HomeMy WebLinkAbout05/16/1977 City Council MINUTES OF REGULAR NIEETING
THE CITY OF THE COLONY
DENTON COUNTY, TEXAS
MAY 16, 1977
THE STATE OF TEXAS )
)
COUNTY OF DENTON )
The City Council of the City of The Colony, Denton County,
Texas, convened in regular session, open to the public, at the
North end of the First Baptist Church in the City of The Colony,
Denton County, Texas, at 7,30 P.M., Monday, Nay 16, 1977, and
the roll was called of the members of the Council, to wit,
Luis Guerrero Mayor
Linda Adams Alderman
Joe Gaulden Alderman
Sandra Shearer Alderman
Dick Weaver Alderman
and all members were present, thus constituting a quorum.
Also present were Bill Davis, Attorneyl Pam Schuman,
acting secretary to the City Councill and members of the public.
The meeting was called to order by Mayor Luis Guerrero
who welcomed residents and visitors. Mayor Guerrero then
announced that he would not be following the exact order of
the agenda since one Alderman was unable to stay after 8,15 P.M.
and he wanted to cover certain items before the Alderman left
the meeting.
The first item considered by the Council was approval
of the minutes of the regular meeting of May 2, 1977. Alderman
Dick Weaver made the motion to accept the minutes as submitted
and the motion was seconded by Alderman Joe Gaulden. The
motion was carried by the following vote,
Ayes, All members present voted aye
Noes, None
The Council next considered agenda item #2, ratification
of the name of the City. Mayor Guerrero stated that the public
had had two separate opportunities to voice their opinions as
to the name for their new city. In the first poll, 61 people
wanted the city named "The Colony"l this was a majority of
those expressing an opinion. In the second poll, 72 people,
also a majority~ chose the name "The Colony"; the second choice,
with 55 people selecting it, was "Colony Park". The motion
was made by Alderman Gaulden to resolve that the City shall
henceforth be called "The Colony." Alderman Weaver seconded
the motion. The motion was carried by the following vote,
Ayes~ Ail members present voted aye
Noes, None
Agenda item #3, approval of the contract with Texas
Power and Light Company, was next discussed. The representa-
tives present for Texas Power and Light were Mr. Boyd Williams,
District Manager for the McKinney District of which The ColonY
is a part, and Mr. Harry Bomar, the chief accountant.
Mr. Williams presented the contract to the City Council, ex-
plaining that it was a fifty-year contract. He stated this
was to the City's advantage since it would help them borrow
money and it gave them a better rate. He also pointed out
that the franchise contract was non-exclusive so that the City
could grant some other company a franchise too. He concluded
by saying that Texas Power and Light would be presenting the
City with a check for $20,625.00 (Twenty Thousand Six Hundred
Twenty-five Dollars and No Cents) in payment of the franchise
fee for the year beginning June 1, 1977. Each year thereafter,
Texas Power and Light would pay the City three per cent (3%)
of its gross revenues from the City for the past year. Lastly,
Mr. Williams stated he would file with the City Council a rate
book for which the Council would sign a receipt.
At this time, Attorney Bill Davis explained for the
benefit of the audience that this was a contrac~ with the
utility to give them the right to use the streets, put in
poles, and so on, and hold the City harmless from any liability
involved. The utility in turn was paying for the privilege
0OO022
with 3% of its annual gross revenues. He mentioned that Texas
Power and Light was the only utility paying the City retro-
actively. .Mayor Guerrero asked Mr. Williams why he was unable
to present the check that evening. Mr. Williams apologized by
saying that the Vice President who had to approve the check
had gone out of town prior to approving its he stated that the
City would have the check within five days, however. Alderman
Linda Adams asked if the City Council would have to pass the
rate book that evening. Mr. Williams said he would appreciate
it if the Council would to save him a trip back. He pointed
out that the rate book had already been passed by the Public
Utility Commission in Austin. Attorney Davis advised that
he had no objections to the Council passing the rate book
since it could not be negotiated and had been approved by the
P.U.C.
Alderman Sandra Shearer then moved that the Council pass
and approve the ordinance granting to Texas Power and Light
Company, its successors and assigns, an electric light, heat
and power franchisee Alderman Gaulden seconded the motion.
The motion was carried by the following vote,
Ayes, Ail members present voted aye
Noes~ None
Discussion then took place regarding passing the tariffs
and service regulations of Texas Power and Light Company,
referred to as the rate book. Alderman Gaulden said he had
been caught by surprise by the necessity of passing on the
rate book and would like time to review it. Mr. Williams noted
that it was only because the City had incorporated that he had
to have City Council action on the rate bookl if The Colony
had not incorporated, the P.U.C. would have been able to auto-
matically enact the rate book for the area. Attorney Davis
advised that the Council put in their resolution ~hat they
would accept the material as passed by the P.U.C. so that
Mr. Williams would not have to come back. Mr. Bomar sgm~arized
how the P.U.C. had changed the rate schedules for rural and
urban areas. Alderman Adams requested time to review the rate
book at this time. Mayor Guerrero suggested the Council make
the motion passing the rate book subject to reviewing that it
complies with the P.U.C. Mr. Williams pointed out thatthe
rates became effective after June 26, so action would be
necessary soon. Alderman Gaulden suggested tabling the dis-
cussion for further review. Mr. Williams and Attorney Davis
agreed that results on the matter taken up at the June 6th
City Council meeting would be retroactive to June 1, 1977.
Alderman Adams moved to table discussion on the Texas
Power and Light rate book until June 6, ~977, so that the
Council would have time to review it. Alderman Gaulden
seconded the motion. The motion was carried by the following
vote,
Ayes, All members present voted aye
Noes, None
After the voting, the signatures of the Mayor and the City
Secretary, along with the City Seal, were duly placed on the
original and copies of the Ordinance granting to Texas Power
and Light Company, its successors and assigns, an electric
light, heat and-power franchise.
The Council then considered agenda item#$, approval of
the franchise contract with Lone Star Gas Company. Mrs. Doris
Westmoreland was. present to represent Lone Star Gas. Attorney
Davis stated that he had reviewed the contract submitted at
the last City Council meeting on May 2 and had found no pro-
blem with it. Mrs. Westmoreland noted that the City had the
same rate as when it was out of the Frisco jurisdiction.
Alderman Adams moved to pass and approve an Ordinance granting
to Lone Star Gas Company, a division of Enserch Corporation,
a Corporation, its successors and assigns, a franchise to
furnish and supply~gas to the general public in the Town of
The Colony, Denton County, Texas, for the transporting,
delivery, sale, and distribution of gas in, out of, and through
said municipality for all purposesl providing for the payment
of a fee or charge for the use of the streets, alleys, and
public waysl and providing that it shall be in lieu of other
fees and charges, excepting ad valorem taxest and also to pass
and approve an Ordinance fixing and determining the general
service rate to be charged for sales of natural gas to resi-
dential and commercial consumers within the town limits of The
Colony, Denton County, Texas, and providing for the manner in
which such rate may be changed, adjusted and amended. The mo
motion was seconded by Alderman Weaver. The motion was carried
by the following vote,
Ayes, Ail members present voted aye
Noess None
The signatures of the Mayor and the City Secretary, along with
the City Seal, were then duly placed on the original and
copies of the Ordinance granting the franchise to Lone Star Gas
Company. Alderman Shearer questioned Mrs. Westmoreland as to
when the contract became effective. Mrs. Westmoreland replied
that the contract went back to the time of the City's incor-
poration on January 15, 1977,
Attorney Davis asked Mayor Querrer0 to point out that
receipt of franchise fees was one. of the reasons and benefits
of incorporation.
The hour was approximately 8,15 P.M. and Alderman Dick
Weaver left the meeting at this time to attend to urgent
personal matters asMayor Guerrero had explained at the start
of the meeting.
Mayor Guerrero next took up agenda item #12, approval
of the purchase of a buildi~ for use as a City Hall. He began
the discussion by passing around pictures of t~o buildings
under consideration for the audience to see. Mayor Guerrero
ennumera~ed the specifications on both buildings. The first
building, manufactured by Morgan Portable Building Company,
00002
was 1,120 square feet and cost $16,500.00. The second building,
manufactured by Cawthon Industries, was 1,295 square'feet and
cost $2~,$76.00. Both buildings would require concrete pads,
skirting, and insulation, raising each price by $1,550.00
respectively. Mayor Guerrero mentioned that the Council had
looked at the Teen Club building but had decided it was not
big enough, had expensive utility service as provided by the
Denton Co-op, and had too~much work to be done on it to make
it suitable. He said that all the Council members had seen
and were pleased with the Cawthon building.
With reference to this matter, Mayor Guerrero brought up
the existence of a petition and rumors regarding the building
about which he was unhappy. First, he said it was untrue that
the Council was planning to buy a 1,300 square foot house
from Fox and Jacobs sincethe size was too limiting. Secondly,
he said he had heard a rumor that the Council was going to
borrow~$30,O00 for a piece of land and another $25,000 for a
housel again, he said this was untrue especially since it had
not yet been determined where the commercial sections in The
Colony would be. Thirdly, he dispelled a rumor that the Council
planned to raise taxes to accomplish their goalt he noted that
no member of the Council had ever brought up that subject.
The Mayor went on to say that although the City did not
have the money to purchase a building at this time, it had
received good bids from.the banks at prime rate. One bank
was willing to carry a note for the City for five ~o~seven years
with only an interest payment due this year. He pointed out
that Cawthon Industries was willing to give the City a discount
on the building under discussion since the building had
already been built for someone else but had not been sold
after all. The discount would amount to $?,825, the Mayor
said. He also mentioned that the building would not ultimately
cost the City $25,000 since the Municipal Utility District
was interested in sharing the space and paying rent for it.
..__ O0002G
The building would be more accessible for M.U.D. employees
and customers. The Mayor said the building could also be used
as a community center and as a central place from which to
conduct City business. He noted there was the possibility
of additional revenue for the City by operating a branch
office for Texas Power and Light Company and collecting pay-
ments for them for a fee. The Mayor said the building could
accomodate 50 to ?0 people during Council meetings. He noted
that the Council had been looking at buildings for a month
and a half in coming to their selection. Attorney Davis added
that the building would probably be in use almost every night
for variousmeetings, and the Mayor mentioned that the Sheriff's
department would be here more often if they had some space.
At this time, the Council heard questions and comments
from the audience. Bill Longo expressed the opinion that with
all the various liabilities and other, priorities facing the
City in the near future, he was afraid of the expenses'to come
and that the City might go into debt. The Mayor stated that.
there were no heavy expenses anticipated for the next few
months and that since Mr. Longo was not at the work sessions
conducted by the Council, he was unaware of the revenues coming
in from Texas Power and Light Company and those soon to come
from the M.U.D. Another member of the audience questioned if
the building would be too small for the number of people who
supposedly could work out of it. The Mayor responded by saying
that basically the City Secretary, the City Council, and the
M.U.D. would be the main occupants.
Alderman Gaulden made the analogy at this time of the
City being comparable to a child weighing fifty pounds at
birth~ the City was already too large for some things and
still growing rapidly. He asked for viable alternatives from
the public.
.Mayor Guerrero then asked Mr. Rick Chadwick, District
Manager of the M.U.D., for his opinion regarding the building.
000027
Mr. Chadwick replied that he felt the Cawthon building was
better for the price since it was larger and had a nicer roof.
He reiterated the fact that the M.U.D. offices were too small
at present, and that it would get worse when another secretary
and meter inspector were added to his staff. He noted that if
the City did not obtain a building with enough space for the
M.U.D. to share with them, that M;;~i~.D..would have to obtain
their own building.
Alderman Gaulden pointed out another benefit of the
modular construction of. the building. He stated that the plans
would be on file and for very little cost, additional square
footage could be added on to expand space as needed.
A member of the audience asked what the possibility
would be of the M.U.D. purchasing the building in five years
from now if the City should outgrow it in that time. Mayor
Guerrero noted that M.U.D. was limited and regulated by the
Texas Water Commission in its use of funds for such purposes.
Mr. Frank Graham, former District Manager of the M.U.D., com-
mented here that as the City's master plan was developed,
the City could move the building at a later date or sell it.
The Mayor added it could also be turned into a library building.
A member of the audience asked how much land would be
necessary. Mayor Guerrero stated that the Council was consi-
dering using the location where the Baptist Church trailer is
now on Colony Boulevard and Paige Road. He said the trailer
would be moved in the next two or three weeks and the water and
electric hookups would be available for the City buildim~ which
he expected to have by July. He mentioned that the Council was
still in limbo regarding a permanent location. He also pointed
out that the City was not buying this land but that it was
being made available to the City by Fox and Jacobs.
Another question from the audience asked about.how much
the building would cost per year for the life of the loan.
The Mayor said that depended on how long the. City carried the
interest, but in any event, was less than paying rent.
Someone from the audience brought up the subject of
equipping and furnishing the building once the City pur-
chased it. The Mayor stated that~he had made provisions in
the budget for t~o chairs, two desks, and two filing cabinets
for City use, and that M.U.D. would supply their own equip-
ment. Provisions were also made in the budget for electric and
water expenses. The major expenses would be the purchase of
fifty folding chairs for use during Council meetings. The
Mayor added he would request an hour at a Homeowners' Associa-
tion meeting to go into detail regarding how expenses were
being projected, when revenue was coming in, and how spending
was bei~ anticipated.
Visitors in the audience from Eastvale informed the
Council that Texas Salvage in Fort Worth had very reasonable
prices on office equipment and that the City needed to go
through Mr. Maxwell of Civil Defense in Denton.
A member of the audience asked if federal funds could be
obtained for purchasing the City Hall. The Mayor explained
that it takes one and a half to two years to hear from the
federal government on it. Alderman Gaulden agreed, stating
that L.E.A.A. funds took eighteen to twenty-four months to
receive, if at all, and that the City has filed for revenue
sharing.
At this time, a member of the audience, Sue Hubbard,
addressed the Council and said she wished to apologize person-
ally for the rumors that had started as a result of her peti-
tion. She went on to explain why she originated the petitionl
she wanted to find out if there was anyone else who felt as
she did regardim~ expending a large amount of money which
would necessitate taking out a loan for the City to purchase
a $25,000 building. She stated that she had a large response
to her petition and that within 48 hours, she had 93 signatures
of people who supported her views. Alderman Gaulden mentioned
that when he had heard of her petition, he contacted the Texas
000029
Municipal League to find out how many cities of 5,000 population
in Texas were without a city hall. He said he was told there
were none. The Mayor told Ms. Hubbard that he understood her
concern but felt that she had not presented the other side of
the story.
Mr. Bill Lon~o then asked how the Council could get.
around not having three written bids for the purchase of a
city building. The Mayor explained that there was a third
bid but it was much too high. Mr. Longo continued by asking
why the bids were not solicited in the newspapers since the
item in question cost over $3,000 and, therefore, could not be
voted on in a work session. The Mayor asked Attorney Davis'
advice on this matter. Alderman Adams stated that she would
like to see a complete financial package on any building
before deciding on its purchasel she suggested the Council
table the discussion for the time being and advertise for
bids. Attorney Davis advised that since there was great
public interest in the issue, there should be a public meetiD~
on it with a time limit on each person's comments of five
minutes and also each person would have to register beforehand
in order to speak. He also advised that the City advertise
for bids prior to the public meeting. He mentioned that the
City might have to Operate out of debt until money came in at
the end of the year. However, he noted, the City was fortunate
in that the bank would have all the riskwith the loan secured
by the buildiD~.
Alderman Adams moved to postpone this item for one week
to allow for a special meeting to consider bids, financial
packages, and public input. The motion was seconded by Alder-
man Shearer. The motion was carried by the following votes
Ayess All members present voted aye
Noess None
Mayor Guerrero noted he would advertise for bide in the
Lewisville newspapers.
000030
The Mayor concluded discussion on the matter by saying
that at present, he and each Alderman were operating out of
their own pockets and homes and were willing to continue for
another ~wo or three months, but not through the next year.
He pointed out that the City can now s~art picking up these
expenses and the bookkeeping will become easier.
Alderman Gaulden moved for a five-minute recess and the
motion was seconded by Alderman Shearer. The mo~ion carried
unanimously.
The meeting resumed after five minutes with discussion
on ~he special agenda item regarding City insurance. At the
request of Alderman Gaulden, Mr. Don Williams of 2he Williams
Rigg Insurance Agency in Fort Worth spoke to the Council and
audience regarding general liability insurance, hospitalization
insurance, inland/marine insurance, and bonding insurance. He
pointed out 2hat the cost factor would run between five and
nine per cent of the City's gross receipts for adequate
coverage. He requested that he have a person representing the
City whom he could contact for help in filling out the various
applications necessary. Mayor Guerrero asked Attorney Davis
to meet with Mr. Williams and to recommend a contact for this
purpose. Mr. Williams added that there would be sev.eral portions
of the insurance that would need to be bid on but that there
were only two underwriters available as far as city. officials'
liability coverage was concerned. Alderman Adams made the
motion to allow Attorney Davis to review the matter of insur-
ance coverage and to make a recommendation for a person to act
as a contact in insurance matters. Alderman Caulden seconded
the motion. The motion was carried by the following vote:
Ayes, Ail members present voted aye
Noes, None
Agenda item #6, appointnnent of a bank depository, was
next considered.. Mayor Cuerrero stated that, of the three
bids received, Lewisville National Bank gave a little better
000031
service and was a little more flexible overall. Alderman
Gaulden moved to adopt Lewisville National Bank as the bank
depository for The Colony. Alderman Shearer seconded the
motion. The motion was carried by the following vote,
Ayes: Ail members present voted aye
Noes: None
Mayor Guerrero mentioned that he would notify Lewisville
National Bank the next morning regarding the acceptance of
their bid. The Mayor asked Attorney Davis what should he done
with the check for $1,000 that had accompanied Lewisville
National Bank's bid. Attorney Davis recommended that it be
returned to the bank,
Agenda item #5, approval of the contract with the Tax
Assessor/Collector, was taken up by the Council. Mayor
Guerrero suggeeted that the Council adopt the contract for tax
assessor and collector as used by the M.U.D. and appoint
Mr. R. P. Manning. The only changes would be to insert the
City's name in addition to the M.U.D.'s name throughout the
contract. Also, the fee would be changed from $250 per
million dollars of assessed value to $300 per million dollars
of assessed value. The Mayor noted that the City would pay
half of Mr. Manning's fee and M.U.D. would pay the. other
half, but for the time being, M.U.D. would carry the City for
its share of the payment until such time as the City can pay
for itself. The Mayor said that Mr. Manning had already
approved the contract and that the City needed to approve the
contract now with the M.U.D. Attorney Davis pointed out that
the City was again lucky in being able to use the same tax
rolls as the M.U.D. and, therefore, cutting the price of this
contract to half of what it might have been. Additionally,
Mr. Manning would not be charging the City for any of his
supplies. Alderman Shearer moved that the City accept the
contract for tax assessor and collector with Mr.. R. P. Manning.
Alderman Gaulden seconded the motion. The motion was carried
by the following vote,
0'00032
Ayes, Ail members present voted aye
Noes, None
Agenda item #? regarding enactment of a Board of Equali-
zation was discussed. Mayor Guerrero stated that this Board
should be a joint one with the M.U.D., indicating that there.
would be a savings in using the same people to do the same
job for the City as for M.U.D. He listed Tim White, Mike
Carroll, and Gary Carroll to be appointed to the Board.
Attorney Davis said that there would need to be an ordinance
to enact the Board but one was not ready that evening.
Instead he advised that the Council approve the creation of a
Board and then set it up once the ordinance is written and
passed. Alderman Gaulden thus moved to create a Board of
Equalization. Alderman Shearer seconded the motion. The motion
was carried by the following vote,
Ayes, Ail members present voted aye
Noes, None
Agenda item #8, appoint~nent of residents to Board of
Equalization, was next considered. Alderman Adams moved to
appoint Tim White, Mike Carroll, and Gary Carroll to the Board
of Equalization. Alderman Shearer seconded the motion. The
motion was carried by the following vote,
Ayes, Ail members present voted aye
Noes, None
Agenda item #9, enactment of a Planning and Zoning Com-
mission, was presented by Alderman Adams. She paraphrased
from an ordinance establishing a Planning and Zoning Commission
for the benefit of the audience. Basically, there would be
five residents appointed by the City Council and three
ex-officio members consisting of the manager of the M.U.D., a
member of the Lewisville Independent School District, and the
Fire Chief. They would be invested with certain powers in
order to guide and aid in the organized development of the
community. Alderman Adams was asked if an employee of Fox and
000033
Jacobs would be a member. She replied that that would be a
conflict of interests but that Fox and Jacobs would be used
as consultants. Attorney Davis pointed out that these five
members of the Commission would operate on their own once
appointed. Alderman Adams added that the Council would need
to go into executive session to make the appoin~nents. She
then made a motion that the City adopt the ordinance establi-
shing a planning and zoning commission. The motion was
seconded by Alderman Gaulden. The motion was carried by the
following, vote,
Ayes, Ail members present voted aye
Noes,~, None
Mayor Guerrero moved on to agenda item #10, appointment
of members to Planning and Zoning Commission, by reiterating
the fact that the Council wouldhave to make their decision in
executive session which would take place at his house following
action on the remaining agenda items.
Agenda item #11, consideration of adoption of a Uniform
Fire Code, was discussed. Fire Chief Chuck Kimberling s~ated
that he had ordered 2he sixteen volumes of the Uniform Fire
Code but. tha~ they had not yet been received. Mayor Guerrero
mentioned that there exist health and fire hazards in The
Colony but that there is no way to enforce their removal
presently. Chief Kimberlim~ noted ~hat the fire marshalls of
Dallas and Denton recommend that The Colony adopt the Code as
does C.O.d., according to Alderman Adams. Chief Kimberling
added that adoption would also benefi2 the City be affecting
the insurance key rate. He offered his copy of National Fire
Codes condensed from the Uniform Fire Code for review by the
City Council. Mayor Guerrero s~ated that the matter would be
tabled for further review.
The Council proceeded to agenda item #13, Mayor Guerrero
said he would like to see the vacancy in the City Council
filled during executive session as provided for in Statute 989
O00034
R.C.S. He explained that the vacancy can be filled in t~o
ways, either by direct apP°in~m~nt by the Council or by special
election. Ail members of the Council concurred that the vacancy
would be filled by appoint~ent, according to the Mayor. He
then opened the floor to nominations and petitions. A member
of the audience asked whether the three Aldermen present would
make the appoint~ent or whether they would wait for Alderman
Weaver to be present. Mayor Guerrero replied that Alderman
Weaver had given him a sealed envelope prior to the meeting
which contained his nomination so there was no need to wait.
Attorney Davis s~ated that the Council could accept the
envelope's contents as if Alderman Weaver were there presenting
them. A member of the audience gave the Council a petition
requesting that Dave Dall be appointed to the Councill the
petition had 206 signatures. Someone else from the audience
asked that Bill Longo be considered and the Mayor responded by
saying that his name was already being considered. Alderman
Adams wanted to know if those who had signed the petition for
Mr. Dall were registered voters and was told that it was indi-
cated by each name if they were registered and had voted.
Mr. Longo then spoke and noted ~hat he had not submitted a
petition on his behalf since he wanted the Council to be able
to choose without pressure. Mayor Guerrero asked Mr. Gary
Shipman if he was interested in being considered and Mr. Shipman
said yes. Alderman Gaulden then moved that the meeting be
adjourned and the mo~ion was seconded by Alderman Shearer. The
motion was carried by the following vote,
Ayes, Ail members present voted aye
Noes, None