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