilities need to develop a program to
execute the Capital Plan.
86
BACK
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water Capital Project Transfers
87
6.8
8.0
11.6 11.7
5.3 5.0 5.6 5.2
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
FY15 FY16 FY17 FY18MillionsWater
Transfers to Projects Versus Capital Spending
Transfer Actual Actual Expense
1.5
4.5
10.5
17.0
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
FY15 FY16 FY17 FY18MillionsWater
Transfers in Excess of Capital Spending
Cumulative Excess After Expense
Project funding in water is building up but expenses are not keeping pace. Large
projects and a total 5-year CIP of over $111 Million can create backlogs, but it was not
apparent during our interviews why this level of transfers were accumulating in the
most recent years.
97
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Wastewater Capital Project Transfers
88
4.1
5.5
10.3
8.6
1.6
3.0
4.4
2.9
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
FY15 FY16 FY17 FY18MillionsWastewater
Transfers to Projects Versus Capital Spending
Transfer Actual Actual Expense
2.4
5.0
10.8
16.6
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
FY15 FY16 FY17 FY18MillionsWastewater
Transfers in Excess of Capital Spending
Cumulative Excess After Expense
Project funding in wastewater is also building; expenses are much less than transfers.
With projects scheduled for the next 5-year CIP totaling almost $50 Million, the $16
Million may be fully assigned. Regardless, it would seem the project spending would
catch up to the transfers as more construction is completed on time.
98
Budget Process
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Budget Process
•From interviews, we understand the budget process was not previously
handled the same as other City departments
–This is likely related to both the role of PUB and decentralized Finance functions
•As of FY 2020 budget setting, DME, Water and Wastewater are now
submitting budget packets similar to other departments
–NewGen sees this change as a very positive step in getting PUB-directed
departments in sync with City-wide budgeting practices
–This, like most change, may create some discomfort in the first few years
–Similar budget review will help build confidence in budgeted expenses
–The typical calendar for the new budget process is detailed on the following page
•Better budgets will produce more accurate revenue requirements that the
PUB and Council can rely on to forecast costs and set rates appropriately
90
BACK
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
2020 Budget Process
April
CIP submissions due to
Finance
City Manager /ACM
Review of Utilities
Budgets
May
Utilities Budgets Due to
Finance
Public Utilities Board
Reviews Utility Budgets
and CIP
June
Public Utilities Board
reviews changes/updates
to Utilities Budgets
PUB approves Utilities
Budgets and CIP
Provide proposed rate
increases
July
PUB reviews any
proposed Utilities Rate
Changes
Proposed Utility Budgets
and CIPs submitted to
City Council and filed
with City Secretary
August
Council Budget
Workshop (First)
Utilities contacts Public
Communications Office
to begin work on Rate
Brochure
Council Meeting: Budget
Workshop (Second)
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Cost Allocation in Budgeting
•Denton has fully allocated costs from General Fund, IT and Other Internal
Service Funds
•Given the level of costs these represent, these allocation amounts should be
reviewed and updated annually
92
102
INFRASTRUCTURE
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103
Infrastructure Condition Assessment
Denton Municipal Electric
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
System Condition
•Electric system site visits:
–Arco Substation
–Hickory Substation
–Locust Substation
–McKinney Substation
–Denton Energy Center (DEC)
–System Operations Center (SOC)
•Reviewed inspection and maintenance practices
•Reviewed system planning studies and capital improvement plans
–Included comprehensive 5-year Roadmap
•List of major initiatives, confirming funding status and planned timelines
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Substation facilities are relatively
new; records show in-service date
of June 2016
•Design and construction follows
best utility practice
•Relay and protection schemes and
SCADA systems are considered to
be best in class
•Inspection, testing, and
maintenance practices are well
above average
•Overall facility condition is
excellent
Arco Substation
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Hickory Substation facilities are
among the oldest on DME’s
system; records show some
equipment with initial in-service
date of April 1968
•Some of the Hickory Substation
facilities have been upgraded
•Older substation facilities have
been well maintained, but are due
for upgrade/replacement
Hickory Substation
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•New Locust Substation is under
construction
•New substation design,
construction, and configuration is
similar to Arco and McKinney
•Old Locust Substation is relatively
dated; records show in-service date
of major equipment to be May 1980
•Facilities have been well
maintained, but are due for
upgrade/replacement
Locust Substation
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Substation facilities are relatively
new; records show in-service
date to be June 2015
•Design and construction follows
utility best practice
•Relay and protection schemes
and SCADA systems are
considered to be best in class
•Inspection, testing, and
maintenance practices are well
above average
•Overall facility condition is
excellent
McKinney Substation
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Denton Energy Center
(DEC) is a 225MW generating
plant including 12 Wartsila gas-
fired engines
•DEC became operational in July
2018 and provides capacity and
price hedging for DME’s
renewable energy program
•DEC facilities are well maintained
and are in excellent condition
Denton Energy Center
100
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Denton System Operations
Center (SOC) is the focal point for
daily management, dispatch service,
emergency response and restoration
for Denton’s utility systems
•One half of the SOC deals with the
City of Denton’s water, wastewater,
and solid waste systems
•One half of the SOC deals with
DME’s electric transmission and
distribution system
•The SOC became operational in
2012 and has undergone periodic
technology upgrades
•SOC facilities are ranked to be best
utility practice
System Operations Center
101
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Review of Periodic Inspection &
Maintenance Practices
•Review included:
–Checkout summary for new construction
–Weekly substation inspections / reports
–Infrared inspection of substations and transformers
–Breaker testing and maintenance (15kV, 69kV, and 138kV)
–SF6 breaker gas analysis
–Substation transformer oil and dissolved gas testing
–Relay testing
–Substation battery/charger inspection and maintenance
–Pole inspection program
–Tree trimming program
•DME’s inspection and maintenance practices ranked good to excellent
102
112
Infrastructure Condition Assessment
Denton Water and Wastewater Utilities
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
NewGen reviewed water infrastructure in the field
including the Lake Lewisville water plant and
several water tanks.
•In general, water plant was clean and
appeared well-maintained. Good
housekeeping practices exist and staff
interviewed seemed to understand the
necessity of their jobs to produce safe, clean
drinking water.
•Only issue was with the lack of coordination
with the water distribution staff which may have
caused over pressurization of water distribution
system and one or more water line breaks.
•There needs to a shared SCADA system
showing the water plants and the distribution
system at the plants and in the distribution
offices as well with current system data
available.
•Tanks were recently painted and did not exhibit
any discoloration of the metal structures nor
rust.
Water System
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
NewGen reviewed wastewater infrastructure
in the field including the wastewater plant and
one lift station at the wastewater plant.
•In general, wastewater plant was not clean
but appeared to be operating in good
condition. Good housekeeping practices
are not being followed, unnecessary items
were left around offices and parts of the
plant vs. being stored in proper places or
trash being thrown away. In general, most
areas were trashy and not well kept.
•A “temporary” area with blue sheeting
covered one of the sand filters which are
not in use and apparently have not nor will
be for some time causing a safety hazard.
•Staff interviewed seemed to understand
the necessity of their jobs to produce safe,
reclaimed wastewater not overflowing or
spills from facilities.
Wastewater System
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•One issue was with the lack of
technology, manual process and only one
operator trained on how to operate the
digester solids belt press to the drying
beds which makes it challenging to keep
the solids from overflowing especially on
weekend and holidays. Operator has to
manually check the belt press even on
weekends and holidays due to the lack of
cross-training and technology
improvements.
•Wastewater Plant Not Integrating on City
Network
•While we understand it is a wastewater
plant and inherently is dealing with a
nastier product than the water plant, we
have served as supervisors and
operators in other plants as well have
assessed many plants and have seen
pride in the staff keeping the quarters
clean and tidy.
Wastewater System (cont’d)
106
116
PEOPLE
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Succession Planning
•NewGen was not provided a written Succession Plan for the Utilities. Verbal
discussion was held on some succession planning initiatives.
•Succession planning and employee development is largely left up to
individual supervisors and managers.
•The Utilities are working with Human Resources to develop a Utility wide
Succession Plan and accompanying Employee Development Plan for all
employees.
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Human Resources
•NewGen did not conduct HR interviews or an independent review of
specific HR practices. Observations here were gathered from
interviews and are for thoughtful consideration only. NewGen does
not make a recommendation to change policies or practices outside
of further review.
•Finding, hiring and retaining qualified staff has been difficult.
–Could benefit from a Utilities Career website and video, similar to Fire
and Police Careers links
•Sick leave may be too generous. Accruing 10 hours each month up to
a maximum 720 hours creates substantial liabilities and may create
sense of entitlement. Perceived inequity by those who are not out
sick may create moral hazard to abuse sick days.
–Combination of more guilt-free, general paid time off bank of hours, with
backstops in catastrophic leave policy and short-term disability coverage
(already offered) may improve benefit plan offering and work scheduling
109
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Organizational Assessment - Overview
•NewGen performed an overall Organizational Assessment of the Utilities
which reviewed all parts of the Utilities including People, Process, Data,
Financial, Technology, Infrastructure to identify what is working and what
needs improvement.
110
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Consider moving under
common Assistant or
Deputy City Manager
Recommended Organizational Changes
111
121
Organizational Structure
Denton Municipal Electric
TOC
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Organizational Structure
•Overall the structure is “chunky”
–Numerous departments and layers of management that would not seem to be
needed for a utility of DME’s size
•Structure lends to silos at the managerial level
•Seems to work at the “operational level” where the field work takes place
•NewGen recommends a deeper analysis before making any organizational
changes including:
–Full FTE analysis
–Evaluation of need for open positions
–Management layer and span of control analysis
–Integration with formalized Succession Plan
113
BACK
123
Organizational Structure
TOC
Denton Water and Wastewater Utilities
124
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Organizational Structure
•Organizational changes recently made to separate duties
of General Managers into 2 parts 1) Transmission &
Distribution System 2) Plants and Meter shop
–No one person responsible for water utility and
wastewater utility
–Role confusion and disorganization due to new
organizational chart, roles not documented nor
defined clearly
–Staff below management level has adapted and
continues to bring stability to utility operations despite
changes
115
BACK
125
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Organizational Structure
•Changes recently made to separate functions from each utility
that can/should reside at the City level including parts or all of
finance, engineering, capital projects, procurement, information
systems, transportation and warehousing
–New procedures need to continue to be written and training
provided to staff to avoid confusion going forward to
develop the “Denton Way”
–Needed to modernize and formalize manual and historical
processes that need updating and streamlining
–Clear communication needed to ensure smooth change
management of operations and areas affected
–Some system planning and modeling staff needed at utility
level for sustainability of operations and to assist with
capital planning functions
116
BACK
126
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Organizational Structure
•New organizational structure and key hires are needed
for clarity, give new direction with experienced leadership
–Suggest organizational structure with either experienced overall
General Manager for both utilities or separate GMs
–Move one existing position to system planning function to bring
all system modeling and planning functions in house for both
water and wastewater
–Other suggested organizational changes are shown in the
following pages with key themes of consolidation and
streamlining of management layers and positions and improving
span of control
117
127
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Move under System
Planning & Modeling
organization
System Planning &
Modeling
WATER ADMINISTRATION
118
128
NEWGEN STRATEGIES AND SOLUTIONS, LLC
System Planning & Modeling
WATER UTILITIES
119
WATER & WASTEWATER
SUPERINTENDENT
129
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Consider moving
Pretreatment
Operations to
Wastewater
organization
System Planning
& Modeling
Move under System
Planning & Modeling
organization 120
WASTEWATER
UTILITIES
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Organizational Structure
•NewGen recommends a deeper analysis before making any organizational
changes including:
–Full FTE analysis
–Evaluation of need for open positions
–Management layer and span of control analysis
–Integration with formalized Succession Plan (being recommended in this report)
121
131
PROCESS
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Support Services
•Need for better communication with other City departments especially with
more services moving to City departments i.e. IT, Procurement,
Transportation, etc.
•Process changes instituted in the Procurement area by the City to develop
and establish standard policies and procedures are good to see. The City
should recognize the impact on DME and all parts of the City which were not
accustomed to standard ways of centralized procurement.
–Previously, DME procured supplies/equipment themselves as needed.
–Implementation of new policies was disruptive and needs to be more efficiently
planned for in the future.
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BACK
133
NEWGEN STRATEGIES AND SOLUTIONS, LLC
System Planning & Modeling – DME
•DME has a fairly robust system planning and modeling function that is used
to develop its capital plans.
•Engineers work with operations to identify areas of the system needing
hardening in advance of actual need for the improvements.
•Focus has been on large improvements to the transmission backbone,
substations and some parts of the distribution system.
–NewGen understands there are few areas of the distribution system that need
hardening to avoid local reliability issues.
•Overall system reliability is good for DME with few outages of any duration.
124
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
System Planning & Modeling –
Water/Wastewater
•NewGen was not provided current written Master Plans based on hydraulic
modeling for the water system that is tied to a capital plan.
•The wastewater utility has an asset management plan which is very detailed
in procedures and technologies used to risk rank the wastewater collection
system. A high level 5 year capital plan is included in this annual report as
well as historical info for the year provided initiatives but a list of capital
projects was not seen.
•System Planning has largely been performed by the former managers of
each utility using outside consultants to perform the actual modeling and
planning studies, if done.
•Both the Water and Wastewater Utilities need to develop in-house expertise
of utility staff working with engineering to perform system modeling and
planning on an on-going basis to formally produce an annual master plan
that is tied to a capital plan for the each budget year, next 3 years and a 10
year horizons. If outside consultants are used at some point, the work
should be bid with other consultants who currently do not work for the City
and their role should be as an extension of staff with staff owning the
process.
125
BACK
135
STRATEGY
126
TOC
136
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•NewGen was not provided a
written Strategic Plan for DME.
Verbal discussion was held on
some strategic initiatives.
•NewGen suggests that DME go
through a Strategic Planning
process reviewing the existing
state, issues to be addressed
and future state needed and
desired to produce a roadmap to
guide utility decision making,
priorities and capital
expenditures.
–DME’s roadmap should also
include a plan to recognize the
competitive nature of DME’s
multi-certified areas
Strategic Planning – DME
127
BACK
137
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Strategic Planning –Water/Wastewater
•NewGen was not provided a written Strategic Plan for the utilities. Verbal
discussion was held on some strategic initiatives.
•Both the Water and Wastewater Utility need to go through a Strategic
Planning process reviewing the existing state, issues to be addressed and
future state needed and desired to produce a roadmap to guide utility
decision making, priorities and capital expenditures.
128
BACK
138
FRANCHISE & PAYMENT IN LIEU OF TAXES
TOC
139
Franchise & Payment in Lieu of Taxes
Denton Municipal Electric
TOC
140
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Current Computation of Franchise Fees and
Return on Investment (ROI)
Computation of Franchise Fees
–5% of Gross Revenue excluding:
•ECA Revenue
•Denton Energy Center Revenue
•TMPA Coverage Revenue
•Interest
•Other Non-Utility Revenue
–ECA Franchise Fees limited to $.03/kWh sold
•Computation of ROI
–Essentially treated as a Payment in Lieu of Taxes (PILOT)
–Current computation is 3.5% of Gross Revenue with no exclusions
•Effective Rate on Total DME Operating Revenue
–Franchise Fees effective rate from 2013 through 2017 –4.30%
–ROI effective rate from 2013 through 2017 –3.01%
•Use of Franchise Fees and ROI
–Based on the FY 2018-19 Budget, approximately 24.4% of total franchise fees will be
transferred to the General Fund and the remaining 75.6% of the franchise fees will be
transferred to the Street Improvement Fund
–All ROI related fees are transferred to the General Fund.
131
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Comparison to Other Texas Municipal
Electric Power Providers
Typical Computation Based on Percentage of Revenue
•Majority Compute Based on a Percentage of Gross Revenue
–Specific Computations
–AE computes a general fund transfer (GFT)
•GFT includes both franchise fees and PILOT (ROI)
•Set at no more than 12% of non-fuel revenue
•Set a floor of annual recovery of $105 million
•DME effective total of Franchise Fees and ROI for non-fuel revenue is 11.17% from 2013-2017
•Lubbock computes a franchise fee based on 5% of gross revenue
–Lubbock PILOT is 1% of gross revenue
•BTU computes a per kWh charge for franchise fees
–PILOT is computed based on a percentage of the approved rate of return used in the
TCOS
–However, a percentage of 7% of gross revenue has been set as a cap on these two
computations
–Currently BTU is at approximately 6.5% of gross revenue for the combination of
franchise fee and PILOT
•CPS computes a combined GFT similar to AE with a 14% of gross revenue
–Revenue related to schools and hospitals is excluded
132
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Comparison to Other Texas Municipal
Electric Power Providers (cont’d)
Typical Computation Based on Percentage of Revenue (cont’d)
•GEUS is similar to Lubbock
–Franchise Fee are 5% of Gross Revenue, as adjusted for:
•Fuel for off-system sales
–PILOT is 1% of Gross Revenue, as adjusted
•Goes to Greenville Board of Development
•Garland Power & Light only charges an ROI
–Approximately set at $19.5 million per year
–Equates to an approximately 7% of total operating revenue in 2017
•San Marcos Water and Power charges a franchise fee of 8%
•Georgetown Utilities charges a 3% franchise fee and a 7% ROI in its electric
rates
133
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
National Municipal General Fund Transfer
for Franchise Fees and/or PILOTs
Based on a 2016 survey conducted by the American Public Power Association
that included 171 respondents:
•Over 79% (136 respondents) have some form of PILOT
•Approximately 26% compute the payment based on a percentage of electric
operating revenues, with a notable percentage (13%) based on a flat annual
amount
•Only 10% reported use of a charge per kWh sold
•Based on the regional variations, the West South Central respondents, which
includes public power operations in Texas, Arkansas, Louisiana and
Oklahoma, remitted the highest median percentage of electric operating
revenues (12.6%) based on 36 responding utilities
•Based on all respondents, payments made to state and local governments by
public power operations produced a median percentage of 5.6%, with utilities
over $100 million in revenue at 6.2%
134
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Comparison to Municipal Charges to IOUs
Electric IOUs in Texas are charged franchise fees and property taxes
separately
•The majority of electric IOUs are charged franchise fees based on a $/kWh
as prescribed by the Public Utility Regulatory Act (PURA) §33.008.
•Municipal property taxes vary by location
135
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Comparison to Municipal Charges to IOUs
(cont’d)
•Non-ERCOT IOUs remit franchise fees based on the following
paradigms:
–Entergy – Based on negotiated $kWh charges with each municipality charges
rangings from $.00053/kWh to $.0015908/kWh.``
–El Paso Electric – Current rates have a 4% franchise fee embedded in the tariff
and an additional 1% payment (5% total) to the City of El Paso. This is an
additional 0.75% (4.75% and 5.75%) charged for revenue received by El Paso
Electric for broadband services over powerlines.
–SWEPCO –Current rates have franchise fees embedded in the rates at
$.0005528/kWh plus riders to collect the amounts over by municipality. The latter
comprise approximately 55% of the total franchise fees. The total amount is
approximately 1.78% of total revenue, both from incorporated and unincorporated
service areas.
–SPS (Xcel Energy) –Current rates have an embedded amount of 2% in the
customer service rates with any additional percentage by municipality included as
a line item on the bill. For example, the City of Amarillo has an additional 2%
above the embedded 2% included in rates. The City of Post has an additional 3%
of gross receipts charged on customers’ bills based on a 2017 franchise
agreement.
136
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Texas Utilities Comparisons
•DME’s fees based on a % of gross revenue is similar
to other municipal electrics computations and non-
ERCOT Texas IOUs
•DME has a capped franchise fee on commodity
revenue where other have excluded this revenue in
the computation of franchise fees
•A 5% franchise fee is within the range of fees charged
by other Texas municipal electrics
•A 5% for franchise fees is equal to or slightly higher
than fees charged by non-ERCOT Texas IOUS.
•A 3.5% ROI is within the range of ROIs charged by
Texas municipal electrics
•A 3.5% ROI appears low in light of returns approved
for TCOS filings
•Texas municipal electrics vary in whether the fees are
termed as franchise fees, PILOTs or ROI and ranges
from 6% to 14% when added together
National Comparisons
•The vast majority of electric utilities are charged
franchise fees by the franchising authority
•The median national percentage franchise fee
charged to public power is approximately 5.6% of
gross revenue
•Public power with revenue over $100 million reported
an average percentage of 6.2%
•Public power operations in Texas, Arkansas ,
Louisiana, and Oklahoma reported higher
percentages than other areas within the US
•DME is slightly lower than national median
•The vast majority of public power utilities also has a
PILOT charged by the franchising authority
•On a national basis, IOU electrics are charge a
franchise fee varying in percentage, but generally
noted to be between 3% and 6%.
Conclusions –
DME Franchise Fees and PILOT (ROI)
137
147
Franchise & Payment in Lieu of Taxes
Denton Water and Wastewater Utilities
TOC
148
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Current Computation of Franchise Fees &
Return on Investment (ROI)
•Franchise Fees Computation
•Water Services
–5% of Gross Revenue Excluding:
•Interest Income
•Water for Resale
•Water Impact Fees
•Wastewater Services
–5% of Gross Revenue Excluding:
•Interest Income
•Wholesale Wastewater Services
•Wastewater Impact Fees
•Drainage Fees
•ROI Computation
•Water and Wastewater Services
–Essentially treated as a Payment in Lieu of Taxes (PILOT)
–Current Computation is 3.5% of Gross Revenue with Same Exclusions as
Franchise Fees
139
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Current Computation of ROI & Return on
Investment (ROI)(cont’d)
Historical Effective Rates Based
•Franchise Fees Effective Rate from
2013-2017
–Water Services – 4.79%
•Based on CAFR Operating Revenue
–Wastewater Services – 4.72%
•Based on Adjusted Gross Revenue
Use of Franchise Fees & ROI for Water and Wastewater
•Based on the FY 2018-19 Budget:
–Approximately 24.4% of Total Franchise Fees will be Transferred to the General
Fund
–Remaining 75.6% of the Franchise Fees will be Transferred to the Street
Improvement Fund
•All ROI Related Fees are Transferred to the General Fund
140
150
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Comparison to Other Texas Municipal Water
& Wastewater Service Providers
Typical Computation Based on Percentage of Revenue
•Majority Compute Based on a Percentage of Gross Revenue
–Specific Computations
•AE Computes a General Fund Transfer (GFT)
–GFT includes bother Franchise Fees and PILOT (ROI)
–GFT Reflects Approximately 8.2% of Water/Wastewater Fund Revenue
–Services Effective Total of Franchise Fees & ROI
•Denton Water is 8.13% of Operating Revenue from 2013-2017
•Denton Wastewater is 8.03% of Adjusted Operating Revenue
•Lubbock Compute a Franchise Fee Based on 5% of Gross Revenue for its
Water & Wastewater Utility Services
–PILOT is 1% of Gross Revenue
141
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Comparison to Other Texas Municipal Water
& Wastewater Service Providers (cont’d)
Typical Computation Based on Percentage of Revenue
•City of Bryan Computes a Right of Way Payment Fee
–5% of Total Water Operating Revenue, Exclusive of:
•Interest Income
•Water Tap Fees
•Transfer in from Other Funds
•Non-operating Revenue
•Gain on Sale of Assets
–5% of Total Wastewater Operating Revenue, Exclusive of:
•Interest Income
•Sewer Tap Fees
•Transfer in from Other Funds
•Non-operating Revenue
•Gain on Sale of Assets
•City of Greenville is Similar to Lubbock
–Based on 2019 Budget:
•Franchise Fees are ~4.45% of Total Water/ Wastewater Operating Revenue
•PILOT is ~4.45% of Total Water/ Wastewater Fund Revenue
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Comparison to Other Texas Municipal Water
& Wastewater Service Providers (cont’d)
Typical Computation Based on Percentage of Revenue
•City of Garland Charges Franchise Fee & PILOT
–Franchise Fee is Based on 5% of Operating Revenue
–PILOT is Computed Based on Applying the Property Tax Rate to the Value of the
Water/Wastewater Assets
•Water PILOT = ~2.67% of Operating Revenue
•Wastewater PILOT = ~7.33% of Operating Revenue
•San Marcos Water and Power Charges a Franchise Fee of 8%
•Georgetown Utilities Charges
–3% Franchise Fee
–7% ROI in its Water/ Wastewater Rates
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National Municipal General Fund Transfer
for Franchise Fees and/or PILOTS
•Research shows a franchise fee charge by municipal water and wastewater
utilities appears reasonably common and identified separately on a customer’s
bill
•Where included, the franchise fees are primarily based on a percentage of the
gross revenue
•Noted ranges for the computation based on a percentage of water and
wastewater revenue was 2% to 6% with separately identified franchise fees
•Several instances were noted where franchise fees were collected based on a
fixed charge for each meter size.
–These appeared to be based on a certain required revenue stream established by the
municipality
–Such computations do provide for more certainty in franchise fee collection when
compared to the percentage of a customer’s usage of water and sewer services
•PILOT computations vary nationally, but are primarily based on two
methodologies
–A percentage of water and wastewater revenue; or
–An application of the local tax rate times the value of the water and wastewater
investment
•Use of this methodology will produce widely varying results among utilities based on the
reported asset balances in each operation.
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Texas Water Utilities
Comparisons
•Denton Water fees based on a % of gross revenue
are similar to other municipal water computations and
Texas water IOUs
•A 5% franchise fee is within the range of fees charged
by other Texas municipal water operations
•A 3.5% ROI is within the range of ROIs charged by
Texas municipal electrics
•Some Texas water operations charge a single
percentage which is comparable to the combination
of Denton Water franchise fee and ROI
•There is less variability in the total fees charged by
Texas municipal water operations than Texas
municipal electric operations
National Comparisons
•Water rates reported for operations outside of Texas
showed that franchise fees are a typical component
of the charges to customers
•Fees are general based on a percentage of gross
revenue like Denton Water
•Denton is within the noted range of 2-6% for water
related franchise fees
•PILOT (ROI) computations showed wide variations
among water operations with some based on a
percentage of revenue and other based on property
tax rates times value of assets.
Conclusions –
Water Franchise Fees and PILOT (ROI)
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Texas Wastewater Utilities
Comparisons
•Denton Wastewater fees based on a % of gross
revenue, but exclude wholesale wastewater services
and drainage fees
•A 5% franchise fee is within the range of fees charged
by other Texas municipal WW operations
•A 3.5% ROI is within the range of ROIs charged by
Texas municipalities
•Some Texas wastewater operations charge a single
percentage which is comparable to the combination
of Denton Wastewater franchise fee and ROI
•There is less variability in the total fees charged by
Texas municipal wastewater operations than Texas
municipal electric operations
National Comparisons
•Wastewater rates reported for operations outside of
Texas showed that franchise fees are a typical
component of the charges to customers
•Fees are general based on a percentage of gross
revenue like Denton WW
•Denton is within the noted range of 2-6% for WW
related franchise fees
•PILOT (ROI) computations showed wide variations
among wastewater operations with some based on a
percentage of revenue and other based on property
tax rates times value of assets.
Conclusions –
WW Franchise Fees and PILOT (ROI)
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COMPARATIVE ANALYSIS (BENCHMARKING)
PURPOSE & METHODOLOGY
TOC
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Benchmarking Introduction
City of Denton (Denton) sought to gain insight from benchmarking the operations of its electric,
water and wastewater systems with other comparable utilities and industry statistics. NewGen
was retained by Denton to conduct the Benchmarking Study (Study) as part of an
Organizational Assessment Study. NewGen is providing analysis of data gathered from publicly
available sources for selected benchmark comparison utilities. Utilities were selected for this
analysis based on factors such as number of customers, annual electric revenue, or distribution
system similarities.
This Study collected information from municipal electric utilities and business units of combined
utilities related to operational and financial measures. Data sources included publicly owned
utilities’ annual reports, their respective city’s Comprehensive Annual Financial Reports
(CAFR), utility financial reports, budgets, websites, the American Public Power Association
(APPA) Selected Financial and Operating Ratios of Public Power Systems, 2015 Data and
American Water Works Association’s 2017 AWWA Utility Benchmarking.
The APPA “Southwest” Region included in this report includes 19 participating APPA members
in the Southwest Power Pool (SPP) and Texas Reliability Entity (TRE), which in 2015 included
the states of Kansas and Texas and parts of Arkansas, Louisiana, Missouri and New Mexico.
This report presents results and findings from an analysis performed by NewGen using publicly
available information, as well as information provided by Denton related to its operations.
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Benchmarking Introduction (cont’d)
Attempts were made to collect data across all measures from publicly available
sources for the following electric utilities:
–Brownsville Public Utilities Board, Texas (BPUB)
–Bryan Texas Utilities, Texas (BTU)
–Fort Collins Utilities, Colorado (FCU)
–Garland Power & Light, Texas (GP&L)
–Greenville Electric Utility Service, Texas (GEUS)
–Lafayette Utility Systems, Louisiana (LUS)
–New Braunfels Utilities, Texas (NBU)
–Redding Electric Utility, California (REU)
–Riverside Public Utilities, California (RPU)
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Benchmarking Introduction (cont’d)
Attempts were made to collect data across all measures from publicly available
sources for the following water and/or wastewater utilities:
–Brownsville Public Utility Board, Texas (BPUB)
–City of Bryan, Texas (BTU)
–City of Garland, Texas (Garland)
–New Braunfels Utilities, Texas (NBU)
–Frisco, Texas (Frisco)
–Round Rock, Texas (Round Rock)
–McKinney, Texas (McKinney)
–Grand Prairie, Texas (Grand Prairie)
–Greenville, Texas (Greenville)
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Benchmarking Purpose and Methodology
The purpose of the Benchmarking Study was to compare strategic and tactical performance
measures observed at the operations of Denton with the same parameters at other municipal
electric, water and wastewater utilities or departments as well as tracking Denton’s
performance over time.
Although there will never be perfectly equitable utility-to-utility comparisons,
benchmarking can be a useful tool for system improvement. Each of the utilities used in
the comparisons have their own mix of cost factors that determine the nuances of a given
utility’s performance indicators. Differences such as the ownership and operation of assets
need to be kept in mind while reviewing results.
Strategic-level parameters addressed include:
–Revenue per unit of commodity
–Liquidity
–Operating income
Tactical parameters addressed include:
–Operations and Maintenance expense ratios
–Administrative and General (A&G) expense ratios
–Uncollectible accounts
–Usage per customer
–Accounts per Employee
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Profile of Benchmark Electric Utilities
152
Utility/City
No. of
Electric
Customers
Retail
MWh Sales
Total
Electric Revenue
No. of Full-time
Equivalent Employees
(Electric)
Denton 51,915 1,449,585 $ 172,027,080 191
Brownsville PUB, TX 48,726 1,320,697 $ 170,631,405 280.5
Bryan, TX 57,940 2,072,312 $ 234,288,951 189
Fort Collins Utilities, CO 72,523 1,499,036 $ 130,655,363 131
Garland, TX 69,929 1,887,188 $ 280,452,721 251
Greenville, TX 16,434 506,087 $ 62,371,543 128.5
Lafayette Utility System, LA 66,860 1,980,653 $ 174,888,543 215
New Braunfels Utilities, TX 38,867 1,512,675 $ 100,006,812 95
Redding, CA 44,233 744,607 $ 165,123,848 180
Riverside Public Utilities, CA 109,274 2,198,000 $ 366,100,000 472
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Profile of Benchmark Water & Wastewater
Utilities
153
Utility/City No. of Water
Customers
No. of
Wastewater
Customers
Total
Water/ Wastewater
Revenue
No. of Full-time
Equivalent Employees
(Water / Wastewater)
Denton 34,714 32,618 $67,283,583 151.5 / 111.25
Brownsville PUB 50,153 50,329 $50,246,097 323.5
(combined W/WW )
Bryan 23,223 22,907 $26,540,053 32 / 37
Garland 69,929 Not available $108,305,941 65 / 102
New Braunfels Utilities 36,140 26,294 $27,528,212 44 / 39.5
Round Rock 34,179 33,186 $51,980,615 93 / 35
Frisco 54,261 50,212 $84,647,008 97
(combined W/WW )
McKinney 56,512 Not available $78,491,464 103.1
(combined W/WW )
Grand Prairie 66,075 Not available $72,668,796 120.5
(combined W/WW )
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Benchmarking
SUMMARY OF FINDINGS & RECOMMENDATIONS
TOC
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Electric Benchmarking
SUMMARY OF FINDINGS & RECOMMENDATIONS
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Electric Benchmarking –Key Takeaways
•EFFECTIVE RATE
–In terms of effective rate (revenue per kWh) across all retail customers as well as for each
customer class, DME should strive for a balance between reasonable rates for customers and
sufficient revenue for the utility to sustain itself financially. In addition to monitoring this
measure, DME should review its rates structure to ensure adequate fixed cost recovery given
the nationwide trend in the growth of customer-sited distributed energy resources.
•EXPENSES
–For Administrative & General expenses, DME exhibits higher cost ratios, especially on a per
mile of distribution basis.
•LIQUIDITY
–DME appears to be operating the utility in such a manner as to have the reserves necessary
to pay its short and long-term obligations. To support future Revenue Bond financings, DME
should continue to monitor measures such as Days Cash On Hand and Debt Service
Coverage Ratio that rating agencies rely on.
•UNCOLLECTIBLE ACCOUNTS
–DME showed a substantial drop in uncollectibles per revenue dollar from about 7 cents in
2016 to approximately 3 cents in 2017. If DME instituted a new policy to reduce bad debt in
2017, it appears to be working effectively. If not, DME should investigate what procedures
have caused the decline so that it can continue this downward trend.
•LOAD GROWTH TRENDS
–DME has experienced a decline in kilowatt hours sales over the period covered in this
Benchmarking Study (2015 –2017). Across the industry, the trend also appears to be in load
decline due to a drop in energy intensity. Real estate development in the DME service
territory has the potential to overcome decline in energy intensity.
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Financial Performance
157
Measurement How DME Compares Notes & Other Information
RevenueRevenue per kWh Middle of Comparators
Lower ratio typically means more affordable rates
Customer mix, load factor, and commodities contribute to
differences in ratio
Effective Rate Higher than most Comparators and APPA
Southwest Region statistics
Customer mix, load factor, and commodities contribute to
differences in ratio
LiquidityCurrent Ratio Lower than Comparator average and
slightly lower than APPA data
DME’s 2.4-3.7 3-year ratio suggest ability to meet short-term
obligations
Debt Service Coverage Ratio
(DSCR)
Lower than 7 Comparators and APPA
averages
Higher than DME’s required coverage
level
DME’s DSCR is 1.71
DCSR > 1.0 generally means the utility has sufficient funds to pay its
current debt obligations
Debt to Total Assets
Lower than Comparators average
Higher than APPA statistics for similar
sized utilities
Longer term measurement of liquidity
Days Cash on Hand Above Comparator median and average In 2017, DME has enough cash to cover 119 days of operating
expenses
Uncollectable Accounts per
Revenue Dollar
Higher than APPA statistics and
Comparator median, but lower than the
average
Suggests DME may want to review its account receivables and
deposit policies
Operating MarginOperating Income to Total
Revenue In alignment with Comparator median
Higher number indicates a smaller portion of revenue is going to
pay operating expenses
DME is earning ~$0.08 for every dollar of sales revenue167
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Operational Performance
•Administrative & General (A&G) and Customer Expenses
–A&G expenses are those costs not allocable to power costs, distribution, or
customer accounting. Items typically include compensation for executives, office
supplies, professional fees, property insurance and claims, and pensions and
benefits. DME’s ratio of A&G expense per circuit mile is higher than the
comparator’s average and median. DME’s A&G expenses per customer are
higher than the average and median, but in line with NBU and APPA statistics for
similarly sized utilities. These ratios are subject to each utility’s accounting
practices and utilities that share A&G expenses across several utility services
may exhibit lower cost allocations to its electric operations.
–The Customer Accounting, Service, and Sales ratio measures the utility's
customer-related expenses incurred relative to each customer served. Customer
expenses typically include customer service center, meter reading, billing, key
accounts, credit and collections, and uncollectable accounts. This ratio is subject
to each utility’s accounting practices and if services are shared across multiple
utility services. DME’s ratio is below that of three of the four comparator for which
data was available as well as in line with APPA data.
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Operational Performance (cont’d)
•Kilowatt-hours per Customer
–The kWh per customer ratio reflects the average annual usage for all customer classes
served by the utility; it is impacted by the distribution of the types of customers served,
as well as factors such as energy efficiency measures and the level of customer-owned
distributed generation. DME’s ratio is slightly above the comparator’s average and
median. The downward trend in DME’s ratio of kWh per customer is not surprising, as
it reflects a trend in lower usage seen across the country.
•Productivity Measures
–DME’s ratios for Customers per Employee and Megawatt hours per Employee are
in alignment with the comparators and industry averages, an indication that it is
efficiently operating the electric utility.
•Electric Reliability
–In 2018, DME’s measures for System Average Interruption Duration Index (SAIDI) is
substantially better than that of APPA Region 4 utilities and similarly sized utilities.
–In 2018, DME’s measures for System Average Interruption Frequency Index (SAIFI) is
similar to APPA Region 4 utilities.
•Energy Losses
–The Energy Loss percentage is a measure of how much energy is lost in the utility’s
electrical system and indicates the efficiency of the system. The losses include
physical losses occurring in the distribution system, as well as metering and billing
losses. DME’s ratio is slightly higher than most comparators and APPA averages.
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Water & Wastewater Benchmarking
SUMMARY OF FINDINGS & RECOMMENDATIONS
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Water & Wastewater Benchmarking –
Key Takeaways
•EFFECTIVE RATE
–In terms of effective rate (revenue per MG) across all retail customers for both
Water and Wastewater operations, Denton should continue to work toward
attaining a balance between reasonable rates for customers and sufficient
revenue to achieve financial sustainability.
•LIQUIDITY
–Denton appears to be operating the Water and Wastewater utilities in such a
manner as to have the reserves necessary to pay its short and long-term
obligations.
•PRODUCTIVITY
–Several of Denton’s efficiency measures have indicated lower than average
productivity. While climate and water conservation measures have an impact on
the water delivered per employee ratio, the seemingly lower levels of productivity
should be investigated further. However, this measure is impacted by how
services are shared across a municipal organization. For some water and/or
watewater operations, activies such as customer service and billing are staffed
outside the utility, which would lead to higher productivity indices.
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Financial Performance
162
Measurement How DME Compares Notes & Other Information
RevenueRevenue per MG Water
delivered
Higher than Comparator average for
Water, except Garland
Customer mix and commodity costs contribute to differences in
ratio
Revenue per MG Water
collected
Higher than Comparator average
Higher than all Comparators operating
wastewater systems in Texas
Customer mix and commodity costs contribute to differences in
ratio
LiquidityCurrent Ratio Lower than Comparator average Water’s 2.6-5.0 and Wastewater’s 3.5-6.1 3-year ratios indicates
the ability to meet short-term obligations is more than adequate
Debt Service Coverage Ratio
(DSCR)
Lower than Comparator median for
Water
Above Denton’s required coverage level
Water’s ratio ranged from 1.6 to 2.3 between 2015 and 2017
DSCR > 1.0 generally means the utility has sufficient income to pay
its current debt obligations
Debt Ratio
At Comparator median but slightly lower
than AWWA statistics for Water
Substantially lower than Comparator and
AWWA statistics for Wastewater
Water’s debt ratio is 32% and Wastewater’s is 21%
May indicate that Water and Wastewater are not highly leveraged
Operating MarginOperating Income to Total
Revenue Just below Comparator median for Water Denton is earning ~$0.09 for every dollar of Water revenue and
$.018 for every dollar of Wastewater revenue
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Financial Performance -Revenue (cont’d)
Water/Wastewater Revenue
•Retail revenue per retail million gallons of water delivered for Water
operations and per millions of gallons (MG) of water collected or treated for
wastewater operations generally demonstrates the magnitude of
water/wastewater rates charged. Customer mix and commodity costs
contribute to differences in this ratio.
•Denton’s revenue per MG of water delivered for all retail customers is higher
the comparators’ average as well as higher than all comparators except for
Garland.
•Denton’s revenue per MG of water collected or processed for all retail
customers is higher the comparators’ average as well as higher than all
comparators operating wastewater systems in Texas.
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Financial Performance -Liquidity (cont’d)
Water/Wastewater Liquidity
•The Current Ratio (current assets compared to current liabilities) is a measure of short-term
liquidity. While Denton’s results are lower than the benchmark group average, its ratio in the
2.6 to 5.0 range for Water operations and between 3.5 and 6.1 for Wastewater operations
over the three years of this Benchmark Study indicates that its ability to meet its short-term
obligations is more than adequate.
•Another short-term liquidity measure is Debt Service Coverage. The Debt Service Coverage
Ratio (DSCR) is a measure of cash flow available to pay current debt obligations. This ratio
is typically influenced by the utility’s financial policies. A ratio greater than 1.0 generally
means that the utility has sufficient income to pay its current debt obligations. Debt
obligations such as bond covenants often require specific levels of this ratio, with a DSCR of
1.0 typically a requirement. For Water operations, Denton’s DSCR ranged from 1.6 to 2.3
from 2015 through 2017 and was lower than the comparator group median. However, it is
well above Denton’s required coverage level of 1.25.
•Debt Ratio is a longer term measure of liquidity; it is the ratio of long-term debt plus current
and accrued liabilities to total assets. The target level of this ratio is also generally
influenced by the utility’s financial policies. For Water, at 32%, Denton’s debt ratio is at the
comparators’ median, but slightly lower than the AWWA statistics. For Wastewater, Denton’s
debt ratio is 21%, which is substantially lower (better) than the comparator 75th percentile
and AWWA statistics. This indicates that for both its Water and Wastewater operations,
Denton is not highly leveraged.
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Financial Performance –Operating Margin
•Water/ Wastewater Operating Margin
–Denton’s ratio of operating income to total Water revenue is just below the
comparator ’s median. A higher number is more favorable as it indicates that a
smaller portion of revenue is going to pay operating expenses. Its operating
margin indicates that Denton is earning approximately 9 cents for every dollar of
Water revenue and 18 cents for every dollar of Wastewater revenue (before debt
service and in lieu of franchise fee and return on investment payments).
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Operational Performance
•Million Gallons per Customer
–The MG per water customer ratio reflects the average annual usage for all
customer classes served by the utility; it is impacted by the distribution of the
types of customers served, as well as factors such as water conservation
measures. Denton’s ratio is slightly below the comparator’s median, but is among
the highest usage among the Texas Water utilities. Denton’s ratio of MG collected
or processed per Wastewater customer is on par with comparator utilities and
varied little over the past three years.
•Productivity Measures
–Customers per Employee –For both Water and Wastewater operations, Denton’s
level of productivity as measured by the number of customers serve per
employee is well below that of both comparators and AWWA statistics.
–Million Gallons per Employee –For both Water and Wastewater operations,
Denton’s level of efficiency as measured by the number of gallons delivered,
collected, or processed per employee is well below that of both comparators and
AWWA statistics.
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Benchmarking –Detailed Findings
Denton Municipal Electric
TOC
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
Financial Performance
•The following graphs illustrate financial ratios and comparisons, including:
–Revenue
–Liquidity
–Operating margin
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•On a revenue per kWh basis
across all customer classes,
DME’s ratio of 11.3 cents is
slightly lower than the average
and median for the
comparators.
•APPA statistics show values
well below DME and the
comparison group average.
•While revenue per kWh is a
reflection of the magnitude of
electricity rates (the effective
rate paid by customers), the
customer mix, load factor, and
commodity costs contribute to
differences in this ratio.
•For this ratio, DME should
strive for a balance between
reasonable rates for customers
and sufficient revenue for the
utility to sustain itself
financially.
Revenue per kWh –
All Retail Customers 2017
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Across all customer classes,
DME’s ratio of revenue per
kWh shows a moderate
increase over the previous
three years. Several of the
comparators (BTU, RPU, and
FCU) exhibit a similar trend.
•Since variations in revenue per
customer can be attributed to
several factors, including the
load factor and commodity
costs, slight variations over
time are not a major concern.
DME’s rates have risen slightly
over the past three years,
which has impacted this
measure.
•Future increases may require
further analysis to ensure that
rates charged to customers are
tracking with power costs.
Revenue per kWh –
All Retail Customers 3-Year Trend
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•At approximately 11 cents,
DME’s revenue from residential
customers per kWh sold to this
class is similar to many
comparators (with the
exception of the California
utilities –RPU and REU), the
median value of the
comparator group, and the
APPA data.
Revenue per kWh –
Residential 2017
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•As with the slight increase in
revenue per kWh across all
customer classes, DME’s
revenue from Residential
customers per kWh sold
exhibits a small rise over the
past three years.
•All the comparators have only
slight changes in this ratio over
the last three years.
•Among the comparators, only
Garland Power & Light shows
a decline in revenue per kWh
over the time period.
Revenue per kWh –
Residential 3-year Trend
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s measure of revenue
from commercial customers per
kWh sold is 9.9 cents and is
lower than the comparators
group average, but slightly
higher than the median.
•As with this measure for
residential customers, DME’s
effective rate for commercial
customers is similar to the
APPA data for similarly sized
utilities and is much lower than
for the two California utilities
included in this benchmarking.
Revenue per kWh –
Commercial 2017
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s revenue from
Commercial customers per
kWh sold exhibits a relatively
flat trend over the past 3 years.
•While number of kWh hours
sold to DME’s commercial
customers decreased by
approximately 7% from 2015 to
2017, on a per customer basis,
the revenue exhibits little
change over that time period.
•GP&L, GEUS and NBU show
slight declines in commercial
revenue per kWh sold over the
three years reviewed.
Revenue per kWh –
Commercial 3-year Trend
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•At 7.8 cents, DME’s revenue
per kWh sold to industrial
customers is above the
comparator median as well as
slightly higher than the effective
rate reported by APPA across
the U.S. and for similarly sized
utilities.
•Several of the comparator
utilities do not serve industrial
customers or do not report
sales to industrial customers
separately from commercial,
hence data was not available
for this graphic.
Revenue per kWh –
Industrial 2017
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s revenue per kWh sold
to industrial customers shows
a very small downward trend
over the past three years.
•DME’s kWh sales to industrial
customers rose by
approximately 3% from 2015 to
2017. However, on a per
kilowatt hour (kWh) basis its
revenue from this customer
class decreased in 2017
compared to the previous 2
years.
•Several comparators (GP&L,
and NBU) exhibit a similar
downward trend in effective
rate for Industrial customers;
which is frequently an
indication of declining
commodity costs.
Revenue per kWh –
Industrial 3-year Trend
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•Average monthly usage and
resultant bills based on current
electricity rates are shown for
Denton and the Texas
comparators.
•DME’s average residential
monthly bill based on average
monthly usage among DME
customers is similar to bill
amounts for the other Texas
utilities.
•Although average monthly
residential usage varies
substantially, from a low of 848
kWh (GEUS) to a high of 1,156
kWh (NBU), with the exception
of NBU, the average bill is
within 15% range.
Average Residential Monthly Electricity Bill
& Usage Comparison -2017
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•The Current Ratio is defined as
current assets ÷ current liabilities
and measures the utility’s short-term
liquidity. Current assets typically
include cash, marketable securities,
accounts receivables, and
inventories. Current liabilities
usually include accounts payable,
short-term notes, and accrued
expenses. A ratio below 1.0 may be
indicative of cash flow issues, while
a ratio of ~2.0 or higher suggests
efficient management of working
capital.
•DME’s Current Ratio of 2.4 is similar
to APPA averages and lower than
the comparators group median and
average. It indicates that the utility
has sufficient funds to cover short-
term indebtedness.
•In order to accommodate paying for
expenses with cash (or other
reasons for holding significant
balances in short-term reserves),
some utilities will have higher than
average Current Ratios.
•Risk management policies may
dictate analyzing the level of this
measure to ensure liquidity if access
to debt financing is limited.
ELECTRIC
Current Ratio –2017
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NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Current Ratio for DME
declined slightly in 2017
compared to the previous two
years.
•The Current Ratio for the
majority of comparator utilities
varies only slightly
year-to-year over the past
three years. This is an
indication that each utility is
adhering to its risk
management or other financial
policies regarding desired
levels of liquidity.
ELECTRIC
Current Ratio – 3-Year Trend
179
189
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Debt Service Coverage Ratio
(DSCR) is the ratio of net income
to total long-term debt service for
the year; it measures the utility’s
ability to meet its long-term debt
obligations.
•At 1.7, DME’s DSCR is lower
than for seven of the eight
comparators and the APPA
averages. However, it is higher
than its 1.00 DSCR requirement.
•This ratio is typically influenced
by the utility’s financial policies
with a ratio greater than 1
meaning that the utility has
sufficient income to pay its
current debt obligations. Debt
obligations frequently require
specific levels of this ratio, with
bond covenants often requiring a
DSCR between 1.0 and 2.0.
These ratio is also greatly
influenced by the structure of the
utility with wires-only electric
utilities frequently exhibiting
higher DSCRs than those utilities
with generation assets.
ELECTRIC
Debt Service Coverage –2017
180
BACK
190
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Since DSCRs may be dictated
by bond covenant's and/or
fiscal policies, it is not
surprising that they do not vary
significantly over time.
•Large increases typically would
occur in years when new debt
is issued; conversely refund or
retiring debt could lead to
substantial decreases in this
measure
ELECTRIC
Debt Service Coverage – 3-Year Trend
181
BACK
191
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Debt to Total Assets is the ratio of
long-term debt plus current and
accrued liabilities to total assets.
It is normally influenced by a
utility’s financial policies.
•At 0.24, DME’s ratio is lower than
the comparator’s average, and
the APPA average for utilities in
the southwest U.S., and across
the country, but is similar to the
ratio for NBU.
•While low or no debt offers
certain advantages, debt
financing is often used as a
financial management tool to
amortize large, long-lived
infrastructure costs over the long-
term (e.g., 20 to 30 years). This
aligns the cost of the assets to
their useful lives. Limiting or
foregoing debt financing may
result in less predictable rates for
customers due to changes in
supply costs or high capital costs
for major infrastructure projects.
ELECTRIC
Debt to Total Assets –2017
182
192
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•For most utilities, Debt to Total
Assets is a relatively stable
number; although substantial
changes may occur when new
debt is issued or debt is retired.
•From a risk perspective, lower
ratios are considered better
debt ratios (<0.4), while higher
debt ratios (0.6+) may make it
more difficult to borrow money.
•For 2016 to 2017, DME’s ratio
doubled from 0.12 to 0.24 due
to the issuance of $$214.9
million of utility revenue bonds
in May 2017.
ELECTRIC
Debt to Total Assets – 3-Year Trend
183
2015 data not available for NBU
193
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Days Cash on Hand is another
measure of liquidity that rating
agencies are typically
interested in. It is a measure of
how much cash the utility has
in relation to its operating
expenses.
•DME has enough cash to cover
119 days of operating
expenses, which is higher than
both the comparator group
median and average.
•Days Cash on Hand is typically
influenced by the utility’s
financial policies and should
promote a balance between
maintaining adequate reserves
while also prudently operating
the utility.
ELECTRIC
Days Cash on Hand –2017
184
194
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•As with other financial metrics,
Days Cash on Hand for
municipal utilities generally
does not vary significantly
year-to-year. DME’s number of
Days of Cash on Hand ranges
from a low of 119 to a high of
175 over this three year period.
•In 2017, GEUS experienced a
negative unrestricted cash net
position related to impairment
of prepaid electric costs
associated with TMPA , which
results in a negative measure
for Days Cash on Hand.
ELECTRIC
Days Cash on Hand – 3-Year Trend
185
195
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Operating margin is a measure
of the proportion of a utility’s
revenue remaining after paying
operating expenses.
•DME’s ratio is similar to the
comparator’s median, as well
as higher than five of the nine
comparators. Its operating
margin of 7.7% indicates that
DME is earning almost 8 cents
for every dollar of sales
revenue before debt service,
capital projects, and transfers
to the City for return on
investment and franchise
taxes.
ELECTRIC
Operating Margin –2017
186
196
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s Operating Margin has
declined from 2016 levels, with
a similar trend for BTU.
•Other Texas utilities have seen
a declining over the past three
years, including GP&L, GUES,
NBU and BPUB.
•Modest annual changes in this
measure are not typically a
concern; however, trends such
as continued declines or
substantial drops in the margin
over time may highlight rising
costs that are not being
adequately recovered by rates
and might warrant rate
increases or conducting a cost
of service study.
ELECTRIC
Operating Margin – 3-Year Trend
187
197
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Operational Performance
•The following graphs illustrate operational ratios and comparisons, including:
–Expenses
–Kilowatt-hours per customer
–Reliability
188
198
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Uncollectable Accounts per
Revenue Dollar measures the
portion of each revenue dollar
that will not be collected by the
utility.
•DME’s ratio is similar to the
average for comparators and
slightly higher than the APPA
statistics.
ELECTRIC
Uncollectible Accounts per Revenue Dollar –2017
189
199
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of Uncollectible
Accounts per Revenue Dollar
shows a decline over the three
years of 2015 through 2017.
ELECTRIC
Uncollectible Accounts per Revenue Dollar – 3-Yr Trend
190
200
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Administrative & General
(A&G) expense per circuit mile of
distribution ratio measures the
utility’s A&G expense incurred
relative to each mile of
distribution. A&G expenses are
those costs not allocable to
power costs, distribution, or
customer accounting. Items
typically include compensation for
executives, office supplies,
professional fees, property
insurance and claims, and
pensions and benefits.
•DME’s ratio is higher than
comparator’s average, as well as
higher than all other comparators.
•This ratio is subject to each
utility’s accounting practices and
for multi-service utilities such as
BTU, BPUB, RPU, FCU and LUS,
A&G expenses may be lower as
the costs are shared across
electric and water operations.
ELECTRIC
A&G Expense per Distribution Mile –2017
191
201
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of A&G expense
per mile of distribution is
trending upward over the time
period of 2015 through 2017.
ELECTRIC
A&G Expense per Distribution Mile – 3-Year Trend
192
202
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The A&G expense per
customer ratio measures the
utility’s A&G expense incurred
relative to each customer.
A&G expenses are those costs
not allocable to power costs,
distribution, or customer
accounting. Items typically
include compensation for
executives, office supplies,
professional fees, property
insurance and claims, and
pensions and benefits.
•DME’s ratio is above the group
average and the APPA
averages.
•This ratio is subject to each
utility’s accounting practices
and for utilities such as BTU,
RPU and MID, A&G expenses
may be lower as the costs are
shared across electric and
water operations.
ELECTRIC
A&G Expense per Customer –2017
193
203
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of A&G expense
per customer is also trending
upward over the past 3 years.
•Further increases in A&G
expense ratios may warrant
additional analysis.
ELECTRIC
A&G Expense per Customer – 3-Year Trend
194
204
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Customer Accounting,
Service, and Sales ratio
measures the utility's customer-
related expenses incurred
relative to each customer served.
Customer expenses typically
include customer service center,
meter reading, billing, key
accounts, credit and collections,
and uncollectable accounts. This
ratio is subject to each utility’s
accounting practices and if
services are shared across
multiple utility services.
Additionally, larger utilities may
be able to achieve economies of
scale.
•At $52, DME’s ratio is well below
the comparator’s average and
median, but similar to the APPA
statistics for like-sized utilities and
the U.S. overall.
•Being below average in this
expense can be a false economy
if customer-facing services are
rated low by customers.
•Many of the comparator utilities
do not report their Customer
service expenses.
ELECTRIC
Customer Accounting/Service/Sales Expense per
Customer–2017
195
205
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of Customer
Accounting, Service, and Sales
expense per customer is
exhibiting an downward trend
from 2015 through 2017.
ELECTRIC
Customer Accounting/Service/Sales Expense per
Customer – 3-Year Trend
196
206
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The kilowatt hour (kWh) per
customer ratio demonstrates
average annual usage for all
customer classes served by the
utility. This is typically a
reflection of the distribution of
the types of customers served.
•At almost 28,000, DME’s ratio
is slightly above the
comparator’s average and
median.
ELECTRIC
Kilowatt Hours per Customer –2017
197
207
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of kWh per
customer is trending downward
over the time period of 2015
through 2017.
•Most other utilities (with the
exception of BPUB and RPU)
also show a downward trend in
electric usage per customer.
•Across the U.S., the trend is
toward declining load growth
even in the face of expanding
customer base.
•From 2015 to 2017, DME saw
a 3.7% growth in the number of
accounts served, but only a
3.0% growth in kWh sold.
ELECTRIC
Kilowatt Hours per Customer – 3-Year Trend
198
208
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•At approximately
12,000 kWh sold in 2017,
DME’s ratio of kWh sold per
residential customer is slightly
above the comparator’s
average, but below the median.
•The average amount of
electricity sold per residential
customer is typically impacted
by the housing mix (single
family vs. multi-family), size of
homes, number of members
per household, as well as solar
installations and energy
efficiency measures enacted.
ELECTRIC
Residential KWH per Residential Customer -2017
199
209
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of kWh sold per
residential customer is
declining slightly over the time
period of 2015 through 2017.
•Annual variations can occur
based on extreme weather
conditions (such as an
unusually hot or cold summer)
or changing housing trends
such as increased energy
efficiency measures or roof-top
solar.
ELECTRIC
Residential KWH per Residential Customer – 3-Year Trend
200
210
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•At approximately
53,000 kWh sold in 2017,
DME’s ratio of kWh sold per
Commercial customer is below
the comparator’s average and
median.
•However, several utilities report
combined commercial and
industrial customer numbers
and usage (GEUS, BPUB and
LUS). The average usage
without those 3 utilities is
displayed on the graph
(~64,000).
•Usage by customer class is
impacted by how each utility
defines its classes.
ELECTRIC
Commercial KWH per Commercial Customer -2017
201
211
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of kWh sold per
Commercial customer, as well
as the ratio for most
comparators is little changed
over the time period of 2015
through 2017.
ELECTRIC
Commercial KWH per Commercial Customer – 3-Year
Trend
202
212
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•At over 4 million kWh sold in
2017, DME’s ratio of kWh sold
per Industrial customer is well
below the comparator’s
average and median.
•As previously noted, how each
utility classifies customers
impacts these customer class
ratios. Several of the
comparators that show high
levels of usage on a per
customer basis only classify a
few (<20) customers as
“Industrial.”
ELECTRIC
Industrial KWH per Industrial Customer –2017
203
213
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of kWh sold per
Industrial customer, as well as
the ratio for most comparators
is little changed over the time
period of 2015 through 2017.
•Large changes to this ratio
typically occur if large industrial
customer with high load factors
either enters or leaves a serve
territory.
ELECTRIC
Industrial KWH per Industrial Customer – 3-Year Trend
204
214
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio of number of
customers served per
employee is lower than the
comparator average and
median, but higher than the
APPA averages. This ratio is a
measure of workforce
productivity.
•This ratio is influenced by the
mix of customer types and
population density. It is also
influenced by the extent that
employees are shared with
other (non-electric)
departments or operations.
ELECTRIC
Customers Served per Employee
205
215
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Another measure of
productivity is amount of
electricity sold per employee.
•DME’s ratio of number of
megawatt hours of electricity
sold per employee is in line
with the comparator average
and median.
•This ratio is influenced by
customer mix and load factors.
For example, less than 1% of
NBU’s customers are industrial
(13 customers), but their usage
is over 40% of megawatt hours
NBU sells.
ELECTRIC
Retail Megawatts Hours Sold per Employee
206
216
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Energy Loss percentage is
the ratio of total energy losses
to total sources of energy; it
measures how much energy is
lost in the utility’s electrical
system and indicates the
efficiency of the system. The
losses include physical losses
occurring in the distribution
system as well as metering and
billing losses.
•At approximately 5% DME’s
ratio is above the comparator’s
median and average, as well
as higher than the APPA
statistics.
•This level of losses warrants a
loss study to determine the
source(s) of these losses.
ELECTRIC
Energy Loss –2017
207
217
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s ratio did not vary
significantly over the prior 3
years.
•Of the utilities included in the
study, only BPUB shows a
significant difference year-to-
year.
ELECTRIC
Energy Loss –Trend
208
218
NEWGEN STRATEGIES AND SOLUTIONS, LLC
System Reliability
•The following graphs illustrate reliability indices, including:
–SAIDI (System Average Interruption Duration Index)
–SAIFI (System Average Interruption Frequency Index)
209
219
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•For 2018, DME’s SAIDI index is substantially
better than that of APPA Region 4 utilities and
similarly sized utilities comparators; while its
SAIFI index is similar to APPA comparators.
SAIDI & SAIFI –Calendar Year 2018
210
SAIDI
SAIFI
Note: The 2018 comparators differ from those in previous years220
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s SAIDI measure (number
of minutes of system average
interruption duration index) for
2017 is higher than its
comparators.
SAIDI –Calendar Year 2017
211
221
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Age of infrastructure, the
utility’s level of emphasis on
regular maintenance and
vegetation policy as well as
percentage of underground
distribution lines typically
impacts these reliability
indices.
•For example, FCU’s
distribution system is over
90% underground which
maybe reflected in its low
SAIDI results.
SAIDI –3 Year Trend
212
222
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s SAIFI measure (number
of times of system average
interruptions) is considerably
higher than the comparators.
SAIFI –Calendar Year 2017
213
223
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•DME’s SAIFI measure (number
of times of system average
interruptions) is considerably
higher than the comparators.
SAIFI – 3-Year Trend
214
224
Benchmarking –Detailed Findings
Denton Water Utility
TOC
225
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Financial Performance –Water
•The following graphs illustrate financial ratios and comparisons, including:
–Revenue
–Liquidity
–Operating margin
216
226
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•On a revenue per million
gallons (MG) basis across all
customer classes, Denton’s
ratio of $5,705 is higher than
the 75th percentile of the
comparators.
•While revenue per MG is a
reflection of the magnitude of
water rates (the effective rate
paid by customers), the
customer mix and commodity
costs contribute to differences
in this ratio.
•Greenville’s revenue value is
for combined water and
wastewater operations.
•For this ratio, Denton should
look to achieve a balance
between reasonable rates for
customers and sufficient
revenue for financial
sustainability.
WATER
Revenue per Million Gallons of Water Sold -2017
217
227
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Across all customer classes,
Denton’s ratio of revenue per
MG shows a moderate
increase over the previous
three years. Several of the
comparators (Greenville,
Frisco, and McKinney)
exhibit a similar trend.
•Since variations in revenue
per customer can be
attributed to several factors,
including commodity costs,
slight variations over time
are not a major concern.
•Future increases may
require further analysis to
ensure that rates charged to
customers are tracking with
water supply costs.
WATER
Revenue per Million Gallons Sold -Trend
218
228
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•For residential customers served by a
¾-inch service connection, Denton’s
water bill for 7,500 gallons of usage is
higher than for six of the Texas-based
comparators as well as above the
AWWA Region IV average. However,
city of Garland residential bill for usage
of 7,500 gallons is over 25% higher than
Denton’s.
•All the Texas water utilities in this study
offer incline block tiered rates for at least
part of year, but the size of the blocks
and associated rates vary widely.
WATER:
Average Residential Bill for 7,500 Gallons Usage
219
Lowest Tier Rate Highest Tier Rate
Denton 4.15$ 10.90$
Garland 4.77$ 9.22$
BTU 2.76$ 3.50$
Greenville 3.45$ 4.37$
NBU 1.55$ 5.43$
BPUB 1.98$ 4.08$
Round Rock 2.56 5.77
Frisco 3.92$ 6.78$
McKinney 4.40$ 6.60$
Grand Prairie 4.04$ 7.24$ 229
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Current Ratio is defined as
current assets ÷ current
liabilities and measures the
water utility’s short-term
liquidity. Current assets
typically include cash,
marketable securities, accounts
receivables, and inventories.
Current liabilities usually
include accounts payable,
short-term notes, and accrued
expenses. A ratio below 1.0,
may be indicative of cash flow
issues, while a ratio of ~2.0 or
higher suggests efficient
management of working
capital.
•Denton’s Current Ratio of 4.2 is
slightly higher than the median,
and it indicates that the water
utility has sufficient funds to
cover short-term indebtedness.
WATER
Current Ratio -2017
220
230
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Current Ratio for Denton
declined slightly in 2017
compared to the previous year.
•The Current Ratio for the majority
of comparator water utilities
varies only slightly
year-to-year over the past
three years. This is an indication
that each utility is adhering to its
risk management or other
financial policies regarding
desired levels of liquidity.
However, McKinney saw a
significant decrease in its Current
Liabilities from 2015 to 2016,
leading to a substantial increase
in its Current Ratio.
•In order to accommodate paying
for expenses with cash (or other
reasons for holding significant
balances in short-term reserves),
some utilities will have higher
than average Current Ratio.
WATER
Current Ratio -Trend
221
231
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Debt Service Coverage
Ratio (DSCR) is the ratio of
net income to total long-
term debt service for the
year; it measures the
utility’s ability to meet its
long-term debt obligations.
•At 1.99, Denton’s DSCR is
lower than the 25th
percentile of comparators,
but above the AWWA
overall average (mean).
Additionally, it is higher than
the water operations’ 1.25
DSCR requirement.
WATER
Debt Service Coverage Ratio –2017
222
BACK
232
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Since DSCRs may be dictated
by bond covenant's and/or
fiscal policies, it is not
surprising that they do not vary
significantly over time.
•This ratio is typically influenced
by the utility’s financial policies
with a ratio greater than 1
meaning that the utility has
sufficient income to pay its
current debt obligations. Debt
obligations frequently require
specific levels of this ratio, with
bond covenants often requiring
a DSCR between 1.0 and 2.0.
WATER
Debt Service Coverage Ratio – 3-Year Trend
223
BACK
233
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Debt Ratio is defined as
total liabilities ÷ total assets
and measures the utility’s level
of indebtedness. The higher
the debt ratio, the more
dependent the water utility is
on debt financing.
•Denton’s Debt Ratio of 32% is
close to the benchmark
median, not as low as the 75th
percentile of comparators. It is
also lower than the AWWA
averages (mean). This
indicates that the Denton water
utility is not overly leveraged.
•Additionally, according to the
2018 AWWA study, Denton’s
debt ratio is slightly better than
the median based on 50 water
utilities who participated as
shown in the table.
WATER
Debt Ratio -2017
224
Denton 75th
Percentile
Median 25th
Percentile
Count
32%20%33%53%50
234
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Debt Ratio for Denton
declined in 2017 compared to
the previous years.
•The Debt Ratio for the
majority of comparator
utilities varies only slightly
year-to-year over the past
three years; which is typical
except in years in which new
debt is issued or debt is
refunded.
•Due to its stable cash flows,
utilities frequently operate
with a debt level of
approximately 40%.
However, some municipal
utilities elect to either forgo
issuing debt or use limited
debt financing, which results
in very low debt ratios.
WATER
Debt Ratio -Trend
225
235
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Operating Margin is a measure
of the proportion of the water
utility’s revenue remaining after
paying operating expenses.
•Denton’s ratio is higher than the
comparator ’s median. Its
operating margin of 9.1%
indicates that Denton is earning
just over 9 cents for every dollar
of sales revenue before debt
service, capital projects, and
transfers to the City for return on
investment and franchise taxes.
•Operating margin for Greenville
(shown as blue bar) is based on
combined water and wastewater
operation financials.
•The Frisco water utility shows a
negative operating margin as it
had negative operating income
(loss) that appears to be due to
non-cash transactions.
WATER
Operating Margin –2017
226
236
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Denton’s Operating Margin
has declined from 2015
levels, with a similar trend
for Frisco and Grand
Prairie.
•Modest annual changes in
this measure are not
typically a concern;
however, trends such as
continued declines or
substantial drops in the
margin over time may
highlight rising costs that
are not being adequately
recovered by rates and
might warrant rate
increases or conducting a
cost of service study.
•The Frisco water utility
shows a negative operating
margin in 2017 as it had
negative operating income
(loss) in that year.
WATER
Operating Margin – 3-Year Trend
227
237
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Operational Performance –Water
•The following graphs illustrate operational ratios and comparisons, including:
–Customers per employee
–Million gallons delivered per employee
228
238
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•At approximately
156,000 gallons sold in
2017, Denton’s ratio of
million gallons sold per
customer is slightly
higher than the
comparator’s median
and below the 75th
percentile.
•The average amount of
water sold per customer
is typically impacted by
the mix of customer
classes, as well as
water conservation
measures enacted.
WATER
Million Gallons per Customer -2017
229
239
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Denton’s ratio of MG per
customer has remained
relatively consistent over the
time period of 2015 through
2017.
•Several other Texas water
utilities have exhibited an
increase in per customer
usage (Garland, BTU, BPUB,
Round Rock and Grand
Prairie), while others
(Greenville and Frisco) show
a downward trend in water
usage per customer.
WATER
Million Gallons per Customer – 3-Year Trend
230
240
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The customer per employee ratio
demonstrates productivity, with
higher numbers of customers per
employee indicating more
efficient operations. However, this
measure is also a reflection of
how services are shared across a
municipal organization. For some
water utilities, activities such as
customer service and billing are
staffed outside the utility which
would lead to higher productivity
indices.
•Denton’s ratio using the adjusted
number of employees (to remove
shared services staff counts, FTE
= 97) is to just under the 25th
percentile and the AWWA
averages (mean).
•For the utilities shown as blue
bars, this ratio is based on to the
total number of FTEs in both
Water and Wastewater
operations.
WATER
Retail Customer Accounts Served per Employee -2017
231
241
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The ratio of system
throughput to number of
employees is a common high-
level measure of productivity.
However, this measure is also
a reflection of how services
are shared across a municipal
organization. For some water
utilities, activities such as
customer service and billing
are staffed outside the utility
which would lead to higher
productivity indices.
•Denton’s water utility
productivity of 150,000
gallons per day delivered per
the adjusted number of
employees (FTE = 97 – after
removing shared services
staff) is slightly below the
comparator 25th percentile
and lower than the below
AWWA averages (mean).
•This measure may also be
impacted by climate and
water conservation measures
implemented.
WATER
Million Gallons per Day Delivered per Employee -2017
232
242
Benchmarking –Detailed Findings
Denton Wastewater Utility
TOC
243
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Financial Performance –Wastewater
•The following graphs illustrate financial ratios and comparisons, including:
–Revenue
–Liquidity
–Operating margin
234
244
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•On a revenue per million
gallons (MG) of wastewater
collected or processed basis
across all customer classes,
Denton’s ratio of $5,653 per
million gallons is higher than
the 75th percentile of
comparators.
•Revenue per MG is the
effective rate paid by
customers; however, it is
impacted by the customer
mix and commodity costs.
•For this ratio, Denton should
balance reasonable rates for
customers with achieving
sufficient revenue for the
utility to sustain itself
financially.
WASTEWATER
Revenue per Million Gallons -2017
235
245
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Across all customer classes,
Denton’s ratio of revenue
per MG shows a slight
increase over the past three
years.
•Variations in revenue per
customer can be attributed
to several factors, hence
small changes over time are
not a major concern. Denton
adjusted its wastewater
rates in October 2017, which
likely accounts for the
increase.
•Future increases may
require additional review to
confirm that rates charged to
customers are aligned with
wastewater costs.
WASTEWATER
Revenue per Million Gallons Processed - 3-Year Trend
236
246
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•For residential customers,
Denton’s average monthly
wastewater bill for 7,500
gallons of usage is $39.50
which is slightly higher than the
25th percentile and lower than
the median among
comparators. It is also similar
to the AWWA average bill for
Region IV.
•The fixed cost recovery
component of the wastewater
rates varies from a low of $6.55
for Garland, to a high of $25.44
for Frisco. As with the overall
bill, Denton is again in the
middle of the range with a
customer service charge of
$11.
WASTEWATER
Average Monthly Residential Bill for 7,500 Gallons Usage -2017
237
247
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Current Ratio is defined as
current assets ÷ current liabilities
and measures the water utility’s
short-term liquidity. Current
assets typically include cash,
marketable securities, accounts
receivables, and inventories.
Current liabilities usually include
accounts payable, short-term
notes, and accrued expenses. A
ratio below 1.0, may be indicative
of cash flow issues, while a ratio
of ~2.0 suggests efficient
management of working capital.
•Denton’s Current Ratio of 6.1 is
higher than the comparator
median and close to the 75th
percentile; it indicates the water
utility has sufficient funds to cover
short-term indebtedness.
•Ratios for NBU and BPUB are for
the entire utility operations
(electric, water, wastewater),
ratios for Round Rock, Frisco,
McKinney and Grand Prairie are
for the combined water and
wastewater operations.
WASTEWATER
Current Ratio -2017
238
248
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Current Ratio for Denton
increased each year from
2015 to 2017.
•The Current Ratio for the
majority of comparator
wastewater utilities varies only
slightly year-to-year over the
past three years. This is an
indication that each utility is
adhering to its risk
management or other financial
policies regarding desired
levels of liquidity.
•In order to accommodate
paying for expenses with cash
(or other reasons for holding
significant balances in short-
term reserves), some utilities
will have higher than average
Current Ratio.
WASTEWATER
Current Ratio - 3-Year Trend
239
249
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Debt Ratio is defined as
total liabilities ÷ total assets
and measures the wastewater
utility’s level of indebtedness.
The higher the debt ratio, the
more dependent the
wastewater utility is on debt
financing.
•Denton’s Debt Ratio of 21% is
better than the 75th percentile
as well as below the AWWA
averages (mean). This
indicates that the wastewater
utility is not overly leveraged.
WASTEWATER
Debt Ratio -2017
240
250
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The Debt Ratio for Denton’s
wastewater system declined in
2017 compared to the previous
years.
•The Debt Ratio for the majority
of comparator water utilities
varies only slightly
year-to-year over the past
three years; which is typical
except in years in which new
debt is issued or debt is
refunded.
•Due to its stable cash flows,
utilities frequently operate with
a debt level of 40%. However,
some municipal utilities elect to
either forgo issuing debt or use
limited debt financing, which
results in very low debt ratios.
WASTEWATER
Debt Ratio - 3-Year Trend
241
251
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Operating Margin is a
measure of the proportion of
the wastewater utility’s
revenue remaining after
paying operating expenses.
•Denton’s ratio of 18.2% is
above the 75th percentile. Its
operating margin indicates
that Denton is earning just
over 18 cents for every
dollar of sales revenue
before debt service, capital
projects, and transfers to
the City for return on
investment and franchise
taxes.
•The Frisco wastewater utility
shows a negative operating
margin as it had negative
operating income (loss) that
appears to be related to
non-cash transactions.
WASTEWATER
Operating Margin -2017
242
252
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Denton’s Operating Margin has
exhibited only slight variations
over the past three years.
•Modest annual changes in this
measure are not typically a
concern; however, trends such
as continued declines or
substantial drops in the margin
over time may highlight rising
costs that are not being
adequately recovered by rates
and might warrant rate
increases or conducting a cost
of service study.
•The Frisco wastewater utility
shows a negative operating
margin in 2017 as it had
negative operating income
(loss) in that year.
WASTEWATER
Operating Margin - 3-Year Trend
243
253
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Operational Performance -Wastewater
•The following graphs illustrate operational ratios and comparisons, including:
–Customers per employee
–Million gallons delivered per employee
244
254
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•At approximately
168,000 gallons in 2017,
Denton’s ratio of MG per
wastewater customer is
slightly higher than
comparators’ 75th percentile.
•The average amount of
wastewater collected or
processed per customer is
typically impacted by the
mix of customer classes as
well as weather events such
as heavy levels of rainfall.
WASTEWATER
Million Gallons per Customer -2017
245
255
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•Denton’s ratio of MG
per wastewater
customer has
remained relatively
consistent over the
time period of 2015
through 2017.
WASTEWATER
Million Gallons per Customer – 3-Year Trend
246
256
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The customer per employee ratio
demonstrates operational
efficiency. Higher numbers of
customers per employee indicate
higher levels of productivity.
However, this measure is also a
reflection of how services are
shared across a municipal
organization. For some
wastewater utilities, activities
such as customer service and
billing are staffed outside the
utility which would lead to higher
productivity indices.
•At 366, Denton’s ratio using an
adjusted number of employees to
remove staff providing shared
services (FTE = 89) is below the
comparator’s 25th percentile as
well as lower than the AWWA
averages (mean).
•This measure may be impacted
by how the wastewater operation
allocates for shared services as
well as whether or not
maintenance crews maintain
lower-lateral sections of the
sewer line (from the customer
cleanout to the collector).
WASTEWATER
Retail Customer Accounts Service per Employees -2017
247
257
NEWGEN STRATEGIES AND SOLUTIONS, LLC
•The million gallons processed per
employee ratio demonstrates
average annual usage for all
customer classes served by the
wastewater utility. However, this
measure is also a reflection of
how services are shared across a
municipal organization. For some
wastewater utilities, activities
such as customer service and
billing are staffed outside the
utility which would lead to higher
productivity indices.
•The ratio of system throughput to
number of employees is a
common high-level measure of
productivity or efficiency.
Denton’s wastewater utility
productivity of 160,000 gallons
processed per adjusted number
of employee (to remove shared
services staff numbers, FTE =
89) is higher than the 25th
percentile of gallons processed,
but slightly below the AWWA
averages.
WASTEWATER
Million Gallons Processed per Employee -2017
248
258
APPENDICES
TOC
259
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Name Title Name Title
Kenneth Banks General Manager of Utilities Smith Day Regulatory & Risk Division Manager
George Morrow General Manager of Denton Municipal Electric Stephen Johnson Market Operations Manager
Brent Heath Executive Manager of Energy Delivery Mary Dickinson Business Manager
Toni Puente Finance Director Kathy Brooks Electric Budget Manager
Rusty White Electric Safety & Training Supervisor David Gaines Assistant Finance Director
Jason Brown Power Plant Manager Jose Gaytan Energy Analytics Manager
Brad Watts Operations Line Superintendent Kyle Thompson Power Plant Maintenance Supervisor
Jerry Fielder Engineering Div Manager -Distribution Mike Wilson ERCOT Settlement & Rate Administrator
JR Richardson Metering Superintendent Elizabeth Ruiz Energy Programs & Key Accounts Admin
Fara Emadi Engineering Services Manager Kevin Griffin Power Plant Operations Supervisor
Jerry Looper System Operations Manager Minh Tran Compliance Officer
Sam Bridges Substation /Transmission Superintendent Michael Looper Electric Distribution Foreman
Chuck Sears Engineering Div Manager -Transmission Bobby King Electric Distribution Senior Lineman
Rowdy Patterson Distribution Line Superintendent
Appendix A –Persons Interviewed
250
TOC
260
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Name Title Name Title
David Clark Water Production Superintendent David Brown Wastewater Collections Manager
Kirt Behrens Water Meter/Cross Connect Control Manager P. S. Arora Wastewater Director
Susan Croff Process Control/QC Auditor Brian Smith Water Plant Manager
Daniel Parish Water Utilities Coordinator Kent Conkle Superintendent Water/Wastewater
Alberto Lopez Construction Projects Mgr Todd Estes Capital Projects
Casey Bowles Water Distribution System Mgr Tony Puente Utilities Finance Administrator
Tim Fisher Water Director Cassandra Ogden Director of Procurement and Compliance
Tyler Dawson Field Service Technical Manager Frank Pugsley Deputy Director Water/Wastewater
Frank Pugsley Deputy Director Water/Wastewater Melissa Kraft IT Director
Rusty Willard Wastewater Reclamation /Beneficial Reuse Mario Canizares Assistant City Manager
Nick Vincent Utility Business Manager Todd Hileman City Manager
Tiffany Sherrane Wastewater Utility Coordinator Bryan Langley Deputy City Manager
Appendix A –Persons Interviewed (cont’d)
251
261
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Appendix B –Documents Reviewed
252
2015-GEUS-Audited-Financial-
Statement.pdf
2016-2017 Approved Budget
GreenvilleTX
2016-2017 CAFR -City of
Greenville
2016-GEUS-Audited-Financial-
Statement.pdf
2018-19-Utility-Rate-Denton.pdf
2018-2019 PROPOSED
BUDGETGreenvilleTX.pdf
BPUB_FY2017_2018Budget.pdf
BPUB2017_CAFR_FINAL.pdf
BrownsvillePublicUtilitesCAFR_20
16.pdf
Bryan_TX_FY_15_CAFR.pdf
Bryan_TX_FY_16_CAFR.pdf
Bryan_TX_FY_17_CAFRv2
City of Garland 2016-17 Adopted
Budget.pdf
City of Garland 2017-18 Annual
Operating Budget.pdf
CityofReddingCAFRFYE2016.pdf
CityofReddingCAFRFYE2017.pdf
Denton 2014-15-CAFR.pdf
Denton 2015-16-CAFR.pdf
Denton FY17-18 3rd-Quarter-
Financial-Report.pdf
Denton_2015-16-CAFR.pdf
Denton_2017-CAFR.pdf
FY15 City Of Garland CAFR.pdf
FY16 City of Garland CAFR.pdf
FY17 City of Garland CAFR.pdf
Garland FY 2018-19 Proposed
Budget.pdf
Garland Texas -Water Rates.pdf
Garland Texas -Water Utilities.pdf
GEUS 2017 Annual Rpt.pdf
GPL2015AnnualReport.pdf
GPL2016AnnualReport.pdf
GPL2017AnnualReport.pdf
Greenville 2015 CAFR.pdf
Greenville 2016 CAFR.pdf
LCG_2017_CAFR.pdf
NBU CAFR 2017 FINAL.pdf
NBU_2018-Consumer-Confidence-
Report Water.pdf
Redding_CAFR_FYE 2015.pdf
Riverside_2017_Financial
Report.pdf
Attachment 2 Electric Water WW
Funds.pdf
Copy of DME Vehicle Data
12.19.18.xlsx
Copy of Historical Actuals 12 to
present 08-01-18.xls
2017 Safety Awards of Excellence
Annual Report Form (002).pdf
DME SAFETY INCIDENT RATES.xlsx
Electric Denton Benchmark data
20181120.xlsx
Q17 DME long rept091308.
ppt.ppt
2018 DME Historical Peak Loads
Since 1960.PNG
2018-19 CIP Listing.xlsx
2019 CIP Feeder Imp
20180412.pdf
Construction Report 20180830.pdf
Copy of System Studies &
Analysis.xlsx
Final 2019 CIP RCA Map.pdf
16 Exhibit 3 -FY 2017-18 Electric
Revised CIP.pdf
16 FY 17-18 Budget & CIP.pdf
2012-13-Budget.pdf
2012-13-CAFR.pdf
2013-14-Budget.pdf
2013-14-CAFR.pdf
2014-15-Budget.pdf
2014-15-CAFR.pdf
2015-16-Budget.pdf
2015-16-CAFR.pdf
2016-17-Budget.pdf
2016-17-CAFR.pdf
2017-City-of-Denton-CAFR.pdf
Adopted-Cover-Page-and-
expenditures.pdf
AIS FINANCIAL STRATEGIES 2017
FINAL 012417.docx
Attachment 1 Solid Waste
Fund.pdf
Attachment 2 Electric, Water, WW
Funds.pdf
Budget Instructions FY 18-19 12-
11-17.doc
City-of-Denton-2018-19-Proposed-
Budget.pdf
City-of-Denton-Annual-Program-
of-Services-FY-2017-18.pdf
City-of-Denton-APoS-FY-2016-
17.pdf
Debt-Report-09-30-13.pdf
Debt-Report-09-30-14.pdf
Debt-Report-09-30-15.pdf
Debt-Summary-Report-17-46-
022117.pdf
Debt-Summary-Report-18-47-
FINAL.pdf
DME 2014 Rates (2).pdf
DME-Financial-Overview.pdf
Exhibit 3 -Contract.pdf
Expenditure Actuals for Five Years
2013-2017.xlsx
FF and ROI Actuals -FY 2013-
17.xlsx
Franchise Fee Memo 091318.docx
FY 13-17 CIP Budget & Actuals.xlsx
FY15-16 4th-Qtr-Report-
electronic-copy.pdf
FY16-17 2nd-Quarter-Financial-
Report.pdf
FY16-17 4th-Quarter-Financial-
Report.pdf
FY16-17 Website-3rd-Quarter-
Report-Aug-24.pdf
FY17-18 1st-Quarter-Financial-
Report.pdf
FY17-18 2nd-Quarter-Financial-
Report_1.pdf
FY17-18 3rd-Quarter-Financial-
Report.pdf
FY-2012-13-1st-Quarter-Financial-
Report.pdf
FY-2012-13-2nd-Quarter-Financial-
Report.pdf
FY-2012-13-3rd-Quarter-Financial-
Report.pdf
FY-2012-13-4th-Quarter-Financial-
Report.pdf
FY-2013-14-1st-Quarter-Financial-
Report.pdf
FY-2013-14-2nd-Quarter-Financial-
Report.pdf
FY-2013-14-3rd-Quarter-Financial-
Report.pdf
FY-2013-14-4th-Quarter-Financial-
Report.pdf
FY-2014-15-1st-Quarter-Financial-
Report.pdf
FY-2014-15-2nd-Quarter-Financial-
Report.pdf
FY-2014-15-3rd-Quarter-Financial-
Report.pdf
FY-2014-15-4th-Quarter-Financial-
Report.pdf
FY-2015-16-1st-Quarter-Financial-
Report.pdf
FY-2015-16-2nd-Quarter-Financial-
Report.pdf
FY-2015-16-3rd-Quarter-Financial-
Report.pdf
FY-2015-16-4th-Quarter-Financial-
Report.pdf
FY-2016-17-1st-Quarter-Financial-
Report.pdf
FY-2016-17-2nd-Quarter-Financial-
Report.pdf
FY-2016-17-3rd-Quarter-Financial-
Report.pdf
FY-2016-17-4th-Quarter-Financial-
Report.pdf
Revenue Actuals for Five Years
2013-2017.xlsx
Exhibit 1. FY2016-17 UTILITIES
FINANCIAL STRATEGIES, FINAL,
060316.docx
Exhibit 2. FY2017-18 revised
UTILITIES FINANCIAL STRATEGIES,
012417.docx
Exhibit 3 Financial Strategies
PRESENTATION Final 020117.pptx
01 FY 18-19 Organizational Chart
071818.ppt
01 FY 18-19 Organizational Chart
071818.pptx
TOC
262
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Appendix B –Documents Reviewed
(cont’d)
253
01 FY 18-19 Organizational Chart
0718181.pptx
01 FY 18-19 Organizational Chart
0718182.pptx
01 FY 18-19 Organizational Chart
0718183.pptx
11-14-06 DME Salaries TO T
Edgar.xls
Comments -Distribution
Engineering.docx
Copy of Distribution Project
Tracker -MasterNewest.xlsx
Denton DME.doc
DME draft ppt report 072708.ppt
DME draft ppt report 072708.pptx
DME Executive Summary (V3) -
with previously surveyed
organizations.pdf
DME Executive Summary (V4a) -
without Austin and CPS.pdf
DMECAM.doc
FY 18-19 Organizational Chart
071818.pdf
Summary Sept 29 2017 with
Historical Market Delta (Incld. AE
and CPS).pdf
Summary Sept 29 2017 with
Historical Market Delta (WITHOUT
AE and CPS).pdf
bv-18-denton.tx-start#2-E7-TCEQ-
Report.pdf
09-11-17 DME Savings Model
Review -Final.pdf
12-11-17 DME Report -FInal.pdf
2016 Distribution System
Reliability Study.pdf
2016 EOY Reliability Report.pdf
2017 and 2018 DME Area TM CB
Operation Summary.pdf
2017 Outages.xlsx
2017 Reliability [FINAL V2_3].pptx
2017.12.05 final Denton
Renewable Resource Plan
v1.4.docx
2018 Outages (1st Qtr -Clean).xlsx
7-19-18 369MW peak.pdf
Comments –Transmission
Engineering.docx
Council Presentation_September
19, 2017.pdf
DME system outage report
2017.doc
EIA Reliability_2015.xlsx
EIA Reliability_2016.xlsx
Exhibit 1 -Agenda Information
Sheet.pdf
Exhibit 2 -Resource Planning and
Power Supply Strategy Report 10-
24-17.pdf
Exhibit 3 -Presentation.pdf
Feeder loading data on Peak
2018.xls
FY17-18 ESTIMATE DEC Monthly
Proforma.pdf
Outages 2016 V3.xlsx
Peak Loading Analysis 2018.docx
Transformer loading data on Peak
2018.xls
04_050115.doc
16SSWG_2018_SUM1_U1_Final_1
0152016_DME_FERC715.raw
16SSWG_2018_SUM1_U1_Final_1
0152016_DME_FERC715.sav
16SSWG_2018_SUM1_U1_Final_1
0152016_DME_FERC715_DEC.raw
16SSWG_2018_SUM1_U1_Final_1
0152016_DME_FERC715_DEC.sav
16SSWG_2018_SUM1_U1_Final_1
0152016_DME_FERC715_DEC_SP
N.raw
16SSWG_2018_SUM1_U1_Final_1
0152016_DME_FERC715_DEC_SP
N.sav
16SSWG_2018_SUM1_U1_Final_1
0152016_DME_FERC715_Load_SE
N.raw
16SSWG_2018_SUM1_U1_Final_1
0152016_DME_FERC715_Load_SE
N.sav
16SSWG_2020_MIN_U1_Final_10
152016_DME_FERC715.raw
16SSWG_2020_MIN_U1_Final_10
152016_DME_FERC715.sav
16SSWG_2020_MIN_U1_Final_10
152016_DME_FERC715_Load_SEN
.raw
16SSWG_2020_MIN_U1_Final_10
152016_DME_FERC715_Load_SEN
.sav
16SSWG_2022_SUM1_U1_Final_1
0152016_DME_FERC715.raw
16SSWG_2022_SUM1_U1_Final_1
0152016_DME_FERC715.sav
16SSWG_2022_SUM1_U1_Final_1
0152016_DME_FERC715_DEC.raw
16SSWG_2022_SUM1_U1_Final_1
0152016_DME_FERC715_DEC.sav
16SSWG_2022_SUM1_U1_Final_1
0152016_DME_FERC715_DEC-
SPN.raw
16SSWG_2022_SUM1_U1_Final_1
0152016_DME_FERC715_DEC-
SPN.sav
16SSWG_2022_SUM1_U1_Final_1
0152016_DME_FERC715_Load_SE
N.raw
16SSWG_2022_SUM1_U1_Final_1
0152016_DME_FERC715_Load_SE
N.sav
16SSWG_2023_SUM1_U1_Final_1
0152016_DME_FERC715_2027.sav
16SSWG_2023_SUM1_U1_Final_1
0152016_DME_FERC715_2027O.r
aw
17SSWG_2019_SUM1 -
DEC_OFF.raw
17SSWG_2019_SUM1 -
DEC_OFF.sav
17SSWG_2019_SUM1 -
DEC_OFF_LOAD_SEN.raw
17SSWG_2019_SUM1 -
DEC_OFF_LOAD_SEN.sav
17SSWG_2019_SUM1.raw
17SSWG_2019_SUM1.sav
17SSWG_2019_SUM1_Load_Sen.r
aw
17SSWG_2019_SUM1_Load_Sen.s
av
17SSWG_2021_MIN.raw
17SSWG_2021_MIN.sav
17SSWG_2021_MINLoad_SEN.raw
17SSWG_2021_MINLoad_SEN.sav
17SSWG_2023_SUM1 -
DEC_OFF.raw
17SSWG_2023_SUM1 -
DEC_OFF.sav
17SSWG_2023_SUM1 -
DEC_OFF_LOAD_SEN.raw
17SSWG_2023_SUM1 -
DEC_OFF_LOAD_SEN.sav
17SSWG_2023_SUM1.raw
17SSWG_2023_SUM1.sav
17SSWG_2023_SUM1_Load_SEN.r
aw
17SSWG_2023_SUM1_Load_SEN.s
av
17SSWG_2024_SUM1_28SUM -
DEC_OFF.raw
17SSWG_2024_SUM1_28SUM -
DEC_OFF.sav
17SSWG_2024_SUM1_28SUM.raw
17SSWG_2024_SUM1_28SUM.sav
1-FERC Form 715 Report
Transmittal Letter.pdf
2017 DentonOneLine.pdf
2017_DME_FERC-715_Breaker
Rating Adequacy
Assessment_Final_03302017.docx
2017_DME_FERC-715_Breaker
Rating Adequacy
Assessment_Final_03302017.pdf
2017_DME_FERC715_Report_wor
king_Final_03302017.docx
2017_DME_FERC715_Report_wor
king_Final_03302017.pdf
2017_July-System Topology.pdf
2018 DentonOneLine.pdf
2018 FERC Onelines -DME.pdf
2018 FORM 715 Submission.pdf
2018 July OneLine.pdf
2018 July Topology.pdf
2018 July Topology-DETAIL A.pdf
2018 July Transmission System
Topology.pdf
2018 July Transmission System
Topology-Detail A.pdf
2018_DME_FERC715_Report_328
2018.pdf
2020 Jan.DentonOneLine.pdf263
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Appendix B –Documents Reviewed
(cont’d)
254
2021 DentonOneLine.pdf
2021_July-System Topology.pdf
2022 DentonOneLine.pdf
2022 July OneLine.pdf
2022 July Topology.pdf
2022 July Topology-Spencer
Area.pdf
2027 DentonOneLine.pdf
2-FERC Form 715 Introduction-
Cityof Denton.pdf
3-
2018_DME_FERC715_Report_328
2018.docx
3-
2018_DME_FERC715_Report_328
2018.pdf
4-
2017_DME_FERC715_Stability_Re
port_Final.pdf
4-
2018_DME_FERC715_Stability_Re
port.pdf
5-2018_DME_FERC-715_Breaker
Rating Adequacy Assessment.docx
Aaron Woods -Commercial Load
Analysis.xlsx
Appendix A -
DWG_Procedure_Manual_Revisio
n_10.doc
Appendix A -
DWG_Procedure_Manual_Revisio
n_10.pdf
APPENDIX B -
MaxDeviationsv33_2019SP.pdf
APPENDIX B -
MaxDeviationsv33_2020HWLL.pdf
APPENDIX B -
MaxDeviationsv33_2024SP.pdf
Appendix B -Maximum Deviations
-Flatstart Run.pdf
Appendix C -ERCOT Planning
Guide.doc
Appendix C -TPL-001-4.pdf
Appendix D - 2018HWLL -Dynamic
Events.xlsx
Appendix D - 2018SUM -Dynamic
Events.xlsx
Appendix D - 2018SUM_GENSEN1
-Dynamic Events.xlsx
Appendix D - 2018SUM_GENSEN2
-Dynamic Events.xlsx
Appendix D - 2022SUM -Dynamic
Events.xlsx
APPENDIX D - Events_2019SP.xls
APPENDIX D -
Events_2020HWLL.xls
APPENDIX D - Events_2024SP.xls
Appendix E - 2018HWLL.pdf
Appendix E - 2018SUM.pdf
APPENDIX E -
PLOTS_2019SP_BASECASE.pdf
APPENDIX E -
PLOTS_2020HWLL_BASECASE.pdf
APPENDIX E -
PLOTS_MITIGATION_2019SP_BAS
ECASE_CCT.pdf
APPENDIX E -
PLOTS_MITIGATION_2019SP_BAS
ECASE_OOS.pdf
Appendix F - 2018HWLL -
LOADSEN.pdf
Appendix F - 2018SUM -
LOADSEN.pdf
APPENDIX F -
PLOTS_2019SP_LOAD
SENSITIVITY.pdf
APPENDIX F -
PLOTS_2020HWLL_LOAD
SENSITIVITY.pdf
APPENDIX F -
PLOTS_MITIGATION_2019SP_LOA
D SENS_CCT.pdf
APPENDIX F -
PLOTS_MITIGATION_2019SUM_L
OAD SENS_OOS.pdf
Appendix G - 2018SUM -GEN
SENSITIVITY CASE-
1_3Ph_P4+P5_CCT.pdf
Appendix G - 2018SUM -GEN
SENSITIVITY CASE-
1_P4+P5_SLG.pdf
Appendix G - 2018SUM -GEN
SENSITIVITY CASE-
1_P4+P5_SLG_CCT.pdf
Appendix G - 2018SUM -GEN
SENSITVITIY CASE-1-1.pdf
Appendix G - 2018SUM -GEN
SENSITVITIY CASE-1-2.pdf
APPENDIX G - PLOTS_2019SP_GEN
SESITIVITY.pdf
Appendix H - 2018SUM -GEN
SENSITIVITY CASE - 2-1.pdf
Appendix H - 2018SUM -GEN
SENSITIVITY CASE - 2-2.pdf
Appendix H - 2018SUM -GEN
SENSITIVITY CASE-
2_3Ph_P4+P5_CCT.pdf
Appendix H - 2018SUM -GEN
SENSITIVITY CASE-
2_P4+P5_SLG.pdf
Appendix H - 2018SUM -GEN
SENSITIVITY CASE-
2_P4+P5_SLG_CCT.pdf
APPENDIX H -
PLOTS_2024SP_BASECASE.pdf
APPENDIX H -
PLOTS_MITIGATION_2024SP_BAS
ECASE_CCT.pdf
APPENDIX H -
PLOTS_MITIGATION_2024SP_BAS
ECASE_OOS.pdf
Appendix I - 2023SUM.pdf
Arturo Guardado -Load Analysis
(VALUES).xlsx
CEII P18SP.raw
CEII P18SP.sav
CEII P19SP.raw
CEII P19SP.sav
CEII P20MN.raw
CEII P20MN.sav
CEII P20SP.raw
CEII P20SP.sav
CEII P21MN.raw
CEII P21MN.sav
CEII P21SP.raw
CEII P21SP.sav
CEII P22SP.raw
CEII P22SP.sav
CEII P23SP.raw
CEII P23SP.sav
CEII P24SP.raw
CEII P24SP.sav
CIP Map 2019-2023 Landscape
(1).pdf
CIP Schedule Summary.xlsx
CityofDentonStrategicPlan.pdf
Cody Tenorio -Load Analysis.xlsx
Copy of Transmission and Fiber
Inventory List.xlsx
Denton Area Circuit Breaker
Nameplate Data.pdf
Denton Area Substation
Relays.pdf
Denton Area System OneLine - 7-
6-2018.pdf
DME -Phase I Report_Final Draft
Rev 3.pdf
DME E&OT Strategic Plan V2-4
(final).pdf
DME_Surround_15DSB_2018SUM
_P2-P4.con
DME_Surround_15DSB_2020MIN_
P2-P4.con
DME_Surround_16SSWG_2018_P
1-ERCOT_1-P7.con
DME_Surround_16SSWG_2018SU
M_Extreme_Events.CON
DME_Surround_16SSWG_2022_P
1-ERCOT_1-P7.con
DME_Surround_16SSWG_2022SU
M_P2-P4.con
DME_Surround_17SSWG_19_P1 -
N-1-1_First.con
DME_Surround_17SSWG_19_P1 -
N-1-1_Second.con
DME_Surround_17SSWG_2019_P
1-ERCOT_1-P7.con
DME_Surround_17SSWG_2019SU
M_Extreme_Events.CON
DME_Surround_17SSWG_2019SU
M_P2-P4.con
DME_Surround_17SSWG_2021MI
N_Extreme_Events.CON
DME_Surround_17SSWG_2021MI
N_P1 - N-1-1_First.con
DME_Surround_17SSWG_2021MI
N_P1-ERCOT_1-P7.con
DME_Surround_17SSWG_2021MI
N_P2-P4.con264
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Appendix B –Documents Reviewed
(cont’d)
255
DME_Surround_Single_Transform
er_20168UM_A-1+N-1.con
DME_Surround_Single_Transform
er_2019UM_A-1+N-1.con
DRAFT_2018 FORM 715 of
ERCOT.docx
Entire GIS Assets Inventory
20180829.xlsx
ERCOT Planning Guide-
04_050115.doc
ERCOTDD.xls
Final_2017 FORM 715 of ERCOT
cover letter.pdf
Final-Substation and Transmission
CIP 2019-2023 RevAHE.xlsx
Future 2022 July Transmission
System Topology.pdf
Future 2022 July Transmission
System Topology-Detail A.pdf
Load Analysis.xlsx
Oak Area StudyDoc1.docx
OAK GATEWAY AREA PLAN -
36x36.pdf
plots_bind_BF_2018HWLL+DEC.pd
f
plots_bind_BF_2018SUM+DEC.pdf
plots_bind_N11_2018HWLL+DEC.
pdf
plots_bind_N11_2018SUM+DEC.p
df
plots_bind_NC_2018HWLL+DEC.p
df
plots_bind_NC_2018SUM+DEC.pd
f
plots_bind_remedial_BF#9_2018H
WLL+DEC.pdf
plots_bind_remedial_BF#9_2018S
UM+DEC.pdf
Short Circuit
Report_18INR0013_Final_010420
17.pdf
Small Area Study 2017 -For Jerry
(VALUES ONLY).xlsx
Stability_Report_18INR0013_1216
2016_Final.pdf
Stability_Report_18INR0013_1216
2016_Final_Updated.pdf
Steady_State_Study_Report_18IN
R0013_11232016_Final.pdf
Substation Transformer Data 8-27-
2018.pdf
Substations Operated by DME 8-
27-2018.pdf
System Map.pdf
Transmission Lines 8-27-2018.pdf
138kV TM Line Vegetation Mgmt
Inspection Woodrow to
McKinney.pdf
2014 CONTROLLER
IDENTIFICATION-1.pdf
2014 CONTROLLER
IDENTIFICATION-2.pdf
2014 CONTROLLER
IDENTIFICATION-3.pdf
2014 CONTROLLER
IDENTIFICATION-4.pdf
2014 CONTROLLER
IDENTIFICATION-5.pdf
2014 CONTROLLER
IDENTIFICATION-6.pdf
2017 COD TAX EXEMPT
FORM.DOC
A Weekly Substation Inspection
Sheet Samples.pdf
ADMIS Customer Account
Application.pdf
ADMIS Owner ID Supplement.pdf
ADMS Confidentiality
Agreement.pdf
Arbitration.pdf
Authority to Transact -
CONFIDENTIAL.pdf
B Cooper Creek Substation
Checkout Summary G2ETC.doc
Bluebell II PPA.pdf
Bluebell Power Purchase
Agreement.pdf
Broker Agmt DME Amerex
FINAL.pdf
Broker Agmt DME Atlas FINAL.pdf
Broker Agmt DME BGC Financial
FINAL.pdf
Broker Agmt DME Bosworth
FINAL.pdf
Broker Agmt DME BTU FINAL.pdf
Broker Agmt DME ICAP FINAL.pdf
Broker Agmt DME TFS FINAL.pdf
Bryan EEI Master.pdf
Bryan Langley Photo ID.pdf
C McKinney Substation Building 1
Batteries Testing.xls
CC McKinney Substation Building 3
Batteries Testing.xls
Centrica Guarantee
Agreement.pdf
Citigroup Energy Collateral
Annex.pdf
Citigroup Energy EEI.pdf
Citigroup Energy Guarantee
Agreement.pdf
City of Denton SENA and STRM
Certificates.pdf
City of Denton SENA Guaranty
Final 12-6-17.docx.pdf
City of Denton TX OB GTY (EEI)
(06.19.14) XD (06.19.16).pdf
City Secretary Certificate -
CONFIDENTIAL.pdf
Clevest Trouble WorkOrder tickets
from distr PM patrols r.pdf
COD W9.pdf
Collateral Annex.pdf
ConocoPhillips.pdf
Controller Identification
Supplement.pdf
Cover Letter to James Lierman 6 3
2016.doc
Cover Letter to Linda Cole 1 18
2018.doc
Credit Support Annex.pdf
Customer Account Application.pdf
Customer Agreement.pdf
D Woodrow Substation Building 2
Battery Charger Testing.pdf
DENTONFINAL4.20.09.pdf
Designation of Signature.pdf
Distribution ATO monthly
logsheet inspection r.pdf
DME EEI Collateral_para 10
v2.0.docx
DME EEI Master v2.0.docx
DME Enforceability Legal
Opinion.pdf
DME MSCG Collateral Annex.pdf
DME MSCG EEI Master.pdf
DME_TrailStone Group CA
(Revised TrailStone Comments
6.16.17).docx
DTE Final Contract.pdf
E Woodrow Substation Building 2
Batteries Testing.pdf
EDF Collateral Annex.pdf
EDF EEI.pdf
EDF Guarantee.pdf
EEI Master.pdf
Electronic Trading Disclosure.pdf
F Arco Substation InfraRed
Inspection.pdf
First Amendment FINAL 06152010
Signed .pdf
FW ADM Clearing Account
Paperwork.msg
FW First Amendment To Guaranty
-Nextera.msg
FW_ Denton -NewGen
Request.pdf
G Arco 15kV 220 and 221 Breaker
Testing and Maint.pdf
Garland EEI Master.pdf
GIS Distr Device Inspections 7-23-
12.xls
Hedge Account
Representation.pdf
Howard Martin Photo ID.pdf
I SF6 Substation Breaker Gas
Testing r.pdf
ICE OTC Participant Agreements -
ORIGINAL AGREEMENTS.msg
IFUS Participant Agreement
8.12.16 (DME 3.10.17).pdf
III Substation Transformer Oil and
Dissolved Gas Testing r.pdf
InfraRed Transformer and 600A
TBody Inspection r.pdf
Inspector Tabular Screenshots.doc
ISDA Master Agreement.pdf
J Relay Testing.pdf
Janet Granger Letter 3-20-18.doc
K RDW Building 3 Battery
Discharge Testing.pdf265
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Appendix B –Documents Reviewed
(cont’d)
256
Keira Kazmerski Cover Letter 8-12-
2016.doc
LCRA EEI Master.pdf
LCRA-W9-Form.pdf
List of Items DME Routinely
Inspects in Substations.pdf
NAESB Contract with Enterprise -
FINAL.pdf
NAGP EEI 7-14-14.pdf
NAGP EEI Master Signed 7-14-
14.pdf
NextEra Second Amendment to
PPA FINAL EXECUTED.pdf
Noble Credit Risk Position 1-8-
16.xlsx
Noble Guarantee Agreement.pdf
Northern States Power Company
Collateral Annex.pdf
Northern States Power Company
EEI.pdf
Online Account Access
Application.pdf
Ordinance 2014-060 Authorizing
the Energy Risk Management
Policy FINAL.pdf
Ordinance 2018-017.pdf
Pole Assembly Trans Inspections
4-26-12.xlsx
PSE Collateral Annex.pdf
PSE Master Cover Sheet.pdf
R2013-036 Investment Policy.pdf
RD Wells to Hickory.pdf
RE Denton Municipal Electric -
ACTION REQUIRED FOR
UNINTERRUPTED ACCESS TO IFUS
(IFUS PA).msg
Risk Disclosure Statement.pdf
Sales and Use Tax Certificante.pdf
Santa Rita Executed Contract.pdf
SCOA Guaranty_City of Denton
dba Denton Muni Elec_102915.pdf
SENA Collateral Annex.pdf
SENA Master Agreement.pdf
Shell Trading Risk Management
W9 2018.pdf
Special Entity Schedule.pdf
Tenaska Confidentiality
Agreement.pdf
Tenaska EEI CS + Collateral Annex
07 01 2015.pdf
Tenaska Guarantee.pdf
Tony Puente Photo ID.pdf
Trading Disclosure -2.pdf
Tree Trimming Circuit Feeder
Yearly Progress.xls
Updated Transacting Authority
Memo.docx.pdf
Utility Special Representation
Letter.pdf
01 Purchasing -Project Execution
Process Substation -Rev 2.pdf
02 Site & Route Selection -Project
Execution Process -Rev 9.pdf
03 AIS -Site Selection -Project
Execution Process Substation -Rev
1.pdf
04 Land Acquisition -Substation
Project Execution Process -Rev
10.pdf
05 Land Acquisition -Transmission
Line Project Execution Process Rev
7.pdf
06 AIS -Land & Easement
Acquisition -Project Execution
Process -Rev 2.pdf
07 Condemnation -Project
Execution Process Part I_II -Rev
3.pdf
08 Closing -Project Execution
Process -Rev 1.pdf
09 Relocation -Project Execution
Process.pdf
10 Planning -SUP -Project
Execution Process Substation -Rev
2.pdf
10027065-HOU-R-01-0 Report
Final.pdf
11 Planning -SWPPP, Clearing &
Grading Permit -Project Execution
Process Substation -Rev 3.pdf
12 Planning -Fence Permit -
Project Execution Process
Substation -Rev 3.pdf
13 Planning -Building Permit -
Project Execution Process
Substation -Rev 4.pdf
14 Planning -Preliminary Plat -
Project Execution Process
Substation -Rev 2.pdf
15 Planning -Minor Plat -Project
Execution Process Substation -Rev
3.pdf
16 Planning -Final Plat -Project
Execution Process Substation -Rev
3.pdf
17 Planning -Conveyance Plat -
Project Execution Process
Substation -Rev 1.pdf
18 Design Electrical & Structural -
Substation Project Execution
Process -Rev 2.pdf
19 Design Relay -Substation
Project Execution Process -Rev
2.pdf
20 Construction -Substation
Project Execution Process -Rev
1.pdf
2018 DME Black Start Plan Version
1.doc
2018 Emergency Operations Plan
(5).docx
Control Center Backup Plan
2018.docx
Copy of DME DG PV Unit
Listing.xlsx
CP1-Contingency Plan 2018.docx
DME AssetLife Workflow.pdf
DME Load Shed Plan Report - 2018
Final.docx
DME Processes List.pdf
DME Switching Procedure
2016V3.pdf
DME System Operations Process
.docx
DME System Peak by Substation
Transformer 2018.tif
DME_WorkflowInterfacesDiscover
y_v1.pdf
EMO Procedure 01 Position
Balancing Methodology.pdf
EMO Procedure 02 Load Forecast
Methodology.pdf
EMO Procedure 03 Estimate
Available Resources
Methodology.pdf
EMO Procedure 04 Review
Position and Perform Deals
Methodology.pdf
ERM Procedure CR-01 Master
Agreement Negotiations.pdf
ERM Procedure CR-02
Counterparty Evaluations.pdf
ERM Procedure CR-03 Credit Risk
Calculations.pdf
ERM Procedure CR-04 Credit
Portfolio Administration.pdf
ERM Procedure GC-01 Approved
Transaction Types.pdf
ERM Procedure GC-02 Transaction
Approval Process.docx
ERM Procedure GC-02 Transaction
Approval Process.pdf
ERM Procedure GC-03 Model
Validation Change Control.pdf
ERM Procedure MR-01 Market
Risk Exposure Methodology.pdf
ERM Procedure MR-02 Forward
Price Curves.pdf
ERM Procedure MR-03 Portfolio
Risk Exposure Limits.pdf
ERM Procedure MR-04 Risk
Models and Metrics.pdf
ERM Procedure MR-05 Non-
Standard Product Valuation.pdf
ERM Procedure MR-06
Transaction Risk Limit.pdf
ERM Procedure SE-01 ERCOT
Settlement Process.pdf
ERM Procedure SE-02 Bilateral
Settlement Process.pdf
Executive Dashboard Packet 7-31-
18.pdf
FY2019 GS Manual.pdf
MeterPingLogic.pdf
RPT.2018 ERCOT Black Start
Plan.pdf
Santa Rita Operating
Procedures.docx
Substation Loading at 2018
Peak.tif266
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Appendix B –Documents Reviewed
(cont’d)
257
Tailboard-Job Briefing
Procedure.pdf
Visio-Joint Use Process.pdf
DME public communicaiton
paths.docx
DME Tree Trimming Program.pdf
door hanger .bmp
Electric Outage Communication
Plan_jr.docx
GreenSense Energy Rebate Flier
1017.pdf
Learn to Conserve Workshop
Thermostat 0216.pdf
2016 Innovation Plan.pdf
DME TS 5-Year Roadmap
v2018.6.docx
2018-125 CO Bond Sale and Rating
Reports.pdf
Appropriable Fund Balance used
for the 2018 beginning budget
6_12_17 TP 120517.pdf
Complete 2017-007 Informal Staff
Report on 2017 Utility System
Revenue Bond Sale.pdf
1997 Management Study -
Governance.pdf
3 Turnover.pdf
City Charter and Ordinance
Excerpts.docx
Copy of Terms 8.1.15 to 8.24.18 -
for Electric Water and WW.xlsx
Navigant water cs report draft
100308.ppt
Navigant water cs report draft
100308.pptx
Navigant water cs report draft
1003081.pptx
Studies-DMU Management
Study.pdf
UMGHR final report -Aug 1
2016.pdf
Denton_Plan_2030.pdf
Purch Flowchart_Change
Orders.pdf
Purch Flowchart_Greater
$50K_CoOp_Revised2.pdf
Purch Flowchart_Greater
$50K_Revised2.pdf
Purch Flowchart_Greater
$50K_SS_Revised2.pdf
Purch Flowchart_OR to
PO_Greater Than $50K.PDF
Purch Flowchart_OR to PO_Under
$50K.PDF
14 Public Relations.pdf
2017 Citizen Update_Final2.pdf
2017-18 Utility Rate Brochure.pdf
Annual Report 1617_final.pdf
Citizen Connection APRIL 2017.pdf
Citizen Connection APRIL 2018.pdf
Citizen Connection AUG 2017.pdf
Citizen Connection AUG 2018.pdf
Citizen Connection DEC 2017.pdf
Citizen Connection FEB 2017.pdf
Citizen Connection FEB 2018.pdf
Citizen Connection JAN 2017.pdf
Citizen Connection JAN 2018.pdf
Citizen Connection JULY 2017.pdf
Citizen Connection JULY 2018.pdf
Citizen Connection JUNE 2017.pdf
Citizen Connection JUNE 2018.pdf
Citizen Connection MARCH
2017.pdf
Citizen Connection MARCH
2018.pdf
Citizen Connection NOV 2017.pdf
Citizen Connection SEPT 2017.pdf
Citizen Connection SEPT 2018.pdf
DWW 2014 poster.pdf
Dyno Decal.pdf
Dyno Dirt brochure_Rev0118.pdf
Dyno Dirt_2018 Campaign.docx
Energy Conservation Tips Flier.pdf
FW_ Management Study -Public
Relations.msg
FW_Management Study -Public
Relations.pdf
Grease Interceptor Maintenance
Brochure.pdf
Grit Traps Brochure.pdf
Grow Zone Sign_2018_print.pdf
Learn To Conserve Multi Family
Handout 0316.pdf
Learn To Conserve Multi Family
Handout_Spanish.pdf
Learn to Conserve Workshop
Sprinkler Use 0116 print.pdf
Learn to Conserve Workshop_DIY
Drip Irrigation_0416.pdf
Maintain Your Drain Can Lids.pdf
Maintain Your Drain_Truck
Wrap.pdf
Maintain Your Draun-Web Banner
160x600.pdf
Maintain Your Draun-Web Banner
300x250.pdf
Maintain Your Draun-Web Banner
728x90.pdf
Resident Update_April May
2018_final.pdf
Resident Update_Aug Sept
2018.pdf
Resident Update_Dec Jan
2018_Final.pdf
Resident Update_Feb March
2018_final.pdf
Resident Update_June July
18_final.pdf
Resident Update_Oct Nov
2017_Final.pdf
Reverse Litter Banner 2x4.pdf
Water Conservation_handout.pdf
Auto and Property claims EK.xlsx
Copy of Utilities -Workers Comp
claim summary 10-01-2014 to 09-
30-2015.xlsx
Copy of Utilities -Workers'
Compensation claim summary 10-
01-2015 to 09-30-2016.xlsx
Copy of Utilities Workers'
Compensation Claims 10-1-16_9-
30-17.xlsx
Copy of Denton requested
Benchmark data.xlsx nv.xlsx
16 FY17-18 Final Budget
Binder.pdf
B&A 2015 Denton Water Utilities
Cost of Service & Rate Design
Study Revised Report.pdf
Budget Process.xlsx
01 FY17-18 Final Budget
Binder.pdf
Wastewater dashboard,
020217.pdf
FY14-15 WW Mini Budget
Book.pdf
FY15-16 WW Mini Budget
Book.pdf
FY16-17 WW Mini Budget
Book.pdf
FY17-18 WW Mini Budget
Book.pdf
FY18-19 WW Mini Budget Book
09-21-18.pdf
Wastewater 5 Year Exp.Rev.xlsx
Wastewater 5 Year History CIP.xls
Wastewater 5 Year Rates.xlsx
Wastewater 5 Year ROI and
Franchise Fees.xlsx
Denton, city of_001 EPA
permit.pdf
Denton WWCS AMP
FY17_180205.pdf
Equipment Criticality List
(final).xlsm
Wastewater Collections
Performance Metrics.docx
WW Collections Risk Rating.pdf
WW Plant Critical Equipment.docx
WW Plant Process and Equipment
Criticality List (final).xlsx
MasterplanExisting.pdf
MasterplanLongTerm.pdf
MasterplanShortTerm.pdf
Denton SCADA MP Scope of
Work_FINAL.docx
2017 Award Notification Letter -
Ronald B Sieger Biosolids
Management.pdf
Award Notification Letter -Sidney
Allison -PS Arora.pdf
Award Notification Letter-Munc
WWTP of the Year-Cat 3.pdf
Award Notification Letter-Sidney
Allison-City of Denton Collection
System.pdf
PSArora Papers Presented.docx267
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Appendix B –Documents Reviewed
(cont’d)
258
Texas WET Article Denton
AMP.pdf
Texas WET Article PCWRP.docx
Texas Wet Issue 1.2018
Phosphorus Real Time Control.pdf
Wastewater Org Charts
20190312.pdf
Infrastructure Leakage Index
Comparison -Region C.PNG
Non Revenue Water Comparison -
NTX.PNG
5 Year Exp.Rev.xlsx
FY14-15 Water Mini Budget
Book.pdf
FY15-16 Water Mini Budget
Book.pdf
FY16-17 Water Mini Budget
Book.pdf
FY17-18 Water Mini Budget
Book.pdf
FY18-19 Water Mini Budget Book
09-21-18.pdf
Internal Service Payments -Debt
Service and Transfers.xlsx
Wastewater Org Charts.pdf
Water 5 Year Exp.Rev.xlsx
Water 5 Year History CIP.xls
Water 5 Year Rates.xlsx
Water 5 Year ROI and Franchise
Fees.xlsx
Water Org Charts.pdf
Water, Wastewater Accounts.xlsx
Denton Water Utilities Cost of
Service & Rate Design Study
Revised Report
6_3_2015_FINAL.pdf
Water Org Charts 20190312.pdf
Water.WW.Drainage.Bonds.xlsx
5 Year Break History.xlsx
Water Loss Audit.xlsx
Q6 Denton SCADA Master Plan-
FINAL.PDF
Tx Water Development Board-
2017 State Water Plan.pdf
Water GIS Assets List.xlsx
Water System Map.pdf
WM SOP METERING.doc
2017 Water Quality Report
Denton_final.pdf
2017 Water Quality Report
Denton_Spanish.pdf
0. Denton LLWTP -Backup
Disinfection Plan EOM_Final.pdf
0. Denton LLWTP -Biologically
Active GAC Filters OM_Final.pdf
0. Denton LLWTP -Chemical
Systems EOM_Final.pdf
0. Denton LLWTP -Filter Air Scour
and Backwash O&M_Final.pdf
0. Denton LLWTP -Low Lift Pump
Station O&M_Final.pdf
0. Denton LLWTP -Raw Water By
Pass EOM_Final.pdf
0. Denton LLWTP -Variable Speed
Flocculators EOM_Final.pdf
0. Denton LLWTP -Ozone System
O&M_Final.pdf
0. Sodium Hypochlorite and LAS
Feed and Storage Facilities
OM_Final.pdf
1 Introduction -revised.doc
2 Major Treatment Components
and Processes -Revised.doc
3 Chemical Feed Systems -
revised.doc
4 Laboratory Equipment and
Procedures -revised.doc
5 Maintenance -revised.doc
6 Spill and Emergency Response -
revised.doc
7 Operator Education and Training
-revised.doc
8 Records -revised.doc
FW_ Question about major claims
involving utilities.pdf
FW_ Question about major claims
involving utilities2.pdf
FW_ Retirement Info -Sensitive
Data.pdf
LRRWTP SOP.doc
OM TOC-revised.doc
Retirement Eligiblity 12-31-2017 -
for Utility study.xlsx
Exit Interviews for 80 Individuals
268
Appendix C –Follow-up Survey
269
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Scorecard – DME
260
Surveys of remaining original participants were conducted in October 2019 to assess how each area has
changed. Each area was evaluated from 1-5 with 1 being Worse, 3 as No Change and 5 Better.
Most scores were near 4 which ranked as Somewhat Better. The average relative change score for each is
shown below the original study light indicator.
Survey
Results
4.34.34.1 3.7 3.9 4.2
Starting
Scores
270
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Utilities Management Survey
–Electric
261
Surveys of remaining original participants were conducted in October 2019 to assess how each area
has changed. Each area was evaluated from 1-5 with 1 being Worse, 3 as No Change and 5 Better.
Most scores were near 4 which ranked as Somewhat Better.
0%10%20%30%40%50%60%70%80%90%100%
Communication
Finance
Infrastructure
People
Process
Strategy
Employee Morale
Community Perception
PUB Leadership
City Council Leadership
Worse Somewhat Worse Same Somewhat Better Better
271
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Scorecard –Water & Wastewater
with Updated Change Values
262
Surveys of remaining original participants were conducted in October 2019 to assess how each area has
changed. Each area was evaluated from 1-5 with 1 being Worse, 3 as No Change and 5 Better.
Most scores were near 4 which ranked as Somewhat Better. The average relative change score for each is
shown below the original study light indicator.
Starting
Scores
Survey
Results
4.1 3.7 4.14.04.23.8
272
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Utilities Management Survey
–Water & Wastewater
263
Surveys of remaining original participants were conducted in October 2019 to assess how each area
has changed. Each area was evaluated from 1-5 with 1 being Worse, 3 as No Change and 5 Better.
Most scores were near 4 which ranked as Somewhat Better.
0%10%20%30%40%50%60%70%80%90%100%
Communication
Finance
Infrastructure
People
Process
Strategy
Employee Morale
Community Perception
PUB Leadership
City Council Leadership
Worse Somewhat Worse Same Somewhat Better Better
273
NEWGEN STRATEGIES AND SOLUTIONS, LLC
Utilities Management Survey
–Shared Services
264
Surveys of remaining original participants were conducted in October 2019 to assess how each area
has changed. Each area was evaluated from 1-5 with 1 being Worse, 3 as No Change and 5 Better.
Most scores were near 4 which ranked as Somewhat Better.
0%10%20%30%40%50%60%70%80%90%100%
Changes
Communication
Finance
People
Process
Strategy
Employee Morale
Procurement Process
PUB Leadership
City Council Leadership
Worse Somewhat Worse Same Somewhat Better Better
274
Date: June 5, 2020 Report No. 2020-055
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
In late May, Council Member Briggs forwarded a request to city staff to host a community
meeting for the Denton University Park HOA. A number of residents inquired as to the
recent activities (flags, markings on the ground) around the vacant land next to the elevated
storage tank between Santos Drive and Riney Road.
DISCUSSION:
The Water Utilities Department began the preliminary design and site layout phase of a
Booster Pump Station project to be located on the southwest corner of the property. The flags and
markings on the site are for the survey work that is required for the preliminary design phase. The
tentative project schedule predicts construction to begin in September 2021, approximately 15
months from now. Detailed design of the architectural look of the building and required
architectural security features (fencing/wall) have not begun.
This facility is necessary to support the new Denton High School and development in the area by
providing additional water supply to the elevated storage tank (water tower) at Loop 288 and IH35.
This will improve the City’s water delivery and quality in that portion of our service area.
Site access will be from Riney Road, as it is currently. The only access to Santos Drive will be one
driveway required for emergency vehicles.
Staff is preparing a letter with additional information to be mailed to the HOA and residents in the
vicinity next week. In the Spring of 2021, staff will schedule a community meeting to receive
feedback and involve residents regarding input on the appearance of the facility during the detailed
design phase.
275
Date: June 5, 2020 Report No. 2020-055
Figure 1 – Aerial Photograph
Project
Limits
276
Date: June 5, 2020 Report No. 2020-055
Figure 2 – Preliminary Engineering Site Plan
277
Date: June 5, 2020 Report No. 2020-055
STAFF CONTACT:
Frank Pugsley
Director of Water Utilities
940-349-8086
REQUESTOR:
Council Member Briggs
PARTICIPATING DEPARTMENTS:
Water Utilities
STAFF TIME TO COMPLETE:
2 man-hours
278
Date: June 5, 2020 Report No.
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Provide a project status update regarding the Forestar/Rayzor and Drury Tract single-family
residential developments located at the northwest corner of Roselawn Drive and Roselawn Drive.
BACKGROUND:
Forestar Group, Inc. is under contract to purchase approximately 236.8 acres of land located at the
northwest corner of Roselawn Drive and Roselawn Drive for a proposed residential development
consisting of 770 single-family detached lots, open space, amenity center, parkland, park trails,
and connections to adjacent Borman Elementary and nearby Denia Park.
In August 14, 2019 Development Services received a preliminary plat application (Project No.
PP19-0019) from Forestar Group, Inc. for a 723-lot single-family subdivision. The preliminary
plat was approved by the Planning & Zoning Commission (P&Z) February 5, 2020. Subsequent
to this preliminary plat submittal, Forestar Group, Inc. conducted a pre-application meeting for an
adjacent property to the west of Forestar/Rayzor known as the Drury Tract (outlined in pink in the
Attachment) proposing an additional 64 single-family lots. An overall Traffic Impact Analysis
(TIA) for both developments (Project No. TIA20-0001) was submitted March 31, 2020 and an
Alternative Environmentally Sensitive Area (AESA) plan (Project No. AESA20-0003) are
currently under review by staff.
DISCUSSION:
The subject property is zoned Residential 4 (R4) which permits the proposed use of single-family
residential by right. The developer proposes 770 single-family detached lots, providing 70.4 acres
of open space within common area lots and preserved Environmentally Sensitive Area (ESA)
water-related habitat. An additional 15.1 acres of ESA designated upland habitat is proposed for
preservation as well.
No further applications have been received to-date although multiple meetings have been held
between the development team and various city staff including: Planning, Engineering, Water and
Wastewater Utilities, Parks, Water Administration/Watershed Protection, Traffic Engineering, and
Capital Projects.
The development will result in future roadway connections for Parvin Street and Highland Park
Road, and the reconstruction (elevation) of Roselawn Drive. Some tree removal will be required
for grading adjacent to but off-site from the Roselawn Elevated Water Storage Tank. All minimum
tree preservation requirements will be met by the overall development and some minor
encroachments into the designated ESA water-related habitats are anticipated for stormwater
outfall locations. These encroachments will be addressed through the submitted and consideration
by City Council of an AESA plan (Project No. AESA20-0003). Parks Department staff has
279
Date: June 5, 2020 Report No.
discussed possible parkland dedication to the city and trail connectivity to Borman Elementary and
ultimately nearby Denia Park.
The development’s next steps include preliminary plat approval for the Duruy Tract, and civil
engineering plan (CEP) and final plat approval for each phase. It is staff’s understanding that the
Parvin Street connection and reconstruction of Roselawn Drive adjacent to the project’s frontages
will occur with the first phase of this overall development.
CONCLUSION:
This ISR has been provided for informational purposes.
ATTACHMENTS:
Forestar/Rayzor – Drury Tract Concept Plan
STAFF CONTACT:
Richard Cannone, AICP
Director of Planning and Deputy Director of Development Services
(940) 349 – 8507
Richard.Cannone@cityofdenton.com
280
Date: June 5, 2020 Report No.
ATTACHMENT
281
EXHIBIT A
25' WATERLINE EASEMENT
DOC. NO. 2008-78560
O.R.D.C.T.
EXHIBIT B
VARIABLE WIDTH WATERLINE
EASEMENT
DOC. NO. 2008-78560
O.R.D.C.T.
20' SANITARY SEWER
EASEMENT
DOC. NO. 2007-128320
O.R.D.C.T.
10 SANITARY SEWER
EASEMENT
VOL. 504, PG. 456
D.R.D.C.T.
10 SANITARY SEWER
EASEMENT
VOL. 504, PG. 453
D.R.D.C.T.
PUBLIC DRAINAGE EASEMENT
DOC. NO. 2004-22992
O.R.D.C.T.
DRAINAGE EASEMENT
VOL. 2409, PG. 572
D.R.D.C.T.
DRAINAGE AREA
CAB. A, PG. 54
P.R.D.C.T.
DRAINAGE
EASEMENT
CAB. A, PG. 54
P.R.D.C.T.
DRAINAGE EASEMENT
DOC. NO. 1996-088904
O.R.D.C.T.
±300'
FROM
P
A
D
TAYLOR PARK
SUBDIVISION
CAB. A, PG. 54
P.R.D.C.T.
LOT 1, BLOCK A
ROSELAWN ELEVATED
STORAGE TANK ADDITION
CAB. Y, PG. 777
P.R.D.C.T.
BALTAZAR MESTA
DOC. NO. 2004-57002
O.R.D.C.T.
LOT 1,
SORRELLS-
MCBRIDE ACRES
CAB. X, PG. 749
P.R.D.C.T.
LOT 2,
SORRELLS-
MCBRIDE
ACRES
LOT 3,
SORRELLS-
MCBRIDE ACRES
ROSELAWN ACRES
ADDITION
CAB. U, PG. 126, P.R.D.C.T.
LOT 1 LOT 2
WILLOWWOOD WEST
CAB. B, PG. 13
P.R.D.C.T.
MARGARET A. YOUNG
DOC. NO. 2017-34293
O.R.D.C.T.THE BRADLEY FAMILY TRUST
DOC. NO. 1997-60633
O.R.D.C.T.
TAYLOR PARK CHURCH
OF THE NAZARENE
DOC. NO. 2005-35385
O.R.D.C.T.
DENTON INDEPENDENT
SCHOOL DISTRICT
VOL. 518, PG. 89
D.R.D.C.T.
CITY OF DENTON
VOL. 514, PG. 579
D.R.D.C.T.
MARC S.
CULP
DOC. NO.
2001-3928
O.R.D.C.T.
TED C. MEADOR
DOC. NO.
2001-5374
O.R.D.C.T.
TRACT I
PITNER FAMILY LIMITED
PARTNERSHIP
DOC. NO. 2013-70762
O.R.D.C.T.TONJIA KIM TAYLOR ROANDOC. NO. 2001-61729O.R.D.C.T.THOMAS A. GARBACIK
AND MARY JOANN
GARBACIK
VOL. 566, PG. 151
D.R.D.C.T.
LEE ANNE TODD
DOC. NO. 1994-1091
O.R.D.C.T.
VIRGIL DAN SMITH &
SHARON SMITH
DOC. NO. 1995-52411
O.R.D.C.T.
PART OF
SECTION 11. TRACT ONE
RAYZOR INVESTMENTS, LTD.
VOL. 1796, PG. 601
D.R.D.C.T.TRACT LINEWILLOWWOOD STREET
HIGHLAND PARK RD.HIGHLAND PARK RD.KENDOLPH DRIVEKENDOLPH DRMcCORMICK ST.DUDLEY ST.WESTWOOD DR.MERCEDES RD.JACQUELINE DR.LESLIE ST.PARVIN ST.
ROSELAWN DRIVE ROSELAWN DRIVELAUREL ST.WISTERIA ST.AZALEA ST.WILLOWCREST LOOP
WILLOWCREST LOOP
HIGHLAND PARK RD.HIGHLAND PARK RD.WISTERIA ST.McCORMICK ST.UPLAND HABITAT
(SURVEYED)
100-YR FLOODPLAIN
(STUDIED)
OBSERVED
STREAM BUFFER
WATER RELATED
HABITAT
ESA
FLOOD
PLAIN
FEMA ZONE AE
ROAD STUB-OUT
EXISTING
"Y" INLET
TREE PRESERVATION
AREA
EXISTING
HIGHLAND PARK
RENAME TO ALLEY
OPEN
SPACE
OPEN
SPACE
AMENITY
CENTER
EXTEND
ROAD AS
24' SECTION
OPEN
SPACE
UPLAND HABITAT
(SURVEYED)
100-YR FLOODPLAIN
(STUDIED)
OBSERVED
STREAM BUFFER
WATER RELATED
HABITAT
ESA
FLOOD
PLAIN
FEMA ZONE AE
ROAD STUB-OUT
EXISTING
"Y" INLET
TREE PRESERVATION
AREA
EXISTING
HIGHLAND PARK
RENAME TO ALLEY
OPEN
SPACE
OPEN
SPACE
AMENITY
CENTER
EXTEND
ROAD AS
24' SECTION
OPEN
SPACE
UPLAND HABITAT
(SURVEYED)
100-YR FLOODPLAIN
(STUDIED)
OBSERVED
STREAM BUFFER
WATER RELATED
HABITAT
ESA
FLOOD
PLAIN
FEMA ZONE AE
ROAD STUB-OUT
EXISTING
"Y" INLET
TREE PRESERVATION
AREA
EXISTING
HIGHLAND PARK
RENAME TO ALLEY
OPEN
SPACE
OPEN
SPACE
AMENITY
CENTER
EXTEND
ROAD AS
24' SECTION
OPEN
SPACE
UPLAND HABITAT
(SURVEYED)
100-YR FLOODPLAIN
(STUDIED)
OBSERVED
STREAM BUFFER
WATER RELATED
HABITAT
ESA
FLOOD
PLAIN
FEMA ZONE AE
ROAD STUB-OUT
EXISTING
"Y" INLET
TREE PRESERVATION
AREA
EXISTING
HIGHLAND PARK
RENAME TO ALLEY
OPEN
SPACE
OPEN
SPACE
AMENITY
CENTER
EXTEND
ROAD AS
24' SECTION
OPEN
SPACE
UPLAND HABITAT
(SURVEYED)
100-YR FLOODPLAIN
(STUDIED)
OBSERVED
STREAM BUFFER
WATER RELATED
HABITAT
ESA
FLOOD
PLAIN
FEMA ZONE AE
ROAD STUB-OUT
EXISTING
"Y" INLET
TREE PRESERVATION
AREA
EXISTING
HIGHLAND PARK
RENAME TO ALLEY
OPEN
SPACE
OPEN
SPACE
AMENITY
CENTER
EXTEND
ROAD AS
24' SECTION
OPEN
SPACE
Forestar
Denton, Texas
June 2020
DWG NAME K:\DAL_CIVIL\069313607-FORESTAR RAYZOR\CAD\EXHIBITS\PLANSHEETS\CONCEPT PLAN-20200601.DWG
LAST SAVED 6/2/2020 7:46 AM
NOTE: THIS PLAN IS CONCEPTUAL IN NATURE AND HAS BEEN PRODUCED WITHOUT THE
BENEFIT OF A SURVEY OR CONTACT WITH THE CITY, COUNTY, ETC.
CONCEPT PLAN
Land Use Acreage Summary
Open Space (Including ESA Areas)70.4
Residential Lots /Residential Rights of Way 166.4
Total 236.8
Open Space Acreage Summary
Open Space 70.4
Total Percent Open Space 29.7%
Lot Type Summary
52' x 115' (Rayzor)706
Total 770
Density Summary (Units per Acre)
Gross (Rayzor)3.3
Tree Preservation Area (ESA - Preserved Upland Habitat)15.1
55' x 130' (Drury)64
Gross (Drury)2.8
HIGHLAND PARK RDPARVIN STREET
HIGHLAND PARK RD.GRAPHIC SCALE IN FEET
0 100 200 400
1"=200'@ 24x36
13455 Noel Rd., Two Galleria Office Tower
Suite 700
Dallas, Texas 75240
972-770-1300
State of Texas Registration No. F-928
282
Date: June 5, 2020 Report No. 2020-057
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
2019 Water Loss Audit
EXECUTIVE SUMMARY:
Water Utilities staff completes a water loss audit annually in accordance with Texas Water
Development Board (TWDB) regulations and industry best practices. This year’s audit
identified water losses similar to recent years and identified opportunities to improve these
metrics in the future.
BACKGROUND:
TWDB requires the completion of water loss audits annually by all water utilities serving more
than 3,300 customers. Beyond State requirements, a water loss audit program presents
opportunities for better resource conservation and improved fiscal responsibility. For many
years, staff has executed water loss audits to standards over and above TWDB minimum
requirements in pursuit of a healthier water utility. Water loss audit standards within the industry
have continued to evolve, which provides ongoing opportunities for the improvement of
individual audits and has led TWDB to refine their water loss audit framework.
DISCUSSION:
As a primary function, Denton’s water loss audit separates water use into three categories: (1)
authorized consumption, (2) apparent loss, and (3) real loss.
(1) Authorized consumption consists of all water that has been authorized for use by the utility
and its customers. Authorized consumption includes, but is not limited to, water used for
residential and commercial uses, firefighting, municipal landscape watering, pipe flushing, city
offices, and water treatment facility use. Authorized consumption is all the water the utility gave
permission to a business, individual, or itself to use. Staff previously identified an opportunity to
improve water volume estimations for new pipe flushing and is implementing new methods
accordingly.
(2) Apparent loss represents water that was not accurately measured and/or not recorded at a
customer meter and therefore not billed due to meter inaccuracy, theft, and billing waivers. This
category represents a loss in revenue, and since customer meters hold customers accountable for
their water use, it also represents a detriment to water conservation efforts. The water meter
maintenance and replacement program works to offset this loss and maintain reasonable
accuracy in customer meters.
283
Date: June 5, 2020 Report No. 2020-057
(3) Real loss represents water that left the water distribution system without serving a purpose.
This is largely a result of leakage. Staff estimates water lost through known main breaks and
leaks, and the remaining unaccounted-for volume is assumed to be undiscovered leakage. The
city implemented programs to repair known leaks and search for undiscovered leaks. To the
extent that this program is financially offset by the value of water saved, staff can continue to
reduce real loss through leak detection and repair. The waterline replacement program in Water
Distribution also plays a large part in this figure, as they aim to replace the pipes which are most
likely to break. Staff identified an opportunity to improve water volume estimations on known
water main leaks and breaks and is implementing new steps accordingly.
In a benchmarking study of real and apparent loss, Denton sits near the middle of Region C
utilities in both per connection and per capita measurements as shown below.
284
Date: June 5, 2020 Report No. 2020-057
The water loss audit framework also includes calculation of the Infrastructure Leakage Index
(ILI), which is a measure of real loss adjusted for the size of each utility. This metric is useful
for benchmarking due to its size considerations. ILI compares real loss to a theoretical
unavoidable leakage unique to each utility based on their size. A value of 1 would suggest a
utility has avoided all possible leakage. There is no upper limit to this metric. Denton’s ILI in
2019 was 2.13, which places us in the top 40% of Region C utilities as shown below.
285
Date: June 5, 2020 Report No. 2020-057
In the 2019 Water Loss Audit, staff verified existing concerns with the accuracy of large water
meters at Denton’s water production plants. Such accuracy errors have inflated the total amount
of water produced, causing losses to appear to rise over time. Out of the four affected meters,
two have been replaced, and one of the remaining two will be replaced in 2020. Staff is
implementing steps to validate the accuracy of these meters and improve water accounting
within the water production plants. Improved accuracy of these meters will likely result in
reduced estimations of water loss in future audits.
CONCLUSION:
Denton has continued to maintain a competitive water loss management program and has
implemented new steps to continue to improve the program.
ATTACHMENT(S):
Water Audit Presentation 2019.pdf (pptx as pdf)
STAFF CONTACT:
Tyler Dawson, Manager of Asset Management
940-349-8944
Tyler.Dawson@CityofDenton.com
286
Water Loss Audit
2019
JUNE 8, 2020
1PUB20-103
287
Water Loss Audit
Authorized Consumption
+ Apparent Losses
+ Real Losses
Total Water Supplied
2PUB20-103
288
Water
Produced
Water Exported
Water
Supplied
Authorized
Consumption
Fire Protection
Unbilled
Water Loss
Apparent Loss Unauthorized Consumption
Real Loss
Systematic Data Error
System Operations
The Water Audit Tree –Categorizing Water Use
3
Main Breaks
Unaccounted
Billed
Residential
Commercial
Meter Inaccuracy
PUB20-103
289
Real Loss
Real loss is water lost through distribution system leakage and
excessive pressure
•Main breaks and leaks
•Undiscovered leakage
•Background leakage
•Other unidentified losses
4PUB20-103
290
Effects of Real Loss
Real losses are indicators of system health
◦These losses should be minimized within economic reason
◦Real losses are priced at the marginal cost of water acquisition and treatment
Denton FY 2019: 607.20 MG/ 9.40%
5PUB20-103
291
Apparent Loss
Apparent loss is water that was not read accurately by a meter
•Water meter inaccuracy
•Unauthorized consumption
•Systematic data errors
6PUB20-103
292
Effects of Apparent Loss
Apparent losses are indicators of fiscal health
◦Inaccurate meters and theft reduce revenue
◦Apparent losses are priced at the retail volume cost of water
Denton FY 2019: 197.42 MG/ 3.09%
7PUB20-103
293
Unbilled Authorized
Fire Protection is provided as an unbilled service
◦Fire sprinkler systems
◦Fire engine use
System operation often requires flushing water mains
◦Cleaning new pipes after installation
◦Removing old water from low flow pipes
◦Flow rate testing and water quality sampling
8PUB20-103
294
Water
Produced
6,476
Water Exported 76
Water
Supplied
6,398
Authorized
Consumption
5,593
Fire Protection 1Unbilled
78
Water Loss
805
Apparent Loss 197 Unauthorized Consumption 16
Real Loss 607
Systematic Data Error 5
System Operations 77
The Water Audit Tree –Categorizing Water Use
9
Main Breaks 40
Unaccounted 567
Billed
5,515
Residential
2,628
Commercial
2,887
Meter Inaccuracy 176
volumes in MG
PUB20-103
295
Cost of Water Loss
Real Loss -$209,487 / 607.20 MG
◦Real loss is priced at the variable cost of treating 1,000 gallons of water: $0.35
◦Cost of real loss will increase in the future when Denton acquires additions to
the water supply
Apparent loss -$947,621 / 197.42 MG
◦Apparent loss is priced at the average retail cost of 1,000 gallons of water: $4.80
◦This amount is offset by our proactive meter replacement and calibration
program
10PUB20-103
296
Benchmarking Data Points
Real Loss
◦System Health
Apparent Loss
◦Fiscal health
Infrastructure Leakage Index (ILI)
◦Comparison to theoretical minimum leakage
11PUB20-103
297
Benchmarking Considerations
System Size
◦Growth
◦Water Quality / topology
Infrastructure Age
Audit Validation
12PUB20-103
298
13
0
20
40
60
80
100
120
140
Gallons Per Connection Per DayReal and Apparent Loss per Connection Across Region C
Real Loss Apparent Loss
PUB20-103
299
14
0
5
10
15
20
25
30
35
40
45
Gallons Per Capita Per Day (GPCD)Total Loss per Capita Across Region C
PUB20-103
300
Infrastructure Leakage Index (ILI)
Calculated as total real losses over theoretical minimum leakage
An indicator of a utility’s effectiveness in managing leaks
Theoretical minimum of 1
◦Denton FY 2019: = 2.13
15PUB20-103
301
16
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
AWWA Infrastructure Leakage Index (ILI) Across Region C
Infrastructure Leakage Index -Technical Performance Indicator
1.0 –3.0 3.0 –5.0 5.0 –8.0 > 8
PUB20-103
302
17PUB20-103
303
Implementation Steps
✓Continue meter replacement program
✓Continue leak detection program with improved technology
✓Continue use of improved main break water loss estimates
o Improve volume estimates for new line flushing
o Create and implement Mass Balance Worksheet for plants
18PUB20-103
304
Questions / Comments
Water Utilities
19PUB20-103
305
Council Requests for InformationCouncil Member Requestor DateSummary of RequestStaff AssignedDepartmentComments1Council Member Briggs02/03/20Would like to request council discuss a citywide public health study.http://www.austintexas.gov/sites/default/files/files/Health/Info_to_Post/HealthReport-linked.pdf Like thisBalthrop MendozaCity Manager's OfficeRequest will be presented during a future PendingRequest work session2Council Member Briggs05/17/20Can staff look at a light to brighten the traffic circle on HinkleEstesCapital ProjectsInformation will be provided in June 5 Friday Report3Council Member Davis05/19/20Disconnected fragments of streets that share the same name (i.e.Westgate, Riney, etc.) cause considerable confusion. I'd like to make avery surface level catalog of these streets and see if there aren't someeasy fixes we could make. For example, the East-West part of Westgateis an easy switch, while East Oak is not.Estes/McDonaldCapital Projects/DevelopmentServicesInformation will be provided in a future Friday Report4Council Member Briggs05/24/20Request for speed study, permanent reducing speed ideas on Hercules.Maybe a flashing digital sign to show speed? Is there a way we could putthis on PD enforcement list rotation for awhile?JahnCapital ProjectsInformation will be provided in a future Friday Report5Council Member Briggs05/26/20I would like to set up a staff meeting with the University Parkneighborhood. They are curious about what we are doing and havesome suggestions, comments.CoxPublic WorksInformation will be provided in the June 5 Friday Report6Council Member Briggs05/26/20Can staff check on the asphalt/road at Orr St. and North Locust?Constituent says it has sunk.EstesCapital ProjectsInformation will be provided in the June 5 Friday Report7Council Member Briggs05/27/20Can staff assess Atlas Dr. and update on any construction efforts?Resident says that construction began 2 years ago by utilities, and nowroad is in bad shapeEstesCapital ProjectsInformation will be provided in the June 5 Friday Report8Council Member Briggs05/29/20Would Solid Waste be able to upcycle five gallon buckets?BoernerSolid Waste and RecyclingInformation will be provided in the June 5 Friday Report9Council Member Briggs06/01/20Can someone check on who mowed the wildflower patch on privateproperty at 915 E Sherman Dr.?PackanParks and RecreationInformation will be provided in the June 5 Friday Report10Mayor Pro Tem Hudspeth06/02/20Can staff check on the signal timing at the corner of US77 and LocustJahnCapital ProjectsInformation will be provided in the June 5 Friday Report11Mayor Pro Tem Hudspeth06/02/20Have we contacted the property owner to address the fence downtown?Please let me know the plan.McDonaldDevelopment ServicesInformation will be provided in the June 5 Friday Report12Council Member Briggs06/03/20In the light of recent events and calls from the community , I would likeask for a Work session on police review/oversight boardDixonPoliceRequest will be presented during a future PendingRequest work session13Council Member Davis06/03/20I would like to see a summary of the improvements Chief Dixon (andChief Howell before him) have made in community relations and officertraining that are helping prevent police violence in Denton. This could bean ISR. But I would also like to see a work session where the Chief couldrespond to some of the things BLM and the protesters are asking for. Forexample, a police oversight board, a more granulated use of forcecontinuum, disallowing certain types of holds, etc. The average citizendoesn’t know a lot about these kinds of things, and hearing the Chief’sperspective could be very helpful.DixonPoliceInformation will be provided in a future Friday Report14Council Member Meltzer06/03/20When the smoke clears, I would like to see an informal staff report on theviability and desirability of the items in the attached agenda from theNAACP, excluding the item requiring State action, although an opinionon that would be welcome as well.DixonPoliceInformation will be provided in a future Friday Report15Council Member Meltzer06/04/20Can staff provide an evaluation of feasibility and desirability of the 10recommendations provided?DixonPoliceInformation will be provided in a future Friday Report16Council Member Briggs06/05/20There have been many task forces and groups convened by city over theyears where poc were asked to serve to address race and racial injustice(Ex. Diversifying the fire dept) can city research and create list of thesegroups and identify reports/recommendations?Information will be provided in a future Friday Report306
June 2020 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 Cancelled - 11:30 am Council Luncheon Cancelled -COE 1:30 Cancelled -Traffic Safety Commission 5:30 pm 2 1:00 pm CC Work Session 6:30 pm CC Regular Session 3 Cancelled - 2:30pm Agenda Committee 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 4 Cancelled - 8:30 DEDC 1:00 Public Art Committee 567 8 PUB 9am HLC 3:00pm 9 1:00 pm 2nd Tuesday Session Cancelled - Mobility Committee Meeting 9:00 am 10 Cancelled - 2:30pm Agenda Committee 11 HOT & S Committee 10am 121314 15 16 2:00 pm CC Work Session 6:30 pm CC Regular Session 17 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 18 HOT & S 9:00 TBD 6:00pm Committee on Persons with Disabilities HABSCO 4pm 192021 22 PUB 9am 23 10am Council Airport Committee 2:00 pm 4th Tuesday Session 2425 HOT & S 9:00 TBD 5:30PM Board of Ethics 262728 29 ZBA 5:30pm 30 No Council Meeting 307
July 2020 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 12 8:30 DEDC 4:00 Public Art Committee 3 4th of July Holiday 45 6 No Luncheon Meeting COE 1:30 Traffic Safety Commission 5:30 pm 7 No Council Meeting 8 11:00 EDPB 2:30pm Agenda Committee 5:00pm P&Z Work Session 5:30 Airport Advisory Board 6:30pm P&Z Regular Session 9 101112 13 PUB 9am 14 No Council Meeting Mobility Committee Meeting 9:00 am 15 2:30pm Agenda Committee 16 HOT & S 9-11 6:00pm Committee on Persons with Disabilities HABSCO 4pm 171819 20 21 2:00 pm CC Work Session 6:30 pm CC Regular Session 22 12:00 TIF Board (TIRZ) 2:30pm Agenda Committee 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 23 242526 27 PUB 9am ZBA 5:30pm 28 10am Council Airport Committee 2:00 pm 4th Tuesday Session 29 2:30pm Agenda Committee 30 5:30PM Board of Ethics 31 308
August 2020 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 12 3 11:30 am Council Luncheon COE 1:30 Traffic Safety Commission 5:30 pm 4 2:00 pm CC Work Session 6:30 pm CC Regular Session 5 2:30pm Agenda Committee 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 6 8:30 am Council Budget Workshop 8:30 DEDC 4:00 Public Art Committee 789 10 PUB 9am 11 2:00 pm 2nd Tuesday Session Mobility Committee Meeting 9:00 am 12 11:00 EDPB 2:30pm Agenda Committee 5:30 Airport Advisory Board 13 141516 17 18 2:00 pm CC Work Session 6:30 pm CC Regular Session 19 2:30pm Agenda Committee 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 20 6:00pm Committee on Persons with Disabilities HABSCO 4pm 212223 24 PUB 9am 25 10am Council Airport Committee 2:00 pm 4th Tuesday Session 2627 5:30PM Board of Ethics 282930 31 ZBA 5:30pm 309
City Council
City of Denton
Meeting Agenda
City Hall
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Council Work Session Room2:00 PMTuesday, June 16, 2020
WORK SESSION BEGINS AT 2:00 P.M. IN THE WORK SESSION ROOM
REGULAR MEETING BEGINS AT 6:30 P.M. IN THE COUNCIL WORK SESSION ROOM
Note: Mayor Chris Watts, Mayor Pro Tem Gerard Hudspeth, and Council Members Keely Briggs, Jesse
Davis, John Ryan, Deb Armintor and Paul Meltzer will be participating in the work session, closed meeting,
and regular meeting via video/teleconference.
REGISTRATION GUIDELINES FOR ADDRESSING THE CITY COUNCIL
Due to COVID-19 precautions, members of the public will not be able to attend the June 16, 2020 City
Council meeting in-person. To accommodate and receive input on agenda items, citizens will be able to
participate in one of the following ways (NOTE: Other than public hearings, citizens are only able to
comment one time per agenda item; citizens cannot use both methods to comment on a single agenda item.
Public comments are not held for work session reports.):
• Virtual White Card – On June 12, the agenda was posted online at
www.cityofdenton.com/publicmeetings. Once the agenda is posted, a link to the Virtual White Card, an
online form, will be made available under the main heading on the webpage. Within this form, citizens may
indicate support or opposition and submit a brief comment about a specific agenda item. Comments may
be submitted up until the start of the meeting, at which time, the Virtual White Card form will be closed.
Similar to when a citizen submits a white card to indicate their position on the item, these comment forms
will be sent directly to City Council members and recorded by the City Secretary.
City Council Members review comments received in advance of the meeting and take that public input into
consideration prior to voting on an agenda item. The Mayor will announce the number of Comment Cards
submitted in support or opposition to an item during the public comment period. Comments will not be
read during the meeting. The City Secretary will reflect the number of comments submitted in
favor/opposition to an item, the registrant’s name, address, and (summary of) comments within the Minutes
of the Meeting, as applicable.
OR
• By phone – Citizens wishing to speak over the phone during this Council meeting, may call (940)
349-7800 beginning 30 minutes prior to the meeting start time. Comments by phone will be accepted until
the item is opened for discussion by the Council. When the call is initially received, a staff member will
receive the caller’s information and either: 1) offer to call the citizen back when it is time for them to speak,
or 2) record the caller’s information, support or opposition, and comment. If the caller chooses to record
their support or opposition, rather than speaking during the meeting, the Mayor will announce the number
of comments submitted in support or opposition to the item. If the caller wishes to receive a call back, the
voice of each caller will be broadcast into the meeting during the public commenting time of their desired
agenda item. Individuals will be able to comment once per agenda item, no matter the method.
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• At regular meetings only, citizens can speak on any topic that is not on the agenda (Open Microphone).
Alert the call taker if you wish to speak under the Open Microphone category. If you would like to give a
public report, see the information below.
After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a
Work Session on Tuesday, June 16, 2020, 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:
WORK SESSION
1. Citizen Comments on Consent Agenda Items
This section of the agenda allows citizens to speak on any item listed on the Consent Agenda prior to its
consideration. Each speaker will be given a total of three (3) minutes to address any item(s). Any person
who wishes to address the City Council regarding these items may do so by utilizing the "By Phone"
registration process as referenced under the REGISTRATION GUIDELINES FOR ADDRESSING THE
CITY COUNCIL detailed at the beginning of this agenda. Registration is required prior to the time the City
Council considers this item. Registrants may call in and remain on hold or receive a call back at the time the
Work Session is called to Order and are encouraged to ensure they remain accessible to accept the call.
2. Requests for clarification of agenda items listed on this agenda.
3. Work Session Reports
Receive a report, hold a discussion, and give staff direction on the Green Tree Estates.ID 20-965A.
Receive a report, hold a discussion, and give staff direction regarding an update to the
City of Denton’s COVID-19 response.
ID 20-945B.
Receive a report, hold a discussion, and give staff direction regarding the proposed
prioritization and implementation of the City’s Capital Improvement Projects.
ID 20-888C.
Receive a report and hold a discussion regarding plugged gas well issues, including risks
and public protections from plugged wells, current inspection practices, setback distances
in Denton and other area cities, and zoning incentives such as density bonuses that could
encourage plugging wells in areas of new development.
ID 20-1067D.
Receive a report, hold a discussion, and give staff direction on pending City Council
requests for information.
ID 20-673E.
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:
-- PLACEHOLDER IN THE EVENT A CLOSED MEETING IS NEEDED; OTHERWISE, WILL BE
DELETED. --
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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
decision, or vote is taken in the Closed Meeting in accordance with the provisions of Section 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 Texas Government Code, Section 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 Sections 551.071-551.086 of the Texas Open Meetings Act.
NOTE: Any item for which a formal action at the Regular Meeting has been taken by Council may
be subject to a request for a motion for reconsideration at any time during the meeting, at the
Concluding Items Section, or after the meeting. In order to comply with the Texas Open Meetings
Act, a request for a motion for reconsideration made during, at the end of, or after a Council meeting
will be placed on the agenda and considered at the next official meeting of the City Council.
_________________________________________________________________________________
REGULAR MEETING OF THE CITY OF DENTON CITY COUNCIL AT 6:30 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. PLEDGE OF ALLEGIANCE
A. U.S. Flag
B. Texas Flag
“Honor the Texas Flag – I pledge allegiance to thee, Texas, one state under God, one and indivisible.”
2. PROCLAMATIONS/PRESENTATIONS
3. PRESENTATION FROM MEMBERS OF THE PUBLIC
A. Review of procedures for addressing the City Council.
B. Reports from members of the public shall be received through the following two (2) methods. A total
of up to seven (7) speakers are permitted to provide public comment and may include any combination of
prior registration and open microphone speakers.
1) Pre-registration. 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. Each speaker is 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.
2) Open Microphone. This section of the agenda permits any person who has not registered in
advance for a citizen report to make comments about public business items not listed on the agenda. Such
person(s) shall have registered using the “Virtual White Card” or “By Phone” process outlined by the City
on its website or meeting notice.
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During open microphone reports under this section of the agenda, the Council may listen to citizens speak.
However, because notice of the subject of the open microphone report has not been provided to the public
in advance, the Texas Open Meetings Act limits any deliberation or decision by the Council to: a proposal
to place the item on a future agenda; a statement of factual information; or a recitation of existing policy.
Council Members may not ask the open microphone speakers questions or discuss the items presented
during open microphone reports.
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 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 – N). 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, the Consent
Agenda Items 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.
Consider approval of a resolution of the City of Denton supporting the Michaels
Development Company I, LP’s 4% housing tax credit application to the Texas
Department of Housing and Community Affairs for proposed new construction of Mayhill
Road Apartments in Denton to provide affordable rental housing; and providing an
effective date.
ID 20-866A.
Consider adoption of an ordinance of the City of Denton authorizing a memorandum of
understanding between the City of Denton, Texas, the Emily Fowler Library Foundation,
and the Rotary Club of Denton, Texas #1779, for improvements to Quakertown Park;
accepting donations of $40,000 from the Rotary Club of Denton and its members via the
Emily Fowler Library Foundation and $15,000 from the Emily Fowler Library Foundation
for improvements to the Quakertown Park; approving a plan for improvement of
Quakertown Park and authorizing expenditures in furtherance of the plan; providing for an
effective date.
ID 20-974B.
Consider approval of the minutes of June 2, 2020 (Regular and Emergency).ID 20-1037C.
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal
corporation, authorizing the City Manager to execute a contract with FCx Performance
Inc. dba Instrumentation Services, for predictive maintenance testing services for the
Water Reclamation Department’s treatment plant and lift stations; providing for the
expenditure of funds therefor; and providing an effective date (RFP 7300 - awarded to
FCx Performance Inc. dba Instrumentation Services, for three (3) years, with the option
for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed
amount of $118,200). The Public Utilities Board recommends approval ( - ).
ID 20-1058D.
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Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal
corporation, authorizing the City Manager, or his designee, to execute a contract with
Holt Caterpillar Inc. through the Sourcewell Cooperative Purchasing Contract Number
032119, for the acquisition of one (1) New Caterpillar model D6XE Track Type Dozer
for the Solid Waste/Landfill Department; authorizing the expenditure of funds therefor;
and declaring an effective date (File 7376 - awarded to Holt Caterpillar Inc., in the
not-to-exceed amount of $469,401.38). The Public Utilities Board recommends approval
( - ).
ID 20-1059E.
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal
corporation, authorizing the City Manager to execute a contract with JDK Associates,
Inc., for the installation of a gravity retaining wall in the Brinker Substation; providing for
the expenditure of funds therefor; and providing an effective date (RFP 7316 - awarded
to JDK Associates, Inc., in the not-to-exceed amount of $755,296.68). The Public
Utilities Board recommends approval ( - ).
ID 20-1061F.
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal
corporation, authorizing the City Manager, or his designee, to execute a contract with
Tymco Inc., through the Houston-Galveston Area Council of Governments (H-GAC)
Cooperative Purchasing Program Contract Number SW04-20, for the acquisition of one
(1) Tymco model 600 Regenerative Air Sweeper for the Drainage Department;
authorizing the expenditure of funds therefor; and declaring an effective date (File 7294 -
awarded to Tymco Inc. in the not-to-exceed amount of $239,185). The Public Utilities
Board recommends approval ( - ).
ID 20-1062G.
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal
corporation, authorizing the City Manager, or his designee, to execute a contract with
Rush Truck Centers of Texas LP through the BuyBoard Cooperative Purchasing
Network Contract number 601-19, for the acquisition of one (1) 2020 Peterbilt model
348 truck chassis with hoist and two (2) emergency generators for the Water Reclamation
Department; authorizing the expenditure of funds therefor; and declaring an effective date
(File 7367 - awarded to Rush Truck Centers of Texas LP, in the not to exceed amount of
$634,703.94). The Public Utilities Board recommends approval ( - ).
ID 20-1063H.
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal
corporation, authorizing the City Manager to execute a contract with Centricity GIS, for
the continuation of the services for utility line locates for the Water Distribution
Department, Wastewater Collections, Water Metering, and Denton Municipal Electric
Department provided by Texas 811, which is the sole provider of these commodities and
services, in accordance with Texas Local Government Code 252.022, which provides
that procurement of commodities and services that are available from one source are
exempt from competitive bidding, and if over $50,000 shall be awarded by the governing
body; and providing an effective date (File 7336 - awarded to Centricity GIS, in the five
(5) year not-to-exceed amount of $300,000). The Public Utilities Board recommends
approval ( - ).
ID 20-1064I.
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal ID 20-1065J.
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June 16, 2020City Council Meeting Agenda
corporation, authorizing the City Manager to execute a Professional Services Agreement
with Teague Nall and Perkins, Inc., for consulting services and to develop a master plan
for Southwest Park for City of Denton as set forth in the contract; providing for the
expenditure of funds therefor; and providing an effective date (RFQ 7170 - Professional
Services Agreement for consulting services awarded to Teague Nall and Perkins, Inc., in
the not-to-exceed amount of $198,800).
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal
corporation, authorizing the City Manager to execute a contract with DFW Printing
Services, LLC, for printing services for resident updates and construction guide printing
and mailing for the City of Denton; providing for the expenditure of funds therefor; and
providing an effective date (RFP 7317 - awarded to DFW Printing Services, LLC, for
three (3) years, with the option for two (2) additional one (1) year extensions, in the total
five (5) year not-to-exceed amount of $325,000).
ID 20-1066K.
Consider adoption of an ordinance of the City of Denton, approving an agreement with
the Denton Independent School District and the City of Denton, Texas to work
collaboratively to enable students in DISD to have greater access to Denton Public
Library resources through a DISD Student Account at the Denton Public Library;
authorizing the City Manager or his designee to execute the Agreement; and providing an
effective date.
ID 20-1068L.
Consider approval of a resolution of the City of Denton adopting an integrated pest
management plan as policy for City-owned property; and declaring an effective date.
ID 20-1105M.
5. ITEMS FOR INDIVIDUAL CONSIDERATION
Consider adoption of an ordinance directing the publication of Notice of Intention to issue
$27,250,000 in principal amount of Certificates of Obligation of the City of Denton for
General Government projects; and providing for an effective date.
ID 20-916A.
Consider adoption of an ordinance directing the publication of Notice of Intention to issue
$37,120,000 in principal amount of Certificates of Obligation of the City of Denton for
Electric, and Wastewater System projects; and providing for an effective date.
ID 20-917B.
6. PUBLIC HEARINGS
Hold a public hearing inviting citizens to comment on the 2020-2022 Consolidate Plan for
Housing and Community Development and 2020 Action Plan.
ID 20-994A.
Hold a public hearing and consider adoption of an ordinance of the City of Denton,
Texas, regarding an initial zoning of Planned Development (PD) District on approximately
131.94 acres and for a change from Residential 6 (R-6) to a PD District on
approximately 14.19 acres, for a total of approximately 146.14 acres of land generally
located south of Allred Road and west of South Bonnie Brae Street and Fort Worth
Drive in the City of Denton, Denton County, Texas; adopting an amendment to the City’s
official zoning map; providing for a penalty in the maximum amount of $2,000.00 for
violations thereof; providing a severability clause and an effective date. (PD20-0001c,
Sagebrook, Hayley Zagurski). STAFF IS REQUESTING THAT THIS ITEM BE
PD20-0001cB.
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June 16, 2020City Council Meeting Agenda
POSTPONED TO A DATE CERTAIN OF JULY 21, 2020.
Hold a public hearing and consider adoption of an ordinance of the city of Denton
regarding a change in the zoning district and use classification of 10.49-acres from
Planned Development-MR (PD-MR) zoning district and use classification and
1.523-acres from Mixed Use Neighborhood (MN) zoning district and use classification to
a Planned Development (PD) zoning district on approximately 12.02-acres of land
generally located on the southwest side of the intersection of the southbound I-35E
service road and Buc-ee’s Boulevard, in the City of Denton, Denton County, Texas;
adopting an amendment to the city’s official zoning map; providing for a penalty in the
maximum amount of $2,000.00 for violations thereof; providing a severability clause and
an effective date. The Planning and Zoning Commission recommended approval (6-1)
(PD19-0005, Buc-ee’s Outparcels, Cindy Jackson)
PD19-0005dC.
Hold a public hearing and consider adoption of an ordinance of the City of Denton,
Texas, regarding a Comprehensive Plan Amendment from Business Innovation Future
Land Use designation to Regional Mixed Use Future Land use designation. The site
includes 3 tracts for a total of approximately 98 acres: Tract 1 includes one acre generally
located at the northwest intersection of South Loop 288 and Shady Oaks Drive; Tract 2
includes 72.76 acres located at the southwest corner of South Loop 288 and Shady
Oaks drive; Tract 3 includes 24.14 acres located on the south side of Shady Oaks Drive,
approximately 1900 feet west of South Loop 288, in the City of Denton, Denton County,
Texas; adopting an amendment to the City’s Comprehensive Plan; providing for a penalty
in the maximum amount of $2,000.00 for violations thereof; providing a severability clause
and an effective date The Planning and Zoning Commission voted (6-1) to approve the
request. (CA19-0001b, Canopy Trails, Julie Wyatt).
CA19-0001bD.
Hold a public hearing and consider adoption of an ordinance of the City of Denton,
Texas, regarding a change in the zoning district and use classification on approximately 98
acres from Light Industrial (LI) and General Office (GO) to Mixed-Use Regional (MR).
The site includes 3 tracts: Tract 1 includes one acre generally located at the northwest
intersection of South Loop 288 and Shady Oaks Drive; Tract 2 includes 72.76 acres
located at the southwest corner of South Loop 288 and Shady Oaks drive; Tract 3
includes 24.14 acres located on the south side of Shady Oaks Drive, approximately 1900
feet west of South Loop 288, in the City of Denton, Denton County, Texas; adopting an
amendment to the City’s official zoning map; providing for a penalty in the maximum
amount of $2,000.00 for violations thereof; providing a severability clause and an effective
date The Planning and Zoning Commission voted (6-1) to approve the request.
(Z20-0002b, Canopy Trails, Julie Wyatt).
Z20-0002bE.
7. CONCLUDING ITEMS
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June 16, 2020City 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 12th day of June, 2020 at ___________________
__________________________________________
CITY SECRETARY
NOTE: THE CITY OF DENTON'S DESIGNATED PUBLIC MEETING FACILITIES ARE
ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY
WILL PROVIDE ACCOMMODATION, SUCH AS SIGN LANGUAGE INTERPRETERS FOR THE
HEARING IMPAIRED, IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE
SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 940-349-8309 OR
USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX
SO THAT REASONABLE ACCOMMODATION CAN BE ARRANGED.
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317
Meeting Date
6/9/2020
Start @ 1 p.m.
COVID-19 Update
20-944
EV Charger Upgrade
20-732
Sustainable Denton Plan
20-521
Urban Forset Master
Plan
20-426
Protest and
Demonstration Update
20-111__
16-Jun
COVID-19 Update
20-945
Green Tree Estates
20-965
Business Utilization of
Parking Spaces /ROW to
Extend Outdoor Seatin
20-1102
Gas Wells
20-1067
CIP Update
20-888
Council Requests
20-673
23-Jun
Eagle Substation
(+ Closed Meeting)
Solar Rebate Program
20-996
Audit - Water Loss
20-1009
Audit - Grants
Management
20-1078
Audit - Customer Service
20-1079
Denton Development
Code Amendments
20-1024
Council Requests
20-674
Special -
Budget Workshop
@ 1 p.m.
6/30/2020
FYs 19-20 and 20-21
Budget Updates
20-806
6, 7 & 14-Jul 19-2914
21-Jul
COVID-19 Update
20-1046
Green Tree Estates
20-966
Drop-Off Recycling
Centers
20-768
Denton Development
Code Amendments
Council Requests July 21
20-847
28-Jul
COVID-19 Update
20-1047
Green Tree Estates
20-967
Council Requests July 28
20-848
23-Jul
(Thursday)
Budget Workshop
Accessory Dwelling
Units, and Screening
DCA19-0011
Construction Code
Review (TBD)Delegated Authority
Group Home Code
Amendment
Library Master Plan
20-526 Aug 3 - Luncheon
Municipal Broadband
20-556 Plugged Gas Wells Public Art
Right of Way Ordinance
Follow-up Stormwater Master Plan
Council Requests Aug. 4
20-1048
TIF Grants for
Accessibility
2020 Mobility Plan
Update7
20-245 Aug 6 - Budget Workshop
Council Requests Aug. 11
20-1049
--------------------------
Council Requests Aug 18
20-1050
Council Requests Aug 25
20-1051
Work Session Requests
Determined by Council
-
Date TBD
Community Public Art
and Community Tree
Grants
Ethics Ordinance
Revision
Small Cell Lawsuit
Participation Tree Ordinance Review
Veteran Source of
Income Housing
Discrimination
OrdinanceWork Sessions Planned - Date TBDFUTURE WORK SESSION ITEMS MATRIX
As of June 5, 2020
Currently Slated Work Session Items
No meetings - Council Break
318
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
Bonnie Brae IH 35E Scripture 06/15/20 03/01/21 North South Water Main Phase
3
Engineering,
Water Direct business contact (940) 349-8938
Cherrywood Ln Woodland St Roberts St 06/15/20 07/29/20
Water Distribution will be
installing a new water main and
water services.
Water N/A (940) 349-7278
I35E northbound service
road located
500 ft west
of Bonnie
Brae
TBD TBD Wastewater Improvements
(Temporary Lane Closures)Wastewater (940) 349-8909
Robson East Side of
RR 35W TBD TBD Wastewater Main Install
(Temporary Lane Closure)Wastewater (940) 349-8909
Rockwood Ln.Royal Mistywood TBD TBD bundle Engineering this will be part of bundle Door Hangers
Roselawn Dr.Bonnie Brae Kansas City
Southern RR TBD TBD
Drainage and Roadway
Construction
Bonnie Brae Phase 1
(One Lane traffic control)
Engineering Part of Bonnie Brae Ph. I
Capital Project (940) 349-8910
Royal Ln.Royal Rockwood TBD TBD bundle Engineering this will be part of bundle
Thomas St.Panhandle Oak TBD TBD Streets Construction Capital Projects Part of 2019 Street
Bundle (940) 349-7104
Windsor E. Sherman Nottingham 06/15/20 08/01/20 This closure is to install
underground utilities in this area Engineering NextDoor (940) 349-7426
Woodland St Frame St Cherrywood
Ln 06/15/20 07/29/20
Water Distribution will be
installing a new water main and
water services.
Water N/A (940) 349-7278
Total 8
Street Closure Report
Upcoming Closures
Week of June 8, 2020 - June 14, 2020
Upcoming Closures
319
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
Broken Arrow Dunes Old Orchard 05/11/20 06/12/20
Concrete Sidewalk Repair. The
process starts with Barricading
the failed sections of concrete
sidewalk, remove , and install
new concrete.
Streets N/A (940) 349-7146
Broken Arrow Dunes Burning Tree 06/03/20 06/26/20
Curb and Concrete Repair. The
process starts with Barricading
the failed sections of, Curb
remove and install back.
Streets N/A (940) 349-7146
Brown Dr Roberts St Woodland St 02/10/20 07/10/20
Wastewater collections will be
installing a new wastewater
main line and services
Wastewater N/A (940) 349-8909
Chaucer Hemingway Hickory
Creek 05/11/20 06/12/20
Concrete Sidewalk Repair. The
process starts with Barricading
the failed sections of concrete
Sidewalk, remove, and install
new concrete
Streets N/A (940) 349-7146
Cherrywood Ln Woodland St Northwood
Tr 02/10/20 07/10/20
Wastewater collections will be
installing a new wastewater
main line and services
Wastewater N/A (940) 349-8909
Colorado Blvd Brinker Rd
3201
Colorado
Blvd
02/17/20 06/12/20
Private Development: Drainage,
Water, Sanitary Sewer, and
Pavement for Fire Station #8
Public Works
Inspections,
Private
Development
NextDoor, Direct
business contact (940) 205-9230
Colorado Blvd Loop 288
450 Feet
north of
Loop 288
05/18/20 06/26/20
This project will be removing the
left turn lane on the northbound
side of Colorado Blvd into the
Mall.
Floyd Smith
Concrete
The project sent out a
mailout and door
hangers when the first
phase started in April.
(940) 349-7104
Dunes Broken
Arrow Windsor 06/03/20 06/26/20
Concrete Sidewalk Repair. The
process starts with Barricading
the failed sections of concrete
Sidewalk, remove, and install
new concrete
Streets N/A (940) 349-7146
Elm Hickory Prairie 05/11/20 06/19/20 PEC 4 Utility Project Engineering Direct business contact (940) 349-8938
FM 2181
City of
Denton/Cori
nth City
Lillian Miller 11/18/19 TBD Street Widening TxDOT
Watch TXDOT message
boards for local street
closure updates.
(940) 349-8425
FM 2499 Pine Hills Hickory
Creek Rd 03/27/20 07/01/20
Ana Site Construction:
Water and Sewer Bore FM2499
Public Works
Inspections,
Private
Development
NextDoor (940) 205-9230
Street Closure Report
Week of June 8, 2020 - June 14, 2020
Current Closures
Current Closures
320
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
Foxcroft Cir Emerson Ln Emerson Ln 01/30/20 07/17/20
Wastewater main replacement.
Projects extents, Emerson from
Emerson Circle to Foxcroft.
Emerson Circle from Emerson
to End
Foxcroft from Emerson to
Northcrest
Foxcroft from Old North to
Emerson
Wastewater N/A (940) 349-8909
Foxcroft Cir Emerson Ln Emerson Ln 03/09/20 09/17/20
Water Distribution will be
replacing the water main and
water services.
Water N/A (940) 349-7278
Ft. Worth Dr. (US 377)IH 35E Mission St 10/17/19 11/27/20 Infrastructure Safety Upgrades
(temporary closures)TxDOT (940) 349-8938
Ft. Worth Dr. (US 377)IH 35E
0.26 mi
south of FM
1830
12/03/18 12/12/20
Street Widening
(Temporary Lane Closures
during non-peak traffic)
TxDOT 10/08/19 (940) 387-1414
Greenwood Kaywood Crestwood 06/15/20 07/03/20
Installing Valley Gutter across
Greenwood at the intersection
of Kayewood. The process
starts with barricading then
remove pavement and
subgrade and install new
concrete Valley Gutter.
Streets N/A (940) 349-7146
Hercules Lane E. Sherman
Dr.
Huntington
Dr.06/04/20 07/31/20
Completed removal and replace
of Hercules Lane in conjunction
of the added turn lanes for the
Sherman Crossing project.
Public Works
Inspections
Email Notification, Door
hangers (940) 391-6299
Hickory Exposition Bradshaw 06/08/20 06/26/20
Concrete Sidewalk Repair. The
process starts with Barricading
the failed sections of concrete
Sidewalk, remove, and install
new concrete
Streets N/A (940) 349-7146
Hidden Meadows Trail
Intersection
with Vintage
Blvd
back of
Vintage blvd
right of way
03/16/20 07/03/20
Intermittent closures of this
intersection for construction
activities
Engineering NextDoor, Email
Notification (940) 349-8938
Hollyhill Ln Longridge Dr Tennyson
Trl 03/06/20 06/12/20
Water Distribution will be
replacing the water main and
water services.
Water N/A (940) 349-7278
Current Closures
321
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
John Paine Road
Southwest
Pump
Station
Johnson
Road 01/06/20 07/31/20
Install approximately 14,000
linear feet of 24-inch and 30-
inch water main along Old John
Paine and Allred between the
Southwest Pump Station and
South Bonnie Brae.
Water
Construction is
continuing thru COVID-
19. Please respect
workers efforts in the
field and always
maintain social
distancing.
6/3/20 - New work near
Bonnie Brae and US
377/Fort Worth Drive is
underway. Work will be
in the ROW but may
impact shoulder and
occasional travel lanes
for equipment/material
deliveries.
5/12/20 Update - Partial
Opening Goal: John
Paine from Johnson
north to Allred/John
Paine near IH 35W may
be ready to re-open End
of May. John Paine
Road from Johnson
Road south will remain
closed but is still
scheduled to re-open
July 31.
NextDoor (940) 349-8925
Johnson St.Smith St.Daugherty
St.05/18/20 07/02/20
Install new storm drain from the
intersection of Smith and
Johnson to the intersection of
Johnson and Daugherty.
Drainage NextDoor (940) 349-7197
Kerley Street Duncan
Street
Shady Oaks
Drive 02/05/20 07/31/20 Street Reconstruction Streets (940) 349-7146
Locust St.Oak McKinney 04/13/20 06/13/20 Sidewalk Improvements Engineering
5/28/20 - Contractor
delayed due to weather
and COVID related work
slowdowns.
(940) 349-8910
Locust St.Warren Ct.Maple 03/09/20 06/19/20
Storm drain improvements as
part of Pec-4 Ph 1&2
Project. West side lane closure
until May 12th Changing to
Eastside lane closure until May
29th.
Engineering Direct business contact (940) 349-8938
Mantan Calvert La Fonda 05/11/20 06/12/20
Concrete Sidewalk Repair. The
process starts with Barricading
the failed sections of concrete
Sidewalk, remove , and install
new concrete
Streets N/A (940) 349-7176
Masch Branch U S 380 Jim Crystal 02/17/20 07/17/20
We will be reconstructing
Masch Branch from 380 to Jim
Crystal.
Streets Direct business contact,
Door hangers (940) 349-7146
Current Closures
322
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
Mockernut Rd.
Intersection
with Vintage
Blvd.
back of
Vintage
Blvd. right of
way
03/16/20 07/03/20
Intermittent closures of this
intersection for construction
activities.
Engineering NextDoor, Email
Notification (940) 349-8938
Moss Creek Ft. Worth Dr.Bent Creek 05/11/20 06/12/20
Concrete Street Panel and
Sidewalk Repair. The process
starts with Barricading the failed
sections of concrete pavement,
remove the pavement, and
install new concrete.
Streets N/A (940) 349-7146
N. Bell Ave Texas College 02/28/20 07/01/20 Building out west side of
building
Public Works
Inspections,
Private
Development
NextDoor (940) 205-9230
N. Carroll W.Oak McKinney
St.06/08/20 08/28/20
Concrete Street Panel and
Sidewalk Repair. The process
starts with Barricading the failed
sections of concrete pavement,
remove the pavement, and
install new concrete.
Streets N/A (940) 349-7146
Prairie Elm Pierce 06/01/20 06/19/20 PEC 4 Utilities Engineering NextDoor, Direct
business contact (940) 349-8938
Prairie Locust Wainwright 06/01/20 06/19/20 PEC 4 Utilities Engineering NextDoor, Direct
business contact (940) 349-8938
Prairie St.Locust St.Elm St.03/23/20 08/28/20
Storm drain improvements, as
part of Pec-4 Ph 1&2
Project. Street closed to thru
traffic.
Engineering Direct business contact (940) 349-8938
Roberts St Bell Ave Cherrywood
Ln 02/10/20 07/10/20
Wastewater collections will be
installing a new wastewater
main line and services.
Wastewater N/A (940) 349-8909
Roselawn Bonnie Brae Bernard 05/12/20 06/12/20 Bonnie Brae Phase 1 Engineering NextDoor (940) 349-8938
Scripture Street Thomas
Street Malone 03/16/20 06/30/20
The 2019 Street Reconstruction
project consists of the
reconstruction of roadways
listed above. This
reconstruction shall include new
curb and gutter, ADA compliant
ramps in sidewalks, asphalt or
concrete roadways as well as
upgraded drainage, water and
wastewater facilities
Engineering NextDoor, Email
Notification (940) 349-7426
Shagbark Dr
intersection
with Vintage
Blvd
back of
Vintage Blvd
right of way
03/16/20 07/03/20
Intermittent closure of the
intersection for construction
activities.
Engineering NextDoor, Email
Notification (940) 349-8938
Current Closures
323
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
South Bonnie Brae FM 1515 Walt Parker 06/05/20 06/10/20
North South Water Phase 2 -
Installation of 42" Water Main:
Bonnie Brae is closed for
pavement restoration efforts
between FM1515 and
Willowwood Street. Part of
ongoing closures as street
restoration is performed.
Engineering Email Notification (940) 349-7713
Vista Verde Montecito Intersection 06/08/20 06/26/20
Concrete Sidewalk Repair. The
process starts with Barricading
the failed sections of concrete
Sidewalk, remove, and install
new concrete
Also installing Valley Gutters
across Vista Verde at the
intersections
Streets N/A (940) 349-7146
Warren Ct.Wainwright
St.Locust St.12/16/19 07/31/20 Drainage Improvements as part
of Pec-4 Ph 1&2 Project Engineering Closed to thru traffic Direct business contact,
door hangers (940) 349-8938
Windsor Drive North Locust Stuart 05/11/20 07/01/20
Installation of sewer and water
facilities.
Windsor Drive - Closed EB -
Open one Way WB
Engineering NextDoor (940) 349-7426
Woodland St Brown Dr Cherrywood
Ln 02/10/20 07/10/20
Wastewater collections will be
installing a new wastewater
main line and services
Wastewater N/A (940) 349-8909
Total 43
Current Closures
324
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
941 Precision Airport Rd W. Oak St.04/20/20 05/12/20
Concrete Street Repair. The
process starts with Barricading
the failed sections of
pavement, remove the
pavement and subgrade, and
install new concrete pavement.
Streets N/A (940) 349-7146
Ave. C I-35 Eagle 04/28/20 05/29/20 Garage completion and tear
down of crane on private
Public Works
Inspections,
Private
Development
NextDoor (940) 205-9230
Bent Creek Kappwood Spring Creek 01/06/20 04/24/20
Concrete Street panel and
Sidewalk repair. The process
starts with barricading the failed
sections of concrete pavement,
remove the pavement and
subgrade, and install new
concrete pavement.
Streets N/A (940) 349-7146
Eagle Elm Locust 03/30/20 05/29/20 PEC 4 1&2 Drainage and
Utility Improvements Engineering
West bound Traffic
being detoured down
Locust to Maple to Elm.
NextDoor, N/A (940) 349-8938
Hickory Creek Rd.Teasley Riverpass TBD TBD Street Widening
(Temporary Lane Closures)Engineering
From 1/13/20 to 3/8/20,
City's Contractor will be
clearing trees and
vegetation along the
south side of Hickory
Creek Rd., from the west
property line of McNair
Elementary School to
the Riverpass Dr.
intersection. This will
not involve any lane
closures, but
construction zone
signage will be put up to
warn motorists. Atmos
still needs to relocate
their facilities east of the
Montecito intersection
before our Contractor
can fully deploy to the
project.
Phone call to McNair
Elementary Principal (940) 349-7112
Street Closure Report
Week of June 8, 2020 - June 14, 2020
Completed Closures
Completed Closures
325
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
Johnson Lane John Paine
Road
Just west of
first driveway 01/06/20 05/31/20
5/20/20 Update - Project is still
on schedule to re-open Johnson
Road on May 31, 2020, Ideally
sooner if weather/work permits.
3/25/20 Construction is
continuing thru COVID-19.
Please respect workers efforts
in the field and always maintain
social distancing.
Road closure is for the
installation of new water main
along Old John Paine Rd. and
Allred Rd. between the
Southwest Pump Station on
John Paine Rd. near Parkplace
Dr. and South Bonnie Brae St.
Water NextDoor (940) 349-8925
Johnson Street; Smith
Street Dallas Drive
Daughtery
Street, at S
Locust
Street
04/06/20 07/31/20
Atmos Energy is relocating/
replacing existing gas mains
and services for upcoming
reconstruction of Smith Street;
including gas main crossing
Johnson Street at Smith Street.
Atmos
Direct business contact,
Atmos Energy to
distribute door hangers,
place sign boards, and
notify residents in
person
(940) 268-7285
Locust St.Highland St Eagle Dr 03/09/20 05/29/20
Sewer main improvements, as
part of Pec-4 Ph 1&2
Project. West side lane closure.
Engineering Direct business contact (940) 349-8938
Longridge Woodbrock
St.Hollyhill Ln.04/20/20 05/08/20 Emergency repair of drainage
system Drainage N/A (940) 349-7197
Loop 288 Colorado
225 west of
Colorado
blvd
03/16/20 05/15/20
This project is to install a drive
approach at the Golden Triangle
Mall as part of the Colorado
Blvd and Loop 288 intersection
improvements.
Engineering,
Floyd Smith
Concrete
Floyd Smith concrete will
resume work on this
project April 6th 2020.
Direct business contact (940) 349-7104
Maple St.Elm St.Myrtle St.02/24/20 03/06/20
Water Line improvements, as
part of Pec-4 Ph 1&2
Project. Alternating lane
closures.
Engineering Direct business contact (940) 349-7112
Montecito Dr.Hickory
Creek Rd.
Buena Vista
Dr.TBD TBD
Installation of new storm
drainage line. Full street
closure.
Engineering
City PM will contact
McNair Elementary
Principal again on
2/7/20.
(940) 349-7112
Old North Rd Chebi Ln Emerson Ln 05/18/20 06/05/20
Water Distribution will be
replacing the water main and
water services on Foxcroft.
Water N/A (940) 349-7125
Completed Closures
326
Street/Intersection From To Closure
Start Date
Closure
End Date Description Department Upcoming
Info/Notes
Public
Meeting
Other
Communication
Department
Contact
Pembrooke Chasewood Long Ridge 04/20/20 05/29/20
Curb and Gutter Repair. The
process starts with Barricading
the failed sections of, Curb and
Gutter remove and install
Curbs.
Also Mill and Overlay section of
Street that was impacted with
the curb repair.
Streets N/A (940) 349-7146
Rushing Springs Dr.Hickory
Creek Rd.
Marble Cove
Ln.TBD TBD
Installation of new storm
drainage line. Intersection
closure. Traffic will be detoured
to Serenity Way.
Engineering N/A (940) 349-7112
S. Elm St.Prairie St.Eagle 03/16/20 05/29/20
Water main improvements
along Elm St. as part of the Pec-
4 Ph 1&2 Project.
Engineering Alternating East and
West side lane closures
Direct business contact,
Door hangers (940) 349-8938
S. Locust St.Warren Ct.Maple 12/16/19 05/08/20 Drainage Improvements as part
of the Pec-4 Ph 1&2 Project.Engineering West side lane closure Direct business contact,
Door hangers (940) 349-8938
Thomas Street W. Oak Panhandle 03/16/20 06/15/20
The 2019 Street Reconstruction
project consists of the
reconstruction of roadways
listed above. This reconstruction
shall include new curb and
gutter, ADA compliant ramps in
sidewalks, asphalt or concrete
roadways as well as upgraded
drainage, water and wastewater
facilities
Engineering
NextDoor, Email
Notification, Direct
business contact
(940) 349-7426
Wainwright Highland ct Warren ct 04/27/20 05/29/20 PEC 4 Drainage project. Road
Reconstruction Engineering Eastside Lane closure
for pavement repair only.N/A (940) 349-8938
Total 19
Completed Closures
327