May 17, 2011 MinutesCITY OF DENTON CITY COUNCIL MINUTES
May 17, 2011
After determining that a quorum was present, the City Council convened in a Work Session on
Tuesday, May 17, 2011 at 3:00 p.m. in the Council Work Session Room at City Hall.
PRESENT: Council Member King, Council Member Watts, Council Member Heggins,
Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp,
Mayor Burroughs
ABSENT: None
1. Citizen Comments on Consent Agenda Items
Kristin Kromer, representing Scott Nursery, spoke on Consent Agenda Item 3C. She felt there
were some bid discrepancies regarding the landscaping bid. Her company had made an error on
their bid document and wanted to inform the Council about the bid and bid documents. There
were several items with no associated cost but some shrubs and trees were not available. The
total cost calculated on the tab sheet was incorrect.
2. Requests for clarification of agenda items listed on the agenda for May 17, 2011.
Council Member Watts asked how the selection process was handled when bids were submitted
and one of the items was not bid by a vendor.
Elton Brock, Purchasing Manager, stated that when there was an invitation to bid, the bid either
met the specifications or it did not. If one item in the bid was not bid on, then the entire bid did
not meet all of the requirements.
Council Member Watts stated if part of the bid was not complete, that bid would be excluded
unless everyone did the same.
Brock replied that there was one bid for an invitation for bid and the low bid meeting
specifications was chosen. If there was a request for proposal, there was the possibility to
negotiate but in this case, they were not able to do so.
Mayor Burroughs asked if the line item could have a local preference or was Krugerville
considered local.
Brock stated that the company selected was local to Denton. A split bid for grasses, etc. could be
done if Council desired.
Mayor Burroughs stated that he would like to go local if possible and encouraged staff to always
look for an opportunity to do so when it was efficient.
Mayor Burroughs asked about Consent Agenda Item 3A, the mitigation strategy. He questioned
if the strategy being proposed had any significant changes from prior strategies.
Mike Penaluna, Emergency Coordinator, stated that the strategies related to the Disaster
Mitigation Act of 2000. That Act stated that there were to be separate city plans but not all cities
City of Denton City Council Minutes
May 17, 2011
Page 2
had plans. The North Central Texas Council of Governments assisted in preparing a plan for the
entire County to adopt.
Council Member Heggins asked about Consent Agenda Item 3B and the associated funding.
Barbara Ross, Community Development Administrator, stated that the amount had not changed
since the initial allocation. This item would no longer require a lien on the property by the City.
Council Member Gregory noted that on Consent Agenda items it would be helpful to state what
type of funding was being used rather than account numbers. He asked what Item F would do
for the neighborhoods.
Frank Payne, City Engineer, stated that the funding source for those items was Denton County.
The project would help relieve flooding downstream from the site.
Council Member Gregory asked for the number of homes that would be taken out of the flood
plain.
Payne stated that he would find that information out for Council.
Mayor Burroughs asked if Consent Agenda Item 3E was a renewal of an existing contract or a
new contract.
Brock stated that it was a new agreement. The TIPS program allowed them to get different
contractors for playground equipment that they could not get through Buy Board. This was a
one-time purchase.
Mayor Burroughs stated that there was no period of review for this contract. He was concerned
that depending on who was purchasing equipment, they might not know to look at local
preference as opposed to using the interlocal agreements. He suggested working through this at
the end of some set time period to look at the volume of purchases on Buy Board and other
interlocal agreements to determine whether it was more beneficial than local purchases.
Bryan Langley, Chief Financial Officer, stated that staff could look at the procurement policy
and make sure it clarified how the agreements would be used and how to buy Denton.
Council Member Engelbrecht asked about Consent Agenda Item 3G and how long events could
have a permit.
Emerson Vorel, Director of Parks and Recreation, showed where the revival would be located.
The noise would be projected to the east. The sound level requested was 100 db until 10:30 for 6
days. Staff was recommending a maximum of 75 decibels based on several other similar events.
Council Member Engelbrecht asked if a record had been made of the number of complaints for
similar events.
Vorel stated that he had not but the Police Department might have such a record.
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May 17, 2011
Page 3
Mark Cunningham stated that the request was considered a special event and was allowed on the
site.
Council Member Engelbrecht asked about parking for the event.
Cunningham stated that this was a special event and was not intended for extended period of
time.
Council Member Engelbrecht asked for a report on the policy for special events in terms of
police services, EMT service, traffic control, etc.
3. Receive a report, hold a discussion and give staff direction regarding an ordinance
adopting the Denton County, Texas Local Mitigation Strategy for Natural Hazards, of
which Denton County Unincorporated and the cities of Corinth, Denton, Lewisville, and
The Colony are parties.
Mike Penaluna, Emergency Coordinator, stated that this was a Denton County local mitigation
strategy. The plan was developed with assistance from the North Central Texas Council of
Governments. The plan was a document to help reduce the impacts of natural disasters in the
City. There needed to be a plan on file in order to be eligible for non-emergency assistance
federal grants. Proposed projects were contingent upon applying and receiving federal funds to
pay for the items.
4. Receive a funding recommendation report from the Community Development Advisory
Committee (CDAC) and the Human Services Advisory Committee (HSAC). Hold a
discussion regarding the proposed 2011 Action Plan for Housing and Community
Development and give staff direction.
Barbara Ross, Community Development Administrator, stated that Steve Pogue, Human
Services Advisory Committee Chair, and Gerard Hudspeth, Community Development Advisory
Committee Chair, would be presenting the recommendations of the Committees.
Steve Pogue, Chair- Human Services Advisory Committee, stated that the agencies were faced
with tough problems. The Committee reviewed requests for social services program funding and
had developed recommendations for the use of both CDBG funds and city general fund dollars.
The Committee was recommending the award of $124,943 in CDBG funding to various
programs.
Gerard Hudspeth, Chair-Community Development Advisory Committee, presented the
recommendations from the Committee. The Committee was recommending $1,099,953 in
CDBG and HOME funding to be allocated to various projects and programs. These were federal
dollars and would not come from the General Fund.
5. Receive a report, hold a discussion and give staff direction regarding a proposed
amendment to 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 and excluding North Lakes Recreation Center and the North
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May 17, 2011
Page 4
Lakes Annex building therein; providing a severability clause, a penalty clause and an
effective date.
Emerson Vorel, Director of Parks and Recreation, stated that this ordinance was not a license to
carry a cooler and alcohol to the park and it was not permission for staff to sell alcohol at city
tournaments. This was for special events and tournaments with the process the same as at
Quakertown Park. The events would be approved by the Parks Board and Council. Security
police would be required and a TABC licensed vendor would sell the product. Staff had been
working hard at upgrading the fields and facilities at North Lakes Park to make them more
attractive to tournaments. It was one way to add to the local economy for hotel rooms for
participants in the tournament events. Consideration of alcohol at adult event tournaments would
help tournament officials to choose Denton.
Council Member Watts asked if there was a policy manual regarding these procedures.
Vorel stated that he could do a memo from him to Council detailing the procedures.
Council Member Watts stated that it might be better to have the procedures memorialized in a
policy for direction.
Consensus of the Council was to proceed as outlined by staff.
6. Receive a report, hold a discussion, and give staff direction regarding the implementation
of credit and collection procedures that were approved by the City Council on November
16, 2010.
Ethan Cox, Customer Service Manager, presented a credit and collection progress update report
as requested by Council.
Credit and Collection Background - Ordinance 2010-292 was passed in response to the recent
growth of uncollectible utility debt. He reviewed the steps since 2008 that went into the process
of developing the ordinance and the bad debt history since 2004-2005.
Objectives of the new policy - the intent of the ordinance revision was to focus on fair collection
treatment of customers based on credit/payment history and service usage; encourage delinquent
customers to make payments in a timely manner; and take preventative measures to reduce future
uncollectible debt. The ordinance revisions applied to all utilities - water, wastewater, electric
and solid waste customers.
Key elements of the policy - the key elements included the introduction of credit screening and
risk assessment, deposit requirements based on credit and usage, improved deposit refund
process, increased late fee, and implemented payment arrangement policies.
Right of entry - the right of entry portion of the ordinance was a restatement of state law which
was in effect since 1909 and was unchanged by the provision made to Ordinance 2010-292. It
was part of the ordinance since 1966 and allowed inspection of utility equipment to ensure it was
safe and in working order.
City of Denton City Council Minutes
May 17, 2011
Page 5
New customer credit issuance - previously all new customers were required to pay deposits.
Deposits now were assessed on the customer's external credit score and average billing at the
location.
Council Member Watts asked about a waiver of the deposit with the new policy.
Cox stated that a customer could receive a waiver with a letter of good standing from another
utility provider or a cosigner.
New customer breakdown - Since implementation only four months ago, 55% of new customers
had deposits waived or paid the equivalent of one month of service. Trending indicated that 60%
of new customers would be rated as "Good" or "Fair".
Council Member Watts stated that a better indicator than the use of nomenclature of titles based
on credit scores would be a letter from a previous utility company with the number of late pays
and disconnects as scores might reflect other factors.
Council Member Watts asked if new customers could pay out the deposit.
Cox replied yes and they had not heard negative comments from new customers as this process
was similar to what other types of utilities were doing.
Existing customer credit rating - Existing customers were ranked according to their payment
history in the utility billing system. Negative credit events added points and rolled off after one
year. Customers with a D-F rating were evaluated to ensure appropriate deposit coverage.
Existing customer breakdown - prior to implementation, 61% of customers maintained an "A"
rating. Since implementation, 79% of customers had paid on time every month while 7% had
been disconnected for non-payment or been delinquent on multiple invoices.
Deposits paid - since implementation 5,370 accounts had paid deposits totaling $867,418 with
the average number of deposits assessed increased by 45%. The average dollar amount of the
deposit had increased by 26%. New customers had paid approximately 3,034 deposits totaling
$457,639 with an average deposit amount of $150.84. Existing customers had paid
approximately 2,336 deposits totaling $409.779 with an average deposit amount of $175.41.
Deposit analysis by account type - Since implementation, residential deposits had increased in
quantity by 44% while commercial deposits had increased by 54%.
Mayor Burroughs suggested considering the pros and cons moving "B" to 151 when a full
review of the ordinance was done.
Cox continued with details on the late fee increase. Prior to implementation the late fee was $10
with 15% of customers delinquent each month. Since implementation, the late fee was increased
to $20 with 11% of customers delinquent each month which resulted in a 23% reduction in
delinquent accounts.
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May 17, 2011
Page 6
Disconnects for non-payment - there had been a 3% increase in disconnects since
implementation. Non-pay disconnects were affected by payment behavior and weather patterns.
The increase in March could be attributed to the end of the winter moratorium and expedited
action for D-F ratings.
Council discussed how disconnects were handled in terms of deposits, reasons for disconnect,
and deferments.
Cox presented assistance options which included deferred payment plans and arrangements and
the PLUS One program.
Mayor Burroughs questioned if there was a need to assess a set monthly amount in order to have
enough funding when needed for the assistance programs.
Summary - early results indicated that the tiered deposit stricture was being applied based on
credit/payment history and usage, deposit refunds were performed consistently, delinquency
rates had decreased and improved assistance and payment arrangements were available for
qualifying customers. The impact on uncollectible bad debt must be evaluated over the long run.
Council Member Watts stated that the issue came back to uncollectible debt associated with
utility payments.
Mayor Burroughs suggested another item for feedback. He suggested offering more than one
billing cycle with a choice of payment due date such as either at the beginning of the month or
the middle of the month. This might be accomplished with commercial/institutional customers
easier than residential at this point and especially with smart meters.
Cox stated that staff would review these changes more as time went on with the ordinance.
Council Member Gregory suggested another report at the end of 12 months and at the end of 18
months. He suggested waiting to change credit "B" rating as there might be the possibility to
return more deposits.
City Manager Campbell stated that staff would want to wait to be sure there was no unintended
consequences with such a change. An informal report could be forwarded to Council.
The Council convened in a Closed Meeting to discuss the following:
1. Closed Meeting:
A. Certain Public Power Utilities: Competitive Matters - Under Texas Government
Code Section 551.086; Consultation with Attorneys - Under Texas Government
Code Section 551.071.
1. Receive a consultation with the City's attorneys regarding legal issues
concerning the proposed Full Requirements Wholesale Electric Power
Service Agreement between the City of Denton, Texas and NRG Power
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May 17, 2011
Page 7
Marketing, LLC; and discuss, deliberate and provide the City's attorneys
with direction and any recommendations regarding such legal matter. A
public discussion of this legal matter 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. Receive a presentation, a
status report thereon, and discuss, deliberate, consider and take action on
the proposed Full Requirements Wholesale Electric Power Service
Agreement between the City of Denton, Texas and NRG Power
Marketing, LLC regarding public power competitive and financial issues
and matters regarding the purchase of a portion of the City's electrical
energy requirements and related issues; discuss deliberate, consider and
take action on the above-referenced Agreement.
B. Consultation with Attorneys - Under Texas Government Code Section 551.071.
1. Consult with, and provide direction to, City's attorneys on legal issues
associated with existing and potential regulation of gas well drilling and
exploration within the Denton city limits and extraterritorial jurisdiction,
specifically including, but not limited to, the following general categories,
as they may relate to such regulations:
a. Legal issues and strategies associated with proposed and potential
modifications to existing local regulations, as they relate to
existing, proposed and potential gas well drilling and exploration
within the Denton city limits and extraterritorial jurisdiction, as
well as limitations imposed upon the City's regulatory authority,
with regard to such issues and strategies;
b. Legal issues and strategies associated with possible preemption of
local regulatory standards relating to gas well drilling and
exploration with the Denton city limits and extraterritorial
jurisdiction, by existing, proposed and potential Federal and State
legislation, and administrative regulations; and
c. Legal issues and strategies associated with the imposition,
calculation and assessment of various local permitting and
inspection fees as they relate to gas well drilling and production in
the Denton city limits and extraterritorial jurisdiction.
2. Consult with, and provide direction to, City's attorneys on legal issues
associated with previous annexations of land, specifically including, but
not limited to, legal and strategic issues associated with the modification,
negotiation and enforcement of non-annexation agreements as they relate
to building on lots within plats approved prior to the execution of non-
annexation agreements, as well as more general legal and strategic issues
relating to the annexation of such area.
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May 17, 2011
Page 8
3. Consult with City's attorneys regarding litigation styled TransData, Inc. v.
CenterPoint Energy Houston, LLC, et al., cause number 6:10-cv-557,
currently pending in the Us District Court, Eastern District of Texas, and
possible legal issues related thereto.
4. Consult with City's attorney's regarding legal issues associated with the
referendum petition filed with the City Secretary on December 14, 2010.
Council convened in a Regular Meeting at 6:30 p.m. in the City Council Chambers.
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. Duck Derby Day
Mayor Burroughs presented the proclamation for Duck Derby Days.
2. Civility Awareness Month
Mayor Burroughs presented the proclamation for Civility Awareness Month.
3. CONSENT AGENDA
Mayor Burroughs noted that Item G would be pulled for separate consideration.
Council Member Gregory motioned, Council Member Heggins seconded to approve the Consent
Agenda and accompanying ordinances and resolutions with the exception of Item G. On roll call
vote, Council Member King "aye", Council Member Watts "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.
Ordinance No. 2011-078
A. Consider adoption of an ordinance adopting the Denton County, Texas Local Mitigation
Strategy for Natural Hazards, of which Denton County Unincorporated and the cities of
Corinth, Denton, Lewisville, and The Colony are parties; and providing for an effective
date.
Ordinance No. 2011-079
B. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City
Manager to execute a First Amendment to the 2010-2011 Agreement Between the City
of Denton and the Fred Moore Day Nursery School ("Original Agreement"), said
Original Agreement contemplating the provision of Community Development Block
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May 17, 2011
Page 9
Grant funds for improvements to the facility at 821 Cross Timber Street, Denton County,
Texas; and providing for an effective date.
Ordinance No. 2011-080
C. Consider adoption of an ordinance accepting competitive bids and awarding a three-year
contract for Landscaping and Sod Replacement Services for various City departments;
providing for the expenditure of funds therefor; and providing an effective date (Bid
4673-Three-Year Contract for Landscaping/Sod Replacement Services awarded to the
overall lowest responsible bidder meeting specification, Classic Landscapes, Inc. in the
annual estimated amount of $110,000).
Ordinance No. 2011-081
D. Consider adoption of an ordinance awarding the purchase of Disk Storage to replace the
Storage Area Network (SAN) as awarded by the State of Texas Department of
Information Resources (DIR) through the Go DIRect Program, Contract Number DIR-
SDD-1418; providing for the expenditure of funds therefor; and providing an effective
date (File 4713-Disk Storage Purchase awarded to INX, Inc. in the amount of
$130,618.09).
Ordinance No. 2011-082
E. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal
Cooperative Purchasing Program Agreement with the Region VIII Education Service
Center through the Interlocal Purchasing System (TIPS) Program under Section 271.102
of the Local Government Code, to authorize participation in various Region VIII
Education Service Center contracts for the purchase of various goods and services;
authorizing the expenditure of funds therefor; and declaring an effective date (File 4715-
Interlocal Agreement with Region VIII Education Center Interlocal Purchasing System).
Ordinance No. 2011-083
F. Consider adoption of an ordinance accepting competitive bids and awarding a public
works contract for the constriction of a concrete lined channel, two pilot channels, an
emergency spillway, and an outlet stricture for the Strickland Jr. High Regional
Detention Pond Drainage Improvements Project; providing for the expenditure of funds
therefor; and providing an effective date (Bid 3516-awarded to the lowest responsible
bidder meeting specification, Floyd Smith Concrete, Inc. in the amount of $212,406.45).
Approved the minutes listed below.
H. Consider approval of the minutes of:
April 4, 2011
April 5, 2011
Ordinance No. 2011-084
L Consider adoption of an ordinance of the City of Denton, Texas authorizing and
approving a second extension to the "Agreement by and between the City of Denton,
Texas and Denton 288, L.P. for the provision of sanitary sewer and water facilities"
entered into by the parties on the 5th day of June, 2007; providing the City Manager with
authority to perform said second extension and to expend funds as necessary; providing
an effective date.
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May 17, 2011
Page 10
Ordinance No. 2011-085
J. Consider adoption of an ordinance approving a "Second Amendment to Professional
Services Agreement for Architect or Engineer" by and between the City of Denton,
Texas and Malcolm Pirnie, Inc. to provide engineering services for the design of the
Lake Lewisville Water Treatment Plant Rehabilitation and Process Upgrade; authorizing
the expenditure of funds therefor; and providing an effective date (providing for an
additional $964,260 for additional services on the project-aggregating $3,703,360).
Item G was considered.
Approved the noise exception listed below.
G. Consider a request for an exception to the Noise Ordinance for the purpose of
performing live music during revival/crusade event held each night, except Wednesdays,
beginning August 25 and concluding on September 13, 2011. The amplified sound
would begin at 8:00 p.m. and conclude at 10:30 p.m. The revival will be held on the
corner of University Drive and Gay Street. The event organizers are requesting an
exception to the level of decibels from 70 to 100 decibels, an extension of hours for
amplified sound from 10:00 p.m. until 10:30 p.m., and for an exception for amplified
sound on Sundays. Due to the residential neighborhood directly north of the revival site,
staff recommends approving the exception of sound on Sundays, an extension of hours
of operation, but to limit the increase in decibels to 75 decibels.
Council Member Engelbrecht asked staff to address the issue of an additional 30 minutes of time
and additional sound decibels as the event was for 18 days over a 21 day period. He questioned
if provisions had been made for the expected attendance of 130-150 people for each of the 18
days and what was the thinking that went into the process.
Emerson Vorel, Director of Parks and Recreation, stated that there were several factors what
were considered. One was the portion of the request dealing with the 100 decibels which was
too loud in close proximity to the residential areas. Staff referred back to other revival events
similar to this one which were allowed 75 decibels so that was staffs recommended level. The
second was the requested extension of hours. The timing of the event was close to the rodeo
held at the North Texas State Fair which was not too far from this property. The rodeo went
until midnight so staff was not looking for a restriction for the time for this event.
Council Member Engelbrecht asked about the decibels allowed for the Fair.
Vorel stated that the Fair was allowed 70 decibels.
Council Member Engelbrecht asked if this event could be limited to 70 decibels. This would be
in consideration of neighborhoods caught between both the Fair and this event.
Council Member Engelbrecht stated that in consideration that the event would be held in the
same time frame as the Fair and that some of the policies regarding decibels and timing were not
clear for long events he was moving to deny the request.
Motion died for lack of a second.
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May 17, 2011
Page 11
Mayor Pro Tem Kamp asked if Council could lower the decibels and shorten the hours.
City Attorney Burgess stated that Council could make adjustment but they had to be less than
what was posted.
Council Member Gregory motioned to reduce the decibels to 70 and the ending time to 10:00
p.m.
Council Member King seconded with a friendly amendment to change the time to 10:30 p.m.
Council Member Gregory agreed with the 10:30 p.m. time frame.
Council Member Gregory motioned, Council Member King seconded to approve the request
limiting the decibels to 70 and the ending time each night to 10:30 p.m. On roll call vote,
Council Member King "aye", Council Member Watts "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.
4. ITEMS FOR INDIVIDUAL CONSIDERATION
Resolution No. R2011-014
A. Consider approval of a resolution by the City of Denton, Texas authorizing the
City Manager to sign and submit an amendment to the previously amended 2008
Action Plan for Housing and Community Development submitted in June 2008
to the U.S. Department of Housing and Community with appropriate
certifications, as authorized and required by the Housing and Community
Development Act of 1974, as amended, and the American Recovery and
Reinvestment Act; and providing for an effective date.
Barbara Ross, Community Development Administrator, stated that the resolution would amend
the 2008 Action Plan which included the CDBG R Recovery Act Funding. After completion of
the Redwood sewer project there was approximately $60,000 remaining to be expended. Staff
reviewed the applications for 2011-12 funding and talked with Parks and Recreation staff
regarding potential projects that could be completed quickly. Staff recommended to the
Community Development Advisory Committee that the following activities be funded with the
remaining CDBG-R funds plus adding $8,000 in CDBG-R administration funds for the projects:
Fred Moore electrical work, Denton Christian Preschool playground equipment repairs; MLK
and Denia Park shade screens with any funding left over moved to the Minor Repair Program.
Council Member King motioned, Council Member Engelbrecht seconded to approve the
resolution. On roll call vote, Council Member King "aye", Council Member Watts "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.
Ordinance No. 2011-086
B. Consider adoption of an ordinance of the City of Denton, Texas authorizing the
City Manager to execute a First Amendment to an agreement with Trilliant
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May 17, 2011
Page 12
Networks, Inc. for Phases II and III of the Advanced Metering Infrastructure
System (AMI); providing for the expenditure of funds therefor; and providing an
effective date (RFSP 4485-First Amendment to Agreement for Advanced
Metering System Infrastructure awarded to Trilliant Networks, Inc in the
estimated amount of $2,562,991 for a total estimated contract award amount of
$9,357,607).
Phil Williams, General Manager of Denton Municipal Electric, presented examples of the old
meters currently on most homes, digital meters that transmitted the information out to the reader,
and the digital meter which had two way communications to provide information at a remote
location on whether the meter was on or to do connects/disconnects. In 2008 a pilot project was
started to test the devices to make sure they did what was expected with them. Staff was asking
for approval of Phase 2 and 3 of the project which would replace the meters in next 15 months.
Mayor Burroughs noted that when testing was done on other meters of this similar type in other
cities, there were questions about the accuracy of the meters. He asked if when the city tested
the meters here, were the homes using both types of meters to see if they were getting the same
results.
Williams stated that the old meters were completely taken out. Only the communication device
was different with the new meters, not how the meter read the usage. The new meters achieved
the criteria needed to proceed with the project.
Mayor Burroughs asked if in the long term would the pressure would be off the number of
personnel to read the meters.
Williams stated that the department would be able to handle growth without having to add staff.
The personnel would become meter technicians rather than meter readers.
Mayor Burroughs asked about the service life of the new meters.
Williams stated that technology would wear out before meter would.
Council Member King motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On
roll call vote, Council Member King "aye", Council Member Watts "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.
Ordinance No. 2011-087
C. Consider adoption of an ordinance of the City Council of the City of Denton,
Texas providing for, authorizing, and approving the execution by the City
Manager of a Full Requirements Wholesale Electric Power Service Agreement
between the City of Denton, Texas and NRG Power Marketing, LLC., a
Delaware limited liability company; approving and authorizing the acceptance
and approval by the City Manager and City Attorney of a guaranty agreement
issued by NRG Energy, Inc., a Delaware corporation for the benefit of the City;
authorizing the acceptance and approval of a letter of credit executed by NRG
Power Marketing, LLC for the benefit of the City; approving the execution of
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May 17, 2011
Page 13
such other and further related documents, including, without limitation,
certificates, assignments, licenses, directions, instruments, instructions,
confirmations and statements by the City Manager or his designee, which are
incident or related thereto, as shall be reasonably determined by the City
attorney or her designee; confirming and ratifying that the City of Denton,
Texas, its Mayor, its City Council Members, its City Manager, and its City
Attorney or her designee shall be authorized and empowered to perform such
acts and obligations as are reasonably required to consummate this transaction;
ratifying all prior actions taken by the City Council in furtherance of the
foregoing transaction; and determining that several of said documents pertain to
a "competitive electric matter" as set forth under the provisions of §§551.086
and 552.133 of the Texas Government Code, as amended; finding and
determining that Texas Government Code §252.022(a)(15) applies to said
agreement; adopting significant recitations, findings and conclusions, as are set
forth in the preamble of this ordinance; that the purchase of capacity and energy,
and other related arrangements made by the City under the terms of this Full
Requirements Wholesale Electric Power Service Agreement are in the public
welfare; authorizing the expenditure of funds therefor; providing an effective
date.
Mike Grim, Executive Manager for Power, Legislative and Regulatory Affairs, stated that his
presentation would cover the RFP preparation, selection process, benefits and recommendation.
In preparation for bid process, staff determined goals for DME that would include a cost
effective energy supply, price stability with low risk, coverage for Gibbons Creek, portfolio
diversity and reliability. Staff began developing the request for proposal in June of 2010 and
issued the request for proposal on October 13, 2010. The selection process had twelve
respondents and the top four bidders were invited to present refreshed offers. Staff then asked
for a best and final offer from the two top respondents offering the best value to the City. The
Public Utilities Board had unanimously approved the proposed contract. The benefits to the City
included (1) significant savings, (2) Gibbons Creek coverage for planned and unplanned outages,
(3) financial assurance, and (4) ability to secure time-of-use rates and economic development
rates. Staff was requesting that Council approve the ordinance authorizing the agreement.
Mayor Pro Tem Kamp asked about planned and unplanned outages and what that meant to
citizens.
Grim stated that if the plant went down, the City might have to buy off the market. This
agreement would protect the City from any kind of price spike. Unplanned outages resulted in
real time prices which the agreement would also protect against.
City Attorney Burgess stated that Council had deemed the contract to be a competitive matter
and as such, the contract would remain closed. The ordinance would be open and subject to
disclosure but not the contract.
Council Member Watts motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On
roll call vote, Council Member King "aye", Council Member Watts "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.
City of Denton City Council Minutes
May 17, 2011
Page 14
5. PUBLIC HEARINGS
A. Hold a public hearing and consider adoption of an ordinance of the City of
Denton, Texas creating a new Division 3 to Chapter 26, Article III of the Denton
Code of Ordinances regulating the use and interconnection of Wind Energy
Conservation Systems (WECS) and amending Subchapter 35.5 of the Denton
Development Code regarding use restrictions for both Free-standing Monopole
Support Stricture and Building-mounted WECS. The Public Utilities Board
recommends approval of the Chapter 26 elements of the ordinance (4-0). The
Planning and Zoning Commission recommends approval of the proposed
amendments to Subchapter 35.5 of the Denton Development Code (7-0).
(DCA10-0010, Wind Energy Conservation Systems)
Ken Banks, Director of Environmental Services and Sustainability, presented the background
information on the proposal. Key components included (1) zoning limitations; (2) interconnect
requirements with DME; (3) proper permit and pay of appropriate fees; (4) location and setback
requirements; (5) sound pressure level requirements; (6) lighting restrictions/FAA compliance;
(7) aesthetics, including color, signage, blade glint/flicker and design; (8) safety issues; (9)
environmentally sensitive area regulations; (10) maintenance requirements; and (11) removal
requirements/abandonment provisions. He reviewed other cities that had ordinances and/or
otherwise allowed WECS. The Public Utilities Board had recommended approval of Chapter 26
elements and the Planning and Zoning Commission had recommended approval to Subchapter
35.5. The Council had held a prior work session on the proposal on May 3rd. Staff
recommended approval of the ordinance.
The Mayor opened public hearing.
No one spoke during the public hearing.
The Mayor closed public hearing.
Henry Kelton requested to speak regarding the item.
Council Member Gregory motioned, Council Member Engelbrecht seconded to reopen the public
hearing. On roll call vote, Council Member King "aye", Council Member Watts "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.
Mr. Kelton spoke against the portion of the ordinance which would limit the color of the devices.
The Mayor closed the public hearing.
Mayor Pro Tem Kamp asked staff to address the color issue.
Banks stated that the colors chosen dealt with aesthetics to provide a minimal amount of visual
problems. The ordinance provided for a consistent type of color to keep the devices the same
and not cause a visual problem.
City of Denton City Council Minutes
May 17, 2011
Page 15
Mayor Burroughs asked if there was a variance provision in the ordinance.
Banks stated that there was only a specified standard.
Jerry Drake, Deputy City Attorney, stated that if it were a zoning issue, it could go to the Zoning
Board of Adjustment for a variance. However, it was highly unlikely that a color choice would
make the land not have a reasonable use.
Mayor Burroughs suggested a provision indicating that the color could be consistent with the
property in question. A building might have color orientation that would compliment it.
Banks stated that might open a discussion on what "consistent" meant and result in a wide
variety of different colors. The intent was to have a standardization of devices.
Council Member Watts stated that right now a house could be painted any color the owner
wanted and he understood trying to make the devices blend in but personally felt it could be less
restrictive.
Council Member King felt there should be the ability to have a variety of color. He was more
concerned about having individuals participate in the program rather than restriction of color.
Council Member Gregory stated that he was not bothered by color but that the paint might be
restricted to a flat color so as to not have flicker or glint.
Council Member Engelbrecht stated that these devices were not at this time a standard item and
would attract the eye. He was not sure that it would be good to call attention to them. He also
thought companies might brand through color.
Mayor Burroughs offered the wording of "any solid flat color consistent with the property" for
Council consideration.
Council Member Heggins stated that she did not have a problem with color scheme presented.
Mayor Burroughs asked if a homeowner were unreasonably denied a reasonable color, would he
appeal to the Planning and Zoning Commission or some other board.
City Attorney Burgess stated that it could be written to appeal to the City Manager.
Mayor Pro Tem Kamp suggested including wording in the ordinance for an appeal process.
City Attorney Burgess stated that the wording could be changed to "a single color consistent
with the homeowner's property" or included wording for an appeal process to the City Manager.
Council Member Heggins motioned, Council Member Engelbrecht seconded to adopt the
ordinance as presented. On roll call vote, Council Member King "aye", Council Member Watts
"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.
City of Denton City Council Minutes
May 17, 2011
Page 16
Ordinance No. 2011-089
B. Hold a public hearing and consider adoption of an ordinance of the City of
Denton, Texas, amending Subchapters 13, 20 and 23 of the Denton
Development Code to provide an exception for the installation of sidewalks
associated with estate lot subdivisions, with conditions and to provide a
definition for estate lots; providing for a penalty in the maximum amount of
$2,000.00 for violations thereof, severability and an effective date. (DCA10-
0008) The Planning and Zoning Commission recommends approval (7-0).
Mark Cunningham, Director of Planning and Development, stated that on April 5, 2011, staff
had presented the amendments to Council. At that time, Council directed staff to reconsider not
allowing a variance from the minimum one acre lot area requirement and review the '/2 mile
distance requirement associated with a public elementary and secondary school. Council also
directed staff to review the potential of adding additional street pavement to the rural/suburban
street cross section to allow pedestrians and bicyclists to utilize the street along-side vehicles.
Cunningham stated that the provision regarding the '/2 mile distance from the school had been
deleted from the proposal as well as the provision regarding not allowing for a variance.
However, the minimum lot area of one acre and the restriction that none of the lots could have
access from a street that served more than 200 total vehicle trips per day remained in the
proposal.
The Mayor opened the public hearing.
No one spoke during the public hearing.
The Mayor closed the public hearing.
Mayor Pro Tem Kamp motioned, Council Member King seconded to adopt the ordinance. On
roll call vote, Council Member King "aye", Council Member Watts "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.
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
City of Denton City Council Minutes
May 17, 2011
Page 17
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 Gregory announced that May was Bike to Work Month.
Mayor Burroughs asked staff to coordinate with TWU regarding their expansion plans.
B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the
Texas Open Meetings Act.
There was no continuation of Closed Meeting items.
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 8:35 p.m.
MARK A. BURROUGHS
MAYOR
CITY OF DENTON, TEXAS
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS