AGENDA

2014 BOND OVERSIGHT COMMITTEE

January 30, 2018

After determining that a quorum is present, the 2014 Bond Oversight Committee of the City of

Denton, Texas, will convene in a regular meeting on January 30, 2018, at 12:00 p.m., in the City

Hall Conference Room, at City Hall, 215 E. McKinney Street, Denton, Texas at which the following

items will be considered:

OPEN MEETING:

1. Consider approval of minutes of February 23, 2017, Bond Oversight Committee.

2. Receive a report, hold a discussion, and give staff direction regarding the creation of a Capital

Projects Department and the City’s efforts to improve the delivery of capital projects.

3. Receive a report, hold a discussion and give staff direction regarding the reallocation of project

funds and the estimated completion costs for associated projects.

4. Under Section 551.042 of the Texas Open Meeting Act, respond to inquiries from the 2014 Bond

Oversight Committee 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.

CERTIFICATE

I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City

of Denton, Texas, on the ______ day of January, 2018 at ____ o’clock p.m.

CITY SECRETARY

NOTE: The City Hall Conference Room at City Hall is handicap-accessible in accordance with the

Americans with Disabilities Act. The City will provide sign language interpreters for the hearing

impaired if requested at least 48 hours in advance of the scheduled meeting. Please call the City

Secretary’s office at (940) 349-8309 or use telecommunications devices for the deaf (TDD) by

calling 1-800-RELAY-TX so that a sign language interpreter can be scheduled through the City

Secretary’s office.

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AGENDA INFORMATION SHEET

AGENDA DATE: January 30, 2018

DEPARTMENT: Finance

DCM: Bryan Langley

SUBJECT

Consider approval of 2012 and 2014 Bond Oversight Committee minutes of February 23, 2017.

BACKGROUND

The draft minutes from the 2012 and 2014 Bond Oversight Committee meeting of February 23,

2017, are attached for the Committee’s consideration and approval.

EXHIBITS

1. Draft Minutes – February 23, 2017

Respectfully submitted:

Antonio Puente, Jr., 349-7283

Director of Finance

2014 BOND OVERSIGHT COMMITTEE AGENDA: Item #1

AGENDA

2012 and 2014 BOND OVERSIGHT COMMITTEE

February 23, 2017

Draft Minutes

After determining that a quorum was present, the 2014 Bond Oversight Committee of the City of

Denton, Texas, convened in a regular meeting on February 23, 2017, at 12:03 p.m., in the City Hall

Conference Room, at City Hall, 215 E. McKinney Street, Denton, Texas at which the following

items will be considered:

PRESENT: Committee Chair, Randy Robinson; Committee Member, Janet Shelton;

Committee Member, Sarah Hoffman; Committee Member, Brandon

McCleskey; Committee Member, Tim Crouch; Committee Member, Jerry

Clark; Committee Member, Jo Williams

STAFF PRESENT: Todd Hileman, City Manager; Bryan Langley, Deputy City Manager /

COO; Jon Fortune, Assistant City Manager; Chuck Springer, Director of

Finance; Antonio Puente, Assistant Director of Finance; Mark Nelson,

Director of Transportation; Frank Payne, City Engineer; Keith Gabbard,

Street and Drainage Superintendent; Kenneth Hedges, Assistant Fire

Chief; Emerson Vorel, Director of Parks and Recreation; John Davis,

Director of Engineering Services; Roger White, Police Deputy Chief;

Nancy Towle, Budget Manager; Robin Paulsgrove, Fire Chief; Lisa

Collaud, Business Analyst; Tim Fisher, General Manager of Water; P.S.

Arora, General Manager of Wastewater; and Kristy Odom, Recording

Secretary.

The following items were considered:

OPEN MEETING:

1. Call to order, announce quorum and introductions of the 2012 Bond Oversight Committee.

Announced Committee Members present, Tim Crouch, Jerry Clark, and Jo Williams.

2. Hold a discussion and appoint a Chairperson for the 2012 Bond Oversight Committee .

Due to no quorum, unable to select a committee chair for the 2012 Bond Oversight Committee.

3. Call to order, announce quorum and introductions of the 2014 Bond Oversight Committee .

Announced Committee Members present, Randy Robinson, Janet Shelton, Sarah Hoffman,

Brandon McCleskey, and Tim Crouch. Due to a quorum being present meeting was called to

order.

4. Consider approval of minutes of February 16, 2016 of the 2014 Bond Oversight Committee.

Committee Member, Tim Crouch made a motion to approve minutes. Committee Member, Janet

Shelton seconded the motion. Motion carried unanimously.

5. Receive a report, hold a discussion, and give staff direction regarding the current status of

funded reports.

Director of Finance, Chuck Springer reviewed the currently funded projects, and explained the

current schedule for the sale of the remaining authorization from the 2012 and 2014 bond

elections. For federal tax and arbitrage purposes the funds for 2012 and 2014 projects are

combined into the same fund, and funds are spent for street reconstruction projects that are ready

for reconstruction based on utilities being relocated. Deputy City Manager, Bryan Langley

explained that in FY 15-16 the planned two million for street reconstruction from the 2014

authorization was not issued. He stated that we are a little behind on these projects, and currently

focusing on completing the scheduled projects. Committee Member, Janet Shelton questioned

the renovation of the communication center and criminal investigations division for the Police

Department. Roger White, Deputy Police Chief explained that the scope for the communications

center has been reduced to an expansion in the existing room and adding additional consoles for

staff. Staff is currently considering a larger communications center, which could be in a future

city hall or a standalone dispatch and emergency operations center. Mark Nelson, Director of

Transportation mentioned that it has been discussed with the Union Pacific Railroad to

incorporate more property into the quiet zone projects. The City may not be able to get approval

from all partners to expand this project and we would then go back to the original quiet zone

plan.

6. Receive a report, hold a discussion, and give staff direction regarding the issuance timeline

for General Obligation Bonds for the 2012 and 2014 bond election projects.

Springer explained the planned sales over the next three years are the same as planned last year in

order to keep debt rate level. Langley mentions that the 2012 and 2014 bond program updates

are available every quarter in the financial reports and posted on the City’s website. He

suggested another bond committee meeting in the next six months to get an update on project

statuses.

7. Under Section 551.042 of the Texas Open Meeting Act, respond to inquiries from the

Audit/Finance Committee 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.

With no additional business to be addressed, the Committee adjourned at 12:43 p.m.

________________________________ _______________________________

RANDY ROBINSON KRISTY LOOPER COMMITTEE CHAIR RECORDING SECRETARY

CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS

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AGENDA INFORMATION SHEET

AGENDA DATE: January 30, 2018

DEPARTMENT: Capital Projects

ACM: Mario Canizares

SUBJECT

Receive a report, hold a discussion and give staff direction regarding the creation of a Capital

Projects Department and the City’s efforts to improve the delivery of capital projects.

BACKGROUND

The purpose of this item is to provide the committee an understanding of the formation of a new

department within the City of Denton organizational structure. In an effort to more efficiently

manage, coordinate, communicate and deliver capital projects, the Capital Projects Department

was established in the spring of 2017 by the City Manager’s Office. The primary goals of the

Capital Projects Department are to:

1. Deliver capital projects on time and on budget.

2. Communicate the development and progress of capital projects initiated and/or

sponsored by the City of Denton.

3. Coordinate capital projects and their delivery with internal and external stakeholders.

4. Make fiscally responsible decisions to ensure the successful and safe delivery of the

City’s capital projects.

5. Ensure that all capital projects promote and/or enhance the public safety and welfare

of the citizens and business owners of the City of Denton.

6. Ensure that the failure to deliver capital projects in the past is not repeated.

It is to this purpose that the Capital Projects Department was created and has been focused. A

presentation and discussion of the ongoing efforts to meet these primary goals is attached.

EXHIBITS

1. Capital Projects Presentation

Respectfully submitted:

W. Todd Estes, P.E., 349-8917

City Engineer

2014 BOND OVERSIGHT COMMITTEE AGENDA: Item #2

January 30, 2018

Capital Projects Department

WHY A NEW

DEPARTMENT?

Re-organized staff to be more strategic and improve project

delivery.

Several staff vacancies caused communication gaps and

misconceptions of project funding status.

Coordination of capital projects was not efficient or clear to

all stakeholders.

Projects and funding sources were aging significantly

beyond their original anticipated lifespan.

Eroding construction dollar translating to lost buying power.

ACCOMPLISHMENTS

Regular, monthly coordination efforts are in place with TxDOT, Denton County, UNT,

TWU and our emergency services providers.

Began construction on Mayhill Road and Bonnie Brae.

Secured funding with help from NCTCOG and ITS for the

Mayhill/DCTA Bridge.

Technical Manuals have been revised and updated.

Construction Details have been revised and updated.

Made key staff changes to improve efficiency and effectiveness.

STAFF CHANGES

City Engineer

Deputy Director Operations

Streets

Drainage

Deputy City Engineer

Senior Engineer PM

Consultant PM

Senior Engineer PM

Consultant PM

Senior Engineer PM (VACANT)

Consultant PM

Senior Engineer Design

Graduate Engineer

Graduate Engineer

Technician

Technician

Deputy City Engineer

Development Review Manager

City Floodplain Administrator

Technician

Review Engineer

Technician

Consultant Contract

Real Estate

Manager

Land Agent

Land Agent

Land Agent

Intern

Consultant Contract

Public Works Inspections Manager

ROW Inspector II

ROW Inspector I

Inspector II

Inspector I

Inspector I

Inspector II

Inspector I

Inspector I

Inspector II

Inspector I

Inspector I

City Traffic Engineer

Traffic Engineer

Graduate Engineer

Bicycle/Pedestrian/

ADA Coordinator

Traffic Operations Supervisor

Signals Crew Leader

Technician

Technician

Technician

Signs & Markings Crew Leader

Technician

Technician

Technician

Administrative Assistant

Asst. Director (PMO)

PMO Manager

Project Coordinator

Project Controls Specialist

KEY IMPROVEMENTS

In order to ensure better project coordination, a program management office (PMO) is

being established.

Recognition that capital projects have an opportunity cost component

by outsourcing major design projects.

Created a capital projects delivery team that is focused

on cradle-to-grave project delivery.

Emphasis has been placed on accessibility and communication.

Created a fully separated traffic management division to better serve

the engineering, planning and operational needs of the City.

KEY IMPROVEMENTS

Development Review coordination has been reviewed and is in the process of becoming more

effective.

Ensure that project budgets are complete and understood.

Completing review RFQ process to pre-qualify engineering consultants for

current and future projects.

Engaged in continuous, meaningful communication with franchise

utilities (i.e. ATMOS) to keep projects moving.

Better use of economies of scale for projects by bundling.

Clearly defining roles and responsibilities of work teams.

Number of Street Segments Completed by Year (Total Segments = 403)

2013 2014 2015 2016 2017 2018 2019 2020

31 18 27 53 49* 58 74 93

*In 2017, O&M funded projects

complemented the 49 bond

funded projects for a total of

61 segments completed.

Street Segments by Year

0

25

50

75

100

125

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

2012 Segments (208 Total) 2014 Segments (195 Total) 2012 Expenditures 2014 Expenditures Total Bond Expenditures

Street

Segments

2012 Proposition 1 (Street Reconstruction) = $20,000,000.00

2014 Proposition 1 (Street Reconstruction) = $24,000,000.00

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

2014 2015 2016 2017 2018 2019 2020

Pecan Creek Drainage Improvements Eagle Drive Drainage Improvements Downtown Storm Sewer Trunk Line

Magnolia Drainage Phase II Drainage Totals

Drainage Projects by Year2012 Proposition (No Drainage) = $ 0.00

2014 Proposition 3 (Storm water) = $ 8,545,000.00

Signal Projects by Year 2012 Proposition (No Signals) = $ 0.00

2014 Proposition 1 (Traffic Signals) = $ 3,000,000.00

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2014 2015 2016 2017 2018 2019 2020

Locust & Hickory Locust & Oak Elm & Hickory Elm & Oak

Bell & Mingo Teasley & Dallas Drive Bell & Hickory Bell & McKinney

Locust & McKinney Elm & McKinney Signal Totals

INITIATIVES FOR 2018

Provide training and professional growth opportunities for all departmental staff.

Establish a public engagement process & education program to better communicate

with the citizens and business owners of the City of Denton.

Provide regular monthly capital project updates.

Coordinate projects across all City departments (PMO).

Establish regular communication and coordination with

the railroads, school districts and franchise utilities.

Front-load projects in the design and planning phase to

minimize costs in the construction phase.

NEXT STEPS

Complete all design work and property acquisitions for remaining 2012 & 2014 Bonds

Projects in 2018.

Increase streets and signals production through outsourcing construction in annual

contracts (bundling).

Utilize performance incentives and disincentives to drive efficiency and value in

construction contracts.

Begin planning and initial design of upcoming efforts ahead of future debt programs to

stabilize production rates, ensure consistent delivery schedules, allocate appropriate

resources and budget accordingly.

Return to Bond Oversight Committee with an in depth review of all capital projects in

about 4 to 6 weeks.

QUESTIONS

W. Todd Estes, P.E.

Director of Capital Projects/City Engineer

940-349-8917

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AGENDA INFORMATION SHEET

AGENDA DATE: January 30, 2018

DEPARTMENT: Finance

DCM: Bryan Langley

SUBJECT

Receive a report, hold a discussion, and give staff direction regarding the reallocation of project

funds and the estimated completion costs for associated projects.

BACKGROUND

Since the last meeting of the Committee, several projects have progressed and staff is seeking

direction to proceed with the reallocation of project funds. Below is a listing of those reallocations:

1. In order to expedite new traffic signals in the City, staff reallocated $1.5 million in bonds

from street reconstruction. This reallocation provided the full funding ($3 million) for

traffic signals sooner than was originally planned and leaves $2.5 million available for

street reconstruction along with approximately $6 million in bonds remaining from the

2012 bond program (full amount issued was $20 million). The remaining funding ($21.5

million) for street reconstruction will be issued over the remaining 3 years of the program

(FY ‘18, $6 million; FY ‘19, $7.75 million; and FY ‘20, $7.75 million) . Prior to this

reallocation, the former Director of Finance notified the Committee Chair about this

reallocation. Staff is now providing this information as a follow-up to the Committee. The

following is a listing of the funded signal projects and their status:

a. Locust/Hickory Signal – $350,000. Estimated completion date is April 2018.

b. Locust/Oak Signal – $340,000. Completed.

c. Elm/Hickory Signal – $250,000. Estimated completion date is April 2018.

d. Elm/Oak Signal – $250,000. Estimated completion date is April 2018.

e. Bell/Mingo Signal – $380,000. Estimated design completion date is April 2018.

Construction is estimated to be completed by October 2018.

f. Teasley/Dallas Drive Signal – $70,000. Currently under design.

g. Bell/McKinney Signal – $380,000. Survey and signal design completed by

October 2018. Construction is estimated to be completed by June 2019.

h. Bell/Hickory Signal – $380,000. Survey and signal design completed by December

2018. Construction is estimated to be completed by August 2019.

i. Locust/McKinney – $300,000. Survey and signal design completed by October

2018. Construction is estimated to be completed by October 2019.

j. Elm/McKinney – $300,000. Survey and signal design completed by December

2018. Construction is estimated to be completed by December 2019.

2. Vela Soccer Complex – On December 5, 2017, staff provided the City Council an update

on this project which included an Engineer’s estimate of $5,505,913. Based on available

funding for this project, staff informed the City Council that the project was approximately

$2,330,000 over the available funding. As a result, the City Council requested that staff

bring back options for closing this shortfall. On December 12, 2017, staff provided the

2014 BOND OVERSIGHT COMMITTEE AGENDA: Item #3

City Council the option of deferring or reducing the scope of two projects included in the

2014 Bond Program which totaled $1,755,000. The two projects included $1,005,000 (full

funding) for the acquisition of future park/library property and $750,000 (partial funding)

for the design of the Southwest Park. The Southwest Park project will have $505,000

remaining that may be used for a master plan. Additionally, staff recommended that an

additional $575,000 be transferred from the City’s General Fund to this project. The

following is the anticipated schedule of events for this project:

a. Bid solicitation was sent out on December 19, 2017.

b. Bid opening is scheduled for January 18, 2018.

c. Contract award in March 2018.

d. Construction completed by December 2018.

A total of seven bids were received on January 18, 2018 and all appear to be under the

Engineer’s estimate. The proposed pricing on base bids leaves flexibility in selecting

alternative options and determining work that may be performed internally.

3. Traffic Operations Facility – The 2014 GO Bond Program included $1.5 million for the

design and construction of a new transportation facility to be located at the southeast corner

of Mingo and Ruddell. After a preliminary design was completed for this facility, it was

determined that the funding would not be adequate to meet the department’s needs.

Additionally, and in concert with an updated master facility plan as well as the availability

of a large warehouse at the City’s landfill, staff is researching the possibility of co-locating

the Traffic Operations Division at this new location along with the City’s Materials

Management and Centralized Warehousing Department. The City’s Bond Counsel has

provided an opinion that the $1.5 million in GO bonds may be used to renovate this existing

city facility rather than to design/construct a new facility. Exhibit 1 provides additional

details regarding the landfill warehouse which staff will discuss further with the committee.

Staff from various departments will be available during the meeting to respond to any questions

the Committee may have on any of the projects listed above. Furthermore, staff is seeking the

Committee’s approval to proceed with the above reallocations.

EXHIBITS

1. Traffic Operations Facility Presentation

Respectfully submitted:

Antonio Puente, Jr., 349-7283

Director of Finance

CIP COMMITTEE UPDATETRAFFIC OPERATIONS FACILITY

MARK NELSON - TRANSPORTATION JANUARY 30, 2018

SITE MAP

2014 Bond Election:

• $1.5 M

• Replace existing 3,900 sq. ft. facility

• Enhanced Technology Facility

Current Location

TWU Golf

Course

Proposed Construction Site

Project Status:

• 2016 preliminary design

• New 10,000 sq. ft. facility at Service Center

• Estimated cost - $2.2 M

• Project on hold

Floor Plan – Preliminary Design

TRAFFIC OPERATIONS FACILITY RECOMMENDATION

651 Mayhill Rd

Landfill

651 Mayhill Road:

• 80,000 sq. ft. facility

• Owned by Solid Waste – Not fully leveraged

• Retrofit a portion of building for Traffic Operations

CONCLUSION

ORIGINAL PLAN:

• 2013-14 – INITIAL ESTIMATE DEVELOPED

• 2014 BOND - $1.5 M

• 2016 DESIGN ESTIMATE - $2.2 M

• LOCATED AT SERVICE CENTER

• PROJECT ON HOLD

RECOMMENDED PLAN:

• 651 MAYHILL - UNDERUTILIZED FACILITY

• FINISH OUT ~ 10,000 FEET OF WAREHOUSE FOR

TRAFFIC OPERATIONS

• INITIATE CONSTRUCTION – SIX TO NINE MONTHS

• ADDITIONAL SITE IMPROVEMENTS – CITY FUNDS

• BUILDING CAN BE RETROFITTED WITH $1.5 M

2014 BOND FUNDS

• NO ADDITIONAL BONDS WILL BE NEEDED