21 - Policy Regarding Approval of PEDC's nomination of Council MemberItem No. 21
Memorandum
TO: City Council
Grayson Path, City Manager
FROM: Stephanie H. Harris, City Attorney
SUBJ ECT: Adoption of policy regarding approval of PEDC Board of Directors' nomination of
sitting council member to fill one-year term on the Board
.DATE: July 27, 2020
BACKGROUND: On June 22, 2020, the City Council approved several changes to the Bylaws of
the PEDC including amendments set forth. in the following motion. as indicated by the Minutes:
"A Motion to increase the number of directors from five to seven members, and one of those
members being a sitting Council Member who will be selected by the PEDC for a term of one year
was made by Council Member Hughes and Seconded by Council Member Knox." The Motion
carried by the 5 votes required by the PEDC's bylaws in Section 10.4. (See Minutes of June 22,
2020 meeting, attached.) I had symptoms of COVID-19 and was tested on. that day, so I was not
present at the meeting, Because Texas Local Government Code Sec. 504.05 1 (b), provides that "a
director is appointed by the governing body of the authorizing municipality...," the Council cannot
delegate that authority to the Board of Directors; however, there is no prohibition. against providing
that the Board of Directors nominate a member subject to council approval. There is a separate
item on this agenda regarding adopting an amendment to the bylaws Which would provide for this.
STATUS OF ISSUE: Mayor Clifford has asked that I draft a policy for Council's consideration
expressing Council's intention to approve the PEDC Board's nomination of a Council. Member to
serve on the Board for a one-year to unless there are substantial mitigating factors to the
contrary. I have attached a proposed policy for your consideration.
BUD(i.ET: N/A
RECOMMENDATION: Consider and possibly approve the attached policy if Council approves
amendment to the PEI)C bylaws increasing the number of directors from 5 to 7, with one seat to
be filled by a sitting Council. member nominated by the PEDC and approved by Council to serve
a one-year term,
POLICY OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS REGARDING THE
APPOINTMENT OF COUNCIL MEMBERS TO SERVE ON THE PARIS ECONOMIC
M
" action 4.02 Number and Qualifications. The authorized number of Directors of this
Board shall be seven (7).
"'I'he City Council shall appoint the Directors of the Corporation. Six (6) Directors will be
nominated and approved by the City Council, and shall serve terms of three years as set
forth in Section 4.05 herein. One (1) Director shall be nominated by Corporation's Board
of Directors by majority vote prior to the City Council Meeting at which Board
appointments are made. Said nomination must be of a sitting City Council member, and
the nomination shall be subject to Council approval. The Director nominated by the
Corporation's Board of Directors and approved by City Council shall serve a to of one
(1) year. Each Director shall be a bona fide resident and shall reside within l.,amar County,
Texas, with the exception of the Director appointed fro the City Council, who shall be a
bona fide resident of the City of Paris as required by law. These seven (7).Directors shall
constitute the Governing Body of the Paris Economic Development Corporation.
"The City shall consider an individual's experience, accomplishments, and educational
background in appointing members to the Board.
"With the exception of the City Council member appointed and approved pursuant to the
preceding paragraph, no former or sitting member of the City's Council shall be eligible
for appointment to the Board until they have ceased to serve on City's Council. for a period
of at least one (1) year."
It is the intention of the City Council as expressed in this policy to approve the
nomination of the PEDC's Board of Directors of a Council Member to fill the seat referenced
in Sec. 4.02 unless there are substantial mitigating factors which, in Council's judgment,
indicate that the PEDC' Board's nomination is not in the best interest of the PEDC or the City