Loading...
Minutes July 11, 1995180 CITY OF DENTON CITY COUNCIL MINUTES July 11, 1995 The Council convened into a Closed Meeting on Tuesday, July 11, 1995 at 5:15 p.m. in the Civil Defense Room. PRESENT: Mayor Castleberry; Mayor Pro Tem Biles; Council Members Brock, Cott, Krueger, Miller and Young. ABSENT: 1. None The Council considered the following in Closed Meeting: A. Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071 Discussed the potential litigation concerning the request to rezone 3.73 acres on the south side of 1-35E and Lindsey Street from SF-7 to Commercial zoning. B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072 Discussed the acquisition of property for expansion of the City's landfill. Co Personnel/Board Appointments -- Under TEX. GOV'T CODE Sec. 551.074 The Council convened into a Special Call Meeting on Tuesday, July 11, 1995 at 6:00 p.m. in the Council Chambers. PRESENT: Mayor Castleberry; Council Members Brock, Cott, Krueger, and Miller. ABSENT: Mayor Pro Tem Biles and Council Member Young. 1. The Council considered nominations/appointments to City of Denton Boards/Commissions. Animal Shelter Advisory Board - Council voted on the nomination of Bob Rohr. On roll vote, Miller "aye", Cott "aye", Krueger "aye", Brock "aye", and Mayor Castleberry "aye". Motion carried unanimously. Council voted on the nomination of Brenda Sherpell. On roll vote, Miller "aye", Cott "aye", Krueger "aye", Brock "aye", and Mayor Castleberry "aye". Motion carried unanimously. Mayor Pro Tem Biles and Council Member Young joined the meeting. Downtown Advisory Board - Council voted on the nomination of Dan Martin. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. Keep Denton Beautiful Board - Council voted on the nomination of Robert Gentile. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. City of Denton City Council Minutes July 11, 1995 Page 2 181 Planning and Zoning Commission - Council voted on the nomination of Guy Jones. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. Council voted on the nomination of Bob Powell. On roll vote, Miller "nay", Young "aye", Cott "aye", Krueger "aye", Brock "nay", Biles "aye", and Mayor Castleberry "nay". Motion carried with a 4-3 vote. Sign Board of Appeals - Council voted on the nomination of Eldon Seaton. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. Council made the following nominations: Electrical Code Board Council Member Krueger nominated Doug Grantham Library Board Council Member Krueger nominated Keith Swigger Sian Board of Appeals Council Member Miller nominated Gene Gumfory 2. The Council considered and took action to suspend the Council Rules of Procedure and reconsidered a motion to request the City Planning and Zoning Commission to initiate the rezoning of 3.753 acres on the south side of 1-35E and Lindsey Street from SF-7 zoning to Office zoning with the condition of no motel or hotel use and any other conditions which the Planning and Zoning Commission deems necessary. This item was not considered at this meeting and was deferred to the next meeting. 3. The Council considered adoption of an ordinance authorizing the payment of actual damages, court costs, and attorneys' fees awarded against a councilmember, committee or board member, officer, or employee of the City of Denton, Texas resulting from an act or omission of that employee in the course or scope of his employment for the City which arises from a cause of action for negligence, in accordance with the terms and conditions of this ordinance. Herb Prouty, City Attorney, stated that this proposal would put into ordinance form a current policy of the City. That polioy indicated that the City would indemnify its officers and employees if they were acting in the course and scope of their employment and '2 City of Denton City Council Minutes July 11, 1995 Page 3 were sued. It provided for the payment of damages in event that an officer or employee of the city was sued and assessed damages which were not covered by insurance. Limitations included that the provision would not apply to any willful act, gross negligence or official misconduct. There was a limit of $100,000 per person or $300,000 per occurrence for personal injury or $10,000 for property damages. It also provided defense through outside counsel in those cases where there might be a conflict between the City's position and the employee's position. It did not waive any defenses such as governmental immunity or individual immunity that officers or employees of the City might have. It did not create any rights for third persons and did not prevent the City from taking disciplinary action versus employees who were sued. It also did not create any obligation on behalf of the City to pay employees damages in the event they would be sued by the City. It required employees to give written notice within 30 days of the time'from being served. In the ordinance, the definition of employee included all Council Members, members of City boards and committees, all officers and employees of the City and other persons including volunteers and former officers and employees. Council Member Cott stated that if the insurance were taken away which no one had had and if the City was not free to represent them, then the voice of people was taken away. This was a way to protect the City and keep the City Council in charge. Council Member Miller stated that this ordinance covered a policy which was already done. It protected the actions of those working for the City in their role as employees. He asked if it covered former Council Members. City Attorney Prouty stated that it did cover former employees and volunteers. The following ordinance was considered: NO. 95-128 AN ORDINANCEAMENDING CHAPTER 2, ENTITLED "ADMINISTRATION", OF THE CODE OF ORDINANCES OF THE CITY OF DENTON BY ADDING A NEW ARTICLE VIII ENTITLED "LEGAL DEFENSE AND INDEMNIFICATION OF CITY OFFICERS AND EMPLOYEES"; AUTHORIZING THE PAYMENT OF ACTUAL DAMAGES, COURT COSTS, AND ATTORNEYS~ FEES AWARDED AGAINST A COUNCILMEMBER, COMMITTEE OR BOARD MEMBER, OFFICER, OR EMPLOYEE OF THE CITY OF DENTON, TEXAS RESULTING FROMAN ACT OR OMISSION OF THAT EMPLOYEE IN THE COURSE OR SCOPE OF HIS OR HER EMPLOYMENT WHICH ARISES FROM A CAUSE OF ACTION FOR NEGLIGENCE AND PROVIDING FOR THE LEGAL DEFENSE OF THAT OFFICER OR EMPLOYEE, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. City of Denton City Council Minutes July 11, 1995 Page 4 Biles motioned, Cott seconded to adopt the ordinance. Council Member Brock asked if former employees would be included for actions while acting in their capacity. City Attorney Prouty replied yes only while acting in the scope and course of employment. There were statutes of limitations which might still be in effect but the individual was no longer an employee of the city. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. The Council convened into a Work Session on Tuesday, July 11, 1995 in the City Council Chambers. PRESENT: Mayor Castleberry; Mayor Pro Tem Biles; Council Members Brock, Cott, Krueger, Miller and Young. ABSENT: None 1. The Council received a report from the Historic Landmark Commission concerning the Historic Resources Inventory. Jane Jenkins, Preservation Officer, stated that the Historic Landmark Commission had spent the last three months reviewing the final stages of the process which took two years in the making. Ralph Newlan, Historic Preservation Consultant, stated the survey involved the identification of historic properties within the City limits. The total inventory and process was to identify, assess, document and make recommendations on the findings. Denton had 2,409 individual properties. Of that number 766 were high or significant properties which was 32% of the total properties. Most cities had 18-22% high priority listing. Slides of homes and businesses included in the survey were shown. Benefits of the survey included a complete inventory of all historic properties ranked in high - low priority and the potential of recognition of Denton's historic properties. Council Member Brock stated that Newlan had mentioned during the preliminary survey a time when many residences were built and the Commission Members felt that the building of the inner urban was significant at that time. Newlan replied that that time period of the inner urban was the 1920's. Universities were growing, the City was in a beautification movement, streets were Daved. and hosDitals built, all of which contributed to Denton's growth. The second phase of the survey would involve more research regarding individual people 183 184 City of Denton City Council Minutes July 11, 1995 Page 5 who built the homes and contributed to Denton's future. Council Member Young complimented the Historic Commission for including homes in southeast Denton. Many homes were moved to that area. Newlan stated that as they surveyed that part of the City, they noted that some of the homes probably came from Quaker Town and there could be more possibly identified. Council Member Miller asked if the data could be put into a computer data base. Newlan stated that as the GIS program was developed, the information could possibly be entered into that system. Frank Robbins, Director of Planning and Development, indicated that the information could be entered into that system. 2. The Council held a presentation and discussion of the 1995-96 major budget issues report Lloyd Harrell, City Manager, stated that prior to the time when the official budget document was submitted, staff presented staff's judgement as to the key policy issues contained within the budget which needed to be focused on. As department heads made presentations, Council possibly would add other major budget issues, working towards the final budget decision. He would be presenting 13 major policy issues as well as major utility issues. Each issue was analyzed with various alternatives to deal with the issue plus a staff recommendation which was contained in the proposed budget. There were several attachments in the back of the major issue book. Appendix A was divided into two parts. The first part was a listing of those operation and maintenance budget packages which were included in the proposed budget. The second part was a listing of budget packages which were included in the proposed budget. Appendix B was a listing of those packages which were not recommended in the proposed budget for funding. Appendix C was the Council's priority questionnaire results. Appendix D was the revenue summary of the general fund. Appendix E was the summary of the expenditures of the general fund. Appendix F was a summary of the fleet condition. This budget could be characterized as a modest budget compared ~ ~he~. Major Budget Issues 1. General Fund Reserve Level - Over the years, Council had followed a policy of maintaining a general fund unreserved balance for unforeseen emergencies that might arise. The adopted goal had been to maintain this balance between eight to ten percent of the General Fund expenditures. Council had had a strong preference for City of Denton City Council Minutes July 11, 1995 Page 6 185 a fund balance of approximately 10%. The proposed budget recommended a 10% level. This gave the Council flexibility for some of the items projected in the budget. It was projected that the budget would end with a 15% reserve level. In order to get to the 10% level, the Council would have $1.7 million to allocate for other programs and still maintain a 10% level. One concern was what to do next year. If Council took all of dollars and allocated that entirely to operation and maintenance expenses, when the budget process was started next year for 1996-97, unless there was a similar situation, Council would have to find $1.7 million to continue those programs. Last year it was recommended that Council take a large amount of fund balance and allocate it for one time expenditure items as opposed to ongoing operation and maintenance items. In the proposed budget, staff was suggesting that that be divided 43% for one time expenditures and 57% for operation and maintenance. That would build in some protection for the Council. The 43% of one time expenditures were divided into two parts - one part for building improvements primarily for the renovation of City Hall and the second for the replacement to the fleet for vehicles and machinery. Alternatives were to allow the balance to stay at its current level and find an additional $1.7 million of revenue or decrease expenditures; use $1.7 million of the balance as a resource to help fund the 1995-96 budget; or reduce the fund balance below the ten percent level and utilize the additional funds to offset other revenues or fund additional expenditures. Staff was recommending utilizing the $1.4 million of the unreserved balance to help balance the 1995-96 budget with 43% of this amount being allocated for one time expenditures. 2. Revenues A. Sales Tax - ~¢ to reduce property taxes - For the first time since the implementation, Council was able to reduce the property tax by 25% because of the revenue generated by the new ½¢ sales tax. This year the State Comptroller's Office had estimated that the City would generate $3.6 million from the ½¢ sales tax. This represented an increase over this's year generation of approximately $202,000 which would translate to another one cent reduction in the City's property tax rate. Staff was recommending that the one cent additional property tax reduction be implemented because of the increase in sales tax. This would follow the pledge made to the voters when the ½¢ was voted. Council Member Brock stated that she understood that the law allowing the ½¢ sales tax election to reduce al valorem taxes required that the ½¢ sales tax be used to reduce property tax. City Manager Harrell stated that the alternative was worded that way because the tax rate being suggested was well below the effective and rollback rate of the City. The law did not require a reduction in the property tax. Staff was indicating this was the 186 City of Denton City Council Minutes July 11, 1995 Page 7 way that this was sold to the voters and that any additional sales tax money generated over and above the amount generated last year should be earmarked for property tax reduction. Alternatives for the ½¢ sales tax were to utilize the projected $202,000 increase to reduce the property tax rate two percent of $.01 per $100 valuation; not use the estimated increase to reduce the property rate. This would provide $202,000 for additional expenditures. Council Member Krueger stated that according to staff figures, there was going to be approximately 3+ percentage points which could be used to decrease taxes. He asked what 1% would generate in revenue. City Manager Harrell stated that staff was suggesting a 2¢ reduction in the property tax which was a 3.5% decrease in the property tax. council Member Krueger asked what one percent would represent. City Manager Harrell stated that one cent represented $195,000. Council Member Krueger stated that 3.5% would be $390 000 in tax reduction. ' City Manager Harrell replied correct. Mayor Pro Tem Biles left the meeting. B. Sales Tax - one percent qeneral purpose ta~. The only decision the Council needed to help make regarding the sales tax was what kind of growth the City would have next year. What kind of increase would that one percent sales tax generate. The budget proposed a three percent growth in overall receipts over the current year's estimate. Last year a four percent growth was projected. The first few months of the budget year went well. However, the last three-four months were not doing as well and it was felt that the ending figure would be right at 4%. Each additional one percent growth in sales tax receipts generated an additional $105,000 of revenues. Alternatives for the sales tax growth included projecting less than a 3% growth; projecting a 3% growth for 1995-96; or project greater than a three percent growth. For each one percent of growth, an additional $105,000 would be generated for new programs, staff recommended a three percent sales tax growth rate be used to balance the 1995-96 budget. Council Member Cott stated that the sales tax was coming from the retail stores. City Manager Harrell ~tated that tax was collected by the retail stores but was coming from the consumer. City of Denton City Council Minutes July 11, 1995 Page 8 187 Council Member Cott felt the City should not use the economic sales tax to reduce ad valorem taxes. City Manager Harrell replied that in the proposed budget there was nothing suggested for another ~¢ economic development tax. That might be another issue which the Council might want to debate. Council Member Krueger questioned if staff might not be underestimating the sales tax and could the City do 4% next year. City Manager Harrell stated that that would be a policy issue which the Council could debate to determine what they were comfortable with. He agreed that the 3% growth was on the conservative side. He felt that the figure was kept down due, in part, to what had happened the last three-four months with tax receipts. The City had realized a substantial drop off in the last several months. The sales tax tended to be more volatile than the property tax. The property tax could be better estimated and what was collected would be close to what was projected. Sales tax was an estimate and could change during the year. Council Member Krueger felt that the Council's hands were tied because of what had already been printed in the newspaper due to a surplus. There was no surplus and the City would be spending reserve funds. It had been reported that there would be a surplus and that property taxes would be reduced. City Manager Harrell stated that the City Charter required a proposed budget be presented to the Council 60 days prior to the start of the fiscal year. Council Member Krueger stated that the problem he had was that if he went after any project he wanted, he would not be able to do so as taxes might not be reduced. He suggested that in the future a zero decrease be used and then Council could go from there. Mayor Pro Tem Biles returned to the meeting. Council Member Cott felt that the sales tax was more stable than it used to be. City Manager Harrell stated that in the macro picture it might be. The way the timing was, if there was a drop in the property tax, there was time to react to that in establishing a budget. The sales tax did not have a forewarning of any problems. If there was a problem midyear measures would have to be used to correct the problems. C. Property tax - At this point the property tax roll showed an increase of $82 million in assessed value. Of that, 55% was new value and 45% was an increase in reappraisals. Two numbers were 188 City of Denton City Council Minutes July 11, 1995 Page 9 "give" numbers in the budget. One "give" number was the property tax. The assessed value as it ultimately would be certified by the Appraisal District had been discounted by ½ percent. The final figures would not be known until July 25th. If there was a drop off on ½ percent, the budget was predicated on a reduction of the tax rate from $.5609 to $.5409. If the numbers on July 25th indicated a stay even rate or a slight increase, the Council might have some additional funds to work with and still keep a $.02 decrease. If there was a 2% drop in the assessed value, in order to keep a $.02 decrease, additional reductions would have to be done or some additional revenues found. Council Member Brock stated that last year some citizens had complained that the city should not have reduced the property tax so much as they were interested in increased expenditures for the Fire Department. Another problem was that some citizens did not care about what the property tax rate was, they cared about their tax bill. Because of the improvements in the housing market, some appraisals were going up and even though the tax rate would be lower, the taxes would be higher. Mayor Castleberry stated that when tax statements were received, the tax rate was very important. People might want to pay more taxes but when the tax statement came, they were not ready to pay more taxes. He was pleased to see that there was a proposal for a decrease in the property tax rate. City Manager Harrell stated that the alternatives for the property tax rate were to set the rate using the increase in sales tax formula and overall increase in taxable value which would set the rate at $.5409 per $100 valuation; set the rate at the effective rate and eliminate the reduction based on the increase in sales tax. Based on the adjusted preliminary rate, this would set the rate at $.5532 which would provide $202,000 for additional expenditures; or increase the rate over the $.5409. A rate of $.5792 could be set before a rollback would be possible. Every additional $.01 increase would generate an additional $195,000 in revenues that could be reallocated. If the Council adopted a budget below the effective rate, it would be the third straight year that the Council had adopted a tax rate below the effective rate and the sixth straight year either at or below the effective rate. No other taxing jurisdiction in Denton could make that statement. Mayor Pro Tem Biles stated that when the issue was put to the citizens regarding sales tax to reduce the ad valorem tax, there was wide spread concern as to whether or not a subsequent Council would maintain that faith. He felt it was incumbent on this Council to maintain that faith and h~ wa~ in favor of keeping that good faith. City of Denton city Council Minutes July 11, 1995 Page 10 D. Cable Television - The 1994-95 budget included funding to start televising regular City Council meetings and work sessions. In the proposed 1995-96 budget, it was proposed to allocate an additional $23,133 for enhancements to the cable t.v. operation. It was proposed that the activities be expanded such as reruns of the Council meetings at other hours and producing shows about City Council functions and activities. In addition, many City departments had events or activities which they would like to have televised. Currently there was no allocation to allow that to be done. Staff was proposing to add a $.25 per month subscription fee to cable television bills to pay for this enhancement. Alternatives included adding $.35 per month which would generate money for the enhancements but also funds to cover the cost of the existing cable television operations. By doing so, almost $20,000 would be available for other expenditures. If the Council decided not to fund the proposed enhancements, the expenditures and revenues would be equal. Staff was recommending the $.25 per month increase. Council Member Young asked if the voice mail program discussed at a prior meeting was included in this funding. City Manager Harrell stated that as the proposed budget had been prepared before last week's meeting, that item was not included. Staff would be supplying a report to Council regarding the cost of such a system. Mayor Pro Tem Biles stated that the $.25 rate would only effect those individuals subscribing to cable television and would not impact the general population. He asked if there had been any input or consensus regarding the rate. City Manager Harrell stated that they had not received any consensus. This was a method to expand the cable offerings and a way to not impact the general fund. This fee was recommended to begin six months into the budget cycle and would not start until April 1, 1996. Mayor Pro Tem Biles stated that he was not opposed to the enhancement of the government channel but questioned if so much had to be done so fast. city Manager Harrell stated that an expansion of the cable television activities by the Public Information officer would take away too much of his time and he would loose his ability to do his other functions. It was felt that his performance was stretched as far as possible and if Council wanted to expand televising, additional staff was required. E. Miscellaneous Fees - The only fee recommended for adjustment in this category was the fee charged by Consumer Health for annual permits for restaurants, grocery stores and day care 189 19 City of Denton City Council Minutes July 11, 1995 Page 11 centers. A $10 per category increase would be reasonable which would generate approximately $3,660. Council Member Krueger asked if that included the City's day care centers. City Manager Harrell felt that the After School Action Sites did not pay that fee. 3. Pay Plan Adjustments - In 1989 the City adopted the new Mercer pay plan. The proposed budget recommended essentially the same pay arrangement as last year. That would include an average increase for all non-civil service employees of 4.8% and for all civil service employees a 4.8% increase effective January 1, 1996 plus any scheduled step increases. Those increases were not automatic but were performance based increases based on job performance by the employee. That was the system for all employees except for Civil Service where State law prescribed the pay structure. Alternatives for the compensation program were to fully implement the compensation program with a 5% market adjustment, a fully funded performance matrix for non-civil service employees, and a 7.75% increase for civil service employees plus scheduled step increases. This would require an additional $420,000 over the pay adjustment described above and the average employees increase would be 7.75%; implement the 4.8%; or delay any compensation which would provide $640,000 for other uses. Council Member Krueger left the meeting. 4. Benefit Adjustments A. Health Insuranc~ - This item was the second "give" number in the proposed budget. Staff was projecting a 5% increase in the health insurance costs but the figure would not be firm until a month from now. If the 5% increase held and if the City picked up the entire 5% increase which was proposed for the employees the total allocation would be $73,000. An alternative was to pass that cost on to the employees which was not recommended. Council Member Krueger returned to the meeting. B. Retirement - T.M.R.S. - Two years ago Council changed the T.M.R.$. policy from a 5% 2-1 match to a 6% 2-1 match. A% %ha% time, the City was behind what other cities were doing. In the survey of local cities, most cities in the area had now adopted the maximum retirement rate of a 7% 2-1 match. It was recommended that the current 6% 2-1 match be maintained. 5. Positions - The proposed budget included ~¢¥¢ral new positions. These positions were necessary to meet the workload demand increases on existing service levels. Included in the City of Denton City Council Minutes July 11, 1995 Page 12 budget were a total of three and one-half positions to meet increasing demands. (1) A secretary in Facilities Management for a cost of $11,811 after some related expenses were eliminated; (2) an Accounts Payable Clerk in the Accounting Division for a cost of $20,610; (3) a half-time secretary in the Planning and Development Department; and (4) a Fire Department Communications Supervisor to be hired effective April 1, 1996 at an annual cost of $62,000. Mayor Pro Tem Biles requested more information regarding what that particular position would be doing. City Manager Harrell stated that the final position would be the cable television position as previously mentioned. The alternatives relative to the positions were to keep the current staffing levels which would allow $75,000 to be reallocated, fund all the positions, select various positions to fund; or not fund any of the positions. 6. Fire Department Staffinq - The proposed budget contained six firefighers to be hired effective October 1 at a cost of $237,000 which included benefits, training and uniforms. There were several scenarios associated with this proposal. In looking at the constraints of the budget which included keeping a level or reduced property tax rate and cutting back all of the general fund personnel requests to a bare minimum, staff was able to identify resources which would be sufficient to hire six fire fighters. In Scenario A those six employees would be utilized and incorporated within the current staffing scheme. The minimum manning would increase from 22 to 24 fire fighters on duty each 24 hour shift. If that was adopted, the best return would be to assign a fourth fire fighter to the two busiest engine companies - Engine 2 and Engine 3. Those two engines would have four fire fighters as opposed to three fire fighters. There were two payoffs from that type of manning operation. The first payoff would be in the area of EMS as more and more the number of EMS calls were higher than fire fighting calls. Adding a fourth fire fighter to the two busiest engines enhanced the City's ability to guarantee the provision of quality EMS services to citizens. When the Department received an EMS call, the engine in the area consisting of three people plus an ambulance with two people responded. If it was a serious emergency, two paramedics in the cab of the ambulance were needed. In that case, one of the fire fighters left the engine and went in the ambulance which put the engine company out of service. The engine followed the ambulance to the hospital and once the emergency passed, the fire fighters returned to the engine and it would be back in service. That took the engine out of service and out of its district thus no longer being available for EMS responses. The staffing advantage with going with four men was that the fire fighter could leave the fire truck, go in the ambulance, the fire engine still had three people on the truck and could remain in the district and in service. As staffing was 192 City of Denton City Council Minutes July 11, 1995 Page 13 debated and in trying to make the system most effective, it was determined that this staffing arrangement was best. Costs associated with Scenario A would be $237,324. Scenario B would temporarily reactivate the Central Fire Station. A truck company from Station 3 would be transferred to Central and become an engine company. The six new employees would staff the ambulance currently being cross-staffed by the truck crew. There would not be a major drop off in ambulance capabilities by reactivating Central. However, there would not be the same impact which Scenario A as far as improving the service. There were some additional costs associated with this Scenario over Scenario A. If Scenario B was implemented, it was recommended that a quint be leased-purchased in order to not lose the capability of a truck company. A quint was a combination engine company and ladder truck which carried additional tools to fire scenes and provided an elevated steam capability. This type of truck was more expensive than an ordinary truck. The second lease-purchase suggested was for a squad. Additional costs included $50,000 for furniture and minimal repairs to Central. The overall cost for Scenario B would be $394,000. A staff priority ranking of the scenarios would be Scenario A, Scenario B, Scenario C because of the long range impact to the City. The ideal coverage range for the location of the City's fire stations would be to locate a station somewhere in the vicinity of Carroll and Eagle rather than where it currently was located. If that were done, the next station built could be built at the Airport which was the next projected area of need. Then there would be good enough coverage area that Station 3 would not have to remain in operation and avoid the major manpower costs associated with a new station. If the Council made a firm commitment to Central and fully staffed Central and then had the next station at the Airport, funds would have to be spent to fully staff a new station. For the long range a plan which would avoid building a new station would be the most cost effective. Mayor Pro Tem Biles stated that if Scenario B were adopted in which Station 3 moved to the Airport and Central was temporarily reopened, the staffing would not be stressed at that point. City Manager Harrell stated that that would provide for some major coverage gaps in the community. If coverage were tried with an Airport station and Central there would be too much of a response gap. Council Member Young stated that the Civil Service rules had been changed for hiring fire fighters in which they could only be hired if they had a fire fighting certificate. He asked if that was the current policy. city Manager Harrell replied correct. City of Denton City Council Minutes July 11, 1995 Page 14 Council Member Young stated that applicants had been told by Human Resources to not apply unless they had a fire fighter certificate. City Manager Harrell stated that that was the rule adopted by the civil Service Commission. The reason that that policy was adopted by the Commission was to be able to have fire fighters on the job close to October 1st. If the rule had not been changed and anyone could have taken the test, the city would have had to hire off the eligibility list and the individuals would have had to be sent to fire fighting and EMS school before going on duty. Council Member Young asked that once those individuals were hired, would the policy remain in effect that applicants would have to have a certificate to be hired. City Manager Harrell replied that that would be a decision by the Civil Service Commission. Council Member Young felt that if a fire fighter certificate was required, the door was shut on minorities and the quality of applicants would be reduced. The City should raise its own and train its own. City Manager Harrell stated that the situation would be monitored. There were a number of cities which had adopted the local rule which had not experienced those types of problems. Council Member Krueger asked for a definition of a squad. City Manager Harrell stated that it was a combination of a pumper truck and an ambulance which could carry a minimal amount of water but could also transport people. Mayor Castleberry asked staff look into the possibility of a fire fighters reserve volunteer force. City Manager Harrell stated that Scenario C would permanently reopen Central Fire Station with the same staffing arrangement as Scenario B. However, if Central were opened on a permanent basis there were some major structural and other major repair items which needed to be done in order to use it as a fire station on a long term basis. Cost for Scenario C would be $894,000. Alternatives for the Fire Department were to fund Scenario A by hiring an additional six fire fighters and staffing five fire stations; fund Scenario B by hiring an additional six fire fighters and temporarily reopening Central Fire Station until a new station was built which would require an additional $157,000 of revenue or expenditure reduction; fund Scenario C by hiring an additional six fire fighters and Dermanentl¥ reopening Central Fire Station which would require an additional $657,000 of revenue or expenditure reductions; do nothing which would provide $237,324 to be allocated 193 19 City of Denton City Council Minutes July 11, 1995 Page 15 for other purposes. Staff recommended Scenario A by hiring six additional fire fighters and staffing five fire stations. Mayor Castleberry stated that he would like the cost figures for a trained, at the expense of the City, volunteer fire fighters unit with uniforms, insurance, etc. 7. Combination Fire Squad - This unit would replace a reserve ambulance and be assigned to a fire station without a permanently staffed ambulance. Alternatives for the combination fire squad were to not fund the squad and reallocate $13,848 for other purposes or fund the squad. 8. Fire Reserve Fund - Several years ago a Fire Reserve Fund was established to help with staffing costs for new fire stations. Currently the fund balance was $193,000. The proposed budget increased the fund by $50,000 to bring the balance to $243,000. 9. City Hall Renovations - A comprehensive space study was done several years ago with the first phase being a three building program. One project was the construction of the Denton Municipal Complex, the second was the remodeling of City Hall West which would then house the community development and engineering functions and the third project would be the renovation of City Hall. Currently there was $319,000 in bond and interest money designated for this project. For that amount of money only cosmetic changes could be done which would not bring the building up to safety codes. It was recommended that in addition to the $319,999, $402,000 of one time expenditures from the fund balance combined with $420,000 from the Utility Department for a total of approximately $1 million be used. The Utility Department's contribution reflected the amount of employees which worked in the building. 10. Other Aqenc¥ Contributions - The Human Services Committee had received requests totaling $522,000. Of these requests, the Committee recommended Community Development Block Grant contributions of $166,000 and General Fund contributions of $155,100 for a total of $321,000. The proposed budget followed the Human Services Committee's recommendation to contribute the noted funds. Alternatives included funding at the agency requested level which would require an additional $201,522 to be funded from additional resources or expenditure ~duc%ions or fund at the Human Services Committee recommendation level. 11. Tax Exemption For Persons Over 65 - In the 1988-89 budget, the City Council agreed to help individuals on fixed incomes absorb any additional potential property tax increases. At that time, Council established a goal of raising the over 65 exemption from $16,000 to $25,000. Each year except for one year, Council added on $1000 to the exemption. Currently the level was at $22,000 and was proposed City of Denton City Council Minutes July 11, 1995 Page 16 to increase to $23,000. Alternatives included doing nothing and leaving the exemption at the current amount of $22,000 which would allow $15,000 to be used for other purposes; increase the exemption to $25,000 immediately and eliminate $30,000 of expenditure from the budget or increase revenues; proceed with the goal of increasing the exemption by $1,000 per year for a total exemption of $23,000 in 1995-96. 12. Vehicles - It was recommended that 45 pieces of existing equipment be replaced. During a number of tight budget years, the City was unable to replace vehicles and equipment as often as needed. As a result the vehicle fleet was now loaded with many outdated vehicles which required many dollars in maintenance. Staff recommended utilizing $286,997 to replace these 45 pieces of equipment. Council Member Brock asked for a definition of "internal financing". City Manager Harrell stated that the City used to issue certificates of obligation for a lease-purchase for vehicles. Now there were enough funds in the motor pool to front end the costs and then the using department repaid the money internally. Council Member Young asked staff to explore the possibility of purchasing vehicles which used natural gas, propane gas, etc. City Manager Harrell stated that there were three alternatives associated with the funding of these vehicles/equipment. Those included not replacing or purchasing any vehicles or equipment which would enable $286,997 to be reallocated; replace the units as mentioned; fund all requested vehciles and equipment which would require an additional $613,300 in revenues or expenditure reductions. 13. citizen Newsletter - The proposed budget included a direct mailing to the citizens four times a year. The General Fund cost would be $7,185 with the Utility Department funding $21,555 which was the reminder of the cost. Major Issues - Utilities City Manager Harrell stated that the City Charter required the Public Utilities Board to deliver to the City Manager a proposed budget without amendment. Total revenue was estimated at $106 million with expenditures of approximately $105 million. The budget was predicated on a zero percent electric rate adjustment for the coming year. If the city was successful in changing the allocation among the four cities to net energy for load, ~ufficient revenue would be generated to reduce the electric rates for the small commercial customer. The small commercial customer was the 195 9 OCity of Denton City Council Minutes July 11, 1995 Page 17 only area where the City was ahead of TU Electric rates. Council Member Cott indicated that a statement had been made about paying off TMPA bonds. City Manager Harrell stated that there had not been any discussion among the four cities or TMPA Board that there was any question that the outstanding bonds of the Agency would not be paid off. The comment was merely to reiterate the fact that all four cities were committed to paying off the outstanding bonds. Electric rates would not be changed pending a decrease of 3.5% for mid-sized commercial customers. Water rates were proposed at a 2% increase, wastewater at a 2% increase and solid waste was proposed at $1 per month in residential, 9.95% in commercial and $1 per cubic yard in landfill disposal rates. With all of those proposed rates, the average residential customer's total monthly utility bill would increase $2.01 per month. There were two major decision packages Council would have to deal with. One was the Solid Waste Master Plan. The proposed budget incorporated moving ahead with the implementation of the Solid Waste Master Plan which was prepared by the Council appointed citizen group. There were several programs related to that plan - $45,00 for public education; $56,000 in acquisition costs; motor pool payments for $14,000; $56,000 for a new baler for the composting facility; an expanded woodwaste processing facility for $61,000; residential curbside recycling program for $146,000 with the first phase being newspapers; and the design of an intermediate processing center with a cost of $200,000 for the design of the facility. Economic Development Proqram - The Public Utilities Board recommended an increase in the economic support budget by $98,000 to the Chamber of Commerce. That would be divided into two parts. With the first, the existing City/Chamber partnership would be increased from $65,00 to $85,000 per year. An additional $28,000 would be set aside as a matching contribution if the other utilities in the area would be wiling to allocate 1/8 of one percent of their gross revenues to the Chamber to support the economic development effort. Council Member Young asked if the Black Chamber of Commerce was figured into the contribution which the Electric Department was making to the Chamber of Commerce. If not, why and could they be included. City Manger Harrell stated that the Black Chamber of Commerce was not included at this point in time. The Public Utilities Board was recommending that the traditional relationship with the existing Chamber be continued. The Chamber had a staff member who worked solely on economic development. The Chamber and City also put money into the program. If the Black Chamber had a proposal for a staff person devoted to economic development and funds to City of Denton City Council Minutes July 11, 1995 Page 18 contribute, it could be considered. Council Member Brock asked for a listing of the five other utilities. City Manager Harrell replied they were GTE, Lone Star, TU Electric, Denton Electric Cooperative, and Sammons. Council Member Cott stated that the $85,000 would be for the entire year. City Manager Harrell replied correct. There was a second new program which had not previously been funded which was the marketing effort which the Chamber was proposing. The Public Utility Board had set aside $50,000 as a contribution to that marketing program contingent upon matching money from the Chamber. Council Member Krueger expressed a concerned that the Chamber would be held accountable to the Public Utilities Board rather than the City Council. He felt more research should be done or have a consensus of Council to oversee the program rather than the Public Utilities Board. City Manager Harrell stated that ultimately the Council would hold them accountable. The Public Utilities Board would be monitoring the program on behalf of the Council. 3. The Council received a report, held a discussion and gave staff direction concerning Chapter 143 of the Texas Local Government Code, the State Civil Service Law that applies to sworn City of Denton police officers and fire fighters. This item was not considered. 4. The Council received a report, held a discussion and gave staff direction concerning retaining a Health Insurance consultant to provide actuarial expertise and assistance in negotiations and rebidding of the City's Group Health Insurance Program covering City employees and dependents. Betty McKean, Executive Director for Municipal Services and Economic Development, stated currently there were currently 900 full time employees and with dependents, approximately two thousand people were covered on the City's insurance program. Last year the city spent approximately $2.2 million for that insurance coverage. Craig Maroney, Human Resource Generalist, presented the history of the City's insurance costs. In the late 1970's the cost per emDloyee to the City for insurance was $25.00 and in 1986 it had risen to $76.36. The cost for the employee for family coverage also increased. There were four major reasons for this increase which 197 8City of Denton City Council Minutes July 11, 1995 Page 19 included advances in medical technology, growth in the health insurance industry, federally mandated HMO coverage for employers and the reduction of Medicare/Medicaid payments. Staff was recommending that the Council authorize a health insurance and actuarial consulting contract with Foster Higgins, Inc. Foster Higgins was a nationally recognized firm specializing in employee benefits, specifically health insurance. The firm would provide health insurance consulting, actuarial, and negotiation services for the City to ensure an effective, cost effective group health insurance program would be maintained for employees and dependents. Miller motioned, Cott seconded to move ahead with the contract. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. 5. The Council received a report regarding an update on actions taken during the 74th Legislative Session. Joseph Portugal, Assistant to the City Manager, stated that 5,147 bills and amendments were introduced during the last session of the Legislature. six of those bills had been highlighted. Senate Bill 212 exempted from child care licensing requirements certain recreation programs operated by cities. It included staffing, staff qualifications, and health and safety standards for the recreation center and methods for maintaining the standards. House Bill 52 would allow the city's governing body to appoint an official to approve contract change orders of up to $25,000. House Bill 2459 amended Chapter 2256 of the Government Code and provided that a governing body had to adopt a written investment policy that must include a written strategy. The City had already adopted an investment policy which complied with this legislation. House Bill 1718 revised the open records law in significant areas. Among the changes was the definition of public records to include information maintained in another media, particularly electronic or magnetic and the ability of cities to establish a fee schedule for GIS system information. An employee disclosure provision was also included to protect an employee's social security number and whether he had family members. House Bill 632 amended Chapter 756 of the Health and Safety Code which prohibited the use of public funds for playground equipment after September 1, 1997. After that date, the equipment must meet the standards set forth in the 1994 Handbook for Public Playground Safety published by the Consumer Product Safety Commission. Senate Bill 60 authorized citizens to obtain a license to carry a concealed handgun following certain qualifications and training. Two of the provisions concerning this legislation were of interest to the City of Denton. The City could prohibit a licensee from carrying a handgun on the City's premises but not on a street, sidewalk or parking area. Also, a licensee could not carry a handgun at any meeting of a governmental entity. City of Denton City Council Minutes July 11, 1995 Page 20 Council Member Young asked if an individual could carry a handgun in a public park. Portugal replied that he did not find any mention in the legislation regarding carrying a handgun in a public park. He could do further research regarding that issue. Council Member Brock asked if H.B.305, which enabled a local government to purchase goods and services under state guidelines, was a way to avoid competitive bidding. Portugal replied correct that if state guidelines were met, the bid was considered competitive. City Manger Harrell stated that often times the State would have a contract and the city had the ability to hook on to that contract. 6. The Council received a report and gave staff direction regarding a citizen survey. Joseph Portugal, Assistant to the City Manager, stated that citizen surveys were used in a number of ways to support local government. The City conducted surveys in 1984, 1985, 1986 and in 1986 prior to the last bond election. The most recent~survey was done in 1991. Considering the timing of the recommendations coming from the vision project and the CIP Blue Ribbon Committee, it was felt that a survey would provide valuable information and assist the Council in directing staff to prepare items for consideration by the voters. A draft request for proposal had been prepared which would solicit vendors to conduct a comprehensive survey of the City. Mayor Pro Tem Biles asked why it would necessary to use an outside firm when it could probably be done in-house. Portugal replied that the previous survey was done by the UNT Marketing Department. He knew that the Public Administration Department at UNT or UTA would be wiling to do this survey. It could be done in-house but would involve a great deal of staff time. A telephone bank, mailing, call back, etc. was needed. Mayor Pro Tem Biles asked if a request for proposal was necessary. City Manager Harrell stated that this proposal had to be available to anyone who might want to submit a proposal. The University had always done the survey but the proposal still needed to be available to all who were interested. Council Member Krueger expressed a concern about using an outside firm and felt that it could be done in-house. 199 20 City of Denton City Council Minutes July 11, 1995 Page 21 Portugal stated that staff could perform the survey but that it was very involved and more than likely one staff person would have to be dedicated to preform those tasks. One advantage of an outside firm was that they could structure the survey. Council Member Miller stated that there might be the issue of confidentiality. A citizen might not be comfortable giving a response to a City employee while he might be with an outside firm. No matter what was the outcome of the data if done in-house, there would be those who would say the results were skewed. An independent consultant would not have those concerns. Brock motioned, Young seconded to follow the staff recommendation and proceed with the survey. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. With no further business, the meeting was adjourned at 10:25 p.m. OF DENTON, TEXAS BOB CASTLEBERRY, MAYO~ CITY OF DENTON, TEXA/~ ACC0029C