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April 20, 2010 MinutesCITY OF DENTON CITY COUNCIL MINUTES April 20, 2010 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, April 20, 2010 at 2:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Burroughs, Mayor Pro Tem Kamp, Council Member Engelbrecht, Council Member Gregory, Council Member Mulroy, and Council Member Watts. ABSENT: Council Member Heggins. 1. Requests for clarification of agenda items listed on the agenda for April 20, 2010. Council did not have any items needing clarification. 2. Receive a funding recommendation report from the Community Development Advisory Committee (CDAC) and the Human Services Advisory Committee (HSAC). Hold a discussion regarding the proposed 2010 - 2014 Consolidated Plan for Housing and Community Development and the 2010 Action Plan and give staff direction. Barbara Ross, Community Development Administrator, stated that two documents would be submitted this evening. One was the 2010 Action Plan and the other was the five year consolidated plan that outlined strategies for the next 5 years. The figures in the documents could be revised after the completion of the 2010 Census. Ron Aldridge, Community Development Advisory Committee Chair, stated that the Committee always had more requests than dollars. Eighteen applications were submitted for the Committee consideration. He was available for questions from the Council. Mayor Burroughs asked which organizations were the most difficult choice to make in terms of not funding them. He felt Council might need to keep those on the radar for possible future funding. Aldridge stated that the Quakertown Park was not recommended for full funding and the Committee would have liked to have fully funded that project. Council Member Mulroy questioned if the Quakertown Park project had a budgeted design or concept plan. Aldridge stated that the Committee prioritized the projects and went from there with the funding. Council Member Mulroy asked that if there was a concept plan that it be provided to the City Manager with the possibility of finding funding to fill the gap. Mayor Burroughs asked about the homeless population chart and how it appeared that there were more homeless individuals. Aldridge stated that a count was done every year and with the current economy, they found the numbers increasing due to people losing jobs and homes. City of Denton City Council Minutes April 20, 2010 Page 2 Mayor Burroughs asked if the increased homeless population was from the Denton population or coming from other places. Aldridge stated that a large quantity was from Denton. Council Member Gregory stated that he remembered when the School District did a homeless count each year, the definition seemed to change from year to year. He questioned what was the definition being used for "homeless". Ross stated that various grants had various definitions. There was movement to make the definitions consistent with all agencies. Steve Poe, Chair-Human Services Advisory Committee, stated that seventeen agencies had requested funding and all were recommended for funding this year. The criteria from the 2004 Needs Assessment was used for the funding distribution. The recommendation was 4% less this next year compared to last year. Council Member Mulroy suggested developing an outlook and/or strategy for tax credit housing. Council should have a work session to develop an outlook ahead of time before any future requests were received. Ross stated that the projected numbers were down due to reduced federal funding. A rental strategy was included in the five-year plan which included tax credit. Staff determined that small mixed income developments were needed but small mixed uses were not supported with tax credit housing. 3. Receive a report, hold a discussion, and give staff direction regarding the upcoming General Obligation, Certificates of Obligation, and Utility System Revenue Bond debt issuances. Brian Langley, Director of Finance, presented an overview of the 2009-2010 bond issues. The adopted 2009-2010 Capital Improvement Program budget anticipated a $78.3 million bond sale. Staff was now recommending that amount be reduced to $67 million. The key elements of the bond sale included the Lewisville Water Treatment Plant Rehab, electric distribution and transmission substations, electric feeder extension and improvements, electric transmission lines, landfill expansion and improvements and residential street improvements. CIP programs were typically funded with debt in order to provide generational equality for taxpayers and rate payers. Council Member Watts asked about the electrical projects. Phil Williams, General Manager-DME, stated that a developer would take the line a certain distance but this would be to get to the development and new commercial developments. Langley continued that the maturity of the debt was never greater than the expected useful life of the asset or project. City of Denton City Council Minutes April 20, 2010 Page 3 Bond sale options - in past years, utility system debt had been sold as Utility System Revenue Bonds backed solely by utility system revenues. Utility system revenue bonds had a lower underlying credit rating. Bond insurance was now difficult to acquire at a reasonable cost or even at all. As a result, alternative methods of sale were being sought as part of an organizational effort to reduce costs. Utility System debt could be sold as certificates of obligation with the debt backed by the full faith and credit of the city. That allowed debt to be issued without bond reserve. The use of the overall credit rating reduced financing costs substantially. The Solid Waste debt had been sold as certificates of obligation for a number of years. Council Member Watts asked if the Solid Waste debt was converted from revenue bonds. Langley stated that it used to be part of the General Fund, not part of the Utility System. He continued with Bond Refunding Options. Bond refunding was also being recommended which would not increase the maturity date of the debt. Utility system debt had typically been refinanced with Utility System Revenue Refunding bonds. If they were issued as "General Obligation Refunding and Improvement bonds", it would represent an overall obligation of the city and not just the utility system. A savings of $6.5 million over the life of the debt could be realized in that case. Bond Counsel indicated that utility system debt could legally be issued as an overall obligation of the city. The debt was sold in many other communities as a tax supported bond. The Audit and Finance Committee discussed the proposed issuance in detail and recommended proceeding with issuing the tax supported debt as outlined. Staff was recommending issuing new utility system debt as a certificate of obligation and refunding existing utility system obligations with tax supported debt. The Audit and Finance Committee requested that staff consider methods to repay the taxpayers for their guarantee of the utility system debt and staff was exploring various options. Additional details would be presented to Council during the upcoming budget process. Council Member Watts asked about the time frame for refinancing and new bond issuance. Langley stated that June 15th was the target date for new issuance and refinancing. Mayor Burroughs stated that he would feel more comfortable if the Oversight Committee was involved in that evaluation. The Committee might be able to focus from a policy making standpoint on high priorities needed in the projects. He requested that in the future if something were pulled due to discretion, that it be taken to the Committee for approval. Jim Coulter, General Manager-Water Administration, stated that the items discussed were on the last year of the bond component and that there was no discretionary list at this time. Council Member Mulroy stated that the bond committee raised the money, marketed it to the community and delivered to the community a list of projects with general time frames. The city needed to honor that relationship in order to have the community consider a future sale. 4. Receive a report, hold a discussion, and give staff direction concerning proposed amendments to Subchapter 22 of the Denton Development Code (DDC) regarding gas well drilling and production. The discussion will include an analysis of gas well and production City of Denton City Council Minutes April 20, 2010 Page 4 ordinances of neighboring cities within the Metroplex area, and responses and findings of information requested by the City Council during the December 1, 2009 Work Session on gas well drilling and production. Mark Cunningham, Director of Planning and Development, stated that Council had requested information in several areas including the composition of the Fort Worth Gas Well Drilling Review Committee; examples of decibels for day to day activity; gas well conditions of approval; zoning district requirements for gas wells; air quality test; environmental policies; definitions; legal challenges to setbacks; setbacks from fresh water wells; noise regulations; requirement for setbacks after filling operations were completed; height of storage tanks; requirement for environmental insurance; limitations on flaring activities; Texas Railroad Commission requirements; and general chemicals used in drilling operations. He reviewed the make-up of the Fort Worth Gas Well Drilling Committee and its meeting notification process. Examples of decibel production were provided along with Denton field data without a sound wall and with a sound wall. Noise level tolerance information was also explained. Conditions of approval for a gas well might include screening, notification for fracking 24 hours prior to starting, fracking operations restricted to daylight hours only; maximum height for structures of 16 feet; fencing made of blockage, wood or limestone; restricted site access for days and times; landscape screening, noise level; noise level violation abatement; employee parking, sound barrier; air quality; ingress and egress; time limit for completion of all drilling, closed loop mud system; and directional lighting. Council Member Gregory asked how to measure for lighting. Cunningham stated that the lights had to be directed towards the site and were not allowed to spillover in to the neighborhood. Council Member Gregory asked if there had been complaints about the lighting. Cunningham stated not that he was aware of. He continued with conditions for flaring and storage tanks. He presented information on zoning district requirements for gas wells. He noted that there were no current regulations concerning air quality relative to gas well drilling and production. Air quality tended to be regulated at the state and federal level. The Development Code currently had industrial performance standards that addressed opacity and odor but did not address hydrocarbons. There was technology available to measure the baseline for hydrocarbons in the air before, during and after drilling operations. Council Member Gregory asked for an explanation of hydrocarbons. Ken Banks, Director of Environmental Services and Sustainability, stated that a majority of concerns deal with benzene concentrations and sulfur compounds. Council Member Gregory asked about the need to test for various problems. Banks stated that testing depended on what was being looking for. If a large list of contaminants was being looked at, the cost would be greater than if looking for a targeted compound. Testing City of Denton City Council Minutes April 20, 2010 Page 5 could be done depending if a broad approach or narrow approach for specific components was being sought. Council Member Gregory suggested that as the ordinance was completed, a section be added to hire independent contractors to do those types of air quality tests and charge the fee to the driller. He also suggested developing a recommended group of substances which would be cost appropriate to test. Mayor Burroughs noted that distances from well sites to homes were also a factor in air quality testing. The amounts could dissipate over distance. If distance was a factor, it might be good to consider a higher level of testing for wells closer to homes which would have higher testing requirements. Council Member Gregory questioned if any toxic substances that might come from a drilling site would be heavy enough to contaminate the soil either at the site or at a neighboring property. Mayor Burroughs added if that were the case, what could be done about it. Council Member Engelbrecht questioned to what extent sound walls impacted the ability to do good testing. He suggested looking at that piece in the testing procedures. Banks stated that it would be a question of what was being testing and a question of how to test. Cunningham reviewed the environmental policies noted in the Denton Development Code. Council Member Mulroy stated that environmental insurance policies were required and had to be enforced for the life of a well. He asked how staff was monitoring that the policies were up- to-date and were still in force. Cunningham stated that the policy was received upfront and that the driller was required to maintain that policy. He felt that there was a need to address how to monitor whether policies were in place in the new code. Definitions requested by Council were reviewed including gas well and drill site. He continued with residential setbacks from fresh water wells. Council Member Gregory asked if when a well went in or there was planning for a well, was a survey done with regard to fresh water wells within a pad site area. Was there a survey on how many fresh water wells were near a proposed drill site. Cunningham stated that was done by the Texas Railroad Commission. That might be an area staff would need to look into if it did not conflict with the Texas Railroad Commission. Council Member Mulroy stated that the Railroad Commission required a driller to develop a plan for the location of fresh water wells. Council Member Engelbrecht suggested getting a copy of a report from the Railroad Commission so it would be available if citizens wanted it. City of Denton City Council Minutes April 20, 2010 Page 6 Cunningham stated that several cities required a noise study which was usually comprised of surrounding areas within 300 feet of the drilling site. The study allowed for 70-80 decibels. Some cities required on site sound level recording meters. Denton conducted field inspections. Council Member Engelbrecht stated that there was lots of discussion about drilling but not much discussion about activities after drilling. There was a need to address some of those issues which ran 24 hours a day. Cunningham reviewed the setback requirements after well drilling per the Denton Development Code. Staff did not find any required setback standards after drilling operations were completed for the seven sample cities. Council Member Mulroy asked what the Railroad Commission prohibition was regarding building next to a drilling site. Cunningham replied that they did not have any regulations. Council Member Mulroy suggested looking at what the city could regulate and why other cities did not have any regulations. Cunningham next reviewed required height of storage tanks and requirements for environmental insurance bonds. He felt there was a need to add clarifying language for "blanket" coverage which was the wording in the Development Code. Council Member Engelbrecht was not convinced that one coverage per site was adequate. Council Member Gregory asked if the new ordinance with conditions would be ready within 30 days or so. Council Member Mulroy felt they all were in agreement that it needed to be raised to a conservative amount but felt that Risk Management, Legal and Planning needed to work it out for the best scenario. Council Member Gregory stated he would be in favor for each pad site as opposed to well site. Council Member Watts felt that another concern was that the ordinance was deficient based on the level of drilling that was going on. There would be a lag between getting the new ordinance completed which will be very different from the current ordinance. Mayor Burroughs stated that the wells coming in under the specific use permit allowed for more flexibility to address issues. He suggested using the specific use permit during the interim to give the maximums under all of the elements of concern and ask the drillers to recognize that the city was going through a process of self evaluation. Not focus on the current ordinance but on the proposed standards for a new ordinance. Cunningham presented flaring limitation comparisons with the sample cities. He noted that there were different methods of flaring that did not have to produce a flame. City of Denton City Council Minutes April 20, 2010 Page 7 Council Member Engelbrecht asked that the issue of no flaring be addressed in the ordinance. Cunningham continued with the Texas Railroad Commission requirements in terms of what it regulated and what it did not. Council Member Watts felt that the thought for the mineral interests was that the owners had an opportunity to develop their fair share of the mineral underlying their property. Setbacks from roads comparisons were noted with the sample cities by Cunningham. He presented general drilling chemicals that were used during the process. He noted that the chemical list for fracking and drilling might be different during the process. Council Member Engelbrecht asked about the chemicals used in rework or later down the line. He suggested also thinking about handling and procedures on how to handle these chemicals such as storage and use. He felt there was a need to have records and storage records for the fire department. Cunningham stated that the second part was making that list available to other entities which at this time was not done. A list of chemicals was part of the application process in the Fire Marshal's office. In review of gas well application fees, the city lagged behind in the fee structure compared to the sample cities. Council Member Mulroy noted that one area that had not been discussed was road maintenance from the drillers. Cunningham stated there was a road usage fee which was not a set fee but rather an assessment from the street department based on the route of the trucks. Council Member Mulroy suggested bringing back the amount charged for Rayzor Ranch for road maintenance. The permit fee ordinance was the first in the region and was based on vertical drilling. It was probably outdated and needed to be revised. Mayor Burroughs suggested setting the fee amounts at the highest levels and then pull back from those if Council wanted for the new ordinance. Unintended consequences needed to be considered and the industry should be consulted for feedback. Cunningham stated that they would move forward quickly. Council Member Engelbrecht questioned the current well inspection process. The current inspection was on an annual basis and he felt that was not adequate. There should also be a permit for any rework with an inspection process. Council Member Mulroy talked about the critical path for the ordinance, having to go to the Planning and Zoning Commission and then to Council. The new ordinance would have to go through the Planning and Zoning Commission and then to the Council for approval. He suggested making sure the ordinance was finalized before the Council summer break. City of Denton City Council Minutes April 20, 2010 Page 8 Mayor Burroughs was in favor of the most aggressive ordinance and have the industry review it to see if anything was missed. 5. Receive a report, hold a discussion, and give staff direction regarding the draft Denton Property Maintenance Code. John Cabrales, Public Information Office, reviewed the background of the development of the property maintenance code issue. The proposed Code accomplished the City's goals of placing all property maintenance related information into one document; added language that allowed staff to address certain complaints from residents; and formatted the document so that it was easier for citizens to read and understand. 6. Receive a report, hold a discussion and give staff direction regarding amending Section 25- 10.(b) of the City of Denton Code of Ordinances; and to consider repealing Article X "Construction Advisory and Appeals Board" of Chapter 28 of the Code of Ordinances; create a new Article X within Chapter 2 of the Code of Ordinances. Kurt Hansen, Building Official, stated that the proposed ordinance would change house numbering requirements; relocate Article X from Chapter 28 of the Code of Ordinance to Chapter 2 which was more appropriate for boards and commissions; allow for the hearing of appeals and variance requests; allow for the appointment of alternate members, appoint a Vice- Chair; and clarify the appeal application. Mayor Burroughs asked if the name of the Committee would be changed. City Attorney Burgess stated not at this point but staff was open to suggestions. Staff would take any suggestions into advisement for a name change and bring the revised ordinance back with the property maintenance code. Mayor Pro Tem Kamp noted that there were certain requirements for board members, specifically for members with fire issues. She asked if Council was going to make allowances for members for the Fire Department to be on the board. Hansen stated that the Fire Marshal might suggest citizens who had experience with those issues to serve as alternates. Council Member Gregory asked if the board was a step between a citation and Municipal Court for enforcement issues. Hanson stated that citizens who had questions regarding the decision of an inspector or Code Enforcement could appeal that decision before this board. Council Member Gregory stated that as staff was looking at a name change for the board, they should also look at a change in the charge to the board. Council Member Engelbrecht suggested making sure the public was well informed on these new issues and get more information out to citizens through more neighborhood meetings. City of Denton City Council Minutes April 20, 2010 Page 9 1. Closed Meeting: Council convened in Closed Session at 5:30 p.m. A. Consultation with Attorney -Under Texas Government Code Section 551.071. 1. Consultation with the City's attorneys on legal issues related to the issuance of debt as allowed by state and local law. B. Consultation with Attorney - Under Texas Government Code Section 551.071 and Deliberations regarding Personnel Matters - Under Texas Government Code 551.074. 1. Consultation with the City's attorneys regarding legal issues associated with personnel matters involving the city manager, city attorney, city auditor, and/or the municipal court judge where public discussion associated with 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 of Professional Conduct of the State Bar of Texas. Discuss and deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal and/or hear a complaint or charge involving the city manager, city attorney, city auditor, and/or the municipal court judge. C. Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086. 1. Receive a presentation from Staff regarding public power competitive and financial matters, and discuss and deliberate regarding the possible installation of a state-of-the-art combined heat and power (CUP) tri- generation station in the industrial district in the City of Denton. 2. Discuss, deliberate and receive information from staff regarding public power competitive and financial issues involved with the proposed Amendment to Power Sales Contract regarding the Texas Municipal Power Agency. Consultation with the city attorney regarding legal issues associated with the proposed Amendment to Power Sales Contract, where such discussion and deliberation in an open meeting would have a detrimental effect on the position of the City Council and would clearly conflict with the duty of the City's attorneys to the City of Denton, Texas and to the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. Council convened in a Regular Meeting in the Council Chambers at 630 p.m. City of Denton City Council Minutes April 20, 2010 Page 10 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 1. Resolution of Appreciation for Tom Shaw Mayor Burroughs presented a resolution of appreciation for Tom Shaw. Council Member Gregory motioned, Mayor Pro Tem Kamp seconded to approve the Resolution of Appreciation. On roll call vote, Council Member Watts "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. 2. Presentation of the Texas Department of Transportation Aviation Division 2010 Reliever Airport of the Year Award Mark Nelson, Director of Transportation, presented the Texas Department of Transportation Aviation Division 2010 Reliever Airport of the Year Award to the Council. Representative Myra Crownover presented a resolution from the House of Representatives congratulating the Airport on the award. Diane Helmes, representing Senator Estes, presented a proclamation from the Senate congratulating the Airport on the award. 3. Denton Redbud Festival Day Proclamation Mayor Burroughs presented a proclamation for Denton Redbud Festival Day. 4. National Financial Literacy Month Proclamation Mayor Burroughs presented a proclamation for National Financial Literacy Month. 3. CONSENT AGENDA Mayor Burroughs noted that Item K had been pulled from consideration. Bob Clifton, 1800 Morse Street, presented Speaker Cards for Item E and I. Council Member Gregory motioned, Council Member Watts seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Item K. On roll call vote, Council Member Watts "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. City of Denton City Council Minutes April 20, 2010 Page I I Resolution No. R2010-009 A. Consider approval of a resolution of the City Council of the City of Denton, Texas, renewing a policy for tax abatement for the City of Denton to establish guidelines and criteria governing tax abatement agreements; and declaring an effective date. The Economic Development Partnership Board recommends approval (7-0). Ordinance No. 2010-098 B. Consider adoption of an ordinance providing for the expenditure of funds for the emergency purchase of gasoline and diesel fuel in accordance with provisions of state law exempting such purchases from requirements of competitive bidding, and providing an effective date (File 4496-Emergency Purchase of Gasoline and Diesel Fuel to Martin Eagle Oil Co. in the estimated amount of $426,000). Ordinance No. 2010-099 C. Consider adoption of an ordinance accepting competitive bids by way of an Interlocal Agreement with Tarrant County and awarding a contract for the purchase of gasoline and diesel fuel; providing for the expenditure of funds therefor; and providing an effective date (File 4492-Interlocal Agreement for Gasoline and Diesel fuel with Tarrant County, contract awarded to Martin Eagle Oil Co., in the annual estimated amount of $5,300,000). Ordinance No. 2010-100 D. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of 36 inch, 42 inch and 48 inch sanitary sewer from east of Woodrow Lane across Ruddell Street to Mulberry Street; providing for the expenditure of funds therefor; and providing an effective date (Bid 4481-awarded to the lowest responsible bidder meeting specification, Wright Construction Co., Inc. in the amount of $1,483,490). The Public Utilities Board recommends approval (5-0). Ordinance No. 2010-101 E. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of legal advertising for the City of Denton Planning 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 4499-Purchase of Legal Advertising for 2010 Annexation Program in the amount of $54,621). Ordinance No. 2010-102 F. Consider adoption of an ordinance of the City of Denton authorizing and ratifying an agreement between the City of Denton, Texas and the University of North Texas for the purpose of hosting the African Cultural Festival; providing for the expenditure of funds; and providing for an effective date. ($550) City of Denton City Council Minutes April 20, 2010 Page 12 Ordinance No. 2010-103 G. Consider approval of a resolution allowing La Mexicana to be the sole participant allowed to sell alcoholic beverages at the Cinco de Mayo Celebration on May 1, 2010, upon certain conditions; authorizing the City Manager or his designee to execute an agreement in conformity with this resolution; and providing for an effective date. The Parks, Recreation and Beautification Board recommends approval (5-0). Approved the exception noted below. H. Consider a request for an exception to the Noise Ordinance for the purpose of the Singing Oaks Church of Christ Community Festival to be held on Sunday, May 23, 2010, from 4:00 p.m. to 9:00 p.m. The event will be held in the church parking lot located at 101 Cardinal Drive. The requestor is specifically asking for an exception to the noise ordinance to allow amplified sound on Sunday. An increase in decibels will not be needed. Staff recommends approval of the request. Resolution No. R2010-011 L Consider approval of a resolution allowing Pro-Fest, Inc. to be the sole participant allowed to sell alcoholic beverages at the Denton Arts and Jazz Festival for three consecutive years, upon certain conditions; authorizing the City Manager or his designee to execute an agreement in conformity with this resolution; and providing for an effective date. The Parks, Recreation and Beautification Board recommends approval (5-0). Staff recommends approval of the request. Resolution No. R2010-012 J. Consider approval of a resolution revising Administrative Policy No. 403.07 "Debt Service Management" and providing for an effective date. This item was not considered. K. Consider adoption of an ordinance of the City of Denton, Texas approving and authorizing the Amended Power Sales Contract regarding the Texas Municipal Power Agency, a Texas Joint Powers Agency, executed by its four Member Cities, the Cities of Bryan, Denton, Garland and Greenville, Texas; authorizing the City Manager and City Attorney to act on the City's behalf in executing the Amended Power Sales Contract together with all necessary supporting documents; and to take such other and further actions as are necessary in order to effectuate and finalize the Amended Power Sales Contract; authorizing the expenditure of any funds therefor; and declaring an effective date. 4. PUBLIC HEARINGS A. Hold a public hearing inviting citizens to comment on the City of Denton's 2010 - 2014 Consolidated Plan for Housing & Community Development and the 2010 Action Plan. Barbara Ross, Community Development Administrator, stated that this was an opportunity for citizens to comment on 2010-2014 Consolidated Plan and the 2010 Action Plan. Written comments could also be sent in if a citizen desired. Staff had learned late that an additional City of Denton City Council Minutes April 20, 2010 Page 13 $5000 would be allocated to Denton. The Committee would reconvene and allocate those funds which will be included in the final Action Plan. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. No action was required by the Council on this item. 5. ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2010-103 A. Consider adoption of an ordinance directing the publication of Notice of Intention to issue Certificates of Obligation of the City of Denton totaling $64,000,000; and providing for an effective date. Bryan Langley, Director of Finance, stated that the 2009 CIP budget anticipated a bond sale. After reviewing the projects and time lines, it was suggested to reduce the amount of the sale to $67.225 million. The proposal had been discussed by the Audit and Finance Committee and bond counsel who were recommending approval of the Notice of Intent to issue certificates of obligation. The formal authorization to proceed with bond sale would be presented in June. Bob Clifton, 1800 Morse, presented a Speaker Card noting that he was not in favor of issuing the certificates of obligation and the amount of the sale. Mayor Pro Tem Kamp motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. B. Consider nominations/appointments to the following Boards and Commissions: 1. Construction Advisory and Appeals Board 2. Parks, Recreation and Beautification Board Council Member Heggins had nominated Michael Roby to the Construction Advisory and Appeals Board. Council Member Gregory nominated David Rowley to the Parks Board. Council Member Mulroy motioned, Mayor Pro Tem Kamp seconded to approve the nominations. On roll call vote, Council Member Watts "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. City of Denton City Council Minutes April 20, 2010 Page 14 C. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: a. Margarete Neale regarding the city's gas/drilling ordinances. Ms. Neale presented recommendations from Drill-Right Texas which was best oil and gas development practices for Texas. She also suggested the City consult with a technical advisor regarding regulations for gas wells. A third recommendation was to hire a gas and oil inspector. She presented the Council with a packet of information containing all of her recommendations. b. Sharon Wilson regarding gas drilling and Denton's drilling ordinance. Ms. Wilson spoke on hydrocarbons in Denton County air, air pollution facts, EPA Natural Gas STAR Program, and legal parameters. c. Brandon Adams regarding Fry Street. Mr. Adams stated that he was working on a petition to acquire property on Fry Street. He indicated that they now had the required number of signatures to present the petition and was in the process of verifying as many more as they could. He presented a model of how the park should look with a band shell and park area for residents. The petition suggested getting the property donated, buy the property, rezone the area to a park or condemn the property. Once the petition was verified, the city would need to obtain the block or hold an election in November. d. Cathy McMullen regarding the urgent need for gas well drilling ordinances in Denton Texas. Ms. McMullen showed a video about emissions from the gas wells. She suggested that Denton set a precedent for other cities to follow. There was a need for stronger regulations. The State indicated that cities could set regulations for gas wells so the city should not be afraid to set regulations. Mayor Pro Tem Kamp stated that Council had talked in length during the Work Session about gas well regulations and appreciated information from citizens. D. 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 AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or City of Denton City Council Minutes April 20, 2010 Page 15 sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Mayor Burroughs requested consideration of allowing citizen reports on consent agenda items during the work session. Mayor Burroughs presented information on a final report from the Census Bureau. Council Member Watts thanked staff for the help with dirt from trucks on Bonnie Brae and the speed of trucks on Bonnie Brae. E. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of 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 7:51 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS