Minutes May 19, 1992228
CITY OF DENTON CITY COUNCIL MINUTES
MAY 19, 1992
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
Chew, Perry, and Miller.
ABSENT: Council Members Smith and Brock.
1. The Council convened into the Executive Session to discuss
legal matters, real estate, and personnel/board appointments
(considered appointments to the Board of Adjustment, Building Code
Board, the Electrical Code Board, the Plumbing and Mechanical Code
Board, and the Sign Board of Appeals).
2. The Council received a report and held a discussion on the
1985-86 bond issues and received a recommendation from the '91
Committee regarding the spending of interest money from the 1985
issue and gave staff direction.
Rick Svehla, Deputy City Manager, presented an update on the
various bond projects. He stated that there was approximately
$300,000°of interest from the 1985 bond issue and approximately
$300,000 of interest from the 1986 bond issue. The 1985 bond issue
was strictly a street bond issue for streets and related drainage
improvements. The 1986 bond issue had a number of different
projects such as highways, streets, parks, drainage, fire station,
fire truck, animal control building, recreation centers, park land,
library, etc. All of the improvements for the 1985 issue had been
completed except for Locust Street from University south to Parkway
and Elm Street from Mulberry south to Eagle. The Highway
Department overlayed both of those streets right after the 1985
issue was passed. The 1986 bond issue had the majority of its
projects also completed. All of the street projects had either
been completed or were under construction. In January, the Council
issued the last bonds for the last drainage projects to be built
within the next year. The fire stations had either been completed
or were under construction from the 1986 money and prior 1983
money. The Animal Control Shelter had been completed. All of the
park work in terms of development and field improvements were also
under construction. The '91 Committee had recommended that the
interest money from the 1986 issue be used in conjunction with the
original intent~of the 1986 election. Those intents included land
acquisition, park development such as new fields, pool renovations,
etc. The '91 Committee suggested that the interest money be used
for continued improvements to our street system. A list of
recommended street improvements had been proposed. Staff was
seeking direction on the list of streets for use with the 1985
interest money and direction for use of the 1986 interest money.
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City of Denton City Council Minutes
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Page 2
Council Member Chew stated originally it had been talked about
using all of the interest money to purchase land.
Svehla replied yes and did not feel that the '91 Committee had any
problem with that.
Lloyd Harrell, City Manager, stated that out of the discussions
from the public hearings with the neighborhood groups that it would
be all right to take some of the $2.7 million and buy the sites for
the future recreation centers.
Council Member Chew stated that originally it had been looked at to
do something else with the interest money and now he had not heard
anything about renovating the Civic Center Pool.
Svehla replied that the interest money could be used for that.
John McGrane, Executive Director for Finance, stated that the bond
covenants indicated the interest money had to be put back into the
project or into a like project or pay off the debt service. It
would have to be studied to see if the money could be used for the
pool project.
Council Member Chew asked for such a determination. He would like
that done before a decision was made on what streets would be
repaired.
Mayor Pro Tem Hopkins felt that it had been stated that none of the
$2.7 million could be used on the Civic Center Pool.
City Manager Harrell replied that it had been researched and the
only way money could be spent on the Civic Center Pool was to issue
CO's. Because it was not specified in the $2.7 million issue, it
could not directly go to that project. The only way to renovate
the pool was to issue CO's or put it in the next bond issue for
voter approval. Or use the $600,000 if the funds could be used for
that type of project.
McGrane stated that his initial reaction was negative.
Svehla replied that the 1985 issue as it was strictly for streets.
He felt there might be a better chance with the $300,000 from the
1986 issue.
Council Member Perry felt that the pool needed to be renovated as
soon as possible. Not four to five years in a CIP.
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Page 3
Mayor Pro Tem Hopkins stated that she did not want the pool put
into a CIP project. The renovations needed to be done now.
After discussion, Council directed staff to research possible ways
to use the bond money particularly with the Civic Center Pool
renovations. No decision would be made on the 1985 interest money
or which streets to include until that research had been completed.
3. The Council received a report and held a discussion regarding
the revised Council Budget Questionnaire.
John McGrane, Executive Director for Finance, stated that the
questionnaire had been tabulated to include the results from the
two new Council Members. He presented a comparison of the old and
new results. He indicated that this would be a general overview
for the preparation of the 1992-93 budget.
4. The Council received a report and held a discussion regarding
S.B. 971 enabling cities to pass a sales tax for economic
development.
Lloyd Harrell, City'Manager, stated that as the City began the
project with the Department of Defense proposal, one item alluded
to was the possibility of the City making use of a 1/2 cent sales
tax for economic development.
Betty McKean, Executive Director for Economic Development/Municipal
Services, stated that the 71st Texas Legislature passed a local
option sales tax to be used for industrial development activities
in an effort to give cities greater ability to develop their local
economies. The legislation provided for any city in a county of
less than 500,000 population that was not served by a Metropolitan
Transit Authority, to levy a sales tax of up to 1/2 of one percent
to fund an industrial development corporation. Voter approval
would be required and the election would have to take place on a
uniform election date. There was a broad definition of what the
projects could be used for. Many small cities used the tax money
to set up economic development offices so that they could respond
to requests for~proposals, etc. There was an increasing widening
of the definition of projects and a softening of the restrictions
on what cities were eligible. The money would be designated for a
specific project or just have a pool of dollars ready for when it
was needed. Most cities use one-half cent and allocate it for a
specific project. One of the benefits of this additional sales tax
for economic development was that the revenue collected from the
sal~ ~a~ would come from retail sale~ in Denton, and not just
Denton property owners.
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Page 4
Council Member Perry stated that a tax was a tax and Council needed
to think about that in a similar light. Money taken for economic
development projects could be used for infrastructure projects.
Resources used for one project would not be available for another.
Mayor Pro Tem Hopkins felt that it should be tied to something to
enhance the community so that the voters could see directly what
was involved. If the City received the bid for the facility, then
the tax would be enacted. If the City did not receive the
facility, then the tax would not be enacted.
Council Member Miller felt that if the City wanted to attract new
business, it needed to remain competitive with other cities.
The Council convened into the Regular Session at 7:00 p.m. in the
Council Chambers.
PRESENT: Mayor Castleberry; Mayor Pro Tem Hopkins; Council Members
Chew, Perry and Miller.
ABSENT: Council Members Smith and Brock
1. Pledge of Allegiance
The Council and members of the audience recited the Pledge of
Allegiance.
Agenda Item #3 was considered.
3. Consent Agenda
Perry motioned, Hopkins seconded to approve the Consent Agenda as
presented. On roll vote, Miller "aye", Hopkins "aye", Chew "aye",
Perry "aye", and Mayor Castleberry "aye". Motion carried
unanimously.
A. Bids and Purchase Orders:
Bid #1357 - Security and Fire Alarm Systems
State Contract - 1+ Long Distance Telephone and
Service
B. Tax Refunds
Considered approval of a tax refund to K. Dale
Brown in the amount of $793.43.
The Council returned to the regular agenda order.
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City of Denton City Council Minutes
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Page 5
2. The Council considered approval
appreciation for John Trent.
The following resolution was considered:
of a resolution of
No. RA92-006
RESOLUTION OF APPRECIATION FOR JOHN TRENT
Perry motioned, Chew seconded to approve the resolution. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
4. Ordinances
A. The Council considered adoption of an ordinance accepting
competitive bids and awarding a contract for purchase of materials,
equipment, supplies or services. (3.A.1. - Bid #1357, 3.A.2. -
State Contract)
The following ordinance was considered:
No. 92-083
AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A
CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR
SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE;
AND PROVIDING FOR AN EFFECTIVE DATE.
Perry motioned, Chew seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
B. The Council considered adoption of an ordinance canvasing
the returns an~ declaring the results of the recount held for the
regular municipal election, Place 6.
Mayor Castleberry read the official returns of the Recount
Committee.
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Page 6
The following ordinance was considered:
No. 92-084
AN ORDINANCE CANVASSING THE RETURNS OF THE VOTES CAST FOR
PLACE 6 ON THE CITY COUNCIL, FOLLOWING A RECOUNT HELD ON MAY
12, 1992 AND DECLARING THE RESULTS FOR THE ELECTION OF
COUNCILMEMBER TO PLACE 6 AT THE REGULAR MUNICIPAL ELECTION
HELD IN THE CITY OF DENTON MAY 2, 1992.
Perry motioned, Hopkins seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
C. The Council considered adoption of an ordinance implementing
a truck route on Hickory from Bell to Bradshaw and on Bradshaw from
Hickory to McKinney.
Rick Svehla, Deputy City Manager, stated that this ordinance would
ensure that trucks stayed on the truck route on Hickory and
Bradshaw.
The following ordinance was considered:
No. 92-085
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING CHAPTER 18
OF THE CODE OF ORDINANCES TO ADD PORTIONS OF EAST HICKORY AND
NORTH BRADSHAW STREET AS TRUCK ROUTES; AND DECLARING AN
EFFECTIVE DATE.
Chew motioned, Hopkins seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
D. The Council considered adoption of an ordinance approving a
contract for engineering construction period services with Alan
Plummer and ASsociates, Inc., during the construction of the
Wastewater Treatment Plant Phase I and II improvements. (The
Public Utilities Board recommended approval.)
Bob Nelson, Executive Director for Utilities, stated that this was
a contract for inspection services and general services for the
construction of the wastewater treatment plant. The designs were
complete on the plant and bids would be let this week. Bids would
be opened on July 2, 1992. This contract would be for the resident
and general representation while the project was under
construction.
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Page 7
Howard Martin, Director of Environmental Operations/Financial
Administration, reviewed the background of the project and the
scope of the work.
Lloyd Harrell, City Manager, stated that the $9 million cost for
the first phase allowed the City to implement the more stringent
standards on the wastewater treatment plant. The increased federal
standards required the spending of money on those items. This
translated into a 10% increase in the wastewater charges for the
next fiscal year. This was not due to growth or anything that the
City had done to improve capacity. It was due to the more
stringent federal standards.
Nelson stated that the Public Utilities Board was proposing a 10%
increase for the next fiscal year. Staff had proposed 15%. While
looking at the debt service increases due to these projects, it was
felt that a 10% increase was needed in the next fiscal year and a
25% increase in the following fiscal year.
Council Member Chew noted that the City saved a considerable amount
of money with the contract with Alan Plummer and Associates as it
was currently structured.
The following ordinance was considered:
No. 92-086
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT
BETWEEN THE CITY OF DENTON AND ALAN PLUMMER AND ASSOCIATES,
INC. RELATING TO PROFESSIONAL ENGINEERING SERVICES FOR
CONSTRUCTION REPRESENTATION FOR IMPROVEMENTS TO THE PECAN
CREEK WASTEWATER TREATMENT PLANT; AUTHORIZING THE EXPENDITURE
OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE.
Chew motioned, Hopkins seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
E. The Council considered adoption of an ordinance amending
tennis center fees to be charged by the Department of Parks and
Recreation. (The Park and Recreation Board recommended approval.)
Alicia Mentel, Superintendent of Leisure Services, stated that the
Park Board had reviewed the proposal and approved it. It was also
supported by the Denton Tennis Association. Currently and in the
pa~, rev~nu~ were below the expected 50% cost recovery for the
Goldfield Tennis Center. By approving the proposal, additional
revenues would be realized during the peak summer period which
City of Denton City Council Minutes
May 19, 1992
Page 8
235
started in the next few weeks. It was hoped that the additional
revenue would generate sufficient revenue to recover the expected
50% of total operating costs. It was felt that the fee submitted
was within the acceptable pricing level and that they provided for
minimal negative impact to users.
Mayor Pro Tem Hopkins pointed out that the fee structure was
confusing in regarding to court rentals and court reservations and
that the language needed to be clarified.
The following ordinance was considered:
No. 92-087
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING TENNIS
CENTER FEES TO BE CHARGED BY THE DEPARTMENT OF PARKS AND
RECREATION; AND PROVIDING FOR AN EFFECTIVE DATE.
Perry motioned, Miller seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
F. The Council considered adoption of an ordinance allowing
implementation of a Summer Food Service Program, funded by a
federal grant and beginning June 8th.
Alicia Mental, Superintendent of Leisure Services, stated that the
ordinance would allow for the implementation of a summer food
service program for children located in low income areas. Final
approval of the grant by the federal government was contingent upon
approval of the food service contract with the Denton Independent
School District. The program proposal was reviewed by the Park
Board on May 18 and positive comments were received regarding the
program. Children who participated in the free school lunch
program would ~be able to continue receiving a nutritionally
balanced lunch during the summer months when school was not in
session. The free cold sack lunches would be provided to youth at
no cost to the City as all expenditures would be reimbursed by the
federal government. The DISD would subcontract for preparation of
the lunches and were already familiar with the program
requirements. Lunches would be distributed in low income areas as
well as the after summer school action sites.
Council Member Miller asked if the City had an assurance from the
Department of Agriculture that the program would be approved if the
Council passed the o~dinance.
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Page 9
Mental replied that it was not a guarantee. Tentative approval had
been received contingent upon the approval of the City Council and
approval of by the School District.
The following ordinance was considered:
No. 92-088
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE
CITY MANAGER TO EXECUTE ALL DOCUMENTS AND AGREEMENTS, AS
REQUIRED, TO OBTAIN FUNDING FOR THE SUMMER FOOD SERVICE
PROGRAM; AUTHORIZING THE EXPENDITURE OF FUNDS AND ADMINISTER
THE PROGRAM; AND PROVIDING AN EFFECTIVE DATE.
Chew motioned, Perry seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
G. The Council considered adoption of an ordinance approving
the retainer of the lawfirms of Henderson Bryant & Wolfe, Whitten
and Loveless, and Wood Springer & Lyle to represent Chief Jez,
Officer Casteel and Officer Ray in pending litigation.
The following ordinance was considered:
No. 92-089
AN ORDINANCE OF THE CITY OF DENTON APPROVING THE RETAINER OF
THE LAWFIRMS OF HENDERSON BRYANT & WOLFE, WHITTENAND LOVELESS
AND WOOD SPRINGER & LYLE TO REPRESENT CHIEF JEZ, OFFICER
CASTEEL AND OFFICER RAY IN PENDING LITIGATION; APPROVING
CONTRACTS FOR LEGAL SERVICES; AND PROVIDING FOR AN EFFECTIVE
DATE.
Chew motioned, !Perry seconded to adopt the ordinance. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
5. Resolutions
A. The Council considered approval of a resolution approving
the Final Statement of Community Development Block Grant Objectives
and Projected Use of Funds.
Lloyd Harrell, City Manager, stated that this resolution followed
the recommendations of the Community Development Block Grant
Committee.
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Page 10
The following resolution was considered:
No. R92-023
A RESOLUTION BY THE CITY OF DENTON, TEXAS, AUTHORIZING THE
CITY MANAGER TO SIGN AND SUBMIT TO THE DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT A FINAL STATEMENT OF OBJECTIVES AND
PROJECTED USE OF FUNDS WITH APPROPRIATE CERTIFICATIONS, AS
AUTHORIZED AND REQUIRED BY THE HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1974, AS AMENDED; AND PROVIDING FOR AN
EFFECTIVE DATE.
Chew motioned, Hopkins seconded to approve the resolution. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
B.' The Council considered approval of a resolution
temporarily closing Charlotte Street from Bonnie Brae Street to
Avenue H on June 5, 1992, from 4:00 p.m. - 9:00 p.m. for a
neighborhood block party.
Catherine Tuck, Administrative Assistant, stated that this
resolution would allow the street closure for a block party. The
Owsley Coalition had made the request. The Coalition was formed to
bring United Way services to the citizens in this area of town.
The Denton Independent School District and the Police Department
had also been heavily involved in assisting this neighborhood.
Frank Davila pointed out that a number of representatives from the
community were at the meeting including the Camp Fire, Girl Scouts,
Police Department and United Way.
The following resolution was considered:
No. R92-024
A RESOLUTION TEMPORARILY CLOSING CHARLOTTE STREET BETWEEN
BONNIE BRAE STREET AND AVENUE H ON FRIDAY, JUNE 5, 1992; AND
PROVIDING AN EFFECTIVE DATE.
Perry motioned, Hopkins seconded to approve the resolution. On
roll vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye",
and Mayor Castleberry "aye". Motion carried unanimously.
C. The Council considered approval of a resolution
temporarily closing Fox Hollow Street, from Kenwood Street to
Timber Ridge Street, on May 30, 1992 from 6:30 p.m. to 8:30 p.m.
for a neighborhood block party.
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City of Denton City Council Minutes
May 19, 1992
Page 11
Catherine Tuck, Administrative Assistant, stated that this closure
was for another block party. All of the property owners had
consented to the closure.
The following resolution was considered:
No. R92-025
A RESOLUTION TEMPORARILY CLOSING FOX HOLLOW STREET BETWEEN
KENWOOD STREET AND TIMBER RIDGE STREET ON SATURDAY, MAY 30,
1992; AND PROVIDING AN EFFECTIVE DATE.
Chew motioned, Hopkins seconded to approve the resolution. On roll
vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
D. The Council considered approval of a resolution
postponing the regular City Council meeting of June 16, 1992, to
June 23, 1992.
Lloyd Harrell, City Manager, stated that Council would be attending
for the APPA meetin~ on June 16 which required a rescheduling of
the meeting.
The following resolution was considered:
No. R92-026
A RESOLUTION POSTPONING THE REGULAR COUNCIL MEETING OF JUNE
16, 1992 TO JUNE 23, 1992; AND PROVIDING FOR AN EFFECTIVE
DATE.
Perry motioned, Hopkins seconded to approve the resolution, On
roll vote, Miller "aye", Hopkins "aye", Chew "aye", Perry "aye",
and Mayor Castleberry "aye". Motion carried unanimously.
6. The Council was to consider an appointment to the North
Central Texas iCouncil of Government,s Regional Transportation
Council.
This item was pulled from consideration.
7. Miscellaneous matters from the City Manager.
Lloyd Harrell, City Manager, presented the following items:
A. Harrell noted two upcoming meeting which the Council
needed to be aware of. The first was the NCTCOG Annual Luncheon
City of Denton City Council Minutes
May 19, 1992
Page 12
239
and Workshop on June 12. The second was the TML Association of
Mayors, Councilmembers and Commissioners which was July 23-26.
Those interested in attending should contact the City Secretary.
B. There would be no work session next week unless the
Council so desired.
C. Harrell presented an update on the Department of Defense
Project. He stated that many people had studied the project in
various areas. There was a consensus to slow down the project. It
was first felt that the current TI building would be appropriate
for the Department of Defense needs. However, upon an
investigation of the actual square footage in the building, it was
determined that only a small portion of the hallway connectors
could be reclaimed for office use. The bottom line was that it
would not accommodate the minimum square footage required. The
current facility would have to be expanded 88,000 square feet.
Remodeling prices plus additional parking spaces would be extremely
high. The conclusion formed was that the total project cost would
be approximately $43-48 million for minimum requirements. The next
problem was the financing problem. The structure for the financing
would be that the City would have to develop a not-for-profit
corporation. That corporation would be the actual people who would
be in a position to buy the facility from TI and then lease it back
to the Department of Defense. To finance a debt in the range of
approximately $50 million, a cash flow of $5 million per year would
be required to pay off any loan to the not-for-profit corporation.
The only funds which the City had a guarantee on would be the half-
cent sales tax which was subject to voter approval. That would
provide $2.5 million or approximately more than half of the needed
amount to pay off the loan. The remaining portion of the loan
would have to come from a lease agreement which would be signed by
the Department of Defense. An associated problem was that because
the Department of Defense was a federal agency, it could not bind
one Congress for another Congress. A future Congress might not
approve continuation of the contract. There was a great deal of
difficulty finding private financing due to these circumstances.
Private financing had not been found with that kind of deal with
that kind of guarantee. Staff had discussed this locally, with
First Southwestand with other private financing individuals. Due
to the magnitude of the dollars, it was felt that the project
should slow down. At this point it was not very optimistic that
financing could be obtained.
8. There was no official action taken on Executive Session items
discussed during the Work Session.
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May 19, 1992
Page 13
9. New Business
There were no items of new business suggested by Council Members
for future agendas.
10. There was no Executive Session held during the Regular
Session.
With no further business, the meeting was adjourned at 8:00 p.m.
J~.n~i fer ~alters
Ci~ Secr~ary
City of Denton, Texas
BOB CASTLEBERRY, MAYOR
CITY OF DENTON, TEXAS/
ACC000$F