Minutes November 22, 1988 CITY OF DENTON CITY COUNCIL MINUTES
November 22, 1988
The Council convened into the Work Session and Called meeting
at 5:30 p.m. in the Civil Defense Room.
PRESENT: Mayor Stephens; Mayor Pro Tem Hopkins; Council
Members Alexander, Ayer, Boyd, Gorton and McAdams.
ABSENT: None
1. The Council convened into the Executive Session to
discuss legal matters (Phillips v. City, Patel v. City of
Denton, City of Denton vs. Maverick Aircraft, Inc.~ et. al.J,
real estate, personnel and board appointments. No official
action was taken.
2. The Council received a report concerning the status of
the 911 system.
Marilynn Milor, Director-911 System, presented an overview of
the progress being made with the 911 system. She stated that
there would be four public safety information points based in
Carrollton, Lewisville, Denton and a neutral County point. Her
main concern was that the system was going to be more costly
than originally estimated and that revenues would not match
expenditures for the system. The principal supplier, GTE, had
stated that the system could be funded with a 3% tax but there
were four other phone companies within Denton County involved
with the system and they could not provide the service based on
the 3% tax. A target date of September 11, 1989 was being
considered for start up of the system. If that date could not
be met, then the system would not be operational until 1992.
Council Member Ayer asked if the 5% tax was not going the job,
how much was needed.
Milor r~plied that a 6% tax would provide excess money and that
perhaps 4-5% would be a realistic figure.
Ayer asked who had the authority to increase the amount of tax.
Milor stated that the Board would have a financial audit
followed by a proposed budget. The Board would set the rate
matching revenues to expenses when the budget was approved.
Council Member Boyd asked what the maximum was for the tax rate.
Milor stated that it initially was 3% but had been raised to 6%.
Council Member McAdams asked if the current Board had received
the initial information concerning the amount of tax necessary
to fund the system or if this was a new Board.
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November 22, 1988
Page 2
Milor replied that this was a new Board and they were not in
place when the original tax rate was considered. An interim
Board had received the original information.
Council Member Gorton asked where the overrun was occurring.
Milor stated that the service costs were too high. The
revenues taken in were not meeting the expected expenditures
for service and equipment to meet the proposed start up date.
Council Member Alexander stated that he felt that the Board was
forcing the increase by forcing the date of implementation.
The process incurred income and the system could be implemented
when enough income had been collected.
Council Member McAdams stated that more attention needed to be
given to details. More specific questions needed to be
answered and the public needed more information regarding the
process.
Alexander asked what the date was that the funds were first
collected.
Milor replied January 1, 1988.
Alexander stated that that was about one-half million dollars a
year and that the Board could wait a short time and get enough
money for the funds without increasing the tax. He stated that
GTE had indicated that it would take a while to get enough
funds to fund the system and he felt that GTE was not out of
line with their projections.
Mayor Stephens thanked Ms. Milor for appearing before the
Council.
3. The Council held a discussion and considered selection
of potential Legislative lobbyists.
Lloyd Harrell, City Manager, presented an update to the Council
regarding the selection of the lobbyists. He stated that the
two finalists had been interviewed by the Council, Tom Forbes
and Charlie Evans. Consensus of the Council had been to
determine if the two individuals would team up and work
together on the primary issue of health care matters. A
proposal had been made to have Tom Forbes be the lead person,
to provide his expertise regarding indigent health care matters
and would work in the Senate to try and pass favorable
legislation for Denton. Evans would report to Forbes and would
work to ensure passage through the House of Representatives.
City of Denton City Council Minutes
November 22, 1988
Page 3
Jim Bunyard was surveying the other four cities affected to see
if they would be interested in a joint venture. Harrell stated
that staff was needing direction regarding (1) a formal
contract to be presented to Council on December 13, (2)
authorization for staff and Council to meet with
representatives of the other four cities, (3) how payment was
to be made if the contract was entered into.
Consensus of the Council was that they would like to have a
formal contract presented at the December 13 meeting, staff had
the authorization to contact the other four cities and set up a
meeting of representatives from those cities, and a preference
for payment would be to pay the amount out over 2 years if the
funds could be encumbered.
4. The Council received a report on the status of the
Environmental Health Services Division.
Lloyd Harrell, City Manager, reviewed the history of the
Environmental Health Services Division with the City.
Bill Angelo, Director of Community Services, reviewed the
organization of the Division and the status of the Division to
date. He presented the staff to the Council.
5. The Council held a review regarding RFP for Management
Study and Actuarial Analysis of City Health Insurance Fund.
Tom Klinck, Director of Personnel, presented an update of the
insurance fund and an overview of the RFP for Management Study
and Actuarial Analysis of the City Health Insurance Fund. He
stated that open enrollment had resulted in a significant
increase of-employees back into the self-insurance fund. He
reviewed the figures for the fund balance resulting in an
adjusted deficit of $215,000. The RFP for Management Study and
Actuarial analysis would be a comprehensive study and financial
analysis of the City's insurance fund. A look would be taken
at both the financial side and design of the plan. Klinck
reviewed the provisions of the RFP and presented a tentative
time schedule.
6. The Council held a discussion
establishment of criteria for use by the
Committee when making funding recommendations.
regarding the
Human Resources
Barbara Ross, Block Grant Coordinator, asked for input from the
Council regarding guidelines the Human Resources Committee
could use for funding recommendations.
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City of Denton City Council Minutes
November 22, 1988
Page 4
Council Member Ayer stated that the Human Resources Committee
was preparing an extensive needs assessment report to assist in
the needs of Denton.
Discussion by Council centered on what type of organizations
the City should help fund. Consensus of the Council was that
the City should consider funding for services that the City
might provide but was not able to provide efficiently. Basic
needs for transportation, law enforcement and public safety
were ar~as that the Council felt the City should help fund and
social service, health and welfare were areas that the Council
felt the City should stay out of. Seed money for new
organizations would be considered with the understanding of a
sunset on appropriations from the beginning. The Council
directed staff to prepare a proposal for the Human Resources
Committee for their review.
7. The Council held a discussion of the supplemental
agreement No. 1 to untreated water contract between the cities
of Dallas and Denton relating to the City of Denton's
installation of hydroelectric facilities on Lake Lewisville.
Bob Nelson, Executive Director for Utilities, stated that the
City had received a draft document from the City of Dallas
which basically stated that Dallas would not install their
pipeline before the year 2005. This' would give adequate time
for debt payment for the project. Nelson reviewed the
provisions of the agreement with the Council.
8. The Council held a discussion regarding the heat,
ventilation, and air conditioning system renovation for City
Hall, Civic.Center, Library and Senior Center.
Bruce Hennington, Superintendent of Building Operations,
reviewed the history of the heat, ventilation, and air
condition system (H.V.A.C.). He stated that there was a need
to modify the system because it was extremely outdated with
minimal comfort control. The system would not be new below the
ground and above the ground it would be modified or updated to
make it controllable. The cost for a new system would be
approximately $370,000 with a cost savings of approximately
$64,000 annually. If the the amount of the system cost was
paid by Certificates of Obligation, the payback would be
approximately 8-10 years.
John McGrane, Executive Director for Finance, stated that
preliminary discussions with the City's bond counsel indicated
that the payback could go as long as the life of the system.
One would off-set the other for payback. During the 10 year
period, there would be enough savings to pay back the
Certificates of Obligation.
City of Denton City Council Minutes
November 22, 1988
Page 5
Consensus of the Council was to proceed with the arrangements
for Certificates of Obligations for the system.
9. The Council held a discussion regarding future CIP
bond sales and sale of contractual obligations for the annual
lease/purchase equipment program.
John McGrane, Executive Director for Finance stated that there
were three areas the Council needed to consider relative to
bonds - (1) the H.V.A.C. system, (2) the third year of the CIP
program, and (3) the lease purchase program for City vehicles.
City Manager Harrell stated that the Council needed to go to
New York before the sale of the bonds to reconfirm the City's
excellent bond rating.
Mayor Stephens asked for a time frame for the trip.
McGrane replied as soon as possible, perhaps early January.
Consensus of the Council was that a bond rating trip would be
necessary in the near future and the above mentioned areas for
bonds should be considered.
10. The Council held a discussion regarding Land Use
Management Information System (LUMIS).
Harry PersQad, Urban Planner, stated that the system would be
an automated for storing information regarding land use data.
He reviewed the system set-up and stated that some of the
benefits would include the City's ability of do their own
intensity calculations, population estimates, 1990 precensus
review, land.use and population projections and land tracking.
11. Ordinances
A. The Council considered adoption of an ordinance
authorizing the Mayor to execute a settlement agreement in
Anderson v. City of Denton, et.al.
The following ordinance was considered:
NO. 88-190
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A
SETTLEMENT AND COMPROMISE AGREEMENT FOR PENDING
LITIGATION BETWEEN THE CITY OF DENTON AND DWIGHT
ANDERSON AS NEXT FRIEND FOR DANA L. ANDERSON, AN
INCAPACITATED PERSON AND SHANDA MICHELLE ANDERSON, A
MINOR; AND PROVIDING FOR AN EFFECTIVE DATE.
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City of Denton City Council Minutes
November 22, 1988
Page 6
Ayer motioned, Alexander seconded to adopt the ordinance. OR
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens
"aye." Motion carried unanimously.
with no further business, the meeting was adjourned at 9:17 p.m.
RAY ST~PH~S, M~YOR
CITY O~ DENTON, TEXAS
Wk .TERS
~ITY S ~CRETARY
CITY OF DENTON, TEXAS
3012C