08-27-2002 (City Council) Minutes MINUTES
Wylie City Council
Tuesday, August 27, 2002 — 6:0 0 p.m.
Wylie Municipal Comple::—Council Chambers
2000 State Highway 78 North
Council Present::Cil_:.;:::......... .... .... :.... ..... ... ..... ..... ........ ..:.. ......
ounc woman Reta Allen,Councilman
Joel Scott, Councilman Merrill Young, Councilman J.C.
Worley and Councilman Chris Trout. Mayor John Mondy Councilman Eric Hogue wereabsent. Mayor Pro Tem
Worley presided.
Staff Present: Anthony Johnson, City Manager, Mindy Manson, Assistant City Manager, Brady Snellgrove,
Finance Director; Chris Hoisted, City Engineer; Claude Thompson, City Planner,Dale Jackson,Building Official,
Sam Satterwhite,Director of Economic Development and Barbara Salinas,City Secretary
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Councilman Scott was asked to provide the Invocation and Councilman Young was asked to lead the
Pledge of Allegiance.
None.
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A. Consider and act upon an amendment to Chapter 110, Section 110-168 (b) (1) of the Code of
Ordinances to establish certain School Zones.
B. Consider and act upon an Ordinance adopting the 2000 edition of the International Energy
Conservation Code and repealing all conflicting ordinances.
C. Consider and act upon an Ordinance adopting the 2000 edition of the International Residential
Code and repealing all conflicting ordinances.
Councilman Scott made a motion to approve Consent Agenda Items A, B and C. Councilwoman Allen
seconded the motion. A vote was taken and the motion was approved, 5-0. Mayor Mondy and
Councilman Hogue, absent.
1. Hold a public hearing on the proposed tax rate for fiscal year 2002-2003 and provide
taxpayers an opportunity to express their views on the tax rate. At the end of the hearing, the
City Council must set and announce the date, time and place of the meeting at which it will
vote on the'final proposed tax rate.
Mr. Brady Snellgrove addressed this item providing Council with a brief background on the intent of the Public
Hearing. Mr. Snellgrove stated that in accordance with the "Truth in Taxation" laws of the State of Texas the
City Council took a roll call vote August 15, 2002 on the proposed tax rate and scheduled a public hearing on the
tax rate for August 27, 2002. The purpose of the public hearing on August 27, 2002, is to give the taxpayers an
opportunity to express their views on the tax rate.
Minutes—August 27,2002
Wylie City Council
Page 1
The City Council may not adopt the tax rate at this hea.ing. Instead, at the end of the hearing, it must
set and announce the date, time and place of the meeting at which it will vote on the final proposed tax
rate. The second public hearing will be on September 10, 2002, to vote on the final tax rate. The
proposed budget is based on the proposed tax rate of $0.71.5 per $100 valuation. This is the rate
previously discussed by the Council. Any change in the proposed tax rate will require revision of the
proposed budget.
The Mayor Pro Tem then opened the Public Hearing. With no response, the Mayor Pro Tern then
closed the Public Hearing.
Councilman Young made a motion to set the date for Tuesday, September 10, 2002 at 6:00 p.m. in the
City Council Chamber, Municipal Complex located at 2000 State Highway 78 North for a vote on the
final proposed tax rate. Councilman Trout seconded the motion. A vote was taken and the motion was
approved, 5-0. Mayor Mondy and Councilman Hogue were absent.
2. Consider and act upon an ordinance to increase water utility rates sufficient to pass through
the wholesale price increase from the North Texas Municipal Water District.
Mr. Brady Snellgrove addressed this item providing Council with a brief background on the request.
Mr. Snellgrove stated that the City of Wylie currently purchases water from the North Texas Municipal
Water District (NTMWD) at $.80 per thousand gallons and that the North Texas Municipal Water
District has notified the City on July 26, 2002 that the rate would be increased to $.87 per thousand
effective on October 1. 2002. The seven-cent increase is only applied against water usage greater than
one thousand gallons. There is no increase in minimum water rates. The 2002-03 fiscal year increase in
revenue is expected to be $50,000. Residential water customers with an average usage of 8,000 gallons
per month will see an increase of approximately $.49 on their water bill. Commercial customers will see
an estimated increase of$.98 per month based on 15,000 gallons of consumption. Mr. Snellgrove stated
that the rate increase will be effective on October 1. 2002 and will first appear on customers' bills in
November 2002.
Councilman Trout made a motion to approve the Ordinance to increas water utility rates sufficient of
pass through the wholesale price increase from the North Texas Municipal Water District. Councilman
Young seconded the motion. A vote was taken and the motion was approved, 5-0.
3. Consider and act upon issues surrounding the adoption of guidelines and criteria for the
provision of tax abatements.
Mr. Sam Satterwhite addressed this item providing Council a brief background on the request. Mr.
Satterwhite stated that per the Texas Tax Code Section 312, each taxing unit that wants to consider tax
abatement proposals must adopt a resolution indicating its intent to participate in tax abatement.
Furthermore, each taxing unit must adopt tax abatement guidelines and criteria. The attached guidelines
were originally approved by the Wylie City Council on July 13, 1993 and renewed on June 13, 2000.
Mr. Satterwhite explained that while the requirements proposed continue to meet the economic
objectives of the City of Wylie economic development program,the Sunset Provision in place requires a
renewal of these guidelines every two years.
Councilman Young made a motion to approve the Resolution to adopt the guidelines and criteria fo rthe
provision of tax abatements. Councilman Trout seconded the motion. A vote was taken and the motion
was approved, 5-0.
Minutes—August 77,2002
Wylie City Council
Page 2
4. Hold a public hearing to allow the public presentation of evidence for or against the creation
of Reinvestment Zone No.4.
Mr. Sam Satterwhite addressed this item providing Council a brief background on the request. Mr.
Satterwhite stated that The City of Wylie and Wylie Economic Development Corporation(WEDC) staff
has been working with Carlisle Coatings & Waterproofing, Inc. representatives to develop a tax
abatement package to assist with the expansion of Carlisle's Wylie operations. In order to offer a tax
abatement to any business entity, the lead taxing entity (the City of Wylie) must first create a
reinvestment zone. The designation of the reinvestment zone must be preceded by a public hearing to
allow any interested person to speak and present evidence for or against the designation of the
reinvestment zone. If the zone designation is approved, the designation lasts for five years and may be
renewed for successive periods of up to five years. The term of the tax abatement agreement may
continue for up to ten years, even if the reinvestment zone is not renewed after the initial five-year term.
The Mayor Pro Tem then opened the Public Hearing asking that anyone wishing to speak either in favor
or opposition of the request to come forward, stating their name and address for the record and limiting
their comments to three minutes.
Mr. Alton Harvey, Carlisle Coatings &Waterproofing, Inc.
Mr. Harvey expressed his appreciation to the City for all the City has done in the past stating that the
abatement was influencial in their decision to locate in Wylie.
With no further comment,the Mayor Pro Tem then closed the Public Hearing.
The Mayor Pro Tern called for a short recess. Mayor Mondy then joined the meeting as it reconvened
at 6:20 p.m.
5. Consider and act upon issues surrounding the creation of Reinvestment Zone No. 4 and the
approval of a Tax Abatement Agreement between the City of Wylie and Carlisle Coatings &
Waterproofing,Inc.
Councilman Trout excused himself from the meeting.
Mr. Sam Satterwhite addressed this item providing Council with a brief background on the request. Mr.
Satterwhite stated that on May 10, 2000, the City of Wylie and Wylie Economic Development
Corporation (WEDC)met with Carlisle officials to discuss expansion of Carlisle facilities at their current
location on F.M. 544. Based upon the vision of a more retail oriented area, staff encouraged Carlisle to
relocate and expand all operations to Premier Business Park. At that time, the WEDC had 8.035 acres
remaining within the Park with Carlisle ultimately constructing a 106,000 square foot manufacturing
facility with combined operations from California, Oklahoma, and Wylie. The WEDC is recommending
5-year tax abatement at 80%per year. Mr. Satterwhite called Council's attention to Page 2, Section 3,
the second line, clarifying that the abatement period was for"five (5) years", although "six" was spelled
out rather than"five".
Councilman Young made a motion to approve the Tax Abatement Agreement between the City of Wylie
and Carlisle Coatings &Waterproofing, Inc. with the noted correction. Councilman Worley seconded the
motion. A vote was taken and the motion was approved, 5-0. Councilman Hogue absent and
Councilman Trout excused.
Minutes—August 27,2002
Wylie City Council
Page 3
The Mayor asked that the Council move to Item No. 7 on the Agenda.
7. Consider and act upon an ordinance governing contractor registrations, allowing for
revocation of a contractor's registration under certain conditions and repealing all conflicting
ordinances.
Mr. Dale Jackson, Building Official addressed this item providing Council with a brief background on
the intent of the proposed Ordinance. Mr. Jackson stated that staff has developed guidelines that clarify
the requirements for registration of a contractor as well as outlining procedure for revocation of a
contractor's registration. If a contractor is not registered with the city, we cannot issue a building permit
to that contractor. Under current regulations, staff has no ability to revoke the registration of a contractor
who is not following the requirements.
Councilman Trout rejoined the meeting at 6:35 p.m.
There was considerable discussion regarding the procedure for revocation. Mr. Jackson explained that
the number and nature of the complaint would need to be reviewed individually prior to revocation of
registration. He explained that other cities use this as a tool to monitor and possibly discourage
contractors who are negligent and failed to complete projects.
Councilman Scott asked for clarification and review of the use of the Construction Code Board's role in the appeal
process. He stated that our Charter defines the Board as an Advisory Board only and questioned their authority to
hear appeals. It was determined that if Council approved the proposed ordinance as presented, staff would look
into this area of concern regarding the appeal process and bring forward an amendment,if necessary.
Councilman Hogue joined the meeting in progress at 6:48 p.m.
Councilman Worley made a motion to approve the Ordinance governing contractor registrations, allowing for
revocation of a contractor's registration under certain condition and repealing all conflicting ordinances.
Councilman Scott seconded the motion. A vote was taken and the motion was approved,7-0.
The Mayor then moved to Item No. 9 on the Agenda.
9. Consider and act upon proposals for employee group health insurance, including major
medical, dental, term life, accidental death/dismemberment, long term disability and
prescription drug coverage.
Mr. Brady Snellgrove addressed this item providing Council with a brief background on the request. Mr.
Snellgrove stated the City's employee group health insurance currently provided by TML
Intergovernmental Employee Benefits Pool will expire September 30. TML has submitted a rerate notice
which reflects an increase of approximately five per cent in the renewal rates for fiscal 2003. In addition
to the TML renewal proposal, staff has solicited competitive proposals from other insurance providers.
Three insurance agencies responded to the RFP. These were The Reaves Agency, Dean Casey &
Associates and Wylie Insurance Agency. The current proposed budget for Fiscal Year 2003 includes
group medical expenditures based on the rates for Urited Healthcare's Option III. Due to budgetary
constraints, the City's share of dependent coverage costs has been reduced to 50 per cent for Fiscal 2003.
The City is currently paying approximately 58.5 per cent of the dependent coverage premiums. Staff is
recommending that Council select United Healthcare Option HI for group medical coverage. Should the
group medical insurance coverage be awarded to United Healthcare, Council will have to decide which
of the three agencies will be the agent of record for United.
Minutes—August 27,2002
Wylie City Council
Page 4
There was some discussion regarding the health care plan with regarding deductibles and co-pays in
comparison to the previous plan and the role of the agenc •. Councilman Scott supported the staff
recommendation.
Mr. John Yeager, Wylie Insurance was present to provide Council with a brief presentation of their
agency's qualifications to provide service to the City of Wylie. Mr. Jack Reeves, Reeves Insurance
Agency was also present to address Council. He stated that his agency handles a number of
municipalities and cited surrounding cities including Rowlett and Plano.
Councilman Scott made a motion to award the City's Dental insurance Coverage to LifeRe Insurance
Company, represented by the Reaves Agency; award the City's coverage for employee term life,
optional dependent life and employee long term disability to Canada Life Assurance Company,
represented by the Reaves Agency; and to award the City's employee group medical insurance to
United Heathcare (Option III) designating Wylie Insurance Agency as agent of record. Councilman
Trout seconded the motion. A vote was taken and the motion was approved, 7-0.
The Mayor then moved to Item No. 6.
6. Hold a public hearing to consider and act upon an ordinance adopting new sign regulations
and repealing all conflicting ordinances.
Mr. Dale Jackson, Building Official addressed this item providing Council a background on the intent of
the Ordinance. He stated that staff has reviewed sign regulations and proposed new regulations at the
direction of Council.
Mr. Jackson addressed seven areas of change in the proposed sign ordinance. First, the legal issues with
off premise signs referred to in Section 9; holiday lights; defaced, obscene or immoral matter; streamers
and banners; "for sale" signs on parked automobiles; directional signs, defined; legal issues with signs
within the right-of-way requiring fees per sign and time limitations.
There was considerable discussion regarding the fees for directional signs (builders) and the collection
thereof. Mr. Jackson stated that staff has not been enforcing this requirement, but would be spot
checking. He advised that our fees are in line with surrounding areas and briefly outlined the process.
There was some discussion regarding the "for sale" signs placed on vehicles with regard to public and
private property. Mr. Jackson stated that this would be carefully evaluated on a case by case basis and
the intent is to prevent abuse.
The Mayor then opened the Public Hearing and asked that anyone wishing to speak either in favor or
opposition to please come forward, state their name and address for the record and limit their comments
to three minutes.
Mr. Scott Silvas—Centex Homes
Mr. Silvas expressed his concern regarding the regulation of off premise signs addressing the limitation
of 20 signs per builder asking Council to consider that the signs are temporary and that they do attract
buyers that contribute to the tax base. He asked that Council consider not limiting the number of signs
and their ability to sell homes. There was some discussion regarding the off premise signs and the
effect it may have on the builders as well as the community.
Minutes—August 27,2002
Wylie City Council
Page 5
Mr. Jackson explained that the section titled Pole Signs was intentionally omitted. There was
considerable discussion regarding height and setback limitations; existing signs and replacement thereof
if damaged or destroyed and safety issues with regard to placement within areas of greater speed limits.
The Mayor asked that Council determine whether they would like to allow pole signs and referred to the
four options presented within the agenda item.
Councilman Young made a motion that we approve the Ordinance adopting new sign regulations and
repealing all conflicting ordinances, disallowing pole signs and with a review of developer signs.
Councilman Hogue seconded the motion. A vote was taken and the motion was approved, 6-1.
Councilman Trout voting in opposition.
8. Consider and act upon an Ordinance adopting a new fee schedule for building permits and contractor
registration and repealing all conflicting ordinances.
Mr. Dale Jackson, Building Official addressed this item providing Council with a brief background on
the intent of the proposed ordinance. Mr. Jackson stated that aditional work required to verify
compliance with the new energy code was the basis for the recommendation by the Construction Code
Board for an increase in fees for single-family dwellings. He stated that the proposed ordinance clarifies
fees for items such as: re-issuing lost or damaged permits, changing contractors on a permit and
reviewing and approving new plan sets when the city approved plan set is lost or damaged to the point
that it cannot be read.
Councilman Worley made a motion to approve the adoption of a new fee schedule for building permits
and contractor registration and repeal all conflicting ordinances. Councilman Hogue seconded the
motion. A vote was taken and the motion was approved, 7-0.
10. Consider and at upon the award of a contract for the construction of the Rush Creek Force
Main to Texas Electric Utility Construction in the amount of$442,001.43.
Mr. Chris Holsted, City Engineer addressed this item providing Council with a brief background on the
request. He stated that the construction of the new lift station is nearing completion and the installation of
the force main will complete the project. The bids included 2,713 linear feet of 36-inch gravity sewer and
4,760 linear feet of 18-inch force main. On August 9, 2002 a total of thirteen (13) bids were opened for
the project. Texas Electric Utility Construction submitted the low bid in the amount of$442,001.43. The
lift station construction was funded through the 1999 Bond and the FY 2002 budget. The Rush Creek
project was included in the most recent impact fee update and those funds will be used for the
construction of the force main. The current sewer impact fee balance is $1,416,669.26.
Councilman Scott made a motion to approve the award of cerlract for the construction of the Rush Creek
Force Main to Texas Electric Utility Construction in Cie amount of$442,001.43. Councilman Worley
seconded the motion. A vote was taken and the motion was approved, 7-0.
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The captions to all approved Ordinances were then read into the record.
Minutes—August 27,2002
Wylie City Cot'ncil
Page 6
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The Mayor called for a short recess before adjourning into Executive Session. The posted Executive
Session is in accordance with In accordance with Chapter 551,Government Code,Vernon's Texas Code
Annotated (Open Meeting Law), Section 551.072 Dtliberation Regarding Real Property; to deliberate
the purchase, exchange, lease, or value of real property (Martinez Lane) if deliberation in an open
meeting would have a detrimental effect on the position of the governmental body in negotiations with a
third person.
There was no action taken as a result of the Executive Session
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With no further business,the meeting was adjourned at 8:30 p.m.
ohn ndy,Mayor
ATTEST:
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b Salinas, ity Secretary
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Minutes—August 27,2002
Wylie City Council
Page 7