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Minutes April 16, 199160 CITY OF DENTON CITY COUNCIL MINUTES APRIL 16, 1991 The Council convened into the Work Session at 5:15 p.m. in the Civil Defense Room. PRESENT: Mayor Castleberry; Members Alexander, Trent. Mayor Pro Tem Boyd; Council Ayer, Gorton, Hopkins and ABSENT: None 1. The Council convened into the Work Session to discuss legal matters (considered action in Kelsoe v. City), 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 Downtown Advisory Board and the Sign Board of Appeals.) 5:45 p.m. 1. The Council received a report .and held a discussion regarding a recommendation on median construction for Loop 288 and gave staff direction. Rick Svehla, Deputy City Manager, stated that the Highway Department had notified the City that plans were being formulated for the design of Highway 288 and asked how the City would like the medians. Staff was recommending raised medians. Consensus was to proceed with the raised medians. 2. The Council received a report and held a discussion regarding the space plan and gave staff direction. Steve Brinkman, Director of Parks and Recreation, stated that the study would inventory all of the City's present facilities, identify existing constraints in the various buildings and develop a fifteen year forecast for future personnel/facility requirements with a list of future needs for space requirements. Also recommendations for renovations and repairs would be developed. Seven proposals were received for the project. Staff was recommending Corgan Associates who had submitted a proposal not to exceed $72,500 for the project. Consensus of the Council was to proceed with a contract for Corgan Associates. 3. The Council received a report and held a discussion regarding the proposed contracts with Waste Management of Texas regarding the transfer of assets and the construction and operation of a transfer station. City of Denton City Council Minutes April 16, 1991 Page 2 Bob Nelson, Executive Director for Utilities, stated that one more analysis had been done as to what the terms of the contract were and what that did to the residential rates. Four basic concepts were analyzed. These included sell the commercial and sign the transfer station contract which would be completed by October 1993, sell the commercial and contract for a transfer station which would be completed by October 1995, sell the commercial and keep the landfill, and continue status quo. A detailed analysis was included in the agenda back-up materials. Council Member Ayer asked that in the scenario where the landfill would be closed in 18 months which would mean that in addition to what was currently put in the landfill, an extra 650,000 cubic yards of Waste Management's waste would be included. Was that not a substantial increase in the flow into the landfill and did the City have the equipment and manpower to handle such an increase. Nelson replied that approximately $200,000 per year would be added for equipment and manpower. Council Member Ayer stated that the contract indicated that 180 days after Waste Management received its permit for the transfer station, Denton had to stop putting waste into its landfill. What would happen if, when that time came, the landfill were not full. Nelson replied that at that point they would be close enough to the closure that it would be up out of the ground and there were would be a pit to put a top on. Council Member Ayer stated that the "profit" for the City increased dramatically after the 2001. Would that kind of escalation continue after the year 2005. Nelson replied it was possible but that it was hard to hold the rates that high. Council Member Hopkins asked if the cost of a new landfill was included in the figures for Scenario 8. Nelson replied yes that in 1996 there would be an increase in the rates for the landfill costs. Council Member Hopkins stated that Option 1 would reject both contracts and continue status quo. The previous assumption was that that could not be done and stay in competition. Was it possible to have competitive rates and not lose money. City of Denton City Council Minutes April 16, 1991 Page 3 Nelson replied that it depended on the marketing effort of the competition. Council Member Hopkins stated that when the bid process was first authorized, the City had a great concern regarding its liability with the landfill and Subtitle D. She understood that in reality, the City still retained liability even if the landfill were closed. With the transfer station agreement, the costs could be increased as regulations indicated and the City was still liable for its waste. Nelson replied that there was a question on how liable the City would be for its waste. Generally, the City would take the position that if it had another commercial hauler hauling from the City to another site, that it was the hauler's responsibility and the landfill operator's responsibility to dispose of the waste properly. There had been court cases where suits had been filed on the solid waste operator and the city. He felt that the City had the liability for the current landfill and what was in it but tha~ the sooner it was eliminated, the less the City would be liable. Council Member Trent stated that the contract would provide a partner for the City which would reduce the liability for the City. Council Member Ayer stated that the assumption was that all solid waste would go the the DFW landfill. What would happen if the DFW landfill closed before the end of the contract terms. Nelson replied that it would be Waste Management's responsibility to find another location at the $5.20 rate. Council continued its discussion regarding franchises, rates and heavy pick-up for special items. The Council then convened into the Regular Session at 7:00 p.m. in the Council Chambers. PRESENT: Mayor Castleberry; Mayor Pro Tem Boyd; Council Members Ayer, Gorton, Hopkins and Trent. ABSENT: Council Member Alexander 1. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance. City of Denton City Council Minutes April 16, 1991 Page 4 The Mayor presented the following proclamations: National Organ and Issue Donor Awareness Week National Dance Week Citizens Reports A. The Council received a citizen report from Cindy Wood regarding bicycle safety. Ms. Wood stated that her son recently had a bicycle accident and as he was wearing a helmet, was not injured as severely as he might have been. She requested the Council to look into a bike helmet law, asked that safety lanes be marked for bicycle riders and that bicycle riders use a bike flag. B. The Council received a citizen report and petition from Gay Racina regarding Loop 288 construction. Ms. Racina stated that she wanted to discuss the construction of a section of Loop 288 directly behind the streets of Selene, Neptune, and a portion of Redstone. She had a petition signed by approximately 40 property owners and residents of the area. She presented information regarding the history of the Loop project. She felt that information regarding the project was limited and difficult to obtain. There had been no notification that the original north route had been changed. In some sections, the new alignment would come within 40' of property lines. The residents were concerned about the devaluation of their property and asked that the construction be moved away from residential development. She asked for a review of the design, what interchanges were being proposed, what safety lighting was being considered. If the alignment could not be moved, the petitioners asked that all safety, health and privacy measures be addressed plus a fair dollar restitution be made to each homeowner affected for proximity damages. C. The Council received a report from C. C. Sexton, member of the Cable T.V. Advisory Board, regarding the televising of City Council meetings. Ms. Sexton stated that her recommendation to the Council was to tape the Council meetings on cable television. She felt it would provide an opportunity for citizens to participate in City government. There had been many technological advances made in the last few years with new cameras which would not need more lighting and not hot lighting. There was money available immediately in the form of a $60,000 grant from Sammons. She requested the Council to approve a Minute Order authorizing the cable casting of Council meetings. City of Denton City Council Minutes April 16, 1991 Page 5 Mayor Castleberry stated that since this was not an action item, it could not be handled at this meeting. Sexton stated that she understood the Council could take action on a Minute Order item as the Council had received information on the item and as it was part of the City's legal franchise agreement with Sammons. City Attorney Drayovitch stated that Ms. Sexton was correct that it was a part of the City's franchise agreement with Sammons. However, in order to meet the requirements of the Texas Open Meetings Act, the City Council could not take action inconsistent with that listed on its agenda. The agenda listed that the Council would receive a report and did not provide for discussion, consideration or taking action. D. The Council received a citizen report from Suzanne Bloxson regarding Texas Waste Management. Ms. Bloxson stated that she was in opposition to both Texas Waste Management contracts. She paid taxes so that her city government would provide her with essential services. Government services were a civic responsibility. She was not comfortable with a 15 year contract and felt that the City was going a good job. E. The Council received a citizen report from Dale Branum regarding the sale of the City's commercial solid waste system. Mr. Branum stated that the Waste Management contracts did not sound like a good deal to him. It sounded like it would cost more and would have less service in a short period of time. He did not feel Denton would benefit from Waste Management's economy of scale. He felt Waste Management would be slower to respond to complaints as they were so large. He felt local control, local management and local service were better. The bottom line for Waste Management would always be maximum profit. He felt that what was needed was more innovation and more self-reliance. He urged the Council to come up with a better solution. F. The Council received a citizen report from Ed Morrison regarding the City's landfill. Mr. Morrison stated that he had been authorized to include the support of Frank Martino, Russell Newman Co., regarding his remarks. He had a concern for the quality of life for the community as by his personal observation, Waste Management had no concern of the cleanliness of the community. Each of these businesses were exponents for the free enterprise system. Commercial and industrial costs would double and there would City of Denton City Council Minutes April 16, 1991 Page 6 not be much control in the years to come. Two-thirds of the community's solid waste was generated by industry and commercial entities, all commercial interest would eventually pay for the contracts. There were tremendous high technical changes occurring in solid waste handling and he felt the City was selling a valuable asset with strong promises of greater value in future years. Russell-Newman, Tetra Pak, Peterbilt, Victor Equipment Co., and the Andrews Corporation unanimously expressed desire to have the City continue solid waste disposition. All the above mentioned companies agreed that the matter of solid waste handling and/or landfill sale deserved more time and more study and review. They were in favor of the City declining the proposed contracts and united~ without exception, preferred to retain the City service for the handling of their industrial trash. Mayor Pro Tem Boyd stated that at two earlier public hearings, the business community, as represented by the Chamber of Commerce and other individuals, indicated that they didn't care about the potential increase in costs that might come from a transfer to Waste Management. He was hearing from Mr. Morrison that that was a concern. Was that a general concern in the business community. Morrison stated that he did not think that increased costs could be escaped whether the City retained the system or not. He felt that the City could better manage the results and that they could get more for their dollar. Mayor Pro Tem Boyd asked if the maintenance of cost at a reasonable level important to the business community. Morrison replied that the City's solid waste department did a satisfactory service. A certain amount of increased cost could be expected from year to year. If there were no control on services, then there would be no control on costs. Mayor Pro Tem Boyd stated that speakers from the business community at the two previous public hearings were fairly uniform in their feeling, that the City would not be able to maintain high quality service. Was that his experience. Morrison replied that the City could be a better job than a commercial entity. He felt that the City did do a better job than a commercial entity. Council Member Gorton stated that members of the Governmental Relations Committee had stated to the Council the need to privatize. His company, at this point in time, did not favor the position of selling to Waste Management. City of Denton City Council Minutes April 16, 1991 Page 7 Morrison replied his company and all of the industries he named did not favor the sale to Waste Management. G. The Council received a citizen report from Joyce Poole regarding the City's commercial solid waste system. Ms. Poole stated that over and over there seemed to be the feeling that the City was facing near destruction if it did not make plans immediately to close the landfill and enter into a contract with Waste Management no matter what the outcome or cost to the citizens. The residents were tired of this kind of scenario. The City's Utility Director and records of the Public Utilities Board minutes indicated that the landfill was in compliance with the Subtitle D regulations. According to the Utility Director, there were 5.5 million cubic yards of space left in the landfill. Almost 2 million was already permitted and 3.5 million cubic yards was available. At the rate of $3.45 per cubic yard, revenue of almost $19 million would be generated. There may be other opportunities in the future. She had petitions signed by citizens who were not in favor of the City selling to Waste Management. She urged the Council to reject both contracts. H. The Council received a citizen report from Mike Cochran regarding the City's commercial solid waste system. Mr. Cochran felt that the effects of the transfer station agreement on residential rates was very important. He stated that currently the City had approximately 80,000 cubic yards of residential waste per year at a rate of $3.00 per cubic yard which equaled $24,000 per year. The transfer station rate would equal $416,000 per year considering the $5.20 rate which would be an increased cost to residential rate payers of $176,000 per year. He understood that Texas Waste Management would take Denton's waste to its DFW landfill for the next 20 years. He questioned where the waste would go after that landfill was full as he understood that it had only 11 years left until it was full. Waste Management had the reputation of playing hardball. He was concerned that Waste Management would be undercutting the rates in order to make the City's commercial system less viable and weaken it. I. The Council received a citizen report from Lovie Price regarding the City's commercial solid waste system. Ms. Price felt that Denton should take the responsibility to take care of its own waste and that the City did a good job collecting the waste. City of Denton City Council Minutes April 16, 1991 Page 8 J. The Council received a citizen report from Don Fielding regarding the City's commercial solid waste system. Rev. Fielding expressed an objection to letting any contract for waste/garbage control at this time. That objection included the fact that Texas Waste Management was affiliated with Waste Management, Inc. Waste Management, Inc. had received severe criticism for its poor environmental operations in other areas. He urged the Council to reconsider the contract. Council Member Alexander joined the meeting. Fielding continued that he felt the issue had not been studied carefully enough and if it had been studied, the results had not been well communicated to the public. What were the alternatives other than the contract with Waste Management. Mayor Pro Tem Boyd asked Fielding if he knew the Council had appointed a citizen group to study the issue for several years. The group reported back to the Council that the City could not compete with other waste haulers. Council discussed with Rev. Fielding the SWAC recommendation and the Public Utilities Board's recommendation regarding the issue and the amount of research that had been done on the issue. K. The Council received a citizen report from Art Anderson regarding a proposal for solid waste service from Sentry Environmental. Mr. Anderson stated that a letter of intent had. been sent to the City from Sentry Environmental which offered to dispose of the City's residential waste $3.00 per cubic yard gate fee. That would be effective when the site was permitted and became operational. There was a discrepancy between the transmittal letter and the letter of intent with respect to the number of days the City would have to cancel the contract. He wanted to assure the Council that the 10 day time frame in the letter of intent was the time frame Sentry intended. The 30 day reference in the transmittal letter was his error. Council Member Gorton requested an update on the status of the license. Mr. Anderson replied that the preliminary report had been filed and had been reviewed by the Technical and Engineering Divisions of the Texas Department of Health. The final report, which incorporated all the comments and revisions, had been prepared and was being reviewed by their legal department. 6¸8 City of Denton City Council Minutes April 16, 1991 Page 9 Council Member Gorton asked for a time frame for final approval. Anderson replied that once the final report had been submitted, there was a 30 day time frame in which the Texas Department of Health reviewed the report and sent out for comments. The public hearing would be held after that. Average time was one year to 18 months. L. The Council received a citizen report from a representative of Texas Waste Management regarding the proposed sale of the City's commercial solid waste system. Mickey Flood, President-Texas Waste Management, stated that a question had been asked of what other cities were doing. He stated that Dallas and Fort Worth were getting out of the business and putting the commercial business in a competitive situation. A comment had been made that government had the obligation to provide. Did government have an obligation to pay more and charge the citizens more for the same level of service. The liability factor had been mentioned. Flood stated that the City would be getting out of the liability issue for commercial waste with the transfer station. All commercial haulers were paying an 8% franchise to the City of Denton. He stated that the president of Peterbilt did not want an exclusive arrangement. The Council allowed Joe Dodd to present a citizen report that was not listed on the agenda as he had requested such but had been left off the agenda. Joe Dodd presented a citizen report regarding revised Council procedures. The ordinary procedure to present items to the Council was to hold a public hearing followed by a staff report, the Council would discuss the item, there would be another meeting without a public forum followed by a vote. Citizens would discover that they did not like what had happened and would schedule citizen reports and try to have the vote changed. Dodd was suggesting a simpler procedure which might be called a citizen temporary veto. Whenever the Council was about to take a final action, the Mayor would read a clause stating "without objection". If any citizen present oDjected, a delay until the next regularly scheduled meeting would be triggered which would involve a public hearing before the final action was taken. A two-thirds vote of the Council could override a citizen objection. Council Member Trent asked Dodd to present his proposal in writing to the Council. City of Denton City Council Minutes April 16, 1991 Page 10 Council Member Gorton requested to reorder the agenda and consider items 5.G. and 5.H. Council expressed concerns that individuals might not be present yet at the meeting as the items were originally scheduled for later in the meeting and that there were citizens present for public hearings who had been waiting and who were scheduled first on the agenda. Council Member Gorton withdrew his request. Public Hearings A. The Council held a public hearing and considered adoption of an ordinance approving a development plan by rezoning a 7.494 acre tract of land from SF-7 (single family residential) to Planned Development on property located at the southeast corner of Bernard and Collins for the purpose of an 88 multi-family unit development. (The Planning and Zoning Commission recommended approval). Z-91-002 The Mayor opened the public hearing. Dale Irwin, speaking as a prospective property owner and developer, stated that the development would be low density apartments of not more than 88 units. He described the development and stated that parking would be 30% more than required. Fifty percent of the building would be brick and recreational facilities would be provided. Randy Looney spoke in opposition to the development. He lived directly across the street from the proposed development and felt that there were too many apartments in the area now. Traffic was heavy on Collins and Bernard and it was difficult getting in and out of his driveway. The entrance of the development was on Bernard Street which would come very close to his front yard and he felt there would be too much noise and traffic. He wanted to see the property used for something else other than multifamily and felt that the development would devaluate his property. There was no rebuttal by petitioner. The Mayor closed the public hearing. Karen Feshari, Urban Planner, stated that the property was located in a low intensity area. Road improvements would be constructed to the development prior to any development on the property. Drainage was a major issue as there was severe flooding in the area. The closest storm sewer facility was on 70 City of Denton City Council Minutes April 16, 1991 Page 11 Eagle Drive, a system which was over capacity. Detention would be required on site with a pond designed with a multiple outset structure detaining water for all storms up to a 100 year storm. Drainage improvements would be required throughout the area with the type of improvements required to be governed by the amount of water passing through on a ten year storm. The drainage improvement would be constructed in a drainage easement outside of the existing utility easement. An 80 foot setback along the southwest corner of the lot to act as buffering to the residential dwellings and six foot high evergreen shrubbery would be constructed to act as screening. Feshari reviewed the staff analysis of the proposal which was included in the agenda back-up materials. The following ordinance was considered: NO. 91-058 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A CHANGE FRO~ ONE-FAMILY (SF-7) TO PLANNED DEVELOPMENT (PD) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR 7.4 ACRES OF LAND LOCATED AT THE SOUTHEAST CORNER OF BERNARD AND COLLINS STREETS; APPROVING A DEVELOPMENT PLAN FOR THE DISTRICT; AND PROVIDING FOR AN EFFECTIVE DATE. Trent motioned, Hopkins seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye, Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. The Council took a short recess. Council Members Trent and Gorton and Mayor Pro Tem Boyd left the meeting. B. The Council was to hold a public hearing and consider adoption of an ordinance approving a detailed plan by amending Planned Development 28 and by rezoning a portion of land zoned light industrial comprising a total of 1.59 acres of land for the purpose of a Braum's Ice Cream Store on property located at the southeast corner of Sadau Court and Colorado Boulevard. (The Planning and Zoning Commission recommended approval). Z-91-001 This item was pulled by petitioner. C. The Council held a public hearing and considered a replat of Lot 1 and additional unplatted land into Lot 1R, Block A, Denton Bible Church addition. The site was on University Boulevard, immediately west of its intersection with the proposed Nottingham Drive extension. (Planning and Zoning Commission recommended approval.) City of Denton City Council Minutes April 16, 1991 Page 12 ¸71 The Mayor opened the public hearing. Bud Hauptman, Metroplex Engineering, stated that the Church had a facility on a portion of the property and was wanting to build a new sanctuary on a portion of the property. As the Church had already plotted the property where the existing sanctuary was located, they were required to replat the entire property. Council Member Trent returned to the meeting. No one spoke in opposition. The Mayor closed the public hearing. Owen Yost, Urban Planner, stated that this was a 9.624 acre tract located on the south side of University Drive immediately west of the proposed Nottingham Drive. The property was zoned single-family and development was anticipated for a place of worship, buildings for ancillary functions and the related parking area. Council Member Gorton and Mayor Pro Tem Boyd returned to the meeting. Hopkins motioned, Alexander seconded to approve the replat. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. D. The Council held a public hearing and considered approval of a resolution which amended the Denton Development Plan by adding proposed greenbelts to the Concept Map and by adding greenbelt specific area policy, and which adopted a strategic issue work plan for flood plain management and greenbelts. Frank Robbins, Executive Director for Planning, stated that the resolution would amend the Denton Development Plan by adding the 100 year flood plain as a proposed greenbelt. It added a section of policy and adopted a work plan. Council Member Gorton stated that under "recommendations", the Chamber of Commerce-Governmental Affairs Committee had endorsed the plan. He questioned the duties of the Committee, how the members were selected, and what the voting membership was. He expressed concern about the makeup of the Committee and the voting powers of the group. Barbara Russell, Chamber of Commerce, stated that she would get back with Council Member Gorton concerning his request. City of Denton City Council Minutes April 16, 1991 Page 13 The Mayor opened the public hearing. No one spoke in favor. No one spoke in opposition. The Mayor closed the public hearing. The following resolution was considered: NO. R91-025 A RESOLUTION AMENDING THE DENTON DEVELOPMENT PLAN BY ADDING A GREENBELT AREA ON THE DENTON DEVELOPMENT PLAN CONCEPT MAP; ADOPTING SPECIFIC AREA POLICIES FOR GREENBELTS; APPROVING A STRATEGIC ISSUE WORK PLAN FOR GREENBELTS; AND PROVIDING AN EFFECTIVE DATE. Alexander motioned, Ayer seconded to approve the resolution. On roll vote, Trent "aye," Alexander 'aye," Hopkins "aye,' Gorton "aye,' Ayer "aye," Boyd 'aye," and Mayor Castleberry "aye." Motion carried unanimously. Item 5.F. was considered. 5. Ordinances F. The Council considered adoption of an ordinance authorizing the Mayor to execute an agreement with Coopers and Lybrand to conduct a comprehensive evaluation of the City's employee health insurance and develop recommendations for the 1991/92 budget. The following ordinance was considered: NO. 91-064 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND COOPERS & LYBRAND, INC. RELATING TO PROFESSIONAL SERVICES FOR A COMPREHENSIVE EVALUATION OF THE CITY'S EMPLOYEE HEALTH INSURANCE PROGRAM; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE. Boyd motioned, Alexander seconded to adopt the ordinance. On roll vote, Trent 'aye,' Alexander "aye," Hopkins 'aye,' Gorton "aye,' Ayer "aye,' Boyd "aye," and Mayor Castleb~rry 'aye." Motion carried unanimously. City of Denton City Council Minutes April 16, 1991 Page 14 73 Council considered Item 5.I. 5. Ordinances I. The Council considered adoption of an ordinance authorizing the Mayor to execute a contract for the collection of delinquent taxes. Mayor Pro Tem Boyd left the meeting with the possibility of a conflict of interest. Council Member Trent questioned the possibility of putting the contract out for Request for Proposal which would allow more than one firm to bid on the contract. Trent motioned to table Item 5. I. until a RFP could be put together. Council Member Hopkins asked if there would be a problem with timing if the item were to go out for bids at this time. John McGrane, Executive Director for Finance, statea that there would be no problem in going for RFP at this time. The current contract did not expire until the end of June. Trent motioned to table the item until an RFP could be put together. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. Hopkins motioned, Trent seconded to move forward with bids for the delinquent tax process. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Castleberry "aye." Motion carried unanimously. Mayor Pro Tem Boyd returned to the meeting. Item 5.G. was considered. 5. Ordinances G. The Council considered 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. Rick Svehla, Deputy City Manager, stated that staff was prepared to answer any questions Council might have. City of Denton City Council Minutes April 16, 1991 Page 15 Bob Nelson, Executive Director for Utilities, stated that a question had been raised regarding the franchise license fee. The fee was 8% and was developed approximately a year and a half ago. There was approximately $77,000 coming out of the solid waste fund which was being used for mosquito spraying and litter crews. The fee would help pay for those expenses. It was estimated that there was approximately $1 million worth of other commercial hauler business in Denton at the time and the 8% fee would just cover the $77,000. The fee was put into place January 1 ana collected $46,000. This year it was estimated that $48,000 would be collected. That $48,000 did not cover the total cost of mosquito spraying and litter crews. Regardin9 the operation of the landfill, the operating cost for 1991 was estimated at $1.4 million and $1.7 million for 1992. Mayor Castleberry stated that he often received certified letters from the Texas State Health Departments regarding the landfill. He asked Nelson to elaborate on those letters. Nelson replied that the letters fell into a range of different issues. Inspectors came out at least once a month. Some letters were good and some letters pointed out problems at the landfill. Council Member Gorton asked about the severability of the two contracts. Nelson stated that if Council Member Gorton was asking if the two contracts were severed, they could be handled individually. The resolution was established where if the Council did not approve the sale of the commercial system, then City Attorney Drayovitch continued that the Mayor was not authorized to execute the transfer station agreement until the closing of the asset purchase agreement. Council Member Gorton questioned the bid bond extension. City Attorney Drayovitch replied that there was a problem regarding the bid bond which arose from a letter received April 4, 1991. It was brought to the attention of Waste Management and they had been asked to correct the problem. Waste Management had provided the City with a letter but it was still somewhat ambiguous. The Austin counsel and she believed that Mr. Flood should affirm before the Council tha~ he intended to honor the conditions of the bid which provided that upon award, Waste Management would agree to comply with the terms of the bid and to fulfill the terms of the bid within 30 days after the Council notified Waste Management or they would forfeit the amount of the bid bond. City of Denton City Council Minutes April 16, 1991 Page 16 75 Council Member Gorton asked if that document needed to be executed before a vote was taken. Drayovitch replied that Austin counsel advised that Mr. Flood make that statement. She had drafted the language from the bid and it was ready for him to sign. Mayor Castleberry asked Mr. Flood to come forward. Mr. Flood stated "so affirm." Council Member Alexander questioned the definition of "special waste" as there was language in the contract which indicated that Waste Management would have the right to reject "special waste" was they defined such. That left a lot of open area. He requested information regarding what was currently done with "special waste" in the City. Council Member Gorton left the meeting. Nelson replied that "special waste" were items which required a special type of facility to handle on the floor of the transfer station. Something which would not fit into a truck and was not normal waste. Council Member Gorton returned to the meeting. Council discussed "special waste" requirements including what was currently done with the City's "special waste" and what Waste Management would do with those items. City Attorney Drayovitch stated upon discovery of the administrative issue with the bid bond, one section of the ordinance was revised to accommodate that information. The revision indicated that the bid was awarded to Waste Management and they were instructed to comply with the terms of the bid. Council Member Trent felt that the Council was about to vote on an issue that many cities in the country were dealing with. That issue was getting out of the solid waste/landfill business. Trent motioned approval of Item 5G. Hearing no second, the Mayor seconded the motion. Council Member Ayer stated that in his judgment the facts were on the side to reject the contract. He recently had attended a meeting of the Upper Trinity Regional Water District Board at which a representative of the North Texas Council of Governments presented a study that COG had been involved in for at least two years on a regional study of solid waste. The representative from COG stated that the study was guided by the legislation pending before the State Legislature which sought to develop a plan for the handling solid waste in City of Denton City Council Minutes April 16, 1991 Page 17 the State of Texas. The proposed legislation had a four point plan: (1) a minimization of solid waste flow such as not bagging lawn clippings, (2) maximizing recycling, (3) treatment of solid waste in various ways such as incineration, and (4) the use of landfills. The legislation would require each governmental entity to develop a plan for implementing this program. As such, the City would be required to develop such a plan. No where in the legislation was any responsibility placed on any private company or corporation to develop or to implement such a plan. The responsibility for meeting these requirements would rest upon the local government. The COG representative stated "privatizing does not reduce or eliminate municipal responsibility for meeting state requirements." Ayer felt it would be best to keep all options open and that it would be unwise to saddle the City with a 15 year obligation when there was so much more to decide on these important issues. Council Member Alexander stated that when the Council first began to look at the issue and that after the Council had heard the input from the initial public hearing a year ago and heard the citizens talk about the fact that they were not inclined to see anyone be an exclusive provider, it was his initial inclination to vote in favor of the sale. During the last public hearing, he had a very strong sense that a great many residents in the City of Denton really believed that it was not in the best interest of the City to sell the commercial solid waste system. The citizen input had been overwhelmingly in favor of keeping the commercial solid waste system in Denton and for continuing the City's present structure. Alexander felt that one of the things which would determine the City's future economic development was whether or not the City could assure, on a consistent basis to prospective new businesses, that the quality of services in Denton would remain high in all areas. He believed that if the City could continue to provide commercial solid waste service and that it was done aggressively and well, that the City could out compete anyone in that process. He would vote to reject the contract and appreciated the alternatives presented by Texas Waste Management. Council voted on the motion. On roll vote, Trent "aye," Alexander "nay," Hopkins "nay," Gorton "nay," Ayer "nay," Boyd "aye," and Mayor Castleberry "aye." Motion failed with a 4-3 vote. City of Denton City Council Agenda April 16, 1991 Page 18 77 H. The Council considered adoption of an ordinance authorizing the Mayor, subject to applicable provisions of Article IV of the Charter of the City of Denton, Texas and to other conditions to execute a transfer station agreement between the City of Denton and Waste Management of Texas, Inc. requiring Waste Management of Texas to acquire, construct and -operate a transfer station for handling solid waste. Boya motioned, Alexander seconded to reject the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. The Council returned to the regular agenda order. Consent Agenda Boyd motioned, Gorton seconded to approve the Consent Agenda. Motion carried unanimously. A. Bids and Purchase Orders: 1. Bid #1223 - Pecan Creek Sanitary Sewer 2. Bid #1229 - C. I. P. Utilities Waterline 3. Bid #1231 - Personal Computers Hardware, Software & Accessories 4. Bid #1234 - 16' Diesel Riding Mower 5. Bid #1239 - Air Switches 6. Bid #1240 - Distribution Transformers 7. P.O. #12676 - Eastern Electric Apparatus Se Change Orders - P.O. #17167 and P.O. #17168 - Martin K. Eby 9. Bid #1210 - Data Logger B. Tax Refunds Ce 1. Considered approval of a tax refund for Title Resources for $611.93. Plats and Replats Considered approval of the preliminary replat of the Golden Triangle Mini-Mall Addition: from Lots 8, 9, and 10; into Lot~ 9R and 10R, Block A. (The Planning and Zoning Commission recommended approval.) 78 City of Denton City Council Minutes April 16, 1991 Page 19 5. Ordinances A. The Council considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for the purchase of materials, equipment, supplies or services. (4.A.3. - Bid #1231, 4.A.4. - Bid #1234, 4.A.5. - Bid #1239, 4.A.6. - Bid #1240, 4.A.9. - Bid #1210)) The following ordinance was considered: NO. 91-059 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. Boyd motioned, Gorton seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. B. The Council considered adoption of an ordinance accepting competitive Dids and providing for the award of contracts for public works or improvements. (4.A.1. - Bid #1223, 4.A.2. - Bid #1229) The following ordinance was considered: NO. 91-060 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. Boyd motioned, Gorton seconded to adopt the ordinance. On roll vote, Trent 'aye,' Alexander 'aye," Hopkins 'aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye.' Motion carried unanimously. C. The Council considered adoption of an ordinance providing for the expenditure of funds for emergency purchases of materials, equipment, supplies or services in accordance with the provisions of state law exempting such purchases from requirements of competitive bids. (4.A.7. - P.O. #12676) The following ordinance was considered: City of Denton City Council Minutes April 16, 1991 Page 20 79 NO. 91-061 AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR EMERGENCY PURCHASES OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING FOR AN EFFECTIVE DATE. Boyd motioned, Gorton seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. D. The Council considered adoption of an ordinance authorizing the execution of change orders to a contract between the City of Denton and Martin K. Eby; and providing for an increase in the contract price. (4.A.8. - P.O. #97167, P.O. #97168) The following ordinance was considered: NO. 91-062 AN ORDINANCE AUTHORIZING THE EXECUTION OF A CHANGE ORDER TO A CONTRACT BETWEEN THE CITY OF DENTON AND MARTIN K. EBY; PROVIDING FOR AN INCREASE IN THE CONTRACT PRICE; AND PROVIDING AN EFFECTIVE DATE. Boyd motioned, Alexander seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. E. The Council considered adoption of an ordinance amending Section 25-7 of Article I, Chapter 25 of the Code of Ordinances of the City of Denton, Texas redesignating Section 25-8 of Article I, Chapter 25 of the Code of Ordinances of the City of Denton, Texas as Section 25-9; adding provisions to Article l, Chapter 25 of the Code of Ordinances of the City of Denton, Texas, and designating same as Section 25-8; revising tap and loop installation fees, and meter relocation fees; providing for the issuance of permits for tap and loop installation; establishing charges for work not specified; providing for the installation or inspection of water taps dedicated exclusively to fire sprinkler systems without charge or at reduced cost. 80 City of Denton City Council Minutes April 16, 1991 Page 21 David Ham, Manager of Construction Projects, stated that tap and loop fees had not been increased since 1984. These fees, at this time, were highly subsidized by the Utilities Department. The Utilities staff had met with a group of plumbers and developers through the Chamber of Commerce Economic Development Committee to develop the ordinance. Key provisions were (1) increased tap and loop fees over a two year period at 50% each year to arrive at a self-supporting fee structure, (2) provided for citizen privatization of tap and loop fee construction in addition to City installed construction, (3) installed fire sprinklers taps free in order to encourage installation of fire sprinkler systems, and (4) gave a refund to a customer if tap and loop fees were less to construct by City forces than estimated advance paid fee indicated. The Public Utilities Board recommended approval. The following ordinance was considered: NO. 91-063 AN ORDINANCE AMENDING SECTION 25-7 OF ARTICLE I, CHAPTER 25 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; REDESIGNATING SECTION 25-8 OF ARTICLE I, CHAPTER 25 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS AS SECTION 25-9; ADDING PROVISIONS TO ARTICLE I, CHAPTER 25 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, AND DESIGNATING SAME AS SECTION 25-8; REVISING TAP AND LOOP INSTALLATION FEES, AND METER RELOCATION FEES; PROVIDING FOR THE ISSUANCE OF PERMITS FOR TAP & LOOP INSTALLATION; ESTABLISHING CHARGES FOR WORK NOT SPECIFIED; PROVIDING FOR THE INSTALLATION OR INSPECTION OF WATER TAPS DEDICATED EXCLUSIVELY TO FIRE SPRINKLER SYSTEMS WITHOUT CHARGE OR AT REDUCED COST; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $500.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE, AND DECLARING AN EFFECTIVE DATE. Boyd motioned, Ayer seconded to adopt the ordinance. On roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye." Motion carried unanimously. Miscellaneous matters from the City Manager. City of Denton City Council Minutes April 16, 1991 Page 22 81 Rick Svehla, Deputy City Manager, presented the following information: A. The Mayor had met with members of the Perot Group to discuss a foreign trade zone. The Group had requested a letter of support from the City of Denton regarding this trade zone. With Council's permission, staff would draft a letter of support for the Mayor's signature. Council discussed the issue centering on whether or not this was an abatement issue. Several of the Council Members felt this was a hurried issue and were uncomfortable authorizing the Mayor to sign a letter of Council support until they had more details on the issue. The Mayor could provide his personal support but not the support of the entire Council until staff and Council had more time to investigate the issue. B. There would be a special meeting April 23, 1991 to allow the Council to discuss board appointments. The foreign trade zone issue could also be included in that meeting. Council Member Gorton asked that the County position and DISD position be included in the information presented at the next meeting. C. There would be a special meeting April 30, 1991 to consider the sprinkler ordinance and the space plan. D. Court of Record - City Attorney Drayovitch stated that a request had been sent to Representative Horn regarding amendments and the three County Court-at-Law Judges had been contacted to discuss the legislation. The Judges voiced several valid concerns. The City would work with the Judges to obtain an amendment regarding a technical issue regarding a statement of facts on appeal. The concern was that the Court-at-Law Judges did not want to have to hear appeals again which would be supportive of the City's goals. 7. There was no official action taken on Executive Session items discussed during the Work Session Executive Session. 8. New Business The following items of New Business were suggested by Council Members for future agendas: A. Mayor Pro Tem Boyd indicated that he would like staff to look into a helmet law, the televising of Council meetings and the proposal for the City to become the exclusive provider for the solid waste service in the City. 82 City of Denton City Council Minutes April 16, 1991 Page 23 B. Council Member Alexander echoed Boyd's request for the City exclusive contract and asked that it be presented as soon as possible. C. Council Member Gorton wanted staff to look into the concerns expressed by Mrs. Racina in her citizen report. 9. The Council did not meet in Executive Session during the Regular Session. With no further business, the meeting was adjourned at 11:00 p.m. JE~I FER~ALTERS ci%% S .C TARY CITY OF DENTON, TEXAS BOB CASTLEBERRY, MAY~R -~ CITY OF DENTON, TEX~S / 3381C