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04/28/1994 MINUTES 6 MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION April 28, 1994 The Paris Economic Development Corporation met in a regular meeting on Thursday, April 28, 1994, at 4:00 P.M., in the City Hall, City Council Chambers, Paris, Texas. Chairman Philip R. Cecil called the meeting to order with the following board members present: Curtis Fendley, and Leon Williams. Also present were ex-officio board members, Jo Ann Parkman, Ike Jewett (representing Gary Cunningham) and Michael E. Malone, City Manager. Chairman Cecil made note that Board member Barney Bray was not present at this time, but there was a quorum present. Chairman Cecil stated at this point in the agenda he would like to rearrange the order of the meeting. He said since Eric Clifford had been appointed to the City Council to fill a vacancy it was necessary that he resign his position on the Board and that the City Council had appointed Mr. Dick Amis to fill his position on this Board. He asked Judge Tom Hunt to come forward and administer the oath of office to Mr. Amis. After the oath was administered, Mr. Cecil officially welcomed Mr. Amis to the Board. 27 Chairman Philip Cecil stated the next item on the agenda was approval of the minutes from the previous meetings of the Paris Economic Development Corporation. Chairman Cecil asked if there were any corrections to the minutes of the previous meetings, there being none, Board member Curtis Fendley made a motion, seconded by Board member Leon Williams, to approve the minutes as presented, and the motion was approved unanimously. Chairman Cecil stated the next item on the agenda was the financial report, and asked Mr. Gene Anderson, Finance Director to go over this information. Mr. Anderson stated he had been able to obtain an Employer's Identification Number from the Internal Revenue Service which allowed him to set up a separate bank account this past week. Mr. Anderson stated for the allocation period ending February, 1994, the total payment to the City was $284,708.30, including $1,450.12 interest to date. He said this amount was transferred into an interest bearing account which may cause this financial report in future months to look slightly different than this one. Mr. Cecil stated that the trend appeared to be, that routinely they receive between $40,000.00 to $55,000.00 which lags two months before it is actually received. Mr. Anderson said there are a couple of months that will probably end up being an exception. He said he could do a projection on the other months based on the City's past history. Mr. Cecil stated he felt a projection would be very helpful to the Board. Mr. Anderson said he will be glad to do a projection month by month and have that at the next meeting. Mr. Cecil called for questions regarding the report. He said if there were none, it would be appropriate for a motion to have this report received. Board member Dick Amis made a motion, seconded by Board member Curtis Fendley, to receive the financial report as presented, and the motion was approved unanimously. Chairman Cecil advised the Board that Eric Clifford was Secretary/Treasurer and was responsible for having the agenda prepared each month as well as having a certain amount of control over the funds, and this position needs to be filled. He asked for nominations for election to the office of Secretary/Treasurer. Board member Leon Williams nominated Dick Amis for election to the position of Secretary/Treasurer, which was seconded by Board member Curtis Fendley, and the motion was approved unanimously. Mr. Cecil advised Mr. Amis that the Corporation's Bylaws expand on the duties of Secretary/Treasurer. Chairman Cecil advised the Board regarding item no. 6 on the agenda that the Pace Group was employed to accomplish some work which included the Flexible Incentive Program and the Business Retention Survey. He advised the Incentive Program was presented to him in rough draft form earlier this week as well as to Board member Fendley, and there were several items in the information which needed to corrected and completed. He said Brenda Schull was scheduled to be at this meeting to go over this information, and they have asked to be excused from this meeting. He said they would like to appear before this Board on Thursday, May 12, 1994 at 4:00 P.M. to present the Program. He had asked them to be at the regularly scheduled meeting in May, but Mr. Lovorn could not be here on that date and May 12, 1994, would be the most convenient time for him to be here. Board member Williams stated he would not be able to be here at that time. Mr. Cecil asked the other members of the Board, and they said May 12th was fine with them. Mr. Cecil said if the date was good for Mr. Bray as well, he felt they would go ahead and try to set the meeting date for May 12, 1994, because it would probably be June before Mr. Lovorn could be available again. Mr. Williams said that was fine with him. 29 stated the point is that those peple, other than the overtime, would be part of the City's budget anyway unless you employed them because of this job. Mr. Malone said other than the overtime and the equipment rental that is true. City Engineer Smith stated the total of those two invoices are $135,640.53. Mr. Smith said at that point in time the City had flow re-established to the plant which also services Kimberly Clark at that point. He said Kimberly Clark's lift station discharges into the manhole next to the driveway at B & W where the salaried employees park. He said this whole line from the highway to the lift station is serving Kimberly Clark, B & W, and Southwest Foundry. Mr. Malone said under the present environmental regulations the discharge from plants like B & W and Campbell's Soup have been improved significantly. He said, in fact, what has happened to this line is, that probably in years prior to the type regulations we are under now with industrial pretreatment orders, the actual damage to the line was probably due to the input of the plant into the line. He said normally when someone damages your equipment you would go back to them. He said this has been much the same case we have had with other industries in Paris because at one time there was not really any real regulations. He said had these type materials not ever been introduced into the system the line would probably have held for many more years. Chairman Cecil asked if the line served any residential customers. Mr. Smith said yes, that the line proceeds on up to Brown Avenue and stops around Washington Street. Chairman Cecil said it would be accurate to say then that for the most part this line is used for industrial use, and Mr. Smith agreed. Mr. Smith said before they started this line he applied normal engineering techniques looking at areas served and estimated how much flow could be generated from a plant. He said that is how he determined it would be prudent to use a 15" line. He said he could not see going back with an 8" line and then they would not be able to do anything with it if someone wanted to site another industry in that area. He said the line is oversized with a lot extra capacity. He said the project still lacks clean up and the flow still needs to be reversed on approximately 100 ft. of sewer to make it work more properly. He said there still exists on the south side of the railroad tracks approximately 800 ft. of the 8" concrete pipe, and it is the same type we had this problem with which needs replacing. Mr. Smith said they are going to try to wait until summer to finish the rest of the project. Chairman Cecil asked City Manager Malone and City Engineer Smith what specifically their request was. City Manager Malone stated the City is asking for reimbursement to the Water and Sewer Funds where the money came from which included the approximate $99,000.00 plus the invoices from Public Works Department. Mr. Malone also said when the City completes the project in the summer which would be labelled Phase II they would come back to the Corporation at that time. 31 Chairman Cecil said he felt it was appropriate for this board to take some action, but the question was how much action to take. City Manager Malone advised the normal duties and the administrative order makes it important that we utilize every means possible to keep the rate structure lower, and the fact that the City has subsidized Kimberly Clark over $200,000.00 during the last three year period. He said that was money proposed in the rate structure where a rate not recommended by the consultant was adopted and has caused a problem. He said he felt that was the sort of thing which needs to be addressed with the economic development sales tax. He said the City would not submit an invoice to the Corporation that is not of a conservative nature. Mr. Malone clarified the fact that the City subsidized the rate structure for Kimberly Clark and they did so to the detriment of providing service for the system. He said that money was not recovered through other rates, and it will now be passed on to the residential rate payers and other commercial customers in this rate study. Mr. Malone stated we are in a serious situation with both our Water and Wastewater System because we failed to recover adequate revenues to fund the repairs and regulatory requirements that have been placed on the City. He said if he had not felt that the City would recover these funds and for the planned course of work, then he would have done it under an emergency basis by hiring outside contractors entirely. Board member Amis made a motion, seconded by Board member Fendley, to reimburse the City of Paris the cost of this project which includes the $99,264.78 actual cost of the vendors and private contractors accrued up to this point, plus the $36,375.75 for the Public Works invoices for a total of $135,640.53, which carried unanimously. City Manager Malone asked if the Board was going to have the regular meeting next month as well and Chairman Cecil said yes, that the only agenda item for the May 12, 1994, agenda was the receipt of the report from the Pace Group. Board member Fendley questioned if the bids were in on the Campbell Soup Road Project. City Manager Malone asked City Engineer Smith to give them some background on the Campbell Soup Road Project. Mr. Smith said they have called the project Soup Street Paving Project, and the bids are to be opened on May 3, 1994. He said Hilliard & Sons, Jerry Bob Stephens and Drake Construction have picked up plans. Mr. Smith said they the expected this project to run around $135,000.00 to $155,000.00 with a 12" reinforced concrete pavement thirty-nine feet wide. He said the projectstarts at the edge of the pavement on Hwy 271 and proceeds to the back of Campbell Soup Plant and stops at the east right-of-way line of the railroad tracks. He said there will be a temporary routing accomplished at the north property line of the J10 property. He said they are going to put in a temporary culvert and a driveway using three inch flexible base so the truck traffic can be maintained to Campbell Soup. 32 Chairman Cecil asked about the length of time to complete this project. City Engineer Smith said he put in the project 90 days to substantially completion which means the project will be useable in 120 days. Mr. Cecil asked if this project will be one that requires one payment at the end of the project. Mr. Smith said no, when a project exceeds $100,000.00, the law requires that it be bonded. He said whoever they award the project to will have to furnish the statutory limits on Workers Compensation, liability insurance, a performance bond which guarantees they will build the job, and a payment bond which guarantees payment to subcontractors and suppliers. Board member Amis asked a question about our payout or the City's payout to that company. Mr. Smith said he would anticipate partial payments on the job, monthly partial payments. City Manager Malone stated originally the City had planned to do this as an in-house project supervised by the Engineer, foregoing any bonding requirements and probably the time frame would have been a lot quicker. Chairman Cecil stated one thing the Board has to keep in mind and that is they have approximately $284,000.00 and they have just authorized spending approximately $136,000.00 leaving approximately $148,000.00. He questioned City Manager as to the payment of Day & Associates. Mr. Malone stated no, P.E.D.C. has not reimbursed Day & Associates for funds paid because they have not gotten all the information together on that amount. He said the reason they have moved so quickly on the B & W Project, even though it is not complete, is because we are in a situation where there is no activity going on in the collection system, and he has had to make a quarterly report to the E.P.A. Chairman Cecil reminded the board that the Campbell Soup Project is coming up as well as the B & W Phase II Sewer Project and they probably want to operate on a current basis. Board member Amis questioned City Manager Malone that along with the Day & Associates bill is there going to be another City appropriation of time like we saw in the B & W Sewer Project Phase I. City Manager Malone said yes, that there would be another bill. Mr. Amis said he would like to see the issue of the straight time, overtime policy addressed. Chairman Cecil asked for Mr. Malone to expand on this. City Manager Malone stated that the bylaws provide for payment for the services the City provides such as secretarial, mailing letters, City Attorney's time, etc. He said the City will have very conservative estimates. He said the City felt that at some point in time there will be less demand on the City particularly in light of the fact we hope to have an Economic Developer/Chamber Manager. He said the Board also has to remember as that change occurs there will probably be requests from the Chamber of Commerce to pay. He said he felt the City was more concerned with staff time such as secretaries, clerks and any materials purchased such as the notebooks which came out of a budget which the City did not have. Chairman Cecil asked when the City planned to submit these expenses. Mr. Malone said they are not in a hurry, and that they are in the Summer season when they can make their most productive gains. He said he is very concerned about some other things they need to be doing with budgeting coming up for the City as well Chairman Cecil said in regards to Mr. Amis' question, any time we use City employees, for example, taking the minutes, City Manager and City Attorney's attendance, the Board is going to have to pay for that, and he feels that is appropriate. City Manager Malone advised the City is going to take a conservative approach to the cost as economic development is an area of concern to City government. 3 Chairman Cecil asked for other items concerning the Board members. Board member Leon Williams asked how close they are to hiring an Economic Development/Chamber Manager. Ex Officio Board member Parkman said they had been checking references on a couple of the applicants and they would be meeting in the next few days to see if they could come to a consensus. She stated they have had some good applicants, and have not had to use the Pace Group as of this date. Chairman Cecil asked if there was any other business and there being none, he declared the board meeting recessed until the special meeting to be held on Thursday, May 12, 1994, at 4:00 P.M. CHAIRMAN, PHILIP R. CECIL ATTEST: ASSISTANT CITY CLERK, BARBARA DENNY