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Regular Council Meeting DecernW(.10, 2012 Page 4 (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1). Mayor Hashmi convened City Council into executive session at 5:45 p.m. 1680 15. Reconvene into Open Session and possibly take action on those matters discussed in Executive Session. Mayor Hashmi reconvened City Council into open session at 5:59 p.m. and informed the public that the item discussed in executive session pertained to economic development projects and details would be announced at a future date. 17. Discuss and act on RESOLUTION NO. 2012 -093: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND SURPLUS REVENUE CERTIFICATES OF OBLIGATION; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. A Motion to bring this item from the table was made by Council Member Grossnickle and seconded by Council Member Drake. Motion carried, 7 ayes — 0 nays. Mr. Godwin explained that Texas Water Development Board approved a low interest loan in late September 2012 and the City qualified for 15% loan forgiveness. He said the City had a lot of old water lines that would in fact be eligible for the project. Mr. Godwin also said there was no duplication of engineering work between Hayter and KSA; that loan participation would save $1,359,300 over 20 years; the loan program participation would save $211,917 over paying cash; that sale of COs was a very common, open and public action taken by city councils; that 15 water line replacement projects would be part of a 10 -year CIP regardless of type of financing; and that $3.4 million could be in addition to or a part of $50 million projected CIP cost. Mayor Hashmi confirmed with Mr. Godwin there would be a definite savings of 500,000 and that it would be a single negotiated sale. Mayor Hashmi said he was opposed to doing certificates of obligation unless there- was an emergency or dire need of it. He also said this was a separate issue in that it was free money for the City and that he was not as much opposed to certificates of obligation under these conditions. Council Member Wright said he also disapproved certificates of obligation but liked saving money and reiterated Mayor Hashmi. A Motion to approve this item was made by Mayor Hashmi and seconded by Council Member Grossnickle. Motion carried, 7 ayes — 0 nays. 18. Discuss and act on RESOLUTION NO. 2012 -094: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING AND APPROVING