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Minutes February 19, 1991413 CITY OF DENTON CITY COUNCIL MINUTES FEBRUARY 19, 1991 The Council convened into the Work Session at 5:15 p.m. in the Civil Defense Room. PRESENT: Mayor Castleberry; Mayor Pro Tem Boyd; Council Members Alexander, Ayer, Gorton, Hopkins and Trent. ABSENT: None 1. The. Council convened into Executive Session to discuss legal matters (considered action in County vs. City and considered action in Kelsoe vs. City), real estate (considered authorization for acquisition of utility easements relating to the transmission line from the Hartley Field Booster Station to the Ray Roberts Water Plant), and personnel/board appointments (considered appointments to the Building Code Board, Community Development Block Grant Committee, the Electrical Code Board, the Historic Landmark Commission, the Human Services Committee, the Animal Shelter Advisory Committee, the Blue. Ribbon Committee for Storm Water Utility and the Sign Board of Appeals). 2. The Council received a report and held a discussion regarding the long range transportation plan for the City of Denton. (Transplan modeling project) Jerry Clark, City Engineer, stated that the key reason for doing modeling was to predict transportation/CIP needs, what type road would be needed and how many dollars would be needed. The modeling years selected were 1969 to validate which also calibrated to the COG model. 2010 was selected as the future year because it tied in with the Denton Development Plan and gave a 20 year forecast. The first modeling project which considered 90% of the thoroughfare plan was completed and in place. Levels of service for all but the three major arterials were at A or B which meant all roadways would operate all the time almost congestion free. The 2010 Phasing Plan was developed which scaled back to what was felt to be achievable levels of capacity considering tax impact. The modeling procedure identified corridors that Denton must provide transportation solutions for by 2010. These specific corridors were listed in order of importance - Loop 288, Teasley Lane, Lillian Miller, Dallas Drive, Bell/Eagle Intersection, and Eagle Drive. The following roads were shown to have adequate capacity at this time and would not need additional CIP funding other than resurfacing or urban section upgrades: Bonnie Brae - I35 to US77, Woodrow Lane - Paisley to McKinney to Colorado Blvd., Windsor Drive - Bonnie Brae to Old North Road, Stuart Road - Sherman to Loop 288, Willowwood - I35E to Bonnie Brae and Avenue A - I35 E to Eagle. 414 City of Denton City Council Minutes February 19, 1991 Page 2 The following projects were listed as critical for Denton to meet its transportation network needs for 2010: (1) the Loop 288 spur, South Loop 288 (I35E to 2181) and 2499 network of arterials; (2) develop a reliever road like Collins from Dallas Drive to US 377; (3) all the State Department of Highway and Public Transportation projects currently listed on the 5 year letting plan which included Teastey Lane - I35E to 2 miles south, US377 from I35E to 1830, US380 from US77 to US377, and I35E; (4) US77 from US380 to I35 to establish a north/south transportation corridor; (5) the southbound service road of I35E should be connected under I35E to San Jacinto. This would be done when I35E was reconstructed. Benefits identified by the Transplan study were that (1) Loop 288 - I35 to US380 would relieve most of the growth expected locally on the western section of US 380 from US77 to I35. Regional effects from McKinney, Decatur, and Dallas were still very heavy with major growth possible; (2) the Loop 288 spur was essential to keep the Golden Triangle mall area from being gridlocked at 50,000 vehicles per day; (3) the west portion of Loop 288 from 2499 to US380 would not generate enough traffic to warrant consideration by the State for funding. Western Blvd. through the Rayzor property and the west airport blvd. provided-more than adequate capacity with four lanes e~ch. The study also showed that signals would continue to be a major transportation issue requiring funding. The final positive benefit of the findings seemed to be that a significant portion of street funds could be directed to correcting deficiencies on residential streets. 3. The Council continued a discussion regarding the potential sale of the City's commercial solid waste system, consider possible alternatives, and gave staff direction. Lloyd Harrell, City Manager, stated that as staff analyzed the possibility of selling the commercial solid waste system of the City, various scenarios were developed. From that analysis, the scenarios were narrowed to three which were practicable. Scenario 1AAA involved a $1.9 million sale of the system and $1.7 million at the closing of the City landfill and dumping at the City's landfill at a rate of $1.25/yard. This would involved dumping all the solid waste possible into the landfill to try to close it before the start of Subtitle D. In approximately 18 months the City would be out of the landfill business and would have a transfer station located in the City. Scenario 2 involved $1.9 million sale of the system and directing the current solid waste at the same level that was now going to the landfill at a rate of $3.45 per yard dumping charge. This would cause the landfill space to be used up in approximately 6 years. Scenario 8 involved a City exclusive provision which was the SWAC recommendation. The back-up material provided with the agenda stated that staff was recommending.Scenario 2 or Scenario 8. Scenario 2 involved about $1.5 million more to the City to the year 2000 than did City of Denton City Council Minutes February 19, 1991 Page 3 415 Scenario iAAA. Waste Management, who was the best bidder, expressed concerns about dumping at the City's landfill at $3.45 rate. Although the contract the City had with all providers stated that the City could direct the waste stream, Waste Management, in its $1.9 million bid, assumed that they could take more of the trash to their landfill in Lewisville. As of Friday afternoon, Waste Management expressed another alternative which would take care of the $1.5 million and made Scenario 1AAA and Scenario 2 comparable. Bob Nelson, Executive Director for Utilities, presented the major points of the sale of the commercial system: (1) Waste Management would buy the commercial system at $1.9 million on April 1, 1991, (2) Waste Management would not raise immediately the commercial rates provided the City agreed to a landfill contract and the City did not institute a solid waste volume flow control, (3) the City would assist in transferring customers, (4) City equipment would be delivered in good order and (5) the City would not compete for five years and (6) present employees would be given the option for employment with Waste Management. Mayor Pro Tem Boyd questioned when Waste Management could raise the rates. Nelson replied he did not know but that there was open competition there. All Waste Management was saying was that the day they took on the City's customers, they would not raise the rates~ Mayor Pro Tem Boyd stated that the following day they could raise the rates. Nelson replied that there was a 30 day contract with most of the customers. At any rate, there was open competition. Part of the contract included a transfer station/long term disposal contract which had the following points: (1) Waste Management would dispose 650,000 cubic years of solid waste in the City's landfill in the next 18 months; (2) Waste Management would pay $1.25 per cubic yard for this volume. The current rate was $3.00 which would drop to $1.25 while the proposed rate, if the City retained the system would be $3.45; (3) Waste Management would construct a transfer station in or near Denton; (4) Denton would direct all solid waste generated in Denton to Waste Management transfer station when completed; (5) Waste Management would pay Denton $1.7 million as consideration for transfer station contract and as consideration for difference between $1.Z5 and $3.45 per cubic yards on the previously listed 650,000 cubic yards; (6) the payment schedule would be $1 million on opening of the transfer station and ~175,000 per year for the next four years. 416 City of Denton City Council Minutes February 19, 1991 Page 4 Mayor Pro Tem Boyd asked what the City's tipping fee would be at the transfer station. Nelson replied that the City's tipping fee would be tied down at $5.20 per cubic yard for residential volumes; (7) the rate would have a CPI and a Regulator Escalator from 1991 onward. Nelson stated that staff anticipated it would take from two years to 28 months in order to complete a transfer station. There would be one or two possible CIP escalators tied to that $5.20. This would be approximately $5.75 at the time the transfer station would open; (8) The City's $5.20 rate would not be assignable; (9) Waste Management would pay Denton an additional $1.5 million with payment terms of $.40 per cubic yard surcharge on the first 3,750,000 cubic yards of volume brought into the transfer station. Lloyd Harrell, City Manager stated that the surcharge would not apply to City residential service. Due to the lateness of the hour, it was decided that this item would be held until later in the regular session for completion. 4. The Council was to receive a report and hold a discussion regarding the City's Capital Improvement Plan and the budgeting process. This item was considered later in the regular session. 5. The Council was to receive a report and hold discussion regarding support and funding of the I35E corridor. This item was considered later in the regular session. The Council the convened into Regular Session at 7:00 p.m. the Council Chambers. in PRESENT: Mayor Castleberry; Mayor Members Alexander, Ayer, Trent. Pro Tem Boyd; Council Gorton, Hopkins and ABSENT: None 1. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance. City of Denton City Council Minutes February 19, 1991 Page 5 417 The Mayor presented a proclamation honoring Eagle Escapades. 2. Public Hearings A. The Council continued a public hearing and considered rezoning from Agricultural (A) District to Neighborhood (NS) District a 5.165 acre tract of land located about 600 feet south of University Drive on the west side of Bonnie Brae. (The Planning and Zoning Commission made no recommendation.) Z90-015 The Mayor opened the public hearing. Bob LeMond, presenting both the property seller and the purchasers of the property, stated that the doctors who bought the property wished to construct a medical office park with ancillary uses such as a pharmacy and optician's shop. LeMond stated that the site was chosen due to its midway location to the two current hospitals. The difficulty in the zoning was with the disposition of an approximately 1500 square foot pharmacy located within the approximately 35000-40000 foot gross area of usage. The proposal was in the Neighborhood Service district because the requirement of the pharmacy placed the development into the retail store/4000 square feet or less category on the zoning schedule. Otherwise, the proposal would be in the office district. LeMond stated that part of the staff report indicated that a Planned Development might be better zoning rather than straight zoning. He felt that a Planned Development would be too restrictive. He requested the Council to grant the zoning which would provide a quality facility in Denton. Mayor Pro Tem Boyd stated that one opposition to the proposal was under the assumption that this would be a "spec" office development. LeMond replied that that was not the case. A letter had been received from NCNB in regards to their approval of the proposal. Mayor Pro Tem Boyd asked for the reasoning for not proceeding with a Planned Development. LeMond replied that there was a problem with working with multiple owners in a Planned Development. There would be a great time factor in trying to get the exact office size, etc. plus the time factor with the presentations to Planning and Zoning and City Council. Council Member Trent asked if the pharmacy was a problem with the proposal, was there a consideration to relocate or drop the pharmacy from the proposal. 418 City of Denton City Council Minutes February 19, 1991 Page 6 LeMond replied that the pharmacist was an original partner in the project and the doctors wished him to stay with the project. Council Member Ayer asked if the pharmacy could be done with a specific use permit. LeMond replied that he would not have a problem with a specific use permit if it included ancillary uses for medical zoning so that there could be an optical shop or medical supply shop on the location if desired. He stated that the size of those shops would be very small. Council Member Ayer replied that in his perspective, decisions should always be made in terms of what could be built under the zoning and not what was promised would be built as conditions might change in the future. Brian Robinson, Administrator and Chief Executive Officer of Denton Community Hospital, spoke in favor of the project. He felt it would be a good project for the community. Space that many of the doctors occupy was inadequate as was accessibility. More office space was needed for doctors in the community and the proposed project would fill that need. Joyce Pool was opposed to the loc~ion of the project. She suggested reconsidering the site to the University side of the roadway. Bonne Brae was too congested. She felt that this project might be the start of strip commercial zoning. Mr. LeMond was allowed a five minute rebuttal.. LeMond stated that the project was not strip zoning. small facility. There was no place in the City infrastructure was better supplied. It was a where the The Mayor closed the public hearing. Frank Robbins, Executive Director for Planning, stated that the proposed rezoning was for the purpose of constructing professional medical offices and possibly a pharmacy. The property was located in a low intensity area. The proposed neighborhood service development would be allocated 3,357 intensity trips. As per the Denton Development Plan, the total number of allocated trips for this site was 310. Therefore, this site violated the general policy of proportionate share. There were unallocated trips in the study area which would be available. A disproportionate share analysis was required and included the following items: (1) adequate infrastructure - the infrastructure was in place to support the development, or would be required during platting of the property to be adequately constructed; (2) unusual topography - there was no noticeable unusual topographic features to this site or within City of Denton City Council Minutes February 19, 1991 Page 7 419 the study area which would provide intensity trips for allocation elsewhere; (3) compatibility - the site abuts an existing strip shopping center which was located in a moderate activity center; (4) other policies - strict compliance with the sign ordinance, landscape, and screening ordinances would be required on this site, if approved. The site also violated both the concentration and separation policies of the Denton Development Plan. The Plan stated that Neighborhood Service Centers should be located at least a half mile from other non-residential retail centers. The proposed development adjoined an. existing strip shopping center. Neighborhood Service Districts allowed many types of retail type uses. If there could be a guarantee that medical offices and ancillary type uses were the only uses of this site, then there would be no violation of this policy of the Denton Development Plan; however, with straight zoning there was no guarantee of the specific use. The staff report indicated that the 20% rule was in effect, however, since that time, major opposition had been withdrawn and the 20% rule was no longer in effect. The Planning and Zoning Commission had reviewed the proposal and a motion to approve the proposal failed with a 2-3 vote. Motion to deny did not receive a second. Therefore, the Planning and Zoning Commission did not make a recommendation. Council Member Hopkins asked how the numbers looked for office zoning. Robbins replied that for straight office the intensity numbers were significantly less and almost equaled the number of trips available for allocation. Council Member Hopkins felt that the proposal was not a strip center but rather a buffer between the residences and the shopping center. It certainly would never be zoned SF-10 or SF-16. She felt it was a good land use and that the pharmacy was incidental to the development. Council Member Ayer stated that if it were zoned as requested, then other categories in the Neighborhood Service uses would be permitted. Anything could be build there. He asked how difficult and what would be the procedure to obtain a specific use permit for a pharmacy and/or ancillary medical services if the zoning were changed to office. He was not willing to rezone as requested. Robbins stated retail uses whether more or less than 4000 square feet were not authorized within a SUP in that district. The ordinance would not allow such a zoning. The property would have to be rezoned. 420 City of Denton City Council Minutes February 19, 1991 Page 8 Council Member Ayer asked if there were any way to accomplish the proposal but to guarantee what would be built. Debra Drayovitch, City Attorney, stated that the Council could reconsider the SUP ordinance and revise the table of permitted uses. Mayor Pro Tem Boyd stated that if the proposal was approved as proposed, it would be using a good proportion of the intensity trips and would be overallocated. The rest of the area would have to be developed in low intensity manner and felt that that probably would not be the case. Mayor Castleberry asked if there could be a SUP on the requested zoning. Robbins replied that there could not be retail uses in an office district under the current ordinance. That was not authorized. Council Member Alexander asked how far along was the review process of the zoning ordinance and what would be a possible time line before modifications could be made to allow the requested zoning. Robbins replied it might be possible by the end of March or the first part of April if the Zoning Task Force and the Planning and Zoning Commission approve. Once that zoning was in place, it would be approximately 60 days. Council discussed possible solutions for the proposal which included straight office zoning, planned development zoning and changing the table of permitted uses. City Manager Harrell stated that an alternative might be to rezone the proposal to all office and when the space was decided for the pharmacy, rezone from office to retail business. After discussion regarding the change in request from Neighborhood Service to Office, LeMond made a formal request to change the DroDosed zoning. Hopkins motioned, Ayer seconded to instruct staff to prepare the proper instruments changing the zoning request to office. She also urged the Planning staff and the Zoning Task Force to consider the amendments to the zoning ordinance as quickly as possible. On roll vote, Trent "ayes" Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "ayes" and Mayor Castleberry "aye." Motion carried unanimously. City of Denton City Council Minutes February 19, 1991 Page 9 421 B. The Council held a public hearing and considered adoption of an ordinance rezoning a 4.844 acre tract of land from "PD" Planned Development District (PD 106) to "O" Office District on property located on the west side of Bonnie Brae approximately 500 feet north of W. Oak St., locally known as the Denton Community Hospital. (The Planning and Zoning Commission recommended approval) Z-90-017 The Mayor opened the public hearing. Brian Robinson, Administrator and Chief Executive Office-Denton Community Hospital, stated that the hospital had reached capacity and needed to expand to a third floor. Original plans had indicated a third floor which would house forty eight additional rooms. It was thought that the third floor was allowed and had been granted under previous zoning but learned that that was not the case. No one spoke in opposition. The Mayor closed the public hearing. Karen Feshari, Urban Planner, stated that staff had encouraged the applicant to request a rezoning to office district instead of amending the Planned Development as a hospital was an allowed use in an office district. In the event the hospital would relocate, another medical facility or related use would be able to obtain a certificate of occupancy without having to amend the planned development district. Another reason to rezone to office was that by applying for and obtaining an office zoning district, it allowed flexibility for the hospital to expand their facility without the additional time and money incurred in amending the planned development each time. The following ordinance was considered: NO. 91-024 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A CHANGE FROM PLANNED DEVELOPMENT "PD" DISTRICT TO OFFICE "O" ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR 4.844 ACRES OF LAND LOCATED ON THE WEST SIDE OF BONNIE BRAE STREET APPROXIMATELY 500 FEET NORTH OF WEST OAK STREET, AS IS MORE PARTICULARLY DESCRIBED HEREIN; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. 422 City of Denton City Council Minutes February 19, 1991 Page 10 Ayer 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." Consent Agenda Mayor Castleberry stated that staff requested Items 3.A.6. and 3.A.8. be pulled for special consideration. Hopkins motioned, Alexander seconded to Agenda with the exception of Items 3.A.6. carried unanimously. approve the Consent and 3.A.8. Motion A. Bids and Purchase Orders: 1. Bid #1216 - Four Door Sedan 2. Bid #1217 - Utility Truck Bodies 3. Bid #1219 - Traffic Signal Luminaire Poles and Ornamental Bases 4. Bid #1221 - Gasoline and Diesel 5. Bid #1213 - Wood Utility Poles 7. Bid #1215 - Scripture Street Paving and Improvements Item 3.A.6. was considered. Lloyd Harrell, City Manager, stated that a new ordinance was before Council reflecting a change in the dollar amount of the ordinance. The new amount was $11382.50 rather than the $11382.00 as was in the back-up material. Jerry Clark, City Engineer, stated that page 7 of the contract with GEONEX had been changed to reflect the following wording in section #23 "calendar day of delay resulting from actions of GEONEX". This change would mean that G~ONEX would not pay liquidating damages if the City held the documents for a lengthy period of time. Boyd motioned, Gorton seconded to approve Consent Agenda Items 3.A.6. and 3.A.8. with the noted changes. Motion carried unanimously. A. Bids and Purchase Orders: 6. P.O. #11979 - Rone Engineering RFP #1160 - GIS System City of Denton City Council Minutes February 19, 1991 Page 11 423 4. 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. (3.A.1. - Bid #1216, 3.A.2. - Bid #1217, 3.A.3. - Bid #1219, 3.A.4. - Bid #1221, 3.A.5. - Bid #1213) The following ordinance was considered: NO. 91-025 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. Ayer 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. B. ~he Council considered adoption of an ordinance accepting competitive bids and prgviding for the award of contracts for public works or improvements. (3.A.7. - Bid #1215) The following ordinance was considered: NO. 91-026 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. Gorton 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. C. The Council considered adoption of an ordinance providing for the expenditure of funds for professional engineering and testing services relating to the City's landfill. (3.A.6. - P.O. #11979) 424 City of Denton City Council Minutes February 19, 1991 Page 12 The following ordinance was considered: NO. 91-027 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT BETWEEN THE CITY OF DENTON AND RONE ENGINEERS FOR PROFESSIONAL ENGINEERING AND TESTING SERVICES RELATING TO THE CITY'S LANDFILL; AND PROVIDING FOR AN EFFECTIVE DATE. Boyd 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. D. The Council considered adoption of an ordinance awarding a contract for database conversion services to Geonex Martel, Inc. (3.A.8. - RFP #1160) The following ordinance was considered: NO. 91-028 AN ORDINANCE AWARDING A CONTRACT FOR DATABASE CONVERSION SERVICES TO GEONEX MARTEL, INC.; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motioned, Hopkins motioned with the noted changes. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. E. The Council considered adoption of an ordinance calling and ordering an election to be held in the City of Denton, Texas, on May 4, 1991, and, in the event a runoff election is required, on May 18, 1991, for the purpose of electing Council members to the City Council of the City of Denton, Texas to Places 1, 2, 3 and 4; ordering that the punch card electronic voting system adopted by Denton County be used in said election; designating voting Dlac~s and appointing election officials; providing for election supplies; and providing for notice of said election. The following ordinance was considered: City of Denton City Council Minutes February 19, 1991 Page 13 425 NO. 91-029 AN ORDINANCE ORDERING AN ELECTION TO BE HELD IN THE CITY OF DENTON, TEXAS, ON MAY 4, 1991, AND, IF A RUNOFF ELECTION IS REQUIRED, ON MAY 18, 1991, FOR THE PURPOSE OF ELECTING COUNCILMEMBERS TO PLACES 1, 2, 3, AND 4 OF THE CITY OF DENTON, TEXAS; ORDERING THAT THE PUNCH CARD ELECTRONIC VOTING SYSTEM BE USED; DESIGNATING VOTING PLACES AND APPOINTING ELECTION OFFICIALS; PROVIDING FOR NOTICE OF THE ELECTION; AND PROVIDING FOR AN EFFECTIVE DATE. Ayer 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. F. The Council considered adoption of an ordinance amending Chapter 27 ('Wreckers") of the Code of Ordinances to require vehicles towed under the rotation list be stored in a licensed vehicle storage facility located within the City of Denton. Rick Svehla, Deputy City Manager, stated that the ordinance would require wrecker companies to have a storage facility within the City of Denton if they wanted to be on the rotation list. The following ordinance was considered: NO. 91-030 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING CHAPTER 27 ("WRECKERS") OF THE CODE OF ORDINANCES TO REQUIRE VEHICLES TOWED UNDER THE ROTATION LIST BE STORED IN A LICENSED VEHICLE STORAGE FACILITY LOCATED WITHIN THE CITY OF DENTON; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $500.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. Trent 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. G. The Council considered adoption of an ordinance amending Chapter 2 of the Code of Ordinances by adding Article vii; establishing and creating the Beautification Advisory Commission. (The Beautification Commission recommended approval.) 426: City of Denton City Council Minutes February 19, 1991 Page 14 The following ordinance was considered: NO. 91-031 AN ORDINANCE AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON BY ADDING ARTICLE VII; ESTABLISHING AND CREATING THE BEAUTIFICATION ADVISORY COMMISSION; PROVIDING FOR THE ADOPTION OF POWERS AND DUTIES OF THE COMMISSION: PROVIDING FOR A REPEALING CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Boyd 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. 5. Resolutions A. The Council considered approval of a resolution delegating to the Treasurer of the State of Texas the authority to invest City funds and to act as custodian of investments purchased with City funds. Harlan Jefferson, Treasurer, stated that in 1989, the Texas Legislature amended the Interlocal Cooperation Act to facilitate the creation of local government investment pools. The pools were used for short term investments. The benefits of the pools were that they were more flexible than any other investment instrument, they had no minimum balance requirement and no penalties for early withdrawals. This was an improvement over the two short-term investment instruments currently utilized. The pools also tended to lag behind the market place and react slowly to sharp increases or decreases in rates. The following resolution was considered: NO. R91-004 A RESOLUTION DELEGATING TO THE TREASURER OF THE STATE OF TEXAS THE AUTHORITY TO INVES~ CITY PUNDS AND TO ACT AS CUSTODIAN OF INVESTMENTS PURCHASED WITH CITY FUNDS; 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~m and Mayor Castleberry "aye." Motion carried unanimously. City of Denton City Council Minutes February 19, 1991 Page 15 427 B. The Council considered approval of a resolution approving an agreement for participation in the Local Government Investment Fund for Texas; authorizing the Mayor to execute the common investment contract for participation in the fund; approving of the investment objectives and purposes of the fund; and authorizing the transfer for investment of public funds to the fund. Harlan Jefferson, Treasurer, stated the the Texas Local Government Investment Fund for Texas offered the City the same three benefits as Texpool - flexibility, lag in interest rates, and higher interest rates. This Fund was primarily for the north Texas area. The following resolution was considered: NO. R91-005 A RESOLUTION OF THE CITY OF DENTON, TEXAS, APPROVING AN AGREEMENT FOR PARTICIPATION IN THE LOCAL GOVERNMENT INVESTMENT FUND FOR TEXAS; AUTHORIZING THE MAYOR TO EXECUTE THE COMMON INVESTMENT CONTRACT FOR PARTICIPATION IN THE FUND; APPROVING OF THE INVESTMENT OBJECTIVES AND PURPOSES OF THE FUND; AUTHORIZING THE TRANSFER FOR INVESTMENT OF PUBLIC FUNDS TO THE FUND; AND PROVIDING FOR AN EFFECTIVE DATE. Hopkins motioned, Boyd 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. C. The Council considered approval of a resolution approving the placement of a local historic site marker in the Civic Center Park to commemorate the history of Quakertown. (The Historic Landmark Commission recommended approval.) The following resolution was considered: NO. R91-006 A RESOLUTION APPROVING THE PLACEMENT OF A LOCAL HISTORIC SITE MARKER IN THE CIVIC CENTER PARK TO COMMEMORATE THE HISTORY OF QUAKERTOWN. Hopkins motioned, Ayer seconded to approve the resolution with a correction in second "Whereas" indicating the "residents of Quakertown were relocated". On roll vote, Trent "aye," Alexander "ay--~-w, Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. 428 City of Denton City Council Minutes February 19, 1991 Page 16 D. The Council considered approval of a resolution adopting a policy regarding placement of advertising signs at City athletic fields; and designating the Denton Youth Sports Association as an organization permitted to erect said signs. (The Parks and Recreation Board recommended approval.) The following resolution was considered: NO. R91-007 A RESOLUTION ADOPTING A POLICY REGARDING PLACEMENT OF ADVERTISING SIGNS AT CITY ATHLETIC FIELDS; DESIGNATING THE DENTON YOUTH SPORTS ASSOCIATION AS AN ORGANIZATION PERMITTED TO ERECT SUCH SIGNS; AND DECLARING AN EFFECTIVE DATE. Hopkins 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. E. The Council considered approval of a resolution approving the infrastructure financing policy and repealing R89-019. (The Public Utilities Board and the Planning and Zoning Commission recommended approval.) David Ham, Manager-Construction Projects, stated that the Denton Development Plan had recommended an economic growth incentive policy that promoted balanced growth through the City. In response to that recommendation, the Public Utilities Board and the Planning and Zoning Commission approved the guidelines'which would set aside funds for water and sewer line construction to encourage economic growth in selected areas of the City. The Guidelines prescribed rating and ranking criteria by which such lines would be selected for construction. In March, 1989, the Guidelines were approved by the City Council. Following that, the Public Utilities Board expressed concern that several of the Guidelines' top-ranked lines were in the southern part of the City where economic growth was already sufficient. In January, 1990, the Board proposed a r~vi~d poli~y ~ha~ would ~ollow, ra~h~r than lead, economic growth. The new policy would also do away with the rating and ranking of proposed lines and would make funds available only for lines serving industrial prospects. City Council expressed concern regarding the proposed revisions and directed the Board and the Planning and Zoning Commission to further examine the policy change. In addition, the Legal Department requested the policy be revised to incorporate language that would satisfy the requirements of the Texas Local Government Code regarding the granting of public money to a private concern for the purpose of stimulating business and commercial activity. City of Denton City Council Minutes February 19, 1991 Page 17 429 Council Member Ayer expressed concern that the policy was making changes in the recommendations of the Land Use Planning Task Force. That Task Force had suggested the policy of leading rather than following development. Now the policy was proposed to be changed to follow rather than lead development. The following resolution was considered: NO. R91-008 A RESOLUTION APPROVING THE POLICY; REPEALING R89-019; EFFECTIVE DATE. INFRASTRUCTURE FINANCING AND PROVIDING FOR AN Trent motioned, Hopkins 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. F. The Council considered approval of a resolution authorizing the submission of an application to the Texas Criminal Justice Division requesting funding for a special law enforcement unit to investigate child abuse~violations. Rick Svehla, Deputy City Manager, stated that this was a grant program from the Criminal Justice Division for child abuse investigation. The grant was for 60% of the funding and would allow the purchase of a computer which would help categorize pictures and to alter facial features for identification. A decision had not been made yet as to whether to include the computer in the grant request. Council Member Trent asked for the number of cases investigated over the last two years of the program. Svehla replied that he did not have exact figures but that there had been an increase in the number of cases investigated. Council Member Trent asked if there was duplication of efforts among agencies such as Human Services. Svehla replied that there might be some duplication but that the Human Service agencies generally dealt with the child/family members rather than the actual prosecution. The following resolution was considered: 430 City of Denton City Council Minutes February 19, 199.% Page 18 NO. R91-009 A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE TEXAS CRIMINAL JUSTICE DIVISION REQUESTING FUNDING FOR A SPECIAL LAW ENFORCEMENT UNIT TO INVESTIGATE CHILD ABUSE VIOLATIONS; AND PROVIDING FOR 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. Miscellaneous matters from the City Manager. Lloyd Harrell, City Manager, presented the following items: A. January Budget Recap - the recap was presented in the agenda back-up. B. Staff would like to continue with the work session items that were not discussed earlier. 3. Continued a discussion regarding the potential sale of the City's commercial solid waste system, considered possible alternatives, and gave staff direction. Bob Nelson, Executive Director for Utilities, continued with the transfer station/long term disposal contract points: (9) Waste Management would pay Denton $1.5 million with payment terms of $.40 cubic yard surcharge on the first 3,750,000 cubic yards of volume at the transfer station; (10) the transfer station contract would be for 20 years with a five year renewal provision thereafter and an op out clause after 15 years; (12) the City would support Waste Management in getting the transfer station permit; (13) the tipping fee at the D/FW landfill prior to completion of the transfer station would be $2.00 per cubic yard as opposed to $2.55 subject to CPI and Regulatory Escalators; (14) if the transfer station was not built, Waste Management would provide the City 1,272,800 cubic yards of residential solid waste volume at D/FW landfill for 55 cents cubic yard below the gate rate which had an estimated value of $700,000. Lloyd Harrell, City Manager, stated that this was the only place in the proposal where the City had a certain element of risk. The two other paym~nt~ after the $1.9 million which was the $1.7 million and the $1.5 million, was tied to the opening of the transfer station. There should not be a problem with the transfer station but there was a remote possibility that the permit could not be obtained for the transfer station. If that happened, the $700,000 was Waste Management's share for the risk. City of Denton City Council Minutes February 19, 1991 Page 19 431 Nelson continued with the transfer station/long term disposal contract points: (15) Waste Management estimated value of the proposal was $1.9 million for the commercial system, $1.7 million for the transfer station contract, ~1.5 million for assistance of early closure of Denton's landfill, and $1 million savings on tipping fees over the next 10 years - $5.20 as opposed to $6.40 rate on 80,000 cubic yards per year. Council Member Alexander asked about the difference between the $2.55 tipping fee at the landfill and the $5.20 tipping fee at the transfer station. Nelson replied that that included the transportation between Denton and the D/FW landfill. Council Member Gorton asked what a citizen would do to take items to the landfill if it were closed. Nelson replied that it would be taken to the transfer station. Council Member Gorton stated that the rates would be subject to the market. City Manager Harrell stated that if the contract were approved, there might be six to nine months when the landfill would be closed and the transfer station not completed. Citizens would have to go to another landfill during that time. Council Member Gorton expressed concern that if the landfill were closed and the transfer station not complete, that people might dump somewhere there were not suppose to. Council Member Trent stated that of the $6.1 million of the proposed contract, the City would be receiving some money up front to retire a sizeable debt and debt service. This would be a great infusion into the budget. Council Member Trent asked if there were any other possible risks other than not obtaining the transfer station permit. Nelson replied there might be a problem obtaining the property and proper zoning and permitting for the station. The $6.00 per yard charge might be a problem versus the $2.55 per yard at the D/FW landfill. City Manager Harrell replied that the only other risk was that if the proposal were accepted, the City would loose any kind of control over what would be charged for the commercial customers. The Chamber of Commerce and others stated that that could be controlled by competition as Waste Management would not be an exclusive provider. However, the situation might be that Waste Management would be the dominant provider and there might not be adequate competition and rates would go up. 432 City of Denton City Council Minutes February 19, 1991 Page 20 Council Member Trent stated that an individual could go to another commercial waste hauler if Waste Management's rates went up too high. City Manager Harrell replied that if Waste Management kept almost all of the City's customers and their current customers, they could have 95-97% of the business. It could be argued that other waste haulers would be reluctant to move into a market which was so saturated by one company. That would be the only time when the free market competition would not work effectively. Council Member Trent stated that he felt the City was receiving a very good deal with the Waste Management proposal. Council Member Ayer stated that the SWAC Committee had recommended that the City of Denton become the sole provider for commercial waste. That recommendation was reviewed and the major argument for changing that recommendation was the unknown costs involved in Subtitle D. The City needed to get out of the landfill business because of the costs of the Subtitle D. Staff's back-up material now stated that Subtitle D would not have a serious impact on Denton's operational cost. That eliminated a big argument for selling the system. In staff's erformance analysis, the cumulative value to the City would be 543,000 for scenario 1AAA, $2,137,000 for Scenario 2. If Denton were the exclusive provider, the cumulative value would be $3,761,000. Those figures show that if the City accepted the proposal, it would be only for political reasons and in doing so, would cost the citizens, in the long run, a considerable amount of money. Nelson replied that the figures were how the analysis came out. But in order to accomplish that, the City needed to be an exclusive provider. Council Member Ayer replied that all the discussion so far was that this was a great economic deal for the City. He was proposing that for the citizens of Denton, this was not a good economic deal. It was going to cost them money. Council Member Alexander stated that the proposal from Waste Management would eliminate any risk factors relative to the cost of closing the landfill. That was an unknown cost. City Manager Harrell stated that it was important for the Council to pick one way or the other to deal with the situation. If the offer from Waste Management was not accepted, then the Council needed to be prepared to grant the City exclusive franchise. To continue to do what the City was now doing put the City's residential customer in great risk. City of Denton City Council Minutes February~19, 1991 Page 21 433 A lengthy discussion continued with the following points: The $3 million was not up front money - the $1.9 million was up front money. Risks were pointed out regarding the proposal - all the good was not on one side. Residential customers would be protected for the next 10-12 years. If solid waste not handled right, the City would be responsible. In a few years, Waste Management would have a monopoly in the City and there would not be any competition. The transfer station was not ideal in any neighborhood and there might be a problem for a location for it as there there would be for a new landfill. What would happen if the transfer station were built and Waste Management defaulted. If the City had exclusive '~ranchise, what assurances would there be that the new landfill would not have the similar problems as the old landfill. There was a potential for unlimited liability on the City's part. Two citizen groups studied the problem in detail and both recommended that the City go to exclusive service. Before that was dismissed, it was important to look carefully at what they said. Was there a need to revisit with members of the SWAC Committee and the ~Public Utilities Board to discuss their recommendations. Mickey Flood, Waste Management, spoke to Council regarding the history of Waste Management and the history of the Project. Consensus of the Council was to hold a public hearing regarding the issue and discuss with members of the Public Utilities Board their recommendation at the next Council meeting. Staff was to begin preparing the necessary documents for Council consideration of the proposal. 434 City of Denton City Council Minutes February 19, 1991 Page 22 The Council returned to Agenda Item #7. 7. The Council took the following action from Executive Session held during the Work Session: A. Legal Matters Debra Drayovitch, City Attorney, stated that this was reporting out some of the actions the Council considered in Executive Session regarding the lawsuit Count~ vs. City, specifically the motion and i. ntervention filed by Flow Regional Medical Center, Inc. Mayor Pro Tem Boyd stated that Flow Regional Medical Center had filed with District Court, a plea in intervention and a motion requesting that the Center be designated as the recipient organization to continue existence and administer assets in lieu of dissolution of the former Flow Memorial Hospital. The Center further advised the Court that they had assets, that presently consist of cash in excess of $250,000 and a note receivable for $1,900,000 and that the Center was the proper recipient organization to administer these assets and carry out the intention of the H.E. FLow Will and provide insofar as it can for the health care needs of all the people of the City of Denton and Denton County regardless of their ability to pay for that care. The Council had also been advised that the Center intended to request that it be designated as the recipient organization of the assets of the Flow Foundation, which presently consisted of approximately ~1 million. The City received a number of requests every year from worthy organizations in the City for health care related services. The City had had inadequate tax dollars to fulfill those requests. The Council, in Executive Session, wished to commend the Center for taking steps in ensure that the above-mentioned funds would be distributed to nonprofit agencies providing health care services within the City and County and thus, establishing a significant resource for agencies providing those services to the citizens. Boyd motioned, Gorton seconded that the Council expressed that it did not wish to object to the Motion filed by the Center, and indeed, viewed the requested designation as the commencement of a new era in health care funding in Denton by the Center's taking a lead role as the primary funding resource for non-profit health care agencies and by not pursuing an objection to the Center's Motion, the City was relinquishing any right to claim a portion of the assets of the Hospital, and that the City Council believed it appropriate to also relinquish its role as a direct provider of funds for health related services in the future. 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 February 19, 1991 Page 23 435 The intent of the motion was to instruct the City Attorney to prepare a resolution to that effect and to make the Council's intent known to the Judge in Court. The Council returned to the Work Session Items not considered during the Work Session. 4. The Council considered a report and held a discussion regarding the City's Capital Improvement Plan and the budgeting process. Mark McDaniel, Budget Officer, stated that there had been some improvements made to the budgeting process. The new plan would include a capital and operating budget. That budget would include better identification and better tie of operation and maintenance costs related to each capital project - annual inflation rates by expenditure category, a plan scope, items having a useful life of more than 10 years, a budget scope which would include all capital items, and a discontinuation of criteria rating forms. Staff would recommend to Planning and Zoning Commission based on project evaluation and impact on various items. discussion 5. The Council received a report and held a regarding support and funding of the I35E corridor. Rick Svehla, Deputy City Manager, stated that efforts were being made to move additional construction projects on I35E ahead in the Highway Department's funding and letting schedules. Staff was requesting guidance from the Council regarding entering into such an agreement assuming a number of other cities would participate along with Denton and Dallas Counties. The proposal would give all the cities in the counties a proposed plan and strategy for trying to implement more of the projects into the Highway Department's strategy. At the same time, it would take into account each of the individual entities work plans and make sure that this effort did not conflict with those plan. Lewisville and Carrollton were very interested as was Farmers Branch. 8. New Business There were no items of New Business suggested by Council Members for future Council agendas. 9. The Council convened into Executive Session to discuss legal matters (considered action in County vs. City and considered action in Kelsoe vs. City), real e~tate (considered authorization for acquisition of utility easements relating to the transmission line from the Hartley Field Booster Station to the Ray Roberts Water Plant), and personnel/board appointments 4'36 City of Denton City Council Minutes February 19, 1991 Page 24 (considered appointments to the Building Code Board, Community Development Block Grant Committee, the Electrical Code Board, the Historic Landmark Commission, the Human Services Committee, the Animal Shelter Advisory Committee, the Blue Ribbon Committee for Storm Water Utility and the Sign Board of Appeals). No official action was taken. With no further business, the meeting was adjourned. 3353C CITY OF DENTON, 7XAS