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Minutes May 02, 1989490' CITY OF DENTON CITY COUNCIL MINUTES May 2, 1989 The Council convened into the Work Session at 5:30 p.m. in the Civil Defense Room. PRESENT: Mayor Stephens: Mayor Pro Tem Hopkins: Council Members Alexander, Ayer, Boyd, and Gorton. ABSENT: Council Member McAdams 1. The Council received a mid-year audit update by Deloitte, Haskins & Sells. George Scott, Deloitte, Haskins & Sells, reviewed the status of the 1988 Management Comments. He stated that most of the suggestions made had already been implemented or were in the process of being implemented, Those areas that were implemented or in the process of being implemented included repurchase agreements, savings and loan institutions, cash transfers, cash disbursements, fixed assets inventory, reconciliation of utility receivable records, utilizing report writer function, health care budgeting, deficit fund balance, actuarial study, sick leave, forms 1099-MISC, magnetic media filing requirements, municipal court, formal contracts with hotel/motel occupancy tax recipients, and reporting of revenues. Those areas that had not been implemented included safekeeping receipts (not implemented due to current contract arrangements with the depository), and internal audit (not implemented due to budget constraints-would be requested again in upcoming budget requests). 2. The Council held a discussion regarding a proposed electric utility rate reduction. Bob Nelson, Executive Director for Utilities, stated that as a result of a reduction in the TMPA demand charge to the City of Denton, the City had an opportunity to lower its Rate Schedule ECA. The reduction would lower the ECA to 1.9~/KWH from 2.0~/k'WH. He also stated that there was a great need for a rate review study in the near future. Council Member Alexander left the meeting. 3. The Council held a discussion of CDBG funding recommendations. Connie Wells, Chair-CDBG Committee, presented the Committee's funding recommendations for the upcoming budget considerations. Those recommendations included: (1) Housing Rehabilitation - $300,000 for continuation of the existing program to rehabilitate substandard houses inhabited by low or moderate income persons living in the City, (Z) Demolition and City of Denton City Council Minutes May 2, 1989 Page 2 Lot Clearance - $15,000 for continuation of the program to demolish and remove vacant, substandard structures that contribute to the deterioration of neighborhoods, (3) Roof Repair/Heritage Oaks Apartments - $81,000 for stripping and replacement of roofs, soffit and facia trim at Heritage Oaks which provides housing for low-income elderly, (4) Alexander Street Drainage - $55,000 for a provision of a drainage system to collect floodwaters from 28 acres in the Morse and Wilson street areas which would upgrade infrastructure in the targeted area as past of the process to stabilize neighborhoods, (5) MLK Drainage - $12,000 for drainage improvements at the Martin Luther Kings, Jr. Recreation Center site, (6) Administration - $115,543 for program management, coordination, monitoring and evaluation associated with carrying out eligible grant activities. Wells stated that the City staff had been able to find suitable dirt for the drainage work at the MLK Center and thus the $12,000 would not be needed for that particular project. She stated that the Committee would determine what to do with the extra $12,000 at their next meeting and would inform the Council as soon as possible. Council Member Alexander returned to the meeting. The Council received a 9-1-1 status report. John McGrane, Executive Director for Finance, presented the recommendations that the Task Force was making to the 9-1-1 District Board. Those recommendations included (1) developing and installing formal policies for financial policies, (2) develop a format for a formal budget, (3) develop a multi-year plan, (4) follow state law requirements for budget adoption, (5) set goals and objectives for monthly reporting, (6) implement a fee collection audit, (7) determine the best and final proposal for equipment implementation, (8) set goals and objectives for the Agency, (9) establish advisory committees, (10) develop feedback methods, (11) develop policies and procedures for personnel structure, (12) develop a plan for district service areas, (13) develop a plan for phasing in rural addressing as funding allows, (14) develop a plan to join with other entities to help with District revenues, and (15) consider increasing revenues for the future and revenue sources. Consensus of the Council was to have the Mayor send a letter to the 9-1-1 Board requesting adoption of the Task Force recommendations and a letter to the members of the Task Force thanking them for their efforts on the Task Force. 5. The Council held a discussion of a possible amendment of HB2690 relating to administrative adjudication of parking offenses. 491 492 City of Denton City Council Minutes May 2, 1989 Page 3 Debra Drayovitch, City Attorney, stated that cities with a population of 200,000 or more were allowed to follow civil procedures ~or some parking offenses and were not required to proceed through a criminal court. The Legal Staff was recommending that the City work to get the legislation amended so that a city the size of Denton would be able to use that procedure. Consensus of the Council was to proceed with the option to amend the legislation. 6. The Council convened into Executive Session to discuss legal matters, real estate and personnel/board appointments ( considered appointments to the Main Street Committee and the Bicentennial Census Complete Count Committee). The Council the convened into the Regular Session at 7:00 p.m. in the Council Chambers. PRESENT: Mayor Stephens: Mayor Pro Tem Hopkins: Council Members Alexander, Ayer, Boyd, and Gorton. ABSENT: Council Member McAdams Consent Agenda Mayor Stephens requested that Item 1.A.2. be pulled for special consideration. Hopkins motioned, Gorton seconded to approve the Consent Agenda with the exception of Item 1.A.2. Motion carried unanimously. A. Bids and Purchase Orders: 1. Bid #9973 - Precast Manholes 3. P.O. #89679 - Southern Engine Pump B. Tax Refunds Considered approval of a tax refund for Windsor Park Development. Considered approval of a tax refund for Ernest D. Larson/Bright Mortgage. Considered approval of a tax refund for David Weiss/Murray Mortgage. City of Denton City Council Minutes May 2, 1989 Page 4 The Council then considered Item 1.A.2. Mayor Stephens stated that this had been an item for consideration for a considerable amount of time and was pleased that this was at last coming to pass. Hopkins motioned, Gorton seconded to approve Item 1.A.2. Motion carried unanimously. A. Bids and Purchase Orders: 2. Bid ~9977 - Bonnie Brae Paving Mayor Stephens presented the following proclamations: A. Mental Health Month - accepted by Cindy Sills B. National Drinking Water Week - accepted by Bob Nelson 2. 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. 892055 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES: PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE: AND PROVIDING FOR AN EFFECTIVE DATE. Gorton motioned, Ayer seconded to adopt the ordinance. On roll vote, Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously, B. The Council considered adoption of accepting competitive bids and providing for contracts for public works or improvements. an ordinance the award of 493 494 City of Denton City Council Minutes May 2. 1989 Page 5 The following ordinance was considered: NO. 89-056 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. Hopkins motioned, Gorton seconded to adopt the ordinance. On roll vote. Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. C. The Council considered adoption of an ordinance providing for the expenditure of funds for purchases of materials or equipment which are available from only one source in accordance with the provisions of state law exempting such purchases from requirements of competitive bids. The following ordinance was considered: NO. 89-057 AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR PURCHASES OF MATERIALS OR EQUIPMENT WHICH ARE AVAILABLE FROM ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING FOR AN EFFECTIVE DATE. Gorton motioned, Ayer seconded to adopt the ordinance. On roll vote, Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. D. The Council considered adoption of an ordinance reducing the Energy Cost Adjustment (Rate Schedule ECA). The following ordinance was considered: NO. 89-058 AN ORDINANCE REDUCING THE ENERGY COST ADJUSTMENT (RATE SCHEDULE ECA); AND PROVIDING FOR AN EFFECTIVE DATE. Mayor Stephens stated that the TMPA Board had worked on the demand charge reduction to the City and felt it was a worthy gesture on the part of the Council to follow through on the lowering of the rate and pass the savings on the its utility customers. City of Denton City Council Minutes May 2, 1989 Page 6 Gorton motioned, Hopkins seconded to adopt the ordinance. On roll vote, Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. E. The Council considered adoption of an ordinance authorizing the execution of a revision to a contract between the City of Denton and Dominion Bridge Sulzer; and providing for an increase in the contract price. (The Public Utilities Board recommended approval.) Bob Nelson, Executive Director for Utilities, stated that late last summer work had to be temporarily suspended on the Lewisville Hydroelectric project due to a Corps of Engineers position that they would not sign a memorandum of agreement until the City had worked out an arrangement with the City of Dallas. That four month delay required an increase in the price of the turbine and a storage charge as well. The following ordinance was considered: NO, 89-059 AN ORDINANCE AUTHORIZING THE EXECUTION OF A REVISION TO A CONTRACT BETWEEN THE CITY OF DENTON AND DOMINION BRIDGE SULZER: PROVIDING FOR AN INCREASE IN THE CONTRACT PRICE; AND PROVIDING AN EFFECTIVE DATE. Alexander motioned, Gorton seconded to adopt the ordinance. On roll vote, Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. F. The Council considered adoption of an ordinance approving an agreement between the City of Denton and Credicom, Inc. for the collection of overdue utility accounts. John McGrane, Executive Director for Finance, stated that in the past three collection agencies had been used to collect overdue utility accounts. This contract would limit that collection to one agency. Credicom had presented the best proposal with a reduced amount of fees, a return to the City in specified period of time those accounts that could not be collected on, and set up a monthly reporting method. Mayor Stephens asked about an audit of the collections made. 495 McGrane stated that a monthly report from the agency would be compared to the City's records. 496 City of Denton City Council Minutes May 2, 1989 Page 7 Mayor Stephens asked that staff be allowed to look at any letters to be sent out by the agency to citizens before those letters were finalized. McGrane replied that the form letters were generally sent out by the City. Most of these collections were done over the phone. If for some reason a letter were to be sent out, staff would review it first. The following ordinance was considered: NO. 89-060 AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND CREDICOM, INC. FOR THE COLLECTION OF OVERDUE UTILITY ACCOUNTS: AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR: AND PROVIDING FOR AN EFFECTIVE DATE. Hopkins motioned, Gorton seconded to adopt the ordinance. On roll vote, Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. 3. Resolutions A. The Council considered approval of a resolution appointing a Bicentennial Census Committee. Discussion was held by Council regarding the number of members for the Committee as a diverse group was being requested by the Census Department. Alexander motioned, Gorton seconded to postpone action on the resolution until the next regular Council meeting. On roll vote, Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion carried unanimously. Miscellaneous matters from the City Manager. Lloyd Harrell, City Manager, presented the following items: ae There would be a short Council meeting on the 9th of May to canvass the election results and elect a Mayor Pro Tem. Be 740 absentee ballots by personal appearance had been cast at the close of the absentee voting period. City of Denton City Council Minutes May 2, 1989 Page 8 5. There was no official action taken on Executive Session items held during the Work Session. 6. There were no items of new business suggested by Council Members for future agendas. 7. The Council reconvened into the Executive Session to discuss legal matters, real estate, and personnel/board appointments (considered appointments to the Main Street Committee and the Bicentennial Census Complete Count Committee). No official action was taken. With no further business, the meeting was adjourned at 7:00 p.m. 497 S RETA Y CITY OF DENTON. TEXAS 3083C