Minutes February 17, 2004CITY OF DENTON CITY COUNCIL M1NUTES
February 17, 2004
After determining that a quorum was present, the City Council of the City of Denton, Texas
convened in a Work Session on Tuesday, February 17, 2004 at 4:00 p.m. in the Council Work
Session Room at City Hall.
PRESENT:
Mayor Brock; Mayor Pro Tem Burroughs; Council Members Kamp, McNeill,
Montgomery, Redmon and Thomson.
ABSENT: None
Item 3 was considered.
3. The Council received a report, held a discussion and give staff direction regarding the
annual audit.
Terry Kyle, Deloitte and Touche, presented the details regarding the year-end audit. The audit
was conducted in accordance with auditing standards generally accepted in the United States and
the standards applicable to financial audits contained in Government Auditing Standards. The
audit did not find any material weaknesses in internal controls. He stated that the audit was clean
with no problems noted. He had reviewed all of the information on the audit in detail with the
Council Audit Committee.
Council returned to the regular agenda order.
1. The Council received a report, held a discussion and gave staff direction regarding
Denton Municipal Electric's (DME' s) status as a non opt-in entity in retail electric deregulation.
Sharon Mays, Director of Electric Utilities, presented details on DME's status as a non-opt-in
entity in retail electric deregulation. Options included: (1) no change - remain the sole provider
of transmission, distribution and energy to all retail customers within DME service territory; (2)
Opt-in - Open DME service territory to retail competition for energy sales; provide only
transmission and distribution service. That would require customers to purchase energy from
other regional energy providers; provide both transmission and distribution service and sell
energy in competition with other retail energy providers; or (3) sell the entire electric utility. A
decision to opt-in would require a minimum of two years to implement and may not be reversed.
The lowest cost, least risk option for Denton citizens was for DME to remain an opt-out entity.
Opting in added costs to the DME transmission and distribution rate that all electric customers in
Denton must pay, regardless of what company they purchased their energy from. Under either
opt-in scenario, there was a risk that there would not be sufficient electric system revenue to
cover contractual obligations to TMPA. General opt-in issues included increased
noncompetitive transmission and distribution costs for Denton customers; exposure to cash flow
problems and other ERCOT software errors or upgrades; provision of provider of last resort
service; loss of ability to communicate directly with citizens who change energy providers.
Rates with DME in an opt-out rate would be 9.6 cents per KWH. The opt-in rate initially was
10.1 to 10.8 cents per kwh after some period with lower rates available from other retail energy
providers. Council would need to consider carefully how the policy guidelines and desired
outcomes it developed would affect DME's ability to maintain competitive rates, DME's quality
of service and the impact of DME rates on economic development in Denton.
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February 17, 2004
Page 2
Council discussed having the Mayor write an article in the Denton Record-Chronicle relative to
the opt-in/opt-out issue and finding alternative ways to communicate with customers
2. The Council received a report, held a discussion and gave staff direction regarding
approval of a residential renewable electric rate schedule RG.
Glenn Fisher, Assistant Director of Electric Utilities, stated that by choosing the residential
renewable electric rate, customers would be supporting cleaner renewable energy sources in the
ERCOT power grid. The rate would be available for residential customers with expansion to the
three phase residential and small commercial sectors in early 2005. Wind generated energy
would be used when available and when it was not, conventional methods would be used.
Consensus of the Council was to proceed with rate proposal.
4. Staff responded for requests for clarification of consent agenda items listed on the
consent agenda for February 17, 2004.
Following the completion of the Work Session, the City Council convened in a Closed Meeting
to consider the items listed below under the Closed Meeting section of this agenda.
1. The Council considered the following in Closed Meeting:
Consultation with the City Attorney - Under TEXAS GOVERNMENT CODE
Section 551.071.
Discussed status of litigation styled Ugwuh v. City of Denton, Cause No.
2002-41462-362 currently pending in the 362nd District Court of Denton
County, Texas.
Considered and discussed status of litigation styled Ortegren, et al. v. City
of Denton, Cause No. 2002-30205-211, currently pending in the 211th
District Court of Denton County, Texas.
Deliberations regarding economic development negotiations - Under TEXAS
GOVERNMENT CODE Section 551.087 and Consultation with the City
Attorney- Under TEXAS GOVERNMENT CODE Section 551.071.
Deliberated and discussed commercial or financial information received
from a business prospect and offers of financial or other incentives to the
business prospect for the purposes of economic development negotiations
with Fastenal Company, a Minnesota Corporation, regarding the
construction of a facility to house regional headquarters, manufacturing,
and distribution operations to be located generally near the intersection of
Airport Road and Corbin Road within the City of Denton. Also, receipt of
legal advice from the City Attorney on matters in which his professional
responsibility to the City Council requires private legal consultation.
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February 17, 2004
Page 3
Regular Meeting of the City of Denton City Council on Tuesday, February 17, 2004 at 6:30 p.m.
in the Council Chambers at City Hall.
1. PLEDGE OF ALLEGIANCE
The Council and members of the audience recited the Pledge of Allegiance to the U. S. and
Texas flags.
2. PROCLAMATIONS/PRESENTATIONS
A. Proclamations/Awards
There were no proclamations/awards presented at this meeting.
B. Recognition of staff accomplishments
City Manager Conduff presented staff accomplishments to the Council.
3. CITIZENS REPORTS
A. The Council received citizen reports from the following:
1. David Wieland regarding a proposed apartment development for Denton.
Mr. Wieland stated he was proposing a development on McKinney Street that would require
approval for tax credit units. He stated that as the city was over the state average for tax credit
units, he would need council support to receive the credits. He felt that there was still a need for
such a development. He had talked with the DISD and they felt the proposal would not
negatively impact the ISD.
2. Petrina Washington regarding responsible and responsive government.
Ms. Washington expressed concern regarding the manner of appointments to the Denton
Housing Authority. She understood that the Mayor was the individual to make those
appointments due to the way the Authority was set up in the legislation.
4. CONSENT AGENDA
Council Member McNeill requested that Item F be pulled for separate consideration.
Thomson motioned, Kamp seconded to approve the Consent Agenda and accompanying
ordinances and resolutions with the exception of Item F. On roll vote, Burroughs "aye", Kamp
"aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock
"aye". Motion carried unanimously.
Council considered Item F.
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February 17, 2004
Page 4
Council Member McNeill expressed concerns about the lack of wording in the ordinance as to
how the permit process would affect local based businesses. He suggested a Legal review to
determine if such an exception could be allowed. If so, he would recommend that it be added to
the ordinance and if not, pass the ordinance as presented.
Mayor Pro Tem Burroughs stated that at this time, no local business would qualify. He felt that
this type of exception might attract such a business to Denton and he was not sure if there was a
public need or necessity to have that kind of business located here.
Mayor Brock raised a concern of favoritism.
Montgomery motioned. McNeill seconded to adopt the ordinance subject to a review in one year.
On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye",
Thomson "aye" and Mayor Brock "aye". Motion carried unanimously.
2004-037 - An ordinance of the City Council of the City of Denton, Texas
authorizing the City Manager to execute a professional services agreement with
Wolfe, Tidwell & McCoy, LLP, for professional legal services relating to
litigation styled Ugwuh v. City of Denton, Cause No. 2002-41462-362 currently
pending in the 362nd District Court of Denton County; authorizing the expenditure
of funds therefor; and providing an effective date.
2004-038 - An ordinance authorizing the City Manager to execute change order
three to the contract between the City of Denton and Huitt-Zollars Inc.; providing
for the expenditure of funds therefore; and providing an effective date (Ordinance
No. 2001-375; PSA 2685 - Professional Services Agreement for Design of Solid
Waste Facilities awarded to Huitt-Zollars, Inc. in the amount of $202,900, Change
Orders One and Two in the amount of $85,200, and Change Order Three in the
amount of $38,300 for a total amount of $326,400).
2004-039 - An ordinance awarding a contract for the purchase of a CASE 590
loader/backhoe as awarded by the State of Texas Building and Procurement
Commission; providing for the expenditure of funds therefor; and providing an
effective date (File 3137 -Loader/Backhoe for Street Department awarded to
Equipment Support Services in the amount of $60,935.24).
2004-040 - An ordinance of the City of Denton, Texas authorizing the City
Manager to execute an agreement for professional legal services with the law firm
of Booth, Ahrens & Werkenthin, P.C., a Texas professional corporation for legal
services pertaining to numerous listed water and wastewater issues; regulatory
activities; and other related matters affecting the interests of Denton, Texas;
authorizing the expenditure of funds therefor; providing for retroactive approval
of the agreement; and providing an effective date.
2004-041 - An ordinance of the City of Denton, Texas authorizing the City
Manager to execute an agreement for Professional Legal Services with the Law
Offices of Jim Boyle, PLLC. for professional legal and lobbying services related
th
to interim matters preceding the 79 Regular Texas Legislative Session pertaining
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February 17, 2004
Page 5
to the City of Denton/Denton Municipal Electric; authorizing the expenditure of
funds therefor; providing for retroactive approval thereof; and providing an
effective date.
2004-042 - An ordinance of the City Council of the City of Denton, Texas
providing for the addition of the Collection and Transportation Services Permit
(Schedule SWP) to the schedule of rates for solid waste service contained in
Ordinance No. 2003-351; providing for re-titling, replacement and amendment of
{}24-69 of the City of Denton Code of Ordinances; providing for the amendment
of {}24-70 of the City of Denton Code of Ordinances; providing for a repealer;
providing for a severability clause; and providing an effective date.
R2004-009 - A resolution of the City of Denton, Texas, authorizing the
submission of a grant application to the Criminal Justice Division of the Office of
the Governor, State of Texas, requesting funding for the Denton Teen Court
Program for Juveniles; and providing an effective date.
2004-043 - An ordinance of the City of Denton, Texas approving and authorizing
the Mayor to execute an Interlocal Ambulance Agreement between the City of
Denton and Denton County for Ambulance Services; and declaring an effective
date.
2004-044 - An ordinance of the City of Denton, Texas approving and authorizing
the Mayor to execute an Interlocal Fire Protection Agreement between the City of
Denton and Denton County for Fire Protection Services; and declaring an
effective date.
Approved an exaction variance of Section 35.20.2(L.2.) of the Code of
Ordinances concerning perimeter paving. The 0.197-acre parcel was located on
the southwesterly corner of Margie Street and McCormick Street. The property
was located in a Downtown Residential 2 (DR-2) zoning district. A single-family
residence existed and multifamily was proposed. The Planning and Zoning
Commission recommended approval of the partial variance (7-0). (V03-0021)
2004-045 - An ordinance by the City of Denton abandoning and vacating a
portion of street right-of-way to the City of Denton, Texas recorded in Clerk's File
No. 2003-R0018777 of the Real Property Records of Denton County, Texas,
being part of the H.H. Haygood Survey, Abstract No. 517; and providing an
effective date. (Country Club Village, Phase l-A, Partial Right-of-Way
Abandonment)
2004-046 - An ordinance ordering an election to be held in the City of Denton,
Texas, on May 15, 2004, and, if a runoff election is required, on June 19, 2004,
for the purpose of electing Council Members to Places 5 and 6 and electing a
Mayor to Place 7 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
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February 17, 2004
Page 6
provisions for the conduct thereof, providing an open meetings clause, and
providing for an effective date.
5. PUBLIC HEARINGS
A. The Council held the first of two public hearings to consider the voluntary
annexation and service plan for approximately 80.3 acres of land generally located north of
Pockrus Page Road, west of Swisher Road, and south of Edwards Road in the southeastern
section of the City of Denton Extraterritorial Jurisdiction (ETJ). (,,103-0002, Village of Carmel
Annexation)
Kelly Carpenter, Director of Planning and Development, stated that applicant had withdrawn
44.87 acres from the request. She presented the details of the proposal.
The Mayor opened the public hearing.
No one spoke during the public hearing.
The Mayor closed the public hearing.
No action was necessary at this time on this item.
B. The Council held the first of two public hearings to consider the voluntary
annexation and service plan for approximately 19.51 acres of land generally located north of
Pockrus Page Road, east of Mayhill Road, and south of Edwards Road in the southeastern
section of the City of Denton Extraterritorial Jurisdiction (ETJ). (A03-0003, Flowers Baking
Company Annexation)
Kelly Carpenter, Director of Planning and Development, presented the details of the proposal.
No development was proposed at this time.
The Mayor opened the public hearing.
No one spoke during the public hearing.
The Mayor closed the public hearing.
No action was necessary at this time on this item.
C. 1. The Council held a public hearing and considered adoption of an
ordinance amending Sub-Chapters 3 (Procedures), 16 (Subdivisions), 17 (Environmentally
Sensitive Areas), and 22 (Gas Well Drilling and Production) of the Development Code
associated with gas well drilling and production. (SI03-0024, Gas' l/Veil Amendments')
2. The Council considered adoption of an ordinance amending the
Development Review Fee Schedule to add fees for Watershed Protection Permits, gas well
inspections, and tree mitigation associated with gas well development. (SI04-0001, Fee
Schedule Amendments)
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February 17, 2004
Page 7
Larry Reichhart, Assistant Director of Planning and Development, stated that criteria had been
developed to safeguard the environment and allow gas wells in the flood plain. He reviewed the
process that was involved in determining the proposals. There were four public hearings held
regarding the proposed amendments and a number of work sessions.
Mayor Brock asked Ken Banks, Water Resource Program Manager, for a response on the
safeguards proposed.
Banks stated that a number of options had been considered in regards to the potential
environmental impacts. One main issue was the production of a mud pit that was an open pit
used to mix mud materials used in the drilling operation. The pits were open and there was a
potential for materials to leak out of the pit. Standards were added to make sure all material
levels would be lower than dangerous levels. A buffer would be in place for protection and
outside the floodway. The proposed ordinance established a series of standards and inspections
that would minimize the risk of this activity.
Council discussion included: · Number of inspections
· Enforcement provisions
· Recent spill in Denton and possible contamination of the adjacent soil
· Discussion on public input and amount of that input
The Mayor opened the public hearing.
The following individuals spoke during the public hearing:
Bob Cates, 4226 I35 North, Denton, 76207 - favor
Julie Smith, 532 W. Windsor, Denton, 76207 - opposed
Peggy LaPont, 1900 Highland Park Circle, Denton, 76205 - opposed
Susan Apple, 8000 Woodcreek Circle, Argyle, 76226 - opposed
A Comment Card was received from Patrice Lyke, 1109 Egan, Denton, 76201 in opposition.
The Mayor closed the public hearing.
Council discussed the current specific use permit protections versus the new regulations and the
differences between the two.
Thomson motioned, Mayor seconded to reopen the public hearing to a hire consultant to provide
an opinion on the protection aspects of the ordinance.
Burroughs offered a friendly amendment to eliminate the outside consultant and schedule the
item for the March 2nd agenda for consideration. Council Member Thomson and Mayor Brock
agreed with the friendly amendment. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye",
Montgomery "aye", Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried
unanimously.
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February 17, 2004
Page 8
D. The Council held a public hearing and considered adoption of an ordinance
regarding the rezoning of approximately 6.6 acres from Neighborhood Residential 2 (NR-2)
zoning district to Neighborhood Residential 4 (NR-4) zoning district. The property was located
approximately 350 feet south of Paisley Street, between Audra Lane and Mack Drive. Applicant
proposed single-family uses. The Planning and Zoning Commission recommended approval (6-
1). [Super majority vote required for approval.] (Z03-0030, Laurel Oaks DevelopmenO
Mayor Brock indicated that the supermajority vote was no longer required as some opposition
had been withdrawn.
Kelly Carpenter, Director of Planning and Development, presented the details of the proposal
and discussed the removal of some of the opposition resulting in less than 20% opposition to the
proposal.
The Mayor opened the public hearing.
The following individuals spoke during the public hearing:
Karen Mitchell, Mitchell Planning Group - favor
Eric Janssen, 413 Fox Creek Court, Denton, 76209 - opposed
The Mayor closed the public hearing.
Council discussion included: · Was this reasonable zoning?
· Was this a tactical procedure to cut out opposition for future zoning?
· Concern regarding the entire parcel - was this done as a zoning creep?
The following ordinance was considered:
NO. 2004-047
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A
ZONING CHANGE FROM NEIGHBORHOOD RESIDENTIAL-2 (NR-2) ZONING
DISTRICT CLASSIFICATION AND USE DESIGNATION TO NEIGHBORHOOD
RESIDENTIAL-4 (NR-4) ZONING DISTRICT CLASSIFICATION AND USE
DESIGNATION FOR APPROXIMATELY 6.6 ACRES OF LAND LOCATED
APPROXIMATELY 350 FEET SOUTH OF PAISLEY STREET, BETWEEN AUDRA
LANE AND MACK DRIVE IN THE CITY OF DENTON, DENTON COUNTY,
TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF
$2,000.00 FOR VIOLATIONS THEREOF, A SEVERABILITY CLAUSE AND AN
EFFECTIVE DATE. (Z03-0030)
Burroughs motioned, Thomson seconded to adopt the ordinance. On roll vote, Burroughs "aye",
Kamp "aye", McNeill "aye", Montgomery "nay", Redmon "aye", Thomson "aye" and Mayor
Brock "nay". Motion carried with a 5-2 vote.
City of Denton City Council Minutes
February 17, 2004
Page 9
6. ITEMS FOR INDIVIDUAL CONSIDERATION
A. The Council considered approval of a resolution of the City of Denton, Texas
calling a public hearing to consider establishing a Reinvestment Zone VII for Fastenal Company;
and declaring an effective date.
Linda Ratliff, Director of Economic Development, stated that this resolution would formally call
for a public hearing on the reinvestment zone for Fastenal.
The following resolution was considered:
NO. R2004-010
A RESOLUTION OF THE CITY OF DENTON, TEXAS CALLING A PUBLIC
HEARING TO CONSIDER ESTABLISHING A REINVESTMENT ZONE VII FOR
FASTENAL COMPANY; AND DECLARING AN EFFECTIVE DATE.
Burroughs motioned, Montgomery seconded to approve the resolution. On roll vote, Burroughs
"aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and
Mayor Brock "aye". Motion carried unanimously.
B. The Council considered appointments to the Council Ethics Committee.
The Council nominated Council Members Kamp and Thomson, Mayor Brock and Ex-Officio
Member Charldean Newell to the Council Ethics Committee.
McNeill motioned, Montgomery seconded to approve the nominations. On roll vote, Burroughs
"aye", Kamp "aye", McNeill "aye", Montgomery "aye", Redmon "aye", Thomson "aye" and
Mayor Brock "aye". Motion carried unanimously.
C. The Council considered nominations/appointments to the City's Boards and
Commissions.
No nominations were made at this meeting.
D. The Council considered the appointment of an ad hoc Council Appointee
Performance Review Committee.
Council nominated Council Members McNeill, Montgomery and Thomson as members of the
Committee. On roll vote, Burroughs "aye", Kamp "aye", McNeill "aye", Montgomery "aye",
Redmon "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously.
E. New Business
The following items of New Business were suggested by Council Members for future agendas:
1. Council Member Redmon asked to have the NRMU 12 zoning along McKinney
Street studied.
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February 17, 2004
Page 10
2. Council Member Redmon asked about the role of the City in the Denton Housing
Authority and how best to publicize that role.
3. Council Member McNeill asked for a report on Carroll Blvd in terms of how the
contract was developed regarding the construction-whether only one block at a time would be
done instead of large sections at one time.
4. Mayor Pro Tem Burroughs asked that an advertising sign on Teasley Lane be
checked for compliance with the sign ordinance.
5. Council Member Thomson asked staff to investigate "quiet zones" at railroad
crossings that would designate areas as quiet zones and install alternative protective crossing
protection.
6. Council Member Montgomery asked that someone contact the contractor for U.S.
77 to fill in the trench on Sherman Drive.
Items from the City Manager
1. Notification of upcoming meetings and/or conferences
2. Clarification of items on the agenda
City Manager Conduff did not have any items for Council.
G. There was no continuation of Closed Meeting under Sections 551.071-551.086 of
the Texas Open Meetings Act.
H. There was no official action on Closed Meeting Item(s) under Sections 551.071-
551.086 of the Texas Open Meetings Act.
With no further business, the meeting was adjourned at 8:35 p.m.
EUL1NEBROCK
MAYOR
CITY OFDENTON, TEXAS
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS