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Minutes September 17, 1991350 CITY OF DENTON CITY COUNCIL MINUTES SEPTEMBER 17, 1991 The 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, Perry, Smith and Trent. Absent: Council Member Chew 1. The Council convened into the Executive Session to discuss legal matters (considered the claim of Mr. and Mrs. Gamble, considered the claim of Mr. and Mrs. Harp and considered action in re: Flow), real estate, and personnel/board appointments. Council Member Chew joined the meeting. Mayor Pro Tem Hopkins left the meeting during the discussion of in re: Flow. 2. The Council received a report and held a discussion regarding legislation passed by the 72nd Legislature that might have an impact on the Municipal Court procedurally, fiscally or both. Sandra White, Municipal Judge, stated that there were many items passed by the Legislature which potentially affected Municipal Court. One bill which she wanted to spend some time on was Senate Bill 883. This bill amended Article 14.06 of the Texas Code of Criminal Procedures and allowed a peace officer who was charging a person who was committing a Class C Misdemeanor under the Penal Code would be able to issue a ticket rather than putting them in jail. The bill specifically excluded public intoxication offenses. She felt the bill was significant as the Legislature and Courts were consistently telling Municipal Courts that Class C Misdemeanors did not carry a penalty of jail time and did not want the Courts to put those offenders in jail. Under the Penal Code, if the officer viewed the offense, he did not have to take the person to jail. He could issue a ticket. That kind of procedure was known as "field release." She felt the City should utilize SB$33 as 'much as possible to avoid incarceration and reduce the amount of paper work the Court and Police Department would be required to do. White reviewed a flow chart of jail cases and non- jail cases including a comparison of amounts of fines collected in jail and non-jail cases. City Manager Harrell suggested that the Judge work with Chief Jez on how best to implement the new legislation. On the surface the procedure looked good, but input from the chief would help determine if there were any adverse implications to the procedure. 351 City of Denton City Council Minutes September 17, 1991 Page 2 Another change allowed cities under 850,000 population to add an additional cost up to $5.00 for parking tickets. If a city added this fee, the funds collected had to be used for school crossing guard programs and if a city did not have a school crossing program, the funds needed to be used for health, drug education of children. She needed direction from Council whether to implement that additional fee. City Manager Harrell stated that the administrative charge for the school crossing guards was the responsibility of the School District. In the Major Budget Issues, there were items to increase parking fines for people who did not pay promptly. White stated that she needed to know how the Council wanted to proceed with this new legislation. Mayor Castleberry suggested referring the issues to the Council Subcommittee and have them make recommendations to the Council. Mayor Pro Tem Hopkins felt that the City Manager, Finance Director, Chief of Police and the Judge needed to provide input into the issues. consensus of the Council was to have staff work on the issues and bring back recommendations at the second meeting in October. The Council then convened into the Regular Session at 7:00 p.m. in the Council Chambers. Present: Mayor Castleberry; Mayor Pro Tem Hopkins; Council Members Alexander, Perry, Smith and Trent. Absent: Council Member Chew 1. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance. Council Member Chew joined the meeting. Item #3 was considered. 3. Presentation of Award to Mr. Trent Young Bob Nelson, Executive Director of Utilities, stated that Mr. Young, a former City employee, had been working on a job site with a Lone Star Gas employee. The Lone Star Gas employee had slumped over in his work area. Mr. Young found the employee and began giving him CPR and had others call for the paramedics. Because of his quick 352 City of Denton City Council Minutes September 17, 1991 Page 3 actions, the employee was revived. Mayor Castleberry presented Mr. Young with a Resolution of Appreciation and Nelson presented him with a plaque of appreciation. Mayor Castleberry presented proclamations for American Business Women's Day and Edward Hackford Day. The Council returned to the regular agenda order. 2. The Council considered approval of the minutes of the Regular Session of August 6, 1991. Perry motioned, Hopkins seconded to approve the minutes as presented. Motion carried unanimously. 4. Citizen Reports A. The Council received a citizen report from Jesse Coffey regarding the 1991-92 budget. Mr. Coffey stated that on August 27, 1991 the Council held a public hearing regarding the budget. He was present for that public hearing and had asked several questions concerning the budget. City Manager Harrell corresponded with him on September 5, 1991 and answered two of the questions proposed at that time. He wrote back to the City Manager on September 12, 1991 and asked the questions again. As he walked into the meeting this evening, he was given an envelope with the Manager's reply. His letter was dated the 12th, and delivered the 12th or 13th. The Manager replied as quickly as he could to his questions. Coffey stated that he had not had time to examine the correspondence as fully as he liked and asked if he could ask the questions and have the Manager reply. Mayor Castleberry replied that it could be done as long as it remained in the 5 minute time frame allowed for citizen reports. Coffey stated that he understood that the City had $50 million in cash and reserves uncommitted. Was that correct and if correct, why was it necessary to have 40% of the City's annual budget in cash reserves. Mayor castleberry replied that it was answered in the Manager's letter. City Manager Harrell stated that the $50 million Coffey referred to was the retained earnings within the utility fund. As of August 31, 1991, there was approximately $27.4 million in ~aeh and investments which currently could be deemed to be undesignated. One million dollars was encumbered for the cost of contracts and goods or services. The remaining portion of the retained earnings 353 City of Denton City Council Minutes September 17, 1991 Page 4 within the Utility fund was earmarked for long term debt payments, capital projects or restricted bond covenant indentures pledged to bond holders when bonds were sold. A good portion of the retained earnings were needed for cash flow purposes within the utility system. The system was running approximately 45-60 days behind time from the point of billing for utility revenue until that revenue was received. A portion of those funds were used for that basis. Coffey asked the Manager to elaborate on his sentence "this amount is set aside when the City enters into contracts to make sure those dollars are not spent on something else." Mayor Castleberry stated that the Manager could answer the question but that then Mr. Coffey's five minutes had elapsed. City Manager Harrell replied that that was in reference to the amount of the $1 million of the $27.4 that had to be set aside as encumbered amounts when the city entered into contracts to make sure. those dollars were available. Once a contract had been entered into even though that was in the fund balance or retained earnings within the Utility Department, that money was set.aside and was not available for expenditures. Coffey stated then that the City had $26.4 million in cash and investments. Was that in addition to or did it include the $47 million cash reserve fund. City Manager Harrell replied that it was inclusive of that money. Coffey replied that the $47 million included the $26 million. City Manager Harrell replied correct. Coffey stated that the Manager had mentioned long term debt payments, capital projects, commitments related to unperformed contracts and restricted bond indenture. Those were not in the proposed Annual Program of Services. The $50 million was over and above the current income. Mayor Castleberry stated that Mr. Coffey's five minutes were over and that the Council did follow that rule. Council Member Trent stated that he would like to hear the answer to the question. Mayor Castleberry stated that he felt the question had been answered. He asked Coffey if his question had been answered. Coffey replied that it answered his first question. He had six 354 City of Denton City Council Minutes September 17, 1991 Page 5 more he wanted to ask. Mayor Castleberry stated that the Council did follow the five minute rule. Coffey asked if it would be possible to come back at a later date before the final budget was approved in order to get these items on the record for the general public. Mayor Castleberry stated that tonight would probably conclude the Council's budget procedure. Coffey was welcome to return at any time and follow the usual policy for a citizen report. Council Member Trent asked Coffey if he felt that there were funds in the budget that had not been plainly presented as being available. Coffey replied that that was correct. He was bothered that throughout the Program for Annual Services as presented to the City Council, there was talk about hard times, employee raises to meet inflationary times. There was no inflation in Denton. The economy in Denton had been flat for five years. In that period of.time, there had been a $9 million increase in personnel salaries. With $50 million in the bank, he did not understand why a tax increase was needed. Mayor Castleberry stated that in order to continue the discussion, there would have to be a consensus of the Council. Hearing none, he thanked Mr. Coffey for his remarks. B. The Council received a citizen report from Mark Fleege regarding a city initiative for a zoning case. Mr. Fleege stated that he was representing the Township II-Hopkins Hills Homeowners Association requesting the City Council,s assistance in initiating a zoning change. The Homeowners Association requested a clarification and updating of existing zoning in the Township II area. The updating needed to reflect the existing uses. The Homeowners Association requested re-zoning of the last part of the undeveloped San Jaointo Plaza to reflect the retail/office use that was currently in place. The PD-6 designation now in place posed problems that could lead to a repeat of the Pep Boys controversy. Mayor Pro Tem Hopkins asked if this was related to a park issue. Fleege replied no that it was the undeveloped area between Pep Boys and the San Jacinto Plaza. Mayor Pro Tem Hopkins asked if the homeowners were trying to take __ 355 City of Denton City Council Minutes September 17, 1991 Page 6 the property out of the retail use. Fleege replied no that they realized that it would be developed but under PD-6 the category was too broad. Mayor Pro Tem Hopkins asked about the property owners of the site. Fleege replied that he understood that as the zoning process took place, the property owner would have a chance to respond. They were asking the City to begin the process. As a neighborhood, they did not have the funds to approach the City to begin the rezoning. City Manager Harrell stated that the item had been discussed bythe Planning and Zoning Commission last week and they voted to initiate a city case regarding the item. Fleege stated that it was part of an educational process to alert the Council to the neighborhood's feelings regarding the issue. They would like to see this done as quickly as possible. 4A. The Council considered accepting a recommendation from the Parks and Recreation Board regarding the administrative fee for parks programs and regarding the request by the Denton Youth Football Association for waiver and/or delayed payment of fees. city Manager Harrell stated that per Council's direction, this issue had been refereed to the Parks and Recreation Board. That Board had met the previous evening and the minutes of that meeting were available for Council review. Betty McKean, Executive Director for Economic Development and Municipal Services, stated that the Board had spent several hours on debate and hearing testimony regarding the issue. One of the issues had been from the Denton Youth Football Association which had asked to be relieved of an outstanding debt on their administrative fee for the past season. The estimate of the amount due was $1300. In addition, a concern had been raised by some members of the Council that if that amount of money were forgiven, that consistency of treatment for the other athletic associations was necessary. If the Council were to waive the youth football fees, the amount was approximately $1300. Other self-managed youth programs and the amount of their fees included soccer with two seasons ($700, $3,360); Boy's Baseball ($2,300); Little League ($2,500); and Girl's Softball ($875). The subtotal was $11,035. The other issue was whether to consider adult programs and other kinds of programs. A larger issue before the Council was the necessity or the appropriateness of having the administrative fee at all. Options to consider would include (1) continue under the current philosophy with the administrative fee; (2) discontinue the administrative fee for youth athletic associations only, reducing 356 City of Denton City Council Minutes September 17, 1991 Page 7 revenue by $12,000 and possibly increasing the tax rate by .000627 or an equivalent amount of budget cuts; (3) discontinue the administrative fee for all self-managed associations, reducing revenue by $14,800 and increasing the tax rate by .000773 or an equivalent amount of budget cuts; and (4) discontinue the administrative fee for all department sponsored activities, reducing the revenue by $30,000 and increasing the tax rate by .001568 or an equivalent amount of budget cuts. Dalton Gregory, Chair-Parks and Recreation Board, stated that on November 14, 1988, the Parks Board unanimously voted to oppose the assessment of an additional $5 administrative fee to athletic participants. On September 16, 1991, the Parks Board again unanimously voted to drop the $5 administrative fee for self- managed youth athletic participants. They were opposed to the fee for several reasons. The fee had increased the cost to participants to the youth and their families. These costs had made it difficult for some families to participate in the programs. The fee had not resulted in better or improved services to the participants. During the same time that the fees were first assessed in 1988, the City was cutting back on its financial support to the youth athletic groups by dropping its payment for officiating. The fee had created a hardship for the many volunteers who helped operate the self-managed sports programs. They had to raise more scholarship dollars per child and had to provide more scholarships due to the overall higher cost to each participant. It was for those reasons, the Parks Board recommended that the Council drop the administrative fee to all of the self- managed youth programs. On a larger scale, he wanted to recommend that the Council and staff join with the Parks Board in rethinking the philosophy of trying to make parks and recreation (leisure services) a source for generating revenue. Council Member Trent stated that at the Parks Board meeting, one.of the items decided was to eliminate the fees but not do it through a tax increase. A motion was made to do it but to find the revenue in other ways. A list was presented to the Parks Board containing possible cuts which had been rejected by the Board. The Board had asked for a second list. Had that been received yet. Gregory replied that the Board had not received the list yet and did not expect to receive it so soon. He stated that the Board had been asked by staff to suggest recommendations to recoup the $12,000 and the Board was unable to come to any consensus. They were unable to come to a consensus that a tax increase would be appropriate. If a tax increase were to happen to recoup the $12,000, it would cost the taxpayer of a $100,000 only $.63. The Board was not able to come to a consensus regarding the best way to recoup the money and were uncomfortable with the list that was given. He personally was uncomfortable with the idea of the Parks 357 City of Denton City council,Minutes, September 17, 1991 Page 8 and Recreation Department having to make up the $12,000. Council Member Smith stated that the Board did not ask that the fees for the adult self-managed programs be dropped. Gregory replied that that was correct. They did not directly address the issue of adult recreation programs. They responded to two questions regarding whether the past due fees should be collected and whether the fee should be continued. City Manager Harrell asked for the recommendation from the Board regarding the past due fees. Gregory replied that the Board recommended that the Association be requested to pay the past due fees. Council Member Perry asked if the Board considered any places at all in the Parks and Recreation budget where it would recommend dropping any programs or any part of the budget to offset the $12,000. He felt Gregory was indicating that the Board did not want to drop any of the programs and would like to expand programs. Gregory replied that that was correct. They did not want to see one program cut so that another program could survive. Council Member Alexander replied that the Council was also proponents to expand services but the budget had to be balanced. He felt that the citizens had indicated that they wanted the City to provide high quality services and when necessary were willing to pay for those through the taxes required to make that possible. He pointed out that while the $5 administrative fee was a significant amount of money, it was a small portion of the amount of money that the City helped to provide for making parks and recreation services available. It was a small portion of the fee that was required for youth to sign up for the programs. Mayor Castleberry stated that the Council had asked Mo Joiner to present Council with a financial statement. He asked Joiner if he wished to make any additional comments regarding the financial statement he had presented Council. Joiner stated that the statement had been given to the City and a copy should be in the Council's packets. Mayor Pro Tem Hopkins felt that the Parks Board had made a fair recommendation and that Boy's Football must pay the fees due that all of the other organizations had paid. She would look to them to make a payment schedule with Ms. McKean. They needed to pay the fees as all of the other organizations had paid the fee and it was the only fair thing to do. 358 City of Denton City Council Minutes September 17, 1991 Page 9 Hopkins motioned, Chew seconded to require Denton Youth Football to pay the fees owed for the past year and that there no longer be $5 fees for any other youth sports beginning with the current year. Council Member Perry stated that he could not vote for that motion as he felt there were two separate issues and would require two separate motions. Hopkins motioned, Chew seconded to require Denton Youth Football to pay the past due fees which could be paid through a payment schedule throughout the year. On roll vote, Trent "aye", Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. Hopkins motioned, Chew seconded to eliminate the $5 administrative feel for self-managed youth sports programs. On roll vote, Trent "aye", Alexander "aye", Hopkins "aye", Smith "nay", Chew "aye", Perry "nay", and Mayor Castleberry "aye". Motion carried with a 5- 2 vote. Trent motioned, Hopkins seconded to direct staff to find a place from which to take the money and not increase taxes. City Attorney Drayovitch stated that this item was related to a budget item later in the agenda and perhaps the Council wished to wait until that time to make such a motion. Council Member Trent withdrew his motion and Hopkins withdrew her second. 5. Public Hearings A. The Council held a public hearing and considered adoption of an ordinance approving the rezoning of a 25.58 acre tract of land from Planned Development No. 110 to Conditioned Light Industrial District on properties located on the south side of US Highway 77, north and south of State Highway Loop 288 (under construction). Z-91-013 (The Planning and Zoning Commission recommended approval with conditions.) Karen Feshari, Urban Planner, stated that there two tracts of land located on the south side of U.S. Highway 77, north and south of State Highway Loop 288 (under construction). The property was located in the Northern Urban Center. Loop 288 was scheduled to be completed in 1992, access on Highway 77 frontage would be limited to two points, one on each tract, sidewalks would be required on both Highway 77 and Loop 288 frontages as well as any interior public streets, Highway 288 frontage roads would be constructed through the area. If the developer desired access to Loop 288, he would be required to either participate, fund, or build the 359 City of Denton City Council Minutes September 17, 1991 ~ Page 10 frontage roads for Loop 288. A detailed drainage analysis would be required during the platting process to determine the extent of any additional off-site improvements needed. On March 18, 1986, the Council approved the rezoning of the site from the agricultural district to the planned development district for the purpose of a mixed use development consisting of office, commercial, and retail uses. Ordinance No. 86-63, which governed this tract of land, was passed with a number of conditions. The following were of concern: (1) proposed building heights should not exceed five stories, (2) proposed maximum building coverage should not exceed fifty percent of the area of the tract and the maximum coverage of all buildings, drives, and parking areas should not exceed eighty percent of the area of the tract on which they were to be built, (3) the maximum floor area within all buildings should not exceed 1 million square feet, and (4) proposed land uses should be limited to office, hotel, bank, movie theater, gasoline service station, parking lot or garage, medical center or hospital, convenience store, and retail and shopping center uses. Pertaining to condition one, there was no regulation in a light industrial district. However, these parcels fell under the regulations of the Federal Aviation Administration height restrictions. The adjacent Hillcrest Center was recently approved with a maximum height of 20 stories and it was suggested that the restriction to 5 stories on this property be amended to be consistent with the Hillcrest Center. The second condition was placed on the site because there was no regulation in the Zoning Ordinance pertaining to building coverage and floor to area ratios for commercial and retail type uses. The Planning and Zoning Commission recommended that the floor to area ratio be restricted to a 1:1 ratio. The third condition capped the floor areas at i million square feet. In order to encourage a transition between Hillcrest and PD 115, staff suggested that the floor to area ratio be 1:1 which would allow for 1,110,780 square feet. In reference to the allowed uses, the applicant had requested that some of those uses allowed by right be prohibited as a condition in the proposed rezoning. An additional condition pertaining to setbacks should be considered. In order to maintain consistency with the property adjacent to this, staff suggested that the setbacks along Loop 288 be 40 feet and that no parking be allowed in that 40 foot setback area. In general, this rezoning would be in compliance with the policies of the Denton Development Plan if approved with the recommended conditions. Council Member Perry questioned the amount of conditions. Feshari replied that the Planning and Zoning Commission recommended the approval with only three conditions. Staff had incorporated the other conditions associated with the Planned Development. City Manager Harrell indicated that this was a conditioned zoning case as opposed to a planned development. Conditioned zoning had 360 City of Denton City Council Minutes September 17, 1991 Page 11 more recommendations with conditions. There conditions than a planned development but more zoning. would be less in just straight The Mayor opened the public hearing. Dennis Jerkey, representing the Perot Group, stated that the light industrial zoning was appropriate for the land use. Adjacent land uses were compatible and the existing zoning was very limiting. They did not have any problem with the conditions placed by the Planning and Zoning Commission. No one spoke in opposition. The Mayor closed the public hearing. The following ordinance was considered: 91-138 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A CHANGE FROM PLANNED DEVELOPMENT (PD) TO LIGHT INDUSTRIAL-CONDITIONED (LI-C) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR 25.5 ACRES OF LAND LOCATED ON THE SOUTH SIDE OF U.S. HIGHWAY 77; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000 FOR VIOLATIONS THEREOF; AND PROVIDING FOR ANEFFECTIVE DATE. Perry motioned, Chew seconded to adopt the ordinance with the stated conditions. 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 held a public hearing and considered adoption of an ordinance approving a rezoning on .1844 acres of land located at the southeast corner of Austin and Oakland Streets from the "NS" Neighborhood Service District to the "GR" (C) General Retail District (Conditioned). Z-91-014 (The Planning and Zoning Commission recommended approval.) Karen Feshari, Urban Planner, stated that the property was located in a Moderate Activity Center. The building was on the tract of land built approximately 50-60 years ago bythe applicant's father. There was no history in the zoning files establishing when this tract was rezoned to Neighborhood Service. However, it was probable that when the City rezoned by map in 1969, this tract was zoned according to the existing use of the property. The applicant was requesting a rezoning of the tract to allow for a sandwich shop serving beer and wine. This was not an allowed use in the Neighborhood Service District. There was a need for an eating 361 City of Denton City Council Minutes September 17, 1991 Page 12 establishment near TWU and there was reasonable assumption that a significant amount of the traffic would be pedestrian. The additional use would not adversely impact the surrounding neighborhood. The public interest would be served by allowing a small eating establishment in the area. The Board of Adjustments granted a request for a variance to the parking regulations for the site. Specific conditions for the rezoning included allowed uses be in compliance with the table of Permitted Uses and the gross floor area on the site would not exceed 6200 square feet. The Mayor opened the public hearing. Larry Green, speaking for the applicant, need for an eating place in the area. served at a later date but not initially. stated that there was a Beer and wine would be They were requesting a zoning change for a sandwich shop which was not currently allowed in the neighborhood service district. No one spoke in opposition. The Mayor closed the public hearing. Council Member Trent asked if the applicant had any concerns regarding the conditions imposed on the rezoning. Feshari replied that Mr. Kornblatt, property owner, had indicated to her that he had no problems with the conditions. The following ordinance was considered: 91-139 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A CHANGE FROM NEIGHBORHOOD SERVICE (NS) TO GENERAL RETAIL-CONDITIONED (GR-C) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR 0.18 ACRES OF LAND LOCATED ON THE SOUTHEAST CORNER OF AUSTIN AND OAKLAND STREETS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000 FOR VIOLATIONS THEREOF; AND PROVIDING FORANEFFECTIVE DATE. Trent motioned, Alexander seconded to adopt the ordinance with the stated conditions. On roll vote, Trent "aye", Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 6. Consent Agenda Mayor Castleberry consideration. indicated that Item 6.A.4. was pulled from 362 City of Denton City Council Minutes September 17, 1991 Page 13 Mayor Pro Tem Hopkins requested information concerning Items 6.A.1. and 6.A.2. Mayor Pro Tem Hopkins stated that backup information for those two items was confusing as different amounts were shown on the ordinance as opposed to the backup information. The proposed accepted bid was more than the iow bid on the bid sheet for the transformer. Bob Nelson, Executive Director for Utilities, stated that transformers were evaluated for losses over the entire life of the transformer. Those losses included a core loss or a winding loss. Those losses affected the end price for the unit. This was a case where the lower capital price, in the long evaluated price, was not the best bid. Mayor Pro Tem Hopkins asked about the lowboy trailer. invoice in the backup for $161,930 as opposed to indicated in the ordinance. There was an the $46,500 Nelson indicated that currently the City was renting a lowboy to get a transformer to a site. The cost of the lowboy was $100/day and had been rented for 100 days. The invoice was in the backup for a comparison of how much a new lowboy would cost. Council Member Trent asked if the City was currently renting a lowboy why did it have to buy one at this time. Nelson replied that it was very costly to rent the lowboy. Currently they had spent $42,000 to rent a lowboy and this one to buy was $46,500 which could be used again instead of having to pay the rent cost over and over. Hopkins motioned, Chew seconded to approve the Consent Agenda as presented. Motion carried unanimously. A. Bids and Purchase Orders: 2. 3. 5. Bid #1265 - 1500 KVA Station Transformer Bid ~1279 - Lowboy Trailer Bid #1285 - Disk Drive P.O. #15873 - IBM .7. 6. P.O. #15868 - American Management System Ordinances A. The Council considered adoption of an ordinance accepting a competitive sealed proposal and awarding a contract for the 363 City of Denton City Council Minutes September 17, 1991 Page 14 purchase of materials, equipment, supplies or services. (6.A.1. - Bid ~1265, 6.A.2. - Bid #1279, 6.A.3. - Bid #1285) The following ordinance was considered: 91-140 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. Chew motioned, Alexander 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 providing for the expenditure of funds for purchases of materials or equipment which are available from one source in accordance with the provisions of state law exempting such purchases from requirements of competitive bids. (6.A.5. - P.O. #15873, 6.A.6. - P.O. #15868) The following ordinance was considered: 91-141 AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR PURCHASES OF MATERIALS OR EQUIPMENT WHICH ARE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING FOR AN EFFECTIVE DATE. Hopkins motioned, smith 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. C. The Council considered adoption of an ordinance authorizing the Mayor to execute Amendment No. 3 to the agreement of February 16, 1988 between the City of Denton and Freese and Nichols, Inc., relating to professional engineering services for Lake Ray Roberts Offsite Water Transmission Facilities. (The Public Utilities Board recommended approval.) Lee Allison, Director of Water Utilities and Engineering Division, stated that Freese and Nichols, Inc. was in the process of completing the detail design of the Hartlee Field Road Booster Pump 364 City of Denton City Council Minutes September 17, 1991 Page 15 Station. Refinements were made to the preliminary design during this phase as well as preparing the construction drawings and specifications. At the review meeting of February 1, 1991, staff identified three design adjustments resulting in lower total costs which included bridge crane, variable frequency pump and fire sprinkler system. The bridge crane would allow movement of various parts around the pump room in a smaller building. Without a bridge crane, the building would have to be at least four feet wider to accommodate a portable hoist. The variable speed pump would improve the ability to pump into the distribution system economically during a variety of demand and pressure situations. The fire sprinkler system was included at the request of the Denton Fire Department. The following ordinance was considered: 91-142 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 3 TO THE AGREEMENT OF FEBRUARY 16, 1988 BETWEEN THE CITY OF DENTON AND FREESE AND NICHOLS, INC. RELATING TO PROFESSIONAL ENGINEERING SERVICES FOR LAKE RAY ROBERTS OFFSITE WATER TRANSMISSION FACILITIES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE. Alexander motioned, Perry seconded to adopt the ordinance. On roll vote, Trent "aye", Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayo~ Castleberry "aye". Motion carried unanimously. D. The Council considered adoption of an ordinance authorizing payment to Leroy Whitlock and Hazel Whitlock for easement acquisition (Ray Roberts Transmission Water Line Project.) Dave Ham, Manager of Construction Projects, stated that easements would be required from 20 property owners from Denton to Ray Roberts. This was the first of those easements. Council Member Trent asked for the total cost of all the easements. Ham replied approximately $267,000. The following ordinance was considered: 365 City of Denton City Council Minutes September 17, 1991 Page 16 91-143 AN ORDINANCE APPROVING THE PURCHASE OF A UTILITYEASEMENT FROM HAZELAND LEROYWHITLOCK; AUTHORIZING EXPENDITURE OF FUNDS AND PROVIDING FOR AN EFFECTIVE DATE. Hopkins motioned, Trent 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. E. The Council considered adoption of an ordinance adopting the budget for the City of Denton, Texas, for the fiscal year beginning on October 1, 1991, and ending on September 30, 1992. City Manager Harrell stated that out of the budget discussions, Council had made specific amendments to the proposed budget. Those amendments had been incorporated into the various appropriations listed in the ordinance. Based upon the earlier decision made by Council regarding the $5 administrative fee, another decision was still needed. Under the General Fund category in the ordinance, there was an expenditure allocation of $28,232,919. The Council had two options regarding the $12,000 which had been deleted by the earlier decision. If it was the Council's desire to recoup that $12,000 decrease by reducing expenditures someplace in the General Fund budget, the appropriate action would be to amend the General Fund appropriation by $12,000 and would read $28,220,919. Staff, at the next formal meeting, would return with specific recommendations on where that should be implemented, department by department. Another option was to delete it and Council tell staff which departments the dollars would come from. If the Council did not want to reduce expenditures but would rather do a small adjustment in the tax rate to recoup the $12,000, it would be appropriate at this point, to keep the figure at $28,232,919. Council Member Trent asked if it was not true that the funding for the Campus Theater that the Council voted to allocate for utility expenses had now been given back to the City for at least the next year based on the Arts Council delayed start date. And if that were true, the amount of that return funding was $21,000 which would more than pay for the $12,000 shortfall incurred by doing away with the administrative fees. He felt that that was one solution to finding money without resorting to a tax increase. City Manager Harrell replied that the City had in place a contract with the Greater Denton Arts Council that the Council would pay a set amount each month starting in October in support of utility costs for the Campus Theater. That contract was in existence and would continue to be so. The Arts Council had indicated to the 366 City of Denton City Council Minutes September 17, 1991 Page 17 City, in conversations, that it was their intention that when they received the monthly payment, that they would deduct the amount of actual utility costs on the Campus Theater and would return the balance until they actually commenced reconstruction of the building. There was no legal obligation on the Arts Council to return the funds to the City. They had just indicated that that was their intention. Council Member Trent felt that it was the moral thing for them to do based on their delayed start date. He did not think that their utilities, at this stage, when they had not even begun yet, would exceed $10,00. City Manager Harrell replied that he thought that was a fair assumption. Council Member Trent felt that that was a fair place to look for money that had already been budgeted that would not result in a tax increase and did not think the money had been designated to go anywhere else. City Manager Harrell stated that the budget had $21,000 to the Campus Theater towards utility payments. That was an expenditure obligation. The Arts Council had indicated that it was their intention that they wanted the City to make that payment and then they would return the unused amount back to the City. If the entire Council felt that that was where they wanted to get the money, then it might be possible to reduce the fund balance by $12,000 knowing that at least $12,000 would be returned from the Arts Council. Council Member Trent stated that he realized that it was not a permanent solution. It was a temporary fix which would not require a tax increase. City Manager Harrell stated that other alternatives might be to take the money from the contingency fund. In the past, when this issue had been raised and the Park Board had come to the City making a request that the administrative fee be eliminated, the challenge had been to the Park Board to examine the Parks and Recreation budget to try and identify the like amount of expenditure reductions in their budgets which could be implemented if the revenue source was given up. Council Member Trent stated that he was not in favor of that alternative as the Board had already been given a list of nine proposed budget reductions, none of which were acceptable to the Parks Board. Council Member Perry stated that he felt it was not correct to 367 City of Denton City Council Minutes September 17, 1991 Page 18 commit funds already committed in another area. He suggested taking $12,000 from the General Fund and ask the staff to present the Council with specific recommendations. Council Member Alexander felt that one possible solution was to identify $12,000 within one of the contingency areas and indicate a reduction in the budget for that amount and work on the assumption that the money which might be available from the return of funds from the Campus Theater would then return to that contingency fund. He proposed that alternative as he was very much in favor of keeping the reserve fund at 10%. The following ordinance was considered: 91-144 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF DENTON, TEXAS, FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 1991, AND ENDING ON SEPTEMBER 30, 1992; AND DECLARING AN EFFECTIVE DATE. Alexander motioned, Chew seconded to amend the proposed budget document to reduce the Manager's contingency fund by $12,000 and that was done with the expectation that the process relating to the Campus Theater would occur as described. City Attorney Drayovitch stated that John McGrane, Executive Director for Finance, advised her that Exhibit A should also be amended as Section II of the ordinance reflected the appropriation but there also had to be a corresponding reflection of that loss of revenue. McGrane stated that the ordinance provided for two items. One was that revenues were not appropriated. Only expenditures were appropriated. As the City Manager explained, the total expenditure would be made to the Arts Council. The money received back would be in the form of revenue. Because Exhibit A amended the original proposed document, he suggested under the General Fund revenues to increase miscellaneous revenues by $12,000. That way there would be the total appropriation for expenditures and would have the offset in the revenue. Alexander amended his motion to include the recommendation by McGrane instead of his original motion. The substitution was agreeable with Chew's second. On roll vote, Trent "aye", Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and · Mayor Castleberry "aye". Motion carried unanimously. Chew motioned, Alexander seconded to adopt the ordinance as amended. 368 City of Denton City Council Minutes September 17, 1991 Page 19 Council Member Trent stated that he could not support nor would he vote for the budget. There were several reasons why he could not support the budget. The first one was that he felt the Council had not heard, at least to his satisfaction, the kind of input that the Council needed from the citizens of Denton. He did not know the reasons. He recalled hearing one citizen speak to the budget and that same citizen who spoke two weeks ago spoke this evening and he was pretty much cut off and told that his time was up. The other reason he could not vote for the budget was that it was not a zero based budget. There were things in the budget which were hidden from the taxpayers. There were things in the budget which were there that only department heads and the City Manager knew about. Early in the budget process he had asked to have several of the department budgets presented in a zero based fashion and he was told that it would occur. But it did not happen. He had to conclude that there were reasons why those budgets were not presented that way. The other reason he could not vote for the budget was because he did not feel as though the monies which were about to be spent had been legitimized. There was money for travel and the like for Council and staff which, in his opinion, were to be spent indiscriminately. When people who spend the taxpayers money, could spend $168 a night for a hotel room, he was appalled. He did not condone that and that was another reason why hecould not vote for the budget. He requested a roll call vote on the budget. Council Member Chew asked Council Member Trent what was hidden in the budget. He had not missed any budget hearings and wanted to know what was hidden. Council Member Trent replied the money for the Campus Theater. Council Member Chew stated that that was not hidden. Council Member Trent asked what that money was going to be spent for when it was returned. It had not been designated. Council Member Chew replied that he wanted to hear everything Trent accused the Council accepting which was hidden in the budget. He wanted it itemized. Council Member Trent replied that the other large portion of the budget which had not been accounted for would be where would the money go for the Electrical Utility positions which were budgeted but would not be filled. The rate payers were providing funds for those positions which would not be filled and yet why was money extracted from rate payers which was not needed. That was not a budgeting process. Council Member Chew stated that Trent had gone to the newspaper 369 City of Denton City Counci!Minutes September 17, 1991 Page 20 with accusations and he wanted to know what was hidden. Those positions had already been justified by the Utility Board and the Utility Director. It was time for the people to know that the Council was not locked in step with anyone. There were six people on the Council who voted in favor of the budget and one person's opinion. He highly resented Trent's actions. Mayor Castleberry stated that during the budget discussion, the Council had discussed the 10 positions. In his understanding, that money, approximately $376,000, would be placed in a reserve fund. That reserve fund along with the money received from TMPA would possibly allow another rate decrease in December or January. Council Member Chew replied that was correct. Council Member Alexander stated he specifically recalled the Council discussing that issue during the budget process. He recalled that he urged the Council to not take the positions out of the budget because he felt it was very important, with the large utility system the City had, that the Council allow the management of that system sufficient flexibility to make decisions about what positions might need to be filled and which ones might not. .Those positions were not hidden. They were a very definite, open and well discussed portion of the budget process. Council Member Smith agreed. Those positions had been discussed at great length and did not feel those were hidden at all. Council Member Trent replied that a business was not run that way. A household was not run that way. Why should the City be run that way. Council Member Smith replied that she believed they were discussing hidden figures. Those were not hidden. The Campus Theater contribution was also not hidden. Was there something specific which was hidden. Council Member Trent replied that in his estimation, when money was taken which was not needed, that it provided a way to put money where it was not needed and would not be spent that way. Council Member Perry stated that there were items he felt were important for the City such as high tech equipment for public safety departments. Those items could not be done in this budget. He felt that budget was not a rich kind of budget. It lacked a few items which the Council would like to have but the money was not available.~ Mayor Pro Tem Hopkins called the question. 370 City of Denton City Council Minutes September 17, 1991 Page 21 On roll call vote, Trent "nay", Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried with a 6-1 vote. F. The Council considered adoption of an ordinance levying the ad valorem tax of the City of Denton, Texas, for the year 1991, on all taxable property within the corporate limits of the City on January 1, 1991, not exempt by law; providing revenues for payment of current municipal expenses, and for interest and sinking fund on outstanding City of Denton bonds; providing for limited exemptions of certain homesteads and providing for enforcement of collection. City Manager Harrell stated that the ordinance represented the preliminary decision made by the Council to set the tax rate at the $.6851 level. The blanks in the ordinance would be filled in at $.6851, $.4690 and $.2161 if the Council desired to keep the tax~ rate at $.6851. He stated that the tax rate represented a $.02 level below the effective tax rate which gave the City less revenue to operate next year than the current year. The City was the only taxing jurisdiction in the City which was proposing a tax rate which was below the effective rate. The following ordinance was considered: 91-145 AN ORDINANCE LEVYING THE AD VALOREM TAX OF THE CITY OF DENTON, TEXAS, FOR THE YEAR1991, ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY ON JANUARY 1, 1991, NOT EXEMPT BY LAW; PROVIDING REVENUES FOR PAYMENT OF CURRENT MUNICIPAL EXPENSES, AND FOR INTEREST AND SINKING FUND ON OUTSTANDING CITY OF DENTON BONDS; PROVIDING FOR LIMITED EXEMPTIONS OF CERTAIN HOMESTEADS; PROVIDING FOR ENFORCEMENT OF COLLECTIONS; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Hopkins motioned, Smith seconded to adopt the ordinance with the figures presented. Council Member Trent stated that he would like to vote for the ordinance as it contained the exemption for individuals over 65, but because of the listed tax rate, he could not vote for it. 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. G.. The Council considered adoptio'n of an ordinance amending the Schedule of Rates for water services. (The Public Utilities Board recommended approval.) 371 City of Denton city Council Minutes September 17, 1991 Page 22 City Manager Harrell stated that the ordinance had been prepared in accordance with the recommendations as approved by the City Council during budget discussions. The following ordinance was considered: 91-146 AN ORDINANCE AMENDING THE SCHEDULE OF RATES FOR WATER SERVICE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander 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 "aye". Motion carried with a 6-1 vote. H. The Council considered adoption of an ordinance amending the Schedule of Rates for sewer services. (The Public Utilities Board recommended approval.) City Manager Harrell stated that the ordinance had been prepared in accordance with the earlier decisions made by the Council in budget discussions. The following ordinance was considered: 91-147 AN ORDINANCE AMENDING THE SCHEDULE OF RATES FOR SEWER SERVICE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Perry 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 "aye". Motion carried with a 6-1 vote. I. The Council considered adoption of an ordinance establishing rates for the use of the City's sanitary landfill site as authorized by Chapter 12 of the Code of Ordinances of the City of Denton. (The Public Utilities Board recommended approval.) The following ordinance was considered: 91-148 AN ORDINANCE OF THE CITY OF DENTON ESTABLISHING RATES FOR THE USE OF THE CITY'S SANITARY LANDFILL SITE AS AUTHORIZED BY CHAPTER 12 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON; 372 City of Denton City Council Minutes September 17, 1991 Page 23 AND PROVIDING FORAN EFFECTIVE DATE. Chew motioned, Hopkins seconded to adopt the ordinance. 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. J. The Council considered adoption of an ordinance designating depositories for City funds for a term beginning October 1, 1991 and ending September 30, 1993. Harlan Jefferson, Treasurer, stated that the current depository contract would expire September 30, 1991. Request for proposals were sent to all Denton banks, and advertised in the local paper. This agreement was for the day-to-day banking services of the City of accounts payable activities, payroll checks, deposits of utility payments, etc. Two bids were received from Bank One, Denton and First State Bank of Denton. Staff was recommending to retain the operating account program with First State Bank of Denton. They were also recommending that the City continue to maintain banking relationships with the following financial institutions: Bank One, Denton; Bank one, Dallas; North Texas Savings; NCNB, Dallas, NCNB, Fort Worth; and Team Bank, Fort Worth. The following ordinance was considered: 91-149 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON DESIGNATING DEPOSITORIES FOR CITY FUNDS FOR A TERM BEGINNING OCTOBER 1, 1991 AND ENDING SEPTEMBER 30, 1993. Trent motioned, Alexander 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. 8. The Council considered approval of a reduction in the Energy Cost Adjustment from 1.9 cents per KWH to 1.7 cents per KWH. (The Public Utilities Board recommended approval.) Chew motioned, Hopkins seconded to approve the reduction. On roll vote, Trent "aye", Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 9. Miscellaneous matters from the City Manager. A. The Council received a report and held a discussion regarding security procedures at the Municipal Airport. 373 City of Denton City Council Minutes September 17, 1991 ~ ~ Page 24 Mike Jez, Chief of Police, stated that the recent thefts at the Airport represented approximately $30,000. There were several recommendations to help solve the problem at the Airport. Those included (1) hiring off-duty police officers or a private security firm to patrol the Airport, (2) considering video surveillance and alarm systems installed at the Airport, and (3) increasing random patrols at the Airport with the available police personnel. An extensive crime prevention security survey was another possibility to look at key control and accessibility of Airport facilities both public and private, individual aircraft security, utilization of alarm and video surveillance systems to deter unauthorized entry and thefts, control of all access roadways and security lighting in the Airport area. Mayor Pro Tem Hopkins asked why the Airport Board or the Airport Manager had not requested additional patrols. Jez replied that he had met with staff on at least two occasions in the past two years. Changes had been made but more dialog was needed. .Rick Svehla, Deputy City Manager, stated that in discussion with the Airport Board, a concern had been expressed over the tight budget situation. Some of the options were costly and that money was not readily available. The crime prevention unit was out several years ago and changes were made. It was time to have the unit out again to look at the situation. Council Member Trent asked how much a video surveillance system would cost. Jez replied approximately $10,000 but a better estimate would be known after the security survey had been completed. Council Member Trent felt if there were many more instancesat the Airport, the insurers would not insure an airplane at the Denton Airport. That would result in a loss of revenue to the City. Some aircraft had already been moved to other airports. Consensus of the Council was to proceed with the security survey. B. City Manager Harrell reported to Council a situation regarding a hackberry tree which the City had removed. Staff examined the procedure and concluded that staff had followed procedures in the ordinance which called for the staff to determine whether, a tree was dying and would not survive and could remove the tree. Staff should have obtained a written permit to remove the tree once the determination had been made. The paperwork trail had not been followed. The decision point would have been the same 374 City of Denton City Council Minutes September 17, 1991 Page 25 whether the permit had been obtained or not. Council Member Trent asked who was qualified to make the decision that the tree was dead. City Manager Harrell replied t~at there was an employee who was primarily responsible for removing trees. He had been on the job for 17 years. He had made the decision and Harrell supported that decision. A citizen in the audience questioned why the tree was removed in the first place. Mayor Castleberry requested Harrell to respond to the citizen's question. Harrell replied that the tree was removed in accordance with a complaint filed by the City stating that various limbs were falling on vehicles. A substantial amount of the tree was dead and in accordance with the tree preservation ordinance, the criteria was followed to remove the tree. council Member Trent stated that he had spoken with a member of the Planning staff who had assessed the tree a week ago. That staff member had indicated to him that the tree was not dead and just needed trimming. City Manager Harrell replied that he stood by his report and the documentation given in the report which indicated that over a foot of the tree was dead. It was a dying tree and was judged to be a hazard to the property. 10. There was no official action taken on Executive Session items considered during the Work Session. 11. New Business The following items of New Business were suggested by Council Members for future agendas: A. Council Member Smith updated the Council on the situation regarding the Loop 288 extension and the neighborhood. The residents, City staff and representatives from the Highway Department had met and she felt good progress had been made in understanding everyone's positions and reached a good level of communication. Council Member Trent asked if it looked like someone was going to investigate a noise wall and if so, did it look like it was going to happen. 375 City of Denton City Council Minutes September 17, 1991 Page 26 Council Member Smith replied yes and that the representative from the Highway Department would investigate answers to several questions the residents had and all involved would meet again in a month. B. Council Member Perry stated that he was pleased regarding the recent Economic Development meeting held at the Chamber. A representative from Sally Beauty commended the City staff on the cooperation they had received in locating the business. C. Council Member Smith asked for an October meeting for discussions within Council as discussed at the earlier Council planning session. After discussion, consensus of Council was to delay the session until a date in November and to hold the session in Denton. 12. The Council did not meet in Executive Session during the Regular Session. With no further business, the meeting was adjourned at 10:20 p.m. J~NIFER/ALTERS C~ITY OF' DENTON, TEXAS CITY OF DENTON, TEXA~