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Minutes August 31, 1993253 CITY OF DENTON CITY COUNCIL MINUTES August 31, 1993 The Council convened into the Work Session at 5:15 p.m. on Tuesday, August 31, 1993. PRESENT: Mayor Castleberry; Mayor Pro Tem Smith; Council Members Brock, Chew, Cott, Perry, and Miller. ABSENT: None 1. The Council convened into the Executive Session to discuss the following: A. Legal Matters -- Under Sec. 2(e), Art. 6252-17 V.A.T.S. Considered litigation against design architects of Martin Luther King, Jr. Recreation Center. Bo Real Estate -- Under Sec. 2(f), Art. 6252-17 V.A.T.S. 1. Considered purchase of land on Foster Road. Personnel/Board Appointments -- Under Sec. 2 (g), Art. 6252-17 V.A.T.S. 2. The Council received a report and held a discussion regarding the submission of the Denton Rails to Trails project and University Drive landscaping as candidates for Statewide Transportation Enhancement funding and gave staff direction. Frank Robbins, Executive Director for Planning and Development, stated that the Texas Department of Transportation had notified the City that enhancement funding had to be submitted by November 6, 1993. The North Central Texas Council of Governments had notified the City that submission to them would be in mid-October. This program was part of the 1991 ISTEA, Which provided for 10% of federal highway funding to states to be spent for enhancements on a 80% federal-20% state or local match basis. Two projects likely to received funding were the Rails to Trails project and the University Drive landscaping project. The Rails to Trails program would cost $400,000 which included $50,000 to move and-renovate the train station. The train station'project could be a separate project from the Rails to Trails project. The University Drive landscaping project would cost approximately $149,000. The project would include an entranceway at IH35 to Mesa; trees, grass and irrigation in the three medians; grass and irrigation in existing medians - Malone to Alice;, and grass and irrigation in existing medians - Alice to Carroll. Four miles of the project were in the city limits of Corinth and they had indicated a favorable response to the proposal. 254 City of Denton City Council Minutes August 31, 1993 Page 2 Council Member Brock asked if Corinth would make parks along the trail. Robbins replied yes that they had indicated such. The State widening of University Drive to six lanes was scheduled for the year 2000 - 2001 and was an issue in what the City would do with the medians. Most of the existing medians would not be present after the reconstruction with only very narrow median lanes remaining. The three medians from Malone to Alice would have an area for plantable trees. An alternative would be to plant those areas now with grass to look like the other medians recently completed. There was a resolution which the Council would consider at the Regular Session and contained two blanks for the amount of money the Council wished to spend for the two projects. Council Member Brock asked what kind of indication the City had that the University Drive landscaping project was what the State would be interested in funding. Robbins replied that the State required a specific kind of project such as landscaping, which was a category qualified for the funding. Council Member Perry asked that if the City was successful in receiving the funding, what amount would the City be responsible to contribute. Robbins replied that the project would be an 80/20 split. Whatever the Council decided to do, the City would be responsible for 20% of the project cost. Council Member Perry asked about the Mesa project. Robbins replied that trees would be planted on the outside of the area with pavestone in the middle of the island. Mayor Castleberry stated that in regards to the train station, there was no site selected for the station and there would be oDeration and maintenance co~t~ with possible vandalism. Council Member Miller felt that the proposal as recommended made sense and that the resolution should reflect those figures. Mayor Castleberry asked if the train station would have to be moved in 6 months. Robbins stated that it would have to be moved in three years. 255 City of Denton City Council Minutes August 31, 1993 Page 3 Mayor Castleberry indicated that he understood that the Railroad would wait only 6 months before destroying the building. Robbins replied that he had no knowledge of that. Council Member Chew felt that the station should be included in the proposal for the best chance of receiving the funding. Mayor Castleberry asked about the time frame for receiving the funding. Robbins replied that the funds could potentially be received within 6 months as next year's applications would be due in January 1994. 3. The Council considered a report and the adoption of an ordinance amending the City's solicitation ordinance. Catherine Tuck, Administrative Assistant, stated at its last meeting Council had requested an ordinance relating to this issue. Options for the Council included passing the ordinance as presented, make amendments to the proposed ordinance or ask for further discussion. There were two ordinances for Council consideration. One had an insurance requirement while the second did not. The permitting process would be through the Police Department with a 15 day prior notice for the application process. Two solicitation permits per year for three days each per organization would be permitted. The hours of solicitation would be from 7:00 a.m. - 7:00 p.m., Monday through Saturday. An individual would need to be 18 or older and the organization would be required to provide solicitors with safety vests to be worn at all times. The application would include a description of the organization and location of its headquarters, the purpose for the solicitation, a description of who or what organization would be receiving the funds, a description of solicitation methods, the dates for solicitation, a disclosure statement for each'conviction of a crime for the applicant or any agent of the applicant, an affidavit that 75% of the money collected would be used to benefit the stated purpose of the solicitation, proof of tax exempt status, and the execution of a hold harmless and indemnification agreement. The organization would also be required to provide proof of insurance with limits of at least $1,000,000 per person, $5,000,000 per occurrence and $100,000 for property damage. The approximate cost to an organization for $1,000,000 instead of $5,000,000 of insurance would be $3,500 for a year coverage or $1,500 for a one day policy. Many of the smaller organizations probably would not be able to obtain such coverage. Decause there was a penaltY clause associated with the proposed ordinance, the City Attorney had advised her that the ordinance would have to be published in 256 City of Denton City Council Minutes August 31, 1993 Page 4 the newspaper for proper notification. Council Member Cott asked if there were a way to bypass that notification requirement for the newspaper. City Attorney Drayovitch stated that the law did not require the adoption of ordinance in order to grant an exemption. The State law indicated that no person could solicit in the roadway except that a charitable organization might stand in the roadway to solicit contributions if authorized by the local authority. That authorization did not require an ordinance. If the Council repealed the existing ordinance, which was not on the agenda, the Council could grant an exemption if it had received such a request. Council Member Cott asked that if the Council repealed the existing ordinance, could it grant an exemption. city Attorney Drayovitch stated that the exemptions would be granted on a request only basis or have a permitting procedure~ Council Member Cott asked about the individuals who held car washes on University Drive. If the Council adopted an ordinance with an insurance provision, would they be required to have the insurance. City Attorney Drayovitch replied that if the ordinance were enforced, they would be required to have the insurance. Council Member Miller stated that there were two aspects of this issue. One was the immediate request of the fire fighters which he felt the Council would not be able to move in time for that request. The second aspect was if the Council wanted to repeal the current ordinance. There were court decisions which might effect any decision of the Council and it had been suggested that if the Council only allowed charitable organizations to solicit, the provision might not hold up in court. His suggestion would be to keep this a priority item and have staff and Legal provide Council with consequences and recommendations regarding the proposal. He did not want to hurry the process and wanted more information such a~ how other ~itie~ p~o~eeded with their provlsion~. Council Member Perry asked that if Council maintained the present ordinance, were there any provisions for exceptions. City Attorney Drayovitch replied no. Council Member Perry stated that he was willing to discuss a proposed ordinance at this time but was not sure if he would be in favor of repealing the current ordinance. He was not sure that the 257 City of Denton City Council Minutes August 31, 1993 Page 5 current, ordinance was not the best for the City. Council Member Brock stated that the provisions of such an ordinance needed to be studied very closely from a legal perspective and the Council should not rush into any changes. Council Member Chew did not want to study the proposal for an extended period of time but to make a decision as soon as possible. The current ordinance was not being enforced and as a result the fire fighters were being penalized by not being able to solicit for their charity. He questioned if there were a way to allow the fire fighters to solicit this year. Mayor Castleberry stated that there was nothing the Council could do at this point unless it held .another meeting before the date required by the fire fighters. Mayor Pro Tem Smith stated that neither of the proposed ordinances were in the guidelines suggested by the Legal Department. She agreed with Council Member Chew that the Council would like to grant a special privilege to the fire fighters but that could not be done. She felt that the City was falling down on enforcing the ordinance and that was a dangerous situation. city Manager Harrell stated that he wOuld work with the Police Chief and indicate the Council's strong desire that the ordinance be aggressively enforced. The ordinance had been enforced but a greater effort would be made to control those situations. Council Member Miller indicated that he was in favor of proceeding with a draft ordinance for future study consideration. Council Member Brock stated that the Council had not been continuing to discuss this item during the year as Council had voted 4-3 to drop the issue and did not want anY changes in the current ordinance. Council was not dragging the issue as it had decided to not consider the issue any further. Mayor Castleberry indicated that the consensus of the Council was that there was nothing it could do at this meeting, that it would continue to look at the issue, to take more time to study the issue but not a substantial period of time and was interested in stricter enforcement of current ordinance. 4. The Council received and considered a recommendation from the '91 Committee regarding amendments to the 5 year Capital Improvement' Plan and gave staff direction. 258 City of Denton City Council Minutes August 31, 1993 Page 6 Rick Svehla, Deputy City Manager, stated that Council had made a prior decision to use existing sold bond money to help with the 1993-94 CIP plan for road construction and street projects. There were several categories in those two years which dealt with specific kinds of projects such as reconstruction of streets. Council had asked for a recommendation from the '91 Committee. The Committee approved the list of projects entitled "93-94 CIP Projects $1,318,250" which was included in the agenda back-up. Council Member Perry asked if the 0pticom system was included in this project. Svehla replied no that it was in the ISTEA project from several months ago. Council Member Perry asked for a schedule for the Opticom system. Svehla replied that it was a three year program but that there was difficulty in getting the Highway Department to move on the projects. Staff was preparing a report for Council. Consensus of the Council was to proceed as suggested by staff. 5. The Council received a report and held a discussion regarding the proposed utility rates. Due to a time constraint, this item was considered during the Regular Session under Miscellaneous Matters from the City Manager. The Council convened into a Special Call Meeting on Tuesday, August 31, 1993 at 7:00 p.m. in the Council Chambers. PRESENT: Mayor Castleberry; Mayor Pro Tem Smith; Council Members Brock, Chew, Cott, Perry, and Miller. ABSENT: None 1. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance. 2. The Council considered approval of the minutes of the Regular Meeting of August 3, 1993 and the Special Call meeting of August 10g 1993. 259 City of Denton City Council Minutes August 31, 1993 Page 7 Smith motioned, Chew seconded to approve the minutes as presented. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 3. Public Hearings A. The Council held a public hearing regarding the adoption of the proposed 1993-94 City of Denton Annual Program of Services. The Mayor opened the public hearing. Ken Gold stated that he was requesting again that the Council give the majority of fire fighters an average raise as the rest of the City employees would be receiving. Four out of five fire fighters did not receive step raises and they would be receiving a 4% across the board increase unless Council took another action. The fire fighters provided central services to the City and deserved an average raise. The fire fighters needed more pay and not more types of pay. Judy Spalding stated that she was in support of full funding for the human services recommendations. The need for services in the community was rising and the available resource sources were continuing to fall. She was involved in the Teen Parenting Program through the Denton ISD and that program needed the City's funding to continue. She urged the Council's consideration of full funding of the Human Services Committee's recommendations. Dorothy Damico stated that she was speaking on behalf of the Human Services Committee. The Human Services Committee had recommended funding to eight agencies which included - (1) Friends of the Family and the City-County Day Nursery which provided day care for young parents, (2) SPAN which provided meals and homemaker services to the elderly, (3) RSVP which provided a service to keep retired people actively volunteering in the community, (4) Friends of the Family which provided counseling and shelter to families who were victims of violence, (5) Community Food Room which provided emergency food for individuals in unsettled situations, (6) HOPE which provided counseling and financial assistance to households at risk of becoming homeless, (7) Teen Parenting Progran provided day care for children so that parents could stay in school. The Committee had received requests for funding of needs which needed to be met but that could not be funded for financial reasons. She asked the Council to fund the amount recommended by the Human services committee. 260 City of Denton city Council Minutes August 31, 1993 Page 8 Alton Donsbach stated that he would like to see City finances, taxes, programs of services, etc. projected into the future. There was a theory that there was a limitation of only a certain amount of money to fit into available resources. He felt that should be turned around as these were services to keep Denton functioning and the theory should be how to make the dollars work for those needs and services. If the City needed more money, the Council needed to let the citizens know that situation. Businesses projected out into the future and the City needed to do the same. Kathy Devine stated that she had some questions for the City Manager. She understood that the present budget was based on an increase in property tax. City Manager Harrell replied that the proposed budget which had been presented to Council was predicated on an effective tax rate which was $.7490. Devine stated that with the increase in proposed taxes, there would still be a revenue which was $500,000 less than expenditures. City Manager Harrell stated that Devine had indicated that there would be a tax increase. The effective tax rate would actually bring in the same amount of property tax revenue as last year. The city Council, at least in the past, had traditionally adopted a philosophy that an appropriate fund balance was approximately a 10% fund balance. To get to that 10%'level, it was true that some fund balance had been used from previous years. Devine stated that it would be fair to say that the proposed expenditures were $500,000 larger than proposed revenues. City Manager Harrell replied that that was correct provided that the assumption was made that all of the expenditures would be met at 100% and all revenues. Traditionally that was not the case, but if that did happen in that manner, the answer would be yes. Devine stated that three years ago her business had a problem in that ~h~ had a 50% d~cr~ase in r~venue~ and ~he had asked a bank for a loan. She was told by the bank to cut expenses by 50% which she did and now her business was doing well. Deficit spending was not working at the federal level, did not work for a family or business and she felt it would not work for the City Council. She recommended that Council cut expenses and suggested beginning with the utility miscellaneous category. Jane Malone, President of Denton Soccer Association, stated that her concern was regarding an item which would be an expense for 261 City of Denton City Council Minutes August 31, 1993 Page 9 sports which was not in the budget. She was concerned that not all items were indicated in the budget and money would have to be found later at the children's expense. Ken Dickson stated that he was in support of the items in the budget relating to recycling. Quality of life and environmental stewardship were themes for the future of Denton. Recycling was an area in which Denton could do much with great opportunities in the City. He encouraged the Council to keep in the budget the options for landfill needs and the recycling coordinator to focus the needs and direction of the programs. He also encouraged the Council to expand the drop-off programs. He stated that Council should take a logical first step to a recourse recovery program and approve the proposals for recycling. Sara Carey spoke in support of the Human Services Committee recommendations. She worked with the North Texas Community Clinics which received CDBG funding and enhanced the organization's ability to receive other funding. The clinic was contributing to the quality of life in Denton and she requested Council consider the funding allocations which were recommended by the Human Services Committee. Joe Dodd stated that property was worth less in the City and residents would be charged more for it. He resented the Council's actions when the Council lacked the sensitivity and creativity to live within the City's means. He did not expect the Council to change but felt that the Council should feel bad about what it would do to the citizens. Byron Woods stated that page 99of the budget indicated the number of City employees per 1000 residents. In 1985, there were 11.3 employees per 1000 residents. In this year's budget there would be 13.5 employees per 1000 residents which was a 20% increase. He questioned if the City could do more with less. He suggested having fewer employees making more money and doing more. Through attrition would it be possible to work with the optimum number of employees and give those employees a pay raise. Troy Glenn stated that there was no need to increase taxes. The Council needed to cut expenses and he advised Council that it was not wise to increase taxes. The Mayor closed the public hearing. 262 City of Denton City Council Minutes August 31, 1993 Page 10 4. Citizen Reports A. The Council received a citizen report from Todd Sons regarding A.M. Baker's produce stand on Mingo Road and Ruddell Street. Mr. Sons stated that on June 21, 1993, Mr. Baker receive a call from Ron Rais indicating that the City had received complaints concerning his produce sale at Mingo and Ruddell. Sons had not been able to track down any complaints and only had a letter of complaint which had no date and had the name blacked out. The second paragraph of the complaint had some questionable statements. It indicated that complaints had been made to the Traffic Control Department about cars parked on Ruddell which caused a hazard for those turning off of Mingo onto Ruddell. Sons indicated that he had a copy of the 1991 traffic work orders and there were no complaints for that intersection indicated. A second item was that Mr. Baker was never informed to move any distance in any direction from the street. In 1991 Ron Rais stated that Mr. Baker was in violation of the zoning for a multifamily-1 location. He suggested that Mr. Baker make application to rezone the area and that he could continue to sell produce until the application was completed. Upon starting the paperwork, Ms. Mitchell from the Planning Department indicated that the rezoning would be a waste of time and money. Mr. Baker began making arrangements to move his business to a location on East Oak Street. After talking again with Ron Rais about the East Oak Street location, Mr. Rais indicated that he had found an old statute which would allow Mr. Baker to remain on Ruddell and Mingo. Roby Baughman was present at that meeting and Ms. Mitchell indicated that if Mr. Baker received any complaints, individuals could call her. Under those circumstances, Mr. Baker bought the rest of the lot understanding that he had the right to sell produce from that area. The written complaint indicated that other sellers had joined Mr. Baker on the property with larger trucks bringing in the produce. Sons stated that there were never any other sellers with Mr. Baker and Mr. Baker only had two regular sized trucks. Sgt. George with the Police Department had indicated to Sons that he had never observed a traffic problem in the area. Mr. Baker always complied with whatever was required and Sons was asking to allow Mr. Baker to have his business back. Frank Robbins, Executive Director for Planning, stated that staff did tell Mr. Baker that he could continue to sell his produce at the site which was a mistake. At the time, Code Enforcement thought that ~his would b~ a u~ which would not ~ause a problem. The property had expanded and the use of the property had also expanded to a point at which the city asked that buildings not be built on the property. The City did receive a complaint. Cars 263 City of Denton City Council Minutes August 31, 1993 Page 11 were observed by staff to park in the street and buy produce from the property. This was a zoning violatfon and a safety issue. Staff tried to communicate to Mr. Baker in 1992 that if there were continued problems such as individuals stopping in street that he would be asked to leave. That was what had happened. He had discussed with Mrs. Baker on three occasions the potential of solving the problem with the completion of a planned development zoning. Council Member Cott asked what was wrong with selling the produce in 1992 with the zoning in place. Robbins replied that retail sales were not allowed in a multi- family zoning district and there was a specific provision in the Zoning Ordinance which prohibited across the curb sales. Council Member Cott asked if agricultural sales were the same as retail sales. Robbins relied yes. Council Member Perry asked if staff had followed through with the complaint of traffic slowing and making a hazard in the area. Robbins replied that he had seen individuals parked near the intersection. Council Member Cott asked if staff was working on a planned development with Mrs. Baker. Robbins replied that staff was having discussions with Mrs. Baker. Sons replied that that action would cost Mr. Baker approximately $600-800 to move 25 feet from curb. Council Member Cott asked Sons what was an alternative for Mr. Baker. Sons replied that from Mr. Baker's perspective, he would have bought the property on East Oak Street and would not have continued to buy land where he did. He questioned what happened to the old statute which allowed him sell the produce in the past. Why did that not apply in 1993 as it did in 1991. City ManaGer Harrell stated that the basis for the misunderstanding was that when Mr. Baker was contacted in 1992, he felt that he was told one thing whereas the documentation in the files indicated that the conversation dealt with the fact that Mr. Baker could 264 City of Denton City Council Minutes August 31, 1993 Page 12 continue to operate but if further complaints were received, the City would have to take some kind of action. In 1992 it was an innocent use of the land with no complaints. When a complaint was received in 1993, the City had to enforce the regulations. Sons replied that the 1993 complaint had items in it which were not true. Mr. Baker had an opportunity to move to East Oak Street and did not because he was sure he could stay where he was. B. The Council received a citizen report from Dessie Goodson regarding general issues affecting the City. Ms. Goodson stated that the code enforcement ordinance for the 10 day requirement for high weeds and grass violations was'confusing. There was a noise ordinance and yet Council granted an exemption to Kahunas which disturbed the neighbors. The community was upset and demanded an explanation as to how an unqualified individual such as Mike Alexander could be appointed to the Animal Advisory Board. She asked Council if they were aware of how upset individuals were regarding the elimination of the SPAN trolley stop at Nottingham and Emerson. She had started a petition to have the trolley stop returned. She had appeared at the Council on May 10 with 10 issues and so far only 2 had been resolved. 5. Public Requests A. The Council considered an exemption to the noise ordinance for the First Baptist Church of Krugerville on Saturday, September 11, until 11:00 p.m. at the North Texas State Fairgrounds. Catherine Tuck, Administrative Assistant, stated that this request was for a fund raiser for the Church's building fund. The exemption would be until 11:00 p.m. Council Member Perry asked where the event would be held on the grounds. Rev. Redfearn, Pas%or of Firs% Baptist Church of Krugerville, stated that the event would be held in the rodeo arena. Council Member Perry asked if they would be using that speaker system. Redfearn stated that there would be three separate quartets with their own sound system. 265 City of Denton City Council Minutes August 31, 1993 Page 13 Council Member Perry asked why the Church needed an exemption past 10:00 p.m. Redfearn indicated that it would be a precautionary measure as there might be the possibility that they would go over an hour. Brock motioned, Miller seconded to approve the request. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "nay", and Mayor Castleberry "aye". Motion carried with a 6-1 vote. B. The Council considered approval of a resolution temporarily closing a 20 foot portion of Avenue E from a point 100 feet north of Eagle Drive to a point 120 feet north of Eagle Drive on September 18, September 25, October 9, October 23, November 6 and November 13, 1993 for pedestrian safety during UNT home football games. Catherine Tuck, Administrative Assistant, stated that the request was from the UNT Athletic Department. A small portion of Avenue E would be closed for three hours for pedestrian safety between the Advancement Center and Avenue E to Fouts Field for home games. Council Member Brock asked how traffic would be diverted in the area. Eric Jackson, chief of UNT Police Department, stated that those areas would be staffed and officers would take care of traffic control. The following resolution was considered: NO. R93-049 A RESOLUTION TEMPORARILY CLOSING A 20 FOOT PORTION OF AVENUE E FROM A POINT 100 FEET NORTH OF EAGLE DRIVE TO A POINT 120 FEET NORTH OF EAGLE DRIVE; AND PROVIDING AN EFFECTIVE DATE. Perry motioned, Brock seconded to approve the resolution. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye"~ and Mayor Castleberry "aye". Motion carried unanimously. 6. Consent Agenda Perry motioned, Smith seconded to approve the Consent Agenda as presented. On roll vote, Brock "aye", Cott "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". 266 City of Denton City Council Minutes August 31, 1993 Page 14 Motion carried unanimously. A. Bids and Purchase Orders: 1. Bid #1529 - Precast Manholes 7. Ordinances A. The Council considered adoption of an ordinance accepting competitive bids and awarding a contract for purchase of materials, equipment, supplies or services. (5.A.1. - Bid #1529) The following ordinance was considered: NO. 93-152 AN ORDINANCE ACCEPTING A COMPETITIVE BID AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIESOR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. Smith motioned, Perry seconded to adopt the ordinance. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aYe". Motion carried unanimously. B. The Council consider adoption of an ordinance authorizing the City Manager to execute an agreement with First Southwest Company for professional services in accordance with the provisions of State law exempting such services from the requirement of competitive bids. John McGrane, Executive Director for Finance, stated that the ordinance allowed for a contract with First Southwest Company for the calculation of arbitrage. Positive arbitrage occurred when the interest income from the proceeds of a bond sale exceeded the bond payments. In that case, federal law required the City to rebate to the federal government that amount of interest earned. The following ordinance was considered: 267 city of Denton City Council Minutes August 31, 1993 Page 15 NO. 93-153 AN ORDINANCE AUTHORIZING THE CITY. MANAGER TO EXECUTE AN AGREEMENT WITH FIRST SOUTHWEST COMPANY FOR PROFESSIONAL SERVICES IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH SERVICES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. Cott motioned, Chew seconded to adopt the ordinance. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. C. The Council consider adoption of an ordinance authorizing the City Manager to execute, on behalf of the City of Denton, an interlocal agreement with the Texas Water Commission for the acceptance of grant funds to be utilized to implement a used oil recycling program. Bill Angelo, Director of Community Services, stated that the Council had earlier authorized staff to submit a grant request to the Texas Water Commission for the expansion of the City's used oil program. The City had received the grant offer from the Commission in the amount of $20,000 which would allow the City to install five used oil receptacles. The City's obligation would be to provide for the disposal of contaminated oil collected at the centers. This should not exceed over $6000 for the next year. The following ordinance was considered: NO. 93-154 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE, ON BEHALF OF THE CITY OF DENTON, AN INTERLOCAL AGREEMENT WITH THE TEXAS WATER COMMISSION FOR THE ACCEPTANCE OF GRANT FUNDS TO BE UTILIZED TO IMPLEMENT A USED-OIL RECYCLING PROGRAM; AND PROVIDING FOR AN EFFECTIVE DATE. Cott motioned, Brock seconded to adopt the ordinance. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 8. Resolutions A. The Council considered approval of a resolution approving the submission of two proposed projects to the North Central Texas 268 city of Denton city Council Minutes August 31, 1993 Page 16 Council of Governments and the Texas Department of Transportation as candidates for Statewide Transportation Enhancement Funding. The following resolution was considered: NO. R93-050 A RESOLUTION APPROVING THE SUBMISSION OF TWO PROPOSED PROJECTS TO THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS AND THE TEXAS DEPARTMENT OF TRANSPORTATION AS CANDIDATES FOR STATEWIDE TRANSPORTATION ENHANCEMENT PROGRAM FUNDING; AND PROVIDING FOR AN EFFECTIVE DATE. Perry motioned, Smith seconded to approve the resolution with the Rails to Trails amount of $400,000 and the University Drive amount of $149,000. On roll vote, Brock "aye", Cott, "nay", Miller "aye", smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried with a 6-1 vote. B. The Council considered approval of a resolution approving the fiscal year 1994 financial plan of the DENCO Area 9-1-1 District, pursuant to Article 1432e V.A.T.A. John McGrane, Executive Director for Finance, stated that Mike Pedigo was here to present the item. Mike Pedigo, Executive Director for 9-1-1, stated that State legislation required a financial plan to be presented to each of the cities it served and required a majority approval from those city councils. With the growth in the CQ~nty, the Denco district experience a growth in revenues and was able to maintain the 3% service fee. The projected actual growth for next fiscal year was 4.7% in revenues which was 11% over last year. A 3% increase was anticipated in expenses and of that 3% there was a small increase in personnel costs. There was a 27% increase in direct services as a result of a contract service approved by the Public Utilities Commission with the phone company. Another reason for the increase was due to an increase in customers serviced. During the year, Denco provided for over 98,000 911 calls in the District and of those 22.6% of the calls were in Denton. An emergency medical dispatch program had been started and in the next fiscal year they would be purchasing a new switching system. Other objectives for the next fiscal year included a feasibility study to combine efforts of the various jurisdictions to make them more efficient and two additional classes for the senior population and uses in businesses. The following resolution was considered: 269 City of Denton City Council Minutes August 31, 1993 Page 17 NO. R93-051 A RESOLUTION APPROVING THE FISCAL YEAR 1994 FINANCIAL PLAN OF THE DENCO AREA 9-1-1 DISTRICT, PURSUANT TO ARTICLE 1432E V.A.T.A.; AND PROVIDING AN EFFECTIVE DATE. Miller motioned, Chew seconded to approve the resolution. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. C. The Council consider approval of a resolution authorizing the City Manager to execute a public transportation contract with the Texas Department of Transportation for funding public transportation. Council Member Chew left the meeting with a potential conflict of interest. Catherine Tuck, Administrative Assistant, stated that the resolution authorized the City Manager to sign an agreement to receive grant funding for public transportation in Denton. The following resolution was considered: NO. R93-052 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC TRANSPORTATION CONTRACT WITH THE TEXAS DEPARTMENT OF TRANSPORTATION FOR FUNDING PUBLIC TRANSPORTATION; AND PROVIDING AN EFFECTIVE DATE. Miller motioned, Perry seconded to approve the resolution. Council Member Cott stated that he had a problem voting for a grant without a budget from an organization. He felt SPAN should have had a budget for Council consideration as well. Tuck replied that when the grant agreement came to Council in April, a budget was included. As not all funding sources were in the same budget process, the City followed a planning process which began in January. On roll vote, Brock "aye", Cott, "nay", Miller "aye", Smith "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried with a 5- 1 vote. 27O City of Denton City Council Minutes August 31, 1993 Page 18 9. The Council considered approval of a resolution approving an application to the Texas Water Commission to amend Certificate of Adjudication 08-2340 which changes 51 acre foot per annum of the 89.28 foot per annum of irrigation water rights to recreation water rights. Council Member Chew returned to the meeting. Bob Nelson, Executive Director for Utilities, stated that the Parks Department was planning on building three retention ponds in South Lakes Park. Those ponds were for some flood protection but would also have surface water. Due to evaporation, approximately 16.6 million gallons of water would be consumed annually. As there were no more water rights available in the Trinity River Basin and the Elm Fork of the Trinity River Basin, there was a need to amend the municipal water purpose water rights for the application. Rather than deal with the municipal rights, the irrigation water rights would be used. Action was required by the Council to approve that application. The following resolution was considered: NO. R93-053 A RESOLUTION OF THE CITY OF DENTON, TEXAS, APPROVING AN APPLICATION TO THE TEXAS WATER COMMISSION TO AMEND CERTIFICATE OF ADJUDICATION 08-2340 TO INCLUDE A 51 ACRE-FEET PER ANNUM OF RECREATION WATER RIGHTS. Perry motioned, Chew seconded to approve the resolution. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 10. The Council considered appointments to the Traffic Safety Commission, the Community Development Advisory Committee, the Electrical Code Board, and the Historic Landmark Commission. Mayo~ Oastlebe~y asked if Counoil would like to have nominations at this meeting and vote a week later. Consensus of the Council was to follow that procedure. The following nomination was made: Council Member Perry nominated Kenneth Morgan to the Historic Landmark Commission. 271 City of Denton City Council Minutes August 31, 1993 Page 19 11. Miscellaneous matters from the City Manager. The Council considered Work Session Item #5. 5. The Council received a report and held a discussion regarding the proposed utility rates. Bob Nelson, Executive Director for Utilities, stated that the existing structure would not be changed very much. There would be a 2% increase in the base electric rate and a 1% increase in the energy cost adjustment for a total 3% increase. The water increase would be 4%, the wastewater would be a 13% increase, solid waste would be a 5% residential increase, and an 8% commercial increase. He showed overheads detailing how the increases would affect an average residential customer. The total increase would be approximately 4.63% or $5.68 per average residential customer. Council Member Chew asked approximately what percent of the increase was due to the recycling program. How much would it cost to maintain recycling at its present program. Nelson replied that the City was doing some recycling at the present time and that was included in the current rates. Council Member Cott stated that the Utility System currently had $40 million in reserve. The Public Utilities Board had stated that approximately $30,000,000 would be used over time in order to alleviate rate increases. There were very few utility companies which had such a large reserve. The City had a TMPA debt and a Ray Roberts debt and he suggested saving that money due to the fact that the wastewater business had been financed with that debt. Nelson replied that the Wastewater Department was in debt to the Electric Department for approximately $6 million. Council Member Cott asked for information on what were the TMPA financial obligations and the Ray Roberts obligations and why the Public Utilities Board recommended going down to $10 million and not leave the reserve at $40 million. Nelson replied that the City paid TMPA approximately $26 million per year for debt service. They were increasing that debt service approximately 3-5% per year on the increasing debt. The City also paid them a fuel charge. The Public Utilities Board looked at how to keep the city's program rates competitive and decided that using the $40 million reserve would be the best solution. The average yearly usage would be $3 million per year. This was done to keep the rate increases down. 272 City of Denton City Council Minutes August 31, 1993 Page 20 Council Member Cott asked for an explanation for also using the reserve for the Ray Roberts issue. Nelson replied that nothing from electric would be used for Ray Roberts. The City was required to pay 52% of the debt on Ray Roberts and could postpone the use of the other 48% of the water storage rights for 10 years which would be up in 1998. The City's first budget year to pay the remaining debt service on the 48% would be 1999. City Manager Harrell stated that both of these issues were in the long range financial planning and were not essential for this year's budget. He suggested that Council might want to look at those issues after the completion of this budget. Nelson presented an overhead regarding competitive rates. Denton was below other utilities in residential summer rates and the proposed rates would still remain lower than other area utilities. He also indicated the water structure of current summer residential water rates versus proposed. The weekend rate would change with the proposed budget. The current rate provided that a customer would be charged 80% of the demand charge provided the customer did not exceed the weekend rate during the middle of the week by more than 80%. The proposed rate would allow the middle of the week to go over the 80% rate four times per month providing that no two days were on the same day of the week. Earl Crews, Budget Rate Analyst, stated that an in-house cost of service study had been performed to determine if costs had been properly allocated among the various customers. It was found that additional costs were needed to be allocated to the dumpster areas as opposed to open top containers. It was also found that there was an imbalance between the rates charged for a customer with a smaller container as opposed to a customer using a larger container. A third conclusion of the study was that there was no incentive for customers with a small container with several pickups per week to move to an equal size container with one pickup per week and it was felt that there was a need to realign the structure to correct those inequities. The proposed rate structure was presented on an overhead and was included in the agenda backup. Comparisons were shown between the open top containers and the proposed rate increase, compactor customers and the proposed rate and a rate comparison with other cities plus a comparison of the commercial solid waste rates both current and proposed. Council Member Cott asked about the difference of landfill costs with different communities. 273 City of Denton City Council Minutes August 31, 1993 Page 21 Bill Angelo, Director of Community Services, stated that Garland's rate was similar to Denton's but Lewisville's was lower than Denton's. A. The Council held a discussion regarding Major Budget Issues for the 1993-94 Annual Program of Services and gave staff direction. John McGrane, Executive Director for Finance, reviewed the remaining budget questions. 1. MLK Center Position - the cost of a 'full-time recreation Specialist would be approximately $30,143. 2. Sanitation ROI - 6% of the return on investment would bring in approximately $140,000 on the current system and as the assets depreciated the amount would lessen unless additional assets were added. If only revenues were looked at, there would be a 3% charge which was a major budget issue and was projected to bring in approximately $124,000. If the fee were to go to 4% of the total revenue of the sanitation fund, approximately $166,000 would be received. 3. Health care plan analysis Tom Klinck, Director of Human Resources, stated that as the budget was developed, the City had just transitioned from a year of experiencing $2.8 million in claims for the first year with PALICO. In the second year of the plan, benefits were altered to make up for the 48% proposed rate increase and brought it within the budgeted 15% rate increase. Currently the City was negotiating a re-rate with PALICO. The proposed re-rate 'from PALICO was 8.72% with several significant conditions. The most important condition was that the local doctors and hospitals had to agree to participate in a "shared-risk" contractual arrangement which would include a primary care physician program and a specialty referral program. Preliminary indications from the providers were very favorable but if an agreement did not materialize, PALICO would not renew with the City. In order to deal with this contingency, the City would be bidding the health insurance program with the provision to reserve the right to refuse all bids if the agreement with PALICO was finalized. Council Member Cott asked why the details could not be worked out. Klinck replied that as more and more details w~re worked out such as who would be included as primary care physicians and how the referral program would work, there was some resistance from the 274 City of Denton City Council Minutes August 31, 1993 Page 22 doctors. He had some concerns about how that responsibility would fall on the employee group. There were two options for Council consideration (1) if the shared risk arrangement were finalized with PALICO there would be an 8.72% increase in rates of the budgeted 20% which would release $94,000 for general fund dollars. If the bids were significantly higher than the 8.72% increase, some additional funding might be required from the fund balance. (2) bid the health plan which would retain 14% in budget which was a 5% contingency above the 8.72% and would release $50,000 for the general fund. City Manager Harrell stated that if Council decided to go with Option I and hold the increase to 8.72% and allocated the extra $94,000, everything would be fine if the arrangement were worked out with the doctors and hospitals. If the arrangement did not work out, the City would be considering new bids which might be higher than the 8.72% increase. If that were the case, either the plan design would have to be altered or the general fund reserve would have to be used to make up the difference. Council Member Miller asked if there were any indication that the arrangement would be successful. Klinck stated that he had talked with both hospitals and the IPA Board had endorsed the concept. The hospitals were looking at a different reimbursement schedule. Favorable indications had been received to the arrangement. 4. Fort Worth - no increase health care plan 5. Fort Worth - no tax increase budget - Fort Worth was able to not increase its tax rate above its current rate by using money from their debt service reserve which would then decrease the amount of debt payment requirements from the ad valorem tax rate. Fort Worth also entered into a new franchise agreement with Texas Utilities which allowed the fee to go from 3% to 4% plus a 15% rate increase by Texas Utilities. 6. Library - restructuring 7. Recycling Coordinator 8. Opticom system Council Member Perry asked that the Library issues be included in the major budget issues. He asked Council to consider restoring the losses'which the Library had suffered over the last years. Some adjustments had been made this year but he would like to 275 city of Denton City Council Minutes August 31, 1993 Page 23 consider further increases. He asked if there were any way to give the library staff some short term assistance with problems in library such as long lines for checkout. city Manager Harrell stated that the major budget issues which were listed under the general fund came from the Major Budget Issue report with the exception of items added by the Council which were the Incentive Plus program, tuition reimbursement, MLK staffing and Court of Record. An additional major budget issue would be the request for library funding plus a request from the County for the Poison Control program operation. Council Member Miller asked that the police communication equipment and fire communication equipment be included in the major budget issues. City Manager Harrell stated that the utility issues would be discussed at next meeting. 12. New Business There were no items of New Business suggested by Council for future agendas. 13. Official Action on Executive Session Items Chew motioned, Perry seconded to enter into a law suit against the design architects of the Martin Luther King, Jr. Recreation Center. On roll vote, Brock "aye", Cott, "aye", Miller "aye", smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 14. There was no Executive Session held during the Regular Session. With no further business, the meeting was adjourned at 10:10 p.m. T~IPE~WALTERS Y S~CRETARY Y OF DENTON, TEXAS BOB CAST ,E CITY OF DE~TO~, T~XA~ ~ ACC00147