12-13-2021MINUTES OF THE REGULAR CITY COUNCIL MEETING
OF THE CITY OF PARIS, TEXAS
December 13, 2021
The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday,
December 13, 2021, at the City Council Chamber, 107 E. Kaufman, Paris, Texas.
Present: Mayor: Paula Portugal
Mayor Pro -Tem: Reginald Hughes
Council Members: Renae Stone, Mihir Pankaj, Linda Knox and
Clayton Pilgrim
City Staff: Grayson Path, City Manager; Stephanie Harris, City
Attorney; Janice Ellis, City Clerk; Gene Anderson;
Finance Director; Richard Salter, Police Chief;
Russell Thrasher, EMS Director; Thomas
McMonigle, Fire Chief, Doug Harris, Public
Utilities Director; M.A. Smith, Public Works
Director; and Clyde Crews, Fire Marshal
Absent: Council Member: Gary Savage
O ening A enda
Call meeting to order.
Mayor Portugal called the meeting to order at 5:30 p.m.
2. Invocation.
Finance Director Gene Anderson gave the invocation.
3. Pledge of Allegiance.
Mayor Pro -Tem Hughes led the pledge.
4. A. Citizens' forum
No one spoke during citizens' forum.
B. Announcement regarding "Kids Read for Free" Program.
Library Director Tim DeGhelder announced the Kids Read for Free Program and said if a
child checks out 20 items and is late returning it, the fine was $4.00. He said people gets busy
and routinely bring the items back but the parent will often limit the number of books a child
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December 13, 2021
Page 2
checks out because of this. Mr. DeGhelder explained that the library was now waiving fees on
children's books unless the item was lost or damaged.
Consent A Benda
Mayor Portugal 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 Pankaj and seconded by Council Member Knox. Motion carried, 6
ayes — 0 nays.
5. Approve minutes from the meetings of November 8, 2021 & December 1, 2021.
6. Receive reports and/or minutes from the following boards and commissions:
a. Planning & Zoning Commission (10-4-2021 & 11-1-2021)
b. Charter Review Commission (11-1-2021 & 11-15-2021)
c. Building & Standards Commission (10-18-2021)
d. Main Street Advisory Board (10-12-2021)
e. Historic Preservation Commission (9-8-2021, 10-13-2021 & 10-25-2021)
f. Paris Economic Development Corporation (10-19-2021)
g. Traffic Commission (10-5-2021)
7. Receive October monthly financial report.
8. Receive October and November Drainage Reports.
9. Receive Demolition and Code Enforcement activity reports for October and November.
10. Approve RESOLUTION NO. 2021-045: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PARIS, TEXAS TO PARTICIPATE WITH THE TEXAS
DEPARTMENT OF TRANSPORTATION IN THE CONSTRUCTION OF SITES
WITHIN THE CITY OF PARIS, TEXAS FOR THE INSTALLATION OF FIXED
LICENSE PLATE READERS (FLPR), INCLUDING THE DESIGN AND
MAINTENANCE OF THOSE CONSTRUCTED SITES; MAKING OTHER FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
11. Confirm the appointment of Jim Noble to serve on the Civil Service Commission.
12. Approve RESOLUTION NO. 2021-046: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PARIS, TEXAS; APPROVING AN ADDENDUM TO THE
EMPLOYMENT AGREEMENT DATED MARCH 9, 2020 BETWEEN THE CITY
AND GRAYSON PATH; AUTHORIZING THE MAYOR TO EXECUTE SAID
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December 13, 2021
Page 3
CONTRACT ADDENDUM; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
13. Approve RESOLUTION NO. 2021-047: A RESOLUTION OF THE CITY OF PARIS,
TEXAS, APPROVING AND AUTHORIZING THE EXECUTION OF ASSIGNMENT
OF AN AIRPORT GROUND LEASE AGREEMENT BETWEEN SHERADON
CARTER AND THE CITY OF PARIS FOR HANGAR A-7 AT COX FIELD AIRPORT
TO COLLIN HADLEY; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
14. Approve RESOLUTION NO. 2021-048: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PARIS, TEXAS APPROVING A THREE-YEAR RENEWAL
CONTRACT WITH SANITATION SOLUTIONS, INC. IN THE AMOUNT OF $36.63
PER TON FOR DEMOLITION AND DEBRIS REMOVAL OF CONDEMNED
STRUCTURES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO
THE SUBJECT; AND DECLARING AN EFFECTIVE DATE.
15. Approve RESOLUTION NO. 2021-049: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PARIS, TEXAS, ACCEPTING MONETARY DONATIONS FROM
THE RAM FOUNDATION AND THE CECIL FOUNDATION FOR USE IN THE
HOME PROGRAMS; APPROVING MEMORANDA OF UNDERSTANDING
REGARDING THE PROVISION AND USE OF SAID FUNDS AND AUTHORIZING
THE CITY MANAGER TO EXECUTE SAME MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO TH SUBJECT; AND PROVIDING AN EFFECTIVE
DATE.
16. Approve Addenda III and Addenda IV with Resource Management & Consulting
Services for third party administration of equipment and project purchases using
American Rescues Plan Act Funding in the amounts of $14,700.00 and $35,000.00
respectively and authorize the City Manager to execute all necessary documents.
17. Award a bid to APSCO, Inc. in the amount of $885,237.60 for water line materials for the
ARPA Funding Water Line Extension and Redundancy Project.
18. Approve RESOLUTION NO. 2021-050: A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF PARIS, TEXAS FORGIVING CERTAIN CIVIL PENALTIES
ASSESSED AGAINST THE PROPERTY LOCATED AT 1633 W. HENDERSON
STREET; FINDING A PUBLIC PURPOSE IN SUPPORT OF SAME; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
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December 13, 2021
Page 4
19. Approve the Master Service Agreement with SpearTip, LLC for 12 -month cybersecurity
professional services in an amount of $28,800.00.
20. Approve the Final Plat of the Bray Addition, Lot 1, Block A, LCAD Property ID 18178
and 18179, located at 2354-2356 E. Cherry Street.
21. Approve the Final Plat of the HTEAO Addition, Lots 1 and 2, Block A, LCAD Property
ID 402602, located at 2900 Lamar Ave.
22. Approve the Final Plat of the Sky 4th Street Addition, Lot 1, Block A, LCAD Property ID
15941 and 15942, located at 415-525 S.W. 4th Street.
Re ular A yenda
23. Discuss, conduct a public hearing, and act on ORDINANCE NO. 2021-048: AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, TEXAS,
AS HERETOFORE AMENDED, SO AS TO REZONE CITY OF PARIS BLOCK B,
LOT 6 LOCATED AT 2560-2562 KESSLER DRIVE, FROM A ONE -FAMILY
DWELLING DISTRICT NO. 2 (SF -2) TO A TWO-FAMILY DWELLING DISTRICT
(217); DIRECTING A CHANGE ACCORDINGLY IN THE OFFICIAL ZONING MAP
OF THE CITY OF THE CITY; PROVIDING A REPEALER CLAUSE, A
SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
City Planner Andrew Mack said items 23 and 24 were related to each other. He
explained the City of Paris initiated this change because there was an adjoining lot that already
had a duplex constructed on the property. He said this change would eliminate the residences as
a non -conforming dwelling by making it conforming. Mr. Mack said Staff and the Planning &
Zoning Commission recommend approval of the rezoning.
Mayor Portugal opened the public hearing and asked that anyone wishing to speak about
this item to please come forward. With no one speaking, Mayor Portugal closed the public
hearing.
A Motion to approve this item was made by Council Member Pankaj and seconded by
Council Members Stone and Pilgrim. Motion carried, 6 ayes — 0 nays.
24. Discuss, conduct a public hearing and act on an Ordinance considering the petition of
Judy Daughtrey for a change in zoning from a One -Family Dwelling District No. 2 (SF -
2) to a Two -Family Dwelling District (2F) in the Willowcrest #2 Addition, Block A, Lot
7, located at 1315 N.E. 26th Street (LOAD 39756)
Mr. Mack said the Planning & Zoning Commission recommended denial at their meeting
on December 6, 2021. He also said that the proposed duplex would be the only duplex residence
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December 13, 2021
Page 5
along the first block of 26th Street N.E., however there were duplexes developed along Kessler
Drive to the southwest and in the cul-de-sac area at the north end of the block on 26th. Mr. Mack
said initially staff recommended approval based upon the Future Land Use Map but after
receiving objections during the public hearing proceedings for the case, that staff was now
recommending denial.
Mayor Portugal opened the public hearing and asked that anyone wishing to speak about
this item to please come forward.
Judy Daugherty spoke in support of the zoning change citing a need for rental property
and that she had been a rental property owner for thirty years. Lea Rogers opposed the zoning
change citing that she lived directly across the street and stated she was not opposed to a rental
single-family dwelling going in there. Scott Hearne opposed the zoning change citing he owned
the house next door and encouraged Ms. Daugherty to build a single family home on the
property.
With no one else speaking, Mayor Portugal closed the public hearing.
Council Member Pankaj said he favored staying in-line with the decision of the Planning
& Zoning Commission. A Motion to deny this zoning change was made by Council Member
Pankaj and seconded by Council Member Knox. Mr. Mack asked that they also instruct staff to
bring back the Resolution setting out the denial. A Motion to amend the Motion and include
direction to staff to bring back a Resolution denying the zoning changes was made by Council
Member Pilgrim and seconded by Council Member Pankaj. Motion carried, 6 ayes — 0 nays.
25. Discuss, conduct a public hearing and act on ORDINANCE NO. 2021-049: AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, TEXAS,
AS HERETOFORE AMENDED, SO AS TO REZONE CITY OF PARIS BLOCK 309,
LOT 20 AND PART OF LOT 21 LOCATED AT SW LOOP 286, FROM AN
AGRICULTURAL DISTRICT (A) TO A HEAVY INDUSTRIAL DISTRICT (HI);
DIRECTING A CHANGE ACCORDINGLY IN THE OFFICIAL ZONING MAP OF
THE CITY; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A
SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
Mr. Mack explained that the PEDC requested a zoning change to accommodate industrial
uses of all types. He said the changes would be consistent with the Future Guided Land Use of
the property and consistent with the City's adopted Comprehensive Plan & Future Land Use
Map. Mr. Mack also said that the Planning & Zoning Commission recommended approval, as
did staff.
Mayor Portugal opened the public hearing and asked that anyone wishing to speak about
this item to please come forward. With no one speaking, Mayor Portugal closed the public
hearing.
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December 13, 2021
Page 6
A Motion to approve this item was made by Mayor Pro -Tem Hughes and seconded by
Council Member Pilgrim. Motion carried, 6 ayes — 0 nays.
26. Discuss, conduct a public hearing and act on ORDINANCE NO. 2021-050: AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS;
AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, TEXAS,
AS HERETOFORE AMENDED, SO AS TO REZONE CITY OF PARIS BLOCK 325,
LOT 4 AND 6, LOCATED AT 1130 N.W. 30TH STREET, FROM A ONE -FAMILY
DWELLING DISTRICT NO. 2 (SF -3) TO A HEAVY INDUSTRIAL DISTRICT (HI);
DIRECTING A CHANGE ACCORDINGLY IN THE OFFICIAL ZONING MAP OF
THE CITY; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A
SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
Mr. Mack explained this zoning change request was from PEDC and was for the same
type purpose as item 25. He said that the Planning & Zoning Commission and staff
recommended approval of this zoning change.
Mayor Portugal opened the public hearing and asked that anyone wishing to speak about
this item to please come forward. With no one speaking, Mayor Portugal closed the public
hearing.
A Motion to approve this item was made by Council Member Pankaj and seconded by
Mayor Pro -Tem Hughes. Motion carried, 6 ayes — 0 nays.
27. Discuss, conduct a public hearing and act on ORDINANCE NO. 2021-051: AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, TEXAS,
AS HERETOFORE AMENDED, SO AS TO REZONE CITY OF PARIS BLOCK 311,
LOT FRONT PT 16 LOCATED AT 3660 CLARKSVILLE STREET, FROM A
NEIGHBORHOOD SERVICE DISTRICT (NS) DISTRICT (NS) WITH A SPECIFIC
USE PERMIT (SUP) FOR A SINGLE-FAMILY RESIDENCE; DIRECTING A
CHANGE ACCORDINGLY IN THE OFFICIAL ZONING MAP OF THE CITY WITH
CONDITION; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A
SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
Mr. Mack explained that the request was not for changing the zoning but to add a
Specific Use Permit. Mr. Mack said the current buyer was going to discontinue an existing pet
grooming business and continue occupying the single-family residence for only residential
purposes. Without a SUP, Mr. Mack said the current buyer would be unable to receive
residential water service and home garbage pick-up. He also said the Planning & Zoning
Commission, and the staff recommended approval.
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December 13, 2021
Page 7
Mayor Portugal opened the public hearing and asked that anyone wishing to speak about
this item to please come forward. With no one speaking, Mayor Portugal closed the public
hearing.
A Motion to approve this item was made by Council Member Pilgrim and seconded by
Mayor Pro -Tem Hughes. Motion carried, 6 ayes — 0 nays.
28. Discuss and act on RESOLUTION NO. 2021-051: A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING ROBERT VINE AS THE
ASSISTANT CITY MANAGER AS RECOMMENDED BY THE CITY MANAGER IN
CONFORMANCE WITH SECTION 23 OF THE CITY CHARTER; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING
AN EFFECTIVE DATE.
City Manager Grayson Path said he received approximately forty-three applications for
this position, and he and HR Director/Civil Service Director Sandy Collard served as the
Interview Team. Mr. Path said he was pleased to present his selection Robert Vine as the
Assistant City Manager.
Council Member Pilgrim said he held a lot of respect for Grayson's opinion and he was
glad that Robert Vine applied here. Council Member Knox said she too wholly supported
Grayson Path who was qualified to make a selection. Council Member Stone said she
appreciated Mr. Vine taking time to meet with her and she too respected Grayson's opinion.
Council Member Pankaj said there had been a lot of discussion and he fully backed Grayson Path
and Mr. Vine. Mayor Pro -Tem Hughes expressed appreciation to Mr. Vine for his time and
answering his questions. Mayor Pro -Tem Hughes said Mr. Vine's answers spoke for his
character and that was important. He also said he would support Grayson's selection. Mayor
Portugal said she had an extended conversation with the Mayor of Dayton, Texas and that she
spoke very highly of Mr. Vine. She said she supported Grayson's selection. Robert Vine
expressed his appreciation and said one of the reasons he applied in Paris was because of
Grayson Path.
A Motion to confirm the appointment of Robert Vine as the Assistant City Manager for
the City of Paris was made by Council Member Pankaj and seconded by Council Member
Pilgrim. Motion carried, 6 ayes — 0 nays.
29. Discuss and act on ORDINANCE NO. 2021-052: AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF PARIS, TEXAS, ISSUING A LICENSE TO DAVID L.
THOMPSON D/B/A LONE STAR CAB COMPANY TO OPERATE A VEHICLE FOR
HIRE BUSINESS ON THE PUBLIC STREETS OF THE CITY OF PARIS, TEXAS;
FINDING A PUBLIC NECESSITY AND CONVENIENCE FOR ISSUANCE OF SAID
LICENSE; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE
SUBJECT; AND DECLARING AN EFFECTIVE DATE.
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December 13, 2021
Page 8
City Clerk Janice Ellis reported that Mr. Thompson had been operating a taxicab
company in Paris for almost eighteen years. She said he had submitted his application for a
license, submitted the required insurance and staff recommended approval.
A Motion to approve this item was made by Council Member Pilgrim and seconded by
Mayor Pro -Tem Hughes. Motion carried, 6 ayes — 0 nays.
30. Receive report from the 2021 Charter Review Commission, and provide direction to staff.
Chairperson Alix Putnam presented the Final Report of the 2021 Charter Review
Commission and recognized the Commission Members. She said the most discussed item was
the election of a mayor at -large and their recommendation was to move forward with electing a
mayor at -large.
Council Member Pankaj expressed his appreciation to the City Council in coming
together and selecting a diversified Charter Review Commission, and expressed appreciation to
the Charter Review Commission. Council Member Pilgrim expressed thanks to the Commission
and inquired about a timeline, if they decided to move forward with a mayor at -large proposition.
Mayor Portugal said there had been a late development and referred to City Attorney Stephanie
Harris to address it. Ms. Harris said she had consulted with outside counsel and they had
decided that a motion would have to be filed in the existing seventies lawsuit that divided the
City into seven single member districts, prior to moving forward with a proposition for voters to
consider electing a mayor at -large. She also said they would have to figure out who of the
petitioners were still living, and this could take six months to a year or longer. Council Member
Knox thanked the Charter Review Commission on their outstanding job and leadership. She said
she was the one who had placed this on the agenda because the Charter did not contain language
about who would or would not be able to serve on the Council and questioned if that topic was
discussed. Ms. Putnam said the Commission did not discuss that topic. Mayor Portugal inquired
about the language about City Council Member attendance with regard to missing three
consecutive meetings and if that would be in a twelve month period. Ms. Putnam said the
Commission did put language in the amended language but did not discuss the implementation.
Mayor Portugal said that staff had asked for direction and maybe, they should table this until
January 10th giving the City Council time to review the Final Report in depth. Mr. Path echoed
Mayor Portugal's suggestion and encouraged the Council to take time to review the Report. He
said a final decision would need to be made by January 24th in order to meet the deadlines, which
included writing the ballot language, have it translated into Spanish, and having booklets mailed
to every single registered voter in the City. Mr. Path reminded City Council that a Charter
Election could only take place every two years and said in addition to May 2022, the other
options were to call a Charter Election in November 2022 or May 2023. Council Member Stone
and Mayor Pro -Tem Hughes both expressed appreciation to the Charter Review Commission for
all of their hard work. Consultant Don Edmonds thanked the City Council for the opportunity to
work with the City Staff and the Commission. He said everyone was always professional,
cordial and respectful of each other.
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December 13, 2021
Page 9
A Motion to table this item to the January 10" meeting was made by Council Member
Pankaj and seconded by Council Member Stone. Motion carried, 6 ayes — 0 nays.
31. Discuss and act on ORDINANCE NO. 2021-053: AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF PARIS, TEXAS, ESTABLISHING A CONSTRUCTION
SPEED ZONE ON US 82/LOOP 286 IN THE CORPORATE LIMITS OF THE CITY
OF PARIS, LAMAR COUNTY, TEXAS, DURING THE TEXAS DEPARTMENT OF
TRANSPORTATION'S CONSTRUCTION PROJECT FROM US 271 EXIT RAMP TO
THE FM 79 ENTRANCE RAMP; PROVIDING A REPEALER CLAUSE, A SAVINGS
CLAUSE, A SEVERABILITY CLAUSE; A PENALTY CLAUSE; AND AN
EFFECTIVE DATE.
Police Chief Salter explained that the Texas Department of Transportation had contracted
Highway 19 Construction to construct a concrete overlay on westbound lanes of NW Loop 286
from the Campbell Soup entrance west to intersection of FM 79. He said TxDOT had requested
a temporary reduction of the speed limit from 60 mph to 50 mph for safety of the workers.
A Motion to approve this item was made by Council Member Pankaj and seconded by
Council Member Knox. Motion carried, 6 ayes — 0 nays.
32. Discuss and act on RESOLUTION NO. 2021-052: A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PARIS, TEXAS, DECLARING THE CITY OF PARIS'
INTENT TO PROVIDE 1% OF THE NEEDED FUNDING FOR THE NORTHEAST
LOOP 286, TXDOT IMPROVEMENT PROJECT; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE
DATE.
City Manager Grayson Path said Sulphur River Regional Mobility Authority Members
Jay Hodge and Curtis Fendley were in attendance, as well as TxDOT Engineer Dan Perry. Mr.
Path explained that TxDOT had been planning major improvements to Loop 286 and this project
consisted of several potential phases if the entire project is not funded at once. He said one
phase was the Northeast Loop from Stillhouse Road to Pine Mill Road and was one of the
busiest stretches of roadway in Lamar County. He also said it would consist of building a new
overpass at North Collegiate, rebuilding the overpass at FM 195, adding one-way frontage roads
along both sides of Loop 286, and replacing Loop 286 from Stillhouse Road to Pine Mill Road.
Mr. Path explained it was estimated this project could help reduce crashes by 65% given the area
at North Collegiate Drive accounted for nearly a third of crashes on the entire Loop. Mr. Path
said this project was approximately 90% through schematic drawing and nearly 30% through
construction design, which allowed them to estimate it at nearly $90 million. He said the
projects were competitive across all of Texas and funding limiting so the local TxDOT regional
office and members of SURRMA recommended that both the City of Paris and Lamar County
agree to contribute approximately 1% each of the necessary funds for this project. He also said
this would be approximately $900,000.00 each but was strictly an estimate given known data.
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Page 10
Mayor Portugal inquired about how many cars go through that intersection. Dan Perry
said approximately 30,000 vehicles a day go through that intersection. Jay Hodge said the
intention of funds being contributed to this project did not guaranteed this project would be
funded through the State.
A Motion to approve this item was made by Council Member Pilgrim and seconded by
Mayor Pro -Tem Hughes. Motion carried, 6 ayes— 0 nays.
33. Discuss and act on RESOLUTION NO. 2021-053: A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING A LOAN IN THE
AMOUNT OF TWO MILLION FIVE HUNDRED THOUSAND DOLLARS AND
NO/100 ($2,5000,000.00) TO THE PARIS ECONOMIC DEVELOPMENT
CORPORATION; APPROVING A PROMISSORY NOTE REGARDING SAID LOAN;
AUTHORIZING THE MAYOR TO SIGN PROMISSORY NOTE; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING
AN EFFECTIVE DATE.
City Manager Grayson Path said earlier in 2021 then Mayor Steve Clifford proposed to
the City Council and the PEDC the concept of the City loaning the PEDC available funding for
the purposes of 1) paying off a PEDC note, 2) giving the PEDC a lower interest rate to help save
tax dollars, and 3) giving the City a higher interest rate to help produce revenue greater than
traditional investment mechanisms. He said the note would have to give the City ability to call
its funding if a financial emergency were to occur. Mr. Path said the City was not a lending
entity by nature, but as the PEDC was a function of the City, this was a valid route for the City
Council to take. Mr. Path reported after many months of negotiation and work, the note in their
packets had been completed and it was for $2.5 million. He explained the first three years would
be an interest rate of 2.14%. He said it was a ten-year note with a fifteen -year amortization,
which meant they would make monthly payments for ten years and at the conclusion of ten
years, there would be a balloon payment for the balance. Mr. Path also said every three years the
rate would be adjusted by taking the Wall Street Journal "Prime Rate," subtract the Wall Street
Journal 10 -Year Constant Maturities Treasury Rate, take 25% of the difference and then add this
back to the 10 -Year Constant Maturities Treasury Rate. Mr. Path said there would be a 2%
interest rate floor so as to protect the taxpayer's return on their funding. PEDC Director Maureen
Hammond said this was a very long process and she truly thought this was a win-win and was
symbolic of the relation between the City Staff and the PEDC. Mr. Path said the City will
maintain its Reserves but this did limit the City in some respects. Council Member Pankaj asked
when Staff would feel comfortable with this transaction and Finance Director Gene Anderson
said in two to three years.
A Motion to approve this item was made by Council Member Pilgrim and seconded by
Council Member Pankaj. Motion carried, 6 ayes — 0 nays.
34. Convene into executive session pursuant to Section 551.072 of the Texas Government
Code to deliberate the purchase, exchange, lease, or value of real property if deliberation
Regular Council Meeting
December 13, 2021
Page 11
in an open meeting would have a detrimental effect on the position of the governmental
body in negotiations with a third person.
Mayor Portugal convened City Council into executive session at 7:02 p.m.
35. Reconvene into open session and possibly take action on those matters discussed in
executive session.
Mayor Portugal reconvened City Council into open session at 7:15 p.m. and asked if
there was a Motion. A Motion to approve the closing of the land transaction discussed during
the executive session under the terms of the purchase and sale agreements was made by Council
Member Stone and seconded by Council Member Pankaj. Motion carried, 6 ayes — 0 nays.
36. Consider and approve future events for City Council and/or City Staff pursuant to
Resolution No. 2004-081.
Mayor Portugal reminded City Council of the upcoming special meeting on Wednesday
at 5:30 p.m.
37. Adjournment.
There being no further business, a Motion to adjourn was made by Council Member
Pankaj and was seconded by Council Member Hughes. Motion carried, 6 ayes — 0 nays. The
meeting was adjourned at 7:16 p.m.
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PAULA PORTUGAL, AYOR
NICE EL�LIS, CITY w o`®