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HomeMy WebLinkAbout09/21/1981 City Council 000962 MINUTES OF THE CITY COUNCIL OF THE CITY OF THE COLONY HELD ON SEPTEMBER 21, 1981 A REGULAR SESSION of the City Council of the City of The Colony, Texas, was called to order at 7:30 p.m. with the following members present: Richard Turner Mayor Scott North Councilman Norman Adeler Councilman Charles Dodds Councilman and with no members absent; thus, a quorum was established. 1. BRIEFING SESSION As this meeting was conducted in the Camey Elementary School gymnasium, Mr. Savage briefed the Council on the agenda items pointing out particular corrections that needed to be made. Councilman North requested that the status report, Item 15, be moved up in the agenda prior to the closed door session. 2. APPROVAL OF MINUTES Councilman Dodds moved that the minutes of the regular Council meeting held on September 4 be approved as presented. Seconded by Councilman North, the motion was passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None 3. RECEIVE RESOLUTION PASSED BY THE COLONY MUNICIPAL UTILITY DISTRICT BOARD ON SEPTEMBER 17, 1981, REGARDING THE PROPOSED COMPREHENSIVE ZONING ORDINANCE AMENDMENTS Mayor Turner recognized Tom Forrest, Director of the Municipal Utility District, who presented the resolution on behalf of his board. He did request that the Council accept this resolution as input from the board and not interference. He stated that the board is aware that zoning is the responsibility of the City Council, but they did feel that it was important to advise the Council that this decision to increase the minimum square footage for single family homes could bring drastic results to decisions previously made by the board. At this time, Mr. Forrest read the following resolution: RESOLUTION OF THE BOARD OF DIRECTORS OF THE COLONY MUNICIPAL UTILITY DISTRICT NO. 1 OF DENTON COUNTY, TEXAS WHEREAS, The Board of Directors of The Colony Municipal Utility District supports the planned growth of The Colony and sees this growth as -essential to attracting industrial, commercial and retail endeavors -essential to holding the cost of all services at affordable levels -absolutely essential to maintaining property values in The Colony; and WHEREAS, The Board feels that efforts to restrict growth will -necessitate increased taxes and or water and sewer rates to recover tap connection fees and the loss of potential taxes and service revenues -require either a substantial increase in the estimated cost to the individual receiving Dallas water or delay this project indefinitely, and WHEREAS, any action taken to restrict growth by limiting the square footage on new houses is -1- 000963 -blatantly discriminatory and prejudicial in claiming smaller houses create "low rent districts" or that an individual's income determines his value to the community, -incompatible with concerns of the community in encouraging commercial growth in that it places unnecessary and unjustifiable restrictions on the community's only industry, -contrary to the new attitude in America that insists government at every level put an end to needless and artificial regulations that bind this nation's economy; NOW THEREFORE BE IT RESOLVED by the Board of Directors of The Colony Municipal Utility District No. 1 of Denton County, Texas That every effort be made to maintain the current level of growth through supporting and adhering to the City's current zoning regulations and opposing any change in policy that will unjustly affect growth and increase the cost of services in The Colony. Passed and Approved this the 17 day of September, 1981. Signed-- Harry B. Hunsicker, President Sandra Shearer, Secretary Gary A. Green, Vice President Robert C. Hauck William Longo Mr. Forrest then presented information to the Council to illustrate the potential effects this amendment in zoning could have on future bond revenues. He advised the Council that the first chart was a performance schedule of projected development based on 650 additional homes built per year valued at $43,000 each. This information was provided by Fox & Jacobs and used to establish the total residential evaluation through 1986. Based on this information, the second chart showed projected net revenue, the tax rate required and coverage of debt service requirements on the presently outstanding bonds and proposed new issues through the year 1987/88. This chart showed no increase in the present tax rate of 65¢ per $100 valuation. The third sheet was a schedule of projected development based on 300 connections rather than 650, Mr. Forrest explained. This figure of 300 also came from Fox & Jacobs. This decrease in residential homes was based on the increase in square footage requirements in single family districts, and projects through 1992. Based on this limited projection of growth, the fourth chart shows a tax rate of 65¢ also but must be carried through the year 1992. However, the cost per connection per month would jump in 1984/ 1985 to $18.71, as compared to the original projection of $4.25 based upon 650 connections per year. Councilman Adeler stated that the prime interest rate will also affect these projections. Mr. Forrest agreed but stated that, in light of these economic conditions, this was not a good time to put restrictions on growth. Councilman Adeler stated that the Council only seeks an orderly growth, not to restrict it. At this time, Bob Brown, a member of the audience, asked if he could question Mr. Forrest regarding some of these projections. Mayor Turner stated that there would be no questions from the floor at this time. He added that the Municipal Utility District did meet every third Thursday. Councilman North stated that he would like to read the following prepared statement regarding this resolution passed by the Municipal Utility District and presented to the Council: September 21, 1981--Mayor Richard Turner: "As the Mayor Pro Tem I assume this falls under the realm of my job. No matter the outcome of tonights' vote, I want to address the issue of the elected officials in The Colony and their responsibility. It is our job as City Councilmen to serve the citizens as best we can. Generally that comes from the people who elected us. If we receive the information and feel it is what the people want, then we should as representatives of the people vote as they desire. Now that I have expressed what our position is I wish to address The Daily Leader of Friday, September 18, 1981, and the statements the Municipal Utility District Directors said. Mr. Green said, 'I can't believe two peoples' vote will determine the future of this city, I can't believe they didn't postpone the issue until a full council is seated.' To you, Mr. Green, I say, even though we are a council of three we have been addressed with an issue and we shall address it! We are elected to run the business of the city and until we no longer have a quorum, we shall continue to run this city! Simply -2- 000964 because we are not a full council does not and shall not mean we as the council will duck issues until a later time. "To Mr. Longo and Mr. Hunsicker, I would wish to express a concern about statements they made like, 'The council didn't get the message from our last meeting, I hope they get it now!' Gentlemen as private citizens in The Colony I respect your viewpoints, however as M.U.D. directors and speaking as M.U.D. directors, I must say this. It is my understanding that M.U.D. directors govern the water district and not the city. I would hope that in the future they would do this and not try to run the city's business. Mr. Hunsicker please understand that this council got the message and as one councilman I resent the message the second time coming to us in the form of a strong resolution and lambasting council in the press! "It is not my desire to draw battle lines with the Utility District. We need to work together. Last month the council was aware of the sugges- tions from M.U.D. and we appreciate their concern, but simply because we may or may not agree with them there is no reason to continue the course they pursued! "The ultimate goal of the M.U.D. and council is to serve the citizens of The Colony. We need to work together and not undercut each other." Scott North, Council Member 4. CONSIDERATION OF PASSAGE OF ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE TO PROVIDE FOR A LIMIT OF 1100 SQUARE FEET FOR SINGLE FAMILY HOUSING AND TO REQUIRE ATTACHED ENCLOSED GARAGES FOR SINGLE FAMILY HOUSING Mr. Savage first advised the Council that enclosed in their packet was a letter from Ron Walden, Director of Marketing for Fox & Jacobs, requesting that the city allow the issuance of the remaining building permits in Colony Section 27 for houses that meet the existing zoning ordinance. In this letter, Mr. Walden assures the Council that Fox & Jacobs will work with Colony officials to determine what is right for future growth; that they do have a need based on market demand and commitment to existing customers to sell and build a cottage Today home in Section 27; and that they have agreed that these 153 houses will have a minimum size of 1000 square feet of living area each and that they will have a combined minimum average of 1100 square feet. Based on this request, Mr. Savage asked that the Council consider adding to the existing ordinance a clause grandfathering the 153 lots in Section 27. Mr. Savage added that the economy would limit the growth of The Colony for the next three to six months. After a brief di~Scussion, Councilman Dodds moved to pass the ordinance with the following amendments: 1. That the square footage of a garage be increased from 200 to 220 2. That the minimum door opening width of 10 feet be amended to be the minimum width of the garage to be 10 feet 3. That the grandfather clause allowing permits to be issued in Section 27 for cottages under 1000 square feet be included This motion was seconded by Councilman Adeler. However, prior to voting Mayor Turner asked if there was any discussion from the floor. At this time, a five minute recess was called to allow those wishing to speak on this issue to sign in. Upon reconvening, Mayor Turner recognized Bill Baxter who stated that he felt the Council should adopt the Planning and Zoning recommendation as an interim solution. Mr. Mark Rush, President of The Colony Bank, was recognized. He stated that this ordinance had become an emotional issue based on fears about the quality of people that would move into The Colony. Based on reason, he stated that the city did need to become balanced with commercial growth, industrial growth and possibly a city school district and to continue growth the city must -3- 000965 allow builders to build homes that will sell in today's economy. He added it is a great gamble at this time to try to become "exclusive". Mr. Jim Green stated that this issue originally began when people stated they were against a 900 square foot home and a stucco home. Now, these issues have been corrected, and he personally is concerned not about his equity but about who will buy his home if taxes and water cost go up and building does not continue in The Colony. Helen Gray stated that it is the appearance of the home in the community, not the size of the home, that attracts people to The Colony and if the city and individual homeowners kept the appearance in good order, the size of the home would not make a great deal of difference. Stephen Hines stated that emotions make it hard to reach a reasonable decision but the Council must consider if we do not work with Fox & Jacobs at this time, how will we attract more commercial and industrial developers to the city. Bill Vackar, speaking as a homeowner in The Colony, stated that he felt they all agreed that a Fox & Jacobs home is a good investment, but he also felt that to get into the housing market, there must be an entry-level home, and the Today product line satisfies this need. Kaci Cunningham stated that she chose her home in The Colony because of its small rural atmosphere, and she clarified that she was opposed to cheap homes, not entry-level homes. She added that she did not want to build the type of homes that would encourage investors in the community. Kermit Pittman told the Council that his first home was a Flair and advised the Council that there are people that can purchase a Flair home initially. He stated that he was also concerned with the quality of homes to be built in The Colony. He added that he was also proud of The Colony and wanted it to grow in the most logical manner possible. He also questioned MUD's figures on the growth projections and advised that this was not an emotional issue; the Council and Planning and Zoning Commission had been studying this for eight weeks. Bob Lux was recognized and stated that he had attended the Planning and Zoning work session concerning the growth of The Colony. He stated that The Colony, by its land area, is limited to 8,000 homes for a tax base. He urged the Council not to downgrade the quality of homes in The Colony for a few months of growth. He felt the interest rate should drop to 14% in the near future, and this will enable people to qualify at a lower income. He then urged that the city not be downgraded ~-. at the expense of a future tax base. He emphasized that the limited land in The Colony must be utilized properly. Jerry Shore stated that the citizens are over-estimating the effect of this ordinance and that the Planning and Zoning Commission is working on a future solution to this problem. He emphasized that planning is the key to our growth. Larry Sample stated that he resented the statement that the petitioners are against low income. The people wanted to sign it. There was concern about the quality of the homes to be built. He added that growth is not always good. The economy is in a cycle and the citizens stated that they do not want Fox & Jacobs to lower their standards during this econo- mic low. Charles Hammons identified himself as author of the petition and advised the Council that those involved with the petition have attempted to conduct themselves professionally but that some people involved in this issue do not have professionalism in mind. However, he asked the citizens that were attending tonight's meeting why they were not involved weeks ago. He again emphasized that the Concerned Colony Citizens wanted a process of rational planning to begin. He then asked that the Council adopt the ordinance raising the minimum square footage in single family homes to 1100 with the addition of a grandfather clause adding allowing the building of the cottages on 153 lots in Section 27. Michael Leddy prefaced his comment by saying that this was his personal opinion, and he was not representing a group. Only 100 square feet is involved in this change, and this repre- sents a small percentage increase for Fox & Jacobs. He did feel that the figures presented by the utility district were used as scare tactics. Robert F. Brown was the final speaker recognized by the Mayor. He agreed that this is an emotional issue and that he had also attended the Planning and Zoning work session and talked with the members regarding The Colony's policy of unrestricted growth. He agreed with the Zoning Commission members that the master plan must be redrawn. He prefaced his comments also by stating that he has purchased a Fox & Jacobs home and still feels that it is a good investment for any homeowner, however, -4- 00O966 he was concerned with unrestricted growth in The Colony and did question also the projections presented by Mr. Forrest, Director of the Municipal Utility District. He stated that based on 4,750 residential hookups, the utility district did plan to make in 1982 a net profit of $200,000 and yet no money has been spent or planned to be spent by the Municipal Utility District for industrial growth needs. He emphasized to the Council that if the average net worth of a home in The Colony is based at $40,000, then 600 homes built in one year adds only $26,000,000 to the tax base. This represents only an additional $39,000 tax revenue to the Municipal Utility District, and $1,790,000 is the payment due yearly on the bond debt service. He also added that the bond debt service requirement can be reduced if the bonds recently voted in for Dallas water are postponed until 1983. If this issuance is delayed, the fact that homes will only be built at a rate of 300 per year will not force taxes to go up. He also added that well water is figured at a cost of 13¢ per 1,000 gallons, while treated Dallas water will be at a cost of 24¢ per 1,000 gallons. This general slowdown in growth in The Colony will also give the state, county and city the opportunity to catch up in road construction to meet the needs of The Colony citizens. Mr. Brown added that he agreed with Mr. Rush that we should contrOl our own destiny, and we should require that~Fqx & Jacobs relax their building rate. There being no further comments on this agenda item, Mayor Turner called for a vote on the motion on the floor. The motion was carried by the following roll call vote: Ayes: Ail members present voted aye Noes: None Councilman North stated publicly that this has, in fact, been the hardest decision that he has made as a Council member, and he hopes that the effect of this decision will be a positive one regarding The Colony's future growth. 5. RECEIVE CERTIFICATION FROM CITY SECRETARY FOR INITIATIVE PETITION REGARDING UNIVERSAL HEALTH SERVICES, INC. AND DISCUSSION OF COUNCIL OPTIONS Janice Carroll, City Secretary, presented to the Council the following certification letter: Mayor, Members of the City Council, The Colony, Texas--Gentlemen: "Pursuant to Chapter 8 of The Colony City Charter, initiative petitions were filed with me on August 24, 1981, requesting passage of an ordinance supporting Universal Health Services, Inc. On September 3, 1981, I advised the Council and Mr. Nick Oprea that the petitions were insufficient. To amend the petitions, Mr. Oprea had until September 14 to attach a correct affidavit to each page and to secure an additional 96 signatures of qualified voters. "The amended petition was filed by Mr. Oprea on September 14. I have reviewed the additional signatures and certified that 108 were qualified voters in the city. Also, the affidavits were in the correct format pursuant to the requirements of Section 8.03 of the Charter. "I hereby certify the contents of this letter in accordance with The Colony City Charter." Sincerely, Janice Carroll, City Secretary (SEAL) copy: Mr. Nick Oprea She then advised the Council that according to the Home Rule Charter, they could pass the ordinance without any amendments within 30 days or put the ordinance by itself to a vote of the people at the next regular election date. A third option is that they could add a second ordinance on the ballot and allow the citizens to vote on both propositions. Councilman North moved to accept the initiative petition as legal and binding as certified by the city secretary. This motion was seconded by Councilman -5- 0009 ? Adeler. At this time, Gary Renzi was recognized and asked if the Council did intend to discuss hospital needs of The Colony tonight. The Council advised him that it was not open for discussion at this time and probably would not be until after the election Noqember 3. Charles Farwell was also recognized and advised the Council that he was in hospital management and that he would not support a full profit hospital in The Colony, and he added that it is no more efficient than a non-profit hospital organization. Michael Leddy added that he personally felt that the City Council does not have enough information to make a commitment at this time. There being no more coranents for or against this motion, Mayor Turner called for a vote on the motion on the floor. The motion was carried by the following roll call vote: Ayes: Ail members present voted aye Noes: None 6. CONSIDERATION OF ORDER CALLING SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 1981 Mr. Savage took this opportunity to present to the City Council a letter written to former Councilman Bill Longo from St. Paul Hospital advising Mr. Longo that they were still interested in The Colony as a future hospital site. Mr. Savage stated that he felt this was certainly something that the Council should be aware of prior to discussing an alternate pro- position. Councilman North advised the Council that he had visited with Presbyterian Hospital, and that they currently were looking at a site outside of The Colony but were also very interested in serving The Colony. At this time, Mayor Turner read aloud the following order: SPECIAL ELECTION, The Colony, Texas, November 3, 1981 ELECTION ORDER BE IT REMEMBERED that on the 21 day of September, 1981, at a meeting of the City Council of the City of The Colony, Texas, a quorum being present, the meeting was called to order and the Council issued the following order: IT IS ORDERED that an election be held in the City of The Colony, Texas, on the 3rd day of November, 1981, the same being the first Tuesday after the first Monday of said month for the following purposes: "To elect a Council Member for Place No. 2 to fill the unexpired term ending in April, 1983." "To elect a Council Member for Place No. 4 to fill the unexpired term ending in April, 1982." "To submit to the voters an ordinance initiated by petition under the provisions of Chapter 8 of the Home Rule Charter of the City of The Colony and an alternative ordinance on the same subject proposed by the Council, both ordinances relating to the development and 6onstruction of a full service hospital in the City." The candidate for each office receiving a majority of all votes cast for all candidates for such office shall be elected for the unexpired term described above. In the event any candidate for any one of said offices fails to receive a majority of all votes cast for all of the candidates for such office, a runoff election shall be called as provided for by the Charter of the City. ---~ The initiated ordinance and the alternative ordinance proposed by the Council shall be submitted together and identified as such, and the voters shall vote for one only, and the ordinance submitted and receiving an affirmative majority of the votes cast, shall thereupon be effective as an ordinance of the City. The initiated ordinance is attached hereto as -6- 000968 Exhibit "A". The alternative ordinance proposed by the City Council is attached hereto as Exhibit "B". The Polling Place for said election shall be the Camey Elementary School. The Polls shall be open from 7:00 o'clock a.m. to 7:00 o'clock p.m. None but legally qualified voters of the City shall be entitled to vote at said election. Notice of said election shall be posted in three public places within the limits of the City at least 30 days prior to the election day. A return of such posting shall be made by Affidavit of the City Secretary. Sue DeLuca is hereby appointed Presiding Election Judge and Diane Kruzich is hereby appointed Alternate Presiding Election Judge, and the Presiding Election Judge is hereby authorized to appoint 4 Election Clerks for the proper conduct of the election. All judges and clerks shall be qualified voters of the City. After holding said election, the Election Judge shall promptly make return to the City Secretary and to the Mayor of the results thereof, and the Secretary shall thereafter present such returns to the City Council for the canvassing of said election. The election judges and clerks shall be paid the sum of $4.00 per hour, and the Presiding Election Judge shall be paid an additional sum of $25.00 for services in delivering the returns of the election. Absentee voting shall be held at the regular office of the City Secretary, and the place of absentee voting shall remain open for at least eight hours on each day of absentee voting which is not a Saturday, Sunday or official State holiday, beginning on the 14th day of October, 1981, and continuing through October 30, 1981, said hours being between 9:00 o'clock A.M. and 5:00 o'clock P.M. ORDERED this 21 day of September, 1981. RICHARD TURNER (S), bIAYOR, City of The Colony, Texas ATTEST: (S) JANICE CARROLL, CITY SECRETARY, City of The Colony, Texas EXHIBIT "A" ORDINANCE NO. AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AWARDING THE SUPPORT OF THE CITY OF THE COLONY, IN THE FORM OF A LEGAL CONTRACT, TO UNIVERSAL HEALTH SERVICES, INC., FOR THEIR PROPOSAL TO BUILD A FULL SERVICE HOSPITAL IN THE COLONY, TEXAS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That an ordinance be passed and approved supporting Universal Health Services, Inc., in the form of a legal contract between the City of The Colony and said corporation, to build and operate a full service hospital in The Colony, Texas. SECTION 2. This ordinance shall take effect immediately from and after its passage as the law and charter in such cases provide. PASSED AND APPROVED on the day of , 1981. APPROVED: b~YOR ATTEST: CITY SECRETARY APPROVED AS TO LEGALITY OF THE FORM: CITY ATTORNEY -7- O0O969 EXHIBIT "B" ORDINANCE NO. AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO SEEK PROPOSALS FOR THE DEVELOPMENT AND CONSTRUCTION OF A FULL SERVICE HOSPITAL IN THE CITY OF THE COLONY, TEXAS. WHEREAS, the City Council has determined that there is a necessity in the City for an full service hospital and related services, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the City Manager of the City of The Colony is directed to prepare a request for proposals from qualified hospitals and other entities for the development and construction of a full service hospital and related services within the City limits of the City of The Colony. SECTION 2. Upon preparation and approval of the request for proposals, the City Manager will be directed to publish notice of a public hearing to consider such proposals, and after such public hearing, the City Council will determine which hospital or other entity will, in its opinion, provide the best service, and what terms will be in the best interests of the citizens of the City. SECTION 3. This ordinance shall take effect immediately from and after its passage as the law in such cases provides. DULY PASSED by the City Council of the City of The Colony, Texas, on the day of , 1981. APPROVED: MAYOR ATTEST: CITY SECRETARY APPROVED AS TO LEGALITY OF THE FORM: CITY ATTORNEY Councilman Dodds then stated that although he saw no problem with Universal Health Services being located within the city, he did feel that it would be in the best interests of the city to pass t~e election order including Exhibits "A" and "B" which is the alternate referendum ordinance, and he made a motion to this effect. This motion was seconded by Councilman North, but he did ask that the voting be clarified. It was agreed that the first part of the ballot would be regarding City Council replacements for Places 2 and 4. The second item on the ballot would be the ordinance with no amendments as presented in the initiative petition and thirdly, an alternate ordinance authorizing the city manager to seek proposals from all hospitals interested. Mr. Savage advised the Council that the attorney was now working on the proper format for the ballot so that these two propositions would not be confusing to the voters. At this time, Councilman Dodds stated that he would like to amend his motion in that he would pass the order including the alternate ordinance only if the voting could be clarified. After discussion of timing on calling the election and ballot format, Councilman Dodds then amended his motion to eliminate the alternate in its entirety and let the Universal Health Systems ordinance stand on its own merit. However, after more discussion, the Council did concur that both ordinances should be presented to the citizens for their consideration. Mr. Bob Brown was recognized and explained his feeling that if the citizens did not have an alternative to choose from, they would feel that it was an all or nothing situation. Therefore, Councilman Dodds then stated that he would like to return to his original motion and pass the election order as presented with both propositions included on the ballot. Councilman North again seconded this original motion. After a brief discussion, the motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None -8- 00O970 7. CONSIDERATION OF LONE STAR GAS RATE INCREASE REQUEST AND PASSAGE OF SUSPENSION ORDINANCE ON SAME Mr. Savage advised the Council that the last rate increase granted to Lone Star Gas was in July of 1979 and that on September 3, 1981, the company did file a Notice of Rate Increase with Janice Carroll, City Secretary. This increase is proposed to go into effect on October 9, 1981, and represents the following increases: RESIDENTIAL CUSTOMERS: Present Rate--Winter $29.32, Summer $27.28 Proposed Rate--Winter $34.76, Summer $32.76 Increase--Winter $5.44, Summer $5.48 COMMERCIAL CUSTOMERS: Present Rate--Winter $58.64, Summer $54.56 Proposed Rate--Winter $68.02, Summer $64.02 Increase--Winter $9.38, Summer $9.46 Mr. Savage advised the Council that the attorney had reviewed this rate increase request and prepared for the Council, if they so desired, an ordinance suspending these rates for 120 days. If this ordinance is passed, the city will have to have a public hearing on the proposed rate within 30 days after October 9. Lone Star Gas may put its proposed rates into effect under bond 90 days after October 9 if the Council has not acted by that time. With no discussion, Councilman Dodds moved that this ordinance be passed. Seconded by Councilman North, the motion was passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None 8. RECEIVE REQUEST FROM COLONIAL BAPTIST CHURCH REGARDING TIME EXTENSION ON A PORTABLE BUILDING USE Mr. Savage reviewed this item for the Council. He advised them that at an earlier date, the Council had given Colonial Baptist Church permission to use a portable building for a six-month period provided that this building was brought into compliance with city codes. In a memorandum from Mr. I. R. Bradburry, he noted on September 11, 1981, that these code requirements had not been met and that there were no exit lights, no bathroom facilities, no porch landing for rear exit, no electrical inspec- tion, no fire extinguisher, an unsafe walk, and there have been no inspec- tions called to date. Since September 11, Rev. Wallace has corrected all code violations with the exception of a plumbing problem. Mr. Bradburry advised the Council that Rev. Wallace did plan on having the plumbing corrected by Saturday or Sunday. Mayor Turner asked if the last sentence of his memorandum which states that this structure is not in the best condition for this type of occupancy could be amended after all corrections had been made. Mr. Bradburry advised him that that statement could not be amended even at that time. Rev. Wallace then gave a status update to the Council regarding the code violations and the repairs of such. He told the Council that the church would like to request an additional six-months' use of this building to, first, recoup some of their investment by use of the building and, secondly, to give them additional time to make plans for building a second permanent structure. Councilman North stated that he was concerned with long-range building plans and when they would begin. Rev. Wallace stated that he felt they could start a building program in January of 1982. Mayor Turner noted that he also was disturbed that these code violations have not been corrected at an earlier date. However, after a further discussion, Councilman North moved that Colonial Baptist Church be granted an additional three-month extension and, at that time, must come back before the Council with proposed building plans. Councilman Dodds clarified that this is only a progress report to the Council at this time and also seconded the motion. Mayor Turner then called for a vote on the motion on the floor. The motion was passed by the following roll call vote: Ayes: Ail members present voted aye Noes: None -9- 000971 9. CONSIDERATION OF AUTHORIZATION ORDINANCE TO ENTER INTO A CONTRACT FOR CITY HEALTH AND LIFE INSURANCE Mr. Savage advised the Council that the city is presently paying $35.78 for employee coverage and employees are paying $62.52 for dependents. The renewal rates are $42.17 for employees and $75.66 for dependents. This represents a 17.9% and 21% increase respectively. In the 1981/82 budget, $50.00 per employee was estimated in the budgeting process as this premium increase was expected. However, he did advise the Council that he is currently working with Tom Forrest, Director of the Municipal Utility District, regarding a joint insurance policy that could perhaps lower these rates. However, at this time it is necessary that the Council put into effect the increased premiums and that they be effective September 15, 1981. At this time, Mayor Turner read aloud the following captioned ordinance: AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A GROUP INSURANCE CONTRACT WITH THE AETNA LIFE AND CASUALTY COMPANY FOR A POLICY OF GROUP ACCIDENT AND HEALTH INSURANCE FOR EMPLOYEES; AUTHORIZING THE CITY MANAGER TO EXPEND FROM THE GENERAL FUNDS OF THE CITY SUCH AMOUNTS AS ARE NECESSARY TO PAY THE PREMIUMS THEREON BEGINN'ING SEPTEM- BER 15, 1981; PROVIDING A SEVERABILITY CLAUSE AND PROVIDING AN EFFECTIVE DATE. Councilman North moved to approve this ordinance authorizing the city manager to execute a contract for group insurance for city employees. Seconded by Councilman Adeler, the motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None 10. CONSIDERATION OF METHOD OF AWARDING SANITATION CONTRACT Mr. Savage advised the Council that they did have three options that they could consider. The Council could negotiate a contract with the present provider, Carroll Trash Service; the Council can negotiate a contract with anOther provider; or the Council can take formal sealed bids for this service. Mr. Savage stated that in his assessment of the present operation, he did find that good service is presently provided, however, at least nine other providers have also expressed some degree of interest in serving The Colony and, therefore, he did recommend that the Council award the contract on the basis of competitive bidding. He explained that in the bidding process "low ball" bidding can be avoided if an indexed escalation clause is provided in the contract. This will prevent a large contractor from buying the business with the hope of realizing later profits by negotiating future rate increases. He also told the Council that he had held a pre- bid conference with all companies that were interested in a contract with the city. Mayor Turner asked how many firms were involved in these conferences. Mr. Savage answered that seven firms attended this pre-bid conference with eleven representatives and letters were sent to ten firms. Based on these figures, he estimated that five bids would be received by the city if the Council chose this option. At this time, Councilman North stated that he did not feel that the first two options were proper procedures for the city in this matter and, therefore, moved to direct the city manager to go out for bids for sanitation service. This motion was seconded by Councilman Dodds. At this time, Mayor Turner asked for discussion from the floor. Michael Leddy said that he did disagree with this process as the quality of service provided by Mr. Carroll was good and he did hate to see the city put a small company out of business. Mr. Carroll was recognized. He advised the Council that 98% of the citizens that responded to his postcard survey did not want the city to go out for bids. He advised the Council that he has not had an accident claim in the past five years of service to the city. Councilman North stated that 800 returned postcards represented only 20% of the citizens in The Colony and that they must decide what is best for the entire city. Cheryl Long stated that this 20% return was very similar to all voting turnout in the city and that she also was satisfied -10- 000972 with the service provided by Mr. Carroll. John Twomey asked that it be clarified if the company that is awarded the contract could be sold after this bid process. Mr. Savage advised that it would depend on the contract. At this time, Mayor Turner called for a vote on the motion on the floor. The motion passed by the following roll call vote: Ayes: All members present voted aye Noes: None 11. CONSIDERATION OF RESOLUTION OF INTENT FOR A JUVENILE OFFICER GRANT Mayor Turner read aloud the following resolution: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING THE SUBMISSION OF A GRANT APPLICATION TO THE TEXAS CRIMINAL JUSTICE DIVISION FOR THE EXPANSION OF THE JUVENILE DIVISION OF THE COLONY POLICE DEPARTMENT AND PLEDGING PAYMENT OF THE LOCAL SHARE OF THE COST OF THIS JUVENILE DIVISION. WHEREAS, the City of The Colony recognizes a need for seeking improvement to its Police Department by expanding the Juvenile Division; and WHEREAS, the Texas Criminal Justice Division has indicated that funds may be availabel to the City of The Colony Police Department for financing the expansion of the Juvenile Divzsion; and WHEREAS, the City of The Colony pledges its proportionate share of the cost of this project, as required, if a grant is obtained; and WHEREAS, the City of The Colony anticipates assuming total cost of this project at the end of Criminal Justice funding; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the City Manager is hereby authorized and directed to submit a grant application to the proper authorities for assistance in the cost of the expansion of the Juvenile Division of The Colony Police Department. Section 2. That the City of The Colony anticipates assuming total cost of the unit, as required, if a grant is obtained. Section 3. That the City of The Colony anticipates assuming total cost of this project at the end of Criminal Justice funding. PASSED AND APPROVED BY THE CITY COUNCIL ON THE 21 DAY OF SEPTEMBER, 1981. (S) RICHARD TURNER, MAYOR ATTEST: (S) JANICE CARROLL, CITY SECRETARY Councilman Dodds moved that this resolution be approved. Seconded by Councilman North, the motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None 12. RECEIVE CITY SECRETARY'S REPORT ON DISTRICTING OPTIONS Janice Carroll advised the Council that the memorandum included in their packet regarding districting to be done by registered voters is incorrect. In accordance with the State Constitution, districting by cities must be done by population. However, she did advise the Council that the calendar for this procedure would be the same. She would like to work on the popula- tion count during the month of October and present this information in November to the Council for their review and study and final action. This districting process will then be mailed in a report form to the Department of Justice during the month of December. This will give the Department at least 90 days to review our districting plan, Mrs. Carroll advised the Council. The Council concurred with this report. -11- 000973 13. CLOSED DOOR SESSION REGARDING PERSONNEL/CITY AUDITORS It was the consensus of the Council that a closed door session prior to the appointment of an auditor for the city was not needed. 14. CONSIDERATION OF APPOINTMENT OF AN ACCOUNTING FIRM TO PREPARE THE 1980-81 FISCAL YEAR AUDIT Councilman Adeler moved that the firm of Peat, Marwick, Mitchell & Co. be appointed as the auditor for the 1980-81 fiscal year budget, contingent upon city manager negotiating an engagement letter to be brought back ~ before the Council under ordinance form. This motion was seconded by Councilman Dodds. Mr. Savage at this time advised the Council of the two representatives of the firm that would be working with the city. Bob Lux was recognized and stated that he agreed with the Council that a firm which is a member of the "big eight" would be of a benefit to the city. Councilman North agreed with him and said it was also a benefit to the staff. Councilman Adeler explained that this is the first management-type audit that the city has had. This also will possibly have effect on our present bond status, Councilman North explained. There being no further discussion, Mayor Turner called for a vote on the motion on the floor. The motion was passed by the following roll call vote: Ayes: All members present voted aye Noes: None 15 RECEIVE CITY MANAGER'S STATUS REPORT Mr. Savage advised the Council to mark their calendars for October 3. This is the annual Flea Market to be held at Lions Club Park. He also advised that Fall Funtime had started through our Park & Recreation Department. He told the Council that he had checked with IBM regarding the reopening of Camey Road and that IBM stated that this could not be done. There are ~-.. problems with obstacles at the railroad track and at 121. He advised the ~ Council that the staff would be re-erecting the barricades. Mr. Savage briefed the Council on a meeting that he had with Mr. Charles Purdy regarding his non-conforming use. It does appear that Mr. Purdy will come before the Board of Adjustment and Appeals and ask for a non-conforming use variance at this time. Friday, September 25, bids will be received on codification of all ordinances. This should be placed on the October 5 agenda. Regarding facilities for a library, he stated that he still had only a verbal agreement on the bUilding next door from Methodist Hospital, and he had received estimates for a new portable building that were up to $53,000. Presently, Mr. Savage stated that he was looking into a lease in the shopping center which might be a better solution at this time. He did want to have a decision made by the first of the year. There being no further action to be taken by the Council, Councilman Dodds moved the meeting be adjourned. Seconded by Councilman Adeler, the motion was passed by the following vote: Ayes: All members present voted aye Noes: None -- Mayor Turner adjourned the meeting at 11:15 p.m. ATTEST :. ~~ J,.~C~ CARROLL ,- CiTY S~CRETARY