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.
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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.
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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,
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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
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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.
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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