June 2, 2009 Minutes
CITY OF DENTON CITY COUNCIL MINUTES
June 2, 2009
After determining that a quorum was present, the City Council convened in a Work Session on
Tuesday, June 2, 2009 at 1:00 p.m. in the Council Work Session Room at City Hall.
PRESENT: Mayor Burroughs; Mayor Pro Tem Kamp; Council Members Engelbrecht,
Gregory, Heggins, Mulroy, and Watts.
ABSENT: None
1.The Council received a report, held a discussion and gave staff direction regarding the
Five Year Financial Forecast. (1:00 p.m. – 3:00 p.m.)
City Manager Campbell stated that this item would provide a discussion regarding the five-year
financial forecast. Council had seen much of this information in a preliminary status briefing.
This was not a budget presentation but a presentation on the five-year forecast. The City was in
good financial status but some significant changes in strategies from the past might be necessary.
If so, it might result in a decrease in many city department programs including Council
programs. Staff was asking that Council ask questions throughout the presentation for direction
purposes.
Bryan Langley, Director of Finance, stated that the overview and purpose of his presentation was
to review the FY 2008-09 long-term plan; discuss possible changes to the assumptions for the
long-term financial forecast; review the April preliminary FY 2009-10 financial forecast; discuss
key aspects of the General Fund budget and the process underway to resolve budget issues;
identify and discuss major budget decisions; evaluate potential GO/CO bond issuances in the
future; discuss the status of the budget development for utility funds; and the next steps needed
in the process.
FY 2008-09 Assumptions and Review of 2008-09 Financial Forecast - Langley reviewed the
appraised value growth which was projected at 3.3% in 2009; 4% in 2010 and 7% in the
remaining three years. The sales tax growth was projected at 2% for the first two years and 5%
for the last three years. The assumptions included a 4% merit increase for civilian employees,
4% for the out years for Civil Service, a 6% increase in health insurance rates, no change in the
tax rate for the first two years and a 2.5 cent tax increase in the last three years.
Mayor Burroughs asked what percent of the budget included salaries.
Langley replied 71% of the budget was for salaries.
Adopted 2008-2009 long term plan – The adopted 2008-2009 adopted plan included a 2.5 cent
tax increase, new funding of $.5 million added for each year, an ending fund balance at $11.7
million in the last year which was a decline from 28% to 11% over the five year period.
Changes in Key Assumptions - (1) reduce the appraised value growth assumption from 4% to
0% in 2009-2010 which would incorporate the anticipated loss of revenue associated with
Presbyterian Hospital; (2) reduce the sales tax growth assumption from 5% to 2% for 2010-2011
forward; (3) incorporate an additional 1% for franchise fees for Denton Municipal Utilities; (4)
reduce expected building permit and inspection fee revenue for 2009-2010 and 2010-2011; and
(5) these adjustments were based on preliminary information with additional changes to be
considered during the upcoming process.
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June 2, 2009
Page 2
Appraised Value Changes – Langley indicated that the May preliminary appraised value had
changed and reviewed the history of the city’s appraised values since 2004. The preliminary
number was $7.03 billion which was a 7% increase from the past year. It also included the
increase to $30,000 for the over 65 exemption but did not yet include the loss of Presbyterian
Hospital from the tax rolls. A reduction in sales tax growth was assumed from 5% to 2%
beginning in 2011 which reduced income by $7.1 million over the five-year planning horizon.
The combined impact of the appraised value and the sales tax assumption adjustments resulted in
a decline of approximately $24 million over the five-year planning horizon.
Other Items to be Considered – (1) the financial plan assumed an additional $500,000 per year
for new and/or enhanced programs which equated to $7.5 million over the five-year planning
horizon, (2) slight adjustments to the appraised value, compensation, sales tax, and other
assumptions could have a profound impact on the plan, (3) the financial plan should not be
considered in absolute terms as the plan should guide decision making by providing a general
forecast of the future, and (4) the financial plan was still in its infancy and much would be
needed to be done before the plan was completed in late July.
FY 2008-09 Actions Already Taken - (1) the 2008-09 adopted budget included funding for 22
new positions; however due to concerns over the forecast, management had not filled 13 of those
positions and removed them from the long term plan which resulted in approximate savings of
over $1 million in 2008-09, (2) management had implemented a soft hiring freeze and all vacant
positions required ACM approval to be filled, and (3) additional actions might be necessary as
projections were finalized.
Management Plans Underway - (1) management had requested 5% reduction options for each
department which had been submitted in increments of 1% to the City Manager, (2) a goal was to
reduce expenditures in 2009-10 by at least $3.2 million or 3.5% of forecasted expenditures with
the intent to hold the line at a minimum on expenses at the 2008-09 funding level of $89.325
million, and (3) an efficiency team, comprised of mid-level managers with a goal to reduce costs
and improve efficiency across functional areas and departments, would also be formed to achieve
additional savings over the next 12-18 months.
Key Budget Decisions
GASB Statement Number 45 – GASB 45 applied to all governmental entities that offered
retiree medical and other benefits. Compliance with GASB pronouncements was required to
receive an unqualified (clean) audit opinion and maintain bond rating. The focus was for
accounting and financial reporting of postemployment benefits other than pension. GASB 45 did
not require any action or funding. The City had previously set aside $2.3 million for this purpose
which represented approximately 3 years of the annual required contribution (ARC) funding
requirement. Unless an irrevocable trust fund was established, the City’s financial statements
would report an unfunded actuarial liability. The 2008-09 long term plan included $100,000 per
year in GASB 45 funding for the General Fund and $100,000 per year from Utilities. The
Audit/Finance Committee approved this approach pending further research and information
concerning our retiree costs. Staff was recommending using the “pay as you go approach”. ARC
funding requirements significantly exceed cash outlay costs for the foreseeable future. In the
future, the differential between PAYGO and ARC was not expected to be significant enough to
warrant a pre-funding approach. In addition, it was recommended that the existing $2.3 million
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Page 3
set aside for GASB 45 be transferred to the health insurance fund which would improve the fund
balance and provide flexibility in meeting funding requirements in the future. Staff had
discussed this approach with the City’s financial advisors and no impact was anticipated from a
rating agency standpoint.
Mayor Burroughs asked if there were other alternatives to consider for the long-term such as
funding more than the minimum to push the cross over point between PAYGO and ARC further
out into later years.
Langley stated that the City could make half or quarter payments of the ARC funding if it
wanted to but would still not received any credit for doing so. Such a plan would result in an
internal service fund which would require a mechanism to pay out of an internal service fund.
Mayor Burroughs stated that with either PAYGO or ARC, it would not be reported in GASB 45
and the City would not receive credit on its financial statement for the financing.
Langley replied correct but the City would spend time with the bond agencies to inform them on
how they were dealing with the funding.
Council Member Mulroy stated that if Council did not want to use the staff recommendation they
could look at other information or means to carve out retirees into their own health insurance.
Langley stated that if that were done, the insurance cost for retirees would rise dramatically.
Council Member Gregory asked about the city funding for retiree health insurance.
Langley stated that the retirees pay the full premium of the plan but could receive up to $100 per
month from the city depending on length of service.
City Manager Campbell stated that the City had set up $2.3 million in anticipation to address this
issue with GASB 45 and was now recommending a “pay as you go” plan to solve that gap to
ARC.
Council Member Watts stated that $2.3 million was set aside for GASB 45 and if the City was
not going to follow that plan the money could be transferred to the health insurance fund or
wherever the Council decided.
Langley stated that all departments contributed to that money and that is was collected with the
thought of health insurance.
Mayor Burroughs stated that the “pay as you go” plan would be reviewed every two years. He
felt the problem was how much to put in the health insurance plan as putting the full $2.3 million
was going well past the recommended level of $1.4 million. He felt the rest of $2.3 million
should not go in that fund as that was not the purpose of the fund. The creation of a separate
fund such as a health insurance rate increase buffer fund would be different. A health insurance
fund was to help with rate increases. The rest of the money should be used to help with the
budget.
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Council Member Mulroy felt that the money should stay where it was and going forward, use it
to help with the budget.
Mayor Burroughs suggested reducing the general fund contribution by $2.3 million and not use it
to create a reserve.
Langley stated that was the suggestion. The full amount would not be used but a portion to draw
down the amount needed for insurance.
Council Member Engelbrecht stated that the concept of self-insurance was new to the City.
There wasn’t a large historical data base to draw from. If the projections proved wrong, the fund
could be used quickly to help with any deficit.
Consensus of the Council was to move forward with the staff recommendation but to apprise
Council of the amount of the subsidy and how it would be allocated in terms of what would
happen to the amount over the $1.4 million.
Compensation - Over the past several years, Council had emphasized the need to pay
employees based on performance and at a competitive level with the market. With this in mind,
a new compensation plan was implemented in 2007 for non-civil service employees.
Considerable progress had been made to reduce turnover and associated costs. The 2008-09
five-year forecast included an average of 4% in merit based pay increases each year. Due to the
economic conditions, staff was considering lowering this amount in the near term and was
considering the extent to which any pay increase was feasible for 2009-10 with future increases
to be dependent on economic conditions and the job market. Caution should be exercised since
lower compensation could lead to retention/recruitment difficulties as costs would be incurred
due to higher turnover rates and less qualified staff.
Council Member Mulroy stated that the cost to recruit and train a new employee was probably
half a year salary. A well thought out compensation plan paid for its self. He cautioned not to
have a knee jerk reaction in making adjustments but stay in the spirit to have employees look to
Denton as a profession and not just for a few years. Currently the City had a successful plan and
suggested taking a hard look at going to a 0% compensation increase.
Mayor Pro Tem Kamp stated that it was not absolute at this time that there would not be
increases.
City Manager Campbell stated that staff was looking at all options. They had already done some
market analysis such as where Denton stood in the market and was looking at what other local
communities were planning to propose about employee increases.
Council Member Heggins felt that Denton should set its own priorities rather than looking at
other cities. If the City cut too low, people would leave.
Texas Municipal Retirement System (TMRS) - Langley stated currently Denton had an
employee deposit rate of 7% of compensation, a matching ration of 2-1 city to employee, and 5
years for vesting. The number of retirees was 423 with the number of members at 1,371 and
contributing members at 1,014. In 2008, Council received a detailed presentation regarding
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Page 5
funding challenges associated with TMRS. Council considered paying the full actuarial rate in
the next fiscal year, phasing in the new rate over time or changing the benefit structure to reduce
the contribution rate. Council directed staff to maintain benefits and phase in the new actuarial
rate over the next eight years. Phased in rates were incorporated into the long term financial
plans. TMRS had changed its actuary and some assumptions included in the plan. The final rate
may now approach 19.3 % by 2016.
Franchise Fee Summary – The fee was currently set at 4% of the gross revenues for
DMU. ECA revenues were capped for the purpose of calculating the franchise fee in DME.
Staff was recommending that the DMU franchise fee be increased to 5% effective October 1,
2009. Higher franchise fees were being incorporated into utility budgets and would be consistent
with other franchise fees in the City. The CoServe rate was currently 4% but staff was
recommending increasing this rate to 5% when the franchise agreement expired in December
2009.
Council Member Mulroy asked for a five-year history on franchise fees and administrative
transfers. He also asked what other benchmark cities were using for charging franchise fees for
outside service providers.
Council Member Watts expressed concern that the City owned DME and did not want to take
from one account to give to another account.
- Health insurance was expected to increase at a rate of approximately
Health Insurance
10% per year with only a 6% cost increase included in the long term plan. Staff was
recommending that the City attempt to absorb the additional costs by pursuing the following (a)
create an employee health services clinic which would provide employees and the city an
opportunity to lower costs while maintaining quality services, (b) consider increasing insurance
co-pay costs for employees related to specialists/ER visits, and (c) review the possibility of
increasing employee insurance premiums. Future cost increases may also be partially absorbed
by using GASB 45 fund balance reserves.
Council Member Watts stated that if 6% was being used in the long term plan, he would feel
more comfortable using 10% instead of the 6% to get a more accurate picture.
Langley stated that potential increases in specialist and ER visits could make up approximately
3% of the anticipated gap between the 6% and 10%.
– the property tax rate was comprised of two components; one for
Property Tax Rate
operations and maintenance which was deposited into the General Fund and one for GO debt
service which was deposited in the GO debt service fund. No increase in the tax rate was
proposed for 2009-10. Future year appraised value growth estimates might be too aggressive in
the near term and a 0% assumption may be appropriate for 2010-11. A 2.5 cent tax rate increase
was planned for 2010-11.
Additional Items – Additional items to consider included (1) the impact of new service,
position and other funding requests, (2) $5.7 million of supplemental packages and 27 full-time
employees were proposed, (3) potential reduction options proposed by operating departments
with a General Fund reduction of $0.9 to $4.6 million, and (4) development of a CIP budget
which would be separated from the operating funds with other funds such as CDBG and Tree
Mitigation included in the annual budget document.
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GO Debt Fund Key Revenue Sources – the property tax was the principal revenue source for the
GO Debt service fund. Transfers from other funds also represented a significant revenue source.
Interest income and delinquent tax revenue also provided additional resources.
2008-09 Financial Plan Assumptions – (1) there would be no tax rate increase for the GO Debt
Service Fund with a tax increase planned for the General Fund in 2010-11, (2) the appraisal
growth assumption mirrored those in the General Fund with 4% in 2009-10 and 7% in 2010-13,
(3) the financial plan attempted to maintain a constant tax rate despite fluctuations in the debt
service requirement with fund balance levels managed to offset potential tax rate increases, (4)
lower property tax growth assumptions had a significant impact on debt service capacity, (5)
debt issuances planned in 2008-09 included the remaining $10.3 million GO debt to be issued
from the 2005 program and an additional $15.4 million in COs to be issued for a variety of
projects including the construction of a public safety training facility, (6) in future years $4.0
million in COs would be issued each year of the plan and (7) an adopted long term financial plan
which assumed a GO bond program of $45 million.
FY 2008-09 Bond Issuance – in January 2009, Council postponed a planned issuance of $25.7
million in GO/CO debt due to economic concerns. The intent was to revisit the decision once
preliminary appraised values were known. As a result of the preliminary values, staff did not
recommend any additional debt be issued in FY 2008-09 and future debt issuances would be
considered in context of the long term financial plan.
FY 2009-10 and Beyond – the assumption would be a no tax increase for debt service with a 2.5
cent increase planned in FY 2010-11 for operations and maintenance. $10.3 million in GO
bonds from 2005 had not been issued and should be given priority to issue this voter approved
debt. Secondary priorities would be to issue planned debt for vehicles, building maintenance,
and the new Public Safety Training facility. A new general obligation bonds program would be
developed as economic conditions permitted.
Alternate Long Term Plan with Revised Growth Assumptions – Option A - included the planned
$10.3 million GO and $4.3 million CO sale in 2009-10; $11.1 million for the training facility in
2010-11 and new $45 million GO program with a November 2010 election.
Alternate Long Term Plan with Revised Growth Assumptions – Option B – included the planned
$10.3 million GO and $4.3 million CO sale in FY 2009-10; the $11.1 million for the training
facility in 2010-11; and new $45 million with a 2012 November election.
GO Debt Service Recommendation – at this point, staff was recommending issuing the
remaining $10.3 million GO and $4.3 million CO bonds in Spring of 2010; the debt for the
Public Safety Training Facility might be sold in Spring 2011 but would depend on the economic
forecast, the future sign and timing of GO bond program would be dependent on economic
factors, and an additional $10 to $15 million in debt might be needed in the near future for the
local match on TxDOT projects.
Mayor Burroughs stated that there was nothing noted for stimulus funds.
Langley stated that the figures would be adjusted if the City received stimulus funds.
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Utility Fund long term plans – the Public Utilities Board would be reviewing the financial plans
for all utility funds in June/July. Long term plans would be recommended for approval to
Council. Staff recommendations did not include any utility rate increases for 2009-10.
Compensation increases would mirror those in the General Fund, but any changes would be
applied uniformly across all funds.
2. Staff responded to requests for clarification of agenda items listed on the agenda for June
2, 2009.
Paul Williamson, Real Estate Manager, stated that the lease for ARG East Hickory Partners had
been simplified to a 30 year term instead of a 10 year lease with 2 additional 10 year leases.
City Attorney Burgess noted that on page 7, Section D of the lease the word “tenant” would be
struck from the agreement.
3.The Council received a briefing, held a discussion and gave staff direction on the
proposed amendments to Subchapters 6, 12 and 13 of the Denton Development Code (DDC) to
clarify standards and regulations regarding Specific Use Permit (SUP) revocation, yard
measurements, accessory buildings and structures general regulations, expansion applicability,
preservation and mitigation requirements for in-fill lots, light and glare performance
requirements, and site development requirements for residential buildings. This is a staff initiated
Code amendment. (DCA08-0002) On September 24, 2008, the Planning and Zoning
Commission conducted a public hearing and recommended approval of the proposed
amendments (6-0).
Mark Cunningham, Director of Planning and Development, stated that the proposed amendments
would clarify standards and regulations regarding SUP revocation; architectural projections;
accessory buildings and structures general regulations; expansion applicability; preservation and
mitigation requirements for in-fill lots; light and glare performance requirements; and site
development requirements for residential buildings.
SUP Revocation – the current SUP was tied to the issuance of a building permit; however, not all
projects requiring a SUP required an approved building permit. Staff also determined that the
time limit of 18 months was inconsistent with other time limits in the DDC such as preliminary
plats and final plats which expire 24 months after approval. The revised language would have
the SUP expire in 24 months to be consistent with all other time frames in the Code.
Architectural Projections – the current language did not address certain types of common
architectural projections within minimum setback requirements. The recommendation added
language that architectural projects of window sills, bay or box windows, belt courses, cornices,
and other projecting architectural features, except for roof overhangs and eaves, would not
extend more than 12 inches into the required front, side or rear yard setback.
Accessory Buildings and Structures General Regulations – As currently written, the requirements
related to accessory building or structures was ambiguous and resulted in differences in
interpretations. The recommendation was to change the language to the combined square
footage of the principal structure and accessory structures would not exceed the zoning district
maximum lot coverage specified in Subchapter 5. The accessory structures, with the exception
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June 2, 2009
Page 8
of non-residential detached carports, gas station canopies, gas station car wash facilities and
security/entry booths, would be prohibited in front or side yards. Accessory structures would be
setback a minimum of three feet from all property lines associated with its permitted location.
All accessory structures that required a building permit would be architecturally compatible with
its associated principal structure and if not architecturally compatible would be screened from
view from abutting properties and public rights-of-way.
Mayor Burroughs asked if the definition of accessory structure included temporary structures
that might be there seasonally.
Cunningham stated that it must meet the definition of structure.
Mayor Burroughs asked about tent sales at the mall or the sale of plants at the mall. He
questioned if these proposals for accessory structures impacted those and might be prohibited.
Cunningham stated that there would be an exception to allow those in a non-residential situation.
That would be considered an outdoor display in a commercial setting.
Expansion Applicability – this amendment would set a cumulative threshold to the expansion
applicability table regarding non-residential expansions. Currently, there was nothing limiting
an applicant from expanding an existing building or site development up to the threshold one
year and then coming back in future years for additional expansions and not comply with
landscaping requirements, etc. The recommendation was that all buildings would be subject to
the provisions of the Expansion Applicability Table when the cumulative expansion exceeded
the greater of 1,000 square feet or 25% of the building’s square footage at the time of original
adoption of this Code, or when originally constructed if constructed after February 20, 2002.
Preservation and Mitigation Requirements for In-Fill Lots – currently there was an inconsistency
between the definition of in-fill lots and Table 35.13.7.A of the Development Code. The
recommendation was to remove the lot size of 2.5 acres or greater as those would not be
considered an in-fill lot.
Mayor Burroughs questioned if the elimination of some of the tree preservation requirements had
gone before the Environmental Committee.
Cunningham stated that the proposal had been reviewed entirely by staff. This proposal did not
eliminate any tree preservation requirements; it only defined infill as 2 acres or less.
Light and Glare Performance Requirements - currently there were conflicting lighting
requirements when a pedestrian use such as a sidewalk was located along a property line. In
addition, the requirement that the light measurement not exceed ½ foot-candle illumination at the
property line was difficult to achieve on non-residential developments comprised of multiple
lots, such as commercial shopping centers where internal property lines adjoined each other. The
recommendation would create an exemption for commercial development with multiple lots with
pedestrian lots next to the property line.
Site Development Requirements – current language indicated that any garage may not extend
beyond the house front. However, most side entry garages extended beyond the house front.
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June 2, 2009
Page 9
The recommendation was that attached front entry garages of residential dwellings may not
extend forward of the front building wall and the total width of the garage door(s) would not
occupy more than 40% of the total building frontage. This requirement would not apply to
attached side entry garages. Front entry garages that were setback at least 30 feet behind the
front building wall would be exempted from the 40% maximum limitation.
Consensus of the Council was to proceed with the staff’s recommendations on the proposed
changes to the Code.
Following the completion of the Work Session, the City Council convened in a Closed Meeting
at 4:07 p.m. to consider the specific items listed below under the Closed Meeting section of this
agenda.
1.Closed Meeting:
A. Consultation with Attorneys – Under Texas Government Code Section 551.071.
1.Received a legal briefing from the City's attorneys and discussed legal
obligations and options facing the City, under a certain compromise
settlement agreement and mutual release of claims, dated October 21,
2008, involving the City of Denton, Texas, JNC Partners Denton, LLC,
White Cake Denton, L.P., John Lau, and Campbell Road Holding
Company as parties.
2.Received information from and consulted with the City’s attorneys
regarding amendments to the City of Denton Code of Ordinances, Ch. 26
relating to water and sewer service line extensions and costs associated
therewith. 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.
3.Received information from and a consultation with the City’s attorneys
regarding the status of two of the pending TMPA-related cases which
include: Texas Municipal Power Agency v City of Bryan, et al, Cause No.
th
28,169, in the 506 Judicial District Court in and for Grimes County,
Texas, and Ex Parte Texas Municipal Power Agency, Cause No. D-1-GN-
th
08-003426, in the 250 Judicial District Court in and for Travis County,
Texas; discuss, deliberate, and provide direction to the attorneys and staff
regarding such litigation. A public discussion of these legal matters would
conflict with the duty of the City’s Attorneys to the Public Utilities
Board under the Texas Disciplinary Rules of Professional Conduct of the
State Bar of Texas. (Michael Copeland)
4.Received information from and consulted with the City’s attorneys on
legal issues relating to appeals of costs assessed pursuant to the city’s
nuisance abatement procedures. 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.
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June 2, 2009
Page 10
B. Consultation with Attorneys – Under Texas Government Code Section 551.071;
Discussion by representatives of the City regarding meet and confer negotiations
– Under Local Government Code Section 142.063
1.Consultation 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 and Denton Fire Fighters Association,
pursuant to Texas Local Government Code Sec. 142.051 and 142.101 et
seq. A private caucus on this topic is specifically authorized by Texas
Local Government Code 142.063(b) and 142.113(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.
C. Deliberations regarding Real Property – Under Texas Government Code Section
551.072; 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 the grant of an easement for the
construction, maintenance and operation of a rail line within the Denton
Rail Corridor to the Denton County Transportation Authority (DCTA), the
limits of said corridor being all that certain lot, tract or parcel of land
described in that certain Quitclaim Deed from Missouri Pacific Railroad
Company to the City of Denton, Texas dated August 9, 1993, and filed on
August 24, 1993, as Clerk No 93-R0058485 in the Real Property Records
of Denton County, Texas; and also being that same property described in
that certain Correction Quitclaim Deed, dated June 1, 2001 and filed for
record in the Real Property Records of Denton County, Texas as Volume
4857, Page 020211 where such deliberation in an open meeting would
have a detrimental effect on the position of the City Council in
negotiations with DCTA. Consultation with the City’s attorneys regarding
legal issues associated with the granting of said easement above described
where a public discussion of these legal matters would clearly conflict
with the duty of the City’s attorneys to the City of Denton and the Denton
City Council under the Texas Disciplinary Rules of Professional Conduct
of the State Bar of Texas.
Regular Meeting of the City of Denton City Council on Tuesday, June 2, 2009 at 6:30 p.m. in the
Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following
items will be considered:
1. PLEDGE OF ALLEGIANCE
The Council and members of the audience recited the Pledge of Allegiance to the U. S. and
Texas flags.
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June 2, 2009
Page 11
2. PROCLAMATIONS/PRESENTATIONS
A. Proclamations/Awards
There were no proclamations/awards for this meeting.
3. CONSENT AGENDA
Mayor Burroughs indicated that Item 3L would be considered separately.
Kamp motioned, Mulroy seconded to approve the Consent Agenda and accompanying
ordinances with the exception of Item 3L. On roll vote, Engelbrecht “aye”, Gregory “aye”,
Heggins “aye”, Kamp “aye”, Mulroy “aye”, Watts “aye”, and Mayor Burroughs “aye”. Motion
carried unanimously.
Item 3 L was considered.
City Attorney Burgess noted the language change as discussed in the Work Session.
Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Engelbrecht “aye”,
Gregory “aye”, Heggins “aye”, Kamp “aye”, Mulroy “aye”, Watts “aye”, and Mayor Burroughs
“aye”. Motion carried unanimously.
A.Approved a request for an exception to the Noise Ordinance for the purpose of
performing live jazz music during the grand opening of the Sweet Y Café and
Catering. The event will be held at 511 Robertson Street on Friday, June 20,
2009, beginning at 7:30 p.m. and concluding at 11:00 p.m. The request is to
extend the hours of operation one hour, from 10:00 p.m. to 11:00 p.m., for the
evening concert. There is not a request to increase the decibels. The amplified
sound will remain at the allowable 65 decibels.
B. 2009-120 - An ordinance accepting competitive bids and awarding an annual
contract for the purchase of various sizes of traffic poles for the Traffic Control
division; providing for the expenditure of funds therefor; and providing an
effective date (Bid 4305–Annual Contract for Traffic Signal Poles awarded to
Structural and Steel Products, Inc. in the annual estimated amount of $750,000).
C. 2009-121 - An ordinance awarding a 36-month contract for the lease of
production printing equipment for the Reprographics Division as approved by the
State of Texas General Services Commission through a Texas Association of
School Boards (TASB) catalogue; providing for the expenditure of funds therefor;
and providing an effective date (File 4307–Lease of Production Printing
Equipment to IKON Office Solutions, Inc. in the annual amount of $90,372 for a
36-month total amount of $271,116).
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June 2, 2009
Page 12
D. 2009-122 - An ordinance accepting competitive bids and awarding a public works
contract for the construction of the Mulkey Street Sanitary and Storm Sewer
Replacement; providing for the expenditure of funds therefor; and providing an
effective date (Bid 4281–awarded to the lowest responsible bidder meeting
specification, Dowager Utility Construction, LTD in the amount of $226,920).
The Public Utilities Board recommended approval (6-0).
E. 2009-123 - An ordinance accepting competitive bids and awarding a public works
contract for the construction of curb, gutter, and driveway structures and radiuses
on La Paloma Drive; providing for the expenditure of funds therefor; and
providing an effective date (Bid 3516–awarded to the lowest responsible bidder
meeting specification, Floyd Smith Concrete, Inc. in the amount of $123,571.09).
F. 2009-124 - An ordinance of the City of Denton, Texas providing for, authorizing,
and approving the expenditure of funds for the repair of a Caterpillar Model 826G
Compactor for the City of Denton Solid Waste department from Holt Cat 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 4321–Repair of Compactor at Landfill in an amount not to exceed
$238,000). The Public Utilities Board recommended approval (6-0).
G. 2009-125 - An ordinance of the City of Denton, Texas providing for, authorizing,
and approving the expenditure of funds for the purchase of hazardous materials
chemical detection equipment for the City of Denton Fire Department from BST
Technologies 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 4320–Purchase of Chemical Detection
Equipment for Fire Department in the amount of $112,782.50).
H. Approved the minutes of:
April 6, 2009
April 7, 2009
April 14, 2009
April 21, 2009
May 4, 2009
May 5, 2009
May 19, 2009
I. 2009-126 - An ordinance approving an Easement Abandonment Agreement
between the City of Denton, and Holigan Land Development, Ltd., a Texas
limited partnership; giving the City Manager the authority to execute the
Easement Abandonment Agreement, and effectuate the terms of the Agreement,
which will abandon of a portion of the City of Denton’s interest in three sanitary
sewer line easements, being obtained by the City from L.C. Dupree, and wife,
Stella M. Dupree, Volume 464, Page 179, Thomas Cain, and wife, Clara Etta
Cain, Volume 464, Page 172, and Andrew Corporation, an Illinois Corporation,
Volume 1123, Page 407, all being recorded in the Denton County Real Property
City of Denton City Council Minutes
June 2, 2009
Page 13
Records, Denton, Texas; provided however, that said abandonment shall only be
effectual as to that certain tract of real property being legally described as Lot 3,
Block A, of Flowers Food Addition, an addition to the City of Denton, Denton
County, Texas, according to the conveyance plat thereof recorded in Cabinet W,
Page 335 of the Plat Records of Denton County, Texas; and providing an effective
date. The Public Utilities Board recommended approval (6-0).
J. 2009-127 - An ordinance of the City Council of the City of Denton, Texas
authorizing the City Manager to execute a Second Amendment to Agreement for
Professional Legal Services with the law firm of Walker Sewell, LLC. For
Professional Legal Services relating to litigation styled: Texas Municipal Power
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Agency vs. City of Bryan, TexasCause No. 28,169 pending in the 506 Judicial
District Court in and for Grimes County, Texas; Ex Parte Texas Municipal Power
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Agency, Cause No. D-1-GN-08-003426, now pending before the 250 Judicial
District Court in and for Travis County, Texas; authorizing the expenditure of
funds therefor; and providing an effective date. The Public Utilities Board
recommended approval (6-0).
K. 2009-128 - An ordinance of the City of Denton, Texas, abandoning and vacating
those certain street right-of-way tracts of land being approximately 0.037 acre and
0.037 acre, respectively, and being portions of the right-of-way of Pacific Street,
in the W. Loving Survey Abstract Number 759 in the City of Denton, Denton
County, Texas; accepting a public access, fire lane and public utility easement
grant; providing for quit claim assignments of the Pacific Street right-of-way
tracts; and providing an effective date.
L. 2009-129 - An ordinance of the City of Denton, Texas approving a lease
agreement between the City of Denton, Texas and ARG East Hickory Partners,
LLC. for the lease of a portion of land located at the southwest corner of East
Hickory and Industrial Streets, being situated within the H. Sisco Survey, Abstract
Number 1184 and being described as a part of Lot 3, Block 20 of the original
Town of Denton, for the construction, occupancy and maintenance of an outdoor
patio; and providing an effective date.
M. 2009-130 - An ordinance of the City of Denton, Texas delegating authority to the
Municipal Court Judge or Assistant Judges in their capacity as magistrates to hear
appeals under Section 17-113 of Chapter 17 “Property Maintenance Code” of the
Code of Ordinances of the City of Denton regarding costs imposed for abatement
of nuisances; and declaring an effective date.
N. 2009-131 - An ordinance authorizing the City Manager to execute a contract for
professional legal services with Denton, Navarro, Rocha & Bernal for legal
services related to Meet and Confer bargaining issues, pursuant to Texas Local
Government Code Sections 142.051 through 142.119; authorizing the expenditure
of funds in an amount not to exceed $150,000; and establishing an effective date.
City of Denton City Council Minutes
June 2, 2009
Page 14
O. 2009-132 - An ordinance authorizing the City Manager, pursuant to his executive
authority, to act upon options and obligations arising under a certain compromise
settlement agreement and mutual release of claims, previously approved by
Council on October 21, 2008, involving the City of Denton, Texas, JNC Partners
Denton, LLC, White Cake Denton, L.P., John Lau, and Campbell Road Holding
Company as parties, and declaring an effective date.
P. 2009-133 - An ordinance of the City of Denton, Texas, approving and authorizing
the City Manager to execute a Second Amendment to a Development Agreement
dated June 17, 2008, between the City of Denton, Texas and Allegiance Hillview,
L.P., as well as an associated amendment to an Irrevocable Standby Letter of
Credit, both of which are related to construction of improvements on U.S.
Highway 380, in the vicinity of U.S. Highway 380, between Interstate Highway
35 and Bonnie Brae Street; and approving an effective date.
4. PUBLIC HEARINGS
A.The Council held a public hearing and considered adoption of an ordinance
amending the Water Conservation and Drought Contingency Plan of the City of Denton
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previously enacted by the City Council in Ordinance No. 2005-121 on the 19 day of April,
2005; and as previously amended by the amended water conservation and drought contingency
plan in Ordinance No. 2006-127 on the 2nd day of May, 2006; further amending the Water
Conservation and Drought Contingency Plan in accordance with the requirements of the law;
adding a section to the conservation plan addressing two best management practices
recommended by the Texas Water Development Board, to include park and athletic field water
conservation; 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 civil 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 (5-0).
Tim Fisher, Water Division Manager, stated that the proposed amendment was an update of an
existing plan. It had two components for drought contingency and water conservation.
Mayor Burroughs stated that the goal was for a five-year plan with a 1% reduction for each of
the five years.
Fisher replied correct but that the challenge was the weather conditions and changes in the
weather. The Plan was on the website for public comment. They had received one comment
regarding time of day watering restrictions for the summer months.
The Mayor opened the public hearing.
No one spoke during the public hearing.
The Mayor closed the public hearing.
The following ordinance was considered:
City of Denton City Council Minutes
June 2, 2009
Page 15
NO. 2009-134
AN ORDINANCE AMENDING THE WATER CONSERVATION AND DROUGHT
CONTINGENCY PLAN OF THE CITY OF DENTON PREVIOUSLY ENACTED BY
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THE CITY COUNCIL IN ORDINANCE NO. 2005-121 ON THE 19 DAY OF
APRIL, 2005; AND AS PREVIOUSLY AMENDED BY THE AMENDED WATER
CONSERVATION AND DROUGHT CONTINGENCY PLAN IN ORDINANCE NO.
2006-127 ON THE 2ND DAY OF MAY, 2006; FURTHER AMENDING THE WATER
CONSERVATION AND DROUGHT CONTINGENCY PLAN IN ACCORDANCE
WITH THE REQUIREMENTS OF THE LAW; ADDING A SECTION TO THE
CONSERVATION PLAN ADDRESSING TWO BEST MANAGEMENT PRACTICES
RECOMMENDED BY THE TEXAS WATER DEVELOPMENT BOARD, TO
INCLUDE PARK AND ATHLETIC FIELD WATER CONSERVATION; 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 CIVIL LEGAL REMEDIES FOR THE CITY OF DENTON, TEXAS;
PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
Watts motioned, Kamp seconded to adopt the ordinance. On roll vote, Engelbrecht “aye”,
Gregory “aye”, Heggins “aye”, Kamp “aye”, Mulroy “aye”, Watts “aye”, and Mayor Burroughs
“aye”. Motion carried unanimously.
5. ITEMS FOR INDIVIDUAL CONSIDERATION
Tabled
A. – Consider adoption of an ordinance of the City of Denton, Texas
approving an interlocal cooperation agreement and granting an easement to the DCTA on the
Denton Branch Rail Trail for the purpose of building a public commuter rail line; and declaring
(Tabled from March
an effective date. The Mobility Committee recommends approval (3-0).
3, 2009)
There was no action on this item.
B.The Council considered approval of 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 2009 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.
Barbara Ross, Community Development Administrator, stated that approval of this resolution
would authorize the City Manager to submit the Action Plan for community development and
human services.
Mayor Burroughs asked for the topics that would be included in the action plans.
City of Denton City Council Minutes
June 2, 2009
Page 16
Ross stated that the projects included sewer replacement work projects; human service agencies
funded through community development funds, City-County Day Nursery School funding, and
funding for Denton Affordable Housing Association improvements for rental housing units.
The following resolution was considered:
NO. R2009-013
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 2009 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.
Heggins motioned, Engelbrecht seconded to approve the resolution. On roll vote, Engelbrecht
“aye”, Gregory “aye”, Heggins “aye”, Kamp “aye”, Mulroy “aye”, Watts “aye”, and Mayor
Burroughs “aye”. Motion carried unanimously.
C.The Council considered adoption of an ordinance of the City of Denton, Texas
amending the Fiscal Year 2008-09 Budget and Annual Program of Services of the City of
Denton to allow for an adjustment to the Airport Gas Well Fund of one million three-hundred
thousand dollars ($1,300,000) to provide for costs associated with runway construction,
construction of a southeast taxiway, security fencing, drainage improvements, radar installation
and improvements to Wolfe Road; declaring a municipal purpose, providing a severability
clause; an open meetings clause; and an effective date.
Bryan Langley, Director of Finance, stated the current budget included the use of airport gas well
funds. There were a number of projects ready to start at the Airport that were not originally
included in the budget. Each individual expenditure would be brought forward for Council for
consideration.
The following ordinance was considered:
NO. 2009-135
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE FISCAL
YEAR 2008-09 BUDGET AND ANNUAL PROGRAM OF SERVICES OF THE CITY
OF DENTON TO ALLOW FOR AN ADJUSTMENT TO THE AIRPORT GAS WELL
FUND OF ONE MILLION THREE-HUNDRED THOUSAND DOLLARS ($1,300,000)
TO PROVIDE FOR COSTS ASSOCIATED WITH RUNWAY CONSTRUCTION,
CONSTRUCTION OF A SOUTHEAST TAXIWAY, SECURITY FENCING,
DRAINAGE IMPROVEMENTS, RADAR INSTALLATION AND IMPROVEMENTS
TO WOLFE ROAD; DECLARING A MUNICIPAL PURPOSE, PROVIDING A
SEVERABILITY CLAUSE; AN OPEN MEETINGS CLAUSE; AND AN EFFECTIVE
DATE.
City of Denton City Council Minutes
June 2, 2009
Page 17
Gregory motioned, Mulroy seconded to adopt the ordinance. On roll vote, Engelbrecht “aye”,
Gregory “aye”, Heggins “aye”, Kamp “aye”, Mulroy “aye”, Watts “aye”, and Mayor Burroughs
“aye”. Motion carried unanimously.
D.The Council considered adoption of an ordinance authorizing the City Manager to
execute on behalf of the City of Denton an Airport Project Participation Agreement with the
Texas Department of Transportation Aviation Division relating to certain runway improvements
at the Denton Municipal Airport; authorizing and directing the City Manager or his designee to
expend funds as provided for in said agreement and to implement the project; and declaring an
effective date. The Airport Advisory Board recommended approval (7-0).
Quinten Hix, Airport Manager, stated that this project was related to the construction phase of
the runway extension project which was first approved in January 2005. The initial funding was
for land acquisition, environmental study and design. The initial cost for construction at the time
it was first approved was $8.5 million with the City’s cost at 10%. Since that time TxDOT
Aviation Division had received funding for other projects funded through the recovery act. That
allowed additional funding for the runway project which reduced the amount of money the city
would have to include in the project.
The following ordinance was considered:
NO. 2009-136
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE ON
BEHALF OF THE CITY OF DENTON AN AIRPORT PROJECT PARTICIPATION
AGREEMENT WITH THE TEXAS DEPARTMENT OF TRANSPORTATION
AVIATION DIVISION RELATING TO CERTAIN RUNWAY IMPROVEMENTS AT
THE DENTON MUNICIPAL AIRPORT; AUTHORIZING AND DIRECTING THE
CITY MANAGER OR HIS DESIGNEE TO EXPEND FUNDS AS PROVIDED FOR IN
SAID AGREEMENT AND TO IMPLEMENT THE PROJECT; AND DECLARING AN
EFFECTIVE DATE.
Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Engelbrecht “aye”,
Gregory “aye”, Heggins “aye”, Kamp “aye”, Mulroy “aye”, Watts “aye”, and Mayor Burroughs
“aye”. Motion carried unanimously.
E. Citizen Reports
1.The Council reviewed the procedures for addressing the City Council.
2.The Council received citizen reports from the following:
a)Karen McCormick regarding the preservation of Ector Street.
Ms. McCormick presented information concerning the preservation of Ector Street. The
residents were suggesting a rezoning petition change from NR3 to NR1. She presented a
powerpoint regarding that proposal.
b)Jordan Hudspeth regarding concerns of Southeast Denton.
City of Denton City Council Minutes
June 2, 2009
Page 18
c)Lanisha Hudspeth regarding concerns of Southeast Denton.
d)Hagar Hudspeth regarding concerns of Southeast Denton.
e)Willie Hudspeth regarding concerns of Southeast Denton.
The Hudspeths were not present at the meeting.
f)Gerald DeMarsh regarding Heritage Oaks Apartment complex.
Mr. DeMarsh presented information on the Heritage Oaks Apartment Complex. Maintenance of
complex not being upheld and work needed to be done on the units. He detailed instances of
maintenance work that various units needed. As the City was over the Housing Authority he felt
the City should make sure these problems were corrected. He displayed pictures of the problems
in the development.
F. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries
from the City Council or the public with specific factual information or recitation of policy, or
accept a proposal to place the matter on the agenda for an upcoming meeting.
Mayor Burroughs requested a memo on the Heritage Oaks Apartments and what was subject to
city control.
Council Member Engelbrecht requested information on Ector Street and the rezoning change
request.
Council Member Gregory requested a briefing on the landscape ordinance with regards to
irrigation and parking lot development.
G. 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.
H. 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 7:30 p.m.
_________________________________ _________________________________
MARK A. BURROUGHS JENNIFER WALTERS
MAYOR CITY SECRETARY
CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS