Loading...
HomeMy WebLinkAbout05/19/1997 City Council MINUTES OF THE CITY COUNCIL MEETING HELD ON MAY 19, 1997 The Regular Session of the City Council of the City of The Colony, Texas was called to order at 7:41 p.m. on the 19th day of May, 1997, at City Hall with the following Council roll call: Mary Blair Watts, Mayor Present Bill Longo, Councilmember Present David Stanwick, Councilmember Present Wilma Avey, Councilmember Present John Dillard, Councilmember Present David Kovatch, Councilmember Present and with six present, a quorum was established and the following items were addressed: INVOCATION - Rev. Tommy Jackson, Calvary Temple PLEDGE OF ALLEGIANCE 1. CONSIDERATION OF AN ORDINANCE CANVASSING THE RESULTS OF AN ELECTION HELD IN THE CITY OF THE COLONY ON MAY 17, 1997 Mayor Watts read portions of the ordinance canvassing results from the mn-off election held on May 17. Motion to approve - Kovatch; second - Dillard, carried with all members voting Aye. 2. ADMINISTER OATH OF OFFICE TO NEWLY ELECTED COUNC1LMEMBER FOR PLACE 2 Patti Hicks, Interim City Manager, administered the Oath of Office to Bemetta Henville- Shannon. Ms. Henville-Shannon took her seat on the dais. 3. MAYORAL COMMENTS Mayor Watts explained that this item would be for items of interest for the citizens not being addressed by the agenda. Mayor Watts explained that the solid waste contract was changing and that new "totem" would be delivered to residents next week. She explained that information would be attached explaining days of pick-up and proper placement of the totem. Mayor Watts continued by saying she had contacted Dick Armey's office asking assistance with getting The Colony post office designated as a main post office. Mayor Watts spoke with Dick Clardy, band director at The Colony High School, who 4 0 0 6.5 5 8 confu-med that the marching band would be performing in the July 4th parade in the city. The theme will be "Independence - Mardi Gms Style". She has invited the Griffin Middle School band to play patriotic music in the Council chambers at the meeting prior to July 4th. Mayor Watts announced the formation of a Cable Channel 6 Programming Committee for possibly broadcasting football games, band competitions, and other local presentations. She asked for citizens to complete mi application if they are interested in serving. Mayor Watts explained that applications are also being accepted for a Beautification Committee. This committee would be responsible for coordinating an "Adopt-A-Mile" of median program and creating a comprehensive plan for beautifying medians. The mayor continued stating that County Commissioner Jeff Krueger will be meeting with County Commissioner Sandy Jacobs and staff to discus right-of-way for widening F.M. 423 from the bridge south to SH 121. Mayor Watts announced that she and Patti Hicks, Interim City Manager, would be meeting next week with the mayor and city manager of Frisco to coordinate information on the possibility of a regional wastewater treatment plant. The purchase of fire equipment was supposed to be on the agenda tonight, however, Tony Johnston, Finance Director, pulled the item since the bank did not have the paperwork prepared in time. This item will be on the next agenda. Another new item on the agenda is "Old Business". This is where staff will give a brief update on pending items. OLD BUSINESS Pat Dunlap, Public Services Director, reported that the centrifuge installation will take place on June 23. Related equipment (blowers and aeration system) will be installed on June 30. Mr. Dunlap has requested NRS Engineering to provide a preliminary cost estimate on putting in a lime stabilization system. He has received a price on the equipment of $125,000 and estimated installation costs could range from two to two and a half times the estimated equipment cost. Mr. Dunlap announced that the TNRCC is looking at the possibility of halting sludge at landfills that is not lime stabilized. This process may not be necessary at this time, however, if TNRCC does change their requirements, we would need funds in next year's budget for this purpose. Sam Chavez, City Planner, reported that he had met with TxDOT and they currently have the money for the right-of-way acquisition only for SH 121 and not the construction. He continued that we are riding Collin County's "coat tail" in order to get a roadway segmented between Paige Rd. and Preston Rd. on the same construction schedule. The next construction phase would be a six-lane, divided, highway. TxDOT has acquired all of the right-of-ways west of Paige Rd. all the way to the 121 Bypass which was dedicated to TxDOT by Mr. Bright. He continued reporting what would be needed in the future and indicated that the hold up is waiting for TxDOT to agree with Collin County that we can join their "bandwagon" and be on the same program before TxDOT will seriously consider going out to acquire right-of-ways on SH 121 between Paige Rd. and Preston. Mr. Chavez continued by reporting on the status of the Home Business Ordinance review. He emphasized that home businesses are not affected. The intent is to revise a day care center ordinance. The proposed ordinance will recognize that there are four different types of day care centers some of which should not require a S.U.P. The only requirement would be state licensing for some types of centers. Patti Hicks reported that the extension of Josey Lane to Main St. is on the TxDOT schedule for letting in March of 1998. 4. CITIZEN INPUT Arvin Yandell, 7100 Hanna Cr., congratulated all newly elected officials and stated the face of the Council has changed beginning with electing Councilman Avey to office a year ago. He asked that the Council work together cohesively and think about the best interests of the citizens. Dick Weaver, 4940 Hackney Ln., stated he was a long-time resident and previously served on the Council. He reported that in 1988 he and other officials of the city went to Austin to talk with the State about a loan for the Eastvale sewer system. We were awarded $1,330,000 through a State Revolving Fund (SRF) loan in 1991. The city is now subject to paying back the low- interest loan which will mature in 2011. Citizens in the Eastvale area pay 1% with the remainder of the city paying 99% of the debt. Tony Johnston, Finance Director, confirmed the information presented. Lou Gomez, 5081 Shannon Dr., commented that the "Old Business" item on the agenda was not posted properly. He congratulated the winners of the election even though his preference was with other candidates. He felt there were several misrepresentations made during the campaign. He added that Roberts Rules of Order cannot be imposed on citizens wishing to speak. Jerry_ Schultz, 5401 Gibson Dr., stated he had been a resident for 15 years. He would like to see committees set up to review old ordinances especially relating to animal control. He also agreed that there were misrepresentations made during the campaign by some candidates and congratulated the winners. Liz Ripperger, 5909 Stewart Blvd. stated that the recent election was disappointing and the City has suffered. She continued she was offended when Mr. Longo turned his back to a citizen. 5. MAYORAL PROCLAMATIONS AND PRESENTATIONS DECLARING JUNE 12, 1997 AS PHILIPPINE REPUBLIC DAY Mayor Watts read the proclamation which will be mailed to the Philippine Republic Celebration Committee. DECLARING MAY 18-25, 1997 AS SAFE BOATING WEEK Mayor Watts read the proclamation and presented it to Ken Thompson with the Coast Guard Auxiliary. 6 DECLARING MAY 18-24, 1997 AS PUBLIC WORKS WEEK Mayor Watts read the proclamation and presented it to Mr. Pat Dunlap, Public Services Director, who accepted on behalf of employees of the Public Works Department. PRESENTATION BY THE POLICE DEPARTMENT TO THE COLONY HIGH SCHOOL Mayor Watts announced that the Police Department will make this presentation at the high school at a later date. NEW BUSINESS Mayor Watts explained that this item will be addressed during staff reports at the end of the meeting. 14. ELECTION OF MAYOR PRO-TEM AND DEPUTY MAYOR PRO-TEM Councilman Dillard nominated David Stanwick as Mayor Pro-Tern. Councilman Longo nominated David Kovatch. Votes were taken as follows: Councilman Longo - Kovatch; Councilman Henville-Shannon - Kovatch; Councilman Stanwick - Stanwick; Councilman Avey - Stanwick; Councilman Dillard - Stanwick; Councilman Kovatch - Kovatch; Mayor Watts - Stanwick. Councilman Longo nominated Wilma Avey for Deputy Mayor Pro-Tern. Councilman Stanwick nominated Kovatch who declined the nomination. All members voted for Wilma Avey with Ms. Avey abstaining. 15. APPOINTMENT OF VOTING REPRESENTATIVE TO THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS Mayor Watts said she would accept volunteers. Motion to nominate Mayor Watts and approve by acclamation - all members voted Aye. 6. CONSIDERATION OF APPROVAL OF A REPLAT OF LOT 3, BLOCK 1 OF COLONY PLAZA ADDITION Sam Chavez, City Planne~, gave a brief overview of the applicant's request. Jerry Schultz, 5401 Gibson Dr., having never heard of Fresh 'n Lite asked if it was a family atmosphere restaurant with the beer and wine sales. Mr. Rex Whitton, project development manager for Fresh 'n Lite restaurants, stated this was definitely a family-oriented restaurant. His said the menu is typical only prepared with low fat/cholesterol alternatives. The 7 beer and wine is a very small percentage of the sales. He then distributed a rendering of the __ restaurant to the Council. Councilman Stanwick asked what kind of business could be built on the smaller lot created. Mr. Chavez indicated possibly a fast-food restaurant could be built. Discussion followed regarding parking for the two lots. Motion approve subject to staff stipulations - Stanwick; second - Longo, carried with all members voting Aye. 7. PUBLIC HEARING ON APPLICATION OF MICHAEL D. CLARK, WINKLEMAN AND ASSOCIATES, INC. FOR A CHANGE OF ZONING ON PROPERTY PRESENTLY ZONED AS PLANNED DEVELOPMENT 11 FOR THE (GR) GENERAL RETAIL DISTRICT, SEEKING TO AMEND THE COMPREHENSIVE ZONING ORDINANCE AND ZONING MAP OF THE CITY SO AS TO GIVE THE FOLLOWING DESCRIBED PROPERTY A SPECIFIC USE PERMIT FOR A RESTAURANT WITH BEER AND WINE SALES FOR ON-PREMISE CONSUMPTION AND RELATED SITE PLAN GENERALLY LOCATED EAST OF THE NORTHEAST CORNER OF THE INTERSECTION OF SH 121 AND FM 423 Mayor Watts opened the public hearing. Sam Chavez gave an overview of the request. Councilman Longo emphasized that the drive-through window could not be used to buy beer and wine. Mr. Chavez stated that was one of the staff stipulations. Councilman Stanwick asked if stop signs or some other traffic device could be provided for cross access openings nearest to SH 121. Mr. Chavez said the developer would be agreeable. Councilman Avey asked how many fire hydrants would be needed since plans only showed one. Mr. Chavez said there may be an additional hydrant needed. Mayor Watts closed the public hearing. 8. CONSIDERATION OF AN ORDINANCE GRANTING A SPECIFIC USE PERMIT ~ FOR THE SALE OF BEER AND WINE FOR ON-PREMISE CONSUMPTION AT :~, PROPERTY CURRENTLY ZONED AS PLANNED DEVELOPMENT 11 FOR THE (GR) GENERAL RETAIL DISTRICT, AND AMENDING THE COMPREHENSIVE ZONING ORDINANCE AND ZONING MAP OF THE CITY GENERALLY LOCATED EAST OF THE NORTHEAST CORNER OF THE INTERSECTION OF SH 121 AND FM 423 Sam Chavez commented that Councilman Stanwick's request for stop signs at the east and westbound traffic lanes and southbound traffic lanes would be added as a staff stipulation. Motion to approve based on all staff stipulations with additional stipulation of speed control signs - Stanwick; second - Dillard, carried with all members voting Aye. 8 9. PUBLIC HEARING ON APPLICATION OF THE CITY OF THE COLONY SEEKING TO AMEND APPENDIX A (ZONING) OF THE CODE OF ORDINANCES BY AMENDING SECTION 17-104(B), DEFINITIONS AND SECTION 17-104(C) LANDSCAPING Mayor Watts opened the public hearing. Mr. Chavez briefly explained the request to amend the ordinance to simplify for the purpose of administration while maintaining high landscaping standards. Mayor Watts read certain aspects of the proposed ordinance and then closed the public hearing. 10. PUBLIC HEARING ON APPLICATION OF THE CITY OF THE COLONY SEEKING TO AMEND APPENDIX A (ZONING) OF THE CODE OF ORDINANCES BY AMENDING SECTION 17-104(D), PROTECTED TREES Sam Chavez again explained the request to amend the ordinance for tree protection measures. Councilman Dillard asked what areas of the city would be impacted the most. Mr. Chavez replied that the Tri-West site and Austin Ranch would be impacted. Mr. Chavez continued by explaining that if the developer should have to remove a tree, it would have to be replaced somewhere else on the site. Lengthy discussion followed regarding the specifications for the placement and size of trees. Rusty Nichols, Stewart Development Partners, asked Mr. Chavez if the trees were identified by species. Mr. Chavez responded there is a prohibited tree list in the landscape ordinance that identifies which trees cannot be planted. Mr. Nichols encouraged the Council to identify trees they want to protect not only the ones prohibited. He asked how a large tree can be replaced. Mr. Chavez said certainly you cannot replace a larger tree but the property should contain the same number of trees after removal. Councilman Dillard asked what prompted the move to start protecting trees. Mr. Chavez responded that the ordinance already exists but staff took it one step further since the existing ordinance did not protect any trees. Mr. Chavez further explained that when an applicant comes in for development, he will subnfit a tree survey showing the location and caliper size of each tree on the property. The applicant can then overlay the design on the survey and designate which trees need to be removed based on construction. That would be reviewed by staff and a permit issued. Mayor Watts closed the public hearing. 11. CONSIDERATION OF APPROVAL OF A FINAL PLAT OF THE CYPRESS COVE PHASE I ADDITION Sam Chavez gave a brief overview of the request. Truman Edminster, Carter and Burgess, introduced himself and asked if there were any questions. Councilman Avey asked if the applicant would be willing to change the name of the street back to Fryer. Mr. Edminster replied that was not an issue and would be at Council's discretion. Rusty Nichols explained that the streets were named in keeping with the theme set for the subdivision. Councilman Longo suggested street signage showing both street names to 9 eliminate confusion. Motion to approve with stipulation that signage be placed with both street names - Kovatch; second - Stanwick, carried with all members voting Aye. . 12. CONSIDERATION OF APPROVAL OF THE MINUTES OF THE COUNCIL MEETINGS HELD APRIL 21, MAY 10 AND 12, 1997 Motion to approve - Dillard; second - Kovatch Councilman Stanwick asked that the minutes for May 12 be amended to show the motion made for Item 4B was for preliminary approval pending final action at tonight's meeting. Councilman Avey asked that minutes for April 21 be revised on page 7 regarding a question to Mr. Art Clayton regarding a median cut south of Office Creek drainage structure, not north. Mayor Watts commented on minutes dated May 10 regarding page 3, item 2 "Councilmembers may ask questions directly of Department Heads". She went on to say that Department Heads would report back to the City Manager so staff could include comments in their staff reports. On page 5 of the same minutes, it is noted that Mayor Watts asked staff to look into an ordinance. The request was mentioned by her for Councilman Kovatch. Motion to amended to approve with amendments - Dillard; second also amended - Kovatch, carried with all members voting Aye except Councilman llcnville-Shannon who abstained. 17. EXECUTIVE SESSION AS AUTHORIZED BY SECTION 551.071, OF THE LOCAL GOVERNMENT CODE RELATING TO LITIGATION, TO-WIT: KAMEN VS CITY OF THE COLONY Mayor Watts made a presentation to explain a newspaper article regarding this subject which quoted Councilman Dillard. The article stated a bond election would be called upon settlement of the lawsuit. Mayor Watts explained that revenue bonds for water line improvements and a water tower to be located south of SH 121 require a majority vote of the council not a ballot election by citizens. Bonds for street reconstruction would be by ballot in August. The article stated that plaintiffs will not drop the lawsuit until after a successful bond election. Mayor Watts explained that once the public is made aware of which streets are to be repaired, the bond election should not fail. The article also stated that the plaintiffs would be shielded from having to pay for improvements. Mayor Watts explained that residents of the former Eastvale area will share the cost of improvements. The article stated the City would pay to the plaintiffs attorney $15,000 for expenses and $750 for court costs. Mayor Watts explained that the preliminary settlement did provide for $15,000 in legal fees. The article stated that "liquidated damages" would be provided in the amount of $25,000 as well as attorneys fees. Mayor Watts explained that the "liquidated damages" portion of the settlement was not accepted. The article stated a successful bond election could be costly to residents. Mayor Watts explained that an unsuccessful election will mean streets deteriorate further and when bonds finally are 10 approved, the cost of repair will be higher. The article stated that citizens would pay several hundred dollars per year. Mayor Watts explained that a tax increase will not be necessary and the cost would be $11.00 per year per million dollars. The article stated the revenue required to pay back bonds would affect any other monies we would need for other items such as emergency equipment. Mayor Watts responded that the purchase of emergency fire equipment will be on the next agenda and not hampered by the lawsuit. The article concluded by stating that the citizens need to be informed. Mayor Watts held up a large bundle of papers and explained that all the documentation was the lawsuit and explaining it in a short newspaper article was not the way to scrutinize it. She continued by saying discussion should not have taken place prior to this point since the litigation was pending and it was inappropriate to discuss it. Mayor Watts displayed the list of 46 streets intended for repair after the bond election. Mayor Watts also explained that insurance rates were higher since the former Eastvale area only has one fire hydrant. Additional fire hydrants will be installed as a result of the settlement. Councilman Dillard asked Mr. Johnston if the $11.00 amount was per resident or residence. Mr. Johnston explained his calculations for the figure which were per household. He further explained the amount was an estimate. Councilman Dillard explained that he was contacted by the newspaper and chose to exercise his first amendment rights by speaking on the subject. He explained the Cily was prepared last October to vote on bonds to make improvements to the area in que~ion. The lawsuit stalled those proceedings. The suit filed in federal court, which is public record, prohibited further action. Councilman Dillard feels that now a "gun is being held to the City's head" to settle the lawsuit. Councilman Dillard responded to the fire equipment issue and explained that anytime money is expended for one purpose, another purpose is eliminated. Regarding the insurance rates, it's the decision of individual insurance carriers as to whether the fire hydrant situation is an issue. He explained that his carrier was not aware of a higher rate because of one hydrant in the former Eastvale area. Councilman Dillard continued by saying he would like to settle the suit by going to court and reaching an agreement that's fair to all residents. His question is why Mayor Watts wants to sign the agreement so quickly. Councilman Dillard thinks there should further negotiation to arrive at a fair settlement. Discussion followed regarding the tax rate and bond indebtedness currently experienced by the city. Mr. Johnston explained that future revenues depend on growth. Councilman Stanwick commented that any additional improvements that arise after the bond election will be put on hold since the city would have no borrowing power. The situation could change if taxes are raised or development takes place. Mr. Johnston further explained the difference between revenue bonds and general obligation bonds. If the bond issue is in the amount of $14,000,000, the City would have to wait about two or three years and reevaluate. Councilman Stanwick stated that the terms of the settlement call for completion of improvements to the former Eastvale area to take place within five years. Given that time frame, based on our current borrowing capability, the majority of bond money would have to go toward that area of town in order to meet the five year deadline. Mayor Watts added that if the bonds are sold, the lawsuit is dropped. Councilman Longo commented that the Council once again is choosing sides. He explained that certain residents, specifically Richard Kamen, living in the former Eastvale area were offended when an agreement was made to install a water tower on the Billingsley property south of 121 before making any improvements to their much needed area. Councilman Longo 11 006 0 gave a brief history of how Eastvale consolidated with the City and expressed his approval of Mayor Watts trying to settle this lawsuit. Cynthia Wiechman, 5065 Alpha Dr., is a former resident of Eastvale, stated that improvements to the area were made and thinks the public should be informed that taxes may increase. She thinks Councilman Dillard was right to talk with the newspaper and that this lawsuit shouldn't be settled until the citizens fully understand the repercussions. Addressing Councilman Longo, she added that when an elected official tums his back on citizens, the tone is set. Mayor Watts asked Pete Eckert, City Attorney, if negotiations should be discussed in open session. Mr. Eckert responded that it was correct to discuss the issue in Executive Session. Councilman Longo explained that several of his rights were given up when he became a public official and he is tired of the bad manners of certain residents who have verbally attacked in previously and to show his displeasure, he turned his back. David Heiman, 5949 Fox, asked the residents to take a deep breath when they go to the microphone to speak and that no resident should be allowed to verbally attack council members. He continued by saying the city needs to do what's right and give Eastvale what they were promised. He agreed that information revealed during Executive Session should not be publicly discussed. Councilman Dillard read from the resolution passed in 1987 when the consolidation took place. He read that the City will, within two and a half years, commence a master plan of improvements to the area. He asked Tony Johnston if he had prior knowledge of the settlement agreements and Mr. Johnston responded that he did not. Councilman Dillard further explained that he had a responsibility to his constituents to represent their best interests. Roosevelt Johnson, Thompson Dr., stated the concrete roads in the City are as a result of negotiations with the developer since the City had no revenue. He stated the City is landlocked and there won't be that much more growth. He stated he didn't trust any of the attorneys since they only say what the Council wants to hear. He stated there is no more "Eastvale' and the City should work together since the City gets very little support from the outside. Emphasis should now be on economic development. State money should be used for improvements not City money. He suggested the issue be tabled and further negotiations should be made. Liz Ripperger, 5909 Stewart Blvd., asked the date of consolidation so she could request copies. Ms. Hicks responded that the consolidation took place on August 8, 1987. She also stated she thought Mr. Longo did not have manners any better than the children she works with. She does not feel all the citizens should be paying for improvements to just one area. Councilman Kovatch asked Pat Dunlap about the street reconstruction. Mayor Watts interjected that Mr. Dunlap may not know since the settlement was for asphalt concrete in Eastvale and the rest of the City would get concrete. Councilman Kovatch continued that the Council is only agreeing to proceed with the bond package and everyone will have an opportunity to vote on it. Roosevelt Johnson, stated that the citizens will be able to vote on the bond package and if it fails, the lawsuit continues and we're back where we started. Mayor Watts added that the lawsuit has been in negotiations for seven months and a settlement has been voted on by Council and sent to litigants. The plaintiffs have accepted the Council's revision of the agreement. It is now being presented for a final vote tonight. Mr. Johnson responded that a decision made tonight may not be the right one. He said seven months 12 006561 is not a long time to settle a lawsuit. Chris Cox, 5957 Carroll Dr., said he works in conflict resolution at his job. He continued that there are no winners in a lawsuit. He would like to see the City stay out of the courts and move forward. Rich Lewis, 5013 Ashlock Dr., read from minutes in 1987 discussing proposed consolidation. Basically it read as one area of town against another area of town. He thinks a judge should decide the lawsuit and allow the developer of the new property acquired to build a water tower. Lou Gomez, 5081 Shannon Dr., stated that as long as the Eastvale area stays in the same condition, it degrades the overall feel and look of the City. He stated that in the agreement it says that no resident of Eastvale will be assess any additional fees for improvements. He continued saying it smells like collusion and fraud. Mayor Watts added that the Eastvale citizens will not be shielded from paying for the improvements. Mr. Gomez continued that an amount of money will be paid for improvements for an area not built for those types of improvements. He said the water tower for the Austin Ranch area is a moot point since the developer has agreed to build one. The tax revenue from that area the first year will more than pay for the water tower and maybe allow for a re&tction in property taxes. Mayor Watts asked Mr. Johnston to respond to the amount of revenue quoted. Discussion followed regarding the calculations for possible future revenues. 10:32 p.m. - Executive Session 12:05 a.m. - Reconvene 18. CONSIDERATION OF ANY APPROPRIATE ACTION TO BE TAKEN AS A RESULT OF THE EXECUTIVE SESSION Motion to accept agreement negotiated by the parties and the Council which instructs the financial advisor and bond counsel to prepare an ordinance calling the bond election for the second Saturday in August and the formation of a bond study committee to be comprised from a cross-section of the City - Dillard; second - Kovatch, carried with all members voting Aye except Councilman Stanwick who abstained. 16. CITY MANAGER AND STAFF REPORTS Ms. Hicks reminded Council of a Special Session scheduled for tomorrow night with Dr. Geisel at 6:30 p.m. Beginning with this meeting, video tapes of the meetings will be provided for check-out at the Library. Ms. Hicks stated she would be taking her floating holiday on Friday, May 23. Pat Dunlap, Public Services Director, reported regarding wastewater facilities being proposed for the Austin Ranch area. The city engineer has provided a map showing the proposed sewer system. Mayor Watts if Council could get copies of the map. Mr. Dunlap responded he would have the map reduced for Council. Cliff Bormann, Building Official, responded to inquiries on the new SFR licensing review. 13 He updated the Council on Certificate of Occupancy inspection procedures. He stated he would __ like to work out a reasonable inspection and will mn a test case this month and report back to Council. Councilman Kovatch commented regarding the rate change for the 370 telephone exchange. He does not agree with Southwestern Bell's mandate that 370 customers must convert to metro service in order to lower rates. He feels they should give us the discount based on such a small percentage of 370 exchanges. Mayor Watts said the 370 exchanges can remain but those customers will pay a higher rate. She understands that the rates for 625 exchanges will reduce drastically. 13. DISCUSSION AND CONSIDERATION OF APPROPRIATE ACTION REGARDING THE NEGOTIATION OF A DEVELOPER'S AGREEMENT WITH THE BILLINGSLEY :: DEVELOPMENT COMPANY PROVIDING FOR THE WATER SYSTEM IMPROVEMENTS SOUTH OF STATE HIGHWAY 121 Councilman Dillard distributed copies of a letter addressed to him from Henry Billingsley agreeing to build a new water tower south of SH 121 with the City reimbursing him within a 16- month period. Councilman Dillard commented Mr. Billingsley was offering a way for the City to proceed with development without having to settle the lawsuit and allowing the City negotiating strength. If the Council approves, development could begin in 60 days. His request was for the Council to review the agreement and take action at the next meeting. Councilman Avey asked if there was anything negotiable. Councilman Dillard responded that the last paragraph of the agreement was not negotiable regarding zoning and type of water tower. Councilman Longo asked if Mr. Dillard had received feedback regarding a developer's agreement protecting the City. Councilman Dillard responded he was not negotiating for the company, but negotiating for the City. Councilman Dillard continued that if Councilman Longo checked the record, Billingsley had agreed to meet with the City and enter into a developer's agreement but '~ that Mr. Dillard was not the "point man" for the Billingsley company. Councilman Dillard added he was doing this because he is concerned about the future of the City and where we're headed with future development. He is concerned with anything that might jeopardize that. He thinks the time spent negotiating the lawsuit has hurt development and that is why he has negotiated this agreement. Councilman Longo is still concerned about a future fire station the City has agreed to build with the developer providing fire equipment. Councilman Longo said he is still waiting for information regarding that point. Councilman Dillard suggested that representatives from both sides meet and negotiate that point. Councilman Avey stated she has been asking for something in writing for a while but cannot agree that further negotiations are necessary. She stated her concern for the legality of the agreement and asked Council to direct the Finance Director and bond counsel to review. Motion for Council to direct Mayor Watts and Patti }licks, Interim City Manager, to negotiate with Crow/Billingsley Investment Company the details of constructing the pedestal water storage facility and details and limitations of public safety facilities required and any other infrastructure needs that are required for the property south of S}l 121 and they do so with bond counsel, city attorney and any staff members and that a preliminary proposal 14 be brought to Council on June 2 for initial review - Kovatch Patti Hicks stated that the Council has already directed Pete Eckert to work on a developer's agreement that doesn't include the water tower. This would be a separate issue. Councilman Longo warned that the Council proceed with caution. He referred to the parking space reduction request recently approved by Council and believes we have lost revenue because of that reduction. Motion amended to direct Mayor Watts and Patti Hicks, Interim City Manager, to negotiate an agreement with CrowlBillingsley Investment Company for the construction of the pedestal water storage facility for the property of SH 121 and with bond counsel, city attorney and any staff members and that a preliminary proposal be brought to Council on June 2 for review - Kovatch; second - Dillard Councilman Avey asked Mr. Kovatch to withdraw his motion until a work session can be scheduled. Discussion followed regarding the existing legged water towers and the proposed pedestal water tower. Councilman Dillard noted that Mr. Billingsley had committed to dedicating a half-acre for construction of the tower. Councilman Stanwick agreed with reviewing this agreement, however, it is not a binding document. The next action would be to proceed with a binding agreement. Councilman Longo suggested that the developer building the water tower may not be legal with the pending litigation with Eastvale. Councilman Avey commented that the work session is necessary since she is not comfortable with paying back within one year for the cost of construction. Ms. Hicks added that if Council authorized the mayor and city manager to negotiate, the agreement should be brought back to the Council, not in a work session to renegotiate, but to consider. Otherwise there is no need to direct the mayor and interim city manager to negotiate. Councilman Avey stated she is not willing for others to work the City's deals. She would like the Council to do the negotiating. Councilman Kovatch stated he had confidence that the mayor and interim city manager were capable of negotiating the agreement. He continued that Mr. Billingsley has waited seven months during the pending litigation with no progress made toward development. Discussion followed regarding time frame of construction of the tower. Mayor Watts asked the Council to establish a "not-to-exceed" amount since this project could be expensive. Councilman Longo added that he doesn't think Mr. Billingsley will break ground until the lawsuit is settled with the railroad. Councilman Dillard commented that timing is critical right now. Motion to have Council direct the Mayor and Interim City Manager first determine legality and then negotiate an agreement with Crow/Billingsley whereby the water tower on the property located south of SH 121 is constructed in timely fashion and the agreement brought back to Council for review on June 2 - Kovatch, second - Dillard Councilman Longo has heard rumors that if the Council does not move in an appropriate fashion for Mr. Billingsley, he'll take his property to Carrollton. Councilman Longo commented he does not wish to be pressured by a developer, and if he thinks a better deal exists in Carrollton or any other city, he should proceed. 15 00 5C. 4 Motion failed with the following roll call vote: Ayes - Stanwick, Dillard, Kovatch Nos - Longo, Henville-Shannon, Avey, Watts Mayor Watts stated it was consensus of Council that action would be taken to determine legality of the proposal. Councilman Kovatch stressed his confusion and did not agree with the delay. With no further business to address, the meeting was adjourned at 12:45 a.m. APPROVED: Mary Blairk-Watts, ~I~ayor ATTEST: 'Ru~ Devli~,-Deputy City Secretary 16