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1620 Regular Council Meeting August 27, 2012 Page 3 SUPPLY COMPANY LLC; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. PEDC Executive Director Steve Gilbert said this proposed abatement was for seven years at a 100 % and would assist the plant in installation of a new product line. He introduced Ray Oldach from Campbell Soup who told the Council that this new product line and associated technologies would create 68 new jobs over the life of the agreement and this was a capital investment of $45,000,000. Mr. Oldach said the Paris plant was competing with plants in Michigan and North Carolina for this expansion and that the folks at Campbell Soup's headquarters were very impressed with this incentive package. Mr. Oldach complimented PEDC, Mayor Hashmi and Paris officials as they were instrumental in getting this investment in Paris. Council Member Frierson expressed his appreciation to Campbell Soup, PEDC and Mayor Hashmi. Mayor Hashmi opened the public hearing and asked for anyone wishing to speak in support of this item, to please come forward. No one spoke. Mayor Hashmi asked for anyone wishing to speak in opposition to this item, to please come forward. With no one speaking, Mayor Hashmi closed the public hearing. A Motion to approve the Tax Abatement was made by Council Member Frierson and seconded by Council Member Wright. Motion carried, 7 ayes — 0 nays. Mayor Hashmi asked that item 13 be moved forward. A Motion to move item 13 forward was made by Council Member Frierson and seconded by Council Member Drake. Motion carried, 7 ayes — 0 nays. 13. Discuss and act on a RESOLUTION OF THE CITY COUNCIL OF PARIS, TEXAS, RESCINDING THE CONTRACT AWARD TO CLASSIC PROTECTIVE COATINGS AND AWARDING A CONTRACT TO MK PAINTING FOR THE REHABILITATION OF THE EAST ELEVATED WATER STORAGE TANK; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Public Works Director Ron Sullivan said at the meeting of May 14th the City Council awarded the contract to Classic Protective Coatings. He said despite the efforts of the City and the City's consultant, they had been unsuccessful in executing a contract with the low bidder. Mr. Sullivan also said the most recent communications with the contractor reflected they had been stalling for time and more recently asked for additional funds in the amount of $40,000. He stated that the consultant had contacted the second low bidder MK Painting and he indicated he would honor his bid of $837,000 for the base bid and that additives one and two would only be used if necessary. Mr. Sullivan recommended passing this resolution rescinding the contract to Classic Protective Coatings and awarding the contract to MK Painting. City Manager John Godwin said he would like to also discuss this item in executive session under contemplated litigation, based on a conversation that had taken place within the last hour.