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05 - City Council MinutesItem No. 5 DRAFT CITY COUNCIL MINUTES MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS June 12, 2023 The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday, June 12, 2023, at the City Council Chamber, 107 E. Kaufman, Paris, Texas. Present: Mayor: Reginald B. Hughes Mayor Pro -Tem: Mihir Pankaj Council Members: Gary Savage, Rebecca Norment, Clayton Pilgrim, and Rudy Kessel City Staff: Grayson Path, City Manager; Robert Vine, Assistant City Manager; Stephanie Harris, City Attorney; Janice Ellis, City Clerk; Gene Anderson; Finance Director; Doug Harris, Utilities Director; Todd Mittge, City Engineer; and Andrew Mack, Director of Planning & Community Development Absent: Council Member: Shatara Moore Opening A Benda 1. Call meeting to order. Mayor Hughes called the meeting to order at 5:30 p.m. 2. Invocation. Finance Director Gene Anderson gave the invocation. 3. United States Pledge of Allegiance & Texas Pledge of Allegiance. Mayor Pro -Tem Pankaj led the United States Pledge of Allegiance and the Texas Pledge of Allegiance. 4. Citizens' Forum. John Fuston, 4010 Miranda — he said he was in favor of item 15, and glad to see downtown was growing. Consent A Benda Mayor Hughes 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 Savage and seconded by Council Member Pilgrim. Motion carried, 6 ayes — 0 nays. Regular Council Meeting June 12, 2023 Page 2 5. Approve minutes from the meeting of May 22, 2023. 6. Receive reports and/or minutes from the following boards and commissions: a. Airport Advisory Board (2-16-2023) b. Housing Authority (3-21-2023 & 5-16-2023) c. Visitors & Convention Council (4-17-2023) d. Paris Economic Development Corporation (4-18-2023) e. Planning & Zoning Commission (5-1-2023) Regular Agenda, A Motion to move item 9 up after item 7 was made by Council Member Pankaj and seconded by Council Member Norment. Motion carried, 6 ayes — 0 nays. Council Member Savage said he had a conflict on items 7 and 9, and that he would need to recuse himself. A Motion to recuse Council Member Savage from items 7 and 9 was made by Council Member Pilgrim and seconded by Council Member Pankaj. Motion carried, 6 ayes — 0 nays. 7. Discuss and act on RESOLUTION NO. 2023-026: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND AUTHORIZING AN ECONOMIC DEVELOPMENT AGREEMENT AND TAX ABATEMENT AGREEMENT WITH CULTIV8COMMUNITY PURSUANT TO THE 5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Planning Director Andrew Mack said the proposal for the agreement was to construct five new single-family homes, to be spread throughout the community. He also said the five properties were all City Trustee parcels, which did not sell at the tax sale. Mr. Mack introduced Dave Osborne who explained that Cultiv8community was a non- profit organization who assisted first time homebuyers. He explained the program, which included a mentorship to the new owners. A Motion to approve this item was made by Council Member Pilgrim and seconded by Council Member Kessel. Motion carried, 5 ayes — 0 nays. 9 Discuss and act on RESOLUTION NO. 2023-028: A RESOLUTION APPROVING THE RE -SALE OF FIVE PROPERTIES, PREVIOUSLY BID -OFF TO THE CITY OF PARIS, TRUSTEE, TO CULTIV8COMMUNITY PURSUANT TO THE 5 -IN -5 INFILL HOUSING PROGRAM. Regular Council Meeting June 12, 2023 Page 3 Mr. Mack explained this was the procedure whereby the property would transfer after the agreement was approved in item 7. A Motion to approve this item was made by Council Member Pankaj and seconded by Council Member Kessel. Motion carried, 5 ayes — 0 nays. A Motion to return Council Member Savage to the meeting was made by Council Member Norment and seconded by Council Member Pilgrim. Motion carried, 5 ayes — 0 nays. 8. Discuss and act on RESOLUTION NO. 2023-027: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING AND AUTHORIZING AN ECONOMIC DEVELOPMENT AGREEMENT AND TAX ABATEMENT AGREEMENT WITH P -TOWN PROPERTY HOLDINGS PURSUANT TO THE 5 IN 5 HOUSING 5 IN 5 HOUSING INFILL DEVELOPMENT PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Mr. Mack said the developer planned to build three new Tri-Plex and two new Duplex homes. He said Mr. Risinger was in the process of applying for plats and variances and Planning and Zoning recommended approval, as did staff. He introduced developer Tim Risinger. Mr. Risinger said they were in the middle of getting plans finished, that the dwellings would be real nice and would be brick dwellings with landscaping. He also said that the majority would have rear parking. Council Member Savage said the memo reflected this property was located on 29th Street but that the agenda said 20a` Street. City Clerk Janice Ellis clarified that the property was located on 20th Street and that the agenda contained a typo. Council Member Savage inquired if this property was outside the 5 In 5 area. Mr. Mack said it was inside the 5 In 5 area, and City Attorney Stephanie Harris said the 5 In 5 area was amended in July. A Motion to approve this item was made by Council Member Pankaj and seconded by Council Member Kessel. Motion carried, 6 ayes — 0 nays. 10 Discuss and act on RESOLUTION NO. 2023-029: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, TO WAIVE INTEREST ON A DANGEROUS STRUCTURE ABATEMENT LIEN ON PROPERTY DESCRIBED AS CITY OF PARIS BLOCK 39, LOT PT 2, LOCATED AT 245 AND 253 N.E. 2ND STREET; MAKING OTHER FINDINGS AND PROVISIONS; AND DECLARING AN EFFECTIVE DATE. City Manager Grayson Path explained that the City demolished a dangerous structure located at 245 N.E. 2na Street and applied a lien in the principle amount of $3,070.15. He said with interest that had accrued since 2016, the combined total was $14,926.64, which was more than the value of the lot. Mr. Path explained that Ben Faber inherited this lot and would like to sell it and had asked that the City Council consider allowing him to pay the original principle Regular Council Meeting June 12, 2023 Page 4 amount. Mr. Path said he had a check in the amount of $3,070.15 from Mr. Faber and was holding it pending direction from the City Council. A Motion to accept payment in the amount of $3,070.15, waive the accrued interest and release the lien was made by Council Member Savage and seconded by Council Member Pankaj. Motion carried, 6 ayes — 0 nays. 11. Receive presentation from NewGen Strategies regarding the 2023 Water & Wastewater Cost of Service Rate Study, discuss and act on an ORDINANCE NO. 2023-023: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING APPENDIX A, SECTION A10.004(b), "SEWER RATES FOR CUSTOMERS USING CITY WATER," OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS TO REFLECT CHANGES RECOMMENDED BY THE CITY'S RATE CONSULTANT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Finance Director Gene Anderson said the City had treated water contracts with four local industries and one of the requirements of the contracts was for the City to have an independent rate consultant conduct a cost of service study each year. Mr. Anderson introduced Chris Ekrut with NewGen Strategies who gave an overview of the rate maintenance policy, and stated the Council adopted wastewater rate increases effective very six months beginning April 2021 through April 2026 to fund the WWTP rehabilitation and associated debt issuance. Mr. Ekrut reported the findings of the study and reported that the retail water rates were currently sufficient and that a rate increase was not needed. He reviewed the adopted residential wastewater rates, the commercial wastewater rates, total residential monthly bill comparison, the sewer surcharge and the estimated sewer surcharge customer impact. Council Member Pilgrim inquired whether these rates would push new companies away from Paris. Mr. Ekrut said the City could develop an economic contract with a commercial customer. Council Member Savage said he thought industries should see these numbers prior to approval by Council. Mr. Anderson said these numbers include the first rate increase the City has had in three years. Council Member Pilgrim said if these rates were negotiable for those recruiting industry to Paris, he was good with it. Mr. Path said the rates were negotiable. He also said if the Council wanted to table this item allowing staff to notice the companies, that they could do so. Mr. Ekrut said the impact of passing this ordinance was about $20,000.00. A Motion to approve this item was made by Council Member Pilgrim and seconded by Council Member Pankaj. Motion carried, 6 ayes — 0 nays. 12. Receive presentation by Mark McLiney, with SAMCO Capital Markets, the City's Financial Advisor, regarding refunding and restructuring the Series 2013 Utility System COs to lower the total annual debt service supported by the utility system to help offset the costs of future utility system improvements and authorizing staff and outside consultants to proceed with the refunding and other matters related thereto. Regular Council Meeting June 12, 2023 Page 5 Mr. Anderson explained that in July 2013, the City issued $33,925,000.00 in General Obligation Bonds to replace aging water and wastewater lines throughout the City, with a term of the loan being 20 years with an option to call the loan on December 15, 2023. Mr. Anderson said the City could pay off the bond anytime on or after the call date, and the most common reason to call a bond issue is when interest rates had fallen since the original bonds were issued. Mr. Anderson also said the lower interest rates reduce the annual debt service payments without changing the final maturity date. Mr. Anderson introduced Mark McLiney from SAMCO Capital Markets, who gave a presentation of opportunities available on the GO Bonds, Series 2013. Mr. McLiney said with paying off the old bonds and issuing new bonds, the City could stretch and save money. He reviewed option 1, which would reduce the annual payment of about $105,000.00 a year totaling $945,000.00 in total savings as opposed to the present value savings of $804,000.00. He reviewed option 2, in which the City would issue refunding bonds to restructure the existing bonds by adding ten years to the final maturity, reducing the debt service by approximately $1,000,000.00 per year through fiscal year 2033. He said option 2 would increase the total debt service by approximately $4,250,000.00, which was apresent value loss of $125,000.00 over the life of the bonds. Mr. McLiney said after discussing these opportunities with staff, that it was the recommendation that the City Council consider option 2, because it would allow issuance of additional debt to complete Phase II of the Wastewater Treatment Plant and by restructuring the bonds, there would be significant advantages to rate payers. Following additional discussion, City Council favored moving forward with option 2. Mr. McLiney said additional items would be brought back to the City Council for them to take action. 13. Discuss and act on revisions to the Facade Grant application and procedures. Mr. Mack said the Historic Preservation Commission provides incentives for fagade grants for historic structures, and the purpose of the grant was to assist property owners with rehabilitation of the historic structures in Historic Districts. He also said a subcommittee was formed to review current guidelines and review the current grant amount. Mr. Mack reported that the subcommittee met several times and recommended that the Fagade Grants be increased beginning immediately as follows: 1) from $2,500.00 to $5,000.00 for commercial property; 2) from $1,000.00 to $2,000.00 for residential; 3) increase the frequency of application; and 4) the addition of a signage grant in the amount of $1,000.00 with design assistance from Texas Main Street Design staff. A Motion to approve this item as was made by Council Member Pankaj and seconded by Council Member Pilgrim. Motion carried, 6 ayes - 0 nays. 14. Discuss and act on ORDINANCE NO. 2023-024: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING THE CITY OF PARIS CODE OF ORDINANCES TO AMEND CHAPTER 10, "STREETS, PARKS AND OTHER PUBLIC WAYS AND PLACES," BY ADDING A NEW DIVISION 9, "STREET LIGHT REGULATIONS," TO ARTICLE 10.05, "STREETS AND Regular Council Meeting June 12, 2023 Page 6 SIDEWALKS;" MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, AND A PENALTY CLAUSE; AND DECLARING AN EFFECTIVE DATE. City Engineer Todd Mittge said the City was experiencing an influx of growth with new residential, commercial, and industrial development, and that one of the goals as the City was to continue to update standards to help Paris stay vibrant and modern. He also said the ordinance before the Council would establish streetlights as a requirement for new development in neighborhoods and commercial areas. Mr. Mittge said developers would work with the City and the local electrical service provider to build them into projects moving forward. Council Member Pankaj inquired if Oncor was going to charge the City. Mr. Mittge said the local service provider would set an allowance for installation of new street lighting and costs, and above that would be paid by the developer. He emphasized this would help reduce crime, increase traffic safety and add to the beautification of neighborhoods. Following additional discussion, a Motion to approve this item was made by Council Member Savage and seconded by Council Member Norment. Motion carried, 6 ayes — 0 nays. 15. Discuss and act on an Agreement with Hayter Engineering in the amount of $14,900.00 for professional services, as related to survey and design services for the Grand Avenue Sidewalk Extension; and authorize the City Manager to execute all necessary documents. Mr. Mittge explained that as part of the Toole Design recommendations, the City would like to partner with two commercial property owners to widen the sidewalk on the south side of Grand Avenue, adjacent to 107 Grill and the Mustard Seeds Boutique. He said this bump out project would expand the existing sidewalk approximately 8 feet wide and 68 feet long. He also said that the property owners had verbally agreed to help pay for part of construction with a combined contribution of $8,638.00, and the City would like to enter into an agreement with Hayter Engineering, Inc. to provide survey and design services for this project. A Motion to approve this item was made by Council Member Pankaj and seconded by Council Member Kessel. Motion carried, 6 ayes — 0 nays. 16. Convene into executive session pursuant to Section 551.087 of the Texas Government Code, (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1), as follows: Project Clydesdale. Mayor Hughes convened City Council into executive session at 6:44 p.m. Regular Council Meeting June 12, 2023 Page 7 17. Reconvene into open session and possibly take action on those matters discussed in executive session. Mayor Hughes reconvened City Council into open session at 7:05 p.m. and asked for a motion based on discussions in executive session. A Motion to approve a performance agreement between PEDC and Project Clydesdale was made by Council Member Pankaj and seconded by Council Member Pilgrim. Motion carried, 6 ayes — 0 nays. 18. Consider and approve future events for City Council and/or City Staff pursuant to Resolution No. 2004-081. There were no future events referenced. 19. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Savage and seconded by Council Member Pilgrim. Mayor Hughes adjourned the meeting at 7:06 p.m. REGINALD B. HUGHES, MAYOR JANICE ELLIS, CITY CLERK