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September 25, 2018 Minutes CITY OF DENTON CITY COUNCIL MINUTES September 25, 2018 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, September 25, 2018 at 2:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Duff, Mayor Pro Tem Ryan, Council Member Armintor, Council Member Meltzer, and Mayor Watts. ABSENT: None. 1. Citizen Comments on Consent Agenda Items There were no citizen comments on Consent Agenda Items. 2. Requests for clarification of agenda items listed on the agenda for September 25, 2018. Council Member Armintor requested a Closed Session discussion on Individual Item C. 3. Work Session Reports A. ID 18-1604 Receive a report, hold a discussion and give staff direction regarding the 2018- 19 Audit Plan. Umesh Dalal, City Auditor, presented his 2018-19 Audit Plan. He noted that the Plan was presented to the Audit/Finance Committee and that they recommended he present it to the Council. He detailed the Internal Audit function, Internal controls, Internal controls objectives, and the Internal Audit Plan which included 12 projects. Four additional projects were also available should the Council not want to do all of the projects he noted. Council discussed: Whether it was possible that projects listed would take less time than noted Consider doing the grants management rather than payroll Consider doing another project rather than the DME as it had just been done Consensus of the Council was to proceed as noted in the Plan. B. ID 18-1605 Receive a report, hold a discussion, and give staff direction regarding the potential reestablishment of a Committee on People with Disabilities. Mario Canizares, Assistant City Manager, presented background information on the establishment of a prior Committee and whether Council would like to re-establish the Committee. He reviewed the duties of the prior committee, a comparison of area cities on how they dealt with a similar committee, areas of focus that could be considered by an Advisory Committee, and options for consideration of the item. City of Denton City Council Minutes September 25, 2018 Page 2 Council discussed: Currently there were adaptive recreation activities provided by Parks and that should be included on a potential list of focus areas for the Committee Consider an established committee similar to other city committees Have members from the prior committee meet with a new committee to assist in the transition Consider persons with disabilities to be members of the committee The value of having more people involved in the committee by leaving the membership to whoever might want to be involved A structured approach would be more appropriate Develop a public avenue for people to discuss the options before formal Council consideration Consider posting the item as an item for Individual Consideration on an agenda to receive public input Consider a new committee with 7 members appointed by the Council Consider including staff associated with ADA requirements as part of the committee Whether the current resolution was still in effect for the prior committee Consensus of the Council was to proceed with Option 3; membership would consist of 11 members, one each appointed by the Council and the others at-large appointments; develop objectives for the committee; and a public forum would be at the time of Council consideration. C. ID 18-1607 Receive a report, hold discussion, and give staff direction regarding neighborhood traffic calming options in the City of Denton. Pritam Deshmukh, Traffic Engineer, presented the definition of traffic calming which was achieved through education, enforcement and engineering. He noted the steps involved in education and enforcement for a particular area where traffic speed might exceed in the area. Engineering was the most method requested by residents. He detailed the steps followed by staff when a request for a traffic calming device was requested. The various options for traffic calming devises were noted with listed advantages and disadvantages. He detailed the next steps in the process. Council discussed: An area of concern was streets near schools Whether public art in traffic calming was effective over time Rationale for using the muse streets for a test location for traffic calming Suggested locations at I35 and Dallas Drive for a traffic calming location Consider the use of paver crosswalks to help slow down traffic Whether the City could have controls/guidelines in excess of the federal guidelines Consider documentation on ways to get approval of a traffic calming device Following the completion of the Work Session, the City Council convened in a Closed Meeting to consider the specific items listed below under the Closed Meeting section of this agenda. City of Denton City Council Minutes September 25, 2018 Page 3 1. Closed Meeting: Council Members Armintor and Meltzer did not participate in the discussion of this Closed Meeting item. A. ID 18-1372 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code, Section 551.071. Receive a presentation from staff regarding public power competitive and financial matters related to a Power Purchase Agreement between the City of Denton, as the seller of power and electric energy services, and the University of North Texas, as a buyer of power and electric energy services; discuss, deliberate, and provide direction to staff regarding the same. Consultation with the City’s attorneys regarding legal issues associated with the above matters 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. Council Member Armintor and Meltzer returned to the Closed Meeting. B. ID 18-1536 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code Section 551.071. Discuss and deliberate on strategies and opportunities for the City to acquire natural gas for the Denton Energy Center ("DEC"); receive a presentation from staff regarding public power competitive and financial matters for the purchase of natural gas; and provide recommendations on the purchase of natural gas under the existing Base Contract for the Purchase and Sale of Natural Gas with Enterprise Products Operating, LLC. Consultation with the City’s attorneys regarding legal issues associated with the agreements described above where discussion of these legal matters in an open meeting 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. Following the completion of the Closed Meeting, the City Council convened in a Special Called Meeting to consider the following items: 1.ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance 18-1463 A. ID 18-1463 Consider adoption of an ordinance of the City of Denton, approving an agreement with the Friends of the Denton Public Libraries and the City of Denton, Texas to clarify the roles and responsibilities of each party; to raise funds and support programming for the Denton Public Library; authorizing the City Manager or his designee to execute the Friends of the Denton Public Libraries Agreement; and providing an effective date. City of Denton City Council Minutes September 25, 2018 Page 4 Jennifer Bekker, Director of Libraries, noted that the agreement would specify the roles and responsibilities of the Friends of the Public Library and the City. Mayor Pro Tem Ryan motioned, Council Member Briggs seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member Duff "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "aye", Council Member Meltzer "aye", and Mayor Watts "aye". Motion carried unanimously. Ordinance 18-1537 B. ID 18-1537 Consider adoption of an Ordinance of the City of Denton authorizing the City Manager, or designee, to execute a physical gas transaction confirmation for the purchase of natural gas under the terms and conditions of base contract for the purchase and sale of natural gas with Enterprise Products Operating, LLC; providing for the expenditure of funds; and providing for an effective date. George Morrow, General Manager – DME, presented the details regarding the proposed natural gas contract for the DEC. He noted that the current contract was expiring and reviewed the procurement process and recommendation to enter into agreement with Enterprise. Mayor Pro Tem Ryan motioned, Council Member Duff seconded to adopt the ordinance. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "nay", Council Member Duff "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "nay", Council Member Meltzer "aye", and Mayor Watts "aye". Motion carried with a 5-2 vote. Ordinance 18-1484 C. ID 18-1484 Consider adoption of an ordinance of the City of Denton ("City") authorizing the City Manager, or his designee, to execute a Contract of Sale by and between Janda Legacy Investments, LP ("Owner"), and the City, regarding the sale and purchase of fee simple to a 0.8123 acre tract, more or less, situated in the B.B.B. & C.RR. CO. Survey, Abstract No. 192, Denton County, Texas for the purchase price of Four Hundred Seventy Five Thousand Dollars and No Cents ($475,000.00), as prescribed in the Contract of Sale; authorizing the expenditure of funds therefor; and providing an effective date. (Bonnie Brae Street Widening and Improvements project - North (Phase 5) - Parcel 31 (Janda - 2300 Scripture Street) Council Member Hudspeth recused himself from deliberation/vote on this item. Paul Williamson, Real Estate Manager, presented the details regarding the proposed real estate purchase. He noted the location of the property, proposed alignment of Bonnie Brae around the property and considerations for approval. Council Member Meltzer questioned the use of the land around the roadway to preserve the subject property in question as green space. Pritam Deshmukh, Traffic Engineer, stated that there were several options of the layout at this time and that most of the area would be saved. City of Denton City Council Minutes September 25, 2018 Page 5 Council Member Meltzer asked about the appraisal. Williamson stated that the Denton County Appraisal District used a mass appraisal of the area and did not pick up on potential changes. It was not always the highest and best use of the property. Council Member Briggs asked about any transactions for the house on the other side of the property Williamson stated that there were none at this time as the alignment had just been completed. The property owners were aware of the possibility. Mayor Pro Tem Ryan motioned, Council Member Duff seconded top adopt the ordinance. On roll call vote, Council Member Briggs "nay", Council Member Duff "aye", Mayor Pro Tem Ryan "aye", Council Member Armintor "nay", Council Member Meltzer "aye", and Mayor Watts "aye". Motion carried with a 4-2 vote. Council Member Hudspeth returned to the meeting. Ordinance S17-0007b D. S17-0007b Continue to consider adoption of an ordinance for a Specific Use Permit to allow for a multi-family use. The 12.37-acre site is generally located on the east side of Brinker Road, approximately 990 feet south of South Loop 288 in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. (S17-0007a, Enclave at Denton, Hayley Zagurski). THIS ITEM WAS CONTINUED FROM THE SEPTEMBER 18, 2018 MEETING FOLLOWING A TIE-VOTE. Haley Zagurski, Development Services, presented the nature of the request and the site data. She noted the summary of the proposed development, criteria for approval, and the recommendations from staff and the Planning and Zoning Commission. Council discussed the number of bedrooms for the proposal. Speaker cards were submitted by the following: Rick Simmons – applicant, 1851 Broken Bend, Westlake, 76262 - spoke in favor Council discussed the number of joint projects with a housing entity. Paul Milosevica – applicant, 509 Wales, Coppell - spoke in favor Kenneth Fambro – applicant, Southlake, 76092 – spoke in favor Council discussion included: Allowable rent charges per the memorandum of understanding How to ensure a rent schedule that would take into account a number of units reserved in accordance with affordable housing standards HUD guidelines and affordable rent schedules City of Denton City Council Minutes September 25, 2018 Page 6 Include a binding agreement between the Housing Authority and the developer for a rent agreement What was the mechanism by which rents might increase Council Member Meltzer motioned approval subject to the staff conditions and that the applicant execute a binding agreement around the rent guidelines with the Denton Housing Authority with penalties of breach comparable to the value of the tax abatement. Council continued their discussion: It appeared that this development was a cut above other properties and the below market rate rent would be a great deal Procedures for previous eviction history and late payments plus deposit amounts No one in community had spoken against the project Traffic was an issue Kelly Parma – applicant, 3030 LBJ Freeway, Dallas, 75234, spoke regarding the flow of traffic around the proposed development Council discussed the estimated number of trips during peak hours in the morning and evening. John Shackelford, attorney for the developer, noted that language could be included in the partnership agreement to have 10% at 50%; 10% at 60% and the rest at 80% of the median income. Ryan McIntosh – applicant, 4047 Fawnhollow, Dallas, 75244 was available to answer questions. Council discussed: Whether the Planning and Zoning Commission evaluated the traffic impacts as part of their process and their findings – staff noted that a full TIA was more appropriate during the platting process as opposed to the SUP process The SUP request was ahead of schedule especially in terms of traffic impact How the rents were set for the units in terms of who made that determination How the rental agreement might be overridden Traffic of current developments in the area were directed out to Brinker Road which this development would also contribute to Council Member Meltzer redefined his motion to approve with the conditions as noted by staff plus the successful execution of a binding agreement with the Denton Housing Authority represented in the rent grid provided of 10% off the 51% with a penalty breach in any given year equal to the tax exemption. City Attorney Leal noted that there already was a penalty in the ordinance related to the SUP conditions and questioned if this additional condition was for a successful agreement binding to the rental grid. City of Denton City Council Minutes September 25, 2018 Page 7 Mayor Watts noted that if something were not included with the SUP, the developer could breach the rental conditions but still maintain the SUP conditions. City Attorney Leal noted that a breach could occur if the rates were adjusted following Federal guidelines if the conditions were tied to a static number in the future. Council discussed the proposed motion and the binding agreement condition to be included with the SUP. Affordability and HUD guidelines for area median income were noted. Council Member Hudspeth offered a friendly amendment to include the partnership agreement with the other entities as part of the application. Council Member Meltzer indicated that he was not open to that friendly amendment as the intent of the rental grid was to make the project affordable. Council Member Meltzer restated his motion to approve with the staff conditions and a binding condition with penalty that would bind the project to reserving 10% of the units at 50% of area median income and 10% of the units at 60% of the area median income in some form with a penalty consequence with the detail of the consequence to come from the City Attorney. After Council discussion of the motion, Council Member Meltzer withdrew his motion. Council Member Hudspeth motioned, Council Member Duff seconded to adopt the ordinance with the staff conditions. Council Member Meltzer offered a friendly amendment that the rent grid be attached to the DHA agreement. Council Member Hudspeth and Duff accepted that friendly amendment to their motion and second. On roll call vote, Council Member Briggs "nay", Council Member Duff "aye", Mayor Pro Tem Ryan "nay", Council Member Armintor "aye", Council Member Hudspeth “aye”, Council Member Meltzer "aye", and Mayor Watts "nay". Motion carried with a 4-3 vote. 2. PUBLIC HEARINGS A. A18-0002b Conduct the second of two public hearings for a voluntary annexation of approximately 86.47 acres of land generally located between Creekdale Drive and Hickory Creek Road, east of the railroad tracks by the City of Denton, Texas. (A18- 0002, Lakeside Place, Cindy Jackson) Richard Cannone, Development Services, presented the details regarding the project. This was the second public hearing on the annexation. He noted that a traffic analysis was currently in progress and presented the proposed annexation schedule. The Mayor opened the public hearing. City of Denton City Council Minutes September 25, 2018 Page 8 Abra Nusser, applicant, spoke in favor. The Mayor closed the public hearing. No action was needed on this item at this time. 3. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Council Member Hudspeth List based on staff's account of agreements submitted to Council and broken for the past three years Consider painted dumpsters - make them an art piece Council Member Meltzer Staff report on the parcel at Scripture and Bonnie Brae purchased and whether it could be added as a park in future action Informal Staff Report on the possible public use of the building on the parcel Mayor Watts City Attorney to circulate the final ordinance on the SUP approved at this meeting so all Council Members could read it to make sure what was approved at this meeting White paper on HUD guidelines and development pertaining to 303 statutes; who was responsible for tax exemption status and the associated specific statutes Council Member Armintor Staff report on what other cities have done to in terms of ordinances ensuring any contractors/businesses doing business with those cities paid a livable wage and what those livable wage calculations were Council Member Briggs Council review of the right-of-way ordinance and associated permitting Staff report on municipal broad band City of Denton City Council Minutes September 25, 2018 Page 9 B. Possible Continuation of Closed Meeting topics, above posted. There was no continuation of the Closed Meeting With no further business, the meeting was adjourned at 8:27 p.m. _______________________________ CHRIS WATTS MAYOR CITY OF DENTON, TEXAS _______________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS