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1997-02-03 CC MinutesCITY OF FARMERS BRANCH CITY COUNCIL REGULAR MEETING FEBRUARY 3, 1997 COUNCIL CHAMBER CITY HALL 7:30 P.M. The following members of the City Council were present: Mayor Bob Phelps Mayor Pro Tern Bill Moses Councilmembers Calla Davis Berry Grubbs Charlie Bird The following members of the City Council were absent: Councilmember Ron Pyle The following members of the City Administration were present: City Manager Assistant City Manager Assistant City Manager City Attorney City Secretary Communication Director Economic Development Director Director of Community Services Director of Planning City Engineer Director of Finance Director of Parks & Recreation Library Director Police Chief Fire Chief Director of Equipment Services Director of Public Works Assistant to the City Manager Recording Secretary Richard L. Escalante Linda Tidwell-Groomer John F. Burke John Boyle Cindee Peters Donna Huerta Norma Nichols Tom Scales Michael Spicer Jerry Murawski Charles Cox Jeff Fuller Mary Jane Stevenson Jimmy Fawcett Kyle King Don Moore Mark Pavageaux Margaret Somereve Suzanne Reynolds Mayor Phelps called the City Council Meeting of February 3, 1997 to order at 7:30 P.M. The meeting was televised. Volume 73, page 104 A.1 INVOCATION. Brother Ketchersid of Farmers Branch Church of Christ gave the invocation and Councilman Grubbs led the pledge of allegiance to the flag. A.2 CONSIDER ACCEPTING A DONATION FROM DALLAS SEMICONDUCTOR TO THE PARKS AND RECREATION DEPARTMENT FOR THE YOUTH SCHOLARSHIP PROGRAM AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. Dallas Semiconductor, 14461 Gillis Road, Farmers Branch, would like to donate $1,500 to the City of Farmers Branch to be used in the Youth Scholarship Program. The donation would allow Farmers Branch youths with special needs to access non-city sponsored programs and activities. The Youth Scholarship Program, which has been in effect since 1992, has allowed Farmers Branch youths to participate in numerous programs and activities including Scouting, athletics, dance and art programs, and school band. The Program has awarded over $10,000 in scholarships and has assisted over 200 Farmers Branch youths. Parks and Recreation Department staff members have worked closely with many organizations that serve young people who live in the City. Potential applicants can contact representatives of the Recreation Division for applications or further information. The Director of the Parks and Recreation Department recommends accepting the donation from Dallas Semiconductor for the Youth Scholarship Program. Mr. Jeff Hannon and Mr. Vin Protho of Dallas Semiconductor, presented Mayor Phelps with a $1,500 check. Mayor Phelps presented Mr. Hannon and Mr. Protho with a plaque for their support in the Youth Scholarship Program. A motion by Mayor Pro Tern Moses, a second by Councilman Grubbs, all voting "aye", accepted the donation from Dallas Semiconductor for the Youth Scholarship Program. A.3 CONSIDER ACCEPTANCE OF DONATION FROM HOME INTERIORS & GIFTS, INC. FOR $4000 TO THE POLICE AND FIRE DEPARTMENTS AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. Home Interiors & Gifts, Inc. has made a contribution of $2,000 each to the Police and Fire, Departments on behalf of their shareholders, associates and employees. It represents Home Volume 73, page 105 Interiors & Gifts, Inc. support and appreciation to the Police and Fire Departments for service to the community. The donation for each department will be used to purchase physical fitness training equipment. The Fire Chief and Chief of Police recommend accepting the $2,000 donations to each department from Home Interiors & Gifts, Inc., to be used to purchase physical fitness training equipment. A motion by Mayor Pro Tern Moses, a second by Councilman Grubbs, all voting "aye", accepted the $2,000 donation to each department from Home Interiors & Gifts, Inc. to be used to purchase physical fitness training equipment. A.4 PRESENTATION OF BOARD APPLICATIONS. Mr. Ruben Rendon, 13240 Veronica, presented an application for the Council's consideration. Mayor Phelps stated Mr. Rendon's first choice would be the Parks and Recreation Board and his second choice would be the Farmers Branch Hospital Authority Board. Councilwoman Davis asked Mr. Rendon to tell the council something about himself. Mr. Rendon stated he is an associate school psychologist and works with the Carrollton/Farmers Branch Independent School District. Mr. Rendon stated he has been on several boards with the school district and in Farmers Branch and is presently a member of the Professional Advisory Board for the Dallas Epilepsy Association. Councilwoman Davis asked Mr. Rendon how long he has lived in Farmers Branch. Mr. Rendon replied he has lived in Farmers Branch for 21 years. Councilman Bird asked Mr. Rendon if he would be willing to serve on another board because the two he requested were not available. Mr. Rendon replied he would be interested in another board. A.5 PRESENTATION OF SERVICE AWARDS. Mayor Phelps presented a fifteen-year employee service award to Kevin Volume 73, page 106 Hickey of Equipment Services. Mayor Phelps presented a twenty-five year employee service award to Corporal Dwight Tutton of the Police Department. A.6 REPORT ON STUDY SESSION ITEMS. Mayor Phelps gave a brief summary of the items discussed in the Study Session held prior to the regular meeting. CONSIDER THE FOLLOWING AS CONSENT ITEMS AND TAKE THE APPROPRIATE ACTION B.1 - B.4 Mayor Phelps stated under the title of consent items are items that are to be considered and action taken that may not need discussion individually. Any member of the City Council or the audience may request to withdraw any item from the consent items and place the item before the Council for full discussion. The concept for the consent items is established in order to speed up discussion for those items that need more time for discussion. A motion by Mayor Pro Tern Moses, a second by Councilman Bird, all voting "aye", approved the following items on the Consent Agenda. B.1 APPROVED MINUTES OF CITY COUNCIL MEETING OF JANUARY 20, 1997. B.2 APPROVED THE REQUEST OF GILLIS THOMAS COMPANY FOR FINAL PLAT APPROVAL OF THE TU TU/BO BO ADDITION. B.3 ADOPTED RESOLUTION NO. 97-021 AWARDING BIDS FOR THE ANNUAL REPLACEMENT OF SMALL EQUIPMENT FOR THE PARKS AND RECREATION DEPARTMENT. B.4 ADOPTED RESOLUTION NO. 97-020 APPROVING A DEVELOPER'S CONTRACT WITH GILLIS THOMAS COMPANY FOR THE TU TU/BO BO ADDITION. C.1 CITY MANAGER REPORTS. City Manager Richard Escalante presented an informative report on the status and happenings of various projects in the City. C.2 PUBLIC HEARING: CONSIDER THE REQUEST OF AT&T WIRELESS SERVICES FOR A SPECIFIC USE PERMIT TO ALLOW A CELLULAR Volume 73, page 107 COMMUNICATIONS ANTENNA TO BE ATTACHED TO THE SIDE OF THE EXISTING WATER TOWER LOCATED AT 3723 VALLEY VIEW LANE, THE NORTHEAST CORNER OF VALLEY VIEW LANE AND MARSH LANE, AND WITHIN THE ONE FAMILY RESIDENCE-2 (R-2) ZONING DISTRICT AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. AT&T Wireless Services plans to improve their cellular telephone system near the Valley View Lane and Marsh Lane intersection by installing a cellular communications antenna on the City of Farmers Branch water tower which is located immediately east of the Police and Courts building at 3723 Valley View Lane. The cellular communications antenna will be compatible in color with the water tower and will include nine (9) panels. An equipment building housing necessary electronic equipment will be placed at the base of the water tower and will be screened from Valley View Lane by the water tower. A cellular communications antenna is permitted within the One-Family Residence-2 zoning district with a specific use permit. The Planning and Zoning Commission, by unanimous vote, recommends the specific use permit for a cellular communications antenna and associated equipment building, at 3723 Valley View Lane, be approved with the following conditions: The permanent equipment building shall be of the same materials as the Justice Center (future Police building) unless otherwise approved by City Staff. 2. AT&T Wireless Services, owner of the antenna and equipment building, shall remove the antenna and associated equipment building and all wires leading to the antenna and equipment building at such time that the antenna and equipment building becomes obsolete and the use is abandoned. Mayor Phelps opened the public hearing. Mr. Mike Marr, 17300 North Dallas Parkway, stated he was in favor of the Specific Use Permit (SUP). A motion by Mayor Pro Tern Moses, a second by Councilwoman Davis, all voting "aye", closed the public hearing. Mayor Phelps stated the City has received several letters opposing this item. Volume 73, page 108 Mayor Phelps stated one of the issues is health hazards and City Attorney John Boyle would explain the issue. Mr. Boyle explained when the Telecommunications Act of 1996 was passed by Congress in January of 1996, Congress did preserve the ability of the cities to manage their right-of-way as it relates to this type of operation. Mr. Boyle stated Congress imposed certain limitations on cities that require no discrimination, no barrier to entry, and requests must be acted on in a reasonable period of time. Mr. Boyle continued stating Federal Law preempts city regulation with regard to health hazards. Mr. Boyle explained the Act states any decision cannot be based on environmental concerns to the extent that the proposed use complies with FCC regulations. Councilman Grubbs stated when this item was before Council on an earlier date, there was discussion on how antennas would be placed on the structure in an unobtrusive manner. He stated staff had photographs to show how antennas had been attached to other water towers. Mayors Phelps made the photographs provided by City staff available for viewing. A motion by Councilman Grubbs, a second by Mayor Pro Tern Moses, all voting "aye", approved the specific use permit for a cellular communications antenna and associated equipment building, at 3723 Valley View Lane by adopting the following caption Ordinance No. 2298. AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AS HERETOFORE AMENDED, SO AS TO GRANT A SPECIFIC USE PERMIT FOR A CELLULAR COMMUNICATIONS ANTENNA AND AN EQUIPMENT BUILDING WITHIN THE ONE FAMILY RESIDENCE-2 (R-2) ZONING DISTRICT AT 3723 VALLEY VIEW LANE; PROVIDING FOR CONDITIONS OF OPERATION; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR PENALTY OF FINE NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000); PROVIDING FOR INJUNCTIVE RELIEF; AND PROVIDING AN EFFECTIVE DATE. Mayor Phelps stated that Councilman Pyle is not present due to illness. C.3 PUBLIC HEARING: CONSIDER THE REQUEST BY THE FARMERS BRANCH CHURCH OF CHRIST TO AMEND ITS EXISTING SPECIFIC USE PERMIT TO Volume 73, page 109 ALLOW ADDITIONAL PARKING, A PLAYGROUND AREA, AND LOCATION OF A BUILDING ADDITION AT 3035 VALLEY VIEW LANE, THE NORTHWEST CORNER OF VALLEY VIEW LANE AND WEBB CHAPEL ROAD, WITHIN THE ONE FAMILY RESIDENCE-4 (R-4) ZONING DISTRICT AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. The Planning and Zoning Commission continued the public hearing for this item to March 10, 1997, to allow the applicant additional time to properly prepare a modified proposal that meets their needs and better addresses concerns voiced by the neighboring property owners. In accordance with the Comprehensive Zoning Ordinance, the City Council must receive a recommendation from the Planning and Zoning Commission before action may be taken on any proposed zoning amendment. Therefore, no action may be taken by the City Council at this time. Staff recommends the public hearing be continued to the March 17, 1997 City Council meeting. A motion by Councilman Grubbs, a second by Councilwoman Davis, all voting "aye", recommends the public hearing be continued to the March 17, 1997 City Council meeting. D.1 CONSIDER ADOPTING ORDINANCE NO. 2296 PROVIDING FOR THE REVIEW AND ANALYSIS OF THE FISCAL CONDITION OF THE CITY'S GENERAL FUND ON AN ANNUAL BASIS; PROVIDING THE CRITERIA THAT SHALL BE CONSIDERED AND THE CONDITIONS THAT MUST BE COMPLIED WITH TO ENABLE THE CITY COUNCIL TO CONSIDER A DETERMINATION AND A DECLARATION THAT A SURPLUS EXISTS IN THE CITY'S GENERAL FUND; PROVIDING FOR THE BASIS FOR AUTHORIZING A DECLARATION TO THE TAXPAYERS AS REFLECTED ON THE CERTIFIED TAX ROLL OF A DIVIDEND ON A PROPORTIONATE BASIS OF A CERTAIN DECLARED SUM OF MONEY; PROVIDING PROCEDURES FOR DISTRIBUTION OF A DIVIDEND; AND DECLARING AN EFFECTIVE DATE. Mayor Phelps presented the following information. On January 20, 1997, the City Manager reviewed with City Council the 1995-96 year-end audited financial results. This review included alternative proposals for use of additions to fund balance. One proposal is the adoption of a private sector concept: the declaration of a dividend. This proposal would issue dividend checks to taxpayers of Farmers Branch totaling $560,200, which is equivalent to two cents of the tax rate. Volume 73, page 110 Checks to qualified homeowners would average $13.92 and the business community, which pays 85% of the property taxes in Farmers Branch, would receive dividends totaling an estimated $475,000. The dividend would be distributed in proportion to the property taxes paid in the 1995-96 fiscal year. The money for the dividend comes from a $1.78 million addition to General Fund balance during the 1995-96 fiscal year. The addition to fund balance came from both increased revenues and from cost savings made by operating departments throughout the City. This ordinance establishes the framework for a dividend plan and outlines the criteria that must be met before a dividend can be declared. The criteria for declaring a dividend include meeting the following: 1) An audit for the prior fiscal year has been completed which details unreserved and undesignated General Fund balances. 2) The City's 90 day fund balance reserve requirement has been met. 3) All multi-year financial objectives are met. 4) The pay-as-you-go capital plan is appropriately funded. 5) Liabilities have been reviewed for appropriate funding. 6) Needs or opportunities which arise after the adoption of the current budget are considered. 7) The prior year addition to the General Fund balance remaining after the above criteria have been met would be available for dividend distribution consideration. 8) Dividends will be paid to taxpayers on an equitable basis. The next City Council agenda item, Ordinance No. 2297, provides for the declaration of a dividend from additions to General Fund balance which occurred during the 1995-96 fiscal year. A budget amendment for the 1996-97 fiscal year will be required in order to appropriate funds for the dividend. A public hearing and budget amendment ordinance will be scheduled for the City Council meeting on February 17, 1997. Dividend checks are expected to be in the mail by the end of March 1997. Staff recommends the adoption of Ordinance No. 2296 establishing a tax Volume 73, page 111 dividend plan. City Manager Richard Escalante presented his report entitled "Municipal Finance-An Alternative Approach." (see Attachment A) Mr. Escalante also read a letter dated February 3, 1997 from Economist Ray M. Perryman, Ph.D., which endorses the plan. Mr. Frank Shor, 2517 Danny Lane, stated he believes every resident, taxpayer, city employee, Mayor and City Council should be pleased these ordinances are being proposed. Mr. Shor stated he endorses the proposal and the City should be proud since this is the first time something like this has been done. Mrs. Carol Dingman, 12223 Glad Acres Drive, echoed Mr. Shor's statement. Mrs. Dingman thanked the Mayor and Council for sharing the revenue windfall the City received from 1995-96. Mrs. Dingman stated the rebate is a good way to give the money back to citizens but suggested maybe taxpayers should be receiving more of the 1.8 million windfall. Mrs. Dingman stated when she was on the Council in the 1980s during good economic times, the Council lowered the tax rate to offset the increase in property values. Mrs. Dingman stated the Council never sent money back because they never collected it in the first place. Mrs. Dingman stated she appreciated the rebate check but it does not substitute for lowering taxes. Mrs. Dingman stated the rebate should be a first step in lowering the taxes next year. Mr. Dave Blair, 3324 Gatwick, stated the rebate is a tremendous effort on the part of the Mayor, City Council, and staff. Mr. Blair stated it shows that Farmers Branch is innovative and what can be done for citizens and businesses of this community. Mr. Blair stated he was pleased to know the checks were going directly to the citizens and businesses. Mr. Blair stated this is much more meaningful whether it be $1 or $16,000. Mr. Blair declared he would donate his rebate check to the Youth Scholarship Services. Mrs. Judy Byrd, 2980 Eric Lane, congratulated the Mayor and Council for the innovative program. Mrs. Byrd also stated she liked receiving a rebate check. Mrs. Byrd asked the Council if the lowest dividend had been calculated. Mr. Escalante replied under this proposal there would not be a check sent out to residents for less than $1. Mrs. Byrd asked if any citizens would receive a rebate check for less than $1. Volume 73, page 112 1 Mr. Escalante stated under the current proposal a citizen would not receive a rebate check if their portion is under $1. Mrs. Byrd asked what has been calculated for the cost, such as staff time, check printing, and postage to receive a $1 rebate check. Mayor Phelps stated there are approximately 10,000 rebates that would be mailed using envelopes and 32-cent stamps, and the cost is estimated to be between $4,000 and $5,000. Mrs. Byrd commented that if a citizen was entitled to a tax credit of only 60 cents they should get their part. She questioned the fairness of those taxpayers not receiving a rebate. Mayor Phelps responded that it would be cost prohibitive to mail rebates to those persons, but perhaps the City could set up a petty cash account for this purpose. Mrs. Byrd stated her proposal is for the City to give all eligible property owners a tax credit rather than a mailed rebate. She stated she would rather see a tax rate decrease than to see this program continue. She stated rebate funds could be used for more street lighting, alley lighting, and one more police officer to each shift. Mrs. Gaile Gatcomb, 2638 Farmers Branch Lane, congratulated the Mayor and City Council. Mrs. Gatcomb believes there is a way property taxes could be lowered in the City of Farmers Branch. Mrs. Gatcomb stated new construction on a property is recorded properly but the new additions are not recorded on the tax rolls. Mrs. Gatcomb stated whoever is recording square footage of each dwelling is not doing it correctly. Ms. Gatcomb also stated she has given Community Services Director Tom Scales information to document the problem. Mr. Escalante stated the establishment of values is not within the jurisdiction of the City of Farmers Branch but is established by the Central Appraisal District. Mr. Escalante stated the City will communicate with the Central Appraisal District relative to this issue to make sure there are not inequities and square footage is recorded properly. Ms. Gatcomb asked when plans are brought to the City with an addition to a dwelling, what happens after that is completed. Mrs. Gatcomb stated there would be approximately 25 percent more taxable square footage if recorded properly. Volume 73, page 113 Mayor Phelps replied the City would look into this issue. Mayor Phelps stated City taxes are based on what the Central Appraisal District appraises. Mayor Phelps stated the City has no control over appraisal of homes. Mr. John Dodd, 12920 Mitchwin, came before the City Council stating good leadership is an attitude that is "can do." Mr. Dodd stated the Council has answered the challenge of his request of September 9, 1996, with imaginative thinking such as the tax dividend, which is outstanding. Mr. Dodd congratulated the Mayor and Council. Mr. Dodd commented the tax man is coming with a tax increase that will be taking place in 1997 due to property reevaluation. Mr. Dodd stated rate reduction is still a viable plan for the upcoming budget. Mr. Dodd asked that the tax dividends not be an excuse for not lowering the tax rate. Mayor Phelps stated Mr. Escalante had stated earlier that the City of Farmers Branch, for the last 10 years, has always prided itself in being number one in many things and striving to be number one in all things. Mayor Phelps also stated he believes the City has accomplished some of these things. Mrs. Virginia Maddox, 2965 Primrose, stated she expressed her opinion on Channel 5 and knew not everyone in Farmers Branch would agree with her but she is entitled to her opinion. Mrs. Maddox commented she and her neighbors walk in the evenings and the streets are very dark. Mrs. Maddox stated she feels the money would best be used for street lights so it would be safer to walk. Mrs. Maddox stated she is very proud of Farmers Branch for being first. Mayor Phelps stated City employees are checking the lights on Primrose Lane tonight. Mr. Dodd suggested maybe citizens would like to return their dividends back to the City and donate to an organization of their choice or for a special project. Mr. Dodd also stated he would donate his dividend to Primrose Lane so they may have their lights. Mr. Dave Blair stated he was sitting with Mr. Jeff Phillips, a TU Electric representative, and stated it is a policy of both TU Electric and the City to provide street lighting. Volume 73, page 114 Mayor Phelps stated the City has already addressed the lights on Primrose but if there is a petition he would be happy to accept it. Mr. Blair stated if it is not clear to residents, street lights are available through both TU Electric and the City. Mr. Blair commented it is usually petitioned by the homeowners to have street lights put in their neighborhood. Mayor Phelps stated TU Electric installs the lights and the City pays a small electric charge. Ms. Maddox stated she started a petition this afternoon and already has 40 names. Mr. William McDaniel, Vice President and General Manager of Quebecor Printing, stated he thinks it is rare to have excess funds and return dividends to citizens and businesses. Mr. McDaniel thanked the Mayor and City Council for managing City business in such a way that funds are available and for having the ability of returning those funds to taxpayers. Mrs. Gatcomb suggested the homestead exemptions should be investigated. She explained that individuals are claiming a homestead exemption and are living out of state. Mr. Escalante stated this came before the Council several meetings previously. Mr. Escalante stated Mr. Ken Queaveaux, former member of the Central Appraisal District Review Appeals Board, addressed the Council on this subject. Mr. Escalante explained the law is quite liberal, and if you leave with the intent to return you can continue to have the homestead exemption. Mayor Phelps read a letter dated February 3, 1997, from Councilman Pyle who is absent due to illness. The letter endorses the payment of dividends to citizens. Mayor Pro Tern Moses explained the City Council and staff have a tight reign, are very conservative, do careful planning, and are able this year to share some of these funds with citizens and businesses. Mayor Pro Tern Moses stated he echoed Councilman Pyle for all of Mr. Escalante and staff's work. Councilman Bird congratulated N planning. Councilman Bird stated 16 times before the next Council Bird stated there is a well-known City says, a small city is leadinc and we are number one." r. Escalante and his staff for such innovative this Council meeting will run approximately meeting for residents to review. Councilman phrase, a small child leads the way," but the the way. This has never been done before Volume 73, page 115 Councilman Grubbs commented that citizens also have a monthly dividend; the City does not charge a monthly service fee on refuse collection as other cities do. Councilman Grubbs stated he is thankful there was a forward-thinking Council for going into the landfill business. Councilwoman Davis stated she wanted to thank Mr. Escalante for looking outside the box and coming up with new and innovative ideas. Councilwoman Davis stated she wished the Council had come up with the idea but they did not. Councilwoman Davis expressed it is a credit to the Council for choosing Mr. Escalante as city manager. Councilwoman Davis stated she was against a tax reduction because of the pay-as-you-go plan and because of the way the city is working. Councilwoman Davis stated the Council asked Mr. Escalante to look at alternatives to a two percent tax decrease. Councilwoman Davis stated in the future if things continue the City may be able to give a larger rebate. Councilwoman Davis stated one item that was not mentioned was the money that will be spent on Police and Fire equipment. A motion by Mayor Pro Tern Moses, second by Councilwoman Davis, all voting "aye", adopted the following captioned Ordinance No. 2296 establishing a tax dividend plan. AN ORDINANCE PROVIDING FOR THE REVIEW AND ANALYSIS OF THE FISCAL CONDITION OF THE CITY'S GENERAL FUND ON AN ANNUAL BASIS; PROVIDING THE CRITERIA THAT SHALL BE CONSIDERED AND THE CONDITIONS THAT MUST BE COMPLIED WITH TO ENABLE THE CITY COUNCIL TO CONSIDER A DETERMINATION AND A DECLARATION THAT A SURPLUS EXISTS IN THE CITY'S GENERAL FUND; PROVIDING THE BASIS FOR AUTHORIZING A DECLARATION TO THE TAXPAYERS AS REFLECTED ON THE CERTIFIED TAX ROLL OF A DIVIDEND ON A PROPORTIONATE BASIS OF A CERTAIN DECLARED SUM OF MONEY; PROVIDING PROCEDURES FOR DISTRIBUTION OF A DIVIDEND; AND DECLARING AN EFFECTIVE DATE. D.2 CONSIDER ADOPTING ORDINANCE NO. 2297 PROVIDING FOR A DIVIDEND FROM THE SURPLUS REVENUE IN THE GENERAL FUND TO THE TAXPAYERS OF THE CITY, AS LISTED ON THE CERTIFIED TAX ROLL FOR THE 1995 TAX YEAR AND DECLARING AN EFFECTIVE DATE. Mayor Phelps presented the following information. The preceding Ordinance No. 2296 established a framework for declaring a dividend to the taxpayers of Farmers Branch. This Ordinance declares a dividend of $560,200 and provides Volume 73, page 116 for the distribution of funds proportionately based upon the 1995 ad valorem tax roll as certified by the Dallas Central Appraisal District on July 25, 1995. Staff recommends the adoption of Ordinance No. 2297 declaring tax dividend payments. Councilmember Grubbs stated he would donate his dividend check to the Youth Scholarship Program of the City. Councilmember Bird also stated he would donate his dividend check to the Youth Scholarship Program. A motion by Councilwoman Davis, a seconded by Mayor Pro Tern Moses, all voting "aye", adopted the following captioned Ordinance No. 2297 declaring tax dividend payments. AN ORDINANCE PROVIDING FOR A DIVIDEND FROM THE SURPLUS REVENUE IN THE GENERAL FUND TO THE TAXPAYERS OF THE CITY, AS LISTED ON THE CERTIFIED TAX ROLLS FOR THE 1995 TAX YEAR AND DECLARING AN EFFECTIVE DATE. Mayor Phelps introduced several individuals from the audience representing some of the major companies in Farmers Branch. Mr. Pete McLaughlin, Area Communications Director of IBM, stated IBM commends the City of Farmers Branch and is very pleased to be a member of the community. Mr. Vin Prothro, Chairman and Chief Executive Officer of Dallas Semiconductor, stated on behalf of himself and shareholders, he would like to commend on its wonderful city management structure that can put together a surplus. Mr. Prothro stated he wanted to commend the City again for a long- term spending plan and also for not going on a spending spree. Mr. Prothro presented the City on behalf of Dallas Semiconductor's shareholders, employees, and himself a check for $15,600, representing their portion of the tax dividend. Mr. Prothro stated he would like these fund to be donated to the Youth Scholarship Program. D.3 REQUEST BY ALFONSO HERRERA TO ADDRESS CITY COUNCIL ON THE CARROLLTON-FARMERS BRANCH SCHOOL ATTENDANCE ZONE. Mayor Phelps presented the following information. This item has been placed on the agenda at the request of Alfonso Herrera. Mr. Herrera would like to Volume 73, page 117 address the City Council concerning the school attendance zones. Mr. Alfonso Herrera, 14312 Tanglewood Drive, stated his three children attend the Carrollton/Farmers Branch Independent School District. Mr. Herrera stated he is concerned with the decisions the Carrollton/Farmers Branch School Board are making. Mr. Herrera expressed his support of the City for looking out for the best interests of the citizens of Farmers Branch. Mr. Herrera stated he does not feel the Carrollton/Farmers Branch School Board is representing citizens of Farmers Branch very well. Mr. Herrera stated the City has done an excellent job representing Farmers Branch and he takes his hat off to Mr. Escalante for doing such an excellent job in representing Farmers Branch citizens. Mr. Herrera stated he believes IDRA Consultants firm was the best consulting firm the City could have hired. Mr. Herrera stated if the Council were to go into litigation he would be willing to take a part in it. Mr. Herrera stated before Hispanics were recognized in the Corpus Chrisiti Independent School District, a law suit was filed by the Cisneros family against the school district in 1970. Mr. Herrera stated he knows of all the short comings the Carrollton/Farmers Branch School District has placed upon the children of Farmers Branch. Mr. Herrera stated all they are asking for is diversity, equity, opportunity, benchmarks, and a time frame. Mr. Herrera stated he believes the Carrollton/Farmers Branch School District will not comply. Mr. Herrera stated the decisions the School Board is making will affect the children of Farmers Branch for the next 10 to 25 years. Mr. Herrera stated taxpayers will carry the burden for all uneducated children in the city. Mr. Herrera stated he supports and commends the Council for what they are doing for the citizens but they will need some translations because many of the tax payers do not speak English. Mr. Herrera reiterated if the City goes into litigation, the City could feel free to use his name, and he knows many families with children in the district that will support what the City is doing. City Attorney John Boyle stated the City Council recognized from the outset that this is an extraordinarily serious matter and one that would require much attention. Mr. Boyle stated their firm had associated with James Deatherage, an attorney experienced in school issues, and Kevin O 1 Hanlon of Austin, Texas, formerly in the Attorney General's Office of Texas, Chief Counsel for all Volume 73, page 118 education and litigation, and for several years on the General Counsel for the Texas Education Agency. Mr. Boyle stated they had been working with both attorneys very closely on this issue. He asked Mr. 0, Hanlon to give some of the background and some of the factors that have been considered on this issue. Mr. O'Hanlon reported they had conducted an analysis of the situation with the Carrollton/Farmers Branch Independent School District and had determined that the school district is still under a 1962 court-supervised desegregation order, being Civil Action 9343, styled Betty Jean Rainwater vs. Newman Smith, filed in the fall of 1962 in the court of Judge Sarah T. Hughes. He stated the district did not know they were still under that court order until as recently as the past six months. He stated that under the order, the school district was to file a plan that would eliminate the vestiges of the prior dual school system. This includes all areas of education such as achievement, extra curricular activities, employment, transportation and others. Mr. O, Hanlon reported that the IDRA report noted differentials in assignment of personnel and expenditures per pupil between the schools. Because it appears Carrollton/Farmers Branch Independent School District has not demonstrated equitable expenditure of funds, with fewer dollars spent on low income and minority students, Mr. O'Hanlon stated there could be independent grounds against the district. Further, he stated, other factors such as the location of the new high school and the drawing of the boundaries were very likely to create high minority and non-minority schools, thereby violating their obligation to eliminate the dual school system provision of the desegregation order. Mr. 0, Hanlon stated there were several options the City could consider. The City has already been in negotiations with the district. The Department of Justice could be involved to enforce the prior court order. A complaint could be filed with the Department of Education, which has a Civil Rights Office with enforcement authority. Independent of the court order, because the district received federal funds, they are required to comply with Title VI of the Civil Rights Act, and some action may have been violated there. The City could also consider direct intervention on its own or on behalf of a citizen or citizens whereby injunctive options would be available. Mr. O'Hanlon stated there had been no court ordered busing in more than a decade, and that the courts do not write the plans for the districts. Rather, he explained that the districts are required to submit their own plans to the court to demonstrate how they will meet the factors to show that the dual system has been eliminated. Volume 73, page 119 Councilwoman Davis asked Mr. O'Hanlon to explain (1) tipping and (2) what the requirements are when a district is under a desegregation order versus the requirements when the district is not under a court order. Mr. O'Hanlon explained a concept in civil rights litigation known as "tipping". He explained tipping is a phenomenon that can exist in neighborhood or school district transition. He explained when a school district or campus "tips" dramatically toward one race or another, it can have a tendency to create "flight." For example, if a campus goes 30, 40, 50, or 60 percent minority, it could create "white flight." The reverse has also been shown to be true when the ratios are tipped the other way. In response to Councilwoman Davis's question, Mr. O'Hanlon addressed the requirements when operating under a court order versus no court order. He stated that when there is no prior desegregation order in place, for a district to be in violation, there must be evidence of intentional action that creates a discriminatory system. In the situation such as the Carrollton/Farmers Branch School District where an existing court order has found discrimination and no subsequent court action has declared the district to be unitary, it is not necessary to prove intent. Rather, only the effect of the discriminatory action must be shown, with or without intent. Councilman Grubbs asked Mr. O'Hanlon if he had been in the mediation efforts with the school districts. Mr. O'Hanlon replied that they had been in two sessions with the district. Mr. Herrera asked if the student Asian population could be counted as minority population to justify the minority balance at the new high school. Mr. O'Hanlan replied it depends. They will look at true integration across all cultures of the school district, and the district cannot put one minority against another. A motion by Councilwoman Davis, a second by Councilman Grubbs, all voting "aye", adopted Resolution No. 97-027 pertaining to the Carrollton/Farmers Branch School Attendance Zone. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FARMERS BRANCH, TEXAS, AUTHORIZING AND DIRECTING THE ATTORNEYS FOR THE CITY TO PROCEED WITH PREPARING THE NECESSARY LEGAL ACTION, INCLUDING BUT NOT NECESSARILY LIMITED TO, THAT OF INTERVENING IN THE LAWSUIT STYLED BETTY JEAN RAINWATER ET AL VS. NEWMAN SMITH, ET AL.; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE. Volume 73, page 120 Mayor Phelps called a 5 minute recess, and reconvened the meeting at the end of the recess. DA CONSIDER ADOPTING ORDINANCE NO. 2295 IMPOSING A MORATORIUM ON ZONING AMENDMENTS, SITE PLAN APPROVALS, BUILDING PERMITS, AND CERTIFICATES OF OCCUPANCY RELATIVE TO THE CONSTRUCTION OR OCCUPANCY OF SEXUALLY ORIENTED BUSINESSES, RETAIL STORE SALES CONSISTING PRIMARILY OF SPECIALTY AND NOVELTY ITEMS, BUSINESSES ENGAGED IN TATTOOING, BODY PIERCING OR SCARRING, AND CONDOM SHOPS OR OTHER BUSINESSES ENGAGED IN THE SALE OR DISPLAY OF SEXUALLY RELATED PRODUCTS OR MATERIALS WITHIN THE CITY OF FARMERS BRANCH, TAKING EFFECT FEBRUARY 4, 1997 AND REMAINING IN EFFECT THROUGH AUGUST 4, 1997 AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. The City has in effect three ordinances that regulate sexually oriented businesses. The City also has in effect two ordinances and a resolution that regulate retail businesses that sell products designed to assist in the use and consumption of illegal drugs. The City currently has no specific regulations in place regarding such businesses as tattoo and body piercing shops and condom shops. If these uses cannot be determined to be sexually oriented businesses or specialty and novelty stores as defined under the existing ordinances, the City has limited ability to control their location. Imposing a moratorium on the establishment or expansion of such uses for a period of six months will provide Staff, Planning and Zoning Commission and City Council time to research and develop standards to properly control these uses. City Staff recommends proposed Ordinance No. 2295 be approved which imposes a six-month moratorium on zoning amendments, site plan approvals, building permits and certificates of occupancy relative to the construction or occupancy of sexually oriented businesses, retail store sales consisting primarily of speciality and novelty items, businesses engaged in tattooing, body piercing or scarring, and condom shops or other businesses engaged in the sale or display of sexually related products or materials. A motion by Mayor Pro Tern Moses, a second by Councilman Grubbs, all voting "aye", approved the following captioned Ordinance No. 2295 which imposes a six-month moratorium. Volume 73, page 121 AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, IMPOSING A MORATORIUM ON ALL ZONING AMENDMENTS, SITE PLAN APPROVALS, BUILDING PERMITS AND CERTIFICATES OF OCCUPANCY RELATIVE TO THE CONSTRUCTION OR OCCUPANCY OF SEXUALLY ORIENTED BUSINESSES, RETAIL STORE SALES CONSISTING PRIMARILY OF SPECIALTY AND NOVELTY ITEMS, BUSINESSES ENGAGED IN TATTOOING, BODY PIERCING OR SCARRING, AND CONDOM SHOPS OR OTHER BUSINESSES ENGAGED IN THE SALE OR DISPLAY OF SEXUALLY RELATED PRODUCTS OR MATERIALS WITHIN THE CITY OF FARMERS BRANCH, TAKING EFFECT FEBRUARY 4, 1997 AND REMAINING IN EFFECT THROUGH AUGUST 4, 1997. D.5 CONSIDER ORDINANCE NO. 2294 ISSUING THE ELECTION ORDER CALLING FOR A CITY COUNCIL ELECTION FOR PLACE 3 AND PLACE 5 ON MAY 3, 1997 AND TAKE THE APPROPRIATE ACTION. Mayor Phelps presented the following information. On May 3, 1997, an election for City Council Place 3 and Place 5 will be held at the Farmers Branch Manske Library, 13613 Webb Chapel Road. Place 3 and Place 5 will serve a three-year term. Early voting will be held in city hall beginning April 14, 1997 and ending April 29, 1997. The hours for early voting will be 8:00 a.m. to 5:00 p.m., Monday through Friday. The city hall will be open on Saturday, April 26, 1997 for the convenience of the citizens to vote early. In the event the Council wishes to enter into a joint election contract with Dallas County, it will be necessary to amend the election order at a later date. The City Secretary recommends the issuance of the Election Order by adopting Ordinance No. 2294. A motion by Councilman Bird, a second by Councilwoman Davis, all voting "aye", adopted the following captioned Ordinance No. 2294 for the issuance of the Election Order. AN ORDER CALLING AN ELECTION FOR CITY COUNCIL MEMBERS, PLACE 3 AND PLACE 5. D.6 CONSIDER ADOPTING RESOLUTION NO 97-018 AWARDING THE BID FOR CLEANING AND SEALING OF JOINTS AND CRACKS ON VARIOUS STREETS TO SILVER CREEK CONSTRUCTION, INC. AND TAKE APPROPRIATE ACTION. Volume 73, page 122 Mayor Phelps presented the following information. The Public Works Department administers an annual crack and joint seal program. The goal of the program is to seal 25 lane miles each year. If awarded, the 1996-1997 contract, Cleaning and Sealing of Joints and Cracks on Various Streets will seal approximately 32 lane miles of joints and cracks. Four bids were received and opened on January 21, 1997, and each met specifications. The lowest bid meeting specifications was submitted by Silver Creek Construction, Inc. in the amount of $68,850.00. Funds in the amount of $100,000.00 are available in the Public Works operating budget to finance this year's program. The Director of Public Works recommends adopting Resolution No. 97-018 awarding the bid for cleaning and sealing of joints and cracks on various streets to Silver Creek Construction, Inc. in the amount of $68,850.00. Councilman Bird asked Public Works Director Mark Pavageaux about the discrepancy of price on the four companies that bid the project. Mr. Pavageaux explained the spread between the low bid and the second low bid is actually less than $10,000. Mr. Pavageaux explained I & H Concrete Cutting was intentionally the high bidder. Mr. Pavageaux explained the company stated they had enough business at this time. A motion by Councilman Grubbs, a second by Mayor Pro Tern Moses, all voting "aye", adopted Resolution No. 97-018 awarding the bid for cleaning and sealing of joints and cracks on various streets to Silver Creek Construction, Inc. in the amount of $68,850.00. D.7 CONSIDER COUNCIL TRAVEL REPORTS AND REQUESTS AND TAKE THE APPROPRIATE ACTION. There were no travel requests or reports. D.8 CITIZEN PARTICIPATION. Mr. Nick Korba, 13210 Shahan Drive, stated he received a letter from a lady that lives between Longmeade and Golfing Green Drive complaining about a leak in front of the library. Mr. Korba drove to the library and saw the water leak which has a cap covering it and four flags around it. Mr. Korba stated the lady walks to the library and there are no sidewalks. Mr. Korba stated this lady has called the water department several times and they have not fixed the problem. Volume 73, page 123 Mayor Phelps stated the City would check into this matter. MAYOR PHELPS ANNOUNCED THAT THE ITEMS ON THE AGENDA FOR THE EXECUTIVE SESSION WERE DISCUSSED IN THE 4:00 P.M. STUDY SESSION. MAYOR PHELPS RECESSED THE EXECUTIVE SESSION AT 7:20 P.M. FOR THE REGULAR GENERAL SESSION. THE DISCUSSION BEGAN AT 6:28 P.M. AND CONCLUDED AT 7:20 P.M. FOR THE REGULAR GENERAL SESSION AND RECONVENED INTO EXECUTIVE SESSION AGAIN AT 10:14 P.M. AND CONCLUDED AT 10:40 P.M. TEXAS GOVERNMENT CODE CHAPTER 551 OF THE OPEN MEETING LAW PROVIDES THAT SUCH ITEMS AS PERSONNEL MATTERS, LAND ACQUISITION AND PENDING AND CONTEMPLATED LITIGATION MAY BE DISCUSSED IN CLOSED SESSION. E.1 a DISCUSS PERSONNEL MATTERS - TEXAS GOVERNMENT CODE SECTION 551.074 1. DISCUSS APPOINTMENT TO THE VALWOOD IMPROVEMENT AUTHORITY. Mayor Phelps and members of the City Council discussed appointment to the board as listed above. E.1 b DISCUSS LAND ACQUISITIONS -TEXAS GOVERNMENT CODE SECTION 551.072 1. DISCUSS SALE OF 3.65 ACRES OF CITY PROPERTY ON ALPHA LINK. 2. DISCUSS LAND ACQUISITION OF REAL PROPERTY LOCATED AT 13011, 13021, 13031 AND 13103 ROSSFORD SREET (2450 VALLEY VIEW LANE). Assistant City Manager John Burke and City Engineer Jerry Murawski gave a report on possible land acquisition at various locations. E.1 c DISCUSS PENDING AND CONTEMPLATED LITIGATION - TEXAS GOVERNMENT CODE SECTION 551.071 1. DISCUSS POTENTIAL LITIGATION RELATED TO THE CARROLLTON- FARMERS BRANCH INDEPENDENT SCHOOL DISTRICT ATTENDANCE ZONE ISSUE. City Attorney John Boyle, Attorney Kevin O'Hanlon, and Attorney James Deatherage presented information on the attendance zone issue. E.2 CONSIDER NECESSARY ACTION ON PERSONNEL MATTERS DISCUSSED Volume 73, page 124 IN THE EXECUTIVE SESSION. Mayor Phelps reported the appointment to the Valwood Improvement Authority has been postponed until the February 17, 1997, City Council meeting. E.3 CONSIDER NECESSARY ACTION ON LAND ACQUISITION DISCUSSED IN THE EXECUTIVE SESSION. Mayor Phelps reported City staff updated the City Council on the sale of city property located at Alpha Link. Mayor Phelps called for necessary action on land acquisition. A motion by Councilman Grubbs, a second by Councilman Bird, all voting "aye", approved Resolution 97-022 for determining the necessity of acquiring the property located at 13011, 13021, 13031, and 13103 Rossford Street (2450 Valley View Lane) for use as part of the proposed Denton Drive/Rossford Street extension and improvement project and authorized the use of condemnation or appropriation for acquiring said property and providing an effective date. EA CONSIDER NECESSARY ACTION ON PENDING AND CONTEMPLATED LITIGATION DISCUSSED IN THE EXECUTIVE SESSION. Mayor Phelps reported a resolution pertaining to the school issue was passed under Agenda Item D.3. F.1 ADJOURNMENT. A motion by Councilman Bird, a second by Mayor Pro Tern Moses, all voting "aye", adjourned the City Council meeting of February 3, 1997, at 10:42 p.m. M or City Secretary L Volume 73, page 125