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Minutes November 16, 1993407 CITY OF DENTON CITY COUNCIL MINUTES November 16, 1993 The Council convened into the Work Session of the City of Denton City Council on Tuesday, November 16, 1993 at 5:15 p.m. 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: ae Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071 1. Considered action in Scott v. City. Considered action in the matter of the application of Bolivar Water Supply Corporation for an amendment to CCN No. 11257; Docket Nos. 9824-C and 9447-C of the Public Utilities Commission. 3. Considered settlement in Roebuck v. city of Denton. B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072 Personnel/Board Appointments -- Under TEX. GOV'T CODE Sec. 551.074 Discussion regarding the hiring of a Second Assistant Municipal Judge. 2. The Council received a report and held a discussion regarding ADA requirements for public transportation and gave staff direction. Due to a time constraint, this item was considered during the Regular Session under Miscellaneous Matters from the City Manager. 3. The Council received a report and held a discussion regarding an interim power supply study. Due to a time constraint, this item was considered during the Regular Session under Miscellaneous Matters from the City Manager. The Council convened into the Regular Meeting on Tuesday, November 16, 1993 at 7:00 p.m. PRESENT: Mayor Castleberry; Mayor Pro Tem Smith; Council Members Brock, Chew, Cott, Perry, and Miller. ABSENT: None 4O8 City of Denton City Council Minutes November 16, 1993 Page 2 1. Pledge of Allegiance The ~ouncil and members of the audience recited the Pledge of Allegiance. 2. The Council considered approval of the minutes of the Joint Meeting of October 20, 1993 and the Special Call Session of October 26, 1993. Perry motioned, Brock seconded to approve the minutes. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. Mayor Castleberry received a presentation from the Church of Jesus Christ of the Latter Day Saints for Family Week. 3. Citizen Reports A. The Council received a citizen report from Donald Cox regarding the COPS Program on the west side of Denton. Mr. Cox was not present at the meeting. B. The Council received a citizen report from Bob Stalder regarding the insurance policy as it related to smokers and non- smokers. .. Mr. Stalder stated that he had some concerns about the proposed insurance and wellness programs for the City employees. He questioned what criteria was used for the selection process for the insurance program. The request for bids listed one set of criteria while a memo from the City Manager to the Council had a different set of criteria. There was no mention in that memo of the proposed penalties on tobacco users or individuals who did not choose to participate in the City's health risk appraisal. The request for bid for a health insurance program contained no specifics and was written more in the form of a request for proposal than a request for bid. It was his understanding that the Employee Insurance Committee was given only two health plans to consider out of the several bids submitted. ThrOugh some research he had done he had learned that Tom Klinck, Director of Human Resources, had come from Ft. Worth. When the City of Denton changed insurance to New York Life, Ft. Worth also changed. When the City of Denton changed to Palico, Ft. Worth changed to Palico also. This year it was recommended to change to Harris Methodist and Ft. Worth was also changing to Harris Methodist. He asked who was really doing the 4O9 City of Denton City Council Minutes November 16, 1993 Page 3 City's insurance. He felt that the insurance should be taken from Human Resources which was the personnel section and put it with the Risk ~anager. The city had hired a Risk Manager who was qualified to do this type of work. The City also paid approximately $45,000 a year to Coopers and Lybrand for insurance consulting and he felt this was wasted money as the Risk Manager and Legal staff could do the work. That money could be put back into the insurance. Council had budgeted $1.5 million for insurance for the coming year. Harris Methodist was going to cost $1.3 million. That was approximately a $200,000 difference and he questioned where that money would be used. He suggested it could be used to help the wellness costs or for insurance premiums for retired employees. It appeared that the Wellness Committee was comprised primarily of employees who were under Betty McKean's supervision and so it would be no surprise that the Committee would agree with her suggestions. The employees felt that the proposals for penalties for tobacco use and for not participating in the health risk assessment was a way for the city to save money at the expense of the employees. If the city wanted to establish a wellness program, it should be budgeted for. There were concerns from the employees that they were not informed regarding these proposals. 4. Public Hearings A. The Council held a public hearing and considered an ordinance for historic landmark zoning for the Campus Theater, 200 West Hickory. H-93-002 (The Historic Landmark Commission and the - Planning and zoning Commission recommended approval.) Jane Biles, Main Street Manager, stated that Greater Denton Arts Council had petitioned for historic zoning for the Campus Theater. The property was purchased in 1990 to be used as a performing center. The Mayor opened the public hearing. Veronica Beasley stated that she was in favor of the designation. During the Arts Council capital campaign it was found that many individuals had fond memories of the location and felt that it needed to be a landmark in Denton. She requested Council approve the request for historic landmark designation. No one spoke in opposition. The Mayor closed the public hearing. The following ordinance was considered: 410 City of Denton City Council Minutes November 16, 1993 Page 4 NO. 93-208 ,AN ORDINANCE OF THE CITY OF DENTON, TEXAS, DESIGNATING THE PROPERTY LOCATED AT 200 WEST HICKORY AS A HISTORIC LANDMARK ~UNDER SECTION 35-215, ARTICLE V OF CHAPTER 35 OF THE CODE OF ORDINANCES; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. Brock motioned, Smith 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 held a public hearing to receive input as to whether the Trinity Addition escrow should be called. Jerry Clark, City Engineer, stated that the site was located at ~he intersection of Hobson and Teasley Lane. The issue was one of development as it related to perimeter street paving. The improvements needed would include stabilization of the subgrade plus a 5" asphalt pavement according to the Subdivision Regulations. The original ordinance which addressed this issue was 83-70 and indicated that the City needed to hold a public hearing to show clear intent to improve the road within one year in the ninth year. This agreement was not in the ninth year so the Council needed to only do a consideration of the escrow. It was planned to undertake the work in December providing weather would allow. The current ordinance was part of the imPact fee ordinance. The development was done in 1987. The current ordinance indicated that postponement was only if the road would be part of a CIP program and to be built within 2 years. It was recommended to call the bond and to refund the cost of curb and gutter. Staff was ready to begin the work if Council agreed to call the bond. The Mayor opened the public hearing. No one spoke in favor. No one spoke in opposition. The Mayor closed the public hearing. city Manager Harrell stated that in this particular case, there would be no further action on the part of the Council after the closing of the public hearing. The Council would not have to take any formal action because the time period was less than the 9 year period of time. Staff would be proceeding automatically unless 411 city of Denton City Council Minutes November 16, 1993 Page 5 Council did not desire to do so. With the next agenda item, the time period was in the ninth year and would require formal action on t~e next agenda to formally consider a motion to call the bond if so desired by Council. Council Member Miller stated that the bond value was $9,598 and that total cost of the project was $57,600. This indicated a much larger project. Clark replied that the street had been repaved from Highway 1830 to the bridge and was waiting for the utility relocation to be completed. C. The Council held a public hearing to receive input as to whether to the Cushman Addition escrow should be called. Jerry Clark, City Engineer, stated that the site was located at the intersection of Spencer Road and Loop 288. This was a January 6, 1984 bond with the improvement to be completed including' a stabilization of the subgrade and 5" of asphalt paving. He recommended that the Council consider calling the bond. The old ordinance regulations were in effect and required a 10 year escrow. This plat was in the 9th year of the escrow which required a public hearing. If Council agreed to call the bond, there' would be an action item regarding the bond on the November 23rd Council meeting. Council Member Cott stated that Mrs. Cushman made a claim against the escrow on several occasions and asked if this was normal procedure. Clark replied yes that Mrs. Cushman had requested the money several times. After each request, staff had asked the Legal Department if she had grounds for that request and there were none. Council Member Miller asked about a refund to the Cushmans. Clark replied that there would be an $800 refund to the Cushmans as no curb and gutter would be installed. The Mayor opened the public hearing. No one spoke in favor. No one spoke in opposition. The Mayor closed the public hearing. 412 City of Denton City Council Minutes November 16, 1993 Page 6 5. Consent Agenda Mayo~ Pro Tem Smith stated that she had questions concerning Bid #1550 and that staff had answered them to her satisfaction. Perry motioned, Brock 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". Motion carried unanimously. Bids and Purchase Orders: 1. Bid #1550 - Janitorial 2. Bid #1551 - Distribution Transformers 3. Bid #1561 - Tree Trimming 4. Bid #1557 - Jim Christal Road Paving and Drainage 5. P.O. #32204 - Corgan Associates 6. Ordinances A. The Council considered adoption of an ordinance accepting competitive bids and awarding a contract for purchase of materials, equipment, supplies or services. (6.A.1. - Bid #1550, 6.A.2. - Bid #1551, 6.A.3. - Bid #15~1) The following ordinance was considered: NO. 93-209 AN ORDINANCE ACCEPTING A COMPETITIVE BID AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. Perry motioned, Smith 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 considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for public works or improvements. (6.A.4. - Bid #1557) The following ordinance was considered: 413 City of Denton City Council Minutes November 16, 1993 Page 7 NO. 93-210 ,AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE 'AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING ~FOR THE EXPENDITURE OF FUNDS THEREFOR; 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. C. The Council considered adoption of an ordinance authorizing the Purchasing Agent to execute a purchase, order with Corgan Associates, for professional services relating to geotechnical and architectural analysis at the Martin Luther King, Jr. Recreation Center. (6.A.5. - P.O. #32204) The following ordinance was considered: NO. 93-211 AN ORDINANCE AUTHORIZING THE PURCHASING AGENT TO EXECUTE A PURCHASE ORDER WITH CORGAN ASSOCIATES, FOR PROFESSIONAL SERVICES RELATING TO GEOTECHNICAL AND ARCHITECTURAL ANALYSIS AT THE MARTIN LUTHER KING RECREATIONAL CENTER; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR THE EFFECTIVE DATE. Chew 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. D. The Council considered adoption of an ordinance amending Chapter 2 of the Code of Ordinance of the city of Denton relating to "Administration" by revising Article III entitled "Boards, Commissions and Committees" by amending Section 2-65 entitled "Term of Office" to provide for a waiting period for reappointment. City Attorney Drayovitch stated that per Council direction, there were two ordinances for Council to consider. The first was drafted to provide that a board or commission member who had served three consecutive terms would not be eligible for reappointment to that same board or commission for a period of one year. The second ordinance provided that a board or commission member who had served three consecutive terms would not be eligible for reappointment to any board or commission for a period of one year. 414 City of Denton City Council Minutes November 16, 1993 Page 8 The following ordinance was considered: NO. 93-212 .AN ORDINANCE AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON RELATING TO "ADMINISTRATION" BY REVISING ARTICLE III ENTITLED BOARDS, COMMISSIONS AND COMMITTEES BY AMENDING SECTION 2-65 ENTITLED "TERM OF OFFICE" TO PROVIDE FOR A WAITING PERIOD FOR REAPPOINTMENT; AND PROVIDING FOR AN EFFECTIVE DATE. Miller motioned, Cott seconded to adopt the ordinance which indicated that an individual who had served three consecutive terms could not serve on the same board or commission for one year. Council Member Perry felt that that ordinance more nearly represented what he had in mind when he requested an ordinance. Council Member Smith felt that there were numerous individuals who were willing to serve on the City's various boards and commissions. When the Council appointed individuals again and again, it eliminated those individuals who would be pleased to participate in city government. A waiting period for any board or commission was desired because she wanted to have an inclusive city government and this was one way to do it. Council Member Miller agreed that there should be an inclusive government. Out'of the many appointments which the Council made, there were only one or two individuals who were appointed to a different board after serving three terms. Council used good judgement when making appointments. Mayor Castleberry felt that there were so many talented individuals that more should be given the opportunity to participate. He agreed with the second ordinance. On roll vote, Brock "aye", Cott, "aye", Miller "aye", smith "nay", Chew "aye", Perry "aye", and Mayor Castleberry "nay". Motion carried with a 5-2 vote. E. The Council considered adoption of an ordinance approving the 1993 tax rolls. Harlan Jefferson, Director of Treasury Operations, stated that to complete the taxation process, State law required the Council to approve the tax roll. The tax roll was identical to the appraisal roll presented in August with the exception that it contained, in addition to the appraised value of all of the accounts, the taxes 415 city of Denton City Council Minutes November 16, 1993 Page 9 due on all of the accounts. The ~ollowing ordinance was considered: NO,. 93-213 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING THE 1993 TAX ROLLS; AND PROVIDING FOR AN EFFECTIVE DATE. Chew 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. 7. Resolutions A. The Council considered approval of a resolution authorizing the City Manager to execute an interlocal cooperation agreement with Denton County for shared roadway maintenance for City of Denton and Denton County Roads; and repealing Resolution R93-058. Jerry Clark, City Engineer, stated that this was presented at an earlier meeting. The County had amended the City's recommendation relative to Jim Christal Road, Robinson Road and a few other smaller roads. One of the major issues was where there were short sections of a road both in the City and County. That was changed so that there would be a long linear section belonging to one entity or the other. The amended agreement leveled those areas out for maintenance purposes and added 7000 linear feet for each entity. This was a more comprehensive agreement and had been adopted by the Commissioners Court. He recommended approval and felt it was an excellent example of cooperation with the County to benefit the citizens of Denton. The following resolution was considered: NO. R93-071 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATION AGREEMENT WITH DENTON COUNTY FOR SHARED ROADWAY MAINTENANCE FOR CITY OF DENTON AND DENTON COUNTY ROADS; REPEALING RESOLUTION 93-058; AND PROVIDING AN EFFECTIVE DATE. 416 City of Denton City Council Minutes November 16, 1993 Page 10 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. B. The Council considered approval of a resolution expressing support of the Ad Hoc Citizens' Sales Tax Advisory Committee's recommendation to adopt an additional one half of one percent sales and use tax within the City to be used to reduce the property tax rate at an election to be held on January 15, 1994, and urging all citizens to vote in this election. City Manager Harrell stated that at the Council meeting of November 2nd, Council took action to call an election for January 15, 1994 to consider whether to impose an additional one-half of 1% sales and use tax. The proceeds would be used to reduce the property tax. At the same time Council instructed staff to prepare a resolution regarding critical issues from Council. The proposed resolution carried out those issues as presented by Council. Section one expressed the Council's support for the work of the ad hoc sales tax advisory committee and urged the citizens to express their preference on the issue by voting. Section two dealt with the question of the Lifeline electric rate. In that section, the Council, by approving this resolution, would pledge that as part of the 1994-95 budget process, they would study and consider potential reductions to the Lifeline rate or consider other programs designed to benefit low income citizens of Denton. Section three included two tasks for the citizens advisory committee. One was to help with the citizen education process and the second was to appear publicly each year as part of the budget process to report the fact that the sales tax proceeds were being used to reduce property taxes and the amount. Council Member Cott stated that it was not his understanding that Section one would be presented as it was proposed. Section one stated that Council supported the Sales Tax Advisory Committee's recommendation for passage of the additional sales tax. What the Council did, as it was the only alternative, was to recommend that the citizens vote. The only way to do this, based on the way it was presented, was to vote for the sales tax. District Four wanted to make their own decision. He would not make the decision for them and saw no reason to present it this way. Council Member Miller stated that the wording urged citizens to vote. - 417 City of Denton City Council Minutes November 16, 1993 Page 11 Council Member Cott replied that the first sentence stated that the City Council of the City of Denton expressed its support of the Sales ~Tax Committee recommendation for the passage of the additional sales tax. Council could support voting on the issue but not support the recommendation. Council Member Miller felt that it was appropriate for the Council to take a position on whether or not this was a good idea. He had talked with a council member from Mesquite and had learned good things which happened with their increased sales tax. He would not object to supporting the issue and to encourage citizens to vote on the issue. Council Member Brock asked for a clarification on what steps had been taken up to this point. Had the election been called and was this resolution simply urging voters to participate. City Attorney Drayovitch stated that the election had been called. The resolution did urge voters to participate and also invited the committee to serve as an education committee to inform citizens on the issue and to later to serve as a "watch dog" committee. Council Member Brock stated that the Council would also be pledging to consider reductions in the Lifeline rate. Mayor Pro Tem Smith felt that-Section one indicated that Council did support the recommendation of the citizens sales tax advisory committee. The Committee agreed that an election should be held and agreed that the sales tax for the reduction of ad valorem taxes was the way to go. If Council agreed with that, then the rest of the resolution expressed that the Council urged the citizens to express his or her preference by voting. Council was not telling them how to vote but were asking them to vote and were stating that Council supported the recommendation of the Committee. council Member Perry stated that he was in favor of placing the issue before the voters. He was in favor of Section Two and was in support of Section 3A but Section 3B needed to be eliminated. The proceeds of the tax were mandated by State law to reduce property taxes. The money went to the State and the State refunded that exact amount. Council'had just passed the tax roll and knew the exact amount of ad valorem tax. The amount of the exact funds to be used and the exact amount to levy to each property owner was known. There were internal and external audits of all funds, expenditures and income. The City also had a City Manager and Finance Manager who were distinguished in the budget process. There was no need for a committee to pass on the appropriate use of that tax and suggested striking Section 3B from the resolution. 418 City of Denton City Council Minutes November 16, 1993 Page 12 Council Member Chew stated that Council would be endorsing the recommendation of the Committee and would be encouraging all voters to express their opinion regarding the issue. He could support all sections of the resolution. Mayor Pro Tem Smith stated that she agreed with Council Member Chew. The Committee would report annually to the Council regarding the progress of the tax. This was not an overseer position but a way to keep communication with the citizens through a citizens group. Council Member Cott stated that District Four wanted to vote on the sales tax and that the only way to do that was for him to vote for the issue. Mayor Castleberry stated that he was in full support of the resolution. The following resolution was considered: NO. R93-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, EXPRESSING SUPPORT OF THE AD HOC CITIZENS, SALES TAX ADVISORY COMMITTEE'S RECOMMENDATION TO ADOPT AN ADDITIONAL ONE HALF OF ONE PERCENT SALES AND USE TAX WITHIN THE CITY TO BE USED TO REDUCE THE PROPERTY TAX RATE AT AN ELECTION TO BE HELD ON JANUARY 15, 1994; URGING ALL CITIZENS TO VOTE IN THIS ELECTION; AND PROVIDING AN EFFECTIVE DATE. Smith 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. 8. The Council considered nominations and/or appointments to the Keep Denton Beautiful Board, the Electrical code Board and the Juvenile Diversion Task Force. C~unc£1 'Member Chew nominated Herman Wesley to the Keep Denton Beautiful Board. Council Member Perry nominated Kandice Gandel to the Keep Denton Beautiful Board. Council Member Chew nominated Robert L. Hicks to the Electrical Code Board. 419 City of Denton City Council Minutes November 16, 1993 Page 13 Council Member Miller nominated Cindy Sill to the Juvenile Diversion Task Force. Mayo~ Castleberry indicated that these nominations would be voted on at the next meeting. 9. Miscellaneous matters from the City Manager. The Counci~ returned to the Work Session items. 2. The Council received a report and held a discussion regarding ADA requirements for public transportation and gave staff direction. Council Member Chew left the meeting with a potential conflict of interest. Catherine Tuck, Administrative Assistant, stated that currently the demand response services which served the elderly and handicapped provided complimentary paratransit services to those who qualified under ADA. The ADA requirements required complimentary paratransit services to those who qualified under ADA which might be different than a person who might be considered to have a disability. The actual law was much stricter than Denton's interpretation. The City also provided demand response service to all citizens 60 years of age or older regardless of any disabilities. ADA requirements were complimentary paratransit service to those who would qualify and many of those currently served would not qualify. The City provided demand response service for all those in the elderly and disabled categories to anywhere within the City. Council Member Cott left the meeting. Tuck stated that ADA guidelines indicated a corridor three-quarters of a mile on either side of existing routes for those who would qualify. In the fare structure, the City had an elderly service which was on a donation basis. This began as a meal fare to provide service from an individual's home to a meal site. The demand had grown but the donation system had remained in effect. ADA required a half price fare for both the elderly and the disabled on the fixed route system. Currently the City exceeded ADA requirements. In the future with possible fiscal constraints and continued growth of the system, the City needed to make sure that persons with disabilities were always provided with transportation. Proposals included (1) a public information campaign meeting with neighborhood groups and the elderly about what were ADA requirements, what currently was offered and how to use the system. This would help ease those not eligible under ADA 420 City of Denton City Council Minutes November 16, 1993 Page 14 off the demand response system to the trolley system; (2) for a 6 month basis provide free rides for the elderly on the trolley which provided a temporary program for input on how to adjust from one system to another; (3) eliminate the donation based fees for elderly on the demand response system and instituting the same fare that the disabled were paying. The meal based services would continue on a no cost basis. Staff would return with data regarding the certification process to make sure all ADA guidelines had been considered. Mayor Pro Tem Smith asked if increased staff and expense Would be needed to certify individuals for ADA. Tuck indicated that SPAN was working on the certification process. The forms needed to be completed by a qualified agency or physician. Based on those forms, the City would know how many individuals were qualified to be served. Council Member Perry stated that he appreciated these efforts to make the handicapped more mobile in the City and the help offered to the elderly. Council Member Miller asked if based on the certification surveys, did it seem that individuals had difficulty understanding the process. Tuck stated that the individuals with disabilities seemed to understand. The misunderstanding seemed to be with the elderly population as that was where the system began. As the process progressed, it may be that a large portion of the elderly population would qualify with ADA. Council Member Miller asked for the time frame for the certification. Tuck replied that as the City currently exceeded the guidelines, there was no deadline. If the system were left as it currently was, the demand would probably increase greatly and the system would not be able to provide adequate services. Consensus of the Council was to proceed as recommended by staff. Council Members Cott and Chew returned to the meeting. 3. The Council received a report and held a discussion regarding an interim power supply study. 421 City of Denton city Council Minutes November 16, 1993 Page 15 Bob Nelson, Executive Director for Utilities, stated that earlier this year, the City had entered into a contract with Resource Management International to review the power supply requirements of the electric department. They were to look at the existing system, the forecasting, the present facilities, some of the contractual and partnership arrangements the City had, and some of the opportunities which might exist for the future. Part of the contract required an interim report to the Public Utilities Board and Council which would be presented at this meeting. John Moore, RMI, stated that his firm had provided an interim report which was part of the long range power supply study. The ten required tasks included (1) data request and review, (2) review of the load forecast, (3) review of agency and pool considerations, (4) review of the existing generation facilities, (5) prepare an interim report, (6) analyze technical feasibility of TWU cogeneration facility, (7) identify options, (8) provide an economic analysis, (9) prepare a report and (10) present results. The interim report summarized findings from the load forecast review, TMPA/TMPP considerations review, existing generating facilities review, and TWU cogeneration facility technical feasibility review. In regards to the load forecast review, it was found that past forecasts relied on trending, were representative of past methodologies and had a low cost. It was felt that significant economic decisions required a more sophisticated model. Future forecast recommendations included more explanatory variables, relevant economic considerations, weather normalizing, and additional historic databases. There were two ways to look at future requirements. One was to build more generation or buy more power. The second was to look at the uses presently being made of the power and address the capacity issue. The demand side management program involved programs such as voluntary load reduction, Summer Sense- A/C cycling and rate design with time of use and thermal storage programs plus an appliance rebate program. The report suggested the following demand side management program recommendations: (1) review credits for voluntary load reduction; (2) formalize the commercial/industrial audit program; (3) review the air conditioning cycling program'to evaluate cost benefit, devise a program to check switches and possibly add water heating to the program; (4) review the building codes; (5) conduct an appliance saturation survey; and (6) expand load research. Another area looked at was power pool and sales contracts. The TMPP Pool/InterchangeAgreement's latest revision was signed in February of 1982 and included five members with a 10 year term/10 year notice provision. The TMPA Power Sales Contract was signed in September of 1976 with 4 members, had a term which was tied to the expiration of the project debt and had four purchasing cities. Provisions of the TMPP Power Pool Interchange Agreement included 422 City of Denton City Council Minutes November 16, 1993 Page 16 mutual assistance in emergencies, a coordinated operation, a sharing of reserves, an economy power/energy exchange, economic dispatch, generation/transmission planning and joint project participation. Provisions of the TMPA Power Sales Contract included a term until September 2017, all power in excess of native (1976) generation included a 10% increase over a two year period, allowed for generation from solid waste facilities, and allowed for participation in small hydro units with annual rate setting. The contract also provided for development project approval involving repair/replacement and development work with city approval not being required. The project approval portion of the contract involved additional power generation, additional transmission, power purchase contract with city approval required. A review of the TMPA member cities for usage determined that the four cities were somewhat equally balanced. An assessment of the Spencer Station conditions indicated that the turbines were in good shape. Two of the boilers were in poor condition and the controls were pneumatic while the modern controls were electronic. The cooling towers were in poor condition and needed to be upgraded. Several Clean Air Act impacts were also studied. Title I dealt with national ambient air quality standards, Title IV dealt with acid deposition control and Title V dealt with permits. These were some environmental issues which would have an impact on the City. With air quality standards, Denton County was in a moderate non- attainment area for ozone and required a NOx Control on any new units located in Denton County and required that the LAER (lowest achievable emission rate) technology be applied. Units 4 and 5 needed LAER controls which would cost approximately $300,000 to $400,000 per boiler. Phase I of Title IV, acid deposition control, would begin in 1995. Phase II would begin in the year 2000 for units larger than 25MW. Denton requirements (on units 4 &5) would include installing continuous emissions monitoring by January 1995, a permit/plan by January 1996, be operative within the plan by January 2000 and new units would have to meet new levels. Title V, dealing with permits, had an existing source submission deadline of November 1995 and had to be submitted by a designated representative. TACB fees would be $5/ton in 1993, $25/ton in 1994 and $26/ton in 1995. The study also looked at an analysis of a TWU cogeneration Dlant. The previous study wa~ r~vi~w~d and updated. The proposed project would be a joint project with TWU power and steam and surplus power to Denton. It was found that TWU's investment in the project would not have been offset by reduced power and steam costs. A cogeneration project to specifically address only TWU's requirements would not be economically feasible. Further analysis was necessary to evaluate the feasibility of a larger project. Future supply options included simple cycle combustion turbines which were gas fired, a low heat rate, short lead time, and provided a noise reduction. A combined cycle unit 423 City of Denton City Council Minutes. November 16, 1993 Page 17 or repowering existing units were also options plus waste-to-energy units. CounCil Member Miller asked if future supply options including TMPA options. Moore replied correct and that TMPA had considerations of a lignite unit as well as gas turbines. Council Member Perry asked about solar or wind projects. Moore stated that they would continue to be apprised of those strategies but to date they were not very viable options. With fusion, a long range plan was not feasible and no options which could be applied here. Council Member Miller stated that there was a solid waste study underway and was looking at refuse derived fuel. It seemed that EPA and other possible mandates might not make that a viable option. He suggested that the two studies be coordinated. Nelson replied that the environmental issues posed a problem. Staff was looking at materials recycling facility for the City. Materials would be burned in a waste-to-energy unit. 10. There was no official action taken on Executive Session Items discussed during the Work Session Executive Session. 11. New Business The following items of New Business were suggested by Council Members for future agendas: A. Council Member Miller asked for a report on the City's policy relative to trimming trees for street work and the notification process. B. Council Member Cott asked for a reinstitution of the Vision financial statement. C. Council Member Brock stated that the Tree Board had expressed concern over the way trees were being trimmed. In conjunction with the tree trimming contract passed at the meeting, she asked if that had been discussed with the contractor and how the trees would be trimmed. 424 City of Denton City Council Minutes November 16, 1993 Page 18 Bob Nelson, Executive Director for Utilities, stated that standard procedure was to identify the areas to be trimmed and to send a letter approximately two weeks before going into the neighborhood. Crew~ were sent to make personal contact with the residents before the actual trimming. The trimming was done to a two year trim which was to cut 5-6 feet from the power line. Before the trees were actually trimmed, the crews, including the contractor crews, attended a course from the County Extension Agent to learn the proper procedure to trim the trees. D. Mayor Castleberry stated that it was time to begin the annual reviews for the three Council employees. He recommended Tuesday, Dec 14th for that review which would be the only agenda item. Consensus of the Council was to proceed with that date. E. Council Member Perry asked the City Manager to look at a date in February for the mid-year planning session. 12. There was no Executive Session held during the Regular Session. With no further business, the meeting was adjourned at 9:30 p.m. ~n~ife~/Walters Cit~ Se~etary City of Denton, Texas Bo~~~ City of Denton, Te7 ~ ~ ACC00174