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Minutes August 07, 1990CITY OF DENTON CITY COUNCIL MINUTES AUGUST 7, 1990 The Council convened into the work session in the Civil Defense Room at 4:00 p.m. PRESENT: Mayor Castleberry; Council Members Alexander, Ayer, Gorton, Hopkins and Trent. ABSENT: 1. Mayor Pro Tem Boyd The Council received staff budget presentations A. Introduction Lloyd Harrell, City Manager, stated that the department directors would be making the budget presentations and would concentrate on changes from last year's budget and other significant items. In almost every case, there were no ma~or increases in any budget. The following was the proposed calendar for future Council meetings: August 28 - budget discussions, September 4 - public hearing on the budget, and September 11 - study session for the budget. John McGrane, Executive Director for Finance, stated that in the proposed budget the divisional personal services totals included a merit increase, insurance increase and no salary savings deduction. Staff had prepared a new listing for personal services which adjusted those figures. B. City Services General Government - Catherine Tuck, Administrative Assistant, presented the General Government budget. She stated that the General Government budget included expenditures related to the City Manager's Offices, City Secretary, Mayor and City Council. There were no new programs and no new positions requested in the 1990-91 budget. Council Member Hopkins asked if the salary figure was $386,000 or $381,000. McGrane replied that if the budget were passed as proposed or without any merit or without any additional increase over 17% in the health insurance, the figure would be the $364,821. Council Member dues/publications. Trent questioned the figures on City Manager Harrell replied that the figure represented membership in organizations such as the National League of Cities, the Texas Municipal League and other staff professional organizations. NOTE: THERE IS NO PAGE 89 OR PAGE 90. City of Denton City Council Minutes August 7, 1990 Page 2 91 Code Enforcement - Cecile Carson, Administrative Analyst, presented this budget. She stated that there was a significant difference in personal services in her budget. Under the 1989-90 budget, the salary for the Administrative Analyst was in the residential solid waste budget and there was no clerk/typist. The current clerk/typist who was hired when the department was reorganized and placed under General Government was currently being paid by the animal control budget. City Manager Harrell stated that this was merely a bookkeeping item as there would be a similar decline in the residential solid waste budget and the animal control budget. Carson continued that special services had changed because in previous years, the amount of money used for mowing liens had been taken out of an accounts receivable account which was set up to handle that administrative fee. To clean up that bookkeeping item, $800 was added to the special services account to cover the filing of those liens in County court. Council Member Trent asked about the telephone expense. Carson replied that the figure represented the cost of the new phone system being installed as well as the actual use of the system. McGrane replied that under the new phone system, certificates of obligation were sold to fund the system. What was budgeted for telephone costs would help pay off the debt service. Council Member Trent stated that then there was really no way to reduce the cost of phone expense in department budgets. McGrane replied yes. Leqal - Debra Drayovitch - City Attorney, presented this budget. She stated that there were no major changes to current service levels proposed. She stated that salaries were up some due to insurance cost increases, supplies were up some due to the increase in fax charges, and maintenance was up due to increases in maintenance contracts on the PC's in her office. Council Member Trent asked about the department's coffee fund. Drayovitch replied that that expense came out of special services and was approximately $250 per year. Municipal Court - This budget was presented by Municipal Judge Sandra White. She stated that there were no major changes in her budget. She was proposing one supplemental package which was evening court for juveniles which she would like reviewed. 92 City of Denton City Council Minutes August 7, 1990 Page 3 Council Member Gorton asked the number of cases per month the evening court might handle. White replied approximately 50 cases per month. Planning and Development - Frank Robbins, Executive Director for Planning, stated that between the Planning Department, Building Inspections Department and Main Street which was a separate budget for the first time this year, there would be an approximate $17,000 savings from last year's budget. All overtime had been cut, major cuts in publications and cuts in travel/training. The previous organization of the Department included a Director, Planning Administrator, Senior Planner, two Urban Planners, Planning Technician, Administrative Secretary, -Secretary and a Clerk/Typist. The new organization of the department would include a Director, Urban Planner, Senior Planning Technician, Planning Technician, Administrative Secretary, and Secretary. The Planning Administrator and Clerk/Typist positions had been eliminated with the personnel being shifted to different categories in the organization. Mayor Castleberry stated that costs went up due to the reorganization. Robbins replied yes the cost went up but that there were cuts in other places to make up the difference. Building Inspection - Robbins continued with the Building Inspection budget. A plumbing inspector was being cut this year with an increase in vehicle maintenance due to the age of the vehicles. There was an increase in travel/training as the loss of the plumbing inspector required others to have more training to do that job. Council Member Gorton stated that mobile home parks were listed under the goals section. Was that to verify that they complied with current regulations. Robbins replied yes mainly regarding hook-ups with gas, water, wastewater, and electricity. Main Street - Robbins stated that this was the first year the Main Street was a separate item. Last year it was all in the Planning budget. There were no ma]or changes in the Main Street budget. City of Denton City Council Minutes August 7, 1990 Page 4 C. Public Safety Police Department - Mike Jez, Police Chief, presented' the Police Department budget. He stated that two years ago there were four divisions in the Police Department. Last year that was trimmed to three divisions and this year they were consolidated to one central budget. The programs would remain the same as last year with a major effort being placed on the continuation and expansion of the COPS program. The sundry category had the largest increase due to increase in local cash contributions for grants for the D.A.R.E. officer and the child abuse investigator. City Manager Harrell stated that that was a grant program where the Federal Government initially paid 100% of the cost for the first year and each year after that, the City was responsible for 20% of the cost of the programs. Council Member Alexander asked about the status of approval of those grants for the coming year. Jez replied that no information had been received yet. Council Member Gorton asked what the full dollar amount would be if the grants were not approved. Jez replied that a decision would have to be made whether to continue the programs and would have to fund 100% of the programs if not approved. Council Member Gorton asked how training for new officers was charged out. Jez replied that if came out of 8503 (travel) and 8522 (school/seminars). Fire Department - John Cook, Fire Chief, presented the budget for the Fire Department. He stated that his budget was a fairly conservative budget. It represented one major change from prior budgets in the area of overtime costs. Council Member Gorton asked if the supplies category included uniforms. Cook replied no that it would be in another area. Supplies included books, freight, janitorial services, laundry, etc. City of Denton City Council Minutes August 7. 1990 Page 5 The Operations Division had only one major increase in the category of 8042 - sworn personnel overtime. This was due to correcting overtime and taking up the slack for a new person when an individual retired. City Manager Harrell stated that the only way to impact the overtime budget, in this scenario, would be to take a piece of equipment out of service. No one was brought back unless at minimum manning level. Therefore, someone was needed to maintain the minimum manning. Traditionally, that was underbudgeted and when it went over budget, the slack was taken up by some other city budget so that all the units remained in service. This year a more realistic job of estimating the time was reflected in the budget. Cook continued with the Fire Prevention budget. There was a slight increase in personal services due to the employment of a fire protection engineer. This was a reclassification of an existing position at a higher salary. Those funds were made available through a reduction of the MS Coordinator position. There was a new category added "city testing', which represented tests from the arson lab. In the past, those tests had been donated but the lab could no longer afford to do that. The Emergency Medical Services budget represented an increase in sworn personal overtime for the same reason as stated earlier. There was an increase in schools/seminars because the Department was going to contract with HCA to provide a paramedic school in Denton at the Flow Campus. Normally an ambulance was purchased each year, but due to the budget shortfall, one was not proposed in the next fiscal year. D.' Municipal Services Municipal Services/Economic Development - Linda Ratliff, Economic Development Coordinator, stated that their budget represented a 4.8% 'decrease from the budget last year. The supplies category was increased due an increase in office supplies, fax charges, xerox copies, and freight. These charges were used for the preparation of proposals and presentations for industrial prospects. There was a decrease in the maintenance category. Total proposed budget was $163,846. Quest - The Quest budget was presented by Betty Wilkins, Program Coordinator. She stated that comparing the 1988-89 budget to the 1989-90 budget, the program had been severely cut. This year it would be cut down to her position only. Customer service and productivity would be the two key areas which she would be focusing on in the coming year. NOTE: PAGES 95-96 REMOVED DUE TO MACHINE ERROR. City of Denton City Council Minutes August 7. 1990 Page 6 Library - Joella Orr, Librarian, stated that there were two unknowns in her budget at this point. One was County funding .which a meeting was being planned for the following week. The other was the status of the literacy grant which possibly would be decided about mid-September. Her budget for next year was slightly less than for this year. In order to meet the target figure, book binding money had been eliminated. More information would be available next week. Environmental Services - Nonie Kull, Environmental Health Services Manager, stated that her budget included animal control and environmental health. There were no ma]or increases in the environmental health budget. The ma]or aspect of the animal control budget was the elimination of the animal control supervisor. This required the rescheduling of operations and the curtailment of evening hours of operation. Only emergency situations would be handled after 5 p.m. Council Member Gorton asked who would get the calls for a nuisance complaint or an emergency. Kull replied the dispatcher would get the call and forward the call to the animal control officer who would call the citizen and make the determination if the call was an emergency. A seasonal employee would be hired during the summer months as there usually was a large increase in calls during those months. Parks and Recreation - Director of Parks and Recreation Steve Brinkman stated that the Department was made up of four different budget areas. The Administration area handled most of the daily management and operations. For the Department as a whole, there were no new full-time positions. There were some part-time dollars added back in to Leisure Services to add back recreation center hours. There were three open positions, the Park Planner, the Therapeutic Recreation Specialist, and the Civic Center Supervisor which would cause some reduction of services in certain areas. In the administrative area, the reduced services would involve the six month delay of filling the Park Planner position. In the leisure services area, in addition to the two open positions, the reduced services include elimination of the payment to the youth sports leagues. In the park maintenance area and the building operations area, the level of services would remain the same. Council Member Alexander asked how many people were working in the Senior Citizens Center. Brinkman replied there were three full-time people and some building attendants which worked on a part-time basis. There were also volunteers from RSVP and SPAN which helped with the reception desk. 98 City of Denton City Council Minutes August 7. 1990 Page 7 Council Member Ayer requested a breakdown of income and expenses for the Goldfield Tennis Center and the golf driving range. Council Member Gorton asked for the number of days open and the number of actual hours open for the driving range. Personnel - Tom Klinck, Director of Personnel, stated that he would be presenting a brief overview of the 1990-91 compensation and benefits program followed by the Personnel/Employee Relations Department proposed budget. As the preliminary 1990-91 budget was looked at with revenue projections significantly down, the focus was quality delivery of citizen programs and services. To maintain that and to keep them in place plus minimize the potential for layoffs, it was proposed to maintain the staffing primarily to support the delivery of programs and services to the citizens. Thus there were no salary adjustments or market adjustments and no merit increases in the budget. It was important for Council to understand the consequence of no increases as it related to the competitive job market. No changes in compensation or no increases in compensation affected the City's ability to attract and retain quality employees. This year it was also compounded by an increase in the health insurance premium. The dependent health insurance increases currently proposed by Sanus was at 21% with the cap being at 22%. That was currently under negotiation. For those employees on the HMO only, it appeared that the increase would be a 1%-2% equivalent salary increase to make up the difference. For the employees on Sanus Plus, it would be a 2%-4% increase in order to make up the difference. There were no additional new programs recommended in the budget. There was a planned on-going update of TMR$ and a fire pension increase to 14% which was state mandated. Klinck continued with the Personnel budget which was 1.03% under the current budget. Additional funding was being requested in personal services which would fund two/thirds of the salary of the personnel representative for benefits which was formally funded in the previous health insurance fund. City Manager Harrell stated that formally, when the City was self-insured, 2/3's of the position was paid out of those funds. Now the entire amount was needed to be picked up by the General Fund. E. Engineering, Transportation and Airport Engineerinq - Jerry Clark, City Engineer, stated that he had four budgets to present. The Engineering budget had no new personnel with a slight increase in maintenance and supplies. A supplemental package was being requested to upgrade a computer which allow them to receive more information on programs for floodplain studies. City of Denton City Council Minutes August 7, 1990 Page 8 Council Member Ayer asked how personal services could remain the same when the amount budgeted was going up. Clark replied no new people were being added and that part of the cost was due to the rise in the health insurance. Also two positions were reclassified this year. The Traffic budget reflected a change in overtime policy where a lower salaried employee was responding to sign complaints. Uniforms were added to the budget and there was a decrease in the maintenance area of this budget. Street Patching had no new people in the proposed budget and a similar level of service. Street Construction added uniforms to the budget and had the same personnel as last year. Clark stated that the figures for Street Lighting came directly from the Utility Department based on average monthly charges. The estimate was down for next year as some of the expansions estimated were not done. Airport - Joe Thompson, Airport Manager, stated that the airport budget would remain the same except for the loss of one employee. There was' a proposal to eliminate the airport maintenance worker position. Special services was increased to cover the expense of contracting to mow the airport. City Manager Harrell stated that it was an offset in that part of the savings due to the elimination of the position would be used to contract out to mow the airport. Council Member Trent asked if that would be a real savings. Thompson replied that with the cost of fuel rising, it might balance out and not be a true savings. Council Member Trent asked how many acres were being mowed. Thompson replied approximately 200 acres. Deputy City Manager Svehla stated that contract was derived from estimating $14-$15 per acre for four to five times. Concern was expressed by the Council need more mowing than what was proposed. the amount of the mowing 200 acres at that the airport might Council Member Ayer asked how many times it was being mowed now. Thompson replied every five weeks. 100 City of Denton City Council Minutes August 7, 1990 Page 9 Council Member Ayer asked if that had been a traditional figure. Thompson replied yes. F. Sanitation/Equipment Services Community Services - Bill Angelo, Director of Community Services, presented this item. The Drainage budget did not have many changes for the proposed budget. There was a $12,000 cut in what was requested to maintain services. That amount would be made up by either purchase or lease of equipment or the street sweeping area. A discussion was held regarding future drainage needs of the City and work needed. The Sanitation budget included several new packages designed to meet new Federal regulations. Some of these included a scraper rental for the landfill, a tire cutter for the landfill, a replacement pickup, parts for the scale at the landfill, and front load dumpsters. These packages were proposed in the budget assuming that commercial would not be sold. These expenditures would not be made until some type of decision had been made about the commercial business. Another proposed program was a curbside recycling pilot program. The Commercial budget assumed that the City would stay in the business. No new personnel would be required for the solid waste department. Community Services budget would remain the same. Fleet services would be unchanged. The Council convened into the Regular Session at 7:00 p.m. in the Council Chambers. PRESENT: Mayor Castleberry; Members Alexander, Trent. Mayor Pro Tem Boyd; Council Ayer, Gorton, Hopkins and ABSENT: None 1. The Council considered approval approval of the minutes of the regular sessions of June 5, 1990 and June 19, 1990 and the special call session of June 26, 1990. Alexander motioned, Ayer seconded to approve the minutes. Council Member Ayer asked to be allowed to abstain from voting on those items he had not participated in the discussion of and those items he had not had a chance to study. Motion on the minutes carried unanimously. City of Denton City City Council Minutes August 7. 1990 Page 10 101 2. The Council received an update from Dr. Roland Vela regarding the Texas Municipal Power Agency. Dr. Vela presented information on the overall condition of the plant and the financial conditions of the plant. 3. The Council received a citizen report from Donald Cox regarding the Outreach Library program at the Martin Luther King, Jr. Recreation Center. Mr. Cox stated that the service was too significant to be closed at this time. He understood that the library services were "never intended to be permanent" The people who used that service wanted it to be permanent. He asked that the Council not use the rational that the service was never intended to be permanent as a basis for justifying a decision to discontinue the service. He presented a petition of support for the continuation of the Outreach Program. 4. The Council received a citizen report from Reginald Jackson regarding the Outreach Library program at the Martin Luther King, Jr. Recreation Center. Mr. Jackson stated that after a meeting this morning with Steve Brinkman, Joella Orr and Betty McKean, that there were many misconceptions about what the project was suppose to do. His organization and the community felt the goal was to provide library service for the purpose of eliminating illiteracy. He also presented a petition of support for the program. He presented suggestions for continuing the library services at the MLK Center as suggested by the Collins Youth College Council: (1) a commitment be made by City officials to operate the library project until illiteracy was eliminated from the area the project served, (2) all City officials consider Denton's budgetary shortfall as a temporary financial condition which should reflect any cuts in library services, (3) as an alternative to complete termination of the King library project, operation of the project as a City operated reading room until adequate funding allowed the project to be restored to its present status, (4) MLk Advisory Committee would be responsible and have the authority to assure the continued operation and success of the King library and answer the to Library Director, (5) City officials continue to review the option to provide children from lower income families transportation from the King Center to the Fowler Library, (6) retain all current reading materials currently housed in the King Library, maintain the courier service currently in operation between the two libraries, recruit interns working for Information Science degrees at both Universities, obtain assistance from local, well-organized volunteer services establishing a volunteer board specifically for the reading room and continue the facility use agreement under which the library project had operated since moving to the King Center. 102 City of Denton ~.ity Council Minutes August 7, 1990 Page 11 Any decisions being made community include community who were properly equipped, the community. concerning the southeast Denton input, collected from individuals informed and willing to represent Mayor Pro Tem Boyd stated that it was his understanding that the program was intended as an outreach program to encourage use of.the library. He felt that the City would never be able to provide an adequate library in the sense that the community deserved. The emphasis ought not be to provide a separate but unequal library in the Black community but rather to provide a way to encourage children to begin using library facilities. Jackson replied that the primary goal for the community of southeast Denton was to invoke a wider interest and that it was not communicated well enough to the community in the two years the program had existed. He felt that right now, at this time, there was no use for the Fowler Library because there was no awareness being invoked in the community about the small library. A better communication process at the King Center would possibly increase awareness of the Fowler Library. Council Member Alexander stated that the response of the community indicated that the project might have been more successful than they realized. Council Member Hopkins stated that no decisions had been made at this time. It was in the nature of the job of the library staff to bring the item to Council. Consent Agenda Council Member Gorton requested that item 5.A.1. be pulled for special consideration. Gorton motioned, Boyd seconded to approve the Consent Agenda except for Item 5.A.1. Motion carried unanimously with Council Member Ayer abstaining for lack of information. A. Bids and Purchase Orders: 2. P.O. 998902 - J & S Equipment 3. P.O. ~98905 - Kone ~ngineers 4. Bid %1014 - White Glove B. Tax Refunds Considered approval of a tax refund for Harold R. Gore. Considered approval of a tax refund for Penders Music Store. City of Denton City Council Minutes August 7, 1990 Page 12 103 Item 5.A.1. was considered. Council Member Gorton stated that names of all of the companies were essentially the same except for one or two letters. He wanted to be assured that this was not one parent company that had three subsidiaries place bids. Tom Shaw, Purchasing Agent, replied that that appeared to be the case. There was an option to bring this purchase to Council as a single source because to the best of their knowledge, it was a single source. However, since they were not sure, they chose to go through the formal bid process in hopes that something else would be developed. The request was sent to numerous other people they assumed to be in this type of business. No one else replied. The quotes were from the factory, the northeast representative and the southwest representative. Council Member Gorton stated that essentially the difference was shipping. Shaw replied yes. Gorton motioned, Hopkins seconded to approve Consent Item 5.A.1. Motion carried unanimously with Council Ayer abstaining for lack of information. Agenda Member A. Bids and Purchase Orders: 1. Bid %1125 - Hydraulic Torque Machine 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.1. - Bid %1125) The following ordinance was considered: NO. 90-105 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, Hopkins seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously with Council Member Ayer abstaining for lack of information. 104 City of Denton City Council Minutes August 7, 1990 Page 13 B. The Council considered adoption of an ordinance providing for the expenditure of funds for emergency purchases of materials, equipment, supplies or -services in accordance with the provisions of state law exempting such purchases from requirements of competitive bids. (4.A.2 - P.O. ~98902, 4.A.3. - P.O. ~98905) The following ordinance was considered: NO. 90-106 AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR EMERGENCY PURCHASES OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING FOR AN EFFECTIVE DATE. Gorton motioned, Alexander seconded to adopt the ordinance. On roll vote, Trent "aye,', Alexander "aye," Hopkins "aye," Gorton "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously with Council Member Ayer abstaining for lack of information. C. The Council considered adoption of an ordinance authorizing the execution of a change order to a contract between the City of Denton and White Glove; and providing for an increase in the contract price. (4.A.4 - Bid ~1014) The following ordinance was considered: NO. 90-107 AN ORDINANCE AUTHORIZING THE EXECUTION OF A CHANGE ORDER TO A CONTRACT BETWEEN THE CITY OF DENTON AND WHITE GLOVE; PROVIDING FOR AN INCREASE IN THE CONTRACT PRICE; AND PROVIDING AN EFFECTIVE DATE. Gorton motioned, Hopkins 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. D. 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. (Third Reading) City of Denton City Council Minutes August 7, 1990 Page 14 Lloyd Harrell, City Manager, stated that the increase in the gas franchise was part of last year's budget discussion. At that time, the fee was included ($50,000) in last year's budget. Since that time, John McGrane had been working with Lone Star Gas to negotiate the contract to win other concessions regarding the frequency of payment. Lone Star was unwilling to do anything except change the amount from 2% to 3%. The concerns expressed by Mayor Pro Tem Boyd regarding the wording of the ordinance had been worked through by the Legal Department and Mayor Pro Tem Boyd and had improved the document. The following ordinance was considered: NO. 90-108 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. Boyd motioned, Gorton seconded to adopt the ordinance. vote. Trent "aye," Alexander "aye," Hopkins "aye," "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry Motion carried unanimously. on roll Gorton "aye." Item 7.A. was considered. 7. Resolutions A. The Council considered approval of a resolution temporarily closing the 100 block of North Elm Street, the 100 block of West Oak Street, the 100 block of North Locust Street and the 100 block of West Hickory Street on September 15, 1990. Jane Biles, Main Street Director, stated that the street closing was for County Seat Saturday. In the back-up material, petitions were circulated to the businesses on the Square and the area affected by the closure. There were signatures of all of the businesses represented with the exception of two. Two businesses would not sign the petition and would not oppose the street closing. All of the property owners who were not represented as business owners on the Square had been contacted by phone and told of the date of the meeting so that they could be present to oppose the closing if they desired. She did not receive any opposition on the phone. Council Member Trent expressed a desire to confirm that there was no one in the audience who opposed the street closing. 105 106 City of Denton City Council Minutes August 7, 1990 Page 15 No one in the audience expressed opposition to the street closing. The following resolution was considered: NO. R90-038 A RESOLUTION TEMPORARILY CLOSING THE 100 BLOCK OF NORTH ELM STREET, THE 100 BLOCK OF WEST OAK STREET, THE 100 BLOCK OF NORTH LOCUST STREET AND THE 100 BLOCK OF WEST HICKORY STREET ON SEPTEMBER 15, 1990; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motioned, Ayer 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. Council returned to the regular agenda order. 6. Ordinances E. The Council considered adoption of an ordinance amending Article I of Chapter 9 of the Code of Ordinances of the City of Denton, Texas ("Electrical Code") to provide for adoption of the 1990 National Electrical Code and adoption of amendments to the National Electrical Code; to provide for additions thereto; repealing all ordinances in conflict herewith: and providing for a penalty in the amount of $2,000.00 for violations therefor. (The Electrical Code Board recommended approval.) The following ordinance was considered: NO. 90-109 AN ORDINANCE AMENDING ARTICLE I OF CHAPTER 9 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS ("ELECTRICAL CODE") TO PROVIDE FOR ADOPTION OF THE 1990 NATIONAL ELECTRICAL CODE AND ADOPTION OF AMENDMENTS TO THE NATIONAL ELECTRICAL CODE; TO PROVIDE FOR ADDITIONS THERETO: REPEALING ALL ORDINANCES IN CONFLICT HEREWITH: PROVIDING FOR A PENALTY IN THE AMOUNT OF Sz,o00.OO FOR VIOLATIONS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. City of Denton City Council Minutes August 7, 1990 Page 16 107 Hopkins motioned, Alexander seconded to On roll vote, Trent '"aye," Alexander Gorton "aye," Ayer "aye," Boyd "aye," "aye.". Motion carried unanimously. adopt the ordinance. "aye," Hopkins "aye," and Mayor Castleberry F. The Council considered adoption of an ordinance prohibiting the parking of vehicles on both sides of Ponder Street from its intersection with Panhandle Street to a point 200 feet north of said intersection; providing a severability clause; providing a penalty not to exceed two hundred dollars. (The Citizens Traffic Safety Support Commission recommended approval.) Rick Svehla, Deputy City Manager, stated that Ponder Street narrowed between Egan and the bridge between Panhandle and Broadway. Initially the resident at 1122 Panhandle had asked for removal of parking. Staff tried to remove the parking for the whole block and a half, however, the residents in the block between Panhandle and Egan thought that would prohibit some of their activities. Council Member Ayer asked about removing the parking on Ponder between Panhandle and Egan. Svehla replied that residents on that block would not agree to the removal of the parking. The following ordinance was considered: NO. 90-110 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROHIBITING THE PARKING OF VEHICLES ON BOTH SIDES OF PONDER STREET FROM ITS INTERSECTION WITH PANHANDLE STREET TO A POINT 200 FEET NORTH OF SAID INTERSECTION; PROVIDING A SEVERABILITY CLAUSE: PROVIDING A PENALTY NOT TO EXCEED TWO HUNDRED DOLLARS; AND DECLARING AN EFFECTIVE DATE. Trent motioned, Alexander 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. G. The Council considered adoption, of an ordinance amending the fees for sign permits to provide for an annual fee for signs required by the State to be permitted. 108 City of Denton City Council Minutes August 7, 1990 Page 17 Frank Robbins, Executive Director for Planning, stated that the ordinance would repeal the immediate past sign fee ordinance. This was not part of the zoning ordinance. The ordinance added a fee for off-premise signs on Highway 380, Highway 77 and Interstate 35 east and west. These areas were regulated by the State alone and for which the City would be certified to regulate. State law required that there be an annual permit and the fee would be for the first annual permit and a fee for a subsequent annual permit. Council Member Hopkins asked if this ordinance had anything to do with the other sign ordinance. Robbins replied no it did not. Council Member Trent stated that there was no change in the fee. Instead of going to the State, it now went to the City of Denton. Robbins replied correct. The following ordinance was considered: NO. 90-111 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING THE FEES FOR SIGN PERMITS TO PROVIDE FOR AN ANNUAL FEE FOR SIGNS REQUIRED BY THE STATE TO BE PERMITTED: AN PROVIDING FOR AN EFFECTIVE DATE. Trent motioned, Alexander 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. H. The Council considered adoption of an ordinance of the City of Denton, Texas, approving the 1990 tax rolls. This item was pulled from the agenda. I. The Council considered adoption of an ordinance approving a compromise settlement release and dismissal of all pending and future claims for pending litigation between the city of Denton and Lary Morris, et al. The following ordinance was considered: City of Denton City Council Minutes August 7, 1990 Page 18 109 NO. 90-112 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A COMPROMISE SETTLEMENT RELEASE AND DISMISSAL OF ALL PENDING AND FUTURE CLAIMS FOR PENDING LITIGATION BETWEEN THE CITY OF DENTON AND LARY MORRIS, ET AL; AND DECLARING AN EFFECTIVE DATE. Alexander motioned, Hopkins seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously with Council Member Ayer abstaining for lack of information. J. The Council considered adoption of an ordinance approving a compromise settlement release and dismissal with prejudice of all pending and future claims for pending litigation between the City of Denton and Laura Richardson et al. The following ordinance was considered: NO. 90-113 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A COMPROMISE SETTLEMENT RELEASE AND DISMISSAL WITH PREJUDICE OF ALL PENDING AND FUTURE CLAIMS FOR PENDING LITIGATION BETWEEN THE CITY OF DENTON AND LAURA RICHARDSON, ET AL; AND DECLARING AN EFFECTIVE DATE. Alexander motioned, Hopkins seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously with Council Member Ayer abstaining for lack of information. K. The Council considered adoption of an ordinance providing for the purchase of real property from Lillian Irene Quesenberry. Bob Nelson, Executive Director for Utilities, stated that this was a 1 3/4 acre tract located at the northeast corner of the Service Center. The property owner expressed an interest in selling the property to the City. The appraised value of the property was $46,000 with a negotiated price of $35,000. Funds were available in the Electric Department Building CIP program to purchase the property. This would provide some badly needed storage area at the Service Center. 110 City of Denton City Council Minutes August 7. 1990 Page 19 The following ordinance was considered: NO. 90-114 AN ORDINANCE APPROVING A CONTRACT PROVIDING FOR THE PURCHASE OF REAL PROPERTY FROM LILLIAN IRENE QUESENBERRY; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander 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. L. The Council considered adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and Alan Plummet and Associates, Inc. for professional engineering services; and approving the expenditure of funds therefor. (The Public Utilities Board recommended approval.) Bob Nelson, Executive Director' for Utilities, stated that according to State law and the Texas Water Commission requirements, once a wastewater treatment plant reached a volume of 75% capacity, a master plan study must begin to.look at the next phase of construction for the facility. Denton had passed that 75% stage about two years ago. At that time, Council had entered into an agreement with Freese and Nichols to do a master plan. That plan called for a phased construction which first upgraded the existing facility to meet the newest standards and then to add a three million gallon a day capacity to that plant. The next stage was at 90% of the rated capacity, construction must be underway. Denton was anticipated to be at that stage in about three years. Proposals were received from four different engineering firms. The Public Utilities Board recommended the bid from Alan Plummet and Associates for its innovative presentation and suggested ways to save money. The contract was in two phases with an operational phase and a design phase. Council Member Gorton asked for an estimate for the final phases. Nelson replied approximately $700,000. Council Member Hopkins asked if the proposed engineer was from the area. Nelson replied yes that they were located in the Arlington area. City of Denton City Council Minutes August 7, 1990 Page 20 111 Council Member Trent asked if the money for the project was coming from the wastewater fund. Nelson replied that it would be paid for by bond funds and those bonds were sold and the interest was being paid for by the sewer revenue bonds. Council Member Trent asked where the study money was coming from. Nelson replied that the study money was also bond funds. The following ordinance was considered: NO. 90-115 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND ALAN PLUMMER AND ASSOCIATES, INC. FOR PROFESSIONAL ENGINEERING SERVICES; APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. Trent motioned, Hopk. ins 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. 7. Resolutions A. Item A. was considered earlier in the meeting. B. The Council considered approval of a resolution appointing Tom Harpool to the Board of Directors of the Texas Municipal Power Agency. The following resolution was considered: NO. R90-039 A RESOLUTION APPOINTING TOM HARPOOL TO THE BOARD OF DIRECTORS OF THE TEXAS MUNICIPAL POWER AGENCY AND DECLARING AN EFFECTIVE DATE. Gorton 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. 112 City of Denton City Council Minutes August 7, 1990 Page 21 C. The Council considered approval of a resolution assigning a portion of its authority to issue single family housing bonds to Denton County, Texas and resolving other matters in connection therewith. The following resolution was considered: NO. R90-040 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ASSIGNING A PORTION OF ITS AUTHORITY TO ISSUE SINGLE FAMILY HOUSING BONDS TO DENTON COUNTY, TEXAS AND RESOLVING OTHER MATTERS IN CONNECTION HEREWITH. 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. D. The Council considered approval of a resolution of the City of Denton, Texas, expressing its intent to contract to purchase from the Upper Trinity Regional Water District a portion of the raw water obtained from the Sulphur River Basin by the District by contract with the City of Commerce. (The Public Utilities Board recommended approval.) The following resolution was considered: NO. R90-041 A RESOLUTION OF THE CITY OF DENTON, TEXAS, EXPRESSING ITS INTENT TO CONTRACT TO PURCHASE FROM THE UPPER TRINITY REGIONAL WATER DISTRICT A PORTION OF THE RAW WATER OBTAINED FROM THE SULPHUR RIVER BASIN BY THE DISTRICT BY CONTRACT WITH THE CITY OF COMMERCE; AND PROVIDING AN EFFECTIVE DATE. Alexander motioned, Ayer seconded to approve the resolution. On roll vote, Trent "aye," Alexander "aye," Hopkins "nay," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried with a 6-1 vote. E. The Council considered approval of a resolution authorizing the City Manager to execute an agreement between the City of Denton and the University of North Texas for solid waste disposal service. (The Public Utilities Board recommended approval.) City of Denton City Council Minutes August 7, 1990 Page 22 Bill Angelo, Director of Community Services, stated that several weeks ago, staff had submitted a bid to the University of North Texas to provide for solid waste collection service. A few days ago, staff was notified that the city was awarded the bid although it was not the low bidder. The University had been with BFI for the last two years and with the City, three years prior to that. The contract would be for $11,600 per month. One additional employee would be needed in the solid waste division to provide the service. City Manager Harrell stated that there also was a provision in the contract which acknowledges that the City was in the middle of deciding what to do with its solid waste collection service and that the City would be released from the contract should the City decide to leave the solid waste business. The following resolution was considered: NO. R90-042 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE UNIVERSITY OF NORTH TEXAS FOR SOLID WASTE DISPOSAL SERVICE; AND PROVIDING AN EFFECTIVE DATE. Alexander 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. rate. Submission of the effective tax rate and rollback tax John McGrane, Executive Director for Finance, stated that the effective rate and rollback rate needed to be submitted to Council with no action required. The rates were calculated by Joe Rogers, Denton Central Appraisal District. The effective tax rate was $.65531 per $100 value and the rollback rate was $.6689 per $100 of value. Submission of the certified collection rate. John McGrane, Executive Director for Finance, stated that it was a requirement in the calculation of rates to certify what the collection rate would be on next year's taxes. Because of the way the law was written, it was better to estimate high than low. Staff was estimating a 100% collection rate. No action was needed to be taken. 113 114 City of Denton City Council Minutes August 7, 1990 Page 23 Council Member Hopkins asked what was a rule of thumb so far as what was acceptable to Moody's and Standard and Poors for an amount of debt reserve. What did the City need to have considering the proposed budget. McGrane replied that there was no definite set percentage. It was done on an individual city basis. A number of factors went into the bond rating such as local economy, the bond rating, the state and national economy, tax rates and income per capita. A general rule of thumb was about 8%-10% of total expenditures which would give the City about a month and a half to two months of operating revenues if something unexpected would happen. The bond rating agencies did not look at the percentage of reserve but rather within a five to ten year period, how many times that reserve was drawn upon. Mayor Castleberry recognized Jesse Coffey from the audience. Jesse Coffey stated that in the proposed budget, the City Manager stated that 8%-10% of the expenditures was for fair reserve. If that was the case, there was an indication of a cash reserve fund of $2,584,593. He asked the City Manager if that was correct. City Manager Harrell stated that he did not have a budget in front of him to verify that figure. Coffey continued with a question on page 92 of the proposed budget. The general fund undesignated balance showed was, as of 10-1-89, $3,159,593. Was that cash money in reserve. City Manager Harrell replied that that was undesignated fund balance. Coffey replied money set back to use for unexpected expenditures. He asked if the utility system fund had $43 million in cash for a reserve and if so, were they asking for a 12% increase in electric rates and a 9% increase in sewer rates and 6% increase in solid waste rates. City Manager replied that when the 8-10% rule of thumb of what should be and what bond ratings look at, that was referred, as a bond rating agency would when they look at a general obligation bond, of p~operty tax generated reserves. Bond agencies, when they rate a general obligation bond, do not look at the revenue system. A revenue system was looked at by the cash flows in electric, water, wastewater system to stand on their own. Those two were completely different. City of Denton City Council Minutes August 7. 1990 Page 24 Coffey asked again if the City had $43 million in cash in reserve in the utility system. John McGrane, Executive Director for Finance, stated that it was not purely cash. There were a number of bond covenants which required a ratio coverage which the City had to maintain in reserve which would be included in that number. There would be CIP. funds that would be included in the number. That was the fund balance which was required in both the electric, water and wastewater sewer system to keep those coverage ratios. He continued that a portion of that, $12 million, was made up for bond covenants. $6 million was in interest in sinking fund. Reserve fund requirements of $3.5 million, an emergency fund requirement under bond covenants of $250,000 and an extension and improvement fund requirement of of $2.3 million. 10. Miscellaneous matters from the City Manager. City Manager Harrell did not have any items to report. 11. There was no Executive Session held during the Work Session. 12. New Business No item of New Business was suggested by Council Members for future agendas. 13. The Council convened into Executive Session to discuss legal matters (considered action in In Re: Flow), real estate and personnel/board appointments. Council Member Hopkins left the meeting during the discussion of In Re: Flow. No official action was taken. With no further business, the meeting was adjourned. JEN~FER W)~TERS, CITY SECRETARY CIT%~-DOF DENTON, TEXAS BO~ CASTLEBERRY, MAYOR / CITY OF DENTON, TEXAS/ / 115 3290C