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Minutes May 15, 1990CITY OF DENTON CITY COUNCIL MINUTES MAY 15, 1990 The Council convened into the Work Session at 5:15 p.m. in the Civil Defense Room. PRESENT: Mayor Castleberry; Mayor Pro Tem Ayer; Council Members Boyd, Gorton, Hopkins and McAdams. ABSENT: Council Member Alexander 1. The Council convened into Executive Session to discuss legal matters (considered action in In Re: Flow and discussed County vs. City), real estate (considered acquisition of land near the airport for right-of-way for a proposed road and considered acquisition of land for a new fire station) and personnel/board appointments. Council Member Hopkins left the meeting during the discussion of In Re: Flow. 2. The Council received and discussed preliminary Human Services Committee budget recommendations. Dorothy Damico, Chair-Human Services Committee, presented the Committee's preliminary recommendation~ for funding. She stated that the number of dollars that SPAN used for transportation for the elderly and the number of dollars that SPAN used for. transportation for the handicapped had-been removed from the Human Services budget and put in another place 'in the budget materials. SPAN, Handi-Hop, Friends of the Family, Fred Moore Child Care Center, Denton City-County Day Nursery, and RSVP were agencies which had been funded for a number of years. Damico wanted the Council to be aware that when the fiscal year began in September, five of the six agencies would have new directors and the sixth would have a director who had been on the job just over a year. That was a high rate of turnover for directors. Council Member Gorton asked for the number of years those six agencies had been funded. He stated that that information could be presented at a later meeting. Damico continued that the Community Food Room was being transferred to Human Services from another area of the budget. They were requesting an amount not to exceed $5,000 to cover utilities. AIDenton, Parents Anonymous, Ann's Haven Hospice, and Denton County Clinic Project for Prenatal Clinic were new requests. Parents Anonymous was part of nation-wide support effort to help parents who had a history of abusing children or who. were at risk. Ann's Haven Hospice was health related. Damico was very aware of the legal problems associated with health related issues. The needs assessment showed that low cost health care was a problem in the City and in the County. She felt that tax dollars put into prevention and early intervention would be fewer than might be necessary if waited until a crisis. Ann's Haven Hospice would be using the money for a bereavement program rather than direct health care. 01 02 City of Denton City Council Minutes May 15, 1990 Page 2 Council Member Gorton wondered if contracts for these agencies were going to have to be very specific in order to meet certain spending requirements. Council Member McAdams felt that the Council needed to have a policy discussion about what kind of services the City intended to fund. What should the City be doing for services. She did not like having to reduce an agency in order to fund a new agency. Council Member Boyd stated that figures could be adjusted if there were a no growth budget. Council Member Gorton asked for the 1989 requests to be added to the recommendation sheet for a comparison. Council Member McAdams and Mayor Pro Tem Ayer left the meeting. Damico stated that AIDenton and the Pre-natal Clinic were health related items and in the past, were not funded for that reason. The Pre-Natal Clinic came into being as a direct result of Flow Hospital closing and was experiencing a large demand for services. The Committee was asking the currently funded agencies to take small cuts or not take any increases to help fund new agencies with health related issues. Council Member Hopkins asked about the CDBG proposed funding for the pre-natal clinic. How was that different from the Human Services recommendation for funding. Damico stated that the money would be to help pay the salary for an additional nurse. Council Member McAdams and Mayor Pro Tem Ayer returned to the meeting. 3. The Council held a discussion regarding the revision of the Zoning Ordinance. Frank Robbins, Executive Director of Planning, stated that some of the reasons for rewriting the zoning ordinance included: (1) the Denton Development Plan indicated that the ordinance should be rewritten so that the plan and implementation measures would be useful, (2) the current zoning ordinance had been adopted in 1969 and was outdated, (3) undesirable development which was currently authorized by current standards, (4) over use of time consuming, cumbersome problematic Planned Development, (5) problematic districts not being used, and (6) user unfriendly. Some suggestions for rewriting the ordinance included a reorganization of standards for easier use, adding new districts for commercial/retail and office uses which would City of Denton City Council Minutes May 15, 1990 Page 3 include a site plan permit by Planning and Zoning, adding a mixed use directions with performance standards, allowing mixed use buildings outside Central Business district, overlaying districts, adding standards for Bed and Breakfasts, and using the Planned Developments as the exception rather than as the rule. A discussion was then held regarding the appointment of a citizen committee to work on the rewriting of the ordinance. Staff had recommended that the Planning and Zoning Commission appoint the members. Consensus of the Council was that the committee members should be appointed by the City Council and should be a broad-based cross section of the community. Consensus of the Council was to proceed with the rewriting of the zoning ordinance with a citizen committee appointed by Council with input from the Planning and Zoning Commission. 4. The Council received and discussed a report regarding purchase of a portion of the raw water obtained from the Sulphur River Basin from the Upper Trinity Regional District by contract with the City of Commerce. Bob Nelson, Executive Director for Utilities, presented background information concerning the item. The proposed resolution dealt with a raw water supply from Cooper Reservoir via a contract with the City of Commerce which also involved a proposed contract between the Upper Trinity Regional Water District and the City of Commerce. The City of Commerce was prepared to enter into the agreement with the Upper Trinity Regional Water District but prior to doing so, the UTRWD needed assurances that there were member cities of water purveyors that were willing or would guarantee the fixed costs of this project until such time that the UTRWD had operating funds. Although the water was being made available to the UTRWD, the UTRWD did not have funds at the present to fund the estimated $250,000 cost for 1991. Since Denton, Lewisville, Highland Village and the Denton County Fresh Water District No. 1 had been the only entities indicating a willingness or ability to consider funding the project, it had been proposed that these entities be guaranteed 6 MGD of the 11.72 MGD available. Under such an arrangement, Denton would be guaranteed two MGD in exchange for funding 33% of the initial costs, Lewisville - two MGD for 33%, Highland Village - one MGD for 16.5% and FWD #1 - one MGD for 16.5%. Later, when the UTRWD had water contracts with other Denton County cities, Denton would be reimbursed for fifty percent of the 33%, but would still retain the rights to two MGD. The proposals were still in preliminary stages and there was a possibility that other area cities might be able to fund a DroDortionate share. 03 0¸4 City of Denton City Council Minutes May 15, 1990 Page 4 The estimated UTRWD budget for the Cooper Reservoir Water Project would be $250,000 having the following components: Payment to City of Commerce for their legal fees etc, for the past several years - $50,000 Legal and regulatory fees to get water transferred from Commerce to UTRWD - $50,000 Payment to Corps of Engineers for debt service on reservoir - $63,241 Engineering study to determine most feasible method of transporting water from Sulphur River Basin to Trinity River Basin - $86,759 Denton's share would be 33% of the estimated 1991 budget - $83,500 Nelson continued that there were uncertainties about the political and regulatory feasibility of securing this water for Denton and the Denton County area. However, similar uncertainties and difficult political and regulatory issues would be encountered with any future water supply that Denton and Denton County attempted to secure since any future water would have to come from either reuse of wastewater or as water transferred from some other river basin into the Upper Trinity River Basin. Because of the timeliness of this potential water supply and apparent regional and statewide support with the Cooper Reservoir water, staff would recommend the resolution with the City of Commerce. Council Member Gorton questioned paying the legal fees Commerce had accumulated over the last several years stating that that was a risk Commerce had taken. If those fees were removed, the City of Denton would still be gambling with ~200,000 on a 50-50 bet. Nelson replied that he was the one giving it a 50-50 chance. Other individuals were saying it was a 95% chance. The proposal had already been presented to the Executive Director and Chairman of the Texas Water Commission and they had responded favorably. Council Member Gorton asked if the Upper Trinity Water District did not go after the water, that Lewisville would do so. Was that the status of the market for water rights. Nelson replied yes that there were no water rights left in the Trinity River Basin. Nothing except for reused water from Lake Lavone to the Elm Fork to the West Fork Reservoirs. The only water left was Red River Water which could be cheap but might need salt removed or the Sulpher River Basin. City of Denton City Council Minutes May 15, 1990 Page 5 Council Member Hopkins stated that she had problems with first, the $50,000 fee. Second, the fee for legal services was not realistic. She felt it was a large risk to take for something that would not give the City enough water to really help it. She questioned if it were worth a five-ten year fight in Austin. She also had numerous problems with the contract such as on page 2 which stated "it was anticipated that the Federal Government would honor the interest rates upon completion of the project" and on page 4 which stated that Commerce could "terminate or curtail partially or wholly the sale of such water". Nelson replied that the curtailment would be only if Commerce experienced a problem with its physical facilities. Mayor Castleberry stated that this was an introduction to the item and would be brought back at a later date. Council Member Gorton asked if the item could be brought back later at the end of the meeting as he had additional concerns and suggested the possibility of a subcommittee to look into the issue. The Council convened into the Regular Session at 7:00 p.m. the Council Chambers. PRESENT: Mayor Castleberry; Mayor Pro Tem Ayer; Council Members Boyd, Gorton, Hopkins and McAdams. ABSENT: Council Member Alexander Mayor Castleberry presented a proclamation for Historic Preservation Week. 1. The Council received a citizen's report from Amy Plumadore regarding parking restrictions on the bridges east of Denton on Highway 380. Ms. Plumadore stated that she had been involved in a traffic accident on the bridges last summer. Due to the recent raihs, the lake bottom was filled and people were parking along the bridge to fish. She felt that was a dangerous condition. She had called the Police Department, Sheriff's Department, the Highway Department and Highway Patrol and had been told to talk to the Highway Department for signs to be put up in the area. A representative from the Highway Department told her that he would order signs if the City of Denton agreed. She suggested lowering the speed limit to 45 on the bridge and signs posted "no fishing from bridge" or "emergency stopping only". 05 06 City of Denton City Council Minutes May 15, 1990 Page 6 Lloyd Harrell, City Manager, stated that Rick Svehla, Deputy City Manager, had contacted Ms. Plumadore and indicated to her that the item would be scheduled on the next agenda of the Citizens Traffic Support Commission. A formal recommendation would be made from the Commission to the Council in the near future. 2. The Council received a citizen's Young regarding changing Fred Moore Park neighborhood park to a community park. report from Carl designation from a Mr. Young requested the Council consider changing the designation of Fred Moore Park from a neighborhood park to a community park. He was going to request the Historical Commission consider the park as an historical site. He requested a repeal of the ordinance on liquor and time as it was not right. He went on to state that the neighbors in the area were not in favor of the new police program and wanted it stopped. Council Member Boyd asked how the designation was made and was that not a category not a name for parks. City Manager Harrell stated that that was correct and that Mr. Young was scheduled to speak at the next Park Board meeting on ~he issue. 3. The Council received and opened bids regarding the awarding of Texas Public property Contractual Obligations, Series 1990. Frank Medanich, First Southwest, stated that 13 proposals had been received. He would read the net effective interest rate for each bid. Shearson American Express Company - 6.41143 Griffin Kubik Stevens & Thompson - 6.551123 Prudential Bache Securities - 6.7085 Bank One - Texas - 6.58323 Donaldson Lufkin Jeanrette - 6.6417 NCNB . Texas - 6.63643 Smith Barney & Co. - 6.7002 First City Texas Bank - 6.4345 Clayton Brown & Associates - 6.3679 First Southwest Co. - 6.6086 Merrill Lynch Capital Markets - 6.6793 Blunt Ellis & Loewi - 6.44000 Payne Weber - 6.6907 City of Denton City Council Minutes May 15, 1990 Page 7 Medanich stated that he and his associates would retire and check the bids for accuracy. Public Hearings A. The Council held a public hearing to consider'a petition by A. Lissberger and considered adoption of an ordinance amending the detail plan authorizing planned development #134. (The Planning and Zoning Commission recommended approval.) The Mayor opened the public hearing. A1 Lissberger, petitioner, stated that the amendment would modify the on-site sewage disposal system in accordance with the existing disposal permit. No one spoke in opposition. The Mayor closed the public hearing. Frank Robbins, Executive Director of Planning, stated that the Planning and Zoning Commission agreed with the amendments. The - amendments would modify the on-site sewage disposal system area and modify a condition concerning connection to City utilities. The requirement that the applicant would connect to Denton's sewer system when development exceeded 8,000 square feel would be eliminated. In addition, the on-site sewage disposal system would be modified, in order to concur with the disposal permit. The adopted plans show an area of 940 square feet for a drain field improvement area. The amendment would increase the size of that area to 1,204 square feet. The following ordinance was considered: NO. 90-069 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING THE DETAILED PLAN FOR THE PLANNED DEVELOPMENT DISTRICT ESTABLISHED BY ORDINANCE NO. 90-007 AND AMENDING A CONDITION THEREOF RELATING TO WASTEWATER SERVICE FOR THE PROPERTY; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. McAdams motioned, Gorton seconded to adopt the ordinance. On roll vote, McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. 07 City of Denton City Council Minutes May 15, 1990 Page 8 Consent Agenda McAdams motioned, Hopkins seconded to approve the Consent Agenda as presented. Motion carried unanimously. A. Bids and Purchase Orders: Bid #1068 - Lake Lewisville and Ray Roberts Hydroelectric Projects 2. Bid #1094 - Fiberglass Roadway Lighting Bid #1101 - Friends of the Family Rehabilitation 4. Bid #1102 - Chemical and Herbicides 5. Bid #1107 - Bonnie Brae 12" Water Line 6. Bid #1108 - Diesel Repair Parts 7. Bid #1109 - Heater Repair 8. P.O. #95617 - Hatch & Kirk .6. 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. (4.A.2. - Bid #1094, 4.A.4. - Bid #1102, 4.A.6. - Bid #1108, 4.A.7. - Bid #1109) The following ordinance was considered: NO. 90-070 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. McAdams motioned, Gorton seconded to adopt the ordinance. On roll vote~ McAdams "aye," Hopkins 'aye," Gorton "aye," Ayer "aye,' Boyd "aye," and Mayor Castleberry '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 improvement~. (4.A.1. - Bid #1068, 4.A.3 - Bid #t101, 4.A.5. - Bid #1107) City of Denton City Council Minutes May 15, 1990 Page 9 The following ordinance was considered: NO. 90-071 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. McAdams motioned, Gorton seconded to adopt the ordinance. On roll vote, McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. C. The Council considered adoption of an ordinance authorizing the execution of a change order to a contract between the City of Denton and Hatch & Kirk; and providing for an increase in the contract price. (4.A.10 - P.O. #95617) The following ordinance was considered: NO. 90-072 AN ORDINANCE AUTHORIZING THE EXECUTION OF A CHANGE ORDER TO A CONTRACT BETWEEN THE CITY OF DENTON AND HATCH & KIRK, INC.; PROVIDING FOR AN INCREASE IN THE CONTRACT PRICE; AND PROVIDING AN EFFECTIVE DATE. McAdams motioned, Gorton seconded to adopt the ordinance. On roll vote, McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. D. The Council considered adoption of an ordinance approving the issuance of contractual obligations for the City of Denton. Council Member Hopkins left the meeting with a potential conflict of interest. Frank Medanich stated that all of the bids had been checked and found the bids as submitted to be correct. On that basis, the bid submitted by Clayton Brown and Associates, at the effective interest rate of 6.3679, was the best bid submitted and recommended acceptance of that bid. 09 City of Denton City Council Minutes May 15, 1990 Page 10 The following ordinance was considered: NO. 90-073 AN ORDINANCE AUTHORIZING THE ISSUANCE OF PUBLIC PROPERTY FINANCE CONTRACTUAL OBLIGATIONS McAdams motioned, Ayer seconded to adopt the ordinance. On roll vote, McAdams "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. Council Member Hopkins returned to the meeting. D. The Council considered adoption of an ordinance authorizing the City Manager to enter into an agreement with the State Department of Highways and Public Transportation concerning the landscaping of a portion of University Drive. (The Beautification Commission recommended approval.) Jeanne Morrison, Chair-Beautification Commission, stated that the Commission had discussed two major entranceways that they felt were in need of help. Their first choice was University Drive which was probably the most traveled street in Denton. She felt this was an opportunity to make something develop in that area that all could be proud of. Frank Robbins, Executive Director for Planning, stated that the first time the item had been acted on by Council, the budget for the project was $120,700 in cash. Staff determined ways to leverage cash with in-kind services. Therefore, the City's estimate was $92,500. The Highway Department's estimate for cash needed was $55,460. If there were over-runs for the project, the State would pick up 99.28% of the cost. Lloyd Harrell, City Manager, stated that the design of the project would be within the area which would eventually be taken to expand University Drive from four to six lanes. As the City was currently in its heavy construction season, the work would be delayed until the late fall when crews could be used. Sheila Becker, President-North Lakes Neighborhood Association, spoke in favor of the project and urged the Council to approve the ordinance. Jerry Cott, Chairman-Government Relations Committee of the Denton Chamber of Commerce, cautioned that the project not become the financial burden of the property owners in the area and that they not be asked to pay for the project including maintenance. City of Denton City Council Minutes May 15, 1990 Page 11 City Manager Harrell replied that the funding for the median maintenance crew had been approved in last year's budget. This would include maintenance and water for the project. The following ordinance was considered: NO. 90-074 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE STATE OF TEXAS, ACTING BY AND THROUGH THE STATE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION, FOR PARTICIPATION IN A LANDSCAPE COST SHARING PROGRAM PROJECT ALONG US 380, FROM 1-35 TO MALONE STREET; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. Ayer motioned, Gorton seconded to adopt the ordinance. On roll vote, McAdams "ayev" Hopkins "aye," Gorton "aye," Ayer "ayev" Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. F. The Council considered adoption of an ordinance authorizing the City Manager to execute a joint cost sharing - agreement with the Texas State Department of Highways and Public Transportation for landscaping along U.S. Highway 77 at .its intersection with Interstate Highway 35E in Denton. (The Beautification Commission recommended approval.) City Manager Harrell stated that this was a similar project as University Drive but on a smaller scale. Jerry Cott, Chairman-Government Relations Committee of the Denton Chamber of Commerce, again voiced the same concerns as the last item and stressed that maintenance and water for the project should not fall on the property owners in the area. The following ordinance was considered: NO. 90-075 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A JOINT COST SHARING AGREEMENT WITH THE TEXAS STATE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION FOR LANDSCAPING ALONG U.S. HIGHWAY 77 AT ITS INTERSECTION WITH INTERSTATE HIGHWAY 35E IN DENTON; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE. McAdams motioned, Gorton seconded to adopt the ordinance. On roll vote, M~Adams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. 11 12 City of Denton City Council Minutes May 15, 1990 Page 12 G. The Council considered adoption of an ordinance authorizing acceptance of dedication of Lot 14, Audra Estates Addition for street right-of-way for East Oaks addition. Frank Robbins, Executive Director for Planning, stated that Council had approved the preliminary plat for the project which included the road extension. There were two options to accept the right-of-way. One by replat and one by instrument. The owner chose the instrument which was the ordinance before them. The following ordinance was considered: NO. 90-076 AN ORDINANCE ACCEPTING THE DEDICATION OF LOT 14, AUDRA ESTATES ADDITION, AS SHOWN IN THE DEDICATION DEED EXECUTED BY SCHNIEDER & JUSTICE, INC. ATTACHED HERETO, FOR STREET AND UTILITY PURPOSES; AND DECLARING AN EFFECTIVE DATE. Hopkins motioned, McAdams seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Hopkins "aye," Gorton 'aye," Ayer "aye,' Boyd "aye,' and Mayor Castleberry "aye." Motion carried _ unanimously. ~7. Resolutions A. The Council considered approval of a resolution designating a Records Management Officer for the City of Denton. The following resolution was considered: NO. R90-020 A RESOLUTION DESIGNATING THE CITY SECRETARY RECORDS MANAGEMENT OFFICER FOR THE CITY OF TEXAS AS THE DENTON, McAdams motioned, Ayer seconded to approve the resolution. On roll vote, McAdams "aye," Hopkins 'aye," Gorton "aye," Ayer "aye,' Boyd "aye," and Mayor Castleberry 'aye." Motion carried unanimously. B. The Council considered approval of a resolution authorizing the Mayor to execute an agreement between the City of Denton and Denton County for ambulance service. The following resolution was considered: City of Denton City Council Minutes May 15, 1990 Page 13 NO. R90-021 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY FOR AMBULANCE SERVICE; AND PROVIDING FOR AN EFFECTIVE DATE. McAdams motioned, Gorton seconded to approve the resolution. On roll vote, McAdams "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. C. The Council considered approval of a resolution authorizing the closure of Congress Street for Cougar Day May 19, 1990. Jesus Nava, Assistant to the City Manager, stated that representatives from Calhoun Junior High School had asked that the date for Cougar Day be reset due to rain on the last date. The following resolution was considered: A RESOLUTION TEMPORARILY CLOSING CONGRESS STREET _ BETWEEN ALICE STREET AND DENTON STREET ON FRIDAY~ MAY 18, 1990; AND PROVIDING AN EFFECTIVE DATE. McAdams motioned, Boyd seconded to approve the resolution. On roll vote, McAdams "aye," Hopkins "aye," Gorton "nay," Ayer "aye,' Boyd "aye," and Mayor Castleberry "aye." Motion carried with a 5-1 vote. 8. The Council held a discussion and considered an appointment .to the Joint City of Denton/Denton Chamber of Commerce Economic Development Board. Lloyd Harrell, City Manager, stated that the ordinance passed by the Council establishing City representation to the joint City of Denton/Denton Chamber of Commerce Board called for the appointment of five representatives from the City to include one representative from the Public Utilities Board, two City staff members and two members from the City Council. One of the two members from the council was Ray Stephens. Therefore, formal action was needed to take place Mr. Stephens. McAdams motioned, Hopkins seconded to name Mayor Castleberry to the Board. On roll vote, McAdams "aye," Hopkins "aye,' Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. 13 14 City of Denton City Council Minutes May 15, 1990 Page 14 9. Miscellaneous matters from the City Manager. The following items were presented by Lloyd Harrell, Manager, City packet. The budget recap had been included in the agenda B. The City's wastewater plant had received an award from the State of Texas for the outstanding wastewater treatment plant in the State of Texas for its size. C. Bob Nelson, Executive Director for Utilities, continued his discussion of the resolution regarding purchase of a portion of the raw water obtained from the Sulphur River Basin from the Upper Trinity Regional District by contract with the City of Commerce. Council Member Hopkins stated that she was concerned with page 20 of the contract which indicated that the City would have to continue payments even if it did not receive any water. Nelson replied that the City would be obligated for the next 50 years to pay its 26% share of the debt service on the reservoir regardless whether there was any water in it or not. That was the obligation that Commerce was under with the Corps of Engineers. All the City of Denton was doing was stepping in Commerce's position. Council Member Hopkins stated that any reservations that Nelson had about the contract, he was obligated to tell the Council. So far, she did not see anything that would make her in favor of the agreement. Nelson replied that he had only a 50-50% professional opinion that Denton would ever to finally accomplish getting the water rights and the water transported into the City of Denton. What it did for Denton was to put Denton in the arena as a player for water rights in the north Texas area and an interbasin transfer. It kept Denton's name in front of the Texas Water Commission and before other water supply entities. That might mean a $40,000 a year investment for such an opportunity. Council Member Boyd stated that assuming Denton would get the water, it would cost about 60% of what the water in Lake Ray Roberts would cost. Nelson replied that it was the cheapest water that was available at the present time. Red River water was cheape£ but there were difficult issues with the City of Dallas of ever getting that water transferred. City of Denton City Council Minutes May 15, 1990 Page 15 Council Member Boyd stated that the City had an adequate water supply Until the year 2010 and the contract would be for 50 years so that there was a potential use of the contract for the final 30 years. He asked how much the contract would cost the City. Nelson replied approximately ~83,333 for the first year. Staff was fully anticipating that the other entities would pick up their 50% reducing the amount to ~41,000-$42,000. Council Member Gorton asked if the other entities would have the same conditionas as Denton. Nelson replied yes. Council Member McAdams asked what would happen at the end of the 50 year contract and what were other options if the City decided not to go ahead with the contract with Commerce. Nelson replied that Commerce would have the right to take back the water supply. Other options would include (1) buy water from Dallas, (2) participate with Dallas in the Sulpher River Basin, (3) water from Red River, and (4) rights to return flow. Mayor Pro Tem Ayer stated that the item needed more discussion and a full thorough study. An extensive written report with options and costs was needed. Perhaps a consultant was needed to work on the project. Council Member Gorton suggested a subcommittee from the Council to study the item further. 10. There was no official action taken on Executive Session items during the Work Session. 11. New Business The following items of New Business were suggested by Council Members for future agendas: A. Mayor Pro Tem Ayer suggested a reception for the two Council Members who were leaving the Council. He felt it would be an appropriate way for the community to express appreciation for all their dedication. He asked staff to provide ideas for dates and arrangements. 12. The Council convened into the Executive Session to discuss legal matters (considered action in In Re: Flow and discussed County vs. City), real estate (considered acquisition of land near the airport for right-of-way for a proposed road and considered acquisition of land for a new fire station) and personnel/board appointments. No official action was taken. 15 16 City of Denton City Council Minutes May 15, 1990 Page 16 With no further business, the meeting was adjourned. BOB CASTLE~~~,~ CITY OF DENTON / DENTON, TEXAS / ~F~N~FE~ WALTERS C~TY SECRETARY CITY OF DENTON 3266C