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April 3, 2012 Minutes CITY OF DENTON CITY COUNCIL MINUTES April 3, 2012 After determining that a quorum was present, the City Council of the City of Denton, Texas . convened in a Work Session on Tuesday, April 3, 2012 at 4:00 p.m in the City Council Work Session Room at City Hall. PRESENT: Council Member King, Council Member Watts, Council Member Gregory, Council Member Engelbrecht, Council Member Roden, Mayor Pro Tem Kamp, and Mayor Burroughs. ABSENT: None 1. Citizen Comments on Consent Agenda Items There were no requests from citizens to speak on Consent Agenda items. 2. Requests for clarification of agenda items listed on the agenda for April 3, 2012. Council Member Watts noted that the backup for Consent Agenda Item 3H indicated that there were 136 units but that the number of bedrooms was much larger. He suggested that in the future the number of bedrooms be looked at as opposed to the number of units and that staff consider a definition of "unit" to include the number of bedrooms with the number of units. Council Member Roden indicated that he did not know about the summer food program associated with Consent Agenda Item 3G and noted that the backup indicated that it was started in 1992. He questioned if it had been a continuous program since then. City Manager Campbell stated that it had been a yearly program since the start in 1992. Council Member Gregory stated that he was glad to see with Consent Agenda Item 3D that the amount of money for the utility assistance program was sufficient. He questioned if there were provisions in place for Interfaith Ministries to come back to the City or staff back to Council for additional funding if funds became short. City Manger Campbell stated that staff would continue to monitor and identify funds if the amount was not sufficient. Council Member Gregory noted that the informal staff report on this issue was very informative. Mayor Burroughs stated that the funding was a set amount per month. He questioned if there were any months when the funds were not enough and were made up with other months when there were overages. Ethan Cox, Customer Services Manager, stated that there were some stressful months in the summer but there were enough reserves to carry through. To date, 85% of the funds had been used which should allow for an amount available for next year. City Manager Campbell questioned if Council would like to discuss Item 4B regarding the Street Bond Committee and the appointment of a chair. Staff could modify the resolution before consideration at the formal meeting. City of Denton City Council Minutes April 3, 2012 Page 2 City Attorney Burgess stated that if Council did not make an appointment, then at the first meeting the members would elect their own chair and vice chair. Mayor Burroughs stated that in the past Council had chosen the chair and felt that it might not be a bad idea for Council to do so for this committee. Mayor Pro Tem Kamp asked if there had been any suggestions from the nominees. City Manger Campbell stated that the chair could be from the 21 members or Council could appoint one additional person to be the chair. Mayor Burroughs noted that Council had not talked about adding another person. Council Member Gregory stated that he could see several possibilities from the list but would have to talk to someone first. Mayor Burroughs stated that he had talked with Marty Rivers who agreed to do that. Council Member Watts questioned what Mr. Rivers was currently chairing. Mayor Burroughs stated he was the chair of the Economic Development Partnership Board. Council Member Watts asked if Tim Crouch was currently chairing any committees. Council Member Gregory suggested appointing a char and co-chair. Council Member Watts proposed charging the committee with these two people and let them decide from the two suggested people who would be chair and vice chair. City Attorney Burgess stated that wording would be added to the resolution for consideration during the regular meeting. 3. Receive a report, hold a discussion and give staff direction regarding the 2012 Tax Abatement Policy for the City of Denton to establish guidelines and criteria governing tax abatement agreements. Erica Sullivan, Economic Development Analyst, stated that the original policy was adopted in 1989. The abatement policies were valid for two years and must be readopted or replaced at the end of the term. The last Tax Abatement Policy was adopted on April 20, 2010. The 2012 policy was modified to include the following considerations for granting tax incentives: local contractor preference, community support and involvement, an expansion of the environmentally sustainable practices category. Local Contractor Preference – under the factors that the city may consider for granting an additional 5% abatement the following was added – a minimum of 25% local contractors and local subcontractors would be utilized during construction of the project. The minimum requirements of 25% would be based on the estimated construction valuation of the project. City of Denton City Council Minutes April 3, 2012 Page 3 Community Support and Involvement was further defined to include that the applicant was committed to actively support the community. That might include monetary or active investment in local non-profits, public institutions or community organizations. It could also include membership and participation in a Denton chamber of commerce. The Economic Development Partnership Board would consider the criteria proposed by the applicant and make a recommendation as to whether the additional 5% would be added to the overall incentive package. Environmentally Sustainable Practices – the additional 5% abatement might be considered if the project incorporated significant environmentally sustainable practices that included Leadership in Energy and Environmental Design certification, recycling initiatives, the manufacture of sustainable materials or products that support sustainable industries in the incorporation of clean technology. Council Member Watts stated that on page 2 of the proposed policy there was an incentive factor that stated “create high-skilled, high paying jobs”. He indicated that past abatements had jobs and salaries listed but he did not see in the policy a definition of high paying job as a minimum base line. He also did not see a process whereby the incentive would be verified throughout the life of the project and questioned if an audit would be done to confirm that. Sullivan indicated that past agreements had to provide documentation or an agreement to go on site and inspect to verify the incentive. Council Member Watts questioned the wording regarding actively supporting the Denton community. He felt it was out of place in an economic development policy and that there were no real requirements or parameters and was vague with no details. Sullivan indicated that there were many potential businesses who indicated that they would have a significant community involvement but then never did. The EDP Board discussed how to keep the wording broad for the projects. Mayor Burroughs stated that defining of the issue was hard for the Board. It could either be way too specific or identifying organizations. If a project received the 5% the person wanting the incentive would have to provide that information and the EDP Board or Council would then approve it. Council Member Watts stated if an incentive were granted and the project was up and running, a follow-up to community involvement would be difficult to monitor. He asked what in the policy provided for follow-up. Linda Ratliff, Director of Economic Development, stated that each year the project would have to document what was done. If the involvement were not met, there would be a reduction in the abatement for the next year. Council Member Gregory stated that it would provide flexibility to the applicant but have a baseline on the amount of involvement. City of Denton City Council Minutes April 3, 2012 Page 4 Council Member Engelbrecht suggested being specific on what a "significant relationship with the community” meant. He questioned what would happen if the abatements were reviewed each year and the standards were not met. Sullivan replied that it depended on the agreement. Some agreements were terminated if the standards were not met. Council Member Engelbrecht stated that he would rather have the 5% terminated if the thresholds were not met. Mayor Pro Tem Kamp questioned why the incentive would be terminated in future years if in one year it was not met. She was in favor of encouraging it for future years. Council Member Engelbrecht stated that the project would have already demonstrated it could not do it so why keep it on. Mayor Pro Tem Kamp stated that she would like to keep the flexibility but not punish for the first time. Mayor Burroughs stated that the EDP Board did not discuss a permanent loss of the 5% as there might be some extenuating circumstances for a particular year. Consensus of the Council was to receive yearly reports on how the incentives were doing. 4. Receive a report, hold a discussion, and give staff direction regarding an ordinance to repeal the current Chapter 13 Food and Food Service Establishments of the Denton Code of Ordinances with a new Chapter 13 Food and Food Service Establishments ordinance. Kurt Hansen, Building Official, stated that the current version of the Food Ordinance was adopted in 2004. The Texas Food Establishment Rules set the minimum standard for the city’s ordinance. There were approximately 600 food establishments in Denton and last November a third inspector was hired. The proposed ordinance made changes and added: mobile food units, temporary food establishments, Farmer's Markets/Community Markets. He reviewed the number of public meetings that were held regarding the proposed ordinance including a March thnd 20 meeting with food establishment owners and a March 22 presentation to the Health & Building Standards Commission Amendments to the current ordinance were detailed as follows: (1) Section 13-3 Personnel was amended to include that a food employee may drink from a beverage container that had a tight fitting lid with a straw and would wear disposable gloves when handling ready-to-eat foods or provide the documentation required under Texas Food Establishment rules for double hand washing. (2) Section 13-4 Food Manager Certification indicated that at least one person per shift shall have a valid “Food Protection Management Training Certificate”. City of Denton City Council Minutes April 3, 2012 Page 5 Council Member Gregory questioned if an extremely small establishment with only one or two employees would have to have one per shift. Hansen stated correct according to the staff recommendation. Council Member Gregory asked if that certificate was more significant than a food handler permit. Hansen stated that the certificate covered much more information. Council Member Roden asked if a coffee shop would have to have one person on staff with this certificate or if it just applied to some type of food service. Hansen stated if the business required a health permit then someone on site during open hours would have to have certification. Jackie Kilz, Health Inspector, stated that when the business was open there must be someone in charge with that certification. This was a common requirement that many area cities had implemented. Mayor Burroughs asked if there was a demonstrated pattern of abuse to show need this. Gary Chambers, Health Inspector, stated that the premise was that people who know better, do better. It might be possible to attach the requirement to the size of an establishment as currently it was done per square footage. Council Member Gregory suggested either by square footage, number of employees or type of items sold. He could see a situation such as a snow cone stand with a young employee where this could be overkill. City Attorney Burgess questioned if the ordinance was referencing the State Health and Safety Code and the Texas Administrative Code and whether the provisions were mandatory or discretionary. Staff would research that provision and provide Council with more information. Council Member Engelbrecht asked for information from other cities that had or did not have that provision or some that had modified provisions. (3) Section 13-8 Duration of Food Handler Card – the proposed change would be to extend the food handler card for two years at a cost of $25.00. Cards would be displayed where they could be easily seen by the Health Inspector. (4) 13-20 Dogs Permitted in Outdoor Dining Area – proposed amendments would allow dogs in an outdoor dining area when the dogs were on a leash at all times and the customer and dog had access to the outdoor dining area directly from the exterior of the food service establishment. (5) Section 13-21 Mobile Food Units – two classes of mobile food units were proposed. Class 1 would be non-PHF, pre-packaged food that provided hot and cold holding units from which City of Denton City Council Minutes April 3, 2012 Page 6 packaged food were displayed and sold. Class II would be able to serve a full menu as approved by the Consumer Health Division. (6) Mobile Unit Permits – would include a permit application with a plan review of the floor plan; a Certificate of Occupancy for zoning districts; an itinerary or route; background checks for owners and workers in terms of conviction of a sexual offence or related offense against a child; provide documentation of agreements regarding parking on private property; and restroom facility use within 500 feet. Council Member King asked if there were background checks for employees in a food establishment. Hansen stated not in Denton but many cities did. Council Member Gregory questioned if restaurants that target children did background checks. City Attorney Burgess stated that staff would look more into this provision. There were sections in the Texas Occupations Code where certain individuals may not receive certain permits. Council Member Roden questioned the itinerary or route provision and whether it was tied to getting a permit and how far out the routes would need to be determined. Hansen stated that the provision was to level the playing field for those units that wanted to be in zoning districts that allowed restaurants. Some units would want to move, some would stay in one location. A route was necessary to make sure that where the unit parked was in a zoned district and so that they could be found during the day when necessary. Council Member Roden questioned how far out to make the itinerary which was tied to the health permit. Hansen stated that a preliminary itinerary could be provided for the permit and if that itinerary was not working, a new one could be submitted. Council Member Roden suggested allowing the health permit first and then provide the route so as to separate the two. Hansen stated that the intent was to manage where the units were going to park. Council Member Gregory stated that some units would be mobile while some would be permanent. He suggested the possibility of electronic notification of moving to a different location. Mayor Burroughs questioned if there was a situation such as a Homeowner’s Association wanting to have a food cart next to their community pool and if that would be allowed. Hansen stated no. Mayor Burroughs suggested finding a way to make that happen to allow for that flexibility. City of Denton City Council Minutes April 3, 2012 Page 7 (7) Section 13-21 Mobile Units – mobile units would meet the requirements of a food service established as listed in the State Health Services TFER and Chapter 13 of the Denton Code of Ordinances. The interior of the mobile units would be professionally manufactured in accordance with Section 13-28 Plans and Permits. The vehicle would be completely enclosed and servicing records would be required to be kept on the unit and at the commissary and shall be available for inspection. Council Member Gregory questioned why the interior had to be professionally built. Hansen stated that the commercial equipment was part of the rules for refrigeration and stoves but as long they could be properly cleaned and washed and kept sanitary, it would be in compliance. Council Member Gregory stated that he was concerned with the wording “professionally built”. Mayor Pro Tem Kamp stated that the unit did not have to be built by a contractor but had to be done professionally and not haphazard. Council Member King suggested using wording that would state the unit had to meet specs but did not have to be done by a professional. Hansen continued with commissary requirements. A commissary would be required for all mobile units. The definition of a commissary was that it was a central preparation facility; a base of operations; a site at which food preparation, storage, and cleaning or servicing of the vehicle occurred. It would be a place to wash down, restock and get rid of used grease. The commissary could not be a private residence or a warehouse and would have a health permit. The mobile units would report to their approved commissary at least once every week to be cleaned and serviced. A Class I vehicle could use a permitted restaurant as commissary. (8) Section 13-21 Mobile Units restrictions – mobile units could not park within 1500 feet of a public school between the hours of 7:00 a.m. and 5:00 p.m.; could not park within 300 feet of a city permitted food establishment unless written permission was given by all food establishment owners involved; could not be cleaned at the location of an existing food establishment as all cleaning would be done at the approved commissary; could not dispose of wastewater or cooking grease at an existing food establishment and could not be located closer than 12 feet from a structure or another mobile food unit. Council Member Roden stated that an established restaurant with a mobile food unit could not service its own unit at the restaurant. Hansen replied correct as the established restaurant would not be equipped to handle the wastewater or the grease from the mobile unit. Council Member Engelbrecht suggested receiving input from the schools on locating near a school. City of Denton City Council Minutes April 3, 2012 Page 8 Mayor Burroughs suggested considering alternatives when schools were not in session such as in the summer or weekends. If the school were closed the restrictions would be not relevant. Council Member Watts asked about the zoning requirement. The purpose was to be in an area where people wanted food and the permission requirement would regulate that aspect. City Attorney Burgess presented information concerning cases of litigation with provisions of locating near permanent restaurants. Council Member Roden asked how sales tax would be collected. Jon Fortune, Assistant City Manager, stated that typically the address for the permit was where the money was collected. Council Member Gregory asked about open air units such as the one in front of the Lowes Store in terms of being completely enclosed or having an approved air curtain. Hansen stated that after passage of the ordinance, it would have to come into compliance. Council Member Gregory stated that lots of cities had those types of facilities so there may a need for another class to address those types of units. (9) Section 13-24 Temporary Food Service Establishments- a temporary permit would be required if serving from a location other than a permitted establishment location. Temporary event applications were due at least 2 working days prior to the event. On event day, all requirements of the food booth would be in place before a temporary food permit would be issued. Single use gloves would be worn over clean hands, barehanded contact with ready-to-eat food would be prohibited and food handler cards would be required. Council Member Gregory asked about a non-profit organization with a celebration serving food to the public and whether in that situation, an application would be required. Hansen stated it would depend on whether the food had to be kept fresh. (10) Section 13-25 Farmer’s Market – proposed provisions included all animals would be in a carrier or on a leash and kept at least 10 feet away from food booths. The requirements for food booths at a Farmer’s Market would be the same as for temporary food service establishments per the TFER, and requests for menu changes would be in writing and only permitted after approval of a Consumer Health Officer. This did not apply to uncut fruits and vegetables. Mayor Pro Tem Kamp stated that these provisions dealt with only the preparation of food. Hansen stated correct. Council Member Engelbrecht asked where in the process a baked good wrapped in an approved kitchen would fall. City of Denton City Council Minutes April 3, 2012 Page 9 Hansen that it would be allowed if done in a permitted kitchen. However, if someone wanted to make a baked good at home to sell for extra money, it would not be allowed. (11) Section 13-29 Outdoor Bars – the provisions would only apply to established bars. Outdoor bars would be held to the same requirements as an indoor kitchen. No potentially hazardous food would be prepared outside. Doors from the established bar to the open patio would not be left open without an air curtain, or screen door and vector control screening would be readily available. (12) Section 13-33 Expiration and renewal of permits – permits would become void unless the applicable permit fee was received before the expiration date of the existing permit. A $35 administrative fee would be charged for renewal of health and beer/wine permits if not received by the expiration date. (13) Section 13-40 Report of Inspections – the proposed ordinance indicated that the inspection score shall be posted by the Health Officer near the primary entrance of the establishment. The posted inspection score would be a letter grade. Any food service establishment owner or manager could request a re-inspection if a score was determined to be unacceptable. Council discussed posting restaurant scores in windows of establishments with the general consensus that the provision was not acceptable. Council Member Gregory asked for an analysis of city's fees as opposed to the cost for inspections to be sure an appropriate amount was being charged to cover the costs. Mayor Pro Tem Kamp requested a side by side comparison of the Austin regulations with the proposed Denton regulations. Council Member Gregory suggested including Fort Worth and Dallas. 5.Receive a report, hold a discussion and give staff direction regarding the placement of accessory structures in side and front yard setbacks. Mark Cunningham, Director of Planning and Development, reviewed the background information on the request by the Denton City County Day School. The school wanted to construct a canopy over an existing concrete slab that was located at the northeast corner of the property. This location was considered as the property’s side yard, and the proposed canopy was considered an accessory structure. The Denton Development Code did not allow accessory structures in front or side yards. Council Member Watts stated that the definition of a side yard was based on the placement of the structure. Cunningham stated correct that it was based on the primary structure. Council options included maintaining the existing provisions or revising the Code to allow accessory structures in side and/or front yards with or without conditions. City of Denton City Council Minutes April 3, 2012 Page 10 Mayor Burroughs stated that there was no consideration for front yards at this time as this was about side structures only. Council Member Roden stated that a third option was a variance process. Cunningham stated that a variance was not allowed in the case of a prohibition. Mayor Burroughs suggest considering a variance procedure or specific use permit procedure for the allowance of accessory structures for institutional uses. Cunningham cautioned about restricting uses in various zoning categories. Mayor Burroughs stated it would be an institutional use with a specific use permit. Council Member Watts felt that some development process items had a clear need to be flexible but the Code did not always allow that. There was also a need to look at the process when trying to create potential flexibility at the staff level and not compromise standards. Cunningham stated that staff would work on the suggestions from Council in terms of side yard regulations for institutional uses. Following the completion of the Work Session, the Council convened in a Closed Session at 6:18 p.m. 1. Closed Meeting: A. Consultation with Attorneys - Under Texas Government Code Section 551.071. 1.Consult with City's attorneys regarding litigation strategy and the status of litigation styled Jones v. City of Denton, Cause No. 2011-50255-367, currently pending in the 367th District Court of Denton County. This item was not considered in Closed Session. Consultation, discussion and deliberation with City's attorneys regarding legal 2. issues relating to Item #5 of the April 3, 2012 Work Session Agenda under both existing and proposed or potential Denton Development Code regulations where such discussion presents a conflict between the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas and the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. 3.Consultation with the City's attorneys regarding legal issues associated with the potential acquisition of certain real property interests located in the Francis Batson Survey, Abstract No. 43, also known as Lot 1, Rayzor Ranch North, an addition to the City of Denton, Texas, according to the plat recorded in Cabinet Y, Page 740, Plat Records, Denton County, Texas, 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 City of Denton City Council Minutes April 3, 2012 Page 11 legal position in any administrative proceeding or potential litigation. Regular meeting of the City of Denton City Council at 6:30 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. National Community Development Week Mayor Burroughs presented the proclamation for National Community Development Week. 2. Friends of the Denton Public Libraries Day Mayor Burroughs presented the proclamation for Friends of the Denton Public Libraries Day, 3. Child Abuse Prevention Month and the Year of CASA Mayor Burroughs presented the proclamation for Child Abuse Prevention Month and Year of CASA. 3. CONSENT AGENDA Council Member King motioned, Council Member Gregory seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll call vote: Council Member King, Council Member Watts, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, Mayor Burroughs, Council Member Roden – “aye”. Motion carried unanimously. Approved the Noise Exception request listed below. A. Consider a request for an exception to the Noise Ordinance for the purpose of performing music during the 2012 Relay for Life to be held at the University of North Texas Fouts Field beginning at 3:00 p.m. on Saturday April 21, 2012, until 6:00 a.m. on Sunday, April 22, 2012. The request is for a variance in decibels, from 70 to 75 decibels, for an outdoor concert and for amplified sound on Sunday until 6:00 a.m. Staff recommends approving the request. Resolution R2012-007 B. Consider approval of a resolution establishing Naming Policy Guidelines for City Buildings, Facilities, Land, or any portion thereof; repealing Resolution No. R2007-035; and declaring an effective date. City of Denton City Council Minutes April 3, 2012 Page 12 Approved the minutes listed below. C. Consider approval of the minutes of: February 14, 2012 February 21, 2012 February 22, 2012 March 5, 2012 March 6, 2012 Ordinance No. 2012-065 D. Consider adoption of an ordinance of the Council of the City of Denton, Texas accepting a proposal and awarding a contract for a Utility Assistance Program for low-income households to Interfaith Ministries in an amount not to exceed $85,000 annually; providing for the expenditure of funds therefor; and providing an effective date. The Public Utilities Board recommends approval (7-0). Ordinance No. 2012-066 E. Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for Electrical Energy Transmission Fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 4933-Adjusted Fiscal Year 1999 Electrical Energy Transmission Fees in the total amount of $645,941). The Public Utilities Board recommends approval (7-0). Ordinance No. 2012-067 F. Consider adoption of an ordinance rejecting any and all competitive bids for a contract for Street Milling Services for the City of Denton; and providing an effective date. (Bid 4909-Two Year Contract for Street Milling Services). Ordinance No. 2012-068 G. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a contract with the Denton Independent School District for the 2012 Summer Food Service Program; authorizing the expenditure of funds to administer the program; and providing an effective date. Ordinance No. 2012-069 H. Consider adoption of an ordinance authorizing the City Manager of the City of Denton, Texas ("City") to execute for and on behalf of the City an Easement Abandonment Agreement ("Agreement"), by and between Creekwood Centre Denton, LLC and the City, contemplating the (I) partial abandonment of that certain easement and right of way, dated on or about July 30, 1927, from Mrs. S. A. Bayless, et al to the Texas Power & Light Company, recorded in Volume 216, Page 231, Real Property Records, Denton County, Texas, being further referenced in an assignment of easements, dated on or about May 21, 1975, from Texas Power & Light Company to the City of Denton, recorded in Volume 756, Page 669, Real Property Records, Denton County, Texas, as more particularly described in the ordinance; and (II) partial abandonment of that certain City of Denton City Council Minutes April 3, 2012 Page 13 utility easement, dated on or about May 6, 1955, from J. A. McLeod, and wife Florence McLeod to the City of Denton, Texas recorded in Volume 419, Page 25, Real Property Records, Denton County, Texas, as more particularly described in the ordinance, and affecting lands located in the A. Hill Survey, Abstract No. 623, Denton County, Texas and particularly described as Lot 1, Block A of Denton Station, Phase One, an addition to the City of Denton, Denton County, Texas according to the plat recorded in Cabinet Y, Page 740, Plat Records, Denton County, Texas, and Lot 2, Block A of Denton Station, Phase One, an addition to the City of Denton, Denton County, Texas, according to the plat recorded in Cabinet W, Page 463, Plat Records, Denton County Texas and located approximately within the 1400 block of Centre Place Drive, Denton, Texas upon the terms and conditions provided in the Agreement; authorizing the City Manager to execute an Abandonment and Release of Easements ("The Release"), upon the terms and conditions provided by the Agreement; and declaring an effective date. 4. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider appointment of board members for Tax Increment Financing Zone Number One (Downtown TIF). Linda Ratliff, Director of Economic Development, stated that seven members were appointed to the Tax Increment Financing Zone Number One in February of last year. Members drew lots at their first meeting to determine who would have one and two year terms. Three positions were currently eligible for reappointment; Pete Kamp, Bob Moses and Marty Rivers. All had agreed to serve another term. Council Member Watts motioned, Council Member Roden seconded to approve the nominations of Pete Kamp, Bob Moses and Marty Rivers. On roll call vote: Council Member King, Council Member Watts, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, Mayor Burroughs, Council Member Roden – “aye”. Motion carried unanimously. Resolution R2012-008 B. Consider approval of a resolution creating a special Citizens Bond Advisory Committee for the proposed 2012 street bond election; establishing a charge for the Committee; and declaring an effective date. Bryan Langley, Chief Finance Officer, stated that he would be presenting Items B and C together. He reviewed the reason for the formation of the Bond Committee and the need for the bond program for street maintenance. The resolution would create the committee and establish the charge of the committee. It would also charge the committee regarding the public art provision for the bond issuance. Council had been provided a revised resolution regarding the committee selecting a chair from either Marty Rivers or Tim Crouch. Council Member Watts questioned if the charge for the art provision would be just for this issuance of bonds. Langley stated correct. City of Denton City Council Minutes April 3, 2012 Page 14 Council Member Gregory motioned, Council Member King seconded to approve the resolution as amended. On roll call vote: Council Member King, Council Member Watts, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, Mayor Burroughs, Council Member Roden – “aye”. Motion carried unanimously. C. Consider appointments to the Citizen Advisory Committee for the proposed 2012 Bond Election. Bryan Langley, Chief Finance Officer, stated that the Council had been provided a list of committee appointments. Council Member Watts appointed Jo Williams to the committee. Council Member Roden questioned if someone had to leave the committee would there be a substitute for that member or just have a vacancy. Langley stated the committee would discuss that if the situation came up. Council Member King motioned, Council Member Watts seconded to approve the appointments with the addition of Ms. Williams. On roll call vote: Council Member King, Council Member Watts, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, Mayor Burroughs, Council Member Roden – “aye”. Motion carried unanimously. Ordinance No. 2012-070 D. Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $49,325,000 in principal amount of "City of Denton Certificates of Obligation, Series 2012" (including up to $4,900,000 for General Government activities, up to $6,070,000 for Solid Waste Fund activities, and up to $38,355,000 for Electric, Water, and Wastewater Fund activities); authorizing the issuance of the Certificates; delegating the authority to certain City officials to execute certain documents relating to the sale of the Certificates; approving and authorizing instruments and procedures relating to said Certificates; and enacting other provisions relating to the subject. Bryan Langley, Chief Finance Officer, presented information for Items D and E. He indicated that on February 21, 2012, Council adopted Ordinance No. 2012-042 and 2012-043 directing the publication of a Notice of Intention to issue Certificates of Obligation for General Government, Solid Waste, Water, Wastewater, and Electric System projects. Staff was recommending the selling of Certificates of Obligation instead of utility refunding bonds as it would save $2.5 million over the life of the debt. Item 4E dealt with General Obligation Refunding and Improvement bonds. The funded items represented the projects approved by the voters in the 2005 Bond Election and to refund existing debt. This would provide significant savings over the life of the debt. City of Denton City Council Minutes April 3, 2012 Page 15 Staff was requesting a negotiated parameter sale. City staff would be authorized to execute the sale without additional Council approval provided that the net effective interest rate on the bond was less than 4%. Four underwriting firms had been selected to assist in the sale of the securities. Exact pricing would be provided at a future meeting. Mayor Burroughs noted that one item for the Certificates of Obligation was automated meter reading. Council had a prior discussion regarding the automated readers and he questioned the future capacity that would allow for the $2.5 million. Phil Williams, General Manager-DME, stated that currently 10,000 meters had been replaced and it would take the next year and a half to replace the rest of the meters. Council Member Watts motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote: Council Member King, Council Member Watts, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, Mayor Burroughs, Council Member Roden – “aye”. Motion carried unanimously. Ordinance No. 2012-071 E. Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $42,000,000 in principal amount of "City of Denton General Obligation Refunding and Improvement Bonds, Series 2012"; authorizing the issuance of the Bonds; delegating the authority to certain City officials to execute certain documents relating to the sale of the Bonds; approving and authorizing instruments and procedures relating to said Bonds; and enacting other provisions relating to the subject. This item was discussed with Item D. Council Member King motioned, Council Member Roden seconded to adopt the ordinance. On roll call vote: Council Member King, Council Member Watts, Council Member Gregory, Council Member Engelbrecht, Mayor Pro Tem Kamp, Mayor Burroughs, Council Member Roden – “aye”. Motion carried unanimously. 5. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B.Receive citizen reports from the following: 1) Bob Clifton regarding City Elections (2nd Edition). Mr. Clifton was not present at the meeting. 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 City of Denton City Council Minutes April 3, 2012 Page 16 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 suggested a Work Session item regarding a dialog for a type of structure for development issues for better efficiency in the development process and flexibility in the process. B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. Mayor Burroughs noted that Council would be continuing the Closed Session. 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 Session items. Council went into back into Closed Session at 7:32 p.m. to discuss the following: B. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. 1. Receive a briefing from staff, discuss, deliberate and provide staff with direction regarding the established route for the Denton Municipal Electric Northeast Denton Transmission Line Re-Build Project in the City of Denton, Texas specifically running from the King's Row Substation to the Denton North Interchange pertaining to the value, location, acquisition or condemnation of tracts of real property situated in the D. Culp Survey, Abstract No. 287; the J. Coltart Survey, Abstract No. 288; the H. Williams Survey, Abstract No. 1417; the S. McCracken Survey, Abstract No. 817; the V. Gailor Survey, Abstract No. 452; and the T. Toby Survey, Abstract No. 1288; receive a consultation from the City's attorneys regarding the same, where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Rules City of Denton City Council Minutes April 3, 2012 Page 17 of Professional Conduct of the State Bar of Texas. 2. Discuss, deliberate and receive information from staff and provide staff with direction pertaining to the potential purchase of certain real property interests located in the M.E.P. & P.R.R. Co. Survey, Abstract No. 927, Denton County, Texas, and located generally in the 300 Block of North Mayhill Road, the 1000 Block South Mayhill Road, and the 1300 Block South Mayhill Road, all within the City of Denton, Texas. Consultation with the City's attorneys regarding legal issues associated with the potential acquisition of the real property described above 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 administrative proceeding or potential litigation. The Council went back into Open Session at 8:30 p.m. and with no further business the meeting was adjourned. ____________________________________ MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS ____________________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS