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June 3, 2008 MinutesCITY OF DENTON CITY COUNCIL MINUTES June 3, 2008 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, June 3, 2008 at 4:00 p.m. in the Council Work Session Room. PRESENT: Mayor McNeill; Mayor Pro Tem Kamp; Deputy Mayor Pro Tem Mulroy; Council Members Heggins, Moreno, Thomson, and Watts. ABSENT: None 1. Staff responded to Council requests for clarification of agenda items listed on the agenda for June 3, 2008. Council Member Watts requested an amendment to the April 15th minutes to reflect the exchange between Vance Kemler and himself including the questions and answers. Deputy Mayor Pro Tem Mulroy requested an amendment to the April 15th minutes to reflect the clean audit the City received from the outside auditor, the excellent job staff had done and the fact that the HUD items also produced a clean audit. City Manager Campbell stated that the public hearing for Item 4E should be opened and then continued until the June 17th meeting. City Attorney Snyder stated that Consent Agenda Item 3A needed to be pulled for separate consideration as two council members had a potential conflict of interest. A suggested motion would be to approve the Action Plan with the exception of the two noted allocations followed by Deputy Mayor Pro Tem Mulroy and Council Member Watts leaving the meeting for the Council to vote on the entire funding package. 2. Council received a report, held a discussion, and gave staff direction on the proposed Hunter Ranch/Inspiration Master Planned Community for approximately 3,331 acres of land, generally located on both sides of I-35W between Robson Ranch Road and Vintage Boulevard. (NIPC07-0001, Hunter Ranch/Inspiration) Mark Cunningham, Director of Planning and Development, stated that this proposed development included a mix of residential, retail, commercial and open space/recreational uses. He reviewed the original zoning map which showed the property where it abutted Robson Ranch. The residents of Robson Ranch had several major issues with the proposed development which included traffic on Robson Ranch Road, lack of a buffer between Robson Ranch and the proposed single family development within Hunter Ranch/Inspiration, the location of a proposed elementary school and private park adjacent to Robson Ranch, and the location of the multi- family zoning along Robson Ranch Road. The applicant met several times with the community and currently was proposing that no schools or parks would be located adjacent to the Robson Ranch property, the private park would be relocated so as not to be adjacent to Robson Ranch property, some of the proposed multifamily development along Robson Ranch Road would be relocated, and the single family residential lots within Hunter Ranch would be the same size or larger than those adjacent lots in Robson Ranch. Cunningham reviewed the development plan showing the environmentally sensitive areas and the open spaces. He also provided a comparison of development thresholds. The maximum number of single-family homes was reduced from 12,089 to 11,914. The maximum number of City of Denton City Council Minutes June 3, 2008 Page 2 multi-family homes was increased from 3,253 to 3,408 with a ratio of single family to multi- family units of 77.8% to 22.2% which was within the target range set by Council. Mayor McNeill asked ifmulti-family was included in the Robson Ranch plans. Cunningham stated as of the last approved plans, there was still multi-family planned along the front of property. Council discussion - • Once a master planned community was approved, there was a concern that the next person to purchase the property might do something different with the property. Cunningham stated that the usage went with the land and if a new owner wanted to change that, he would have to come to Council to make any changes. • Provide the Council with the linear footage of Hunter Ranch that abuts the developed portion of Robson Ranch plus the number of homes in that area. • Number of gas wells in the area. Cunningham stated that there were approximately 18 gas wells in the area plus wells on Robson Ranch. 3. The Council received a report, held a discussion and gave staff direction regarding the creation of a Tax Increment Financing (TIF) Reinvestment Zone for Denton downtown redevelopment. Linda Ratliff, Director of Economic Development, stated that Larry Cline of Schrader and Cline, economic development consultants, would be presenting the details of the downtown TIF proposal. They had several meetings with the Downtown Task Force. Staff would like to have the proposal completed by the end of the calendar year to use 2008 for funding. A Notice of Intent would have to be sent to the other taxing entities, a public hearing would have to be held in August and a TIF Board would be formed with one member from Denton County and two members from Council. The Board would present a financial plan and project plan on an annual basis. If the TIF were approved it would also have to go to Commissioners Court. Larry Cline, Schroeder and Cline, stated that this proposal was not a project specific TIF and made assumptions of what might happen over a period of time. Council Member Watts asked if the goal was to set the TIF in 2008, what would the tax value be based on. Cline replied that it would freeze as of 2008 and as it went through time, value increases would be received from development of new projects and general increases in values. The tax value from the general increase would go into the fund. Deputy Mayor Pro Tem Mulroy stated that any additional increase in tax revenue values above the base year would be allocated to the TIF and not general government. Cline replied just the area within the TIF boundaries. It would only capture a portion of the real property taxes; not tapping to personal property and not 100% of new taxes after five years. City of Denton City Council Minutes June 3, 2008 Page 3 Council Member Watts questioned why the boundary of the District went across Carroll Blvd. Ratliff stated that originally it stopped on the east side of Carroll but the EDP Board suggested going to other side as improvements might be needed there also. Cline reviewed general questions and answers regarding TIFs. Assumptions associated with the TIF included (1) the TIF funding income would be derived from a general increase in valuation, completion of catalyst projects identified by the 2005 Leland/RTKL study and other smaller development/redevelopment projects; (2) a 30 year TIF life; and (3) taxing jurisdiction real property tax rate participation of city/county years 1-5 at 100%/90%, years 6-10 at 90%/-80% and years 11-3 0 at 80%/70%. Assumptions for real property value increase included (1) general increase of the 2007 taxable value of $212, (2) annual value increase over last 6 years of 8.7% per year, over the last five years of 7.2% per year and (3) to be conservative for this analysis only 2.5% per year was used. Catalyst projects assumed to be completed were the Transportation Oriented development, Wells Fargo, Northwest Downtown, mixed-use on Carroll, and residential on Oak/Pecan. Other development assumptions were that new development/redevelopment during 2003- 2006 in the downtown area would average about $1.7 million/year. Public infrastructure improvements and catalyst projects would stimulate a higher level of development/ redevelopment projects in the TIF area. Based on all of these assumptions, TIF funds of $22 million would be generated by general projects, $12 million would be generated by catalyst projects and $8 million would be general with other projects. Council Member Moreno asked for the rational for determining the boundaries and to not include residential areas. Cline replied that the TIF could not have more that 10% residential of the total land when it was created. Council Member Moreno and Deputy Mayor Pro Tem Mulroy asked that the amount of residential property included in proposed zone be checked. Deputy Mayor Pro Tem Mulroy stated that more than half of the generated revenue would be from circumstances in the entire city but only the target area would receive the benefits. Council Member Watts stated that the proposed resolution on this agenda was only for putting the proposal together. Mayor Pro Tem Kamp stated that Council started talking about this 5 years ago so it was not being done overnight. Deputy Mayor Pro Tem Mulroy stated that his point was to be mindful of an obligation to the rest of the community and provide an allocation of dollars in an equitable fashion. City of Denton City Council Minutes June 3, 2008 Page 4 Cline suggested spending the money on parking/transportation, streetscape projects, support for downtown projects and utility improvements. 4. The Council received a report and held a discussion on the 2008 Water and Wastewater Impact Fee Study. Jim Coulter, Director of Water Utilities, stated that impact fees provided the means for recovering the cost of adding capacity to the water/wastewater system to provide service to any new growth that created a new demand/impact on the water/wastewater system. The Public Utilities Board had reviewed the impact fee study results and potential impact fee levels and recommended the use of two water impact fee zones versus a single zone and specific impact fee amounts at levels between the 50% credit amount and the maximum allowable amount. Those zones were Water Zone 1 at $3,400, Water Zone 2 at $4,000, Wastewater Zone 1 at $1,700 and Wastewater Zone 2 at $1,760. It also suggested the creation of another zone in the southwestern portion of the community, south of Hickory Creek. Council discussed the historical data on how the fees measured to projections, the allocation of the debt from the water utility to impact fees, back testing to determine if the fees were equitable, and possible factors for incentives for individual meters in multi-family to encourage conservation. Coulter stated that a public hearing was scheduled for June 17th on the impact fees. Staff would research the look back information and provide it to Council. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5:57 p.m. to consider the 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. 1. Discussed, deliberated, and received information from Staff, and provided Staff with direction pertaining to updated issues regarding the Lease Agreement related to the Regional Recyclables Processing Agreement, both agreements being heretofore approved by the Denton City Council on October 2, 2007; which Lease Agreement is for a six acre tract of land situated within the City of Denton Landfill. Consultation with the City's attorneys regarding legal issues and advice associated with the updated issues respecting the two above-referenced agreements, involving a public discussion of these legal matters, would conflict with the duty of the City's attorneys to the City Council under the Texas Rules of Disciplinary Conduct of the State Bar of Texas. B. Deliberations regarding real property -Under Texas Government Code Section 551.072, Consultation with Attorney -Under Texas Government Code Section 551.071. City of Denton City Council Minutes June 3, 2008 Page 5 1. Deliberated the purchase and value of real property interests for the fee acquisition of approximately 2 acres in the E. Morris Survey, Abstract Number 868, being generally situated along the east side of Woodrow Lane, north of Morse Street, all or part of which may be acquired for a public purpose, and receive legal advice from the City Attorney or his staff concerning legal issues regarding the acquisition of such real property interests. Regular Meeting of the City of Denton City Council on Tuesday, June 3, 2008 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 Mayor McNeill presented a proclamation for U. S. Army Day. B. May Yard-of the-Month Awards Mayor McNeill presented the May Yard-of the Month Awards. 3. CONSENT AGENDA Items A and N were pulled for separate consideration. Council Member Watts requested an amendment to the April 15th meeting minutes to reflect the conversation he had with Vance Kemler relative to the cost of the gas collection process at the landfill. Deputy Mayor Pro Tem Mulroy requested an amendment to the April 15th meeting minutes to reflect the compliments from the external auditor on the city's audit, that all four sections were clean, that staff had done an excellent j ob with a special recognition to Community Development and Barbara Ross for their clean report. Mayor McNeill reviewed the items to be considered on the Consent Agenda Council Member Watts also requested that the April 15th meeting minutes be changed relative to the cell phone ban in school districts to say "development" instead of "approval". Kamp motioned, Mulroy seconded to approve the Consent Agenda and minutes as amended with the exception of Items A and N. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor McNeill "aye". Motion carried unanimous y. City of Denton City Council Minutes June 3, 2008 Page 6 Item 3A was considered. Kamp motioned, Mulroy seconded to approve the Action Plan with the exception of allocations for CASA and AIDS Services of North Texas. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor McNeill "aye". Motion carried unanimously. Deputy Mayor Pro Tem Mulroy and Council Member Watts left the meeting with a conflict of interest. Heggins motioned, Thomson seconded to approve the 2008 Action Plan as presented. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Thomson "aye", and Mayor McNeill "aye". Motion carried unanimously. A. R2008-019 - A resolution by the City of Denton, Texas, authorizing the City Manager to sign and submit to the Department of Housing and Urban Development a 2008 Action Plan for Housing and Community Development with appropriate certifications, as authorized and required by the Housing and Community Development Act of 1974, as amended and the National Affordable Housing Act of 1990, as amended; and providing for an effective date. B. 2008-105 - An ordinance of the City of Denton, Texas, approving and authorizing the Denton Air Fair, Inc. to hold an air fair at the Denton Municipal Airport on June 14, 2008, authorizing the concession to Metzler's Food and Beverage, Inc. to sell alcoholic beverages at places and locations during the 2008 Air Fair events, upon certain conditions; and providing an effective date. The Airport Advisory Board recommended approval (5-0). C. 2008-106 - An ordinance approving the abandonment of the interest of the City of Denton, Texas in certain Brazos Electric Power Cooperative, Inc. easements recorded in Volume 437, Page 613; Volume 354, Page 396; which were assigned to the City of Denton, Texas by instrument recorded in Volume 1106, Page 78; Volume 449, Page 439; and by Document Number 2008-31930 of the Denton County Property Records, Denton County, Texas; and providing an effective date. The Public Utilities Board recommended approval (5-0). D. 2008-107 - An ordinance of the City of Denton, Texas, approving the 2009 Budget of the Denton Central Appraisal District, and providing an effective date. E. 2008-108 - An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the Denton Air Fair, Inc. for supplemental funding for the Denton Air Fair; providing for the expenditure of funds therefor; and providing for an effective date. ($1,550) F. 2008-109 - An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the Juneteenth Committee for supplemental funding for Juneteenth; providing for the expenditure of funds therefor; and providing for an effective date. ($1,950) City of Denton City Council Minutes June 3, 2008 Page 7 G. R2008-020 - A resolution of the City Council of the City of Denton, Texas, authorizing issuance of a notice of intent that the City of Denton intends to establish a Tax Increment Financing Reinvestment Zone, pursuant to the Tax Increment Financing Act, Texas Tax Code Ann., Chapter 311, for the City of Denton, Texas; providing an effective date. The Economic Development Partnership Board recommended approval (6-0). H. Approved a request for an exception to the noise ordinance for amplified sound on a Sunday for the purpose of the Apollo Time and the Music Time events. Apollo Time is scheduled for Sunday, July 6, 2008, from 5:00 p.m. until 10:00 p.m. and Sunday, July 27, 2008, from 5:00 p.m. until 11:00 p.m. The Music Time events are to be held on Sunday, July 13, 2008, and July 20, 2008, from 5:00 p.m. to 10:00 p.m. The events will be held in Fred Moore Park. Mr. Harold Jackson, event organizer, is specifically asking for an exception to the noise ordinance to allow amplified sound on a Sunday. I. 2008-110 - An ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order through the Houston-Galveston Area Council (H-GAC) for a Dual Drum Vibratory Roller and Buy Board Cooperative Purchasing Network for the acquisition of a Motor Grader and Pot Hole Patching Truck for the city of Denton Street Department by way of an Interlocal Agreement with the City of Denton; and providing an effective date (File 4046- Interlocal Agreement for the purchase of Heavy Equipment for Street Department awarded to multiple vendors in the amount of $201,825.73). J. 2008-111 - An ordinance approving the expenditure of funds for the purchase of Voice Over Internet Protocol (VOIP) phone system equipment and services as approved by the State of Texas Building and Procurement Commission Department of Information Resources (DIR) under #DIR-SDD-239; providing for the expenditure of funds therefor; and providing an effective date (File 4045- Purchase of Cisco Voice Over Internet Protocol awarded to INX Inc. in the amount of $153,737). The Public Utilities Board recommended approval (4-0). K. 2008-112 - An ordinance of the City of Denton, Texas accepting competitive sealed proposals and awarding a best value three year contract for the installation of Underground Cable for Denton Municipal Electric; authorizing the expenditure of funds therefor; and providing an effective date (Bid 3973-Three Year Contract for Underground Electric Service Installation awarded to the lowest responsible bidder meeting specification, TESSCO Utility Services, Inc., in the estimated three year amount of $2,141,93 8). The Public Utilities Board recommended approval (6-0). L. 2008-113 - An ordinance of the City of Denton, Texas, amending section 2-106 of the Code of Ordinances of the City of Denton, Texas regarding procedures for the sale of personal property of the City; providing a severability clause and an effective date (File 4054-Amended Ordinance for the Sale of Personal Property of the City of Denton). City of Denton City Council Minutes June 3, 2008 Page 8 M. 2008-114 - An ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of software and services in the deployment of a Traffic Signal Management System installation for the City of Denton Traffic Division, which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4053-to Paradigm Traffic Systems in the amount of $150,400). N. This item was not considered 0. Approved the minutes of: April 15, 2008 May 5, 2008 P. Approved the appointment by the City Manager of a new member to the Civil Service Commission. Q. 2008-115 - An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Southridge Recreation Club which serves a public purpose in facilitating recreational activities; providing for the expenditure of funds therefor; and providing for an effective date. ($900) R. R2008-021 - A resolution of the City Council of the City of Denton, Texas, staying the enforcement of the $75.00 access fee imposed by Ordinance No. 2007-211 (The Solid Waste Rate Ordinance), Schedule SWC (Commercial Solid Waste Collection Services), Section 1, fourth subparagraph; and providing an effective date. S. 2008-116 - An ordinance amending Ordinance No. 2008-020 to indicate the election officials for Districts 1, 2, 3, and 4; providing a savings clause; and providing an effective date. T. R2008-022 - A resolution nominating a member to the Board of Managers of the Denco Area 9-1-1 District; and declaring an effective date. Deputy Mayor Pro Tem Mulroy and Council Member Watts returned to the meeting. 4. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of an ordinance regarding the approval of a Specific Use Permit to allow a drive through facility in conjunction with a convenience store on approximately 0.611 acres of land, generally located on the southwest corner of Locust Street and Elm Street and is legally described as a tract of land in the BBB & C Railroad Company Survey, Abstract No. 186, in the City of Denton, Denton County, Texas, providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. The property was located within a Neighborhood Residential City of Denton City Council Minutes June 3, 2008 Page 9 Mixed Use (NRMU) zoning district. The Planning and Zoning Commission recommended approval (7-0) with conditions. (507-0017, Howdy Doody Food store) Mark Cunningham, Director of Planning and Development, stated that a convenience store currently existed on the subject site. The driveway for the proposed drive through facility was constructed in late 2007 without a building permit. The owner was now requesting a specific use permit to allow the driveway to be used for customers to purchase goods from their cars. The owner will also be required to provide engineering documentation concerning the driveway construction. If the construction did not meet City standards, it would be rebuilt to current standards. The Planning and Zoning Commission recommended approval with the conditions that the hours of operation of the drive through facility be limited to 6:00 p.m. -11:00 p.m. on Sunday through Thursday and from 6:00 p.m. to 12:00 a.m. on Friday and Saturday evenings and the applicant provide a 6 foot tall wooden fence along the southern boundary of the property to replace the chain link fence currently separating the convenience store from the single family structure to the south. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: N0.2008-117 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE PERMIT TO ALLOW A DRIVE THROUGH FACILITY IN CONJUNCTION WITH A CONVENIENCE STORE, ON APPROXIMATELY 0.611 ACRES OF LAND, GENERALLY LOCATED ON THE SOUTHWEST CORNER OF LOCUST STREET AND ELM STREET, AND LEGALLY DESCRIBED AS A TRACT OF LAND IN THE BBB & C RAILROAD COMPANY SURVEY, ABSTRACT N0. 186, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (507-0017) Mulroy motioned, Watts seconded to adopt the ordinance as presented with conditions. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor McNeill "aye". Motion carried unanimously. B. The Council held a public hearing and considered adoption of an ordinance regarding the approval of a Specific Use Permit to allow a drive through facility in conjunction with a pharmacy on approximately 1.722 acres of land, generally located on the west side of Teasley Lane approximately 1,200 feet north of Hickory Creek Road and is legally described as Lot 8, Block L of Lexington Park, Phase 2 in the City of Denton, Denton County, Texas, providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. The property was located within a Neighborhood Residential Mixed Use City of Denton City Council Minutes June 3, 2008 Page 10 (NRMU) zoning district. The Planning and Zoning Commission recommended approval (7-0). (508-0001, Lexington Medical Park) Mark Cunningham, Director of Planning and Development, state that the proposed specific use permit would allow a drive through facility in conjunction with a pharmacy in the NRNU zoning district. The Planning and Zoning Commission recommended approval. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: No. 2008-118 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE PERMIT TO ALLOW A DRIVE THROUGH FACILITY IN CONJUNCTION WITH A PHARMACY, ON APPROXIMATELY 1.722 ACRES OF LAND, GENERALLY LOCATED ON THE WEST SIDE OF TEASLEY LANE, APPROXIMATELY 1,200 FEET NORTH OF HICKORY CREEK ROAD, AND LEGALLY DESCRIBED AS LOT 8, BLOCK 1 OF THE LEXINGTON PARK, PHASE 2, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (08-0001) Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor McNeill "aye". Motion carried unanimously. C. The Council continued a public hearing and considered adoption of an ordinance of the City of Denton, Texas, providing for an amendment to the comprehensive plan for the City of Denton, Texas, for approximately 33 acres of land, located north of University Drive and west of Masch Branch Road, and legally described as Lot 2 of the Marriott Gardens Addition, in the City of Denton, Denton County, Texas, from an Employment Centers future land use designation to an Industrial Center future land use designation; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. The Planning and Zoning Commission recommended approval (7-0). (CA07-0001, Marriott Gardens Addition) Deputy Mayor Pro Tem Mulroy left the meeting with a potential conflict of interest. Mark Cunningham, Director of Planning and Development, stated that on May 6, 2008 Council continued this comprehensive plan amendment and associated zoning change request to the June 3, 2008 public hearing. Members of the Council requested more information in order to better understand the impacts this proposal would have on the adjacent properties and the associated impacts. He reviewed the location of the property and the current/future land use. The requested zoning change was from an Employment Center future land use designation to an Industrial City of Denton City Council Minutes June 3, 2008 Page 11 Center future land use designation. Staff was recommending denial of the request. One major reason was the fact that in staff s opinion there was not an adequate pubic facility for light/heavy industrial uses to accompany the request. During the May 6th meeting, Council presented staff with several clarifying questions. The first was to clarify when a nonconforming use became terminated. According to the Denton Development Code, a nonconforming use became terminated if the nonconforming use was discontinued or remained vacant for 6 months or more and no attempt to market the property was observed. The second question was what was the current vacancy rate. As of May 19, 2008 the applicant stated that there was currently 41,560 square feet of vacant leasable space out of a total 298,285 square feet on site. The third question was how many certificates of occupancy had been applied for since annexation of the property. Six certificates of occupancy had been applied for and all six were issued since the annexation of the property. The status of sewer lift station and what affect approval of the request would have on the lift station was the fourth question asked by Council. Currently the sewer lift station was operating within the TCEQ required guidelines. However, when the property was fully leased and combined with more intense uses, it was anticipated that wastewater flows to the lift station would likely exceed its operating capacity. A fifth question was whether the Council could consider rezoning the property to EC- I. After an analysis by staff, it was concluded that the uses permitted in the IC-G was not cumulative to the uses permitted in the EC-I. Therefore, Council could not consider rezoning the property to EC-I at this time. However, it was staff s position that this property be rezoned to EC-I at a later time. Staff was recommending denial of the request as Masch Branch Road was inadequate to support heavy industrial traffic, and granting a comprehensive plan amendment would create an isolated land use designation and potential zoning district unrelated to adjacent and nearby properties. The Planning and Zoning Commission recommended approval 7-0. The second public hearing on this property was an accompanying rezoning request. The property was voluntarily annexed into the city as a result of an agreement between the property owner and the city. The agreement stipulated that if the uses within the property were expanded beyond the boundaries that existed at the time of the agreement, the City would have the right to voluntarily annex the property. The City began the annexation proceedings when it was determined that the property owner violated the agreement. According to the applicant, the purpose of the rezoning request was to rezone the property to be consistent with the existing uses. The current zoning of RD-5 did not permit industrial and office uses, which caused the existing uses to become legal nonconforming uses. The applicant was requesting an IC-G zoning district designation to allow light manufacturing by right and heavy manufacturing with a specific use permit. Staff was recommending denial as the proposal did not conform to the future land use designation of employment centers, Masch Branch Road was inadequate to support the anticipated traffic generation typically associated with the requested future land use/zoning district as a collector road was required and would create an isolated district unrelated to adjacent and nearby districts. The Planning and Zoning Commission recommended approval. Council Member Watts questioned the square footage at the time of the annexation agreement. Cunningham stated he was not sure but that it was probably noted in the agreement so as to be able to determine if any expansion occurred. He had been told that a portion of the expansion was built in the flood plain. The applicant submitted an application to take that portion out of the flood plain but at this time, there had been no feedback from FEMA. City of Denton City Council Minutes June 3, 2008 Page 12 Council Member Moreno stated that Marsch Branch Road prior to 2006 was in the county and by taking it into the city limits, now became a city responsibility. When the area was annexed were there any plans to improve the infrastructure? Cunningham replied not that he was aware of. Council Member Thomson asked about the implication of having built in the flood plain if FEMA did not change the flood plain designation. Could the city not issue certificates of occupancy? Cunningham replied that the building was already occupied. Staff would have to research if they had the authority to issue a violation. When the building was built, it was still in the county and had the required permit from the county. Council Member Thomson asked about the situation of the lift station. Cunningham stated that there was a time when it was running over capacity as two users were not recycling water. If approved to a higher intensity of commercial development, there was a possibility that the lift station would operate over capacity. Council Member Thomason stated that if the zoning were IC-G, any heavy manufacturing would need a specific use permit. Cunningham replied correct that any additional heavy manufacturing would need a specific use permit. He also felt that a comprehensive plan amendment and zoning change would be premature as the infrastructure was not in place for the type of zoning district requested. Council Member Watts stated that if the property were rezoned, any new heavy industrial uses would need a specific use permit. However, with the kind of uses there now and if the property were rezoned, the heavy industrial uses would not have gone through the specific use permit process. Cunningham replied correct that all the heavy industrial uses there now were currently noncon orming. Mayor McNeill asked if no additional heavy manufacturing would be allowed if the zoning were EC-I. Cunningham replied that if the zoning were EC-I, of the 31 current uses, 24 would be conforming and remaining 7 would be nonconforming as long as they continued to operate and did not vacate. Mayor McNeill asked if a new rental could then be heavy industrial. Cunningham replied that it would depend on how long the property was vacant and how it was marketed per the Code. City of Denton City Council Minutes June 3, 2008 Page 13 The Mayor opened the public hearings for Items C and D. Patricia Adams, representing the property owners, spoke in favor of the request. Council Member Watts asked about the criteria of heavy manufacturing in the Denton Code. Adams replied that it was subject to staff interpretation and the definition of heavy uses. Council Member Watts stated that a specific use permit was the city's control of heavy manufacturing. Almost half of the uses on the property were already heavy manufacturing that did not have to go through the specific use permit process. Adams replied that the specific use permit process would be in place for any future heavy manufacturing. Without the requested zoning, heavy manufacturing would be locked. Mayor McNeill stated that part of the challenge if the use designation were not changed would be the restriction to lease the property. Adams replied correct that it would restrict expansion of heavy uses. There could be no more heavy manufacturing or expansion of existing uses. Mayor McNeill asked if the property were rezoned would a specific use permit be needed to expand the building. City Attorney Snyder stated that if even if the rezoning were approved, 40% would continue to be nonconforming. The issue was that even if rezoned, the heavy uses would be still be nonconforming. Under the definition, nonconforming uses could not be expanded without rezoning. Cunningham stated that a nonconforming use could be expanded or enlarged only with a Zoning Board of Adjustment approval. The Code defined a procedure to expand nonconforming uses an noncon orming structures. Larry Reichhart, Spring Brook Planning Group, spoke in favor. Council Member Watts asked that when the property was platted was it outside city regulations. Reichhart replied that the property was in the City's extraterritorial jurisdiction and should have been platted according to city regulations. Council Member Heggins felt that the industrial zoning would allow for more usage of the property. Reichhart stated that light industrial was the same in the employment zoning category as in the industrial zoning category. Heavy industrial was not allowed in the employment category. Don Frazier,1740 Westminster Street, Denton, 76205, spoke in favor. City of Denton City Council Minutes June 3, 2008 Page 14 The Mayor closed public hearings. Mayor McNeill asked if the facility north of this site was the County's facility and if heavy equipment went up the road. Cunningham replied correct that it was the County's maintenance facility. He responded to an earlier Council question regarding the size of the buildings. At the time of the annexation, the building size was approximately 116,060 square feet. Since then, the site had been expanded by 182,225 square feet and was now at 298,285 square feet. Mayor McNeill stated that there was no additional space for new buildings. Cunningham replied that the Code did allow for expansion through the Zoning Board of Adjustment. Council Member Watts stated that the expansion that prompted the annexation process was not a small expansion that went beyond the original property. The covenants ran with the land and were in total contradiction of the agreement. In his view this situation was not at the making of the city, especially after reading the annexation agreement. One of his main concerns was that all of this happened outside the scope of the city and additional development was 180,000 square feet. Mayor Pro Tem Kamp asked about the meeting requested between city staff and the applicant. Ron Menguita, City Planner, stated that staff had met with the applicant to address the questions asked by council. The applicant asked if staff could change their recommendation and staff responded no. Basically the applicants stated their position and staff stated theirs. Mayor Pro Tem Kamp stated that if the proposed changes were denied, heavy manufacturing would still remain. Menguita replied yes that it would be a legal nonconforming use. Mayor McNeill stated that Item C, the comprehensive plan amendment, would be considered first. Watts motioned, Thomson seconded to deny the change in the comprehensive plan. Council Member Moreno stated that the development had been in existence for a number of years and in operation in violation of the agreement. What would be the message to the applicant if this request was denied? City Attorney Snyder stated that it would remain nonconforming and operate as nonconforming Council Member Moreno questioned that the heavy manufacturing uses could not be expanded or marketed. City of Denton City Council Minutes June 3, 2008 Page 15 City Attorney Snyder stated that they could expand though a process at the Zoning Board of Adjustment. On ro11 vote to deny the comprehensive plan amendment, Heggins "nay", Kamp "aye", Moreno "nay", Thomson "aye", Watts "aye", and Mayor McNeill "nay". Motion failed on a 3-3 tie vote. Heggins motioned, Moreno seconded to approve the comprehensive plan amendment. On roll vote, Heggins "aye", Kamp "nay", Moreno "aye", Thomson "nay", Watts "nay", and Mayor McNeill "aye". Motion failed with a 3-3 tie vote. The request was denied. Mayor McNeill stated that as Item C failed, Item D would not be considered. Deputy Mayor Pro Tem Mulroy returned to the meeting. D. The Council was to continue a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for initial zoning to Industrial Center General (IC-G) zoning district classification and use designation; comprising approximately 33 acres of land located north of US 3 80 and west of Masch Branch Road, and legally described as Lot 2 of the Marriott Gardens Addition, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. The Planning and Zoning Commission recommended approval (7-0). (Z07-0001, Marriott Gardens Addition) This item was not considered. E. The Council held a public hearing and considered adoption of an ordinance of the city of Denton, Texas, regarding a proposed special sign district within a Neighborhood Residential mixed Use zoning district. The special sign district designation would allow for two multi-tenant ground signs to serve the Hickory Creek Plaza shopping center with the exception of three lots. The subject shopping center was located on the southeast corner of Teasley Lane (F.M. 2181) and Hickory Creek Road in the City of Denton, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. The Planning and Zoning Commission recommended approval (5-1). (SD08-0001, Hickory Creek Plaza) Council Member Heggins left the meeting. The Mayor opened the public hearing. Mulroy motioned, Kamp seconded to postpone consideration and continue the public hearing to the June 17th city council meeting. On roll vote, Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor McNeill "aye". Motion carried unanimously. F. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Downtown Residential 1 (DR-1) zoning district classification and use designation to a Downtown Commercial General (DC-G) zoning district classification and use designation; the area for the zoning change encompasses 0.255 acres of land located at the northeast corner of Carroll Boulevard and Eagle Drive, and is legally described as parcels 161 and 162 of the W. Loving Survey (Abstract 759), in the City of City of Denton City Council Minutes June 3, 2008 Page 16 Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. The Planning and Zoning Commission recommended approval (6-0). (Z08-0001, Access 1St Capital Bank) Mayor Prom Tem Kamp left the meeting with conflict of interest. Mark Cunningham, Director of Planning and Development, presented the staff report for both Items F and G. He stated that Item F was a request for a zoning change from DG-1 to DC-G and Item G was a request for a specific use permit for adrive-through. Staff was recommending approval of both Items F and G as did the Planning and Zoning Commission. Council Member Heggins returned to the meeting. The Mayor opened the public hearings for Items F and G. The following individuals spoke during the public hearings: Larry Reichhart, representing the developer, spoke in favor. Bob Clifton, 730 Wainwright, Denton, expressed concerns about the site. Reichhart was allowed a five minute rebuttal. He stated that the traffic flow was adequate for the proposed usage and they were currently working on the drainage flow. The Mayor closed the public hearing The following ordinance was considered: N0.2008-119 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM A DOWNTOWN RESIDENTIAL 1 (DR-1) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO A DOWNTOWN COMMERCIAL GENERAL (DC-G) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION; THE AREA FOR THE ZONING CHANGE ENCOMPASSES 0.255 ACRES OF LAND LOCATED AT THE NORTHEAST CORNER OF CARROLL BOULEVARD AND EAGLE DRIVE, AND IS LEGALLY DESCRIBED AS PARCELS 161 AND 162 OF THE W. LOVING SURVEY (ABSTRACT 759), IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. Watts motioned, Thomson seconded to adopt the ordinance. On roll vote, Heggins "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor McNeill "aye". Motion carried unanimously. G. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, approving a Specific Use Permit to allow a drive through associated with a bank on approximately 3.185 acres of land, generally located at the northeast corner of Carroll City of Denton City Council Minutes June 3, 2008 Page 17 Boulevard and Eagle Drive, and is legally described as Lot 1, Block A of the Myrtle Street Addition, and parcels 161, 162, 163, 164, 165, 166,167,180, and 181 of the W. Loving Survey (Abstract 759), in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. The Planning and Zoning Commission recommended approval (7-0). (507-0019, Access 1St Capital Bank) The public hearing for this item was held in conjunction with Item F. The following ordinance was considered: N0.2008-120 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USE PERMIT TO ALLOW A DRIVE THROUGH ASSOCIATED WITH A BANK ON APPROXIMATELY 3.185 ACRES OF LAND, GENERALLY LOCATED AT THE NORTHEAST CORNER OF CARROLL BOULEVARD AND EAGLE DRIVE, AND IS LEGALLY DESCRIBED AS LOT 1, BLOCK A OF THE MYRTLE STREET ADDITION, AND PARCELS 161, 162, 163, 164, 165, 166, 167, 180, AND 181 OF THE W. LOVING SURVEY (ABSTRACT 759), IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. Watts motioned, Heggins seconded to adopt the ordinance. On roll vote, Heggins "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor McNeill "aye". Motion carried unanimous y. Mayor Pro Tem Kamp returned to the meeting. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. The Council considered nominations/appointments to the city's Boards and Commissions. There were no nominations/appointments at this meeting. B. Citizen Reports 1. Council had a review of the procedures for addressing the City Council. 2. Council received citizen reports from the following: A. Marc Moffitt regarding the Development Code and the single family residence at 1525 Knight Street. Mr. Moffitt discussed dealing with the Development Code and the development of a lot on Knight Street. Staff had been very helpful in this situation. He had been incorrectly told to City of Denton City Council Minutes June 3, 2008 Page 18 apply for a variance and a specific use permit which when the error was discovered, he did not receive all of his fees back. His issue with the Development Code was that he was required to install a fire hydrant at his expense at $5,000. He felt (1) the City staff was great, (2) the Code continued to be confusing even to staff members; (3) the Code did not allow staff to make recommendations in situations where things were not right, and (4) questioned how much work was left to be done on the Code. Mayor McNeill indicated that there was a mandatory review of the Code every three months. He asked Mr. Moffitt if he had gone to the Planning and Zoning Commission with his concerns. Moffitt stated that he was waiting to go to the Construction Advisory and Appeals Boards. He wanted to try and resolve the issue before he went that route. B. Ross Melton, Jr. regarding constitutions and code enforcement and awe site. Mr. Melton was not present at the meeting. C. Nell Yeldell regarding tree limbs in electrical and phone lines. Ms. Yeldell was not present at the meeting. C. New Business and Announcements The following items of New Business were suggested by Council for future agendas plus Counci announcements: • Deputy Mayor Pro Tem Mulroy asked for afollow-up on Mr. Moffitt's citizen report. He asked the City Manager to investigate the fees that were not fully refunded. He suggested staff use this case to relook at the Code and work on possible changes with a report back to Councl . • Council Member Watts also commented on the Moffitt presentation stating that the problem needed to be corrected relative to a single family home. A hydrant in this type of situation would benefit an entire neighborhood rather than just one residence. • Mayor McNeill commented on the presentation this afternoon at the MLK, Jr. Recreation Center of the pictures /drawings of Dr. King and thanked Council Member Heggins and Carolyn Phillips for their work. • Council Member Heggins noted that the pictures for the Center had been donated by the SEDNA group. • Council Member Heggins requested an update on the red light situation at Morse Street as noted by Ms. Phillips. City of Denton City Council Minutes June 3, 2008 Page 19 D. City Manager's Report City Manager Campbell did not have a report for Council. E. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. F. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. With no further business, the meeting was adjourned at 8:56 p.m. PERRY R. MCNEILL MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS