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Minutes January 23, 1996164 CITY OF DENTON CITY COUNCIL MINUTES January 23, 1996 The Council convened into a Closed Meeting on Tuesday, January 23, 1996 at 5:15 p.m. in the Civil Defense Room. PRESENT: Mayor Castleberry; Mayor Pro Tem Biles; Council Members Brock, Cott, Krueger, and Miller. ABSENT: Council Member Young The Council considered the following in Closed Meeting: A. Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071 Considered and discussed defense of and the settlement of RPS Ventures, Inc., et al v. City of Denton and Webber and Barnes v. City of Denton pending in the 362nd District Court under Section 551.071 of the Open Meetings Act. B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072 Co Personnel/Board Appointments -- Under TEX. GOV'T CODE Sec. 551.074 Council Member Young arrived during the Closed Meeting. The Council convened into a Work Session on Tuesday, January 23, 1996 at 5:30 p.m. 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, held a discussion, and provided direction regarding the Economic Development Transition Committee recommendations. Harry Hall, Chair-Economic Development Transition Committee, stated that the Committee had presented an initial set of recommendations to the Council and would be presenting them to the Chamber of Commerce Board of Directors in the near future. As suggested, they had employed the services of a professional consulting firm specializing in economic development practices, trends and issues. The set of recommendations included (1) the City Council consider the adoption of a charter to create an economic development corporation funded by a local sales tax collection as authorized in Section 4A, Article 5190.6 of the Revised civil Statutes of Texas. That recommendation would be consistent with the findings of the Fantus and the vision for Denton Work Action Group. The focus needed to be to create and maintain jobs and job opportunities as well as expand and diversify the local tax base. Their research over the past few months indicated that a 4A sales tax was the best option to consider because of its proven flexibility over and above City of Denton City Council Minutes January 23, 1996 Page 2 165 typical marketing programs° If approved as recommended, the 4A corporation could assist private developers; purchase and sell property and buildings; assist with employee relocation; provide training; offer financial incentives; and extend infrastructure such as water and sewer lines and road access to appropriate commercial/industrial areas. The Committee specifically recommended the 4A corporation versus 4B because it was very focused on actual helping expand the tax base and on creating jobs. General community projects could be adequately funded through the Capital Improvement Programs. Denton could not compete with other communities with unlimited resources to offer through their sales tax. Denton was losing out and falling further behind on economic development. (2) The Council should appoint a five person Board of Directors to expedite adoption of by-laws, proposed budgets, marketing and general policies. (3) Call an election for the purpose of increasing the local sales tax rate by % of 1%. These funds would be dedicated to the administration of a 4A Economic Development Corporation. The Committee knew that there were many other corresponding issues which needed to be addressed and they would help the Council if so desired. Cott motioned, Young seconded to create an ordinance to create an economic development corporation and to authorize a sales tax election to fund the activities of the economic development corporation. Council Member Miller stated that this item was listed as a discussion item. Mayor Pro Tem Biles felt that Council Member Cott's motion was an improper motion as the Council was in a work session. Council could not take action on a motion to establish or create those entities but could direct staff to prepare information. Council Member Krueger stated that the agenda indicated "provide direction" regarding economic development and that direction would be whatever the Council decided to provide. He did not have a problem with creating the corporation and did not have a problem with proceeding. He felt the Council might be moving too fast towards calling an election and might need to slow down regarding an election for a ½ cent sales tax. It would take more than 8 months to prepare for that matter. Council Member Young stated that Council Member Cott gave staff direction to recommend the economic development corporation and the City call and conduct an election on August 10, 1996 which was a uniform election date. The Council had been working on this for %wo years. Den%on was behind other communities which had already Passed such an issue. 166 City of Denton city Council Minutes January 23, 1996 Page 3 Mayor Castleberry suggested placing this item on the agenda for the second week in February for further discussion. He felt Council was moving too fast on the issue. Council Member Brock stated that she was concerned about the stages for development and at what point there would be public hearings on the matter. Anything of this magnitude deserved public input as it was asking citizens to vote for a new tax. Mayor Pro Tem Biles felt that it was critical to move forward to be competitive. Before there was an election, the Council needed to carefully consider the issue. If Council Member Cott's motion was to direct staff to immediately prepare an ordinance to form the corporation and to establish a date for an election, then he would have to vote against the motion. His alternative motion would be to direct the City Attorney, the Acting City Manager and the Executive Director for Finance to return in two weeks at a work session to fully explore the issue. He felt there would be a greater chance to succeed if the public participated in the process. Mayor Castleberry asked if Council Member Cott would like to change his motion. Council Member Cott stated no. Council Member Miller asked if the Transition Committee was recommending that the corporation board be formed at this time or wait until after the proposed election. Hall stated that it was the recommendation to form the 4A corporation at this time. Council Member Miller asked how the Transition Committee felt about the corporation going into the ownership and buying of land for an industrial park versus leveraging the private sector to work in partnership with the corporation. Hall felt that it was the intent to have the private investors act. However, if the private sector did not act, the economic development sales tax should come into play. Council Member Miller ~sked how work force issues would be considered with the use of the economic development funds. Bill Shelton stated that the emphasis of the committee was more on organization rather than programming at this point in time. Council Member Krueger asked that the motion be repeated. City of Denton City Council Minutes January 23, 1996 Page 4 167 Council Member Cott stated that his motion was to immediately prepare an ordinance creating a charter for an economic development corporation and the work necessary for a sales tax election to fund the activities of the economic development corporation. Council Member Krueger stated that when Council directed staff to prepare an ordinance, that did not create an avenue for public hearings. He did not believe two weeks would make a difference. He was ready to begin the process. Council Member Young stated that Denton citizens were tired of having to drive to Dallas/Ft. Worth for a decent job. Mayor Pro Tem Biles stated that he had not heard any discussion about the reason why or why not to discuss a 4B corporation. He had not heard any discussion, in work session format, as to what was the validity for particular uses and had not heard any justification as to why Council needed to start so soon. He could not support the motion as he was not sure what the Council was directing staff to do. He felt Council needed to have a work session to discuss the issues. Mayor Castleberry stated that he was against the motion but was not against economic development. He felt the Council would be moving ahead too fast on the issue. Council Member Brock stated that she had a list of questions regarding the issue and wanted time to review the issue carefully. Anything of this magnitude deserved a thorough examination. It would bad public relations if done in haste. Council Member Miller stated that he was opposed to the motion on the basis of the target date of August 10, 1996. He felt there was a need for a better discussion and understanding of the issue. This was to not delay the issue but felt that a work session on the issue was needed for more discussion. Council Member Cott asked what was the first possible election date. Shelton replied May 6th. Council Member Cott asked for the timeframe for the election. Shelton replied the recommendation was for a ten week campaign. Mayor Castleberry stated that if this were done in a work session the Committee would b~ available for questions. Council Member Krueger expressed a concern regarding the process. The Committee was here and the meeting was posted as a work 168 City of Denton City Council Minutes January 23, 1996 Page 5 session. Why wait two weeks to ask questions as the Committee was here now and prepared to answer any questions the Council had. Citizen input would happen with the consideration of an ordinance. Council Member Miller stated that the item was opened with a motion and not with discussion. There was a motion on the floor and the prior discussion was about the motion. The entire discussion had been regarding the motion and not about the issues. Council Member Krueger stated that as he understood parliamentary procedure, an item was not discussed until a motion was made and then seconded. He felt that the motion and second was in order but also felt that a work session was a time to discuss an item. Council Member Young stated that this was an issue during his election and the Council needed to proceed with the issue. The Council was following the voters instructions which were to create the industrial parks so that Denton would be on equal footing with other cities. Council Member Cott withdrew his motion. Biles motioned, Brock seconded to direct the Acting City Manager, the city Attorney, and the Executive Director for Finance to prepare for Council for consideration at a work session two weeks from this evening, information on the 4A recommendations of the Economic Development Transition Committee. Likewise information regarding the contrast and comparison with the 4B sales tax and a 4B corporation and the uses to which each could be put to. These three individuals would also prepare for Council a proposed agenda for public hearings to be conducted with a review of a time line in preparation for the August 10th date but also apprise Council of the other available election dates, both before and after August 10th. A comparison would be made between the recommendation of the Economic Development Transition Committee and the Vision Work Group recommendations that the City had been sponsor of along with the Chamber and other entities in the City so that Council would have an understanding of the full scope of the issue of economic development in the context of the recommendations received this evening and of the 4A and of the 4B and also how Council could proceed towards an orderly approach of the election date. Council Member Cott stated that such a motion was why industry in this community did not trust city government. At motion like that excluded them completely and indicated that there was no understanding of what was going on. On roll vote, Miller "aye", Young "aye", Cott "nay", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried with a 6-1 vote. City of Denton City Council Minutes January 23, 1996 Page 6 Council Member Brock asked if Council could continue to ask questions at this point in time. city Attorney Prouty stated that there would be no problem to continue to ask questions. Carl Anderson stated that the Transition Committee was given a charge and they did what they thought was the best of their ability. The Committee was not trying to push the issue but they did feel it was critical to move as surrounding communities were already passing this issue and Denton not able to compete with economic development. Mayor Pro Tem Biles left meeting. Council Member Brock stated that she had many questions and wanted to understand all of the issues before proceeding. She felt that the public would be concerned about accountability. This proposal would take money from the public and turn it over to an economic development corporation. She questioned who would be accountable to the public on the way the money would be spent. There were safeguards in place such as the Council appointed the Board, the public could petition for an election to disband the Corporation if it not like what the Board was doing. The Board served at the will of the Council and the public could indirectly control the Board. The Council could itself call an election to disband the Board. She asked what were other accountability issues and how did an economic development corporation gain the trust of the public. Ed Smith stated that it was a great concern of the Committee to have a system which would be best for the taxpayers. The city Manager, city Attorney and Finance Director were in charge of all funds collected by the economic development sales tax. Those funds could not be spent without direction and an annual budget. The charge for the Committee was to recommend whether to have an economic development corporation. The Committee also recommended that the Council appoint the members of the Corporation for the purpose of by-laws and structure. At this point in time, the Committee did not have any authority to implement anything. Council Member Brock asked if the economic development corporation wanted to buy property and do buildings, would that have to go to Council for approval. Smith replied yes as the Corporation would not want to compete with the private sector. Mayor Pro Tem Bile~ returned to the meeting. smith continued that the economic development corporation wanted to make recommendations as to what was good for the City. The 169 170 City of Denton City Council Minutes January 23, 1996 Page 7 Committee was only asking for additional direction to go on to the next step to create the by-laws and structure of the corporation. Council Member Brock wanted to be sure the economic development corporation had a level playing field and would not get into the development business. Smith replied that that would not be as the Council would have to approve the projects. The Committee wanted a structure which would always handle the funds appropriately. The Committee needed direction and could not go any further without direction. If there was not going to be an economic development corporation, then the Committee needed to stop wasting time looking at other cities. The Committee's recommendation was to form an economic development corporation and to fund the corporation with a ½ cent sales tax. The Committee had not made any other recommendations than those two. Council Member Brock asked if this would be part of what would be presented to the voters. Smith replied correct. With a 4A corporation, the money could not be used for anything else than for jobs and economic development for the citizens of Denton. The 4B corporation had areas of discretion where the money could go. Council Member Krueger understood that the Committee spent many hours deliberating on whether to recommend a 4A or 4B corporation. The Committee's recommendation was to only consider a 4A corporation. Hall replied correct. Council Member Krueger questioned why the Council would waste time directing staff to consider looking at a 4B corporation when the Council appointed a Committee to make recommendations to the Council. Why would the Council waste time looking into an issue the Committee had already considered. Council Member Brock felt it was necessary for the Council to examine the issue just as it did with other boards or task forces. She did not know of any other group the Council automatically accepted what they did without even asking any questions. Council Member Krueger stated that the Council basically rubber stamped what the CIP Committee presented. They called the date of the election and Council agreed. This field of professionals were presenting their recommendations and the Council was not agreeing with them. City of Denton City Council Minutes January 23, 1996 Page 8 171 Council Member Miller agreed with Council Member Krueger on this aspect. He did not feel it was a good idea to do another study on 4A and 4B. If the Council wanted to consider the 4A/4B issue, the Council needed to hear what the Committee felt rather than have another independent study. Council Member Young stated that this was a business issue and could have taken care of at this meeting. It ~as his opinion that everything had already been discussed because of the voter's instructions. Richard Hayes stated a question had been asked about the dates of an election. There were only three dates which were allowed during this presidential election year - January 20th, May 4th, and August 10th. In regards to the question on checks and balances, the Council made the appointments to the Board of Directors, the budget had to be approved by the Council and the expenditures cleared through the city Council and all City Council members would be ex- officio members to the Board of Directors. A 4A corporation was strictly economic development. A 4B corporation was economic development plus other areas such as sports facilities, parks, and other types of public amenities. With the very excellent CIP process of the city, it was not necessary to address public improvement needs. Council Member Brock stated that some cities had recently passed a special sales tax to be applied to police force. She asked if that came under 4B or was that something else. Hayes replied that it was under a separate piece of legislation. Council Member Young left the meeting. Council Member Miller stated that favorable consideration of the proposal by the Council would set in motion, the process for an economic development corporation, a five member board to the corporation. He assumed Council would think about a sales tax election on August 10th. At every step of way, the Board of Directors would return to Council with by-laws which would be done in open session and public input at that time and accept or reject the by-laws and recommendations at that point in time. Hall replied correct. That was the reason for the formation of the corporation. The corporation at this point in time was unfunded and the corporation would then develop the by-laws which would develop checks and balances. council Member K~ue~e~ left the meeting. Council Member Miller stated that one of the critical issues was the issue of whether to have a 4A or 4B corporation. Council would 172 City of Denton City Council Minutes January 23, 1996 Page 9 need the input so as to decide at the next meeting which corporation to recommend. Hall stated that if Council had specific questions of this committee to let him know in advance so that the committee could respond to those questions. Council Member Young returned to the meeting. 2. The Council considered and gave staff direction on continuing the waiver policy for the Parks and Recreation programs. Council Member Cott left the meeting. City Attorney Prouty stated that staff had surveyed other cities in the area as to the question of continuing the waiver policy. Most of the area cities required a waiver or release for any injuries which were caused by or incurred by the children who were participating in the programs. The staff revised the release form based on the information received from the survey. The first paragraph indemnified and held the city harmless for any injuries caused to third persons or property by the minor participating in the program. The release would be signed by the parent or guardian. The second paragraph was a release for any injuries or damages which might occur to the child participate in the program including any claims or damages arising from the negligence of the City or any of its employees. A new provision in the release was that when a minor reached an adult age, the minor had the ability to repudiate the release. The parent would be required to indemnify the city against the minor's repudiation of the release. A provision was continued which authorized the city to photograph, televise or sound record any athletic events a child might participate in. It also allowed the City to provide medical services and care to an injured child. In order to do this, the release form had to be notarized as the medical facilities would not render medical care unless the release form was notarized. Staff was recommending that the City continue the current policy of requiring such a release to participate in Parks and Recreation programs and would recommend that the Council adopt a new release form similar to the one proposed. council Member Cott returned to the meeting. Council Member Miller asked about the difference between the current and proposed release form. City Attorney Prouty stated that the present release form did not have some of the language regarding no indemnification by the parent in the event a minor repudiated the release. The language with regard to indemnification and hold harmless was not as complete as what was proposed. City of Denton City Council Minutes January 23, 1996 Page 10 173 Council Member Krueger returned to the meeting. City Attorney Prouty stated that the current forms were not notarized. Council Member Miller asked if the Parks staff would handle the notarization of the forms. Ed Hodney, Director of Parks and Recreation, stated that he had expressed a question about whether it would be logistically possible to have each form notarized. If the City required notarization on all waivers, it might reduce the number of participants in the program and might be perceived as an inconvenience. He had to rely on the City Attorney to decide whether or not a notary signature was critical as far as the waiver of liability was concerned. Council Member Miller asked if other cities required notarization of their waivers and had there been a problem in not notarizing these in terms of receiving medical care. Hodney stated that most of the cities in the survey did not require the forms to be notarized. He did not know the response from the hospitals. City Attorney Prouty stated that most other cities did not require notarization. Courts were very skeptical and were quick to set aside release forms, especially when trying to release the rights of a minor, and the notarization would show that the form was signed by the parent and gives a seriousness to the form. There were certain medical facilities which would not render medical attention to a minor without some sort of release from the parent without being notarized. There might be some reduction in participants if notarization was required. Council Member Miller felt that if the majority of other cities did not require the notarization and if the programs were working well without, he did not want to add a stricter requirement to the process. Council Member Cott stated that he understood that no adult could give away the rights of a minor under any circumstances. City Attorney Prouty stated that that was one of the problems with the former release. The minor had the right to repudiate when he reached majority. That was why the third clause was included in the form and put the parent on the line. Mayor Pro Tem Biles stated that a child's biological parent was the child's natural guardian of person of the child and not of the estate of the child. There was a different set of issues than a 174 city of Denton city Council Minutes January 23, 1996 Page 11 complete waiver of child's property rights, a child's right to inherit and a child's right to proceed against action. The Texas Health and Safety Code required that any power of attorney for designation of an agent for health care decisions must be sworn. If the notary was removed, the City would not have the right to transport a child to a hospital. The solution might be to include language on the form that it was valid and accepted only when fully executed and notarized. The form could be notarized for no charge at City Hall, City Hall West, the Municipal Complex as well as at the recreation centers. Mayor Castleberry asked if it would be possible for the Parks employees to become notarized. Hodney stated yes that it could be done. It might be difficult to have a notary at every facility for all the hours that the facility was open. Mayor Castleberry stated that most of the registration was done in a day or two. Acting City Manager Svehla stated that notaries could be present at given hours at the facilities. Council Member Krueger stated that the registration was not done just at the recreation centers. There were several days when registration was done at the Mall. The City employees could not be at all places at all times. The DISD did not have a form such as this to address children in school. When a sentence was included against the negligence of the City, it was not protecting the rights of the citizens. The context of the form did not protect citizens. He felt the responsibility of the City was to provide good care for its citizens and their children and not disclaiming responsibility if the city made a mistake. Council Member Young stated that this waiver would not stand up in court. He liked the notary provision and the ability to have a child taken care of when medically needed. The waiver was more restrictive but felt that it would not stop individuals from participating in programs. Council Member Miller asked if the city was not treating children who were injured. Max Blackburn, Risk Manager, stated that in every case where there was an injury, the City had either called for an ambulance or taken care of the child. Council Member Miller asked if this had caused a problem for the City up to this point. City of Denton City Council Minutes January 23, 1996 Page 12 Blackburn stated it had not caused a problem up to this point but up until now a wavier was required even though the waiver was insufficient. Council Member Miller questioned the need for notarization of the form. Mayor Pro Tem Biles stated that other cities might not do this procedure and Denton might not have required it up to this point in time, but that did not make the prior release forms legitimate or binding. He felt it was an insufficient document if it was not notarized. City Attorney Prouty stated that releases like this were challenged and felt that notarization added legal sufficiency to the release form. Council Member Miller stated that the release form would have to be notarized or the individual could not participate in the program. Would current participants in the programs have to notarize a statement. He asked if there was a wavier for pre-adults and was it currently required to be notarized. Hodney stated that it was not currently notarized. City Attorney Prouty stated that the Council's first consideration was if it wanted the release at all. The second point was did the Council want a legally sufficient document. The proposed release would cover the legal issues. The current form would not stand up in a court proceeding. Council Member Krueger stated that the city better be prepared to sign up everyone who walked in the doors of the recreation centers if the forms had to be notarized. If a light fixture was loose and looked dangerous and an individual informed the building attendant that it was dangerous and then the light fixture fell on someone who had signed a release form, would the City still could be sued so what good was the form. city Attorney Prouty stated that in the release form, the parent for the child was releasing any injuries caused by the city's negligence. One possibility was to separate the medical authorization and the photographic authorization on the back of the form. The remainder of the release would be signed without notarization. There would be two forms. The release form without the notarization would not give it the same legal standing and would subject it to more of a risk to be set aside. Mayor Castleberry stated that that could complicate it and one form would be less confusing. 175 176 City of Denton City Council Minutes January 23, 1996 Page 13 Young motioned, Brock seconded to accept the release as it was proposed. On roll vote, Miller "nay", Young "aye", Cott "aye", Krueger "nay", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried with a 5-2 vote. Mayor Castleberry stated that the consensus of the Council was to add a set of instructions to the back of the form. 3. The Council received a report from the Parks and Recreation Department on the I.M.A.G.I.N.E. program and viewed a video. Ed Hodney, Director of Parks and Recreation, stated that the Denton Parks and Recreation program had recently re-examined its mission and in doing so, realized that the purpose of the program was changing and was more in community services. The Parks Department worked with other agencies such as the School District, social services agencies and the I.M.A.G.I.N.E. program reflected the gradual shift to a broader, more useful mission for the City. Brenda Burton, Children Program Supervisor, stated that the City had received a donation from the Ruth Anderson estate with the only stipulation to use the funding for youth at-risk programming. The program was designed for teens from 14-17 years of age which would help broaden their horizons. The teens selected were recommended by community leaders, people within the School District, and churches. The teens participated in community service projects, fund raisers, and cultural activities. Throughout the year they worked on a point system to earn points toward a trip to Washington, D. C. Eight teens completed the program and those eight went to Washington, D.C. All the teens maintained or improved their grades in school, expanded their social circle and became more outgoing. A video was shown detailing the program. 4. The Council received a report and held a discussion regarding the 1996-97 City Council budget priority questionnaire. Jon Fortune, Chief Finance Officer, stated that the questionnaire was used to provide staff input from Council regarding budget development for the upcoming fiscal year. He asked if Council had any new service areas to include or to delete any service areas on the list. Council Member Cott asked when Vision put in their priorities. Acting City Manager Svehla stated that the majority of the vision projects that involved any kind of capital would be in the CIP and Council already had recommendations on those. The rest of the Vision projects involved staff time. City of Denton City Council Minutes January 23, 1996 Page 14 177 Council Member Krueger stated that Denton County was the only law enforcement agency which covered auto theft. He understood that there was grant money available for cooperative ventures with other entities. He would like that put on the survey plus children oriented safety programs. Mayor Pro Tem Biles suggested including infill policy development, university relations and policy coordination development with other entities in the City. Council Member Brock questioned the priority response ratings of 1- 7. She felt that there was a misunderstanding about what should be in that column. There was a need to sort out the understanding of that column. Initially it was interpreted on how important was the City effort in that area. Before the Council completed the questionnaire, there was a need to understand how to complete that column. Mayor Castleberry felt that that column indicated that if a Council Member was satisfied with the current situation, it would be given a "four". If there was not enough effort, "increase effort" would be marked. Council held a discussion on the interpretation of how to complete the last column on the questionnaire. Mayor Castleberry stated that staff would change the wording on how to interpret that column. Following the completion of the Work Session, the Council convened into a Special Called Session. PRESENT: Mayor Castleberry; Mayor Pro Tem Biles; Council Members Brock, Cott, Krueger, Miller and Young. ABSENT: None 1. The Council considered approval of a resolution authorizing the City Manager to execute an agreement with the Department of Transportation, United States of America, for a grant under the Urban Mass Transportation Act of 1964, as amended. Joseph Portugal, Assistant to the City Manager, stated that this resolution would authorize the City Manager to execute the agreement with the Department of Transportation for a grant. The following resolution was considered: 178 City of Denton City Council Minutes January 23, 1996 Page 15 NO. R96-005 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE DEPARTMENT OF TRANSPORTATION, UNITED STATES OF AMERICA, FOR A GRANT UNDER THE URBAN MASS TRANSPORTATION ACT OF 1964, AS AMENDED; AND PROVIDING AN EFFECTIVE DATE. Miller motioned, Young seconded to approve the resolution. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. 2. The Council considered adoption of an ordinance permitting and regulating the construction, maintenance and use of a long distance telecommunications system by Worldcom Network Services, Inc. across, over and under certain highways and public rights-of-way of the City of Denton. Herb Prouty, City Attorney, stated that this ordinance settled a dispute with Worldcom Network Services, Inc. for use of the City's right-of-way for long distance telecommunication services. The use was limited to long distance telecommunication services. The agreement had a 25 year term with the option to renew for another 25 years. The compensation was a one-time $10,000 payment and a $1.15 per linear foot fee based on 9,882 linear feet. The fee would be escalated each year by a price formula. The following ordinance was considered: NO. 96-019 AN ORDINANCE PERMITTING AND REGULATING THE CONSTRUCTION, MAINTENANCE AND USE OF A LONG DISTANCE TELECOMMI3NICATIONS SYSTEM BY WORLDCOM NETWORK SERVICES, INC. ACROSS, OVER AND UNDER CERTAIN HIGHWAYS AND PUBLIC RIGHTS-OF-WAY OF THE CITY OF DENTON; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. Biles motioned, Brock seconded to adopt the ordinance. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "aye", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried unanimously. 3. The Council considered adoption of an ordinance accepting competitive bids and awarding a contract for the purchase of materials, equipment, supplies or services. Acting City Manager Svehla stated that both Items 3 and 4 were on the last agenda. They were pulled from that meeting as they were City of Denton City Counc~i~!~i~U~ January 23, 1996 Page 16 179 on the wrong ordinances. Both items were for purchases for the fleet. They were the low bid on the State contract. The following ordinance was considered: NO. 96-020 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. Miller motioned, Brock seconded to adopt the ordinance. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "nay", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried with a 6-1 vote. 4. The Council considered adoption of an ordinance awarding a contract for the purchase of materials, equipment, supplies or services by the State Purchasing General Service Commission. The following ordinance was considered: NO. 96-021 AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES BID BY THE STATE PURCHASING GENERAL SERVICE COMMISSION; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR ANEFFECTIVE DATE. Biles motioned, Brock seconded to adopt the ordinance. On roll vote, Miller "aye", Young "aye", Cott "aye", Krueger "nay", Brock "aye", Biles "aye", and Mayor Castleberry "aye". Motion carried with a 6-1 vote. With no further business, the meeting was adjourned at 9:00 p.m. ~ITY 'SECRETARY CITY OF DENTON, TEXAS ACC002E6