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Regular Council Meeting November 26, 2012 i Page 4 14. Discuss, first reading, and possibly act on ORDINANCE NO. 2012 -036: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING SEC. 26 -1 COMPOSITION OF DEPARTMENT, OF CHAPTER 26, POLICE, OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS BY RENAMING CERTAIN SUPERVISORY POSITIONS WITHIN THE POLICE DEPARTMENT; AND OTHER MATTERS RELATED TO THE SAME; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, SAVINGS CLAUSE; AND DECLARING AN EFFECTIVE DATE. Chief Hundley said the name changes in Section 26 -1 Police Department Composition required making the same changes for police supervisors listed in Ordinance 26 -9, Seniority Pay. A Motion to invoke the super majority rule was made by Council Member Drake and seconded by Council Member Frierson. Motion carried, 7 ayes — 0 nays. A Motion to approve this item was made by Council Member Drake and seconded by Council Member Frierson. Motion carried, 7 ayes — 0 nays. 15. Discuss and act on a Resolution directing the City Clerk to publish notice of intent to issue Combination Tax and Surplus Revenue Certificates of Obligation in the maximum amount of $2,900,000 for the purpose of funding costs of water system improvements. Mr. Napier said the City of Paris had received a low interest loan from the Texas Water Development Board for a Drinking Water State Revolving Fund in the amount of approximately $3.4 million dollars. He said the loan would be used to fund 15 water line replacement projects from the City's Capital Improvement Project and the project was qualified as a green project enabling the City for 15% ($510,317) loan forgiveness. Mayor Hashmi said he was opposed to issuing certificates of obligation unless it was an emergency. Mayor Hashmi referenced that certificates of obligation require only the approval of the City Council, but that revenue bonds must be approved by a vote of the people. Council Member Wright reiterated Mayor Hashmi. Council Member Grossnickle asked if the worst lines had been selected and Mr. Napier answered in the affirmative. Council Member Frierson inquired if this was included in the 2.2 million budget item and Mr. Godwin said it was not, that this subject came up prior to budget time. Council Member Drake asked if they could get out of this. Finance Director Gene Anderson said that the City might not be able to get out of the engineering agreement, because work had begun. Council Member Lancaster expressed concern about how this would work with KSA's plan. Council Member Jenkins wanted to know the length of time it would take to pay this loan off. Mr. Godwin said it was typically twenty years. Mr. Godwin explained the engineer part was for design work. Mr. Godwin suggested City Council table this item pending additional information. A Motion to table this item was made by Council Member Drake and seconded by Council Member Lancaster. Motion carried, 7 ayes — 0 nays.