Loading...
100424 Friday Staff ReportCity Manager’s Office 215 E. McKinney St., Denton, TX 76201  (940) 349-8307 OUR CORE VALUES Inclusion  Collaboration  Quality Service  Strategic Focus  Fiscal Responsibility MEMORANDUM DATE: Oct. 4, 2024 TO: The Honorable Mayor Hudspeth and Council Members FROM: Sara Hensley, City Manager SUBJECT: Friday Staff Report Upcoming Meetings A.Board of Ethics (Advisory Panel) on Monday, Oct. 7, 2024, at 5:30 p.m. in the City Council Work Session Room. B.Board of Ethics on Monday, Oct. 7, 2024, at 6:00 p.m. in the City Council Work SessionRoom. C.Cancelled - Parks, Recreation and Beautification Board on Monday, Oct. 7, 2024, at 6:00p.m. in the Civic Center Community Room. D.Special Called City Council Meeting on Tuesday, Oct. 8, 2024, at 9:30 a.m. in the City Council Work Session Room. E.Economic Development Partnership Board on Wednesday, Oct. 9, 2024, at 11:00 a.m. atthe Development Service Center. F.Airport Advisory Board on Wednesday, Oct. 9, 2024, at 3:00 p.m. in the Airport TerminalMeeting Room. G.Planning and Zoning Commission on Wednesday, Oct. 9, 2024, at 5:00 p.m. in the CityCouncil Work Session Room & Council Chambers. H.Health and Building Standards Commission on Thursday, Oct. 10, 2024, at 3:00 p.m. at the Development Service Center. I.Community Services Advisory Committee on Thursday, Oct. 10, 2024, at 4:30 p.m. atthe Development Service Center. J.Sustainability Framework Advisory Committee on Friday, Oct. 11, 2024, at 1:00 p.m. inthe City Council Work Session Room. Please check the City of Denton website for final meeting days and times as information is subject to change after the Friday Report is published. Public Meetings & Agendas | Denton, TX (civicplus.com) 2 General Information & Status Updates A.Airport Master Plan Public Workshop – The Denton Enterprise Airport will host a second public information workshop for the Airport Master Plan on Oct. 23, 2024, from 5 p.m. to6 p.m. at the Airport Terminal Building (5000 Airport Road). The workshop will covercurrent airport facilities and activities and examine potential aviation activity demandlevels. Airport staff and consultants will be available to answer questions. Moreinformation on the Airport Master Plan, including the project schedule, master plan documents, and frequently asked questions, can be found here. Staff contact: Ryan Adams,Airport B.Community Rating System – The City of Denton participates in the Community RatingSystem (CRS), a voluntary incentive program that recognizes communities for exceeding the National Flood Insurance Program (NFIP) standards in floodplain management.Denton has achieved a rating that results in a 25 percent discount on flood insurancepremiums for all federally backed policies within the city. The discount was effective April1, 2024, and will automatically apply to policies issued or renewed after April 1. Dentonreceived CRS credit points for having an adopted Hazard Mitigation Plan (HMP) and a Repetitive Loss Area Analysis (RLAA). The progress reports for the HMP and RLAA areattached and will be submitted to the Federal Emergency Management Agency (FEMA)as part of the City’s annual CRS recertification on Oct. 15, 2024. Staff contact: MikeLinder, Development Services Responses to Council Member Requests for Information A.Planned Development – On Sept. 28, Council Member Holland shared a resident’s inquiryregarding a planned development in northwest Denton. A 501(c)3 nonprofit organizationreceived a donation of about 70 acres to develop a microhome community for chronically homeless individuals, including support services, retail space, and a community market.Staff is in the initial stage of project review and will schedule a Work Session discussionwith the Planning and Zoning Commission in October and City Council in December todiscuss future land uses in the Northwest portion of Denton. Additionally, the proposedproject will require a zoning change and Comprehensive Plan Amendment. Public hearings on these changes will occur in early 2025. Members of the public are encouraged to attendthese public hearings to provide input. Staff will provide updates in future Friday Reportsas the project progresses. Staff contact: Cameron Robertson, Development Services B.Mack Park – On Sept. 28 and Oct. 1, Council Members McGee and Beck shared a resident’s question regarding restroom closure. On Friday, Sept. 27, the restrooms at MackPark were closed over the weekend due to a water service line break that occurred lateFriday afternoon. This disruption compromised the operability of the restroom building.Our on-call, overtime staff were immediately dispatched to repair the water line, butunfortunately, the line broke again. Recognizing the upcoming weekend games, Staff ensured that port-o-lets were serviced and cleaned on Saturday morning to provide thecleanest possible facilities for park users. Staff contact: Ziad Kharrat, Parks and Recreation 3 C.Tree Survey – On Oct. 1, Council Member Jester inquired about trees flagged along MingoRoad. A tree survey is being conducted for the Mingo/Ruddell roadway project part of the 2023 Bond Program. A tree survey is required to help gather information such as location, type, and tree size to guide design decisions for right-of-way acquisition. Staff contact:Trevor Crain, Capital Projects D.Timbergreen Street – On Oct. 2, Council Member Holland shared an inquiry from a resident regarding the status of Timbergreen Street. Staff evaluated the roadway on Sept. 13 and determined that a full street reconstruction would be required. This will be addedfor consideration in the Capital Improvements Projects and /or Bond Program. Staffcontact: Cassey Ogden, City Manager’s Office Upcoming Community Events and Public Meetings Please visit the City of Denton website for upcoming community events and details. Attachments A.Hazard Mitigation Plan and Repetitive Loss Area Analysis Progress Reports ...................5 Informal Staff Reports A.2025-001Airport Leasing and Development Policy ...........................................................13 Information A.Council Requests for Information .......................................................................................28 B.Public Meetings Calendar ...................................................................................................30 C.Future Work Session Items .................................................................................................34 D.Street Closure Report ..........................................................................................................35 4 Page 1  CRS Activity 510 Progress Report on Implementation of Credited Plan Date this Report was Prepared: September 26, 2024 Name of Community: City of Denton CID: 480194 Name of Plan: Denton County All Hazard Mitigation Plan Date of Adoption of Plan: April 4, 2023 5 Year CRS Expiration Date: 2028 1.How can a copy of the original plan or area analysis report be obtained: The plan is available through the Denton County website - https://www.dentoncounty.gov/1710/Hazard- Mitigation-Plan 2.Describe how this evaluation report was prepared and how it was submitted to the governing body, released to the media, and made available to the public: The progress report was prepared by City staff. The report was submitted to the City of Denton City Council through a staff report that is available to the public through the City website. https://www.cityofdenton.com/510/Friday-Staff-Reports-to-City-Council 3.Provide a description of the implementation of each recommendation or action item in the action plan or area analysis report, including a statement on how the project was implemented or not implemented during the previous year. (Mitigation actions for the City of Denton are in Section 19 of the HMAP.) ACTION #1: Develop a Floodplain Management Plan STATUS: Dependent on funding ACTION #2: Develop a Stormwater Masterplan STATUS: Ongoing. The City plans to update existing masterplans for each major watershed within the City. Currently funding has been approved to update the masterplan for the Pecan Creek basin. ACTION #3: Evaluate access and road conditions STATUS: Dependent on funding ACTION #4: Downtown Storm Sewer Phase 2 STATUS: This project is no longer needed. The drainage issues were addressed through improvements constructed as part of a private development project. 5 Page 2  ACTION #5: Construction of Elm and Locust Phase 2 STATUS: Project is currently at 90% design and has been funded through a City bond election. ACTION #10: Oakland Area Drainage STATUS: Project is currently in design and has been funded through a City bond election. ACTION #11: Construction of PEC 4 phase 3 & 4 Drainage improvements STATUS: Project is currently at 90% design and easement acquisition has begun. The project was funded through a City bond election. ACTION #12: PEC 5 Mobile Home Park Drainage Improvements STATUS: Dependent on funding ACTION #14: Hire a firm to review current and expand operational safety measure for extreme weather during special events STATUS: City staff is working with a vendor on identifying dead zones in the outdoor warning sirens. Recommendations for new sirens will be provided, along with cost ACTION #15: Install smart channel flow sensors STATUS: Funding for this equipment was approved in the City budget. The City intends to acquire and install these flood detection measures within the next year. ACTION #16: Hire a consultant to perform a stormwater pipe condition assessment STATUS: The City has a contact with a firm to perform these inspections. The City also has acquired the equipment needed to perform these inspections in-house. Through a combination of outside support and in-house inspections the City intend to inspect all drain pipes on a 5-year rolling basis. ACTION #17: Hire consultant to perform an inventory, condition assessment, and dam breach analysis of all the dams within city limits STATUS: The City has a consultant contract to inspect all City owned dams, review and offer recommendations on the current maintenance & inspection practices, and review for regulatory compliance of all City owned dams. ACTION #18: Raise the roadway and improve culverts to eliminate roadway overtopping on Blagg Road from Mayhill Road to Geesling Road STATUS: Dependent on funding ACTION #19: Bridge/culvert upgrades to reduce roadway overtopping of Cooper Creek at Mingo Road. STATUS: The City has partnered with the USACE though the Continuing Authorities Program Section 205 to perform study, design, and construct flood control projects within the Cooper Creek basin. This improvement is being evaluating for inclusion in this effort. ACTION #20: Replace the bridge on Trinity Road STATUS: The design and construction of this project is being funded through the TxDOT Highway Bridge Program. The design is currently at 90% and the project is expected to go to bid in Q1 of 2025. 6 Page 3  ACTION #21: Hire consultant to perform a condition assessment on all City-owned retention ponds STATUS: The City has a consultant contract to inspect all City owned dams, review and offer recommendations on the current maintenance & inspection practices, and review for regulatory compliance of all City owned dams. ACTION #22: Construct culvert upgrades at intersection of Sherman at Monterey to increase stormwater conveyance STATUS: The City has partnered with the USACE though the Continuing Authorities Program Section 205 to perform study, design, and construct flood control projects within the Cooper Creek basin. This improvement is being evaluating for inclusion in this effort. ACTION #23: Westgate Infrastructure improvements to increase water conveyance and road capacity STATUS: The design for this project is at 90% and construction is anticipated to begin in Q1 of 2025. ACTION #24: Establish, adopt, implement, and construct a "green infrastructure" program for parks, nature preserves, greenbelts, etc. STATUS: Development Services staff is working to evaluate development code updates to incentives low impact development, water conservation techniques, and nature-based solutions. ACTION #25: Hire a consultant to perform a storm water pipe condition assessment STATUS: The City has a contact with a firm to perform these inspections. The City also has acquired the equipment needed to perform these inspections in-house. Through a combination of outside support and in-house inspections the City intend to inspect all drain pipes on a 5-year rolling basis. ACTION #26: Undertake an initiative to increase the number of flood insurance policies STATUS: The City has updated it’s flood hazard outreach program to explain the benefits of flood insurance and to encourage residents to purchase a policy. ACTION #27: Develop a land acquisition program in flood hazard areas STATUS: City staff is evaluating the potential of establishing a voluntary buyout program for buildings located in the floodplain utilizing FEMA Hazard Mitigation Grant Program funding. ACTION #28: Acquire and preserve open spaces adjacent to floodplain areas STATUS: The City’s development code requires that any floodplain let on a property be dedicated to the public in a floodplain/drainage easement. ACTION #29: Increase drainage capacity; add stormwater detention and/or retention basins as deemed necessary to reduce flood risk. STATUS: The Oakland project will include capacity improvements and a new reginal detention pond located north of the Denton Shopping Center. The project is currently in design and has been funded through a City bond election. ACTION #30: Implement stream restoration/channelization Program 7 Page 4  STATUS: City Engineering and Drainage staff have developed processes for routine inspection of the City’s earthen channels and a system to score and prioritize erosion endangering protected assets. ACTION #31: Upgrade undersized stormwater drains and Culverts STATUS: The Elm & Locust project and the Oakland Drainage project will make improvements to undersized storm drains and provide multiple culvert upgrades. ACTION #37: Develop and implement public education program utilizing media, social media, bulletins, flyers, etc. to educate citizens of hazards that can threaten the area and mitigation measures to reduce injuries, fatalities, and property damages STATUS: The City has developed a flood hazard outreach program which utilizes direct mailers, social media, television segments, and special events to educate residents on flood risk and steps they can take to protect themselves and their property from flood damage. ACTION #38: Relocate Emergency Operations Center (EOC) to a hardened existing facility out of the floodplain STATUS: A secondary site for the EOC has been established at the new Police Substation. Talks with city leadership about a new EOC is underway. 4.Discuss why any objectives were not reached or why implementation is behind schedule: While the City has made significant progress on many of the possible mitigation actions, availability of funding requires us to prioritize the dedication of City resources into the actions that will have the greatest impact. 5.What are the recommendations for new projects or revised recommendations? The next major step in developing a stormwater masterplan will be to evaluate and update the masterplan for the Pecan Creek watershed. This watershed was selected for the first update because is was mostly developed before modern floodplain management practices and has many historical flooding issues along with facilities reaching the end of their designed life. New flood reduction projects are expected to be identified during the Pecan Creek masterplan update. These projects will likely require funding though a City bond election. This will be dependent on the size of the bond package, what projects are included in the bond, and whether residents vote to approve the bond package. Once the Pecan Creek watershed masterplan update is compete, the next recommended watershed to analysis is Hickory Creek. City Staff will also continue to inspect storm sewer pipes, channels, culverts, and ponds to identify deficiencies and scope/prioritize future capital improvement plans and bond projects. 8 Page 1  CRS Activity 510 Progress Report on Implementation of Credited Plan Date this Report was Prepared: September 26, 2024 Name of Community: City of Denton CID: 480194 Name of Plan: City of Denton Repetitive Loss Area Analysis Date of Adoption of Plan: October 18, 2022 5 Year CRS Expiration Date: 2028 1.How can a copy of the original plan or area analysis report be obtained: To request a copy from the City of Denton, Contact Mike Linder at 940-349-8942 or email: Mike.linder@cityofdenton.com. The report is also available online at: https://lfpubweb.cityofdenton.com/PublicWeblink/DocView.aspx?id=456932&dbid=0&repo= CitySecretary&cr=1 2.Describe how this evaluation report was prepared and how it was submitted to the governing body, released to the media, and made available to the public: The progress report was prepared by City staff. The report was submitted to the City of Denton City Council through a staff report that is available to the public through the City website. https://www.cityofdenton.com/510/Friday-Staff-Reports-to-City-Council 3.Provide a description of the implementation of each recommendation or action item in the action plan or area analysis report, including a statement on how the project was implemented or not implemented during the previous year. (Mitigation actions for the City of Denton are in Section 6 of the RLAA.) PREVENTATIVE ACTION: The City regulates residential and commercial development through its Development Code, Stormwater Design Criteria Manual, and Flood Prevention and Protection ordinance (Chapter 30), all of which are accessible via the City’s website at www.cityofdenton.com. City Council adopted a revised Flood Prevention and Protection Ordinance in August of 2020 that included higher standards for new and substantially improved structures in the floodplain, as well as new structures built within 200 feet of the floodplain. The Capital Projects and Engineering department is also recommending that City Council revise the ordinance again to adopt increased protection of critical facilities within the 0.2% flood zone (aka 500-year floodplain). The ordinance requires that minimum finished floor elevations for new or substantially improved residential buildings (or floodproofed elevation for nonresidential buildings) within the floodway fringe and within 200 feet of the floodplain boundary shall be determined by adding 18 inches of freeboard to the base flood elevation based on fully 9 Page 2  developed conditions or 30 inches above the base flood elevation as indicated in the effective Flood Insurance Study. This extra level of flood protection may be a contributing factor to why there are so few repetitive loss properties in Denton. The City’s Stormwater Design Criteria Manual, adopted in December 2021, requires that all stormwater management facilities be designed for the 100-year event. As some communities only design for smaller scale events, the City is proactive and aggressive in requiring a higher level of protection against major events. Other mitigation options under the umbrella of preventative activities include the City’s adoption of the most current (2021) building codes, as well as dedicated staff performing routine maintenance on the city’s drainage system to prevent clogs caused by obstructions. Recently, the City has concluded work on developing a Stormwater Master Plan Needs Assessment which included a flooding hotspot analysis and watershed prioritization based on flood risk indicators such as drainage complaints, NFIP policies, repetitive loss areas, existence of prior studies/capital projects, infrastructure condition needs, development trends, and other relevant factors. The purpose of these activities is to prepare a strategic direction for the stormwater utility that includes inventory and condition assessment of stormwater infrastructure, hydrologic and hydraulic modeling of watersheds, capital project identification and prioritization, funding levels and budget allocation, and a review of maintenance and development practices. STATUS: Ongoing PROPERTY PROTECTION: The City promotes the purchase and maintenance of flood insurance via an annual targeted outreach project. Since the rollout of FEMA’s Risk Rating 2.0 wherein flood insurance premiums are based on actuarial rates rather than location to the floodplain, the City suspects more property owners will take steps to mitigate their individual flood risk such as elevating or retrofitting their structures. Through the City’s outreach, citizens are encouraged to contact City staff for advice or to request a one-on-one site visit to explore property protection options. STATUS: Ongoing NATURAL RESOURCE PROTECTION: The Many undisturbed creeks and wetlands provide a wide range of benefits to human and natural systems. They provide flood storage and conveyance and reduce flood velocities and flood peaks. Water quality is improved because creeks and wetlands filter nutrients and impurities from runoff and process organic wastes. Local creeks and wetlands provide breeding and feeding grounds for fish and wildlife, create and enhance waterfowl habitat, and serve as habitats for rare and endangered species. The City has designated many creeks, wetlands, and floodplains as Environmentally Sensitive Areas (ESAs) and protects them through regulations, thereby, preserving vital water related resources. The City has identified four distinct types of ecological habitats - Floodplains, Riparian Buffers, Water-Related Habitat, and Cross Timbers Upland Habitat - that provide for the community in many ways and are environmentally sensitive. The City has also adopted an Official ESA Map of Environmentally Sensitive Areas (IT Nexus nexVIEWerJS (cityofdenton.com)) throughout Denton, identified through the best information available from aerial photographs and records such as a soil survey from the Natural Resource Conservation Service (NRCS) and FEMA FIRMs. Upon further inspection of these ESAs, the City concluded that they are not located near any of the identified RLAs and would have not a positive or negative impact on the flooding risk in these areas. STATUS: Ongoing 10 Page 3  EMERGENCY SERVICES: The City has developed a flood warning system for properties in floodplains and susceptible to the flood hazard. Severe weather alerts and flood warnings will be issued by radio (KNTU FM 88.1), local TV Channel 26, all cable TV stations in Denton (audio override and bulletin board) and on NOAA weather radios. The system, which is operated manually by the National Weather Service and Emergency Management trained SKYWARN volunteers, can provide one-hour advanced warning of a flood hazard. Battery operated NOAA weather radios may be purchased to receive warnings during power and telephone outages. The City has also implemented a two-way radio and paging system (911 Dispatch) that can be used by emergency management personnel to activate warning sirens throughout the City as needed. In September 2022, the City developed a Flood Response Preparations plan that details efforts the City will undertake before, during, and after a storm event. Activities range from posting door hangers on homes of suspected flood damage with response and recovery information to posts on social media. The City also uses the Alert Denton emergency notification system to relay flood warnings and flood safety tips to citizens who have registered for the service. All of the above-described emergency services activities are ongoing and applicable to all six (6) repetitive loss areas. STATUS: Ongoing STRUCTURAL PROJECTS: RLA #3 is located within the Pecan Creek watershed. The City plans to update the Pecan Creek Watershed Masterplan in order to identify capital projects that will reduce the frequency of flooding within the basin. This area will be evaluated to determine what other structural improvements are viable in the area. The City has also acquired land upstream of RLA #3 which was identified as a potential location for a reginal detention pond in a watershed study done in 2021. Though funding is not currently identified for this project, the pond would reduce the flood flows impacting RLA #3. Potential structural mitigation alternatives for the other RLAs include constructing additional storm sewer, reconstructing drive approaches, or increasing channel capacity. The City will continue to evaluate these alternatives in conjunction with any nearby or related projects. STATUS: Ongoing PUBLIC INFORMATION: Part of the City’s extensive public outreach involves a targeted, annual mailing in May/June to each of the 28 properties in the RLAs. The RLA mailing is similar to outreach slated for the general public which includes information on flood insurance, development regulations, and drainage system maintenance. However, RLA outreach letters also include information on property protection and sources of financial assistance such as mitigation grants. The City also maintains a comprehensive Flood Protection Information page on its website with a directory of various topics such as flood insurance, flood warning system, property protection, natural and beneficial functions, and flood safety measures. Recently, City staff engaged with local real estate agents to provide handouts to perspective clients encouraging them to check the flood hazard before they buy property in Denton. Lastly, the City has its own channel on YouTube, and staff regularly post videos highlighting various departments and services the city provides such as drainage system maintenance. One recent video (Flood Awareness (youtube.com)) covers the flood hazard topics discussed above. 11 Page 4  STATUS: Ongoing 4.Discuss why any objectives were not reached or why implementation is behind schedule: While the City has made significant progress on many of the possible mitigation actions, availability of funding requires us to prioritize the dedication of City resources into the actions that will have the greatest impact. 5.What are the recommendations for new projects or revised recommendations? The City will continue to refine and add to its public information efforts to educate residents on how to reduce their flood risk, and further improve its development standards to provide robust flood protections for existing properties and prevent new flooding hot-spots from forming in the future. The RLAs will be evaluated for additional possible structural mitigation alternatives as the City furthers is Stormwater Master Plan efforts in individual watersheds. Staff will also work to capitalize on any nearby projects or initiatives which could offer funding or cost savings for the currently identified alternatives. 12 Oct. 4, 2024 Report No. 2025-001 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Airport Leasing and Development Policy EXECUTIVE SUMMARY: The City of Denton’s proposed Airport Leasing and Development Policy aligns with Federal Aviation Administration (FAA) Grant Assurances while promoting transparency, equity, and efficiency in the leasing process. The policy supports long-term financial sustainability, maximizes airport revenue, and attracts private investment. It formalizes current practices, introduces clear guidelines for lease terms and rent assessments, and ensures consistent treatment of lessees. The Airport Advisory Board has unanimously approved the policy, which is scheduled to be considered by the City Council on Oct. 15, 2024. BACKGROUND: As a recipient of FAA Airport Improvement Program funding, in addition to other federal funding, the City of Denton (\City) is obligated to operate Denton Enterprise Airport (Airport) under FAA Grant Assurances. Among these federal obligations is the requirement to operate the Airport for the use and benefit of the public and for the Airport to be made available to all types, kinds, and classes of aeronautical activity on reasonable terms and without unjust discrimination. These Grant Assurances further require the City to maintain a fee and rental structure that makes the Airport as financially self-sustaining as possible under current conditions while avoiding unjust economic discrimination among users. An Airport Leasing and Development Policy sets forth the parameters that shall be used by the City for leasing land and/or land improvements for commercial or non-commercial general aviation purposes at the Airport. The policy supports the City’s compliance with no less than six FAA Grant Assurances, including those that require the City to retain certain authority over the airport, ensure operational continuity of the Airport, and ensure that the Airport complies with the FAA’s economic non-discrimination requirements. DISCUSSION: In addition to the above Grant Assurance-related reasons for the adoption of a Leasing and Development Policy, a policy-based approach also: •Supports comprehensive and organized processes. •Encourages transparency and consistency. •Demonstrates equity amongst potential lessees and developers. •Reduces ad-hoc decision-making by Airport staff; and •Creates process efficiency in application approval and negotiation. A lease-related policy reduces inadvertent noncompliance with FAA regulations, the FAA views the presence of a policy favorably. 13 Oct. 4, 2024 Report No. 2025-001 Additional Policy Objectives The Airport also seeks to achieve the following objectives through a comprehensive Leasing and Development Policy: •Maximize airport revenue. •Minimize airport financial obligations in each leasehold. •Achieve consistent and valuable customer service; and •Attract and leverage private investment for airport improvements. Airport/Lessee Relationship By law, airports must maintain continual power and authority over their property and may not sell land for development. To encourage private development, airports enter into a long-term lease arrangement whereby the Lessee receives a favorable rental rate (compared to the fair market value of non-airport property) for an extended duration. The duration of an airport lease is often over 20 years; however, the FAA limits the duration of a lease to be no longer than is necessary for the lessee to amortize its investment. State law further specifies an upper limit for lease terms at 50 years. At the end of the lease term, any improvements on the land become the property of the Airport – a process known as “reversion.” The graphic below provides further detail regarding the Airport/lessee relationship and the benefits accrued to each under a typical lease agreement. Lease Policy Components The draft Leasing and Development Policy is scheduled for consideration by the City Council on Oct. 15, 2024. As drafted, the policy substantially reflects current Airport leasing and development Airport Recieves •Long-term aeronauticalservices/activity •A reliable income streamvia lease payments •Expectation of ownershipof Improvements (andcharging market rates) Lessee Recieves •Airport/airfield access toconduct aeronauticalactivity •Significant time frame toamortize investment costs •If a business, a reliablecustomer base and opportunity to realize aprofit 14 Oct. 4, 2024 Report No. 2025-001 practices and, instead of granting additional authority to staff, broadly provides boundaries that set appropriate limits on staff decision-making during the leasing and development process. This ensures prospective lessees are treated equitably, there is consistency in the process, and that development is optimized. NOTE: The policy is not retroactive and does not apply to existing lease agreements. The following highlight areas where the policy improves or makes necessary changes to the current process: •Article IoNo significant deviations from current practice •Article II o Establishes Principal Development Criteria for initial evaluation of proposeddevelopments.o Provides additional detail on requirements for a development application. o Establishes a 120-day deadline, from accepting a development application to executing a lease agreement. The Airport Director may extend this deadline. o Provides that the City may issue an RFP at any time for the development of airportproperty or use of an airport-owned improvement. •Article III o Establishes those lease conditions generally not subject to negotiation ormodification.o Clarifies lessee responsibility for ongoing leasehold maintenance.o Clarifies when building condition assessments are required, by whom they may be performed, and how building deficiencies must be corrected. •Article IVoClarifies that lease rent will be based on the existing market established byappraisal.o An appraisal is required to determine if the lease rent is less than two years old. o Clarifies conditions when below-market rent will be permitted. o Clarifies how charges for “through the fence” agreements are calculated.o Clarifies that the length of a lease agreement shall be commensurate with the valueof the capital invested on the property by a lessee (i.e., it shall not be any longerthan is necessary for the lessee to amortize its investment). o Provides conditions under which extended lease terms or extensions may beconsidered.o Limits lease terms where the lessee has no capital investment to three years or less. •Article V o Clarifies options available once a lease agreement has concluded its term and anyleasehold improvements have reverted to the City.o Requires Airport staff to perform a financial and management analysis to supportpost-reversion actions. Airport Advisory Board Discussions 15 Oct. 4, 2024 Report No. 2025-001 The Airport Advisory Board (AAB) held four meetings to discuss current leasing practices and the draft policy. The draft policy that the Council will consider was approved by a vote of 6-0. During the final meeting, a representative of U.S. Aviation, the Airport’s largest flight school, provided valuable feedback regarding the condition assessments required under the policy. After further discussion with the speaker, staff modified the applicable section of the policy to broaden the number of individuals qualified to perform the inspections. It included language that provided assurances that any required repairs would only be limited to those the lessee was obligated to within the lease agreement. As a result, the staff was able to address the speaker's concerns and provide additional flexibility for both the Airport and potential lessees. CONCLUSION: The proposed Airport Leasing and Development Policy ensures compliance with FAA Grant Assurances and promotes transparency, efficiency, and equitable practices in Airport leasing processes. By formalizing these procedures, the policy positions the Airport for long-term financial sustainability, optimized development, and enhanced relationships with lessees. This structured approach will foster private investment while safeguarding the Airport’s assets, creating a solid foundation for future growth and success. ATTACHMENTS: 1. Draft Leasing and Development Policy STAFF CONTACT: Ryan Adams Airport Director Ryan.Adams@cityofdenton.com (940) 349-7744 REQUESTOR: n/a STAFF TIME TO COMPLETE REPORT: 2 hours PARTICIPATING DEPARTMENTS: Airport 16 Airport Leasing and Development Policy Article I. Introduction As a recipient of Federal Aviation Administration (“FAA”) Airport Improvement Program funding, in addition to other federal funding, the City of Denton (“City”) is obligated to operate Denton Enterprise Airport (“Airport”) in accordance with FAA Grant Assurances. Among these federal obligations is the requirement to operate the Airport for the use and benefit of the public and for the Airport to be made available to all types, kinds, and classes of aeronautical activity on reasonable terms and without unjust discrimination. These Grant Assurances further obligate the City to maintain a fee and rental structure for the facilities and services at the airport, making the Airport as self-sustaining as possible under existing circumstances and avoiding unjust economic discrimination within classes of users. Section 1.01 Purpose The Airport Lease and Development Policy (“Policy”) sets forth the parameters that shall be used by the City for leasing land and/or improvements for commercial or non-commercial general aviation purposes at the Airport. The Policy seeks to: 1.Promote Aviation Growth by encouraging the provision of essential aeronautical activities and aviation services for the benefit of the public while preserving the City’s financial investment in the Airport. Non-aeronautical uses of Airport land will be permitted only on portions of the Airport not needed for aviation purposes and in accordance with FAA policy. 2.Apply Standards Uniformly through equitable, reasonable, and not unjustly discriminatory treatment of all lessees and permittees while promoting the highest and best use of Airport property. The Policy facilitates orderly management of and ensures consistent quality of facilities at the Airport. 3.Promote Long-Term Financial Self-Sufficiency through a rental, rates, and fees structure that maximizes Airport revenue for its current and future development, management, maintenance, and operating expenses. 4.Ensure Compliance with applicable laws, regulations, ordinances, policies, guidelines, and requirements as they relate to the application for and acceptance of federal funds. This includes FAA regulations and current airport Minimum Operating Standards, Rules and Regulations, and other regulatory requirements as may be adopted or amended by the City. All new and renewed lease agreements will require adherence to City Policy. City policy will promote and require fairness and consistency, uniform application of this policy, and prohibit economic discrimination relative to aviation leases. The City will establish rents and fees associated with this consistent with FAA policy and in support of grant assurances, balancing competitiveness with financial sustainability, with provisions for periodic review and adjustment based on market conditions and operational needs. 17 Section 1.02 Authority of the City The Airport is owned, operated, and governed by the City which expressly reserves the authority to lease Airport land and/or improvements, allow the occupancy and/or development of Airport land or improvements, grant the right to engage in any activity at the Airport, and implement, supplement, amend, modify, approve, or adopt any agreement, policy, standard, rule, regulation, or directives. Any person wishing to lease for the exclusive use of any parcel of land on the Airport, or of any city- owned or operated facility must enter into a written lease agreement with the City specifying the terms and conditions of such use. The City Council may establish by ordinance those rates and fees, and those terms and conditions it deems appropriate and applicable to Airport use. The Airport Director, acting under the authority of the City Manager, shall take those necessary decisions and/or actions to ensure compliance with: •Existing leases, licenses, permits, and other written agreements between the City and persons within the Airport; •This Policy, and those other policies, rules, or regulations established by the authority of the City Council, which apply within the Airport; •Those responsibilities levied on the City by the federal or state governments concerning Airport operations and management. The Airport Director may authorize an interim or emergency agreement to occupy or use City-owned improvements and infrastructure by appropriate public agencies. Examples of situations that may be suitable for such authorizations are military or law enforcement activities and the temporary occupation of airport areas by government agencies during natural disasters, or aircraft accident investigations. Section 1.03 Applicability This Policy shall apply to any new agreement or any new amendment to an existing agreement relating to the leasing of land and/or improvements, including the establishment or adjusting of rents, rates, fees, and other charges for commercial or non-commercial general aviation aeronautical activities. This Policy shall not affect any agreement or amendment thereto that is properly executed before the date of adoption of this Policy except as provided for in such agreement, in which case, this Policy shall apply to the extent provided by such agreement. The City reserves the right from time to time to amend, supplement, revise, alter, rescind, or add to the policies and procedures listed herein either in part or in their entirety. The Airport further reserves the right to use this Leasing Policy for the selection of non-aeronautical service providers and concessionaires as it deems appropriate. Section 1.04 Compliance with Federal, State, and Local Law This Policy is subject to federal law, FAA regulations, state statute, and local ordinance. In the event of provisions of this policy conflicting with the aforementioned law, the aforementioned laws shall prevail. If any section, subsection, sentence, clause, or phrase of these policies and procedures is, for any reason, held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall neither affect nor impair any of the remaining provisions. 18 Article II. Leasing Airport Land or Improvements Entities shall not occupy Airport land or improvements for any purpose unless the entity has an agreement or sublease, or occupies a hangar under a rental agreement with a duly permitted hangar rental business. In addition, entities shall not conduct aeronautical or non-aeronautical commercial activities at the airport unless the entity has an Airport Business Permit authorizing such activities. Entities shall also comply with the Denton Code of Ordinances, Airport Rules and Regulations, Minimum Operating Standards, and any other applicable federal, state, and local laws and regulations. Section 2.01 Principal Development Criteria The Airport has limited land resources, so it is important to adequately evaluate proposed Airport leases and development to ensure that the highest and best use of each property is realized and that such use is compatible with future Airport development and land use plans. Proposed leasing or development requests will be evaluated in accordance with this policy. Such evaluation will look to whether the proposed use conforms to the following (collectively, the “Principal Development Criteria”): 1. The use is shown to be appropriate and consistent with the Airport Layout Plan (“ALP”), Airport Master Plan, Airport Appraisal, and other relevant Airport planning documents or Airport expansion or development plans or goals. 2. The use will not interfere with the normal and efficient operation of the Airport or with the ability of other Airport users to enjoy reasonable access to their leaseholds or the public areas of the Airport, including its runway and public taxiways and aprons. 3. The use will advance the goal of achieving financial self-sustainability for the Airport by providing a consistent, reliable, and appropriately substantial source of revenue to the Airport, whether in the form of rent or other rates, fees, or charges. 4. The use will provide long-term benefits to the Airport through the tenant’s construction, expansion, maintenance, or other development of useful and valuable improvements or facilities (or through the tenant’s efficient use of improvements to existing Airport property or facilities). 5. The use will support the City’s efforts to make the Airport an attractive, aesthetically pleasing gateway to, and source of economic development for, the City. 6. The use will not involve non-aeronautical use of Airport property or facilities more appropriate or necessary for aeronautical use, as determined at the sole discretion of the City. 7. The use does not pose exceptional or unreasonable financial, legal, or operational risk to the Airport or the City. 8. The use does not violate any applicable laws or regulations or any Grant Assurances or similar state or local obligations and does not pose a substantial risk of causing the City to violate any such laws, regulations, Grant Assurances, or obligations. Section 2.02 Designated Areas The City reserves the right to designate specific Airport land and/or improvements in which commercial and/or non-commercial aeronautical activities may or may not be conducted. The right to use the Airport and any airport land or improvements is non-exclusive except for the land and or improvements leased exclusively to an entity by the City. 19 The City may establish, through the Airport Master Plan or other Council-approved plan, certain areas approved for particular types of commercial and non-commercial activities within the Airport. These designated areas will indicate proposed future uses and activities for segments of the Airport property. If designated areas are established, all proposed activities and developments must be located in a designated area that corresponds to and does not conflict with such use. To the extent allowed under FAA regulations, the City reserves the right to refuse proposals to use or develop airport land for aeronautical or non-aeronautical purposes. Section 2.03 Lease Application Prior to entering into formal lease discussions or negotiations, a prospective lessee shall complete a written application for a lease in a form prescribed by the City and pay any associated fees as established by the City Council. The application shall include, at minimum: 1.A description of the activity or activities that the applicant proposes to conduct under its requested development, with sufficient narrative to adequately explain the benefits of the activity or activities to the Airport and the City and to demonstrate that it meets the Principal Development Criteria. 2.The names and contact information of the prospective lessee(s) or, if an incorporated entity, of all parties owning an interest in the entity. 3.A description of the premises intending to be leased. 4.The type of facilities which the applicant proposes to construct on or for the proposed leasehold, if applicable. 5.An estimate of value of the proposed capital investment on the premises, if applicable. 6.For any commercial activity, the services to be provided, proposed hours of operation, number of aircraft to be based, and projected number of employees, and other relevant information. The City reserves the right to request additional information from the lease applicant. Upon receipt, Airport staff will review the application and determine if the proposed use and leasehold location comply with this policy. Noncompliance may result in the rejection of the lease application. Submission of an application and payment of applicable fees secures for the prospective Lessee the exclusive right to pursue a lease with the City for 120 days. During this time, the Airport will not consider nor discuss the leasing or development of the subject property with other interested parties. If no lease is executed by the end of the 120 days, the application will expire, and the City may accept applications for the property from other parties. This 120-day timeframe may be extended in writing by the Airport Director. The City Council shall have the right to adopt an application fee and publish it in the Airport Rates and Fees schedule. Section 2.04 Lease Approval Within 60 days of receiving a completed application, the Airport shall convey the key terms and conditions (including rents, fees, and other charges) of a proposed lease agreement to the applicant. The applicant shall, within a reasonable amount of time, indicate if the key terms and conditions proposed by the Airport are acceptable or provide revised key terms and conditions. The Airport 20 Director may negotiate the revised key terms and conditions and/or initiate the competitive proposal process described in Section 2.05. All new lease agreements, lease assignments or transfers, and subleases shall be reviewed by Airport staff and considered by the Airport Advisory Board. Approval by the City Council shall be required for any lease. Section 2.05 Requests for Proposals If Airport land and/or improvements exist or become available for leasing, the City may at its sole discretion and at any time, including upon receipt of an application for a lease or development, issue a request for proposals to assess the level of market demand and competitiveness for a proposed activity or use of Airport property. Any competitive proposal or bidding process shall comply with the City of Denton’s purchasing policies and directives. To determine whether it is appropriate to utilize competitive proposal or bidding, the City shall consider factors including, but not limited to: 1.The size and proposed use of the property. 2.The availability of similar property at the Airport. 3.Whether the property is going to be used for Aeronautical or Non-Aeronautical Activities. 4.Whether the property is developed or vacant. a.If the property is vacant, the proposed use; type of Improvements will be developed; number of employees to work on the property. b.Whether infrastructure (such as utility lines) needs to be installed or and if so, who will be responsible for such installation? 5.The financial strength and experience of the Applicant. 6.Economic impact the proposed use of the Airport property will have on the Airport. 7.Whether the proposed use of the Airport property will generate new revenue for the Airport or generate new activity at the Airport. The request for proposals shall also list the criteria the City will use to make its selection, including but not limited to, compliance with this Policy and the Principal Development Guidelines, the benefits generated by the proposed activity, and the long-term revenue generated by the proposal. The City may consider additional factors that it deems relevant to make its final decision regarding the use or disposition of the Airport premises and privileges in question. The City shall examine all applications and select a proposal for further lease negotiations, if, in the City’s opinion, it is in the best interest of the Airport and the community. Article III. The Lease Agreement Lease Agreements are designed to protect the public interest and contain more restrictive clauses than private-sector leases. Liabilities associated with possession and control of real property will be transferred to the Lessee to the greatest extent possible, including compliance with and subordination to all applicable federal, state, and local laws and regulations. Leases will additionally be subordinate to the City’s Grant Assurances, other applicable federal and state laws and regulations, and City ordinances and regulations. 21 The following are not inclusive of all lease terms, conditions, and obligations. Authority is granted to City staff to negotiate leases that promote the Principal Development Criteria and the objectives of this Policy. Section 3.01 Key Terms and Conditions (a) Recitals: All recitals shall include, at minimum, the desires of the City and the Lessee. All recitals shall be incorporated into the agreement by reference. (b) Premises: Each agreement shall meticulously describe the specific area of Airport property to be occupied, including precise boundaries and any shared or common areas. Leases will clearly outline the permitted activities and any restrictions on usage, ensuring compatibility with airport operations and safety regulations. (c) Use: Each agreement shall make clear the intended use of the premises. 1. Commercial aeronautical activities – The agreement shall identify the products, services, and/or facilities to be provided by the operator. The agreement may identify optional products, services, and/or facilities that may be provided by the operator with or without the approval of the Airport Director. 2. Non-commercial aeronautical activities – For non-commercial occupancy and/or use of the Airport land and/or improvements, the Agreement shall stipulate that the Lessee shall not offer or provide commercial products, services, or facilities or conduct commercial activities at the Airport or from the leased premises without an amendment of the lease agreement. 3. Non-aeronautical activities – Leasing Airport land and/or improvements for non- aeronautical activities is not generally favored by the City of the FAA. The City may, in its sole discretion, consider such use in the event the non-aeronautical use of Airport land and/or improvements does not interfere with the primary aeronautical use of Airport land and/or improvements and is not in violation of any legal requirements, including the Grant Assurances. If such use is contemplated, the applicant must prove that the subject Airport land and/or Improvements will not conflict with the existing or foreseeable aeronautical use of the property during the entire term of a proposed agreement. The leasing of Airport land and/or Improvements for non-aeronautical activities will not be allowed without the prior written consent of the FAA. 4. Prohibited Activities: All prohibited uses and activities of the premises shall be identified; however, no lease agreement will allow any activities prohibited by applicable federal, state, or local laws and regulations even if such use is not specifically set out by the lease agreement. 22 (d)Term The original term, commencement date, and ending date shall be conveyed in the Agreement. The term of the agreement shall be commensurate with the value of capital investment made by the Lessee into the leased premises and/or on the Airport, consistent with Article IV of this policy. (e)Rents and Fees The applicable rents and fees to be paid by the Lessee to the City shall be identified in the agreement. Rents and fees shall be established and adjusted in accordance with Article IV of this policy. (f)Improvements A description of the improvements, including minimum square footage of occupied space, shall be included in the agreement. The Lessee shall procure all necessary permits and certificates including, but not limited to, all City building, fire, safety, final certificate of occupancy, and meet other applicable requirements for improvements located on Airport property and within the legal boundaries of the Airport as identified on the Airport Layout Plan. Upon expiration of the term of the agreement, ownership of permanent improvements that have been made to the leased premises by the Lessee shall revert to the City. The City shall retain the right to require the demolition and removal of the improvements and the return of the premises to its original condition and character by the Lessee, normal wear and tear excepted. Section 3.02 Other Standard Terms and Conditions Additional terms and conditions within the Lease Agreement shall include, but are not limited to: 1.Procedures for entering into a sublease agreement for all or part of the leased premises, including approval processes and sublessee obligations, to prevent unauthorized use and maintain accountability. All sublease agreements shall be approved by the City Council. 2.Procedures for transferring lease interests, including city approval requirements and any associated fees or conditions, shall be clearly defined to ensure orderly transitions. All sales, assignments, or transfers shall be approved by the City Council. 3.Conditions for granting rights of first refusal. Rights of first refusal may only be granted where the property that is subject to the right of first refusal is contiguous to the leased premises. No right of first refusal may be granted without the payment of a fee or other financial consideration being provided to the City. Other conditions of the right of first refusal will be negotiated by Airport staff. The City retains the right to refuse requests for rights of first refusal. 4.Conditions, procedures, and penalties for defaulting on lease obligations, including notification requirements and remedies available to the city. 5.Requirements that the Lessee shall be responsible, at its own expense, for connection to and service of public utilities. 6.Requirements for Lessee insurance coverage, including liability, property, and workers' compensation insurance, shall be clearly outlined to mitigate risk and protect airport assets. 7.The right of the City to, with notice to the Lessee, inspect the leasehold and improvements for compliance with lease terms, federal, state, or local law, and/or Airport rules and regulations. 23 8.Requirements that ensure construction adheres to local development standards, building codes, environmental laws, Airport Minimum Operating Standards, and other applicable statutes and regulations in order to maintain the safety and integrity of airport property 9.Requirements for the Lessee to demonstrate possession of all necessary licenses, certifications, and permits required for activities permitted under the lease, with provisions for City verification and periodic updates. 10.Requirements for the Lessee to bear responsibility for the provision of utility service during their occupancy, including electricity, water, gas, sewage, and telecommunications services, with provisions for city oversight 11.Requirements for the Lessee to fulfill all tax obligations related to its activities, including property taxes, sales taxes, and income taxes, under applicable laws and regulations. 12.Requirements for Lessee to maintain accurate records of their operations, including financial statements, maintenance logs, and regulatory compliance documentation, subject to city audit and inspection. 13.Guidelines for holdover possession beyond the lease term, including rental adjustments and termination provisions, shall be established to address transitional periods and prevent unauthorized occupancy. 14.Any other conditions or requirements deemed appropriate by the City Section 3.03 Maintenance of the Leasehold The Lessee shall bear responsibility for ongoing maintenance of the leased premises and all improvements including, but not limited to, preventing the accumulation of debris and trash, abating fire and chemical hazards, abatement of nuisances, and the irrigation and maintenance of landscaping. The Lessee shall perform all work in accordance with applicable laws and regulations. To prevent the premature aging and deterioration of the improvements, the Lessee, at its own expense, shall conduct a condition assessment on all improvements no later than the tenth (10th) anniversary of the Commencement Date, and every five (5) year anniversary thereafter. The Condition Assessment shall be conducted by a person qualified to perform such an assessment in the State of Texas who, after being selected by the Lessee, shall be approved in writing by the City. The Condition Assessment shall examine, at minimum, the building’s structural components, electrical, plumbing, heating and cooling systems, and roof. Additionally, any pavement (asphalt or concrete) within the leasehold area shall also be examined. The Condition Assessment shall be provided to the City within thirty (30) days of the condition assessment deadline. Any deficiencies that are due to the Lessee’s failure to meet their obligations under the Lease shall be corrected by the Lessee at its expense. The Lessee shall within ninety (90) days provide to the Lessor a plan to correct such deficiencies identified in the Condition Assessment within one (1) year, unless extended in writing by the Airport Director, or designee. Failure to correct deficiencies identified in the Condition Assessment will constitute a breach of the lease agreement. Section 3.04 Additional Lease Requirements The Lease shall contain, or adopt by reference, all provisions required by the applicable law, including, without limitation, regulations promulgated by the FAA and Transportation Safety Administration, and assurances or agreements entered into by the City as a condition of any Federal Grant to the City for the Airport. The Lease or Permit shall be subordinate to any existing or future Federal grant assurances. 24 Article IV. Rents, Fees, and Agreement Term Airport lease rates and associated fees shall be consistent with FAA policy and Grant Assurance obligations, specifically the requirement that the Airport be as financially self-sustaining as possible and that leases are provided on a consistent and equitable basis. To the extent feasible, aeronautical use fees must be established on a cost-recovery basis while the use of Airport property for non-aeronautical facilities and/or services must be based on fair market value. Section 4.01 Rent During the lease term, the Lessee shall pay the Airport market rent for applicable land and facility(ies). Where a Lessee has constructed a Facility, the Lessee shall pay Market Rent for land only during the Term of its Lease. (a)Establishment of Market Rent Market rent shall be established through a property appraisal by a qualified appraiser, or a market analysis performed by a similarly qualified individual or firm. Appraisals for properties shall have been performed within the two years before the execution of a lease agreement. (b)Deviations from Market Rent Below market rent may only be offered where the Lessee constructs public infrastructure that benefits other properties (i.e., taxilanes, taxiways, roads, or utilities) or makes improvements to an existing facility that extends the useful life of the facility, as approved by the City. In such cases, the value of the reduced rental rate may not exceed the value of the Lessee’s investment in public infrastructure. In the event that the City develops all or part of the Improvements, to establish rents the City may, in its sole discretion, establish a reasonable rate of return on the investment. Rental rates for certain property uses, particularly non-aeronautical uses, may be based on a percentage of Lessee’s gross income from its use of the property. Section 4.02 Adjustment of Rent To account for regular cost inflation, Lease rents shall be adjusted no later than every two years after the commencement date of the lease. This adjustment proportion that the then-current United States Consumer Price Index for all urban consumers (“CPI-U”) for the Dallas-Fort Worth Bureau of Labor Statistics (1982-84 = 100) bears to that of the Commencement Date month. Section 4.03 “Through the Fence” Agreements FAA Grant Assurances require access to the Airport to be provided on an equitable basis. If an adjacent property requests access to the airport to conduct aeronautical activities, the property owner may be granted a “Through the Fence Agreement” granting them such access. As a condition of this access, the property shall pay market rent, including adjustments, under the terms outlined by this policy. The City may impose additional requirements as a condition of any “through the fence agreement” access and any request for such agreement is subject to review and approval by City Council. 25 Section 4.04 Fees The City shall reserve the right to establish and assess fees to recover the costs being incurred by the Airport associated with the planning, development, operation (including maintenance and repair), management, and marketing of the Airport. Fees may include, but are not limited to, fuel flowage fees, aircraft parking fees, based aircraft fees, operator permit fees, percentage of gross receipts fees, aircraft landing fees, and/or temporary or special use permit fees. All fees shall be identified in the City’s rates and fee schedule. Section 4.05 Lease Term Lease agreements shall specify the duration of occupancy. The length of a ground lease shall comply with federal and state regulations and be sufficient for the Lessee to amortize its capital investment into the leased premises. The lease term will depend on the value of capital invested in the leasehold. Airport staff shall, based on financial and market conditions, determine the appropriate investment to warrant a given lease term, considering additional factors such as site conditions, indirect benefits to the airport, and federal requirements, as applicable. On a case-by-case basis, the City may consider a significantly longer lease term; still subject to federal and state regulations; to support Airport property development and allow a Lesse to amortize its investment, based on the following criteria: 1.Significant initial capital investment beyond the minimum requirements 2.Significant additional capital investment in the current leased property 3.Services provided to other Airport tenants and uses 4.Exceptional job creation and/or impact to the local economy 5.Public infrastructure extension which will benefit other properties (i.e., taxilanes, taxiways, roads, or utilities) 6.Potential to attract other new aviation business or to significantly increase airport revenues Leases where no capital is invested into the property shall be limited to no more than 3 years. Section 4.06 Lease Extensions Extensions to leases shall only be permitted where the following criteria are met: 1.The extensions are at the Lessor's discretion; 2.The extensions are the result of an investment of capital on the premises for new improvements; or 3.The extensions are the result of a investment of capital in the leased premises that extends the life of existing improvements. In cases where an extension is the result of an investment of capital, the extension term shall be commensurate with the value of the capital investment. The City shall require that the rent paid for the term of any lease extension shall reflect the higher of the then-current rent or the fair market rent at the time of the extension. Rent shall be adjusted through the term of the extension as permitted within his policy. No extension or extensions may result in the total lease term extending beyond the statutory limit. 26 Article V. Reversion of Improvements to the City Each lease agreement shall require that, at the end of the lease term, Lessees shall surrender all leased premises to the Airport, including any improvements made during the lease period, unless otherwise specified in the lease agreement. Lessees may be required to remove any improvements not deemed necessary for the ongoing operation of the airport, restoring the leased premises to their original condition at the Lessee's expense. At the time of the reversion of the leased premises and improvements, the City may at its discretion: 1.Extend the current ground lease or enter into a new lease with the Lessee under the provisions of this policy; 2.Enter into a building lease at fair market value with a qualified Lessee; 3.Pursue redevelopment of the leasehold; or 4.Take any other action that is in the best interests of the Airport and in compliance with applicable laws and regulations. The provision of a lease extension or new lease agreement shall be based on the best long-term financial interest of the airport. A long-term financial analysis shall be provided to the City Council during any consideration of a lease extension or new lease agreement under this provision. 27 28 Friday Report - Council RequestsSummary of RequestCouncil Member Requestor Date Received Staff AssignedDepartmentCommentsStatus1Fair Chance Hiring Follow-UpCouncil Member Byrd09/22/24Kristi FogleCMOStaff responded to CMfollowing up with Chamberof Commerce2Fair Chance Hiring Follow-UpCouncil Member McGee09/20/24Kristi FogleCMOStaff communicated withCM on the follow-up.3Additional Signage for Paid Parking Mayor Hudspeth09/19/24Scott McDonaldDevelopment ServicesStaff working with paidparking lot owner forimproved signage.4Timbergreen StreetCouncil Member Holland10/02/24Public Works -StreetsStaff updated CM that theroad was evaluated andupon the evaluation isscheduled forresconstruction.5Tree RemovalCouncil Member Jester10/01/24Trevor CrainCapital Projects/Engineering/Public Works Staff updated CM thatthrees marked are notmarked for removal but fordata collection.6Mack Park RestroomsCouncil Member McGee09/28/24Gary PackanParksStaff contacted theresident and CM updated.Water line repair impactedthe operation and use ofrestrooms at the park.7Concession cash paymentCouncil Member McGee09/28/24Gary PackanParksStaff contacted theresident and CM updated.City concessionagreements are to havecard payment as anoption. Trends today aremoving to cashless.8Planned DevelopmentCouncil Member Holland09/28/24Scott McDonaldDevelopment ServicesStaff provided an update.9Kingsway DevelopmentCouncil Member Beck09/27/24Trevor CrainCapital Projects/Engineering/Public Works Staff's visit they co10VandalismCouncil Member McGee09/24/24Jessica RobledoPoliceStaff investigated it seemsto have been an isolatedincident no other reportshave been rerceived.11Status Updates on Development Projects Mayor Hudspeth09/23/24Tina FirgensDevelopment ServicesStaff provided Mayor withan update on each of theprojects.Page 1 of 1Exported on October 4, 2024 12:45:06 PM PDT29 Meeting Calendar City of Denton City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Criteria : Begin Date: 10/1/2024, End Date: 12/31/2024 Date Time Meeting LocationMeeting Body October 2024 10/3/2024 8:00 AM Cancelled 10/3/2024 8:30 AM Development Service Center 10/3/2024 4:00 PM Civic Center Community Room 10/3/2024 5:30 PM Development Services Center 10/7/2024 5:30 PM Council Work Session Room 10/7/2024 6:00 PM Council Work Session Room 10/7/2024 6:00 PM Cancelled 10/8/2024 9:30 AM Council Work Session Room 10/9/2024 11:00 AM Development Service Center 10/9/2024 3:00 PM Airport Terminal Meeting Room 10/9/2024 5:00 PM Council Work Session Room & Council Chambers 10/10/2024 3:00 PM Development Service Center 10/10/2024 4:30 PM Development Service Center 10/11/2024 1:00 PM City Council Work Session Room 10/14/2024 9:00 AM Council Work Session Room 10/14/2024 5:30 PM Development Service Center 10/14/2024 5:30 PM South Branch Library 10/15/2024 2:00 PM Council Work Session Room & Council Chambers 10/17/2024 5:30 PM Development Services Center 10/22/2024 2:00 PM Agenda Committee Downtown Economic Development Committee Public Art Committee Charter Review Committee Board of Ethics Board of Ethics Parks, Recreation and Beautification Board City Council Economic Development Partnership Board Airport Advisory Board Planning and Zoning Commission Health & Building Standards Commission Community Services Advisory Committee Sustainability Framework Advisory Committee Public Utilities Board Historic Landmark Commission Library Board City Council Charter Review Committee City Council Council Work Session Room & Council Chambers Page 1City of Denton Printed on 10/4/202430 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 10/23/2024 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 10/25/2024 9:00 AM Community Partnership Committee City Hall Conference Room 10/25/2024 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room 10/28/2024 9:00 AM Public Utilities Board Council Work Session Room 10/28/2024 5:30 PM Zoning Board of Adjustment Development Service Center 10/30/2024 10:00 AM Mobility Committee Council Work Session Room November 2024 11/1/2024 1:00 PM Bond Oversight Committee Development Service Center 11/4/2024 5:30 PM Board of Ethics Council Work Session Room 11/4/2024 6:00 PM Parks, Recreation and Beautification Board Civic Center Redbud Room 11/7/2024 8:00 AM Agenda Committee Council Work Session Room 11/7/2024 8:30 AM Downtown Economic Development Committee Development Service Center 11/8/2024 12:00 PM Community Services Advisory Committee Development Service Center 11/11/2024 5:30 PM Library Board CANCELED 11/13/2024 10:00 AM Animal Shelter Advisory Committee Animal Services Training Room 11/13/2024 11:00 AM Economic Development Partnership Board Development Service Center 11/13/2024 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 11/13/2024 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 11/14/2024 3:00 PM Health & Building Standards Commission Development Service Center 11/14/2024 5:30 PM Charter Review Committee Development Services Center 11/18/2024 9:00 AM Public Utilities Board Council Work Session Room 11/18/2024 5:30 PM Historic Landmark Commission Development Service Center 11/18/2024 5:30 PM Zoning Board of Adjustment Development Service Center 11/19/2024 2:00 PM City Council Council Work Session Room & Council Chambers 11/21/2024 3:00 PM Committee on Persons with Disabilities Development Service Center Page 2City of Denton Printed on 10/4/2024 31 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 11/22/2024 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room 11/27/2024 10:00 AM Mobility Committee Council Work Session Room December 2024 12/2/2024 5:30 PM Board of Ethics Council Work Session Room 12/2/2024 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 12/3/2024 2:00 PM City Council Council Work Session Room & Council Chambers 12/4/2024 12:00 PM Tax Increment Reinvestment Zone Number One Board Development Service Center 12/5/2024 8:00 AM Agenda Committee Council Work Session Room 12/5/2024 8:30 AM Downtown Economic Development Committee Development Service Center 12/5/2024 4:00 PM Public Art Committee Civic Center Community Room 12/9/2024 9:00 AM Public Utilities Board Council Work Session Room 12/9/2024 5:30 PM Historic Landmark Commission Development Service Center 12/9/2024 5:30 PM Library Board North Branch Library 12/11/2024 11:00 AM Economic Development Partnership Board Development Service Center 12/11/2024 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 12/11/2024 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 12/12/2024 3:00 PM Health & Building Standards Commission Development Service Center 12/13/2024 12:00 PM Community Services Advisory Committee Development Service Center 12/16/2024 5:30 PM Zoning Board of Adjustment Development Service Center 12/17/2024 2:00 PM City Council Council Work Session Room & Council Chambers 12/17/2024 2:00 PM Denton Public Facility Corporation Council Chambers 12/18/2024 10:00 AM Mobility Committee Council Work Session Room 12/20/2024 9:00 AM Community Partnership Committee City Council Work Session Room 12/27/2024 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room 12/31/2024 12:01 AM Downtown Plan Update Advisory Group Page 3City of Denton Printed on 10/4/2024 32 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 12/31/2024 2:00 PM City Council Council Work Session Room & Council Chambers Page 4City of Denton Printed on 10/4/202433 Meeting Date Item Legistar ID Departments Involved Type Estimated Time A. Board of Ethics Pitch 24-1832 Internal Audit Council Request 0:45 B. Towing Ordinance 24-1538 Police Department City Business 0:30 C. TIRZ Downtown Boundary 24-1929 Economic Development City Business 0:30 D. Short Term Rental 24-1920 City Manager's Office City Business 0:45 E. Two Minute Pitch:24-1494 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 3:30 A. Proposed State Legislative Agenda TBD City Manager's Office City Business 0:45 B. Business Inclusion Program TBD Procurement Council Priority 0:30 C. Council Appointed Position Complaint Review, Investigation, and Corrective Action Policy 24-1432 Human Resources City Business 0:30 D. Community Housing Initiatives Audit 23-2458 Internal Audit City Business 0:30 E. Two Minute Pitch:24-1495 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 3:15 A. Federal Legislative Briefing TBD City Manager's Office City Business 0:45 B. Homelessness Initiative Update TBD City Manager's Office City Business 1:00 C. Denton Renewable Resource Plan TBD Denton Municipal Electric City Business 0:45 D. Charter Review Committee Recommendations TBD City Manager's Office Council Request 1:00 E. Two Minute Pitch:24-1557 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 4:30 Other Major Items for Meeting: A. Warehouse Inventory Management Audit 24-2038 Internal Audit City Business 0:15 B. Charter Review Committee Recommendations TBD City Manager's Office Council Request 1:00 C. Community Village/FLUM Discussion TBD Development Services City Business TBD D. Homelessness Initiative Update Part 2 TBD City Manager's Office City Business TBD E. Two Minute Pitch:24-1557 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 2:00 Other Major Items for Meeting: A. Charter Review Committee Recommendations TBD City Manager's Office Council Request 1:00 B. Two Minute Pitch:24-1559 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 2:00 Other Major Items for Meeting: A. Audit of Animal Services 24-2036 Internal Audit City Business 0:30 B. Two Minute Pitch:24-1559 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 1:30 Other Major Items for Meeting: A. Two Minute Pitch:24-1559 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 1:00 Other Major Items for Meeting: Parking Minimum TBD Development Services Council Request TBD Audit of Park Management & Planning (30 min.)24-255 Internal Audit City Business TBD Leak Adjustment Ordinance 24-1632 Water Utilities City Business TBD Item Dates Departments Type Estimated Work Item Date Approved Department Estimated Hours to Complete Requestor Vote Centers Resolution 10/17/2023 City Manager's Office TBD CM McGee Election Day Holiday 6/18/2024 Human Resources TBD CM McGee December 3 Work Session (@2:00 p.m.) Regular Called Meeting (@6:30 p.m.) December 17 Work Session (@2:00 p.m.) Regular Called Meeting (@6:30 p.m.) October 22 Work Session (@2:00 p.m.) Special Called Meeting (Upon conclusion of the Work Session) November 19 Work Session (@2:00 p.m.) Special Called Meeting (Upon conclusion of the Work Session) Approved Council Pitches to be Scheduled NO MEETING - OCTOBER 1 - NATIONAL NIGHT OUT Council Priorities and Significant Work Plan Items to be Scheduled Other Major Items for Meeting: January 7 Work Session (@2:00 p.m.) Regular Called Meeting (@6:30 p.m.) January 14 Work Session (@2:00 p.m.) Special Called Meeting (Upon conclusion of the Work Session) Work Session To Be Determined NO MEETING - NOVEMBER 5 - ELECTION DAY October 15 Work Session (@2:00 p.m.) Regular Called Meeting (@6:30 p.m.) Other Major Items for Meeting: Tentative Work Session Topics and Meeting Information Updated: October 4, 2024 *This is for planning purposes only. Dates are subject to change.34 1 Street Closure Report: Upcoming ClosuresSCR Oct 7th - 13thStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Abby Way (5313)Glenngary WayJeffrey Dr10/14/24 11/08/24 Curb and Gutter RepairStreetsRoy San MiguelLane Closure2Stallion St (7809)Lakeview BlvdCoit Rd10/14/24 11/01/24 Concrete Panel RepairStreetsRoy San MiguelLane ClosureExported on October 4, 2024 11:35:27 AM CDT35 2 Street Closure Report: Current ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Aileen StPanhandle StBroadway St09/27/24 02/28/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure2Allred RdOakleaf TrlJohn Paine Rd04/26/24 10/30/24 New road for Allred forSagebrook PH llPublic Works Inspections Kent Bull RiversFull Closure3Audra LnStockton StMockingbird Ln07/29/24 11/08/24 Connection new storm drainageto existing City of Dentondrainage.Private DevelopmentZabdiel MotaLane Closure4Ave ACollins StEagle Dr10/08/24 10/11/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure5Ave CEagle DrHighland St08/26/24 12/31/24 Pavement replacement. EngineeringScott FettigFull Closure6Bernard StLindsey StFannin St08/26/24 12/31/24 Utility installations andpavement replacement.EngineeringScott FettigRolling Closure7Bonnie Brae StWillowwood StRailroad tracks10/07/24 10/11/24 Sanitary Sewer service lineinstallations crossing underBonnie BraeEngineeringRobin DavisFull Closure8Bonnie Brae St SWillowwood StWalt Parker Dr10/14/24 10/18/24 Sanitary Sewer service lineinstallations crossing underBonnie BraeEngineeringRobin DavisFull Closure9Central AveMaple StHighland St06/03/24 10/31/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure10Collins StAve ABernard St08/26/24 11/30/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure11Crescent StEctor StHillcrest St12/27/23 10/31/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure12Hickory Creek RdRiverpass DrFM 183003/13/23 12/31/25 Bridge InstallationEngineeringTracy BeckFull Closure13Hillcrest StPanhandle StCrescent St12/27/23 10/30/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure14Houston PlThomas StBradley St09/27/24 12/31/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure15Locust St NCoronado DrOrr St10/07/24 10/25/24 Sidewalk / Curb / Road Repair StreetsRoy San MiguelLane Closure16Loop 288University - US 380McKinney St09/23/24 10/21/24 Sidewalk InstallationEngineeringRobin DavisRolling Closure17Marietta StOak St WScripture St09/27/24 12/31/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure18Mayhill RdColorado BlvdEdwards Rd01/31/24 10/15/24 Various traffic lanes will remainclosed for final constructionactivities.EngineeringTracy BeckLane Closure19Montecito DrHickory Creek RdPalo Verde Dr05/28/24 10/11/24 Street ReconstructionStreetsRoy San MiguelFull Closure20Ocean DrAtlantic DrNautical Ln10/02/24 10/23/24 Sanitary Sewer installPrivate DevelopmentGavin PetnerFull Closure21Panhandle StEctor StAileen St09/27/24 10/31/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure22Ryan Rd WLauren's Pl RdLeisure Ln09/20/24 10/28/24 Work zone closure andflaggers, both lanes are openduring 9AM-3PM (utility lines &poles)OtherDelilah GarciaRolling Closure23Sycamore StExposition StRailroad Tracks on Sycamore 08/17/23 10/25/24 Paving improvements fromExposition to RailroadPublic Works Inspections Stephany TrammellFull Closure24Vine StTexas StSchmitz Ave10/07/24 10/11/24 Water service being installed for521 Texas, Road will be closedto Thru Traffic.WaterJason ShipleyFull Closure25Welch StHighland StHickory St08/26/24 12/31/24 Utility installations andpavement replacement.EngineeringScott FettigRolling Closure26Welch St SEagle DrHighland St06/03/24 11/30/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure27Willowood StLeslie StWestwood Dr09/30/24 10/30/24 Sanitary Sewer, water taps andstorm sewerPrivate DevelopmentGavin PetnerLane Closure Exported on October 4, 2024 11:32:52 AM CDT36 3 Street Closure Report: Completed ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Bernard StAcme StRoselawn Dr05/30/23 09/15/24 Utility installations andpavement replacement.EngineeringScott FettigFull Closure2Brandywine StCopper Ridge StBriarwood St08/26/24 09/20/24 Curb and Asphalt Repair StreetsRoy San MiguelLane Closure3Countess LnThoroughbred TrlCul-de-Sac09/02/24 09/27/24 Sidewalk RepairStreetsRoy San MiguelLane Closure4Edwards Rd@ Colorado Blvd@ Edwards/DCTA Railroad 06/07/24 09/13/24 NEW TRAFFIC PATTERNMayhill Road fromEdwards/DCTA RailroadCrossing to Colorado Blvd willbe permanently closed Tuesday9/3/24. Access to/from EdwardsRoad will take the newMayhill/Edwards Intersectionnorth of Colorado Blvd.EngineeringTracy L. Beck, PE, PMP Lane Closure5Edwards Rd (FKA MayhillRd)Leafy LnMayhill Rd (New Road) 06/07/24 09/13/24 NEW TRAFFIC PATTERNEdwards (formerly Mayhill) willopen to traffic from Leafy(Pecan Creek ManufacturedHome Community) north to thenew Mayhill Road. Traffic Signalwill be fully operationalThursday 9/5/24 pending noissues. Various traffic lanes ineach direction will remainclosed for final constructionactivities.Engineering OtherTracy L. Beck, PE, PMP Lane Closure6Elm StHickory StMcKinney St08/26/24 09/13/24 TxDOT Roadway reconstruction TXDoTSeth GarciaFull Closure7Farris RdKingsrowOak Bend Cir08/22/24 09/09/24 Street repairsStreetsJesse RodriguezFull Closure8Hickory St EBell AveLocust St09/25/24 09/25/24 5:30AM- 8:30AMOtherColt MorrisFull Closure9Locust StHickory StMcKinney St08/26/24 09/13/24 TxDOT Roadway reconstruction TXDoTSeth GarciaFull Closure10Mayhill Rd (SB)University Dr (US 380)Prominence Pkwy04/15/24 09/06/24 Installation of new drivewayapproachesPrivate Development PublicWorks InspectionsZabdiel MotaLane Closure11Oak / Hickory StBonnie Brae StN Texas Blvd08/15/24 09/20/24 DME Conduit and Caved inTrench RepairPublic Works Inspections Ethan KeithFull Closure12Ocean DrAtlantic DrNautical Lane08/26/24 09/05/24 Sanitary Sewer installPrivate DevelopmentGavin PetnerFull Closure13Panhandle StHeritage TrlStanley St07/15/24 09/20/24 Drive ApproachPublic Works Inspections Collin ColeFull Closure14Potomac PkwyShenandoah TrailStone Mountain Dr08/19/24 09/13/24 Concrete Panel repairStreetsRoy San MiguelLane Closure Exported on October 4, 2024 11:32:58 AM CDT37