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Minutes February 23, 1999 CITY OF DENTON CITY COUNCIL MINUTES February 23, 1999 After determining that a quorum was present and convening in an open meeting, the City Council convened in a closed meeting on Tuesday, February 23, 1999 at 5:15 p.m. in the Council Work Session Room. PRESENT: Mayor Miller; Mayor Pro Tem Beasley; Council Members Burroughs, Cochran, Durrance, Kristoferson and Young. ABSENT: None 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. B. Consultation with Attorney – Under TEX. GOV’T. CODE Sec. 551.071 (1) and (2). Considered and consulted with the City’s attorneys, including outside legal counsel, concerning contemplated litigation to prevent the formation of, or certain action by, including annexation by Denton County Fresh Water Supply District No. 5 or any other Denton County Fresh Water Supply District, within the city limits or extraterritorial jurisdiction of the City of Denton, Texas, including, without limitation, the initiation of an injunction or declaratory judgement action by the City; or the intervention into pending litigation styled City of Frisco, Texas v. Denton County Fresh Water Supply District No. 5, Cause No. 366-185-99 in th the 366 Judicial District Court of Collin County, Texas; and receive advice on said contemplated and pending litigation and related matters from these attorneys where the Disciplinary Rules of Professional Conduct of the State Bar of Texas require the attorneys to give their advice in private. C. Deliberations Regarding Real Property – Under TEX. GOV’T. CODE Sec. 551.072. Considered and discussed the valuation and the possible sale, transfer, or other divestiture of real property pertaining to the City of Denton’s electric utility system, including, without limitation: the Gibbons Creek generation facility located in Grimes County, Texas; the Spencer generation facility located on Spencer Road in Denton, Denton County, Texas; the hydroelectric facilities located in Denton County, Texas; other component facilities of the City’s electric transmission and distribution system. The Council convened into a Work Session on Tuesday, January 26, 1999 at 6:00 p.m. in the Council Work Session Room. PRESENT: Mayor Miller; Mayor Pro Tem Beasley; Council Members Burroughs, Cochran, Durrance, Kristoferson and Young. ABSENT: None City of Denton City Council Minutes February 23, 1999 Page 2 1. The Council received a report and held a discussion regarding the results of the 1999- 2000 budget priority questionnaire with City Council. Jon Fortune, Director of Management and Budget, reviewed the results of the priority questionnaire as noted in the agenda materials. 2. The Council received a report, held a discussion and gave staff direction regarding the transfer of the Cable Television franchise. Richard Foster, Public Information Officer, stated that there had been a change in ownership of the cable company thus requiring a transfer of the franchise. Stricter penalties and higher standards were included in the new agreement with the transfer of the franchise. Consensus of the Council was to proceed with the first reading of the transfer. 3. The Council received a report, held a discussion and gave staff direction regarding the Introduction, Population Forecasts, and Growth Management Strategy sections of the Draft Comprehensive Plan. Dave Hill, Director of Planning and Development, reviewed the schedule for presentation of the plan as noted in the agenda materials. He detailed the beginning sections of the document. After Council discussed the various sections of the Plan, the consensus of the Council was to continue as presented. Following the completion of the Work Session the Council convened into a Special Called Session. 1. The Council considered approval of a resolution nominating members of the Appraisal Review Board of the Denton Central Appraisal District; and declaring an effective date. Diana Ortiz, Director of Fiscal Operations, stated that there was one vacancy on the Appraisal Review Board. Council Member Kristoferson stated that she had a person in mind for nomination. Beasley motioned, Young seconded to authorize Council Member Kristoferson to make a nomination to staff. On roll vote, Beasley “aye”, Burroughs “aye”, Cochran “aye”, Durrance “aye”, Kristoferson “aye”, Young “aye”, and Mayor Miller “aye”. Motion carried unanimously. The following resolution was considered: NO. R99-008 A RESOLUTION NOMINATING MEMBERS OF THE APPRAISAL REVIEW BOARD OF THE DENTON CENTRAL APPRAISAL DISTRICT; AND DECLARING AN EFFECTIVE DATE. City of Denton City Council Minutes February 23, 1999 Page 3 2. The Council considered adoption of an ordinance fixing and determining the general service rate to be charged for sales of natural gas to residential and commercial customers in the City of Denton, Denton County, Texas; providing for the manner in which such rate may be charged; approving the commercial rates for public school gas services; providing for weather normalization clause; providing for a schedule of service charges; providing for a main line extension rate; providing an Open Meetings clause; and providing an effective date clause. Herb Prouty, City Attorney, presented an updated ordinance for Council consideration. Council Member Burroughs stated that the 3% rate increase was acceptable and that the service charge would be added. He did not intend to have the residential ratepayers bear more of the burden. Of the increase of the rates, there was to be a shift from the residential to the commercial customers. His thought was to reduce the residential by 25% of the increase and shift it to the commercial customers. City Attorney Prouty stated that the ordinance was based on a 63% allocation. Council Member Burroughs stated that if the service fee charge was shared equally, it would artificially reduce the impact on the residential customers. If equally, it would be 50-50%. City Attorney Prouty stated that if a 63%-37% allocation were done, there would be an approximate equal distribution of the increase. The following ordinance was considered: NO. 99-059 AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CUSTOMERS IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHARGED; APPROVING THE COMMERCIAL RATES FOR PUBLIC SCHOOL GAS SERVICES; PROVIDING FOR WEATHER NORMALIZATION CLAUSE; PROVIDING FOR A SCHEDULE OF SERVICE CHARGES; PROVIDING FOR A MAIN LINE EXTENSION RATE; PROVIDING AN OPEN MEETINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE CLAUSE. Burroughs motioned, Young seconded to approve the ordinance with a revision in the amount indicated for 3% increase in gas sale rates, with equal impact on residential and commercial customers. Council Member Cochran stated that the 3% was included in the 35% as part of a total package based on the amount of total income and not a rate. He felt this was a change in the agreement from the last meeting. He also felt that there was an advantage written into the rate schedule that favored residential customers and his intention was to keep the same portion as was currently in the rate ordinance. City of Denton City Council Minutes February 23, 1999 Page 4 City Attorney Prouty stated that according to the consultant, the current allocation between residential and commercial before the increase was a 63-37% split. If that percentage were followed, there would be a 50-50% impact. There would be a bit more on residential customers but would be fairly close. The charge could be spread equally between the two classes. Council Member Burroughs stated that he wanted to shift 13% of the increase to commercial from residential. That would be an artificial shift in the increase and reduced the residential charge by 20%. Mayor Pro Tem Beasley stated that she was against the motion because she could not find any justification for giving the company an increase in the gas costs. Council Member Durrance stated that he was also against motion as the residential customer would take the blunt of the increase. He also felt that there was a lack of information from the Company regarding the necessity of such an increase. On roll vote, Beasley “nay”, Burroughs “aye”, Cochran “nay”, Durrance “nay”, Kristoferson “aye”, Young “aye”, and Mayor Miller “aye”. Motion carried with a 4-3 vote. 3. New Business There were no items of New Business suggested by Council Members for future agendas. 4. There was no continuation of Closed Meeting under Sections 551-071–551.085 of the Texas Open Meetings Act. 5. Council took the following official action on Closed Meeting items held under Section 551- 071–551.085 of the Texas Open Meetings Act. Durrance motioned, Burroughs seconded to proceed with litigation as advised by the City Attorney. On roll vote, Beasley “aye”, Burroughs “aye”, Cochran “aye”, Durrance “aye”, Kristoferson “aye”, Young “aye”, and Mayor Miller “aye”. Motion carried unanimously. With no further business, the meeting was adjourned at 11:35 p.m. ________________________________ JACK MILLER, MAYOR CITY OF DENTON, TEXAS ________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS