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05-Council Minutes from the meetings of August 16, 17, and 23, 2010 CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented 13y: Agenda Item No.: 09/03/2010 Council Date: City Clerk Janice Ellis 5. 09/13/2010 RECOMMENDED MOTION: Motion to approve as presented. POLICY ISSUE(S): Approval of Official Record of Council. BACKGROUND: Council Minutes from the meetings of August 16, 2010; August 17, 2010; and August 23, 2010. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: The attached minutes from the meetings ACTION: BUDGET' INFO: ❑ Financial Report ® Minute Order Expense ❑ Department Report ❑ Resolution Budgeted Amt. Presentation Ordinance ❑ YTD Actual ~ ❑ Public Hearing ❑ Other Acct. Name _ Acct. Number FISCAL NOTES: REVIEWED AND APPROVED BY: ® Administration ® City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire ❑ Municipal Court ❑ Legal ❑ Library ❑ Police ❑ Eng./ Public Works ❑ Utilities City of Paris Revised 2/04/08 MINUTES OF THE SPECIAL CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS August 16, 2010 The City Council of the City of Paris met for a special session at 3:00 p.m. on Monday, August 16 2010, at the City Council Chamber, 107 E. Kaufinan, Paris, Texas. Present: Mayor: Will Biard Council Members: Joe McCarthy; John Wright; Stephen Brown; Edwin Pickle; and Rhonda Rogers City Staff: Kevin Carruth, City Manager; Kent McIlyar, City Attorney; Janice Ellis, City Clerk; Gene Anderson, Finance Director; Shawn Napier, City Engineer; Bob Hundley, Police Chief; Kent Klinkerman, EMS Director; Ronnie Grooms, Fire Chief, Tom Hunt, Municipal Judge; Doug Harris, Utilities Director; Steve McFadden, Interim Public Works Director; and Priscilla McAnally, Library Director Absent: Council Member: Jason Rogers I . Call meeting to order. Mayor Biard called the meeting to order at 3:08 p.m. 2. Budget workshop - deliberate on proposed 2010-2011 Budget. City Manager Kevin Carruth presented City Council with his fiscal year 2010-2011 budget message. (See Exhibit "A" attached) Council Member Brown arrived at 4:05 p.m. Mayor Biard said he did not want to address the budget by line item, but by department and if anyone wished to discuss an item they would do so. Council began with Municipal Court and worked through the Fire Department budget. City Council discussed employee health insurance and the capital projects fund with regard to the internal loan fund. Council Member Pickle said he had a problem with over-time in general, while Chief Hundley explained the necessity of over-time due to the turnover of police officers. Council Member Pickle also expressed a desire to look at placing a freeze on step increases, while Council Members Joe McCarthy, Rhonda Rogers and Steve Brown opposed it. 2 Special Council Meeting August 16, 2010 Page 2 Council Members McCarthy and Brown said they would like to look at a replacement plan for equipment in the Fire Department, as well as associated costs. 3. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Pickle and was seconded by Council Member Brown. Motion carried, 6 ayes - 0 nays. The meeting was adjourned at 5:02 p.m. WILL BIARD, MAYOR JANICE ELLIS, CITY CLERK Cr L~T Ohl, 9 MEMORANDUM To: City Council From: Kevin Carruth, City Manager Re: Budget Message Date: August 6, 2010 Introduction In accordance with Section 45 of the City of Paris Charter and Chapter 102 of the Texas Local Government Code, I am pleased to present for your consideration the proposed annual budget for fiscal year 2010-2011, beginning October 1, 2010. This balanced budget is intended to serve as: 1. A plan of financial operations embodying an estimate of expenditures for the next fiscal year and the means of financing them. 2. A management and operational plan for allocation of resources during FY 2010-2011. The budgetary and accounting policies contained in the budget conform to generally accepted accounting principles (GAAP) as established by the Governmental Accounting Standards Board (GASB). The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate budgetary and accounting entity. Within the budget, the City's various funds are grouped into general fund types and proprietary fund types. The budget is prepared on the GAAP basis, with all governmental funds accounted for using the modified accrual basis of accounting and proprietary funds accounted for using the accrual basis of accounting. In calendar year 2009, Paris weathered the national economic recession very well compared 'to most cities, even in Texas. A year ago, sales tax receipts were 14.9 percent above the same period last year and, until July 2009, every month was considerably above the same month last year. This was due in large part to the construction of two different natural gas transmission lines through Lamar County. As those projects were completed and the recession continued, sales tax receipts began to return to their pipeline pre-construction levels, resulting in noticeable decreases in year-to-date (YTD) comparisons in FY 2009-2010. The Fiscal 2009-2010 YTD decrease is 9.6 percent but compared to the 2008-2009 pre-construction YTD totals sales taxes are up 3.9 percent. Additionally, the U.S. Municipal Cost Index (designed by American City and County magazine to show the effects of inflation on the cost of providing municipal services) was 3.7 percent higher for the 12-month period ending in June while the U.S. Consumer Price Index (CPI) was up 2.1 percent during the same period. Paris, as a retail and healthcare hub for a multi-county area, is in a better position than many communities to weather the recession but we P.O. BOX 9037 - PARIS, TEXAS 75461-9037 - (903) 785-7511 - FAX (903) 785-8519 4xhi bi t "A" are not immune from the weak economy. Although there are nascent signs that the United States economy appears to be in a weak recovery and Texas is repeating its "last in, first out" to the national recession, the proposed FY 2010-2011 budget is conservative in its revenue estimates. Staff was given the charge at the beginning of the budget process to (1) absorb the debt service for the South Collegiate Drive certificate of obligation, (2) maintain the same tax rate of $0.52/$100 (the same as it has been since FY 2008-2009 and the lowest rate since FY 1995- 1996), and (3) avoid staff layoffs if possible. Consequently, staff developed budget proposals for their departments assuming essentially the same expenditures as allocated in FY 2009-2010. Requests for additional items were to be submitted with justifications and were reviewed by the City Manager and Director of Finance and Human Resources. A cost of living allowance (COLA) is not included in the proposed budget due to revenue limitations (four of the last nine years the City has not given a COLA). The following sections highlight points of interest in the budget. General Fund Revenues 1. Tax Rate. According to the Lamar County Central Appraisal District, the total taxable value in Paris decreased 1.7 percent ($26,379,443) from 2009 and the proposed budget assumes the same $0.5200 tax rate as FY 2008-2009 and FY 2009-2010, as directed by Council. Consequently, the effective tax rate, i.e. the rate that generates approximately the same amount of revenue as FY 2009-2010, is $0.5319 and the rollback rate is $0.58813. The proposed $0.5200 rate is a 2.3 percent decrease in the amount of City property tax paid to the City. 2. Sales Taxes. Daisy Farms is expected to complete their first phase of construction in FY 2010-2011 but the positive impact of their development and operation will be offset by the loss of 230 jobs at Sara Lee. As a result, budgeted sales taxes are estimated to decrease by 3.3 percent from the previous year, with the corresponding decrease to the budgeted General Fund revenue of $195,000. 3. Franchise Fees. Fees from Atmos Gas and Oncor are budgeted $273,700 less due mainly to lower prices of their services because petroleum prices are significantly lower than 12-24 months ago. This loss is offset somewhat by a $105,000 increase in franchise fees paid by Suddenlink Cable. Suddenlink's three percent franchise agreement with the City expired in March 2010 and Suddenlink was required by statute to move to the State of Texas franchise agreement, which mandates a five percent fee. 4. Building Permits. Completion of Paris Independent School District's building program and a slowdown in building reflecting similar reductions in Texas and nationally, have combined to create a predicted drop in budgeted building permit revenue of 18.8 percent ($15,000). 5. Fire Response Insurance Receipts. City Council will be asked to implement a program to bill insured, non-resident persons who consume Fire Department resources. The estimated revenue is $15,000. 6. Sanitation Fees. Since 1992, the City's residential sanitation rate has been $14.00. Over the previous year the Finance Department began allocating the indirect costs to provide the services of the Sanitation Department (including street sweeping, brush pickup, compost site, and "free" monthly landfill privileges) using the methodology advanced by the Texas Commission on Environmental Quality. Because the residential sanitation fee did not increase in 18 years but the operation costs obviously did, these indirect costs were being supported by all citizens (sanitation customers and non-customers alike) through the General Fund. As a result of changing the method used to track sanitation expenses that allow us to more clearly identify the indirect costs, Council authorized an increase of the sanitation fee to $15.89 to eliminate the General Fund's subsidy of this enterprise operation and thereby adding $178,445 in additional revenue. The City's landfill agreement expires September 30, 2010, and with two landfills now in the area, it is expected to be a very competitive environment that will benefit the City. In addition, Council is also investigating the option of contracting with a private company for collection of residential sanitation if it offers significant savings and terms for employee and equipment acquisition are satisfactory. Between lower landfill fees and savings from third-party collection, there is a good possibility residential sanitation fees may decrease. 7. Court Fees. Tougher economic conditions for those convicted in municipal court and a decrease in the number of citations issued by police officers has lead to a 16.6 percent ($55,000) decrease in budgeted court fines. 8. Interest Earned. A 50 percent ($150,000) decrease in interest income is predicted due to record-low interest rates and a reduction in the fund balance due to the use of reserves for capital projects in FY 2009-2010. Expenditures 1. Group Medical. Employees are provided medical insurance through the Texas Municipal League Intergovernmental Employee Benefit Pool (TML-IEBP). The City budgets $425/month/employee and allows the employee to choose one of three health plans with different options and different premiums that are all under $425. The difference between the premium and the $425 is placed into a health savings account (HSA) for each employee. Our plan year follows the calendar year and premiums for the two plans that the vast majority of employees have opted for are anticipated to increase approximately three percent with the net effect of decreasing the HSA benefit for the employee by about $11.00. 2. Fuel. Vehicle and equipment fuel is a significant component of operations. Over the previous 12 months, the General Fund purchased 72,280 gallons of unleaded gas and 6 55,083 gallons of diesel. Fuel expenditures were based on department trends and a per gallon rate about four percent higher than current prices. 3. Electrical. Retail electric prices in Texas are benchmarked to the price of natural gas, regardless of the actual fuel source used for generation (most electricity in Texas is generated by coal-fired plants). The City of Paris participates with approximately 120 other municipalities in the Cities Aggregation Power Project (CAPP). CAPP aggregates the anticipated annual demand of its membership to leverage volume pricing for electrical service. Since joining CAPP in 2002, Paris has benefitted from lower electrical prices that it could otherwise contract for. In January 2009 the City entered into a five-year agreement with CAPP that will have an average price over the term of the agreement of $0.07664 per kWh, compared to the $0.1105 cents per kWh the City paid in 2008. The rate for FY 2010-2011 is $0.07705. 4. Personnel. The City has a very lean operation for a service organization, where 70-75 percent of expenses would not be unusual for personnel. In the General Fund personnel costs account for just 66.4 percent of expenditures and 24.3 percent in the water and sewer fund (these percentages do not factor in most of the capital requests, which would drive the percentages even lower). The proposed budget does not include elimination of any of the existing 248 full-time positions. 5. Diversity. The proposed budget includes another $11,500, in addition to several thousand dollars worth of in-kind support (mainly labor), for the City to participate in community-wide diversity efforts by the Racial Diversity Task Force. A Communications and Diversity Manager position has also been added in the City Manager's office and is proposed as a partnership with the Paris Economic Development Corporation (PEDC). The position would be hired in the second quarter and the salary and benefits split between the City and PEDC. The position would be responsible for communicating City and PEDC activities with the media and public, keeping content current on City and PEDC websites, as well as serve as the lead on diversity issues, internally and with the community. Water and Sewer Fund Revenues 1. Water and Sewer Charges - The annual water and wastewater cost of service study recommended making no changes to water and sewer rates; however, revenue from both are expected to be different from FY 2009-2010. Specifically, sewer fees have been decreased by 3.7 percent ($193,240) due to the loss of production lines at Sara Lee and the closure of Sesame Solutions. Water sales were raised 1.8 percent ($141,706) based on trending. Industrial sewer revenue (surcharges for exceeding certain environmental parameters that are more expensive to treat) has been reduced 97 percent ($155,000) because of the loss of production lines at Sara Lee that are responsible for over 40 percent of the biochemical oxygen demand (even though it is only three percent of the volume of the wastewater flow). 7 2. Interest Earned. A 50 percent ($50,000) decrease in interest income is predicted due to record-low interest rates. Expenditures 1. Group Medical. Although two of the three health plans offered by TML-IEBP are expected to have relatively speaking very minimal increases, the budget does not increase the City's allocation to compensate. The result is a small erosion of an important benefit that helps make up for an uncompetitive wage scale when recruiting and retaining employees. 2. Fuel - Volatility of fuel prices declined over during FY 2008-2009 (see full discussion under "General Fund" section above) and the proposed expenses reflect lower fuel prices. Over the previous 12 months, the Water and Sewer Fund purchased 21,992 gallons of unleaded gas and 7,115 gallons of diesel. 3. Electrical - The water and sewer systems continuously utilize numerous pumps, some of which are quite large, and these pumps require large amounts of electricity to run. As noted in the "General Fund" section above, the City's five-year agreement with CAPP will minimize the volatility and amount of our electrical charges. 4. Chemicals - The water and wastewater treatment processes require a large amount of chemicals. The City recently received responses to its request for proposals for annual contracts to provide the various chemicals and are slightly less than FY 2009-2010. 5. Personnel. As noted earlier, the City is a very lean operation for a service organization, where 70-75 percent of expenses would not be unusual for personnel but in water and sewer this category accounts for only 24.3 percent. The proposed budget does not include elimination of any of the 71 full-time positions. Capital There is very little capital in the proposed budget and much of what is included are projects that were part of the FY 2009-2010 budget but will remain incomplete by the end of the fiscal year and carried forward. These projects include: 1. Lake Crook fishing pier replacement 2. New warehouse 3. Radio read meter program 4. Replacement of the sub-floor at the water treatment plant 5. Implementation of phase II of the water system SCADA system 6. Cox Field airfield improvements 8 In addition, a very limited number of capital items will be purchased through the City's internal equipment replacement loan fund on a three-year term at three percent interest (to recapitalize the fund). Specifically: 1. EMS - $120,000 for annual fleet replacement program of one ambulance. 2. Fire Department - $70,000 to replace the existing and non-compliant personal alert safety system (PASS) and $24,200 to replace rescue tools (e.g. "jaws of life") that are old enough that replacement parts are increasingly more difficult and expensive to acquire. The old PASS system is still functional but no longer meets NFPA standards and will be transferred to Public Works for their use in confined space and other hazardous work areas. The new rescue tools will be placed on the engines instead of the rescue truck, allowing the rescue truck to remain in the station instead of responding with an engine and thereby reducing maintenance and operation expenses for the rescue truck. 3. Police Department - $53,116 for two patrol cars (reducing its annual fleet replacement program from four patrol cars to two). Conclusion The desire of City Councils to maintain the lowest ad valorem tax rate as possible is understandable, particularly given the overall economic climate. It is also important for economic development purposes to have a tax rate that is competitive with other communities. However, creating an artificially low tax rate by deferring maintenance and/or planning for known future expenses is not successful in the long-term and usually creates a more painful fiscal environment for the future. The proposed $0.5200 tax rate will be the third consecutive year the rate has remained the same and is the result of a $0.17 rate drop from FY 2005-2006 to FY 2008-2009 and is a 2.3 percent decrease in the effective rate (the rate that brings in the same amount of dollars as the previous year). There are several looming fiscal issues that must eventually be addressed. First, in addition to several million dollars of street, sidewalk, and drainage projects there are also a couple of million dollars worth of fire trucks that will be reaching the end of their service lives and credit for ISO rating (this will happen at about the same time because the City found itself in a similar situation in 1996 and had to purchase several trucks all at once). Another $243 million is needed in rehabilitation/renovation of city facilities, City Hall being a primary one. Second, the City's water and wastewater infrastructure (including distribution, collection, and treatment) needs tens of millions of dollars in rehabilitation and improvements. For example, the wastewater treatment plant master plan alone calls for $35-40 million to replace the existing plant. Over the last few years, using results from the annual water and wastewater rate study, the Council has been adjusting rates to make the wastewater system self-sufficient and begin establishing healthy reserves for both systems. Nonetheless, the new wastewater treatment plant and repair and replacement of other deteriorating water and wastewater infrastructure present a significant challenge to the rate structure. Lastly, the City's workforce is also moving demographically towards a situation where most employees either have a long tenure with the City and will stay until retirement (most have ten years or less) or only stay a few years before moving on for better salaries, benefits, and/or work environment. The lack of a middle cadre of employees with the institutional knowledge, experience, and commitment to replace our current long-term employees jeopardizes the City's future ability to meet its core missions of protecting the community's health, safety, and welfare by providing efficient and effective services for citizens and a safe workplace for its employees. Failure to make regular adjustments to the pay scale to account for higher costs of living compounds over time and places the City at an ever increasing competitive disadvantage to recruit and retain top talent from the labor pool. Having competitive salaries, benefits, staffing structures, equipment, and work environment will be critical to developing this group of future leaders. Considering that a $0.01 increase in the tax rate amounts to a grand total of $6.86 more in the annual taxes paid by the average residential property, it becomes clear that taxes will have to be raised a substantial amount very quickly or a large amount of debt issued in order to pay for catastrophic failures in equipment, facilities, or staffing. Thoughtful and deliberate consideration should be given by the City Council, together with city staff, to the development and commitment to a tax and debt strategy to meet these future demands. City government is the form of government that has the widest ranging impact on the daily lives of our citizens. Meeting the fundamental health, safety, and welfare needs of our citizens is essential to a progressive and successful community and as presented, this budget will ensure the safety of our citizens, enhance their quality of life while providing an environment for successful economic development. I appreciate the efforts of staff during the preparation of the proposed budget under another year of difficult fiscal circumstances. In addition, I wish to extend my thanks to the City Council and Council's willingness to take the time to understand each department's operations. Such understanding provides context and background to better understand the budget and also enlightens staff's understanding of Council's priorities. 10 MINUTES OF THE SPECIAL CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS August 17, 2010 The City Council of the City of Paris met for a special session at 3:00 p.m. on Tuesday, August 17 2010, at the City Council Chamber, 107 E. Kaufman, Paris, Texas. Present: Mayor: Will Biard Council Members: Joe McCarthy; John Wright; Stephen Brown; Edwin Pickle; and Rhonda Rogers City Staff: Kevin Carruth, City Manager; Kent McIlyar, City Attorney; Robin Norwood, Deputy City Clerk; Gene Anderson, Finance Director; Shawn Napier, City Engineer; Kent Klinkerman, EMS Director; Tom Hunt, Municipal Judge; Doug Harris, Utilities Director; Steve McFadden, Interim Public Works Director; and Priscilla McAnally, Library Director Absent: Council Member: Jason Rogers 1. Call meeting to order. Mayor Biard called the meeting to order at 3:05 p.m. 2. Budget workshop - deliberate on proposed 2010-2011 Budget. City Council began with the Community Development budget and discussed contracting with Bureau Veritas for plan and inspection services, as well as the possibility of hiring inspectors in-house. Council Member Rhonda Rogers said she wanted to obtain additional information prior to making a decision. City Council also discussed landfill fees, traffic and public lighting, non-profit organizations and services, the Lamar County Water Contract, over-time in general, a full-time Human Resources position, and the Health Department structure. It was a consensus of the City Council to cancel the budget workshops scheduled for Thursday and Friday. - 11 Special Council Meeting August 17, 2010 Page 2 I Adjournment. There being no further business, a Motion to adjourn was made by Council Member Pickle and was seconded by Council Member Wright. Motion carried, 6 ayes - 0 nays. The meeting was adjourned at 4:47 p.m. WILL BIARD, MAYOR ROBIN NORWOOD, DEPUTY CITY CLERK 12 MINUTES OF THE CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS August 23, 2010 The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday, August 9, 2010, at the City Council Chamber, 107 E. Kaufman, Paris, Texas. Present: Mayor: Will Biard Council Members: Joe McCarthy; Jason Rogers; John Wright; Stephen Brown; Edwin Pickle; and Rhonda Rogers City Staff. Kevin Carruth, City Manager; Kent McIlyar, City Attorney; Janice Ellis, City Clerk; Bob Hundley, Police Chief, Ronnie Grooms, Fire Chief; Gene Anderson, Finance Director; Steve McFadden, Interim Public Works Director; Kent Klinkerman, EMS Director; Doug Harris, Utilities Director; Shawn Napier, City Engineer; and Priscilla McAnally, Library Director Opening Agenda 1. Call meeting to order. Mayor Biard called the meeting to order at 5:32 p.m. 2. Invocation. Reverend Kenneth Rogers gave the invocation. 3. Pledge of Allegiance. Council Member Jason Rogers led the pledge. 4. Citizens' forum. Brian Cannon, 1135 Old Jefferson Road - complained that city staff told him that he had put in a concrete culver on his property. Gene McWaters, 415 39`h S.W. - asked the City Council to consider taking over the park located on Highway 82 West, because the State had closed it. 13 Regular Council Meeting August 23, 2010 Page 2 Consent Agenda Mayor Biard inquired of Council Members if they wished to pull any items from the Consent Agenda for discussion. There were none. Council Member Pickle made a Motion to approve the Consent Agenda and Council Member McCarthy seconded the Motion. The Council voted seven (7) for and none (0) opposed to approve and adopt Consent Agenda Items 5, 6, 7, and 8. 5. Deliberate and act on the approval of minutes from the meeting on August 9, 2010. 6. Receive and deliberate on reports and/or minutes from the following boards, commissions, and committees: a. Paris Public Library (6-23-10) b. Paris Economic Development Corporation (7-13-10) c. Airport Advisory Board (5-20-10) d. Historic Preservation Commission (6-28-10; 7-14-10; 7-26-10) e. Board of Adjustment (7-6-10) f. Planning and Zoning Commission (5-3-10; 6-7-10; 8-2-10) g. Main Street Advisory Board (4-20-10) h. Fire and Building Code Review Committee (6-15-10; 8-10-10) 7. Deliberate on July monthly financial report. 8. Deliberate on drainage ditch maintenance report. Regular Agenda 9. Public hearing, first reading, deliberate and possibly an act on AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AND ADOPTING REVISIONS TO THE FUTURE LAND USE PLAN MAP FOR THE CITY OF PARIS AS SET FORTH HEREIN; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A PENALTY CLAUSE AND PROVIDING AN EFFECTIVE DATE. Mayor Biard opened the public hearing and asked for anyone wishing to speak in support of this item, to please come forward. No one spoke in support of this item. Mayor Biard asked for anyone wishing to speak in opposition to this item, to please come forward. With no one speaking, Mayor Biard closed the public hearing. A Motion to invoke the super majority rule was made by Council Member Pickle and seconded by Council Member McCarthy. Motion carried, 7 ayes - 0 nays. 14 Regular Council Meeting August 23, 2010 Page 3 Shawn Napier told City Council that Planning and Zoning had denied this item. A Motion to deny this item was made by Council Member McCarthy and seconded by Council Member Brown. Motion carried, 7 ayes - 0 nays. 10. Public hearing, first reading, deliberate and possibly an act on 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 THE NORTH PART OF LOT 1-A, CITY BLOCK 328, 3405 BONHAM STREET, CITY OF PARIS, LAMAR COUNTY, TEXAS, FROM A PLANNED DEVELOPMENT DISTRICT (PD-b) TO A COMMERCIAL DISTRICT (C); DIRECTING A CHANGE ACCORDINGLY IN THE OFFICIAL ZONING MAP OF THE CITY; PROVIDING A REPEALER CLAUSE, A SAVINGS CLAUSE, A SEVERABILITY CLAUSE, A PENALTY CLAUSE, AND AN EFFECTIVE DATE. Mayor Biard opened the public hearing and asked for anyone wishing to speak in support of this item, to please come forward. No one spoke in support of this item. Mayor Biard asked for anyone wishing to speak in opposition to this item, to please come forward. With no one speaking, Mayor Biard closed the public hearing. A Motion to invoke the super majority rule was made by Council Member Pickle and seconded by Council Member Rhonda Rogers. Motion carried, 7 ayes - 0 nays. A Motion to deny this item was made by Council Member McCarthy and seconded by Council Member Brown. Motion carried, 7 ayes - 0 nays. 11. Public hearing on the proposed budget for fiscal year 2010-2011 for the City of Paris. Mayor Biard opened the public hearing, and asked anyone wishing to speak with regard to the proposed budget, to please come forward. With no one speaking, Mayor Biard closed the public hearing. 12. Deliberate and act on RESOLUTION NO. 2010-090: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, SETTING A PUBLIC HEARING ON PROPOSED AMENDMENTS TO THE CITY MANAGER'S PROPOSED BUDGET FOR FISCAL YEAR 2010-2011; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. A Motion to set a public hearing for September 13, 2010 was made by Council Member Pickle and seconded by Council Member Wright. Motion carried, 7 ayes - 0 nays. 13. First reading, deliberate and act on ORDINANCE NO. 2010-028: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; AMENDING CHAPTER 12 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS AMENDING ARTICLE 1, IN GENERAL AND ARTICLE II, LIQUIFIED PETROLEUM GAS; 15 Regular Council Meeting August 23, 2010 Page 4 REPEALING ARTICLE III, FIRE RESERVE UNIT, SECTIONS 12-51 THROUGH 12- 66 AND REPEALING ARTICLE IV, FIRE PREVENTION CODE, SECTIONS 12-86 THROUGH 12-89; ESTABLISHING A NEW ARTICLE III, ENTITLED FIRE CODE; ADOPTING THE 2006 INTERNATIONAL FIRE CODE, 3RD PRINTING, APRIL 2007; ADOPTING LOCAL AMENDMENTS TO THE 2006 EDITION OF THE INTERNATIONAL FIRE CODE; PROVIDING FOR ENFORCEMENT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. A Motion to invoke the super majority rule was made by Council Member Brown and seconded by Council Member Pickle. Motion carried, 7 ayes - 0 nays. A Motion to approve this item was made by Council Member McCarthy and seconded by Council Member Rhonda Rogers. Motion carried, 7 ayes 0 nays. 14. First reading, deliberate and possibly act on ORDINANCE NO. 2010-029: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING SECTION 7-16 AND 7-18 OF ARTICLE 11, BUILDING CODE, CHAPTER 7, BUILDINGS AND BUILDING REGULATIONS OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS TO ADOPT THE 2006 INTERNATIONAL BUILDING CODE, THE 2006 INTERNATIONAL EXISTING BUILDING CODE, 2006 INTERNATIONAL RESIDENTIAL CODE, AND THE 2008 NATIONAL ELECTRICAL CODE, AS AMENDED HEREIN AS THE OFFICIAL BUILDNG, RESIDENTIAL, EXISTING BUILDING AND ELECTRICAL CODES FOR ALL CONSTRUCTION WITHIN THE CITY OF PARIS, TEXAS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND DECLARING AN EFFECTIVE DATE. A Motion to invoke the super majority rule was made by Council Member Brown and seconded by Council Member Pickle. Motion carried, 7 ayes 0 nays. A Motion to approve this item was made by Council Member Rhonda Rogers and seconded by Council Member Pickle. Motion carried, 7 ayes - 0 nays. 15. Convene into Executive Session pursuant to Section 551.071 of the Texas Government Code, Consultation with Attorney, to receive legal advice from the City Attorney about pending or contemplated litigation and/or on matters in which the duty of an attorney to his client under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter, to-wit: Ranger Abbott vs. City of Paris, Texas, Cause No. 79683; in the 62nd Judicial District Court of Lamar County, Texas; and Ranger Abbott vs. City of Paris, Texas, Cause No. 79627; in the 62nd Judicial District Court of Lamar County, Texas. 16 Regular Council Meeting August 23, 2010 Page 5 Mayor Biard convened City Council into Executive Session at 5:48 p.m. 16. Reconvene in Open Session and possibly take action on matters discussed in Executive Session. Mayor Biard reconvened City Council into open session at 6:28 p.m. A Motion to authorize the City Attorney to hire James Rodgers from the Moore Law Firm to represent the City on the two lawsuits was made by Mayor Biard and seconded by Council Member Wright. Motion carried, 7 ayes - 0 nays. 17. Consider and approve future events for City Council and/or City Staff pursuant to Resolution No. 2004-081. Mayor Biard reminded everyone of the upcoming block party scheduled for Saturday from 10:00 a.m. to 2:00 p.m. at the Fairgrounds. 18. Adjournment. There being no further business, a Motion to adjourn was made by Council Member McCarthy and was seconded by Council Member Pickle. Motion carried, 7 ayes - 0 nays. The meeting was adjourned at 6:30 p.m. WILL BIARD, MAYOR JANICE ELLIS, CITY CLERK 17