Minutes July 5, 1994 CITY OF DENTON CITY COUNCIL MINUTES
July 5, 1994
The Council convened into the Executive Session on Tuesday, July 5,
1994 at 5:15 p.m. in the Civil Defense Room.
PRESENT: Mayor Castleberry; Mayor Pro Tem Brock; Council Members
Chew, Cott, Perry, and Miller.
ABSENT: Council Member Smith
following:
The Council convened into the Executive Session to discuss the
ae
Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071
1. Considered action in Brown v. City of Denton.
Real Estate -- Under TEX. GOV'T CODE Sec. 551.072
Personnel/Board Appointments -- Under TEX. GOV'T CODE
Sec. 551.074
The Council convened into the Work Session on Tuesday, July 5, 1994
at 6:00 p.m. in the city Council Chambers.
PRESENT: Mayor Castleberry; Council Members Chew, Cott, Perry, and
Miller.
ABSENT: Council Member Smith and Mayor Pro Tem Brock
1. The Council received a presentation and held a discussion of
the 1994-95 Major Budget Issues Report.
Mayor Pro Tem Brock joined the meeting.
Lloyd Harrell, City Manager, stated that there were two purposes
for the major budget issues report. One was to provide the Council
with an early preview of the proposed budget and the second was to
present a highlight of the critical policy issues contained in the
1994-95 budget. It also provided various alternatives to address
those issues and an opportunity to make recommendations for each
issue. He reviewed an explanation of the attachments included in
the back-up materials. Appendix A was a listing of the budget
packages included in the proposed budget. Those listed in Appendix
A were programs ranked by the Executive Staff and proposed to
Council for consideration. There were two different rankings this
year, capital expenditures or other one-time expenditures and on-
going maintenance packages. Attachment B was a listing of packages
which were requested by department directors but were not
recommended to Council. Attachment C was a .recap of the City
Council budget questionnaire including comments from Council.
City of Denton City Council Minutes
July 5, 1994
Page 2
Attachment D was a listing of General Fund revenues and Attachment
E was the expenditure summary of all General Fund functions. This
appeared to be a fairly optimistic budget for the next year. This
budget gave major emphasis on trying to solve one-time capital
expenditure needs of the City. The budget represented $147,993,000
worth of revenues and $147,484,000 worth of expenditures.
(1) General Fund Reserve Level - this was the appropriate level of
maintaining the General Fund balance for unforeseen emergencies
that might arise. The adopted goal had been to maintain this
balance between 8-10%. Council had a strong reference for a fund
balance of approximately 10%. It was estimated that the fund
reserve level would be 14.76% which would allow $1,148,000 to be
allocated to help balance the budget. Staff was recommending that
a substantial portion of this reserve be allocated for one-time
expenditures of a capital nature or other one-time expenditures
which would not be reoccurring. In the past, all of the reserve
over the 10% had been used for operation and maintenance costs.
This year it was recommended that 62% of the fund balance be
earmarked for those one-time expenditures and the remaining 35%
would be used for on-going operation and maintenance expenses.
Options for the unreserved fund balance level were (1) allow the
balance to stay at its current level and fund an additional
$1,148,678 of revenue or decrease expenditures, (2) use $1,148,000
of the balance as a resource to help fund the 1994-95 budget, or
(3) reduce the fund balance below the 10% level.
(2) Revenues
A. Sales Tax - 1% qeneral purpose tax - the budget included
a 4% growth increase in receipts over the current budget amount for
the 1% sales tax not used to reduce property tax. Alternatives for
the sale tax receipts were (1) project less than a 4% growth, (2)
project a 4% growth rate for 1994-95, or (3) projeCt greater than
a 4% growth. Recommendation by staff was~to project a 4% growth
rate.
B. Sales Tax - 1/2 cent to reduce proDerty taxes - the City
did not have a choice in this area as to the estimate of this tax.
By State law, the City must request an amount from the State
Comptroller's Office which certified an amount of revenue which
would be generated from the half-cent sales tax. The number
certified by the State was $3,176,900. That certification allowed
a proposal for a property tax decrease of $.1672 per $100 valuation
or a 22.8% decrease in the property tax rate. During the election
campaign, it had been indicated to the voters that the property tax
would be reduced by at least 20% but this would allow for a 22.8%
decrease. It was felt that the recommendation by the State
City of Denton City Council Minutes
July 5, 1994
Page 3
Comptroller was conservative and any amount collected above the $3
million would go into a special reserve fund.
C. Property Tax - the property tax rate started with a rate
of $.7479. This would then be decreased by $.1672 for the sales
tax. It was estimated that the final certified roll from the
Appraisal District would show a growth of approximately 2% in the
City's assessed valuation. If that 2% held, in order to bring the
tax rate down to the effective rate, the rate would go down $.151.
In addition, the proposed budget called for a decrease below the
effective rate of $.0011 cents per $100 valuation. If the final
appraised numbers from the Appraisal District stayed with the 2%,
the final tax rate would be $.5645. If the assessed value was more
than the 2%, the rate would go down further. The proposed tax rate
of $.5645 represented a 24.5% decrease in the tax rate from the
current tax rate. Alternatives for the ad valorem tax rate were
(1) set the rate using the Property Tax Code formula at $.0011 per
$100 valuation below the effective tax rate which would be $.5645
per $100 valuation, (2) set the rate below the 24.5% percent
.reduction which would require a reduction of General fund
expenditures, or (3) increase the rate over the $.5645 rate which
could go as far up as $.6222 and still be below the rollback rate.
The recommendation was to set the rate at $.5645 which was $.0011
below the effective rate and 24.5% below the prior year's tax rate.
(3) Pay Plan Adjustments - it was recommended that there be a pay
adjustment identical to last year of an average increase of 4.6%
based on performance and market adjustments starting in January
1995. Civil Service employees would receive 4.6% plus any scheduled
step increases. Alternatives included (1) fully accept the Mercer
proposal which would be a 6.4% increase and require an additional
$396,350, (2) implement a range adjustment and performance based
pay increase between zero to 7% with an average increase of 4.6%,
or (3) delay the compensation program increases and provide no
increase in employee compensation. It was recommended that an
average increase of 4.6% be given based on performance and market
adjustments. Not included in the proposed budget was an employee
incentive pay program. Last year such a program was included in
the proposed budget but was removed during the budget
deliberations. This was still a recommendation by the Executive
Staff. The Public Utilities Board had recommended a more modest
proposal from last year. However, this program was not included in
the proposed budget at this point in time.
(4) Benefit Adjustments
A. Health insurance - included in the budget was an 8%
increase in the city premiums for health insurance which was a
City of Denton City Council Minutes
July 5, 1994
Page 4
reasonable estimat~ for an increase..The cost of that increase was
proposed budget. ~
B. TMRS - last year the Council inc eased the retirement
program in TMRS from a 5% 2-1 program to 6% 2~1 program. This.year
it had been considered to take the level to 7% as most area cities
were at a 7% 2-1 match. It was recommended that the City stay at
6% 2-1 level as the cost was too high for the 7% 2-1 match. It was
felt that the one-time expenditure items w.
this year than an increase in the TMRS level
(5) Positions - on face value, it appeare
were being added to the General Fund. Those'
into three categories - new facilities, res~
cut positions, and enhanced services/servicE
positions, two General Fund positions were ~
would drop the total increase to 13.5 new wor
General Fund. Of those 13.5 positions, 1
facilities such as the Denton Municipal Compl
the new South Lakes Park. Restoration of pr~
included three positions cut in previous ye
economic downturn. One was in the Animal Col
Engineering Department and one in the Buil
These were offset by two reductions in ~
Enhanced services had two categories of recom
was a recommendation to include $40,000 in ti
grant money to hire up to 6 new police of~
money did not become available, the $40,000
hire two new officers. Other enhanced servic
a part-time position for an administrative
the weekly Council work sessions broadcasti
current part-time prosecutor position to ~~
work with the Municipal Court of Record. I~
not funded, there would be $320,000 to b,
General Fund.
¢6) Other Aqency Contribution~ - the propos
an increase of $51,700 in allocations to hu
$50,000 would be from block grant funds and $
Fund resources. Alternatives included (1) f
of $148,300 which would allow $1,700 to be re.
the agency requested level of $876,548 which ~
$576,548 to be funded from additional res(
reductions, or (3) fund the Human Services
level. The recommendation was to fund a'
~re a higher priority
~ that 15.5 positions
~ositions were divided
ioration of previously
~ levels~ Of the 15.5
~eing eliminated which
kef years added to the
9 were driven by new
ex, the new library or
~viously cut positions
ars during the recent
%trol area, one in the
~ing Inspection area.
he Engineering area.
mended increases. One
~e budget for matching
icers. If the grant
would be available to
~ positions dealt with
intern to assist with
~g and increasing the
full time position to
these positions were
reallocated to the
~d budget recommended
man service agencies.
[,700 from the General
und the 1993-94 level
~llocated, (2) fund at
~equired an additional
~urces or expenditure
Committee recommended
the Human Services
City of Denton City Council Minutes
July 5, 1994
Page 5
Committee recommended level as amended by the Council.
(7) Transportation - the proposed budget included a $25,799
increase from the current funding level for SPAN and Handihop.
Alternatives were (1) keep the funding at its current level which
would allow $25,799 to be reallocated but would require a reduction
of current SPAN services or (2) fund at the increased level. The
recommendation was to fund at the $25,799 increased level.
(8) Tax exemption for persons over 65 - In 1988-89 the Council
adopted a policy to move the over 65 exemption to a $25,000 level.
The current exemption for persons over 65 was $21,000. The
proposal included another increase to the exemption for a total
exemption of $22,000 in 1994-95. Alternatives included (1) keep
the funding at its current level and use an additional $15,000 for
other purposes, (2) increase the exemption to $25,000 immediately
and eliminate $45,000 of expenditures from the budget or increase
revenue, or (3) proceed with the recommendation to increase the
exemption by $1,000 per year, for a total exemption of $22,000 in
1994-995. The recommendation was to increase the exemption $1,000
for 1994-95.
(9) Reserve Funds
A. Fire Reserve Fund - this fund was set up a number of years
ago to help staff various fire stations. In 1991-92 the Council
adopted a policy to draw down that reserve fund over a period of
time. The proposed budget continued that policy and used $50,000
to offset 1994-95 expenditures.
B. Hotel-Motel tax fund - in the 1991-92 budgeting process,
the Council set aside a small amount of the hotel/motel fund which
would be available for special projects in the community. The
proposed budget recommended using $124,000 of the $145,000 in the
fund for a new roof on the Civic Center. ~
(10) Street Improvements - the proposed budget continued to
increase the allocation for street maintenance.
(11) Consulting Assistance - there were three major issues dealing
with consulting assistance addressed in the 1994-95 budget. Those
areas included an impact fee project, a comprehensive long range
Information Services strategy study, and a revision to the current
zoning ordinance.
(12) Cable Television - the proposed budget recommended a level of
funding which would allow the continued televising of the formal
Council sessions and the work sessions. It had been discussed to
City of Denton City Council Minutes
July 5, 1994
Page 6
possibly televise the Planning and Zoning Commission meetings and
extra city-originated programming. If those extra steps were
taken, it was felt that it should be done in a professional manner
with a professional position for that operation.
Due to time constraints, this item was continued during the Regular
Session under Miscellaneous Matters from the City Manager.
The Council convened into the Regular Meeting on Tuesday, July 5,
1994 at 7:00 p.m. in the Council Chambers.
PRESENT: Mayor Castleberry; Mayor Pro Tem Brock; Council Members
Chew, Cott, Perry, and Miller.
ABSENT: Council Member Smith
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 May 31
and June 7, 1994 City Council meetings.
Perry motioned, Brock seconded to approve the Minutes as presented.
On roll vote, Brock "aye", Cott, "aye", Miller "aye", Chew "aye",
Perry "aye", and Mayor Castleberry "aye". Motion carried
unanimously.
Mayor Castleberry presented Bob Nelson, Executive Director for
Utilities, an award from the American Public Power Association
3. Citizen Reports
A. The Council received a citizen report from Willie
Hudspeth regarding a drainage problem behind his house.
Mr. Hudspeth stated that Mr. Torrez had been very helpful with his
mituation. He had received a letter from Lee Allison regarding the
drainage ditch behind his home. He presented a video of the
drainage ditch area. He stated that there was an odor from the
channel behind his home and much debris in the channel. Mosquitoes
were a terrible problem from the channel. He owned the channel but
could not do anything to the channel to correct the problem. He
proposed that the City take car~ of the d~bri~ in th~ channel and
he would take care of the weeds.
City of Denton City Council Minutes
July 5, 1994
Page 7
Council Member Chew asked if Mr Hudspeth stated that he owned the
channel.
Hudspeth replied correct.
4. Public Hearings
A. The Council held a public hearing and considered adoption
of an ordinance rezoning a 0.4192 acre tract located on the north
side of East McKinney approximately 200' west of Loop 288 from
General Retail (GR) to Commercial with conditions [C(c)]. Z-94-011
(The Planning and Zoning Commission recommended approval 6-0).
Frank Robbins, Executive Director for Planning and Development,
stated that this was a conditioned zoning request which added only
one use in the commercial category to the list of uses already
authorized in the general retail category. The additional use
would be for warehouses in the zoning district. There was no
opposition of this zoning and the Planning and Zoning Commission
recommended approval as it met all of the conditions of the Denton
Development Plan.
The Mayor opened the public hearing.
Gary Hammett stated that the proposal would allow for a storage
building for the businesses in the area. Ten warehouses would be
erected on the property.
No one spoke in opposition.
The Mayor closed the public hearing.
The following ordinance was considered:
NO. 94-111
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A
CHANGE FROM GENERAL RETAIL (GR) TO COMMERCIAL - CONDITIONED
[C(c)] ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR
A 0.4192 ACRE TRACT OF LAND LOCATED ON THE NORTH SIDE OF EAST
MCKINNEY STREET, APPROXIMATELY 200 FEET WEST OF LOOP 288;
PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000 FOR
VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE.
Brock motioned, Perry seconded to adopt the ordinance. On roll
vote, Brock "aye", cott, "aye", Miller "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
City of Denton City Council Minutes
July 5, 1994
Page 8
B. The Council held a public hearing and considered adoption
of an ordinance rezoning a 17.9335 acre tract located on the east
side of Ruddell Street south of the extension of East Hickory
Street from single-family dwelling (SF-7) zoning district to Light
Industrial-conditioned [LI(c)] zoning district. Z-94-013 (The
Planning and Zoning Commission recommended approval 6-0).
Frank Robbins, Executive Director for Planning and Development,
stated that this was a zoning request from SF-7 to LI- conditioned
which was similar to the existing zoning to the east on the County
owned land. The County went through the zoning process but the
City was significantly constrained in a degree to which it could
impose zoning restrictions. The rule was one of reasonableness.
Was this a reasonable use for the property. The Planning and
Zoning Commission had recommended that on this site, the zoning be
changed from SF-7 to LI-c. This was similar to the zoning on the
property in which the County jail was located. The difference
between the LI conditioned and this site was that for the other two
tracts in the LI-conditioned zoning, a correctional facility would
be authorized if approved with a site plan and a specific use
permit. For this tract, a correctional facility was not allowed
but only two uses for governmental offices and professional
administrative offices. The condition recommended by the Planning
and Zoning Commission, other than the use condition, was that there
be no access on Ruddell Street. The Planning and Zoning Commission
recommended earlier and Council approved the preliminary plat of
the site. The County was now in the process of final platting of
Lot 1 which was the southern property. There was some concern for
access at Hickory and the County had indicated that a no access
situation was not acceptable. Staff believed that that would be a
condition which would be unreasonable to impose on the property
because zoned SF, the property needed access. As a separately
platted lot for which the preliminary plat had been approved, it
should have access. The condition recommended by the Planning and
Zoning Commission should be deleted. Other circumstances associated
with the development dealt with emphasizing access to the entire
property from McKinney Street which was the plan from the County.
Staff believed that the County was sensitive to traffic on Ruddell
and would be addressed in the future in the access to the entire
property. Lot one would be developed with a small maintenance
facility. Based on the low intensity area for this entire tract,
900 vehicle trips would be generated according to intensity
allocation. The way that the County had proposed to develop the
property, that amount would be much less. It was felt for legal
reasons, section 2.B. of the proposed or~inang~ ~houl~ ~ d~l~t~dt
removing the restriction of roadway access on Ruddell.
The Mayor opened the public hearing.
City of Denton City Council Min~te~
July 5, 1994
Page 9
Mike Jones, Director of Public Works for Denton County, stated that
although the plans for the property were not firm, the planning to
date did emphasize access off of McKinney Street as well as off of
Woodrow. There was a need for a secondary minor access off
Ruddell. The County wanted to work with Staff and were receptive
to many of the conditions requested for the property such as set
back requirements. The County intended to develop the property
with sensitivity to the neighborhood.
Marion Hamilton expressed a concern regarding the proposal. She
was not against the development but was concerned about the
additional traffic which curb cuts on Ruddell would cause. There
were many children in the area of the Phoenix Apartments. She had
been assured by the County that they would install a sidewalk and
fencing along the property. Additional traffic was a concern as
Ruddell was a narrow street with much traffic already. Any
additional traffic on Ruddell should include a widening of Ruddell
Street and additional access on Ruddell should consider the effect
on the pattern of traffic on Ruddell Street. She had talked with
the County about the possibility of making a Hickory extension
coming out of the property an exit only. Vehicles would enter from
McKinney and exit on Hickory.
Willie Hudspeth stated that his property was adjacent to the
property. He had indicated no original objection to the proposal
but was assured that there would be no access on Ruddell. Now he
was hearing differently. He could not understand the reason the
County would need access to Ruddell which was a residential area.
He felt that the County did not value individual lives which were
in the area and the County did not want to value the neighborhood.
There were small children in the area and asked why the County
needed access on Ruddell. He objected to the County having access
on Ruddell and felt that the County could have adequate access on
Woodrow and Hickory but as this was considered a second class area,
the residents would receive no response. ~
The Mayor closed the public hearing.
Council Member Cott asked for an explanation of the proposed road
restrictions.
Robbins stated that it was the staff's recommendation that, for
legal purposes related the rule of reasonableness, the proposed
ordinance be approved but that 2.B. be deleted whiCh was a
condition recommended by the Planning and Zoning Commission for no
access from Ruddell.
City of Denton City Council Minutes
July 5, 1994
Page 10
Council Member Cott asked for Council Member Chew's position on
the effect of this proposal on the future of the neighborhood.
Council Member Chew stated that he was against the proposal due to
the endangerment of children in the area even with the legal
restrictions. The County had another access to the property and
should use it.
Council Member Miller asked if the access proposed from the County
had been located and was it an extension of Hickory.
Jones stated that there would be no problem limiting access to the
point at the Hickory extension. The access point would not be for
the County's heavy equipment or trucks. The access would be for
future use for the public similar to residential vehicles.
Council Member Cott asked if that could be written into the
ordinance.
Robbins stated that the preliminary plat showed access on Hickory
Street. The final plat would provide additional access if
possible.
Mayor Pro Tem Brock stated that the City Attorney had informed them
that a governmental entity whether a university, the County or
Federal government could not be restricted by a city's zoning
ordinances. The City did not have the authority to restrict such
entities with what they did with their property so long as it met
the test of reasonableness. Court cases had indicated that this
proposal met such a test. The County could build the facility
without going through this zoning procedure. The current zoning,
which was SF-7 had such access to Ruddell. This process was to
work with a governmental entity as the County to solve some of the
problems. There were not many options regarding the proposal.
Council Member Perry felt that this proposal gave the City an
opportunity to work with the County so that the County could take
into account the feelings of the City regarding the proposal.
Council Member Miller stated that he understood that the County had
worked closely with the Planning Department and knew their rights
but did not use those rights over City objections. They had
indicated that their primary access would be on McKinney and that
the access would be for vehicle access only and not for trucks.
Miller motioned, Brock seconded to adopt the ordinance as
recommended by the Planning and Zoning Commission but striking 2.B.
from the ordinance. On roll vote, Brock "aye", Cott, "nay", Miller
City of Denton City Council Minutes
July 5, 1994
Page 11
"aye", Chew "nay", Perry "nay", and Mayor Castleberry "aye".
Motion failed with a 3-3 tie vote.
Mayor Castleberry asked for a ruling on the proposal from the city
Attorney.
Mike Bucek, Assistant City Attorney, stated that a 3-3 vote meant
that there was no action taken by the Council so that the present
zoning on the property continued as SF-7.
Robbins stated that while the zoning did not change, the County
could develop the property essentially the way the zoning would
have allowed it except that the zoning map would not be changed.
They could access at that point.
Bucek asked if there would be a problem with the preliminary plat.
Robbins replied no.
Council Member Miller asked that if the zoning remained SF-7 and
the County developed the property, would there be a restriction
where access could be developed on the property.
Robbins replied no.
Council Member Miller stated that the access could be anywhere on
Ruddell.
Robbins replied yes but that the preliminary plat for Lot 1 had no
access on Ruddell as that was where the maintenance facility would
be built. Lot 2 had a curb cut near Hickory. If there were to be
a different access point, the City could discuss that with the
County to determine if that access met the City's regulations
within the platting process at that time.
City Manager Harrell stated that there were certain conditions
which the County had voluntarily agreed to such as 100' setbacks
along Ruddell and the prohibition of a correctional institution on
the property. Would those conditions no longer be valid now that
the zoning had been rejected.
Robbins replied that one of the conditions regarding the 100'
setbacks was on the preliminary plat and the submitted final plat
so it would stay. The correctional facility condition was not
sDoken to with the action taken by the Council.
Council Member Chew asked if the County would still have access on
Hickory through the property.
City of Denton City Council Minutes
July 5, 1994
Page 12
Robbins replied correct and that it would be unreasonable to
preclude that access.
Mayor Pro Tem Brock stated that the problem in rejecting this
zoning change was that the City had less control over what would
happen on the property. With the proposed zoning there was a
condition which excluded a correctional facility. With the zoning
which was already in place, there was no condition which would
exclude a correctional facility. She was very much concerned about
having a correctional facility that close to a residential area.
Mayor Castleberry stated that the County could develop the property
in any manner it wished.
Robbins replied yes and that he would agree with the point that
Mayor Pro Tem Brock made. The City might be putting in jeopardy
the process already started and was concerned with the on-going
process.
5. Consent Agenda
Perry motioned, Brock seconded to approve the Consent Agenda as
presented. On roll vote, Brock "aye", Cott, "aye", Miller "aye",
Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion
carried unanimously.
A. Bids and Purchase Orders:
Bid #1632 - 1991 Upgrade Waterline
Bid #1633 - Ryan Road Paving and Drainage
Bid #1634 - Asbestos Abatement-Electric Production
Plant
Bid #1636 - Rear Load Refuse Trucks
B. Plats and Replats
Preliminary replat of Lots 1R and 2R, Block A, 3-J
Addition. The 0.6469 acre site was located on East
McKinne¥, east of the Piggly Wiggly store. (The
Planning and Zoning Commission recommended approval
6-0).
Preliminary replat of Lot 4F, Block A, Section 2 of
the Freeway Park Addition; into Lots 4F-1R through
4F-SR. The 8.481 acre site was located on the we~t
side of Mesa Drive, at Los Colinas Drive. (The
Planning and Zoning Commission recommended approval
6-o).
city of Denton City Council Minutes
July 5, 1994
Page 13
6. Ordinances
The Council considered the Consent Agenda Ordinances A. and B.
A. NO. 94-112
AN ORDINANCE ACCEPTING COMPETITIVE BIDS 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.
B. NO. 94-113
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.
Perry motioned, Brock seconded to adopt the Consent Agenda
ordinances A. and B. On roll vote, Brock "aye", Cott, "aye",
Miller "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye".
Motion carried unanimously.
C. The Council considered adoption of an ordinance
authorizing the Mayor to execute an agreement between the City of
Denton and ADS Environmental Services, Inc. for professional
engineering services.
Bob Nelson, Executive Director of Utilities, stated that this was
an engineering contract for inflow infiltration studies in the
Cooper Creek Basin sewer line and manholes. The total cost of the
contract was $146,000. There had been a reasonable amount of
inflow in that area and it was felt that there was a need to detect
the locations of any breaks. The study would determine the problem
and provide recommendations to correct those problems.
The following ordinance was considered:
NO. 94-114
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE
MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND
ADS ENVIRONMENTAL SERVICES, INC. FOR PROFESSIONAL ENGINEERING
SERVICES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND
PROVIDING AN EFFECTIVE DATE.
City of Denton City Council Minutes
July 5, 1994
Page 14
Perry motioned, Brock seconded to adopt the ordinance. On roll
vote, Brock "aye", Cott, "aye", Miller "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
D. The Council considered adoption of an ordinance amending
the 1993-94 budget of the City of Denton by appropriating the sums
of $991,672 and $201,037 from the Unobligated Fund Balance of the
Working Capital Fund to Account Numbers and 710-
025-0580-8710, respectively, and by appropriating the sum of
$2,400,000 from the Unobligated Fund Balance of the Electric Fund
to Account Number -8204; and providing for
publication.
Kathy DuBose, Acting Executive Director for Finance, stated that
the ordinance was necessary due to unanticipated increases in the
garage, warehouse and electric divisions. The Garage Division of
the working capital fund experienced a tremendous increase in
repairs including 11 landfill and electric utility equipment
vehicles. Also there was increased activity in construction
projects and general inventory problems. These were unforeseen
expenditures during the last budget process and required additional
appropriations to proceed. Because the inventory and sublet
repairs were internal service operations, any increased expenditure
would have an offsetting revenue in each fund.
Council Member Cott asked if this revenue was coming in this year.
DuBose replied yes.
Mayor Pro Tem Brock stated that this was not a net increase in the
budget.
DuBose replied no.
The following ordinance was considered:
NO. 94-115
AN ORDINANCE AMENDING THE 1993-94 BUDGET OF THE CITY OF
DENTON, TEXAS BY APPROPRIATING THE SUMS OF $991,672 AND
$201,037 FROM THE UNOBLIGATED FUND BALANCE OF THE WORKING
CAPITAL FUND TO ACCOUNT NUMBERS AND 710-025-
0580-8710, RESPECTIVELY, AND BY APPROPRIATING THE SUM OF
$2,400,000 FROM THE UNOBLIGATED FUND BALANCE OF THE ELECTRIC
FUND TO ACCOUNT NUMBER -8204; PROVIDING FOR
PUBLICATION; AND DECLARING AN EFFECTIVE DATE.
City of Denton City Council Minutes
July 5, 1994
Page 15
Cott motioned, Brock seconded to adopt the ordinance. On roll
vote, Brock "aye", Cott, "aye", Miller "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
E. The Council considered adoption of an ordinance
authorizing the retention of counsel to represent the City in
pending litigation styled Cohaqen v. City of Denton.
Mike Bucek, Assistant City Attorney, stated that this item dealt
with the retention of legal counsel in the lawsuit styled Cohagen
v. City of Denton. The attorney representing the City in the case
asked that the ordinance also confirm that the Council concurred
with the termination of the lease.
The following ordinance was considered:
NO. 94-116
AN ORDINANCE AUTHORIZING THE RETENTION OF COUNSEL TO REPRESENT
THE CITY IN PENDING LITIGATION STYLED COHAGEN, ET AL V. CITY
OF DENTON; AUTHORIZING THE FILING OF A COUNTERCLAIM FOR
ATTORNEY'S FEES; AFFIRMING PRIOR ACTIONS OF THE CITY MANAGER
AND HIS DESIGNEES RELATING TO THE LEASE OF PROPERTY BY THE
CITY; AND PROVIDING AN EFFECTIVE DATE.
Perry motioned, Chew seconded to adopt the ordinance. On roll
vote, Brock "aye", Cott, "aye", Miller "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
F. The Council considered adoption of an ordinance amending
ordinance No. 93-176 relating to the designation of depositories
for City funds to provide for the execution of depository pledge
agreements between the City and such depositories.
Harlan Jefferson, Treasurer, stated that the City's auditors
recently informed the City that there was a potential that the City
could lose the funds held by its local depository bank. These were
funds which were in the City's checking accounts. The loss could
occur if the depository bank filed for bankruptcy and the City did
not have certain legal documents on file. The auditors based their
opinion on a recent court case. The proposed agreement would take
care of two of the four elements and the bank would take care of
the remaining two elements.
City of Denton City Council Minutes
July 5, 1994
Page 16
The following ordinance was considered:
NO. 94-117
AN ORDINANCE AMENDING ORDINANCE NO. 93-176 RELATING TO THE
DESIGNATING OF DEPOSITORIES FOR CITY FUNDS TO PROVIDE FOR THE
EXECUTION OF DEPOSITORY PLEDGE AGREEMENTS BETWEEN THE CITYAND
SUCH DEPOSITORIES; AND PROVIDING FOR AN EFFECTIVE DATE.
Brock motioned, Cott seconded to adopt the ordinance. On roll
vote, Brock "aye", Cott, "aye", Miller "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried nanlmously.
u '
Mayor Castleberry indicated that the items listed as Resolutions C.
and D. were ordinances and would be considered at this time.
C. The Council considered adoption of an ordinance
authorizing the Mayor to execute Amendment No. 1 to the agreement
between the City of Denton and the Denton Chamber of Commerce for
the payment and use of hotel tax revenue.
Harlan Jefferson, Treasurer, stated that this agreement would amend
the current contract with the Chamber of Commerce to extend the
current contract to March 1995. Council included a requirement for
quarterly reports for performance and expenditures which was a new
State law requiring such reports.
The following ordinance was considered:
NO. 94-118
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 1
TO THE AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON
CHAMBER OF COMMERCE FOR THE PAYMENT AND USE OF HOTEL TAX
REVENUE; AND PROVIDING AN EFFECTIVE DATE.
Brock motioned, Perry seconded to adopt the ordinance. On roll
vote, Brock "aye", Cott, "aye", Miller "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
D. The Council considered adoption of an ordinance
authorizing the Mayor to execute Amendment No. 1 to the agreement
between the City of Denton and the North Texas Fair Association for
the payment and use of hotel tax revenue.
Harlan Jefferson, Treasurer, stated that the ordinance would amend
a similar contract with the North Texas Fair Association.
City of Denton City Council Minutes
July 5, 1994
Page 17
City Manager Harrell stated that now all the contracts for the
hotel/motel tax would come due on the same date.
The following ordinance was considered:
NO. 94-119
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 1
TO THE AGREEMENT BETWEEN THE CITY OF DENTON AND THE NORTH
TEXAS FAIR ASSOCIATION FOR THE PAYMENT AND USE OF HOTEL TAX
REVENUE; AND PROVIDING AN EFFECTIVE DATE.
Brock motioned, Perry seconded to adopt the ordinance. On roll
vote, Brock "aye", Cott, "aye", Miller "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
7. Resolutions
A. The Council considered approval of a resolution
suspending the proposed effective date of the proposed new rate
schedules and service regulations of Texas Utilities Electric
Company; providing that the rate schedules and service regulations
of said company shall remain unchanged during the period of
suspension; providing for notice hereof to said company; finding
and determining that the meeting at which this resolution was
passed was open to the public as required by law.
Bob Nelson, Executive Director for Utilities, stated that Texas
Utilities served approximately 700-800 customers in dual
certificated areas in Denton. They had filed four new electric
rates which included an economic development service rider which
provided for a reduced demand charge for new customers, a general
service competitive pricing rate which would provide for a
negotiated rate for commercial customers, a wholesale power
competitive rate for municipal cooperatives and other wholesale
dealers, and an environmental service rate for new technologies
such as ozone systems. The City had four options relative to the
proposed rates: (1) approve the rates as submitted, (2) deny
implementation, (3) relinquish the original jurisdiction over the
rates to the Public Utilities Commission or (4) suspend the
implementation of the new rates pending the PUC review and
adoption. In .the past, the City had retained original
jurisdiction, suspended the implementation and later adopted
whatever the PUC had approved. Staff was recommending a similar
procedure.
James Loveday, TU Electric, stated that on June 6, TU had filed a
package of new rates designed to enhance economic development,
City of Denton City Council Minutes
July 5, 1994
Page 18
improve the environment and encourage further energy conservation
by large users of electricity. The proposal was filed with the PUC
and cities in the TU electric service area. If approved, the new
rates would be offered to qualifying commercial, industrial and
wholesale electric customers as an incentive to attract new
businesses and to retain current businesses. The package also
included an incentive for qualifying customers who converted to
advanced technologies which would conserve energy or improve the
environment. The options would provide revenue that the company
otherwise would not receive thereby helping to reduce the level of
future rate requirements. It was felt that this was a vital step
in keeping TU's area competitive.
The following resolution as considered:
NO. R94-029
A RESOLUTION OF THE CITY OF DENTON, TEXAS SUSPENDING THE
PROPOSED EFFECTIVE DATE OF THE PROPOSED NEW RATE SCHEDULES AND
SERVICE REGULATIONS OF TEXAS UTILITIES ELECTRIC COMPANY;
PROVIDING THAT THE RATE SCHEDULES AND SERVICE REGULATION OF
SAID COMPANY SHALL REMAIN UNCHANGED DURING THE PERIOD OF
SUSPENSION; PROVIDING FOR NOTICE HEREOF TO SAID COMPANY;
FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS
RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW;
AND PROVIDING FOR AN EFFECTIVE DATE.
Cott motioned, Chew seconded to approve the resolution. On roll
vote, Brock "aye", Cott, "aye", Miller "aye", Chew "aye", Perry
"aye", and Mayor Castleberry "aye". Motion carried unanimously.
B. The Council considered approval of a resolution
appointing a member to the DENCO Area 9-1-1 District.
City Manager Harrell stated that the governihg body of the DENCO 9-
1-1 District was made up of two representatives appointed by
cities. Each year the cities had to cast a ballot for
representatives to serve on that Board. All cities in Denton
County had one vote and the majority of votes cast by those cities
elected a representative. The two current city representatives were
Olive Stephens and John McGrane. McGrane's term expired on
September 1 of this year and McGrane had indicated that he did not
wish to continue serving. The only individual indicating a
willingness to serve on the Board was Don Franklin from Trophy
Club. Harrell had called Lewisville and Carrollton to se~ if they
had any other nominations but they indicated that there was no
interest at this point in time and expressed confidence in
Franklin.
City of Denton City Council Minutes
July 5, 1994
Page 19
The following resolution was considered:
NO. R94-030
A RESOLUTION NOMINATING A MEMBER TO THE BOARD OF MANAGERS OF
THE DENCO AREA 9-1-1 DISTRICT; AND DECLARING AN EFFECTIVE
DATE.
Cott motioned, Perry seconded to nominate Don Franklin as a
representative to the DENCO 9-1-1 Board. On roll vote, Brock "aye",
Cott, "aye", Miller "aye", Chew "aye", Perry "aye", and Mayor
Castleberry "aye". Motion carried unanimously.
8. The Council considered nominations/appointments to the City's
Boards and Commissions.
Mayor Castleberry indicated that the Council had made nominations
at the last meeting and those were ready for approval.
Perry motioned to approve those nominated at thelast meeting. On
roll vote, Brock "aye", Cott, "aye", Milier "aye", Chew "aye",
Perry "aye", and Mayor Castleberry "aye". Motion carried
unanimously. (Attachment A)
Mayor Castleberry indicated that Vera Laney had been omitted from
the previous nomination to the Keep Denton Beautiful Board.
Cott motioned to approve the Laney nomination. On roll vote, Brock
"aye", Cott, "aye", Miller "aye", Chew "aye", Perry "aye", and
Mayor Castleberry "aye". Motion carried unanimously.
Additional nominations were made by the Council as indicated in
Attachment A.
9. Vision Update
There was no report given at this time.
10. Miscellaneous matters from the City Manager.
City Manager Harrell continued with the Major Budget Issues.
Workin~ Capital fund - the budget proposed to add one position in
the warehouse for a courier to pickup and deliver items such as
office supplies, mail and packages to various city departments.
Alternatives were (1) fund the position to provide pickup and
delivery service among various city departments, or (2) not fund
City of Denton city Council Minutes
July 5, 1994
Page 20
the position which would allow $24,969 to be reallocated for
expenditures.
Major Issues - Utilities
The total budget for utility operations was estimated at
$102,284,000 with proposed expenditures of $100,538,000. Revenues
were based on an electric increase of 1% in the base rate plus a
possible 1.25% increase in the energy cost a4justment if needed;
water was proposed with a 2% increase and wastewater, an 8%
increase. The solid waste revenue was based on a $.85 per month
increase in the residential rate, a 9.95% increase in commercial
rates and $1.00 per cubic yard increase in the landfill disposal
rates. Based on these proposed rate increases, an average
residential customer's monthly bill would increase $4.16 or 3.2%.
Electric Summary - it was proposed that the average residential
customer would have a $1.32 per month increase. Included within
the electric system, was the electric adjustment for lower income
individuals in the community to offset the increased sales tax. An
adjustment was proposed in the RI rate which would decrease
approximately 6.16% in rates for those customers and resulting in
a $45,000 decrease in revenue in the electric system. This
proposal had been reviewed by the Sales Tax Advisory Committee who
unanimously supported the change as a way to achieve the stated
objective. Three new positions proposed in the electric system
were a senior engineer in production, an electronic technician in
communications and an operation and maintenance trainee in
production. Two worker years of temporary hours were added plus
the Customer Information Coordinator position would be transferred
to General Government with utility support. At the request of the
Public Utilities Board, the proposed budget included a new
expenditure for a street rental fee to be t~ansferred to General
Government and would be based on 1% of Denton's electric rate
revenue. The new fee was suggested as a way in which the
wastewater ROI transfer could be capped at 6% of new investment but
not more than 12% of revenue. Because the new water plant was
coming on line, a drastic increase in the amount of transfer to the
General Fund was anticipated.
Water Summary - the Water Department proposed budget was based on
a 2% increase in rates. No new positions were proposed and one
senior engineer would be transferred to the Solid Waste Landfill
Division.
Wastewater Summary - the proposed budget recommended an 8% increase
in rates and included several new positions of an environmental
monitoring technician and half of the cost of the Director of
City of Denton City Council Minutes
July 5, 1994
Page 21
Environmental Services position.
a cap on return on investment
proposal.
The proposed budget also assumed
related to the street rental
Sanitation Summary - the proposed budget included an $.85 increase
in the residential rate, a 9.95% increase in the commercial rate
and a $1.00 per cubic yard increase in the landfill disposal rate.
Three new positions recommended included one dispatcher, a
recycling coordinator and a senior engineer transferred from the
water department plus a temporary intern position.
In addition, the Community Service area had been undergoing a
restructuring that resulted in the Director of Environmental
Services managing the solid waste department. One half of that
position would be funded by the sanitation department and one half
would be funded by the wastewater department. The proposed budget
reduced .50 worker years of administrative interns that were
transferred to the General Fund to video tape the city council
meetings for cable television broadcast. The position of Street
Superintendent had also been eliminated.
Council Member Cott stated that many organizations were downsizing
and the last page of the report seemed to indicate that revenue and
income were going in the wrong direction. If there were money
left, he felt that it should be given to the taxpayers and not
used.
City Manager Harrell replied that as the property tax options were
discussed, that was an option which the Council had. A rate had
been recommended which was $.011 cents below the effective rate but
could be lowered if Council wanted to make other decisions to have
that flexibility. The City was trying to downsize from past years
as seen by the reduction of supervisory functions.
Mayor Pro Tem Brock asked that the chart% ~hich the City Manager
presented be made into handouts for the Council. She suggested
that the information regarding the public hearing on the budget be
published as much as possible in order to receive public input on
the budget.
City Manager Harrell stated that the budget calendar indicated that
August 23rd would be the public hearing on the budget.
11. There was no official action taken on Executive Session items
discussed during the Work Session Executive Session.
City of Denton City Council Minutes
July 5, 1994
Page 22
12. New Business
The following items of New Business were suggested by Council
Members for future agendas:
A. Council Member Cott requested a discussion regarding the
downtown fire station.
Mayor Castleberry indicated that that would be a part of the budget
session discussions.
Council Member Cott stated that it needed to come relatively soon
as there was a need to discuss the item as quickly as possible.
13. There was no Executive Session held during the Regular
Session.
With no further business, the meeting was adjourned at 8:45 p.m.
~NNI~E~ WALTERS-
U~ITY SF~RETARY
CITY OF DENTON, TEXAS
ACC001F1