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Minutes September 06, 1994CITY OF DENTON CITY COUNCIL MINUTES September 6, 1994 The Council convened into Executive Session on Tuesday, September 6, 1994 at 5:15 p.m. in the Civ£1 Defense Room. PRESENT: Mayor Castleberry; Mayor Pro Tem Brock; Council Members Chew, Cott, Perry, Miller and Smith. ABSENT: None 1. The Council considered the following in Executive Session: A. Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071 B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072 Ce Personnel/Board Appointments -- Under TEX. GOV'T CODE Sec. 551.074 The Council convened into a Special Called Session on Tuesday, September 6, 1994 at 6:00 p.m. in the Council Chambers. PRESENT: Mayor Castleberry~ Mayor Pro Tem Brock; Council Members Chew, Cott, Perry, Miller and Smith. ABSENT: None 1. The Council considered approval of a resolution supporting legislative action to make a technical correction to the Texas Open Meetings Law to authorize governmental bodies to consider the appointment of board and commission members in closed session. City Attorney Drayovitch stated that this resolution was prepared at Council Member Miller's request and supported a legislative change to equalize the treatment for appointment of board and commission members of a governing body. Council Member Cott stated that it appeared that several years ago the practice was started to make all possible deliberations public. He asked for an explanation as to why Council Member Miller wanted to change that procedure. Council 3~ember Miller stated that until two years ago, Council was able to discuss boards and commission members in executive session just as they could do with officers of the City. The change was an opinion from the Attorney General dealing with a State Board and his opinion was that all boards and commissions at the city level would be included in that opinion. Policy decision making boards were not affected. He was suggesting that a change be made to return the procedure ~ ~.be way it used to be. This would treat citizens of the communlt~' in the same manner employees of the City were treated. The resolution was requesting a technical correction to the Attorney Gene~a~is opinion. City of Denton City Council Minutes September 6, 1994 Page 2 The following resolution was considered: NO. R94-049 A RESOLUTION SUPPORTING LEGISLATIVE ACTION TO MAKE A TECHNICAL CORRECTION TO THE TEXAS OPEN MEETINGS LAW TO AUTHORIZE GOVERNMENTAL BODIES TO CONSIDER THE APPOINTMENT OF BOARDS AND COMMISSION MEMBERS IN CLOSED SESSION; AND PROVIDING AN EFFECTIVE DATE. Miller motioned, Chew seconded to approve the resolution. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "nay", and Mayor Castleberry "aye". Motion carried with a 6-1 vote. 2. The Council held a discussion and gave staff direction regarding the 1994-95 fiscal year budget. City Manager Harrell stated that this session would balance the budget in preparation for the formal ordinance adopting the budget. During the budget process, which started in June, major budget issues were identified which needed to be decided on in order to balance and finalize the budget. Staff had provided a series of alternatives and made a recommendation on which alternative to proceed with for each major budget issue. Tonight Council could work through those issues to balance the budget. Council had had an opportunity to add major issues to the budget and each of those additional items would also be discussed. The starting place for the discussion was the addition of two items to the budget as presented to the Council. One was the staff recommendation for a 24.5% reduction in the property tax rate of $.7479 to $.5645 per $100 valuation. If Council accepted the staff recommendation, there would be a surplus of $236,910 for the budget. The second adjustment was a need for dollars for street lighting as this item was underbudgeted by $35,000 resulting in a positive balance of $201,910. A. General Fund 1. General Fund Reserve Level - this was the appropriate fund balance to carry over year to year to respond to an emergency. It should not be set too low so that there would not be enough funds for an unexpected emergency and it should not be set too high to over tax the citizens.~ In the past, the established reserve level was at 8-10% of .the general fund revenue. The proposed budget had a 10% fund balance in the general fund which would allow for a sizeable amount ~6f funds to be released. In the proposed 27 City of Denton City Council Minutes September 6, 1994 Page 3 budget, 62% of the amount would be used for one-time expenditure items such as capital improvements. The staff's recommendation was for a 10% reserve level. Council Member Cott suggested an 8.5% level as consistently in the last 5-6 years there had been a 10% level as part of the budget. Council Member Perry felt more comfortable at the 10% level considering there might be a need for those funds in an emergency. Consensus of the Council was to tentatively set the reserve fund level at 10%. 2. Revenues a) Sales Tax - 1% General Purpose Tax - This issue dealt with the percentage of sales tax growth projected from this year to next year. The recommendation from the staff was a 4% growth in the 1% sales tax revenues. If Council wanted to increase that figure, every percent of increase was $69,000. Staff felt that 4% was very conservative but it was felt that it was better to be conservative rather to go over budget. Mayor Pro Tem Brock stated that she would be making some proposals later which would require additional expenditures and felt that 5% would be reasonable and conservative. Council Member Smith stated that the 4% or 5% would be in addition to the 10% growth realized this year. The 10% was already figured into the budget and assuming that it would continue, the 4% would be an anticipated growth above the 10%. Under those terms, she would prefer to stay with 4%. Mayor Pro Tem Brock asked if the projection was a 14% growth over the current income. City Manager Harrell stated that as the revenue estimates were made, it was estimated that the growth rate would come in at about 10.5% which was the base number to project the growth for next year. Ten percent was built into the floor of the rate. Staff felt it should be increased 4% for next year. Council Member Cott felt comfortable with 4% and that there would not be a risk-with that figure. Mayor Castleberry felt th~ 4% was a good figure. 28 City of Denton City Council Minutes September 6, 1994 Page 4 Council Member Miller agreed that 5% was still conservative and based on what was seen, would be appropriate. Consensus of the Council was to remain at 4%. b) Sales Tax - 1/2 cent to Reduce Property Tax - one charge of Sale Tax Advisory Committee was to work with the Finance Department to reduce the property tax. The proposed budget, using the formula provided by the State, indicated that the one half cent sales tax would generate sufficient revenues to permit a 16.72% reduction in valuation or a reduction of 22.8% in the City property tax rate. The other reduction which was built into the budget was due to the increased valuation which allowed the actual tax rate to decline and a small decrease in the effective rate. This issue did not required a Council decision as it was provided by law. c) Property Tax - currently the proposed tax rate was $.5645 which was a 24.52% reduction over the current rate. Several options were available to the Council. If the Council went to the effective tax rate which was the amount which would provide an offset for the half cent sales tax and an offset for the increase in assessed value, the tax rate could be increased to $.5689 which was a 23.93% decrease in the tax rate. This rate would generate $320,000. The highest the rate could go was $.5860 which was 3% above the effective rate and would generate $644,000. If the Council decided to have a 25% property tax reduction, the new tax rate would be $.5609 and generate $168,709. If the Council wanted to break even, the rate would be $.5520 which was a 26.19% reduction and would generate $101. Mayor Castleberry proposed a 25% reduction in property tax. Council Member Cott felt that the City Manager recognized that the City had explosive growth and was in the process of completing such growth. The City needed sewers, parks roads, fire engines and personnel. ' Council Member Miller asked to keep this item open at this point in time. He felt there was a need to' look at what needed to be provided and what services to provide for the next year. He suggested waiting to see what the numbers added up to and where the money was coming from. Council Member Perry agreed with the 25% reduction which was not a large difference in money~ Council Member Chew ag~ed with 25% City of Denton City Council Minutes September 6, 1994 Page 5 Council Member Smith tentatively agreed with the 25% but wanted to leave open if needed. Mayor Castleberry stated that the consensus was a 25% rate. 3. Pay Plan Adjustments - the recommendation was for the same increase as was granted last year. The average increase would be 4.6% with Civil Service also at 4.6%. The increases would be staggered beginning January 1 through April 1 of next year. Consensus of the Council was to proceed with a 4 6% increase for pay plan adjustments. ' Council Member Cott stated that a study had been done to determine the best way to pay employees but for several years it could not be done as the dollars were not available. In the past few years, it had been possible to grant increases to the employees. Council Member Smith asked for an explanation of the Mercer study. City Manager Harrell stated that the Mercer study performed a comprehensive pay plan study of the City and where it was relative to the market and then recommended a pay system for the City. The study looked at City positions and determined where in the market those positions were. As part of the study, Council adopted a philosophy to pay employees at a midpoint of the competition. Each year a survey was done to determine where the market was for employees. 4. Benefits Adjustments a) Health*Insurance - the budget had projected an 8% increase in health insurance rates. Ha. rris had proposed two options for medical coverage for the next year. One option would not change any of the benefits and would result in a 0% increase. That option would save $110,000 overall and $66,000 in the general fund. The second option was a 2.5% decrease in premiums and would necessitate a change in the prescription drug program. Currently an employee paid $10 for each prescription. The proposal would charge $10 for a name brand prescription and $5 for a generic drug plus a few minor changes in the smoking cessation coverage and implant birth control devices. If the second proposal were selected, $87,285 would be returned to the general fund and $144,822 returned to all funds. If the second option were accepted, it was recommended that $3,000 be left in the account to help fund half of the .o~st of a ~moking ce~sa%ion program for 6 months for the employ ~es. 30 City of Denton City Council Minutes September 6, 1994 Page 6 Mayor Castleberry asked if the Employee Insurance Committee recommended the second option. City Manager Harrell stated that the Committee was not unanimous but the majority of the members present did favor the change. Consensus of the Council was to proceed with a 2.5% decrease and with the smoking cessation program for $3,000. b) T.M.R.S. - last year the Council approved an increase in the level of contribution into the plan from 5% 2-1 match to a 6% 2-1 match. The City was still on the low end of the contribution rate with competing cities with most cities participating in a 7% 2-1 match. Staff was not recommending the 7% level as other budget needs needed to be addressed first. This was an ongoing issue and should be considered at the budget session in future years. If Council wanted to go to the 7% this year, $250,905 would have to be added back into the budget.. Consensus of the Council was to proceed with the staff recommendation to remain at a 6% 2-1 match. 5. Positions - the recommendations for positions were divided into three major categories of maintenance positions, reinstated positions and positions of enhancement of level of service for the citizens. a) Police Jailers - these positions were required for the new City jail. Three additional jailers would be hired to assist the current three jailers on duty. This would provide 24 hour 7 day a week coverage with an associated cost of $71,600. Consensus of the Council was to proceed with this hiring. b) Library Staff for Denton Public Library South - these positions were required in conjunction with the opening of the new branch. The recommendation was to hire four full-time employees effective January 1, 1995 to staff the branch library. The total cost would be $77,635. Consensus of the Council was to proceed with this hiring. c) Fac.~ lities Management Part-Time Janit6r - currently facility management staff came in on an overtime basis to lock and unlock city faci~-ities. This position would be assigned those duties rather than paying the overtime. ! Consensus of the Council was to proceed with this hiring. .City of Denton City Council Minutes September 6, 1994 Page 7 d) Parks Maintenance Light Equipment Operator and Grounds Keeper at South Lakes Park - the park would be under construction this fall and would have associated maintenance responsibilities. Two and a half employees would be hired effective April 1, 1995. Their primary responsibility would be South Lakes Park. Consensus of the Council was to proceed with this hiring. e) Animal Control Clerk - this position was a replacement of a position cut in a prior year. Consensus of the Council was to proceed with this hiring. f) Building Inspections Plans Examiner - this was a recommendation to hire a plans examiner in Building Inspections. Since 1990 the number of building permits had increased by 36% and the number of inspections had increased by 24%. In prior years this position was eliminated due to the lack of building activity. With the current activity, there was a need for this additional position. Consensus of the Council was to Proceed with this hiring. · g) Engineering.- Eliminate Street Supervisor - Eliminate Engineer - Add Engineering Technician II While one position was being added in this area, two positions were being taken out. The Street Supervisor position would be eliminated and be incorporated into the management responsibilities of the City Engineer. An Engineer in the Transportation area ·would be eliminated due .t~ reorganization. The proposed position was a lower level position of Engineering Tech II which did design work for street reconstruction, etc. Consensus of the Council was to proceed with this hiring. Council considered Item j). j) Legal Part-Time Prosecutor- the proposal would increase the part-time prosecutor position to full time or from 30 to 40 hours per week. This request was driven by the Court o~ Record change for Municipal Court. The cost of the position was $8,910. Consensus of Council was.Go proceed with this hiring. Council considered ~t~4~: i) City of Dentgn City Council Minutes September 6, 1994 Page 8 i) Cable Television Administrative Intern - this quarter time addition would assist with televising work sessions for the Council meetings. Consensus of the Council was to proceed with this hiring. h) Police Officers - these positions would be hired in January at a cost of $40,00 which would allow the hiring of two officers. Because of the Crime Bill, it was hoped that the City would be able to add 5-6 officers to work in the COPS program. Consensus of the Council was to proceed with this hiring. 6. Other Agency Contributions - currently the proposed budget contained an allocation of $300,000 for the various agencies. $150,000 would come from the general fund and $150,000 from CDBG funds. That represented an increase of $50,000 in Block Grant funding and $1700 ~n general fund funding from the current allocation. Council Member Chew left meeting with potential conflict of interest as 'he was a member of the SPAN Board of Directors. Consensus of the Council was to proceed with the recommendation. 7. Transportation - this represented the funding level for SPAN and Handihop transportation services. The budget, as recgmmended to Council, allocated $82,626 to SPAN for Handihop and the trolley service. This represented an increase over the current year of $25,799. Consensus of the Council was to proceed as recommended. Council Member Chew returned to the meeting. 8. Tax Exemption for Persons Over 65 - in the 1988-89 budget, Council decided to proceed with a plan to raise the exemption to $25,000 Over the years the amount had been increased by $1000 per year to a level of $21,000. There had been no increase in the 1992-93 budget. The current amount was $21,000 and the recommendation would increase the amount to $22,000. Consensus of the Council was to increase the exemption by $1,000 to. $22,000. ' 33 City of Denton City Council Minutes September 6, 1994 Page 9 9. Reserve Fund a) Fire Reserve Fund - the current reserve was at $248,000. Council built this fund over a number of years since 1987-88 and in 1991 began to use that reserve. As in the past, the recommendation was to use $50,000 for the next year and was included in the budget proposal. Consensus of the Council was to use part of the reserve fund. b) Hotel/Motel Occupancy Tax Reserve Fund - this fund was established a few years ago by Council in order to have a reserve for special projects or unanticipated needs for these funds. The estimated balance for this fund was $145,000 and staff was recommending to use $124,180 to allow the funding of a new roof at the Civic Center which was an eligible use for these funds. Mayor Pro Tem Brock suggested investigating the cost of adding a kitchen to the facility to gain more rentals. City Manager Harrell stated that the long range space plan called for Parks and Recreation to be relocated to the Service Center. After that, the Civic Center would be renovated so as to return the current offiCe space to meetings rooms for rental. Consensus of the Council was to proceed with the recommendation. 10. Street Improvements - a Council priority was to continue directing resources for street improvements. $810,000 had been programmed for repaving, reconstruction and maintenance of City streets in addition to bond funds. This represented a major increase from previous allocations. Consensus of the Council was to proceed as proposed. 11. Consulting Assistance - three different programs were recommended for consideration in this budget. The first program was the investigation of establishing impact fees for the community. The cost for this consulting firm would be $100,000, $75,000 from the utility fund and $25,000 from the general fund. This did not commit the Council to go forward with the process but would allow for the funding if Council so desired. If the Council did not go forward, $25,000 could be added to the general fund. Council Member Cott felt that impact fees were not needed in Denton. Consensus of the Counci~ was to proceed with the recommendation. 3¸4 City of Denton City Council Minutes September 6, 1994 Page 10 The second item dealt with the investigation of the data processing system. It had been a number of years since there was a major upgrade of the system and this would help establish a long range plan in this area. The cost would be $50,000. Consensus of the Council was to proceed with the recommendation. The final area was a consultant to work with the zoning ordinance for the City. This would be a land use expert in the legal field who would review some of the items proposed by the Zoning Task Force for legal compliance. The cost of this study would be $25,000. Mayor Pro Tem Brock stated that the recommendations of the Task Force had been completed for some time and last year the City could not proceed with the consultant due to budget constraints. The proposed zoning would present greater flexibility for developers. A consultant was needed for a good base of evaluation. Consensus of the Council was to proceed with recommendation. 12. Cable Television - currently the proposed budget contained enough dollars to televise the regular and work sessions of the Council. There were no additional funds to expand televising such as the Planning and Zoning Commission meetings and informational sections about City operations. To do that would require $32,000 for an additional person. The budget contained the funds needed to continue what currently was being done. Mayor Pro Tem Brock felt this was too large a jump and increase at this point in time. An alternative form of funding might be available for this project. She agreed with the staff recommendation to not fund the extra expenditure at this point in time. Consensus of Council was to proceed with the staff recommendation to televise work sessions and regular sessions of City Council. 13. Senior Center Doors - the alternatives for automated doors at the S~nior C~nte~ included (1) a door similar to one at City Hall for $2960 or (2) an automated door such as at a grocery store for $7000. Council had indicated a preference for alternative (2). Consensus of the Council was to proceed with $7000 doors for the Senior Center. 14. Space Expansion r City Hall West - the Engineering and Planning Departments w~utd be moving into this facility. Currently City of Denton City Council Minutes September 6, 1994 Page 11 there was $22,601 included within bond funds for renovations. There were two concerns regarding this building. One was that this was a relatively small amount of money to take on such a renovation. The second was that money was not provided to install an automatic sprinkler system. An estimate for that system would be $50,000 and with only smoke detectors would be $19,000. An addition to the budget would have to be made if Council wanted to include that item. Mayor Castleberry felt that there should be funds for sprinkling and funds for renovations. He suggested rounding the figure off to $300,000 for renovations and sprinkling. Council Member Cott felt there was a need to delay that move for several years until the fire concept was resolved. Council Member Miller felt that there was a need to continue with the space plans. He had a question concerning the sprinkling of the building and the request for enhancement funds from the transportation funds. The city had a high ranking at this time on the regional level-and wondered if the timing of the renovation project would allow the City to wait to receive an answer on those funds before expending funds. Rick Svehla, Deputy city Manager, stated that the Highway Commission would consider the project at its November 30thmeeting. Council Member Miller asked how this would relate to the City's expenditure of funds for such a project. City Manager Harrell stated that it would coordinate just fine. If the project was included on the 30th, there would be time to make a decision on ~hether or not to make that expenditure. Council Member Miller asked what would happen if the item were placed in the budget and then not used. Would the $300,000 be available to use for renovation or $300,000 less the $50,000 fc~ the grant. City Manager Harrell stated that would be a Council decision. Council could direct staff to set aside $50,000 for sprinkling if the City did not get the grant and $20,000 for additional renovations. If the City received the grant, the money set aside for the sprinkler system would roll over to next year. Council Member Miller stated that he supported the Mayor's suggestion to view thi~:issue as independent of other decisions. City of Denton City Council Minutes September 6, 1994 Page 12 Council Member Smith stated that she was in favor of setting the money aside in the event that the City did not receive the grant. If the City was trying to get others to install a sprinkler system, the City should lead the way. council Member Perry felt that the City should proceed with this being a part of a long-range plan and that plan should include the sprinkler system. Mayor Pro Tem Brock agreed with the concept of setting aside the money for the sprinkler system. She stated that the building would require extensive renovation for the new departments. Mayor Castleberry stated that the Council's recommendation was to set aside $77,399 for the City Hall West renovation project. If the City received the grant for a sprinkler system, the $50,000 would be reserved for future use. This would allow the City to remain on schedule for City Hall West. 15. Space Expansion - City Hall - the City Hall renovation project was scheduled to start in a year with $224,000 set aside for renovation which was not a large amount for the renovations necessary. Additional funds would be an alternative for this budget. The way the schedule appeared, it would be possible to delay consideration of this item for few months and delay some decisions to fiscal year 1995-96. Mayor Pro Tem Brock stated that she was in favor of delaying the decision until the next fiscal year. Council Member Miller stated that he supported the idea of deferring the item for several months. He felt it would be a burden to put this project and the City Hall West project in the same budget year. Council Member Cott felt that this would be a delaying of funds and not an elimination of funds. This Council could not bind a future council with their decisions. He suggested delaying both buildings for several years and solve the downtown problem. Council Member Perry stated that he was in favor of encumbering the money and moving ahead with the plans. Council Member Smith stated that she was in favor of delaying the project for several months~.~ The renovation of City Hall West might take more time than plann~. 37 City of Denton City Council Minutes September 6, 1994 Page 13 City Manager Harrell stated that the $220,000 that was set aside for the renovation of City Hall came from specific bond allocations for building construction and could not be diverted for other use. The supplemental funds could be diverted but not the bond funds. Mayor Castleberry stated that one problem with delaying the project would be the escalating costs. Since the City did have the bond money for the project he would like to continue with the Schedule as this was not money out of the general fund. Mayor Pro Tem Brock felt that there were three positions on the issue - one to put the project on hold, one to delay the project for approximately three months until the next budget year, and one to continue with the current schedule. Mayor Castleberry stated that if the project were kept on schedule, it might be possible to de~ray some additional costs. In the next budget year, the project would have already started and it might be possible to include funds from that budget year for the project. Mayor Pro Tem Brock stated that the delay would only be for three months until the next fiscal year. Council Member Perry stated that"the money for the prOject was available in bond funds and that. the project should proceed on schedule. Me was not in favor of slowing the process. Council Member Miller asked that if the project would proceed on schedule, would $224,000 be included in this budget but not the funds for the sprinkler system and other items. Mayor. Castleberry stated correct. Council Member Miller felt that there might be a problem with a bid proposal which only had the items which the $224,000 would cover. Mayor Castleberry stated that interest rates might a'so be a factor. Council Member Chew felt that it would be wise to delay the project for three months and look at what the project would cost as there would probably be more costs than anticipated. Council Member Cott stated that he did not want to scrap the project but to delay it for one year. He asked if bond funds had to be used for such a pro'jeer. : 38 City of Denton City CounCil Minutes September 6, 1994 Page 14 City Manager Harrell stated no but that bonds had already been sold for this project. Any additional funds added to that amount could come from general funds, the selling of certificates of obligation, etc. Council Member Perry asked if City Hall West was included on a list of one-time expenditures. City Manager Harrell replied no that there might have been some furnishings included on a list of one-time expenditures but the major renovations were not included in that listing. Council Member Smith asked if it would take a year for City Hall West to be completed. City Manager Harrell stated that the tentative time line indicated that it would be completed in about June/July of 1995. Council Member Smith stated that bids for City Hall would not be let until that time. City Manager Harrell replied that bids for City Hall would be taken in July/Aug of 1995. Brock motf0ned, Miller seconded to delay the decisions about funding the City Hall renovations until the next fiscal year. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "nay", and Mayor Castleberry "nay". Motion carried with a 5-2 vote. 16. Juvenile Diversion Task Force - the Task Force recommendatioms were to establish a teen court to deal with juvenile offenses and provide a counseling service for referrals for the teens. IRe total cost of the recommendations including a small revenue loss for the Municipal Court was $22,009. This wouldimplement the teen court and the counseling service assuming that the DISD would ~un.l 1/3 of the cost of the two programs and the City fund 2/3's of the program. council Member Miller stated that he supported"the expenditure of $22,009 for the program and urged the DISD to match 1/3 of the project. There would be many hours of time donated from others for this program and the recommendations were very important for the citizens of Denton. Consensus of the coun~cil was to proceed with the st a ~ f recommendation to spe~d $22,009 for the program. 39 City of Denton City Council Minutes September 6, 1994 Page 15 17. TTRIPS Funding - this was a DISD program out of the Fred Moore School which helped keep young mothers in the school system by providing day care expenses. As of February 1, the DISD funding would lapse and there was a need for $12,000 for the program or it would be terminated. There was a suggestion that the City consider allocating $6,000 for the program provided'the DISD matched the allocation.' Mayor Castleberry asked if this was a one-time expenditure. City Manager Harrell stated that the request had been presented to keep the program going this year and there might be requests for future years. The City had an involvement in the program last year with CDBG funding. The Block Grant Committee decided to not fund the program for next year. Mayor Castleberry asked if there had been an indication from the DISD on whether they would continue funding. Council Member Miller stated that the DISD thought they would receive federal funding for the project but it did not materialize. Next year they would receive federal grant funds. The Human Services Committee did support the program. Council Member Cott stated that the DISD needed to get this program going but the City needed to be careful that it did not have.to continue funding each year. Consensus of the Council was to proceed with the recommendation to fund $6000 for the program. 18. Visual Arts Center - Fans - the proposed fans would help improve the cooling system at the Visual Art~ genter at a cost of $1600 for 8 fans in the major meeting area. Council Member Cott asked if the Center had the responsibility for the fans. City Manager Harrell stated that that was a policy decision which could be made. The lease agreement with the Visual Arts Center provided that the City would consider major expenditures which might be necessary. That was'a policy decision of the Council as to whether the City should assume some of those responsibilities. Council Member Smith state, that prior discussions i~cluded looking into the necessity of re~laoing the air conditionxng system and this action was a moderate approach to trY and add cooling to the building. ~'~ 40 City of Denton City Council Minutes September 6, 1994 Page 16 Council Member Perry stated that the Visual Arts Center was used by many different groups and the investment would make the facility more suitable for such users. Council Member Cott felt that not all taxpayers should have to pay for those who liked the arts. Mayor Pro Tem Brock stated that it was not just people interested in the arts who used the building but all kinds of groups. This was a broad based community building with the support of many in the community. Consensus of the Council was to provide $1,600 for fans in the Visual Arts Center. 19. Fire Station Location - options available for this item included: (1) continue the status quo with the operation of Stations 2, 3, 4, and 5 and having Central closed. Central would be th9 administrative headquarters for the department with ambulance services available during the day. This was a no cost option with no budget implications. (2) Reactivate Central and make it a working station. To make the Station ready, there was an option to use some of the $200,000 in the Fire Reserve fund to make some of the most critical repairs to allow Central to be used on a permanent basis. If $20,000 were.spent for furniture and $200,000 for repairs there would still would be some major additional expenditures needed to be made to keep Central operational. (3) Reactivate Central on a temporary basis with no repairs to the building. (4) Construct a replacement station for Central near the Carroll/Eagle area. This option had been discussed at great length by the Council prior--to closing Central. This option would use a portion 'of the $200,000 in the Fire Reserve fund and purchase property for a future station for Central. Council Member Smith asked if option three were selected, where would manning and equipment come from. City Manager Harrell stated that he would review Item 20 which ' dealt with the fire station manning issue. 20. Fire Station Manning - Options for manning included: (1) keeping the status quo with current staffing and operations with no cost to the City. (2) ISO Standards'indicated that the City was short 36 firefighters at a cost of $1~'3 million to make up that deficit. Those standards should be used as guidelines and Denton, with a very limited tag base, would not measure up to any recommended staffing l~Vel. (3) Open Central immediately by using $20,000 funds to temporarily occupy the building. This would be City of Denton City Council Minutes September 6, 1994 Page 17 done with no additional manpower. In order to free up a crew to fully staff Central on a full-time basis without adding personnel, ... a ladder truck would be taken out of service, transfer those individuals to one of the reserve pumper trucks and place that truck at Central. The downside of that option was: (1) thereWas only one ladder truck and if taken out of commission, there would be no aerial support or a delay of aerial support to a working fire. The aerial truck at Central would not be effective as that truck did not have any water. A ladder truck worked with a pumper truck so it would not be effective to place a ladder truck at Central. (2) The ladder truck provided back-up support for the front line ambulance assistance. To remove the ladder truck would decrease in effectiveness of the ambulance service. Chief Cook suggested that if the Council purchased a quint, it could replace the ladder truck. The cost of a quint was $60,000-70,000 for a truck lease purchase but was not as expensive as personnel costs. Council Member Miller stated that there was a possibility of combining of option 1 which deal with the hiring of new personnel. City Manager Harrell stated that staff had been asked to develop an option on the effect hiring 3 firefighers in January 1995 and three more in July 1995 would have. In the July time frame there was a battalion chief near retirement and once he retired, would not be replaced but would be replaced with 2 new firefighters. It was estimated .that the cost for hiring three new fire fighters in January 1995, one in July and two with the retirement of the battalion chief plus overtime for minimum manning and the benefits for the battalion chief would be $118,000. The downside was that from the time a firefighter was hired, 6 months would pass before he was ready for service due to training needs. If this plan seemed acceptable to a majority of the Council and Council wanted to proceed in this manner, he would suggest a phased plan would allow chief Cook to work with his management people to develop recommendations for the best method of deployment. This was not an instant fix. Increments of three personnel was essential due to the scheduling of the Fire Department. (4) Maintain current operations but allocate funds for an additional one ~r two fire fighters at a cost of $27,000 for one and $54,000 for two hired in January. This would not improve operations but would help with overtime costs. (5) If Central were reopened immediately and the ladder crew transferred, there was a possibility of putting on an additional ambulance during peak hours and staff three ambulances full time during peak hours of the day. That cost would be $160,00 for 8 hours and $183,000 for 12o~ours. 21. Ambulance Transfers - there was a recommendation that the City consider providing eXcldsive EMS patient transfer service. If 42¸ City of Denton City Council Minutes September 6, 1994 Page 18 done, sufficient revenues might be generated to pay for the improvements needed by the Fire Department. A preliminary legal review of state law did not give the City the authority to become an exclusive provider. If the City were to go into the EMS transfer business, it would have to do so on a competitive non- exclusive basis. Options for the EMS were (1) not enter the EMS business and (2) enter the transfer business on an experimental basis to determine what kind of revenue would be generated and what kind of work load would be placed on current personnel. If done, the firefighers would be placed on an overtime basis to provide the staff needed to make the transfers. Mayor Pro Tem Brock stated that she intended to make a proposal to add 6 firefighters to the department, three in January and three in July. If these firefighters were added, would that be helpful to Chief Cook and in what way. Cook replied that the additional fire fighters would be very helpful. He had always felt that Denton did not have an adequate and sufficient number of fire 'fighters. Much of the issue had focused on fire protection while most of the department's business was medical services. Any personnel would be welcomed to the Fire Department and Cook urged Council to start to correct the Department's personnel problems. However, he would have a problem if the Council asked him to staff an additional fire station. Council Member Cott asked if it were understood what the citizens in the downtown area wanted and why they were at the meeting. Cook replied yes and that he was appreciative of the support of the citizens. Historically there had always been a station in the downtown area. Response time should be addressed through fire detection and fire sprinkling systems. He felt that if there were a fire in many of the buildings on the Square, the City would not have sufficient personnel on duty to deal with %he fire. Council Member Miller asked Chief Cook if he would have a problem opening a new station if six more fire fighters were added and if Cook were able to deploy them as needed. Cook replied that it would depend on timing. If Council wanted to open a station immediately, the best option would be to hire individuals back to man the other ambulance with overtime. Council Member Miller asked if personnel could be added this year and more in the future, w~ld six more individuals help with the option to temporarily reoDen central and to look at a site near downtown. He felt tha% those options would go together. Reopen Central when additionai'-p~rsonnel was available. He asked if there City of Denton City Council Minutes September 6, 1994 Page 19 would be better fire protection by having the downtown station opened. Cook replied if there was adequate staffing, there would be better fire protection downtown. In prior discussions with Council, it was noted that staffing six stations would give the best response time and the best fire protection. The decision was made to operate five stations and it had been determined which five would be best. Council decided to close Central based on that determination. He had always been a public advocate of sprinklers and technology and felt that there was room for improved efficiency given the current staffing. But fire fighters put out fires in the final analysis. He stated that given the people he would work out the plans for Council consideration. Council Member Cott asked if an alarm system would work downtown. Cook replied that early detection was critical but unfortunately fire alarms should not be confused with sprinklers. Alarms were not a substitute for sprinklers. Council Member Perry asked Cook to review some of the positive aspects of the Fire Department. Cook stated fire protection was not exclusively the fire department. It was an entire package such as public education programs, fire inspections, and community development program for rehabilitation of substandard housing. The street program and water system was excellent to the fire stations. The response time to the community was much improved as was the safety for the fire fighters with additional apparatus. Council Member Smith stated that in 1990 the City's rating had increased from a 5 to a 4 with a i being the best. Cook replied that the 1990 ISO rating was improved from a 5 to a 4. Mayor Castleberry stated Cookhaf' indicated that water pressure in the downtown area was not adequate. Cook stated that historically there had been some deficiencies in the southern portions of downtown area. There were some concerns along Carroll Blvd. Mike Gregory stated that central Denton was more than the downtown Square. Sprinkler ~ystem~we~e good but would not take care of a residential fire' in that area. The Fire Department supplied ambulance service but sprinkler systems did nothing to assist the City of Denton City Council Minutes September 6, 1994 Page 20 Department with a car accident. Ambulance service was critical as a fire service. There were major churches in the area and currently there was no ambulance service in the area. Rather than reducing the tax rate by 25%, he suggested reducing the rate by 22% which would provide an additional $400,000. Nine fire fighters, the number to man the Central Station 24 hours a day, at a cost of $40,000 per fire fighter was $360,000. Reducing the tax rate by 22% rather than by 25% would pay for those fire fighters. There was $200,000 in reserve which would provide funding for the renovations to the Central Fire Station. There were many residences and businesses in the area. Ken Gold presented options for hiring six fire fighters which was included in the agenda back-up materials. With more personnel, six stations could be manned. Options for personnel would be to (1) hire six fire fighters in January and not open Central but create four man engine companies. This was the national standard and were 48% safer and over 50% more efficient. (2) Keep a truck company but not include Central. (3) Opening Central with 6 people. This would keep 3 ambulances which were needed. (4) This option added 2 people, opened Central, had four man ambulances, no truck company, and included the transfer service. This was a negative scenario in which more people were added but the situation would be worse. The Fire Fighter's Association encouraged a task force to study the issue of patient transfer and the issue of which stations to run, etc. Mayor Castleberry indicated that the following speaker cards had been received from citizens who did. not wish to address the Council: Arleen Morrison, Renae Seely, Arthur J. Seely, Norma G. Seely, Joe M. Funk, Vernice Funk, Berrie Ann Huggins, Jake Craven, Mabel Craven, Ken Frady, Dow Huggins, Art Seely Jr., John Schrader, Bob Shaw, Lamar Ball, Mike Bardwell, Holly H~rvey, Willie Malone, Pat Courtney, Bennie Snider, Eddie Woodruff, Chuck Schenck, Carol Mills, Karen Atchison, and Phil Bronkhorst. Lamar Ball believed that the Denton residents were not receiving adequate protection. He felt that it was a fraud that the City thought it was giving adequate protection. He felt that the City would pay for the lack of adequate fire protection sooner or later when there was a major fire. Ken Gold stated that the Council had several choices for funding for new fire f~ghters. The proposal by Mr. Gregory or the use of the reserve fund were possible choices for funding as was the sales tax projection which cou]~ safely go to 5% or higher. The key was minimum staffing for.t~ Department. 45 City of Denton City Council~Minutes~ .~ <~ September 6, 1994 Page 21 Council Member smith asked Gold for the safety record of the fire fighters in the Department. Gold replied that he did not know. John Schroeder stated'that the citizen response to the issue showed the vital concern of the people of Denton not only of the downtown area but of the situation.in general. The Council controlled the destiny of Denton. Arthur Seely stated within the last two weeks there was a fire which probably could have been handled with one or two trucks but that there were extra trucks at the fire because there was not enough fire fighters to handle the fire. Cook replied that fire trucks were taxicabs for the fire fighters. A fire usually required only one or two pieces of equipment but because fourteen people were needed on a scene, more trucks were needed. It was felt that. fourteen was minimum number of personnel needed to provide support functions for a fire. Seely stated that he understood that last week there was a 911 call to the extreme northern section of town. All the ambulances were out and it was necessary to use a reserve ambulance and a reserve crew from the Teasley Station. Cook replied there were two ambulances staffed full time and the truck crew staffed the ambulance in District 3 with a back-up ambulance at Stations 4 and 6. Every engine was equipped with advanced life support equipment and could do everything which an ambUlance could do except for transport. When the third and fourth medical call was received, problems were experienced. Council Member Smith stated that much of the Council's planning was long range planning and decisions were not rushed. Council made the decision to close Central in 1991 and it was a rationally made decision. The indications were that coverage was quite adequate for the Square and the response time was adequate. None of that had changed. The Square and the downtown area still had protection. The current discussion was about the degree of protection. There were many other problems in the City which would require attention in the ne~t year. Her recommendation was that after the budget was settled, a CIP program be started and a committee established to work on those CIP projects. O~ of the projects would be where new fire staeions were needed and how many were needed. The City ha~d tremendous drainage problems in Denton and a research progrpm was needed on what to do about that situation as well. .T~ie would take time but if started soon, it City of Denton City Council Minutes September 6, 1994 Page 22 would be a move in the right direction. She felt that the City had a good record of fire prevention and good education in that area. In order to move forward, she felt the solution was to work toward a CIP committee to oversee these issues. These were major capital investments and she recommended this step after the budget was finalized. Mayor Pro Tem Brock agreed with Council Member Smith that long range planning was needed, that there were many capital needs in the City and would support a task force for CIP projects. That would not preclude taking some action at this time. She noticed that the prior decisions were not made on the basis of optimal coverage but on the basis of expenditures - how could money be saved. It was concluded that there was not enough money to keep six stations open. There was a great deal of pressure to provide a fire station south of Interstate 35 which was the site of the new Station Six. Throughout the discussions, there were comments that there were budget constraints that directed this. It needed to be noted that these might not have been ideal decisions based on the fact of having not enough money. In part of the 1991 materials, she noted an option that a citizen's task force be formed to recommend a station closing schedule, a new station location and the use of the closed stations. This would probably be incorporated into the CIP proposal. These materials also indicated a need for more fire fighters and that the City was understaffed a~d that as soon as financially possible, more fire fighters would be added. She considered Item 20, Level of Manning, a separate issue from the location of stations. Whatever was decided in regards to station location, steps needed to be taken to increase staffing. She had originally planned to recommend that three fire fighters be hired in January and another three in July for a cost of $118,000 for the first year. That amount would be doubled in the next fiscal year. During this evening's discussion, she was inclined to propose the hiring of six fire figh%ers in January and three in July for a cost of $199,000 which would be doubled for a full fiscal year. Council Member Miller asked if Item 20 could be Considered at this time. Mayor Castleberry stated yes if Council so desired. Council Member Perry stated that this was the fourth time to consider this item and did not ~ee a reason to change the order but if the majority of the Council desired, he would not object. Council Member Miller .~uestioned that this was the fourth time staffing had been lo~ked: at. City of Denton City Council Minutes September 6, 1994 Page 23 Council Member Perry stated that the entire problem had been discussed a number of times since he had been on Council. He felt that Council Member Smith was proposing to set the entire problem in the context in the entire needs of the City and not in a particular issue. Council Member Miller stated that the minutes of July 1991 indicated that the only reason staff was looking at the option of operating five stations as opposed to six was the cost of yearly operation. This was tied in with the number of people which the City could afford to deploy. He felt that the citizens wanted more fire fighters and were willing to pay for them. Conditions had changed since 1991 and 1992 and there now was the funding available to respond to the need for fire fighters. Council Member Smith stated that manpower should come under the providence of a CIP due to the large sums of money involved. The locations of the fire stations was primary to this as then it would be up to the .Chief to determine what manning was needed. The Council's policy was where the stations should be located. Mayor Castleberry did not see a reason to change the agenda order and asked Council for a consensus. Consensus of the Council was to remain in agenda order. Item #19 - Fire Station Location Council Member Miller suggested leaving this option open and depending on staffing, determine when a station could be opened. If the money were included in the.budget, then the option was there to be used. If the dollars were not included in the budget, nothing could be done. He suggested including $20,000 for the possible reopening of Central subject to manning and timing. Consensus of the Council was to not include Council Member Miller's suggestion in the budget. Item #20 - Fire Station Manning Brock motioned, Miller seconded to add six fire fighters in January and three in July With the provision that deployment would be left up to the Chief in consultation with his management people. The Council was not directing the Chief on how to deploy those people. On roll vote, Brock "aye",~Cott "aye", Miller "aye", Smith "nay", Chew "nay", Perry "nay", a~d Mayor Castleberry "nay". Motion failed with a 3-4 vote. City of Denton City Council Minutes September 6, 1994 Page 24 Mayor Castleberry stated that staff had recommended a temporary transfer system without adding staff. Consensus of the Council was to defer the issue until a later date. 22. Additional Part-Time Help at MLK - this was a package submitted by the Parks Department but did not get ranked for approval. If the Council wanted to include this item, $7,494 would have to be added to the budget. Council Member Chew indicated that this item was included at his request because of the additional use from Tomas Rivera and adequate staffing for programs. Consensus of the Council was include the item in the budget. 23. Tax Exemption for Disabled Persons - if Council implemented this item it would not go into effect in this budget year and there were no immediate dollar implications. Next year, assuming the same number of individuals would qualify as' did for the DISD exemption, a $3,000 exemption level would cost $2,235 and a $10,000 exemption level which was the same as the DISD, would cost $7,451. Mayor Castleberry stated that this would set the'wheels in motion for the next budget year. Chew motioned, Smith seconded the allow for the exemption on the same level as the DISD. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. B. Working Capital 1. Warehouse Courier - $24,969 would be financed from the working capital fund which would charge using departments for this service. There would be no impact on the general fund. Perry motioned, Smith seconded to proceed with the courier. On roll vote, Brock "aye,, Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. C. Utilities Electric '~' a) Rate~ - 1% Base Rate increase/l% ECA rate increase - the Public Utilities Board city of Denton city Council Minutes September 6, 1994 Page 25 recommended the increases as noted. The R1 rate would be reduced per the pledge of the sales tax election for lower income residents. Consensus of the Council was to proceed with the recommendation. Mayor Castleberry stated that he had a Speaker card from carol Mills on this item who indicated that she opposed an increase in the utility rates. b) Positions - 3 full-time positions of a senior engineering production, an electronic technician in communications and one operation/maintenance trainee in production. Two worker yea~s of temporary years were added and the Information Coordinator position was transferred to general government with partial support. -Consensus of the Council w~s to proceed with the recommendation. A street rental fee which was recommended by the Public Utilities Board would be included in the budget to hold down the wastewater increase. 2. Water Rates - 2% increase - The Public utilities Board recommended 2%. increase in this rate and no positions were requested. Consensus of the Council was to proceed with the recommendation. 3. Wastewater a) Rates - 8% increase - The Public Utilities Board recommended an 8% increase. Consensus of the Council was to proceed with'the recommendation. b) Positions - the one position requested was an environment monitoring technician which was required by EPA regulat~.ons for testing and monitoring. Consensus of the Council was to proceed with the recommendation. 4. Sanitation - a) Rates ' Residential - 7.67% Commercial - 8% Landfill - $1.00/cubic yard increase - Consensus of the Counc!1 was to proceed with the recommendation. 50 City of Denton City Council Minutes September 6, 1994 Page 26 b) Positions - three full time 'positions were proposed. A dispatcher in commercial, a recycling coordinator and a senior engineer who would be transferred from the Water Department and .one worker year of temporary hours for administrative interns. Consensus of the Council was to proceed with the recommendation. D. Other Budget Issues Council Member Miller stated that the branch library would not be adequately furnished due to past budget constraints. The Friends of the Library had raised a considerable amount of money but had not met their goal. He suggested adding some funding to the Library budget for furnishings. City Manager Harrell stated that the budget had some allocations for books and reference materials. The Friends of the Library had set a goal to raise $200,000 for additional books and for new furniture. Currently the Friends had raised $35,055 toward that goal and had set a time frame of October 1994 to conclude their fund raising. Council Member Smith agreed with Council Member Miller and the need to furnish the library. There was also a need for taped books in the libraries which might be another consideration. City Manager Harrell stated that there was interest money in the bond account for possible use at the Library. Council Member Miller suggested using $50,000 at the Library for furnishings and books. Council Member Chew asked if this would be in addition to the interest funds. He suggested using the total reserve for the Library Council Member Cott stated that the Library knew they would have old furniture and would have to raise money and still decided to proceed. The Council could not find enough money for fire fighters but would give the Library $200,000. Council Member Miller felt that each item on the budget was independent and separate. He understood that the Council felt that there was no need for additional fire fighters. When the budget was prepared for the Library, it was the same as for City Hall west. It was thought~that the dollars would go further than they did. City of Denton City Council Minutes September 6, 1994 Page 27 Council Member Cott stated it was not his intent to compare this item to the fire fighters. Mayor Pro Tem Brock stated that the request did not come from the Library - that Council had.asked for the information..It was the Council's responsibility to make adjustments to the budget. Don White stated that the money should be earmarked for books and others should produce a place to sit. Council Member Chew indicated that his vote was not to not put on new fire fighters. His vote was to do it in a systematic and orderly way. He felt that Council Member Smith's recommendation was valid. Council Perry suggested using the $97,492 and the interest money for furnishings and books and tapes for the Library. Consensus of the Council was to proceed with the recommendation. smith motioned, Chew seconded to approve the proposed changes in the budget package as noted on the Council board. Council Member Miller stated that he was reluctant to vote on the motion due to the decision on the fire fighters. He did not feel including the item in the CIP would help the problem as it would possibly take years. He felt the decision was not good. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. Mayor Castleberry stated that the Council could now vote on Package A General Fund 1-5 omitting items 6, 7, 13, 14, 16, 17, 18, and 22, 23, B1 and including the utility items. Smith motioned, Chew seconded to approve the Package as indicated by the Mayor. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Chew "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. Council Member Chew left meeting with a potential conflict of interest. 'Council considered Items 6.and 7. 52 City of Denton City Council Minutes September 6, 1994 Page 28 Smith motioned, Perry seconded to approve Items 6.and 7. On roll vote, Brock "aye", Cott, "aye", Miller "aye", Smith "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. With no further business, the meeting was adjourned at 11:30 p.m. Cc~__ TY S~ET~Y CITY OF DENTON, TEXAS BO~ CASTLEBERRY, MAY~R city oF DENTO,., T~.~-~ ~ / ACC0020C