Minutes August 10, 1993188
CITY OF DENTON CITY COUNCIL MINUTES
AUGUST 10, 1993
The Council convened into the Special Call Session at 4:00 p.m. in
the Civil Defense Room.
PRESENT: Mayor Castleberry; Mayor Pro Tem Smith; Council Members
Brock, Cott, Perry, and Miller.
ABSENT: Council Member Chew
1. The Council considered a motion approving nominations to a
Sales Tax Citizens Advisory Committee.
Mayor Castleberry read the names for the Committee: Tom Harpool,
Joe Alford, Derrell Bulls, Dorothy Damico, Alton Donsbach, Neil
Durrance, Byron Hart, William Lucker, Roy Metzler, Bill Patterson,
Barbara Philips, John Ellis Price, Tom Sass, Ellen Schertz, and
Bill Utter, Sr.
Brock motioned, Smith seconded to approve the nominations. On roll
vote, Brock "aye", Cott "aye", Miller "aye", Smith "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
2. The Council received and considered budget presentations from
the following departments:
Lloyd Harrell, City Manager, stated that this was the second formal
study session on the proposed 1993-94 City budget. Department
directors would be making summary presentations on their individual
budgets concentrating on major changes from last year and major
policy issues contained within their budgets. Discussion the
following week would be information from questions from Council.
Regarding the Municipal Court, new legislation had passed
authorizing Denton's Municipal Court of Record. An individual task
force was working to move into that area. An analysis was needed
of revenue/expenditure needs to be accommodated within this budget
for the Court of Record.
City Services
General Government
Catherine Tuck, Administrative Assistant,- stated that the budget
included the City Manager's Office, the City Secretary and Council.
The proposed budget was similar to the previous year with the
addition of two packages. Those packages were for a public
information officer and a change in a secretary position from part-
time to full-time. Included in the secretary package was a one time
cost for a computer package.
Council Member Cott asked about the $20,000 from Utilities for the
Public Information Officer.
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Tuck replied that $20,000 would be shifted to the Utility Fund
which would allow him to divide his activities between utility and
general government duties.
City Manager Harrell stated that that would not be a new cost to
the City but would be a new cost to the general fund with a
corresponding decrease to the utility fund.
Council Member Cott asked if it were not done to that extent, could
utility rates be reduced.
City Manager Harrell stated that in the proposed budget $20,000
less would be reflected in the utility department salaries.
Tuck continued that there were decreases in the supplies, sundry,
and maintenance accounts with an increase in services. The largest
increase was in services for travel for CMO, City Secretary and
Council. Traditionally, not all seven Council Member attended
every event which would allow extra money for non-budgeted trips.
This was not the case with this Council. Core areas of interest
were maintained but there was less flexibility for unbudgeted
areas.
Council Member Cott asked if in the past, had the Council ever paid
its own way or paid for meals, etc.
Tuck replied that as the Council was a volunteer group, the City
paid costs for training and meetings but not for personal expenses.
City Manager Harrell stated that some communities paid a salary or
paid members on a per meeting basis but Denton's Charter did not
allow for that.
Mayor Pro Tem smith felt that the suggestions for travel were well
advised.
Leqal
Debra Drayovitch, City Attorney, stated that personal services was
up due to hiring individuals with more experience which required a
higher salary. Two packages were included in the proposed budget
for secretarial overtime and for printer maintenance for the
office. The services category contained a category for funding an
outside attorney to help rewrite the City's Zoning ordinance. No
n~w positions were requested.
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Council Member 'Cott asked if the $20,000 for the zoning ordinance
was the total additional cost. If the zoning ordinance rewrite
were not done, could costs be reduced.
Drayovitch replied that if the rewrite were not done that money
could be spent elsewhere or could be put back in reserve.
Council Member Cott asked if the $20,000 was the only amount to
spend for the zoning ordinance in the budget.
Drayovitch replied that her budget was the only place in the budget
for that project.
City Manager Harrell stated that if Council decided to leave
$20,000 in the budget, it would have to review what was being
proposed from the Land Use Planning Committee after the budget
process. At that point, Council would have to decide whether to
proceed or not proceed with the rewrite. There were no set aside
support funds for the project but there would be a commitment on
the Planning and Zoning staff for costs already incurred.
Council Member Brock asked if the City Manager anticipated that
special legal counsel would be needed just to study the ordinance
for the Council to decide whether it wanted to adopt it.
City Manger Harrell replied that there would be several levels of
review. There would be a briefing following the budget which would
not involve outside counsel detailing the concept and how it would
work. At that point, if Council agreed, staff would work with
outside legal counsel for analysis.
Council Member Brock asked that if the review were not done, then
the funds would not be spent.
City Manager Harrell replied correct and that the funds would
rollover into next year's fund reserve.
Planninq and Development
Frank Robbins, Executive Director for Planning, stated that the
Community Improvement Division had been merged with Utilities for
the proposed budget. The proposed budget reflected a reduction of
a professional position being transferred to Utilities. Supplies
and services were different from last year due to copying costs.
Staff was now producing their own copies. The Certified Local
Government survey would not be done.
Mayor Pro Tem Smith asked for the cost of the survey.
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Robbins replied that the Historic Landmark Commission had proposed
a multi-year program which was $10,000 worth of work as the State
reimbursed the City. It was felt that the survey could be done in
two years at a cost of $10,000 per year.
city Manager Harrell indicated that the proposed budget listed all
of the packages which were approved by the Executive Staff and
those which were not approved. This survey was not included in the
packages which were approved and if Council wanted to add it into
the budget, $3,954 would have to be added to the budget.
Council Member Cott requested that the move of the Community
Improvement Department be put in a total summary.
Mayor Castleberry asked for a new department organizational chart
plus a job description for that area.
Council Member Cott asked for a budget for just that department.
Robbins continued with the Building Inspections budget. Code
Enforcement would now be included in that budget which caused the
budget in that category to be increased. Services was increased
due to Code Enforcement mowing fund caused by Code Enforcement
being moved into Building Inspections. The proposed budget
reflected funding to purchase a new vehicle, a network card to
connect to the City's main frame and the purchase of a building
code book.
Council Member Cott asked if the work done by Code Enforcement had
ever been ranked by the type of enforcement done.
City Manager Harrell replied that that was a policy direction from
the Council as far as the level of enforcement for various issues.
Council Member Cott suggested that after budget, a study session be
done to go over the type of code enforcement on various issues.
Council Member Miller stated that Council needed to decide what
type of enforcement it wanted but that it must be careful with
standards which would be set.
Council Member Perry stated that some of that type of ranking had
been done in the Parks and Recreation area with the mowing of
public areas.
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City Manager Harrell stated that Council had had a similar
discussion last year when it was decided to terminate after hour
patrols by the Animal Control Officers and only respond on a
complaint basis.
Robbins continued with the Main Street budget which contained no
major changes in the proposed budget. The Community Improvement
Division had been merged with Planning Inspections and Main Street
budgets for the proposed budget. Robbins also reviewed the
contributions to outside agencies regarding the Human Resources
Committee and allocations to those various agencies.
Finance
Administration
John McGrane, Executive Director for Finance, stated that the
administration budget was primarily the same budget as last year.
Two packages were proposed for GFOA membership dues and to restore
document printing. Printing was taken out of the budget last year
but when the quality of the document was looked at along with the
increased requests for copies, additional funding was required for
the printing of the budget.
Council Member Cott asked about the development of a five year
financial forecast.
McGrane replied that a five year financial forecast had been
produced in the past but was not used much. The forecast was
discontinued but the Department would like to restore it as a new
document. McGrane continued with the miscellaneous expense and
contributions to other agencies. In the Utilities Department
Council increased last year the amount given for economic
development and that amount had been returned to the General Fund.
In the salary savings and salary adjustment category, if Council
approved the budget, this money would distributed to each
department per the adopted budget. The Laylor fund recipients were
noted in the various categories.
Council Member Cott asked for a discussion on cash projections for
the Laylor agencies such as on a quarterly basis.
City Manager Harrell stated that the Council was scheduled to
approve the budgets of the agencies at an upcoming Council meeting.
Mayor Castleberry asked about the dues and publications category.
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McGrane replied that that category contained city-wide dues for the
Texas Municipal League, the National League of cities and the
Council of Governments. Although the category was titled "dues and
publications" there were no publication fees included in the
amounts shown.
McGrane noted that the liability insurance had decreased due to the
City's risk management program.
City Manager Harrell added that the self-insurance fund had been
built up which also helped with the fund.
Municipal Judqe
Sandra White, Municipal Judge, stated that her budget remained the
same as last year. She had two requests for packages which
included funding for a permanent part-time judge for 20 hours of
work and a request for a computer to be hooked to the mainframe.
The part-time judge position would assist with the juvenile case
work and the computer request was to upgrade her office work.
Council Member Cott asked about the status of the City's Court of
Record work and was any of that anticipated in the budget.
White replied that the costs were not incorporated into the budget
as Court of Record bill had not been approved at the time of the
budget preparation. A task force was in place and was considering
the impact on various departments.
Purchasinq/Warehouse
Tom Shaw, Purchasing Agent, stated that there were no major changes
over the prior year budget. Two packages were submitted for an
upgrade of a PC and a DBase IV software for vendor update.
Council Member Cott suggested a study regarding the use of bar
codes at the warehouse.
Shaw continued with the Warehouse Working capital budget which
included funding for a new forklift and for a roof over an outdoor
concrete storage area.
Customer Service
Harlan Jefferson, Director of Treasury Operations, stated that
there would be a decrease for the Internal Audit function which was
shown as a new division for the 1993-94 budget. The proposed
budget also included dollars to reclassify a Customer Service
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Supervisor to a Customer Service Analyst and the upgrade of a
temporary position to full-time status with a zero net increase in
the baseline.
Treasury/Cashiering
Jefferson stated that this budget was similar from last year with
only an increase for additional phone costs.
Mayor Castleberry asked a reason for the parking meter receipts
loss of revenue.
Jefferson stated that the actual for 1991-92 increased due to
increased enforcement of fund collection.
Tax
Jefferson stated that the only change was a change in overtime. No
other changes were indicated in that budget.
Municipal Court
Jefferson stated that the budget reflected a mid-year appropriation
to add a 1/4 part-time position. The proposed budget also included
a lease for a copy machine and the addition of a new warrant clerk
with a zero net increase in baseline.
Accountinq and Budqet Operations
Kathy DuBose, Director of Accounting and Budget Operations, stated
that the major change in the proposed budget was the funding for a
Utility Cost Analyst paid for by Utilities and an upgrade of a PC.
Council Member Miller asked about administrative transfers.
DuBose replied that in prior years both direct costs and indirect
costs were listed. This year only direct costs were reflected.
McGrane stated that the administrative tran~fe~ were eo~t~ done
every year with an outside agency assisting in determining the
costs.
Council Member Chew arrived at the meeting.
Mayor Castleberry asked if the Utility Cost Analyst was a new
position.
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DuBose replied that it was added last year and was only shifted
from the department.
Internal Audit
Ann Bingman, Internal Auditor, stated that the 1993-94 budget was
the same as last year. The proposed budget showed the Internal
Audit function as a separate division while prior to 1993-94, the
Internal Audit budget was included with Customer Service. The
proposed budget also included money to restore telephone funding.
Information Services
Gary Collins, Director of Information Services, stated that his
budget was the same as last year with major increases for two
packages. One was for consulting services for the utility billing
system and payroll system. The second package was for a virus
diagnostic software package.
Council Member Brock asked for an explanation of the consulting
services.
Collins replied that in the past the City had paid a maintenance
contract for consulting services on the payroll and utility billing
system. That service had discontinued producing new releases and
new updates of the software so the City had since been contracting
for consulting services with former employees of the consulting
service.
Administrative Services
Mary Ramsey, Administration Services Manager, stated that her
budget included a lease for a network backup system.
McGrane stated that there had been a question regarding computer
systems. The budget did show the debt service requirement which
would be paid by either the ad valorem tax portions or transfers to
help pay that one year debt service on the general obligation bonds
both current and refunded certificates of obligations and
contractual obligations. This was for the current year only.
city Manager Harrell stated that the way the planning was put
together for the certificates of obligations, they would be sold
the last half of the next fiscal year.
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Municipal Services
Municipal Services/Economic Development
Linda Ratliff, Economic Development Coordinator, reviewed the
economic development projects which had occurred during the past
year. She stated that the proposed budget reflected no major
changes.
Environmental Services
Nonie Kull, Environmental Health Services Manager, stated that
there were no changes in the proposed budget over last year. The
reinspection fee instituted this fiscal year would net
approximately $6,757 to date with only one complaint regarding the
reinspection fee.
Library
Eva Poole, Library Director, stated that the proposed budget was
impacted by County funding with a decrease over the last several
years. Based on discussions with the County Judge, it appeared
that funding would decrease again this year. A second concern was
additional staff. Instead of filling her former position of
Library Services Manager, three lesser positions in the Library
would be added.
Parks and Recreation
Rich Dlugas, Superintendent of Parks and Recreation, presented the
budget proposals for Parks Administration, Leisure Services and
Parks Maintenance. In the Administration area, the proposed budget
divided the office supplies account among the Administration,
Leisure Services and Parks Departments to provide for a more
efficient management of departmental expenditures. In the Leisure
Services Department an increase was shown in office supplies due to
a restructuring of the office supplies account. Parks and
Recreation showed an increase for a full time mowing and part-time
grounds keeper for that division. Additional funds were requested
for contractual mowing at the Rails to Trails Park. Another issue
was the seller fee. According to the current City ordinance, the
City received 10% of gross receipts which were received from any
admission fee, beverage or food sales which occurred on public
property. This discouraged potential renters to use city
facilities and approximately 5-6 major rentals were lost due to
that fee. A second concern of the seller's fee was that the
provision stated that the fee had to be assessed on any public
property such as Fred Moore Park. The Park and Recreation Board
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approved an $8 per hour fee for the sale of food, beverage, etc.
and would be only at certain facilities and at the two major parks.
This would allow events at smaller parks which would encourage
additional renters. A second fee issue was the non-resident and
administrative fee. These fees were used to set program fees and
currently were based on a sliding scale depending on the cost of
the class. In past years this tended to discourage non-resident
participation and often resulted in a class not meeting. Staff was
suggesting to reduce the non-resident fees to .increase
participation. Area cities were surveyed and the highest area fee
was $3. Residents would be allowed to sign up first during the
week of registration before non-residents would be allowed to sign
up. The standard administration fee would be $3.50 and $7.00 for
non-residents. The Park and Recreation Board approved the fees.
Council Member Perry asked about the swimming pool water situation.
Dlugas stated that there was algae in water and the water level had
been taken down. When new water was added from the City system,
that water contained ammonia which increased the growth of the
algae. The water had now been cleared.
Council Member Perry asked for a total cost to support the athletic
programs.
Dlugas replied approximately $160,000 for athletic field
maintenance not including lighting.
Council Member Perry asked if alcohol was allowed to be sold at any
of the parks.
Dlugas replied it not was not allowed to be sold except for a co-
sponsored event by the City. Some parks allowed consumption of
alcohol in the parks or in the parking lots.
Council Member Miller asked for the amount of fees received from
the Civic Center rental.
Dlugas replied $613 was received last year. If the policy were
revised, he felt the City would get more renters for the Center.
Council Member Cott asked if any studies had been done regarding
the use of artificial turf on the playing fields and slower growing
grass on the non-playing fields.
Bob Tickner, Superintendent of Parks, stated that artificial turf
was used for a field with varied uses. The trend was to return to
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grasses and the upfront cost was extremely expensive for artificial
turf.
City Manager Harrell stated that he was not aware of any municipal
park facility with artificial turf.
Council Member Chew asked about staffing at the MLK Center.
Dlugas replied that he had had meetings with the MLK staff to look
at ways to fund a 1/2 time recreation leader or expand the building
attendant hours. The major concern was that if the full time
programmers were used for evening hours then they would not being
able to do programs during the day.
Council Member Perry asked how the staffing at MLK, due to the
volume, compared with standard staffing at other centers.
Dlugas replied that the staffing was the same as at other centers.
Part of the problem at MLK was the way the building was laid out
which made it difficult to supervise certain areas. There had been
one meeting with the Association regarding the general fund issue
and the $3.00 athletic participate fee to assist with maintenance
of the new parks at North Lakes.
Council Member Miller asked if there was a charge for use of the
lighted tennis courts.
Dlugas replied no but the courts had to be rented.
Council Member Miller expressed concern for this issue due to the
potential emotional conflicts over the issue.
City Manager Harrell stated that $17,000 would be spent at North
Lakes and that the proposal was that the fee be spread out to all
users of lighted city facilities. The charge would be on a per
team fee basis. The taxpayers would be picking up $62,000 worth of
maintenance fees for the additional fields. This would tie in with
a particular expense for the activity.
Council Member Chew felt that a $3.50 per child per activity seemed
expensive.
Dlugas continued with the recreation fund and provided examples of
activities funded through this account. There were no major budget
changes proposed for this division.
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Facilities Manaqement
Bruce Hennington, Facilities Manager, stated that this budget
included proposals for funding for the operation of the Denton
Municipal Complex, restoring utility funds, increasing Center for
the Visual Arts electrical funds, a Technician II position, ADA
renovations and library maintenance. It also included a reduction
of funds due to Service Center debt refinancing.
city Manager Harrell stated that the City paid the Greater Denton
Arts Council Laylor funds but that the City was responsible for
utility costs plus maintenance up to $6,000 and janitorial work.
Council Member Miller stated that a problem needed to be addressed
at the Library. The inner doors were very heavy doors and
wheelchair patrons were not able to open them. Currently those
doors were being kept open but would not be during the winter
months and thus a problem could develop.
Hennington replied that three options were being developed to solve
that problem. Automatic doors would cost over $7,000.
Mayor Pro Tem smith asked if the City were in general compliance
with the ADA regulations.
Hennington stated that a city would be in compliance when it had a
plan and followed that plan. Denton was probably above compliance
according to the law.
Council Member Brock asked for a review of what the City was
currently paying for rental space.
Hennington replied the rent was approximately $90,000 per year with
a 5% increase. Notification had been made that the City would be
moving out in 9 months. That rent money would be applied to
operation and maintenance for the Denton Municipal Center.
Human Resources
Tom Klinck, Personnel Director, stated that the Human Resources
administrative budget would overall be the same as last year. The
proposed budget included funding of $28,000 for legal assistance
and $19,000 for a wellness program. There would be a reduction of
$11,435 for tuition reimbursement costs and $7,200 in Special
Services which would be moved to a miscellaneous fund and would be
managed separately. One of the reasons ~or this was that the civil
Service exams were mandated by law and needed to budgeted directly.
The tuition reimbursement funds were being separated also because
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they were benefit costs which were allowed to be set by the Council
as a part of the budget process. Last year the reimbursement level
was at 80% and was proposed to be 50% this year. There were
approximately 79 participants and in order to meet the budget, the
amount of reimbursement had to be reduced. The wellness awareness
program would enhance awareness, education and communication for
wellness issues to the employees. Some of the initiatives already
in place included a smoke-free workplace, drug-free workplace,
employee assistance program, free use of the Parks and Recreation
facilities, and a discount program at the TWU Wellness Center. A
request was for $19,000 to assist in start-up fundamental
initiatives such as a risk appraisal to obtain a base line for all
employees. The money would also provide for incentives to recognize
and promote wellness, assess/implement pilot exercise alternatives,
and an educational series on various issues.
City Manager Harrell stated that the Wellness Committee was an
appointed committee of City employees. That Committee had been
working on wellness programs and working with employees to increase
wellness awareness. Their recommendation was for far more than the
$19,000 proposing for the program.
Klinck stated that the Committee recognized that in the long term,
wellness would have impact on insurance costs and productivity. He
continued that the proposed budget included $28,000 for legal
assistance for human resource issues due to an increase in federal
and local laws which were employment related. There was a need to
revise and implement new policies. The dollars would be used for
legal expertise in the area of human resources.
Council Member Miller asked for the amount of tuition aid the City
was currently spending.
Klinck replied that $11,435 in the baseline funding had already
been spent with the summer programs left to fund.
Council Member Miller asked if there was a constant dollar amount
and if there were greater participation, then the amount of
reimbursement was lower. Was that included in the Dolicy.
Klinck replied that the policy provided that each year the
reimbursement level would be set as a part of the budget process.
Betty McKean, Executive Director for Economic Development and
Municipal Services, stated that if the money were used by mid-year,
no one else would be reimbursed.
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Council Member Miller felt that it was an odd way to budget
something as important as to encourage employees to improve their
knowledge and skills. He suggested that Council look at that item
in terms of what it would cost to keep it at least at the current
level.
Klinck replied that to keep it at the same level would require
$7,750 at an 80% reimbursement level.
Council Member Chew agreed that this area should be increased
instead of being decreased.
Council Member Brock stated that last year the standards were
changed as to what would be reimbursed.
Compensation and Benefits
Klinck stated that the market analysis and adjustment philosophy of
the Council was that the City would strive to be competitive at the
50th percentile of the composite market based on actual salaries
paid within the market. With the implementation of the results of
the Mercer Study finalized in January of 1992, Council adopted a
two part compensation philosophy to assist in developing
recommendations. The City needed to remain competitive in the
labor market in order to attract new talent and retain the current
talent and make fiscally responsible and economic realistic
decisions relative to pay adjustments. Klinck reviewed the market
analysis and adjustments procedures dealing with the current
classification and compensation plan. Part of that included a
salary survey from comparable organizations that Denton drew labor
from and lost labor to. Last year there was no market adjustment
given with the market moving approximately 4-5%. This year it
appeared that the market was moving approximately 3-4% and added to
the lapse last year, the City was approximately 8.8% behind the
market. Klinck also reviewed compensation adjustments and the
philosophy of Council for those adjustments which was to
compensate employees in direct relation to the value of the
position and their contributions to the success of the City and
their department goals and objectives. As the City continued with
the program, refinements were needed to the pay system. It was
suggested to decrease the number of categories from four to three
levels of performance and reduce the quartiles from four to two.
The matrix would represent above and below market. It was important
to try and move higher performing and satisfactory employees to
market in four year if the employee exceeded performance and 6
years if the employee met performance. In budgeting for these
dollars it was assumed that the distribution would be 30% in the
exceeds category and 60% in the meets category.
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Council Member Miller stated that this would assume that the market
remained constant over the four year period.
Klinck replied yes. It was desired to award employees above the
market based on how the market was moving plus award all employees.
In order to do that it was recommended to move the ranges 2%. It
was also recommended that there be staggered implementation for
non-civil service employees with a Police and Fire movement of 4%
and a seasonal movement of 2%.
council Member Miller asked why Civil Service was not moving 4.6%
as well as other categories.
Klinck replied that a determination was how the market was moving
generally and the budgeted amount of dollars available. This was
a pay for performance as opposed to the step program for Civil
Service.
Council Member Miller requested information regarding the cost for
a 4.6% increase for Civil Service employees.
Klinck outlined a proposed incentive plus program which was an
immediate recognition awards program. This would provide immediate
recognition and cash awards for outstanding service. There would
be an average of $25-$250 with benefits and had budgeted for three-
quarters of the employees both civil service and non-civil service.
Council Member Miller asked if this would be a bonus or be built
into an employee's pay.
Klinck replied that it would be a cash award. Regulations required
it to be taxed. The guidelines provided for $25-250 per individual
or team member. The work would be contributed to a special project
outside normal job duties and responsibilities. It would be a
unique contribution beyond the usual and customary activities of an
individual job or work group responsibilities.
City Manager Harrell stated that the Public Utilities Board had
been suggesting this incentive plu~ program f~r th~ last several
years.
Mayor Castleberry asked if there were another method of incentive.
He felt that the money in a future check might not have a big
effect.
Klinck replied that a voucher would be used so that an employee
would receive immediate recognition.
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Council Member Cott asked if there would be checks or balance on
how the money was given.
Klinck replied that the department director would authorize the
amount.
Council Member Brock asked for the total dollar amount.
Klinck replied that there was $75,000 in the general fund. Each
department would have a budget which would provide for
approximately $150 for three-quarters of that department.
Council Member Miller stated that this was not in major budget
issues and felt that it should be.
Council Member Cott suggested that if Council proceeded with this
project that a 6 month review be done regarding the program.
Council Member Miller stated that these programs were good but was
not sure about adding a new program while cutting back on basic
programs.
Klinck continued with the proposed benefit enhancements which
included TMRS Senate Bill 505, prior service buy-back and Senate
Bill 593, military service credit and TMRS at 6%. Senate Bill 505
was a series of three benefits with the most important to improve
retirement eligibility. Currently the requirements were 10 years
of service at age 60, 25 years at age 50 and 28 years of service at
any age. The improved plan would required 10-24 years of service
eligible at age 60 and 24 years or more of service at any age. The
overall cost was approximately $15,000 to the general fund. Prior
service buy-back enabled an employee to buy time back for prior
municipal service. Military Service Credit allowed an employee
with 10 years of TMRS credit to purchase up to 60 months active
military service. Senate Bill 593 allowed for restricted prior
service credit for non-TMRS service anywhere in the united States
and enhanced retiree supplemental death benefits. The TMRS benefit
proposal included employees 1% , a benefit adjustment of 5% and a
City contribution of 7.5% for a 12.5% contribution. Fire employees
would contribute 4%, a benefit adjustment of 5% and a City
contribution of 9% for a total of 14%.
Council Member Miller asked if there was a difference of opinion
between what the city was saying it was doing and the perception
the firefighters had as to what the City was doing. He felt that
needed to be clarified.
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City Manager Harrell stated that staff was preparing a response.
One year a determination was made that in lieu of a pay increase
the City would pick up tha 5% of the employee share of TMRS. That
decision was applied to non-civil service and to the firefighters.
The firefighters stated that that was not an employee contribution,
it was a "pay kicker".
Drainage
Lee Allison, Director of Water Operations and Engineering, stated
that the issues facing drainage as reflected in the proposed budget
were operational as opposed to financial. Instead of trying to add
to resources, it was proposed to maintain at target level. There
was an indicated need of $1.3 million for all projects needed in
the City. Several years ago, drainage moved from the Street
Department and now working as a maintenance group. The proposed
budget did eliminate one position but also added several temporary
positions in order to assist with summer work load. A goal for the
year was to develop a written operation and maintenance guild for
maintenance of the drainage ditches.
Utilities
Bob Nelson, Executive Director for Utilities, stated that the
expected revenue in 1994 was approximately $69,108,600 with
expenses at approximately $68,982,000. Important factors regarding
the budget included the increased cost of TMOA, the increased cost
of natural gas, a reduction in personnel, and a restructured
organization. The average increase for an electric customer would
be 3.2% with an average residential customer's bill increasing from
$66.21 per month to $68.13 per month. In the water area, revenues
were expected to be approximately $13,825,000 with expenses at
approximately $13,458,000. Operations were fairly stable with a
need to prepare for the 1999 $2,100,000 Ray Roberts increase.
There would be a change in sales to Corinth and Lake Cities
Municipal Utility Authority to the UTRWD in 1994. The average
increase would be 4% with an average residential customer's bill
increasing $1.17 per month from $29.00 for 8,500 gallon average to
$30.37 per month. Wastewater exDected revenues were projected at
$8,607,000 with expenses at $8,067,000. Factors to be considered
with the wastewater area were increased environmental regulations,
debt service and ROI payments on a new $9 million plant, repayment
of past debt of $6 million to the Electric Department, and added
depreciation costs. It was anticipated that there would be a 13%
average increase with an average residential customer paying an
additional $2.16 per month from $16.59 to $18.75 per month.
Revenues for the sanitation fund were expected to be approximately
$5,094,600 with expenses to be approximately $5,087,000. Major
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City of Denton City Council Minutes
August 10, 1993
Page 18
considerations included restructuring and an emphasis on recycling,
a change in yard waste service, a composting program, new landfill
engineering/permitting costs. An average increase of 8% was
expected with a residential customer's bill increasing $.50 per
month to $11.15 per month. Fleet services would project a greater
focus on preventative maintenance, shop rates at 75% of private
market and a break-even operation.
Electric
Jim Harder, Director of Electric Utilities, stated that the
electric budget had been changed for the budget year 1993-94. The
electric fund would now be budgeted and reported on the Federal
Regulatory Commission's chart of accounts which was standard
reporting for the electric utility industry. Personnel was
decreasing by three individuals due to the restructuring of the
departments in the Electric Division. There was an increase in the
purchased power category due to the TMPA rate structure increase
and an increase in the rate charged to the City from TMPA. He
detailed rate projections for Denton electric based on the 1993
TMPA refinancing structure.
Nelson stated there was $10 million of contingency available for
the electric utility. There was a margin for any unusual years or
unusual expenditures.
Council Member Chew left the meeting.
Water
Lee Allison, Director of Water Operations and Engineering, stated
that for the third year in a row operation and maintenance expenses
had been reduced. Four major issues for the Water Department
included Lake Ray Roberts increases, growth, and regionalization in
dealing with the Upper Trinity Regional Water District. The
Construction Manager position would be eliminated with the
retirement of the individual in that position.
Council Member Brock asked what the plans were for an additional
water tower.
Nelson replied it was scheduled for the 1995 CIP.
hydraulic studies were in process at this time.
Preliminary
Wastewater
Howard Martin, Director of Environmental Services/Financial
Administrator, restated the wastewater expenses and revenues. If
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August 10, 1993
Page 19
fixed assets were removed from the operating budget there would be
almost the same budget as the prior year. The miscellaneous
category increase represented a repayment to the Electric
Department. The fixed asset category increase was due to
replacement of collectors and interceptors across the City. He
presented a projected percentage of rate increases for the next
several years.
Community Services
Bill Angelo, Director of Community Services, stated that there were
many changes in this proposed budget which included the creation of
a recycling budget, the transfer of the litter crew to the
commercial department, and a reallocation of an administrative
transfer. New programs included a fully automated study and pilot
for residential customers, a utility technician for residential
customers, a commercial driver, a commercial supervisor, a load
inspection program at the landfill, a chlorinated fluorocarbon
program at the landfill, gas monitors at the landfill, a landfill
engineer, geotechnical services at the landfill, Vision Denton, a
contribution to beautification, and a solid waste franchise fee.
New recycling programs included a recycling coordinator, an in-
house and office paper recycling program, a separate yard
waste/composting program, cardboard recycling, plastics recycling,
cable swap network, waste oil collection expansion and recycling
site expansions. Regarding the yard waste/composing program, yard
waste collection would be on Wednesday only. The material would be
taken to the landfill and reduced to a mulch. That mulch would be
given to the Wastewater Treatment Plant for co-composting with
sludge. Residents would be allowed 6 bags per week and anything
over that would be charged $.50 per bag and would be allowed one
cubic yard of brush.
Council Member Cott stated that the City could not look at break
even with these, it needed to make a profit.
Angelo stated that recycling would not pay for itself at this
particular point in time.
Council Member Perry stated that reduction of landfill waste would
be beneficial as opposed to making a profit.
Council Member Miller stated that there was a need to be careful of
any hidden costs which might be involved.
Mayor Pro Tem Smith asked for the guidelines as to how much to
reduce the flow to the landfill.
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August 10, 1993
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Angelo replied it was 40% but no one would be able to meet that
goal.
Mayor Pro Tem Smith asked for the percentage of reduction with
these proposals.
Angelo replied it would be approximately 15% for all of the
programs.
Mayor Castleberry felt that most of the major industries were
already recycling and selling their own products.
city Manager Harrell stated that the proposed budget recommended
discontinuing the pilot curbside recycling area.
Motor Pool and Fleet Services
Angelo indicated a major decrease in motor pool expenses. New
programs included two additional employees for Step - Up level BOM,
a truck wash facility, funding for EMIS enhancement/replacement and
implementation of inventory systems, part-time intern to maintain
interest allocation program and project motor pool revenues and
expenses, two part-time interns for four months to work on fleet
utilization study and mechanic training funds.
With no further business, the meeting was adjourned at 10:20 p.m.
SEq TA Y
CITY OF DENTON, TEXAS
CITY OF DENTON,
ACC0013A