Minutes May 23, 2000CITY OF DENTON CITY COUNCIL MINUTES
May 23, 2000
After determining that a quorum was present and convening in an Open Meeting, the City
Council convened in a Closed Meeting on Tuesday, May 23, 2000 at 5:15 p.m. in the City of
Denton Council Work Session Room.
PRESENT: Mayor Brock; Mayor Pro Tem Beasley; Council Members Burroughs, Cochran,
Durrance, Kristoferson and Young.
ABSENT: None
1. Closed Meeting:
A. Deliberations Regarding Certain Public Power Utilities: Competitive Matters ---
Under TEX. GOV’T. CODE Section 551.086.** Deliberations Concerning Real
Property --- Under TEX. GOV’T. CODE Section 551.072.
(1) Received information from Staff, discussed, deliberated, considered, and
provided Staff with direction respecting 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.
B. 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) Received information from Staff respecting competitive electric
certification and regulatory issues in pending proceedings, and issues
relating to Denton Municipal Electric (“DME”) regulatory strategy;
discussed, deliberated, considered, and provided Staff with direction on
such issues. 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.
C. Deliberations Regarding Real Property – Under TEX. GOV’T. CODE Section
551.072.
(1) Considered real property acquisition including real property value for U.S.
Highway 77 (North Elm Street) from U.S. Highway 380 (University
Drive) northward to Interstate Highway 35, in the City of Denton, Texas.
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May 23, 2000
Page 2
Work Session of the City of Denton City Council on May 23, 2000 at 6:00 p.m. in the Work
Session Room at City Hall.
PRESENT: Mayor Brock; Mayor Pro Tem Beasley; Council Members Burroughs, Cochran,
Durrance, Kristoferson and Young.
ABSENT: None
1. The Council received a presentation from Diversified Utility Consultants, Inc. regarding
Electric Utility Rate Design.
Dan Lawton, Diversified Utility Consultants, Inc., reviewed the details of the rate design study as
presented in the agenda materials. Items to consider when designing a utility rate included
determining how the City would charge for the services, what the competitors were charging,
and what the residential customers were like.
2. The Council received a report, held a discussion, and gave staff direction regarding the
third in a series of reports prepared in response to the Teasley Lane Corridor Traffic Study. (The
first two Council discussions held regarding this topic took place on February 8, 2000 and April
11, 2000.)
Danny Cummings, C & P Engineering, reviewed the revised information from the study as noted
in the agenda materials. Suggestions included permanent count stations along the Teasley Lane
corridor and cost estimates for the various sections of right-of-way acquisition.
Jerry Clark, Director of Engineering and Transportation, reviewed the details of the meeting staff
had with the property owners and developers within the Teasley Lane Corridor Traffic Study
Area. He narrated a video showing traffic congestion in various locations of the City.
Dave Hill, Assistant City Manager for Development Services, reviewed proposed conclusions to
the issues relative to the impacts of new development on the Teasley Lane Corridor. Those
conclusions included the development of a funding strategy to expedite the widening of Teasley
Lane from two to six lanes; the development of a funding strategy to ensure that roadways
feeding into Teasley Lane were of adequate capacity to handle projected travel demand;
preparing an amendment to the Denton Mobility Plan-Roadway Component that would propose
adding a collector street connection to State School Road from Ranchman Street; considering an
adequate public facilities ordinance to establish transportation concurrency principles that would
better match roadway capacity to travel demand plus evaluating other measures such as
transportation impact fees as possible impact mitigation options; installing permanent traffic
counters at strategic locations throughout the Teasley Study Area to allow constant monitoring
and measurement of traffic volumes; implementing two phases of levels of service standards –
one for use during an interim period when roadway improvements had not reached the point of
full mobility plan capacity and an acceptable standard of level of service D once the full Mobility
Plan capacity was reached; and evaluating the central location of community activity centers
within the Teasley Lane area.
Herb Prouty, City Attorney, reviewed the vested rights statutes and how they would apply to an
adequate public facilities ordinance.
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May 23, 2000
Page 3
Consensus of the Council was to have the Legal Department continue to explore the legal
options in the area of vested rights as they applied to an adequate public facilities ordinance.
3. The Council received a report, held a discussion, and gave staff direction regarding the
proposed “Arena Site” located west of Sherman Dr. approximately 3,600’ north of Loop 288.
Dave Hill, Assistant City Manager for Development Services, stated that at the first public
hearing on this annexation, the developers had requested that the annexation be delayed and that
they have an opportunity to discuss their development proposal in detail at a work session
meeting.
Don Hill, representing the project, reviewed the basics of the proposal. The site would include a
conference center, single-family homes, golf course, horse arena and hotel. Additional
comments on the proposal were made by members of the development team.
Council discussed the various aspects of a County Development District as it dealt with the
proposal plus a possible amendment of the Denton Comprehensive Plan.
Consensus of the Council was to proceed with additional input regarding the legal aspects of the
proposal and return for Council consideration.
4. The Council received a report, held a discussion, and gave staff direction regarding the
proposed preparation and enactment of a Site Design Standards and Environmental Standards
Overlay Ordinance.
John Fregonese presented the details of the site design standards and environmental protection
and management standards that were proposed to replace the Interim Ordinances. The intention
was to adopt the Site Design and Environmental Protection and Management Standards as a set
of overlay regulations to operate in conjunction with existing regulations. The site design and
environmentally sensitive area standards, combined with adequate public facilities requirements,
would replace the interim ordinance currently in effect. Issues to consider were property owner
notification, applicability, process and procedure, and matching codes to relate to current zoning
districts.
Council discussed the various aspects of the standards including landscape and tree canopy
standards, single family design standards, and multi-family design standards,
5. The Council received a report, held a discussion, and gave staff direction regarding
proposed development of mineral rights located on the Denton Municipal Airport.
Mark Nelson, Airport Director, stated that Mitchell Energy Corporation had located a formation
of natural gas and believed that this formation was present under the southwestern part of Denton
County. They had requested that the City consider entering into an agreement to sell the natural
gas rights to Mitchell Energy. Preliminary research indicated that this would not violate any
local zoning restrictions, however, the drilling equipment might be a flight safety hazard for
approximately two weeks. Once that was completed, there would be no height restrictions at the
Airport. Mitchell Energy would be required to drill one well every 18 months until all five of the
proposed wells were drilled. Mitchell Energy had offered a one-time payment of $50 per acre
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May 23, 2000
Page 4
for the right to develop Airport mineral rights to be paid at the time each well was drilled. The
City would receive three-sixteenths of the royalties on the production of the wells. Over the 20-
year life of the wells, the City could see revenues between $1 million and $1.6 million. If it was
determined that it would be profitable for the overall operations of the Airport and City, staff
would begin formal negotiations on a long-term agreement.
Consensus of the Council was to continue research to explore safety issues for the Airport and
cost alternatives.
6. The Council received a report, held a discussion, and gave staff direction concerning the
placement of a 200-foot buoy protection barrier for the City of Denton’s raw water intake located
on Lake Lewisville.
Julie Smith, Environmental Compliance Manager, stated that the City had arranged with both the
Texas Natural Resources Conservation Commission and the U.S. Army Corps of Engineers to
enforce a 200-foot barrier around the City’s intake at Lake Lewisville. Because of unusually low
lake levels, this barrier would effectively close the cove to boat traffic.
Consensus of the Council was to proceed with the project.
7. The Council considered appointments to City Council committees.
Consensus of the Council was to look at the entire structure of the Council committees including
the enabling legislation for the committees, the number of members for each committee, etc.
The item would be placed on the next work session agenda for consideration.
8. The Council received a report, held a discussion, and gave staff direction regarding a
paperless agenda.
This item was not considered.
9. The Council received a report and held a discussion on the relocation of the County Line
Road Bridge to Fred Moore Park.
Howard Martin, Assistant City Manager for Utilities, stated that the County was not going to
close the road early as was stated per Jim Carter at Commissioners Court. A new bridge was
going to be installed in approximately 2001. Issues with residents along County Line Road and
the inconvenience that the extended road closure would cause were cited as the reasons that the
County would not be able to close the road early. One question was the suitability of this bridge
in the park. While there was consensus that there was a need for a bridge, there were some
comments from residents in the area that the proposed bridge would look out of place at the Fred
Moore Park location. The Parks Department had programmed $250,000 for Trails and Linkages
in the CIP for 2001, with part of those funds allocated for a path in Fred Moore Park. If desired,
some of the funds could be allocated for a new pedestrian bridge at Fred Moore Park.
Mayor Pro Tem Beasley suggested a neighborhood meeting to discuss what type of bridge area
residents would like in the park.
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May 23, 2000
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Martin stated that the Parks Department would assist in finding a more suitable location for the
County Line Bridge if a new bridge option was selected.
Council felt there was a need for a bridge in the area as soon as possible and a historic bridge
might be a problem at this time. Council asked staff to investigate the possibility of using CIP
funds for a new pedestrian bridge at Fred Moore Park.
10. The Council received a report, held a discussion, and gave staff direction concerning a
sales tax exemption sought by the Robson Development that would exempt state tax on all
tangible property used to construct the Robson wastewater treatment plant.
Howard Martin, Assistant City Manager for Utilities, stated that Robson was asking the City to
execute an Infrastructure Sales Tax Agreement in order to achieve the sales tax exemption on
plant equipment. Robson would agree to indemnify the City against all liabilities associated with
the City facilitating the sales tax exemption by acceptance of the purchased equipment prior to
installation and operation. It was the opinion of staff that the proposed sales tax exemption
proposed by Robson was lawful and represented an agreement that could be recommended with
minimal risk to the City if revised in form to include the comments provided in Exhibit II as
included in the agenda materials and subject to the Council’s consideration of all other relevant
political, administrative and/or fiscal issues.
Consensus of the Council was to proceed with the proposal.
Following the completion of the Work Session, the Council convened into a Special Called Session.
1. The Council held the second of two public hearings to consider the proposed involuntary
annexation of approximately 250 acres generally located west of Sherman Dr. approximately
3,600’ north of Loop 288 in the extraterritorial jurisdiction of the City of Denton, Texas. The
zoning at the time of the annexation would be Agricultural (A). (A-99, Sherman Road Arena
Site)
Doug Powell, Director of Planning and Development, stated that this was the second public
hearing on this issue. Staff recommended to proceed with the public hearing and the annexation.
The Mayor opened the public hearing.
The following individuals submitted Speaker Cards:
Robert Goodman, 1042 Bobcat, Sanger, 76266 – opposed.
Kay Williams Goodman, 1042 Bobcat, Sanger, 76266 – opposed
The Mayor closed the public hearing.
Consensus of the Council was to proceed with the annexation.
2. The Council considered a motion to authorize the holding of a City Council meeting
outside of City Hall.
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May 23, 2000
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Beasley motioned, Burroughs seconded to authorize the holding of a City Council meeting
outside of City Hall for a joint meeting with the Denton ISD. On roll vote, Beasley “aye”,
Burroughs “aye”, Durrance “aye”, Kristoferson “aye”, and Mayor Brock “aye”. Motion carried
unanimously.
With no further business, the meeting was adjourned at 12:20 p.m.
____________________________
EULINE BROCK, MAYOR
CITY OF DENTON, TEXAS
_________________________
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS