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.
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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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.
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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