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HomeMy WebLinkAboutCity Council-Minutes-8/17/2010=~. _ City of Colleyville 100 Main Street ~~~~ ~ Colleyville, Texas 76034 Agenda 817.503.1000 vvww.colleyville.com City Council Tuesday, August 17, 2010 CITY COUNCIL CHAMBERS PRE COUNCIL MEETING EXECUTIVE SESSION 5:30 P.M. EXECUTIVE CONFERENCE ROOM THIRD FLOOR PC-1 Presentation of the status of the 2010 Census PC-2 Presentation and discussion of a City branding effort PC-3 Discussion of the SH26/Colleyville Boulevard reconstruction project PC-4 Update and discussion of energy efficiency projects PC-5 Discussion of the Fiscal Year 2011 (FY 2011) proposed budget PC-6 Presentation of the Monthly Financial Report -July 2010 PC-7 Presentation of the Quarterly Investment Report PC-8 Discussion of the August 17, 2010 City Council meeting regular agenda items 1. EXECUTIVE SESSION - In accordance with Texas Government Code Chapter 551, Subchapter D Section 551.071 -Legal -Consultation with attorney on legal issues raised by public hearing or action items on the agenda Section 551.071 -Legal -Discussion of pending litigation - Rischon Development Corporation v. City of Colleyville Section 551.071(2) -Legal -Consultation with attorney regarding status and terms of Franchise Agreement with Oncor Section 551.087 - Economic Development -Discuss and deliberate commercial and financial information received from business prospects the City seeks to have locate, stay or expand within the City City of Colleyville Page 1 Printed on 8/13/2010 City Council Agenda August 17, 2010 RESUME REGULAR MEETING 7:30 P.M. COUNCIL CHAMBERS INVOCATION: Neda Moayad, Colleyville Baha'i Community PLEDGE OF ALLEGIANCE: City Attorney Matthew Boyle 2. EXECUTIVE SESSION: CONSIDER AND TAKE ANY ACTION(S) NECESSARY RELATIVE TO ITEMS DISCUSSED IN EXECUTIVE SESSION - Resolution R-10-3255 3. ANNOUNCEMENTS AND PRESENTATIONS Announcements of civic and charitable events Presentation of calendar events and updates Announcements of awards and recognition In recognition of Autobahn Motorcars for continued support of the Colleyville Police Department School Resource Officer Program -Mayor David Kelly and Police Chief Steve Dye In recognition of the featured Colleyville Business -Solomon's Furniture, 8300 Precinct Line Road -Ryan and Melanie Regar Proclamation in recognition of the Keep It Colleyville campaign -Mayor David Kelly and Economic Development Director Marty Wieder 4. CONSENT: READING AND PUBLIC HEARING -Resolution R-10-3256 4a Approval of the minutes of the regular City Council meeting of August 3, 2010 4b Approval of the City of Colleyville Special Events Policy 4c Approval of a second amendment to the Interlocal Agreement with the City of Euless, for the construction of the Heritage Avenue Improvements between Cheek-Sparger Road and Glade Road, and authorize the city manager to execute the agreement City of Colleyville Page 2 Printed on 8/13/2010 City Council Agenda August 17, 2010 4d Approval to purchase a 3M Intelligent Return and Sorter System through the State of Texas Joint (Cooperative) Purchasing program, in an amount not to exceed $86,103 and authorize the city manager to execute the documents 4e Approval of Broker/Dealer firms for investment purchases 4f Approval of the construction contract with Humphrey & Morton Construction for the Cotton Belt Trail, Phase II, in an amount not to exceed $719,357.87 and authorize the city manager to execute the same and any associated change orders, in an amount not to exceed $25,000 and to approve the amended Advanced Funding Agreement with Texas Department of Transportation (TxDOT) for Cotton Belt Trail in Colleyville and Hurst 5. ORDINANCE(S): SECOND READING AND PUBLIC HEARING 5a 0-10-1762 Approval of a request for a Special Use Permit for a Package Store on Lot 2, Block 1, of the Glade Points Addition located at 4200 Glade Road, Case ZC10-011 5b 0-10-1763 Approval of a request for a Special Use Permit for a Package Store on Lot 4B, Block 1, of the Brown Trail-West Addition located at 4405 Colleyville Boulevard, Case ZC10-012 5c 0-10-1764 Approval of a request for a Special Use Permit for a Package Store on Lot 10, Block 23, of The Village at Colleyville Condo Addition located at 62 Main Street, Suite 110, Case ZC10-013 6. ORDINANCE(S): FIRST READING AND PUBLIC HEARING 6a 0-10-1765 Approval of amending and replacing Ordinance 0-88-671, amending Chapter 22-5 Sexually Oriented Businesses in the Colleyville Code of Ordinances, Case GC10-007 6b 0-10-1766 Authorizing the sale and issuance of $3,260,000 of Water and Sewer Refunding Bonds, Series 2010 and providing for the redemption of the obligations being refunded Cify of Colleyville Page 3 Printed on 8/13/2010 City Council Agenda August 17, 2010 7. RESOLUTION(S): READING AND PUBLIC HEARING 7a R-10-3257 Approval of a request for a temporary use permit for Four Seasons Markets to locate in the Village Front Door parking lot area located at 5204 Colleyville Boulevard, Case GC10-008 7b R-10-3258 Approval of a proposal to set the ad valorem tax rate for Fiscal Year 2011 at $.3559 per hundred dollars of valuation 7c R-10-3259 Approval of amending the name and charge of the Celebrate Colleyville Steering Committee 8. CITIZEN COMMENTS/PRESENTATIONS REGARDING ITEMS NOT ON THE AGENDA 9. REPORTS: Senior Center Advisory Committee Minutes-March 18, 2010 Parks and Recreation Advisory Board Minutes -April 5, 2010 Senior Center Advisory Committee Minutes -May 20, 2010 Library Board Minutes -June 21, 2010 Planning and Zoning Commission Meeting -July 26, 2010 10. ACTION/RESOLUTION: DISCUSSION AND CONSIDERATION OF A RESOLUTION RATIFYING COUNCIL AGENDA ACTION FOR THE MEETING OF AUGUST 17, 2010 -Reading and Public Hearing -Resolution R-10-3260 11. ADJOURNMENT: I hereby certify the above agenda was posted on the bulletin boards at City Hall on Friday, August 13, 2010, by 5:00 p.m. ~~ 5~7~ Cynthia Singleton, TRMC, CMC City Secretary Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accommodations, please advise the City Secretary at least 48 hours in advance at 817.503.1133, and reasonable accommodations will be made to assist you. City of Colleyville Page 4 Printed on 8/13/2010 .,;,. ~„ r.•.., City of Colleyville Minutes City Council City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 vrww.colleyville.com Tuesday, August 17, 2010 CITY COUNCIL CHAMBERS The Pre Council meeting of the Colleyville City Council was called to order by Mayor David Kelly on August 17, 2010, at 5:33 p.m. PC-1 PC-2 PC-3 ROLL CALL: Councilmembers Carol Wollin, Michael Muhm, Stan Hall and Tom Hart were present. Mayor David Kelly, City Manager Jennifer Fadden, Assistant City Manager and Chief Financial Officer Terry Leake, Police Chief Steve Dye, Police Lieutenant Rodney Cunningham, Police Lieutenant Doug Cooper, Fire Chief Russell Shelley, Public Works Director Steve Chutchian, Community Development Director Ron Ruthven, Library Director Mary Rodne, Economic Development Director Marty Wieder, Marketing Coordinator Ashley Stathatos, Human Resources Manager Elise Welborn, Colleyville Center Manager Lin Przybyl, Communications and Marketing Director Mona Gandy, Parks and Recreation Director Monica Walsh, Information Systems Manager Chris Pena, City Attorney Matthew Boyle and City Secretary Cynthia Singleton were also present. Councilmember Taylor arrived at 5:34 p.m. Mayor Pro Tem Jon Ayers arrived at 5:58 p.m. Presentation of the status of the 2010 Census Mr. John Williams, Partnership Specialist, U.S. Census Bureau, presented the 2010 Census data and answered questions of the City Council. Presentation and discussion of a City branding effort It was determined .this item would be presented at the September 7, 2010 Pre Council meeting. Discussion of the SH26/Colleyville Boulevard reconstruction project City Manager Jennifer Fadden stated this item is provided for follow-up to the discussion during the August 10, 2010, City Council worksession regarding the SH26 reconstruction project and provided a draft letter City of Colleyville Page 1 Printed on 9/9/2010 City Council Minutes August 17, 2010 from TxDOT stating that in principle, the City agrees to the project development and financial terms for SH26 in terms of the scope of the work and the City would be responsible for the construction of SH26 from Hall-Johnson Road to Cheek-Sparger Road converting it to a six-lane divided urban thoroughfare section and redoing the intersection at each of those connection points. The City would be responsible for the municipal utility relocations, project letting and the construction management of this project. Should the City desire to consider refinements or changes to the current design of the thoroughfare, it would be the City's responsibility. TxDOT would be responsible for completing and finalizing the plans and engineering on the project as well as the remaining right-of-way acquisition and oversight for franchise utility relocation. The environmental assessment is complete and TxDOT received a finding of no significant impact, which gives the project clearance to proceed from a federal perspective should funding be available. TxDOT reported that any change in the design could trigger the need for a new environmental assessment, which would be conducted at the City's expense. Discussion ensued regarding the timeline and cost of an environmental assessment. Ms. Fadden stated the TxDOT financial terms of the Pass-Through Financing Agreement includes a reimbursement of $14,400,000 to the City over a ten to twenty year period, which is based on per vehicle mileage traveled over the new roadway once it is reconstructed. The City could issue Tax Increment Financing debt for this project, in the amount of $18,250,000, and the proposed potential debt service schedule anticipates a twenty year debt because a worst case scenario must be anticipated, therefore the project could be repaid over a twenty year period at a 5% interest rate. Discussion continued regarding options if a new environmental assessment is necessary, placement of traffic counters on SH26 and timeline for reimbursement related to traffic count, potential of and responsibility for escalating project costs, the City's obligations if the City agrees to the TxDOT letter in principle and the TIF incremental value. Mayor Kelly stated TxDOT is requesting cities indicate their interest in continuing negotiations regarding road projects by August 26, 2010. Discussion continued regarding the impact of the reconstruction of SH26 on economic development. Mayor Pro Tem Ayers asked the City Attorney, "if we agree in principle to the following project development and financial terms, is this not a letter City of Colleyville Page 2 Printed on 9/9/2010 City Council Minutes August 17, 2010 of agreement of some sort; are we not committing to something when it says we agree in principle to the following development and financial terms". City Attorney Matthew Boyle stated the format of the letter is not necessarily a binding document; it is an expression of intent to proceed. Discussion ensued regarding the future development of the SH26 reconstruction project from Hall-Johnson Road to Cheek-Sparger Road if the City does not agree to the terms of the TxDOT letter, the results of the citizen survey related to the SH26 reconstruction project, the speculative nature of the project related to economic development and the timeline of the project if the City agrees to the principles of the TxDOT letter. Councilmember Taylor requested a comparison of the original project cost versus the current project cost estimates. Councilmember Muhm requested an outline of the process going forward and the deadline for responding to TxDOT. City Manager Jennifer Fadden stated TxDOT advised the City they would like to execute a contract by the end of October 2010. Mayor Kelly stated discussions with the North Central Texas Council of Governments regarding the northern section of the project and with the Tax Increment Financing (TIF) District Board regarding extending the TIF agreement are necessary. Councilmember Muhm requested a schedule of events for the project. Councilmember Muhm stated at this time, based on what has been presented to him, he was not in support of the proposed Pass-Through Financing Agreement because of the unknown risks, costs and burden asked to be borne by the City of Colleyville, unclear highway design plan, likely cost increases, economic development assumptions and control and responsibility for the project. He stated at some point in the near future, we need to make a firm commitment one way or the other regarding the proposal, but agreed with continuing discussions with all parties until then. Councilmember Wollin requested staff provide information from cities that have experience with Pass-Through Financing Agreements. City Council determined to continue discussions with TxDOT. City of Colleyville Page 3 Printed on 9/9/2010 City Council Minutes August 17, 2010 PC-4 Update and discussion of energy efficiency projects Public Works Director Steve Chutchian presented an update of the energy efficiency projects and answered questions of the City Council. Discussion ensued regarding the process for determining potential energy savings and efficiency. PC-5 Discussion of the Fiscal Year 2011 (FY 2011) proposed budget City Manager Jennifer Fadden stated this item was placed on the Pre Council agenda to obtain any additional direction or answer questions regarding the proposed Fiscal Year 2011 budget. Ms. Fadden further stated the first reading of the ordinances to adopt the Fiscal Year 2011 tax rate and the budget is scheduled for September 7, 2010, and staff is requesting a possible amendment to the proposed budget as revenues exceed expenditures by $43,773. Ms. Fadden stated a representative from the Texas Municipal Retirement System will present information regarding the structure of the retirement plan at the September 7, 2010, Pre Council meeting. Councilmember Muhm requested staff provide the City Council and City Manager line item budget. Councilmember Muhm requested examples of employee retirement benefit amounts, resulting from several salary levels, based on the City's TMRS plan. He also stated his desire for the City Council to discuss and evaluate what the City's policy should be in regards to providing a reasonable retirement benefit to employees. PC-6 Presentation of the Monthly Financial Report -July 2010 Finance Manager Karen Hines presented the July 2010 Monthly Financial Report and answered questions of the City Council. Colleyville Center Manager Lin Przybyl provided information regarding cost recovery at Colleyville Center. Assistant City Manager and Chief Financial Officer Terry Leake provided information regarding water usage and the budget revenue deficit. City of Colleyville Page 4 Printed on 9/9/2010 City Council Minutes August 17, 2010 PC-7 PC-8 1. Section 551.071 -Legal -Consultation with attorney on legal issues raised by public hearing or action items on the agenda Section 551.071 -Legal -Discussion of pending litigation - Rischon Development Corporation v. City of Colleyville Section 551.071(2) -Legal -Consultation with attorney regarding status and terms of Franchise Agreement with Oncor City Manager Jennifer Fadden stated we anticipated sales tax being down for the year 8.5% and the last couple of months have out performed that projection. Presentation of the Quarterly Investment Report Assistant City Manager and Chief Financial Officer Terry Leake presented the Quarterly Investment Report and answered questions of the City Council. Discussion of the August 17, 2010 City Council meeting regular agenda items There was no discussion of regular agenda items. Mayor Kelly adjourned the Pre Council meeting at 6:51 p.m. The regular meeting of the Colleyville City Council was called to order by Mayor David Kelly on August 17, 2010, at 6:52 p.m. ROLL CALL: Councilmembers Carol Wollin, Michael Muhm, Stan Hall, Tom Hart, Mike Taylor and Mayor Pro Tem Jon Ayers were present. Mayor David Kelly, City Manager Jennifer Fadden, Assistant City Manager and Chief Financial Officer Terry Leake, Police Chief Steve Dye, Police Lieutenant Rodney Cunningham, Police Lieutenant Doug Cooper, Fire Chief Russell Shelley, Public Works Director Steve Chutchian, Community Development Director Ron Ruthven, Library Director Mary Rodne, Economic Development Director Marty Wieder, Marketing Coordinator Ashley Stathatos, Human Resources Manager Elise Welborn, Colleyville Center Manager Lin Przybyl, Communications and Marketing Director Mona Gandy, Parks and Recreation Director Monica Walsh, Information Systems Manager Chris Pena, City Attorney Matthew Boyle and City Secretary Cynthia Singleton were also present. EXECUTIVE SESSION - In accordance with Texas Government Code Chapter 551, Subchapter D City of Colleyville Page 5 Printed on 9/9/2010 City Council Minutes August 17, 2010 Section 551.087 - Economic Development - Discuss and deliberate commercial and financial information received from business prospects the City seeks to have locate, stay or expand within the City Mayor Kelly explained that the Executive Session had been called in accordance with the Texas Government Code Chapter 551, Subchapter D, Section 551.071, Legal and Section 551.087, Economic Development. He further explained that there would be no decisions made or action taken during this time. The meeting was recessed at 6:52 p.m. and reconvened at 7:32 p.m. INVOCATION: Pastor Craig Etheredge, First Baptist Church PLEDGE OF ALLEGIANCE: City Attorney Matthew Boyle 2. EXECUTIVE SESSION: CONSIDER AND TAKE ANY ACTION(S) NECESSARY RELATIVE TO ITEMS DISCUSSED IN EXECUTIVE SESSION - Resolution R-10-3255 This resolution was not needed. 3. ANNOUNCEMENTS AND PRESENTATIONS Mayor Kelly recognized Autobahn Motorcars for providing vehicles in support of the Colleyville Police Department School Resource Officer Program. Police Chief Steve Dye expressed appreciation to Autobahn Motorcars for supporting the School Resource Officer Program since 2004 and stated a plaque is placed in the dealership in recognition of the generous donation of the vehicles. Mayor Kelly welcomed and recognized Colleyville Business, Solomon's Furniture and owners Ron and Elaine Regar and invited citizens to patronize the business. Mr. Regar invited the public to visit Solomon's Furniture new showroom at 8300 Precinct Line Road between the hours of 10:00 a.m. and 6:00 p.m., Monday through Friday and 10:00 a.m. and 5:00 p.m. on Saturday. Mayor Kelly presented a Proclamation in recognition of the Keep It Colleyville campaign to Economic Development Director Marty Wieder and encouraged citizens to shop Colleyville. Economic Development Director Marty Wieder encouraged citizens to shop locally and stated if every household redirected what is presently City of Colleyville Page 6 Prinfed on 9/9/2010 City Council Minutes August 17, 2010 spent outside of the City and shopped Colleyville, it would have a significant impact on sales revenue and the success of local businesses. 4. CONSENT: READING AND PUBLIC HEARING -Resolution R-10-3256 4a Approval of the minutes of the regular City Council meeting of August 3, 2010 4b Approval of the minutes of the City Council Worksession of August 5, 2010 4b Approval of the City of Colleyville Special Events Policy 4c Approval of a second amendment to the Interlocal Agreement with the City of Euless, for the construction of the Heritage Avenue Improvements between Cheek-Sparger Road and Glade Road, and authorize the city manager to execute the agreement 4d Approval to purchase a 3M Intelligent Return and Sorter System through the State of Texas Joint (Cooperative) Purchasing program, in an amount not to exceed $86,103 and authorize the city manager to execute the documents 4e Approval of Broker/Dealer firms for investment purchases 4f Approval of the construction contract with Humphrey & Morton Construction for the Cotton Belt Trail, Phase II, in an amount not to exceed $719,357.87 and authorize the city manager to execute the same and any associated change orders, in an amount not to exceed $25,000 and to approve the amended Advanced Funding Agreement with Texas Department of Transportation (TxDOT) for Cotton Belt Trail in Colleyville and Hurst Mayor Kelly read Resolution R-10-3256 in its entirety. Parks and Recreation Director Monica Walsh provided a history of the construction of the Cotton Belt Trail and an update of the construction plans and funding for the Cotton Belt Trail, Phase II, and stated upon approval of the construction contract, the contractor should begin work on the Colleyville trail section in September 2010 and completed by Spring 2011. Mayor Kelly opened the public hearing. Mr. David Fink, 6400 Ponderosa Lane, spoke regarding the amount and approval of change orders. City of Colleyville Page 7 Printed on 9/9/2010 City Council Minutes August 17, 2010 There were no others present wishing to speak concerning this item and Mayor Kelly closed the public hearing. City Engineer Jeremy Hutt stated the maximum contingency amount of the contract is $143,871.57, with the Colleyville portion being $37,406.61 and any change order over $25,000 must be approved by City Council. Mayor Pro Tem Ayers moved to approve Resolution R-10-3256. Councilmember Wollin seconded the motion. The motion carried by the following vote: Aye: 7 -David Kelly, Carol Wollin, Michael Muhm, Stan Hall, Jon Ayers, Tom Hart, Mike Taylor 5. ORDINANCE(S): SECOND READING AND PUBLIC HEARING 5a 0-10-1762 Approval of a request for a Special Use Permit for a Package Store on Lot 2, Block 1, of the Glade Points Addition located at 4200 Glade Road, Case ZC10-011 Mayor Kelly read the caption of Ordinance 0-10-1762. Community Development Director Ron Ruthven stated, at the request of the City Council, the proposed ordinance was amended to require all signage advertising the package store be removed in its entirety at the expense of the business and/or the property owner within 30 days of abandonment; to add a wrought iron fence around the existing propane sales area; that the shared parking agreement and driveway connection with the property to the north not be a condition of obtaining a certificate of occupancy, and an updated site plan is attached and the Planning and Zoning Commission recommended approval. City Attorney Matthew Boyle stated the reason package stores are allowed in the City of Colleyville is the result of a local option election. That local option election was initiated as a result of a citizen-based petition and then had a referendum that was subject to voter approval by all of the voters in the City of Colleyville, most recently in May. A question that comes up following approval of a package store local option election is, "can the City of Colleyville regulate the sale of alcoholic beverages" and the short answer to that question is no. The reason why is because the Texas Alcoholic Beverage Code, specifically Sections 1.06 and 109.57, say that the Alcoholic Beverage Code shall provide the exclusive governance of the sale, distribution, transportation and possession of alcoholic beverages. What you have before you City of Colleyville Page 8 Printed on 9/9/2010 City Council Minutes August 17, 2010 tonight is not a regulation or proposed regulation of a package store but instead a SUP case that treats this property the same as you would any property that is analogous of the zoning ordinance and, in particular, convenience stores. Convenience stores are only allowed in CC1, CC2 and CC3 just as package stores are and they are subject to a SUP requirement. As a result of the preemptive provisions of the Alcoholic Beverage Code, the City is absolutely preemptive and prohibited from either amending the distance requirements provided by the Alcoholic Beverage Code nor are they permitted to institute additional distance requirements save and except the City has the ability, only through a Charter provision, to adopt distance. requirements or separation requirements relative to residential neighborhoods. Mayor Kelly opened the public hearing. Mr. Charlie Hall, 5606 Amador Trail, applicant, asked if the parking lot can be striped. Mr. James Day, 805 Shelton Drive, ordinance and regarding the parking local option election. spoke in support of the proposed requirements and the results of the Mr. Ron Rotthaus, 2203 Cottage Oak Lane, spoke in opposition to the proposed ordinance and regarding the commercial landscape of the City and the impact of package stores on the community. Mr. Eddy Parker, 708 L.D. Lockett Road West, expressed appreciation to the City Council for their service and spoke in opposition to the proposed ordinance. Mr. Craig Etheridge, 508 Sophie Lane, spoke in opposition to the proposed ordinance and regarding the limitation of the number of package stores, the distance requirements from churches, schools and hospitals and the impact of alcohol on the community. Ms. Joan Debrei, 610 Colts Neck Court, spoke in opposition to the proposed ordinance and regarding the number and location of package stores. Mr. David Fink, 6400 Ponderosa Lane, spoke in opposition to the proposed ordinance and regarding the location of package stores in the City. Mr. Fred Ballinger, 304 Bandit Trail, spoke in opposition to the proposed ordinance and the impact of package stores on the quality of life and property values in the community and requested a moratorium on requests for SUP's for package stores to allow for further development of City of Colleyville Page 9 Printed on 9/9/2010 City Council Minutes ~ August 17, 2010 the requirements for package stores. Ms. Elaine Crabtree, 4606 Stafford Drive, spoke in opposition to the proposed ordinance and regarding increased traffic related to package stores. Mr. George Coleman, 6402 Emerald Drive, spoke in opposition to the proposed ordinance and regarding provisions of the Texas Alcoholic Beverage Code related to the designation of wet or dry areas, the impact of package stores on the quality of life and property values and requested the ordinances be tabled to develop ordinances to control the integration of liquor stores in the City. Ms. Lisa Bernardo, 7010 Shepherds Glen, spoke regarding limiting the number and controlling the location of package stores and the impact of package stores on the quality of life in the community and economic development. Ms. Angela Kahle, 1605 Kingswood, spoke regarding the ballot language of the Local Option Election, safety issues related to the sale of alcohol, alcohol related arrests and requested the item be tabled for further consideration. Mr. Brad Forslund, 202 Virginia Square, spoke in opposition to the proposed ordinance and regarding the impact of package stores on the community and requested a moratorium, a table or denial of the Special Use Permits for package stores and the adoption of a more comprehensive zoning ordinance related to package stores. Mr. Michael Carr, 7002 Shepherds Glen, spoke in opposition to the proposed ordinance and regarding the impact of package stores on economic development, property values, community safety and traffic flow and volume and requested City Council table the ordinance for further consideration. Ms. Karin Urbanczyk, 7705 Tillman Hill Road, spoke in support of the proposed ordinance and regarding the economic development and reputation of the City and the education of children related to the consumption of alcohol. Mr. George Dodson, 7309 Balmoral Drive, spoke in opposition to the proposed ordinance and regarding TABC regulations regarding the location of package stores. Mr. Pravin Raj, 7205 Thames Trail, spoke in opposition to the proposed ordinance. City of Colleyville Page 10 Printed on 9/9/2010 City Council Minutes August 17, 2010 Mr. Chuck Bultmann, 4900 Wildwood Court, spoke in favor of the proposed ordinance, the results of the local option election and the economic development of the City. Mayor Kelly stated the following citizens did not wish to speak but wanted to record their opposition to the proposed ordinance: Thomas Crabtree, Sheri Tesar, Kyle Appling, Michelle Appling, Jerry Welch, Richard Schaulin and Ketan Patel. There were no others present wishing to speak and Mayor Kelly closed the public hearing. City Attorney Boyle stated the local option election was considered and voted on citywide and, as such, upon approval at the May election, the entire City of Colleyville was voted wet relative to package stores. Mayor Kelly asked the City Attorney to confirm if a SUP is approved, the applicant cannot obtain a state TABC license until the application is signed by the City Secretary verifying City requirements are met. The City Attorney responded affirmatively. City Attorney Boyle stated the sole authority for distance regulations is provided by the Alcoholic Beverage Code. The City has no authority or discretion to revise, expand or amend the distance provisions established by the Alcoholic Beverage Code, save and except the ability to consider a Charter election amendment relative to the separation requirements to residential areas. Community Development Director Ron Ruthven stated the Land Development Code prescribes the form a development should take in Colleyville. That includes building design, landscaping and other facets of development including parking. Staff recommended to City Council that any package store request at least be brought forward to City Council, with a recommendation that it meets the minimum requirements of the Land Development Code if, in fact, it were to be approved by the City Council. The Land Development Code is the policy adopted by the City Council, the elected representatives of the people, which prescribes the way development progresses. Discussion ensued regarding the gross floor area of the store, required parking spaces and traffic flow. Mayor Pro Tem Ayers asked the City Attorney to explain the process, by which the City has arrived at this position, with respect to package sales in the City of Colleyville and the process that has led to this point. City of Colleyville Page 11 Printed on 9/9/2010 City Council Minutes August 17, 2010 City Attorney Boyle stated package stores were allowed following the referendum held as a result of the citizen initiated petition under the local option provisions of the Alcoholic Beverage Code. That is a process that is wholly independent of the City and is not processed through the City. The petition is not submitted to the City Secretary. It is not subject to the review and approval of either City staff or City Council. It is something managed wholly at the County level. Mayor Pro Tem Ayers asked the City Attorney, is it accurate that Mr. Hall initiated the effort to get this on the ballot through a petition that he submitted to the Tarrant County Elections Administration and obtained approval for it to be on the May election ballot. City Attorney Boyle responded affirmatively. Mayor Pro Tem Ayers asked the City Attorney, is it your understanding Mr. Hall secured several thousand signatures, submitted the signatures to Tarrant County Elections Administration. The signatures were reviewed and the petition initially declined. Mr. Hall initiated the process again and secured, once again, several thousand signatures, obtained the requisite number of signatures and the proposition was placed on the May 8, 2010 ballot. City Attorney Boyle responded affirmatively. Mayor Pro Tem Ayers asked the City Attorney under state law, are we as a City Council allowed by law to enact a moratorium? City Attorney Boyle stated a moratorium specifically focused on package stores would appear to be in direct conflict with the preemption provisions in the Alcoholic Beverage Code. Section 1.06 of the Texas Alcoholic Beverage Code reads as follows: Unless otherwise specifically provided by the terms of this Code, the manufacture, sale, distribution, transportation and possession of alcoholic beverages shall be governed exclusively by the provisions of this Code. Mayor Pro Tem Ayers asked the City Attorney if there have been cases that have litigated the preemption issue in the state of Texas. City Attorney Boyle stated there have been many cases over the years. Mayor Pro Tem Ayers asked the City Attorney if all of those cases, or for the most part, the majority of those cases, resulted in courts in the state of Texas taking the position that it is the state that mandates certain requirements such as distance provisions. City Attorney Boyle responded affirmatively. City of Colleyville Page 12 Printed on 9/9/2010 City Council Minutes August 17, 2010 Mayor Pro Tem Ayers asked what happens when a city enacts ordinances that are different from the provisions found in the Alcoholic Beverage Code. City Attorney Boyle stated the pattern in history is that when such provisions are brought to a challenge, they are defeated and ruled invalid by the courts. Mayor Pro Tem Ayers stated, in other words, the city loses every time. City Attorney Boyle stated, on cases where the preemption provisions are violated, yes. Mayor Pro Tem Ayers asked the City Attorney to review what happened in the City of Lubbock case that actually dealt with the issue of "can you limit the number and the size of package stores". City Attorney Boyle stated, in the face of or immediately after a package store local option election being approved by the City of Lubbock, the Lubbock City Council instituted a new realm of provisions attempting to specifically regulate package stores and included in those provisions were maximum size requirements for the stores and several other provisions directly focused on package stores. Multiple suits were filed against the City of Lubbock, ultimately resulting in the repeal of the challenged provisions. Mayor Pro Tem Ayers stated, in other words, the City of Lubbock lost. City Attorney Boyle stated the City of Lubbock changed the rules in advance of losing in the courts and in the face of certain loss. Mayor Pro Tem Ayers asked the City Attorney, if the citizens of Colleyville have an issue with the vote that was taken in May, what are the options that are available to the citizens of Colleyville. City Attorney Boyle stated, the local option provision of the Alcoholic Beverage Code effectively works both ways. There can be an affirmative local option election such as was held in May of this year and there can be a withdrawal or a negative local option election subject to the same provisions of the Alcoholic Beverage Code, which starts with a citizen initiated petition and ultimately ends with a referendum or vote by the citizens. Mayor Pro Tem Ayers asked how many times a year are elections allowed by the state of Texas. City Attorney Boyle stated there are two standard election dates, although I believe there is a one year window mandated by the Alcoholic City of Colleyville Page 13 Printed on 9/9/2010 City Council Minutes August 17, 2010 Beverage Code between local option elections on the same issue. Mayor Pro Tem Ayers asked if a citizen initiated petition could be prepared and a vote could be taken as early as next May that would reverse the vote from May 2010. City Attorney Boyle stated, I have not calendared it, but yes, that certainly seems realistic. Mayor Pro Tem Ayers asked the City Attorney, in the interim, are the City Council's hands pretty much tied as it relates to treating a zoning case involving a package store any different from any other zoning case. City Attorney Boyle stated, the City is obligated to treat these businesses the same as they do all similarly situated businesses and, as such, the City adopted provisions that effectively do just that. Convenience stores with gas stations are obligated to obtain a SUP as a requirement to open and so do package stores. When SUP's are before the City Council, the City Council has the full range of options before it as listed by staff. Based on a case by case and individualized consideration, the City Council can exercise its discretion based on the land use provisions as authorized and enabled by Chapter 211 of the Local Government Code. Mayor Pro Tem Ayers asked the City Attorney, is it accurate that because of the preemption issue, a City Council cannot vote as to whether they want a package store or not; the City Council must rely on the factors that involve all land use cases. City Attorney Boyle answered affirmatively. Councilmember Muhm asked the City Attorney what would happen to the package stores in business or in the process of obtaining licenses if the vote was reversed. City Attorney Boyle stated, in the event there was a successful reversal election, the entitlement to the licenses would be automatically revoked, the TABC licenses would be revoked and, similarly, the SUP's would become invalid. Mayor Pro Tem Ayers moved to approve Ordinance 0-10-1762. Mayor Kelly seconded the motion. Discussion ensued regarding building design scores, enhancements to the building design and location of the firewood on the property. City of Colleyville Page 14 Printed on 9/9/2010 City Council Minutes August 17, 2010 Councilmember Wollin made a friendly amendment that firewood will be confined adjacent to the property line and will not extend any further than ten feet south of the north property line. Mayor Pro Tem Ayers and Mayor Kelly accepted the friendly amendment. The motion carried by the following vote: Aye: 5 -David Kelly, Carol Wollin, Jon Ayers, Tom Hart, Mike Taylor Nay: 2 -Michael Muhm, Stan Hall Mayor Kelly recessed the meeting at 9:25 p.m. and reconvened at 9:41 p.m. 5b 0-10-1763 Approval of a request for a Special Use Permit for a Package Store on Lot 4B, Block 1, of the Brown Trail-West Addition located at 4405 Colleyville Boulevard, Case ZC10-012 Mayor Kelly read the caption of Ordinance 0-10-1763. Community Development Director Ron Ruthven provided an overview of the request for a SUP and stated the applicant has changed the name of the proposed business from Liquorville to Mirage Fine Spirits and, at City Council direction, the following amendments were added to the proposed ordinance: that all signage advertising the package store be removed in its entirety at the expense of the business and/or property owner within 30 days of abandonment; that the shared parking agreement with the property to the north not be a condition of obtaining a certificate of occupancy, but rather the provision be a recommended action and that the future right-of-way acquisition for the widening of SH26 be determined for the purposes of requiring the applicant to plant additional trees along SH26. Mr. Ruthven further stated a super majority vote is required for approval since the opposition within 200 feet of the subject property exceeds 20% and the Planning and Zoning Commission recommended approval. Mayor Kelly opened the public hearing. Mr. Atef Henary, 500 Bridlewood Court, applicant, provided information regarding the site plan and business reputation. Mr. David Fink., 6500 Ponderosa Lane, spoke in opposition to the proposed ordinance and regarding the traffic patterns and volume around the business location. City of Colleyville Page 15 Printed on 9/9/2010 City Council Minutes August 17, 2010 Mr. James Brown, 5906 Yorkshire Drive, spoke in opposition to the proposed ordinance and regarding alcohol related deaths and underage drinking statistics. Ms. Tisha Ghormley, 502 North Green Meadow Street, spoke in opposition to the proposed ordinance and regarding the interpretation and enforcement of the City's development standards. Mr. Ron Rotthaus, 2203 Cottage Oak Lane, expressed appreciation to the City Council for their service and spoke in opposition to the proposed ordinance, and regarding the effect of alcoholism on families and communities. Mr. David Medlin, 605 Montreaux Avenue, spoke in opposition to the proposed ordinance and regarding the potential traffic and parking issues at the location. Mr. Alan Greer, 2504 Mulberry Court, spoke in opposition to the proposed ordinance and regarding potential traffic and parking issues at the location and impact to surrounding properties. Mr. Emad Mikhail, 4100 Bridlewood Court, spoke in support of the proposed ordinance and regarding economic development and financial impact of alcohol sales. Mr. Fred Ballinger, 304 Bandit Trail, spoke in opposition to the proposed ordinance and regarding the building design and landscaping and enhanced development standards. Mr. George Coleman, 6402 Emerald Drive, spoke in opposition to the proposed ordinance and regarding traffic issues at the location. Ms. Kirstin Herrera, 5104 Green Hill Lane, spoke in opposition to the proposed ordinance and regarding the number of liquor stores in Fort Worth and requested information regarding the process for obtaining a package store license and the status of package stores if the vote for package stores was reversed. The following citizens did not wish to speak but wished to record their opposition to the proposed ordinance: George Dodson, Thomas, Crabtree, Jr., Sheri Tesar, Kyle Appling, Michelle Appling, Jerry Welch, Judy Welch, Richard Schaulin, Ketan Patel, Kristen Martin, Otto Hektor, Gary Phillips and Teresa Phillips. There were no others present wishing to speak and Mayor Kelly closed the public hearing. City of Colleyville Page 16 Printed on 9/9/2010 City Council Minutes August 17, 2010 Mayor Pro Tem Ayers stated when we discussed the first case, it was stated we cannot treat a Land Development Code case such as this different whether it involves a request for a package store versus a convenience store, but as a SUP certain factors such as traffic circulation can be considered. This is different from the first case, in my viewpoint, because of the traffic circulation issue and it is also different from a compatibility and suitability standpoint because of the location; it is much closer to residences and much closer to businesses that do not suit this particular location as it relates to being near to a liquor store. There are some aesthetic issues with this particular location, as well as a safety concern with crime. The way the store is to be configured, it is my understanding there is some difficulty in seeing through the windows, some difficulty with the location toward the back of the property. As a consequence, taking the liquor issue out of it altogether and looking at this solely as a case involving the Land Development Code and whether or not, this particular business is suited for this particular location, it is my position, this is a different case than the first one. As a consequence, I have not heard anything from anyone else here, but, in my viewpoint, this particular request is not suited for this location for the reasons I have stated. Mayor Pro Tem Ayers moved to deny Ordinance 0-10-1763. Councilmember Muhm seconded the motion. Councilmember Hall asked the City Attorney to review the process for reversing the May 2010 election related to the sale of alcohol. City Attorney Boyle stated a reverse referendum would be commenced in the same manner as the one held in May and that would be a citizen issued initiative petition obtained from the County Clerk and, subsequently, filed with the County Clerk. Upon approval and certification by the County Clerk, an election would be called on the next available general election date, provided it is outside the one year prohibition or window in the Alcoholic Beverage Code. So, it is same process only in the negative rather than the positive. Mayor Pro Tem Ayers asked the City Attorney if there was a reversal, would there be an immediate revocation of the SUP ordinance, such that liquor could no longer be sold. City Attorney Boyle stated the first thing that would happen is the license with the Alcoholic Beverage Commission would be automatically revoked, thereby resulting in the subsequent invalidity of the SUP. Mayor Kelly asked the City Attorney if an applicant is given approval by City Council, what is the next step in terms of being able to open. Cify of Colleyville Page 17 Printed on 9/9/2010 City Council Minutes August 17, 2010 City Attorney Boyle stated the citizen is correct as there is a process for approval at the Alcoholic Beverage Commission and there are at least two paths, both of which are susceptible to and welcoming of public input. Councilmember Taylor expressed appreciation for citizen input and spoke regarding the results of the local option election. Councilmember Hall expressed appreciation for citizen input. Discussion ensued regarding the compliance of the SUP request with the Land Development Code and Code of Ordinance requirements, public safety issues, citizen opposition to the proposed ordinance and the requirement of a super majority vote by City Council for approval. Mr. Atef Henary spoke regarding the parking requirements, traffic volume and flow and site plan and requested time to conduct a traffic impact study. Community Development Director Ron Ruthven provided information regarding the process for determining potential traffic generation. Mayor Pro Tem Ayers called the question. Mayor Pro Tem Ayers stated the motion to deny is without prejudice. The motion carried by the following vote: Aye: 5 -Carol Wollin, Michael Muhm, Stan Hall, Jon Ayers, Mike Taylor Nay: 2 -David Kelly, Tom Hart City Attorney Boyle stated when a Planning and Zoning case is denied without prejudice, it allows the applicant to reapply without being subject to the one year window requirement in the event the application was denied with prejudice. 5c 0-10-1764 Approval of a request for a Special Use Permit for a Package Store on Lot 10, Block 23, of The Village at Colleyville Condo Addition located at 62 Main Street, Suite 110, Case ZC10-013 Mayor Kelly read the caption of Ordinance 0-10-1764. Community Development Director Ron Ruthven provided an overview of the Special Use Permit and stated the Planning and Zoning Commission recommended approval and the request meets all of the requirements in City of Colleyville Page 18 Printed on 9/9/2010 City Council Minutes August 17, 2010 the Village at Colleyville Planned Unit Development (PUD). Mayor Kelly opened the public hearing. Mr. Fred Ballinger, 304 Bandit Trail, spoke regarding the traffic flow around the business. Mr. George Coleman, 6402 Emerald Drive, spoke regarding parking spaces and traffic flow around the business. Mr. Alan Greer, 2304 Mulberry Court, spoke in opposition to the proposed ordinance and regarding development standards for package stores, building design score and alcohol tastings. Mr. Gary Phillips, 216 Valley View North, spoke in opposition to the proposed ordinance, and regarding the effect of alcohol on families and regarding the establishment of a fund to compensate victims related to alcohol abuse. The following citizens did not speak but wished to record their opposition to the proposed ordinance: George Dodson, Kristen Martin, Ketan Patel, Judy Welch, Richard Schaulin, Jerry Welch, Michelle Appling, Kyle Appling, Sheri Tesar and Thomas Crabtree. There were no others present wishing to speak and Mayor Kelly closed the public hearing. Discussion ensued regarding the building design score. Community Development Director Ron Ruthven spoke regarding the definition of change of ownership, the process for identifying and enforcing laws associated with a change of ownership and TABC package store tasting permits. Kate and Kevin Smith, applicants, stated it is not intended to have tastings involving liquor. Mayor Pro Tem Ayers moved to approve Ordinance 0-10-1764. Mayor Kelly seconded the motion. The motion carried by the following vote: Aye: 6 -David Kelly, Carol Wollin, Michael Muhm, Jon Ayers, Tom Hart, Mike Taylor Nay: 1 -Stan Hall City of Colleyville Page 19 Printed on 9/9/2010 City Council Minutes August 17, 2010 6. ORDINANCE(S): FIRST READING AND PUBLIC HEARING 6a 0-10-1765 Approval of amending and replacing Ordinance 0-88-671, amending Chapter 22-5 Sexually Oriented Businesses in the Colleyville Code of Ordinances, Case GC10-007 Mayor Kelly read the caption of Ordinance 0-10-1765. Community Development Director Ron Ruthven provided an overview of the proposed Sexually Oriented Businesses ordinance and stated this is an update to the current ordinance and staff recommends approval. Mayor Kelly opened the public hearing. Ms. Angela Kahle, 1605 Kingswood, asked if the proposed ordinance is more restrictive and if the fine increases. Mr. James Brown, 5906 Yorkshire Drive, spoke regarding the undesirable areas in Dallas and the desire to prevent sexually oriented businesses in Colleyville. There were no others present wishing to speak and Mayor Kelly closed the public hearing. Community Development Director Ron Ruthven provided information regarding the fine assessment, distance separation restrictions and administrative provisions provided by the proposed ordinance. City Attorney Matthew Boyle stated while there is broad latitude with the regulation of sexually oriented businesses the City is statutorily prevented from banning them citywide. 6b 0-10-1766 Authorizing the sale and issuance of $3,260,000 of Water and Sewer Refunding Bonds, Series 2010 and providing for the redemption of the obligations being refunded Mayor Kelly read the caption of Ordinance 0-10-1766. Assistant City Manager and Chief Financial Officer Terry Leake stated a recent analysis of the City's outstanding water and sewer debt yielded the potential to refund callable debt issues. The current outstanding callable debt totals $3,300,000 with an average interest rate of 4.92°/0 and the debt would be refunded with no extension of maturity. Under current market conditions, it is estimated the bonds could be refunded for a net present value savings of $194,111.38. Ms. Leake further stated City of Colleyville Page 20 Printed on 9/9/2010 City Council Minutes August 17, 2010 the sale is subject to favorable market conditions at the time of the sale and answered questions of the City Council. Mayor Kelly opened the public hearing. There was no one present wishing to speak and Mayor Kelly closed the public hearing. Mayor Kelly expressed appreciation to Jim Sabonis, Financial Advisor, First Southwest Company and staff for managing the bond issues. 7. RESOLUTION(S): READING AND PUBLIC HEARING 7a R-10-3257 Approval of a request for a temporary use permit for Four Seasons Markets to locate in the Village Front Door parking lot area located at 5204 Colleyville Boulevard, Case GC10-008 Mayor Kelly read Resolution R-10-3257 in its entirety. Community Development Director Ron Ruthven provided an overview of the request for a temporary use permit for Four Seasons Markets to establish a weekly farmers market in the parking lot of the Village at Colleyville. Economic Development Director Marty Wieder spoke regarding the economic development impact of the farmers market to the Village at Colleyville. Mayor Kelly opened the public hearing. Mr. Vincent Hirth, 3206 Christie Circle, Garland, Texas, applicant, provided information regarding Four Season Markets and vendors, economic impact to the community and marketing and advertising practices. There was no one present wishing to speak concerning this item and Mayor Kelly closed the public hearing. There was general discussion regarding vendor products and quality, types of payment, insurance, and trash collection and clean-up after the market. Mayor Pro Tem Ayers moved to approve Resolution R-10-3257. Councilmember Hall seconded the motion. City of Colleyville Page 21 Printed on 9/9/2010 City Council Minutes August 17, 2010 The motion carried by the following vote: 7b R-10-3258 Aye: 7 -David Kelly, Carol Wollin, Michael Muhm, Stan Hall, Jon Ayers, Tom Hart, Mike Taylor Approval of a proposal to set the ad valorem tax rate for Fiscal Year 2011 at $.3559 per hundred dollars of valuation 7c R-10-3259 Mayor Kelly read Resolution R-10-3258 in its entirety. Assistant City Manager and Chief Financial Officer Terry Leake stated pursuant to the State Texas Property Tax Code, the City has calculated all of the necessary calculations to adopt the Fiscal Year 2011 tax rate. Those include the effective tax rate which was calculated at $.372887. The proposed rate of $.3559 is lower than the calculated rate. Since that is the case, legislation requires that a city only need to publish the "Notice of Effective Tax Rate" and that was published Wednesday, August 11, 2010. In order to inform the citizens of Colleyville of the tax rate, the proposed resolution reflects the City Council's intention to adopt a tax rate of $.3559 per hundred dollars of valuation. The proposed tax rate is unchanged from the prior fiscal year. Mayor Kelly opened the public hearing. There was no one present wishing to speak concerning this item and Mayor Kelly closed the public hearing. Councilmember Taylor moved to approve Resolution R-10-3258. Councilmember Wollin seconded the motion. The motion carried by the following vote: Aye: 7 -David Kelly, Carol Wollin, Michael Muhm, Stan Hall, Jon Ayers, Tom Hart, Mike Taylor Assistant City Manager and Chief Financial Officer Terry Leake stated two public hearings will be held to consider adoption of the Fiscal Year 2011 tax rate on September 7 and September 21, 2010. Approval of amending the name and charge of the Celebrate Colleyville Steering Committee Mayor Kelly read Resolution R-10-3259 in its entirety. Mayor Kelly opened the public hearing. City of Colleyville Page 22 Printed on 9/9/2010 City Council Minutes August 17, 2010 There was no one present wishing to speak concerning this item and Mayor Kelly closed the public hearing. Councilmember Hall moved to approve Resolution R-10-3259, with the amendment to add three additional members to the Colleyville Events Steering Committee. Councilmember Taylor made a friendly amendment to add four additional members to the Colleyville Events Steering Committee. Councilmember Hall accepted the friendly amendment and stated the committee will be composed of fifteen members. Councilmember Muhm seconded the motion. 8. CITIZEN COMMENTS/PRESENTATIONS REGARDING ITEMS NOT ON THE AGENDA Mr. David Fink, 6500 Ponderosa Lane, spoke regarding access to the City Hall during City Council meetings and the condition of and improvements to the overflow parking lot at the Good Shepherd Community Church. 9. REPORTS: Senior Center Advisory Committee Minutes-March 18, 2010 Parks and Recreation Advisory Board Minutes -April 5, 2010 Senior Center Advisory Committee Minutes -May 20, 2010 Library Board Minutes -June 21, 2010 Planning and Zoning Commission Meeting -July 26, 2010 There was no discussion of this item. 10. ACTION/RESOLUTION: DISCUSSION AND CONSIDERATION OF A RESOLUTION RATIFYING COUNCIL AGENDA ACTION FOR THE MEETING OF AUGUST 17, 2010 -Reading and Public Hearing -Resolution R-10-3260 This resolution was not needed. 11. ADJOURNMENT: There being no further business before the City Council, Councilmember Taylor moved to adjourn and Councilmember Wollin seconded the motion. City of Colleyville Page 23 Printed on 9/9/2010 City Council Minutes August 17, 2010 The motion carried by the following vote: Aye: 7 -David Kelly, Carol Wollin, Michael Muhm, Stan Hall, Jon Ayers, Tom Hart, Mike Taylor Mayor Kelly adjourned the meeting at 11:45 p.m. APPROVED BY A VOTE OF __~ AYES, ABSTENTIONS ON THIS THE ~~_ DAY OF Minutes en and red by: ~~ Cynthia Singleton, TRMC, MC City Secretary NAYS AND O 2010. City of Colleyville Page 24 Printed on 9/9/2010