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1998-05-18 CC MinutesCITY OF FARMERS BRANCH CITY COUNCIL REGULAR MEETING MAY 18, 1998 COUNCIL CHAMBER CITY HALL 7:30 P.M. The following members of the City Council were present: Mayor Mayor Pro Tern Bob Phelps Charlie Bird Berry Grubbs Bill Moses James Robbs The following member of the City Council was absent: Calla Davis 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 Equipment Services Director of Finance Director of Parks & Recreation Library Director Police Chief Fire Chief Director of Public Works Assistant to the City Manager Assistant to the City Manager Traffic Engineer Recording Secretary Richard L. Escalante Linda Groomer John F. Burke John Boyle Cindee Peters Donna Huerta Norma Nichols Tom Scales Michael Spicer Jerry Murawski Don Moore Charles Cox Jeff Fuller Mary Jane Stevenson Jimmy Fawcett Kyle King Mark Pavageaux Margaret Somereve John Roach Dave Davis Suzanne Reynolds Mayor Phelps called the City Council Meeting of May 18, 1998 to order at 7:35 P.M. The meeting was televised. A.1 INVOCATION. Councilman Grubbs gave the invocation and Mayor Pro Tern Bird led the pledge of allegiance to the flag. Volume 76, page 119 MAYOR'S ANNOUNCEMENT Mayor Phelps announced that Councilwoman Davis was not present due to family illness. A.2 PROCLAIM THE WEEK OF MAY 16-22, 1998 AS "NATIONAL SAFE BOATING WEEK", AND PRESENT PROCLAMATION TO LEE DRYJA, OF THE U.S. COAST GUARD AUXILIARY. Mayor Phelps read a proclamation and presented a proclamation to Mrs. Lee Dryja of the U.S. Coast Guard Auxiliary. A.3 CONSIDER ACCEPTING DONATION OF $2,000 FROM THE COMMUNITIES FOUNDATION OF TEXAS, JERRE B. AND KATHLEEN ELLIOTT FUND, FOR THE HISTORICAL PARK AND TAKE APPROPRIATE ACTION. Mr. Charlie Bond presented a $2,000 check to the City of Farmers Branch for acquisition of furnishings for the Historical Park. A motion by Councilman Grubbs, seconded by Councilman Robbs, all voting "aye," accepted a donation of $2,000 from the Communities Foundation of Texas, Jerre B. and Kathleen Elliott Fund, for the Historical Park with appropriate thank you letter. A.4 CONSIDER ACCEPTING DONATION OF $1,500 FROM THE CIVIC LEAGUE FOR THE HISTORICAL PARK AND TAKE APPROPRIATE ACTION. Ms. Dolly Graul and Mrs. Ruth Ann Parish presented a $1,500 check from the Civic League to the City of Farmers Branch for the preservation and maintenance of the scrapbooks donated to the Historical Park archives. A motion by Mayor Pro Tern Bird, seconded by Councilman Moses, all voting "aye," accepted donation of $1,500 from the Civic League for the Historical Park with appropriate thank you letter. A.5 PRESENTATION OF SERVICE AWARDS. Mayor Phelps presented a fifteen year employee service award to Paul Lunsford of the Public Works Department. A.6 PRESENTATION OF BOARD APPLICATIONS. There were no applications presented. A.7 REPORT ON STUDY SESSION ITEMS. Mayor Phelps gave a brief summary of the items discussed in Study Session held prior to the regular meeting. Volume 76, page 120 CONSIDER THE FOLLOWING AS CONSENT ITEMS AND TAKE THE APPROPRIATE ACTION B.1 - B.S. 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 Bird, seconded by Councilman Moses, all voting "aye," added items D.1 and D.2 to the Consent Agenda. A motion by Mayor Pro Tern Bird, seconded by Councilman Grubbs, all voting "aye," approved the following items on the Consent Agenda. B.1 APPROVED MINUTES OF CITY COUNCIL MEETING OF MAY 4, 1998. B.2 ADOPTED RESOLUTION 98-067 AUTHORIZING THE MAYOR TO SIGN AMENDMENTS TO THE IMPLEMENTATION AGREEMENTS FOR THE DALLAS COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR EARLY ADDITIONAL FUNDING OF THE SEWER REHABILITATION PROGRAM AND EXPANDING THE TARGET AREA FOR THE CODE ENFORCEMENT PROGRAM. B.3 APPROVED THE REQUEST OF AARON RENTS FOR SITE PLAN APPROVAL FOR RENOVATION OF AN EXISTING WAREHOUSE DEVELOPMENT AND ON-PREMISE SIGN AT 14105 INWOOD ROAD AND WITHIN THE PLANNED DEVELOPMENT NO. 53. B.4 APPROVED THE REQUEST OF BCK AND PARTNERS, L.P. FOR FINAL PLAT APPROVAL OF INTERNATIONAL PLACE LOCATED ALONG THE WEST SIDE OF NORTH DALLAS PARKWAY 200 FEET NORTH OF SPRING VALLEY ROAD AND WITHIN PLANNED DEVELOPMENT DISTRICT NO. 53. B.5 APPROVED THE REQUEST OF PINNACLE HOTELS L.L.C. FOR FINAL PLAT APPROVAL OF FAIRFIELD INN LOCATED ALONG THE NORTH SIDE OF PARKSIDE CENTER BOULEVARD 200 FEET WEST OF MIDWAY ROAD AND WITHIN PLANNED DEVELOPMENT DISTRICT NO. 64. D.1 ADOPTED ORDINANCE NO. 2387 PROHIBITING TRUCK TRAFFIC ON GARDENBROOK DRIVE FROM MARSH LANE TO OAKBROOK PARKWAY, AND PROVIDING FOR A PENALTY CLAUSE AND PROVIDING FOR A SEVERABILITY CLAUSE. AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, PROHIBITING TRUCK OR TRAILER EXCEEDING MANUFACTURER'S RATED CARRYING CAPACITY OF ONE TON ON GARDENBROOK DRIVE BETWEEN MARSH Volume 76, page 121 LANE AND OAKBROOK PARKWAY; PROVIDING FOR INSTALLATION OF SIGNS; PROVIDING A PENALTY CLAUSE; AND PROVIDING A SEVERABILITY CLAUSE. D.2 ADOPTED ORDINANCE NO. 2388 PROHIBITING PARKING ON PROTON ROAD FROM SPRING VALLEY ROAD TO MIDWAY ROAD, AND PROVIDING FOR A PENALTY CLAUSE AND PROVIDING FOR A SEVERABILITY CLAUSE. AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, PROHIBITING PARKING ON NORTHBOUND, SOUTHBOUND, EASTBOUND, AND WESTBOUND PROTON ROAD FROM MIDWAY ROAD TO SPRING VALLEY ROAD; PROVIDING A PENALTY; AND PROVIDING A SEVERABILITY CLAUSE. Mayor Phelps read the Consent Agenda items to the home audience and home viewers. CA CITY MANAGER REPORTS. City Manager Richard Escalante presented an informative report on the status of various projects and activities in the City. C.2 PUBLIC HEARING: CONSIDER THE REQUEST OF THE LEDDY COMPANY TO AMEND ARTICLE 8-400-5(B) OF THE COMPREHENSIVE ZONING ORDINANCE PERTAINING TO STRUCTURAL AND BUILDING REQUIREMENTS FOR RESTAURANTS SELLING ALCOHOLIC BEVERAGES WITHIN A HOTEL AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. The Comprehensive Zoning Ordinance allows a restaurant located within a hotel to apply for a specific use permit to sell alcoholic beverages only when the restaurant itself satisfies a variety of criteria and the hotel it is located in has no less than 200 guest rooms or 120 guest suites. The Leddy Company is requesting that the Comprehensive Zoning Ordinance be amended to allow a restaurant within a hotel to apply for a specific use permit to sell alcoholic beverages when the hotel contains at least 160 guest rooms and has meeting space in excess of 2,000 square feet. No other changes are proposed. The proposed amendment would not obligate the City to approve any specific use permit for a hotel that meets the requirement of 160 rooms and 2,000 square feet of meeting space. It would, however, provide the opportunity for a restaurant located within such a hotel to request a specific use permit to sell alcohol. Current regulations preclude any such application being made. The Planning and Zoning Commission, by unanimous vote, recommends the Comprehensive Zoning Ordinance be amended as requested. Mayor Phelps opened the public hearing. Volume 76, page 122 Mr. Drake Leddy, San Antonio, stated the Leddy Company is proposing to develop a Doubletree Hotel south of LBJ on Luna Road adjacent to the Parkwest Omni Hotel. He stated the Leddy Company has requested a change in the zoning ordinance as previously described by Mayor Phelps. Mr. Leddy asked for Council's consideration in this matter and stated he would be available to answer any questions the council may have. A motion by Councilman Moses, seconded by Councilman Robbs, all voting "aye," closed the public hearing. There being no further discussion, a motion by Councilman Robbs, seconded by Councilman Moses, all voting "aye," adopted the following captioned Ordinance No. 2386 amending Article 8-400-5(b) of the Comprehensive Zoning Ordinance as requested. AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AMENDING ORDINANCE NUMBER 1986 AS HERETOFORE AMENDED, SAME BEING AN AMENDMENT TO THE CITY'S COMPREHENSIVE ZONING ORDINANCE; AMENDING SECTION 8-400-5(b); PROVIDING A PENALTY OF FINE NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00); PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR INJUNCTIVE RELIEF; AND PROVIDING AN EFFECTIVE DATE. C.3 PUBLIC HEARING: CONSIDER THE REQUEST OF THE NORTH CENTRAL TEXAS FARMERS CORPORATION TO GRANT A SPECIFIC USE PERMIT-INTERIM USE FOR A FARMERS MARKET AT 12731 DENTON DRIVE AND WITHIN THE PLANNED DEVELOPMENT NUMBER 70 (PD-70) ZONING DISTRICT AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. The North Central Texas Farmers Corporation has applied for a Specific Use Permit-Interim use to allow a farmers market to operate at 12731 Denton Drive each Wednesday and Saturday from 8:00 a.m. until approximately 2:00 p.m. from May 19, 1998 through December 31, 1998. The proposed site is a City-owned vacant lot, 0.82 acres in area, having frontage on both Denton Drive and Rossford Street. The site is adjacent to the southside of the existing Dart park and ride. It is the same location at which the same organization operated a farmers market last year. A produce display area, 2,400 square feet in area, is to be located along the north property line, abutting the Dart park and ride. The display area will accommodate 12 farmers. A lease agreement between the City of Farmers Branch and the North Central Texas Farmers Corporation is a companion item on this agenda. The Planning and Zoning Commission, by unanimous vote, recommends Volume 76, page 123 the specific use permit-interim use be approved as requested. Mayor Phelps opened the public hearing. Mr. Samuel Mitchell, Rt. 3, Box 772, Nacona, Texas, stated the farmers market is looking forward to selling their produce in Farmers Branch and will open May 30" if their request for a specific use permit is approved. A motion by Mayor Pro Tern Bird, seconded by Councilman Grubbs, all voting "aye," closed the public hearing. Mayor Pro Tern Bird stated the farmers market had great produce last year and he was glad to hear this market is back this year. The City Council discussed adopting different hours then previously presented. There being no further discussion, a motion by Mayor Pro Tern Bird, seconded by Councilman Grubbs, all voting "aye," approved the following captioned Ordinance No. 2389 granting the specific use permit-interim use for a farmers market as requested with operating hours to be from 7 a.m. until 5 p.m. 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 - INTERIM USE BEGINNING ON MAY 19, 1998 AND EXPIRING ON DECEMBER 31, 1998 TO ALLOW THE OPERATION OF A FARMERS MARKET WITHIN A PLANNED DEVELOPMENT NUMBER 70 ZONING DISTRICT (PD-70) AT 12731 DENTON DRIVE; PROVIDING FOR CONDITIONS OF OPERATION; PROVIDING FOR A PENALTY OF FINE NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE. C.4 PUBLIC HEARING: CONSIDER THE REQUEST OF MONTESSORI SAINTS, INC., FOR A DENOMINATIONAL PRE-SCHOOL AT 2936 AND 2938 SUNBECK CIRCLE AND WITHIN THE ONE-FAMILY RESIDENTIAL DISTRICT-2 (R-2) AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. The subject property is a 1.0 acre tract of vacant land located on the south side of Sunbeck Circle, 320 feet east of Josey Lane. The applicant would like to develop the site as a denominational Montessori pre-school serving 75 children aged 6 years and under. The school would be sponsored by the Orthodox Church located in Richardson, Texas. Proposed improvements include a 4,950 square foot school building of brick masonry construction. The school building would have the appearance of a two-story residential structure. An outdoor play area, approximately 3,900 square feet in area would be located on the south side of the school building between the structure and Maybrook Drive. Volume 76, page 124 Access to the site would be from Maybrook Drive only. The applicant intends to span the drainage channel between Maybrook Drive and the subject property. A brick masonry sign 24 square feet in area and 4 feet in height would be erected on the school property facing Maybrook Drive. The proposed use is not consistent with the goals and objectives of the Comprehensive Plan. The Planning and Zoning Commission, by unanimous vote, recommends that the specific use permit for the denominational Montessori pre-school be denied. Mayor Phelps opened the public hearing. Mr. Robert Gaind, 3518 Peyton Drive, Dallas, representing Montessori Saint Academy stated the Montessori Saint Academy will be an American Montessori Society Academy Educational Facility for young children. Mr. Gaind gave the following details: the facility will be connected to a commercial street; play area will be located behind the building and fully fenced; parking area will be fully screened; there will be a buffered lot on the east for future development of a residence; and the school will obtain a Maybrook address. Mr. Gaind stated there is less than ten percent opposition from landowners within the 200 foot radius. He stated he was open for suggestions for any improvements to the property. He also explained there are public schools and preschools located in residential areas throughout the country. Mr. Gaind stated he would be available to answer questions or concerns the Council may have. Mrs. Nancy Wilson, Colwell Banker, stated she has been the listing agent for this property for several years. She stated she feels the Planning and Zoning Commission have not been forthright in its dealing with Mr. Gaind. She stated Mr. Gaind had been lead to believe that the school could occupy the space given the proper guidelines for the site plan were met. Mrs. Wilson stated the only contemplated objection that was perceived was additional traffic on Sunbeck Circle which is understandable. Therefore, an entry from Maybrook was designed. Mrs. Wilson stated at the Planning and Zoning meeting last week, the preservation area was mentioned. She asked the Council for a copy of the documentation regarding the preservation of Sunbeck Circle, the day it was enacted and why it was enacted. She stated at no time during the process of this request was a preservation area mentioned until last week. Mrs. Wilson also stated at the meeting last week there were ten property owners objecting to the school. There are a total of 23 Volume 76, page 125 property owners on Sunbeck Circle, therefore she would like it affirmed that the thirteen remaining property owners did not object and be counted. Giving a tally of 13 to 10 in favor of the request. Mrs. Wilson stated she feels the proposed school would be a benefit to the area and would not represent additional traffic to Sunbeck Circle. She stated it would be a benefit in terms of increasing property values, additional tax base, providing an excellent school service open to the community, as well as providing an authentic Montessori school. Mrs. Wilson stated she would be available to answer any questions and she would like to see the final decision tabled until all the information is received. Mr. Montemayor, 2940 Sunbeck Circle, stated he has lived in Farmers Branch for fifteen years. He stated he appeared before the Planning and Zoning Commission and presented letters from all individuals that could not attend the meeting that were in opposition to the request. He stated his neighborhood is a unique area and believes that is why it was established as a preservation area. Mr. Montemayor stated the fact that there was no objection within a 200 foot radius is because there are churches located across the street, and at the corner, one resident is in a nursing home, and the house adjacent to the property was just purchased and is being renovated. Mr. Montemayor stated residents take great pride in their neighborhood appearance. He stated he and his neighbors are familiar with Montessori schools and do not object to education. They feel a residential area needs to remain residential. Mrs. Martha Todd, 15930 Club Crest, Dallas, stated she is a property owner and previously lived on Sunbeck for five years and never knew the area was preserved for homes only. She also stated there is a brick wall behind her property that belongs to the City and it is in need of repair and she would like for the City to take care of it. Mrs. Todd stated the reason her property does not sell is because it is close to LBJ Freeway. She stated she feels this location would be a good site for the Montessori school and wished the Council would take this into consideration. Mrs. Barbara Summers, 406 6th Polk, Richardson, stated she is the Real Estate Agent representing Mr. Gaind in the purchase of the property. She stated on February 24, 1998, she was faxed a proposed site plan submission guide and an application for a specific use permit. She stated she was informed that Sunbeck Circle was zoned R-2 which allows denominational school or public school but a specific use permit must be obtained to allow the use. Mrs. Summers stated she and Mr. Gaind have been working with the City to adhere to all of the comments made regarding the proposal to the site plan. She also stated she had not heard anything about a Volume 76, page 126 preservation neighborhood until last week at the Planning and Zoning meeting. Mrs. Summers read a paragraph from the planning report submitted by city staff. She stated with the comments made, Mr. Gaind decided to go to the expense to construct a bridge to access Maybrook so there would not be increased traffic on Sunbeck Circle. Mrs. Summers stated she feels the school would not interfere with residents and requests that the Council approve the specific use permit. Mrs. Jane Nickless, 2965 S. Sunbeck, stated she feels having someone come in and build homes on Sunbeck Circle would be beneficial to the area. A motion by Councilman Moses, seconded by Councilman Robbs, all voting "aye," closed the public hearing. Councilman Moses asked the audience members how many lived on Sunbeck Circle. A count was taken. Mrs. Todd stated she owns property on Sunbeck Circle and has never received a notice on this request. Councilman Moses asked Mrs. Todd if she had a Farmers Branch address. Mrs. Todd replied she has a Dallas address. Mayor Phelps asked about the statement that the school would add to the Farmers Branch tax base. Mr. Charles Cox, Finance Director, stated educational and religious institutions are exempt from property taxes. Mr. Gaind stated his business is for profit enterprise and there are no IRS exemptions for nonprofit status, it is a corporation. Mayor Phelps asked if they would be paying taxes. Mr. Gaind replied yes they would be paying taxes. Mayor Pro Tern Bird stated the location is the concern. He feels Montessori schools are excellent with great qualifications and would be an asset to Farmers Branch. However, the location of the school is an issue and would like for Mr. Gaind to consider another location in Farmers Branch. Mr. Gaind stated as a business owner he has to consider finances, economic viability, and commercial tightness of the market. Councilman Grubbs asked what was the amount of the anticipated investment for land and buildings. Volume 76, page 127 Mr. Gaind stated there are three factors involved in the investment; (1) land cost, (2) building cost, and (3) material cost. The budget would be one-half million dollars. Councilman Grubbs asked if it included the bridge. Mr. Gaind replied yes. Councilman Grubbs asked what was the cost of the bridge. Mr. Gaind replied $50,000. Councilman Grubbs stated he is a great supporter of Montessori schools and would like to see it located in Farmers Branch but not at this location. Councilman Grubbs stated there has been a great deal of effort made to screen the Sunbeck area from the commercial area by constructing a brick wall. He stated he would be voting to deny the specific use permit but will encourage Mr. Gaind to work with City staff to find another suitable location in a more acceptable area in Farmers Branch. Mr. Gaind stated if Council desires he would place a wall around the building. Councilman Grubbs stated there are many things that could be done to the building but there are traffic issues and utilization issues that need to be addressed. He stated he has a problem with the incompatibility of usage. Mr. Gaind stated he has several schools in residential neighborhoods, the nearest being at Church Hill Way between Hillcrest and Preston Road, south of LBJ Freeway. The school has been there for two years. He stated the homes range from $300,000 to $600,000 and when sold are on the market for only 30 to 60 days. There being no further discussion, a motion by Councilman Grubbs, seconded by Mayor Pro Tern Bird, all voting "aye," denied the Specific Use Permit for Montessori Saints, Inc. as recommended by the Planning and Zoning Commission. C.5 PUBLIC HEARING: AMENDMENT TO THE 1997-98 OPERATING BUDGET. Mayor Phelps presented the following information. A public hearing is being conducted to consider an amendment to the 1997-98 operating budget. This amendment includes $720,000 for a proposed dividend and associated costs. Mayor Phelps opened the public hearing. There being no comments from the public, a motion by Councilman Grubbs, seconded by Councilman Moses, all voting "aye," closed the Volume 76, page 128 public hearing. C.6 CONSIDER ADOPTING RESOLUTION NO. 98-069 PROVIDING FOR THE ACCEPTANCE OF THE REVIEW AND ANALYSIS OF FISCAL CONDITION OF THE CITY'S GENERAL FUND AS DISCUSSED WITH CITY COUNCIL ON MARCH 16, 1998, AND DECLARE THAT THE CONDITIONS THAT MUST BE COMPLIED WITH TO ENABLE THE DETERMINATION AND DECLARATION THAT A SURPLUS EXISTS IN THE CITY'S GENERAL FUND HAVE BEEN MET, AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. Ordinance No. 2296, approved February 3, 1997, provided for a review and analysis of the fiscal condition of the City's General Fund on an annual basis and established a framework for declaring a dividend. In 1997, the City became the first municipality in the country to declare a dividend and issue checks to taxpayers totaling $560,200, which effectively reduced City property taxes by 4.6%. On March 16, 1998, the City Council conducted a review and analysis of the fiscal condition of the City's General Fund. This review determined that a General Fund surplus exists and that the criteria necessary to declare a dividend have been met. Dividends checks to taxpayers, both residents and businesses of Farmers Branch, will total $710,000, which is equivalent to two cents of the tax rate or a 4.6% reduction in the taxpayer's City property tax bill. Checks to qualified homeowners would average $14.26.The dividend would be distributed in proportion to the property taxes paid in the 1996- 97 fiscal year. The money for the dividend comes from a $1.7 million addition to General Fund balance which occurred during the 1996-97 fiscal year. This addition is after adjustments were made for dividend and dividend projects approved last year. The addition to fund balance came from both increased revenues and from cost savings made by operating departments throughout the City. 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. Volume 76, page 129 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. 2393, provides for the declaration of a dividend from additions to General Fund balance which occurred during the 1996-97 fiscal year. A budget amendment for the 1997-98 fiscal year is required in order to appropriate funds for the dividend. A public hearing and budget amendment ordinance are scheduled for tonight's City Council meeting. If each of these ordinances are approved by the City Council, dividend checks are expected to be in the mail by the end of June 1998. Staff recommends the adoption of Resolution No. 98-069 accepting the review and analysis of the City's fiscal condition. There being no discussion, a motion by Councilman Moses, seconded by Councilman Robbs, all voting "aye, adopted Resolution No. 98-069 accepting the review and analysis of the City's fiscal condition. C.7 CONSIDER ADOPTING ORDINANCE NO. 2393 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 1996 TAX YEAR AND DECLARING AN EFFECTIVE DATE, AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. Ordinance No. 2296, adopted by the City Council on February 3, 1997, established the framework for declaring a dividend to the taxpayers of Farmers Branch. Resolution No. 98-069 provided for the City Council's acceptance of the review and analysis of the City's General Fund and determined and declared that based on the City's most recent certified audit a surplus does exist. In complying with the procedures outlined in Ordinance No. 2296, Ordinance 2393 declares a dividend of $710,000 and provides for the distribution of funds to taxpayers based proportionately upon the 1996 ad valorem taxes paid. Staff recommends the adoption of Ordinance No. 2393 declaring tax dividend payments. Mayor Phelps stated the City of Farmers Branch was the first city to issue a dividend, now it is the first city to issue a dividend two years in a row. There being no further discussion, a motion by Councilman Robbs, Volume 76, page 130 seconded by Councilman Grubbs, all voting "aye," adopted the following captioned Ordinance No. 2392. 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 1996 TAX YEAR AND DECLARING AN EFFECTIVE DATE. C.8 CONSIDER ADOPTING ORDINANCE NO. 2394 TO AMEND THE CITY'S 1997-98 AMENDED OPERATING BUDGET, DIRECT THAT CITY EXPENDITURES BE MADE IN ACCORDANCE WITH THE BUDGET AS AMENDED, AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. A public hearing was conducted at tonight's meeting to consider amendments to the 1997-98 amended budget. This amendment includes $720,000 for a dividend and costs associated with dividend issuance. This ordinance amends the 1997-98 amended operating budget to reflect a dividend from surplus revenues. City staff recommends the adoption of Ordinance No. 2394 to amend the City's 1997-98 amended operating budget to reflect a dividend from surplus revenue. There being no discussion, a motion by Mayor Pro Tern Bird, seconded by Councilman Grubbs, all voting "aye," adopted the following captioned Ordinance No. 2394 to amend the City's 1997-98 amended operating budget to reflect a dividend from surplus revenue. AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, AMENDING THE CITY'S 1997-98 AMENDED OPERATING BUDGET TO REFLECT A DIVIDEND FROM SURPLUS REVENUE AND DIRECT THAT CITY EXPENDITURES BE MADE IN ACCORDANCE WITH THE BUDGET AS AMENDED. C.9 CONSIDER ADOPTING ORDINANCE NO. 2391 ESTABLISHING THE MAXIMUM PERMITTED EQUIPMENT AND INSTALLATION RATES CHARGED BY TCI CABLEVISION OF DALLAS, INC. AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. The City must determine if the equipment and installation rates offered by TCI exceed the maximum permitted rates allowed by federal rate regulations. City Staff and C2 Consulting Services, Inc. have completed reviewing the rate justification submitted by TCI. C2 Consulting has determined that TCI's actual equipment and installation rates are above the maximum permitted rates allowed by federal regulations. The City Council can only determine the maximum permitted rates allowed. TCI has the option to implement an operator selected rate as long as it does not exceed the maximum permitted rates. The City Volume 76, page 131 Council has no direct authority over the operator selected rates. TCI has chosen to implement operator selected rates that are lower than the maximum permitted rates. The only increase will be for addressable converters needed for expanded basic and compressed digital services. Those rates will increase from $3.00 to $3.25. Proposed Ordinance No. 2391 establishes the maximum permitted equipment and installation rates TCI is permitted to charge subscribers June 1, 1998. Staff recommends that Ordinance No. 2391 be adopted establishing the maximum permitted equipment and installation rates that TCI can charge subscribers effective June 1, 1998. Mrs. Connie Cannady, president of C2 Consulting Service , 2801 Pencross, Dallas, stated she would provide an overview of the rate regulation arena and the authority the city has. She stated the city has the authority to regulate rates for basic service equipment and installation charges. Mrs. Cannady stated the federal government has the authority to regulate expanded service charges and the digital service is unregulated. Mrs. Cannady stated C2 Consulting was retained by the City to review the March 1, 1998, filing of form 1205 rate change request by TCI Cablevision. Mrs. Cannady stated after the review, C2 Consulting is recommending the maximum permitted rates which are lower than TCI's maximum permitted rates be adopted. This recommendation is based on differences in the development of the rates between C2 Consulting and TCI Cablevision. Mrs. Cannady stated it appeared TCI included installation and equipment charges twice. She stated she would be available to answer any questions the Council may have. Mrs. Nancy Murphy, Director of Regulatory Affairs, TCI Central Division, 4700 South Syracuse, Denver, Colorado, stated TCl is requesting minor adjustments to their pricing for equipment and installation charges in Farmers Branch. She stated TCI is requesting a change in pricing for addressable converters. She stated they are not requesting a change for installation or remote charges. She stated TCI has been fully responsive to the request of C2 Consulting. She stated all other issues have been addressed and respectfully request the City Council approve TCI's rate changes. Mrs. Murphy stated there are still issues in regard to the filing of the maximum permitted rates and operator selected rates. She stated TCI would like to see the Council adopt the operator selected rates in its ordinance. She suggested adding language to the ordinance that would permit TCI to implement the operator selected rates as filed, as the City approved maximum permitted rates. Mrs. Margaret Somereve, Assistant to the City Manager, stated TCI was referring to their operator selected rates and C2 Consulting was referring to the maximum permitted rates. Mrs. Somereve stated the City has Volume 76, page 132 authority to regulate the maximum permitted rates only. If the City authorizes the operator selected rates in lieu of the maximum permitted rates the issue of how TCI aggregates their rates throughout the country would no longer be an issue for Farmers Branch. Councilman Moses asked Mrs. Somereve if she recommended this ordinance. Mrs. Somereve replied she does recommend the ordinance. There being no further discussion, a motion by Councilman Moses, seconded by Councilman Robbs, all voting "aye," adopted the following captioned Ordinance No. 2391 establishing the maximum permitted equipment and installation rates that TCI can charge subscribers effective June 1, 1998. AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, ESTABLISHING THE MAXIMUM PERMITTED EQUIPMENT AND INSTALLATION RATES CHARGED BY TCI CABLEVISION OF DALLAS, INC. FOR JUNE 1, 1998 - MAY 31, 1999. C.10 CONSIDER ADOPTING ORDINANCE NO. 2390 ESTABLISHING THE MAXIMUM PERMITTED BASIC SERVICE CABLE TELEVISION RATES PROPOSED BY TCI CABLEVISION OF DALLAS, INC. EFFECTIVE JUNE 1, 1998 AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. The City must determine if the basic service cable television rate proposed by TCI to be effective June 1, 1997 exceeds the maximum permitted rate allowed by federal rate regulation. City staff and C2 Consulting Services have completed reviewing the rate justification submitted by TCI. The City is permitted by federal regulations to review the maximum permitted basic service level cable television rates proposed by TCI. The City may not set rates for expanded basic, premium or pay-per-view services. If the basic service proposed rate is found by the City Council not to be in compliance with federal rate regulations, the City Council may establish a maximum rate that is consistent with federal regulations. TCI has submitted a maximum permitted rate of $11.08. This submitted rate is a decrease of 80 cents from the current rate of $11 .90. C2 Consulting has submitted a report to the City Council which recommends the establishment of a maximum permitted rate of $10.94. Ordinance No. 2390 establishes the maximum permitted basic service rate that TCI may charge customers at the rate of $10.94. Although, TCI's proposed basic service rate of $11.08 is an 80 cent decrease, expanded basic which cannot be regulated by the City Council will increase from $13.56 to $14.34, a $0.78 increase in cost. Volume 76, page 133 Staff recommends that the City Council adopt Ordinance No. 2390 establishing the maximum permitted basic service cable television rate effective June 1, 1998. Mrs. Connie Cannady, gave a presentation on the base service rates that were developed for 1997, 1998 forecasted a potential rate for 1999 using the TCI method. The presentation demonstrated the incorrect base rate due to the additional six months TCI was allowed to have to true up rates due to a change in the FCC formula. This six month period is called a gap. Mrs. Nancy Murphy stated last year there were two issues before the City Council in regards to basic service rates. An agreement was made with the City to split a seven cent difference and put the issues behind them so there would be no appeals on file with the FCC. She stated as an agreement with the City, TCI would use the $11.90 for the starting rate for this year's filing. Mrs. Murphy stated TCI sent a letter to the City stating their commitment to $11.90 service rate. Mrs. Murphy stated the rate ordinance last year committed to the $11.90, TCI's letter, and C2 Consulting's findings were attached to the ordinance. She stated this was to be TCl's starting basic service rate for the 1997-98 pricing year. Mrs. Murphy stated for the 1998 filing year, C2 Consulting has backed out items that were approved for the 1997 filing. Mrs. Murphy stated that C2 Consulting analysis used the base rates as $11.93. Mrs. Murphy stated this recommendation is clearly incorrect due to the agreement for the 1997 filing. Mrs. Murphy stated for the record their price for basic service was being decreased by 81 cents. She stated what C2 Consulting is recommending is that the Council reduce the cost for basic by 14 cents, for a total of a 95 cent reduction. She stated compared to the increases in the expanded service rate, the reduction is a net of 3 cents from last year. She respectfully requests the City Council approve TCI's filing. Councilman Grubbs asked if the City was going back and renegotiating or appealing the 1997 base rate. Mrs. Somerve replied no, last year's rate stands, the City would not appeal it. Councilman Grubbs stated what is being discussed is the1998 base rate which the consultants say includes items that should have been removed. Mrs. Somereve stated she would refer this question to C2 Consulting. She stated another issue in last year's TCI calculation was interest. She stated that TCI for the previous year had not taken their maximum permitted rate allowed, they took an operator's selected rate. She stated last year at this time TCI came before the Council and wanted to recover interest on monies they choose not to charge customers. She stated the Volume 76, page 134 City felt it was not a good business decision on TCI's part to ask the City to pay for something they chose not to implement. Councilman Grubbs stated it is his understanding that TCI's basic service rate is flawed. He stated the consultant stated it is flawed because TCI had not calculated in the gap number correctly and needs to come back to the $10.94 basic service rate. He asked if this is what is being voted on tonight. Mrs. Somereve replied that was correct. Mayor Phelps asked if last year's rate has anything to do with this year's rate, can the City set a rate every year or do we have to use last year's rate to start from. Mrs. Cannady stated the base rate is a component of the maximum permitted service rate, so the $10.94 is the maximum permitted total with all of the projections in it. She stated you have to start with last year's approved rate and deduct out everything that was put in as a projection to get back to your base rate component for the upcoming year. Mayor Phelps stated the city agreed to the 3 cent difference and wanted to know if it is tied to anything this year. Mrs. Cannady replied you must start with the approved rate and TCI did start with the approved $11.90 rate. She stated the City did not approve or disapprove of the calculations to arrive at $11.90, but did approve the $11 .90 service rate. In order to insure the prior year rates, to get to this year, C2 Consulting took into account the appropriate base rate going forward. C2 Consulting took into account the gap had been incorrectly calculated and was corrected by C2 Consulting. Ms. Somereve reviewed the passage of last years Ordinance No. 2320, she confirmed that C2 Consulting report was attached along with a letter from TCI. Ordinance No. 2320 set the rate to $11.90, the ordinance did not speak to the rate calculations or whether the calculations were approved or not approved. She stated there was no written agreement to exclude the gap issue in future rate filings. Councilman Robbs commented after hearing citizen's complaints about TCI service at three Community Meetings this year, he would like to take exception to the service that was provided by TCI to the citizens of Farmers Branch. There being no further discussion, a motion by Mayor Pro Tern Bird, seconded by Councilman Robbs, all voting "aye," adopted the following captioned Ordinance No. 2390 establishing the maximum permitted basic service cable television rate effective June 1, 1998. AN ORDINANCE OF THE CITY OF FARMERS BRANCH, TEXAS, ESTABLISHING THE MAXIMUM PERMITTED BASIC SERVICE TIER RATES CHARGED BY TCI CABLEVISION OF THE METROPLEX, Volume 76, page 135 INC., FOR JUNE 1, 1998 - MAY 31, 1999. D.1 CONSENT. D.2 CONSENT. D.3 CONSIDER ADOPTING RESOLUTION NO. 98-065 AUTHORIZING THE PUCHASE OF VIDEO SWITCHING EQUIPMENT FOR THE INCIDENT DETECTION AND RESPONSE PROJECT AND TAKE APPROPRIATE ACTION. Mayor Phelps presented the following information. The Incident Detection and Response Project is budgeted in the DART Local Assistance program in the amount of $360,350. Of this amount, $40,000 has been allocated for video switching equipment and video test equipment, which will provide City Staff a means to control and maintain the video traffic monitoring system. The purchase of the video switching equipment will allow for the control and routing of video images from various intersections throughout the City to monitors located at City Hall and other City facilities including the Police and Fire Departments. The test equipment will be used by the traffic engineering technicians to maintain the system. Proposals were received from two vendors following the procedures for high-technology procurement established by State Law. The proposals were evaluated by City staff. Based on the evaluation, a complete proposal was submitted by Alford Media Services, Inc. in the amount of $34,593.95. The City Engineer and the Traffic Engineer recummend adoption of Resolution No. 98-065 authorizing the purchase of video switching equipment for The Incident Detection and Response Project. Mr. Grubbs asked if the video switching equipment is connected with the 1-635 speed indicator signs located along Marsh Lane. Mr. Jerry Murawski, City Engineer, stated video cameras have been installed to monitor traffic at six locations including 1-635 and 1-35E. The purpose of the video switching equipment is to provide for the monitoring and controlling of the cameras at the traffic control center at City Hall during normal working hours, and at the Police Station and Fire Station after hours. Mr. Grubbs stated that the 1-635 speed indicator signs along Marsh Lane are located south of Valley View Lane. He asked if 1-635 speed indicator signs located north of Valley View Lane would be more advantageous. Mr. Murawski said he would have Mr. Dave Davis, Traffic Engineer, look into the possibility of locating additional 1-635 speed indicator signs north of Valley View Lane. Volume 76, page 136 There being no further discussion, a motion by Councilman Grubbs, seconded by Mayor Pro Tern Bird, all voting "aye," adopted Resolution No. 98-065 authorizing the purchase of video switching equipment for The Incident Detection and Response Project. D.4 CONSIDER COUNCIL TRAVEL REPORTS AND REQUESTS AND TAKE THE APPROPRIATE ACTION. Mr. Escalante stated last year he attended the Senior Executive Program at the Kennedy School at Harvard University. He stated the school holds an annual refresher which he attended Thursday through Saturday of last week. Mr. Escalante stated this year the refresher dealt with coordination issues between government, non-profits, and businesses. With special emphasis on economic development and on neighborhood revitalization. He stated he learned a great deal about a program that helps property owners finance renovations. He stated there are a number of programs that he was not aware of until he went through this training. Mr. Escalante stated he has met with staff and they will look into it in more detail. Mr. Escalante stated they spoke about a number of items related to coordination among the other sectors that the City deals with and he found it to be very helpful. D.5 CITIZEN PARTICIPATION. Mrs. Ruth Alhilali, 2901 Sunbeck Circle, stated she was representing her neighbor because he was unable to attend the Council meeting. She read the letter to the Council on behalf of her neighbor Mr. George Ruddell concerning the street drainage on north Sunbeck Circle. Mayor Phelps stated staff will look into the matter and get in touch with Mr. Ruddell. Mr. Nick Korba, 13210 Shahan Drive, stated he would like to thank the City for responding to all his requests over the years. Mr. Korba stated he would like to see all scholarships opened up to all students who reside in Farmers Branch attending private schools, Dallas schools, and Farmers Branch schools. He suggested a committee be set up in the city, chose twenty-five qualified students, and have a drawing for the top student. He stated he feels the city needs to be involved in this area. He also stated he feels students that attend private schools and Dallas schools get left out. Mrs. Joan Talley, 3030 Longmeade, stated there has been two ton trucks, from the construction on Webbs Chapel (assisted living), traveling up and down Onyx and Longmeade. She stated she feels the trucks should stay on Webbs Chapel. Volume 76, page 137 Mrs. Tally stated in the past it had been requested a study be made on the speed on Longmeade and from Webbs Chapel to Dennis. She stated she is now requesting a study for a four way stop sign or traffic bumps at Onyx. She stated it would slow traffic. Mayor Phelps stated this matter will be looked into. Mr. Montemayor, 2940 Sunbeck Circle, stated he donated the easement to the City of Farmers Branch. He would like to see a drainage pipe extend from Sunbeck Circle to Josey Lane. He stated he enjoyed living in Farmers Branch. Mr. Norm Harding, 2859 Joanna Drive, stated a street light in front of his home was leaning and the base needed to be painted. Mayor Phelps stated the City would looking into this matter. Mrs. Jane Nickless, 2965 S. Sunbeck Circle, stated she was told the funds for the drainage on south Sunbeck Circle had been approved. She stated she would like to see something done with the drainage and thanked the Council for all their support. MAYOR PHELPS ANNOUNCED THAT THE ITEMS ON THE AGENDA FOR THE EXECUTIVE SESSION WERE DISCUSSED IN THE 4:30 P.M. STUDY SESSION. MAYOR PHELPS EXPLAINED THE CITY COUNCIL CONVENED INTO EXECUTIVE SESSION AT 7:15 P.M. AND CONCLUDED AT 7:29 P.M. FOR THE GENERAL SESSION. 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 APPOINTMENTS TO THE LIBRARY BOARD. 2. DISCUSS APPOINTMENTS TO THE CHARTER REVIEW COMMITTEE. Mayor Phelps and members of the City Council discussed personnel matters. E.1 b DISCUSS LAND ACQUISITIONS - TEXAS GOVERNMENT CODE - SECTION 551.072 1. DISCUSS LAND ACQUISITION IN AN AREA BOUNDED BY TOM FIELD, EPPS FIELD AND DANNY LANE, AND TAKE APPROPRIATE ACTION. Mayor Phelps and members of the City Council discussed possible land acquisition. E.2 CONSIDER NECESSARY ACTION ON PERSONNEL MATTERS DISCUSSED IN THE EXECUTIVE SESSION. Volume 76, page 138 Mayor Phelps stated the appointments to the Charter Review Committee would be postponed until the June 8, 1998 City Council meeting. Mayor Phelps called for necessary action on personnel matters. A motion by Mayor Pro Tern Bird, a second by Councilman Moses, all voting "aye", moved John Fleming from Alternate Place 2 to Alternate Place 1 and appointed Besty Armstrong to serve Alternate Place 2 for a term to expire on May 1, 1999. E.3 CONSIDER NECESSARY ACTION ON LAND ACQUISITION DISCUSSED IN EXECUTIVE SESSION. Mayor Phelps reported the City Council was updated on land acquisition and no action was necessary. F.1 ADJOURNMENT. A motion by Councilman Grubbs, a second by Mayor Pro Tern Bird, all voting "aye," adjourned the City Council meeting of May 18, 1998, at 9:40 p.m. Mayor IV, r ~ City Secretary Volume 76, page 139