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HomeMy WebLinkAbout04/02/1979 City Council 000352 MINUTES OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS HELD OM APRIL 2, 1979 A Regular Meeting of the City Council of the City of The Colony, Denton County, Texas was called to order with the following members present: William J. Longo Mayor Clint Davis Councilman Linda A. Adams Councilman Gary Shipman Councilman and Councilman Sandra Shearer was in Austin for the P.U.C. Hearing on Extended Area Service for The Colony and absent from the meetingi however, a quorum was established. V MINUTES OF PREVIOUS COUNCIL b~ETINGS Councilman Adams moved that the minutes of the Special Session held on March 19 and the minutes of the Emergency Called Session held on March 23 be approved as read. Seconded by Councilman Davis, the motion was passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None 1. CONSIDERATION OF MUD BOND ISSUANCE Mayor Longo introduced Mr. Rick Chadwick, Director of the Municipal Utility District to present this agenda item to the City Council. Mr. Chadwick explained that the Texas Water Rights Conm]ission required a letter of approval from the City prior to their approval of a bond issuance for a utility dis- trict. To present the projects to be constructed, Mr. Chadwick introduced Terry Millican of Riewe and Wiscl~eyer, engineering consultant for the district. Mr. Millican told the Council that on October of 1978, these projects were presented to the Council for their review and study. The first five million dollar bond issuance provided primarily for the construction of water lines. This second bond issuance of 4.5 million dollars is primarily for the sewer projects included in this package. There followed a lengthy discussion regarding this bond issuance. Councilman Davis asked how many residential hookups M.U.D. would be able to provide after these projects u~at this would have been completed. Mr. Millican answered ~= give the district the capacity for 5,700 hookups and a third well would bring the capacity up to 8,000 connections. Coun- cilman Shipman asked if an adquate contingency fund had been allocated in 1976. Mr. Millican stated that not enough had been allocated but the district will not build the water treat- ment plant for which $4,000,000 had been allocated. Council- man Davis objected to this item being presented to the Council with no packet material provided. Mr. Millican explained that the time period is 'very critical and that the cost figures were not finalized until the last minute. Mr. Millican told Councilman Davis that they expected this last bond issue to go for 7¼%. At this time, Councilman Davis requested that action be delayed on this item until later on in the meeting to enable a citizen that had not arrived to make a statement on this matter. 000353 2. CONSIDERATION OF REQUEST TO USE TEMPORARY MOBILE STRUCTURE Dr. William Tinsley, Minister of the First Baptist Church told the Council that this mobile structure is only temporary while the permanent structure is under construction and the church is willing to take full responsibility for the structure. Mr. Bradburry, Director of Community Development reviewed the attor- ney's opinion which stated that a waiver is not applicable to a City Ordinance. However, after a brief discussion, the Council was in agreement that they should be flexible in their policy regarding temporary mobile structures. Chief Chuck Kimberling did request that the Council prohibit the use of a propane tank as this is direct violation of the City Fire Code. Councilman Shipman moved that the Council approve the temporary use of a mobile structure by the First Baptist Church of The Colony, contingent on the following conditions: 1. The structure shall be used for six months 2. The church shall in writing, accept full liability for this structure and waive the City's liability 3. Propane tanks will not be installed for the heating of the mobile building. Seconded by Councilman Adams, the motion was passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None 3. CONSIDERATION OF SECOND READING OR ORDINANCE AUTHORIZING CITY MANAGER TO ENTER INTO A CONTRACT WITH THOMPSON/PARKEY ARCHITECTS Janice Carroll, City Secretary, stated that the contracts had been reviewed by Robert Dillard, attorney for the City; and that Tom Hart, City Manager did request that this ordinance be passed so that the contracts can be signed prior to the Bond Election. Councilman Adams stated that she felt the provision for increased fee in the event only one project passes should be further clarified. Councilman Davis was concerned with Section 14.4.1 which allows for the reimburse- ment of employees and Section 14.6 which provides an interest rate which is not filled in. He explained that the state usury law is now 10% and could possibly be raised to 12%. He advo- cated that an 8% interest rate be inserted in this section. There followed a lengthy discussion regarding the various sections of the contract and the timetable for payment to the architect after the sale of the bonds. Mr. Bob Brown, a member of the audience, asked why Section 15.1 in the two contracts were different. At this time, Councilman Shipman moved that Section 14.6 of both contracts be amended to reflect an 8% ceiling on the rate of interest paid on funds. The mo- tion was seconded by Councilman Davis. Before calling for a vote, Mayor Longo recognized Lowell Tullis, a member of the audience, who asked for a clarification on Sections 15.1 in both contracts. The Council agreed to delay acting on this ordinance until further clarification is possible by Mr. Parkey of Thompson/Parkey and Tom Hart, City Manager. The Council agreed that a Special Session would be held on Friday, April 6, at 7:00 P.M. At this time, Councilman Davis requested that Mayor Longo return to agenda item #1. Mayor Longo did so and recognized Bob Brown, a member of the audience. Mr. Brown asked Mr. Millican numerous questions regarding the construction projects. Mr. Millican did clarify for Mr. Brown that these construction projects would not provide water or sewer to the City's industrial area. He did state that Fox and Jacobs did front end the construction costs of a 12'waterline in Section #22 and a 12' waterline running parallel with Paige Road. Mr. Millican did veryify that two mil- lion dollars of the 5 million dollar bond issuance was reimbursed to Fox and Jacobs at 6.7% interest. Mr. Brown asked if any in- dustrial projections had been prepared. Millican explained that by state law, they are not allowed to project. After further 000354 discussion, Councilman Adams moved to Rpprove the issuance of bonds in the amount of 4.5 million dollars by the Colony Municipal Utility District #1. Councilman Shipman seconded the motion and it was passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None 4. CONSIDERATION OF ORDINANCE CONTINUING THE CITY UTILITY SALES TAX Councilman Shipman read the ordinance in full: ORDINANCE NO. AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, CONTINUING THE IMPOSITION OF THE ONE PERCENT (1%) CITY SALES TAX ON RES- IDENTIAL USE OF GAS AND ELECTRICITY; PROVIDING FOR THE FUR- NISHING OF A COPY OF THE ORDINANCE TO THE CO~TROLLER OF PUBLIC ACCOUNTS BY CERTIFIED MAIL; AND PROVIDING AN EFFECTIVE DATE. ~EREAS, the 65th Legislature of the State of Texas has enacted legislation providing a local option on the one percent (1%) city sales tax on the residential use of gas and electricity, and WHEREAS, the City Council has determined that it is in the best interests of the City to continue such one percent (1%) city sales tax, NOW, THEREFOP~, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. The City Council of the City of The Colony hereby continues the imposition of the one percent (1%) city sales tax on the residential use of gas and electricity within the corporate limits of the City. SECTION 2. The City Secretary is hereby directed to fur- nish a certified copy of this ordinance to the Comptroller of Public Accounts of the State of Texas by certified mail no later than May 1, 1979. SECTION 3. This ordinance shall take effect immediately from and after its passage as the law in such cases provides. READ AND PASSED ON FIRST READING ON THE DAY OF , 1979. READ AND PASSED ON SECOND READING ON THE DAY OF , 1979. Councilman Shipman moved to approve the ordinance and Councilman Adams seconded the motion. Before voting, Janice Carroll, City Secretary briefed the Council regarding the inclusion of Section requiring that this tax be put before the people as a proposition at April, 1980 Municipal Election. Ms. Carroll stated that the state statutes do not provide for this, the Home Rule Charter excludes ordinances levying taxes from the initiative and re- ferendum process, the attorney is of the opinion that you can- not obligate a future Council on a matter such as this. Ms. Carroll explained that Mr. Dillard recommended that this re- quest be a matter of the minutes; but, that it could be in- cluded in the ordinance if it is the Council's wish. Council- man Davis stated that he would like this included in the or- dinance. The Council agreed and Councilman Shipman amended his motion to reflect this change. Seconded by Councilman Adams, the motion was passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None 000355 5. CONSIDERATION OF ORDINANCE ADOPTING MECHANICAL, ELECTRICAL AND PLUMBING CODES Mayor Longo recommended that this ordinance be tabled as it was not posted in compliance with Charter requirements. Council- man Shipman moved that this agenda item be tabled until all Charter requirements for the passage of an ordinance can be complied with. Seconded by Councilman.Davis, the motion was passed by the following roll call vote: Ayes: Ail members present voted aye 'Noes: None 6. CONSIDERATION OF OTHER MATTERS THAT MAY COME BEFORE THE COUNCIL There were no other matters to be brought before the Council. X CITIZEN INPUT There being no further action to be taken by the Council, Mayor Longo asked for Citizen Input. After a brief discussion, of election day procedures, Councilman Davis moved that the meeting be adjourned. Seconded by Councilman Shipman, the motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None Mayor Longo adjourned the meeting at 9:35 P.M. William ~ L-ongd~ Mayor J ~ J~.~ic_e Car'~oll ty Secretary.