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07/24/2017MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS July 24, 2017 The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday, July 24, 2017, at the City Council Chamber, 107 E. Kaufman, Paris, Texas. Present: Mayor: Steven Clifford Council Members: Billie Lancaster; Aaron Jenkins; Billy Trenado; Linda Knox; Cleonne Drake; and Paula Portugal City Staff: John Godwin, City Manager; Stephanie Harris, City Attorney; Janice Ellis, City Clerk; Gene Anderson, Finance Director; Larry Wright, Fire Chief; Bob Hundley, Police Chief; Clyde Crews, Fire Marshal; Kent Klinkerman, EMS Director; Doug Harris, Utilities Director; Alan Efrussy, Planning Director; and Priscilla McAnally, Library Director Opening Agenda 1. Call meeting to order. Mayor Clifford called the meeting to order at 5:30 p.m. 2. Invocation. Gene Anderson gave the invocation. 3. Pledge of Allegiance. Council Member Drake led the pledge. 4. Citizens' Forum. Marilene Rose, 2710 W. Brame — she said she worked for the City for forty years and asked that the City Council reinstate a COLA for retirees. She said the COLA was suspended ten years ago and was supposed to be temporary. She requested an item be placed on the agenda to discuss options. Dick Boots — he said he worked for the City most of his adult life and the strong point of any organization was the employees. He asked that the City Manager and the City Council appropriate funds for a COLA for retirees. Regular Council Meeting July 24, 2017 Page 2 Robert Milton — he said he was recently retired, and asked that the COLA be reinstated for retirees. Alice Pinalto, 810 33rd NE — she said she worked for the legal department for 34 years. She said she retired in 2011, and expenses were increasing while money was decreasing. She asked that City Council place this item on an agenda. Charles Whitley, 725 SE 38th — he said he worked for the police department for almost 30 years and would like to get the COLA reinstated. He said retirees had been there several times and received no response. Larry Schenk, 3765 Dawn — he said he served as the city attorney for 6 years and that this would have very little effect on him. Mr. Schenk asked that they consider reinstating the COLA for his colleagues because it was the right thing to do. Ken Higdon, Executive Director for the Chamber, 8 W. Plaza — he expressed his appreciation to volunteers and City staff with regard to the Tour de Paris, balloon and music festival citing the Chamber would not have been able to have these successful events without their support. Ronald Frazier, 1370 NE 7th — he said he was before them last month complaining about high grass and that the City staff had taken care of it and he wanted to express his gratitude. Consent AF-enda Mayor Clifford inquired of Council Members if they wished to pull any items from the consent agenda for discussion. There being none, a Motion to approve the consent agenda was made by Council Member Drake and seconded by Council Member Trenado. Motion carried, 7 ayes — 0 nays. 5. Approve minutes from the meeting on July 10, 2017. 6. Receive reports and/or minutes from the following boards, commissions, and committees: a. Main Street Advisory Board (6 -13 -2017) b. Building & Standards Commission (6 -19 -2017) 7. Receive June monthly financial report. 8. Receive June drainage report. 9. Receive demolition and code enforcement activity reports. 10. Approve RESOLUTION NO. 2017 -028: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS REPEALING RESOLUTION NO. 2017 -026 AND Regular Council Meeting July 24, 2017 Page 3 AMENDING RESOLUTION NO. 2016 -022 REGARDING A GRANT IN THE AMOUNT OF $11,898.55 FROM THE HOMELAND SECURITY GRANT DIVISION OF THE GOVERNOR, FOR A CITY OF PARIS — DIVE TEM PROJECT (NO. 3042901), TO CHANGE THE DESIGNEE OF GRANTEE'S AUTHORIZED OFFICIAL; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Regular Agenda 11. Conduct the second public hearing on a petition for disannexation filed by Jason and Whitney Boehlar for a 6.941 acre tract of land out of the John W. Williams Survey, Abstract No. 1001 in Paris, Lamar County, Texas, known as 6055 Clarksville Street, Paris, Texas. Mayor Clifford opened the public hearing and asked for anyone wishing to speak in support or opposition to this item, to please come forward. With no one speaking, Mayor Clifford closed the public hearing. 12. Receive citizen input on ballot for the November 7, 2017 election to abolish the economic development sales tax and to adopt a street maintenance sales tax. Mayor Clifford opened the discussion and said he would like to consider limiting people to two minutes, because they had a lot of people at the meeting. He further said if they did not have a lot of people who wanted to speak, they could allow more time. Michael Paris, PEDC Executive Director, asked the Council to pause this process because at the June 26 meeting there was discussion about options of 4A/4B but that was not considered. Mr. Paris outlined the reason a 4A was formed and then said 4A could fund some 4B projects but those specific projects would have to go to an election. Mr. Paris said the PEDC did not have goals listed on their web -site, nor did the City of Paris. He questioned how they could ask the voters where they were going when the entities did not know where they were going. Mr. Paris asked City Council to consider hiring a consultant and form a committee in order to decide when the community was ready to move forward. Linda Vandiver, 540 NE 21St Street, she asked the City Council to consider changing PEDC to a Type B Corporation. She cited the number of restaurants and businesses that had closed in Paris within the last ten years. Chris Bailey, plant manager for Turner Industries, said Turner was in Paris as a result of PEDC. Mr. Bailey said he supported Michael Paris and PEDC. Jim Bell, 7020 SE 39"', he said everyone had one common cause and that was to grow the community. Mr. Bell said he was against this because Paris had to have growth and jobs. He also said he thought it was important as to how PEDC was restructured, but this was not the way. Regular Council Meeting July 24, 2017 Page 4 Derek Hughes, 627 5t' NE, PEDC Board Member, said he would like City Council to postpone this and consider changing the PEDC to a 4A/4B, which would allow them to do infrastructure projects. A.W. Clem, 2980 Hubbard, said their law firm was trying to attract young lawyers to Paris to provide quality legal advice, but the community was getting harder and maybe it was the politics. Mr. Clem said the City needed an industrial program and Paris had a tremendous problem with poverty. Louise Moseley, 3915 Shannon, said the PEDC had not changed in twenty -four years. She said she thought it was important to let the voters decide how they want to spend their money. Mrs. Moseley also said even the president got elected every four years. Kelli Mallicote, co -owner of Body Guard, said they were PEDC's success story. She described how the company started and stated they created primary jobs and exceeded the number that was required in their incentive agreement. She said they manufactured goods locally and shipped them everywhere, including on a national level. She said PEDC had helped them in many aspects of their business. Mrs. Mallicote told the City Council she grew up here, went away to college, returned home and started a business. She further said PEDC was the reason they brought their business to Paris. She said the voters needed to be educated prior to taking this to a vote. Guy Dalrymple, 620 SE 39th Street, he said that we just had a national election and he was now listening to the same thing, which was they were saying the people here were not educated enough to vote. Mr. Dalrymple said it gets a little old. Bill Strathern, he said the people voted on PEDC 23 -24 years ago and the PEDC had spent $24 Million Dollars. Mr. Strathern said what they had to show for the money was a bumper plant, a good one, but questioned what the citizens got for $24 Million Dollars. Mr. Strathern encouraged the City Council to not postpone this, but move forward and just let the citizen's vote. A.J. Hashmi, 4510 FM 195, he said he did not understand why they were discussing this, because the City Council had already voted at their last meeting to call an election. He also said he was a proponent of cutting expenses, but did not think that every penny should go towards roads. Dr. Hashmi said he did not know if it could be done or not, but thought they should look at requesting half of the quarter cent go for EDC and the other half to roads. Anna Spencer, 1710 34th NE, she said she was in agreement with closing down PEDC because they received an average of $1 Million Dollars a year and there was so little to show for it over 24 years. Ms. Spencer said she looked at this as a business decision. Chad Lindsay, he said at the last meeting he asked City Council to delay the vote to give the new board members a chance on PEDC. He also said at the last meeting there were a lot of people who spoke and conversation was continuing tonight and should continue. Regular Council Meeting July 24, 2017 Page 5 Michael Glatfelter, 6h Street, he said they have three months from now to vote on this. He said there was 1.9 Million Dollars missing from PEDC and he tried to file a federal lawsuit but could not because he was was not an attorney. Mr. Glatfelter said he expected the City Council to find the PEDC missing money and spend it on something worthwhile. Sheila Coursey, Comptroller for Campbell Soup Co., she said it was a pleasure to have a great relationship with the City Council and PEDC. She said the support they had received was not only beneficial to Campbell Soup, but to the community as well. As competition gets tougher, Ms. Coursey said it was imperative that they have a strategic plan for economic growth for businesses and the community. Pam Anglin, President of PJC, she said PJC was the largest trainer of primary jobs and that PEDC had been supportive. She referenced the programs that PEDC helped support at the college, which in turn helped industries such as Turner Industries. Matt Frierson, 523 S. Church, he said when issues were important people showed up and that people had different opinions. Mr. Frierson said people should have a right to vote. He also said the way the ballot was written reflected that they did not think economic development was important. He asked City Council to amend the language, because they were talking about needed jobs. Ken Kohls, 3935 Brandyn, he said only 7% of the registered voters voted in the $40 Million Dollar Bond Election and at the last Bond Election only 2% voted. He recommended delaying this until November 2018, at a time when there were other elections and would have a bigger voter turn-out. 13. Discuss and act on ORDINANCE NO. 2017 -028: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, CALLING A SPECIAL ELECTION RELATING TO THE ABOLITION OF THE SALES AND USE TAX FOR ECONOMIC DEVELOPMENT AND THE ADOPTION OF A SALES AND USE TAX FOR THE REPAIR AND MAINTENANCE OF STREETS IN THE CITY OF PARIS, TEXAS; ESTABLISHING THE DATE OF THE ELECTION; PROVIDING FOR EARLY VOTING; DESIGNATING POLLING PLACES; APPOINTING ELECTION OFFICIALS; PROVIDING FOR NOTICE OF THE ELECTION; AUTHORIZING AN AGREEMENT WITH THE LAMAR COUNTY ELECTIONS ADMINISTRATOR FOR ELECTION SERVICES; APPOINTING AN EARLY VOTING BALLOT BOARD; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED COMPLIED WITH THE TEXAS OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. Mayor Clifford said this item was already voted on and approved by the City Council, so it could have been placed on the consent agenda but he chose to place it on the regular agenda to allow for citizen input and discussion. Regular Council Meeting July 24, 2017 Page 6 Mayor Clifford said the PEDC was created almost 24 years ago with the hope and promise of fostering economic development in Paris, and that many in the community did not believe this organization had been effective. Mayor Clifford also said the PEDC collected and spent roughly $1.2 Million Dollars in sales tax revenue each year. Mayor Clifford stated some were very disappointed with the results towards economic development, some suggested that the City of Paris try a different model for economic development, and others proposed diverting a part or even all of that $1.2 Million Dollars to streets and roads which were in need of repair. During the almost quarter of a century that the PEDC had been in existence, Mayor Clifford said the citizens of Paris had never been asked whether or not they wished to continue funding PEDC with their tax dollars. He explained some of the people living here 24 years ago were no longer living in Paris, and new people to community over the last 24 years had not been allowed to vote on this. In response to these citizens, Mayor Clifford said the City Council passed a motion mandating a ballot initiative redirecting the revenue from the PEDC to street and road repair. He cited concerns raised by Council Members Knox and Portugal, as well as concerns raised by the public. Mayor Clifford emphasized that neither he, nor anyone else on the City Council wanted to stop economic development in Paris and then said he wished to propose a compromise regarding economic development and improvement of streets and roads. Mayor Clifford proposed that the City Council approve the ballot language as presented which would, if approved by the citizens, would cease funding of the type A EDC and divert the approximately $1.2 Million Dollars to street and road repair. He further proposed that the $600,000 the City currently spent on street materials, road and bridge repairs be redirected toward establishing a program of economic development as defined by Chapter 380 of the Texas Local Government, if the citizens approve the ballot initiative. Mayor Clifford explained by doing this, they would be reserving $600,000 for economic development while doubling the amount of money spent on roads. Mayor Clifford explained in detail that the Chapter 380 program was more flexible than either a type A or type B EDC. He said there must also be safeguards and controls to insure that the public purpose is carried out and more specifically, all economic development projects must be approved by the City Council. He also explained that overhead and administrative costs relating to economic development should be substantially reduced which would increase the amount of money available for economic development. Mayor Clifford said an economic development director could be hired who would report to the City Manager, annual reports could be required, and metrics could be set up to define success. He also said having this type of economic development program, would allow the City to offer incentives of all types to new and existing businesses when appropriate to encourage economic development. Council Member Drake said as she was thinking about what was right for the citizens of Paris and after listening to everyone, she felt the community should have the right to vote on this. She said they did need economic development of some type, but that times had changed in the last 24 years. She said she was in favor of passing this tonight. She also said she was all for economic development. Regular Council Meeting July 24, 2017 Page 7 Council Member Jenkins said jobs were needed in Paris, he supported PEDC but at this time he thought that maybe they did need to do something different. Council Member Lancaster said she could not and would not take the right of citizens to vote on the direction the City is taking. She said it was important and the citizens were the ones they needed to listen to. Council Member Lancaster said she was in favor of the vote. Council Member Trenado said he was also in favor of the vote. He inquired of City Attorney Stephanie Harris if they could divide equally between economic development and streets the way the ballot was worded now. Ms. Harris said it depended on what kind of economic development they wanted to do, but not as written. She said the only economic development tax that was allowed under the law was a Type A and Type B. If they want to divide the money differently, they would have to word the ordinance differently. Trenado asked if the way it was worded now would require the funds to go to streets. Ms. Harris answered in the affirmative. Mayor Clifford said if citizens approve the proposition on the ballot, they could pass a resolution redirecting the $600,000 currently used for streets and materials to economic development and the end result would be the same. Mr. Godwin said if the voters approved the proposition that it would have to be voted on every four years. Council Member Knox said this has gotten very convoluted very fast. While she liked the idea about 380 in lieu of streets, they also needed to do the streets, but she said she was not in favor of abandoning economic development. She said she thought they needed to table this for a little more investigation and discussion. Council Member Portugal commended the mayor for bringing this to the Council. She favored tabling this to get answers because she said they did not know what a chapter 380 was. She said this was thrown at them without a workshop or Council retreat so they could talk about their vision for economic development. A Motion to accept the ballot language with the understanding that the City Council is planning to instruct the City Manager to divert the $600,000 from streets into a fund that would fund economic development through Chapter 380, if the proposition is approved by the voters was made by Mayor Clifford and seconded by Council Member Lancaster. Council Member Drake confirmed that the instructions to divert the $600,000 would only happen if the proposition passed. Mayor Clifford confirmed that and said if the proposition fails, then nothing would change. Council Member Knox said either way, the citizens would get to vote whether or not they have economic development to the tune of $600,000 or $1.2 Million Dollars. Mayor Clifford said that was correct. Mayor Clifford called for a vote on the Motion. Motion carried, 6 ayes - 1 nay, with Council Member Portugal casting the dissenting vote. 14. Discuss and authorize execution of a professional services agreement with Grantham & Associates to provide engineering design and related professional services for the Church Street Reconstruction Project, in an amount not to exceed $200,000. Regular Council Meeting July 24, 2017 Page 8 City Manager John Godwin explained that in May 2017, voters authorized a $9.5 Million bond sale for street improvements, and in July the City Council approved a 3 -year plan to address priority projects. He said Church Street from Hearne to Clarksville was identified as the top priority for full street replacement. Mr. Godwin also said Grantham & Associates, Inc. submitted a proposal for engineering and surveying services associated with the project, with a scheduled completion date for May 2018. A Motion to approve this item was made by Council Member Drake and seconded by Mayor Clifford. Motion carried, 7 ayes — 0 nays. 15. Discuss and act on ORDINANCE NO. 2017 -029: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS AUTHORIZING THE ISSUANCE AND SALE OF CITY OF PARIS, TEXAS GENERAL OBLIGATION BONDS, SERIES 2017; PROVIDING FOR THE PAYMENT OF SAID BONDS; APPROVING THE OFFICIAL STATEMENT; PROVIDING AN EFFECTIVE DATE; AND ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT. Finance Director Gene Anderson said on May 6, Paris citizens voted to issue $10 Million in GO Bonds, with $9.5 million dedicated to rebuild local streets and $500,000 for park improvements. Mr. Anderson introduced the City's financial advisor, Andrew Freeman with Samco Capital Markets, Inc. Mr. Freeman informed City Council that bids were received that morning at the Dallas offices from eight institutions, which was a remarkable turn-out for interest in the City of Paris bonds. Mr. Freeman explained the bond pricing, the bond debt service, and bond summary statistics. A Motion to approve this item was made by Council Member Lancaster and seconded by Council Member Trenado. Motion carried, 7 ayes — 0 nays. 16. Discuss and appoint one member to the Planning and Zoning Commission and one member to the Library Advisory Board. Mayor Clifford opened the floor for nominations to the Planning and Zoning Commission. Mayor Clifford nominated Mustafa Hashmi. There being no other nominations, Mayor Clifford closed the floor for nominations and asked for a vote. Motion carried to appoint Mustafa Hashmi to the Planning and Zoning Commission. Mayor Clifford opened the floor nominations to the Library Advisory Board. Council Member Knox nominated Rebecca Umphrey. There being no other nominations, Mayor Clifford closed the floor for nominations and asked for a vote. Motion carried to appoint Rebecca Umphrey to the Library Advisory Board. 17. Receive update on the drainage plan of work. Regular Council Meeting July 24, 2017 Page 9 Council Member Drake said she had requested this item be placed on the agenda and expressed appreciation to Mr. Godwin and Mr. McDaniel. Public Works Director Jerry McDaniel reviewed a map of drainage channels reflecting flooded areas, as well as the City's progress and plans. He said planned projects included Collegiate near Clarksville, West Center, South Church, Pine Bluff, York and Brownwood Circle. Following the presentation, Mr. McDaniel answered questions from City Council. 18. Discuss and provide direction to staff on the FY 2017 -18 budget for the City of Paris. Mr. Godwin outlined the highlights of the 2017 -18 recommended General Fund budget, which included increasing the tax rate of 50.195 cents per $100 of valuation to $55.195, as called for in the May bond election; a general raise for employees of 2.5 %, with the lowest paid employees receiving 5.0 %; a $2,000 raise for firefighters, to include all fire personnel below the chief ranks; an increase of $25.00 per month per employee to help cover increasing insurance costs, beginning January 1, 2018; replacement of SCBA equipment for firefighters ($40,000); one new ambulance and associated equipment; construction of a replacement EMS station in northwest Paris; costs related to implementing the ADA transition plan; pumps and filter replacement at the city pool, funding for improvements and updates to the City's website; one new full time employee each in drainage and code enforcement, both effective April 1, 2018; additional funding for contract mowing ($20,000) for Cox Field and the loop right -of -way, so that parks and code staffs can better concentrate on their regular duties; and implementation of a wellness program in the police department. Mr. Godwin said items that were not included in the budget were improvements or repairs to the exterior of the police and courts building; needed replacement equipment for streets; all- weather surfaces at the warehouse; a cost of living raises for retirees; additions and enhancements to the sports complex; and resurfacing of the swimming pool. Following the budget presentation, Mr. Godwin answered questions from City Council and reminded City Council that they would have a meeting every week in September. Council Member Drake said she would like something on the Agenda about a COLA for retirees and Mr. Godwin said they could discuss under this item. Council Member Knox said she would like additional information about the retiree pension fund. Mr. Godwin said the City of Paris was a part of the TMRS pension plan with the exception of the fire department, as they had their own plan. Mr. Godwin said that staff would provide them additional information. 19. Consider and approve future events for City Council and /or City Staff pursuant to Resolution No. 2004 -081. Council Member Drake inquired when the joint work session with code enforcement was scheduled, and Mr. Godwin said tentatively in October. Council Member Knox said she would like for the City as a whole to get a plan of where they wanted to be and that she would like more integration. Mr. Godwin said there were two forums in which they could address this, one as a City Council agenda or a work session. Council Member Knox favored a work session. Council Member Portugal suggested a one -half day City Council retreat to do some team building. Regular Council Meeting July 24, 2017 Page 10 20. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Drake and was seconded by Mayor Clifford. Motion carried, 7 ayes — 0 nays. The meeting was adjourned at 7:20 p.m. i :��% J. CLIMORD, •'