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Minutes February 02, 1988CITY OF DENTON CITY COUNCIL MINUTES February 2, 1988 435 The Council convened into the Work Session at 5:30 p.m. in the Civil Defense Room. PRESENT: Mayor Stephens; Mayor Pro Tem McAdams; Council Members Alexander, Ayer, Boyd, Gorton and Hopkins. ABSENT: None Item #3 was moved ahead in the agenda order. 3. The Council received an update on the bids for police sedans. John McGrane, Executive Director of Finance, stated that the low bidder had forgotten to include the police package in his bid. There were four options that the Council could consider to correct the error: (1) force the low bidder to provide the cars at the bid price, (2) award the bid to the next lowest bidder but bill the low bidder for the difference in price, (3) rebid the entire package, and (4) go the the next lowest bidder and allow the low bidder to withdraw his bid. Staff was recommending option (4) as the bidder was a first time bidder for that kind of a package and staff felt that it was an honest mistake. Consensus of the Council was to go to the next lowest bidder. The Council returned to the regular agenda order. 1. The Council received a response from the Finance Department regarding the Report to Management of Deloitte, Haskins & Sells. John McGrane, Executive Director of Finance, presented the Council with staff's audit response. See Exhibit "A" for details. 2. The Council received a -report collection of parking ticket fines. concerning the Roger Nelson, Administrative Aide, reviewed the process of current parking ticket procedures. He suggested procedures to update the ticket process which included computerizing the input of tickets, receiving names and addresses for tickets through the Texas Department of Public Safety, issuing a warning letter after the time period for payment had expired, institutinq a late penalty for tickets, issuing arrest warrants for past due tickets, and pursuing tickets on the County level. 436 City of Denton City Council Minutes February 2, 1988 Page 2 Consensus of the Council was to seriously consider computerizing past parking tickets and to hold off on a late penalty until new tickets could be printed. 4. The Council was to hold a discussion regarding location and date for the Council-Manager goals and Plans Update Seminar. This item was not considered. 5. The Council convened into Executive Session to discuss legal matters (possible litigation concerning the airport improvement contract), real estate, personnel and board appointments. No official action was taken. The Council then convened into the Regular Session at 7:00 p.m. in the Council Chambers. PRESENT: Mayor Stephens; Mayor Pro Tem McAdams; Council Members Alexander, Ayer, Boyd, Gorton and Hopkins. ABSENT: None 1. The Council considered approval of the minutes of the work session of December 29, 1987 and the regular meeting of January 5, 1988. McAdams motion, Alexander second to approve the minutes as presented. Motion carried unanimously. 2. The Council received a proclamation for "Child Passenger Safety Awareness Week". Mayor Stephens presented the proclamation to Michael Jez, Chief of Police. 3. The Council received a presentation from The Southland Corporation to the Denton County Friends of the Family. Karen Rascoff, Southland Corporation, presented a check for $1,157 to the Friends of the Family from the 7-11 employees in the City of Denton. Item 7.D. was moved ahead in the agenda order. 7. The Council considered adoption of an ordinance authorizing the issuance, sale, and delivery of City of Denton General Obligation bonds, series 1988, levying the tax to pay same, and approving and authorizing instruments and procedures relating thereto. City of Denton City Council Minutes February 2, 1988 Page 3 437 Council Member Hopkins left the meeting with a potential conflict of interest. Frank Medanich,. First Southwest Corporation, presented the Mayor with the bids for opening. Ten bids had been received for the bond sale from the following corporations with effective interest rates: (1) Bache - 6.9875; (2) Clayton Brown - 7.105; (3) Merrill Lynch - 7.0414; (4) Bear Stearns - 7.0009; (5) First Chicago - 7.156; (6) First Republic - 7.017; (7) Shearson Lehman - 7.154; (8) Manufacturer's Hanover - 7.198; (9) Underwood Neuhaus - 6.957323; and (10) MBank - 6.91925. ~edanich stated that he and his colleagues would retire to tabulate the bids. Council Member Hopkins returned to the meeting. Council returned to the regular agenda order. 4. The Council considered a request from the Denton Girls Softball Association for. a waiver of a Parks and Recreation policy regarding advertising in City parks. (The Parks and Recreation Board considered and did not recommend approval.) Carl Stocker, Vice-President of the Denton Girls Softball Association, stated that he did not like the language "the Parks and Recreation Board did not recommend approval". He stated that the Board had met and discussed the item. A motion was made but died for a lack of a second. Stocker read the philosophy of the Association and gave the background of the organization. He stated that the Association was needing to raise money due to budget cuts. They were proposing the selling of advertising boards to be placed on the fences around the ball fields at Denia Park. The charge of the board would be ~175 and would place 20-25 around the fields. He was requesting a wavier of the Parks and Recreation policy regarding advertising in City parks. The signs would be up from March through June and the Association would be responsible for the maintenance and storage of the signs. Council Member Boyd asked if anyone else would be using the park during the time the signs would be displayed. Stocker replied that during that time period, only the Softball Association would be using the Denia ball fields. Mayor Pro Tem McAdams stated that the Park Board had reasons for not allowing advertising in the parks. She felt that other groups would have similar requests if ~he Softball Association's request was granted. 438 City of Denton City Council Minutes February 2, 1988 Page 4 There was a concern regarding the esthetics of the signs and the type of advertising allowed in the parks. The Board felt that they would not be able to discriminate against certain types of advertising. Council Member Ayer felt that this was a significant change in policy and was reluctant to change the policy for one specific group. He felt the issue needed to be studied by the Parks and Recreation Board with carefully thought out guidelines and specifications. Council Member Gorton stated that the minutes from the Parks and Recreation Board did not reflect the lengthy discussion the members had and felt that a joint meeting with the Parks and Recreation Board and the City Council might be useful in discussing the issue. Debra Drayovitch, City Attorney, stated that a change in the current ordinance and a written contract was necessary if the Council decided to approve the request. Alexander motion, Ayer second to deny the request at that present time. Motion carried unanimously. The Council returned to Item 7.D. Council Member Hopkins left the meeting with a potential conflict of interest. 7. Ordinances D. The Council considered adoption of an ordinance authorizing the issuance, sale, and delivery of City of Denton General Obligation bonds, series 1988, levying the tax to pay same, and approving and authorizing instruments and procedures relating thereto. The following ordinance was considered: No. 88-022 AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1988, LEVYING THE TAX TO PAY SAME, AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING THERETO Frank Medanich, First Southwest Corporation, stated that he had checked all of the bids and recommended MBank Capital Markets receive the bid with an effective interest rate of 6.91925. City of Denton City Council Minutes February 2, 1988 Page 5 Paul Horton, McCall, Parkhurst and Horton, stated that City Charter required bond counsel to make a recommendation with respect to bond sales and also recommended the bid from MBank. McAdams motion, Alexander second to adopt the ordinance. On roll vote, McAdlams "aye," Alexander "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously with Hopkins abstaining. Council Member Hopkins returned to the meeting. Mayor Stephens left the meeting to sign the bond documents. Mayor Pro Tem McAdams continued with the meeting. Se Public Hearings A. The Council considered adoption of ordinance amending Appendix B-Zoning of the Code of the City of Denton, Texas, to provide for a definition, parking requirements, and zoning district use designation for flea markets, providing for a severability clause; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; and providing for an effective date. The Mayor Pro Tem opened the public hearing. No one spoke in favor. No one spoke in opposition. The Mayor Pro Tem closed the public hearing. Cecile Carson, Urban Planner, stated that several property owners had requested permits similar to those issued for flea markets. However, the Planning Department and Building Inspections were not able to issue Certificates of Occupancy for particular sites since there was no definition of a flea market. The proposed ordinance would allow, with a specific use permit, a flea market in an agricultural district, a commercial district, a light industrial district, heavy industrial district or permitted with a planned development in any district. The use would be for inside or outside of a building and for a variety of uses. Council Member Alexander asked if the ordinance would provide definite limits on the length of time the location would be used for such an operation. 439 440 City of Denton City Council Minutes February 2, 1988 Page 6 Carson replied that the specific use permit had a provision to set time limits on a use. The following ordinance was considered: NO. 88-019 AN ORDINANCE AMENDING APPENDIX B-ZONING OF THE CODE OF THE CITY OF DENTON, TEXAS, TO PROVIDE FOR A DEFINITION, PARKING REQUIREMENTS, AND ZONING DISTRICT USE DESIGNATION FOR FLEA MARKETS; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF 92,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motion, Hopkins second to adopt the ordinance. On roll vote, Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Pro Tem McAdams "aye." Motion carried unanimously. Mayor Stephens returned to the meeting. Consent Agenda Council Member Boyd asked that Item 6.A.1. be pulled for special consideration. Hopkins motion, Gorton second to approve the Consent Agenda with the exception of Item 6.A.1. Motion carried unanimously. A. Bids and Purchase Orders: 2. Bid #9820 - Sedans, Pickups, and Trucks B. Plats and Replats Consider approval of preliminary and final replat of part of Lot 27 of the Foxhunt Addition. 2. Consider approval of preliminary plat of Summerwind, Phase II. Item 6. A.1. was considered. A. Bids and Purchase Orders: 1. Bid #9805 - Airport Improvements City of Denton City Council Minutes February 2, 1988 Page 7 Rick Svehla, Deputy City Manager, stated that staff was recommending, after consultation with the Attorney, that both sections A and C of the airport improvements be approved with the removal of the sanitary sewer work. New rules from the State on trenching specifications and safety were inadvertently omitted. All ¢~f the perspective bidders were notified of the new rules but in order to make sure that there would be no conflict, staff was recommending that the sewer improvements be removed. Gorton motion, McAdams second to approve 6.A.1. with the exceptions of 8 and 9 of Section C. Motion carried unanimously. 7. Ordinances A. The Council considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for the purchase of materials, equipment, supplies or services. The following ordinance was considered: NO. 88-020 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS ~HEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motion, McAdams second to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. B. The Council considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for public works or improvements. The following ordinance was considered: NO. 88-021 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. 441 442 City of Denton City Council Minutes February 2, 1988 Page 8 McAdams motion, Hopkins second to adopt the ordinance subject to the changes outlined. On roll vote, McAdams "aye," Alexander "ayet" Hopkins "ayet" Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. C. The Council considered adoption of an ordinance withdrawing the award of a contract for the purchase of police sedans; and awarding the contract for such purchases to Dave Krause Dodge. The following ordinance was considered: NO. 88-023 AN ORDINANCE WITHDRAWING THE AWARD OF A CONTRACT FOR THE PURCHASE OF POLICE SEDANS; AND AWARDING THE CONTRACT FOR SUCH PURCHASES TO DAVE KRAUSE DODGE; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motion, McAdams second to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "ayes" and Mayor Stephens "aye." Motion carried unanimously. E. The Council considered adoption of ordinance amending Ordinance No. 84-25 to correct an error in the metes and bounds description; and declaring an effective date. (Z-1621) The following ordinance was considered: NO. 88-024 AN ORDINANCE AMENDING ORDINANCE NO. 84-25 TO CORRECT AN ERROR IN THE METES AND BOUNDS DESCRIPTION; AND DECLARING AN EFFECTIVE DATE. Cecile Carson, Urban Planner, stated during the review of documentation, the Right-Of-Way Agent discovered an error in the volume and page number of the annexation. This was a clerical error and had no effect on the annexation process. Hopkins motion, McAdams second to adopt the ordinance. On roll vote, McAdams "ayes" Alexander "aye," Hopkins "ayes" Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. City of Denton City Council Minutes February 2, 1988 Page 9 F. The Council considered adoption of an ordinance amending Ordinance No. 85-197 to correct an error in the metes and bounds description; and declaring an effective date. (A-22) The following ordinance was considered: NO. 88-025 AN ORDINANCE AMENDING ORDINANCE NO. AN ERROR IN THE METES AND BOUNDS DECLARING AN EFFECTIVE DATE. 85-197 TO CORRECT DESCRIPTION; AND Cecile Carson, Urban Planner, stated that this was a correction of a bearing error in the annexation. It was a clerical error and would not effect the annexation. Alexander motion, Hopkins second to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. G. The Council considered adoption of an ordinance authorizing the execution of a change order to a contract between the City of Denton and Tonto Construction, Inc. for an increase in the contract price; and providing an effective date. The following ordinance was considered: No. 88-026 AN ORDINANCE AUTHORIZING THE EXECUTION OF A CHANGE ORDER TO A CONTRACT BETWEEN THE CITY OF DENTON AND TONTO CONSTRUCTION, INC. FOR AN INCREASE IN THE CONTRACT PRICE; AND PROVIDING AN EFFECTIVE DATE. Rick Svehla, Deputy City Manager, stated that these were items that would modify the water treatment plant. Plans were done based on assumptions regarding structural changes that needed to be modified. Hopkins motion, McAdams second to adopt Change Order 911. Council Member Gorton questioned the need to change the color selection of the bathroom fixtures for $1,000. Svehla replied that Bob Nelson, Executive Director of Utilities, was not present at the meeting but would research the item and inform the Council as soon as possible. 443 444 City of Denton City Council Minutes February 2, 1988 Page 10 Council Member Ayer stated that he read the item as not only changing the color of the fixtures but also including a change in ammonia piping. He felt that it was not all for bathroom color by the way the back-up was written. Mayor Stephens asked if the Council would want to table the item until Bob Nelson could be present. Debra Drayovitch, City Attorney, stated that Change Order Number 11 was the only one which required Council approval. Change Order Number 1 did not require Council approval as it was only for ~1,000. It could be approved by the City Manager. She stated that the question had also come up at the Public Utility Board meeting. Unfortunately, she was not able to recall the exact details of the item. Gorton stated that if the City Manager had the authority to look into that issue and approve the change or not approve the change, he felt comfortable with the Manager's decision. Mayor Pro Tem McAdams stated that further in the back-up materials was the statement that the change was to modify the fixtures in addition to changing the color. The change as she interpretated it was not just for color change but also for a modification of the fixtures. Svehla stated that staff would provide Council with an explanation on the item and that if the Council was not satisfied with the explanation, the item could be deleted if in fact it was just a color change. He had been told earlier that it was more than just a color change. Boyd suggested that in the future back-up materials be more specific, especially such cases where the change may involve more than just a color change. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. H. The Council considered adoption of an ordinance designating and establishing a school safety speed zone on Hickory Creek Road from its intersection with Montecito Drive and Montecito Drive from its intersection with Hickory Creek Road; reducing the maximum prima facie speed limit for such portions of said streets from thirty (30) to twenty (20) miles per hour during certain hours; providing a penalty of a fine not to exceed five hundred dollar~ (~500.00); and providin~ a severability clause; and declaring an effective date. (McNair School) City of Denton city Council Minutes February 2, 1988 Page 11 The following ordinance was considered: NO. 88-027 AN ORDINANCE DESIGNATING AND ESTABLISHING A SCHOOL SAFETY SPEED ZONE ON HICKORY CREEK ROAD FROM ITS INTERSECTION WITH MONTECITO DRIVE AND CONTINUING FOR A DISTANCE OF 790 FEET; AND ESTABLISHING A SCHOOL SAFETY SPEED ZONE ON MONTECITO DRIVE FROM ITS INTERSECTION WITH HICKORY CREEK ROAD AND CONTINUING A DISTANCE OF 775 FEET; REDUCING THE MAXIMUM PRIMA FACIE SPEED LIMIT FOR SUCH PORTIONS OF SAID STREETS FROM THIRTY (30) TO TWENTY (20) MILES PER HOUR DURING CERTAIN HOURS; PROVIDING A PENALTY OF A FINE NOT TO EXCEED FIVE HUNDRED DOLLARS ($500.00); PROVIDING A SEVERABILITY CLAUSE;' AND DECLARING AN EFFECTIVE DATE. Rick Svehla, Deputy City Manager, stated that this item had been recommended by the Citizens Traffic Safety Commission and staff was recommending approval. Gorton motion, Alexander second to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. I. The Council considered adoption of an ordinance designating and establishing a school safety speed zone on Farris Road from its intersection with Silver Dome Road to its intersection with Grant Parkway and on Grant Parkway from its intersection with Farris Road to a point south of the fifth drive for approximately 1,150 feet; reducing the maximum prima facie speed limit for such portions of said streets from thirty (30) to twenty (20) miles per hour during certain hours; providing a penalty of a fine not to exceed five hundred dollars ($500.00); providing a severability clause; and declaring an effective date. (Hodge School) The following ordinance was considered: NO. 88-028 AN ORDINANCE DESIGNATING AND ESTABLISHING A SCHOOL SAFETY SPEED ZONE ON FARRIS ROAD FROM ITS INTERSECTION WITH SILVER DOME ROAD TO ITS INTERSECTION WITH GRANT PARKWAY AND ON GRANT PARKWAY FROM ITS INTERSECTION WITH FARRIS ROAD TO A POINT SOUTH OF THE FIFTH DRIVE FOR APPROXIMATELY 1,150 FEET; REDUCING THE MAXIMUM PRIMA FACIE SPEED LIMIT FOR SUCH PORTIONS OF SAID STREETS FROM THIRTY (30) TO TWENTY (20) MILES PER HOUR DURING ~ERTAIN ~OUR~; ~ROVI~IN~ A P~NALT¥ O~ A FINE NOT TO EXCEED FIVE HUNDRED DOLLARS (~500.00); PROVIDING A SEVERABILITY CLAUSE; AND DECLARING AN EFFECTIVE DATE. 445 446 City of Denton City Council Minutes February 2, 1988 Page 12 Rick Svehla, Deputy City Manager, stated that the Citizens Traffic Safety Commission had recommended approval of the item. McAdams motion, Hopkins second to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. J. The Council considered adoption of an ordinance approving an interlocal agreement between the City of Denton and the Town of Little Elm for the impoundment and disposition of dogs and cats; and declaring an effective date. The following ordinance was considered: NO. 88-029 AN ORDINANCE APPROVING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF DENTON AND THE TOWN OF LITTLE ELM FOR THE IMPOUNDMENT AND DISPOSITION OF DOGS AND CATS; AND DECLARING AN EFFECTIVE DATE. Bill Angelo, Director of Community Services, stated that the item was an update of the 1984 agreement with the Town of Little Elm which reflected the City's increased costs over the years for the holding and disposition of animals at the Denton Animal Control Center. Gorton motion, Alexander second to adopt the ordinance On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "ayet" Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. K. The Council considered adoption of an ordinance authorizing the Mayor to execute an amended and restated security agreement between the City of Denton and Flow Regional Medical Center, Inc. Council Member Gorton left the meeting with a potential conflict of interest. The following ordinance was considered: NO. 88-030 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AMENDED AND RESTATED SECURITY AGREEMENT BETWEEN THE CITY AND FLOW REGIONAL MEDICAL CENTER, INC.; AND PROVIDING AN EFFECTIVE DATE. City of Denton City Council Minutes February 2, 1988 Page 13 Boyd motion, Alexander second to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously with Gorton abstaining. Council Member Gorton returned to the meeting. 8. Resolutions A. The Council considered approval of a resolution amending the Denton Development Guide by changing the overall concept plan and land intensity areas; and declaring an effective date. The following resolution was considered: RESOLUTION NO. - A RESOLUTION AMENDING THE DENTON DEVELOPMENT GUIDE BY CHANGING THE OVERALL CONCEPT PLAN AND LAND INTENSITY AREAS; AND DECLARING AN EFFECTIVE DATE. David Ellison, Assistant to the City Manager, stated that the issue concerned the establishment of a moderate node per Development Guide and Procedures at the proposed intersection of Colorado Blvd. and Lakeview Blvd. RVM Realty, formerly Miller of Texas, owned 1200 plus acres located between Highway 380 east and I35. The zoning for 690.8 acres between East McKinney and Highway 380 east was approved by motion of the City Council in February 1986. A formal ordinance was adopted in January of 1987. The existing Lakeview zoning plan for the 690.8 acres had an intensity level that exceeded the Development Guide standards by approximately 108%. In addition, there were two unsanctioned, not established in the Development Guide, moderate nodes at the intersections of Blagg Road and Lakev!Lew Blvd. and Mills Road and Lakeview Blvd. Miller of Texas and now RVM Realty did not zone the additional property that they owned and controlled between East McKinney south to I35. They came in approximately one year ago to start discussions of the process to bring that property into some satisfactory zoning classification. At that time, staff proposed to them several major issues, one of which was an attempt to significantly reduce the existing intensity/density of the existing Lakeview zoning or the property to the north of East McKinney to Highway 380. The other issue was to try and increase the amount of private land, not Corps of Engineer property, dedicated to and set aside for both public parks as well as public schools. The third issue was to keep any future zoning that might be established and that had not already been 448 City of Denton City Council Minutes February 2, 1988 Page 14 established within the Development Guide guidelines and to also look at future zoning as well as any revisions to the existing zoning, with the thought of possible policies coming out of the Land Use Committee's work. The bottom line was that it was not a perfect proposal with respect to the addition of another node but when coupled with a significant reduction in the density/intensity of the existing Lakeview zoning and also combined with an increase in park land dedication, the plan was reasonable. Major issues were: (1) the proposal called for a dramatic reduction in intensity of the approved Lakeview plan and the proposed intensity of Southview would not exceed the standards of the proposed plan or the existing Guide if an additional node were approved. (2) The existing Lakeview plan had a density level of 16.0 units per acre. The proposed revisions had a density level of 9.5 units per acre. The proposed Southview plan had a density of 7.0 units per acre and the combined proposal was for 8.7 units per acre. (3) The existing public use percentage of the development would increase in the existing Lakeview plan from 4% to a proposed revision of 8% and there was a proposed percentage of usage in the Southview plan at 10% for a combined percentage of 8%. (4) The property to be dedicated for parks and schools would be increased from 31 acres and a ~250,000 payment with 8.4 acres of parks and 22.6 acres of schools to 70.5 acres to be donated and additional school sites to be negotiated in Lakeview. In proposed Southview, 26.0 acres would be dedicated for park area plus an additional 10 acres for a joint school/parks. (5) Two unsanctioned moderate nodes would be eliminated in Lakeview and one additional node was being requested. Plans were in the office and negotiations were going on with the representatives of RVM. Staff did not anticipate any increases in any densities or proposed intensities. Council and the Planning and Zoning Commission would have an opportunity to review any subsequent zoning plans and potentially negotiate some additional decreases. Council Member Boyd asked if intensity of Southview would comply with the recommendations of the Development Plan. Ellison replied yes. Boyd asked with the changes, how did the Lakeview portion comply with the Development Plan. Ellison stated that it would still not come within the Plan guidelines. But it would significantly reduce the extent to which it was exceeding the standards. City of Denton City Council Minutes February 2, 1988 Page 15 Boyd asked if it was Ellison's understanding that there was density approved by a prior Council for the Lakeview project that would not likely be used. Ellison stated that past representatives had commented that not all of the densJ~ty would be used but staff used the "worse case scenario". Council Member Ayer asked why the proposed park land was divided so unevenly with much more in Lakeview than in Southview. Ellison stated that it was based on the distribution of acreage in the two areas. There was more land in Lakeview than in Southview. Ayer stated that at the time that the Lakeview project was approved by the Council, it was said that the road would be built but there was no mention of creating a utility district to build that road. Ellison stated that that was correct. Mayor Pro Tem McAdams stated the two nodes that would be eliminated, were never approved in the first place. Given that a proposal was in existence that suggested that the Lakeview density would be reduced considerably, still considerably higher than anything that citizen's groups had reasonably approved of in the past, one had to remember that when that proposal initially came before Council, one of the arguments for all of that density/intensity was the need for the road and that it simply could not be afforded without that kind of density/intensity. Immediately, however, upon passage of that zoning case with all of the density, the owners went to Austin to get permission for a road utility district to have those who lived there pay for the road all together. That completely eliminated the reason that had been stated as the most pressing one for breaking all of the rules of the Development Guide, at the time. Staff also stated that the amount of park land that was being donated at that time was quite adequate for what was being proposed and it was significantly less than what was there now. Looking at the whole proposal and being now asked to depend upon some changes that were proposed, given that there was an approved zoning situation in hand, one could only speculate how much of whatever was proposed here would come to pass or how much of whatever was there in the first place which was already approved, would be done. When someone was able to trade two non-e~i~tent node~, never approved, for a whol~ new one and when one managed to get the kind of intensity that had been allocated for that parcel of land and were able to trade 449 45O City of Denton City Council Minutes February 2, 1988 Page 16 that back so that they were now only 50% over and put every other developer who might develop in that area at a distinct disadvantage, it seemed that one needed to look at the whole thing with a grain of salt and to look at any kind of recommendations that one got with regard to this particular parcel, park land and all the rest of it, with some skepticism. Council Alexander stated that he felt that the density/intensity was far too high in the original Lakeview agreement and was very pleased to now see some significant reduction. It might not be exactly what was wanted but it was a better deal than what was had a present. The decision before the Council at the present was what he considered to be a better deal than at present. Under the circumstances before the Council that evening, the prudent decision was to vote to accept the proposal. Council Member Hopkins stated that she was appreciative of the efforts of staff and the developers for reducing the density. She felt that what was before them was Southview, not Lakeview. Lakeview had been done and zoned and good compromises had been made in that area. Mayor Stephens asked why the suggestions for eliminating the two nodes and establishing the new one came before the zoning was requested for Southview. Ellison stated that that was the policy procedure in the Development Guide. If an area which was known going in exceeded the standards, as with Oakmont, theoretically the process was to amend the policy, then take subsequent action - as opposed to amending the policy through that action. Mayor Stephens stated that that was not the procedure followed for Lakeview. Mayor Pro Tem McAdams felt that the Council was trading away something that the Council had not given the developers based on a promise that when the developers came in for something else, that would be changed also. Mayor ~ephens asked when the zoning for Southview would come to Council. Ellison stated that a formal application and proposal was on file in the Planning Office. Mayor Stephens asked if that would be just for $outhview or for Southview/Lakeview combined. City of Denton City Council Minutes February 2, 1988 Page 17 Ellison stated that it would be for both combined based on the proposed concept that had been negotiated with additional opportunities for more specific kinds of zoning comments by the Planning and Zoning Commission and City Council. Mayor Pro Tem McAdams stated that she preferred to see, before granting any additional intensity at all in that area, the formal proposal. Alexander motion, Hopkins second to approve the resolution. Council Member Gorton asked if the resolution failed, would the developers still be able request a zoning change. Deputy Svehla replied that if the resolution failed and Southview and Lakeview were pooled together, staff would have to follow the existing Guide's recommendations. Council Member Boyd stated that as he understood it, Council was being asked to increase the density at the one node. They were also being told that as a consideration for that increase, the density at two other nodes would be decreased. He did not see that reduction in front of him, only the increase at the one location. He had seen before where representations had been made and then almost before the meeting was over, the agreement went away. He wondered why he did not see the whole proposal in front of him rather then just the one part increasing the density. If the purpose was to decrease the density in Lakeview, why was that not in front of them as well. Ellison stated that the fact the two nodes were expected to be reduced was referenced in the body of the resolution. Attorney Drayovitch responded as an expectation, not as a contract. Ellison added that a formal zoning request was in the Planning Office and he could understand the Council's concern. But the developers would be very foolish to take the plan and propose any additional increase in the density. I.f anything, the developers should be thinking of further reductions. Deputy Svehla stated that the Council had not zoned Southview as yet. Because of that, the developers could not develop any of that property yet. In effect, if the developers presented something different than what was being discussed, the Council could not approve the zoning. 451 452 City of Denton City Council Minutes February 2, 1988 Page 18 Ellison replied that staff was not trying to pre-set the true zoning agenda although it was not possible to completly avoid getting into those kinds of issues. Staff really was, based on the Development Guide policy, trying to separate the intensity policy question from the actual zoning questions, which Council and Planning and Zoning would have further unlimited opportunities to consider. Attorney Drayovitch stated that the intensity policy .was considered and evaluated in determining whether to approve a zoning change. Therefore, they were related. Deputy Svehla replied that if the resolution was not passed, staff would have to analyze Southview on a totally low intensity basis and would have to recommend denial. Ellison stated that in the zoning proposal in the Planning Office, the developers had increased some of the lot sizes. On roll vote, McAdams "nay," Alexander "aye," Hopkins "aye," Gorton "nay," Ayer "nay," Boyd "nay," and Mayor Stephens "nay." Motion failed with a 5-2 vote. B. The Council considered approval of a resolution authorizing Amendment No. 1 to the airport commercial lease between the City of Denton and Fox-51 Limited; and providing for an effective date. The following resolution was considered: RESOLUTION NO. R88-009 A RESOLUTION AUTHORIZING AMENDMENT NO. 1 TO THE AIRPORT COMMERCIAL LEASE BETWEEN THE CITY OF DENTON AND FOX-51 LIMITED; AND PROVIDING FOR AN EFFECTIVE DATE. Rick Svehla, Deputy City Manager, stated that the amendment would change the way Fox-51 would lease the land between itself and the existing County road. McAdams motion, Gorton second to approve the resolution. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. C. The Council considered approval of a resolution authorizing the City Manager to submit an application to the Texas Rental Rehabilitation Program Fund for a grant; and providing an effective date. City of Denton City Council Minutes February 2, 1988 Page 19 The following resolution was considered: NO. R~[-O10 A RESOLI3TION AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION TO THE TEXAS RENTAL REHABILITATION PROGRAM FUND FOR A GRANT; AND PROVIDING AN EFFECTIVE DATE. Boyd motion, Alexander second to approve the resolution. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. D. The Council considered approval of a resolution accepting Amendment No. 1 to the grant agreement with the Federal Aviation Administration; and providing an effective date. The following re:solution was considered: RESOLUTION NO. RS~-Oll A RESOLUTION ACCEPTING AMENDMENT NO. 1 TO THE GRANT AGREEMENT WITH THE FEDERAL AVIATION ADMINISTRATION; AND PROVIDING AN EFFECTIVE DATE. McAdams motion, Gorton second to approve the resolution. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. e Miscellaneous matters from the City Manager A. Rick Svehla, Deputy City Manager, stated that the December budget report was in the Council's back-up materials for their review. 10. There was no official action taken on Executive Session items of legal matters, real estate, Personnel or board appointments. 11. New Business The following items of New Business were suggested by Council Members for future agendas: 454 City of Denton City Council Minutes February 2, 1988 Page 20 A. Council Member Gorton requested a joint work session with the Parks and Recreation Board scheduled for the next regular meeting. B. Mayor Pro Tem McAdams requested a report relative to the sign ordinance and the Beautification Committee in conjunction with the request from the Denton Girls Softball Association. C. Council Member Boyd requested the Council to consider as a future budget item or a current budget item, various training programs to improve the sensitivity of various City Departments to the problems of race relations, specifically in areas of high public contact. D. Mayor Stephens asked for study topics for the NLC policy committee. He also requested nominations for the APPA voting representative from the City of Denton. 12. The Council did not convene into Executive Session. 13. With no further business, Gorton motion, McAdams second to adjourn the meeting. Motion carried unanimously. The meeting was adjourned at 9:11 p.m. J~Ni~E~ WALTERS C~TY SECRETARY CITY OF DENTON, TEXAS 2856C "EXHIBIT A" 455 CITY OF DENTON - AUDIT RESPONSE JANUARY 28, 198~ C~SH RECEIPTS Observation: The library uses a cash register when collecting cash receipts; however, the cash register tape is not sent to the Cashier's office along with the deposit slips, checks and cash. Recommendation: In order to maintain tighter controls over cash received at the library, the cash register tape should be ~orwarded to the Cashier. The Cashier shoula then ensure that the register tape agrees with the cash ana checks collected. Response: The Finance Department staff has contacted the library Director through a personal visit and by memorandum ~atea January 4, 1988. The Director agreed that the liDrary will forward the cash register tape to Cashiering at least twice a week. Cashiers will ensure that the tape agrees with the cash aha checks collected. Any discrepancies will De reconciled with the library in a timely fashion. Mail Remittance Machine Observation: Utility bills and property tax mail receipts are openea manually, cash receipts are totalled ana recorded manually, and credits to customer accounts are input manually. The process is slow ana does not allow for proper segregation of duties (City personnel have access to cash and records). Machines exist (which can be leased or purchased) which can "reaa" utility stubs and automatically record the credit to the customers' accounts. It is a much faster and more accurate process than manual recording. It would also act as an additional control as City personnel would be requires to balance cash received to credits to customers' accounts. These or similar machines could probably also be used for property tax payments. Recommendation: Consider leasing or purchasing mail remittance machines for utility Dill an~ property tax receipts. 4.56 Deloitte, Haskins & Sells Audit Response Page 2. Response: We have contacted several venoors and will De receiving proposals for potential options. However, preliminary indictions are that the equipment is expensive and may be outside the possibilities of this year's budget. Upon review of the various alternative systems and associated costs, we anticipate this to be a budgetary item and will provide a package for consideration in the 19~8/89 budget process. Lock Box Observation: receipts. The City does not use a lock box system to deposit cash Recommendation: Consider opening a lock box at the City's depository bank. A lock box system should strengthen internal accounting control and reduce the City's staff time involved in processing and depositing cash receipts. Response: We are considering the lock box possibility and have initiated contact regarding such with our depository bank. Upon response from our depository bank, we will review the cost/ benefit of potential implementation. Deloitte, Haskins & Sells Audit Response Page 3. 457 P URCHA SI N_________~G Written Quotations Observation: The City has an internal policy of requesting bios on items (non-emergency) over $6,000. Bids are received by telephone and written quotations are seldom received. Recommendation: Written quotations ShOuld be received from all vendors requested to submit bids prior to the issuance of a purchase order. Response: The wirtten policies and procedures for the Finance/Purchasing Department have been revised and are currently being rewritten. Written quotations anO/or bids will be received as required by the Purchasing Agent for purchased items on services between the amounts of $5,000 and $10,000. Open Purchase Observation: The City has over thirty (30) open purchase orders with various vendors. 0?here are not written policies on utilization, purchase authorization and monetary limits. Recommendation: Review all open purchase orders and limit the number to only those absolutely essential for service provision. Written policies for utilization should be developed and incorporated in the Purchasing Policy and Procedure manual. All open purchase orders should be reviewed on an annual basis. Response: The practice of having open purchase orders of thirty (30) days will be automatically eliminated with the full implementation of the Extended Purchasing Software package. It is anticipated that this package will be operational by March 15, 1988. Vendors not Submitting Bids Observation: Ven{Iors who do not submit a formal bid for items over $10,000 are telephoned by the Purchasing Division and requested to provide a verbal reason for not submitting a cost quotation. Recommendation: A standard written format specifying reasons for not submitting a cost quotation should be developed and incorporated in the bid package. These forms should be returned to the Finance Director. 4.5 8 Deloitte, Baskins & Sells Audit Response Page 4. Response: We have now initiated the practice of contacting and modifying "no response" vendors. Purchasing is developing a form that will be included in the bia packages that are sent out. All responses will be sent to the Finance Director and a copy forwarded to the Purchasing Department. Policies anQ Procedures Observation: The existing purchasing 'policies and proceQures are not current and are under revision. Recommendation: Complete the revision for approval Dy the City Council. Procedures for the new automated inventory control system, open purchase orders, written quotations for purchases of ~6,000 to ~10,000 aha written guidelines for no-bid response should be incorporated. Response: The staff agrees with the recommendations anO is in the process of revising and updating the purchasing policies and procedures. Deloitte, Haskins & Sells Audit Response Page 5. 459 ACCOUNTIN~ PROCEDbRES Lease Accounting Observation: Lease payments are not properly recorded in the general ledger. Therefore, audit adjustments must be made at year-end. Recommendation: Use the lease payment/amortization schedules which the City already maintains to properly record principal reductions and interest expense on capital lease payments. Response: The staff agrees with the reconumendation and, for capital lease payments, will quarterly record principal and interest adjustments on the general ledger. Cancellation of Documentation Observation: Several voucher packages were reviewed in which some or all of the pages were not cancelled (stamped paia). According to the City's internal control procedures, every page in the voucher package should be stamped as paid. Recommenaation: The City should take appropriate steps to ensure that each page in the voucher package is stamped "paia" when the check is issued. For checks over $3,000, the check signer who reviews the documentation anG initials the signed check should also note that the documentation has been appropriately cancelled. Response: The City's internal control proceGure is established to stamp the vendor invoice 'paid." In order to facilitate this process, the accounting clerks attempt to stamp all documents within the package in order to expedite review procedures. We will attempt to ensure that the clerks at least stamp the invoice "paid." We are also investigating an alternative method that will deface the document.s on a larger scale and thus increase productivity. We are exploring utilizing the creativeness of our Machine Shop to produce the type of equipment necessary; otherwise, the cost would be prohibitive. Initialing Checks G~eater Than ~3{000 Observation: Checks were noted which exceeded ~3,000 but were not initialed by an authorized check signer indicating that the support was reviewed prior to release of the cineck. 46O Deloitte, Haskins & Sells Audit Response Page 6. Recommendation: The authorizeQ check signer who initials checks exceedin9 ~3,000 should be provided with a check register at the time he is given the checks. He should then scan the check register for all checks written over ~3,000 to ensure he has reviewed every one. Response: The staff agrees with the recommendation on procedures; however, we are investigating the process of reviewing checks in excess of $10,000, which will coincide with purchasing procedures that have been previously amended by City Council. Inventor~ Observation Observation: During the year-end utility warehouse physical inventory observation, we noted the following: o Numerous mathematical errors were noted on the inventory count tags. o The inventory counts were not reviewed and tested by a second counter. o Inventory instructions were not written. Recommendation: Each counter should be provided a calculator. Ail inventory counts should be tested and initialed by the second counter. Instructions for counting physical inventory should be printed and distributed to each counter. Response: The staff agrees with the recommendations. Calculators will be furnished to counters when applicable and, if necessary, recounts on required items or sections of inventory will be conducted. Also, instructions for counting physical inventory will be distributed prior to the actual taking of the year-eno inventory. Safekee~in~ Receipts Observation: The City does not receive original safekeeping receipts of the collateral pledged against the City's bank deposits from the custodian bank. Recommendation: Request the custodian bank to forward the original sa£ekeeping ~eceipt to the city. This procedure would ensure that the securities belonged to the city in the event of any bank uncertainties. Response: We have made this request to the depository bank and they have declined to meet this request. We do receive BCR paper copies of the receipts that clearly indicate the securities are pledged to the City of Denton. We have made a second request to the bank and have not received a response as of yet. 461 Deloitte, ~askins & Sells Audit Response Page 7. Observation: Currently, the City relies on its system of internal accounting control and annual independent audit to provide assurance that the financial statements are fairly presented. Nhile this reliance is adequate, an internal audit function would provide an additional control level and establish a system which would better monitor operations and the accounting system of the City. Recommendation: Consider establishing an internal audit function. Internal auoitors' duties and responsibilities vary widely among cities. Frequently, internal auditors are involved with operational reviews and special projects as contrasted with the traditional role of financial auditing. The internal auditor should have no authority over, nor responsibility for, the activities examined. In order for objectivity to be maintained, we suggest that the individual performing this function report directly to the City Manager and report semi-annually to the Audit Committee of the Board. This type of arrangement should provide a level of internal control through segregation of responsibility and give the internal auditor the authority required to operate across departmental lines to best perform the job. Response: The staff agrees with this recommendation and will once again submit a budget pack, age for consideration in 1988. 462 Deloitte, haskins a Sells Audit Response Page 8. Observation: The City has not designated to one individual the responsibility to review and investigate compliance by all City departments with the annual budget. Recommendation: Consider establishing a budget review function by either designating a department or individual with the oversight responsibility of budgetary compliance. Response: The staff agrees with this recommendation ano has considered this item in past budget reviews; however, due to the fiscal restraints funding was not provided. This recommendation will also be submitted as a supplemental package in the 1988/89 budget consideration. Deloitte, Haskins & Sells Audit Response Page 9. 463 Preparation Of the grantee Performance Report Observation: The Grantee Performance Report for the period 7/18/86 - 7/1~/87 did not reconcile to the general ledger. In aadition, one page of the report contained mathematical errors. The report was amended by CDBG office personnel after the errors were brought to their attention during the audit. Recommendation: The Grantee Performance Report should be prepared by the CDBG office using the accounting records/general ledger. A formal reconciliation shoulQ be prepared by CDBG and then reviewea and approved by the Finance Depart~ent. Response: The .Accounting division will review, anQ a formal approval procedure will be initiated, to approve future CDBG grant reports to ensure consistency with accountin9 records. Any variances will be reconciled with the CDBG office prior to submission of the report. Utilizing Report ~riter Function Observation: Financial statistics, taken from the LGFS reports, are being input into the Wangi word processing system or into Lotus spreaQsheets to allow for ad hoc reporting or other changes. The American Management System's report writer function is not being utilized by the user departments. The AMS report writer is ~rceived to be extremely complicated to use and users have not been properly trained. Recommendation: Users should be trained to use the report writer function or other report writing systems should be considered. Response: The staff agrees that some report writing/communicaton system is essential and will investigate alternative methods of utilizing one of the systems. 4 64 Deloitte, Haskins & Sell Audit Response Page 10. CAFETERIA PLAN Observation: A cafete~;~ plan is a fringe benefit plan that receives special tax treatment under Section 125 of the Internal Revenue Code. The plans allow employees to have qualifieQ expenditures deducted from their earnings on a pre-tax basis. Some of the most significant qualifieQ expenditures are group insurance deductions, child care deductions, ana medical reimbursement account deductions. Recommendation: Consider establishing a cafeteria plan, as it coula be an effective and efficient tool for improving the compensation package offered City employees. It could increase employees' take-home pay and enhance their job satisfaction. Response: The staff agrees with this recommendation and has already implemented the cafeteria plan program for employees. Deloitte, Baskins & Sells Audit Response Page 11. 465 OPERATIONS Passwords Observation: Passwords are not changed on a timely basis. Currently, passwords are protected only once a year. To provide adequate confidentiality of passwords, they should be changed more frequently. Additionally, programmer log-on identification codes and passwords are taped on the wall in Data Processing, allowing accessibility to unauthorized personnel. Recommendation: Institute mandatory procedures for a more frequent and consistent change of passwords; for example, every 30 to 60 days. Protect the confidentiality of programmer log-on identifications and passwords by emphasizing to the programmers: 1) that any transaction executed using his password will De his responsibility, and 2) all log-on identifications and passwords should be memorized. A library of all passwords should be controlled by the Data Processing Director in a protected computer file or under lock anQ key. Response: At present there are approximately 175 sign-ons and passwords, and to change all passwords on a 30- or 60-day basis would be extremely time-consuming, costly and confusing; however, a new procedure has been instituted to change approximately 1/6 of the sign-ohs and passwords each month, thereby changing everyone's sign-on and password twice a year. At this time the sign-ons and passwords are stored in a computer file that can only be accessed by the Director of Data Processing and key data processing staff members. Propram Chanpe Control Observation: Unauthorized changes may be made to production programs. Program changes are seldom made because the majority of the software is purchased. However, programmers have unlimited access to the source code. A transaction/activity log is produced but not reviewed on a timely basis. Recommendation: Review the transaction/activity log on a periodic basis to determine that all programs and program change were authorized. Response: Currently all modifications to programs are initiated by a data processing programming request form that is signed by the Director or division managers of the requesting department. These programming request forms are reviewed by the Director of Data Processing or the Senior Programmer Analysts. A more frequent review of the activity log is now occurring, but the continued direct involvement of the Senior Programmer/Analyst in 466 Deloitte, haskins Audit Report Page 12. modifications appears to b~ changes. the most effective monitoring of programming Computer Room ACcess Observation: The operations area is accessible to all Data Processing personnel. The operations area has three entrances/exits. One doorway is secured by a combination lock, while the other two are secured by lock and key. All Data Processing personnel, including programmers, have knowledge of the combination. Access to the computer room should be allowed only to authorized operations personnel in order to prevent any tampering or accidental destruction of files and equipment. Response: While the current practice is to have the programming staff enter the computer room to retrieve their compilation listings and test reports, the programmers do not operate the computer and operations staff are present during normal business hours when the programmers are in the computer room. The exception to this practice is when the programming staff is involved in major testing activities during time frames other than normal business hours, such as weekends. The restricting of the programming staff from the computer room would result in a loss of productivity for both the computer operations staff and the programming staff. Additionally, this restriction would increase the cost of testing in non-normal operating time by the amount of overtime pay required in having computer operators available during test sessions. Currently, funds have not been budgeted to cover this type of overtime expense. APPLICATIONS Payroll Observation: One individual inputs the payroll data and reviews, balances and approves the batch transaction report. Recommenaation: An individual independent of the payroll data input personnel should review, balance and approve the batch transaction report. Response: Staff agrees that, in order to ensure proper controls, an individual independent of the data input personnel should review, balance and approve batch transaction reports. ~e have initiated a process where a Deloitte, Haskins & Sells Audit Response Page 13. supervisor in the Accounting Division will verify batch totals on reports. Also, a supervisor will verify beginning and ~. ~ng check sequence to Data Processing runs ana follow up on any discrepancie 467 Access to Master Files Observation: The Personnel and Payroll Department personnel have unlimited access to the Payroll/Personnel master file, allowing unauthorized individuals the capability to aad, change or delete master file records. The Employee Information System ("EIS") extended security system is being approved for implementation in the near future to control access to authorized users. Currently, both Personnel and Payroll receive all transaction reports to review each other's inputs, changes and deletions. Response: The implementation of the extended security system is being pursued. Under the current procedures, both the Personnel Department and the Finance Department perform identical functions on active employees, depending on whether they are processing a new-hire or processing an employee who is already on the Pay~oll/Personnel system. As long as these similar functions are performed by both departments, then each department must continue to have the ability to inquire, update and correct the same data fields. The extended security system will in reality provide other user departments with inquiry capability to data fields that are not confidential and/or critical to secure and operate the Payroll/Personnel system, currently, the proceaure for gaining access to this system requires the approval of the Director of Personnel prior to the Data Processing Department establishing a sign-on and password. 4.68 Deloitte, haskins & Sells Audit Response Page 14. Court System Implementation Observation: The new court system implementation has been significantly delayed due, in part, to lack of defined user responsibility. The role of a user champion, with appropriate authority anQ responsibility, is a critical success factor for new system installations. This situation has been compounded by extensive turnover of user personnel. Recommendation: Each system installation should be guided by a user steering committee with a chairperson assigned with the necessary authority and defined responsibility for successful implementation. Response: This observation has been aodressed in a report by staff to the City Council. AS recommended in the report, an advisory committee has been installed to guide the general direction of the Court, not only in automation, but in all areas. The acting Court Aaministrator has been given the authority and responsibility of implementation and operation of the system. COUrt S~stem Automation Observation: The City is currently utilizing a manual system for processing Court transactions. Recommendation: Analyze automation of court functions. The City has existing software which was provided at n o cost by another Texas municipality. The City shoula ensure that the software meets identified user requirements. If so, the implementation of the automated system should proceed. Response: The training of personnel on the hunicipal Court automated system began several months ago. The system went on-line as of January 25, 1988. Policies and Procedures Observation: There are no written policies and procedure which define transaction processing, methodology, work flow, etc. Recommendation: Develop a written Municipal Court policy ana procedures manual. The manual should incorporate the procedural changes which result from an automated system. Response: A written policy and procedures manual is in place and being utilized in the current operation. ~his manual will continually be updated, revised and amenoed to adhere to the necessary changes brought on by an automated system. Deloitte, Haskins & Sells Audit Response Page 15. Warrants and Parking Tickets Observation: There is a backlog of warra.cs for misdemeanor traffic offenses and uncollected parking tickets. Recommendation: Develop a strategy to eliminate the backlog prior to the automated system going on-line. Response: As of November 15, the backlog for misdemeanor traffic offense tickets in the Municipal Court area had been eliminated through effective operation of the Department aha hard work by the new personnel in the Division. A report on uncollected parking tickets will be presented to Council on February 2, 1968. 469 Personnel Chan$es Observation: There have been significant personnel and organizational problems in the Court area. Recommendation: Consider conoucting a high-level review to develop an organizational structure that combines required activities and support functions with improved operations into a framework that will be practical in the operational and administrative environment of the City. Job design and related human resource issues should be reviewed. Response: Personnel has completed its review on the majority of the positions within '=he Municipal Court Clerk's area aha the Municipal Judge's area. They are in the process of reviewing the Municipal Court Clerk's Administrator position. It is anticipated that a final decision regarding that position will be made within the next week or so. The implementation of the organization structure will allow for career growth that adheres to the overall practical operation and administrative guidelines of the City. 3132F 01/28/88