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Minutes October 15, 1991393 CITY OF DENTON CITY COUNCIL MINUTES OCTOBER 15, 1991 The Council convened into the Work Session at 5:15 p.m. in the Civil Defense Room. PRESENT: ABSENT: Mayor Castleberry~ Mayor Pro Tem Hopkins; Council Members Alexander, Chew, Perry, Smith. Council Member Trent 1. The Council convened into the Executive Session to discuss legal matters (considered action regarding In re: Flow and considered action in Small v. City), real estates and personnel/board appointments (considered appointments to the Cable T.V. Board, the Airport Advisory Board and the Beautification Commission). 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 the annexation of Corbin Road. Rick Svehla, Deputy City Manager, stated that staff had been trying to determine if the City should annex portions of Corbin Road which had low water crossings. Currently, each time it rained, city personnel had to go out and close the barricades to the road and when the rain was over, they had to go back out and reopen the barricades. Staff was proposing annexing portions of Corbin Road and closing those areas at the low water crossings. This would still allow people access to their property on both sides of I35. A fifty foot strip on the north/south part of Corbin Road between Airport Road and springside Road would be annexed plus a triangular piece of land on the east/west portion of the road as it crossed under I35W. Once the areas were within the City, the roads could be barricaded at the low water crossings to eliminate access in those areas. Other options included continuing operating in the present manner or building bridges at least in one area. Mayor Pro Tem Hopkins asked how many homes would be impacted. Svehla replied approximately five in the immediate area. Council Member Perry asked if the residents in the area had been contacted. Svehla replied no that staff was waiting to see if Council was willing to close the road before contacting the residents. Mayor Castleberry asked if the area could be disannexed. 394 City of Denton City Council Minutes October 15, 1991 Page 2 Svehla replied that a much larger area would have to be disannexed. Lloyd Harrell, City Manager, stated that there would be no residences annexed only the road so as to be able to close the road and eliminate the dangerous low water crossings. Svehla relied that the annexation could be reduced to 40 feet if necessary. A 50 foot strip was suggested in order to be sure the entire road was annexed. After discussion the Council consensus was to bring the item back for further discussion at a later date. 3. The Council received a report and held a discussion regarding the proposed County Road Bond Issue. Rick Svehla, Deputy City Manager, stated that the Council would be considering a resolution regarding this issue in the regular meeting. The County proposal included nineteen different projects in the County. A number of those were on the City's transportation plan, and would be essential to helping the City develop its high intensity or economic development areas in the City. The projects which would have a major impact on the City would be Ryan Road, Jim Christal Road, Farm-to-Market 2499, Country Club Road, and Crawford Road. There were also other roads near the City that would be upgraded to County standards. City Manager Harrell stated that recent newspaper reports had stated that the proposal would only benefit the southern part of the County. That was not true as Denton would benefit from the issue. Svehla stated that approximately $10 million was being projected for the three major projects in Denton's area. That was $10 million out of a proposed $34 million project which would include the secondary projects which would benefit Denton. It was felt that the proposal would enhance the economic development of the entire county, provide for an improved transportation system, and increase county involvement with transportation issues. 4. The Council received a report and held a discussion regarding the assignment of Medicare benefits for ambulance services. John McGrane, Executive Director for Finance, stated that Council recently had received a citizen report requesting the City accept Medicare assignments for ambulance servioes. The City currently charged a base ambulance transport fee of $120.00. Of this amount Medicare paid only $64.15 for those individuals who qualified. Of 395 City of Denton City Council Minutes October 15, 1991 Page 3 a $300.00 emergency transfer, which would include any transportation outside of the City, Medicare still paid only $64.15. Other fees such as oxygen, drugs, etc. were often disallowed by Medicare. If any were allowed, only a percentage of the actual charge was paid. If the City were to accept assignment for these fees, no other reimbursement, either from the responsible individual or additional insurance carriers, could be recovered. Therefore, the City would be losing approximately 50% of its eligible fees. Currently the City spent approximately $975,000 for its emergency medical services. Based on the number of alarms and the number of individuals transported, the City was not recovering its cost associated with the ambulance services. If the City took Medicare assignment, it would lose approximately $30-40,000 in fees that could not be billed out to individuals. Council Member Perry stated that there was a substantial elderly population in Denton and by not accepting Medicare payments, the City would be denying them that privilege. McGrane stated that out of 14 cities surveyed, only two cities in the area accepted Medicare assignments. Council Member Smith asked if the Brockett ambulance service did the same service as the City did. Svehla replied that it could only transport patients. It did not have emergency services. McGrane stated that the City staff did help individuals complete the appropriate forms for the individual. Mayor Pro Tem Hopkins stated that the City budget had these costs built into it and that nothing could be done this year with the fees. If the Council desired to do something in this area, it needed to be studied and considered during next budget discussions. Consensus of the Council was to not change service at this time. 5. The Council was to receive a progress report and hold a discussion regarding the proposed contracts with the Upper Trinity Regional Water District and give staff direction. This item was considered under the Miscellaneous Matters from the City Manager during the regular session. The Council convened into the Regular Session at 7:00 D.m. in the Council Chambers. 396 City of Denton City Council Minutes October 15, 1991 Page 4 PRESENT: ABSENT: Mayor Castleberry; Mayor Pro Tem Hopkins; Council Members Alexander, Chew, Perry, Smith. Council Member Trent 1. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance. Session of October 1, 1991. Hopkins motioned, Smith seconded to approve the Minutes. carried unanimously. The Mayor presented the following proclamations: The Council considered approval of the minutes of the Regular Motion Certified Professional Secretaries Month Red Ribbon Week National Hospice Month 3. The Council received a report from Winn Walton regarding redistricting. Walton stated that the student citizenry of Denton was unique both geographically and demographically. They made up over one-third of the voting age population and had a vested interest in local affairs. Their concern was with the current system of electing City Council and the manner in which the lines were drawn. Currently three of the four single member districts met in the middle of the North Texas campus. Roughly four thousand voting age students lived on campus and another ten-fifteen thousand lived in the neighborhood immediately surrounding it. The current system disallowed students direct representation on the Council and it bred confusion and frustration in situations when students needed to work with their particular council member. The Council had an opportunity to improve upon the plan drawn ten years ago. The three proposals drawn by the City staff worsened the situation rather than improved it. The University of North Texas Student Association strongly supported a 6-1 system and was currently circulating a petition to that end. A 6-1 system would also increase minority representation. Other cities with large student populations had provided for representation. He announced the formation of a Denton Citizens Redistricting Task Force. The Task Force would be looking at a 6-1 plan, an 8-1 plan or any other plan suggested by individuals. 397 City of Denton City Council Minutes October 15, 1991 Page 5 Council Member Alexander asked Walton how other cities were dealing with the student population. Walton replied that the cities had either redrawn district lines to include a student district or had provided for non-voting Council Members for the student body. 4. Consent Agenda Alexander motioned, Chew seconded to approve the Consent Agenda as presented. Motion carried unanimously. A. Bids and Purchase Orders: 1. Bid #1283 - Brochures for Parks and Recreation B. Tax Refund Considered approval of a tax refund to Imco Realty Services, Inc. for $975.93. Considered approval of a tax refund to Imco Realty Services, Inc. for $1,808.32. C. Plats and Replats Considered the preliminary plat of 10.018 acres of land on the south side of Scripture Street, 664 feet west of Bonnie Brae. The tract encompassed Phases 1 and 2 of Lot 1, Block A; M.H.M.R. Center Addition. (The Planning and Zoning Commission recommended approval.) 5. Ordinances A. The Council considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for public works or improvements. (4.A.1. - Bid ~1283) The following ordinance was considered: 91-153 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF FDq4DS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. 398 city of Denton City Council Minutes October 15, 1991 Page 6 Perry motioned, Chew seconded to adopt the ordinance. Mayor Pro Tem Hopkins aske~ where the business which was to be awarded the bid was located and why there was only one bid. Denise Harpool, Senior Buyer, stated that the business was located in Denton. City Manger Harrell stated that the bid specifications mandated that the successful bidder had to sell advertising for a certain portion of the brochure so that the City could reduce its out-of- pocket expenses. Some of the other printing firms which could bid on the project simply did not want to take on the job of soliciting advertising. Next year the proposal would be bid as an alternate bid for those who did not want to deal with the advertising portion of the bid. On roll vote, 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 approving an agreement between the City of Denton and Services Program for Aging Needs (SPAN); and authorizing the Mayor to execute the agreement. Council Member Chew left the meeting. Catherine Tuck, Administrative Assistant, stated that the contract executed the Council's decision outlined in the budget. The amount included $46,000 for the HandiHop program and $10,000 for the elderly and other transportation. There were a few changes in the contract in addition to the allocation of the funds. In order to comply with the Americans with Disabilities Act, SPAN could no longer give preference on HandiHop based on the purpose of the trip. A reporting requirement was also added to ensure the City that the funds allocated for HandiHop and other transportation were tracked through financial statements. The number of City of Denton participants would also be tracked. The following ordinance was considered: '399 city of Denton City Council Minutes October 15, 1991 Page 7 91-154 AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND SERVICES PROGRAM FOR AGING NEEDS (SPAN); AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. Hopkins motioned, Smith seconded to adopt the ordinance. On roll vote, Alexander "aye", Hopkins "aye", Smith "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. Mayor Castleberry stated that Council Member Chew had left the meeting and abstained from voting as Chew was a member of the Board for SPAN. Council Member Chew returned to the meeting. C. The Council considered adoption of an ordinance authorizing the Mayor to execute an agreement approving the Utility Department's sponsorship of an APPA deed grant application for Dr. A. G. Parlos and Dr. A. D. Patton of Texas A & M University. (The Public Utilities Board recommended approval.) Bob Nelson, Executive Director for Utilities, stated that the city had been awarded a $50,000 APPA Deed grant. Grant awardees were expected to submit quarterly progress reports. Funds were paid to the sponsoring utility for disbursement to the project team on an invoice basis. The following ordinance was considered: 91-155 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A DEED GRANT AGREEMENT WITH THE AMERICAN PUBLIC POWER ASSOCIATION, RELATING TO THE AWARD OF A DEED GRANT TO DENTON MUNICIPAL UTILITIES IN THE AMOUNT OF $50,000 FOR THE PURPOSE OF UNDERTAKING IN COOPERATION WITH TEXAS A & M UNIVERSITY A PROJECT TO DEMONSTRATE THE USE OF NEURAL INFORMATION PROCESSING SYSTEMS TO IMPROVE LONG-TERM FORECASTING METHODS FOR ELECTRIC UTILITIES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. 400 City of Denton City Council Minutes October 15, 1991 Page 8 Perry motioned, Smith seconded to adopt the ordinance. On roll vote, Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 6. Resolutions A. The Council considered approval of a resolution expressing support for Proposition 16, the County Road Improvement Bond Project, to be on the ballot at the November 5, 1991 election. The following resolution was considered: R91-063 A RESOLUTION EXPRESSING SUPPORT FOR PROPOSITION 16, THE COUNTY ROAD IMPROVEMENT BOND PROJECT, ON THE BALLOT FOR THE NOVEMBER 5, 1991 ELECTION; AND PROVIDING FOR AN EFFECTIVE DATE. Hopkins motioned, Perry 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. B. The Council considered approval of a resolution authorizing the Mayor to execute an agreement between the City of Denton and the City of Corinth for the impoundment and disposition of dogs and cats. Nonie Kull, Manager of Environmental Health Services, stated that approval of the resolution would grant mutual benefits for both communities. Corinth would be able to deal with the health and safety concerns dealing with stray animals and Denton would realize revenue increases. Council Member Smith asked if Corinth would transport the animals to Denton. Kull replied yes. Denton would only shelter and take care of the animals. Council Member Smith asked if the Shelter had enough room for the additional animals. Kull replied yes and the agreement allowed for a termination should the Center no longer have room for the animals. The following resolution was considered: 401 City of Denton City Council Minutes October 15, 1991 Page 9 R91-064 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE CITY OF CORINTH FOR THE IMPOUNDMENT AND DISPOSITION OF 'DOGS AND CATS; AND PROVIDING FORAN EFFECTIVE DATE. Chew motioned, Alexander 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. C. The Council considered approval of a resolution approving the funding of water and sewer lines to serve property to be developed by Manufacturers Retail Outlet, Inc., in accordance with the approved guidelines for funding and selecting development plan water and sewer lines. (The Public Utilities Board and the Planning and Zoning Commission recommended approval.) Bob Nelson, Executive Director for Utilities, stated that the City had an economic development plan line program which set aside $500,000 per year to extend water and sewer lines to prospective new industry which fit the economic development guidelines. This was the first candidate for the current fiscal year. A 12" water line would be extended 2,490 feet along the I35 service road to the property and a 12" sanitary sewer line 1,630 feet from an existing sewer line to the property line. Total cost of the water line was $102,445 and the sewer line was $66,723. Council Member Perry asked if the new lines would be able to serve anyone else in the area. Nelson replied yes that the size fit the master plan. customer might need to loop another line in the area. A large The following resolution was considered: R91-065 A RESOLUTION APPROVING THE FUNDING OF WATER AND SEWER LINES TO SERVE PROPERTY TO BE DEVELOPED BY MANUFACTURERS RETAIL OUTLET, INC., IN ACCORDANCE WITH THE GUIDELINES FOR FUNDING AND SELECTING DEVELOPMENT PLAN WATER AND SEWER LINES; AND PROVIDING FOR AN EFFECTIVE DATE. 402 City of Denton City Council Minutes October 15, 1991 Page 10 Smith motioned, Hopkins 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. 7. The Council considered approval of plans for construction of an additional self-serve fuel tank for Air Denton at the Denton Municipal Airport. Rick Svehla, Deputy City Manager, stated that Air Denton was proposing a self-service fuel dispensing system that would allow users to fuel their own airplanes. This system would allow for reduction in the price of fuel, and hopefully, an increase in the fuel flowage volumes at Air Denton. The lease provisions in the Air Denton lease required the approval of the Council. The Airport Board recommended approval with the understanding that all applicable permits would be obtained from the City, the EPA and the Texas Water Commission. Chew motioned, Alexander seconded to approve the plans as presented. On roll vote, Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 8. The Council considered approval of plans for construction of an additional 12,000 gallon fuel tank for Fox-51 at the Denton Municipal Airport. Deputy City Manager Svehla stated that the Fox 51 lease also required that Council approve any improvements made to the lease. Fox 51 was requesting to install a 12,000 gallon underground tank for jet fuel. The Airport Board recommended approval with the provision that Fox 51 obtain all applicable permits from the City, the EPA and the Texas Water Commission. Chew motioned, Smith seconded to approve the plans as presented. On roll vote, 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. Harrell asked for possible dates, time and format for the mid-year planning session. Suggestions from Council included a Saturday morning or off-Tuesday evening or afternoon. After discussion, a tentative date was set for December 10 at 4:00 p.m. Accommodation details would be left 4O3 City of Denton City Council Minutes October 15, 1991 Page 11 for the Manager complete. B. The Council considered Work Session item #5. 5. The Council received a progress report and held a discussion regarding the proposed contracts with the Upper Trinity Regional Water District and gave staff direction. Bob Nelson, Executive Director for Utilities, stated that the Legal Department and Utility Staff had been working with the Austin attorneys on the "wholesale" contracts with UTRWD. There were two basic contracts that the staff had been working on since Council directed staff on August 13, 1991, to work on a wholesale contract, rather than the joint ownership that had previously been under negotiations. The water treatment and transmission services contract provided water treatment and water transmission services to the UTRWD from Denton's combined existing and future water plant with the rates based on Denton's combined system. The UTRWD would provide its own raw water. Denton would make some raw water available in the form of 500,000 gallons per day bought from Dallas and/or excess water from Ray Roberts Lake. Provisions for the initial phase of the treatment and transmission services contract included that the contract would run from the time the UTRWD pipeline was completed to the time the Ray Roberts Water Plant construction was completed, volume could change from year to year, and Denton and the UTRWD would share in the reserve capacity. The variable cost rates would be the same cents per thousand gallons as Denton paid. The fixed costs would include a return on investment which was a percentage of assets times the interest rate plus 1.5%, depreciation, 4% street rental fee and some operational costs. The percentage share of the assets to be paid by the UTRWD was determined by the following formula: UTRWD % of assets for Interim Term UTRWD Peak GPD Total System Peak GPD X Total Assets After the construction of the Ray Roberts Plant, the terms would include the requirement that the UTRWD declare a permanent capacity they desired which was estimated to be 6 MGD, the volume would be fixed for the term of the contract which would be 10 to' 20 years~ The variable costs would be the same cents per thousand gallons as Denton. The fixed costs would include return on investment which was a percentage of assets times the interest rate plus 1.5%, depreciation, a 4% street rental fee and ~ome'operational co~t~. The percentage share of the assets to be paid by the UTRWD would be determined by the following formula: 404 City of Denton City Council Minutes October 15, 1991 Page 12 UTRWD % of assets for Fixed Capacity UTRWD Peak GPD Total System Peak GPD X Total Assets The interim raw water contract provided that the contract would be on an interim basis only. It would encourage the UTRWD to seek other long-term raw water. It would provide 500,000 GPD to the year 2005 with two five year extension options available. The price would be equal to Dallas' price. Excess water from Ray Roberts Lake would be available with the understanding that the volume could change from year to year and the price would be 80% of Dallas' price. The contract would be contingent on the transfer of Corinth and Lake Cities Municipal Utility Authority to the Upper Trinity Regional Water District. Principal issues included the fact that the raw water was on an interim basis, the City was essentially renting treatment capacity space, the treatment capacity was from the combined system not just from a new plant, there would be a fixed amount of capacity made available to the UTRWD and there would be no guarantee of future treatment capacity which would depend on a successful relationship in the contract. An option for consideration was a "Denton Plan" which provided for a combined UTRWD equity ownership and treatment service. This plan would use a modified joint ownership contract plus a treatment and transmission services contract and an interim raw water contract. Council Member Alexander asked Nelson if he had any preliminary indication as to which direction the other parties might be interested in going. Nelson replied that the District still wanted some sort of equity ownership in the plant. Council Member Alexander stated that the final option seemed to be a reasonable compromise. Mayor Pro Tem Hopkins felt the contracts were reasonable as long as Denton had control with no veto power and if it addressed any problems the Austin attorneys had. City Manager Harrell stated that under the modified joint ownership plan, the equity ownership was capped at 49% and would be no more than that. Council Member Perry asked if there had been any dialog with the UTRWD regarding this issue. 405 City of Denton City Council Minutes October 15, 1991 Page 13 Nelson replied that the UTRWD would like to discuss the matter with the Council. City Manager Harrell stated staff was working with the Austin attorneys to put the wholesale contract in final form for Council review. Most of the work had been completed on the modified joint ownership contract but based on the last Council decision, work had not continued on that contract. If the Council desired, both the wholesale and the modified joint ownership contract could be brought before Council for consideration. If the Council did not want staff to do any more work on the joint ownership contract, staff would concentrate its effort on the wholesale contract. Mayor Castleberry stated that he was not interested in a modified contract. He was wary of the UTRWD coming back against Denton and making changes in a contract four or five years from now. Was there a contract that could be written in which changes could not be made. City Attorney Drayovitch stated that staff and the Austin attorneys had written around that as much as possible but it could always happen. Council Member Alexander suggested looking at both options for Council to consider. Mayor Pro Tem Hopkins cautioned negotiating with the UTRWD Board. Council should only listen to the Board and not try and negotiate with the Board. She suggested asking the attorneys if such a meeting were advisable. The bond attorney would also have to agree with the contracts. Nelson summarized that Council would like staff to continue with the treatment and transmission services contract and the interim raw water contract plus the modified contract. Figures would be put to those contracts regarding the impact of the contracts and bring those back for Council review. Perry motioned, Alexander seconded to proceed with summary suggested above. Mayor Castleberry asked if the motion included that the Council would be discussing the matter without the UTRWD present. Perry and Alexander agreed that was part of the motion and second. 406 City of Denton City Council Minutes October 15, 1991 Page 14 On roll vote, Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 10. There was no official action taken on Executive Session items discussed during the Work Session Executive Session. 11. New Business There were no items of New Business suggested by Council Members for future agendas. 12. The Council then convened into the Executive Session to discuss personnel/board appointments (considered appointments to the Cable T.V. Board, the Airport Advisory Board and the Beautification Commission). Council convened into open session and took the following action: A. Chew motioned, Perry seconded to appoint J. B. Smallwood, Jr. to the Beautification Commission. On roll vote, Alexander "aye", Hopkins "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. With no further business, the meeting was adjourned. t3~ITY OF/DENTON, TEXAS ACC0000A CITY OF DENTON, TEXAS