March 28, 2017 Minutes
CITY OF DENTON CITY COUNCIL MINUTES
March 28, 2017
After determining that a quorum was present, the City Council convened in a Work Session on
Tuesday, March 28, 2017 at 2:00 p.m. in the Council Work Session Room at City Hall.
PRESENT: Mayor Pro Tem Roden, Council Member Wazny, Council Member Briggs, Council
Member Hawkins, Council Member Gregory, and Mayor Watts.
ABSENT: Council Member Bagheri.
1. Work Session Reports
A. ID 17-316 Receive a report, hold a discussion, and give staff direction regarding a Fourth
Amendment to an Economic Development Program Grant Agreement with Allegiance
Hillview, L.P. for the Rayzor Ranch development.
Caroline Booth, Director of Economic Development, presented the request from RED
Development for an extension of their Economic Development Program Agreement for six months
in order to meet the commercial and retail space in Rayzor Ranch needed to initiate its incentive.
She reviewed the details of the current occupancy of the development along with the specifics of
the requested amendment. The amendment would also memorialize the assignment of the Rayzor
Ranch Marketplace. The Economic Development Partnership Board recommended approval. Staff
recommended approval with the stipulation that no further amendment requests related to deadline
or threshold changes be considered by the City.
Council discussed the impact if the amendment was not approved and RED did not reach their
designated COs as required; whether city processes were delaying the development; and that it
was not wise for the City to not support the project with so much already invested in it.
Scott Waggoner, RED Development, presented a brief update on the progress of the development.
He would return at a later date with a more comprehensive report.
Consensus of the Council was to proceed with the amendment.
B. ID 17-387 Receive a report, hold a discussion, and give staff direction regarding proposals
received for City of Denton Employee Health Clinic and Operation Management Services.
Scott Payne, Risk Manager, presented a recap of the City's self-funded health plan and the
Employee Health Center (Clinic). A review of the Clinic providers was shown. Clinic utilization
was presented along with cost per visit versus cost per the health plan.
Council discussed the cost per visit versus cost of the health plan; clinic-care diversion savings;
and why not all employees were using the Clinic.
Payne continued with the estimated clinic savings that included care diversion savings, lab savings,
productivity savings, and patient out-of-pocket savings. Patient satisfaction survey results were
reviewed. He presented information on the Request for Proposal which was to seek a qualified
vendor to provide clinic operation and management services at the existing Clinic. It was never
the intent to replace the City's clinic with another clinic or to intermingle patient bases. The areas
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March 28, 2017
Page 2
involved in the evaluation of the proposals for the Request for Proposal were presented along with
compliance with specifications, quality, reliability, and characteristics to meet stated or implied
needs.
Council discussed the steps involved in the Request for Proposal process including time schedule
and persons to contact.
Payne noted that the staff recommendation was that the contract be awarded to CareHere.
Council discussed the comparison of the scoring among the different requests and whether local
preference was considered in the criteria.
C. ID 17-393 Review, discuss, and provide direction regarding the duties and plans of the City
Auditor.
Craig Hametner, Internal Auditor, reviewed the duties and plans of the City Auditor per the Charter
and enabling ordinance. He felt that there should be items added to the duties such as
independence, general duties and responsibilities and standards.
Council discussed the definition of independence and where that independence rested either with
management or Council.
Hametner continued with duties and plans of the City Auditor to include anonymous reporting
mechanisms to report fraud, waste and abuse. This would be an anti-Fraud Program to include tips
to catch fraud, waste and abuse using different modes of communication. He reviewed the different
types of reports that could be issued by the Internal Audit Department. The FY 2017 six month
Audit Plan was presented.
Council discussed not allowing individual council members to request separate audits rather have
the Council as a whole provide direction; the various components of the plan were reviewed; and
consider a collaborative approach to include the other Council appointees into the mix.
Interim City Manager Leal suggested memorializing the plan in an ordinance.
Consensus of the Council was to proceed with the six month plan and draft an ordinance associated
with the plan.
The Council convened in a Closed Meeting at 4:21 p.m. to discuss the proposals received for City
of Denton Employee Health Clinic and Operation Management Services under Texas Government
Code Section 551.071 – Consultation with Attorneys.
Council returned to the Open Meeting at 4:27 p.m. and continued with the Special Called Meeting.
1.ITEMS FOR INDIVIDUAL CONSIDERATION
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March 28, 2017
Page 3
Ordinance No. 2017-106
A. ID 17-196 Consider adoption of an ordinance accepting competitive proposals and
awarding a contract for the City of Denton Employee Health Clinic and Operation
Management Services; and providing an effective date (RFP 6198-awarded to
CareHere, LLC in the amount of $20.00 per employee per month (PEPM) for an
estimated annual cost of $386,325 for management costs and $566,000 for salaries
and supplies with a five (5) year total not-to-exceed $5,010,300).
Speaker Cards were submitted by:
Chloe Wenzsel - spoke in opposition
Filippo Masciarelli - spoke in opposition
Alice Masciarelli - spoke in opposition
Council discussed the total cost of the clinic; the amount of the contract and the amount of savings
as an inclusive amount of all costs.
Council Member Gregory motioned, Council Member Hawkins seconded to adopt the ordinance.
On roll call vote, Mayor Pro Tem Roden "aye", Council Member Wazny "aye", Council Member
Briggs "nay", Council Member Hawkins "aye", Council Member Gregory "aye", and Mayor Watts
"aye". Motion carried with a 5-1 vote.
Ordinance No. 2017-106
B. ID 17-347 Consider adoption of an ordinance approving amendments to the term of
the agreement, adding baseline metrics, adding a general termination clause, and
adding an appropriations clause to the Management Agreement between the City of
Denton and the Dallas Entrepreneur Center.
Council Member Gregory left the meeting with a conflict of interest.
Caroline Booth, Director of Economic Development, reviewed the recommendations for the
amendment of the agreement.
Council discussed the evaluation criteria staff would be using to further evaluate the value of Stoke
Denton.
The following Speaker Cards were submitted:
Terry Thomas - spoke in favor of Stoke
Kevin Tydlacka - spoke in favor of Stoke
Kyle Taylor - spoke in favor of Stoke
Council Member Hawkins motioned, Mayor Pro Tem Roden seconded to adopt the ordinance. On
roll call vote, Mayor Pro Tem Roden "aye", Council Member Wazny "nay", Council Member
Briggs "aye", Council Member Hawkins "aye", and Mayor Watts "aye". Motion carried with a 4-1
vote.
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March 28, 2017
Page 4
Council Member Gregory returned to the meeting.
Ordinance No. 2017-108
C. ID 17-367 Consider adoption of an ordinance approving a City sponsorship in an
amount not to exceed $154,000 of in-kind services and resources for the Denton Arts
and Jazz Festival to be held in Quakertown Park on Friday through Sunday, April 28-
30, 2017; and providing an effective date.
Emerson Vorel, Director of Parks and Recreation, stated that the agreement was being changed to
add liability for damages to the park during an event. Council had requested that this provision be
added which would be added to every contract for use of the parks.
Council Member Gregory asked how much the repairs cost from the rain event two years ago.
Vorel replied approximately $50-60,000.
Council Member Gregory questioned if the Festival Foundation knew of that cost. Vorel replied
that they did.
Council Member Gregory questioned if the Festival Foundation had the cash reserves for such an
expense. Vorel replied yes that the Foundation had enough cash reserves as noted in their financial
report provided to the City.
Mayor Pro Tem Roden questioned if Arts and Jazz had agreed to the terms.
Vorel stated that they had been made aware of the provision.
Mayor Pro Tem Roden asked what controls were in place to help prevent this type of damage in
the future.
Vorel stated that staff had limited where traffic would flow as vendors set up and took down their
stands.
Council Member Wazny motioned, Mayor Pro Tem Roden seconded to adopt the ordinance. On
roll call vote, Mayor Pro Tem Roden "aye", Council Member Wazny "aye", Council Member
Briggs "aye", Council Member Hawkins "aye", Council Member Gregory “aye”, and Mayor Watts
"aye". Motion passed unanimously.
2. 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
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March 28, 2017
Page 5
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 Wazny requested a resolution that would allow the Council Employee Leave
Committee to continue their deliberations.
Council Member Briggs requested a staff report or a Work Session on minimum square footage
for homes in terms of tiny houses.
With no further business, the meeting was adjourned at 5:25 p.m.
___________________________________
CHRIS WATTS
MAYOR
CITY OF DENTON, TEXAS
___________________________________
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS