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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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