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May 2, 2006 Minutes CITY OF DENTON CITY COUNCIL MINUTES May 2, 2006 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, May 2,2006 at 4:45 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Brock; Council Members Kamp, Montgomery, Mulroy, and Thomson. ABSENT: Mayor Pro Tern McNeill; Council Member Heggins 1. The Council received a report, held a discussion, and gave staff direction regarding an update on the City's Long-Range Financial Forecast. Jon Fortune, Assistant City Manager, stated that this was an opportunity for Council to ask additional questions regarding the City's Long Range Financial Forecast. Staff had met three times with the Audit Committee regarding the Forecast. Council Member Thomson stated that Council had the option to increase the fund balance ~ percent per year and questioned if a quarter percent would be better and what would be the implications. Fortune stated that the general process to date had been to do a half of a percent per year but Council could do any percentage it wanted to do. The City would realize better savings when the 15% were reached so it would be better to reach that goal as soon as possible. 2. The Council received a report, held a discussion, and gave staff directio n regarding Request for Proposal #3482 - Bank Depository Services. Mayor Pro Tern McNeill arrived at the meeting. Diana Ortiz, Chief Financial Officer, stated that a stakeholder committee of staff members had reviewed the current bank depository services and what was available in the market place. A RFP was presented to 24 banks with 3 proposals received. Presentations and demonstrations were conducted before the Stakeholder Review Committee. Criteria for evaluation included ability to perform basic services and the annual cost of basic services. All three bidders were able to provide basic services. The lowest bid was received from Wachovia. Ortiz reviewed the lock box benefits proposed by Wachovia that included on-line exception review, accounts receivable conversion, check verification, and check conversion. Consensus of Council was to proceed with the contract with Wachovia. 3. Staff responded to requests for clarification of consent agenda items listed on the consent agenda for May 2, 2006. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5: 17 p.m. to consider specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. Consultation with Attorney - Under Texas Government Code Section 551.071 City of Denton City Council Minutes May 2, 2006 Page 2 1. Consulted with the City's Attorneys, and receipt of legal advice, regarding potential bargaining issues to be raised by management team representatives during Meet and Confer negotiations with the Denton Police Officers Association, pursuant to Texas Local Government Code sec. 142.051 et seq. A private caucus on this topic is specifically authorized by Texas Local Government Code 142.063(b), and public discussion would otherwise conflict with the duties of the City's attorneys to maintain confidential communications with the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2. Considered and discussed status of litigation styled Sheldon Bromberg v. City of Denton, Cause No. 2005-40017-362, currently pending in the 362nd District Court, Denton County, Texas. 3. Consulted with the City's attorneys regarding legal issues, including defense of pending litigation filed by JNC Denton Partners, LLC, associated with annexation of real property in the City's northern ETJ, under Annexation Case No. A05-0002, along with other legal issues related to the annexation, including zoning, land use and subdivision controls, plat applications, annexation plans, development agreements, annexation agreements, service plans, utility service, and legal issues implicated by alternative proposals advanced by individuals owning property within the proposed annexation area. A public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas or would jeopardize the City's legal position in any administrative proceedings or potential litigation. Council completed the Closed Session at 6:11 p.m. Regular Meeting of the City of Denton City Council on Tuesday, May 2, 2006 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. PROCLAMA TIONS/PRESENT A TIONS A. Proclamations/Awards Mayor Pro Tern McNeill presented an Environmental Stewardship Award to Mayor Brock. Mayor Brock presented proclamations for: Denton Cinco de Mayo in Denton Bill Utter Ford Day Motorcycle Safety and Awareness Month Arson Awareness Week Drinking Water Week in Denton City of Denton City Council Minutes May 2, 2006 Page 3 Denton Parks Foundation Board Appreciation Day Aquatics Month 3. CONSENT AGENDA Bob Clifton spoke on Item 3B, 3D, 3L. He felt the citizens needed to know what the items cost for Item 3B and 3D. Item 3L was questioned regarding the insurance requirements. Thomson motioned, Mulroy seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. A. 2006-110 - An ordinance abandoning and vacating a 0.5562 acre public drainage easement from Windjammer, Ltd. to City of Denton recorded by County Clerk file number 2005-38412 of the Real Property Records of Denton County, Texas, and a 0.0794 acre public drainage easement from Windjammer, Ltd. to City of Denton recorded by County Clerk file number 2005-38416 of the Real Property Records of Denton County, Texas, in the M.E.P. & P.R.R. Survey, Abstract No. 950; and declaring an effective date. The Public Utilities Board recommended approval (7-0). B. 2006-111 - An ordinance authorizing the City Manager to approve an amendment to the Memorandum of Understanding (MOU) between the City of Denton and the University of North Texas dated May 1,2003 to extend the terms of the MOU for an additional three year term; said MOU providing for collaborative research projects; providing for the expenditure of funds therefor; and declaring an effective date. The Public Utilities Board recommended approval (7-0). C. 2006-112 - An ordinance of the City of Denton, Texas, authorizing the City Manager to submit an application under the National School Lunch Act to obtain funding for the 2006 Summer Food Service Program; if such funding is granted, the City Manager is authorized to execute the Summer Food Service Program agreement with the Texas Health and Human Services Commission and execute a contract with the Denton Independent School District and all additional documents and agreements, as required; authorizing the expenditure of funds to administer the program; and providing an effective date. The Parks, Recreation and Beautification Board recommended approval (4-0). D. 2006-113 - An ordinance amending, repealing and replacing Ordinance No. 2004-206 of the City of Denton, Texas, establishing fees to be charged for emergency ambulance services and standby emergency ambulance services in the City as provided for in Sec. 27-102 of Article IV of Chapter 27 'Vehicles For Hire" of the Code of Ordinances of the City of Denton, Texas; repealing all ordinances in conflict herewith; providing a severability clause; and providing for an effective date. City of Denton City Council Minutes May 2, 2006 Page 4 E. Approved tax refunds for the following property taxes: Name Reason Tax Amount Year 1. FJRN Partners Ltd DCAD Supplemental 2005 $8,162.45 Change (value change) 2. Wells Fargo/Mendoza, Oscar Overpayment 2005 $2,679.81 3. 816 N Bell LLC DCAD Supplemental 2005 $2,626.36 Change (value change) 4. Hunt, William & Linda Duplicate Payment 2005 $1,652.81 5. First American/Ciulla, Don Duplicate Payment 2005 $1,630.70 6. Countrywide/Gasconik, Amper Overpayment 2005 $1,458.25 7. 816 N Bell LLC DCAD Supplemental 2005 $1,353.31 Change (value change) 8. Wells Fargo/Neal, Phillip & Melissa Duplicate Payment 2005 $1,299.51 9. First American/Stansell, John & Sally Duplicate Payment 2005 $1,216.11 10. Wells Fargo/Cowan, Michael Duplicate Payment 2005 $1,012.84 11. Wells Fargo/Sala, Debra Duplicate Payment 2005 $ 961.08 12. Wells Fargo/WMC Mortgage Corp Duplicate Payment 2005 $ 941.67 13. Wells Fargo/Jones, Mary Duplicate Payment 2005 $ 865.03 14. Wells Fargo/Abbott, Mike Duplicate Payment 2005 $ 860.05 15. Wells Fargo/Westbury, Sally Duplicate Payment 2005 $ 852.50 16. Quinonez, Adan/Wholesale Auto Overpayment 2005 $ 849.17 17. Wells Fargo/Jessup, Robert Duplicate Payment 2005 $ 844.71 18. Wells Fargo/Erikson, Lori Duplicate Payment 2005 $ 816.67 19. First American/Sawyer, Thomas Duplicate Payment 2005 $ 783.02 20. Wells Fargo/Sartin, Ottis Duplicate Payment 2005 $ 707.86 21. First American/Haskell, Cyrus Duplicate Payment 2005 $ 707.10 22. First American/Pierce, Brian & Mary Beth Duplicate Payment 2005 $ 699.76 23. Wells Fargo/Klein, Pamela Duplicate Payment 2005 $ 664.11 24. Countrywide/Scott, Blake & Susan Duplicate Payment 2005 $ 571.81 25. First American/Thomas, Scott Duplicate Payment 2005 $ 558.93 26. Wells Fargo/Massey, Robert & Louise Duplicate Payment 2005 $ 507.36 F. 2006-114 - An ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a professional services agreement with R. J. Covington Consulting, LLC for consulting services relating to Task Order No. 06-E providing for Developtrent of Purchased Power Agreement for Nodal Market for Denton Municipal Electric; authorizing the expenditure of funds therefore; and providing an effective date. The Public Utilities Board recommended approval (6-0.) G. 2006-115 - An ordinance of the City of Denton, Texas authorizing the City Manager to execute a Professional Services Agreement with Solutient Geosciences, Inc. for performing assessment monitoring and a groundwater monitoring system re-certification of the City of Denton, Texas Municipal Solid Waste Landfill; authorizing the expenditure of funds therefor; providing for retroactive ratification and approval thereof; and providing an effective date. The Public Utilities Board recommended approval (6-0). H. 2006-116 - An ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for electrical energy transmission fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 3498 - 2006 City of Denton City Council Minutes May 2, 2006 Page 5 Electrical Energy Transmission Fees Final Matrix in the total amount of $302,370). The Public Utilities Board recommended approval (7-0). I. 2006-11 7 - An ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order with the Houston-Galveston Area Council of Governments (H-GAC) for the acquisition of two 500 gallon pumper trucks for the City of Denton Fire Department by way of an Interlocal Agreement with the City of Denton; and providing an effective date (File 3500 - Interlocal Agreement for Purchase of Two Fire Trucks with H-GAC awarded to Martin Apparatus, Inc. in the amount of $874,612). J. 2006-118 - An ordinance accepting competitive bids and awarding a public works contract for the construction of the Parvin 15/21" Sanitary Sewer Line Project for the City of Denton Water/Wastewater Utilities Division; providing for the expenditure of funds therefor; and providing an effective date (Bid 3480 - Parvin Sanitary Sewer Line awarded to Wilson Contractor Services, L.L.C. in an amount not to exceed $238,479.60). The Public Utilities Board recommended approval (7-0). K. 2006-119 - An ordinance approving and authorizing the Mayor to execute a First Amendment to the Asset Purchase Agreement transferring all buses, equipment and other related assets from the City Passenger Motor Carrier Transit System known as LINK to the Denton County Transportation Authority; authorizing an extension of the time for Federal Transit Administration approval to March 30, 2007; authorizing the City Manager to take necessary actions to complete the transfer and providing an effective date. The Mobility Committee recommended approval (4-0). L. 2006-120 - An ordinance of the City of Denton, Texas, approving and authorizing the Denton Air Fair Committee and the Association of Competition Air Show Pilots, an Alabama L.L.C. ("ACAP") to hold an Air Fair at the Denton Municipal Airport on May 20 and 21, 2006, authorizing the concession to ACAP and the Denton Air Fair Committee to sell alcoholic beverages at places and locations during the 2006 Air Fair event; amending Chapter 3 "Airports" of the City Code to allow waiver of or substitution of insurance requirements; and providing an effective date. The Airport Advisory Board recommended approval (5-0). M. 2006-121 - An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Our Daily Bread to assist in providing food supplies for the homeless and destitute in Denton; providing for the expenditure of funds the refor; and providing an effective date. N. 2006-122 - An ordinance of the City of Denton, Texas authorizing settlement of litigation styled Sheldon Bromberg v. City of Denton, Cause No. 2005-40017- 362, currently pending in the 362nd District Court of Denton County; authorizing the City Manager and City attorneys to act on the City's behalf in executing any and all documents, and to take other actions necessary to finalize the settlement City of Denton City Council Minutes May 2, 2006 Page 6 and release of claims; authorizing the expenditure of funds therefor; and declaring an effective date. O. R2006- 015 - A resolution of the City Council of the City of Denton, Texas, consenting to the inclusion of its extraterritorial jurisdiction within the proposed Denton County Emergency Services District No.1 pursuant to Chapter 775 of the Texas Health and Safety Code; authorizing the Mayor to notify the County Commissioners Court and representative of the Denton County Emergency Services District No.1 of this consent; and providing an effective date. P. Approved the minutes of March 21, 2006 April 3, 2006 April 4, 2006 April 11, 2006 4. PUBLIC HEARINGS Item 4E was considered. E. The Council continued a public hearing and considered adoption of an ordinance regarding the rezoning of approximately 58.26 acres from a Neighborhood Residential-2 (NR-2) zoning district to a Neighborhood Residential-4 (NR-4) zoning district with an overlay district. The property was located at the southwest comer of Teasley Lane and Ryan Road. The Planning and Zoning Commission recommended denial (5-0). (206-0006, Teasley Park) SUPER MAJORITY VOTE REQUIRED FOR APPROVAL. City Attorney Snyder stated that the proposed ordinance was redrafted based on comments by the Council. An overlay district was included in order to preserve a portion of the upland habitat area. He listed the conditions included in the ordinance. Council discussion - . The original plan was not presented to Planning and Zoning as an overlay district. . The plan presented to the neighbors was different than the one the Planning am Zoning Commission had denied. The applicant went back to the neighbors and fixed the contractual time line using an overlay district to lock in the upland habitat as outlined. . After the new plan was presented, the neighbors were in favor of the proposal according to emails and phone calls received. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Robin Mullendore, 1139 Oakhurst, Denton, 76210 - opposed Kelly Wooley, 1916 DelMar Court, Denton, 76210 - in favor Liz Stokes, 2012 Belmont Park, Denton, 76210 - in favor of plan presented City of Denton City Council Minutes May 2, 2006 Page 7 Bob Clifton, 730 Wainwright, Denton, 76201 - proud of citizens who spoke regarding this proposal. Bill Morse, 231 7 Creekdale, Denton, 76210 - in favor of the current plan Lori Prather, 2113 Belmont Park, Denton, 76210 - in favor Donna Meyer, 2109 Belmont Drive, Denton, 76210 - favor of new proposal The Mayor closed the public hearing. The following ordinance was considered: NO. 2006-126 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE OF 58.258 ACRES FROM NEIGHBORHOOD RESIDENTIAL 2 (NR-2) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO NEIGHBORHOOD RESIDENTIAL 4 (NR-4) WITH AN OVERLAY DISTRICT LOCATED AT THE SOUTHWEST CORNER OF TEASLEY ROAD AND RYAN ROAD AND LEGALLY DESCRIBED AS TRACT 5 IN THE ELI PICKETT SURVEY, ABSTRACT UMBER 1018, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY N THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z06-0006) McNeill motioned, Mulroy seconded to adopt the ordinance with the conditions as noted in the ordinance. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. The Council returned to the regular agenda order. A. The Council held the second of two public hearings to consider annexing approximately 3,406 acres into the corporate city limits of the City of Denton, Texas. The property was bounded by Tom Cole Road to the north, FM 2449 bisects the property near the center of the development and John Payne Road is the eastern boundary south of FM 2449. Underwood Drive was on the eastern side of the property north of FM 2449. The property was bounded on the west by H. Lively Road/C. Wolfe Road and extended to the south a distance of approximately 6,500 linear feet from FM 2449. The property to be annexed was generally located in the southwestern area of the City of Denton's Extraterritorial JurisdictDn (ETJ). There had been no previous Planning and Zoning Commission action. (A06-0001, Cole Ranch) The Mayor opened the public hearing. Bob Clifton spoke in opposition. The Mayor closed the public hearing. No action was required at this time. B. The Council held a public hearing and considered adoption of an ordinance regarding a Comprehensive Plan Amendment from a "Neighborhood Centers" land use City of Denton City Council Minutes May 2, 2006 Page 8 designation to a "Regional Mixed Use Centers" land use designation on a 5.74-acre tract of land located on the north side of Scripture Road beginning at a point 300 feet east of the intersection of Scripture Road and Interstate 35. The site was zoned a Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential 6 (NR-6) zoning district. The property was currently undeveloped and the owner proposed to build a rehabilitation hospital. The Planning and Zoning Commission recommended approval (6-0). (CA6-0001, Select Medical) Brian Lockley, Interim Director of Planning and Development, stated that a rehabilitation hospital was proposed on the site. Item C would allow for the development of the property with hospital related uses. This was part of a larger master plan development. Staff recommended an overlay to limit the uses for hospital/medical uses. The Mayor opened the public hearings for Items Band C. Larry Reichhart, representing the developer, spoke in favor of the two items. The Mayor closed the public hearings for Items Band C. The following ordinance was considered: NO. 2006-123 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR AN AMENDMENT TO THE LAND USE ELEMENT OF THE DENTON PLAN FOR THE CITY OF DENTON, TEXAS FOR APPROXIMATELY 5.74 ACRES OF LAND LOCATED ON THE NORTH SIDE OF SCRIPTURE ROAD BEGINNING AT A POINT 300 FEET EAST OF THE INTERSECTION OF SCRIPTURE ROAD AND INTERSTATE 35, AND BEING A PORTION OF THE B.B.B. AND C.R.R. COMPANY SURVEY, ABSTRACT NO. 192, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (CA06-0001) Kamp motioned, Thomson seconded to adopt the ordinance. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. C. The Council held a public hearing and considered adopting and ordinance regarding a zoning change for a 5.74-acre tract of land located on the north side of Scripture Road beginning at a point 300 feet east of the intersection of Scripture Road and Interstate 35 with consideration being given to the use of an Overlay District to further restrict uses on the subject property. The applicant was requesting a change from Neighborhood Residential Mixed Use (NRMU) and Neighborhood Residential-6 (NR-6) zoning districts to a Regional Center Commercial- Downtown (RCC- D) zoning district. The Planning and Zoning Commission recommended approval (6-0). (206-0007, Select Medical) The public hearing was held in conjunction with Item B. The following ordinance was considered: NO. 2006-124 City of Denton City Council Minutes May 2, 2006 Page 9 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE OF 5.74 ACRES OF LAND FROM A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT AND A NEIGHBORHOOD RESIDENTIAL-6 (NR-6) ZONING DISTRICT TO A REGIONAL CENTER COMMERCIAL-DOWNTOWN (RCC-D) ZONING DISTRICT AND USE DESIGNATION WITH AN OVERLAY DISTRICT ON PROPERTY LOCATED ON THE NORTH SIDE OF SCRIPTURE ROAD BEGINNING AT A POINT 300 FEET EAST OF THE INTERSECTION OF SCRIPTURE ROAD AND INTERSTATE 35 AND LEGALLY DESCRIBED AS A PORTION OF TRACT 4, OF THE B.B.B. & C.R.R. COMPANY SURVEY IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENAL TY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z06-0007) Thomson motioned, Kamp seconded to adopt the ordinance. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. D. The Council held a public hearing and considered adoption of an ordinance amending portions of Subchapter 16 (Subdivisions) of the Denton Development Code; providing for a severability clause and an effective date. The Planning and Zoning Commission recommended approval (6-1). (DCA06-0003, Subchapter 16 Amendments) Brian Lockley, Interim Director of Planning and Development, presented information concerning the proposed amendments to the Code. The Mayor opened the public hearing. The following individuals spoke during the public hearing: Larry Reichhart, 1608 E. Windsor, Denton, 76209 - expressed concern that large single- family developments could not be done in phases. Melissa Lindelow, 301 Commerce Street, Fort Worth, 76102 - home builders in the development community had not been made aware of these amendments. There were legal issues concerning the proposed changes. The Mayor closed the public hearing. The following ordinance was considered: NO. 2006-125 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING PORTIONS OF SUBCHAPTER 16 (SUBDIVISIONS) OF THE DENTON DEVELOPMENT CODE; PROVIDING FOR A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. City of Denton City Council Minutes May 2, 2006 Page 1 0 Mulroy motioned, Kamp seconded to adopt the ordinance. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council cornidered adoption of an ordinance amending the Water Conservation and Drought Contingency Plan of the City of Denton previously enacted by the City Council in Ordinance No. 2005-121 on the 19th day of April, 2005 by adding to it Appendix "G", "The Land and Landscape Irrigation and Water Waste Ordinance"; amending the Water Conservation and Drought Contingency Plan in accordance with the requirements of the law; establishing lawn and landscape irrigation requirements; implementing water-wasting restrictions; requiring rain sensors and freeze gauges; providing for variances; providing for the revocation of variances; and providing penalties for violations thereof; providing a criminal penalty not to exceed $2,000 per violation; providing a civil penalty not to exceed $1,000 per day per violation and providing legal remedies for the City of Denton, Texas; providing a savings clause; providing a severability clause; and providing an effective date. The Public Utilities Board recommended approval (7-0). Tim Fisher, Assistant Director of Water, presented the background information on the issue. He detailed the conditions of the plan, which included water- wasting restrictions, rain sensors and freeze gauges and lawn and landscape irrigation requiremerts. The restrictions would begin June 1, 2006. Bob Clifton spoke in opposition as he felt there was a need to educate citizens rather than punish them. The following ordinance was considered: NO. 2006-127 AN ORDINANCE AMENDING THE WATER CONSERVATION AND DROUGHT CONTINGENCY PLAN OF THE CITY OF DENTON PREVIOUSLY ENACTED BY THE CITY COUNCIL IN ORDINANCE NO. 2005-121 ON THE 19TH DAY OF APRIL, 2005 BY ADDING TO IT APPENDIX "G", "THE LAND AND LANDSCAPE IRRIGATION AND WATER WASTE ORDINANCE"; AMENDING THE WATER CONSERVATION AND DROUGHT CONTINGENCY PLAN IN ACCORDANCE WITH THE REQUIREMENTS OF THE LAW; ESTABLISHING LAWN AND LANDSCAPE IRRIGATION REQUIREMENTS; IMPLEMENTING WATER- WASTING RESTRICTIONS; REQUIRING RAIN SENSORS AND FREEZE GAUGES; PROVIDING FOR VARIANCES; PROVIDING FOR THE REVOCATION OF VARIANCES; AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF; PROVIDING A CRIMINAL PENALTY NOT TO EXCEED $2,000 PER VIOLATION; PROVIDING A CIVIL PENAL TY NOT TO EXCEED $1,000 PER DAY PER VIOLATION AND PROVIDING LEGAL REMEDIES FOR THE CITY OF DENTON, TEXAS; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. City of Denton City Council Minutes May 2, 2006 Page 11 Montgomery motioned, Mulroy seconded to adopt the ordinance. On roll vote, Kamp "aye", McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. B. Announcement of Council Member Pete Kamp's conflict of interest in the Emergency Shelter Grant Program ("ESGP"), due to her service on the Salvation Army Advisory Council, a potential contract recipient of ESGP funds, in accordance with the requirements of 24 CFR 576.57( d) and consider and take action to authorize the City staff to initiate the process of submitting an application to HUD through the Texas Department of Housing and Community Affairs for an exception to the conflict. Ms. Kamp read the following statement: "The City of Denton is in the process of applying for Emergency Shelter Grant Program ("ESGP") funds from the Texas Department of Housing and Community Affairs, which administers HUD's state ESGP funds in Texas. I, Pete Kamp, want to make it known that since becoming a City Council member, I have served on the Advisory Council of the Salvation Army, as a non-compensated board member. The Salvation Army has in the past or may in the future receive ESGP funds or is a contractor or subcontractor for the ESGP funds administered by the City of Denton. HUD has made a preliminary determination that this creates a conflict of interest under 24 CFR 576.57(d). Although, if required, I will abstain from any participation in any vote concerning the grant of ESGP funds, HUD has determined that I am still in a position to gain information with regard to ESGP activities and that the City should request an exception from this conflict to HUD through the Texas Department of Housing and Community Affairs the recipient of ESGP funds. One of the special requirements for an exception to this conflict is that the conflict be publicly disclosed in accordance with 24 CFR 570.611(d)(I). In order to meet this public disclosure requirement, I, Pete Kamp, am hereby making this public disclosure as part of the City's request for an exception from these conflict of interest provisions. I request that the City Secretary record this statement in the minutes of this meeting." C. Council considered approval of a resolution ordering Atmos Energy, Mid- Tex Division to show cause regarding the reasonableness of its existing natural gas distribution rates within the City; requiring Atmos Energy, Mid- Tex Division, to submit a rate filing package based on a test year ending December 31, 2005; authorizing the City to join with other cities known as the Atmos Texas Municipalities ("A TM") to direct the activities of lawyers and consultants; authorizing the hiring of attorneys and consultants; directing that such filing shall be made prior to May 31, 2006; requiring reimbursement of reasonable legal and consultant expenses; finding that the meeting complies with the Open Meetings Act; making such other findings and provisions related to the subject; and declaring an effective date. Council Member Kamp left the meeting. City Attorney Snyder indicated that Atmos had not yet made an application for a rate increase. The resolution authorized the City to retain an attorrey and consultant to challenge the reasonableness of its existing rates and any future rate increases. City of Denton City Council Minutes May 2, 2006 Page 12 The following resolution was considered: NO. R2006-016 A RESOLUTION ORDERING ATMOS ENERGY, MID- TEX DIVISION TO SHOW CAUSE REGARDING THE REASONABLENESS OF ITS EXISTING NATURAL GAS DISTRIBUTION RATES WITHIN THE CITY; REQUIRING ATMOS ENERGY, MID-TEX DIVISION, TO SUBMIT A RATE FILING PACKAGE BASED ON A TEST YEAR ENDING DECEMBER 31,2005; AUTHORIZING THE CITY TO JOIN WITH OTHER CITIES KNOWN AS THE ATMOS TEXAS MUNICIPALITIES ("ATM") TO DIRECT THE ACTIVITIES OF LAWYERS AND CONSULTANTS; AUTHORIZING THE HIRING OF ATTORNEYS AND CONSULTANTS; DIRECTING THAT SUCH FILING SHALL BE MADE PRIOR TO MAY 31, 2006; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Mulroy motioned, Thomson seconded to approve the resolution. On roll vote, McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. D. Council considered approval of a resolution authorizing the suspension of the effective date until July 14, 2006 for the Gas Reliability Infrastructure Program Adjustments for calendar year 2005 proposed by Atmos Energy Corporation's Mid- Tex Division (Atmos Energy); authorizing participation in a coalition of cities known as Atmos Texas Municipalities ("ATM"); authorizing the hiring of lawyers and rate experts; authorizing the City's participation to the full extent permitted by law at the Railroad Commission of Texas with regard to any Gas Reliability Infrastructure Program adjustments proposed by Atmos Energy; requiring the reimbursement of municipal rate case expenses; finding that the meeting complied with the Open Meetings Act; making other findings and provisions related to the subject; and declaring an effective date. City Attorney Snyder indicated that this was the third request from Atmos to increase the base rate based on an investment structure. An application for an increase had received and this resolution would authorize suspension of the effective date of the increase in order to prepare opposition to that rate increase. The following resolution was considered: NO. R2006-017 A RESOLUTION AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE UNTIL JUL Y 14, 2006 FOR THE GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENTS FOR CALENDAR YEAR 2005 PROPOSED BY ATMOS ENERGY CORPORATION'S MID- TEX DIVISION (ATMOS ENERGY); AUTHORIZING PARTICIPATION IN A COALITION OF CITIES KNOWN AS City of Denton City Council Minutes May 2, 2006 Page 13 ATMOS TEXAS MUNICIPALITIES ("ATM"); AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF TEXAS WITH REGARD TO ANY GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENTS PROPOSED BY ATMOS ENERGY; REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Mulroy motioned, Montgomery seconded to approve the resolution. On roll vote, McNeill "aye", Montgomery "aye", Mulroy "aye", Thomson "aye" and Mayor Brock "aye". Motion carried unanimously. E. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Council receive citizen reports from the following: A. Bob Clifton regarding city business. Mr. Clifton again indicated that he had not received information he requested for an Open Records request. He had filed a lawsuit this afternoon for the information he had requested. He also presented information on an ad that would be in the Denton Record-Chronicle regarding the IPMC. B. Jane Wilson regarding city services. Ms. Wilson stated that she had a problem with her utility bill and had asked for information on how her bill was prepared. She had asked to have her meter tested with no results. She was not being treated justly as a citizen of Denton. C. Jordan Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present at the meeting. D. Lanisha Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present at the meeting. E. Hagar Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was mt present at the meeting. F. Willie Hudspeth regarding concerns of Southeast Denton. Mr. Hudspeth stated that Council currently had the votes and could do what they wanted to do to the citizens. Council needed to not rubber-stamp all of the items it considered. One day there City of Denton City Council Minutes May 2, 2006 Page 14 would be a black firefighter, one day there would be a tree preservation plan, and one day citizens would know about the business of the council. G. Lari Gibbons regarding Unicorn Lake. Ms. Gibbons stated that she was opposed to the proposed development of Unicorn Lake as it would destroy a large stand of upland habitat that was currently protected under the Development Code. H. Jennifer Larson- Hall regarding Unicorn Lake overlay. Ms. Larson- Hall proposed a compromise for the Unicorn Lake overlay of a 50 foot of buffer. This would only result in the loss of loss of 6 lots and would maintain the promise the current property owners had been given. She indicated that the Planning and Zoning Commission had been distressed that there was no compromise over this situation. This was not an issue of apartments versus homes. I. David Radabaugh regarding Unicorn Lake Development Project. Mr. Radabaugh indicated that he was opposed to the proposed development of Unicorn Lake that would destroy a stand of upland habitat in the area when the current residents had been promised that the forest buffer would remain. He asked Council to not approve the proposal when it came to them. J. Jack Deeb regarding trash pickup and city management response. Mr. Deeb was not present at the meeting. F. New Business The Council had the following of New Business for future agendas: 1. Council Member Mulroy requested staff prepare additional packages of information for Mr. Clifton regarding the information he had addressed during the meeting. 2. Mayor Pro Tern McNeill indicated that he had the same request and also requested public input from all citizens. G. Items from the City Manager 1. Notification of upcoming meetings and/or conferences 2. Clarification of items on the agenda Interim City Manager Martin did not have any items for Council. H. There was no continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. I. There was no official Action on Closed Meeting Item(s) under Sections 551.071- 551.086 of the Texas Open Meetings Act. City of Denton City Council Minutes May 2, 2006 Page 15 With no further business, the meeting was adjourned at 9:00 p.m. EULINE BROCK MAYOR CITY OF DENTON, TEXAS JENNIFER W ALTERS CITY SECRETARY CITY OF DENTON, TEXAS