Minutes July 23, 1996CITY OF DENTON CITY COUNCIL MINUTES
July 23, 1996
The Council convened into a Closed Meeting on Tuesday, July 23,
1996 at 5:15 p.m. in the civil Defense Room of City Hall.
PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members
Beasley, Biles, Cott, Krueger, and Young.
ABSENT: None
1. The Council considered the following in Closed Meeting:
A. Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071
B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072
Discussed the acquisition of property for expansion
of the City's wastewater treatment plant.
2e
Discussed possible purchase of vacant Texas
Instruments facility at 3940 N. Elm Street by a 4B
non-profit economic development corporation to be
fo~med by Dell Computer Corporation and the City
and discussed possible terms of a lease between the
4B and entities that might consider leasing of such
facility from the 4B.
Ce
Personnel/Board Appointments -- Under TEX. GOV'T CODE
Sec. 551.074
The Council convened into a Work Session on Tuesday, July 23, 1996
at 6:00 p.m. in the City Council Chambers of City Hall.
PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members
Beasley, Biles, Cott, Krueger, and Young.
ABSENT: None
1. The Council received a report and held a discussion regarding
the Denton Central Appraisal District's proposed budget.
Joe Rogers, Chief Appraiser - Denton Central Appraisal District,
reviewed the proposed budget as presented in the agenda back-up
materials. There would be a public hearing on July 25th for public
comment. The budget was approximately 4.2% over the previous
budget. Primary changes in the proposed budget were the addition
of an appraiser for personal property which was the only addition
of employees for the proposed budget, an increase in the reserve
for legal expenses, an increase in data processing related
expenses, an increase in the printing and postage accounts, and an
increase in the contingency account.
Mayor Pro Tem B~ock stated that the City really did not have a
choice about approving the budget.
Rogers replied that the amount which the City paid was set based on
the total tax levy for the city.
City of Denton City Council Minutes
July 23, 1996
Page 2
Council Member Krueger asked if there was a reserve which the
District had and were there ways to use that reserve rather than
have an increase.
Rogers replied that this year he reviewed the 1994-95 budget
expenditures for each account and the budget was proposed on what
was done over the last several years. His budget was driven by
what they were required to do,
Council Member Krueger stated that last year the District budgeted
$30,000 for the contingency fund and this year $50,000 was
proposed. Had the District gone over the $30,000 this year?
Rogers replied no but that the fiscal year was not over and the
last several years the District ended with a reasonable balance.
If there were funds remaining in the account at the end of the
fiscal year, it had to be returned to the taxing jurisdictions.
2. The Council received presentations, held a discussion and gave
staff direction regarding the hotel occupancy tax funding to
various organizations including:
A. Chamber of Commerce Convention and Visitors Bureau
B. North Texas State Fair Association
C. Denton County Historical Foundation
D. Denton County Historical Museum
E. Greater Denton Arts Council
F. Denton Main Street Association
G. Denton County Amphitheater Association
H. Denton Festival Foundation
I. Denton Black Chamber of Commerce
J. Denton Historic Landmark Com~ission
K. Denton Hispanic Chamber of Commerce
Mayor Miller stated that the first five organizations had ongoing
funding under a two year program. The other organizations received
funding for only one year.
A. Chamber of Commerce - Convention and visitors Bureau - Greg
Sawko stated that there was an existing contract which set the
amount of money the Bureau was provided and which went through
1997. The purpose of the Bureau was to attract conventions and
visitors to Denton.
Council Member Beasley stated that the Bureau would be
concentrating less on convention solicitation because of the lack
of a conference center and would be focusing more on tourism
e=peclally with the new Texas Motor Speedway. She felt that that
was a good marketing plan as the City did not have any type of
convention facility.
Council Member Young expressed a concern regarding transportation
inside the City when the Speedway opened as he felt the City's
present cab service would not be adequate.
city of Denton City Council Minutes
July 23, 1996
Page 3
Mayor Pro Tem Brock asked about the funding for'the billboard on 1-
35. There was no funding listed in that account.
Sawko stated that the Bureau would continue to use the billboard
but that the criteria had been changed to not include commercial
messages. Very little funds had been received for outside
commercial messages and it was felt that the billboard would be
best used for other purposes. The money in that account was
deleted as it was anticipated that there would be no funds received
for the use of the billboard.
Mayor Pro Tem Brock stated that when various events were discussed
by the Chamber along with points of interest, there were no sports
events related to either of the two universities and there were no
concerts or other events listed. She asked if the Bureau was going
to promote those types of items.
Sawko stated that the Bureau had entered into an agreement to do
advertising for the university of North Texas.
Mayor Miller stated that a proposed budget had been submitted to
each of the organizations. In each case, based on the formula
developed, there was some carry-over from the 1995-96 fiscal year.
Those numbers were included in the budgets from the organizations
and indicated how the organizations were going to use the funds
from the City.
B. North Texas State Fair Association - James Roden stated that
his proposed budget did not increase any salaries but that other
allowable areas were increased.
Council Member Young asked how much the Fair attendance had
increased last year.
Roden replied that the attendance had not increased much but that
the number of exhibitors had increased.
Mayor Pro Tem Brock asked about the Fair's practice of allowing
political signs on the fence around the Fairgrounds.
Roden replied that the Fair was not putting those signs up.
someone put up a sign, they were not going to take it down.
If
C. Denton County Historical Foundation/D. D e n t o n C o u n t y
Historical Museum - Norma Jean Gamble stated that these
organizations were about giving people something to come to Denton
to see. Without the Historical Museum and the Historical
Foundation, she was not sure there would be things for people to
come and see. She detailed several of the projects they were
working on including microfilming old newspapers for public
viewing.
E. Greater Denton Arts Council - Sara Harvey stated that the
allocation of the Labor funds had been simplified this year in
City of Denton City Council Minutes
July 23, 1996
Page 4
their budget. The majority of the disbursements would be going
towards salaries. Staff was involved with the promotion and
programming of the Greater Denton Arts Council and the supervision
of the Center for the Visual Arts.
Mayor Miller stated that the following organizations were ones
which were funded on a one year basis and the proposal was to
consider them for another year of funding in the upcoming budget.
F. Denton Main Street Association - Jane Jenkins stated that the
funding the Association had received during the past year enabled
them to considerably increase their program. The Main Street
Program was now actually serving as a community revitalization
program providing services to other business districts in the
community which required assistance in getting organized for
revitalization. The allocation which they received was spent on
promoting the Main Street events.
G. Denton County Amphitheater Association - Diane Edmondson
stated that the Association viewed the allocation of funds as an
investment in Denton. The feasibility study for the amphitheater
had been completed and would be presented to Council in the near
future. The script was being revised and updated for presentation.
H. Denton Festival Foundation - Carol Short stated that the funds
given to the Foundation were spent on advertising, tourism and
promotional materials. They had many plans for the future and
wanted to implement them with the help of the City. More stages
were needed for performers as well as for well-known headliners and
large tents.
I. Denton Black Chamber of Commerce - John Baines stated the
Black Chamber of Commerce had seven objectives that it was
currently focused on. Several of those included helping emerging
and small businesses connect with the available services within the
community, preparing an information directory of minority
businesses, focusing on special events, focusing on membership,
networking among the businesses, and encouraging youth to become
involved in business. The money granted to the organization in the
prior year was slated to be used in a September production.
J. Denton Historic Landmark Commission - Jane Jenkins,
Preservation officer, stated that the Commission was allocated
$1,000 which was used for a subject marker for the City of Denton.
It was planned to purchase another marker for the City if Council
allocated funds to the Commission for next year.
K. Denton Hispanic Chamber of Commerce - There wa~ no
representative present from the Denton Hispanic Chamber of
Commerce.
Jon Fortune, Chief Finance Officer, stated that Council would be
considering the budgets presented from the first five organizations
on August 6th. If there was no further direction from Council,
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city of Denton City Council Minutes
July 23, 1996
Page 5
staff would proceed with the proposal as presented in the agenda
back-up for the other organizations. They would be presenting a
budget to Council at a later date.
Consensus of Council was to proceed with the first five
organizations as presented.
Council Member Krueger suggested exploring the possibility of
establishing certain percentages for two year terms for some of the
organizations.
3. The Council received a report, held a discussion and gave
staff direction regarding the employee group health insurance
program for the plan year beginning January 1, 1997.
Tom Klinck, Director of Human Resources, stated that the health
insurance program was rebid every three years to ensure that the
city was receiving the best cost for the services provided. A
comprehensive rebid had been done regarding the service. The bid
specifications were developed by Foster and Higgins with input from
the Human Resources staff, the Legal Department and Purchasing.
Council reviewed the specifications in November 1995. The bids
were released in early February and bids opened on April 18, 1996.
Specifications included addressing the employee access to one or
both local hospitals with a minimum bid requirement of at least one
local hospital in the network, providing an IPA model as opposed to
a staff model, active and retiree quotes for rates, plan design
with a choice for employees of HMO or point of service. A one year
contract was bid with the option to renew for two consecutive years
with a second and third year not to exceed rate guarantee.
Qualitative issues associated with the bids included provider
access, contracting and reimbursement methods, the financial
stability of the carrier, utilization management, medical
management, member services, and the length and experience in north
Texas. The bids were distributed to 16 prospective carriers, six
carriers did not respond, four declined to respond and six
submitted bids. Foster and Higgins with the concurrence with the
Legal Department and the Purchasing Department, evaluated the bids
and determined that two carriers fully met the bid specifications -
Harris Methodist and Signa. On an analysis of cost basis, the
Signa bid had the lower first year cost. However, when looking at
second and third year rate guarantees, the Harris bid represented
the lower overall three year cost to the organization for both the
City and covered dependents. Accepting the Harris bid would
eliminate any transition period to a new carrier or disruption to
the employees.
Council Member cott asked why ten carriers did not bid.
Klinck stated that four of the carriers did not bid as they felt
they could not be competitive in terms of the rates. Cities did
not always represent an attractive risk as a private sector
corporation did to some carriers.
City of Denton City Council Minutes
July 23, 1996
Page 6
Council Member Beasley asked about the hospital situation.
Klinck stated that ColumBia had discontinued service with Harris
Methodist. Only 25% of last year's claims dollars were spent on
in-patient care with 119 admits in 1994 and 139 in 1995. That
represented 4-7% of the 2000 individuals insured. Approximately
64% of the City workforce lived within the City limits and would
have access to Denton Regional Medical Center.
Council Member Beasley stated that Harris would have to still
guarantee one hospital in Denton with its bid.
Klinck replied correct.
Denise Blain, Harris Methodist Health Plan, understood and was very
aware of the situation with the divestiture of one of the
facilities by Columbia. It was their commitment to the City to
provide a comprehensive provider network and once the divestiture
took place, they would aggressively pursue the continuation of the
current contract.
Council Member Young asked about the rates for retirees.
Klinck stated that a blended rate was being recommended which would
lower the cost for retirees.
Mayor Miller asked about the hospital privileges of the network
doctors.
Klinck replied that an analysis had been done on those doctors in
Denton. There was only one doctor in the Denton/Lewisville area
who did not have admitting privileges at both hospitals.
Blain stated a "disruption of hospital services" analysis was done
to look at all of the participating physicians in Denton and the
primary care physicians who the employees used. The analysis
showed that there was one Lewisville pediatrician who did not have
admitting privileges at both hospitals. That doctor provided
services for four City of Denton dependents.
Mayor Miller stated that there were instances where one hospital
did not have the equipment necessary for certain types of surgeries
which the other hospital did have. Where would those patients be
served in those cases?
Blain replied that they would initially look within their
participating facilities to determine if that type of equipment was
available. Arrangements would be made to receive services at those
facilities. The physician would not have to change, only the
facility.
Council Member Beasley suggested proceeding with the contract with
Harris Methodist. Conditions included having at least one hospital
in the Harris network and that as soon as possible to have both
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City of Denton city Council Minutes
July 23, 1996
Page 7
hospitals ·
Council Member Biles stated that he would be in favor of the
contract if it stipulated that Harris maintain at least one Denton
hospital, at a minimum.
Klinck stated that a letter of understanding was executed with that
provision. It also included that Harris would pursue discussions
in an attempt to include both hospitals.
Consensus of the Council was to proceed.
4. The Council received a report, held a discussion and gave
staff direction regarding a proposed extraterritorial jurisdiction
agreement line between the city of Denton and the City of Aubrey.
Frank Robbins, Director for Planning and Development, stated that
in 1988 there was an agreement line conceptually approved by the
Denton City Council and Aubrey. Staff was requesting Council
· '
direction to finalize the release of Denton's extraterrltorla
jurisdiction on the east side of the Elm Fork. It was felt that
this was an appropriate line to draw as it was the current
regulatory line. Denton was not certified to provide utilities in
the area and the provision of City services, from the west across
the Elm Fork, would be difficult. Staff was recommending the
release of the extraterritorial jurisdiction.
Council Member Krueger asked for the reasoning for the northern
line around Aubrey.
Robbins replied that that was out of the area which Aubrey was
asking for.
Mayor Pro Tem Brock stated that the extraterritorial jurisdiction
was determined by State law. The extraterritorial jurisdiction was
automatically three and one half miles from the city limits line.
Robbins replied that that was the ETJ line in 1988 and currently
was further north due to the annexation of the Elm Fork.
Mayor Pro Tem Brock asked if Denton had the ability to release
extraterrltor£al ju~i~diction-
Robbins repled yes that there was a specific provision in the Local
Government Code which enabled cities to do that.
Council Member Biles asked why the area south of Highway 380 was
being considered.
Robbins replied that that was where the City's ETJ currently was
located. Denton could unilaterally release that area and whoever
had that ETJ or could get it, would not need Denton's permission.
City of Denton City Council Minutes
July 23, 1996
Page 8
31
Council Member Biles asked if Kruegerville or Cross Roads had
expressed an interest in the area.
Robbins replied no.
Council Member Young felt that Denton should honor the 1988
agreement.
Mayor Miller stated that he understood that there was an agreement
drawn up between the City of Denton and the City of Aubrey in 1988.
According to Denton, that agreement was never signed and returned
to the City of Denton.
Mayor King of Aubrey stated that he disagreed with the agreement
line from 1988. The City of Denton in 1988 approached Aubrey with
the agreement. The agreement line went from St. John's Road to
Highway 455 to Elm Creek, down Elm Creek past orbin Hill Road.
Aubrey's attorney had documentation of letters from the city
Manager of Denton which later requested that the line be lowered to
Highway 380. The City of Denton encouraged Aubrey to pass an
ordinance to regulate the extraterritorial jurisdiction in the
area. That was done and sent to Denton's Council. As requested,
Aubrey passed an extraterritorial jurisdiction ordinance. They had
notarized documentation of the landowners requesting to be in
Aubrey's extraterritorial jurisdiction. Aubrey wanted the city of
Denton to acknowledge the 1988 agreement. They were on the verge
of becoming a growing city and did not want to be boxed in. Several
of the landowner's were disturbed that they might not be in
Aubrey's extraterritorial jurisdiction as previously thought.
Mayor Miller felt that there was a disagreement on what land area
was being discussed. He felt that Denton's staff needed to work
with Aubrey's staff in order to know exactly what area was being
considered. He suggested that the item be postponed and have staff
work with the staff from Aubrey to exactly determine the area.
Council Member Biles felt that it was important to determine
exactly where the City of Denton and the City of Aubrey each
contended where the lines were drawn. Perhaps staff could develop
colored maps in order to pinpoint the areas.
Biles motioned, Beasley seconded to postpone the issue in order for
Staff to work with Aubrey's staff to determine the exact location
of the agreement lines. On roll vote, Beasley "aye", Brock "aye",
Cott "aye", Krueger "aye", Young "aye", Biles "aye", and Mayor
Miller "aye". Motion carried unanimously.
5. The Council received a report, held a discussion and gave
staff direction regarding the City's support for the extension of
the Clean Air Act.
Joseph Portugal, Assistant to the City Manager, stated that the
Council of Governments and the Regional Transportation Council had
asked cities in the north central Texas area to pass resolution8
32¸
City of Denton City Council Minutes
July 23, 1996
Page 9
supporting the extension of the Clean Air Act. The counties of
Dallas, Denton, Collin and Tarrant comprised a moderate ozone non-
attainment area. Failure to obtain an extension for this area
would mean additional federal mandates which could potentially
adversely affect economic stability in the area. Senator Kay
Bailey Hutchison had introduced legislation which would extend the
date for compliance for two years.
Biles motioned, Krueger seconded to direct staff to prepare the
appropriate resolution. On roll vote, Beasley "aye", Brock "aye",
Cott "aye", Krueger "aye", Young "aye", Biles "aye", and Mayor
Miller "aye". Motion carried unanimously.
Following the completion of the Work Session, the Council convened
into a Special Call Session to consider the following:
1. The Council considered a request for an exemption to the noise
ordinance from Marathon Builders to pour concrete on four occasions
at U-Haul, 164 N. 1-35 East, starting at 5:00 a.m.
Veronica Rolen, Administrative Assistant, stated that at the
Council's June 16th meeting, Council considered a request from
Marathon Builders for an exception to the noise ordinance to pour
concrete at the U-Haul location. That request was denied with a 2-
4 vote. Following that meeting, staff met with Norm Jones, a
consultant with Marathon Builders, to obtain additional information
regarding the need for the request. There were four heavy pours
remaining which included 300-350 yards of concrete per pour. Those
pours would be done as close to the weekend as possible. Equipment
which would be used at the site would be a 36 meter pump truck with
generator powered overhead lighting. There were approximately 15
mobile homes near the site which could potentially be effected by
the noise.
Council Member Young stated that the start time of
not mean that concrete would be poured at that time.
they could start setting up at that time.
5:00 a.m. did
It meant that
Norm Jones, Marathon Builders, replied correct. The set-up time
would include pulling the trucks on site and getting the temporary
lighting set up. The extra hour would be for set-up time.
COuncil Member Young stated that it would take approximately an
hour for set-up.
Jones replied correct.
Council Member Young stated that starting earlier would help ~hu
workers with the heat.
Jones stated that the workers at the site were local workers. In
order to get a good finish on the concrete it was necessary to
begin before the heat of the day.
City of Denton City CounC~'ilM~utes
July 23, 1996
Page 10
Council Member Krueger stated that the company had received a
citation for starting early one morning.
Jones replied correct.
Council Member Krueger asked if the neighbors had been contacted.
Jones replied that he had contacted one individual before the work
had started. The neighbor had a problem with a 25' dedication
which did not relate to the concrete pour.
Jim Inman stated that there were seven mobile homes approximately
35' from where the heavy equipment had been operating. The
neighbors felt that the codes were in place to protect the
residents and that those codes should be honored. Some of the
residents had small children and there was one individual
recovering from a hospital stay. He felt the current regulations
should be honored.
Council Member Young stated that he had talked with the residents
in the area. Three residents were against the early start and
three individuals did not mind.
Council Member Cott suggested that the neighbors and the contractor
talk together about the situation.
Mayor Pro Tem Brock stated that she was against granting the
exception as it was too great an imposition on the neighbors. The
neighbors deserved the Council's consideration. The Council had
already considered early construction by changing the ordinance to
allow for a 6:00 a.m. start time in the summer months.
Brock motioned, Krueger seconded to reject the request for an
exception to the noise ordinance and adhere to the 6:00 a.m.
starting time for construction. On roll vote, Beasley "aye", Brock
"aye", Cott "aye", Krueger "aye", Young "nay", Biles "nay", and
Mayor Miller "aye". Motion carried with a 5-2 vote.
2. The Council considered nominations/appointments to the City's
Boards and Commissions.
The Council voted on prior nominations and presented nominations
for future consideration. (See Attachment A)
With no further business, the meeting was adjourned at 9:45 p.m..
Y SECRETARY
CITY OF DENTON, TEXAS
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