September 9, 2008 Minutes
CITY OF DENTON CITY COUNCIL MINUTES
September 9, 2008
After determining that a quorum was present, the City Council of the City of Denton, Texas
.
convened in a Work Session on Tuesday, September 9, 2008 at 4:30 p.min the Council Work
Session Room at City Hall.
PRESENT: Mayor Burroughs; Mayor Pro Tem Kamp; Council Members Heggins, Moreno,
Mulroy, Thomson, and Watts.
ABSENT: None
1.Staff responded to requests for clarification of agenda items listed on the agenda for
September 9, 2008.
Council Member Mulroy requested an amendment to the minutes of July 15, 2008. He requested
a sentence be added to Item 4A regarding Impact fees - “It was Management’s intention to
further evaluate the large water meter sizes for equitable charges.” He also requested the
documentation that the Oversight Committee recommended Jerry Mohelnitzky to the
Committee.
Mayor Burroughs questioned Item 3A on the Consent Agenda. He stated that the monthly
charges were close and asked how the winning bid was selected.
Tom Shaw, Purchasing Agent, stated that the award on the monthly rental rate was based on the
primary use of the equipment. The weekly rate was a reduction or adjustment rate.
Mayor Burroughs mentioned that it would be useful to include a note on which firm received the
bid.
2.The Council received a report, held a discussion and gave staff direction regarding the
proposed Tax Increment Financing (TIF) Reinvestment Zone for Denton downtown
redevelopment.
Linda Ratliff, Director of Economic Development, presented the purpose of a TIF district and the
City’s current position. There were two different types of TIFs. One was for a particular project
with outlined costs and a clear understanding of what to expect with the project. The second
type was more flexible. A Downtown TIF could detail certain projects but a problem was that
the City did not know when the private sector might come into play and would have an impact
on the community with limitations on specific projects. Both types of projects would have to
establish a board and those boards would have to come to Council with a financing and project
plan. The benefit of a TIF was that the City would have a partner with the County. The City had
been discussing a TIF for the downtown area for a number of years.
At the June 3, 2008 meeting the Council requested additional information on the composition
and valuation of the residential properties in the proposed downtown TIF district. Staff had since
calculated the residential acreage based on Denton County Central Appraisal District tax rolls.
The Texas Tax Code indicated that no more than 10% of the property within the reinvestment
zone could be used for residential purposes. Staff calculated the total residential acres
percentage at 9.60%.
Mayor Burroughs questioned the purpose of the 10% residential limitation.
City of Denton City Council Minutes
September 9, 2008
Page 2
Ratliff replied that it was primarily due to the fact that the TIF was for commercial property
development.
Mayor Burroughs asked if multifamily was considered commercial or residential.
Ratliff replied that it was commercial because it was revenue producing property. She continued
that the Council had also asked for information regarding the City’s ability to capture the debt
service portion of the tax rate in a TIF. Staff has confirmed that a TIF was one condition under
which the full tax rate may be dedicated to another fund. She presented an estimated schedule of
the project and indicated that if the Council wanted the base year of 2008, the Council would
have to move forward within the next several months.
Council Member Mulroy indicated that he had reservations on the most direct way to develop the
downtown. Dollars in the TIF fund could not be moved to something else.
Council Member Watts asked if the dollar amount of the TIF was capped.
Ratliff replied that the percentage was set and the boundaries of the TIF were detailed in an
ordinance and that the dollar amount would be capped.
Council Member Watts asked if the $46 million was the official recommendation for the dollar
amount of the proposed TIF or an example of the revenue that would be generated.
Ratliff stated that the dollar amount was determined by the project percentage.
Council Member Watts felt that the 2.5% was low. He also had a concern with the boundaries.
The catalyst project concepts were good but were in the downtown proper but the boundaries
were quite larger than that. He needed to understand how the downtown got so big when the
projects were in the downtown proper area. A TIF property tax owner would be paying for
infrastructure such as poor streets. Dollars would be captured to improve downtown streets but
not the rest of the city.
Ratliff replied that the recent Cedar Street project was an example of having to redo
infrastructure after starting a project. Staff was working on identifying kinds of projects for the
TIF.
Council Member Mulroy expressed concern on how to use the TIF money. Some projects could
be city projects and TIF money was not needed to do those. An example was that utility rates
were already structured for money to replace lines throughout the city. Rate payers were already
paying that money. With those types of projects a TIF would be pulling money out of the
general fund when there should already be money in funds through utility rates for those
projects.
Ratliff replied that at this point it was the intent to not disallow those types of projects because if
they were not in the language for the TIF, the fund could not be used for that type of project.
City of Denton City Council Minutes
September 9, 2008
Page 3
Council Member Watts indicated that there seemed to be inconsistencies in clear policies. An
example was parking. There were no definite policies for downtown parking. Multifamily
development was also an issue.
Council Member Mulroy stated that he didn’t want the TIF to drive policy but rather have a
policy in place and then do the TIF.
Ratliff stated that the outlined projects were purposely left general to address projects as they
arose.
Mayor Burroughs felt there was a need for discussion regarding prioritization of projects which
had impeded the development of the downtown area.
Council Member Thomson stated that an advantage of a TIF was the joint participation with the
County but at this point, it was not known if they would participate.
Ratliff stated that the County would also want to know level of city funding before they
committed to the project.
Mayor Pro Tem Kamp stated that she was in favor of the concept going forwarded with clear
direction.
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Ratliff stated that the TIF would have to be in place by December 31 with county approval.
Council Member Mulroy felt that the policy issues should be settled before starting with the
development of the TIF. Another element was using the funds appropriately. A 2 cent tax
increase was suggested in the next several years for everyone which would only help the
downtown area.
Mayor Burroughs felt that Council was giving staff direction for a dedicated work session with
representatives of the EDB Board and Downtown Task Force to work on long term plans to
piece together different aspects of the TIF. Include TIFs already done by other cities, projects
costs for specific purposes, clarification of policy issues associated with the TIF such as parking,
utility lines and multifamily development.
Council Member Watts requested examples on how projects would be funded without a TIF.
3.The Council received a report, held a discussion, and gave staff direction regarding the
2008-09 Budget, Capital Improvement Program, and Five-Year Financial Forecast.
Bryan Langley, Director of Finance, reviewed the information included in agenda packet.
Council Member Watts asked staff to look at the five year financial forecast and include how a
TIF might impact the financial forecast.
Following the completion of the Work Session, the City Council convened in a Closed Meeting
at 5:45 p.m. to consider the specific items listed below.
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September 9, 2008
Page 4
1.Closed Meeting:
A. Consultation with Attorney – Under Texas Government Code Section 551.071.
1. Received, considered and held a discussion related to a briefing from
City’s Attorneys, relating to claims, potential claims, and settlement
thereof for matters pertaining to JNC Partners Denton, LLC v. City of
Denton, including legal advice related to future annexation, zoning,
subdivision controls, plat applications, annexation plans, development
agreements, annexation agreements, service plans, utility service, water
rights, permitting and other legal issues related to the future development
of land, as proposed by JNC Partners Denton, LLC.
B. Deliberations Regarding Certain Public Power Utilities: Competitive Matters –
Under Texas Government Code Section 551.086;
1. Received information from staff, discussed, deliberated and considered
approval of competitive public power information and financial matters
from Staff regarding and including the proposed Interconnection
Agreement and the Power Purchase Agreement by and between the City
of Denton, Texas and Denton Power, LLC.
C. Deliberations Regarding Certain Public Power Utilities: Competitive Matters –
Under Texas Government Code Section 551.086.
1. Receive competitive public power information from staff in the form of a
proposed operating budget for Denton Municipal Electric (“DME”) for the
upcoming fiscal year, including without limitation, revenues, expenses,
commodity volumes, and commitments, and the direction of DME; and
discuss, deliberate, consider adoption of the budget and other matters, and
provide staff with direction regarding such matters.
Item C. 1. was not discussed in Closed Session.
Regular Meeting of the City of Denton City Council on Tuesday, September 9, 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
There were no proclamations/presentations for this meeting.
City of Denton City Council Minutes
September 9, 2008
Page 5
3. CONSENT AGENDA
Kamp motioned, Thomson seconded to approve the Consent Agenda and accompanying
ordinances with the noted modification in the July 15, 2008 minutes. On roll vote, Heggins
“aye”, Kamp “aye”, Moreno “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye”, and Mayor
Burroughs “aye”. Motion carried unanimously.
A.2008-197 - An ordinance accepting competitive bids and awarding an annual
contract for the rental of heavy equipment for various City of Denton
departments; providing for the expenditure of funds therefor; and providing an
effective date (Bid 4121–Annual Contract for Rental of Heavy Equipment
awarded to the lowest responsible bidder meeting specification for each item in
the estimated annual amount of $750,000).
B.2008-198 - An ordinance authorizing the City Manager or his designee to execute
a Professional Services Agreement with the firm of Chiang Patel and Yerby, Inc.
to provide design services for the City of Denton Pecan Creek Water Reclamation
Plant Peak Flow Storage Basin and Pump Station; authorizing the expenditure of
funds therefore, and providing an effective date (File 4132 in an amount not to
exceed $160,188). The Public Utilities Board recommended approval (5-0).
C.2008-199 - An ordinance of the City of Denton, Texas providing for, authorizing,
and approving the expenditure of funds for the purchase of traffic controller and
video equipment for the City of Denton Traffic Department, 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 4154–
to Paradigm Traffic Systems, Inc. in the amount of $350,000).
D.2008-200 - An ordinance of the City of Denton, Texas providing for, authorizing,
and approving the expenditure of funds for the rebanding upgrade of basic analog
radios to digital comparable radios for the City of Denton Public Safety and
Utility divisions, 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 4131–to Motorola, Inc. in the amount of
$146,033.40). The Public Utilities Board recommended approval (5-0).
E.2008-201 - An ordinance of the City of Denton, Texas approving a third
amendment to an Economic Development Program Grant Agreement dated
November 27, 2001 between the City of Denton and Denton Crossing Partners
Ltd, which was duly assigned to DCTIRZ, L.L.C.; and providing an effective
date.
F.Approved the minutes of:
July 15, 2008
August 4, 2008
August 5, 2008
City of Denton City Council Minutes
September 9, 2008
Page 6
August 7, 2008
August 12, 2008
August 19, 2008
4. PUBLIC HEARINGS
A.The Council held a public hearing on a proposal to adopt a tax rate of $0.66652
per $100 valuation, which will exceed the lower of the rollback rate or the effective tax rate.
Mayor Burroughs read the following statement:
“The City Council of the City of Denton, Texas will vote on a proposed tax rate of
$0.66652 for each $100 of taxable value that will increase total tax revenues of the City
of Denton, Texas at a public meeting to be held on September 23, 2008 at the City
Council Chambers in City Hall, 215 East McKinney Street, Denton, Texas 76201
commencing at 6:30 p.m.”
Bryan Langley, Director of Finance, presented information on both public hearings. The first
public hearing was on the proposed tax rate. Because the City’s proposed tax rate exceeded the
effective tax rate, two public hearings were required to take place prior to the adoption of the
budget on October 1, 2008. He reviewed the meetings that were held regarding the proposed
budget. There was no tax rate increase in the proposed budget. The second public hearing was
to receive citizen input on the proposed budget.
The Mayor opened the public hearing.
The following individual spoke during the public hearing:
Elma Walker, 9805 Grandview Drive, Denton, 76207, was opposed to any type of tax
increase. She presented information on surrounding cities and their tax rates. All were lower
than Denton’s and she urged Council to keep the budget lower next year.
The Mayor closed the public hearing.
B.The Council held a public hearing and received citizen input on the 2008-09
proposed budget.
The Mayor opened the public hearing.
Bob Clifton, 730 Wainwright, Denton, 76201, stated that other cities were laying people off and
questioned why Denton was hiring people. He also questioned why the City was using reserves
to balance the budget and felt that there was a need to look closer at the budget.
The Mayor closed the public hearing.
City of Denton City Council Minutes
September 9, 2008
Page 7
5. ITEMS FOR INDIVIDUAL CONSIDERATION
A.The Council considered approval of a resolution of the City Council of the City of
Denton, Texas, announcing that it will vote on a tax rate that will result in a tax revenue increase
at its meeting of September 23, 2008; providing for publication of a notice of tax revenue
increase; providing a ratification clause; and providing an effective date.
Bryan Langley, Director of Finance, stated that the Texas Property Tax Code required this
resolution. He detailed the effective tax rate and rollback rate. The resolution would provide
formal action for the intent to vote on the tax rate on September 23, 2008.
The following resolution was considered:
NO. R2008-032
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
ANNOUNCING THAT IT WILL VOTE ON A TAX RATE THAT WILL RESULT IN
A TAX REVENUE INCREASE AT ITS MEETING OF SEPTEMBER 23, 2008;
PROVIDING FOR PUBLICATION OF A NOTICE OF TAX REVENUE INCREASE;
PROVIDING A RATIFICATION CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
Kamp motioned, Thomson seconded to approve the resolution. On roll vote, Heggins “aye”,
Kamp “aye”, Moreno “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye”, and Mayor Burroughs
“aye”. Motion carried unanimously.
B.The Council considered approval of a resolution of the City Council of the City of
Denton, Texas, announcing that it will vote on the Fiscal Year 2008-2009 Annual Program of
Services (Budget) for the City of Denton at its meeting of September 23, 2008; providing a
ratification clause; and providing an effective date.
Bryan Langley, Director of Finance, stated that City Charter and the Texas Government Code
required formal action after the public hearing on the budget to set the date to approve the
budget.
The following resolution was considered:
NO. R2008-033
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
ANNOUNCING THAT IT WILL VOTE ON THE FISCAL YEAR 2008-2009
ANNUAL PROGRAM OF SERVICES (BUDGET) FOR THE CITY OF DENTON AT
ITS MEETING OF SEPTEMBER 23, 2008; PROVIDING A RATIFICATION
CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
Mulroy motioned, Heggins seconded to approve the resolution. On roll vote, Heggins “aye”,
Kamp “aye”, Moreno “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye”, and Mayor Burroughs
“aye”. Motion carried unanimously.
City of Denton City Council Minutes
September 9, 2008
Page 8
Tabled
C. – Consider adoption of an ordinance regarding a development agreement
related to the deferment of perimeter road improvements. The approximately 2.6-
acre property is located at the southwest corner of West Collins Street and Locust
Street. The subject site is located within a Downtown Commercial General
Date tabled 8/19/08
(DC-G) zoning district. ()
This item was not considered.
Tabled –
D.Consider adoption of an ordinance of the City of Denton, Texas
prohibiting parking on school days from 7:30 a.m. to 3:30 p.m. on the south side
of Emerson Lane from its intersection with Woodhaven Lane to its intersection
;
with Brookfield Laneproviding a repealer clause; providing a savings clause;
providing for a penalty not to exceed $500 for violations of this ordinance; and
providing for an effective date. The Traffic Safety Commission recommends
Date tabled 8/19/08
approval (9-0). ()
This item was not considered.
Tabled
E. – Consider adoption of an ordinance of the City of Denton, Texas
prohibiting parking on school days from 7:30 a.m. to 3:30 p.m. on the north side
of Parvin Street from its intersection with Mercedes Road to its intersection with
;
McCormick Streetproviding a repealer clause; providing a savings clause;
providing for a penalty not to exceed $500 for violations of this ordinance; and
providing for an effective date. The Traffic Safety Commission recommends
Date tabled 8/19/08
approval (4-3). ()
This item was not considered.
Tabled
F.– Consideration of adoption of an ordinance of the City of Denton, Texas,
for a zoning change from a Agriculture (A), Industrial Center General (IC-G),
Neighborhood Residential 2 (NR-2), Regional Center Residential 1 (RCR-1),
Community Mixed Use Employment (CM-E), and Planned Development 138
(PD-138) zoning districts to the Inspiration Master Planned Community (MPC)
zoning district classification and use designation; the area for zoning change
encompasses 3,331 acres of land located on both sides of I-35W between Robson
Ranch Road and Vintage Boulevard and is legally described as certain tracts of
land in the E. Pizono Survey, Abstract Number 1269, G. Pettingale Survey,
Abstract Number 1041, J. Taft Survey, Abstract Number 1269, G. West Survey,
Abstract Number 1393, B.B.B. & C. Railroad Company Survey, Abstract Number
158, S. Pritchett Survey, Abstract Number 1021 and the McCutchin Lands known
as Pilot Knob Ranch 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. (MPC07-0001, Inspiration) The Planning and Zoning
(Date tabled 08/05/08)
Commission recommends approval (7-0).
This item was not considered.
City of Denton City Council Minutes
September 9, 2008
Page 9
G.The Council considered nominations/appointments to City boards and
commissions:
1. Animal Shelter Advisory Committee
2. Parks, Recreation and Beautification Board
3. Public Art Committee
Council Member Mulroy had nominated Dr. Gerry Veeder to the Animal Shelter Advisory
Committee.
Mulroy motioned, Kamp seconded to approve the nomination. On roll vote, Heggins “aye”,
Kamp “aye”, Moreno “aye”, Mulroy “aye”, Thomson “aye”, Watts “aye”, and Mayor Burroughs
“aye”. Motion carried unanimously.
There were no other nominations.
H. Citizen Reports
1.The Council reviewed the procedures for addressing the City Council.
2.The Council received citizen reports from the following:
A.Bob Clifton regarding the City budget.
Mr. Clifton felt another lawsuit was in order due to two 1960 ordinances regarding the electric
utility department’s financial records. The City was taking money out of the Electric
Department for the general fund which he felt was not according to the Charter. He felt those
two ordinances needed to be repealed which could be done with an election if not repealed by
Council.
I. New Business and Announcements
The following items of New Business were suggested or announcements made:
Council Member Heggins asked for information regarding gas well drilling. City Manager
Campbell indicated that he would provide Ms. Heggins with the ordinance detailing the
regulations.
Council Member Heggins announced that Saturday at 10:00 a.m. at the Martin Luther King,
Jr. Recreation Center the NAACP was sponsoring a city-wide free health fair.
Council Member Watts requested an update on the dirt work being done on Bonnie Brae on
the Rayzor Ranch property. He assumed it dealt with drainage improvements. City Manager
Campbell replied correct and staff would provide documentation to Council.
Mayor Burroughs commended the number of employees who volunteered during Gustav and
personal time spent volunteering.
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September 9, 2008
Page 10
J. City Manager’s Report
City Manager Campbell did not have a report for Council.
K. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the
Texas Open Meetings Act.
There was no continuation of Closed Meeting.
L. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the
Texas Open Meetings Act.
Heggins motioned, Kamp seconded the ratification of the action taken by the City Attorney
approving the extension of a tolling agreement in connection with Item 1. A. 1. on the City
Council agenda of September 9, 2008. On roll vote, Heggins “aye”, Kamp “aye”, Moreno “aye”,
Mulroy “aye”, Thomson “aye”, Watts “aye”, and Mayor Burroughs “aye”. Motion carried
unanimously.
With no further business, the meeting was adjourned at 7:18 p.m.
________________________________
MARK A. BURROUGHS
MAYOR
CITY OF DENTON, TEXAS
________________________________
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS