Minutes May 2, 2005
CITY OF DENTON CITY COUNCIL MINUTES
May 2, 2005
After determining that a quorum was present, the City Council convened in a Special Called
Meeting on Monday, May 2, 2005 at 11 :30 a.m. in the Council Work: Session Room.
PRESENT:
Mayor Brock:; Mayor Pro Tem McNeill; Council Members Kamp, Montgomery,
Mulroy, and Thomson.
ABSENT:
Council Member Redmon
1. The Council received a report, held a discussion, and gave staff direction regarding the
associated service impact due to the proposed staff reductions included in the five-year financial
forecast.
City Manager Conduff stated that department directors were present to either mak:e short
presentations to Council regarding the reductions in staff or would be available to answer
questions if Council did not wish to proceed with the presentations.
Mayor Pro Tem McNeill stated that he had ask:ed to have this item on an agenda. Citizens had
been raising questions regarding the providing of services after the reductions and it was
appropriate for Council to have back:ground information on what the reductions in staff meant in
terms of reduction in services. His responsibility was to set policy. It was not his place as a
council member to say k:eep "x" employee and not "y" employee, as that would be illegal per the
Charter. He did have concerns about the reductions and what that might do to service delivery.
He supported the technique but had ask:ed for the item for further explanation.
Council Member Mulroy stated that this was a complex issues that was not pleasant to do. There
would be some trial and error in the process, lrnowing that adjustments would have to be made.
Mayor Brock: stated a concern that certain visions, goals and priorities were set and that there
was a need to evaluate services in terms of those goals and visions. She felt it would be foolish
to move forward in one direction if services in that direction would be cut or eliminated.
Consensus of the Council was to have the department directors mak:e presentations relative to the
reductions.
City Manager Conduff indicated that the City Manager's office would be giving up 1 Y2 full-time
employees. One position would be the Administrative Assistant to the City Manager. Work:
from that employee would be shifted to a series of other people and would be a transparent issue
with regard to citizen impact. The second was a Y2 time secretarial position, which would have
some citizen impact. Currently the office was open from 7:30 a.m. - 5:30 p.m. for service before
and after regular business hours. With the reduction of this position, the office hours would
return to 8:00 a.m. - 5:00 p.m. This would not be a significant citizen impact. This was the
Manager's commitment to share the sacrifice to vacate positions.
Betty Williams, Director of Management and Public Information, stated that her department
would have a reduction of two full-time employees. The Council meeting would still have a live
broadcast and the community bulletin board would continue as well as all legal and adopted city
plans. The reduction would be felt in the videoing of community service programs, which could
City of Denton City Council Minutes
May 2, 2005
Page 2
be outsourced. The remaining staff would serve as back:up when needed. There would no longer
be local original programming. Two part-time associate producers would also be cut.
Council discussed the impact of less local programming and if any effect would be felt in the
area of tourism.
Williams indicated that current printed materials would remain but video footage for
commercials and still pictures of events would no longer be produced.
Carla Romine, Director of Human Resources, indicated that three full-time employees would be
cut from her department. One of the positions eliminated currently provided support for testing
with the Police and Fire Departments. Those duties would be shifted to the police and fire
departments for coordination. Some employee training would have to be reduced. They would
still be providing what was legally mandated but some training would be outsourced. The
department would be shifting duties and doing more with less and would have less flexibility in
re gards to time lines.
Council discussed the shifting of functions to the police and fire departments and associated
costs.
Romine indicated that there was the potential of increased costs in terms of overtime costs to
those departments.
Chief Chadwick: indicated that both the police and fire department were still trying to assess the
impact of the proposed changes. They would need to reassign staff functions to pick: up those
additional functions but as their departments were not affected by the cuts, they were willing to
tak:e on the extra duties.
Kathy DuBose, Assistant City Manager, stated that the Accounting Department would be
reducing two full-time employees. The first position was an accounts payable representative.
Reduction of this position could result in a longer time to process payments. The supervisor of
this position would tak:e on more responsibility to mak:e sure payments were made promptly.
The second position was a senior accountant position. This position had general fund
responsibilities dealing with fixed assets, and monthly sales tax and municipal court reports.
These functions would be absorbed in other departments.
Janet Fitzgerald, Director of Park:s and Recreation, stated that her department would be
eliminating a total of eleven full-time employees. In order to cover the recreation center hours, a
one-third equivalent position would be added for assisting with building attendant duties. All
park: mowing for class A and B park:s, medians and cemeteries would be contracted out. Mowing
for athletic fields, North Lak:es Park:, South Lak:es Park:, Denia Park: and rights-of-way would be
done in-house.
Council discussed how the mowing standards would be maintained with the reductions.
City of Denton City Council Minutes
May 2, 2005
Page 3
Fitzgerald indicated that they would be able to maintain current standards. The biggest impact
would be in the area of flexibility to respond to various customer service issues. Currently they
did a lot with customer service with people using the park:s and that contact would be reduced
with less flexibility to respond to customer requests.
Fitzgerald continued that the Leisure Services Department had been reorganized with one
position reclassified and that position responsibilities shifted. In terms of citywide programming,
there would be one position for preschools and one for physical fitness. Constant customer
contact would diminish and different people would be seen at different times in the centers.
Council Member Mulroy requested data on how Denton compared with other cities on spending
per capita for active versus passive park: expenses.
Diana Ortiz, Director of Fiscal Operations, stated that a half full-time equivalent position would
be reduced in Treasury. As Treasury and Tax work: together, there would be a reduction in the
hotel audits on the Treasury side and a reduction in customer service on the Tax side. Audits
would be done less frequently.
Linda Ratliff, Director of Economic Development, stated that the Main Street Mark:eting
Specialist position would be eliminated from her department. The Main Street Association
feared that the reduction of professional staff might negatively impact the quality of events
sponsored by Main Street. She had assured them that the Department would provide guidance
on how to sponsor events. The second position in her department to be eliminated was the
Economic Development Coordinator. That position provided research for developers and
provided some GIS work:. Other staff would be learning that technology and training. Some
reduction in response time to requests for service might be experienced. There would be
possible cut back:s on educational programs associated with the DISD and other area
organizations.
Bruce Henington, Director of Facilities Management, stated that one technical person and one
office person would be eliminated from his department. Those reductions would not affect
safety or health areas. The Project Manager would pick: up more of the paperwork: for internal
.
serVIces.
Kelly Carpenter, Director of Planning and Development, stated that five positions would be
eliminated from her area. Two of the five positions were currently vacant. Job functions would
be reassigned in order to meet all needs.
Eva Poole, Director of Libraries, stated that her department would be reducing three positions.
This would result in fewer programs for adults and children and one service desk: for everyone.
Patrons would be encouraged to use the self-check: machines and the automated system.
Mark: Nelson, Director of Airport and Transit Operations, stated that a half-time field service
work:er position would be eliminated from the Airport. Reduction of this position would result in
reduced inspection of pavement maintenance and less mowing at the Airport.
City of Denton City Council Minutes
May 2, 2005
Page 4
Council Member Mulroy requested a report back: through the summer on a monthly basis of
whether or not any problems were being experienced in the safety program and how those issues
might be addressed.
Jim Coulter, Director of Water/Wastewater, stated that the Street Department would be reducing
two full-time employees. The impact on the community would be that permanent repairs would
tak:e longer and temporary repairs would remain in place for longer periods of time.
Robin Ramsay, Municipal Judge, indicated that a % part-time assistant judge position would be
eliminated. This position had not been filled for the last several years and would be eliminated
from the budget.
City Manager Conduff stated that a half time position would be eliminated from the Internal
Audit position. That position was added about four years ago to help track: contracts for
compliance. Other staff members would absorb this function.
Ed Snyder, Interim City Attorney, stated that the Council's goal was to reduce the legal staff
from seven attorneys to five. One attorney position was being eliminated and one attorney had
recently resigned. Those reductions would result in the department reaching the Council's goal
sooner than expected. A half-time secretary position was also being reduced.
City Manager Conduff indicated that the above were all of the general fund positions that would
have an impact on external services. The remaining positions were internal service positions in
Reprographics, Materials Management, Fleet Services, and Technology Services. Citizens
would not be impacted by the reduction of employees in these areas. There would be some
significant outsourcing in some cases associated with these reductions with services being
outsourced similar to what currently was provided.
Mayor Pro Tem McNeill ask:ed of the 51.2 positions, how many were considered upper
management and how many not management.
Conduff replied that there were several professional positions targeted for elimination with 20%
of the reductions in the management area and 80% in the hourly area.
Council Member Thomson ask:ed how many actual employees would lose their jobs. What was
an estimate of the number of individuals who would not be able to transfer to a city-related to
job.
Romine stated that they were estimating that 10-12 employees would ultimately be cut.
2. The Council received a report, held a discussion and gave staff direction regarding the
City of Denton's self-funded work:ers' compensation and liability programs.
Scott Payne, Risk: Manager, stated that the City had had a self-funded program since at least
1995. The City was required by the Labor Code to provide coverage. Denton used a third party
administrator to process work:ers' compensation with a cost of $37,800. He presented
City of Denton City Council Minutes
May 2, 2005
Page 5
information on claims costs by year of injury occurrence. Compared to a fully insured program,
the cost estimate would be an estimated $2,700,000 to fully insure the program. In summary, the
self- funding program had been an effective mechanism in the past, historical work:ers'
compensation costs had been far less than the $2,700,000 in fully insured premiums quoted, the
excess work:ers' compensation policy caps expenses at $500,000 per occurrence and the self-
funding allowed the city to save money when safety and loss control programs were successful.
Payne continued that the city's liability program had been a self-funded program since 1995.
Texas Tort Claims Act established the framework: for the program. The city self-administered
the liability claims process and covered the areas of general liability, auto liability, law
enforcement liability, public officials liability, errors and omissions, professional liability and
employment practices liability. The city also purchased insurance for exposure at the Airport,
Emergency Medical Services professional liability and commercial crime coverage. The Texas
Tort Claims Act established caps on damages and the city had excess liability coverage with
deductible and coverage limits. A fully insured program would cost an estimated $750,000 with
a $1,000 deductible and limited liability at $1,000,000. An excess policy would still need to be
purchased and some level of staff involvement would still be necessary. A fully insured policy
would not cover the liability associated with the Airport and ambulance service. Historical claim
expenses for both work:ers' compensation and liability claims were less than fully insured cost
indications. Staff recommended the continued practice of self-funding work:ers' compensation
claims and the use of a third party administrator and also the continued practice of self-funding
and self-administering the liability program.
Consensus of the Council was support of the staff recommendation.
Following the completion of the work: session, the Council convened in a Closed Session to
discuss Item #1 relative to the City Attorney's Office.
With no further business, the meeting was adj ourned.
EULINEBROCK
MAYOR
CITY OF DENTON, TEXAS
JENNIFER W ALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS