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HomeMy WebLinkAbout08/19/1996 City Council MINUTES OF THE CITY COUNCIL MEETING HELD ON AUGUST 19, 1996 The Regular Session of the City Council of the City of The Colony, Texas was called to order at 6:30 p.m. on the 19th day of August, 1996, at City Hall with the following Council roll call: William W. Manning, Mayor Absent Bill Longo, Councilmember Present Mary Watts, Councilmember Present David Stanwick, Councilmember Present Wilma Avey, Councilmember Present John Dillard, Councilmember Present Dave Kovatch, Councilmember Present and with six present, a quorum was established and the following items were addressed: 1. WORK SESSION TO DISCUSS FINANCING OPTIONS FOR CAPITAL IMPROVEMENTS The City Council previously asked the City Manager to seek financing options for capital projects, naming the following two as top priority: (1) Construction of an overhead storage tank in the southeastern portion of the city; (2) Replacement of water lines in the Eastvale area of the city. Mr. Boyd London, First Southwest Company, the city's financial advisor met with staff and representatives of that company were present to discuss with the council options for financing these and other capital improvements needed in the city within the near future. Mr. Tony Johnston, Finance Director, introduced Doug Hartman and Drew Marsh with First Southwest who handed out information which showed how the above projects can be funded. Mr. Hartman explained the hand out, noting that all numbers are estimates and that the dates are just proposed so they would have something to work with in making their projections, which are carried out to the year 2019. He explained which of the city's debt is covered by water and sewer revenue bonds, noting that these projections do not include an increase in water and sewer fees. He went on to say the pro-forma coverage of 1.32 is more than adequate to handle these projects. Mr. Hartman said some of the current bonds can be refunded now and save money for the city, which will eliminate a large tax increase later on. According to the schedule a large increase in taxes would be needed in 2008. With the refunding option, that increase would be much less. Councilman Stanwick asked if these projections include projects which may come from the Comprehensive Plan. Mr. Johnston said they do, noting that staff made an estimate of what may be needed and those estimates are included in these figures. Mayor Pro-tem Dillard said refunding the bonds would allow us to save money on interest, with no rate increase and a small tax increase. Mr. Hartman agreed, stating that these figures show how the projects can be done with bonds. He went on to state that an alternative 6 which could probably allow these projects to be done without a bond issue or a tax increase is a 1/2 cent sales tax. He said the estimated revenue is $400,000 per year with growth projected each year. Many cities have done this and it would be a good source of funds for these projects. Another option, Mr. Hartman said, is to redirect the $1.85 recycling fee paid now by every water customer in the city. He said if $1.40 of that fee was redirected to pay for debt over the next 20 years, it would generate enough revenue to pay for the Billingsley water tower and the Eastvale water lines. That would leave $.45 to use for recycling purposes. Councilman Watts said if anything is done with the recycling money we need to be sure the citizens are clearly informed. Mr. Hartman agreed and then continued listing other sources of revenue as: Agricultural Roll Back taxes on the "IBM" tract and other property (being developed), Impact Fees (which will be looked at when the current study is done), Public Improvement District, and Tax Increment Financing. Mr. Hartman applauded the council for doing this planning, stating it is very important for the city. He said his company hopes to be able to help the city fine tune these numbers to meet the needs of the city. Mr. Johnston then asked the council for direction in these matters. He went on to recommend restructuring the bonds and to include the new debt as well. Councilman Stanwick asked how much debt the city can take on based on 1.25 coverage. Mr. Johnston estimated $1.5 million a year. Discussion followed about the total amount of money needed to complete the already projected needs and the amount of money the city can borrow. Councilman Longo said he would support a 1/2 cent sales tax for emergency services to take care of the upcoming needs in police and fire services. Councilman Kovatch said that at the last work session, the city council had told the City Manager to go ahead with seeking funding for the Billingsley water tower and the Eastvale water lines. Mayor Pro-tem Dillard stated that the council can take action under Item 7 on this agenda. 7:20 Recess 7:30 Reconvene INVOCATION - Dora Lou Wright - Colony Park Baptist Church PLEDGE OF ALLEGIANCE 2. CITIZEN INPUT Mike Lynch, 4921 Roberts, encouraged the council to keep the curbside recycling program in place, stating that it works better than recycling centers. The recycling contractor has said that additional revenue sharing can be included in the next contract term. He said the Recycling Committee has recommended that bids be accepted for both recycling and solid waste disposal and that the recycling coordinator position be upgraded to full time. Mr. Lynch said Mayor Manning had stated that the Recycling Committee would no longer be needed and then he (Lynch) asked that the full council vote on the "firing" of the committee. 7 3. PRESENTATION OF CERTIFICATES OF APPRECIATION AND RECOGNITION OF NEIGHBORHOOD BLOCK CAPTAINS FOR NATIONAL NIGHT OUT Chief Joe Clark and Officer Mark Phillips of the Police Department recognized those persons and businesses who helped with the block parties held all around the city on August 6, 1996 as a part of the 13th annual National Night Out. Officer Phillips thanked all who volunteered, including Police, Public Works and Parks and Recreation employees. Block Captains, Rochelle McChesney, Kim Morales, Dee Sligar, Chris Kane and Belinda Ressler were presented with Certificates of Appreciation. Ms. Ressler was presented with a plaque for having the largest tumout at her block party. 302 persons signed in at the block party held on Fryer Street. Chief Clark said there were 1,242 active participants in the National Night Out event, which was the fn'st in The Colony. He thanked Officer Mark Phillips who organized the event. 4. PUBLIC HEARING REGARDING THE 1996-97 MUNICIPAL BUDGET Mayor Pro-tern Dillard opened the Public Hearing and the council received input from the public regarding the upcoming 1996-97 budget. Mike Alianell, 5628 Terry Drive, told the council he sat on the city council when the budget was very tight and recognized that it may be tight this year, but said he wanted to address something very important. He said the city has had to cut salaries and even employees in the past, and that there have been times when employees have not received any increases. He said that he feels the council needs to set a goal to increase the salaries of their administrative employees. He pointed out specifically that the City Manager and the City Secretary work very hard, and that they spend many hours on the job. He said the council needs to look at what these employees do and pay them for what they are worth. Keri Rogers, 5104 Worley, said she is a 10 year resident and is very concerned with the condition of our streets. She asked the council to be sure to budget enough money for street repairs. Joyce Fulco, 4712 Clover Valley, said that due to past experience with developers who don't develop property, the city should start requiring performance bonds from them to assure that they will begin to develop their property. Mike Lynch, 4921 Roberts, said there were $18,000,000. in capital improvements presented a few months ago and noted that was the beginning of the four committees. He said the committees believe the estimate is closer to $25-30,000,000. He said his committee targeted 7 streets and according to the information given earlier, that would be about 5 years of debt at 1.2 to 1.5 million per year. 5. CONSIDERATION OF ACTION CALLING A PUBLIC HEARING FOR A TAX INCREASE OVER 3% OF THE EFFECTIVE TAX RATE A public hearing is required when the proposed tax rate is higher than the effective tax rate. The effective tax rate will be .77505. An increase in the present tax rate is not being proposed for the 1996-97 year, however, appraised property valuations have forced the effective tax rate down, therefore, our current tax rate of $.795 per $100.00 is more than 3% above the 8 adjusted tax base. Motion to call a public hearing on September 9, 1996 for a tax h~crease over 3 % of the effective tax rate - Kovatch; second - Stanwick, carried with a unanimous roll call vote. 6. PUBLIC HEARING ON APPLICATION OF JOSE G. REYES, DBA LOS REYES TAQUERIA FOR A CHANGE IN ZONING ON PROPERTY PRESENTLY ZONED AS SHOPPING CENTER, SEEKING TO HAVE THE COMPREHENSIVE ZONING ORDINANCE AND THE ZONING MAP OF THE CITY AMENDED SO AS TO GIVE THE BELOW DESCRIBED PROPERTY A SPECIFIC USE PERMIT FOR THE SALE OF BEER AND WINE FOR ON-PREMISE CONSUMPTION 5204 SOUTH COLONY BOULEVARD, SUITE 370 COLONY SQUARE SHOPPING CENTER Mayor Pro-tem Dillard opened the public hearing. Mr. Sam Chavez, City Planner advised that Mr. Reyes has asked that the hearing be conducted in Spanish and that he (Chavez) will interpret. Mr. Chavez advised that the applicant is requesting a specific use permit for a restaurant where the sale of beer and wine is incidental to the serving of food. The request has been recommended for approval, subject to staff stipulations, by the Planning and Zoning Commission who heard the case on July 23, 1996. The restaurant is located at the southwest comer of Paige Rd. and S. Colony Blvd. in The Colony Plaza Shopping Center and has been in business for over a year. All stipulations have been agreed to. Mr. Reyes advised the council that his is a family owned business. There being no questions from the council, and no further comments, Mayor Pro-tern Dillard closed the public hearing. 7. CONSIDERATION OF GIVING DIRECTION AND AUTHORIZING STAFF TO PROCEED WITH RECOMMENDED FINANCIAL OPTIONS FOR CAPITAL IMPROVEMENTS Mayor Pro-tem Dillard said the council needs to give staff directions on how to proceed with the following items: Restructuring of bonds, the Billingsley water tower and the Eastvale water lines. Councilman Watts asked where we are on the developer's agreement with Mr. Billingsley. Mr. Smith explained that until staff knows the direction and the amount of money the council will authorize, the agreement cannot be drafted. We also have not received any definite answer from the developer as to their participation. Councilman Avey said a performance bond should be requested from the developer. Councilman Watts said she thought we were to begin working on the agreement right away and Mr. Smith stated he understood council's direction was to bring the information back tonight and then proceed. Councilman Longo said he thought the developer would front the money and then the city would repay them, continuing he asked where the money is for the streets in Eastvale. Mr. Smith advised the streets will be another project, this is only for water 9 lines. Mr. Smith stated that he understood the priorities given by council were the Billingsley water tower and the Eastvale water lines. Councilman Kovatch agreed. Mike Lynch, 4921 Roberts, said he thought the streets in Eastvale were going to be fixed and now he is hearing it is the water lines. He asked if we are going to grow enough to wanant 3 new water towers. He said we need fire stations and equipment, police cars and people. He said them are lots of needs and said if the council doesn't have the facts then they should not commit the funds. Mr. Smith responded, stating that the council has taken the best approach based on the knowledge we have. He said the engineering study was done at the direction of the council and that is where the 3 towers came from. He said we are attempting to do long range planning and looking at a regional wastewater treatment plant. He said the council is planning for the future. Motion to authorize the city staff to proceed with researching revenue bonds and a developer's agreement (for the tower only), by September 9, 1996, if possible, to refine the numbers from First Southwest and to draft an agreement for construction for the tower and the Eastvale water lines - Stanwick. Councilman Longo stated that the agreement with Mr. Billingsley should be for the whole project, including sewer, etc. After further discussion, Councilman Stanwick withdrew his motion. Motion to authorize the restructuring of existing bonds - Kovatch; second - Avey, carried with a unanimous roll call vote. Motion to work with the developer to have a developer's agreement as discussed at the work shop on the water tower on the Billh~gsley property - Watts Councilman Kovatch asked if the agreement can include all water and sewer on the property. Motion to amended to include water and sewer - Watts Councilman Stanwick said before the agreement can be drafted we need to know the total cost of the project and what the council is willing to pay for. Mr. Smith agreed, stating that staff needs to know what the city will do and what they (council) want the developer to do. He said then he can negotiate subject to council approval. City Attorney, John Hill, said we have to know what the final obligations are before we can begin to negotiate. He said the agreement should include all public improvements on the property. Mr. Hill also said if the property is not ready to plat, then the agreement would be premature. Councilman Stanwick clarified that the agreement should include: legged tower, sewer connections and water connections. Councilman Longo said he wants to know how much Billingsley will pay for a fire station and a fire track and Councilman Avey said she wants a performance bond in the agreement. Councilman Kovatch said the City Manager needs to negotiate for the best deal. 10 Motion seconded by Longo, carried with a unanimous roll call vote. Motion to authorize the city to proceed with $650,000 funding for the water lines in Eastvale, which includes returlfing the streets to their current condition, - Kovatch; second - Avey, carried with a unanimous roll call vote. 8. CONSENT AGENDA Mayor Pro-rem Dillard summarized the items on the Consent Agenda. Councilman Watts pulled Item C for discussion. A. CONSIDERATION OF APPROVAL OF THE MINUTES OF THE COUNCIL MEETINGS HELD AUGUST 5 AND 12, 1996 Council meeting minutes have been prepared for council review and approval. Motion to approve the nfinutes as written - Kovatch, second - Longo, carried with a unanimous roll call vote. B. CONSIDERATION OF AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE AND ESTABLISHING SPECIAL USE PERMIT NUMBER 57, PROVIDING FOR THE SALE OF BEER AND WINE INCIDENTAL TO A RESTAURANT UPON PROPERTY CURRENTLY ZONED FOR THE SHOPPING CENTER DISTRICT LOCATED AT 5204 SOUTH COLONY BOULEVARD, SUITE 370 Following the above public hearing the council may approve the granting of a special use permit by adoption of this ordinance. Motion to approve the ordinance as written - Kovatch, second - Longo, carried with a unanimous roll call vote. C. CONSIDERATION OF A RESOLUTION SUPPORTING THE PROPOSED SENATE BILL BY SENATOR TOM HAYWOOD, BY WHICH FIVE CENTS FROM EVERY DOLLAR OF THE TEXAS STATE LOTTERY TICKET SALES WILL BE RETURNED TO THE CITIES AND COUNTIES The City has been asked by the Denton County Commissioners Court to approve the above resolution supporting legislation which would return five cents of every lottery ticket sales dollar to the cities and counties. If passed, this bill would bring immeasurable benefits to The Colony. Councilman Watts said that after the previous discussions about the budget, this is a hard thing for her to do, but if she votes to approve this resolution, she will be approving the city taking a cut of gambling and that she is not in favor of legalized gambling. She said The Colony 11 needs to maintain a family atmosphere. Motion to approve the resolution as written - Longo, second - Stanwick, carried with the following roll call vote: Aye - Longo, Stanwick, Avey, Dillard No - Watts, Kovatch At this time Mayor Pro-tern Dillard read the resolution as follows: A RESOLUTION OF CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS SUPPORTING THE PROPOSED LEGISLATION REGARDING THE TEXAS LOTTERY WHEREAS, the Texas Lottery Commission has conducted the Texas Lottery since its implementation in 1992; and WHEREAS, Senator Tom Haywood has proposed a senate bill to be presented in the 1997 legislative session of the Texas Senate that would require the Texas Lottery Commission to return five cents of every lottery sales dollar to the city where the sale was transacted or to the county if the sales transaction location was in the unincorporated area of the county; and WHEREAS, the State lottery ticket sales in Denton County during the calendar year of 1995 totaled $34,400,000, and this proposed bill would have returned to the cities and county of Denton a total of $1,720,000; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of The Colony, Texas: Section 1. That the City of The Colony hereby supports and accepts the proposed legislation by Senator Tom Haywood returning five cents from every dollar of the Texas State Lottery ticket sales to the cities and counties. D. CONSIDERATION OF APPROVAL OF A LETTER AGREEMENT WITH MATTHEWS SOUTHWEST INC. FOR THE STUDY, REVIEW AND ASSESSMENT OF THE GOLF COURSE PROJECT ON WYNNEWOOD PENINSULA The Council discussed this agreement with Matthews Southwest at a previous council meeting. The agreement has been reviewed by staff, the city attorney and Matthews Southwest. Approval is recommended. Motion to approve the agreement as written - Kovatch, second - Longo, carried with a unanimous roll call vote. E. CONSIDERATION OF APPROVAL OF A DEVELOPER'S AGREEMENT WITH STEWART PENINSULA DEVELOPMENT PARTNERS REGARDING LANDSCAPE EASEMENTS ON SOUTHSHORE PHASE II The above agreement has been reviewed by the city attomey and staff. It is identical to previous agreements for developments by Stewart Peninsula Development Partners. Approval is recommended. 12 Motion to approve the agreement as written - Kovatch, second - Longo, carried with a unanimous roll call vote. F. CONSIDERATION OF A RESOLUTION FINDING THAT A NECESSITY EXISTS TO ACQUIRE REAL PROPERTY FOR DRAINAGE AND OTHER MUNICIPAL PURPOSES, AUTHORIZING THE CITY ATTORNEY TO INSTITUTE EMINENT DOMAIN PROCEEDINGS FOR THE ACQUISITION OF THE BELOW DESCRIBED TRACT OF LAND FOR CONSTRUCTION OF A WATER TRANSMISSION LINE APPROXIMATELY 0.642 ACRES OR 27,971.958 SQUARE FEET GENERALLY LOCATED EAST OF F.M. 423 (MAIN STREET) IN THE 5200 BLOCK OF MAIN STREET The Council has discussed acquisition of this property for quite some time and this time will authorize eminent domain proceedings in order to expedite the acquisition. Motion to approve the resolution as written - Kovatch, second - Longo, carried with a unanimous roll call vote. G. CONSIDERATION OF AUTHORIZING RENEWAL OF AN INTERLOCAL AGREEMENT WITH DENTON COUNTY FOR THE COLLECTION OF TAXES The City has contracted with Mary Hom, Denton County Tax Assessor/Collector, for two years for the collection of our city taxes. Staff is very pleased with the cooperation and assistance we receive and approval of this agreement is recommended. Motion to approve the agreement as written - Kovatch, second - Longo, carried with a unanimous roll call vote. H. CONSIDERATION OF AUTHORIZING AN AGREEMENT WITH BARBARA JEAN REGNOLD TO SERVE AS GATE ATTENDANT AT STEWART CREEK PARK This agreement was postponed from the August 5, 1996 for review by the City Attorney. The City Attorney and the Parks & Recreation Board have reviewed it and approval is recommended. Motion to approve the agreement as written - Kovatch, second - Longo, carried with a unanimous roll call vote. I. CONSIDERATION OF A RESOLUTION APPOINTING THE IMPACT FEE ADVISORY COMMITTEE The City Council took formal action several months ago to activate the above named committee. This resolution is a formality to appoint the committee. 13 Motion to approve the resolution as written - Kovatch, second - Longo, carried with a unanimous roll call vote. 9. CONSIDERATION OF ACCEPTANCE AND AWARD OF BIDS FOR THE RELOCATION OF UTILITY LINES ALONG F.M. 423 (MAIN STREET) AND APPROVAL OF AN ORDINANCE AUTHORIZING CONTRACT FOR SAME On August 12, 1996, nineteen (19) bids were publicly opened and read for the above named project. The Director of Public Services and the City Engineer have reviewed the bids and will be present at the meeting to make their recommendation for award. Mr. Pat Dunlap advised the council that his original recommendation was to go with a 20" line, but after further review, he is now recommending going with a 24" line, which will allow more capacity in the northern portion of the city. He recommended awarding the bid to Circle H Construction, whose base bid came in at $480,015.00. He said staff is also recommending eliminating the 8" water line on the east side of F.M. 423 which will decrease the contract amount to $442,715.00. He said the 8" line is not a priority at this time, and that it is not in the street so it will not affect the State's widening project which is set to begin in November of 1996. Mr. Smith advised the estimated budget for this project is $440,000 and with $20,000 included for contingencies, this bid is within the budget. Motion to accept the bids for relocation of the utilities along F.M. 423, award the contract to Circle H Construction in the amount of $442,715.00 and approve an ordinance authorizing a contract for same - Longo; second - Avey, carried with a unanimous roll call vote. 10. CITY MANAGER AND STAFF REPORTS - None With no further business to address, Mayor Pro-tern Dillard adjourned the meeting at 9:20 p.m. APPROVED: ATTEST: Patti A. Hicks, TRMC, City Secretary 14