Minutes September 03, 1991The Council convened into the Work Session at 5:15 p.m. in the
Civil Defense Room.
PRESENT:
Mayor Castleberry; Mayor Pro Tem Hopkins: Council
Members Alexander, Chew, Perry, Smith and Trent.
ABSENT: None
1. The Council convened into the Executive Session to
discuss legal matters (held a discussion regarding in re: Flow
and considered filing litigation against the State regarding
redistricting), real estate and personnel/board appointments.
Mayor Pro Tem Hopkins left the meeting during the discussion in
re: Flow.
2. The Council received an interim report from and held a
discussion with the Stormwater Utility Committee.
Bob Coplen, Chair-Stormwater Utility Committee, stated that the
Committee was made up of 15 voting members. They operated
under certain rules of operation which included a quorum of 75%
of the members needed to be in attendance and a majority vote
was required to approve a motion. The Committee felt that
their charge was two fold. Phase I was to determine if the
City should continue to fund the current drainage system
operation through the General Government Fund or establish a
utility and collect the revenues by assessing user fees. After
two half day work sessions the Committee voted 9 in favor and 6
undecided to pursue the concept of a storm water utility and
reserved the right to Continue the current funding method.
Phase II was to establish preliminary policy guidelines which
would be attached to the final recommendation if the Committee
felt that the City should pursue the establishment of a storm
water utility. After two half day meetings, the Committee made
the following preliminary decisions: (1) residential should be
charged as single family units, a fee would be assessed to the
occupant and if the property were vacant, the owner would be
assessed the fee; (2) mobile homes would be charged as single
family units, a fee would be assessed to the individual
responsible for the utilities, and if the owner were
responsible for the utilities, he would only be charged for
those lots occupied by a mobile home: (3) apartment fees would
be determined by a formula which would include the number of
units within the complex and the impervious acreage, a fee for
each complex would be calculated on an individual basis, a fee
would be assessed to the occupant, if he were responsible for
the utilities, and the fee would be assessed to the owner, if
the owners was responsible for the utilities, the owner would
have a limited liability regarding vacancies. In upcoming
meetings, the Committee' would be considering commercial,
churches, universities, DISD and city/county/state buildings.
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September 3, 1991
Page 2
Council Member Trent asked if the impervious acreage formula
was applied tO any of the other categories.
Coplen replied that the Committee started with a formula for
residential category but decided that it was not cost effective
for impervious acreage for residential categories. Outstanding
issues included exemptions, what should the fees cover, a
monthly rate as opposed to a tier schedule, limited apartment
owner liability and how other cities were handling the issue.
Caplen summarized that there were would be two meetings in
September and that the Committee hoped to finish
recommendations at that time. He cautioned that each decision
they made would be reviewed against previous decisions for
consistency and fairness to each element of the City. Strong
discussion on each item might delay the project.
3. The Council received a presentation, held a discussion
and gave staff tentative direction regarding the proposed
1991--92 electric rate recommendations and related issues.
Bob Nelson, Executive Director for Utilities, stated that the
major electric issues which remained were (1) the Public
Utilities Board's proposed 3% reduction in electric rates which
would reduce the Energy Cost Adjustment from 1.9~ to 1.7~ KWH
effective October 1, 1991. It would save the City's customers
about $1.5 million and (2) vacant positions which Nelson
indicated currently there were 13 positions vacant which
represented $379,000 in fiscal 1992.
City Manager Harrell stated that of those 13 positions, staff
anticipated leaving 10-11 vacant during the next year. Ten
positions represented $300,000 and eleven positions represented
$351,000.
Consensus of the Council was to proceed with the 3% reduction
of electric rates effective October 1, 1991. The vacant
positions were to remain in the budget and unfilled as long as
necessary. The money for those positions would remain in
reserve for a possible rate reduction later in the year.
Item fi4 and ~5 were considered after the regular session.
The Council convened into the Regular Session at 7:00 p.m. in
the Council Chambers.
PRESENT:
Mayor Castleberry; Council Members Alexander,
Chew, Perry, Smith and Trent.
ABSENT: '' Mayor Pro Tem Hopkins
City of Denton City Council Minutes
September 3, 1991
Page 3
Pledge of Allegiance
The Council and members of the audience recited the Pledge of
Allegiance.
Mayor Pro Tem Hopkins joined the meeting.
2. The Council considered approval of the minutes of the
Regular Session of July 23 and July 30, 1991
Smith motioned, Alexander seconded to approve the minutes as
presented. On roll vote, Trent "aye," Alexander "aye." Smith
"aye," Chew "aye," Perry "aye," and Mayor Castleberry "aye."
Motion carried unanimously with Mayor Pro Tem Hopkins
abstaining.
Citizen Reports
A. The Council received a citizen report from Joe
Dodd regarding the sign ordinance and a workable compromise.
Mr. Dodd stated that he felt there could be a workable
compromise worked out regarding the sign ordinance. One of
those solutions might be that if a sign were other wise legal,
the replacement of comparable materials should be allowed. He
asked the Council to consider such an amendment.
B. The Council received a citizen
Rosemary Killiam regarding Loop 288 and
situation.
report from Dr.
the neighborhood
Dr. Killiam presented a video tape of her property and the
proximity of the Loop extension to her property. She felt that
there was misinformation regarding the project. She had spoken
with representatives from the Highway Department who had
informed her that there would be no money available for a sound
barrier and that environmental studies were not planned. Rick
Svehla, Deputy City Manager had informed her that the studies
were going to be done. Svehla had thought that the project was
at least 100' from her property line and when he came out to
measure, it was under 60' from the northernmost property line.
The property owners in the area were not notified of the
pro,eot and she wanted answers on how the project would affect
the neighborhood.
Mayor Castleberry asked staff to make a summary on the issue.
Rick Svehla, Deputy City Manager, stated he had met with the
engineer in charge of the project and had been informed that
the Department was doing a study for sound barriers which was
one of the options presented by Dr. Killiam. He suggested the
parties involved meet with the Highway Department as they were
in charge of the project.
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September 3, 1991
Page 4
Mayor Pro Tem Hopkins asked that the Council be kept informed
of further developments.
Mayor Castleberry presented
Volunteer Month.
a proclamation for Literacy
4. The Council considered a request from Mo Joiner,
representing Denton Youth Football, requesting a release from
their past due obligations for 1990, reduced fees for 1991 and
the institution of a payment schedule for the remaining fees
for 1991.
Mr. Joiner stated that there was an economic crunch in Denton.
He was not asking for funding. He was asking for relief and
help to keep the program alive.
Council Member Perry asked if any fees were collected last year.
Joiner replied no, not from football.. They had never paid them
in the past and hoped not to pay them this year in order to try
and keep the program alive.
Council Member Perry asked if "never" referred to the beginning
of the program.
Joiner replied since the fee was implemented. He. understood
that the Football League had never paid it the fee.
Council Member Smith asked Joiner what he specifically was
asking for from the Council.
Joiner replied that he was asking for a one year referendum
from the fees in 1992 to give the leagues a chance. He also
represented two baseball leagues, a soccer league and girls
softball in addition to football. If Council felt revenue
needed to come from the Parks after 1992, he would be willing
to discuss it. But he felt that the Council needed to give the
program a break. The programs were co-sponsored by the City of
Denton. They ran the programs for the City with volunteers.
Council Member Smith stated that Joiner was suggesting that the
City receive no fees from football nor any other organization.
Joiner replied not from anyone in the Parks. If the City ran
the program and funded the program, then it had the right to
set the fee. If the City was putting out money to run the
program, then it could set the fee. He was speaking for the
volunteer programs.
City of Denton City Council Minutes
September 3, 1991
Page 5
Council Member Chew asked if Joiner was requesting the City
waive the fees for the Denton Youth Football.
Joiner replied yes.
City Manager Harrell presented the history of the issue. The
administrative fee began in 1983 during the cost of service
study done by an outside firm. At that point in time, the firm
recommended that the City institute a $15 activity fee which
would apply to any individual who happened to use a City
facility in connection with some kind of organized program such
as a craft program, in a recreation program, or a participant
in a youth sporting event. At that point the Council decided
that rather than have a $15 fee, .a $5 fee would be assessed
which went into effect in 1983. When that was initially
applied, it was not applied to the athletic programs. The
reasoning for that was not clear but it was applied to all
other activities except for the athletic programs. That matter
was brought to the attention of the Council in the budget
discussion in 1989 and at that point in time, the Council made
the decision to include the athletic programs. The reasoning
behind the administrative fee was to help the City recoup just
a small amount of the expenses incurred with general tax
dollars to support the program. The maintenance costs for all
athletic fields totalled approximately $175,000 per year. The
administrative charges from the athletic programs brought in
approximately $12,000 per year to the City. The other youth
activity programs in the community had paid and were up-to-date
on last year's administrative fee charges. The only group at
this point which still had not paid fees from last year was the
Youth Football program. Current decision making of the Council
and in all the communications with all of the youth sports
events, the City had been consistent in reporting the Council's
policy as adopted in budgets. That policy was that all
participants using all of the City's recreation facilities for
organized programs, senior citizens or recreation programs, the
$5 administrative fee was charged. Staff was needing direction
from Council. The Parks Department was getting ready to
schedule fields for Youth Football. They had not paid the fee
for last year. Staff needed to know how Council wanted staff
to proceed regarding that problem and what to do for the
current year, Staff had communicated a number of times this
past year regarding the problem with the organization.
Council Member Perry stated that Joiner had used a figure of
$40 and the Manager had used an administrative cost of $5.
City Manger Harrell replied that Joiner was probably talking
about their entire fee.
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September 3, 1991
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Joiner stated that the fee to play football was $40. That was
what they paid for the program and none of the money came from
the City. The parks were maintained by the City but when the
citizens passed the bond election, he thought that's what they
were for, for the kids. He did not disagree with the fee. He
was just in a budget crunch just like the City and had no other
way. The money they had been paying in did not go to help the
parks, it went in the General Fund. If the City needed to draw
money from the park, it should be put back for those kids. He
wanted the Council to understand that there was an economy
switch in this City. In previous years he could raise all the
money he needed for the program. That was not the case any
longer. They could not raise the funds, stay alive and pay the
City fees. They were asking for some sort of relief for
1991-92 fees to try to save the programs. He did not think
Dixie Boys Baseball had paid their fees.
Council Member Trent asked for the amount due from the
organization.
City Manager Harrell replied that last year's fee totalled
approximately $1250 - $1300 giving them credit for scholarships
awarded.
Council Member Trent stated that at the most $1300 was due'from
the organization.
City Manager Harrell replied correct.
Council Member Trent stated that he supported what Joiner was
asking. In all fairness to that program, the Council needed to
grant him relief because last week it was indicated by Council
that they were willing to subsidize other sports programs by as
much as $40,000 per year. To be consistent, he felt the
Council should support Joiner in his request.
Trent motioned, Chew seconded that the Council should go on
record indicating that it was going to provide Denton Youth
Football with the relief requested for the funding of past
years to include 1991.
Mayor Castleberry questioned was the relief for 1991 or for
past fees.
Trent indicated that as he understood the item, relief was
sought from past due obligations for 1990 and reduced fees for
1991 to include whatever was remaining for 1991.
Mayor Castleberry asked if that was part of Trent's motion.
City of Denton City Council Minutes
September 3, 1991
Page 7
Council Member Trent replied yes.
Mayor Pro Tem Hopkins stated that she had no problem if the
Council decided not to charge the fees. But she did have a
problem in relieving Mr. Joiner and continuing to charge the
other programs. If Youth Football did not pay the fees from
last year, then the Council needed to rebate everyone else who
did pay the fee. The fee would not be in the next years budget
but the amount would have to be made up to give back to the
other organizations. It was not fair for the Council to treat
them any differently. The administrative fee did not cover the
cost, it simply helped pay back in a little toward the
administrative fee. She did not have a problem with asking the
Park Board to review the issue. She felt it was grossly unfair
to expect everyone else to pay the fee and not expect Football
to pay it.
Council Member Alexander asked for a point of order. He was
not sure Council could deal directly with the issue as it might
only be an information item. He felt it was a larger policy
issue than just for the Football Association.
Debra Drayovitch, City Attorney, stated that wording on the
agenda permitted the Council to discuss the item and take
action. She stated that the decision did have Other
implications, one of which would be that it would set an
example to other organizations which had paid the fee and could
possibly affect the City's ability to collect the fees in the
future.
Council Member Trent withdrew his motion based on Council
discussion to allow further investigation.
Council Member Perry asked if the issue had any bearing on the
$40 fee that was charged to each child.
Joiner replied no, that was what it took to 'raise and run the
program. The $40 fee was what was used to run the program, pay
for the umpires, the trophies, etc.
Council Member Smith asked where the additional .money to run
the program came from.
Joiner replied that part of it came from sponsors. If a parent
could not afford the $40, the child was enrolled anyway.
Council Member Chew withdrew his second.
Mayor Cas%'leberry questioned Joiner that the organization was
collecting fees now which would be a part of the $5 fee toward
the City fee.
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City of Denton City Council Minutes
September 5. 1991
Page 8
Joiner replied yes that the organization was collecting the $40
fees now.
Mayor Castleberry asked if part of that $40 was the City fee.
Joiner replied that it was part of what the City was wanting
but that they did not count it as such.
Council Member Perry asked what the $40 fee represented.
Joiner replied that it covered a jersey, officials, cheer-offs,
pompoms, the entire program. He stated that he was not
prepared to itemize where all the money went but he could give
Council a financial statement showing that it was spent. The
organization spent $4,000 more than it had last year. That's
why he took the program over in debt.
Consensus of the Council was to discuss the item further at a
later Council meeting.
City Manager Harrell asked if staff should proceed to schedule
games for the organization until the issue was decided.
Consensus of the Council was to schedule practices and games
for the organization and place the item on the next Council
agenda.
Public Hearings
A. The Council held a public hearing and considered
adoption of an ordinance amending the boundaries of the
Oak/Hickory Historic District to exclude three houses on
property located at 604 W. Hickory, 602 W. Hickory and 109
Williams. (Planning and Zoning Commission, at its July 25,
1991 meeting, recommended denial. 4-3 Vote)
The Mayor opened the public hearing.
Sally Mudd, owner of the properties, stated that the houses
were old but did not consider them historical. The houses were
included in the Historic District and she would like to have
those houses excluded from the District. The area of the
District where her houses were located was not particularly
historical with apartments and office buildings in the nearby
area. She did not feel the houses belonged in the Historic
District. She wanted to repair the houses with vinyl siding
and would not be able to do so if they remained in the
District. She would have to paint them instead of using the
siding.
City of Denton City Council Minutes
September 3. 1991
Page 9
Council Member Trent stated that the Planning and Zoning
Commission had denied the request and felt that by allowing the
properties to be excluded would damage the integrity of the
Historical District.
Mudd replied that if her houses were in a different block, the
situation would be entirely different. She did not ask to be
included in the District and felt it had lowered the value of
her land.
Mayor Castleberry asked if Mudd wanted to be a part of the
District.
Mudd replied no.
Mayor Castleberry asked her if she had ever taken advantage of
any of the tax advantages.
Mudd replied that she did not know about those benefits and
felt that the Historic Landmark Commission should have some
type of guidelines for people who were in the District. There
were-many restrictions being in the District which she did not
know about.
Council Member Perry asked Mudd if she was now aware of tax
benefits.
Mudd replied she was aware somewhat but had not pursued that as
of yet. She stated that her house on Williams Street was very
close to an apartment house which was not included in the
District. She felt that was unfair.
Council Member Smith asked how long it would be before the
houses would meet the historical age limit.
Mudd replied that she did not know. Her houses were old frame
rent houses which were built in the late 1940's. She wanted to
fix the houses so that she would not have to paint them every
four to five years. She would not change the houses but could
not afford to paint them every four to five years.
Mayor Castleberry asked if she wanted to put siding on the
houses.
Mudd replied yes.
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334.
City of Denton City Council Minutes
September 3, 1991
Page 10
Mike Cochran spoke in opposition. He felt it was more
important to the community to preserve the Historic District
than to exclude the houses from the District. Not wanting to
paint the houses was not an important enough reason to exclude
them from the District. Denton's Historical District included
a wide range of houses and styles of architecture. These three
houses were a dominant style of post-war era and did have a
value. Painting as opposed to vinyl siding would detract from
the District and would change the lines of the houses. He
asked the Council to vote against excluding the houses and
preserve the Historic District.
Council Member Smith asked if the house immediately to the west
of the Mudd property was the same type of style.
Cochran replied yes that it had some transition styles in it.
Council Member Smith asked if that house was within the
District.
Cochran replied yes.
Council Member Trent asked if Cochran's basic opposition was to
the materials requested to renovate the house.
Cochran felt that that issue was separate. The main issue was
the removal of the houses from the District. According to all
of the preservation briefs he had read, siding covered over the
detail of the house which gave it its definition. The houses
had not been painted for probably 10 years and wood homes need
painting more than that. He asked if it were a compelling
reason to not want to paint the houses to threaten the
integrity of the Historic District,
The Mayor closed the public hearing.
Jane Biles, Main Street Manager, stated that on May 29, 1991,
the Mudd's applied to the Historic Landmark Commission for a
Certificate of Appropriateness to apply vinyl siding to their
houses. The application was denied with a unanimous vote. The
ordinance stated that existing wood facades must be preserved
as wood facades. Instead of appealing their certificate of
appropriateness, the Mudd's requested to have their properties
removed from the District. The Historic Landmark Commission
denied the petition for removal as did the Planning and Zoning
Commission. Biles presented slides of the area which showed
the properties in question as well as similar style houses
which had been renovated. As the Planning and Zoning
Commission had denied the petition for removal, six Council
votes were required to approve the petition. Denton's Historic
District was recognized on a state level as in encompassed a
variety of styles of residential homes,
City of Denton City Council Minutes
September 3, 1991
Page 11
Mayor Castleberry asked if the lawyer's building on the corner
of Denton and West Hickory was in the Historic District.
Biles replied yes it was included. In terms of drawing
boundaries, it was best to keep the lines contingent. There
were some buildings in the District which did not have historic
value.
Mayor Castleberry asked if that was a reason for building it in
the Historic District.
Frank Robbins, Executive Director for Planning, stated that the
building had been built before the District was formed.
Mayor CastleberrY asked about the apartment building on
Williams Street.
Robbins replied that the apartment building on Williams and
West Oak was not in the Historic District.
Council Member Alexander stated that one of the primary
motivations for the configuration of the lines was that
reasonably straight lines were trying to be formed. It was
recognized that not all properties within the District had
equal historic value.
Council Member Trent asked if there were any other requests
like the Mudd's who were in the Historic District and who were
asking to be excluded from that District.
Biles replied that staff had called several cities to try and
find out how they had handled similar problems and did not find
any situations of individuals requesting to be removed from the
District.
Council Member Trent questioned what would be the problem if a
section of the District were cut out for someone who did not
want to be a part of the District.
Biles replied that it would set an example for other
individuals to request to be excluded.
Mrs. Mudd was allowed a five minute rebuttal. She stated that
she did not have old historic houses. She had older homes
which she wanted to fix up. The difference between painting
the houses and installing the siding was $4,000. The vinyl was
more expensive but would not require the maintenance that
painting would. She did not feel these houses belonged in the
District.
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City of Denton City Council Minutes
September 3, 1991
Page 12
Hopkins motioned to exclude the homes from the Historic
District and 'pass the ordinance as presented due to the fact
that removing them did not remove anything in the middle of the
District. If the homes were in a different location, in the
middle of the District, she would feel differently. Smith
seconded the motion.
Council Member Alexander stated that he would vote against the
motion. He felt the Council needed to look at the long term
effect of excluding properties from the District. He felt that
to exclude the homes would change the nature of the District.
On roll vote, Trent "aye," Alexander "nay," Hopkins "aye,"
Smith "aye," Chew "nay," Perry "nay." and Mayor Castleberry
"aye." Motion failed with a 4-3 vote as six affirmative votes
were required.
Consent Agenda
Perry motioned, Hopkins seconded to approve the Consent Agenda
as presented. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
1. Bid %1266 - Cleaning of Boiler Ele6tric
Production
2. Bid %1272 - Distribution Transformer
3. Bid %1275 - Infrared Imaging System
4. Bid %1278 - Tire Cutter
7. Ordinances
A. The Council considered adoption of an ordinance
accepting a competitive sealed proposal and awarding a contract
for the purchase of materials, equipment, supplies or services.
(6.A.1. - Bid %1266, 6.A.2. - Bid ~1272, 6.A.3. - Bid %1275,
6.A.4. - Bid %1278)
The following ordinance was considered:
NO. 91-135
AN ORDINANCE ACCEPTING A COMPETITIVE SEALED PROPOSAL
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.
City of Denton City Council Minutes
September 3, 1991
Page 13
Chew motioned, Hopkins seconded to adopt the ordinance. On
roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Smith
"aye," Chew "aye," Perry "aye," and Mayor Castleberry "aye."
Motion carried unanimously.
B. The Council considered adoption of an ordinance
authorizing the City Manager to execute a contract between the
City of Denton and J. Robert McLain relating to consulting
services. (The Public Utilities Board recommended approval.)
Howard Martin, Director of Environmental Operations and
Financial Administration, stated .that the original contract
with Mr. McLain was based on 249 hours of consulting services
for $9,960. Due to several factors, the rate study was not
completed within the original contract value. An addendum to
the contract of $4,040 was necessary to compensate the
consultant for the additional work on both the cost of service
study and rate design. This year a base-extra capacity
modeling was used and required extra time. Once the
recommendations were made, the Public utilities Board requested
the staff and consultant review additional optiops for the
Board's consideration.
Mayor Castleberry asked if this was a miscalculation on the
part of the consultant.
Martin replied no that fifty three hours were additional hours
requested by the Public Utilities Board and sixty four hours
were additional hours training staff on how to use the computer
model.
Mayor Castleberry asked if this was additional work requested
beyond the original contract or did the consultant error in his
estimation of the time required on the project.
Martin replied that fifty three hours were due to additional
time requested by the Public Utilities Board and sixty four
hours were required to help staff utilize and learn how to
utilize the computer modeling so that in future years, when the
rate design was done, staff would be able to utilize the
computer modeling and develop the components needed to use the
system.
Council Member Trent stated that what the consultant had done
differently added up to the additional hours.
Martin replied yes that the sixty four hours was additional
work that had been done in the past.
Council Member Trent asked if this was a new concept which had
been implemented.
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City of Denton City Council Minutes
September 3, 1991
Page 14
Martin replied that it Was not entirely a new concept but it
did go into much more detail than had been done in the past.
The following ordinance was considered:
NO. 91-136
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A
CONTRACT BETWEEN THE CITY OF DENTON AND J. ROBERT
MCLAIN RELATING TO CONSULTING SERVICES; AUTHORIZING
THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN
EFFECTIVE DATE.
Hopkins motioned, Chew seconded to adopt the ordinance. On
roll vote, Trent "nay," Alexander "aye," Hopkins "aye," Smith
"aye," Chew "aye," Perry "aye," and Mayor Castleberry "nay."
Motion carried with a 5-2 vote.
C. The Council considered adoption of an ordinance
retaining the lawfirm of Lloyd, Goselink, Fowler, Blevins and
Mathews. P.C. to represent the City of Denton in connection
with the City's contract for water service to the Upper Trinity
Regional Water District. (The Public Utilities Board
recommended approval.)
Bob Nelson, Executive Director for Utilities, stated that
several months ago the City had entered into a contract with
the firm to review the contracts of joint participation with
the Upper Trinity Regional Water District for the Ray Roberts
Treatment Plant. After reviewing the issues raised by the firm
the Council expressed concern about entering into a joint
ownership agreement with the UTRWD and directed staff to
discontinue ~oint ownership contract negotiations but determine
from the UTRWD if they would be interested in a wholesale
contract. Staff visited with the General Manager, Officers and
some other members of the UTRWD, and they had generally
expressed that they would prefer a joint ownership approach,
but would consider a wholesale contract if a joint ownership
contract was not possible. The City had wholesale water
contracts with other entities and the staff had already
modified those contracts in draft form in the process of
developing the joint ownership contract. Staff felt it was
important to seek outside legal assistance on such a wholesale
contract if the Council authorized the staff to pursue
negotiations for the wholesale concept.
City of Denton City Council Minutes
September 3, 1991
Page 15
Mayor Castleberry asked if the firm would only be looking at a
wholesale contract.
Nelson replied correct. The contract had a basic form but
would need to be refined.
City Attorney Drayovitch stated that to bring in the final
wholesale contract would not cost the entire amount. The
amount would include negotiations and funds for a possible
reexamination of a joint ownership if necessary.
Mayor Pro Tem Hopkins felt it was very important for staff to
work with the outside attorney develop the contract for the
City as they would draft it in terms which would be best for
the City.
The following ordinance was considered:
NO. 91-137
AN ORDINANCE OF THE CITY OF DENTON RETAINING THE
LAWFIRM OF LLOYD, GOSELINKo FOWLER, BLEVINS AND
MATHEWS, P.C. TO REPRESENT THE CITY OF DENTON IN
CONNECTION WITH THE CITY'S CONTRACT FOR WATER SERVICE
TO THE UPPER TRINITY REGIONAL WATER DISTRICT: AND
PROVIDING AN EFFECTIVE DATE.Hopkins motioned, Chew
seconded to adopt the ordinance.
Hopkins motioned, Chew seconded to adopt the ordinance.
Council Member Alexander felt that there had been a consensus
reached by the Council that they would not actively pursue the
idea of a joint ownership arrangement but would pursue the
wholesale arrangement. The Council did not say that it would
never look at the limited partnership arrangement. He had
concerns about the original proposal as it was initially
presented and had not changed his mind on those points. He did
feel it was important, in the spirit of regionalism and
cooperation, that the City at least explore whether or not the
Upper Trinity was willing to deal with the City on terms which
the City felt were acceptable.
Council Member Trent felt that it was not necessary to have
lawyers represent the City in its initial discussions with the
Upper Trinity to find out if they were interested in any other
type of arrangement.
Council Member Alexander felt that the key point was the need
to discuss the issue again even before discussion with the
upper Trinity in order to define the 'minimal points the City
would require in a contract.
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City of Denton City Council Minutes
September 3, 1991
Page 16
City Manager Harrell stated at a previous work session, four
alternatives had been presented to Council - (1) the joint
ownership concept, (2) a limited joint ownership which would
take out the most objectionable portions of the joint ownership
contract, (3) wholesale contract and (4) do nothing. Tentative
decisions made by Council at that meeting were to not proceed
any further with the joint ownership concept. There was some
willingness to look at the wholesale contract concept but to
not go '~ back to the Austin attorney until staff had checked
with the Upper Trinity to determine that they would be
interested in a wholesale arrangement. Staff had done that
checking and the Upper Trinity was somewhat receptive. Staff
now required authority to return to the Austin attorney to draw
up the contract. Once that contract was presented, it did not
preclude the Council to reconsider its earlier decision. If
the Council wanted to reconsider the limited joint ownership
and wanted to proceed with that option, there was not too much
more legal work which needed to be done.
City Attorney Drayovitch stated that even if the Council
returned to a consideration of the limited joint ownership
contract, the joint ownership contract included a reference to
a separate wholesale contract which would be needed in any
decision by the Council.
Council Member Smith felt that in Council discussion a regional
water plan outlook had been maintained. The Council did not
feel it should go its own way, it was trying to work out a
regional plan.
Council Member Chew stated that the only option the Council
ruled out was the joint ownership arrangement.
Council Member Perry stated that the Council had also discussed
the possibility of discussing the options with representatives
from the Upper Trinity when it was appropriate.
On roll vote, Trent "aye," Alexander
Smith "aye," Chew "aye," Perry "aye,"
"aye." Motion carried unanimously.
"aye," Hopkins "aye,"
and Mayor Castleberry
Council Member Trent was not present following a short recess.
8. Resolutions
A. The Council considered approval of
to adopting Cable Television Public Access Rules.
Television Advisory Board recommended approval.)
a resolution
(The Cable
City of Denton City Council Minutes
September 3, 1991
Page 17
Bill Angelo, Director of Community Services, stated that the
Cable TV Board had been 'working Sammons Communications to
define public access rules. This resolution would maintain
local origination programming.
The following resolution was considered:
NO. R91-055
A RESOLUTION OF THE CITY OF DENTON, TEXAS ADOPTING
CABLE TELEVISION PUBLIC ACCESS RULES AND DECLARING AN
EFFECTIVE DATE.
Alexander motioned, Smith seconded to approve the resolution.
On roll vote, Alexander "aye," Hopkins "aye," Smith "aye," Chew
"aye," Perry "aye," and Mayor Castleberry "aye." Motion
carried unanimously.
Council Member Trent returned to the meeting.
B. The Council considered approval of a resolution
leasing parking spaces located on the Williams Trade Square.
The following resolution was considered:
NO. R91-056
A RESOLUTION LEASING PARKING SPACES LOCATED ON THE
WILLIAMS TRADE SQUARE AND DECLARING AN EFFECTIVE DATE.
Hopkins motioned, Chew seconded to approve the resolution. On
roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Smith
"aye," Chew "aye," Perry "aye," and Mayor Castleberry "aye."
Motion carried unanimously.
C. The Council considered authorizing the Mayor to
execute an agreement between the City of Denton and the cities
of Bridgeport, Bryan, Denton, Garland and Greenville, Texas for
the sale and purchase of wholesale electric service. (The
Public Utilities Board recommended approval.)
Bob Nelson, Executive Director for Utilities, stated that this
was a contract for selling wholesale capacity -to a nearby
city. Other cities Denton had contract with included College
Station (100,000-110,000KW), Farmersville (5000 KW), Bowie
(8,000-9,000KW) and now Bridgeport (9,000KW). The contract
included a provision where Denton would build part of the
substation and would receive an additional $1.25 for the
substation. The rate had been designed to sell power and
energy to Bridgeport at a price equal to the average cost of.
· power and' energy of the four Texas Municipal Power Agency
cities. The contract provided Bridgeport the option to become
a member of the Texas Municipal Power Agency or another joint
action entity created by one or more of the Texas Municipal
Power Agency cities.
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City of Denton City Council Minutes
September 3, 1991
Page 18
The following resolution was considered:
NO. R91-057
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN
AGREEMENT BETWEEN THE CITY OF DENTON AND THE CITIES OF
BRIDGEPORT, BRYAN, DENTON, GARLAND AND GREENVILLE,
TEXAS FOR THE SALE AND PURCHASE OF WHOLESALE ELECTRIC
SERVICE; AND PROVIDING AN EFFECTIVE DATE.
Perry motioned, Hopkins seconded to approve the resolution. On
roll vote, Trent "aye." Alexander "aye," Hopkins "aye," Smith
"aye," Chew "aye," Perry "aye," an4 Mayor Castleberry "aye."
Motion carried unanimously.
D. The Council considered approval of a resolution
authorizing the Mayor to execute an agreement between the Texas
Municipal Power Agency and the cities of Denton, Byran, Garland
and Greenville. (The Public Utilities Board recommended
approval.)
Bob Nelson, Executive Director for Utilities, stated that the
agreement would allow for distribution of revenues collected
.for the sale of power and energy to Farmersville. To date,
TMPA had been billing Farmersville without an administration
charge. The agreement would make TMPA the administrator for
the billing and to pay TMPA a $300 monthly fee. It also
provided the method for distribution of revenues among the four
cities and the method used to amortize the construction cost
over a five year period.
The following resolution was considered:
NO. R91-058
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN
AGREEMENT BETWEEN THE TEXAS MUNICIPAL POWER AGENCY AND
THE CITIES OF DENTON, BRYAN, GARLAND AND GREENVILLE;
AND PROVIDING AN EFFECTIVE DATE.
Alexander motioned, Hopkins seconded to approve the
resolution. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
Miscellaneous matters from the City Manager.
ao
The Council considered and discussed possible
road projects for the County bond issue and gave
staff direction.
City of Denton City Council Minutes
September 3. 1991
Page 19
Rick Svehla. Deputy City Manager. stated that the County was
considering holding a bond election for road improvements.
Commissioners Hill and Cole had requested the City supply them
with projects which the City thought would benefit Denton and
also the County. A tentative list had been sent to the County
with the understanding that the Council needed to finalize the
list. The list included roads which were not in the City or if
they were in the City. were on the outer extremes.
After discussion. Council consensus was that the list presented
was acceptable with the inclusion of Highway 2499. That list
included: (1) Mayhill Road - Colorado to Highway 380; (2) Jim
Crystal Road - Masch Branch to 1-35; (3) Hickory Creek Road -
Teasley to F.M. 1380; (4) Ryan Road - F.M. 1830 to Teasley; (5)
Fer£is and Hartlee Field Roads - Kings Row to Sherman Drive;
(6) Underwood Road - Airport Road to F.M. 2449; (7) Robinson
Road - Teasley Lane to State School Road; (8) Country Club Road
- U.S. 377 to F.M. 1830.
10. There was no official- action on Executive Session
items discussed during the Work Session Executive Session.
11. New Business
The following item of New Business was suggested by Council
Members for future agenda items:
A. Council Member Trent asked for a report on recent
security problems at the Municipal Airport.
12. The Council did not meet in Executive Session during
the Regular Session.
Following the conclusion of the Regular Session, the Council
reconvened in the Civil Defense Room.
Item ~4 from the Work Session was considered.
4. The Council received a presentation, held a discussion
and gave staff tentative direction regarding proposed 1991-92
solid waste rate change recommendations and related issues.
Bill Angelo, Director of Community Services. stated that there
were two issues which remained unresolved relative to the solid
waste budget. One was the proposed rate increase in the
landfill rates for outside users and the second was the
Citywide curbside recycling program.
Council Member Perry asked who were the outside users of the
landfill.
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344
City of Denton City Council Minutes
September 3, 1991
Page 20
Angelo replied TWU, UNT and Texas Waste Management were
examples of outside users of the landfill.
Perry motioned, Chew seconded to proceed with the proposed rate
increase. On roll vote, Trent "aye," Alexander "aye," Hopkins
"aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
Angelo stated that there was a concern regarding expanding the
recycling program. The degree of participation in the current
program was good and the amount of waste stream reduction in
that particular area was better than the national average for
similar communities. Over the course of the last several
months there had been changes in technology and legislation
which caused concern for expansion of the program. Expansion
of the curbside~ recycling would require a rate increase of
$1.20 per month per customer. This option would have a volume
reduction of 2.7% at the landfill and extend the landfill life
by 1.5 months. Other options were separation facility which
would handle residential trash only. This would have a volume
reduction of 10.8% and extend the landfill life by 6.5 months.
Residential and commercial separation facility would have a 40%
reduction and add two years of life to the landfill. Refuse
derived fuel would have a 85% reduction and add 4.2 years of
life to the landfill. There was a concern about what to do
with the current program. Whether to continue the program at
the same location, move the location or discontinue the program.
Mayor Pro Tem Hopkins felt that the program should not be
increased at the present time. If the program were to
continue, she felt it should be in a different section of the
City if it would not be too expensive to change locations.
Council Member Smith pointed out that moving the location would
require the expense of educating the neighborhoods about the
program. She felt that the Council would not want to send a
false signal by stopping the program.
Council Member Alexander pointed out the new legislation which
was passed which would require cities to reduce waste by 40% by
1994. It might be wise to establish a task force to look at
alternatives.
Nelson asked if the Council could wait until t~e exclusive
commercial service had started and then move on such a task
force.
Smith motioned, Alexander seconded to continue with the current
program until the Utility Department felt it was important to
begin a task force to study the alternatives. On roll vote,
Trent "aye," Alexander "aye," Hopkins "nay," Smith "aye," Chew
"nay," Perry "aye," and Mayor Castleberry "aye." Motion
carried with a 5-2 vote.
City of Denton City Council Minutes
September 3, 1991
Page 21
5. The Council received a report, held a discussion and
gave staff tentative direction regarding the 1991-92
water/wastewater rate study and related issues.
Howard Martin, Director of Environmental Operations and
Financial Administration, stated that there were several issues
still outstanding for the water/wastewater budget which staff
needed Council direction.
The rate study conducted this year indicated an 11.77% increase
was needed across the board in the water area with a five block
rate increase. The Public Utilities Board recommended a 10%
increase which would keep the same block increase. Martin
presented options to reduce the rate further. Those included
(1) shifting the economic development plan lines from current
revenue to bond funds, (2) increasing debt interest (13.41%
rate increase), eliminating a proposed supervisory position at
the water treatment plant (13.09% rate increase), (3) reduce
the painting of the water tower by establishing a fund of
$100,000 this year and $100,000 next year for the project
(12.20% rate increase), (4) postponing the demolition of two
wells (11.40% rate increase), (5) reducing miscellaneous
waterline replacement from $311,000 to $100,000 (10.51% rate
increase), (6) reducing waterlines street program from $216,000
to $55,000 (10.03% rate increase, (7) reducing the repayment of
the loan to the Electric Department from $500,000 to $285,000
(7.49% rate increase) and (8) eliminating the repayment of the
loan to the Electric Department (5.59% rate increase).
Council held a lengthy discussion regarding these options and
the effects on the community.
Trent motioned, Castleberry seconded to approve the Public
Utilities Board recommendation of a rate increase of 10.03%
which included options %1-~6 as presented above. On roll vote,
Trent "aye," Alexander "Kay," Hopkins "nay," Smith "nay," Chew
"nay," Perry "nay," and Mayor Castleberry "aye." Motion failed
with a 2-5 vote.
Chew motioned, Hopkins seconded to hold the water rate increase
to 11.40% which represented options ~1 - 94 of the options
presented above. On roll vote, Trent "nay," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "nay." Motion carried with a 5-2 vote.
Martin stated that wastewater issues which were still
outstanding were the level of rate increase and the methodology
for calculating the wastewater volume charge.
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City of Denton City Council Minutes
September 3, 1991
Page 22
The Public Utilities Board recommended a 15% rate increase, but
had an option' of an 11.5% rate increase provided there was no
change in the methodology of determining the wastewater
volumes. The Public Utilities Board was recommending using a
four month average and discarding the highest month. The
present means of calculating used an average of the three
winter months.
Trent motioned, Chew seconded to continue with the current
methodology of using three months to establish the wastewater
volume charge. On roll vote, Trent "aye," Alexander "nay,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "nay," and Mayor
Castleberry "aye." Motion carried with a 5-2 vote.
Following the conclusion of the Work Session items, Council
considered the following item:
1. The Council held a discussion and gave staff direction
regarding budget issues for the 1991-92 fiscal year.
City Manager Harrell stated that the last item of budget
deliberations was the staff's pledge to return to the decisions
thus far made regarding the General Fund allocations. Those
decisions included:
Shortfall due to property value
Use of additional General Fund reserve
Eliminate General Fund Demolition of Substandard
Structures
Eliminate increase in Pool Fee Revenue
Additional funding of SPAN
Additional Tax Roll Supplement
Decrease in Insurance cost
Increase in Sales Tax Revenue
Flow Hospital Reserve
Additional 1/4~ to fund Debt Service for Building Improvement bonds
$(310.000)
66,848
(243,152)
15,000
(228,152)
(8,000)
(236 152)
(10,000)
(246 152)
140,000
(106 152)
84,000
(22 152)
48,152
26 000
22,000
48 000
(48,000)
City of Denton City Council Minutes
September 3, 1991
Page 23
Council Member Alexander asked for a dollar amount needed to
replace the Parks dollars if the Council decided to forgive the
Denton Youth Football's debt. He would only do so by working
with the tax rate to get it high enough to generate that amount
of revenue.
City Manager Harrell replied that if it were simply applied to
administrative charges that were made to outside youth sports
associations, $10,500 would be needed. That did not include
Boy's Basketball which was a City operated program nor any other
administrative fees charged for other types of activities.
Betty McKean, Executive Director f.or Economic Development and
Municipal Services, stated that the amount would be closer to
$16,000.
Mayor Castleberry asked what impact would this decision have on
other programs.
City Manager Harrell replied that if only the outside youth
groups were used, it would be approximately $10,500 to $16,000.
The policy would exclude only those programs. The
administrative fee would still be charged for boy's basketball
and for anyone else who signed up for a City program. If the
deletion of the fee extended further, more money would be needed
to make up that revenue.
Council Member Smith stated that to be fair, those programs
which had already paid their fees would have to be refunded that
money.
City Manager Harrell stated that then the problem would be
greater as more money would be needed. And if other
recreational programs were included the amount would be
compounded.
Mayor Pro Tem Hopkins stated that she was not in favor of
forgiving the amount due from the previous year.
McKean stated that following the Council's Regular Session, she
had met with Mo Joiner to try and develop options for repayment
of the Football fees. A problem she saw was how long to defer
the fees and could the City legally defer the fees. The
Association wanted to be forgiven what was in arrears as there
now was different leadership.
Mayor Pro Tem Hopkins asked if the Parks Board had considered
the item.
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City of Denton City Council Minutes
September 3, 1991
Page 24
McKean replied that it had not been to the Parks Board.
Mayor Pro Tem Hopkins asked how the Parks Board felt about
relieving, deferring, not charging the fee.
McKean replied that the issue had come up last week when staff
discovered the football season was about to start and the
Association still had not paid last year's fees.
Council Member Chew felt the issue should be referred back to
the Parks Board for their input.
Mayor Castleberry asked if the City could legally allow the
Association to begin their season with the understanding that
they would work out a plan to pay what was in arrears.
Council Member Smith stated that the position in correspondence
to the Association was that if they did not pay the past due
amount, they would not be able to start their new season.
City Attorney Drayovitch stated that she felt the Council neede~
to be concerned that groups could be treated differently as long
as there was a rational basis. But if there were no rational
basis, the City would be leaving itself open for others to not
pay the same amount. In regards to the question if it' were
legal to defer payment, she did not see that it would be illegal.
McKean stated that last year the Association advertised their
fee at $35 and refused to pay the administrative fee to the
City. This year the advertised fee was $40 and did not say as
to whether $5 was for the administrative fee. Joiner had
informed her that the extra $5 was not for the administrative
fee and that they had no intention to pay the fee. The extra $5
was an inflationary fee.
Mayor Castleberry stated that he felt the Council was indicating
that the item should be referred back to the Parks Board or to
McKean to work out prior payment and payment for next year.
McKean pointed out that the season was scheduled to begin
September 14, 1991.
Mayor Castleberry stated that he felt the Association could
begin their season while the payment details were worked out.
Council Member Smith felt that the Council would be undercutting
staff by allowing the Association to begin their season as all
the correspondence by the staff had been that the new season
could not:begin until the past due amount had been paid.
Mayor Castleberry stated that the children would be penalized if
the new season was not allowed to begin.
City of Denton City Council Minutes
September 3, 1991
Page 25
349
Council Member smith stated that it was not a good signal to the
children to change the rules for the Association.
Council Member Perry stated that he would like to know what the
Association's concession stand collected and what the
Association did with that money.
Chew motioned, Trent seconded to defer the issue back to the
Parks Board and to allow the Association to begin its new season
while the details were being worked out. On roll vote, Trent
"aye," Alexander "nay," Hopkins "aye," Smith "nay," Chew "aye,"
Perry "nay and Mayor Castleberry "aye." Motion carried with a
4-3 vote.
Perry motioned, Hopkins seconded to direct staff to prepare an
ordinance setting the tax rate at $.6851 per $100 valuation. On
roll vote, Trent "nay," Alexander "aye," Hopkins "aye," Smith
"aye," Chew "aye," Perry "aye," and Mayor Castleberry "aye."
Motion carried with a 6-1 vote.
City Manager Harrell presented a review of the Mercer study and
the implementation procedures. Those employees below the
minimum would be brought up to minimum effective January 1,
1992. In addition, those employees who were eligible for step
increases between October 1 and January 1 would continue to
receive those increases. On January 1, 1992 anyone who had
received less than a 3% salary adjustment because of either
being brought up to minimum or because they received a step
increase would receive the difference up to 3%.
With no further business, the meeting was adjourned at 11:45 p.m.
C~Y SF~ETARY
CITY OF~ DENTON. TEXAS
CITY OF DENTON, TEXAS/
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3441C