Hi Amit!
Sounds like you have some pretty creative plans for your coop!
Ventilation and moisture levels are pretty important. Make sure you don't have any drafts. I design and build custom coops here in Indiana (zone 6). The sides of your coop that face into the wind should have minimal open area to reduce the drafts. Frostbite is primarily caused by too much moisture in the air, not the actual cold. Respiratory illnesses are also linked to poor ventilation.
I also recommend the deep litter method. It will end up producing additional heat for the coop in the winter. Your birds themselves will produce heat as well. You may find that you don't need the compost pile in the bottom. The birds' droppings are pretty wet and tend to add just enough moisture to the deep litter. I would be concerned that a damp compost pile would be too moist for the cold winters.
It's okay to keep your hens in the coop for the winter but they should be provided with some time in a run or supervised in your yard. Never leave them unattended in an urban setting if you don't have a fence over 4 ft tall. Your hens could fly over the fence or other critters/pets in the neighborhood could get into your yard (even with a higher fence). As for your dog, make sure you are present if they are out together. One of our dogs was such a good girl when we were out. If we went in, even for a minute, she would chase them until they dropped.
Good luck with your girls! Neighbors bribed with fresh eggs normally end up being very supportive.

- Christina
"Sitting at our back doorsteps, all we need to live a good life lies about us. Sun, wind, people, buildings, stones, sea, birds and plants surround us." - Bill Mollison