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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. 229 City of Denton City Council Minutes May 19, 1992 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. 23O City of Denton City Council Minutes May 19, 1992 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. 231 City of Denton City Council Minutes May 19, 1992 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. 232 City of Denton City Council Minutes May 19, 1992 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. 233 City of Denton City Council Minutes May 19, 1992 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. 234 City of Denton City Council Minutes May 19, 1992 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. 236 City of Denton City Council Minutes May 19, 1992 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. 237 City of Denton City Council Minutes May 19, 1992 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. 238 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 $2.5 million or approximately more than half of the needed amount to pay off the loan. The remaining portion of the loan would have to come from a lease agreement which would be signed by the Department of Defense. An associated problem was that because the Department of Defense was a federal agency, it could not bind one Congress for another Congress. A future Congress might not approve continuation of the contract. There was a great deal of difficulty finding private financing due to these circumstances. Private financing had not been found with that kind of deal with that kind of guarantee. Staff had discussed this locally, with First Southwestand with other private financing individuals. Due to the magnitude of the dollars, it was felt that the project should slow down. At this point it was not very optimistic that financing could be obtained. 8. There was no official action taken on Executive Session items discussed during the Work Session. 24O City of Denton City Council Minutes May 19, 1992 Page 13 9. New Business There were no items of new business suggested by Council Members for future agendas. 10. There was no Executive Session held during the Regular Session. With no further business, the meeting was adjourned at 8:00 p.m. J~.n~i fer ~alters Ci~ Secr~ary City of Denton, Texas BOB CASTLEBERRY, MAYOR CITY OF DENTON, TEXAS/ ACC000$F