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February 16, 2010 MinutesCITY OF DENTON CITY COUNCIL MINUTES February 16, 2010 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, February 16, 2010 at 2:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Pro Tem Kamp, Council Member Gregory, Council Member Mulroy and Council Member Watts. ABSENT: Mayor Burroughs, Council Member Engelbrecht, Council Member Heggins. 1. Requests for clarification of agenda items listed on the agenda for February 16, 2010. Council Member Gregory asked about Consent Agenda Item 3C and the statement in the backup materials that the total cost of the contract was not known at this time. Bryan Langley, Director of Finance, stated that staff had been working on this project for a number of months. The initial phase was a needs assessment and gap analysis. The contract on this agenda was the actual implementation of the contract. Temporary IT and accounting staff would be used to implement the project and those costs were not known at this time. Council Member Mulroy noted that he would be abstaining from Consent Agenda Item M and would be asking for separate consideration of Consent Agenda Item N. 2. Receive a report, hold a discussion, and give staff direction regarding the FY 2008-09 Comprehensive Annual Financial Report and annual audit. Bryan Langley, Director of Finance, stated that the overview and purpose of this item was to discuss the CAFR report sections, provide a review of the accounting basis and financial statement presentation, discuss key financial information, discuss the audit process and comments, and provide an opportunity for the auditor to discuss the financial statements. Report Overview - The CAFR consisted of three distinct sections. The report had been designed to comply with GAAP/GASB guidelines. Council Member Heggins arrived at the meeting. Financial Presentation - Governmental funds used a modified accrual and current financial resources management focus. Proprietary funds used full accrual accounting and economic impact of debt issuance and payments. Individual fund level presentations were dictated based on whether the funds were governmental or proprietary in nature. Key Financial Information - The net assets for the City increased by $22.9 million in FY 2009. The combined governmental fund balances decreased by $17.8 million. The General Fund unreserved/undesignated fund balance was $22.8 million, a decrease of $2.6 million from the prior year. Audit Comments - The City received an unqualified or "clean" opinion from the audit firm. The audit firm, Weaver, did provide recommendations for one improvement regarding Compensated Absences calculation. Management agreed with the recommendation and began a process several City of Denton City Council Minutes February 16, 2010 Page 2 months ago to record all leave balances in the 7D Edwards financial system. Management would continue to evaluate whether further utilization of the 7DE system was warranted. 3. Receive a report, hold a discussion, and give staff direction regarding the preliminary FY 2010-11 Budget and Five Year Financial Forecast. Bryan Langley, Director of Finance, stated that the overview and purpose of this item was to review the adopted FY 2009-10 long-term financial plan, discuss possible changes to assumptions for the long-term financial forecast, review the preliminary FY 2010-11 five year financial forecast, discuss strategies to resolve budget issues, review the preliminary GO debt service fund forecast and next steps needed. FY 2009-10 Long Term Plan - Langley presented information on the FY 2009-10 assumptions and FY 2009-10 adopted general fund five year forecast. He provided a summary of adopted assumptions for appraised value growth, sales tax growth, compensation, health insurance, tax rate/$100 and future bond sales. Potential Changes to Assumptions - Langley reviewed the current fund balance, the sales tax, and appraised values. The fund balance was approximately $948K more than previously forecasted. It was expected to remain above the target level over the short term. Information on the FY 2008-09 monthly changes in sales tax was presented. The sales tax budget of $21.475 million for FY 2009-10 now appeared unattainable. The revised estimate for FY 2009-10 was $19.443 million. This would severely affect multiple years in the financial plan. Appraised Values - Preliminary Appraisal District information indicated most properties would not increase in value. Commercial properties were expected to decline by 10%. Combined with lower new construction values, overall property values were forecasted to fall by 1.6% in FY 2010-11. Future appraised value growth estimates needed to be revised due to moderate recovery estimates. Those figures would be 2% for 2011-12, 3% for 2010-13 and 4% each year thereafter. Preliminary FY 2010-11 Forecasts - Langley presented information on cost reductions for FY 2009-10, Efficiency Team recommendations, preliminary FY 2010-11 forecasts, gas well fund recommendations, and other considerations. FY 2009-10 Cost Reductions - the FY 2009-10 adopted budget projected a $3.9 million decline in fund balance. Due to economic slowdown, staff had implemented a number of initiatives to reduce costs including a hiring/reclassification freeze, suspension of non-essential travel, and implementing some Efficiency Team recommendations before the end of the fiscal year. Due to revenue declines, the fund balance decline was still anticipated to approach $3.5 million by year end. Efficiency Team - the FY 2009-10 adopted long term plan contemplated the need for expenditure reductions in the future years. To realize these savings, an efficiency team was created to identify potential savings and efficiencies across the city. The goal was to identify at least $500,000 in annual savings for the General Fund but initiatives were organizational wide in nature. One recommendation was to implement a cell phone stipend program in lieu of city provided phones and reduce number of cell phones. A second recommendation was to delay the City of Denton City Council Minutes February 16, 2010 Page 3 purchase of PCs/reduce the cost for future purchases. The elimination of payroll check/ direct deposit printing and distribution services was another recommendation. Incorporation of the recycling collection process into the existing janitorial services contract was also proposed. Other recommendations included the elimination of funding for mowing of the rail trail; renegotiate copier contract lease rates; and recognize anticipated savings from the installation of more energy efficient windows in City Hall. Total General Fund savings were estimated to be over $539K and approximately $697K for the entire city annually. The Efficiency Team suggested approximately 45 potential topics which were divided into Phase I and Phase II categories for consideration. Phase II projects would be evaluated over the next several months and could include use of equipment pools/reduce the number of vehicles, management of printing costs, full cost recovery fee analysis, and reduction in work week/closure of facilities. Council Member Mulroy suggested that Council look at their budget and expenditures and lower those also. Gas Well Funds - Council discussed the use of gas well funds in a December 15th work session. Due to revised General Fund financial projects, staff was recommending that the Airport Gas well funds be transferred to the General Fund which represented repayment of GF subsidy; the $500K property and sales tax transfer to the Non-Airport gas well fund be discontinued; and the Non-Airport gas well fund balance be used to pay potential General Fund one-time costs. Council Member Watts requested that Legal provide a memo on what restrictions were on that money and why. Other considerations included the recent annexations were not specifically included in the current forecast, the long term financial plan did not address the lack of funding for infrastructure and a long term strategy needed to be developed to eliminate annual deficits and provide additional resources. Future strategies for the General Fund revenue and expenditure components and possible strategies were discussed. Due to the composition of expenditures, significant reductions could not be made without affecting personnel and/or service delivery. Revenues that could be directly increased by the City Council were limited primarily to property taxes and user fees. Efficiency improvements and minor adjustments to spending would not be sufficient to correct structural funding imbalances in the General Fund. Langley reviewed a number of other possible considerations for reductions in expenditures. GO Debt Service Fund- Langley reviewed the updated long term forecast and assumptions and the planned future bond sales and potential issues. No tax rate increase for GO debt service fund was recommended. The lower property tax growth assumptions had significant impact on debt service capacity and the appraisal growth assumptions mirrored those in the General Fund. Staff was recommending issuing $7.M in GO and $4.5 in CO bonds in the spring of 2010. Debt for the public safety training facility was scheduled to be sold in FY 2011-12 but the feasibility would depend on appraised valued. The future size and timing of GO bond elections would be dependent on economic factors. An additional $10 - $15 million in debt may be needed for local match on TxDOT projects. City of Denton City Council Minutes February 16, 2010 Page 4 Next steps - Langley reviewed the budget calendar for next several months and the processes that would be included in those months. 4. Receive a report, hold a discussion, and give staff direction regarding a proposed amendment to the Denton Development Code, Section 35.14.3(B), regarding parking in the Central Business District. Brian Lockley, Development Review Administrator, stated that this was a -follow up discussion to an earlier presentation to Council. To prevent new developments from being constructed without providing adequate off-street parking before completion of the Downtown Implementation's parking component, staff was recommending that Section 35.14.3(B) of the Development Code be repealed. Currently, development of property within the Central Business District was exempt from the requirement to provide additional parking spaces which only contributed to a lack of parking in that area. This issue was presented to the Planning and Zoning Commission and while they agreed with the need for the Development Code amendment, the Commissioners felt that the amendment should not cover the entire Central Business District but rather be limited to new development within a block of the Downtown Square area. Commissioners were also concerned with parking standards being required by all developments that required a Certificate of Occupancy. Mayor Burroughs arrived at the meeting. Lockley continued with how the proposed amendment could be applied without discouraging development in the Downtown area. Originally it was determined that the amendment would apply whenever there was a change in land use that required a certificate of occupancy as well as for all new construction in the Central Business District. However, it was felt that it might place an unintended burden on existing businesses. Staff was now proposing that the amendment apply for any use where new construction was proposed, for any use where redevelopment of an existing site was proposed, for any use where expansion of the existing structure was proposed or for any change in use where the new use was more intense than the use it was directly replacing. Council discussed whether the amendment should be for the entire Central Business District or just the area connected with the Downtown Implementation Plan, the fact that this amendment would be an interim measure until the completion of the parking portion of the Downtown Implementation Plan, whether the amendment should apply to residential construction or just commercial construction, and how it would apply to commercial construction with residential located above it. After discussion, Council suggested rewording the amendment to state that development or redevelopment of property within the Central Business District would be exempt from the requirement to provide any additional parking spaces, for all land use classifications other than those listed within the Residential Land Use Categories, if permitted within the zoning district approved for that location. Following the completion of the Work Session, the Council convened into a Closed Session at 3:55 p.m. to discuss the following: City of Denton City Council Minutes February 16, 2010 Page 5 1. Closed Meeting: A. Deliberations regarding consultation with the City Attorney - Under Texas Government Code Section 551.071, Deliberations regarding Economic Development Negotiations - Under Texas Government Code Section 551.087, and Deliberations regarding real property - Under Texas Government Code Section 551.072. 1. Receive a report and hold a discussion regarding legal issues on matters regarding the leasing of land, financing and contractual matters of a city facility on University of North Texas property located at I-35 and North Texas Blvd. The discussion shall include financial information the City Council will review, including the offer of financial or other incentives. This discussion is held in which the duty of the attorney to the governmental body under the Texas Disciplinary rules of Professional conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. B. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorney - Under Texas Government Code Section 551.071. 1. Discuss, deliberate and receive information from staff and provide staff with direction pertaining to the grant of property within the Denton Rail Corridor to the DART or 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 DART or DCTA. Consultation with the City's attorneys regarding legal issues associated with the granting of said property 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. C. Consultation with Attorney -Under Texas Government Code Section 551.071. 1. Consider and discuss status of a claim against the City of Denton by Dustin Epting. 2. Consultation, discussion, deliberation, and receipt of information from the city's attorneys involving legal matters relating to the award of competitive City of Denton City Council Minutes February 16, 2010 Page 6 sealed bids for goods and services pursuant to Chapter 252 of the Texas Local Government Code where 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. 3. Receive a briefing and status report from the City's attorneys regarding the litigation entitled The City of Denton, Texas v. The University of North Texas, Cause No. 2008-20043-158, now pending before the 158th Judicial District Court in and for Denton County, Texas; discuss, deliberate and provide the attorneys with direction. 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. D. Consultation with Attorneys - Under Texas Government Code, Section 551.071; Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. 1. Receive a briefing, discuss and deliberate regarding the status of the activities required to close the pending Texas Municipal Power Agency ("TMPA") litigation entitled Ex Parte Texas Municipal Power Agency I, Cause No. D-1- GN-08-003426, pending in the 126th Judicial District Court in and for Travis County, Texas; Ex Parte Texas Municipal Power Agency 11, Cause No. D-1- GN-08-003693, in the 261st Judicial District Court in and for Travis County, Texas; and Texas Municipal Power Agency, Plaintiff v. City of Bryan, Texas, Defendant, Counter-Plaintiff and Third-Party Plaintiff v. City of Denton, Texas and City of Garland, Texas, Third-Party Defendants, Cause No. 28169, pending in the 506th Judicial District Court in and for Grimes County, Texas; as well as the steps necessary to proceed to an order dismissing each of the said TMPA cases and the Public Utilities Commission of Texas proceedings as to all parties; discuss and deliberate several public power issues involved with the above-referenced TMPA litigation. Receive a briefing and status report from the City's attorneys regarding said pending TMPA litigation. Provide the City's attorneys with direction. 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. 2. Receive a presentation from DME staff, discuss, deliberate and consider possible changes to the ECA Rate Rider to the electric rate ordinance, which issues are public power utilities competitive and financial matters. Receive legal advice from the City's attorneys regarding possible changes to the ECA Rate Rider. Provide the City's attorneys with direction. 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. City of Denton City Council Minutes February 16, 2010 Page 7 Mayor Pro Tem Kamp motioned, Council Member Mulroy seconded that Item D.I. was appropriate to meet in Closed Session under competitive matters for certain public power utilities. On roll call vote, Council Member Heggins "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy, Council Member Watts and Mayor Burroughs "aye". Motion carried unanimously. The Council convened in a regular meeting in the City Chambers at 6:30 p.m. Council Member Watts left the meeting. 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. IHOP-Shriners Hospital proclamation 2. Severe Weather Awareness Week in Denton Mayor Burroughs presented the proclamations for the IHOP-Shriners Hospital and Severe Weather Awareness Week. 3. Resolution of Appreciation for Jim Witt This item was not considered. 3. CONSENT AGENDA Mayor Burroughs noted that Item N would not be considered and Item M would be pulled for separate consideration. Council Member Mulroy motioned, Council Member Gregory seconded to approve the Consent Agenda and accompanying ordinances with the exception of Item M and N. On roll call vote, Council Member Mulroy "aye", Council Member Heggins "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. Ordinance No. 2010-044 A. Consider adoption of an ordinance amending Section 22-38 of Chapter 22 Parks and Recreation of the Code of Ordinances of the City of Denton, Texas, relating to facility and program fees by adopting a schedule of fees; repealing all fees in conflict with such schedule, repealing Ordinance No. 2009-224 and all ordinances in conflict with the new schedule of fees; and providing an effective date. The Parks, Recreation and Beautification Board recommend approval (4-0). City of Denton City Council Minutes February 16, 2010 Page 8 Ordinance No. 2010-045 B. Consider adoption of an ordinance of the City of Denton, Texas to declare the intent to reimburse expenditures from the General Fund with Certificates of Obligation with an aggregate maximum principal amount equal to $508,185 to allow for the purchase of a Fixed Asset module in the JD Edwards Financial System and a Municipal Court Software System; and providing an effective date. Ordinance No. 2010-046 C. Consider adoption of an ordinance to the City of Denton, Texas authorizing the City Manager to execute a professional services agreement between the City of Denton and MarketSphere Consulting, LLC for implementation of a JD Edwards Fixed Asset and Job Cost Functionality software module in the JD Edwards financial system; authorizing the expenditure of funds; and providing an effective date (RFSP 4442-JD Edwards Fixed Asset Implementation and Increased Job Cost Functionality awarded to MarketSphere Consulting, LLC in an amount not to exceed $252,340). Ordinance No. 2010-047 D. Consider adoption of an ordinance accepting competitive bids by way of an Interlocal Cooperative Purchasing Program Participation Agreement with the City of Carrollton under Section 271.102 of the Local Government Code, for the purchase of Incode Software for the City of Denton Municipal Court; providing for the expenditure of funds therefor; and providing an effective date (File 4465- Interlocal Agreement for Incode Software for Municipal Court with the City of Carrollton, contract awarded to Tyler Technologies, Inc. in the amount of $258,185). Ordinance No. 2010-048 E. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of a covered parking structure for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (Bid 4430-awarded to the lowest responsible bidder meeting specification, Links Construction, LLC, in the amount of $331,700). The Public Utilities Board recommends approval (5-0). Ordinance No. 2010-049 F. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of a 42-inch water transmission main from Scripture Street north along Bonnie Brae to West Windsor Drive and over to Loop 288; providing for the expenditure of funds therefore; and providing an effective date (Bid 4466-awarded to the lowest responsible bidder meeting specification, SJ Louis Construction of Texas, LTD in the amount of $4,670,710). The Public Utilities Board recommends approval (7-0). City of Denton City Council Minutes February 16, 2010 Page 9 Ordinance No. 2010-050 G. Consider adoption of an ordinance of the City of Denton, Texas, appointing Robin A. Ramsay as Presiding Judge for the City of Denton Municipal Court of Record; establishing term of office for the Municipal Judge in accordance with applicable state statutes; providing for renewal and extension of term absent specific action by Council; authorizing the Mayor to execute an employment agreement for term of office; ratifying terms of the employment agreement; and declaring an effective date. Ordinance No. 2010-051 H. Consider adoption of an ordinance of the City Council of the City of Denton, Texas approving a renewal of Beneficial Reuse Water Contract by and between the City of Denton, Texas and the Oakmont Management Corp.; providing for the City Manager's execution thereof, providing for the expenditure of funds therefor; providing for retroactive ratification and approval thereof, and providing an effective date. The Public Utilities Board recommends approval (5-0). Ordinance No. 2010-052 1. Consider adoption of an ordinance authorizing the City Manager to approve a first amendment to an Airport Lease dated December 1, 1989 between the City of Denton, Texas and David Smith at the Denton Municipal Airport; and providing an effective date. The Airport Advisory Board recommends approval (7-0). Ordinance No. 2010-053 J. Consider adoption of an ordinance authorizing the City Manager to approve a First Amendment to an Airport Lease dated December 1, 1989 between the City of Denton, Texas and William Evans at the Denton Municipal Airport; and providing an effective date. The Airport Advisory Board recommends approval (7-0). Ordinance No. 2010-054 K. Consider adoption of an ordinance authorizing the City Manger to approve a first amendment to an Airport Lease dated December 1, 1989 between the City of Denton, Texas and Tony Montgomery at the Denton Municipal Airport; and providing an effective date. The Airport Advisory Board recommends approval (7- 0). Ordinance No. 2010-055 L. Consider adoption of an ordinance authorizing the City Manager, or his designee, to execute on behalf of the City of Denton an Estoppel certificate with Justin State Bank as requested by Hangars Plus L.L.C./Tony Montgomery to accommodate a mortgage loan secured with the hangar constructed at 4800 Lockheed Lane; and providing an effective date. The Airport Advisory Board recommends approval (7- 0). City of Denton City Council Minutes February 16, 2010 Page 10 Ordinance No. 2010-056 M. Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Denton Community Theatre, Inc. from the Downtown Incentive Grant Program not to exceed $8,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (6-0). Council Member Mulroy left the meeting with a potential conflict of interest. Council Member Gregory motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Heggins "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. This item was not considered. N. Consider adoption of an ordinance of the City of Denton, Texas amending the Denton Municipal Electric Rate Ordinance contained in Ordinance No. 2009-218, solely as to Rate Rider ECA (Energy Cost Adjustment); providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (5-0). The minutes noted below were approved. 0. Consider approval of the minutes: January 19, 2010; February 1, 2010; February 2, 2010 Council Member Mulroy returned to the meeting. 4. PUBLIC HEARINGS Ordinance No. 2010-057 A. Continuation of a public hearing on the Sale of the Denton Branch Rail Trail Corridor owned by the City of Denton to the Dallas Area Rapid Transit Authority (DART) for the purposes of reactivation of a rail line between Denton and Carrollton and consideration of an ordinance granting approval for the sale and transfer of the Denton Branch Rail Trail from approximately Mile Post 721.89 to Mile Post 729.5 for the purpose of a commuter railroad in accordance with Chapter 26 of the Texas Parks and Wildlife Code; and providing an effective date. Bob Tickner, Park Planning Administrator, stated this item dealt with the sale of the Denton Branch Rail Trail to DART for commuter rail operations. Chapter 26 of the Texas Parks and Wildlife Code required a public hearing to determine no other alternatives were available for use of the property. Staff had reviewed the request and all alternatives and recommended approval. The Parks Board had also considered the item and recommended approved. The Mayor opened the public hearing. The following individuals spoke during the public hearing: City of Denton City Council Minutes February 16, 2010 Page 11 Robert Donnelly had questions regarding the relationship among the entities. Bob Clifton, 1800 Morse, Denton, 76205 - spoke in opposition. The Mayor closed the public hearing. Council Member Heggins motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Mulroy "aye", Council Member Heggins "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. B. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Neighborhood Residential 2 (NR-2) zoning district classification and use designation to a Neighborhood Residential Mixed Use 12, (NRMU-12) zoning district classification and use designation, and repealing Ordinance No. 87-113 allowing Specific Use Permit 5-193 for a Girl Scout Council office/headquarters and activity/training center and Ordinance No. 87-154, an amendment of Ordinance 87-113; for approximately 5.2 acres of land located at 4000 W. University Drive, legally described as Ranch Estates, Block E (SW corner), in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000 for violations thereof, providing a severability clause and an effective date. (Z09-0011) The Planning and Zoning Commission recommends denial of this request (6-1). A SUPERMAJORITY VOTE BY COUNCIL IS REQUIRED FOR APPROVAL. Mayor Burroughs indicated that Item 4B and 4C required a supermaj ority vote by Council which could not be obtained because two members were absent. He indicated that he would not be opening the public hearing on 4B and would be receiving direction on how to proceed on 4C. City Manager Campbell stated that staff was suggesting Council remand Item 4B back to the Planning and Zoning Commission without holding the public hearing. Mayor Pro Tem Kamp motioned, Council Member Mulroy seconded to remand Item 4B back to the Planning and Zoning Commission without holding the public hearing. On roll call vote, Council Member Mulroy "aye", Council Member Heggins "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. C. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for zoning change from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district classification and use designation, with an overlay district; on approximately 15.3 acres of land located west of Stuart Road and approximately 600 feet northwest of the intersection of Windsor Street and Stuart Road; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date (Z08-0016). The Planning and Zoning Commission recommends approval of the request (4-2). A SUPERMAJORITY VOTE BY COUNCIL IS REQUIRED FOR APPROVAL. City of Denton City Council Minutes February 16, 2010 Page 12 Mayor Burroughs indicated that Council would not be considering this item but would open the public hearing and continue it to the March 2nd meeting. The Mayor opened the public hearing. Council Member Gregory motioned, Council Member Heggins seconded to continue the public hearing on this item to the March 2nd council meeting. On roll call vote, Council Member Mulroy "aye", Council Member Heggins "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2010-058 A. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute an Agreement Regarding Exercise of Option to Repurchase Rail Corridor, as appropriate, by and between the City of Denton, Texas ("City") and the Dallas Area Rapid Transit Authority ("DART") transferring the Denton Rail Corridor, consisting of those lands described in that certain Quitclaim, dated August 9, 1993, County Clerk File No. 93-R0058485, as corrected by Correction Quitclaim Deed, dated June 1, 2001, County Clerk File No. 2001-R0057561, and as corrected by Correction to Correction Quitclaim Deed, dated June 28, 2001, County Clerk File No. 2001-R0076013, all recording references to the Real Property Records of Denton, Texas. City Attorney Burgess indicated that approval of this agreement would allow the Denton Rail corridor transfer to DART and DCTA for use of the corridor for passenger rail service to Denton. The agreement preserved the city's pipeline easement in the corridor. Council Member Gregory motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Mulroy "aye", Council Member Heggins "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. Ordinance No. 2010-059 B. Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $65,000,000 in principal amount of "City of Denton Combination Tax and Revenue Refunding Bonds, Series 2010"; establishing parameters for the redemption of certain outstanding obligations of the City; authorizing the issuance of the bonds; levying an annual ad valorem tax and providing for the security for and payment of said bonds; approving and authorizing instruments and procedures relating to said bonds; and enacting other provisions relating to the subject. Bryan Langley, Director of Finance, stated that the TMPA provided electric power to Denton. The TMPA member cities and TMPA have agreed to a power sales agreement and reviewed the details of that agreement. The other member cities had already approved the agreement as well as TMPA. City of Denton City Council Minutes February 16, 2010 Page 13 Council Member Heggins motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Mulroy "aye", Council Member Heggins "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. C. Consider appointments to the following Boards and Commissions: 1. Construction Advisory & Appeals Board 2. Human Services Advisory Committee No nominations/appointments were made at this meeting. D. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: a. Frenchy Rheault regarding GDAC membership month. Mr. Rheault was not present at the meeting. b. Bob Clifton regarding Fry Street. Mr. Clifton spoke regarding his petition to purchase the block of Oak, Fry, Hickory and Welch and the upcoming meeting with developer of the proposed development on Fry Street. c. Katie Humphries regarding library funding. Ms. Humphries was not present at the meeting. d. Willie Hudspeth regarding concerns of Southeast Denton. Mr. Hudspeth was not present at the meeting. e. Hagar Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present at the meeting. f. Jordan Hudspeth regarding concerns of Southeast Denton. Ms. Hudspeth was not present at the meeting. City of Denton City Council Minutes February 16, 2010 Page 14 g. Robert Donnelly regarding drainage. Mr. Donnelly spoke again about his concerns regarding drainage from the proposed Medpark Train Station. He presented pictures of the area with the drainage issues. E. 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 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. Council did not have any items. F. 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. G. 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 7:47 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS