06.17.2003 Town Council MinutesO-
�.;F' Minutes (approved 7108103)
Regular Meeting of the Prosper Town Council
Planning, Development and Zoning Issues
601 S. Church Street
Prosper First Baptist Church
Children's Building (south wing)
Tuesday, June 17, 2003, 6:00pm
1, Call to Order/Roll Call.
Mayor Niswanger called the meeting to order at 6:06pm.
Council Members present: Mayor Charles Niswanger, Mayor Pro -Tem Michael Perry, Ane Casady, Karie Dalton and Russell Kaker. Lisa
Dritschler arrived at 6:11 pm.
Also present: Town Administrator Jennifer Finley, Director of Planning/EDC Doug Mousel, Public Works Director Bill Little, Town Engineer
Travis Roberts, Fire Chief Ronnie Tucker and Town Secretary Amber Phillips.
2. Discuss and possibly act to authorize Town Administrator to advertise for bids for the construction of a force main from the
Gentle Creek subdivision to the wastewater treatment plant and a gravity flow line with lift station from the Steeplechase subdivision
to the Gentle Creek subdivision.
Mayor Niswanger explained that the Town presently contracts a company to haul sludge from the Gentle Creek subdivision. The volume of
sludge is greatly increasing and will soon become cost prohibited. Other proposed subdivisions in that area would affect the sludge hauling
volume as well. Travis Roberts presented Council and provided cost estimates for various solutions to the problem. He estimated Spring 2005
for the completion of the North Texas Municipal Water District (NTMWD) line. Council discussed the various options with Mr. Roberts.
Jennifer Finley presented Council with a projected build out schedule for all subdivisions on record, including the subdivisions that would
impact the sludge hauling situation.
Motioned by Michael Perry and seconded by Russell Kaker to authorize the Town Administrator to advertise for bids for the construction of a
force main from the Gentle Creek subdivision to the wastewater treatment plant and a gravity flow line with lift station from the Steeplechase
subdivision to the Gentle Creek subdivision. Motion carried. Vote 5 to 0.
3 Discuss and Possibly act to authorize Town Administrator to initiate the bond process for the funding of sewer infrastructure
rp oiects and to authorize the Town Engineer to begin design of samer__ p o ects.
Ms. Finley presented Council with proposed costs associated with the construction of a sewer force main from the Gentle Creek Subdivision to
the wastewater treatment plant and the construction of a sewer gravity line from the Steeplechase lift station to the Gentle Creek force main,
slightly over $1 million. The completion of these projects would alleviate the costs associated with sludge hauling. She recommended a bond
to fund the project. For every $1 million bonded, the average annual cost to the Town would be approximately $75,000,00•
Michael Perry explained that the impact fees collected from various new subdivisions would aid in the cost of the bond.
Ms. Finley stated that the first step would be to set up a meeting between the Council and bond counsel to discuss the possibility of rolling
other projects into the bond as well. Appropriate funds must be available before proceeding with advertisement for bids on riew projects.
Motioned by Russell Kaker and seconded by Michael Perry to authorize the Town Administrator to initiate the bond process for funding of
sewer infrastructure projects and to authorize the Town Engineer to begin design of same projects. Motion carried. Vote 5 to 0.
4. Presentation of Staff Recommendation for two architectural firms for the Town Hall/Police Facility.
Jennifer Finley presented Council with a recommendation to begin interviews with two architectural firms to assist in the planning and
development stages of a Town HaVolice Facility She, Chief Kirk McFarlin and Doug Mousel had reviewed the proposals submitted as a
result of the request for qualifications (RFQ) and recommended Halff Associates and Perkins and Will as their top two recommendations.
Ms. Finley advised that conversations had transpired wilh Blue Star Lana regarding two properties, and Blue Star land requested (fie Town
provide them with sketches, layouts, needs assessment, etcr for determining which property would be more appropriate for Prosper. Mr.
Mouse( stressed the importance of [tie needs assessment packages and stated that the two recommended firms submitted the only RFQ's that
included needs assessment packages.
Lisa Dritschler agreed with the needs assessment package but questioned the present need for building design, as she felt it would be
monetarily wasteful. Ms. Finley explained that the design stage would not come until later in the process. The needs assessment and facilities
plan would be first.
Council agreed to move forward with interviews of the two firms recommended by Staff. No formal action taken.
5. Presentation by David Palmer, Cencor Realty, and Ted Wilson, Residential Stratenies, regarding commercial and residential
(eve o menti
Doug Mouse! introduced David Palmer, Cencor Realty and Ted Wilson, Residential Strategies.
Ted Wilson, Residential Strategies/Bob Templeton, School District Strategies: The presentation focused on the impact that North
Texas growth would potentially have on the Town and the School District. Improvements in the job market would be required in order to
maintain the current growth rate. Prosper represented one of the most affluent housing markets, being much higher than Frisco, McKinney
and Dallas.
Over the next few years, Mr. Wilson estimated 100 to 250 new units per year. In regards to the School District, they could potentially see a
growth rate of 150 to 750 new units per year over the next few years. The increased volume in the School District over the Town was due to
the Love Tract (a fresh water supply district planning 2,000 lots in the $90,000 - $130,000.00 price range) and the Light Tract (a municipal
utility district planning 1,900 lots in the $120,000 - $180,000.00 price range). Mr. Wilson gave an estimated timeframe for build -out of these
two developments as 2006 to 2007.
Bob Templeton explained that the key to understanding enrollment growth is understanding housing growth. Different price points also yield
the number of children per home and the age of the children. Mr, Templeton reviewed various price points in relation to the number of children
per home and age of the children.
Mr. Templeton felt that Prosper was on the edge of experiencing the rapid growth seen in Frisco. The School District would most likely
experience the same growth trends as tittle Elm, Frisco, etc Development of a concept plan would be needed early on in the planning
process in order to be proactive in handling the growth in relation to the School District. He recommended the School, Town Staff and
developers work closely to monitor the growth and assist each other through the changing times.
David Palmer, Cencor Realty: The presentation focused on the relationship between residential growth and retail/grocer growth.
Grocers look at the number of homes within a 3 -mile radius in determining where to position their stores and generally require 3,500 to 3,700
homes within that radius. Super -stores such as Target and Wal-Mart often look at larger areas of 5 to 7 -miles. Competition and traffic are also
factors in determining store locations. He stressed the importance of developing enough lots and density to attract retail developers to support
the Town's tax base. He felt it would be a couple of years before the grocery store/retail growth would cross over US380 and move into
Prosper.
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M, . Pa1 mie undeisWUu that residents are cienler ally agaillst llvinci near street liahts and businesses 'out excilai ed that all retail eve ltllaliv aUu 1J
residential development. It is the trade-off in developing a commercial tax base.
Size and thoroughfares should be taken into consideration in determining the ideal ratio of retail to residential. An !deal mix is generally not
over 20 to 25% commercial tax base unless it is an urban area. Mr. Palmer stated that it was too early in Prosper's development to make a
determination, but he felt that it would be difficult to attain the 20%.
Mr. Palmer advised that in communities such as Prosper, the sales tax base drives the property tax base. The commercial and residential
must fuse. in order to maintain a "livable' property tax base, Prosper would need more density to attract commercial developments and build
the sales tax base.
Ted Wilson, Residential Strategies, pointed out that growth is often slower at higher price points. The growth rate for the custom home market
is slow, too. From the standpoint of attracting retail and generating sales tax revenue, he felt it would be a slow process.
Sally Holmburg, resident residing at 1506 Riverhill Drive, stressed the importance of good budget management in relation to sustaining a
livable property tax rate. She asked Council not to "buy into high density'.
Bob Jameson, resident residing at 3411 Amberwood Lane, asked if Celina's projections would play into attracting retail/commercial to Prosper.
Mr. Palmer explained that Celina could be considered part of the trade area. The timing of roads, stoplights, etc, would play a large role as
well.
6. Discuss commercial and residential developmentpresentation.
Discussion occurred throughout the presentation.
0G�JL6It,
7, Discuss and possibly act io prioritize a work program for the Town's Planning Department.
Mr, Mousel had previously provided Council with a proposed work program for the Planning Department and requested feedback from each
Councilmember ranking the various projects listed. He advised that previously, he had not received feedback from Council; therefore, he
recommended the item be tabled until such time Council completed the rankings.
Mr. Mousel explained that after he received Council feedback, he would assign estimated timelines to the projects.
Lisa Dritschler felt that much of this project would fall under the Strategic Planning portion of the budget process.
Michael Perry commended Mr. Mousel for his work in prioritizing a work program.
Item tabled. No action taken.
8. Consider the initiation of a oublic hearinq_to amend the Town's Zoning Ordinance to allow for the sales of beer and wine for off -
remise consumption and for the sales of mixed beverages for on-site consumption in restaurants under specific conditions.
Mr. Mousel explained that if the appropriate number of signatures is secured, the Town will be eligible to pursue a local option election. In the
event a petition is submitted to call for a local option election, ordinances will need to be amended accordingly. In an attempt to be proactive,
he recommended Council initiate a public hearing to amend the Town's Zoning Ordinance to prepare for such. This would not necessarily
mean that Council supported the sales of beer and wine.
Council agreed to be proactive and offensive by allowing Mr. Mousel to proceed. If for any reason the local option election never occurred or
occurred and was unsuccessful, the ordinance could be amended.
Motioned by Michael Perry and seconded by Russell Kaker to initiate a public hearing to amend the Town's Zoning Ordinance to allow for the
sales of beer and wine for off -premise consumption and for the sales of mixed beverages for on-site consumption in restaurants under specific
conditions. Motion carried. Vote 5 to 0.
9. PUBLIC HEARING to consider and act upon a re -plat of Preston Lakes t3lock D, tots 2 and 3 being two lots on 0.6+1- acres on the
south side of Toledo Band Drive. 105 +1- feet east of Robinson Creek Drive 620 and 640 Toledo Bend Drive .
Motioned by Michael Perry and seconded by Lisa Dritschler to open the public hearing. Motion carried. Vote 5 to 0. Mayor Niswanger opened
the public hearing at 7:41pm.
Doug Mousel briefed Council regarding the requested re -plat. He explained that a metal building owned by Dan Christie was located south of
the subject property and encroached onto Lots 2 and 3. The purpose of the re -plat was to create Tract 1, which would enable the small portion
of Lots 2 and 3, on which the building was located, to be conveyed to the adjacent property owner.
Michael Dowdy, Dowdey, Anderson & Associates, Inc., and the owner and developer of Preston Lakes were present to answer questions.
Motioned by Lisa Dritschler and seconded by Michael Perry to close the public hearing. Motion carried. Vote 5 to 0. Mayor Niswanger closed
the public hearing at 7:42 pm.
10 Consider and possibly act upon a re -plat of Preston Lakes Block D Lots 2 and_3_ being,two lots on 0.6+1- acres on the south
side of Toledo Send Orive, 105 +1- feet east of Robinson Creek Drive (620 and 640 Toledo Bend Drive).
Motioned by Michael Perry and seconded by Lisa Dritschler to approve the re -plat of Preston Lakes, Block D, Lots 2 and 3, being two lots on
0.6+1- acres on the south side of Toledo Bend Drive, 105 +l- feet east of Robinson Creek Drive (620 and 640 Toledo Bend Drive). Motion
carried. Vote 5 to 0.
11 Consider and possibly act to award bid for Construction Manager at Risk for construction of a new central fire station..
Chief Tucker briefed Council regarding the concept of a Construction Manager at Risk (CM at Risk). He felt that it would provide a guaranteed
maximum price and an ultimate savings for the Towns. The savings would be Split in various areas between the CM at Risk and the Town in
order to give the CM at Risk initiative to save. He recommended Council award the bid for CNN at Risk to Pogue Construction. Bobby Phillips,
Pogue Construction, gave further description regarding a CM at Risk.
Robbie Reynolds, Prosper School Board Member, advised that the school had contracted with CM's at Risk on various projects and
experienced savings. He felt it would save the Town money as well.
Lisa Dritschler noted a large price difference between the different bids and felt that it meant there were several loop holes in the Request for
Proposal (RFP), She felt that the RFP should have specified 100% under General Conditions (Performance and Payment Bond), and the
actual amount of liability should have been specified under the Liability Insurance section of the RFP. She listed several other areas that she
felt should have been "hard bid" as well. She advised that she had "done her homework" and did not feel that enough information had been
put into the RFP which resulted in the inability for the CM's at Risk to provide competitive bids.
Mr. Phillips advised that the costs referred to by Ms. Dritschler were directly related to the cost of the project, and he felt the RFP had been
specific.
Chief Tucker explained that several questions arose regarding the submitted bids and the bid process; therefore, he had delayed having this
item placed on an agenda in order to provide adequate time to answer those questions. He presented Council with his research and findings
in relation to those questions. He explained that he had contacted the three lowest bidders, and they indicated no problems with the RFP and
found it to be a very standard form. The actual form came directly from the Town Attorney.
Bobby Phillips assured Council that integrity came first with their company and advised that their books would remain open through the entire
process in the event any questions arose.
Chief Tucker presented Council with the seven bids and stated that he felt any of the companies could provide a very high quality service. Two
local companies submitted bids but were unable to come in with the lowest price under the various graded criteria; however, both local
companies had volunteered, as citizens, to assist the Town throughout the process if they were not awarded the bid.
The architect, Kent Spurgin, had been very involved with the CM at Risk bid process. Mr. Spurgin explained the main differences between the
CM at Risk method and the General Manger (GM) method.
Bobby Phillips explained that they would work with the Council, as a team, through the entire process to direct the budget as Council saw fit.
The Council would know the exact cost of the project before construction began. Council approval of a change order would be the only way to
change that amount.
Lisa Dritschler questioned the $1,2million budget. She felt the project should be approached from a low point, possibly $1million, rather than
high. Kent Spurgin explained that the $1.2million figure was not associated with the CM at Risk bid. It was a rough number that he had
provided 2-112 months prior as a ballpark, perlsquare foot figure.
Michael Perry provided the new Council Members with a historical perspective on the project. He stated that Council had been working on the
project for several years. He felt confident with the amount of work and research that Chief Tucker had put into the project. He felt confident
that Chief Tucker had reviewed the bids from every angle and "done his homework".
Ms. Dritschler indicated that she did not share the same confidence level of Mr. Perry because of the way the job had been bid. She specified
Items 5 thru 8 and Attachment 2 related to insurance. If she were provided clarification on those items, she would share Mr. Perry's same level
of confidence,
Kent Spurgin felt that much of the clarification requested by Ms. Dritschler would need to be provided by legal counsel, From his experience in
the industry, he felt the Town Attorney would recommend re -bidding the entire process in order to assure that no one "had a leg up".
Bob Jameson, Prosper resident and CM at Risk bidder, expressed that his only concern was the need for clarification between the construction
costs versus administrative costs. He recommended Council insist that Pogue spell out, line -by-line, what made up their costs.
Ane Casady requested detailed figures be provided in relation to the bids, Chief Tucker advised that type of detail would be available after the
}lid -as awarded He exn!ainerl the ijnid1 ionass of the sitltatinn w (jiIP to the Town contracling wilh an architect prilor to the CM at Risk as
generally the CM at Risk is awarded first. It was not until after an architect was hired that Chief Tucker leamed of a recent change in
legislature which allowed municipalities to contract projects with CM's at Risk.
Chief Tucker explained that he had spent a great deal of time checking Pogue's references and presented those references to Council.
Because of their past performance, Pogue had one of the lowest bonding rates in the industry.
Michael Perry recommended Ms. Dritschler and Ms. Casady spend their time and efforts to make themselves comfortable enough to vote on
the issue. Ms. Dritschler explained that would require a "break down" of what had already been submitted.
Mayor Niswanger recommended tabling the item and asking legal counsel for direction regarding the clarification issue. He stated that he did
not want to delay the project or start the process over. If legal counsel agreed, clarification would be requested regarding any costs not
associated with the upfront costs (hard costs). Kent Spurgin recommended Council determine how they wished to proceed if the attorney
advised that clarification could not be made.
Motioned by Russell Kaker and seconded by Lisa Dritschler to table Item 11; obtain legal advice from the Town Attorney regarding clarification
of bids; and, in the event the Town Attorney determined it legal to request clarification, clarify Items 5 through 8 and the duplication of the
insurance on Attachment 2. Michael Perry opposed. For the record, he stated the reason for his opposition was due to his confidence in Chief
Tucker and the valid measures taken up to this point in the process. Motion carried. Vote 4 to 1.
12. Consider and possibly t to formalize a budget for the construction of the new central fire stations, as related to the 2001 Bond
Fund.
Council briefly discussed a budget for the construction of the new central fire station. Lisa Dritschler questioned whether bond money could be
used for soft goods. Staff agreed to obtain clarification. Ms. Dritschler also requested an itemized list regarding costs associated with the new
station.
Motioned by Russell Kaker and seconded by Ane Casady to table Item 12. Michael Perry opposed for the same reasons indicated in Item 12.
Motion carried. Vote 4 to 1.
13, Consider and gosssbly act to authorize the Town Administrator to execute an agreement between the cities of Allen, Frisco,
Plano and Prosper far the use of the Altera Frisco and Plano 800MHz trunked communications system.
Chief Tucker presented Council and advised that the Town is required to renew the contract annually. The costs associated with such a
system are too great for the Town to incur individually; therefore, they are shared with several other cities in the area.
Motioned by Michael Perry and seconded by Ane Casady to authorize the Town Administrator to :execute an agreement between the cities of
Allen, Frisco, Plano and Prosper for the use of the Allen, Frisco and Plano 800MHz trunked communications system. Motion carried. Vote 5
to 0.
14 Consider and possibly act to accept price uotatian from Consolidated Traffic Controls, Inc., in the amount of $9L325.D0, for the
purchase of 3M 0 ticom Emergency Vehicle Preemption Equipment.
Chief Tucker explained thatthe Opticom Equipment enables emergency vehicles to change the color of stoplights. Most cities (McKinney,
Frisco, etc.) already have such equipment; however, the City of Dallas, for example, does not because they waited too long and are now -
unable to afford it because of the large amount of stoplights in their city. For this reason, such equipment should be purchased early on so that
costs can be spread out over a period of time. Chief Tucker recommended Council approval. The equipment will be installed at the light
planned for FM1461 and Preston Road, and the total cost after installation by TXDOT will be $7,525.00.
Motioned by Michael Perry and seconded by Lisa Dritschler to accept a price quotation from Consolidated Traffic Controls, Inc., in the amount
of $7,525.00, for the purchase of 3M Opticom Emergency Vehicle Preemption Equipment. Motion carried. Vote 5 to 0.
15. Consider and possibly act to adopt Ordinance No. 03.48 amending the Towns Fee Schedule Ordinance No. 02.33, specifically
related to an adiustment to Comrnerrial Water Rates.
Ms. Finley explained that commercial water rates were originally established in November of 2002, which included a graduated rate scale with
excessive rates for usage over 100,000 gallons.
Ms. Finley met with representatives from Hanson Concrete on June 5, 2003, for the purpose of discussing the company's water bills. At that
time, they expressed concern with the excessive water rates and explained that they would be forced to drill another well on their property for
personal use if the Town did not lower the commercial water rates.
After meeting with Hanson representatives, Ms. Finley researched the issue and agreed that the charges were excessive, especially for these
particular users. She pointed out that these same rales are charged to other businesses such as Tree Source, whose livelihood depends on
watering trees, as well as the School District. She also felt that such excessive commercial rates could deter businesses from locating to
Prosper in the future.
Ms. Finley presented Council with three options to amend to Town's commercial water rates. She recommended Option 91 which would
benefit the local buswesses and school and still provide the Town a 58% profit on water sales. Her proposed recommendation took into full
consideration the Town's future costs associated with water, including payments to Frisco and North Texas Municipal Water District (NTMIJVD).
Because a conservative approach had been taken in projecting end -of -year revenues, she did not feel the rate decrease would have a
significant impact on the budget.
Motioned by Michael Perry and seconded by Russell Kaker to adopt Ordinance No. 0348, amending the Town's Fee Schedule Ordinance No,
02-33, specifically related to an adjustment to Commercial Water Rates, and to accept the recommendatlon labeled Option #1, as presented
by the Town Administrator Motion carried. Vote 5 to 0
16. Act to approve change order for the Sanitary Sewer Rehabilitation Project in which the contractor, RKM Utili Services Inc.
requests a net increase of $11,500.00 to the original contract amount of $lW975.00.
Bill Little presented Council and explained the reasons for the request for a change order.
After the project began, they discovered the Town's sewer line maps were incorrect and additional lines were found which required an
additional manhole. He advised that the inconsistencies in the maps were due to improper record-keeping years ago. Mayor Niswanger
elaborated on Mr. Lidle's comments and advised Council to be prepared for similar problems and discoveries as more of the clay lines are
rehabbed in the future.
Motioned by Michael Perry and seconded by Russell Kaker to approve the change order for the Sanitary Sewer Rehabilitation Project in which
the contractor, RKM Utility Services, Inc., requests a net increase of $11,500,00 to the original contract amount of $186,975.00. Motion
carried. Vote 5 to 0.
17.a. Consider and possibly act to adopt Ordinance No. 03.47(A), electing to have the Railroad Commission of Texas exercise
original iurisdiction over gas utility rates, operations, and services within the incorporated limits of the Town of Prosper concernm'
the TXU Gas Company statement of intent filed on May 23, 2003.
17.b. Consider and possibly act to adopt Ordinance No. 03-47(134, denying TXU Gas Company's request to change rates in the Town
of Prosper, as a part of the company's statewide gas utllt §ystem and
providing a requirement for a prompt reimbursement of costs incurred by the Town.
17.c. Consider and possibly act upon Resolution No. 03.47(C) to suspend the effective date of the TXU Gas Dist6buti_on's request
for rate change and to approve the cooperation with other cities within the TXU Gas Distribution.
Amber Phillips briefed Council regarding her research on the issue and her conversation with the Town Attorney. Gerald Perrin, Oncor
Representative, was also present to answer questions. Council felt that 17.c,, suspending the effective date of the request for rate change,
would protect the Town and be in the best interest of the residents.
Motioned by Michael Perry and seconded by Russell Kaker to adopt Ordinance No. 03-47(C) to suspend the effective date of the TXU Gas
Distribution's request for rate change and to approve the cooperation with other cities within the TXU Gas Distribution, upon recommendation
of the Town's Legal Counsel. Motion carried. Vote 5 to 0.
19. Adjourn.
Mayor Niswanger adjourned the meeting at 9:27pm.
Attest:
g - ,
Town Secretary Amber Phillips
Mayor Ch Niswanger