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Minutes September 08, 1998CITY OF DENTON CITY COUNCIL MINUTES September 8, 1998 After determining that a quorum was present and convening in an open meeting, the City Council convened in a Closed Meeting on Tuesday, September 8, 1998 at 5:15 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Miller; Mayor Pro Tem Beasley; Council Members Burroughs, Cochran, Kristoferson, and Young. AB SENT: Council Member Durrance 1. Closed Meeting: A. Conference with Employees -Under TEX. GOV'T. CODE Sec. 551.075. The Council received information from employees during a staff conference or briefing, but did not deliberate during the conference. Council Member Durrance arrived during the Closed Meeting. The Council convened into a Special Called Meeting on Tuesday, September 8, 1998 at 6:00 p.m. in the Council Chambers at City Hall. PRESENT: Mayor Miller; Mayor Pro Tem Beasley; Council Members Burroughs, Cochran, Durrance, Kristoferson, and Young. ABSENT: None 1. The Council considered approval of a resolution of appreciation for Ted Benavides. Durrance motioned, Beasley seconded to approve the resolution. On roll vote, Beasley "aye", Burroughs "aye", Cochran "aye", Durrance "aye", Kristoferson "aye", Young "aye", and Mayor Miller "aye". Motion carried unanimously. 2. The Council considered approval of a resolution approving the fiscal year 1999 budget of the Denco Area 9-1-1 District, pursuant to Texas Health & Safety Code {}772.309; and providing an effective date. Kathy DuBose, Assistant City Manager for Finance, stated that this resolution was required by the Texas Health and Safety Code. All governing bodies in each participating jurisdiction were required to approve the Denco Area 9-1-1 District budget. The following resolution was considered: R98-049 A RESOLUTION APPROVING THE FISCAL YEAR 1999 BUDGET OF THE DENCO AREA 9-1-1 DISTRICT, PURSUANT TO TEXAS HEALTH & SAFETY CODE {}772.309; AND PROVIDING AN EFFECTIVE DATE. City of Denton City Council Minutes September 8, 1998 Page 2 Cochran motioned, Kristoferson seconded to approve the resolution. On roll vote, Beasley "aye", Burroughs "aye", Cochran "aye", Durrance "aye", Kristoferson "aye", Young "aye", and Mayor Miller "aye". Motion carried unanimously. 3. The Council considered approval of a resolution adopting the Capital Improvement Plan proposed by the Planning and Zoning Commission; and providing an effective date. The following resolution was considered: NO. R98-050 A RESOLUTION ADOPTING THE CAPITAL IMPROVEMENT PLAN PROPOSED BY THE PLANNING AND ZONING COMMISSION; AND PROVIDING AN EFFECTIVE DATE. Beasley motioned, Cochran seconded to approve the resolution. On roll vote, Beasley "aye", Burroughs "aye", Cochran "aye", Durrance "aye", Kristoferson "aye", Young "aye", and Mayor Miller "aye". Motion carried unanimously. 4. The Council considered adoption of an ordinance levying the ad valorem tax of the City of Denton, Texas, for the year 1998 on all taxable property within the corporate limits of the City on January 1, 1998, not exempt by law; providing revenues for payment of current municipal expenses, and for interest and sinking fund on outstanding City of Denton bonds; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. Kathy DuBose, Assistant City Manager for Finance, stated that the valuation would be $.50815 per $100 valuation. The following ordinance was considered: NO. 98-261 AN ORDINANCE LEVYING THE AD VALOREM TAX OF THE CITY OF DENTON, TEXAS, FOR THE YEAR 1998 ON ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY ON JANUARY 1, 1998, NOT EXEMPT BY LAW; PROVIDING REVENUES FOR PAYMENT OF CURRENT MUNICIPAL EXPENSES, AND FOR INTEREST AND SINKING FUND ON OUTSTANDING CITY OF DENTON BONDS; PROVIDING FOR LIMITED EXEMPTIONS OF CERTA1N HOMESTEADS; PROVIDING FOR ENFORCEMENT OF COLLECTIONS; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Burroughs motioned, Young seconded to adopt the ordinance. On roll vote, Beasley "aye", Burroughs "aye", Cochran "aye", Durrance "aye", Kristoferson "aye", Young "aye", and Mayor Miller "aye". Motion carried unanimously. Kathy DuBose, Assistant City Manager for Finance, stated that Items #5-12 were supporting budget City of Denton City Council Minutes September 8, 1998 Page 3 ordinances for fees and rate schedules. If desired, Council could consider those items in a group. One suggested change was to remove the $10 fee from Item #9. Beasley motioned, Durrance seconded to adopt Items #5-12 with the amendment removing the $10 fee from the solid waste ordinance. On roll vote, Beasley "aye", Burroughs "aye", Cochran "aye", Durrance "aye", Kristoferson "aye", Young "aye", and Mayor Miller "aye". Motion carried unanimously. 5. NO. 98-262 AN ORDINANCE AMENDING THE SCHEDULE OF ELECTRIC RATES CONTAINED IN ORDINANCE NO. 97-236 FOR ELECTRIC SERVICE; ADDING THE ENERGYSAVE PROGRAM (EP) AS CONTAINED IN ORDINANCE NO. 98-093; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. NO. 98-263 AN ORDINANCE AMENDING THE SCHEDULE OF WATER RATES CONTAINED IN ORDINANCE NO. 97-237 FOR WATER SERVICE; AMENDING THE CHARGES FOR TAP AND METER FEES; AMENDING THE WHOLESALE RAW WATER SERVICE RATE TO UTRWD (WRW) CONTAINED IN ORDINANCE NO. 98-079; AMENDING THE WHOLESALE TREATED WATER SERVICE RATE (WW2) TO UTRWD CONTAINED IN ORDINANCE NO. 98-080; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. NO. 98-264 AN ORDINANCE AMENDING THE SCHEDULE OF WASTEWATER RATES CONTAINED IN ORDINANCE 97-238 FOR WASTEWATER SERVICE; AMENDING ORDINANCE NO. 98-067 FOR COMPOST AND MULCH SERVICE (CWM); AMENDING THE RESIDENTIAL WASTEWATER WINTER AVERAGE RATE METHODOLOGY (SR) AND VOLUMES BILLED; AMENDING THE WASTEWATER TAP FEES; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. NO. 98-265 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF MISCELLANEOUS FEES, DEPOSITS, BILLINGS AND PROCEDURES FOR PROVIDING ADMINISTRATIVE SERVICES TO CITY CUSTOMERS AND TAXPAYERS CONTAINED IN ORDINANCE NO. 93-164; AMENDING THE DELINQUENT SERVICE FEE FOR RECONNECTION OF SERVICE AFTER HOURS; AMENDING THE CREDIT CARD SERVICE FEE; AMENDING THE CREDIT CARD SERVICE FEE PROVISIONS CONTAINED IN ORDINANCE NO. 95-096; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. City of Denton City Council Minutes September 8, 1998 Page 4 10. 11. NO. 98-266 AN ORDINANCE AMENDING THE SCHEDULE OF RATES FOR SOLID WASTE SERVICE CONTAINED IN ORDINANCE NO. 97-239, AS AUTHORIZED BY CHAPTER 24 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; AMENDING THE CHARGES FOR A SIX CUBIC YARD COMPACTOR; AMENDING THE PICKUP CHARGES FOR OPEN TOP CONTAINERS; ADDING A SURCHARGE FOR EXCESS OPEN TOP CONTAINER WEIGHT; AND ADDING A CHARGE FOR ANY OPEN TOP CONTAINER OVER NINE TONS; ADDING A CHARGE FOR COMMERCIAL BULKY ITEMS; ELIMINATING THE TWELVE CUBIC YARD COMPACTOR; AMENDING THE OUTSIDE THE CITY LANDFILL RATE; AND ADDING A NEGOTIABLE LANDFILL RATE FOR OUTSIDE THE CITY WASTE HAULERS; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. NO. 98-267 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING SECTION 13-21 AND SECTION 13-22 OF CHAPTER 13 "FOOD AND FOOD ESTABLISHMENTS" OF THE CODE OF ORDINANCES OF THE CITY OF DENTON; PROVIDING THAT PERNHT FEES SHALL BE SET BY CITY COUNCIL BY ORDINANCE AND PROVIDING FOR THE EXEMPTIONS OF THE CITY OF DENTON AND POLITICAL SUBDIVISIONS AND AGENCIES OF THE STATE OF TEXAS AND THE UNITED STATES OF AMERICA; PROVIDING FOR THE ADOPTION OF APPLICATION AND PERNHT FEES FOR RESTAURANTS, GROCERY STORES, DAYCARE CENTERS, AND OTHER CERTA1N ESTABLISHMENTS; PROVIDING FOR THE ADOPTION OF A CONSUMER HEALTH PERNHT FEE SCHEDULE FOR FOOD AND FOOD ESTABLISHMENTS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. NO. 98-268 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING AND ADOPTING THE SCHEDULE OF FEES AS AUTHORIZED BY CHAPTER 34 AND CHAPTER 35 OF THE CODE OF ORDINANCES FOR THE CITY OF DENTON, TEXAS, FOR FILING APPLICATIONS FOR REVIEW, APPROVAL, GRANT OR ISSUANCE OF PLATS, PLANS, LICENSES, CERTIFICATES, VARIANCES OR DESIGNATIONS REQUIRED BY THE SUBDIVISION RULES AND REGULATIONS AND ZONING REGULATIONS OF THE CODE OF ORDINANCES; AMENDING SECTION 34-10 OF CHAPTER 34 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON AND CHAPTER 35 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON BY ADDING SECTION 35- 56, PROVIDING FOR THE EXEMPTION OF THE CITY OF DENTON AND THE POLITICAL SUBDIVISIONS AND AGENCIES OF THE STATE OF TEXAS AND THE UNITED STATES OF AMERICA FROM THE FEES OF CHAPTER 34 AND CHAPTER 35, CODE OF ORDINANCES, CITY OF DENTON, TEXAS; PROVIDING FOR REPEAL OF ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING A SEVERABILITY City of Denton City Council Minutes September 8, 1998 Page 5 CLAUSE; PROVIDING A SAV1NGS CLAUSE; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. 12. NO. 98-269 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING CHAPTER 28 "BUILDINGS AND BUILDING REGULATIONS" PROVIDING FOR CITY COUNCIL SETTING OF FEES BY ORDINANCE, BY AMENDING SECTION 28-28(3) PERMIT FEES; AMENDING SECTION 28-28(4) PLAN REVIEW FEES; AMENDING SECTION 28-28(7) RE1NSPECTIONS; AMENDING SECTION 28-28(9)A. AND B.(1) THROUGH (7) TABLE l-A, PERMIT FEES FOR NONRESIDENTIAL BUILDINGS AND ADDITIONS AND REPAIRS TO RESIDENTIAL BUILDINGS; AMENDING SECTION 28-28(10) TABLE l-B, PERMIT FEE SCHEDULE FOR NEW ONE- AND TWO-FAMILY DWELLINGS; AMENDING SECTION 28-121(1) - (12), ELECTRICAL INSPECTION FEES; AMENDING SECTIONS 28-210(F) AND (G), PLUMBING PERMIT FEE SCHEDULE; AMENDING SECTIONS 28-252(9) AND (10) TABLE l-A, MECHANICAL PERMIT FEES; AMENDING SECTION 28-297(3) SWIMMING POOL PERMIT FEES; PROVIDING FOR THE EXEMPTION OF THE CITY OF DENTON, POLITICAL SUBDIVISIONS AND AGENCIES OF THE STATE AND FEDERAL GOVERNMENT FROM ALL FEES OF CHAPTER 28 OF THE CODE OF ORDINANCES, CITY OF DENTON, TEXAS; PROVIDING FOR THE REPEAL OF ORDINANCE 83-129 ESTABLISHING CERTA1N FEES; PROVIDING FOR THE REPEAL OF ORDINANCE 90-161 PROVIDING FOR DEMOLITION FEES; PROVIDING FOR THE ADOPTION OF A FEE SCHEDULE FOR THE FILING OF APPLICATIONS, REVIEW, APPROVAL, GRANT OR ISSUANCE OF PERMITS, INSPECTIONS, LICENSES, CERTIFICATES, VARIANCES OR DESIGNATIONS REQUIRED BY THE ''BUILDINGS AND BUILDING REGULATIONS" AND "SIGNS AND ADVERTISING DEVICES", SET FORTH IN CHAPTERS 28 AND 33 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON; AMENDING CHAPTER 28, CODE OF ORDINANCES, CITY OF DENTON, TEXAS BY ADDING SECTION 28-32 PROVIDING FOR AN EXEMPTION FROM FEES FOR THE CITY OF DENTON AND POLITICAL SUBDIVISIONS AND AGENCIES OF THE STATE OF TEXAS AND THE UNITED STATES OF AMERICA; PROVIDING FOR THE REPEAL OF ALL ORDINANCES THAT CONFLICT HEREWITH; PROVIDING A SEVERABiLITY CLAUSE; PROVIDING A SAV1NGS CLAUSE; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. 13. The Council considered adoption of an ordinance of the City of Denton, Texas, approving the 1998 tax rolls; and providing an effective date. This item was pulled from consideration. 14. The Council considered adoption of an ordinance adopting the budget of the City of Denton, Texas for the fiscal year beginning October 1, 1998, and ending September 30, 1999; and providing an effective date. The following ordinance was considered: City of Denton City Council Minutes September 8, 1998 Page 6 NO. 98-270 AN ORDINANCE ADOPTING THE BUDGET OF THE CITY OF DENTON, TEXAS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 1998, AND ENDING SEPTEMBER 30, 1999; AND PROVIDING AN EFFECTIVE DATE. Beasley motioned, Durrance seconded to adopt the ordinance. On roll vote, Beasley "aye", Burroughs "aye", Cochran "aye", Durrance "aye", Kristoferson "aye", Young "aye", and Mayor Miller "aye". Motion carried unanimously. Following the completion of the Special Called Meeting, the Council convened into a Work Session. 1. The Council held a discussion and gave staff direction on the ordinance prepared by the legal consulting firm, Dahlstrom McDonald, for the proposed Capital Improvements Plan and Impact Fees for water and wastewater facilities. Jill Jordan, Director of Water/Wastewater, stated that there were several issues Council had to decide regarding this ordinance. The first issue was how much to charge -the maximum or some amount less than that. Staff was recommending charging the full 100%. The next issue was when would the charge be implemented - at platting, the building permit stage or at time of connection. Staff was recommending that the charge be implemented at the building permit stage. Another issue was appeals. Depending on the unique circumstances, a developer or homeowner might want to appeal the impact fee amount. Appeals could be heard by Council or staff The draft ordinance stated that appeals would be heard by Council. There were no exemptions to the fees included at this point in time. Affordable housing would be dealt with in a separate program. There was an issue of paying the impact fee out over time rather than in a lump sum. Currently there was no such provision in the ordinance. There was a provision for a $2,000 fine for violations of the ordinance. The last issue was an effective date of the ordinance. The ordinance was currently written to go into effect 14 days from the date of enactment. Council Member Young stated that he would like to see a payout provision added to the ordinance as it would provide relief to homeowners and allow individuals to build a home. Mayor Miller asked what would be a normal time period for such a payout. Council Member Kristoferson stated that she was reluctant to see a payout. When an individual received his mortgage, the impact fee amount would be included. A payout provision would place the City in the role of having to enforce the provisions if there was non-compliance. City Attorney Prouty stated that he did not know of any other fee ordinance that had a deferred payment provision. He did not know what a time period would be. The fee was low compared to the cost of the house. A possible payout time might be 24-48 months. Council Member Cochran stated that one of the difficulties ofa payout was that an individual would be paying interest on that amount. Over a 30 year mortgage that would greatly increase the amount. Ifa payout provision were specifically limited to a single-family to owner built homes, there might not be a City of Denton City Council Minutes September 8, 1998 Page 7 problem to enforce such a provision. He felt it was not unreasonable to allow a payout provision for citizens. Mayor Miller stated that the Council had five items to decide. - How much fee to charge -staff was recommending 100%. Council Member Burroughs felt that 100% would be too high. He suggested a stair step approach with 50%, 75%, and then 100% for implementation. City Attorney Prouty stated that the Council could set the rate at 50% but he had not researched the possibility of a gradual increase. Council might be able to amend the fee each year upward until the 100% was reached. City Manager Jez stated that the utility budget was based on an 80% recovery. Mayor Pro Tem Beasley stated that 100% recovery would allow $55 million of water/wastewater projects to be done and that was not even the full recovery for those projects. She was against not going to 100% as there was much work to do and the City needed the funds to do those. Jordan stated that this was just the first round of impact fees. There was a need to do fees for a collection and distribution system. The cost for those would be equally substantial. She did not want to create an unfair advantage for one set of developers over another. The key was what was the impact fee when a developer platted. With a different schedule, there would be a chance that a developer would be paying for two different sets of improvements but would be same dollar amount. Consensus of the Council was to set the fee at 100%. - When to charge the fee - staff recommendation was at the building permit stage. Consensus of the Council was to enact the fee at the time the building permit was issued. - Appeal process - staff recommendation was through Council. Consensus of Council was to follow staff recommendation. - When would the ordinance go into effect - if passed next week there would be a 14 day waiting period. City Attorney Prouty stated that because the ordinance had a penalty clause, the caption had to be published in the newspaper and would be effective 14 days from date of passage. Dave Hill, Director of Planning and Development, stated that Council could pass the ordinance and make a later effective date if desired. He stated that the developers were aware that the fee was coming and felt that if Council waited too long for an effective date, there would be a large rush to get plats through the Planning and Zoning Commission. City of Denton City Council Minutes September 8, 1998 Page 8 Consensus of the Council was to pass the ordinance on September 15th and have the effective date be 14 days later. - Payment plan Council discussed the pros and cons of allowing a payment plan for the fee. City Manager Jez suggested allowing staff to incorporate the issues already approved by Council and to research options for a payment plan such as what interest rate to charge in connection with a payment plan, the number of installments to allow, the cost to administer such a program, an estimate on how many houses would fall into such a category, and why no other cities had such a program. Council Member Burroughs asked how a payment plan would be enforced. City Attorney Prouty stated that a lien would have to be established on the property with a deferred payment pay-out. This would be established through a promissory note or deed of trust. Council Member Burroughs asked if it could be enforced through a disconnect of utility services. City Attorney Prouty stated that that was already included in the ordinance plus the provision of the $2,000 penalty clause. Mayor Miller stated that staff would incorporate the items already approved by Council and Council could debate the last issue of a payment plan at the next meeting. 2. The Council received a report, held a discussion, and gave staff direction regarding the establishment of an Affordable Housing Impact Fee Grant Program for Water/Wastewater Treatment Impact Fee reimbursement. City Attorney Prouty stated that the proposed resolution would provide some relief to non-profit corporations. It provided for an economic development grant program under Chapter 380 of the Local Government Code and would allow any non-profit corporation that constructed affordable housing to apply for a grant in an amount equal to the impact fee. It would not be limited to just impact fees and could apply for a grant for any purpose in conjunction with affordable housing. The developer would be contractually obligated to build and sell affordable housing within 15 months. The Council needed to decide if the grant should apply to single-family or multi-family housing. Currently the resolution was limited to single-family residences. Dave Hill, Director of Planning and Development, stated that Council had three questions to answer. One was whether the single-family standards met with Council approval. The second was whether to include multi-family to the standards. A third question dealt with whether or not to specify a 50 single family equivalent cap. Such a cap would cover any upcoming projects. Burroughs motioned, Kristoferson seconded to proceed with the non-profit single-family standards, include a provision for low-income multi-family elderly and disabled housing to the standards and retain the cap of 50 units. On roll vote, Beasley "aye", Burroughs "aye", Cochran "aye", Durrance City of Denton City Council Minutes September 8, 1998 Page 9 "aye", Kristoferson "aye", Young "aye", and Mayor Miller "aye". With no further business, the meeting was adjourned at 7:30 p.m. Motion carried unanimously. JACK MILLER, MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS