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Minutes August 12, 1997 CITY OF DENTON CITY COUNCIL MINUTES August 12, 1997 After determining that a quorum was present and convening in an open meeting, the City Council convened in a closed meeting on Tuesday, August 12, 1997 at 6:00 p.m. in the Police Department Conference Room of the Denton Municipal Complex. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Kristoferson, Cochran, Durrance and Young. ABSENT: None 1. Closed Meeting: A. The Council discussed and considered Tetreault claim growing out of the drowning incident which occurred at Bell and Robertson Streets in November, 1996. B. Conference with Employees -- Under TEX. GOV'T CODE Sec. 551.075. The Council received information from employees or questioned employees during a staff conference or briefing, but did not deliberate during the conference. The Council convened into a Special Called Meeting on Tuesday, August 12, 1997 at 7:00 p.m. in the Central Jury Room of the Denton Municipal Complex. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Kristoferson, Cochran, Durrance and Young. ABSENT: None 1. The Council held a public hearing to discuss the proposed 1997-98 budget. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. Mayor Miller stated that staff had used the budget questionnaire to prepare the budget using Council's priorities. The proposed budget reflected what the Council felt were the greatest needs in the City. 2. The Council considered nominations/appointments to City Boards and Commissions. Council Member Kristoferson nominated Jim Kuykendall to the Information Services Advisory Board. Council Member Young nominated Harry Bell to the Community Development Advisory Board. Following the completion of the Special Called Meeting, the Council convened into a Joint Work Session with the Public Utilities Board. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Kristoferson, Cochran, Durrance and Young. City of Denton City Council Minutes August 12, 1997 Page 2 ABSENT: None 1. The Council received a report, held a discussion and gave staff direction regarding the final report of the Management Study as prepared by Black & Veatch. Bob Nelson, Executive Director for Utilities, stated that the Charter required a management review once every ten years by a qualified consultant. This had been a phased study in which the activity was divided into sections. Dennis Allen, Black and Veatch, presented an overview of the study. The outline of the study was included in the back-up materials. The process of the study included the community, the Utility Department, practice experts for findings and recommendations and benchmarking. Value definitions included effectiveness which meant doing the right thing and efficiency which meant doing things right. The community included the City Council, the Public Utilities Board, citizens, business, industry and community groups. Community values included high quality of service in the areas of reliability, responsiveness, protection of public health, effective management and plans to meet future needs. Community values also included service at a reasonable but not necessarily the lowest cost. Community assessment of the Utilities Department indicated that the Department was doing a commendable job in ensuring a high quality of service, with a reliable product at a fair price. Senior management was committed to effective and efficient operations with a responsive level of service. Major challenges for the Department included deregulation/re-regulation of the electric industry that presented the questions of being able to afford the electric system and having to deal with stranded costs. Other challenges included the rapid growth of Denton with its challenge of serving new growth, affording current level and quality of service and staying competitive; fixing the city's widespread drainage problem; the pressure of privatization with competition with the private sector and the competition of surrounding communities. The study presented strengths, weaknesses, opportunities and threats to the utility. Strengths included personnel, level of customer service, training/safety, understanding cost of services, knowing and meeting industry standards, short term planning, dependable power supply, future water supply which was secured, and an exclusive commercial waste hauling service. Weaknesses included a problem in retaining lower level employees with non- competitive salaries, a need for strategic long term planning, poor communication with General Government departments, the TMPA issue with stranded costs and deregulation, the high cost of raw water and the issue of 15 months left of landfill capacity. Opportunities included quality of service versus costs, technologies with the SCADA systems and computers, image building and fiber optics. Rapid growth, increased/new regulations, privatization, deregulation with a possible customer choice of electric power supply, TMPA stranded costs, long term decline in water usage per customer and permitting the new landfill were threats that were perceived to the system. Another area considered was governance. That area included the statutory roles of City Council, the Public Utilities Board, the City Manager and the Executive Director. There needed to be a clear agreement and understanding of roles with those entities and positions. Governance recommendations included a competitive decision process in which there could be closed session discussions for competitive strategies; a clearer definition of roles with an ad hoc study committee to further define the roles and recommend changes to the Charter; and a timeliness and reduced bureaucracy such as having routine purchases over $50,000 going directly to the City Council. Utility management was examined in terms of overall condition; organization structure and the planning process. The overall condition of the Utility management was a strong and highly educated management team and leadership. Teamwork was good as well as internal communications and an understanding of mission. There City of Denton City Council Minutes August 12, 1997 Page 3 needed to be improved communication with General Government departments and information to the public needed to focus more on what service the community received for its investment. The overall condition of the facilities was good with a focus on planned/preventative maintenance activities. Updated technologies were needed in terms of SCADA, automation and computer systems. In terms of competitiveness the current electric, water/wastewater and solid waste rates were competitive in the region, the managers had a detailed understanding of costs, the managers were focused on being competitive and deregulation and privatization was changing the playing field. There were 171 recommendations in the final study. In terms of the electric utility, the findings and recommendations included the formation of a strategy committee to address deregulation; keeping a strong leadership position in TMPA, upgrading the SCADA system; and pursuing fiber optics. Findings/recommendations for the water utility included reducing staffing at the Water Plant, using a separate staff to perform CIP activities; and looking at outsourcing grounds maintenance. Wastewater utility findings/recommendations included reducing staffing at the wastewater plant; expanding the use of automation, and continuing to outsource ground maintenance. Findings/recommendations for water and wastewater engineering included implementing new coordination procedures with engineering and transportation, continuing to improve cooperation and communications and moving pipeline design/construction under the utilities department when rapid growth of the City began. Solid waste recommendations included developing an alternate disposal plan to be ready if the landfill permit was delayed, improving image in commercial collection, obtaining computer software to improve efficiencies, and implementing street rental fees on commercial haulers operating within the city. Drainage operations findings/recommendations included appointing a Senior city official to develop and implement improvements to the drainage system, consolidating planning engineering and maintenance under one department, expanding the use of enhanced technology for early warning and expanding the maintenance staff Fleet services findings/recommendations included pursuing preventative maintenance programs, finalizing plans for upgrading or replacing vehicle maintenance facilities, purchasing extended warranties on new equipment, and continuing to outsource specialized services. Support services findings/recommendations included improving communication and working relationships, supporting the City Manager's communication summits, being a part of the utility team to stay competitive and the need for salary and position evaluations. Mayor Miller stated that this study was a good place to start building on the efficiencies of the utility system. With no further business, the meeting was adjourned at 9:25 p.m. JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS JACK MILLER, MAYOR CITY OF DENTON, TEXAS