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Minutes July 10, 1990CITY OF DENTON CITY COUNCIL MINUTES July 10, 1990 The Council convened into the work session at 5:15 p.m. in the Civil Defense Room. P£esent: Mayor Castleberry: Members Alexander, Trent Mayor Pro Tem Boyd; Council Aye=, Go=ton, Hopkins, and Absent: None 1. The Council convened into Executive Session to discuss legal matters (considered action in Kelsoe vs. City. Richardson vs. City, and Morris vs. City). real estate, and personnel/boa£d appointments. 2. The Council held a discussion and considered the Majoc Budget Issues Report. Lloyd Harrell, City Manager, outlined the format for the major budget issues. The report outlined the policy issues which staff perceived the Council would have to deal with in the budget process in making community issue decisions with long range effect, giving alternatives for dealing with the issues, outlining the implications of the decisions, and making a start recommendation on th~ issues. Harrell provided an explanation of the exhibits included in the report. Budget priorities were outlined in Exhibit A. The print out of revenues primarily from the General Fund was provided in Exhibit B outlining previous year's actuals. current budget, and an estimate for the next fiscal year. Each individual department's expenditures out of the General Fund were summarized in Exhibit C. Supplemental packages were listed and ranked in Exhibit D. Harrell stated that the budget presented was a cut back budget with no new positions. The cause of the budgetary problems were twofold. The economic downturn in Texas had finally caught up with property rate appraisals with an estimated loss of approximately $1 million in property tax revenue as a result of re-evaluations. The second cause was the decrease in projected sales tax revenue. The current budget showed a total revenue of approximately $125 million. The proposed budget attempted to keep the city's financial integrity valid, concentrated on reductions without service cutback and attempted to track Council priorities. Harrell stated that the first major issue concerned itself with the level of the General Fund Reserve which was money set aside fo£ unexpected emergencies. Traditionally. the Council had asked for a fund reserve level of 8-10% of the total expenditures of the General Fund. At the end of the current City of Denton City Council Minutes July 10, 1990 Page 2 budget year, it was projected that the city would have a General Fund Reserve level of approximately 12%. The proposed budget recommended reducing the fund balance to a 9.7% level which would make approximately $575,000 available to assist in balancing the proposed budget. Decreasing the reserve fund level could have an adverse effect on the bond rating. Council would need to decide if it were appropriate to use the funds and decrease the fund reserve level or acquire funds by increasing the tax level. Council Member Ayer questioned the impact that decreasing the reserve level would have on the bond rating. John McGrane. Executive Director for Finance. stated that bond rating companies would look at long term trends and would examine repeated use of fund reserves. The second major budget issue dealt with revenues. Ha£rell stated that property tax assessments from the preliminary tax roll provided by the Denton Central Appraisal District had decreased approximately $100 million. Because the city experienced a substantial drop in assessed values from the preliminary roll to the final tax roll during last year's budgeting process, staff had attempted to take a conservative approach for the proposed budget and anticipated another $50 million drop from the preliminary roll to the final tax roll which was an additional 2 1/2% decrease in expected property tax revenue. Assuming that the projections were correct, the city would be operating with approximately $1 million decrease in property tax revenue which would need to be accommodated in the proposed budget. The staff recommended increasing the actual tax rate 3~ making the tax rate $.6483 per $100 valuation which would actually be an effective tax decrease. In order to bring revenues to an even level with the current year. Council would be required to levy a 5 1/2~ tax increase which would be a 0% effective tax increase. Staff proposed four alternatives. The first alternative maintained a tax rate of $.6183 per $100 valuation and required Council to find $578.000 in additional revenues or reduce expenditures by that amount. With a 3~ tax rate increase to $.6483 pez $100 valuation, the proposed budget balances. If the tax rate were increased by 5 1/2~ per $1OO valuation to $.6783 per $100 valuation, the Council would have an additional $481.000 worth of revenue to be budgeted. The final proposed alternative would raise the rate to the 8% rollback rate of $.6969 per $100 valuation and generate $936.000 of new revenue. City of Denton City Council Minutes July 10, 1990 Page 3 Ha£rell stated that sales tax revenue had been projected at a 2% increase in the proposed budget. Each percentage of inc£ease in the estimate would add an additional $51,000 worth of revenue. If the projected sales tax revenue were cut back to the current year's level of .6 of 1%, the proposed budget would need to be cut an additional $71,000. Other. revenue sources for the city primarily were fines and fees. The city had not had a comprehensive increase in fines and fees since 1982. The staff proposed to supply Council with a ~eport on inflationary increases and . a su£vey of other Met£oplex city charges for various fines and fees with a p£oposal which would increase the revenue by $100,000. Harrell stated that the next major issue dealt with service issues. Although bond money had been authorized to build a new fire station, the approximately $480,000 needed for operation and maintenance costs of the facility when it opened was not available. Council had made a policy three years ago to set aside a ce£tain amount of money each year to build up a reserve fund so the fire station could be put on line without making a major impact on the budget. Tough budgets have not allowed the fund to grow as rapidly as it had been hoped. The proposed budget recommended keeping the funding level at $150,000 for another year. The funding would increase the reserve total to $615,000. Another major issue dealt with positions that were proposed to be eliminated in the new budget. Harrell stated that the positions proposed to be eliminated would be the Animal Control Supervisor', Plumbing Inspector, Maintenance Worker at the Airport, and an Intern for the Quest program. Staff would try to find an open position within the organization to place anyone currently holding a position proposed to be eliminated. Council Member Gorton asked staff to research the effect on city staff and resources of the county's proposal to make a stricter leash law. Council Member Trent questioned whether elimination meant leave the position open or actually eliminate. Ha£rell stated that effective October 1 the positions would be totally eliminated. In addition to elimination of some positions, the proposed budget recommended that several vacant positions be held open for part of the year in order to help balance the budget. The positions which were recommended to be held open were Park Planner, Recreation Specialist, and Civic Center Supervisor. The positions would remain in the budget but not be filled. City of Denton City Council Minutes July 10, 1990 Page 4 Harrell stated that in order to not eliminate or hold open the positions, an additional $137,700 worth of revenues would have to be found. Harrell stated that another ma]or issue was salary adjustments for city employees. Staff recommended that no across the board increases be granted and all merit increases frozen effective october 1. With an estimated increase in health insurance rates of approximately 17%, no increase would in fact be a decrease. Another alternative would be to reinstate the merit increases which would require an additional $267,000 worth of revenue. The second alternative would eliminate merit increases and provide for across the board increases which would require an additional $163.000 worth of revenue. The third alternative would bring various job classes to minimum market as determined by the market survey conducted by the Personnel Department and allow normal merit increases which would require additional revenue of $1.635.000. Benefits adjustments was another major issue to be addressed, The only benefit adjustment recommended by staff was an increase in the fire pension program to the 9% level. The benefit adjustment for the fire pension program was required by State ..Law. Harrell stated that another issue of concern was the human services area. The committee recommended an increase of approximately $21.900 over the current year level of funding. Staff recommended a decrease of 10% from the current year. One alternative would maintain the current level and would require additional revenue of $11.280. If Council chose the Human Services' recommendation, an additional $33.180 of revenue would be needed. Harrell reported that the next major issue was tax exemptions for persons over 65. Council's goal had been to get the exemption to $25o000 by adding $1.000 a year to the figure. The proposed budget recommended increasing the exemption $1.000 bringing it to $19.000. If Council decided to skip a year and remain at the $18.000 level. $14.627 would be available for other purposes.. If Council chose the alternative to increase the exemption to $25.000. $87.762 worth of new revenue would need to be found. The next major issue facing Council would be the capital improvements program. In 1986. voter's approved a $21 million bond issue based on the fact that there would not be a tax increase to finance projects based on a conservative growth rate of about 8% in assessed value per year. Last year's growth rate was about .3 of 1%, and Council responded by extending the program from five years to seven. The current City of Denton City Council Minutes July 10. 1990 Page 5 year's growth property taxes. tare shows a 7% decrease in the amount of Staff recommended that no bonds be sold in the next year and all building related projects (two recreation centers, a library facility and a law enforcement center) and indefinitely postpone the projects until there was an increase in the growth rate. To keep all projects on schedule would require an approximate 5~ increase in the tax rate for debt retirement purposes. Street improvements were the number one priority for the Council. Harrell stated that staff addressed the issue in the proposed budget. A 2~ tax increase would raise approximately $370,000 in revenue. The current budget funded approximately 25 miles of street improvements over and above what was spent on the capital improvement program. Staff recommended that an increase in street improvements could most effectively be used in the paver/relay program. The additional tax rate revenues would allow the staff to do seven additional miles of streets. Har£ell stated that there were several other budget items aboUt which Council needed to be aware. The proposed budget recommended elimination of funding of half of the fees for youth athletic officials and elimination of $200,000 for potential court judgments for Flow Hospital. The auto accident liability program proposed in the new budget recommended that any employee having an accident in a city vehicle, which was clearly the employee's fault, would be responsible for 10% of the cost up to $250 per accident. It was anticipated that a $50.000 savings would be realized for the insurance fund. Harrell stated that the roof of City Hall was in critical need of repair which would cost approximately $133,000. Staff recommended in the proposed budget that when certificates of obligation were issued for the lease/purchase of vehicles enough funds be included to finance the roof repair. As mandated by charter, the utility budget was presented to Council unchanged from the Public Utilities Board's recommendation. No net new positions had been requested in any of the utility funds. The electric utility recommended no rate increase, water utilities recommended an overall rate increase of 12%. wastewater utilities recommended a 9% rate increase and the sanitation fund a 6% rate increase. Harrell stated that economic development was a very important issue for the city. The proposed budget would not help move the city towards the goal of economic development because of the cut back in services, the hold on employee salaries, and the cut back in capital improvements in an effort to be responsible to the citizens and hold the tax rate down. City of Denton City Council Minutes July 10. 1990 Page 6 2. The Council considered indicating to the Human Resources Committee the amount of funds which would be allocated to the Committee during the 1990-91 fiscal year. LLoyd Harre11 requested the Council to recommend that the Human Resources Committee submit two additional budgets, one which kept .the allocation exactly the same as the current year which was $112.500 and the second budget reflecting the 10% reduction in services. The budgets would give the Council additional options when the issue was debated. Council Member Hopkins recommended that the committee follow the recommendation of the City Manager. Council Member Gorton recommended that recommendation be presented to show a excluding the Community Food Room. the figure for the figure including and 4. The Council was to hold a discussion and consider a contract with College Station for the sale and purchase of power and energy. The item was to be considered during the regular CoUncil session. The Council then convened into the regular meeting at 7:00 p.m. in the Council Chambers. Present: Mayor Castleberry; Mayor Pro Tem Boyd; Council Members Alexander. Ayer. Gorton. Hopkins. and Trent Absent: None 7:00 p.m. 1. The Council considered a resolution of appreciation for Jim Darter. The following resolution was considered: City of Denton City Council Minutes July 10, 1990 Page 7 RESOLUTION NO. RP0-031A Jim E. Darter WHEREAS, Jim E. Darter, Captain, in the Fire Department, is retiring after 20 years of dedicated service to the City of Denton since his employment on February 1, 1970; and WHEREAS. during his career with the City, Jim E. Darter has consistently maintained an attitude of cooperation with and dedication to the stated goals of the Fire Department of the City of Denton; and WHEREAS, Jim E. Darter has exhibited outstanding expertise, dedicating much time and effort in assisting with the work of the Fire Department and has shown great spirit in encouraging community involvement in the best interests of the citizens of Denton; and WHEREAS. Jim E. Darter has always served above and beyond the mere efficient discharge of his duties and has responded to his duties in a loyal, trustworthy and extremely faithful manner, in a spirit of cooperation with his fellow employees, and in the best interests of the citizens of the community; NON, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: That the sincere and warm appreciation of the City Council be formally conveyed to Jim E. Darter in a permanent manner by spreading this Resolution upon the official minutes of the City Council and forwarding to him a true copy hereof. PASSED AND APPROVED this lOth day of July, 1990. BOB CASTLEBERRY. MAYOR Attest: Jennifer Walters, City Secretary Approved as to leqal form: Debra Adami Drayovitch, City Attorney By: City of Denton City Council Minutes July 10, 1990 Page 8 Got=on motioned, Boyd seconded to approve the resolution. On toll vote, Trent "aye," Alexander "aye," Hopkins "aye," Go=ton "aye,'. Ayer "aye," Boyd "aye," and Mayor Castleber=y "aye." Motion ca=tied unanimously. Mayo= Castlebe==y presented a copy of the resolution and a @laque of appreciation to Jim E. Darter. Presentation of Yard of the Month Awards. Mayor Castlebe==y presented July Yard of the Month Awards to Shirley Goldfield, Paul and Paula Carpenter, Andre J. "F=enchy" Rheault, Mr. and Mrs. Charles Hath.son and McDonald's. Presentation of Governor's Community Achievement Award. Cecile Carson, Administrative Analyst, repotted that Denton was the 1990 recipient of the Governor's Community Achievement Award. Ms. Carson and Jeannie Mo==ison of the Beautification Commission were present in EI Paso to accept the award on behalf of the city from Mrs. Rita Clements. Bonnie Tyler and Mazy Ann Mu=key of the Beautification Commission joined Ms. Ca=son in presenting the plaque to the Mayor and Council. Public Heatings A. The Council held a public hearing and considered approval of a resolution of the City of Denton, Texas, designating certain officials to act on behalf of the City in dealing with the Texas Parks and Wildlife Department to participate in the grant programs certifying the City as eligible to receive assistance under the programs. (Parks and Recreation Advisory Board recommends approval.) Steve Brinkman, Director of Parks and Recreation, stated that the request to the Texas Parks and Wildlife Department asked fox matching funds for the development of the North Lakes Park project. The project was part of the 1986 bond issue. Approximately $800.000 had all ready been set aside for development of North Lakes. The grant would match up to $500,000 making a total of $1.3 million available fox improvements if the grant were awarded. The funds would be used toward const:uction of four softball fields and five soccer fields plus all the infrastructure and the trail system which would go through the park area. The Mayor opened the public hearing. No one spoke in favor. No.one spoke in opposition. City of Denton City Council Minutes July 10, 1990 Page 9 The Mayor closed the public hearing. The following resolution was considered: RESOLUTION NO. R90-032 A RESOLUTION OF THE CITY OF DENTON, TEXAS, DESIGNATING CERTAIN OFFICIALS TO ACT ON BEHALF OF THE CITY IN DEALING WITH THE TEXAS PARKS AND WILDLIFE DEPARTMENT TO PARTICIPATE IN THE GRANT PROGRAMS CERTIFYING THE CITY AS ELIGIBLE TO RECEIVE ASSISTANCE UNDER THE PROGRAMS; AND DECLARING AN EFFECTIVE DATE. Ayer motioned. Gorton seconded to approve the resolution. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye." Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. Consent Agenda Council Member Ayer requested information about being replaced because it had exceeded the expectancy of 60 months and had in excess of seemed like relatively few miles. the ambulance normal life 42.000 which John Cook, Fire Chief, responded that ambulances were kept for five years, the first two in front line service and the latter three on a standby basis. The unit to be replaced was the last gasoline unit and would be replaced by a diesel unit. The mileage was low compared to a passenger car but for an ambulance which runs very hard and very quickly, stopping and starting a great deal, the strain and stress on the chassis was more than would be seen on an average unit. The ambulances also had a tremendous amount of strain on the electrical system because of all the equipment. Alexander motioned, Ayer seconded to approve the Consent Agenda as presented. Motion carried unanimously. Consent Agenda A. Bids and Purchase Orders: 1. Bid 91110 - Type I Ambulance 2. Bid 91118 - Truck Beds and Bodies 3. Bid 91122 - Air Switches city of Denton City Council Minutes July 10, 1990 Page 10 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. (5.A.1. - Bid 91110, 5.A.2. - Bid 91118, 5.A.3. - Bid 91122) The following ordinance was considered: NO. 90-094 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. Hopkins motioned, Gorton seconded to adopt the ordinance. On roll vote, Trent "aye." Alexander "aye," Hopkins "aye," Gorton "aye," Ayet "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. B. The Council considered adoption of an ordinance abandoning and vacating a portion of Mary Lee Street, a public right-of-way located within the City of Denton, as more particularly described herein. The following ordinance was considered: NO. 90-095 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ABANDONING AND VACATING A PORTION OF MARY LEE STREET, A PUBLIC RIGHT-OF-WAY LOCATED WITHIN THE CITY OF DENTON, AS MORE PARTICULARLY DESCRIBED HEREIN; AND DECLARING AN EFFECTIVE DATE. Rick Svehla, Deputy City Manager, reported Mary Lee Street was located off Cooper Creek Road adjacent to the Safety Kleen operations. Several months ago, Safety Kleen replatted the entire subdivision which was reviewed by the Planning and Zoning Commission and Council. The approved plat determined that the city no longer needed the Mary Lee street because Safety Kleen was expanding into the areas that the street was originally built to provide access. The approval of the replat eliminated the need for the street. Official abandonment of a street must be done by ordinance. Council Member Boyd questioned if it had been a practise to sell property in the past. City of Denton City Council Minutes July 10, 1990 Page ll Svehla stated that normally there would be remuneration for the city because there would be some value to the piece of ground. When Safety Kleen replatted the piece of ground, they provided the right-of-way which was required in the replat and also provided additional right-of-way on Cooper Creek. Staff determined that since the footage and value were the same there would.be no need for remuneration. The abandonment would also allow Safety Kleen to proceed with an expansion project. Hopkins motioned, Gorton seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye." and Mayor Castleberry "aye." Motion carried unanimously. C. The Council considered adoption of an ordinance of the City of Denton, Texas, approving a compromise settlement and release of all claims for pending litigation between the City of Denton and Dorothy Perry. The following ordinance was considered: ', NO. 90-096 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A COMPROMISE SETTLEMENT AND RELEASE OF ALL CLAIMS FOR PENDING LITIGATION BETWEEN THE CITY OF DENTON AND DOROTHY PERRY; AND DECLARING AN EFFECTIVE DATE. Alexander motioned. Ayer seconded to adopt the ordinance. On roll vote, Trent "aye." Alexander "aye," Hopkins "aye," Gorton "aye," Aye£ "aye," BOyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. D. The Council considered adoption of an ordinance approving a contract between the City of Denton and Minor and Minor Database Design for the GIS System. The following ordinance was considered: NO. 90-097 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND MINER AND MINER, CONSULTING ENGINEERS, INC. FOR THE DESIGN AND IMPLEMENTATION OF DATABASE AND USER INTERFACE SOFTWARE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. City of Denton City Council Minutes July 10, 1990 Page 12 Robert E. Nelson, Executive Director for Utilities, stated that within the Geographic Information System proposal was a proposal to have Miner and Miner provide the Utility Department with a database consulting service. The purpose of the contract was for Miner and Miner to design the database interface and entry system for GIS for electric, water, wastewater and some land use items. Gorton motioned, Ayer seconded to adopt the ordinance. On £oll vote, Trent "aye," Alexander "aye," Hopkins "aye," Go£ton "aye," Ayer "aye," Boyd "aye." and Mayor Castleberry "aye." Motion carried unanimously. E. The Council considered adoption of an ordinance authorizing the Mayor to enter into an agreement between the City of Denton and Deloitte & Touche as auditors for the fiscal year ending September 30, 1990. The followinq ordinance was considered: NO. 90-098 AN ORDINANCE AUTHORIZING THE MAYOR TO. ENTER INTO AN AGREEMENT BETWEEN THE CITY OF DENTON AND DELOITTE & TOUCHE AS AUDITORS FOR THE FISCAL YEAR ENDING SEPTEMBER 30° 1990, AND PROVIDING AN EFFECTIVE DATE. Lloyd Harrell, City Manager, stated that the issue had been discussed at a work session. Council had made an informal decision to proceed with the relationship with Deloitte & Touche for the current year's audit, and the ordinance formalized the decision. Council Member Ayer questioned if the general auditing standards were summarized in a form that would be available for Council review. John McGrane. Executive Director for Finance, stated that the standards were set by various boards, such as the Governmental Accounting Standards Board. which made regulations on how certain transactions or accounting procedures should o~ should not be done, and the document was quite lengthy. Boyd motioned, Gorton seconded to adopt the ordinance. On roll vote. Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. F. The Council considered adoption of an ordinance amending Section II of the franchise granted to Lone Star Gas Company by Ordinance No. 82-56 to provide for an amended franchise fee to be paid by Lone Star Gas Company for the use of the public streets. (Final Reading) City of Denton City Council Minutes July 10, 1990 Page 13 NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SECTION II OF THE FRANCHISE GRANTED TO LONE STAR GAS COMPANY BY ORDINANCE NO. 82-56 TO PROVIDE FOR AN AMENDED FRANCHISE FEE TO BE PAID BY LONE STAR GAS COMPANY FOR THE USE OF THE PUBLIC STREETS; AND DECLARING AN EFFECTIVE DATE. Mayor Pro Tem Boyd questioned that a phrase in Section I stating "tax, fee or charge of three percent (3%)" was actually refe£ring to a fee and not a tax or charge and may be more accurate to amend the section to state a fee. Debra Drayovitch, City Attorney, stated that the "tax, fee or charge" language was in the current agreement and that phrase was used in another section of the agreement which stated 3% tax, fee or charge would be in lieu of any and all other charges that the city could collect. Lloyd Harrell, City Manager, stated that the agreement was included as a ma)or budget issue in last year's budget discussions and Council had given approval to increase the f~anchise fee to 3%. John McGrane, Executive Director for Finance, had been negotiating with Lone Star in an effort to make improvements in the franchise agreement including changing the annual payment to a monthly or quarterly payment. Lone Star's bottom line would be that they would agree to change the franchise'fee to 3% but make no other changes in the franchise agreement which would still be in effect for another 12 years. Mayor Pro Tem Boyd stated that there was a difference between and tax and a fee, and the ordinance was discussing franchise fees. By stating in the ordinance that it was a tax, the Council would limit themselves. Boyd also questioned on what basis the 3% charge was based. City Attorney Drayovitch stated that the 3% was based on gross receipts excluding industrial customers. Mayor Pro Tem Boyd stated that most gas companies would argue that the only thing sub)ect to the franchise agreement would be the product. Auditors have argued that not only the product should be included but all services related to supplying the service. Boyd wanted clarification in Section IV concerning the basis for the 3% fee using the original language. City oE Denton City Council Minutes Jury 10, 1990 Page 14 John McGrane, Executive Director for Finance, stated that he was in agreement with Mayor Pro Tem Boyd. However, Lone Star Gas was adamant in negotiations that the franchise agreement went into effect in 1983 and the only means by which the agreement could be changed was by mutual agreement. Initially, Lone Star had agreed to two changes. Through negotiations staff, had been unable to get agreement to two changes, Lone Star would agree to change only the percentage. Council Member Gorton left the meeting. Council Member Trent stated that he was not comfortable with the agreement. Mayor Castleberry questioned that if any wording were changed would the city have to re-negotiate the agreement. McGrane stated that the existing franchise ran through the year 2OO2 and any change would have to be' mutually agreed upon between the city and Lone Star Gas. Council Member Go£ton returned to the meeting. CounCil Member Trent made a motion to table the ordinance for fu£ther review and to be brought back for Council consideration at the August 7th meeting. Boyd seconded the motion. On ~oll vote, Trent "aye," Alexander "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 authorizing the Mayor to execute an agreement between the City of Denton and the cities of College Station, Bryan, Denton, Garland and Greenville, Texas for the sale and purchase of wholesale electric service. (Public Utility Board recommends approval.) The following resolution was considered: RESOLUTION NO. R90-033 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE CITIES OF COLLEGE STATION, BRYAN, DENTON, GARLAND AND GREENVILLE. TEXAS FOR THE SALE AND PURCHASE OF WHOLESALE ELECTRIC SERVICE; AND PROVIDING AN EFFECTIVE DATE. City of Denton City Council Minutes July 10, 1990 Page 15 Robert Nelson, Executive Director for Utilities, stated that negotiations had been ongoing with College Station since 1989 for the sale of capacity and energy to the City of College Station. College Station had previously been a full requirement purchaser of Gulf States Utilities. The contract with Gulf States and College Station would expire at the end of 1991 .. As a result of the negotiations, TMPA had been successful. Capacity sales for the pro)err were estimated to be between $10 and $11 million per year for a contract from 1992 through 1995 at which time College Station would be incorporated into the next TMPA project. Nelson stated that there were two components to the rate. One would be a capacity charge of $11.78 per KW peak each month and the energy would be sold at actual cost of energy generation plus .2 of a cent per KWH. Nelson stated that the City of Denton's receipts from the sale would be a net of approximately $973,000 in 1992. The Utility Board had reviewed the agreement and recommended approval. The other three cities had all ready approved the contract. Council Member Ayer questioned why the other three members had approved the agreement so quickly and the City of Denton had taken so long. Nelson stated that revenues would be distributed based on excess capacity. The City of Denton had the least amount of excess capacity of the member cities. Staff's concern with the agreement was based on the fact that accelerated growth in Denton would deplete the majority of the city's excess capacity thus eliminating capacity revenues. Council Member Ayer questioned if there were a written agreement with the other three cities agreeing to the methodology of distribution of capacity revenues. Nelson stated that the methodology was not in the contract. It was an agreement between the four cities at Planning and Operating Committee of TMPA plus the City Managers. Harrell stated that an agreement had been reached with the electric directors of the four cities on, the methodology of allocating revenues which would be formally ratified at the next TMPP meeting which the members were authorized to do under the TMPP agreement. Council Member Hopkins stated that she had some concern about authorizing the approval of the resolution without a written agreement on the methodology. City of Denton City Council Minutes July 10. t990 Page 16 Mayor Castleberry asked if the other three cities who had all ready signed the agreement could proceed and leave Denton out of the loop. Nelson stated that the other three member cities could proceed and Denton would lose approximately $1 million in revenue. Boyd 'motioned. Alexander seconded to approve the resolution. On roll vote. Trent "aye." Alexander "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 City Manager to execute a contract between the City oi Denton, Texas and the United States Army Corps of Engineers to administer project lands and water areas for recreation purposes and to operate, maintain and replace recreation facilities. (Public Utility Board recommends approval.) The following resolution was considered: RESOLUTION NO. R90-034 A RESOLUTION 'AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY OF DENTON, TEXAS AND THE UNITED STATES ARMY CORPS OF ENGINEERS TO ADMINISTER PROJECT LANDS AND WATER AREAS FOR RECREATION PURPOSES AND TO OPERATE, MAINTAIN AND REPLACE RECREATION FACILITIES: AND PROVIDING FOR AN EFFECTIVE DATE. Robert E. Nelson, Executive Director of Utilities, stated that within Denton's c°ntract agreements with the Federal government for the Ray Roberts reservoir, the city was required to pay for one half of the recreational facilities on Ray Roberts and all of the maintenance of the recreational facilities for a 50 year period of time. All properties bought in conjunction with the Ray Roberts project were bought in the name of the Federal government. The approximately 4600 acres involved in the recreational part of the project must be leased to the cities of Denton and Dallas so that they would have the legal rights to operate the pa~k facilities. In turn. the city planned to have a lease to the Texas Parks and Wildlife Department to manage the operation. The document had been approved by the Corps of Engineers. Texas Parks and Wildlife. the City of Dallas. and the Public Utilities Board. Gorton motioned. Ayer seconded to approve the resolution. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castlebetry "aye." Motion carried unanimously. City of Denton City Council Minutes July 10. 1990 Page 17 8. The Council was to receive a citizen report from Carl Young requesting a waiver of fees and extension of park hours for a girl's slow pitch tournament to be held in Fred Moore Park. The citizen withdrew his request. 9. The Council considered appointments to City of Denton Boards and Commissions. Boyd motioned. individuals: Ayer seconded to appoint the following 1990 Reappointments and New Appointments CITY OF DENTON BOARDS AND COMMISSIONS AIRPORT ADVISORY BOARD Jay Anderson Nancy Jane Hundley Allie Miller John Dulemba BOARD OF ADJUSTMENT Marcia Staff Ralph Morrison E. Ray Griffin BUILDING CODE BOARD Isabel Miller Greg Muirhead Wayne Allen Ernest F. Simpson CABLE T.V. ADVISORY BOARD Joe Holland C. C. Sexton CITIZEN TRAFFIC SAFETY SUPPORT COI~IlSSION John Erwin Carl Guess Mike Amador Jonathan Cott Georqe Kay COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE Rey Trejo Fred Hill Katie Flemming Rosemary Rodriquez Curtis Ramsey City of Denton City Council Minutes July 10. 1990 Page 18 DATA PROCESSING ADVISORY BOARD Robert W. Minnis B£yan Scott Cengiz Capan ELECTRICAL CODE BOARD Victor Sandoval Trenton Williams John W. Hardinger HISTORIC LANDMARK COMMISSION John Kimmey Joe Bailey Gerald Stone HUMAN SERVICES COMMITTEE Gloria Contreras Katy Dawson Sandy Kristofersen Jim Bezdek Terry Garrett LIBRARY BOARD Ed Coomes Jean Schaake Margret Chrisman PLANNING AND ZONING COMMISSION Jim Engelbrecht Fran Morgan William Kamman PARKS AND RECREATION Roy Appleton III Catherine Bell PLUMBING AND MECHANICAL CODE Richard Cooper Jeff Pe@loe Pete Work PUBLIC UTILITIES Roland Laney TMPA Tom Harpool Gorton made a motion for a five minute recess, Alexander seconded the motion. Motion carried unanimously. The Council recessed for five minutes. Mayor Pro Tem Boyd amended his motion to drop the Citizen's Traffic Safety Support Commission from the list of appointments. Hopkins seconded the amendment. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. City of Denton City Council Minutes July 10, 1990 Page 19 The Mayor made two appointments to the Denton Housing Authority. He appointed George F. Spuller and Charles Glasgow. 10. Miscellaneous matters from the City Manager. Lloyd V. Harrell, City Manager, re-appointed Frank Davila to a full three year term on the Civil Service Commission. Harrell stated that two dates had been set aside for the groundbreaking ceremony at Lake Lewisville for the installation of the hydro electric projects signifying start of construction at both Lake Lewisville and Lake Ray Roberts. The two dates suggested and agreeable to the Corps of Engineers were 10 a.m. on the morning of July 23rd or 10 a.m. on the morning of July ]0th. Council expressed a preference for July 23rd. 11. There was no official action taken on Executive Session items of legal matters, real estate, personnel or board appointments. 12. New Business Mayor Castleberry announced that the tentative date for the g£oundbreaking for Camping World was July 19th at 9 a.m. 13. The Council convened discuss legal matters, real appointments. into the Executive Session to estate, personnel and board. The Council reconvened into open session and took the following action: A. Randall Boyd motioned, Hugh Ayer seconded to appoint the following individuals to the Citizen Traffic Safety Support Commission: John E£win, Carl Guess, Mike Amador, Jonathan Cott, George Kay, and Dawn Baldwin Motion carried unanimously. The Council reconvened into Executive Session. City of Denton City Council Minutes July 10, 1990 Page 19 With no further business, the meeting adjourned at 10:45 p.m. DEPUTY CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON, TEXA7 - 5076M