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.
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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.
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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
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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
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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.
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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.
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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.
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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
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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.
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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
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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
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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.
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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".
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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:
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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
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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:
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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.
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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.
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City of Denton City Council Minutes
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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.
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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.
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City of Denton City Council Minutes
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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
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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
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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