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December 6, 2011 Minutes CITY OF DENTON CITY COUNCIL MINUTES December 6, 2011 After determining that a quorum was present, the City Council of the City of Denton, Texas convened in a Work Session on Tuesday, December 6, 2011 at 3:00 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 King, Council Member Roden, Council Member Watts. ABSENT: None. 1. Citizen Comments on Consent Agenda Items There were no citizen comments presented on Consent Agenda items. 2. Requests for clarification of agenda items listed on the agenda for December 6, 2011. City Manager, George Campbell, stated that there was a change on Item 3H. Quentin Hix, Airport Manager, stated that the request was for Council to accept the donation of an airport rescue and fire fighting vehicle from Jet Works Air Center. The letter of commitment from Jet Works confirmed the donation of the vehicle. Staff was asking the Council to acknowledge that and to authorize the City Manager to accept the donation. Hix stated that there was a last minute issue that was brought to staff’s attention. Jet Works Air Center had completed their financing arrangement, but they would not have a clear title to the vehicle for 120 days. City Attorney, Anita Burgess, stated that we were currently operating the vehicle under a lease agreement with Jet Works which would expire December 13, 2011. She stated that staff would bring the lease forward to Council at the December 13, 2011 meeting to extend it until April when we formally accepted the vehicle. Council Member Engelbrecht asked about Item 3F and the contract amount. Elton Brock, Purchasing Manager, stated that it was a five-year contract up to $150,000 per year. Council Member Roden asked if everything related to Item 3N would be addressed during the presentation later in the work session. City Manager Campbell stated yes. 3. Receive a report, hold a discussion and give staff direction regarding the various forms of communications, including Social Media, used by the City to reach the public, council and staff. Kara Roberson, Marketing Communications Administrator, briefed the Council on the various communication efforts to keep the public informed about news, events, programs and services that we offered here in the City. We reach out to the public through a variety of outlets. Some of the tools used to get information out to the public included DTV NewsBreak, Facebook, billboards. She stated that various audiences received information differently. City of Denton City Council Minutes December 6, 2011 Page 2 She stated that we still printed information. There was an audience that was still consuming messages through print, in the form of brochures, posters fliers, billboards, newsletters, door hangers, calendars, bill stuffers, print ads. Kevin McGinnis, Website/Graphic Administrator, briefed the Council regarding the website. He stated that there were content managers in various departments and they upload information to the website. He stated that 52-54% of the website traffic originated from the homepage. In 2010, the City brought on a mobile version of the website. It was identical as the main website, but without all the pictures and images. McGinnis stated that when they looked at Social Media, very few cities had a directive in terms of how they would use social media. The City’s directive provided guidelines, which were intended to govern employees who were posting on behalf of the City of Denton. There was a request form that designated who was going to be the moderator for that department, what kind of content they were going to be putting on their social media pages, and why - and hopefully that tied into their strategic plan for communication for their department. The Director signed off and the request was sent to the Public Communications Office and then forwarded to the City Manager for final approval. The official City of Denton social networks included: eight Facebook accounts, six Twitter accounts, and one YouTube Channel. John Cabrales, Public Information/Intergovernmental Relations Officer, briefed the Council regarding media relations. He stated that press releases were sent to local and regional media groups. Staff had developed relationships with reporters covering municipal news. City communicators also prepared talking points and worked with staff and media groups to cover City news stories. Cabrales stated that one of the things the City was looking at was establishing a rumor control page on the website to provide accurate information about stories circulating in the community. He stated that forms of crisis communications included CodeRed, DME’s voice recognition system, cable television emergency alert system, and press conferences. 4. Receive a report, hold a discussion and give staff direction regarding revisions to the Downtown Incentive Reimbursement Grant Program. The Downtown Task Force recommends approval (14-0). The Economic Development Partnership Board recommends approval (8-0). Julie Glover, Economic Development Program Administrator, stated that the Council had adopted the Downtown Incentive Reimbursement Grant Program in 2007 and had allocated $50,000 for each fiscal year through 2011-2012. There were some concerns that these grants did not serve as true incentives. An incentive was meant to encourage development that would not have occurred unless the incentive was provided. The Council felt that many of these projects would have been completed even if the grants had not been awarded. The Council had asked staff to review the policy and to bring it back for Council consideration. Glover stated that a subcommittee of the Downtown Task Force had met to discuss changes to the grant policy, application and scoring mechanism. They presented their suggestions to the Downtown Task Force and the Economic Development Partnership Board. The following revisions were recommended: City of Denton City Council Minutes December 6, 2011 Page 3 1) Change the name from “Downtown Incentive Reimbursement Grant Program” to “Downtown Reinvestment Grant Program.” This better described the purpose of the grant which was to assist businesses with the costs involved in renovation/redevelopment projects and developing on infill sites. 2) Change all references to the “Denton Central Business District” to “Downtown Implementation Plan (DTIP) area.” When the Form-Based Code was passed, the Central Business District zoning would become obsolete. 3) Change the maximum grant allowed from $50,000 to $25,000. 4) Change the allocation limits to be based on “property” instead of “applicant.” By applying the limitation of $25,000 per property, the property owner and a tenant might both apply for grants; however, no more than $25,000 could be awarded in one year. 5) On page 1, under Guidelines, change “Property Appearance Guidelines” to “City of Denton’s Municipal Codes and Ordinances.” 6) On pages 2, 10 and 11, change review criteria to reflect new scoring items: “Increases property value or sales tax revenues; historic accuracy; utility upgrades/impact fees; increases downtown population (residents, day or night users); location; and other.” 7) On page 3, under “Grant Application Process,” add “”Grants of $10,000 or less will be subject to approval by the Downtown Task Force. Grants more than $10,000 will be reviewed by the Economic Development Partnership Board. Grants more than $10,000 require a recommendation from the EDPB. Grants more than $10,000 will be placed on the City Council agenda for final approval.” 8) On page 9, in the agreement, last paragraph, first sentence, change to “I understand that if I am awarded a Downtown Reinvestment Grant by the City of Denton...” 9) Grants will be scored by Task Force members and averaged to reach an aggregate scoring number (page 11). Council Member Roden asked who was on the task force and how they were picked. Glover stated that currently they were a sub-committee of the Economic Development Partnership Board. Once these changes went into effect, the Economic Development Partnership Board would formally appoint voting members of the Task Force each year, which would be responsible for scoring and recommending grants. Mayor Pro Tem Kamp stated that she knew of several businesses that would not have been able to do their project without the grant. Council Member Watts stated that he was not against downtown development. He just felt that there were other small businesses around the City that did not receive the benefit of these grants. He felt that the money could be better spent elsewhere. He suggested that if the City still wanted to have a program – divide it up citywide. He felt that the program might have served a purpose in the beginning but was not sure it did now. City of Denton City Council Minutes December 6, 2011 Page 4 Council Member Gregory asked if staff had been approached for similar kinds of funding for other re-development in other parts of the city. Glover stated that they had only been approached by one business. Mayor Burroughs felt that the proposed revisions to the program were better than the current process. Council Member Roden agreed that there were other business areas and / or neighborhoods that had need for funding through a similar program. General consensus was to move forward with the proposed revisions to the program. Council Member Watts asked that for grants under $10,000 that were awarded, staff send Council an informal staff report to keep them apprised of what was going on. 5. Receive a report, hold a discussion and give staff direction regarding a resolution adopting a policy to establish guidelines and procedures for requests for City sponsorship of special events and programs. Emerson Vorel, Director of Parks and Recreation, stated that the City had no policy or guidelines addressing requests for sponsorship of special events. Historically requests had included the use of City facilities and equipment at no charge or at a reduced rate. Requests had also been received for assistance from City staff, including Police, Fire, and the Parks and Recreation Department, for setting up or working during an event without cost to the organizer. In addition, the City had supplied barricades for street closures. Vorel stated that it was proposed that applications for event sponsorship be submitted to the HOT Fund Committee for review. Applications would be submitted annually in accordance with the proposed sponsorship policy for special events. The HOT Fund Committee would review applications and make their recommendation to the City Council. Applicants might be required to present their request in person to the HOT Fund Committee at the Committee’s request. If the proposed process was selected, the charge of the HOT Fund Committee would have to be altered to reflect this new task. The proposed sponsorship policy for special events would allow "for-profit" groups to receive city sponsorship for a maximum of three years. Non-profit events would not be limited in the number of years they could receive sponsorship. Since presenting the draft plan to Council, staff had been made aware of a number of events that had expressed an interest in seeking sponsorship for events in 2012. Some of these events had paid for Police support in the past and they would be requesting to have those costs waived. There was a significant cost where police department personnel were paid directly for working special events. This cost could be a cost the City would have to absorb with this policy. Staff was recommending that Council approve sponsorship in 2012 for only the following events and at the same level of sponsorship they received in 2011: 35 Denton, Airfair, Arts and Jazz th Festival, Bluesfest, Cinco de Mayo, Dog Days, Holiday Lighting, Juneteenth, Kiwanis 4 of July, Komen Race for the Cure, and Storytelling Festival. These events had been supported by City of Denton City Council Minutes December 6, 2011 Page 5 the City in the past and the costs had been absorbed in the existing budget without budget increases. Overtime budgets were reduced in the 2010-2011 budget and several vacant positions remained frozen. If Council wished to support additional events, the costs incurred to support those events should be included in the appropriate department’s 2012-2013 budget. Council Member Roden mentioned there might be a large number of new applicants wanting City sponsorship. He asked if the HOT Fund Committee would make recommendations prior to next fiscal year’s budget and if they would have a bottom line amount to work with. Vorel stated that determining the amount for event sponsorship would all be part of the budget process. Discussion followed regarding determining the amount to designate for event sponsorship, looking at the economic impact of the different events, sensitivity to groups that were not together all year, massaging some of the policy language and keeping it neutral politically and religiously. General consensus of Council was to rewrite portions of the policy and bring it back to Council. 6. Receive a report, hold a discussion, and give staff direction regarding the status of a section of the Denton Municipal Electric Northeast Denton Transmission Line Re-Build Project from the Kings Row Substation to the Denton North Interchange. Phil Williams, General Manager of DME, stated that Council had requested additional information concerning routes from Kings Row Substation to the Denton North Interchange. Staff had continued to meet with concerned citizens as requested. He stated that the Council had approved the route from the Spencer Road area to and including a new Kings Row Substation site. Williams stated that the existing route was the shortest distance of 10,100 feet but it was congested. It would have required removal of at least 17 homes. Total cost would have been $9.1 million. Option A was the route Council approved. It proceeded inside Loop 288 to Sherman then to Hercules. The distance was 11,700 feet. Total cost was $7 million. Option B Route proceeded inside Loop 288 past Sherman then crossed Loop 288 to Locust. The distance was 13,900 feet. Total Cost was $11 million. Option C Route crossed from Kings Row Substation to outside Loop 288 to Locust. The distance was 14,900 feet. Total cost was $11.1 million. In summary, Option A utilized the existing route as much as possible without displacing homeowners. Option B relocated the line further away from more homes. Option C relocated the line even further away from more homes and planned developments. He stated that they would post information about alternate routes on the website. Staff would discuss alternate routes with the Public Utilities Board on December 12. Staff was going to hold a neighborhood meeting at Asbury United Methodist Church on December 20 at 7 p.m. Based on the input from these meetings, staff would develop a recommendation and tentatively plan a public hearing during the January 10 City Council meeting. City of Denton City Council Minutes December 6, 2011 Page 6 Council Member Gregory asked what the distance was between the transmission line and the DISD buildings. He also asked what the approximate distance was between the houses that the City would be going behind and the transmission line. 7. Receive a report, hold a discussion, and give staff direction regarding the 1420 Committee and the IH35E construction project. Mark Nelson, Transportation Director, introduced John Polster with ITS, our consultant. Polster briefed the Council on the project. He stated that the configuration of the project included 2 managed lanes in both directions, 3 to 4 general purpose lanes, 2 to 3 lane frontage roads, and collector-distributor roads between President George Bush Turnpike and State Highway 121. The project was divided into 3 segments. The southern segment was from I-635 to President George Bush Turnpike. The middle segment was from President George Bush Turnpike to F.M. 2181. The northern segment was from F.M. 2181 to U.S. 380. Polster stated that the SB 1420 Committee would work to identify development options for the IH35E project, to include the possible use of a design-build contract, concession agreement or availability payment contract. There were four project delivery options. Design Bid Build was the typical TxDOT delivery method. TxDOT assumed all risks except construction and schedule risk. Design Build – design, construction and schedule risk was transferred to the private sector. Availability Payment – the private sector designed, built, financed, operated and maintained the project and received a payment from the public sector based on performance of the project. The Public sector retained demand risk. Revenue-Based Concession – private sector designed, built, financed, operated and maintained the project and collected the revenue from users of the project and assumed the demand risk. nd The SB 1420 Committee was created as part of legislation passed in the 82 Legislature providing authority to TxDOT to enter into a Comprehensive Development Agreement for certain projects. A committee was to be formed in which a private entity had a financial interest in the project’s performance. The committee would determine the distribution of the project’s financial risk, method of financing for the project, tolling structure and methodology, and report back to the TxDOT Executive Director. Membership on the SB 1420 committee ensured a voice in the development of IH35E. To be a member of the committee, the State requirement was that you had to have some type of financial commitment to the project. $250,000 was recommended for the Council’s consideration. The last two meetings of the SB 1420 Committee would be December 9 and December 19, 2011. Council Member Roden asked where the funds had been identified at in the budget. Bryan Langley, Chief Financial Officer, stated they had not, but that bonds would probably be issued. At this point in time, the City would just be making a commitment, not actually writing a check. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5:54 p.m. City of Denton City Council Minutes December 6, 2011 Page 7 1.Closed Meeting: A. Deliberations regarding Real Property – Under Texas Government Code, Section 551.072; and 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 potential lease for the exploration and production of minerals of certain real property located in Denton, Texas, namely (i) South Lakes Park, located approximately at 501 Hobson; and (ii) Denia Park, located approximately at 1001 Parvin. Consultation with the City’s attorneys regarding legal issues associated with such potential lease of the above-described real property for mineral exploration and production, where a public discussion of these legal matters would 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, or would jeopardize the City’s legal position in any potential litigation. (Vorel) B. Consultation with Attorney – Under Texas Government Code Section 551.071 1.Receive a briefing from, consult with and provide direction to the City’s attorneys regarding the processes associated with real property acquisitions utilizing the power of eminent domain, where a public discussion of such legal matters would conflict with the duty of the City’s attorneys to the City of Denton, Texas and the City Council of the City of Denton under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2.Consult with City’s attorneys regarding legal issues associated with the timing, process, terms, consequences and strategies, relating to certain nonannexation agreements to be offered to owners of properties with agricultural exemptions, located within areas in the City’s ETJ previously designated and proposed for annexation in the City’s Annexation Plan as areas DH-7, DH-9 and DH-12. The Closed Meeting adjourned at 6:50 p.m. Regular Meeting of the City of Denton City Council at 7:00 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 City of Denton City Council Minutes December 6, 2011 Page 8 1.Police Appreciation Day Proclamation Mayor Burroughs presented the Police Appreciation Day Proclamation to Police Chief Lee Howell, and Community Officers Shane Kizer and Orlando Hinojosa. 2.Presentation of the Achievement of Excellence in Procurement Award for the City of Denton Christine Green, Purchasing Agent for the City of University Park, presented the Achievement of Excellence in Procurement Award to Mayor Burroughs, Elton Brock, Purchasing Manager, Karen Smith, Senior Buyer, Cindy Alonzo, Procurement Assistant, and Belinda Hawkins, Administrative Assistant. 3. CONSENT AGENDA Council Member King motioned, Mayor Pro Tem Kamp seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the amended resolution for Item H. On roll call vote, Mayor Burroughs "aye", Council Member Engelbrecht "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", Council Member King "aye", Council Member Roden "aye", and Council Member Watts “aye”. Motion carried unanimously. Resolution No. R2011-044 A.Consider approval of a resolution adopting Ethical and Training Standards for Juvenile Case Managers employed by the City of Denton; providing for implementation of said standards; and providing for the periodic review to ensure implementation of the requisite standards, and providing an effective date. Resolution No. R2011-045 B.Consider approval of a resolution casting votes for membership to the Board of Directors of the Denton Central Appraisal District; and declaring an effective date. Approved the appointment below C.Consider and confirm the appointment by the City Manager of a new member to the Civil Service Commission. Ordinance No. 2011-236 D.Consider adoption of an ordinance of the City of Denton, Texas amending Section 22-32 of the Code of Ordinances of the City of Denton relating to the possession and consumption of alcohol in North Lakes Park, excluding North Lakes Recreation Center and the North Lakes Annex building therein; providing a severability clause, a penalty clause and an effective date. The Parks, Recreation and Beautification Board recommends approval (7-0). Ordinance No. 2011-237 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 3M Radio Frequency Identification System (RFID) to be utilized in the check-in and return of items to the City of Denton libraries. The requested materials are from only one City of Denton City Council Minutes December 6, 2011 Page 9 source and in accordance with Chapter 252.022 of the Texas Local Government Code and City of Denton Purchasing Policy Chapter 2, Section III. Such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 4870–Radio Frequency Identification System for City of Denton Libraries awarded to 3M Library Systems in the amount of $243,723). Ordinance No. 2011-238 F.Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a contract with Animal Hospital on Teasley Lane to perform veterinary services for the City of Denton Animal Services Division; providing for the expenditure of funds therefor; and providing an effective date (RFP 4726–Animal Services for the City of Denton awarded to Animal Hospital on Teasley Lane in the estimated annual amount of $150,000). Ordinance No. 2011-239 G.Consider adoption of an ordinance awarding a contract under the Texas Multiple Award Schedule (TXMAS) program for the purchase of a Volvo L180G Wheel Loader for the City of Denton Beneficial Reuse Department as awarded by the State of Texas (Contract TXMAS-7-23V010); providing for the expenditure of funds therefor; and providing an effective date (File 4854–Wheel Loader for Beneficial Reuse Department awarded to ROMCO Equipment Co. in the amount of $300,222.38). The Public Utilities Board recommends approval (7-0). Resolution No. R2011-046 H.Consider approval of a resolution formally accepting the donation of an Airport Rescue and Fire Fighting vehicle; and providing an effective date. The Council Airport Committee recommends approval (3–0). Ordinance No. 2011-240 I.Consider adoption of an ordinance authorizing the City Manager, or his designee, as Denton’s authorized representative, to accept on behalf of the City of Denton an offer from the Texas Department of Transportation (TxDOT) relating to a grant for preparation of a Master Plan for Airport Development at the Denton Municipal Airport; confirming agreement to pay a portion of the total project cost; (Estimated City of Denton contribution is approximately $37,500) and providing an effective date. The Council Airport Committee recommends approval (3-0). Ordinance No. 2011-241 J.Consider adoption of an ordinance approving and authorizing the concession to Fair 2000, Inc. to sell alcoholic beverages at designated locations during the 2012 Denton Air Fair, Inc. Air show events, upon certain conditions; and providing an effective date. The Council Airport Committee recommends approval (3-0). Ordinance No. 2011-242 K.Consider adoption of an ordinance authorizing the City Manager to approve a collateral Transfer of Lease Agreement between the City of Denton and Nebrig Properties, LP to PointBank; and providing an effective date. The Council Airport Committee recommends approval (3-0). City of Denton City Council Minutes December 6, 2011 Page 10 Ordinance No. 2011-243 L.Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager, or his designee, to execute on behalf of the City of Denton an acceptance of an offer from the Texas Department of Transportation relating to a grant for the Routine Airport Maintenance Program; authorizing the City Manager to expend funds provided for in the grant program; (Estimated City of Denton contribution is $50,000) and declaring an effective date (TXDOT Project No.: AM 2012DNTON and TXDOT CSJ No.: M218DNTON). The Airport Advisory Board recommends approval (7-0). Approved the minutes listed below. M.Consider approval of the minutes of: November 1, 2011 November 7, 2011 November 15. 2011 Resolution No. R2011-047 N.Consider approval of a resolution of the City Council of the City of Denton, Texas, appointing a representative to the IH35E Project Stakeholder Committee (SB 1420); affirmation of financial commitment of the City of Denton, Texas to the IH35E Project in the amount of $250,000; and providing an effective date. Ordinance No. 2011-244 O.Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving interim signage for the “Share the Road” program envisioned by the Vulnerable Road User Ordinance; and providing for an effective date. The Traffic Safety Commission recommends approval (7-0). The Mobility Committee recommends approval (3-0). 4. ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2011-245 A. Consider adoption of an ordinance establishing an Economic Development Program under Chapter 380 of the Local Government Code for making grants of public money to promote economic development and to stimulate business activity in the City of Denton; approving an Economic Development Program Grant Agreement with Labinal, Inc., setting forth the various conditions precedent to Labinal, Inc. receiving the program grant; providing for a severability clause; and providing an effective date. Linda Ratliff, Director of Economic Development, stated that Labinal was currently located in Corinth and employed more than 700 employees. The company was looking for a larger facility to expand their operations and was currently in lease negotiations with the owners of a building on Loop 288. The company had been offered other options for their location in other cities. Due to the increased traffic that this relocation would generate, Labinal would be required to improve a section of Russell Newman Boulevard and they had asked for an incentive to help offset those costs. Those improvements would run approximately $370,000. Labinal would invest more than $5,000,000 in this site – in the renovation of the building, in the construction of the road, and the City of Denton City Council Minutes December 6, 2011 Page 11 building of parking lots to accommodate their employees. They would also bring a little more than $5,000,000 in business personal property to Denton. The Economic Development Partnership Board reviewed their request and recommended an incentive that followed policy guidelines. They recommended a three-year grant equal to 50% of the increase in property tax revenue over the existing revenue being generated at that site. It was estimated that the increase would range from $7 million to $9.5 million which would result in an incentive that would be from $72,400 to $100,350 over the three-year term of the agreement. If approved, Labinal would begin the necessary improvements after the first of the year, with a Spring/Summer 2012 opening. Council Member Gregory motioned, Council Member King seconded to adopt the ordinance. On roll call vote, Mayor Burroughs "aye", Council Member Engelbrecht "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", Council Member King "aye", Council Member Roden "aye", and Council Member Watts “aye”. Motion carried unanimously. Resolution No. R2011-048 B. Consider approval of a resolution of the City Council of the City of Denton, Texas, appointing a member to the Board of Directors of the Denton County Transportation Authority; appointing a First Alternate to the Board of Directors of the Denton County Transportation Authority; providing a repealer; and providing an effective date. Mark Nelson, Director of Transportation, stated that Richard Moore had indicated that he would no longer be able to serve as the City of Denton’s representative on the DCTA Board of Directors due to business and personal issues. The Mobility Committee had recommended Richard Huckaby as the City’s representative and Guy McElroy as the First Alternate representativeto the Board. Mayor Pro Tem Kamp motioned, Council Member King seconded to appoint Richard Huckaby as Denton’s representative to the DCTA Board of Directors and Guy McElroy as First Alternate. On roll call vote, Mayor Burroughs "aye", Council Member Engelbrecht "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", Council Member King "aye", Council Member Roden "aye", and Council Member Watts “aye”. Motion carried unanimously. 5.PUBLIC HEARINGS Ordinance No. 2011-246 A.Hold a public hearing and consider an ordinance of the City of Denton, Texas, providing for an initial zoning district classification and use designation of Rural Commercial (RC), with an overlay district, on approximately 37 acres of land located within the Milam Creek Ranch Subdivision, east of I-35, on the south side of Milam Road and on the east and west sides of Milam Ridge Road; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date (Z11-0007, Milam Creek Ranch). The Planning and Zoning Commission recommends approval (7-0). Mark Cunningham, Director of Planning and Development, stated that this was a staff initiated re-zoning for properties that were recently annexed into the city, known as the Milam Creek City of Denton City Council Minutes December 6, 2011 Page 12 Ranch Addition. This subdivision was approved by the Planning and Zoning Commission in 1996. A portion of the subdivision was annexed in 2010 and the remaining portion qualified for non-annexation agreements. Newly annexed land was not zoned; however it was subject to the Rural Residential 5 (RD-5) zoning district. Staff was recommending an initial zoning of Rural Commercial (RC) with an overlay district. The proposed Rural Commercial (RC) zoning district would ensure that the farming, forest, environmental and scenic values of the area were protected from incompatible development that might result in a degradation of their values. The purpose of the proposal was to bring these properties into compliance with the Denton Development Code. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. Council Member King motioned, Council Member Watts to adopt the ordinance. On roll call vote, Mayor Burroughs "aye", Council Member Engelbrecht "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", Council Member King "aye", Council Member Roden "aye", and Council Member Watts “aye”. Motion carried unanimously. B.Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, approving a Specific Use Permit (SUP) to allow for the drilling and extraction of natural gas from an underground storage formation on property located within a Neighborhood Residential 4 (NR-4) zoning and use district on approximately 2.066 acres. The subject property is generally located south of McKinney Street, approximately 900 feet west of Trinity Road; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date.(S11-0002, Lake Dallas Storage) The Planning and Zoning Commission recommends approval (3-2). Mark Cunningham, Director of Planning and Development, stated that the applicant (on behalf of Atmos Energy Corporation) was requesting approval of a Specific Use Permit to allow for the drilling and extraction of natural gas from an underground storage formation on the site. The storage formation was only used to store natural gas. The storage formation was not intended to produce natural gas, nor was there any fracking done to this type of development. The subject property had existing subsurface development that was currently being used by Atmos Energy Corporation for the storage of natural gas. Atmos currently operated an existing eight storage gas wells and a gas collection and processing facility on the adjacent property to the west of the subject site. The eight existing storage wells were used to inject natural gas to existing underground reservoirs that were located below the adjacent property and the subject property. Council raised questions about what the structure on the property was being used for. The property owner had indicated that the structure was a leased residential structure. If it was a residential structure, the well site would have to be outside the 1000 foot setback requirement. Also as far as staff knew, there was no water supply to the structure. City of Denton City Council Minutes December 6, 2011 Page 13 Council also discussed the mineral rights. Atmos owned the mineral rights. All surface rights had been negotiated with the property owner. Without the SUP, the surface rights would not be beneficial. Council also discussed if the property adjacent was City property and a lease was involved and whether the City would benefit financially from this SUP. Council raised concerns about protecting the water table when the first 1,000 feet was drilled. The Mayor opened the public hearing. John Manganilla, representative from Atmos Energy, spoke in support of the SUP. Council Member Gregory motioned, Council Member Roden seconded to continue the public hearing to December 13, 2011. On roll call vote, Mayor Burroughs "aye", Council Member Engelbrecht "aye", Council Member Gregory "aye", Mayor Pro Tem Kamp "aye", Council Member King "aye", Council Member Roden "aye", and Council Member Watts “aye”. Motion carried unanimously. 6. CONCLUDING ITEMS 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, 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 Member Watts requested the status on the negotiation team that the Council had approved to put together to discuss with UNT the issue regarding the utility payments, if they had started meeting, get an update and who was on the negotiation team for the City. Council Member Watts requested an informal staff report regarding the sponsorship policy for DME as it compared to other City departments. Council Member Gregory confirmed that any Council Members with questions regarding the continuation of the item on the SUP could forward them to the City Manager. City of Denton City Council Minutes December 6, 2011 Page 14 Council Member Roden requested an informal staff report with details on all gas production development storage processing sites that existed on City property, where they were, how long they had been there, and what financial interest if any the City had. B. 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. 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 at 9:06 p.m. ____________________________________ MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS ____________________________________ JANE RICHARDSON ASST. CITY SECRETARY CITY OF DENTON, TEXAS