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.
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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.
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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