Minutes September 24, 1996138
MINUTES
CITY OF DENTON CITY COUNCIL
September 24, 1996
~lenda Item
,,
The Council convened into a Closed Meeting on Tuesday, September 24,
1996 at 5:45 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
The Council considered the following in Closed Meeting:
Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071
1. Consulted with attorney regarding status and strategies
regarding RPS/Weber & Barnes v. City, and considered
mediation or settlement.
Discussed and considered a resolution retaining Haynes &
Boone, LLP to represent the City of Denton in its
franchise fee dispute with GTE.
B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072
Discussed the exchange, lease, or value of 8.565 acres,
being a portion of South Lakes Park in Abstract 616 and
1007 in the City and County of Denton, to be exchanged or
leased to the Denton Independent School District for
5.105 acres in Abstract 186 in the city and County of
Denton on windsor Drive plus additional land out of these
abstracts as necessary to assure an equivalent exchange.
Ce
Personnel/Board Appointments -- Under TEX. GOV'T CODE Sec.
551.074
The Council convened into a Special Called Meeting on Tuesday, September
24, 1996 at 7:00 p.m. in the 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 considered adoption of an ordinance authorizing the
City Manager to execute a multiple use agreement between the City of
Denton and the Texas Department of Transportation to permit the
construction, maintenance and operation of a day labor pavilion on the
highway right-of-way of U.S. 377 in the city of Denton, near Collins
Street.
Rick Svehla, Deputy City Manager, stated that he would be discussing
both Items #1 and ~2. Item #1 was a multiple use agreement with TxDot
regarding the right-of-way on U.S. 377. The agreement would allow the
use of the land for a day laborer pavilion. Item #2 would lease the
property to the Denton Heritage Christian Academy (Denton Humanitarian
Association). Under the agreement the Association would assume the same
city of Denton City Council Minutes
September 24, 1996
Page 2
139
items that the City would assume from TxDot. Liability, improvements to
the site, etc. would be done by the Association. The city would help
with liaison work with TxDot, inspections of the site and types of
improvements the Association would be doing. This would help solve the
problem of the day laborer situation. The entrance to the site would be
off Myrtle Street. A pavilion would be built on the site with
landscaping and irrigation. Restroom facilities would be on site with
a water fountain.
The following ordinance was considered:
NO. 96-214
AN ORDINANCE AUTHORIZING THE CITY MANAGER OF THE CITY OF DENTON,
TEXAS TO EXECUTE A MULTIPLE USE AGREEMENT BETWEEN THE CITY OF
DENTON, TEXAS AND THE TEXAS DEPARTMENT OF TRANSPORTATION TO PERMIT
THE CONSTRUCTION, MAINTENANCE AND OPERATION OF A DAY LABOR PAVILION
ON THE HIGHWAY RIGHT-OF-WAY OF U.S. 377 IN THE CITY OF DENTON,
TEXAS, NEAR COLLINS STREET; AND PROVIDING AN EFFECTIVE DATE.
Young motioned, Biles seconded to adopt the ordinance. On roll vote,
Beasley "aye", Brock "aye", Cott "aye", Krueger "aye", Young "aye",
Biles "aye", and Mayor Miller "aye". Motion carried unanimously.
2. The Council considered adoption of an ordinance authorizing the
city Manager to execute a multiple use agreement between the city of
Denton and Denton Heritage christian Academy, Inc. doing business as
Denton Humanitarian Association to permit the construction, maintenance
and operation of a day labor pavilion on the highway right-of-way of
U.S. 377 in the City of Denton, at 221 West Collins Street.
The following ordinance was considered:
NO. 96-215
AN ORDINANCE AUTHORIZING THE CITY MANAGER OF THE CITY OF DENTON,
TEXAS, TO EXECUTE A MULTIPLE USE AGREEMENT BETWEEN THE CITY OF
DENTON, TEXAS AND DENTON HERITAGE CHRISTIAN ACADEMY, INC. DBA
DENTON HUMANITARIAN ASSOCIATION TO PERMIT THE CONSTRUCTION,
MAINTENANCE AND OPERATION OF A DAY LABOR PAVILION ON THE HIGHWAY
RIGHT-OF-WAY OF U.S. 377 IN THE CITY OF DENTON, TEXAS, AT 221 WEST
COLLINS STREET; AND PROVIDING AN EFFECTIVE DATE.
Young motioned, Biles seconded to adopt the ordinance. On roll vote,
Beasley "aye", Brock "aye", Cott "aye", Krueger "aye", Young "aye",
Biles "aye", and Mayor Miller "aye". Motion carried unanimously.
3. The Council considered adoption of an ordinance authorizing the
city Manager to execute an agreement between the City of Denton and
Nebrig & Associates, Incorporated to lease certain premises of the
Municipal Airport and construct and maintain an office, hangar,
maintenance and related aviation facilities thereon.
1 40City of Denton City Council Minutes
September 24, 1996
Page 3
Joseph Portugal, Assistant to the City Manager, stated that this
ordinance would authorize a lease agreement for 30 years with Nebrig &
Associates. There would be two ten year options. The initial lease was
for approximately 1.50 acres with an option for an additional 1.5 acres
and 1.7 acres. Under the initial lease an office/hanger complex would
be built for aircraft that they would be brokering. The second parcel
would involve the building of t-hangers. This firm was currently based
at Love Field and would be moving their facility to the Denton Municipal
Airport.
The following ordinance was considered:
NO. 96-216
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
BETWEEN THE CITY OF DENTON AND NEBRIG & ASSOCIATES, INCORPORATED TO
LEASE CERTAIN PREMISES OF THE MUNICIPAL AIRPORT AND CONSTRUCT AND
MAINTAIN AN OFFICE, HANGER, MAINTENANCE AND RELATED AVIATION
FACILITIES THEREON; AND PROVIDING AN EFFECTIVE DATE.
Biles motioned, Brock seconded to adopt the ordinance. On roll vote,
Beasley "aye", Brock "aye", Cott "aye", Krueger "aye", Young "aye",
Biles "aye", and Mayor Miller "aye". Motion carried unanimously.
4. The Council considered approval of a resolution requesting the
Texas Municipal League to sponsor legislation to allow members of
governmental bodies to deliberate board and commission member
appointments in Executive Session under Tex. Gov't Code Section 551.074.
City Manager Benavides stated that at the Council's annual planning
meeting, Council had indicated to staff a desire to develop a resolution
regarding this matter. If Council approved this resolution, it would be
forwarded to the Texas Municipal League for their consideration.
The following resolution was considered:
NO. R96-055
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REQUESTING
THE TEXAS MUNICIPAL LEAGUE TO SPONSOR LEGISLATION TO ALLOW MEMBERS
OF GOVERNMENTAL BODIES TO DELIBERATE BOARD AND COMMISSION MEMBER
APPOINTMENTS IN EXECUTIVE SESSION UNDER TEX. GOV'T CODE SECTION
551.074; AND PROVIDING AN EFFECTIVE DATE.
Beasley motioned, Brock seconded to approve the resolution. 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 considered approval of a resolution authorizing the
City Manager to request the Texas Municipal League to monitor
legislation by the 75th Legislature to further change the Public Utility
Regulatory Act until Texas has an opportunity to understand the
city of Denton City Council Minutes
September 24, 1996
Page 4
141
effectiveness of the changes that are currently being adopted for the
wholesale electric market in Texas.
Bob Nelson, Executive Director for Utilities, stated that major changes
were taking place in the electric industry with the wholesale market
being restructured and deregulated. It was anticipated that there would
be major forces in the legislature to extend the regulation to the
retail sector. All publicly-owned electric utilities were concerned
about extending those regulations to the retail market. There was a
serious concern about reliability and a possibility of a higher electric
cost to small customers who would be required to assume the cost
incurred by lost revenues for customers leaving. This resolution would
be forwarded to the Texas Municipal League asking them to monitor the
situation.
The following resolution was considered:
NO. R96-056
A RESOLUTION AUTHORIZING THE CITY MANAGER TO REQUEST THE TEXAS
MUNICIPAL LEAGUE TO MONITOR LEGISLATION BY THE 75TH LEGISLATURE TO
FURTHER CHANGE THE PUBLIC UTILITY REGULATORY ACT UNTIL TEXAS HASAN
OPPORTUNITY TO UNDERSTAND THE EFFECTIVENESS OF THE CHANGES THAT ARE
CURRENTLY BEING ADOPTED FOR THE WHOLESALE ELECTRIC MARKET IN TEXAS;
AND DECLARINGAN EFFECTIVE DATE.
Biles motioned, Brock seconded to approve the resolution. On roll vote,
Beasley "aye", Brock "aye", Cott "aye", Krueger "aye", Young "aye",
Biles "aye", and Mayor Miller "aye". Motion carried unanimously.
6. The Council considered adoption of an ordinance approving and
ratifying the Mayor's execution of a settlement agreement, and
authorizing the Mayor to execute all documents necessary to effectuate
such agreement in the matter of John T. Webber and Eric S. Barnes.
Plaintiffs v. city of Denton, Texas, Defendant v. RPS Ventures, Inc.,
Bamnik U. Rana and Pushpa Rana, Intervenors and RPS Ventures, Inc.,
Ramnik U. Rana and Pushpa Rana, Plaintiffs v. City of Denton, Texas,
Defendant v. John T. Webber and Eric S. Barnes, Intervenors, Cause No.
95-40737-362; authorizing payment of $110,000 to RPS Ventures, Inc.,
Ramnik U. Rana and Pushpa Rana and the performance of other terms and
conditions.
CitY Attorney Prouty stated that mediation in this case resulted in all
of the parties signing a mediation agreement which would dispose of
these lawsuits. Some of the main terms of the settlement included that
the City would pay RPS Ventures $110,000, there would be a rezoning of
the property to Commercial with uses only allowed in general retail,
some costs would be paid by the City, and liaisons would be appointed
within the City's Economic Development staff to help market the
property. The ordinance would approve the mediation agreement and
authorize the Mayor to execute other documents necessary to settle the
agreement.
1 4 %ity of Denton City Council Minutes
September 24, 1996
Page 5
The following ordinance was considered:
NO. 96-217
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AND RATIFYING
THE MAYOR'S EXECUTION OF A SETTLEMENT AGREEMENT, AND AUTHORIZING
THE MAYOR TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE SUCH
AGREEMENT IN THE MATTER OF JOHN T. WEBBER AND ERIC S. BARNES,
PLAINTIFFS V. CITY OF DENTON, TEXAS, DEFENDANT V. RPS VENTURES,
INC.. RAMNIK U. RANA AND PUSHPA RANA, INTERVENORS AND RPS
VENTURES. INC.. RAMNIK U. RANAAND PUSHPARANA, PLAINTIFFS V. CITY
OF DENTON, TEXAS, DEFENDANT V. JOHN T. WEBBER AND ERIC S. BARNES,
INTERVENORS, CAUSE NO. 95-40737-362; AUTHORIZING PAYMENT OF
$110,000 TO RPS VENTURES, INC., RAMNIK U. RANA AND PUSHPA RANA AND
THE PERFORMANCE OF OTHER TERMS AND CONDITIONS; AND DECLARING AN
EFFECTIVE DATE.
Biles motioned, Brock seconded to adopt the ordinance.
John Weber stated that he supported the mediation agreement. Last
weekend there was a very successful Denia Fall Festival with many
participants. Over 60 area businesses donated prizes, food and supplies
for the Festival which showed that the area had not only the support of
the neighborhood but also the businesses.
Mayor Miller indicated that Joe Dodd had submitted a Speaker Card
indicating that he did not wish to speak on the item but was in
opposition to the proposal. He indicated that $110,000 did not make
Denton a better and safer place to live.
Mayor Miller stated that one condition in the settlement was that no
hotel/motel would be built on the site.
On roll vote, Beasley "aye", Brock "aye" Cott "aye" Krueger "aye"
Young "aye", Biles "aye", and Mayor Miller "aye". Motion carried
unanimously.
7. The Council considered approval of a resolution accepting the
resignation of Council Member Jeff Krueger and expressing sincere
appreciation for his unselfish services as a Council Member for District
2; and requesting the Governor to proclaim an emergency to allow the
City Council to call an emergency election under the Texas Election Code
to fill the vacancy in the District 2 City Council seat.
City Attorney Prouty stated that in passing this resolution the Council
would first be accepting the resignation of Council Member Krueger. A
difficult aspect of this resolution was trying to comply with the City
Charter and State law. Even though Council M~mb~ K~uege~ had resigned
and the Council accepted that resignation, he would continue to serve
until either he was sworn in as a County Commissioner or his successor
was elected and qualified. The City Charter indicated that a special
election should be held within 60 days. However, there was no uniform
City of Denton City Council Minutes
September 24, 1996
Page 6
143
election date under the Texas Election Code in that time period. The
November election date was not available due to the presidential
election. The next available date was January 18th. The only exception
which would allow the City to hold an election within the time required
by the City Charter would be if the Governor would declare an emergency
election. That would not be easy and probably had never been done
before. If the City was successful in having the Governor declare an
emergency, the Council would have to call the election at the October
1st meeting or the very latest at the October 15th meeting. This
election would have to be precleared with the Justice Department. If
the Governor did not declare an emergency, the election would be January
18th and the Council would have to call the election on November 19th.
Council Member Krueger stated that he was not trying to not perform the
duties of a council member. He was trying to not have a vacant seat on
the Council which would provide for an easier and smoother transition to
the position.
The following resolution was considered:
NO. R96-057
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON ACCEPTING
THE RESIGNATION OF COUNCILMEMBER JEFF KRUEGER AND EXPRESSING
SINCERE APPRECIATION FOR HIS UNSELFISH SERVICE AS A COUNCILMEMBER
FOR DISTRICT 2; REQUESTING THE GOVERNOR TO PROCLAIM ANEMERGENCY TO
ALLOW THE CITY COUNCIL TO CALL AN EMERGENCY ELECTION UNDER THE
TEXAS ELECTION CODE TO FILL THE VACANCY IN THE DISTRICT 2 CITY
COUNCIL SEAT; AND PROVIDING AN EFFECTIVE DATE.
Brock motioned, Cott seconded to approve the resolution. On roll vote,
Beasley "aye", Brock "aye", Cott "aye", Krueger "aye", Young "aye",
Biles "aye", and Mayor Miller "aye". Motion carried unanimously.
8. The following official action was taken on Closed Meeting Items:
The following resolution was considered:
NO. R96-058
A RESOLUTION RETAINING HAYNES AND BOONE, L.L.P. AND HELM, FLETCHER,
BOWEN & SAUNDERS, L.L.P., TO REPRESENT THE CITY OF DENTON IN ITS
FRANCHISE FEES DISPUTE WITH GTE; AND PROVIDING AN EFFECTIVE DATE.
Biles motioned, Young seconded to approve the resolution. On roll vote,
Beasley "aye", Brock "aye", Cott "nay", Krueger "aye", Young "aye",
Biles "aye", and Mayor Miller "aye". Motion carried with a 6-1 vote.
Following the completion of the Special Called Session the Council
convened into a Work Session.
1 4~City of Denton City Council Minutes
September 24, 1996
Page 7
PRESENT:
Mayor Miller; Mayor Pro Tem Brock;
Biles, Cott, Krueger, and Young.
ABSENT: None
Council Members Beasley,
1. The Council received a report and held a discussion regarding route
revisions of the public transportation system.
Joseph Portugal, Assistant to the City Manager, stated that on Tuesday,
October 1st the transportation system would undergo significant changes.
Factors influencing the route revisions included a reduction in federal
funding, an assessment of existing routes, public comments, suggestions
and requests. The review process included a peer review with an outside
transit planner, a public hearing, input from the SPAN ADA Advisory
Committee, input from the city of Denton staff, and the development of
a new system map. Goals and objectives of the revisions were cost
effectiveness, efficiency and convenience. Effects of the route
revisions included reduced fixed routes, reduced operating hours/vehicle
miles, reduced Saturday service and the elimination of holiday service.
Routes were reduced from five to four. A distribution of new route maps
would be at governmental facilities, the Golden Triangle Mall, the
Outlet Mall, retail centers, financial institutions, Chamber of
Commerce, medical facilities, residential facilities, educational
facilities, and SPAN vehicles. A full page ad would be placed in the
Denton Record-Chronicle and the new route signs were in place and ready
to be used.
Council Member Young felt that the SPAN services were meeting the needs
of the people.
Council Member Beasley asked about funding for the following year.
Portugal stated that it would be a policy decision of Council which
might include the encouragement of funding for public transportation.
Council Member Cott felt that the private sector should be considered as
a funding source.
2. The Council received a report, held a discussion and gave staff
direction regarding amendment to the current investment policy.
Harlan Jefferson, Director of Fiscal Operations, stated that at the last
legislative session amendments were made to the Public Funds Investment
Act. The changes included a monthly independent review by the internal
auditor and an annual review by an external auditor. The Investment
Committee had reviewed the City's current policy and recommended the
following changes: change the annual report date from the end of the
fiscal year to the end of the calendar year, require all wire transfers
to have written confirmation with proper exchange and verification of
personal identifications numbers.
City of Denton City Council Minutes
September 24, 1996
Page 8
145
Biles motioned, Brock seconded to move forward with the proposed
changes. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Krueger
"aye", Young "aye", Biles "aye", and Mayor Miller "aye". Motion carried
unanimously.
3. The Council received a report, held a discussion and gave staff
direction regarding billing proposals for Emergency Medical Services.
Harlan Jefferson, Director of Fiscal Operations, stated that this item
had been under consideration for a long time and became a more urgent
issue when it was learned that the selected CAD system and the billing
system were not compatible with the new computer system. Major short-
term goals were to reduce processing time and the duplication of entries
of EMS billing. Specific and measurable program objectives included
producing EMS statements within 24 hours with all statements and
mailings to be handled externally. Specific program productivity
measures affected by this proposal included an increase over baseline,
a faster return on revenue and internal staff would be available to
concentrate on utility account receivables. Outsourcing the EMS billing
would allow internal staff the time needed to work on other departmental
goals. The City would receive revenue faster as a result of customers
receiving bills faster. Additionally, the processing and mailing
expenses would be absorbed by the external billing company. Staff was
recommending that the bid of Diversity Health Care/Doctors Reporting
Services be accepted.
Council Member Cott asked if there was a problem with the billing or the
collecting aspect of this process.
Jefferson stated that it was more of a billing problem than a collection
problem. Currently staff had to use two software packages to enter the
billings. Outsourcing the billings would be a savings and allow the
current staff to provide other services.
Brock motioned, Young seconded to proceed with the proposal. On roll
vote, Beasley "aye", Brock "aye", Cott "aye", Young "aye", Biles "aye",
and Mayor Miller "aye". Motion carried unanimously.
4. The Council received a report, held a discussion and gave staff
direction concerning a proposal by the Denton County Tax Assessor's
office for collection of City of Denton taxes.
CitY Manager Benavides stated that Mary Horn had approached the City to
collect its ad valorem taxes. Staff had analyzed the proposal and had
recommended earlier to Council that the City had the expertise to
collect the taxes and could do it as cheaply as the County. As this was
important information there was a need to keep control of it as much as
possible in order to collect other fees and charges. Staff was
recommending to continue with the present method of collecting ad
valorem taxes.
146
City of Denton city Council Minutes
September 24, 1996
Page 9
Council Member Young stated that he understood the recommendation but he
represented the citizens. His callers indicated that they liked the
proposal of one-stop tax paying.
Young motioned, Cott seconded to turn over the tax collection services
to Mary Horn.
Mayor Pro Tem Brock reminded the city Council Members that one of the
reasons City Manager Benavides was selected was because of his strong
background in finance and budgeting. He had made a strong
recommendation and she had faith in his recommendation and in the
numbers presented. She had a concern with the proposal with five taxing
entities being controlled by the County Tax Assessor. The per item cost
might seem low, but once no one in the County except one office
collected the taxes, there might be a situation where there would be no
control over increased costs. She also felt that the City's system was
run by professionals. Mary Horn's position was a political position
which could change every four years. She had a great deal of confidence
in the City staff to keep the current system.
Council Member Krueger stated that he had already voted for such a
proposal while on the DISD Board of Trustees and the effect was very
positive for the DISD. The need for delinquent tax collection had
decreased as the collection rate had increased with the DISD. There was
no adverse effect on Denton citizens who could pay all taxes on one
bill. This was more convenient for tax records and would be downsizing
of local government which he felt was good.
Council~ber Beasley stated that the prior agenda item indicated a
problem with the EMS billing which needed to be changed. She questions
why change the tax collection system when there was no problem with this
system. She was against outsourcing unless there was a good reason for
doing such. The City should be running as any other business and this
should be done in-house. There was no reason to go outside when the
current staff was doing a good job.
Council Member Biles stated that the City would soon be engaging in a
top to bottom management review which would determine whether operations
could be improved. He felt that this proposal should be included in the
process along with the other issues.
Mayor Miller stated that the Council had had a prior discussion
regarding the issue. The Council was responsible for setting the tax
rate for the City of Denton with very efficient staff in this area. The
Council, over the last three years, had reduced taxes. He felt one
consolidated tax bill would cause citizens to hold all entities
accountable. If the current process was done efficiently, he was not in
favor of changing that process.
Council Member Young indicated that an earlier discussion had produced
no objections with the current system. He had since received calls from
citizens who asked him to bring the item back to the Council.
city of Denton City Council Minutes
September 24, 1996
Page 10
147
On roll vote, Beasley "nay", Brock "nay", Cott "aye", Krueger "aye",
Young "aye", Biles "nay", and Mayor Miller "nay". Motion failed with a
3-4 vote.
5. The Council received a report, held a discussion and gave staff
direction regarding a proposed resolution to exercise the power of
eminent domain by the Upper Trinity Regional Water District for right-
of-way for Sanger water supply pipeline.
Bob Nelson, Executive Director for Utilities, stated that the Upper
Trinity Regional Water District was proposing to extend its pipeline
from Exposition Mills to Sanger in order to furnish water to Sanger. The
City was working with Sanger to participate with the pipeline to Milam
Road. State legislation required the UTRWD to get Council consent to
exercise eminent domain. The Public Utilities Board had recommended
approval.
Krueger motioned, Young seconded to proceed. On roll vote, Beasley
"aye", Brock "aye", Cott "aye", Krueger "aye", Young "aye", Biles "aye",
and Mayor Miller "aye". Motion carried unanimously.
With no further business, the meeting was adjourned at 8:30 p.m.
CITY OF DENTON, TEXAS
~XAS
ACC00343