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Minutes Feburary 16, 1999CITY OF DENTON CITY COUNCIL MINUTES February 16, 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 16, 1999 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, Durrance, Kristoferson and Young. ABSENT: None 1. The Council considered the following in 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. Regular Meeting of the City of Denton City Council on Tuesday, February 16, 1999 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. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance to the U.S. and Texas flags. CITIZEN REPORTS 2. Report from Dessie Goodson regarding perjury, responsibility and the truth. Ms. Goodson stated that in her recent trial she felt there had been perjury with some of the Mayor’s statements. She took exception to some of the statements that were said during the trial. She also had a problem with some of her utility bills from prior years. CONSENT AGENDA Durrance motioned, Cochran seconded to approve the Consent Agenda and the accompanying ordinances. On roll vote, Beasley “aye”, Burroughs “aye”, Cochran “aye”, Durrance “aye”, Kristoferson “aye”, Young “aye”, and Mayor Miller “aye”. Motion carried unanimously. 3 NO. 99-037 AN ORDINANCE AUTHORIZING THE EXECUTION OF A CHANGE ORDER #5 TO A LEASE AGREEMENT FOR PC’S, MONITORS AND PERIPHERAL EQUIPMENT BETWEEN THE CITY OF DENTON AND IBM CORPORATION; PROVIDING FOR AN INCREASE IN THE QUANTITY OF ITEMS; ADDENDUM TO THE LEASE; AND AN INCREASE IN THE ANNUAL LEASE PAYMENT AMOUNT; BASED ON City of Denton City Council Minutes February 16, 1999 Page 2 EQUIPMENT SUPPLIED BY NTCS, INC., A QUALIFIED INFORMATION SERVICES VENDOR (QISV) FOR THE GENERAL SERVICES COMMISSION OF THE STATE OF TEXAS; AND PROVIDING AN EFFECTIVE DATE. (LEASE #2045 TO IBM CORPORATION IN THE AMOUNT OF $1,229,588.26 + CHANGE ORDER #5 IN THE AMOUNT OF $29,811.) 4. NO. 99-038 AN ORDINANCE AUTHORIZING THE EXECUTION OF A CHANGE ORDER #6 TO A LEASE AGREEMENT FOR PC’S, MONITORS AND PERIPHERAL EQUIPMENT BETWEEN THE CITY OF DENTON AND IBM CORPORATION; PROVIDING FOR AN INCREASE IN THE QUANTITY OF ITEMS AND AN INCREASE IN THE ANNUAL LEASE PAYMENT AMOUNT; BASED ON EQUIPMENT SUPPLIED BY A QUALIFIED INFORMATION SERVICES VENDOR (QISV) FOR THE GENERAL SERVICES COMMISSION OF THE STATE OF TEXAS; AND PROVIDING AN EFFECTIVE DATE. (LEASE #2045 TO IBM CORPORATION IN THE AMOUNT OF $1,259,399.26 + CHANGE ORDER #6 IN THE AMOUNT OF $2,305,848.) 5. NO. 99-039 AN ORDINANCE AUTHORIZING THE EXECUTION OF A CHANGE ORDER #1 TO A LEASE AGREEMENT FOR PC’S, MONITORS AND PERIPHERAL EQUIPMENT BETWEEN THE CITY OF DENTON AND IBM CORPORATION; PROVIDING FOR AN EXTENSION OF TIME AND AN INCREASE IN THE LEASE PAYMENTS; AND PROVIDING AN EFFECTIVE DATE. (LEASE TO IBM CORPORATION IN THE AMOUNT OF $2,453,922 + CHANGE ORDER #1 IN THE AMOUNT OF $58,392.) 6. NO. 99-040 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING AN ANNUAL CONTRACT FOR MOWING SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. (BID #2331–ANNUAL CODE ENFORCEMENT MOWING CONTRACT TO S.A.S. CONTRACTORS IN THE ESTIMATED ANNUAL EXPENDITURE OF $23,000.) 7. NO. 99-041 AN ORDINANCE APPROVING A PRICE AGREEMENT AUTHORIZING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF MATERIALS OR EQUIPMENT WHICH ARE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE. (PRICE AGREEMENT #2342 TO NATIONAL DRAEGER, INC. FOR SELF-CONTAINED BREATHING APPARATUS WITH AN ESTIMATED EXPENDITURE OF $180,000.) City of Denton City Council Minutes February 16, 1999 Page 3 8. NO. 99-042 AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF HARDWARE MAINTENANCE AND SOFTWARE MAINTENANCE WHICH ARE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE. (PO #92855–INTEGRATED COMPUTER SYSTEMS, INC. (ICS) IN THE AMOUNT OF $281,105.89.) 9. NO. 99-043 AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR THE THIRD ANNUAL LEASE PURCHASE PAYMENT FOR AN IBM 9221-191 MAINFRAME COMPUTER/PROCESSOR AS BID AND AWARDED BY THE STATE OF TEXAS GENERAL SERVICES COMMISSION; AND PROVIDING FOR AN EFFECTIVE DATE. (PO #92720 TO IBM CORPORATION IN THE AMOUNT OF $102,771.10) 10. NO. 99-044 AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, SERVICES OR SUPPLIES NECESSARY FOR THE UPGRADE OF PUBLIC SAFETY’S WIRING CLOSETS AS AWARDED BY THE STATE OF TEXAS GENERAL SERVICES COMMISSION THROUGH QUALIFIED INFORMATION SERVICES VENDOR CATALOGUE (QISV); PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. (PO #92721 TO NTCS, INC. IN THE AMOUNT OF $27,932.) 11. NO. 99-045 AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, SUPPLIES OR SERVICES NECESSARY FOR INSTALLATION OF AN INTERAGENCY INTERNET NETWORK AS AWARDED BUY THE STATE OF TEXAS GENERAL SERVICES COMMISSION THROUGH QUALIFIED INFORMATION SERVICES VENDOR (QISV) CATALOGUE; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. (PO #92722 TO NTCS, INC. IN THE AMOUNT OF $59,374.) 12. NO. 99-046 AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, SUPPLIES OR SERVICES NECESSARY FOR INSTALLATION OF A REMOTE ACCESS SERVER AND SOFTWARE AS AWARDED BUY THE STATE OF TEXAS GENERAL SERVICES COMMISSION THROUGH QUALIFIED INFORMATION SERVICES VENDOR (QISV) CATALOGUE; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE City of Denton City Council Minutes February 16, 1999 Page 4 DATE. (PO #92725 TO NTCS, INC. IN THE AMOUNT OF $29,141.) 13. NO. 99-047 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF FLEET VEHICLES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. (BID #2310-A-FLEET VEHICLES REBID AWARDED AS LISTED IN THE TOTAL AMOUNT OF $129,317.60.) 14. NO. 99-048 AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF A TYPE 36 SINGLE FIBER SPLICER AS AWARDED BY THE STATE OF TEXAS GENERAL SERVICES COMMISSION; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. (PO #92859 TO FMS TECHNOLOGIES, INC. IN THE AMOUNT OF $27,100.) 15. NO. 99-049 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY FOR THE IMPOUNDMENT AND DISPOSITION OF DOGS AND CATS AND THE COLLECTION OF FEES PURSUANT TO THE PROVISIONS OF SAID AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. 16. NO. 99-050 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF DENTON AND THE CITY OF LAKE DALLAS FOR THE IMPOUNDMENT AND DISPOSITION OF DOGS AND CATS AND THE COLLECTION OF FEES PURSUANT TO THE PROVISIONS OF SAID AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. PUBLIC HEARINGS 17. The Council held a public hearing regarding the proposed annexation of a 52.49-acre tract located on the south side of Ryan Road, 150 feet east of Forestridge Road. (A-79) Mark Donaldson, Assistant Planning Director, stated the petition was to annex 52.49 acres in south Denton. The proposal was contiguous with the current city limits. The request also came with a zoning request for two zoned districts in the tract. 21.5 acres would be Single-Family 16 that were adjacent to Ryan Road. The second 31 acres would be Single-Family 10. The property already had an approved preliminary plat at the Planning and Zoning Commission meeting in December. The utilities that were already in the area would be utilized by the developer. This request was consistent with the Denton Development Plan and Growth Management Strategy. City of Denton City Council Minutes February 16, 1999 Page 5 The Mayor opened the public hearing. The following individuals spoke during the public hearing: Charles Stafford - favor Patty Clark - neutral Gary Drumb – favor Mike Cordell – opposition The Mayor closed the public hearing. ITEMS FOR INDIVIDUAL CONSIDERATION 18. The Council considered adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a professional services agreement with Huitt-Zollars, Inc. for architectural and engineering services pertaining to the design and construction of the City of Denton vehicle maintenance facility; authorizing the expenditure of funds therefore; and providing an effective date. Earl Crews, Director of Financial/Administrative Services, stated that the vehicle maintenance facility was no longer adequate to meet the city’s needs. This request asked the Council to approve an engineering services contract to provide for formal design of the facility, assistance during construction bids and oversight during construction of the facility. The following ordinance was considered: NO. 99-051 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH HUITT-ZOLLARS, INC. FOR ARCHITECTURAL AND ENGINEERING SERVICES PERTAINING TO THE DESIGN AND CONSTRUCTION OF THE CITY OF DENTON VEHICLE MAINTENANCE FACILITY; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE. Durrance motioned, Beasley seconded to adopt the ordinance. On roll vote, Beasley “aye”, Burroughs “aye”, Cochran “nay”, Durrance “aye”, Kristoferson “aye”, Young “nay”, and Mayor Miller “aye”. Motion carried with a 5-2 vote. 19. The Council considered adoption of an ordinance authorizing the Mayor to enter into an interlocal cooperation agreement with Denton County approving the previous filing of a joint grant application with the State of Texas for a victim notification system; approving the expenditure of $4,625.00 in matching funds by the City for enhancement of the $108,788.00 grant funds; and providing an effective date. City of Denton City Council Minutes February 16, 1999 Page 6 Captain Paul Abbott, Denton Police Department, stated that the Department was seeking approval of an interlocal cooperation agreement with Denton County. This request would approve the previous filing of a joint grant application with the State of Texas for a victim notification system. The following ordinance was considered: NO. 99-052 AN ORDINANCE AUTHORIZING THE MAYOR TO ENTER INTO AN INTERLOCAL COOPERATION AGREEMENT WITH DENTON COUNTY APPROVING THE PREVIOUS FILING OF A JOINT GRANT APPLICATION WITH THE STATE OF TEXAS FOR A VICTIM NOTIFICATION SYSTEM; APPROVING THE EXPENDITURE OF $4,625.00 IN MATCHING FUNDS BY THE CITY FOR ENHANCEMENT OF THE $108,788.00 GRANT FUNDS; AND PROVIDING AN EFFECTIVE DATE. Young motioned, Kristoferson 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. 20. The Council considered adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the Mayor or City Manager to execute the attached service agreement between the City of Denton, Texas and Interactive Systems, LLC for equipment, software and support from previously budgeted grant and matching funds and providing for an effective date. Captain Paul Abbott, Denton Police Department, stated that this would be a service agreement for equipment, software and support for the grant. The following ordinance was considered: NO. 99-054 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE THE ATTACHED SERVICE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND INTERACTIVE SYSTEMS, LLC FOR EQUIPMENT, SOFTWARE AND SUPPORT FROM PREVIOUSLY BUDGETED GRANT AND MATCHING FUNDS AND PROVIDING FOR AN EFFECTIVE DATE. Beasley 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. 21. The Council considered adoption of an ordinance authorizing the City Manager to execute an airport lease agreement between the City of Denton and Douglas C. Weyer to lease certain City of Denton City Council Minutes February 16, 1999 Page 7 premises of the Municipal Airport for the purpose of constructing and maintaining office and hanger facilities thereon; and providing an effective date. Mark Nelson, Airport Manager, stated that this agreement would be for 30 years for the construction and maintenance of office and hanger facilities at the Denton Municipal Airport. Council Member Kristoferson asked what type of signs would be allowed at this site. Nelson stated that the Airport staff and Building Official would address that when the final plans were submitted. Council Member Kristoferson requested that staff standardize the sign issues into a policy so as not to be arbitrary. The following ordinance was considered: NO. 99-054 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND DOUGLAS C. WEYER TO LEASE CERTAIN PREMISES OF THE MUNICIPAL AIRPORT FOR THE PURPOSE OF CONSTRUCTING AND MAINTAINING OFFICE AND HANGER FACILITIES THEREON; AND PROVIDING AN EFFECTIVE DATE. Burroughs motioned, Durrance seconded to adopt the ordinance. On roll vote, Beasley “aye”, Burroughs “aye”, Cochran “nay”, Durrance “aye”, Kristoferson “aye”, Young “nay”, and Mayor Miller “aye”. Motion carried with a 5-2 vote. 22. The Council considered adoption of an ordinance authorizing the City Manager to execute an airport lease agreement between the City of Denton and Wayne Allen Construction Company, Inc. to lease certain premises of the Municipal Airport for the purpose of constructing and maintaining office and hangar facilities thereon; and providing an effective date. Mark Nelson, Airport Manager, stated that Mr. Allen would be building a customized hanger for potential clients. The following ordinance was considered: NO. 99-055 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND WAYNE ALLEN CONSTRUCTION COMPANY, INC. TO LEASE CERTAIN PREMISES OF THE MUNICIPAL AIRPORT FOR THE PURPOSE OF CONSTRUCTING AND MAINTAINING OFFICE AND HANGAR FACILITIES THEREON; AND PROVIDING AN EFFECTIVE DATE. City of Denton City Council Minutes February 16, 1999 Page 8 Beasley motioned, Burroughs seconded to adopt the ordinance with Option II. On roll vote, Beasley “aye”, Burroughs “aye”, Cochran “nay”, Durrance “aye”, Kristoferson “aye”, Young “aye”, and Mayor Miller “aye”. Motion carried with a 6-1 vote. 23. The Council considered adoption of an ordinance ordering an election to be held in the City of Denton, Texas, on May 1, 1999, and if a runoff election is required, on May 29, 1999, for the purpose of electing council members to Places 1, 2, 3 and 4 of the City Council of the City of Denton, Texas; designating voting places and appointing election officials; providing for bilingual notice of the election; ordering that an electronic voting system be used; making additional provisions for the conduct thereof; providing an Open Meetings clause; and providing for an effective date. The following ordinance was considered: NO. 99-056 AN ORDINANCE ORDERING AN ELECTION TO BE HELD IN THE CITY OF DENTON, TEXAS, ON MAY 1, 1999, AND IF A RUNOFF ELECTION IS REQUIRED, ON MAY 29, 1999, FOR THE PURPOSE OF ELECTING COUNCIL MEMBERS TO PLACES 1, 2, 3 AND 4 OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS; DESIGNATING VOTING PLACES AND APPOINTING ELECTION OFFICIALS; PROVIDING FOR BILINGUAL NOTICE OF THE ELECTION; ORDERING THAT AN ELECTRONIC VOTING SYSTEM BE USED; MAKING ADDITIONAL PROVISIONS FOR THE CONDUCT THEREOF; PROVIDING AN OPEN MEETINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Young motioned, Kristoferson 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. 24. The Council considered adoption of an ordinance ordering an election to be held on May 1, 1999 in conjunction with the regular city council election for the purpose of submitting to the registered voters of Denton, Texas amendments to the Denton City Charter regarding sale and alienation of portions of public utilities; creating new utilities; qualifications of candidates for elections; procedures for holding elections; authorizing public utility franchise charges; setting procedure for adopting a budget; deleting certain portions of Article VIII “Revenue and Taxation”; correcting references to applicable laws; removal of the Board of Adjustment, Public Utilities Board, and Parks and Recreation Board from the City Charter and expanding these boards to seven members; providing notice of claim procedures in compliance with State law; eliminating Planning Commission recommendations on sales and purchases of property and on utility capital improvements; providing that the Charter shall be gender neutral; designating the place of holding such an election; naming the officers thereof; prescribing the form of ballot; providing for notice; providing for publication of notice of this election; providing a severability clause; providing an open meetings clause; and providing an effective date. City of Denton City Council Minutes February 16, 1999 Page 9 City Attorney Prouty stated that there were two alternatives for the Council to consider that were not included in the ordinance. The first was an amendment regarding the option to eliminate the supermajority vote now needed for annexation and have a majority only vote. The second amendment was to remove the Planning and Zoning Commission from the Charter and reenact it in ordinance form similar to what was recommended for Public Utilities Board, the Board of Adjustment and the Parks and Recreation Board. Staff was recommending that this amendment not be done. Mayor Pro Tem Beasley stated that state law had superseded what was in the Charter as it had not been updated for 20 years. These changes would not be changing the essential elements of the Charter. They were administrative elements only. Council Member Durrance stated that he was in favor of including the annexation issue with the Charter amendments. He would not be in favor of including the planning issue. Council Member Cochran stated that the proposal dealing with the annexation issue would change the annexation policy from a four-fifths majority vote to a simple majority vote. If there were no examples of a problem that they were trying to correct, he felt there was no need to have a change in the process. He would consider the amendment if there had been a problem in the past but as there had not been any, he was not in favor of the change. Council Member Burroughs stated that he was in favor of amendments 1-14 and alternate #1. He felt there were currently many protections and limits on annexation proceedings. The following ordinance was considered: NO. 99-057 AN ORDINANCE ORDERING AN ELECTION TO BE HELD ON MAY 1, 1999 IN CONJUNCTION WITH THE REGULAR CITY COUNCIL ELECTION FOR THE PURPOSE OF SUBMITTING TO THE REGISTERED VOTERS OF DENTON, TEXAS AMENDMENTS TO THE DENTON CITY CHARTER REGARDING SALE AND ALIENATION OF PORTIONS OF PUBLIC UTILITIES; CREATING NEW UTILITIES; QUALIFICATIONS OF CANDIDATES FOR ELECTIONS; PROCEDURES FOR HOLDING ELECTIONS; AUTHORIZING PUBLIC UTILITY FRANCHISE CHARGES; SETTING PROCEDURE FOR ADOPTING A BUDGET; DELETING CERTAIN PORTIONS OF ARTICLE VIII “REVENUE AND TAXATION”; CORRECTING REFERENCES TO APPLICABLE LAWS; REMOVAL OF THE BOARD OF ADJUSTMENT, PUBLIC UTILITIES BOARD, AND PARKS AND RECREATION BOARD FROM THE CITY CHARTER AND EXPANDING THESE BOARDS TO SEVEN MEMBERS; PROVIDING NOTICE OF CLAIM PROCEDURES IN COMPLIANCE WITH STATE LAW; ELIMINATING PLANNING COMMISSION RECOMMENDATIONS ON SALES AND PURCHASES OF PROPERTY AND ON UTILITY CAPITAL IMPROVEMENTS; PROVIDING THAT THE CHARTER SHALL BE GENDER NEUTRAL; DESIGNATING THE PLACE OF HOLDING SUCH AN ELECTION; NAMING THE OFFICERS THEREOF; PRESCRIBING THE FORM OF BALLOT; PROVIDING FOR NOTICE; PROVIDING City of Denton City Council Minutes February 16, 1999 Page 10 FOR PUBLICATION OF NOTICE OF THIS ELECTION; PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN OPEN MEETINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Burroughs motioned, Beasley seconded to approve the ordinance with propositions 1-14. Beasley motioned, Durrance seconded to amend the motion to approve alternate #1. Mayor Pro Tem Beasley asked for comments from the Planning Department. Dave Hill, Director of Planning and Development, stated that since the adoption of the Charter in 1959 there had been many changes for annexations with stronger controls and requirements. Since 1990 had been no involuntary annexations in the City. Denton might be facing those types of issues of involuntary annexation in the future in regards to the Comprehensive Plan. There were few cities that required a supermajority vote for annexations. Council Member Cochran stated that he was in favor of what would be in the best interest of community. If six members of the Council would not vote for an annexation case, there probably was a problem with the annexation. On roll vote on the amendment, Beasley “aye”, Burroughs “aye”, Cochran “nay”, Durrance “aye”, Kristoferson “aye”, Young “aye”, and Mayor Miller “aye”. Motion carried with a 6-1 vote. On roll vote of the main motion as amended, Beasley “aye”, Burroughs “aye”, Cochran “aye”, Durrance “aye”, Kristoferson “aye”, Young “aye”, and Mayor Miller “aye”. Motion carried unanimously. 25. The Council considered adoption of an ordinance of the City of Denton, Texas suspending the proposed rate change set forth in the Statement of Intent and Application filed on January 15, 1999 by Texas Utilities Electric Company for time-of-use rate options pertaining to the sale of electric service to its residential, commercial, and industrial customers in the City of Denton, Texas, for ninety days beyond the intended effective date; adopting declarations and findings in the preamble; providing the reasons therefor; providing for a severability clause; and providing for an effective date. Mike Coplan, Assistant City Attorney, stated that Texas Utilities had requested a proposed rate change for its time-of-use rate options pertaining to the sale of electric service. Staff was asking Council to not decline or disapprove or approve the request but to defer to the judgement of the Public Utilities Commission. It was felt that this was the best place for such a determination to be made. The following ordinance was considered: NO. 99-058 AN ORDINANCE OF THE CITY OF DENTON, TEXAS SUSPENDING THE PROPOSED RATE CHANGE SET FORTH IN THE STATEMENT OF INTENT AND City of Denton City Council Minutes February 16, 1999 Page 11 APPLICATION FILED ON JANUARY 15, 1999 BY TEXAS UTILITIES ELECTRIC COMPANY FOR TIME-OF-USE RATE OPTIONS PERTAINING TO THE SALE OF ELECTRIC SERVICE TO ITS RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL CUSTOMERS IN THE CITY OF DENTON, TEXAS, FOR NINETY DAYS BEYOND THE INTENDED EFFECTIVE DATE; ADOPTING DECLARATIONS AND FINDINGS IN THE PREAMBLE; PROVIDING THE REASONS THEREFOR; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Beasley motioned, Burroughs 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. 26. The Council considered approval of a resolution accepting the resignation of Bob Coplen and appointing Howard Martin as the City’s representative to serve as a member of the Board of Directors of the Upper Trinity Regional Water District; and providing an effective date. The following resolution was considered: NO. R99-007 A RESOLUTION ACCEPTING THE RESIGNATION OF BOB COPLEN AND APPOINTING HOWARD MARTIN AS THE CITY’S REPRESENTATIVE TO SERVE AS A MEMBER OF THE BOARD OF DIRECTORS OF THE UPPER TRINITY REGIONAL WATER DISTRICT; AND PROVIDING AN EFFECTIVE DATE. Kristoferson motioned, Burroughs seconded to approve the resolution. On roll vote, Beasley “aye”, Burroughs “aye”, Durrance “aye”, Kristoferson “aye”, Young “aye”, and Mayor Miller “aye”. Motion carried unanimously. 27. Miscellaneous matters from the City Manager. City Manager Jez did not have any items for Council. 28. New Business There were no items of New Business for future agendas. 29. There was no continuation of Closed Meeting under Sections 551-071–551.085 of the Texas Open Meetings Act. 30. There was no official action on Closed Meeting items held under Section 551-071– 551.085 of the Texas Open Meetings Act. Following the completion of the Regular Meeting, the Council convened into a Work Session. City of Denton City Council Minutes February 16, 1999 Page 12 1. The Council received a report, held a discussion and gave staff direction regarding Lone Star Gas Company’s request to increase rates in the City of Denton service area. City Attorney Prouty stated that as a result of Council direction given at a prior work session, Lone Star Gas and Diversified were present to answer questions regarding the proposed rate increase by Lone Star Gas Company. Dan Lawton, Diversified, stated that Lone Star Gas was requesting a $476,000 annual rate increase from Denton’s customers. They were recommending no rate increase as proposed by Lone Star Gas. He stated that the issue of ALG versus ELG would not really affect what the company would receive. It would still collect those dollars, it was merely a question on how fast it would be collected. He felt 1997 was an unusual year for testing. The Council needed to decide how much increase the City wanted to give the company and then decide the rate structure. Mayor Miller felt the proposed customer charge in the rate design was regressive to small users. Lawton replied that it was regressive as every customer would have the same charge. The customer charge was the cost to send out the bill, the cost of postage, reading the meter, etc. Kirk King, Lone Star Gas, felt the rate increase was reasonable. He reviewed the back-up materials he had submitted for the agenda regarding the proposed rate increase. City Attorney Prouty stated that Council needed to give direction regarding how much increase, if any, to grant, where that increase would be allocated either for the residential or commercial customers, whether or not to adopt COSA or PICA standards and allocation for the monthly charge for lower end customers. Council Member Durrance suggested no rate increase at this time and to not participate in COSA or PICA and as a result there would be no need for a discussion of an allocation of rate increase. If Lone Star appealed this proposal, it could go to the Railroad Commission. Council Member Young recommended a 3% increase. Council Member Cochran agreed with Council Member Durrance’s suggestion of no increase. Council Member Kristoferson stated that the figures indicated that Denton was receiving good service for a low rate. She felt in the long term with possible litigation with the Railroad Commission that Denton should pay its fair share of expenses. Council Member Burroughs stated that he did not have a problem with COSA and some type of rate increase. He would agree with the 3% increase and suggested a rate structure of $5.50 for residential customers and $12 for commercial customers as a basis for the rate increase. Council did not have to accept COSA if it went up and Council could approve it each year. Mayor Miller stated that he favored a 3% rate increase with $5.50 for residential customers and City of Denton City Council Minutes February 16, 1999 Page 13 $10 for commercial customers for the monthly service fee. He was not comfortable with COSA. Mayor Pro Tem Beasley felt that no increase was needed at this point in time and that it should be brought back in another year for study. After a lengthy discussion, consensus of the Council was to favor a 3% increase in revenue from the system with $10 on commercial customers and $5.50 on residential customers for the monthly service fee with no COSA or PICA. The revenue service charges would be a 75/25% split. The consultant fee would be collected over a six-month period on the customer’s bills. With no further business, the meeting was adjourned at 11:20 p.m. ______________________________ JACK MILLER, MAYOR CITY OF DENTON, TEXAS _______________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS