Minutes October 26, 1993369
CITY OF DENTON CITY COUNCIL MINUTES
October 26, 1993
The Council convened into the Work Session on Tuesday, October 26,
1993 at 5:15 p.m. in the Civil Defense Room.
PRESENT: Mayor Castleberry; Mayor Pro Tem smith; Council Members
Chew, Cott, Perry, and Miller.
ABSENT: Council Member Brock
1. The Council convened into the Executive Session to discuss the
following:
A. Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071
Considered action in Williams, et al v. Cabrales,
et al.
B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072
Ce
Personnel/Board Appointments -- Under TEX. GOV'T CODE
Sec. 551.074
2...~The Council received a report, held a discussion and gave
staff direction regarding the City Employees' Health Insurance
Program for the plan year beginning January 1, 1994.
Tom Klinck, Director for Human Resources, stated that purposes of
his presentation would be to review the background/history of the
planning session in June regarding health insurance, review the
analysis of the health proposals received with the evaluation of
each with respect to total plan costs, rate guarantee, the schedule
of benefits, the network providers and service and administration
issues. There would also be a staff recommendation. At the
strategic planning session, it was a goal for the City to provide
adequate and quality health care for employee and dependents at a
cost which the employee and the City could afford. The renewal rate
increase from Philadelphia Life Insurance Company (PALICO) was
8.72%. PALICO had outlined several conditions under which it would
renew its contract with the City and some of those were considered
negative contingencies. Staff decided to re-bid the health plan to
ensure the city had a back-up position in the event the
negotiations with PALICO failed to guarantee a stable health
insurance program during the 1994 plan year. Bids were received
from Texas Municipal League with a rate of $223 for the employee
cost, Blue Cross with a rate of $239 for employee cost, New York
Life/Sanus with a rate of $261 for employee cost, Aetna with a cost
of $151.38 for employee cost and Harris Methodist Plan with a cost
of $188.50 for employee cost. The PALICO renewal rate would be
$218.80 for the employee cost. Evaluation of the bids included the
total plan cost, rate guarantee, schedule of benefits, network
providers, service and administration. The proposals of Aetna,
PALICO and Harris Methodist were compared for benefits, coverages,
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and costs (co-pays, deductibles, out-of-pocket maximums, etc.)
Looking at the City costs for the three programs, Aetna would be at
a lower cost for the organization at $1 million, PALICO would have
$1.5 million in City costs, and Harris Methodist at $1.3 million.
Palico, compared to Aetna on employee costs, was approximately
$180,000 more because the rates for dependent coverage were loaded
high in that plan. The Harris Methodist dependent rates were
$145,000 less in the 9 remaining months for employee costs. In
looking at total plan costs considering what both the employee
would pay and what the City would pay, PALICO was approximately
$2.2 million, Aetna was $2.2 million and Harris Methodist was $1.9
million. From a cost perspective, the Aetna proposal would save
the City $400,000 but the employees would be required to pay an
additional $180,000 which was detrimental to them. With the
current individual rates with PALICO, the employee paid $11.50, for
spouse coverage they paid $123, child coverage was $80 and family
coverage was $150. In Aetna's Plan III compared to the PALICO
proposal, the employee would pay a higher amount than under the
PALICO rates as the rates were higher for family coverage. With
the Plan One design, the employee would pay significantly more than
with PALICO. On the Harris Methodist plan there would be a
reduction over what the employees would be paying on the PALICO
plan in all categories in the HMO only and on the indemnity plan
there was a $10-15 additional cost over what they would be paying
and lower family costs. In looking at total plan costs, the City
could save with the Harris Methodist plan over what it was
currently paying with PALICO by approximately $10,000 and over what
was proposed would save approximately $130,000. With the 14% which
was left in the budget, there would be a $200,000 lower cost to the
organization. PALICO's renewal rates were guaranteed for 12
months, the Aetna quoted rates were guaranteed for 12 months.
However, with the Harris quote of 12 months they also agreed to a
contract provision that the increase would not exceed 15% on the
HMO plan through the year 1996. That would be a 9.9% maximum
increase the next year and the following year would be no more than
15%. This would help control and budget costs over the next
several years.
Dave Pala%iere, Coopers & Lybrand, presen%ed a hls%ory of
negotiations involving the shared risk arrangement with the
hospitals and doctors. When looking at the schedule of benefits,
the PALICO proposal would have higher co-pays, deductibles, and
out-of-pocket maximums. There was a $50 diagnostic co-pay, a $150
drug deductible, employee referrals, and one plan with no choices.
This would be th~ first year that the employee would be r~quired to
go through a referral process in order to see a specialist which
would be the employee's responsibility to get permission to do so.
An employee could not go to a specialist unless he was given
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permission to do so by an outside agency. The Aetna plan had
reasonable co-pays, deductibles and out-of-pocket maximum's plus an
option to select from a high or low plan. Selected doctors would
handle referrals to specialists, there was only one local pharmacy
with no mail order service available and no mental health providers
except in the network. With the Harris Methodist plan there were
reasonable co-pays, deductibles and out-of-pocket maximums with an
option to select from a high or low plan, the employee's selected
doctor would handle referrals to specialists, a $10 co-pay for
drugs with a mail order service available and an in-Denton
representative to assist with questions and problems. The higher
plan was a point of service plan which meant that the employees had
the flexibility to use any doctor they wanted. Employees could use
Denton Regional or any other hospital but would pay more if they
used a non-network hospital.
Mayor Castleberry asked about the additional costs associated with
that option.
Palatiere replied that there would be a $500 deductible and the co-
insurance was a 70/30 payment up to $4,000.
Mayor Castleberry indicated that City employees had used Denton
Regional more than HCA. He asked how both hospitals could be made
available to them under the Harris Methodist plan.
Palatiere indicated that he had addressed that issue with Harris
Methodist. They acknowledged the preference and utilization for
Denton Regional in the employee population and were agreeable to
working with Denton Regional to make an arrangement. At this point
in time there was no written contract but would work toward a
relationship with Denton Regional.
Klinck indicated that some type of letter of understanding or a
contract amendment provision would be signed in which Harris
Methodist would agree to look at additional hospitals and
providers.
Council Member Miller expressed concern regarding entering into a
three year contract with a letter agreeing to study the issue.
Three years was a long time.
Klinck indicated that the city would not be locked into a second or
third year contract.
Council Member Miller stated that in a community of Denton's size,
to lock in only one hospital for an employee group of this size and
the fact that the group was the City responsible to the citizens of
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the community, was a difficult situation. Both hospitals had
expanded in this community and to have an organization split this
care put the City in a difficult position.
Palatiere replied that Harris Methodist had expressed a commitment
to work with Denton Regional but he could not tell the Council that
there was a contract signed with Denton Regional Hospital.
Council Member Perry felt that an issue to consider was that both
hospitals had an opportunity and Denton Regional had an edge over
HCA. The City was looking at a matter of reasonable costs for a
health plan to City employees which they could afford. He felt
there was a natural balance for preference and that the employees
would insist on doctors which would keep negotiations moving. This
was a matter of cost and reasonable care.
Council Member Miller felt that an alternative was to offer the
same opportunity to both hospitals. Harris Health Care had
selected HCA but he felt that if Denton Regional was willing to
provide the care at the same cost, it should be made available.
Council Member Chew felt that Denton Regional might not go with
same price structure.
Mary Pat Black, Harris Methodist,
negotiations were on going.
stated that talks and
Bob Hurst, Director of Sales for Harris Methodist, stated that
Harris Methodist had established this program with HCA prior to the
City proposal. Harris Methodist made partnership commitments with
its providers and on an ongoing basis was looking to see what was
needed to stay ahead of the curve and to be the plan of choice in
the community they served. Harris Methodist was looking for long
term relationships with its providers. Harris Methodist would
continue to assess on an on-going basis what was needed for its
program.
Mayor Pro Tem Smith stated that Harris Methodist would continue to
try to work with Denton Regional and ~et it on llne.
Hurst replied that Harris Methodist was open to new providers and
was not shutting any doors at this time.
Council Member Miller asked if other providers would be an addendum
to the contract.
Klinck stated that a letter of agreement or understanding or a
contract amendment would be provided in writing which would
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indicate that Harris Methodist was being responsive to additional
providers/hospitals. For any kind of managed care program there
was a balance between the number of providers and the utilization
issue.
Palatiere stated that with the PALICO plan there were 40 primary
care physicians, 60 specialists, both hospitals, 5 pharmacies
including independents, referrals to specialists would be the
employee's responsibility through Cost Care. Managed health care
had to be tied in with the cost structure. The more providers
there were and/or the more hospitals, the higher the costs.
Council Member Cott asked if it were more costly on a unit basis or
on a total basis.
Palatiere asked if he were referring to a unit per employee per
year.
Council Member Cott stated that the City now offered a certain menu
of service and because it was expanded, was that menu now more
costly or was it more costly because of more providers.
Palatiere replied it appeared to be more on the provider issue. An
HMO unit cost was a per member per month basis. The unit cost on an
HMO basis was lower than a unit cost on a point of service basis
which was the current plan because when a hospital or provider was
used, all employees would be using that facility or doctor. There
was a leverage to have lower per diems, better risk contracts and
the physicians would take a lower fee schedule because they would
have more volume. As the network providers were expanded, there
was less leverage which would result in higher costs. Unit costs
under a managed care program would be lower than an indemnity
program.
Council Member Miller state that last year there was no control on
which p~ovider to go to. Two providers for hospitals would be
different than if there were five or ten. He felt there was a
degree factor involved.
Klinck replied that a factor to consider was the number of
individuals servicing.
Council Member Miller asked if another provider would have to be
willing to agree to the same fee schedule.
Klinck replied that there was a difference when there was an
exclusive arrangement. The volume was diminished to. any one
hospital when there was more than one on the plan.
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Palatiere stated that the hospital would lose volume in the number
of patients and would not-get the same level of contract with HCA
and match with Denton Regional.
City Manager Harrell stated that if the City were on a self-insured
program, it could make those negotiations. This was for a fully-
insured health program. From a staff level, it was felt that there
would be an issue because only one of two hospitals was included in
what appeared to be the best bid. That was what was communicated
to Harris. This might have to be worked out from a system
standpoint. It was difficult to not look at the difference in the
costs with PALICO to stay with both hospitals. It was not a
responsible recommendation other than to give a strong
recommendation to Harris to try and add Denton Regional.
Council Member Perry asked if Council accepted this plan, would it
automatically prevent employees from using Denton Regional.
Council Member Miller stated that they would be able to use Denton
Regional but would not have the same coverage. He questioned if the
issued had been raised and was not satisfied that it had been done
completely.
Hurst stated that Harris Methodist was not an insurance company. It
had started out as a hospital system and had now changed to a
provider for financing, management and providing health care. They
were in a partnership with the doctor groups and hospitals.
Palatiere stated that Aetna had 21 primary care physicians, 70
specialists, both hospitals, only one pharmacy with no
independents, and referrals to specialists through primary care
physicians.
Council Member Perry stated that he liked the feature of the
primary care physician as the source of referral to a specialist.
He felt it added quality to the program.
Palatiere stated that the Harris plan had 16 primary care
Dhysicians, 30 sDecialists, Denton HCA hospital, four pharmacies
plus independents. There was a strong commitment to working out an
arrangement with Denton Regional. In the area of administration
and service, PALICO had some difficulties in claims payments,
balance billing, over all responsiveness and service on the current
contract. PALICO had no in-Denton representative. In discussions
with the Aetna service, there were some concerns expressed with
service and administration, concerns about their on-going
commitment to the Denton community and had no in-Denton
representative.
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Council Member Perry felt that it was difficult when the provider
was away and not active in the community and committed to the
community. No personal contact was difficult.
Palatiere stated that the Harris references were very complimentary
of service with follow-through and a willingness to service
employees, dependents and 'providers. They had an in-Denton
representative and were involved with the community.
Klinck stated that the recommendation was to change to the Harris
Methodist plan which was the lowest overall plan cost, lowest cost
for dependents, a superior plan design, the doctors and other
providers were stable and Denton established, would improve the
ability to budget, control and manage long-term health costs, the
plan was endorsed by the Employee Insurance Committee and Executive
Committee, had an in-Denton representative, and very positive
references.
Council Member Perry asked if there were any plans to expand the
mental health providers as there were only four currently on the
plan.
Black replied that this issue had been discussed and they were
looking to add additional providers.
Council Member Miller stated that he felt good about the proposal
from a cost standpoint. He askedthat Harris Methodist continue to
study the possibility of including an additional hospital.
Hurst stated that there were three more primary care physicians who
would be added to the plan as soon as the contracts were returned.
Council Member Chew felt that the rate with PALICO was originally
too low and that they had not looked at the census. The service
with Aetna was very poor and felt that this was an excellent
program. There was a need to try and get the additional hospital
on the plan. The proposal would be a good savings to the city and
to the employees.
Mayor Pro Tem Smith agreed with Council Member Chew that this was
a fine plan and that Harris Methodist should try to add the other
hospital and more providers.
Mayor Castleberry indicated that the consensus of the Council was
to move ahead with the Harris Methodist Dlan including the letter
of intent for additional providers and an additional hospital.
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2. The Council received a report, held a discussion and gave
staff direction regarding the City's Wellness Program for
employees.
Tom Klinck, Director of Human Resources, stated that Council
authorized the implementation of a wellness program in 1993-94. It
was felt that the most impact would be to have a health risk
assessment and direct those activities so that over the long term
it would be known where the City stood as an organization. The
purpose of the Employee Wellness Program was to provide health
awareness and education, participation in a wellness program,
encourage non-tobacco use and funding for the program. The
assessment would gather demographics as far as age, gender,
history, eating habits, exercise, stress, etc., and provide health
screening in the areas of resting blood pressure, blood chemistry,
body fat, etc. From that assessment an individual would be given
a confidential report on his current status and a recommendation on
how to improve himself. The City would received a comprehensive
report profile on the entire work force and recommendations on
where to focus the wellness issues. The health awareness/education
program would include information on smoking cessation, nutrition,
physical fitness, stress management and exercise. The health risk
assessment would provide a better picture of the employee
organization and the information would benefit both the employee
and the City and might give the employees a chance to make changes
for healthier lifestyles and potentially lower health claims. If
an employee chose to participate in the program, they would be
rewarded with an additional $10 per month contribution for the
health insurance premium. If an employee did not participate, the
contribution would be less and the employee would pay a higher
premium.
Council Member Miller stated that medical plan was a $188 which the
City would pay. What was really being done was to penalize people
who did not participate in wellness.
Council Member Cott stated that if the City were involved with such
a program and had knowledge that there was a person outside of
health who was not willing to be involved and if he were to die,
what would be the City's liability.
Mike Bucek, Assistant City Attorney, stated that such a scenario
would be in perhaps a fire department and such a claim would be
handled as a workers compensation claim.
Council Member Cott suggested that the city should make sure it was
legal to do this.
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Mayor Castleberry asked if this were a voluntary program.
Klinck stated that the contribution that the City would make would
be tied to an employee's risk to health claim costs.
Bucek stated that the normal approach would be if there were a
confidential statement regarding a health risk and accommodations
had to be made, the employee would need to notify the City and that
would have to be worked through.
Council Member Cott stated that because the City would be
organizing, arranging, and managing the process there might be a
problem.
Council Member Perry stated that the City would pay $188 per
employee and if that employee did not participate in the wellness
program and used tobacco, it would pay $168.
City Manager Harrell stated that the City did not have to pay $188
per employee. The recommendation through the Wellness Committee
was to set the base participation rate at $168. If an employee was
willing to take the health assessment, the City would contribute
another $10 and if the employee were a nonsmoker, the City would
contribute another $10 which would raise the City contribution to
$188.
Klinck stated that the 1993-94 budget had funded $19,000 for the
health risk assessment. It was projected that the assessment would
cost $25 per employee for a total cost of $22,000. The educational
program would cost an additional $14,000. Additional funding of
$17,000 was needed to cover the difference. It was estimated that
approximately 200 tobacco users would pay some additional premium
and that money would go back into the City budget.
Consensus of the Council was to proceed with the program.
4. The Council received a report, held a discussion and gave
staff direction regarding amending the zoning ordinance.
Due to a time constraint, this item was considered during the
Regular Session.
5. The Council received a report, held a discussion and gave
staff direction regarding code enforcement activities.
Due to a time constraint, this item was considered during the
Regular Session.
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City of Denton City Council Minutes
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The Council convened into a Special Call Session on Tuesday,
October 26, 1993 at 7:00 p.m. in the Council Chambers.
PRESENT: Mayor Castleberry; Mayor Pro Tem Smith; Council Members
Chew, Cott, Perry, and Miller.
ABSENT: Council Member Brock
1. The Council considered approval of a resolution supporting the
University of North Texas request for Division I football status.
Mayor Pro Tem Smith left the meeting.
Lloyd Harrell, City Manager, stated that Council had received a
presentation at its last meeting from a University of North Texas
representative asking Council to officially lend support for the
University's effort to move from IAA to IA level in its football
program. Following presentation to the Council, staff was asked to
draft a resolution formally offering that support.
The following resolution was considered:
NO. R93-066
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
EVIDENCING SUPPORT TO THE UNIVERSITY OF NORTH TEXAS IN ITS
EFFORTS TO MOVE TO I-A COMPETITION; AND PROVIDING FOR AN
EFFECTIVE DATE.
Cott motioned, Miller seconded to approve the resolution.. On roll
vote, Cott, "aye", Miller "aye", Chew "aye", Perry "aye", and Mayor
Castleberry "aye". Motion carried unanimously.
Mayor Pro Tem Smith returned to the meeting.
2. The Council received a report regarding a possible half cent
sales tax to reduce the property tax.
ae
Dr. Weinstein
Comments from Other Committee Members
Discussion regarding Council procedures to consider the
issue and gave staff direction.
As Dr. Weinstein was not present, Items B and C were considered.
B. Comments from Other Committee Members
Alton Donsback stated that he began the process with a reservation
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about adding a half cent sales tax because he considered it to be
a regressive tax. After listening to all of the presentations and
hearing the effect that it had on other communities which had
already adopted it, he felt that it would be very good for the City
of Denton. He still had a reservation that the one group which
would be hurt by adding to the sales tax and lowering the property
tax would be the lowest income individuals. A question remained on
how-to protect them. The city already had a program for such
individuals for their utilities, and it seemed that to lower the
utility base would be a very easy way to make up the $20-30 which
low income individuals would be paying extra in sales tax by adding
the half cent sales tax. He felt that the proposal would be good
for the City, that it would add to the tax base, and enable the
city to do more for its citizens. But it must be kept from hurting
the poorer segments of the City. He urged the Council to give a
tax break by cutting the utility bills of the lower income groups.
Council Member Chew stated that in reading the discussions of the
Committee, he found the'same statements had been made by Bill
Luker.
Donsback replied that it was also the basis of Dorothy Damico's
vote against the proposal.
Council Member Chew stated that this would be one way to make the
proposal more equitable across the board for all citizens of
Denton.
city Manager Harrell stated that the city had a very low rate on
the per kw usage basis for low users of the electric system called
the Lifeline rate. The City of Austin might have a slightly better
rate than Denton but beyond Austin, Denton's rate was the most
favorably structured to give relief to those individuals who used
a very small amount of electric utilities each month. The theory
was that those individuals who could not afford the necessities
would watch the amount of utilities used. Dr. Luker had suggested
moving up the Lifeline qualification level to allow more
individuals to take advantage of that low electric rate. It was
felt that this was an idea worth exploring and the only reservation
of the Committee dealt with low income individuals and the effect
on those individuals.
A. Dr. Weinstein Report
City Manager Harrell stated that Council had requested that an
expert opinion be used regarding this issue to analyze the economic
impact of an additional sales tax. Dr. Weinstein was a well known
expert on economics in Texas and the nation.
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Dr. Weinstein stated that one issue of the proposal dealt with
regressivity - would the change between sales and property taxes
make the overall revenue system more or less regressive. He felt
that a sales tax was probably no more regressive than a property
tax. Some economists felt that a sales tax was more regressive
than a property tax. He felt that local conditions would determine
if a tax were regressive or not. A property tax could be more or
less regressive depending on local market conditions. In Denton,
with a tight rental market, many renters and a low vacancy rate, it
was easier to pass a property tax on to a renter. That was not to
say that if property taxes were reduced that rents would fall. If
the property tax were reduced, it would temper future rent
increases due to more benefits to the landlord. He felt that rents
would rise more slowly if there were some property tax.relief. A
second issue was who would pay for the sales tax increase. People
buying goods and services which were taxable would be paying the
increase. This would be a shift to nonresidents. Denton would
export a fair amount of its sales tax because of a large regional
mall, the outlet mall, and the fact that there were other people
who came into the City of Denton from outside Denton to shop.
There was also a large student population. Some of those students
received financial support from outside the local community, and
many of them resided in university housing and therefore paid no
direct or indirect local property taxes. Part of the property tax
was born~ by nonresidents and if the sales tax were increased by a
half cent, a portion of that would also be born by nonresidents.
It was assumed that 20% of the local retail sales were by
nonresidents and the increased tax burden per Denton household
would have been $45 in 1992. A third issue was how the proposal
would affect retail sales. There was a concern that if the sales
tax were higher here, it might encourage people to shop elsewhere.
That could happen in Denton but it was predicted that it would be
a very small differential. In the worst case scenario, Denton's
retail sales might drop initially by 1/2 percent with a 1/2 percent
tax rate increase. It was felt that this would be such a small
increase that the 1/2 percent increase would not alter consumers
behavior very much. In 1992, this would have reduced taxable sales
in Denton by $1.9 million. A fourth issue dealt with the impact of
DroDerty tax rates on economic develoDment. There was no guarant~
that a lower property tax would attract business but it also would
not hurt. In terms of economic development a lower property tax
would help Denton look better in the long run but would not
necessarily attract new business. In terms of an image of a
community having a tax rate in line with neighboring communities,
it would be a plus. A final issue dealt with stability,
predictability and elasticity. It was felt that over the long term
the sales tax would provide better predictability than the property
tax. The sales tax was fairly reliable. It did not always go up
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City of Denton City Council Minutes
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but when compared to the property tax was more stable in rates. As
a third party assessment he felt the proposal would be a good deal
for the City and would vote in favor of such an issue.
Council Member Cott stated that no matter what was deliberated by
Council, students were welcome in Denton. He felt that sometimes
the way the issue was deliberated, it appeared that the City was
going out after the students to pay. He felt it was important to
do whatever was necessary to not encourage exploration outside of
Denton for purchases.
Council Member Perry stated that a tax which resulted in an unequal
distribution was a regressive tax. For example, an individual had
a reduction in property tax but did not pay accordingly the
increased sales tax. Would it be possible in Denton under this
plan to get a reduction in property tax and not pay into the sales
tax.
Weinstein replied that in the aggregate sense, this program was
suppose to be revenue neutral. In some cases there would be an
individual who would pay less in property tax but more in sales
tax. In other cases there would be times where future increases in
property taxes would be greater than the additional sales tax paid.
It was not possible to predict who the losers and winners would be.
It was known that higher income people had a higher degree to
consume. To the extent that higher income peopleconsume more than
lower income people, the increase in the sales tax rate would be
more equitable. In 50-60 years of research, it was concluded that
it was very difficult to redistribute income, at the local level,
through tax policy. Local government could not redistribute very
much as it was dealing with.relatively few dollars.
Council Member Perry asked if there would be any group which would
profit and any which would lose with this proposal.
Weinstein replied that low income people, particularly renters
would benefit because of the decline in rent hikes. Some
businesses would benefit from the lower property tax burdens
including the retailers who would collect more sales tax.
Council Member Perry stated that the landlords would receive a 14%
reduction in property tax and would be reaping a windfall with this
proposal.
Weinstein replied that to the extent that it would lower the
pressure on landlords, it would have a beneficial effect on renters
in terms of restraining future rent increases.
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Mayor Castleberry stated that it would not reduce rents but it
would help to not have rent increases for a long period of time.
There had been much pressure on apartment owners because of the
escalating taxes.
Council Member Perry stated that the revenue from sales tax was
more stable than property taxes over the long term.
Weinstein replied that in the terms of stability and
predictability, the sales tax base was more stable than property
tax. The property tax would continue to be the major work horse of
local finance. He did see the case for some property tax relief in
terms of this proposal.
City Manager Harrell stated that in this instance, although in a
minor way, there were two different universes. Shifting from a
property tax to a sales tax would enlarge the universe and more
individuals would participate in making up that same amount.
Weinstein stated that there would be more people locally and a
greater contribution from outside the region.
Council Member Miller stated that the reduction in property tax
would be approximately 20%. He also hoped that all through these
discussions that no one would feel that the City had ill feelings
against nontaxable entities or towards students.
Weinstein replied that many of the low income people in Denton were
students who lived in rental housing and who would benefit from a
more constrained rental market.
Council Member Miller asked if Weinstein saw any downside on this
issue.
Weinstein replied none at all.
Council Member Chew asked if there had been any other statistics
collected regarding the number of shoppers outside of Denton.
Weinstein replied not beyond the studies which had been done
elsewhere.
Council Member Chew stated that basically an individual would be
taking what was saved on the property tax and using it for the
increased sales tax.
Weinstein replied that that would be probably true for the
community as a whole. --
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October 26, 1993
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Council Member Chew asked if it would be prudent to work out
equitable terms with regards to utility rates to help offset low
income individuals.
Weinstein replied that if the City were trying to provide some type
of fiscal relief for low income individuals, there would be a
greater impact by raising the Lifeline threshold than property and
sales tax differences.
Council Member Cott stated that it needed to be realized that this
was a broad base of taxpayers which paid for the Lifeline program
and they needed to be consulted in this matter.
City Manager Harrell stated that there were two different stores
which collected data by zip code. One store was Carter's in the
outlet mall and the other was Service Merchandise in the Golden
Triangle Mall. Carters reported 17% of its sales came from Denton
with all of the remaining sales coming from outside of Denton.
Mayor Castleberry stated that the majority of the money generated
in the outlet mall was generated from those outside of Denton.
Weinstein replied that over long term, the sales tax base might
offer more potential revenue than the property tax base.
Mayor Castleberry stated that at this time, McKinney and Frisco had
passed the half cent increase. Decatur was in the process of
passing the half cent and Lewisville was getting ready to appoint
a task force regarding the issue. Gainsville was considering such
an increase.
Mayor Castleberry stated that the consensus of the Council appeared
to place the proposal on the Nov. 2 meeting.
City Manager Harrell stated that two key decisions needed to be
made within the next week or the following week. One was the need
to obtain preclearance for the election. Staff would like to
present Council with an analysis of election costs and get
direction on how to proceed with a possible election. Calling the
election could wait until the last meeting in Nov. in order to have
the election on Jan. 15th.
Consensus of the Council was to place the proposal on the next work
session for discussion and on the regular meeting for a decision on
whether to call the election.
The Council returned to the Work Session items.
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October 26, 1993
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4. The Council received a report, held a discussion and gave
staff direction regarding amending the zoning ordinance.
Frank Robbins, Executive Director for Planning, stated that the
current zoning ordinance did not fulfill the mission of the City.
The Planning and Zoning Commission and the Zoning Ordinance Task
Force felt a rewritten zoning ordinance could do a better job for
the City. One of the most fundamental problems of the current
ordinance was that there were nine nonresidential districts which
were not being used. Those were not being used as the standards
were too weak and would provide incompatible zoning next to
existing standards. Some issues raised by Council regarding the
issue included: (1) The standards should enable some flexibility
in order to take into account different situations and places.
There should be some way for differing parties to discuss and reach
a balanced solution. Comments for that issue were that conditioned
zoning and the planned development enabled that flexibility. The
mixed use district did not mandate set standards but was a
guideline. (2) Buyers needed to be aware of what was allowed next
door. (3) Piecemeal amending would enable more time for Council
to evaluate the individual recommendations from the Task Force.
(4) Deal with the simple parts first. (5) A needs analysis was
needed for each recommendation. (6) Cost of new standards and
regulations. (7) MXD allowed for too much staff discretion. Task
Force recommendations included (1) Having a user friendly format -
staff had developed a number of separate documents such as a quick
reference chart, consolidated standards for each district and flow
charts which achieved the goal of improving service delivery by
making the rules easier to find, communicate and use. (2)
Reorganize the Board of Adjustment with a new non-conforming
amortization section in order for the article to be more
understandable and consistent and to add provisions for amortizing
nonconforming uses to be more consistent with court made law. (3)
Design guidelines for all site plans for planned developments,
specific use permits or conditioned zoning in order to promote
quality development in the city, preserve natural resources and
encourage environmental sensitivity, and would compile the Denton
Development Plan policy and regulation now in place into one easy
to use document. (4) Update parking standards reasons which would
allow for shared parking and fewer variance requests and off-site
declarations and would be consistent with other metroplex cities.
(5) Enable special districts for special places, such as for
additional neighborhood presentation areas, for instance the TWU-
Alice-Elm Street area, scenic entranceways, industrial parks or
flood plain overlay districts which would initially incorporate the
existing Historic District and the Municipal Airport Zoning
regulations. (6) Heavy environmental impact district would be a
new district which would replace the heavy industrial district and
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City of Denton City Council Minutes
October 26, 1993
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the out of date performance standards section. The district would
be intended to accommodate heavy industrial uses and manufacturing
activities which required special consideration and. would
incorporate additional regulations to ensure compliance with State
and Federal requirements and consideration of future transportation
needs. (7) Three new residential districts in addition to the
current residential district which would be a single family estate,
a single family 3.5 and manufactured housing district. (8)
Antennae standards which would provide new regulations with regard
to the location, height and construction standards for antennas,
satellite dishes and support structures. (9) Mixed use district
providing for bufferyards, a master plan policy as standards,
policy sensitive site plan triggers, and wider notice for heavy
impact uses. The Planning and Zoning Commission had strongly
recommended to Council that the process be continued.
Council Member Cott asked that the issue of a motor home on an
individual's lot be addressed.
Council Member Perry asked if this proposal would replace the
Denton Development Plan.
Robbins replied no that it would be a tool to implement the Denton
Development Plan and would be more consistent with the Denton
Development Plan.
Consensus of the Council was to proceed as recommended by the
Planning and zoning Commission.
5. The Council received a report, held a discussion and gave
staff direction regarding code enforcement activities.
Frank Robbins, Executive Director for Planning and Development,
detailed what the Code Enforcement office did and how that was done
and possible service improvement. The Code Enforcement office
performed such activities as high weed and grass issues,
trash/garbage/debris code violations, signs, zoning, and view
obstruction.
Council Member Cott asked if there were a level of enforcement.
Could the Council decide on what each category of enforcement would
cost and give an awareness of cost for each category.
Mayor Pro Tem smith asked what was the number of individuals in the
Code Enforcement office.
Robbins replied that there were three code enforcement officers
with some clerical help. The City was divided into three areas and
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October 26, 1993
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each officer was assigned to an area. Once a violation was noted,
the officer would try to make personal contact with the individual
to work out an abatement of the violation. If that did not work,
a letter describing the violation and when the abatement should
take place was sent. If the problem was being worked on, the time
frame could be extended. If there were no cooperation, the
violation would be taken to Court. In regards to the mowing costs,
the current contractor was a minority business enterprise. The
unit and aggregate costs were significantly, less with annual
contracts. Single lot contracting was about 40% more expensive.
There was competition on an annual basis and the quality and
timeliness were more effectively assured With an annual contract.
Annual contracts were less costly to administer than single lot
contracting.
Consensus of the Council was to continue with the current mowing
operation using an annual contract basis.
Robbins continued that there was a need for a shift in the
organization of the Code Enforcement office moving from a
traditional kind of management toward self-directed work teams, The
teams would have a set of objectives which would enhance the focus,
orientation and individual commitment of the organization. It was
hoped that this would provide for improve quality, productivity,
and reduce operating costs.
With no further business, the meeting was adjourned at 8:50 p.m.
B B~~STLEBERRY, MAY R
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