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September 14, 2010 MinutesCITY OF DENTON CITY COUNCIL MINUTES September 14, 2010 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, September 14, 2010 at 3:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member King, Council Member Heggins, Council Member Gregory, Council Member Engelbrecht, Mayor Burroughs, Council Member Watts, and Mayor Pro Tem Kamp. ABSENT: None. 1. Requests for clarification of agenda items listed on the agenda for September 14, 2010. Council Member Gregory asked about Consent Agenda Item A. He asked if the time line plan was still on track to start opening retail. Linda Ratliff, Director of Economic Development, stated that the developer still planned on opening in the fall of 2012. Council Member Watts asked if staff was confident that the activity would still meet the guidelines. Mark Cunningham stated that it would depend on the particular development schedule. He indicated he would provide an informal staff report on what has happened so far with the development. Mayor Burroughs asked who would be receiving the letter regarding the route for the Oncor transmission lines. He questioned if the next step would be for a letter to go to the Public Utilities Commission. City Manager Campbell stated that the proposed letter on this agenda could go to both Oncor and the Public Utilities Commission. City Manger Campbell stated that staff would like to remove Item B from the Consent Agenda and not be considered. 2. Receive a report, hold a discussion and give staff direction concerning the proposed Oncor 345 kV Transmission Line from Krim West to Anna. Howard Martin, Assistant City Manager, presented information on the proposal. Oncor was proposing the constriction of a transmission line from Krim west to Anna. Oncor had looked at more than 90 different routes that ranged from 51 to 96 miles in length. South of Lake Ray Roberts, there was a potential that the lines would cross the green belt corridor which was established as a recreational area when the lake was built. Staff was concerned about aerial crossings proposed for that particular area. Oncor filed its preferred route with the Public Utilities Commission last week. Evaluation of that route by the Public Utilities Commission did not mean that it would be recommended by the Public Utilities Commission. It would take about 6 months to complete the timeline so there was time to have public input on the proposed route. Staff was evaluating two options for the routes. The preferred route would not have any aerial City of Denton City Council Minutes September 14, 2010 Page 2 crossing across the greenbelt. Under the existing contract with the Corps, the existing transmission line easement could be used which was north of Highway 380 adjacent to the railroad corridor. The resolution in the backup materials identified two options in order of preference for Council consideration and direction for Council's formal position to submit to the Public Utilities Commission. Martin presented information on the proposed stricture of the poles on the proposed route and the proposed strictures on the alternate routes. Mayor Burroughs asked if the options were to accommodate existing transmission and new transmission. Martin replied correct and also for easement restrictions. Staff had also looked at TMPA easements to get around the southern route across the greenbelt. Council Member Watts asked if in the TMPA easement were there currently lines there which would be rebuilt with the new Oncor strictures. He questioned if any financial arrangements had been done with TMPA. Martin stated that there had been no discussions with TMPA at this point in time. Staff was merely looking at an opportunity to not duplicate another transmission line in the area. Council Member Gregory asked whether the Corps had already indicated no expansion of the easements. Martin stated that the policy of the Corps would have allowed an aerial crossing if the lines were outside the greenbelt. No new strictures could be built in the greenbelt. Council Member Gregory asked if the Corps could override the Public Utilities Commission. Martin stated that the Corps could set policies outside the greenbelt and still have an aerial crossing that met the Corps policy. The proposed resolution identified two options. He presented a redraft of the letter to transmit with the resolution to Oncor, the Public Utilities Commission or both. There would be time to go back and revisit any of these issues. Mayor Pro Tem Kamp asked if Oncor had considered the staffs proposed route. Martin stated that the original preliminary routing that was available during the public hearings was discussed but the preferred route identified in the Public Utilities Commission submission did not have all of the components from the original route. Mayor Pro Tem Kamp stated that Council was being asked to pass a resolution for the city's preferred route. Martin stated that caution was needed in expressing a preference for a preferred route because staff was only focusing on a small portion of the preferred route. The proposed letter was redrafted to take out wording on preferred route. City of Denton City Council Minutes September 14, 2010 Page 3 3. Receive a report, hold a discussion, and give staff direction on the 2010-11 Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast. Bryan Langley, Director of Finance, recapped the budget discussions thus far. At the end of July Council was presented the proposed budget and a number of discussions happened over the following weeks on the proposal. Staff would be bringing the completed budget for Council approval at the September 21st meeting. It would include the budget, rate ordinances, tax rate, etc. for the Council to adopt. Council Member Watts asked if staff had received the next sales tax figures. Langley stated that staff had received the July payment last week. As noted in the backup materials, the payment was flat of what was received the prior year from 2009. Final figures would not be available until November of this year for the current fiscal year. Currently the sale tax was down about 2%. Mayor Burroughs stated that the budget was based on a 5% figure. Langley stated that the figures had not changed due to changes in the sales tax over the months. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 4:00 p.m. to consider the specific items listed below. 1. Closed Meeting: A. Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086; Deliberations regarding Real Property - Under Texas Government Code Sec. 551.072. 1. Receive a further presentation from Staff regarding public power competitive and financial matters, and a consultation regarding the deliberation of real property issues regarding the possible constriction and installation of a state-of-the-art combined heat and power (CUP) tri- generation station in the industrial district in the City of Denton; discuss and provide Staff with direction. Mayor Pro Tem Kamp motioned, Council Member Engelbrecht seconded that this item was appropriate for a Closed Session discussion under the Public Power Utilities Competitive Matter exception. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. B. Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. City of Denton City Council Minutes September 14, 2010 Page 4 1. Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric ("DME") for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of DME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. This item was not considered. C. Deliberations regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086; 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 further information from staff and provide staff with direction pertaining to further legal matters affecting the settlement tentatively approved on March 9, 2010 by and between the City, DBT Porcupine, L1, a Delaware Business Trust ("DBT") and BDC Family Limited Partnership, a Texas Limited Partnership regarding the settlement of conflicting legal claims and the granting of an easement to the City by DBT regarding that certain 3.814 acre tract of land situated at the northeast corner of Loop 288 and Spencer Road, in the City of Denton, Denton County, Texas and lying in the Mary L. Austin Survey, Abstract No. 4 and in the M.E.P. and P.R.R. Survey, Abstract No. 927, in the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding further legal issues associated with the compromise of conflicting claims regarding said land, where such discussion and deliberation in an open meeting would have a detrimental effect on the position of the City Council in negotiations regarding a final settlement of such claim and 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. Council Member Engelbrecht motioned, Council Member King seconded that this item was appropriate for a Closed Session discussion under the Public Power Utilities Competitive Matter exception. On roll call vote, Council Member Watts "aye", Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously. D. Consultation with Attorney -Under Texas Government Code Section 551.071. 1. Consider and discuss the status of legal issues relating to the settlement of City of Denton v. Biodiesel Industries, Inc., et al., Cause No. 4:08-cv-00173 and subsequent claims and provide direction to the city's attorneys regarding same. City of Denton City Council Minutes September 14, 2010 Page 5 2. Consult with City's attorneys regarding the claim and settlement demand of Love's Travel Stops & Country Stores, and give consideration and feedback regarding future disposition of the matter. E. 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. 1. Receive a report and hold a discussion regarding legal issues on matters 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. Also hold a discussion regarding granting economic development incentives to Target Corporation with respect to development of a distribution center. This discussion shall include commercial and financial information the City Council has received from Target Corporation which the City Council seeks to have locate, stay, or expand in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentives F. Deliberation regarding personnel matters - Under Texas Government Code Section 551.074. 1. Deliberate and discuss the evaluation, duties, discipline, procedures, and contracts of the City Manager, City Attorney, and Municipal Court Judge. The Council convened into a Special Called Regular Meeting at 6:50 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards 1. Constitution Week Mayor Burroughs presented the proclamation for Constitution Week. 2. Duck Derby Day Mayor Burroughs presented the proclamation for Duck Derby Day. City of Denton City Council Minutes September 14, 2010 Page 6 3. CONSENT AGENDA Mayor Burroughs noted that Item 3B would not be considered. Mayor Pro Tem Kamp requested that item 3D be pulled and considered individually after approval of the Consent Agenda. Council Member Watts questioned if Item C were not pulled from the Consent Agenda would it be available for discussion while on Consent. City Attorney Burgess suggested removing the item from the Consent Agenda if Council wanted individual discussion on it. Council Member Watts requested that Item C be pulled for separate consideration. Ordinance No. 2010-210 A. Consider adoption of an ordinance of the City of Denton, Texas approving an amendment to an Economic Development Program Grant Agreement dated June 15, 2010 between the City of Denton and Allegiance Hillview, L.P., which was duly assigned, in part, to RED Rayzor Ranch, LLC; and providing an effective date. Council Member Watts motioned, Council Member King seconded to adopt the ordinance for Consent Agenda item 3A. On roll call vote, Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Burroughs "aye", Council Member Watts "aye", and Mayor Pro Tem Kamp "aye". Motion carried unanimously. B. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the Mayor to execute an Amendment to Interlocal Cooperation Agreement, by and between the City of Denton, Texas ("City") and the Denton Independent School District ("DISD"), amending that certain Interlocal Cooperation Agreement, dated on or about July 20, 2004, by and between the City and DISD, granting the right to utilize additional street right of way to DISD for the DISD fiber optic system, and providing an effective date. Item B was not considered. C. Consider approval of a resolution authorizing the Mayor to execute and deliver correspondence and other documentation to Oncor Electric Delivery Company LLC ("Oncor"), the Public Utility Commission of the State of Texas regarding the proposed electric transmission line contemplated to be constricted by Oncor together with the transmission line's potential location within, over, across or in the vicinity of the Greenbelt Corridor connecting Ray Roberts Lake to Lake Lewisville; and providing an effective date. Mayor Burroughs indicated that there were a number of speaker cards for Item 3C. City of Denton City Council Minutes September 14, 2010 Page 7 The following individuals spoke on Item C: David Martino, 4974 Christi Lane, Aubrey, 76227 - opposed Tim Beaty, 2459 Blackjack Road, Aubrey, 76227 - opposed Richard Rogers, 7260 St. Johns Court, Pilot Point, - opposed Linda Campbell, 7700 Zachery Road, Aubrey, 76227 - opposed Donald Cross, 5637 Harmony Ranch Road, Aubrey, 76227 - opposed Jim Patrick, 3030 N. Trinity Rd, Denton, 76208 - opposed Sharon Grisgby, 2160 Blackjack Road, Aubrey, 76227 - opposed J.W. Brinkley, 5829 Harmony Ranch Road, Aubrey, 76227 - opposed Katie Happ, 3150 Elm Bottom Circle, Aubrey, 76227 - opposed Mauri Chase, 4641 New Hope Road, Aubrey, 76227 - opposed Mike Bricia, 3140 North Trinity Road, Denton, 76208 - Denton Roy Anderson, 3908 White Tail Drive, Denton, 76208 - opposed Roger Cox, 3912 Deer Forest Drive, Denton, 76208 - opposed Bahram Paiani, 5695 Harmony Ranch Road, Aubrey, 76227 - opposed Judy Krzeminski, 5800 Harmony Ranch Road, Aubrey, 76227 - opposed Mary Lavender, 3140 North Trinity Road, Denton, 76208 - opposed Mayor Burroughs indicated that Comment Cards in opposition were received from: Leslie Slama, 2065 Spring Hill Road, Aubrey, 76227 Pari Shams, 5695 Harmony Ranch Road, Aubrey, 76227 David and Paula Robertson, 3673 Blackjack Road, Aubrey, 76227 Adam and Jennifer Friday, 2960 Blackjack Road, Aubrey, 76227 David Grant, 3420 Elm Bottom Circle, Aubrey, 76227 Annice Norman, 3070 N. Trinity Road, Denton, 76208 Scott and Susannah Talbot, 5170 Burger Road, Aubrey, 76227 Joann Blocker, 5856 Harmony Ranch Rd., Aubrey, 76227 David and Janet Spector, 3909 Deer Forest, Denton, 76208 Tyler Bridge, 2327 Loving Lane, Krim, 76249 Jose and Marie Taylor-Flores, 1924 Countryside, Denton, 76208 Richard Rogstad, 6383 Fish Trap Road, Denton, 76208 Kim Brinkley, 5829 Harmony Ranch Road, Aubrey, 76227 Dan Grigsby, 2160 Blackjack Road, Aubrey, 76227 Mark and Loree Denney, 5867 Harmony Ranch, Aubrey, 76227 Ann Gattuso, 4550 New Hope Road, Aubrey, 76227 Deanie Martin, 4974 Christi Lane, Aubrey, 76227 Austin Beaty, 3797 Blackjack Road, Aubrey, 76227 Carolyn Vaughn, 3200 Elm Bottom Circle, Aubrey, 76227 Ed Pearce, 5010 Oak Bend Circle, Denton, 76208 Lauren Poleski, 1271 Enclave Circle, Arlington, 76011 Eric Johnson, 9524 Arvin Hill Road, Aubrey, 76227 Council Member Watts stated that Council had received information from staff regarding how the resolution was drafted and Council may need to rethink the wording. He questioned if the wording should indicate that Council did not want the lines in the easement or put the lines in this particular place in the easement. City of Denton City Council Minutes September 14, 2010 Page 8 Council Member Watts motioned, Council Member King seconded to pull the item and have staff review the language based on the citizen comments received this evening. City Attorney Burgess stated that Council could continue the item to the next meeting which would have it return in the same format. If council wanted it to fail as it was currently written and direct staff to present it in a different format, then the proposal could fail by not acting on it and bring it back in a different format. Council Member Watts withdrew his motion and Council Member King withdrew his second. Council Member Watts motioned, Council Member King seconded to deny the current resolution directing staff to bring back different language based on the comments received at this meeting. On roll call vote, Council Member King "aye", Council Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Burroughs "aye", Council Member Watts "aye", and Mayor Pro Tem Kamp "aye". Motion carried unanimously. Ordinance No. 2010-211 D. Reconsider adoption of an ordinance of the City of Denton, Texas approving and authorizing the Final Compromise, Settlement and Release of All Claims by and between the City of Denton, Texas, DBT Porcupine, L1, a Delaware Business Trust and BDC Family Limited Partnership, a Texas Limited Partnership; authorizing the City Manager and City Attorney to act on the City's behalf in executing any and all conveyances and other supporting documents pertaining thereto; and to take such other and further actions as are necessary to effectuate and finalize the settlement; authorizing the City Manager to execute a Quit Claim Deed regarding the tract in issue; authorizing the City Manager to receive an easement on behalf of the City of Denton, Texas; authorizing the expenditure of funds therefor; and declaring an effective date. Mayor Pro Tem Kamp motioned, Council Member Watts seconded to reconsider Item D. On roll call vote, Council Member King "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Burroughs "aye", Council Member Watts "aye", and Mayor Pro Tem Kamp "aye". Motion carried unanimously. Council Member Gregory motioned, Council Member Engelbrecht seconded to adopt the ordinance for Item D with the inclusion of DBT and DBC in place of the word "parties". On roll call vote, Council Member King "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Burroughs "aye", Council Member Watts "aye", and Mayor Pro Tem Kamp "aye". Motion carried unanimously. 4. ITEMS FOR INDIVIDUAL CONSIDERATION A. 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, City of Denton City Council Minutes September 14, 2010 Page 9 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. B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. Mayor Burroughs announced that Council would be going back into Closed Session to continue with Item 1.F.1. C. 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. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS