Minutes December 14, 1999CITY OF DENTON CITY COUNCIL MINUTES
December 14, 1999
After determining that a quorum was present and convening in an Open Meeting, the City
Council convened in a Closed Meeting of the City of Denton City Council on Tuesday,
December 14, 1999 at 5:15 p.m. in the City of Denton Council Work Session Room at City Hall.
PRESENT: Mayor Miller; Mayor Pro Tem Beasley; Council Members Burroughs, Cochran,
Durrance, Kristoferson, and Young.
ABSENT: None
The Council considered the following in Closed Meeting:
A. Deliberations Regarding Certain Public Power Utilities Competitive Matters ---
Under TEX. GOV’T. CODE Section 551.086. Consultation With Attorney --- Under TEX.
GOV’T. CODE Section 551.071.
1. Considered, discussed, and deliberated approval of an Interruptible
Natural Gas Transportation Agreement pertaining to natural gas requirements to be furnished to
the Denton Municipal Electric Spencer Steam Power Plant to be used furnished to the Denton
Municipal Electric Spencer Power Plant to be used for the production of electric energy.
Consultation with the City’s attorneys concerning the Agreement, and related legal issues and
requirements, where to discuss such issues and matters in a public meeting would conflict with
the attorney’s duties and responsibilities under the Texas Disciplinary Rules of Professional
Conduct.
99-475
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE
CITY MANAGER TO EXECUTE AN INTERRUPTIBLE NATURAL GAS
TRANSPORTATION AGREEMENT BY AND BETWEEN THE CITY Of
DENTON AND TXU LONE STAR PIPELINE, A DIVISION OF TXU GAS
COMPANY, PERTAINING TO NATURAL GAS REQUIREMENTS
FURNISHED TO THE SPENCER STEAM POWER PLANT; AUTHORIZING
THE EXPENDIUTRE OF FUNDS THEREFOR; AND PROVIDING AN
EFFECTIVE DATE.
This matter was considered and approved in closed meeting as reported in the certified agenda
for that meeting.
B. Deliberations Regarding Certain Public Power Utilities Competitive Matters ---
Under TEX. GOV’T. CODE Section 551.086.
1. Considered, discussed, and deliberated, and received competitive
commercial, financial, and technical information from Denton Municipal Electric (“DME”) staff
concerning the updated DME financial model; the assumptions used in the development of the
model; including forecasting and planning strategies and options regarding the future operations
and position of DME in a competitive, deregulated, restructured electric marketplace. The
information presented would involve issues and projections respecting a number of possible
alternate electric competitive scenarios in which Denton might operate during the next twenty
years.
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December 14, 1999
Page 2
C. Deliberations Regarding Certain Public Power Utilities: Competitive Matters ---
Under TEX. GOV’T. CODE Section 551.086. Consultation With Attorney --- Under TEX.
GOV’T. CODE Section 551.071. Deliberations Concerning Real Property --- Under TEX.
GOV’T. CODE, Section 551.072.
1. Considered, discussed, and deliberated the valuation of and the possible
sale, transfer, assignment, 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 County, Texas; the two hydroelectric facilities located in Denton County, Texas; and
other components of the City’s electric generation assets. Conducted a consultation with the
City’s attorneys, in order to obtain the advice and recommendations of the City’s attorneys
concerning the above-referenced issues, where to discuss such issues and matters in a public
meeting would conflict with the attorneys’ duties and professional responsibilities to their client
under the Texas Disciplinary Rules of Professional Conduct.
Work Session of the City of Denton City Council on Tuesday, December 14, 1999 at 6:40 p.m.
in the Council Work Session Room in City Hall, 215 E. McKinney Street.
PRESENT: Mayor Miller; Mayor Pro Tem Beasley; Council Members Cochran, Durrance,
Kristoferson, and Young.
ABSENT: Council Member Burroughs
1. The Council received a report, held a discussion and gave staff direction regarding
Diversified Utility Consultants, Inc.’s audits of TXU Electric and Gas, including discussion of
the Senate Bill 7 methodology of calculating franchise fees.
Herb Prouty, City Attorney, introduced Dan Bohannan from Diversified Utility Consultants.
Bohannan stated his firm had been retained by the City to review franchise calculations. They
were to determine why there was a reduction in the 1998 franchise fee payment over the 1997
payment from TXU-Lone Star Gas. He stated that they reviewed the franchise fee calculations
for the period from 1982 to 1998 to determine if TXU was in compliance with the franchise fee
agreement. He stated their preliminary report showed that TXU-Lone Star Gas had underpaid its
franchise fees by $861,088 for the years 1982 to 1998.
Steve Taylor, 2213 Stonegate, Area Manager of TXU Electric and Gas, stated that the franchise
payment had been properly calculated and paid in accordance with the franchise agreement.
Prouty stated that staff recommended meeting with TXU to discuss the audit findings and
include negotiations regarding the electric franchise. The Council agreed to this.
2. The Council received a report, held a discussion, and gave staff direction regarding the
draft interim development standards ordinance intended to apply policies of the comprehensive
plan to specified development applications.
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Dave Hill, Assistant City Manager of Development Services, stated that at the December 7
meeting, the Council agreed to discuss the interim ordinance at the work session on December
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December 14, 1999
Page 3
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14. The Planning and Zoning Commission agreed to postpone deliberations regarding the
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ordinance until December 15. He stated that until the Planning and Zoning Commission made
its recommendation, the Council could not take formal action on the ordinance.
Hill stated the moratorium ordinance was designed to be short-lived. The major concept of the
interim ordinance was to create base densities for residential development and allow limited
increases in density in proportion to the developer’s willingness to enhance the project. Two
types of submissions are proposed in the ordinance: 1) The Zoning Plan, which would require
the evaluation of neighboring areas and the impact of proposed zoning densities; and 2) The
Project Plan, which would address the construction and lot characteristics of the project and
allow evaluation of design quality.
Hill stated there were several issues that the Council might wish to address. He stated that
Council could consider expiration dates for the Zoning Plan and Project Plan. He also stated that
consideration should be given as to whether the Project Plan should be considered a zoning
versus an administrative approval. If considered a zoning approval, the Project Plan would
require P&Z and City Council review. If considered an administrative approval, the Project Plan
could be reviewed by Council only. He stated that Council should consider an exemption for PD
Concept Plans approved after May 1, 1997. This would allow recently approved PD’s to submit
Detailed Plans under the existing regulations.
The Council discussed the date for allowing exemptions and decided that any PD Concept Plans
approved prior to May 1, 1997 would require a zoning plan and a project plan. Anything
approved between May 1, 1997 and April 7, 1998 would require a concept plan and a project
plan. Anything approved after April 7, 1998 would require a detailed plan.
The Council discussed revisions to the draft ordinance and instructed staff to make the revisions
and allow the Planning and Zoning Commission to review their recommendations.
Council Member Burroughs returned to the meeting.
3. The Council received a report, held a discussion, and gave staff direction regarding an
ordinance of the City of Denton, Texas, amending and superceding in its entirety Ordinance No.
99-440 establishing a moratorium pending the adoption of interim standards for applying policies
of the adopted comprehensive plan to certain specified residential development applications prior
to adoption of a revised land development code; providing for exemptions.
Terry Morgan stated that the proposed ordinance would place moratoriums on the acceptance
and processing of preliminary plats, final plats, and building permits for residential
developments. It would also place a moratorium on an application for a detailed plan where a
development plan had been previously approved. He stated that there were only two
exemptions: a residential development application for property that received zoning approval on
or after April 7, 1998 and an application for final plat approval for single-family dwellings where
a preliminary plat had previously been approved.
The Council recommended keeping in place the ordinance that was passed last week.
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December 14, 1999
Page 4
4. The Council received a report, held a discussions, and gave staff direction regarding an
ordinance of the City of Denton, Texas establishing a moratorium pending the adoption of
interim standards for applying policies of the adopted comprehensive plan to certain specified
commercial development applications prior to adoption of a revised land development code;
providing for exemptions.
Terry Morgan stated that this would place a moratorium on the acceptance and processing of
preliminary plats, final plats and building permits for commercial developments. The only
exemption was for plat and building permit applications for property that had received zoning
approval on or after April 7, 1998.
Mayor Pro Tem Beasley asked if the Council could go into executive session on this item.
Herb Prouty, City Attorney, stated they could under consultation with attorney. He stated he
would prepare written notice and then they could go into executive session.
The Council considered item #6.
6. The Council received a report, held a discussion, and gave staff direction regarding an
annexation schedule for the Spencer Plant site (A-98, DME Generation Plant).
Consensus of the Council was to proceed with the schedule.
5. The Council received a report, held a discussion and gave staff direction regarding
implementation of the Fry Street Small Area Plan, specifically the creation of a Fry Street
Zoning Overlay District.
Dedra Ragland, Small Area Planning Manager, stated that council had directed staff to identify
different scenarios of off-street parking requirements. Ragland stated that the council had two
options. Option 1 involved initiating a zoning amendment process to create a Fry Street Zoning
Overlay District to eliminate all off-street parking requirements and establish building densities
and minimum area and height requirements; determine the location and consolidation of solid
waste containers; and to amend the sign regulations for the District. Option 2 involved initiating
a zoning amendment process to create a Fry Street Zoning Overlay District to reduce all off-
street parking requirements to 1:400; determine the location and consolidation of solid waste
containers; and to amend the sign regulations for District. She stated that staff recommended
Option 1.
Consensus of the council was to go with the 1:400 off-street parking requirements.
The council returned to Item #4.
The Council convened into executive session at 11:50 p.m.
The Council convened into regular session at 12:20 a.m.
Terry Morgan stated this moratorium ordinance would apply to commercial development
applications. This ordinance would place a moratorium on the acceptance and processing of
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December 14, 1999
Page 5
preliminary plats, final plats and building permits for commercial developments. The only
exemption was for plat and building permit applications for property that had received zoning
approval on or after April 7, 1998. If the ordinance was adopted, staff would need to be given
direction to develop interim regulations for commercial developments.
Hill stated that staff needed direction on what to do with applications already in the development
review process. He stated staff was under an obligation to advise council when new applications
came in to advise if the land use proposed was consistent with the plan. He asked Council if a
moratorium was needed to allow staff the time to devise the proper strategy to bring these to
Council.
Following further discussion, Council advised staff to proceed with drafting an interim
ordinance.
7. The Council received a report, held a discussion and gave staff direction regarding a
Planned Development sunsetting ordinance, which sets time limits on all steps and processes in
planned development districts.
Herb Prouty, City Attorney, stated that this would place a time limit on all steps and processes in
the planned development districts. The concept was that the various stages of the PDs–concept
plan, development plan, and detailed plan–all be subjected to time limits.
Council Member Kristoferson requested postponement of this item.
Consensus of the Council was to postpone this item.
8. New Business
This item provides a section for Council Members to suggest items for future agendas.
Following the completion of the Work Session, the Council convened into a Special Called
Session to consider the following:
1. The Council discussed and took action on the reconsideration of the December 7, 1999
City Council decision related to Annexation Case # A-96, Silver Dome at Cooper Creek, the first
reading of an ordinance voluntarily annexing approximately 24 acres of land located at the
southwest corner of Silver Dome and Cooper Creek in the extraterritorial jurisdiction of the City
of Denton, Texas.
Young motioned, Burroughs seconded to consider reconsideration of the December 7, 1999 City
Council decision related to Annexation Case #A-96. 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 an ordinance of the City of Denton, Texas,
reconsidering the City Council vote of December 7, 1999, on Annexation Case #A-96, pertaining
to the voluntary annexation of approximately 24 acres of land at the southwest corner of Silver
Dome and Cooper Creek in the extraterritorial jurisdiction of the City of Denton, Texas, to
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December 14, 1999
Page 6
approve a service plan for the annexed property, to provide a severability clause and to provide
for an effective date. First reading of ordinance. (A-96, Silver Dome at Cooper Creek)
The following ordinance was considered:
(FIRST READING)
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ANNEXING 23.89
ACRES OF LAND CONTIGUOUS AND ADJACENT TO THE CITY OF
DENTON, TEXAS, LOCATED AT THE SOUTHWEST CORNER OF SILVER
DOME AND COOPER CREEK IN THE COUNTY OF DENTON, TEXAS,
APPROVING A SERVICE PLAN FOR THE ANNEXED PROPERTY,
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE. (A-96)
Young motioned, Burroughs seconded to approve the ordinance on first reading. On roll vote,
Beasley “aye”, Burroughs “aye”, Cochran “aye”, Durrance “aye”, Kristoferson “aye”, Young
“aye”, and Mayor Miller “aye”. Motion carried unanimously.
3. Consider approval of an ordinance of the City of Denton, Texas, amending and
superceding in its entirety Ordinance No. 99-440 establishing a moratorium pending the adoption
of interim standards for applying policies of the adopted comprehensive plan to certain specified
residential development applications prior to adoption of a revised land development code;
providing for exemptions.
Terry Morgan stated that this ordinance would supercede the ordinance approved last week
The following ordinance was considered:
99-473
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING AND
SUPERCEDING IN ITS ENTIRETY ORDINANCE NO. 99-440
ESTABLISHING A MORATORIUM PENDING THE ADOPTION OF
INTERIM STANDARDS FOR APPLYING POLICIES OF THE ADOPTED
COMPREHENSIVE PLAN TO CERTAIN SPECIFIED RESIDENTIAL
DEVELOPMENT APPLICATIONS PRIOR TO ADOPTION OF A REVISED
LAND DEVELOPMENT CODE; PROVIDING FOR EXEMPTIONS;
PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE
DATE.
Beasley motioned, Cochran seconded to approve the ordinance. On roll vote, Beasley “aye”,
Burroughs “aye”, Cochran “aye”, Durrance “aye”, Kristoferson “aye”, Young “nay”, and Mayor
Miller “aye”. Motion carried 6-1.
The following individuals spoke regarding the item:
Paul Spain, 700 Lakeview Blvd. Denton, spoke in opposition
Gene Price, 725 Chisolm Trail, Denton, spoke in opposition
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December 14, 1999
Page 7
The following individuals submitted comment cards:
Dallas Paulsen, 9532 E. Riggs Road, Sunlakes, Arizona – support
Jonathan Vinson, 1445 Ross Avenue, Suite 3200, Dallas – opposition
David Huffines, 8222 Douglas Avenue, #660, Dallas – opposition
4. The Council considered approval of an ordinance of the City of Denton, Texas
establishing a moratorium pending the adoption of interim standards for applying policies of the
adopted comprehensive plan to certain specified commercial development applications prior to
adoption of a revised land development code; providing for exemptions.
The following ordinance was considered:
99-474
AN ORDINANCE OF THE CITY OF DENTON, TEXAS ESTABLISHING A
MORATORIUM PENDING THE ADOPTION OF INTERIM STANDARDS
FOR APPLYING POLICIES OF THE ADOPTED COMPREHENSIVE PLAN
TO CERTAIN SPECIFIED COMMERCIAL DEVELOPMENT
APPLICATIONS PRIOR TO ADOPTION OF A REVISED LAND
DEVELOPMENT CODE; PROVIDING FOR EXEMPTIONS;PROVIDING
FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
Durrance motioned, Cochran seconded to approve the ordinance. On roll vote, Beasley “aye”,
Burroughs “aye”, Cochran “aye”, Durrance “aye”, Kristoferson “aye”, Young “nay”, and Mayor
Miller “nay”. Motion carried 5-2.
The meeting was adjourned at 1:47 a.m.
____________________________________
JACK MILLER, MAYOR
CITY OF DENTON, TEXAS
____________________________________
JANE RICHARDSON
ASSISTANT CITY SECRETARY
CITY OF DENTON, TEXAS