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Minutes April 02, 199125 CITY OF DENTON CITY COUNCIL MINUTES APRIL 2, 1991 The Council convened into the Work Session at 5:15 p.m. in the Civil Defense Room. PRESENT: Mayor Castleberry: Council Members Alexander, Ayer, Gortono Hopkins and Trent. ABSENT: Mayor Pro Tem Boyd 1. The Council convened into Executive Session to discuss legal matters, real estate, 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 Blue Ribbon Committee for Storm Water Utility, the Downtown Advisory Board and the Sign Board of Appeals.) 1. The Council received a report and held a discussion regarding a contract for the collection of delinquent taxes. Harlan Jefferson, Treasurer, stated that the City was in its second consecutive contract with Heard, Goggan, Blair & Williams. The contract would expire on June 30, 1991. The City Council had the option to renew and extend the contract for an additional two years under the same terms and conditions. Staff was needing direction from Council on whether to renew the contract or go out for bid on the tax collection service. The Performance Report from Heard, Goggan, Blair & Williams indicated that over the last five years 12,500 demand letters had been sent out and 740 lawsuits had been filed. This had resulted in the collection of delinquent taxes together with penalty and interest in the amount of $3,680,127. The report illustrated that the City received a drastic and prolonged increase in the quantity and quality of service since contracting with the firm. The firm also assisted with mowing/paving liens and bankruptcy claims for property tax and for hotel/motel occupancy tax. A new tax system had been installed in August which was a major increase in the level of service to the citizens and provided more notice in a number of areas. Council Member Trent indicated that he was in favor of the philosophy, no matter which firm was used, that a lawsuit was the last resort. He asked what was the amount of cost to the City for these collections. Jefferson replied that there was a 15% delinquency penalty added to the amount due with no cost of the City. Council discussed with representatives from the firm the factors involved in the decline of amount of money received due to the longer period of working the rolls and to what extend other entities joined in on lawsuits the firm had filed. City of Denton City Council Minutes Page 2 Council Member Hopkins stated that she did not see any reason not to extend the contract. Consensus of the Council was to direct staff to return with the legal documents to renew the contract. 2. The Council received a report and held a discussion regarding the Employee Health Insurance Program and considered future strategies. Tom Klinck, Director of Personnel, provided a report which included a performance update on the former health insurance plan, claims "run-off" that terminated on November 30, 1990, an overview of the status of the current plan with Sanus/New York Life and suggestions for future strategies for improving employees and dependents health insurance. He stated that the former employee health insurance plan terminated on November 30, 1989. Staff was recommending a contract with Coopers and Lybrand to conduct a comprehensive evaluation of the current program with Sanus, and assist in identifying other viable options. The contract would authorize Coopers and Lybrand to meet with local medical providers to negotiate arrangements for direct contracting with the City at favorable rates, negotiate with appropriate medical facilities within the metroplex for tertiary services and other specialized medical services not available within the local provider market, develop and analyze three plan alternatives and conduct actuarial projections and ratings of the three plans based upon negotiated arrangements with providers, develop final draft contracts with the appropriate hospital, physicians and/or physician groups and tertiary care facilities and submit to the City for approval and undertake negotiations with Sanus, if indicated, for December 1, 1991 plan year renewal. Council Member Gorton asked what had changed during the year to indicate a change in the attitude of the local providers. Dave Palatiere, Coopers & Lybrand, stated that there seemed to be a change in the attitude on the part of the local providers. Other considerations included the lack of providers on the Sanus system and the re-rate for next year. If the loss ratio remained the same, there could be perhaps a 30% rate increase in next year's rates. Lloyd Harrell, City Manager, stated that the City might not have any better opportunity to join with TWU and UNT but the local providers seemed more receptive than two years ago. City of Denton City Council Minutes April 2, 1991 Page 3 27 Council Member Trent asked if the City was providing health care services for people who worked for the City that the City really did not need to. For example, part-time people, seasonal people. Klinck replied that seasonal people were not provided benefits and the part-time people paid a proportionate share of the cost. Council Member Trent asked if that caused the rates to go up. Klinck replied no. City Manager Harrell stated that the Employee Committee was very active in this area. The satisfaction in this area was less than satisfactory. Insurance employees Consensus of the Council was to proceed with a formal contract with Coopers & Lybrand. 3. The Council received results and held a discussion regarding the 1991-92 Budget Priorities Questionnaire. Lloyd Harrell, City Manager, stated that the budget process always started with the priorities of the City Council. Council had received the survey results ranked in order. Everyone had returned a questionnaire but not everyone answered all of the questions. Council Member Ayer indicated a problem with this type of questionnaire in that some judgments were done on what aught to be done and then some decisions were done on what the City could do. It tended to be confusing. City Manager Harrell stated that in spite of its imperfections, the survey gave the staff a general feel for where the Council had its priorities. Harrell saw another tight budget year and a difficulty in raising the tax rate due to the economy and taxpayer resistance to an increase. The Freeport Amendment would be activated this year which was a decrease of $360,000 in the budget. Street programs had a high ranking which needed to be explored as a budget issue. There was a possibility of a street only bond issue. 1991 would be the end of the CIP pro)ect except for the four building projects. Municipal Court and the Municipal Court of Records was listed at the top of the list. Funding for human service agencies was ranked 3.86 which was just under current level funding. Harrell expected staff to report to the Human Services Committee that they should expect the same level of funding with no ma3or increases in funding. Major issues for the budget would include a review of take-home police vehicle policy and an reexamination of the whole athletic program funding with general budget funds. An area which went down in the ranking was economic development incentives. 28 City of Denton City Council Minutes April 2, 1991 Page 4 Council Member Ayer felt that the ranking might have gone down as everything the Council could do had been done. Harrell concluded that the ranking for the City's pay plan adjustment was high on the list and would be looked at in the upcoming budget. The Council convened into the Regular Session at 7:00 pm. in the Council Chambers. PRESENT: Mayor Castleberry; Council Members Alexander, Ayer, Gorton, and Trent. ABSENT: Mayor Pro Tem Boyd; Council Member Hopkins Pledge of Allegiance The City Council and members of the audience recited the Pledge of Allegiance. Council Member Hopkins joined the meeting. Mayor Castleberry presented the following proclamations: Fair Housing Month Week of the Young Child Just for Kids Day National Community Development Week Child Abuse Prevention Month Keep American Beautiful Month National Volunteer Week National RSVP Day 2. The Council considered approval of the minutes of the regular meeting of March 5, 1991. Council Member Hopkins noted a typographical error in the minutes and asked for a correction. Trent motioned, Gorton seconded to approve the minutes as corrected. Motion carried unanimously. 3 o Citizen Reports A. The Council received a citizen report from Mike Cochran concerning Texas Waste Management. Mr. Cochran stated that consider contract one understood that that was informal approach might discuss the matter. he was going to ask Council not to without having contract two and a possibility. He felt that a more be helpful in which all sides could City of Denton City Council Minutes April 2, 1991 Page 5 29 B. The Council received a citizen report from Joyce Poole regarding the sale of the City's commercial solid waste system. Ms. Poole stated that she was representing the concerns of citizens about the contracts to sell the City's commercial solid waste system to Texas Waste Management. She stated that the agreements changed daily. She felt that the landfill and the waste system was a community asset and wanted to deal with it as such. She had currently collected 1200 signatures of people against the sale of the system. She strongly recommended that the Council reject the contracts. C. The Council received a citizen report from Barbara Russell regarding the commercial solid waste issue. Ms. Russell stated that she was speaking for the Denton Chamber of Commerce. She stated that there had been several bits of misinformation about the Chamber's stance over the last few weeks. She read a statement regarding the Chamber's position on the issue. (Exhibit A) D. The Council received a citizen report from Art Anderson of Sentry Environmental regarding the Waste Management solid waste contract. Mr. Anderson provided the Council with a description of the site proposal for Sentry Environmental's landfill. He stated that they anticipated filing the final application by the end of the week and receiving a determination by the Texas Department of Health on May 1 that their application was complete. This meant that they would have addressed all of the technical and engineering concerns of the Texas Department of Health. They were confident that they would receive eventual approval. He stated that Sentry's tipping fees would be equal to or better than the fees proposed by Waste Management. Currently they were estimating a tipping fee of $3.00 per cubic yard. He understood that the flow control provisions had been removed from the contracts and felt that it was a good provision not to connect the two contracts. E. The Council received a citizen report from Slick Smith regarding the sign ordinance. Mr. Smith stated that the current ordinance did not allow a sign owner to remove a sign from a site to clean or repair the sign. The sign had to be repaired or cleaned on site. He recommended an amendment to the ordinance to be able to repair signs in the shop and to return the sign to the same location. He was requesting help for the small business owner who wanted to put a portable sign out to advertise his business. He suggested an amendment to allow a business owner to use a portable sign to advertise a grand opening which could be permitted for a certain number of days and then would have to be removed. He felt that the City was trying to put him out of business. 30¸ City of Denton City Council Minutes April 2, 1991 Page 6 Public Hearings A. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, amending Article 17 of Appendix B-Zoning of the Code of Ordinances relating to signs; amending the height and setback regulations for ground signs on primary arterial streets: amending the licensing requirements: amending the provisions relating to wind device signs; providing for multiple occupancy signs, regulating wall signs over fifteen feet in height: providing for the removal of abandoned signs and structures; amending the regulations for stake signs. (The Planning and Zoning Commission recommended approval.) Frank Robbins, Executive Director for Planning, stated that in the process of reviewing the sign ordinance, an attempt was made to address all of the issues that any individual or group had concerning the ordinance. The unanimous recommendation by the Planning and Zoning Commission reflected the wants and needs of the community. The Mayor opened the public hearing. C. E. Hill stated that he owned several properties in the City of Denton. He felt that businesses had the right to use a short-time sign to advertise specials. The sign regulations of Denton were the greatest reason the City was wasting the taxpayer's money on City beautification. The sign ordinance and dictatorial Beautification Commission prevented businesses from removing older ugly signs and replacing them with attractive and appealing signs. The sign ordinance was used by a Commission created as an advisory committee to deter new business or expansion and tax income for the City. His family business recently expanded his local business venture by taking over an established location. The location was in a valley and fronted by an elevated roadway and overpass. They were spending much time and money to clean and modernize the property and business. The sign ordinance prevented them from replacing the old sign. The present regulation allowed only a small 40' high sign which was measured from the property elevation and not the highway elevation above. That height was not high enough or large enough to be effective. Prospective customers would have already passed before realizing the business was there. The older signs must kept even though they did not project the image the company wanted to project. City of Denton City Council Minutes April 2, 1991 Page 7 31 Bob Powell stated that the amendments did not go far enough but that they were a start. There was a perception that the City of Denton was anti-business. Two other portable sign companies had gone out of business. The attitude of the City stopped lobs and stopped growth. He felt that the few amendments made a difference and would make a large difference to the City. He urged the Council to make more amendments as soon as possible. Jerry Cott, Government Relations Committee-Chamber of Commerce, stated that this ordinance was the kind of ordinance which had to have compromise between the citizens who hated signs and business people who needed the signs. City staff had made the original recommendations to change the ordinance. The proposals would allow for flexibility in the ordinance. The Sign Review Board would allow for appeals to be made regarding the ordinance. The sign district concept was a progressive concept which would add perspective to the ordinance. Mike Cochran, Beautification Commission, felt that some of the problems with the original ordinance would be corrected with the proposed changes. He did not agree with the provision of increasing the maximum effective area and the maximum height of signs on primary arterial streets in non-residential districts. He felt there were some special primary arterials which needed special attention such as Locust and Elm Streets. Jeane Morrisono Chair-Beautification Commission, stated that it had been a difficult task to work on the sign ordinance. The proposed changes would fine tune the ordinance and there would possibly be more changes in the future. She did not feel that the Commission was anti-business as they had worked too hard for businesses. Joe Dodd felt that the ordinance was very poor. The present ordinance did not allow balloons outside a business. He did not understand the problem as the balloons did not cause traffic problems. He felt the core of the ordinance was to make businesses as invisible as possible. He felt the ordinance lacked reason. Slick Smith stated that weather balloons were also a part of his business. Some balloons could not be used as they could not be seen with the restrictions of the current ordinance. The Mayor closed the public hearing. City of Denton City Council Minutes April 2, 1991 Page 8 The following ordinance was considered: NO. 91-048 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ARTICLE 17 OF APPENDIX B-ZONING OF THE CODE OF ORDINANCES RELATING TO SIGNS; AMENDING THE HEIGHT AND SETBACK REGULATIONS FOR GROUND SIGNS ON PRIMARY ARTERIAL STREETS; AMENDING THE LICENSING REQUIREMENTS: AMENDING THE PROVISIONS RELATING TO WIND DEVICE SIGNS; PROVIDING FOR MULTIPLE OCCUPANCY SIGNS; REGULATING WALL SIGNS OVER FIFTEEN FEET IN HEIGHT; PROVIDING FOR THE REMOVAL OF ABANDONED SIGNS AND STRUCTURES; AMENDING THE REGULATIONS FOR STAKE SIGNS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Hopkins motioned, Alexander seconded to adopt the ordinance. Council Member Trent stated that some of the speakers had made a comment that Denton was anti-business. He felt that the City needed to change that perception. The proposed amendments were not a perfect replacement to the sign ordinance and that the ordinance would continue to be fine tuned. He had heard that it was impossible to get a sign replaced, improved, changed, modified since the sign ordinance came into existence. He hoped that these amendments would change that atmosphere. On roll vote, Trent "aye,', Alexander "aye," Hopkins "aye,,, Gorton "nay," Ayer "aye," and Mayor Castleberry "aye." Motion carried with a 5-1 vote. Mayor Castleberry expressed his appreciation for the work done by the Chamber and City staff on the sign ordinance. Council Member Ayer stated that he had voted for the ordinance as it was a good compromise. Two groups had been mentioned as having spent a great deal of time and effort on the ordinance. The Beautification Commission was created by the City Council by ordinance. The members were carefully selected to represent a broad cross section of the community. The Governmental Relations Committee was not created by the Chamber of Commerce Board of Directors. It was a group of individuals who had a particular interest in a particular issue. They had spent a lot of time and had made some good contributions to the City's work but it needed to be understood that they were not a committee created by the Chamber of Commerce with designated members designed to represent a cross section of the Chamber of Commerce. City of Denton City Council Minutes April 2, 1991 Page 9 33 B. The Council held a public hearing to consider the preliminary and final replats of the T.N.B.C. Addition: Lot 1 and additional unplatted land into Lot 1R, Block 1. The site was located at Hercules Dr., east of Stuart Road. (The Planning and Zoning Commission recommended approval.) Owen Yost, Urban Planner, stated that the original plat was less than two acres. The replat would have 6.4 acres. It was a residential replat on land zoned SF-7. The applicant proposed to add a 24' fire lane around the perimeter of the building, a sidewalk on Hercules and a new curb on Hercules. The Mayor opened the public hearing. No one spoke in favor. No one spoke in opposition. The Mayor closed the public hearing. Trent motioned, Ayer seconded to approve the preliminary and final replat. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. Consent Agenda Council Member Trent asked that Item 5.A.4. be pulled for separate consideration. Hopkins motioned, Alexander seconded to approve the Consent Agenda with the exception of Item 5.A.4. Motion carried unanimously. A. Bids and Purchase Orders: 1. Bid ~1228 - Contract Concrete Work 2. Bid ~1236 - Highway 380 Project Irrigation 3. Bid ~1235 - Fiber Optic Cable 5. P.O. #12454 - Hersey Total Service 6. P.O. ~12766 - Union Metal Corporation Council considered Item 5.A.4. Council Member Trent asked for a justification of the expense - how much was the machine used, did other governments have the same need and perhaps a joint purchase could be done and why was there an offer to rent the machine to others. City of Denton City Council Minutes April 2, 1991 Page 10 Council Member Gorton left the meeting. Bob Nelson, Executive Director for Utilities, stated that the City was offering to rent the machine to the telephone company and the cable television company in order to avoid tearing up so many city streets and individual,s driveways. The machine allowed crews to bore a trench under a driveway, under a flower bed and around an obstacle rather than having to do such a trench above ground. City Manager Harrell stated that the actual cost savings to the City would be approximately $12,000 per year. As the Council had indicated that street maintenance was a high priority, this machine would reduce the amount of street cuts needed. Council Member Trent asked if staff was investigating renting the equipment or sharing the purchase with another governmental entity. Nelson replied that rental was a first choice but that the cost was substantial. He was not sure who the City could enter into a cooperative venture with the machine. Some entities did not join into such agreements. Trent motioned, Hopkins seconded to approve Consent Agenda Item 5.A.4. Motion passed unanimously. A. Bids and Purchase Orders: 4. Bid ~1230 - Boring 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. (5.A.3. - Bid ~1235, 5.A.4. - Bid ~1230) The following ordinance was considered: NO. 91-049 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. Alexander motioned, Ayer seconded roll vote, Trent "aye," Alexander "aye," and Mayor Castleberry "aye." to adopt the ordinance. On "aye," Hopkins "aye," Ayer Motion carried unanimously. City of Denton City Council Minutes April 2, 1991 Page 11 B. The Council considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for public works or improvements. (5.A.1. - Bid ~1228, 5.A.2. - Bid ~1236) The following ordinance was considered: NO. 91-050 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. Ayer motioned, Trent seconded to adopted the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. C. The Council considered adoption of an ordinance providing for the expenditure of funds for purchases of materials or equipment which are available from one source in accordance with the provisions of state law exempting such purchases from requirements of competitive bids. (5.A.5. - P.O. ~12454o 5.A.6. - P.O. ~12766) The following ordinance was considered: NO. 91-051 AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR PURCHASES OF MATERIALS OR EQUIPMENT WHICH ARE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE. Ayer motioned, Alexander seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. Mayor Castleberry stated that the contracts for Items 6.D., consideration of adoption of an ordinance authorizing the Mayor to execute documents necessary to close an asset purchase agreement between the City of Denton and Waste Management of Texas, Inc., for the sale, transfer and assignment of the City's commercial solid waste operations, subject to applicable provisions of Article IV of the Charter of the City of Denton, Texas and 6.E., adoption of an ordinance authorizing the Mayor, subject to applicable provisions of Article IV of the Charter of the City of Denton, Texas, to execute a transfer station agreement between the City of Denton and Waste Management of Texas, Inc. requiring Waste Management of Texas to acquire, 35 City of Denton City Council Minutes April 2, 1991 Page 12 construct and operate a transfer station for handling solid waste, said agreement being a condition of closing of the purchase agreement for the sale, transfer and assignment of the City's commercial solid waste operations, were not completed and would not be considered. Staff would make a presentation regarding the items. Council Member Gorton returned to the meeting. Lloyd Harrell, City Manager, stated that staff had been working hard to finalize the contracts for Council. The transfer station contract had not been finalized by the meeting time. Staff recommended not taking action on the sale of the system until all of the Council was present for the consideration. Harrell stated that the Council had four alternatives in disposing of the issue. OPTION I Advantaqes: REJECT BOTH CONTRACTS AND CONTINUE THE STATUS QUO -- CITY AND PRIVATE COLLECTION; DISPOSAL ao This alternative continued the current system and did not require the city and/or any customers to make any changes in their operations. Free competition for commercial service continue within the community. Disadvantages: ao Bo would The two citizen committees which had studied this issue and the staff had concluded that this strategy would subject residential and commercial customers to long range detrimental risks in the form of prices and service. Following Council,s announcement of it's intent to sell the system, several private solid waste firms launched ma]or marketing efforts within the community for commercial customers. Several of the city,s commercial customers had terminated city service as a result of Council action and these marketing efforts. The departure of these customers, and others who may leave because of the related publicity, would have a further negative effect on the financial performance of the solid waste fund. City of Denton City Council Minutes April 2, 1991 Page 13 OPTION II This alternative required the city to begin immediate action which would ultimately lead to the expansion of the city's landfill. At the same time, the city would be forced to deal with increasingly stringent state and federal regulations governing the disposal of solid waste. The selection of this alternative would eliminate the profits in the amount of $4,116,000 or $13,059,000 by the year 2005 associated with the other alternatives available to the city at this time. As Council was aware, these profits were earmarked to retire landfill debts and moderate future solid waste increases. Should this revenue source not be available, these objectives would not be realized. REJECT BOTH CONTRACTS AND HAVE THE CITY ASSUME THE EXCLUSIVE COLLECTION OF COMMERCIAL SOLID WASTE Advantages: This alternative was consistent with recommendations forwarded to Council by the Public Utilities Board and the Solid Waste Alternatives Committee. Bo This alternative would result in the most desirable financial return to the City by the year 2005 - $13.1 million. Council would retain complete control over solid waste fees for both the collection and disposal of commercial and residential solid waste. Disadvantages: The financial return to the city during the next few years would be minimal and the cumulative net gain to the city would not exceed the "sell" option until 1997. The financial gains projected were based on many cost assumptions which could fluctuate substantially at the time of implementation. It was for this reason that the staff had cautioned that this financial scenario, more than the others analyzed, contained substantial uncertainties and the projection needed to be considered as "soft." 37 38 City of Denton City Council Minutes April 2, 1991 Page 14 This alternative would require the City to begin immediately to deal with disposal alternatives and commit to be involved on a long range basis. The selection of this alternative would generate substantial community opposition from those who argue for free competition in the area of collecting commercial solid waste. OPTION III ACCEPT THE CONTRACT WITH WASTE MANAGEMENT FOR SALE OF OUR EQUIPMENT AND CUSTOMER LIST FOR $1.9 MILLION AND REJECT THE TRANSFER STATION CONTRACT (This assumed the city would direct commercial waste to the Denton Landfill at the same rate as currently was the case -- $3.00 per cubic yard and $3.45 effective 10-1-91.) Advantages: This alternative would provide the city with $9.7 million by the year 2005 (Scenario ~3) to be used to retire debt and moderate residential rates. Co This option would provide free competition for commercial solid waste within the community, thus satisfying those who argue for a free enterprise system. This portion of the sale proposal may be acceptable to most of the outside parties who had expressed an interest in this subject - Chamber of Commerce and the ad hoc citizen group. Disadvantages: ao Texas Waste Management had indicated that their $1.9 million bid contemplated their ability to use their landfill in Lewisville for disposal. Therefore, Waste Management may refuse to accept this contract if the city directed a portion of the waste stream to its landfill. Such a rejection would jeopardize their bid bond ($95,000) but would place the city back at square one in dealing with its solid waste problem. City of Denton City Council Minutes April 2, 1991 Page 15 Bo Waste Management had indicated that if they did accept this alternative, they would be required to increase commercial rates immediately although competition within the community may temper such an increase. The selection of this alternative would still leave the City with future solid waste disposal problems and delays dealing with such. OPTION IV ACCEPT BOTH CONTRACTS Advantages: This alternative generated net income for the City of $4.1 million by the year 2005 which would allow the City to retire all landfill debt and moderate residential solid waste rates. Although the revenue generated from this alternative was substantially less than that generated from the exclusive city service alternative, the funds were received by the city earlier and tend to be firmer because of contractual commitments. This alternative would solve the city solid waste disposal needs for at least the next fifteen years and avoid future cost and liabilities associated with running a solid waste disposal site. The implementation of this alternative would generate approximately $70,000 annually in city, county and school district taxes because of the establishment of the transfer station within the city boundaries. Disadvantages: Of the $5.1 million due the city, approximately $2.5 million was tied to Waste Management's ability to permit the transfer station. Although this permitting was not thought to be a problem and contract provisions had been included which will help guarantee its establishment, there was still a risk that for some reason such a transfer station would not happen and the city would not receive all of the funds due under this contract. ¸4 0 City of Denton City Council Minutes April 2, 1991 Page 16 Bo This alternative provided a transfer station that must be used by companies collecting solid waste within the community. Such a monopoly disposal situation could weaken the ability of other solid waste firms to effectively compete and could leave Waste Management with exclusive control of the business. This "flow control" provision had been eliminated for other commercial carriers. The City would still have to take residential waste to the transfer station but other haulers would not be required. The selection of this alternative did commit the City to utilizing a transfer station for future disposal needs over the next fifteen years. Thus, the city would be prohibited from taking advantage of favorable alternative disposal arrangements which may develop such as other area landfills and technological improvements which could enhance the possibility for waste-to-energy plants and other alternative disposal methods. The Council took a short break. Bob Nelson, Executive Director for Utilities, reviewed the provisions of the contracts. The solid waste management service contract provided (1) Denton would sell trucks, dumpsters, roll-offs, packers and commercial customer list, (2) Waste Management would pay Denton $1.9 million, (3) Denton agreed not to complete for five years, (4) Waste Management would hire Denton employees, (5) Denton would continue to operate in a normal manner until closing date, (6) the closing date would be 4/30/91, (7) Waste Management would provide commercial service to all who request service, (8) Waste Management would not raise commercial rates for 90 days provided Denton did not require Waste Management to haul solid waste to Denton's landfill. Council Member Ayer stated that he thought one of the key points was that Waste Management would be required to haul solid waste to Denton's landfill in order to fill it quickly in 18 months. Nelson replied that on this contract, as a stand alone contract, it would be at a $3.25 rate not the $1.25 rate. The $1.25 rate dealt with the transfer station contract. Council Member Ayer replied that that was one of the reasons he could not see considering one contract without the other. City of Denton City Council Minutes April 2, 1991 Page 17 4¸1 City Manager Harrell replied that the sale contract could stand alone and had no bearing on the transfer station contract. The sale contract was what was bid. Council Member Alexander stated that the second contract would modify some of the provisions of the first contract. City Manager Harrell replied that the only thing it would modify would be the direction, as a city, for Waste Management to haul to the City's landfill at the same rate they were now hauling. Council Member Ayer asked if the contract was a substantial difference from the original bid. It was his understanding that the waste would be directed to the City's landfill at the City's established price. Nelson replied that City felt, through the license arrangement, that it had the option to go either way. Council Member Ayer stated that Waste Management offered to buy the system for $1.9 million and did not say anything about $1.25 tipping fee. The license agreement authorized the City to have Waste Management put the waste in the City landfill at the City's established price. City Manager Harrell replied that the contract proposed to the Council was a stand alone contract was the specifications that were bid and that Waste Management bid $1.9 million. Council Member Ayer asked if the original would not direct the flow to the City's City lowered the price. bid was landfill that they unless the City Manager Harrell replied no. The acceptance of the contract did not bind the City to the $1.25 rate. The acceptance of the contract still gave the City the right to direct the waste stream as the City so desired. That would be modified only if the Council accepted the transfer station agreement. Nelson continued with the provisions of the transfer station agreement: (1) Waste Management would construct and operate a transfer station in/near Denton, (2) the term of the agreement would be 20 years with the City being able to cancel the last five years of the agreement, (3) location of the station to be in Denton or it its ETJ, (4) Denton would assist Waste Management in locating a site by making information available, (5) Waste Management would pay all permitting, site development, construction and operating costs, (6) if Waste Management could not locate, buy or permit a site, Denton would offer to sell 10 acres east of its landfill for a transfer station, (7) the price of the City property would be determined by the appraisal process. 4¸2 City of Denton City Council Minutes April 2, 1991 Page 18 Council Member Gorton asked if the City could sell the site of the old landfill for the transfer station site. Nelson relied that that could be a possibility. He continued with the provisions (8) Denton would have the right of first refusal t° buy the City site back if Waste Management decided to sell, (9) Denton had the option to buy the City site back if Waste Management was unable to get a permit, (10) if Waste Management did not build the transfer station, Waste Management would make available to Denton, 1,ZTZ,800 cubic yards of solid waste disposal at their DFW landfill at 55~ per cubic yard less than gate rate or at $2.00 per cubic yard plus CPI (1991), (11) the City would close its landfill upon initial operation of the transfer station, (lZ) the city would haul or direct all residential solid waste into the transfer station, (13) the rate for residential ~olid waste would be $5.20 plus cPI (1991) plus regulatory increases, (14) the rate for commercial solid waste would be $6.00 plus CPI (1991) plus regulatory increases, (15) regulatory increases would be subject to Council approval, (16) Waste Management would pay the City $1 million upon initial operation of the transfer station and $175,999 each year for four years, (17) Waste Management would levy 25~ per cubic yard surcharge on all solid waste delivered to the transfer station and pay this amount to Denton until $1,500,000 had been paid then the 25~ surcharge would be discontinued (18) Waste Management would deliver up the 650,000 cubic yards of solid waste to Denton's landfill at the rate of $1.25 per yard, (19) if Denton's landfill was filled prior to completion of the transfer station, the rate to Denton at the DFW landfill would be S2.00 per cubic yard plus regulatory ihcreases, and (20) Waste Management would employ 4 of the City's existing landfill employees. Council Member Ayer asked if the CPI factor was in effect immediately even before the landfill was closed. Nelson replied yes. The regulatory increases were subject to Council approval. Council Member Ayer asked if the Council would have the authority to reject a regulatory increase. Nelson replied that the Council would have the authority to reject a regulatory increase. It probably would not do so as long as it could be proven that the increase was a direct pass through. City of Denton City Council Minutes April Z, 1991 Page 19 43 City Manager Harrell stated that the basic option three stand alone contract for $1.9 million was ready for formal Council consideration. As Mayor Pro Tem Boyd was not present for the meeting, staff asked that the item be held for consideration. A special meeting of the Council had been scheduled for 5:30 p.m, on Friday at which time the only item of business would be the consideration of this contract. If that item were approved, it would be approved within the time constraints of the bid bond which would expire on Monday. Formal consideration of the transfer station contract would be on the April 16, 1991 agenda. Council Member Ayer stated that he was reluctant to consider one contract without the other before him. He was also concerned about acting on a matter of this significance at an irregular time. If it were going to be done in this manner, he would like to have a number of exhibits mentioned which he had yet to see. City Attorney Drayovitch stated that several of the exhibits needed to be prepared as of the time of closing. There was no guarantee that they would not change before the time of closing. Council Member Hopkins stated that she did not want to vote on one contract without the other. She felt that the Council needed to have both legal contracts together. She also did not like to do such on a Friday afternoon. F. The Council considered adoption of an ordinance prohibiting the parking of vehicles on the north side of Shady Oaks Drive, from its intersection with Woodrow Lane to a point 100 feet west of the west right-of-way line of Woodrow Lane, for a distance of 100 feet. (The Citizens Traffic Safety Support Commission recommended approval.) Rick Svehla, Deputy City Manager, stated that this would remove parking on the north side of Shady Oaks at the request of Turbo. This would help facilitate the movement of trucks in the area. The following ordinance was considered: NO. 91-052 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROHIBITING THE PARKING OF VEHICLES ON THE NORTH SIDE OF SHADY OAKS DRIVE, FROM ITS INTERSECTION WITH WOODROW LANE TO A POINT 100 FEET WEST OF THE WEST RIGHT-OF-WAY LINE OF WOODKOW LANE, FOR A DISTANCE OF 100 FEET; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED TWO HUNDRED DOLLARS; AND DECLARING AN EFFECTIVE DATE. City of Denton City Council Minutes April 2, 1991 Page 20 Hopkins motioned, Trent seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. G. The Council considered adoption of an ordinance approving a compromise settlement agreement between the County of Denton and City of Denton. The following ordinance was considered: NO. 91-053 AN ORDINANCE OF THE CITY OF DENTON, TEXAS. APPROVING A COMPROMISE SETTLEMENT AGREEMENT BETWEEN THE COUNTY OF DENTON AND CITY OF DENTON; AND DECLARING AN EFFECTIVE DATE. On roll vote, Trent "aye," Alexander "aye," Hopkins Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." carried unanimously. "aye," Motion H. The Council considered adoption of an ordinance retaining the law firm of Bickerstaff, Heath & Smiley to represent the City of Denton in connection with the proposed sale of the City's commercial solid waste operations to Texas Waste Management. Debra Drayovitch, City Attorney, stated that at the beginning of negotiations, her staff had recommended to the City Manager and Executive Director for Utilities that outside counsel be retained to represent the City. Reasons for the outside counsel were the quick time frame in which the agreements were desired and the desire to retain someone who had an expertise in environmental issues. Originally it was contemplated that the expenditure would only be several thousand dollars. However, it was possible that the expenditure would exceed the $10,000 limit. The following ordinance was considered: NO. 91-054 AN ORDINANCE OF THE CITY OF DENTON RETAINING THE LAW FIRM OF BICKERSTAFF, HEATH & SMILEY TO REPRESENT THE CITY OF DENTON IN CONNECTION WITH THE PROPOSED SALE OF THE CITY'S COMMERCIAL SOLID WASTE OPERATIONS TO TEXAS WASTE MANAGEMENT: AND PROVIDING AN EFFECTIVE DATE. City of Denton City Council Minutes April 2, 1991 Page 21 Hopkins motioned, Gorton seconded to adopt the ordinance. Council Member Trent asked who was paying the $10,000. City Manger Harrell replied the money would come out of solid waste fund. the Council Member Trent asked what the City was receiving for the money spent as it seemed that the City Attorney and Executive Director for Utilities was doing all of the work. City Manager Harrell stated with the very complex issues involved in the process, outside expert counsel was needed and they had been very helpful in the negotiations. On roll vote, Trent "aye," Alexander "aye," Hopkins Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." carried unanimously. "aye," Motion I. The Council considered adoption of an ordinance amending Section 15-3.1 of Chapter 15 of the Code of Ordinances relating to facility and program fees of the Department of Parks and Recreation; and establishing user fees for certain park and recreation facilities. (The Park and Recreation Board recommended approval.) City Manager Harrell stated that additional developments had occurred dealing with non-profit status and staff was recommending that the ordinance be approved but all sections dealing with non-profit be deleted. Sections A3, C and D would be pulled from the ordinance and current rates would continue until the ordinance was amended. The following ordinance was considered: NO. 91-055 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SECTION 15-3.1 OF CHAPTER 15 OF THE CODE OF ORDINANCES RELATING TO FACILITY AND PROGRAM FEES OF THE DEPARTMENT OF PARKS AND RECREATION: ESTABLISHING USER FEES FOR CERTAIN PARK AND RECREATION FACILITIES; AND PROVIDING FOR AN EFFECTIVE DATE. Ayer motioned, Alexander seconded to adopt the ordinance with the mentioned changes. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. City of Denton City Council Minutes April 2, 1991 Page 22 J. The Council considered adoption of an ordinance authorizing the City Manager to execute an agreement between the City of Denton, the City of Dallas and the Texas Parks and Wildlife Department relating to maintenance and supervision of recreational facilities at Lake Ray Roberts. Bob Nelson, Executive Director of Utilities, stated that this was an operations agreement between the Texas Parks and Wildlife Department for all recreational facilities on Ray Roberts Reservoir and turned the operation of those parks over the the Texas Parks and Wildlife Department. The City would build the parks to the Department's standards and they would collect all of the fees. The following ordinance was considered: NO. 91-056 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON, THE CITY OF DALLAS AND THE TEXAS PARKS AND WILDLIFE DEPARTMENT RELATING TO MAINTENANCE AND SUPERVISION OF RECREATIONAL FACILITIES AT LAKE RAY ROBERTS; AND PROVIDING AN EFFECTIVE DATE. Ayer motioned, Trent seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. Mayor Castleberry noted that Item 7.E. typographical effort and should have been ordinance and not a resolution. contained a listed as an E. The Council considered adoption of an ordinance approving a revised tariff and rate schedules for electrical services provided by Denton County Electric Cooperative, Inc. to its customers in the City of Denton, Texas. Bob Nelson, Executive Director of Utilities. stated that the Denton County Electric Cooperative, Inc. which served a few Denton customers had filed for a rate increase with the Public Utilities Commission. City of Denton City Council Minutes April 2, 1991 Page 23 47 The following ordinance was considered: NO. 91-057 AN ORDINANCE APPROVING A REVISED TARIFF AND RATE SCHEDULES FOR ELECTRICAL SERVICES PROVIDED BY DENTON COUNTY ELECTRIC COOPERATIVE, INC. TO ITS CUSTOMERS IN THE CITY OF DENTON, TEXAS; AND PROVIDING FOR AN EFFECTIVE DATE. Gorton motioned, Ayer seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. 7. Resolutions A. The Council considered approval of a resolution relating to the issuance of obligations by the North Texas Higher Education Authority, Inc.; approving the issuance of such obligations and the use of the proceeds of such obligations: and making certain findings in connection therewith. John McGrane, Executive Director for Finance, stated that this was a request from the North Texas Higher Education Authority, Inc. for approval of tax exempt student loan revenue bonds. Kathryn Bryan, North Texas Higher Education Authority, stated that the Authority had recently received funds from the West Texas Higher Education Authority. This money would facilitate providing students with loan money. Council Member Trent asked what this would do for Denton. Bryan replied that it would help the City's students and universities to be able to provide loans for its students. Without it, students would have a difficult time obtaining loans. Council Member Trent asked what would happen if the City would not approve the sale of the bonds. Bryan replied that the Authority would not be able to do the bonds as approval was necessary from both cities. Council Member Hopkins asked looked at this to be sure responsibility. if the City's bond counsel had that the City was clear of any 48 City of Denton City Council Minutes April 2, 1991 Page 24 McGrane stated that the Authority did have bond counsel which rendered opinions on the sale of the bonds. There was a clause in the resolution which did not hold Denton liable for a default. The last time the Authority came for approval to sell bonds, the question had been asked. He had asked the City's bond attorneys and they had stated verbally that there would be no liability on the part of the City. The following resolution was considered: NO. R91-021 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, RELATING TO THE ISSUANCE OF OBLIGATIONS BY THE NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH OBLIGATIONS AND THE USE OF THE PROCEEDS OF SUCH OBLIGATIONS: AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH. Alexander motioned, Gorton seconded to approve the resolution. On roll vote, Trent "nay," Alexander "aye," Hopkins "aye,,' Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried with a 5-1 vote. B. The Council considered approval of a resolution authorizing the City Manager to execute an agreement between the City of Denton and the Texas Historical Commission for services for the Urban Main Street Program. Jane Biles, Main Street Manager, stated that this was an annual contract with the Historical Commission. The following resolution was considered: NO. R91-022 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE TEXAS HISTORICAL COMMISSION FOR SERVICES FOR THE URBAN MAIN STREET PROGRAM; AND PROVIDING AN EFFECTIVE DATE. Gorton motioned, Hopkins seconded to approve the resolution. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. C. The Council considered approval of a resolution supporting the enactment of House Bill 825 which allows Municipal and County Governments to charge certain fees on new and used tires sold within their jurisdictions. City of Denton City Council Minutes April 2, 1991 Page 25 4¸9 The following resolution was considered: NO. R91-023 A RESOLUTION OF THE CITY OF DENTON CITY COUNCIL SUPPORTING THE ENACTMENT OF HOUSE BILL 825 WHICH ALLOWS MUNICIPAL AND COUNTY GOVERNMENTS TO CHARGE CERTAIN FEES ON NEW AND USED TIRES SOLD WITHIN THEIR JURISDICTIONS; AND PROVIDING FOR AN EFFECTIVE DATE. Ayer motioned, Gorton seconded to approve the resolution. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. D. The Council considered approval of a resolution temporarily closing Congress Street between Alice Street and Denton Street on Friday, May 10, 1991 for the annual Day of the Cougar for Calhoun Junior High School. Catherine Tuck, Administrative Assistant, stated that this was an annual fund raiser for Calhoun Junior High School. The school was requesting the street be closed for space and safety for the participants. The DISD was the only property owner affected. The following resolution was considered: NO. R91-024 A RESOLUTION TEMPORARILY CLOSING CONGRESS STREET BETWEEN ALICE STREET AND DENTON STREET ON FRIDAY, MAY 10, 1991, AND ON MAY 17, 1991, IN CASE OF INCLEMENT WEATHER ON MAY 10, 1991; AND PROVIDING AN EFFECTIVE DATE. Trent motioned, Hopkins seconded to approve the resolution. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. 8. Miscellaneous matters from the City Manager. Lloyd Harrell, City Manager, presented the following items: A. Bob Nelson asked the Manager to mention that the initial fee for dumping at the transfer station for commercial customers would be set at $6.00 per cubic yard. He and Waste Management had discussed this after his presentation to Council and he was reminded that when the flow prohibition was taken out of the contract, the fee would be market prices. City of Denton City Council Minutes April 2, 1991 Page 26 B. Staff was trying to an extension of the bid bond. contracts would be dealt with at the same time. sale contract would be considered on Friday. secure from Waste Management If that was possiblE, both If not, the 9. The Council took the following action from the Work Session Executive Session: A. Hopkins motioned, Gorton seconded to nominate the following individuals to the Storm Water Utility Committee and direct staff to prepare the necessary documents to appoint same: Bob Copland-Chair Roland Laney Karen Feshari Bob Nelson Skip Beard Charles Wahlert Don Smith Dorothy Adkins Vera Gershner Mel Willis John Thompson Roy Appleton III Bill Angelo Bob Tickner Mark Hannah, Jr. George Gibson Don Mickel Ted Coe Gloria Stephens On roll vote, Trent "aye," Alexander "aye," Hopkins Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." carried unanimously. 10. New Business "aye," Motion The following items of new business were suggested by Council Members for future Council agendas: A. Council Member Gorton requested a item on the next Council Meeting regarding a report on the redistricting meeting with the County. 11. The Council did not meet in Executive Session during the Regular Session. With no further business, the meeting was adjourned at 10:55 p.m. ~N~F~R ~ALTERS C~Y ~ECRETARY CITY OF DENTON° TEXAS BOB CASTLEBERRY. MAY/OR CITY OF DENTON, T 3379C