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HomeMy WebLinkAbout06/18/1984 City Council MINUTES OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS HELD ON June 18, 1984 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: Larry D. Sample Mayor Noel Long Councilman Helen Gray Councilman Don Amick Councilman Charles Dodds Councilman Marlene Poole Councilman with all members present, a quorum was established. City Attorney, Ken Dippel, Howard Thornton and Michael Lee representing Howard Thornton Ford were present as well. 1. PLEDGE OF ALLEGIANCE Mayor Sample led the Council and members of the audience in the pledge to the United States flag. 2. APPROVAL OF MINUTES FROM THE JUNE llth MEETING Councilman Poole moved to approve the minutes of the June llth meeting as presented. Seconded by Councilman Dodds, the motion passed w~th a unanimous vote. 3. CITIZEN INPUT There were no citizens present who wished to speak on anything other than the posted agenda items. At this time, Mayor Sample announced an Emergency Agenda Item Notice had been posted at 4:00 p.m. th~s afternoon and would now be addressed 1. CLOSED DOOR SESSION AS AUTHORIZED BY ARTICLE 6252-17 SECTION 2-E OF VERNON'S ANNOTATED CIVIL STATUTES REGARDING PENDING LITIGATION, COUNCIL WILL RECONVENE IN OPEN SESSION TO CONSIDER TAKING ACTION RELATIVE TO REAL ESTATE CONTRACT Mayor Sample reconvened in open session at 8:00 p.m.. and briefly reviewed the litigation the City has been involved in, in the past several weeks. He said a settlement had been reached and read the following agreement. AGREEMENT WHEREAS, on April 2, 1984 the City of The Colony (hereinafter referred to as the "City") passed a Resolution, No. 84-09, accepting a bid by the Talmadge Tinsley Company, Inc. (hereinafter referred to as the "Tinsley Company") for the pur- chase of a 13.606 acre tract of land owned by the City. WHEREAS, on April 10, 1984 the City approved a contract for the sale of the aforesaid 13.606 acre tract of land from the City to the Tinsley Company, which contract included payment of real estate commissions upon consummation to Joe Garrett and Company and the Tinsley Company (hereinafter referred to as the "Real Estate Contract"); WHEREAS, pursuant to the Real Estate Contract, the Tinsley Company tendered its earnest money to Commerce Title Company in timely fashion; WHEREAS, on May 11, 1984 a lawsuit was filed by SCM Development, Inc., Nicholas G. Oprea Associates, Inc. and Nicholas G. Oprea, individually in the 158th District Court of Denton County, Texas against the City and the T~nsley Company, Civil Action No. 84-3122-B (hereinafter referred to as the "Lawsuit") ; WHEREAS, the Lawsuit sought rescission of the Real Estate Contract and alleged a conspiracy between the City and the Tinsley Company; WHEREAS, the City has denied it has done anything improper but has cross-claimed for rescission of the Real Estate Contract nad the Tinsley Company has denied it has done anything improper and has sought an Order of Specific Performance against the City and has counterclaimed against the Plaintiffs for tortious interference with contractual relations; AND WHEREAS, the City and the Tinsley Company desire to amicably resolve their disputes in a fair and equitable fasion, NOW, THEREFORE, the part~es agree as follows: 1. The above and foregoing preambles are incorporated herein by reference. 2. This Agreement is for the purpose of com- promise and settlement only and does not constitute an admission as to liability or misconduct on the part of any party hereto. 3. The Contract of April 10, 1984 for the 13.606 acre tract of land is hereby terminated. 4. The earnest money deposited by the Tinsley Company is hereby to be returned to the Tinsley Company in full. 5. It is hereby agreed that in consideration of the foregoing, if and when the City sells the 13.606 acre tract of land, or any portion thereof, the City shall receive all proceeds from such sale or sales to the extent the net proceeds to the City are $3.12 per square foot or less, plus actual advertising expenses not to exceed the sum of $3,000. To the extent the net proceeds to the City are more than $3.12 per square foot, plus actual adver- tising expenses of up to $3,000.00, the additional amount(s) shall be divided equally (i.e. on a 50- 50 basis) between the City and the Tinsley Company; provided, however, that if the Tinsley Company or any of its subsidiaries is the successful bidder on the whole or any portion of the 13.606 acre tract of land, then all net proceeds from the specific whole or portion of the 13.606 acre tract of land shall go to the City and the Tinsley company shall not be entitled to any monies under this provision. 6. In the event the City trades, rather than sells, the 13.606 acre tract of land or any portion thereof, then the preceding profit division arrangement shall transfer to such newly acquired property. 7. In further consideration of the foregoing, the City hereby agrees to dismiss with prejudice its cross-claim against the Tinsley company for recission and the Tinsley Company agrees to dismiss with prejudice its cross-claims against the City for specific performance and contribution. The parties further agree not to assert and to release the other from any and all other claims which are or might have been asserted in connection with the subject matter of the Lawsuit, except any claims that the City and/or the Tinsley Company may have asserted or might in the future assert against the Plaintiffs or any of them. To effectuate this provision, the City and the Tinsley Company agree to execute and enter a joint dismissal of the Law- suit with prejudice. 8. The City and the Tinsley company hereby jointly and severally release Joe Garrett and Com- pany from any claims for damages arising out of the conduct of the Officers, Directors and Employees and/or Agents of the Joe Garrett and Company in connection with the transaction, which is the subject of the Lawsuit. In return, Joe Garrett and Company, its Officers, Directors, Employees and/or Agents hereby release the City and the Tinsley Company (jointly and severally), their Officers, Director, and/or Agents, from any claims or liability arising in connection with the Real Estate Contract. 9. The obligations imposed by Paragraphs 5 and 6, supra, shall extend for a period of 10 years from the date fo this Agreement. 10. ~h~s Agreement constitutes ~he complete and entire understanding between the parnies. It may not be modified or varied except in a writing signed by both the Ciny and the Tinsley Company. This Agreement shall be construed under the laws of the Shame of Texas. /s/ Larry D. Sample /s/ Daniel G. McQuary /s/ David Wideman Following a brief discussion of this ag~:eement, Mayor Sample recommended the Council approve Councilman Amick ~hen moved %0 authorize v_he Ci~_',' Har'.~g~~ and"c,r Mayor to sign and *.~ ; s .~c: ~er~;:-,~:-_ as cr;~'~ -_E'd. Seconded O?li?L{2 1. [~a!i D,E_dds, tRe ,:~(3~'. ~ {?n oassed wi th 4. PUBLIC HEARING REGARDING CHANGE OF ZONING ON A .689 ACRE LAND TRACT GENERALLY LOCATED WEST OF FM423 AND ONE HALF MILE SOUTH OF SOUTH COLONY BOULEVARD Councilman Dodds moved to open the Public Hearing. Seconded by Councilman Poole, the motion passed with a unanimous vote. Janice Carroll, City Manager, advised the Council that the Planning & Zoning Commission held their public hearing and recommend this change in zoning. Mr. Howard Thornton introduced himself and Mr. Michael Lee, whom he says will be the local Manager for The Colony. Mr. Thornton said he would like to be the first auto agent for our City. He has spent the last 17 years building an honorable repu- tation in this area and has a number of customers that live here. He went on to say, there is no sales tax on automobiles; however, he will pay ad valorm taxes to the City on his inventory in Dec- ember. He plans to keep an inventory of around thirty automobiles. This would bring the City approximately $100 to $150 thousand dollars in taxes at the end of the year. He would use a portable building but it would be completely finish- ed out in either brick or cedar and would have the look of a permanent structure. Mayor Sample asked if he would always be just a used car dealer in this City. His reply was, hopefully not. He said that according to Ford's franchise agreement, he can not put a new car Ford dealership here, however, he would like to put a new car foreign car dealership here in the near future. He added that this is only an idea at this point, but a promising one. Mrs. Carroll asked Mr. Thornton about the type of utilities he would require, such as water and sewer. He replied, permission to use a septic tank would be requested. It would be used strickly for a rest- room. Water would have to come in under FM423. Mayor Sample was curious as to exactly what type of Specific Use Permit would be required. Mrs. Carroll said a SP #13 or #14 would be used for a used car lot. She went on to say there could be no other use for the property under that zoning. There were a number of citizens in the audience that spoke for or against this proposal. The following are their comments: Norman Adeler asked if a term could be placed on this type of permit since the land would be leased rather than purchased. Mrs. Carroll said this had been looked into once before and the Attorney's say this isn't a proper thing to do. Greg Miller was concerned about traffic crossing FM423 entering and exiting the property. Mr. Thorn- ton said there would be a north and a south entrance and it would not effect the traffic flow on FM423. Cathy Boch felt like this could set a precedence for other similar businesses along this roadway. Dot Martin said he should be given a chance. Even though it wouldn't bring a great deal of revenue to the City, it would be a service to our citizens. Cathy Miller said she would rather see a new car dealership. Melvin Pasley thought this would be a good thing for our City. Councilman Long asked Mr. Thornton if he had looked around the City for the most suitable location. He said yes and the location on FM423 would be the place with the highest visability. Mr. Thornton, in addressing Cathy Boch's concern about setting a precedence said, that would be en- tirely up to the City to decide. He then suggested the Specific Use Permit state that this would be strictly for a satellite of a new car dealership. Councilman Amick said he was in favor of this zoning change. He said it would be convenient for our citizens and as long as it is considered and zoned as a satellite of a new car dealership, we wouldn't be plagued with other less reputable owners. Mayor Sample doesn't feel this would be the best use for the land. Mrs. Carroll added that this is only a Public Hearing and that the Ordinance itself can be made very rigid if that is what the Council wants. She went on to say this particular parcel of land is not included in the Master Plan. It is being leased and not purchased. She said she would come back before the Council at a later date with some ideas for this Ordinance. With no further discussion, Councilman Poole moved to close the public hearing, seconded by Councilman Amick, the motion passed with the following roll call vote: Ayes: Ail members voted aye Noes: None Councilman Dodds then moved to have the City Manager and City Attorney review this and come back before the Council with some direction. Seconded by Council- man Poole, this motion passed as well with the follow- ing roll call vote: Noes: Mayor Sample voted no Ayes: All other members voted aye The Council took a brief recess at this time. Upon reconvening in open session, Mayor Sample addressed agenda item #6. 6. CONSIDERATION OF APPROVAL OF TEXAS UTILITIES ELECTRIC COMPANY RATE INCREASE REQUEST THROUGH THE TEXAS MUNICIPAL LEAGUE Mayor Sample said the state Public Utilities Commission regulates rates. This City normally goes on record as joining with the Texas Municipal League who fights these increases for us. Janice Carroll, City Manager, reviewed how TML fights for us. She said that after a conversation with Price Robertson fo Texas Power & Light Company, it seems the rate requested by TML is less of a O0 ! decrease than the PUC is requesting. The PUC hearings are supposed to resume next week. Action needs to be taken one way oD another by July 9th at which meeting Mr. Robertson will attend. Following a brief discussion, Councilman Dodds moved to table this item at the present time. Seconded by Councilman Poole, the motion passed with the following roll call vote: Ayes: All members present voted aye Noes: None 5. CONSIDERATION OF APPROVAL OF AUDIT FOR YEAR ENDING SEPTEMBER 30, 1984 Mr. Pete Peterson and Mr. Ron Banister were present representing the firm of Price Waterhouse, to answer any questions by the Council. Mr. Banister said the scope of the work done in The Colony is a clean opinion. Mr. Peterson briefly reviewed some changes in procedure that they listed in their report. He spoke about following basic accounting principals. Councilman Amick asked what would happen if the City determined they didn't want to follow these principals. Mr. Peterson said it could effect the City's participation in the bond market. Following a brief discussion, Councilman Amick moved to approved this audit. Seconded by Councilman Long, the motion passed with the following roll call vote: Ayes: All members present voted aye Noes: None 7. CONSIDERATION OF APPROVAL OF AN AGREEMENT WITH LEWISVILLE INDEPENDENT SCHOOL DISTRICT Charlie Parker, member of the L.I.S.D. School Board was present to answer any questions. City Manager, Carroll, said this particular exchange agreement was prepared in December of 1983. It has been review- ed by Mr. John Boyle, City Attorney. He has approved it. It basically deals with the trade off of Office Creek Park (12 acre tract) for a 20 acre land trace north fo the City, owned by LISD. The adult softball fields would be moved to the new site. LISD has said they will initiate a change order on the dirt work so that we can pay their cost to have our dirt work done. Councilman Poole wanted to know where the money for this work would come from. Ms. Carroll said it would come from a one time permit fee. She went on to say, that ordinarily the City doesn't charge LISD a building permit fee but in this case, it has been mutally agreed that this would be the best way to handle the cost of moving the ball fields. She said primarily, all we need to do is level the area. She then briefly reviewed some cost estimates for the preparation of the fields. (i.e. sprinkler systems, parking, infields, outfields, grass, lighting and moving the back stops.) Councilman Dodds had some question regarding Section 6 of the agreement. Mayor Sample asked if the purpose tonight was to approve this agreement. Mr. Parker said yes, for times sake. Councilman Amick suggested Section 6 be rewritten to reflect our interpretations. Councilman Dodds moved to instruct the City Manager to enter into the agreement with L.I.S.D. provided Sect. 6 be changed to reflect the Councils inter- pretations. The motion received a Second by Councilman Poole, the Mayor asked for any further discussion. A lenghty discussion regarding the funds for this followed. Council- man Amick recommended the City absorb the moving costs then charge the building permit fee. Mr. Parker said the LISD is willing to do whatever it takes to get this ball rolling. He said all terms could be worked out between the City Manager and LISD in writing. With no further discussion, the Council approved the motion on the floor with the following roll call vote: Ayes: All members present voted aye Noes: None 8. CLOSED DOOR SESSION AS AUTHORIZED BY ARTICLE 6252-17 SECTION 2G OF VERNON'S ANNOTATED CIVIL STATUTES REGARDING BOARD APPOINTMENTS A. Board of Adjustments & Appeals B. Planning & Zoning Commission C. Parks & Recreation Board D. City Councilman Mayor Sample reconvened in open session at 11:15 p.m. to address agenda item #9. 9. CONSIDERATION OF APPOINTMENTS OF TWO MEMBERS TO THE PLANNING & ZONING COMMISSION Councilman Amick moved to nominate Eric Stanton to Place 6. There were no other nominations for Place 6. The Council then voted unanimously to appoint Eric Stanton to Place 6. Councilman Poole moved to nominate Tom Cravens to Place 7. There were no other nominations for Place 7. The Council then voted to appoint Tom Cravens to Place 7 with the following vote: Abstain: Councilman Amick Ayes: All other members voted aye Noes: None With no further action to be taken by the Council at this time, Councilman Dodds moved to adjourn the meeting. Seconded by Councilman Long, the motion passed with a unanimous vote. Mayor Sample adjourned the meeting at 11:20 p.m. Attest: Jan~/~add, C~ity Secretary (SEAL)