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02 City Council Min (6/14/04)MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL June 14, 2004 The City Council of the City of Paris met in regular session, Monday, June 14, 2004, 6:00 P.M., at Paris Junior College, Bobby R. Walters Applied Technology Building, Room 1205, 2400 Clarksville Street, Paris, Texas. Mayor Curtis Fendley called the meeting to order with the following Council Members present: Jim Bell, Jay Guest, Mary Ann Fisher, Karen Wilkerson, Don Wilson and Rick Poston. Also present were Interim City Manager Terry Townsend, City Attorney Larry W. Schenk, and Assistant City Clerk Sherian Dixon. Mayor Fendley announced receipt of reports from the Planning and Zoning Commission. Mayor Fendley declared the public hearing open to consider the petition of Ronnie Aubrey for a change in zoning from an Agricultural District (A) to a One-Family Dwelling District No. 3(SF-3) With a Specific Use Permit (39) Mobile Homes, on Lot 21, City Block 323, being located at number 2715 19tn Street N.W. Ronnie Aubrey of 2719 19th N.W. came forward stating that there was a large house that is very old on this lot and he wanted to tear that down and put a mobile home on the lot for him and his wife to live in. Mayor Fendley called for anyone else in favor of or in opposition to this item to come forward, and no one appeared. ORDINANCE NO. 2004-013 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, PARIS, TEXAS, AND CHANGING THE BOUNDARIES ESTABLISHED BY THE ZONING MAP OF SAID CITY; ESTABLISHING A ONE-FAMILY DWELLING DISTRICT NO. 3(SF-3) WITH SPECIFIC USE PERMIT (39) MOBILE HOMES ON LOT 21, CITY BLOCK 323, ON PROPERTY BELONGING TO RONNIE AUBREY, SO AS TO INCLUDE Regular Meeting City Council June 14, 2004 Page 2 THEREIN TERRITORY FORMERLY DESIGNATED AS AN AGRICULTURAL DISTRICT (A); DESIGNATING THE BOUNDARIES OF THE ONE-FAMILY DWELLING DISTRICT NO. 3(SF-3) WITH SPECIFIC USE PERMIT (39) MOBILE HOMES SO ESTABLISHED; PROVIDING FOR A PENALTY NOT TO EXCEED $2,000.00; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EFFECTIVE DATE, was read. Mayor Fendley indicated that the Planning and Zoning Commission had approved this 8-0. Councilman Bell made a motion for approval which was seconded by Councilwoman Fisher. The motion passed 7 ayes, 0 nays. Mayor Fendley indicated there was a conflict of interest on the next item with Councilman Wilson and called for a motion to excuse him from the meeting. A motion was made by Councilman Bell, seconded by Councilman Guest, and passed 6 ayes, 0 nays. Councilman Wilson exited the meeting. Mayor Fendley opened the public hearing to consider the petition of Don Wilson for a change in zoning from a One-Family Dwelling District No. 2(SF- 2) to a Commercial District (C) on Lots 2 and 2-A, City Block 266. Will Beard appeared in behalf of Walnut Creek Business Park, which owns the property. He called the Council's attention to a handout which showed the property is zoned SF-2 and the adj acent properties are zoned Commercial or Light Industrial and asked the Council to approve the request for the rezoning. No one else appeared to speak for or against the proposed zoning change. ORDINANCE NO. 2004-014 AND ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AMENDING ZONING ORDINANCE NO. 1710 OF THE Regular Meeting City Council June 14, 2004 Page 3 CITY OF PARIS, PARIS, TEXAS, AND CHANGING THE BOUNDARIES ESTABLISHED BY THE ZONING MAP OF SAID CITY; ESTABLISHING A COMMERCIAL DISTRICT (C) ON LOTS 2 AND 2-A, CITY BLOCK 266, ON PROPERTY BELONG TO DON WILSON, SO AS TO INCLUDE THEREIN TERRITORY FORMERLY DESIGNATED AS A ONE-FAMILY DWELLING DISTRICT NO. 2(SF-2); DESIGNATING THE BOUNDARIES OF THE COMMERCIAL DISTRICT (C) SO ESTABLISHED; PROVIDING FOR A PENALTY NOT TO EXCEED $2,000.00; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EFFECTIVE DATE, was presented. Mayor Fendley indicated the Planning and Zoning Commission had approved this 8 to 0. Councilman Bell made a motion to approve, which was seconded by Councilman Poston. The motion carried 6 ayes, 0 nays. Mayor Fendley called for a motion for Councilman Wilson to return. Councilman Bell made the motion, which was seconded by Councilwoman Wilkerson, and carried 6 ayes, 0 nays. Councilman Wilson re-entered the meeting. Mayor Fendley said items 7, 8 and 9 were tabled during the Planning and Zoning Commission meeting. Mayor Fendley opened the public hearing to consider a petition requesting the abandonment of the City's interest in a portion of a thirty (30) wide street right-of-way known as 27th Street N.E., running north and south beginning at the South Boundary Line of Pine Bluff Street at the northeast corner of Lot 13A, City Block 255-A going south to the North Boundary Line of Lot 10, City Block 255-A, a distance of approximately 150.5 feet. No one appeared in favor of or opposition to the petition. Mayor Fendley called for a motion to table action on an ordinance for the proposed abandonment and action on the resolution for the execution of the Deeds of Abandonment. Councilman Wilson made a motion to table, Councilman Guest seconded it, and it passed 7 ayes, 0 nays. Regular Meeting City Council June 14, 2004 Page 4 Mayor Fendley called for consideration of and action on the Amended Master Plat of Stone Ridge Subdivision. He indicated it was approved by Planning and Zoning, subject to the Engineer's recommendation. Councilwoman Fisher made a motion to accept the amended plat subject to the Engineer's recommendation. Councilman Guest seconded the motion and it carried 7 ayes, 0 nays. Mayor Fendley indicated that the next item, consideration of and action on the Revised Master Plat of Stone Ridge, Phase IV, was recommended with approval subject to the Engineer's recommendation. A motion was made by Councilman Guest, seconded by Councilman Bell, for approval. The motion carried 7 ayes, 0 nays. Steve Methven said this item was denied by the Planning and Zoning Commission and therefore no action was taken. Since there was a vote taken, Councilman Bell made a motion to reconsider, which was seconded by Councilman Guest. It passed 7 ayes, 0 nays. Mayor Fendley called for consideration of and action the Final Plat of Morrell Place, being located at 1625 Loop 286 N.E., which was approved by the Planning and Zoning Commission. Councilman Guest made a motion for approval which was seconded by Councilwoman Fisher and passed 7 ayes, 0 nays. Mayor Fendley asked for corrections or addendums to the minutes from the City Council meetings of May 6, 2004, May 10, 2004, May 24, 2004 and May 28, 2004. He indicated since there were none, the minutes would stand approved. Mayor Fendley indicated they were in receipt of the minutes for the Paris Economic Development Corporation, May 19, 2004, the Benefits Subcommittee, May 4, 2004, the Board of Adjustments, May 17 & 25, 2004, Heritage Preservation, March 22, 2004, the Historic Preservation Commission, May 12 & 17, 2004, the Main Street Advisory Board, May 19 & 24, 2004, and Regular Meeting City Council June 14, 2004 Page 5 the Airport Advisory Board, April 15, 2004. Councilwoman Fisher made a motion to accept the minutes as received. Councilman Wilson seconded the motion which carried 7 ayes, 0 nays. Mayor Fendley adj ourned the meeting briefly so that Waters Consulting Group could set up for a power point presentation at 6:15 p.m. The meeting reconvened at 6:18 p.m. and Chris Hartung with Waters Consulting made the presentation. Mr. Hartung said that Waters Consulting Group not does executive searches and comprehensive wage and salary studies, but the also develop alternative compensation programs, help with innovative performance management systems, conduct training and development seminars, and aid in general human resource issues and compliance. His presentation included a brief review of the 2000/2001 Study conducted by them for the City of Paris and possible options for updating the current pay structure. The Evaluation examined both exempt and non-empt employees. For exempt, there were twenty-six (26) different jobs evaluated with 11 grade levels developed. For non-exempt, there were sixty-three (63) different jobs with 12 grade levels developed. He indicated this did not include police and fire, which are sworn public safety positions with ranks. Mr. Hartung said they collected data from twenty-two (22) different cities in North Central Texas and the Tyler/Longview area. Waters made recommendations based on comparison of this data, the Texas Municipal League Annual Salary Survey, and the job evaluations which would impact the 2001 budget by a little over $425,000. The City of Paris did not implement these recommendations in 2001. Mr. Hartung stated that Waters was recommending one of two updating options for 2004. Option 1 included taking the existing salary structure, gather current information from the Texas Municipal League Salary Survey, and make recommendations for an across the board adjustmentto the city's current salary Regular Meeting City Council June 14, 2004 Page 6 structure at an estimated cost of $17,010.00. Option 21nluded taking the 2001 proposed salary structure, gather additional data to update the salary survey comparisons, and make a recommendation for implementation with an estimated cost of $15,390.00. Councilman Guest asked if all of this factored in cost of living. Mr. Hartung said it did not, that actual salary data was compared to actual salary data. Councilman Poston wanted to know how the cities were picked out for the survey. Mr. Hartung stated that, although he wasn't involved in that, it is usually done in cooperation with the city staff and possibly with the city council. The Council discussed the particulars ofthe survey with Mr. Hartung and asked for clarification on some points. Mr. Hartung said the market is assumed to equal 100% which is the average of the cities compared, then Paris was compared to that. Mayor Fendley asked how much time it would take to gather the information as budget time was near. Mr. Hartung felt like it would take 30 to 45 days. Councilman Bell wondered if there was time to do this, would the budget allow for this. Mayor Fendley said that would be done the last 60 to 90 days. Councilwoman Wilkerson asked if the city was using this, and if not, why. Mayor Fendley indicated that they were not because it would have cost too much. Gene Anderson, Finance Director, said along with the included benefits, this would have added up to about $525,000. Mayor Fendley called for consideration of an action on a resolution approving a professional service contract for updating the City of Paris Salary Survey by Waters Consulting Group. Councilman Guest made a motion to table the action which was seconded by Councilwoman Fisher. The motion carried 7 ayes, 0 nays. Regular Meeting City Council June 14, 2004 Page 7 Mayor Fendley called for discussion and consideration of designation of community representatives to participate in the interview with the Waters Consulting Company for the development of a City Manager Profile. Mayor Fendley indicated that Chris Hartung had visited with all the department heads today and with members of the City Council. He said the plan was for Mr. Hartung to interview parties in the community that the Council chooses him to interview and come back with a profile for the Council's review at the June 28, 2004 City Council Meeting, so they can seek applicants for the job. Mayor Fendley opened the meeting for discussion. He related that he felt there should be a representative from the industrial group, someone from Paris Junior College, someone from the Paris News, someone from the Paris Economic Development Corporation or the Chamber of Commerce, and possibly someone from Lamar County Water Supply. He did realized there didn't need to be too many representatives, though. Mr. Hartung said the representatives were usually from identifiable community groups and other areas that interact with the city. It was suggested that around ten (10) to twelve (12) representatives would be sufficient. It was decided to also include Lamar County, the Texas Department of Transportation, another one from the Industries and a representative from the HospitaL Mayor Fendley said these representative needed to be contacted as Mr. Hartung was scheduled to do the interviews next Monday. Councilman Bell made a motion to adopt the list of representatives as amended. Councilman Guest seconded the motion and it carried 7 ayes, 0 nays. Mayor Fendley introduce the next agenda item, presentation of a rate study for water and sewer rates for the City of Paris by Daryl Klein, for the firm of Reed, Stowe & Yanke, Inc. Regular Meeting City Council June 14, 2004 Page 8 Mr. Klein informed the Council that the firm had recently been purchased by R. W. Beck and was called by R.W. Beck now. He related that the City had a contractual obligation with Campbell's Soup which requires them to conduct an annual rate study and they were hired to do this year's study. Mr. Klein informed the Council that there has been a decrease in water and wastewater expenditures, mostly because of electricity costs have decreased because the City has load aggregation agreement which has given them a better electrical rate and saved them about $130,000. He continued that there has been a reduction in the amount of money spent for equipment and for maintenance and repair and replacement items. He had a concern that if too much money was kept from maintenance, repair and replacement, that might cause a problem in the long run and cost more money than was potentially saved in the first place. He mention that operating costs had declined over the past two years. He summarized the findings from the study by noting there had been a decrease on the wastewater side in expenditures, but there had been more of a decline in the consumption of water, which drives the wastewater volumes. He explained when the volumes fall faster than the costs, that automatically results in an increase in rates. He said the rate increase should be a least $0.05 per 100 cubic feet, at a minimum. In addition to the five cent increase in wastewater rates, he said R. W. Beck was also recommending a 5% increase in water and wastewater rates. He explained this would restore depleted operating reserves and would help in case they have to issue more debt for water treatment plant improvements needed to maintain the plant's rated capacity. Regular Meeting City Council June 14, 2004 Page 9 He said the would result in an average rate increase of $0.35 per cubic foot for most residential customers, which would impact most customers bill's by approximately $2.37. For commercial customers, there would be an average increase of $0.43 per cubic foot and would impact their bill's by approximately $3.78. Mr. Klein showed a graph of comparison of cities on water and wastewater monthly bills ofresidential customers assuming a consumption of 5,000 gallons compiled by the 2004 Texas Municipal League Water and Wastewater Survey. He related that the cities used for comparison were either in the 30,000 population range or in the area near Paris. For the monthly charge for water consumption, Paris was in the lower half of the cities. For the sewer charge, Paris was toward the top. For a combination of the two charges, Paris was at the midpoint. Mr. Klein opened the floor for questions. Councilman Wilson questioned that when money was taken from the General Fund and put in the Water and Wastewater funds, if that wasn't just a shell game, moving money around. The transfer equaled to $1,000,000, including the franchise charge. Councilman Wilson asked if the franchise fee wasn't to offset damages done to the streets and other costs incurred during the course of the water and sewer business. Mr. Anderson that was correct, that the franchise fee helped the water and sewer departments pay their own ways. Councilman Bell recalled that the City was upside down in the reserves and the money needed to be left in the account to offset that. Mr. Anderson explained that there was a decline in the revenues and the reserves because of the decline in the consumption. He also indicated that the situation had been discussed with the Council several times to correct that situation. Regular Meeting City Council June 14, 2004 Page 10 Councilman Wilson asked if when he said correct the situation, did he mean raise the rates. Mr. Anderson said that was correct. Mr. Wilson asked if they didn't transfer so much, would that partially offset raising the water rates. Mr. Anderson indicated that was correct. Councilman Bell indicated that the water rates were not as high as the wastewater rates, which are up in the 85-90% group for costs for those services. He indicated that the Council had voted last year not to raise the water and wastewater rates. Councilman Wilson asked if most municipalities commonly handled their water and wastewater accounts by moving money. Mr. Klein said this was a pretty common practice. Councilman Wilson said he would hate for the City to make a rate increase based on the assumption that there are going to be more additions to the water treatment plant, since the consumption is declining every year. He said the decline in consumption is getting the City further into debt. He speculated that if Campbell's Soup or one of the other major water users closed, that revenue would go to zero and the citizens of Paris would go to the top of the list to take up the slack. Mr. Klein explained that the driver behind the suggest 5% increase was not the anticipated debt, but the operating reserves. Councilman Wilson pointed out in the rate study that 18% of the income is from water loss, which is lost in the system and not billed to anyone. He felt this cost is inherent system in the system and the large users should be participating in that cost. Mr. Klein said they did not because of where in the system they receive their water from. Mr. Wilson said he felt if more money was spent in repairs and new pipes to prevent so much water loss, it would be better. Mr. Klein said in the study, they voiced their concern that in cutting costs, they didn't eliminate necessary repairs and replacements. Regular Meeting City Council June 14, 2004 Page 11 Mayor Fendley called for discussion and consideration of direction to City staff regarding this water and sewer rate study which requested a 5% in water and wastewater rates above the $0.05/cu.ft. increase in wastewater rates. He explained that this study was required by the contract which was renewed in October or November, the cost of which was shared 50150 between the City and Campbell's Soup. Councilman Guest indicated that the Council had been dodging this issue for four (4) years and this wasn't even recommended for capital projects but just to get the system up to the needed reserve level. After discussion, Councilman Guest made a motion to accept and implement the recommendations of the study. Councilman Wilson seconded the motion. City Attorney Schenk said they would bring the ordinance to the Council at the July Sth meeting. Mr. Anderson said the rate increase usually begins the next billing cycle after the Council meeting. On a vote, the motion carried 4 ayes, 3 nays, Councilwoman Fisher and Councilmen Bell and Poston voting no. FRANCHISE ORDINANCE NO. (assigned upon passage) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, PROVIDING THAT ORDINANCE NO. 2001-033, WHICH GRANTED A FRANCHISE FOR ELECTRIC SERVICE TO TEXAS UTILITIES ELECTRIC COMPANY, NOW KNOWN AS ONCOR ELECTRIC DELIVERY COMPANY, BE EXTENDED FOR A PERIOD OF TWELVE (12) MONTHS; PROVIDING FOR CONTINUED COMPENSATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS WITH OTHER ORDINANCES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING FOR AN EFFECTIVE DATE, was presented on first reading by Interim City Manager Townsend. City Attorney Schenk said that he had be in contact with Charles Hill of Oncor and that Mr. Hill is satisfied that this contract be extended for a period of one (1) year while the City enters into negotiations about what Oncor or the City feels Regular Meeting City Council June 14, 2004 Page 12 may be appropriate for the Franchise. He indicated this was a three reading ordinance. Councilman Bell moved to accept the first reading of the ordinance. That was seconded by Councilman Wilson and carried 7 ayes, 0 nays. ORDINANCE NO. 2004-015 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, REPEALING ARTICLE III TO CHAPTER 34 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, ENTITLED WASTEWATER DISCHARGE AND DISPOSAL; APPROVING AND AUTHORIZING A NEW ARTICLE III TO CHAPTER 34 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, ENTITLED WASTEWATER DISCHARGE AND DISPOSAL, IN CONFORMANCE WITH CURRENT ENVIRONMENTAL PROTECTION AGENCY AND TEXAS COMMIS SION ON ENVIRONMENTAL QUALITY RULES, REGULATIONS, AND POLICIES; PROVIDING FOR PENALTIES; PROVIDING A SAVINGS CLAUSE; PROVIDING A REPEALER; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT AND DECLARING AN EFFECTIVE DATE, was presented by Interim City Manager Townsend. A motion was made by Councilwoman Fisher for approvaL It was seconded by Councilman Poston and carried 7 ayes, 0 nays. FRANCHISE ORDINANCE NO. (assigned upon passage) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, GRANTING TO DAVID THOMPSON, DBA LONE STAR CAB COMPANY, A FRANCHISE TO USE THE PUBLIC STREETS, ALLEYS, AND HIGHWAYS OF THE CITY OF PARIS FOR THE PURPOSE OF TRANSPORTING PASSENGERS FOR HIRE IN MOTOR VEHICLES FOR A PERIOD OF THREE (3) YEARS, BEGINNING AUGUST 9, 2004, AND ENDING AUGUST 8, 2007, UPON THE TERMS AND CONDITIONS HEREINAFTER PRESCRIBED; PROVIDING FOR THE REGULATION OF Regular Meeting City Council June 14, 2004 Page 13 SAID BUSINESS; PROVIDING FOR THE PAYMENT OF A TAX FOR SUCH PRIVILEGE AND USE OF SUCH STREETS, ALLEYS AND HIGH- WAYS; PROVIDING FOR THE TERMINATION OF SUCH GRANT UPON SPECIFIED CONDITIONS; PROVIDING FOR TAXICAB STANDS FOR USE OF SAID GRANTEE; PROVIDING FOR PUBLIC LIABILITY INSURANCE ON THE MOTOR VEHICLES AND EQUIPMENT OF SAID GRANTEE; PROVIDING FOR THE SUPERVISION OF SAID BUSINESS AND INSPECTION OF ITS VEHICULAR EQUIPMENT BY THE OFFICIALS OF THE CITY OF PARIS; AND PROVIDING AND EFFECTIVE DATE, was presented on first reading by Interim City Manager Townsend. A motion was made by Councilwoman Fisher. Councilwoman Wilkerson asked who inspected these vehicles. City Attorney Schenk said he wasn't sure if the police department had done some in the past or not. He indicated that these individuals are required to file information relating to the age of the vehicle, the vehicle registrations and those types of things. He said inspection was done by complaint, meaning if there was a complaint made by someone, then an inspection is done. Councilman Bell asked if the complaint was legitimate, was there provision in the ordinance to take care of it. City Attorney Schenk indicated the ordinance provided them doing anything up to and including terminating the franchise. Councilwoman Wilkerson asked if there was any state criteria for the condition of the cabs. City Attorney Schenk affirmed that there was stated criteria for minimum safety features, as well requirements for identification of the cab, but for cleanliness, it states general cleanliness. Councilman Bell seconded the motion and it carried 7 ayes, 0 nays. FRANCHISE ORDINANCE NO. (assigned upon passage) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, GRANTING TO DENNIS NELMS, DBA CITY CAB COMPANY, A FRANCHISE TO USE THE PUBLIC STREETS, ALLEYS, AND HIGHWAYS OF THE CITY OF PARIS FOR THE PURPOSE OF TRANSPORTING PASSENGERS FOR HIRE IN MOTOR VEHICLES FOR Regular Meeting City Council June 14, 2004 Page 14 A PERIOD OF THREE (3) YEARS, BEGINNING AUGUST 9, 2004, AND ENDING AUGUST 8, 2007, UPON THE TERMS AND CONDITIONS HEREINAFTER PRESCRIBED; PROVIDING FOR THE REGULATION OF SAID BUSINESS; PROVIDING FOR THE PAYMENT OF A TAX FOR SUCH PRIVILEGE AND USE OF SUCH STREETS, ALLEYS AND HIGH- WAYS; PROVIDING FOR THE TERMINATION OF SUCH GRANT UPON SPECIFIED CONDITIONS; PROVIDING FOR TAXICAB STANDS FOR USE OF SAID GRANTEE; PROVIDING FOR PUBLIC LIABILITY INSURANCE ON THE MOTOR VEHICLES AND EQUIPMENT OF SAID GRANTEE; PROVIDING FOR THE SUPERVISION OF SAID BUSINESS AND INSPECTION OF ITS VEHICULAR EQUIPMENT BY THE OFFICIALS OF THE CITY OF PARIS; AND PROVIDING AND EFFECTIVE DATE, was presented on first reading by Interim City Manager Townsend. A motion was made by Councilwoman Fisher and seconded by Councilman Bell for approval of the first reading of the ordinance. The motion carried 7 ayes, 0 nays. FRANCHISE ORDINANCE NO. (assigned upon passage) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, GRANTING TO STEVE B RANEY AND WENDY L. RANEY, DBA YELLOW CAB COMPANY, A FRANCHISE TO USE THE PUBLIC STREETS, ALLEYS, AND HIGHWAYS OF THE CITY OF PARIS FOR THE PURPOSE OF TRANSPORTING PASSENGERS FOR HIRE IN MOTOR VEHICLES FOR A PERIOD OF THREE (3) YEARS, BEGINNING AUGUST 9, 2004, AND ENDING AUGUST 8, 2007, UPON THE TERMS AND CONDITIONS HEREINAFTER PRESCRIBED; PROVIDING FOR THE REGULATION OF SAID BUSINESS; PROVIDING FOR THE PAYMENT OF A TAX FOR SUCH PRIVILEGE AND USE OF SUCH STREETS, ALLEYS AND HIGHWAYS; PROVIDING FOR THE TERMINATION OF SUCH GRANT UPON SPECIFIED CONDITIONS; PROVIDING FOR Regular Meeting City Council June 14, 2004 Page 15 TAXICAB STANDS FOR USE OF SAID GRANTEE; PROVIDING FOR PUBLIC LIABILITY INSURANCE ON THE MOTOR VEHICLES AND EQUIPMENT OF SAID GRANTEE; PROVIDING FOR THE SUPERVISION OF SAID BUSINESS AND INSPECTION OF ITS VEHICULAR EQUIPMENT BY THE OFFICIALS OF THE CITY OF PARIS; AND PROVIDING AND EFFECTIVE DATE, was presented on first reading by Interim City Manager Townsend. A motion was made by Councilwoman Fisher and seconded by Councilman Bell for approval of the first reading of the ordinance. The motion carried 7 ayes, 0 nays. Resolution No. 2004-097, awarding the bid for employee uniforms for various City departments and authorizing the execution of a uniform supply contract, was presented. Interim City Manager brought the Council's attention to a memo in the packet that showed City staff was recommending the low bidder G& K Services of Coppell, Texas. He indicated that the bid was based on the average denim long sleeve shirt and denim jeans and 140 employees. The weekly rate is $4.90 for laundry service for 11 sets of uniforms. Councilman Wilson asked if this included the mat rentals. Interim City Manager Townsend said it did. Councilman Poston asked the difference in the bid from this vendor and the current one. Interim City Manager Townsend indicated that it amounted to about $7,000.00 annually. A motion was made by Councilman Bell and seconded by Councilman Poston for approvaL It carried 7 ayes, 0 nays. Resolution No. 2004-098 approving the execution of a Temporary Construction License Agreement with the Texas Department of Transportation for drainage improvements to Cox Field Airport, was presented. Councilman Bell made a motion to approve. It was seconded by Councilwoman Fisher and carried 7 ayes, 0 nays. Regular Meeting City Council June 14, 2004 Page 16 Resolution No. 2004-099, accepting the appraised value on two temporary construction easements for the Texas Department of Transportation-funded project to widen Lamar Avenue between 20th Street N.E. and North Collegiate Drive and acknowledge receipt of the real estate appraisal reports on said easements, was presented. Councilman Bell made a motion to approve, which was seconded by Councilman Poston. The motion carried 7 ayes, 0 nays. Resolution No. 2004-100, approving and authorizing the execution of a Utility Joint Use Acknowledgment Non-Reimbursable Utility Adj ustment between the City of Paris and the Texas Department of Transportation in conjunction with the Texas Department of Transportation-funded proj ect to widen Lamar Avenue between 20th N.E. and North Collegiate Drive, was presented. A motion was made by Councilman Guest, seconded by Councilman Poston. Councilman Bell noted that the non-reimbursable wording in this says we will shoulder that cost. City Engineer Shawn Napier said the City of Paris has already paid that cost which is about $17,000.00 to cover the 10-15% of the overall costs. Councilman Bell felt like this was after the fact, but City Attorney Schenk said that this was to insure that if they did have to move them at a later date, the City would shoulder the cost. The motion carried 7 ayes, 0 nays. Resolution No. 2004-101, amending Resolution No. 2004-026 which approved and authorized a grant application to the Office of the Governor, Criminal Justice Division, for a Red River Valley Drug Task Force Grant, was presented. Councilwoman Fisher made a motion for approval, which was seconded by Councilman Bell. Councilman Wilson as if the amount of the grant, $1,000,000.00 was just for Paris, or for the whole area. City Attorney Schenk said that the grant was for the area, but since City of Paris was the lead organization, it had to say that all of the $311,434.00 will be provided. Councilman Wilson wanted to know how much of the match was coming from Paris. City Attorney Schenk said it was a little over $24,000.00. Police Chief Karl Louis said this was calculated on a percentage basis shared with all of the eleven (11) agencies involved. The motion carried 7 ayes, 0 nays. Regular Meeting City Council June 14, 2004 Page 17 Resolution No. 2004-102, approving Change Order No. Three and Final Payment and Release Affidavit for Contract # 1 with Hilliard & Sons Contractors, Inc. for construction of the softball fields for the Paris Sports Complex, was presented. Mayor Fendley indicated this was a decrease in the contract. Councilman Wilson made a motion to approve the resolution. It was seconded by Councilman Guest and carried 7 ayes, 0 nays. Resolution No. 2004-103, approving the Final Payment and Release Affidavit for Contract #2 with Richard Drake Construction for softball field fencing for the Paris Sports Complex, was presented. A motion was made by Councilman Guest, seconded by Councilman Wilson, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2004-104, approving the Final Payment and Release Affidavit for Contract #4 with Richard Drake Construction Company for construction of the Sports Pavilion for the Paris Sports Complex, was presented. Councilwoman Fisher made a motion to approve, which was seconded by Councilman Guest. The motion carried 7 ayes, 0 nays. Resolution No. 2004-105, approving Change Order No. Two and Final Payment and Release Affidavit for Contract #5 with Geaux Corporation for construction of a restroom, restroom/concession building, gateway building, and entry sign (masonry, building, plumbing, electrical, and roofing) for the Paris Sports Complex was presented. Interim City Manager Townsend indicated that the last two items were not built because the City chose not to do that. A motion was made by Councilwoman Wilkerson and seconded by Councilman Wilson to approve. It carried 7 ayes, 0 nays. Resolution No. 2004-106, approving Final Payment and Release Affidavit for Contract #6 with Hilliard and Sons Contractors, Inc. for concrete flatwork and park amenities for the Paris Sports Complex, was presented. Councilwoman Fisher made a motion to approve, which was seconded by Councilman Bell. Regular Meeting City Council June 14, 2004 Page 18 The motion carried 7 ayes, 0 nays. Resolution No. 2004-107, approving Final Payment and Release Affidavit for the contract with Chicago Bridge and Iron Constructors, Inc. For the 2.5 million gallon Elevated Water Storage Tank and 24" Waterline Project, was presented. Councilman Poston made a motion to approve, which was seconded by Councilman Bell. The motion carried 7 ayes, 0 nays. Resolution No. 2004-108, approving and authorizing a personal and professional services contract for consultant services of an International Board Certified Lactation Consultant for the Paris-Lamar County Health Department Texas WIC Program, was presented. A motion was made by Councilwoman Fisher and seconded by Councilman Poston for approvaL It carried 7 ayes, 0 nays. Resolution No. 2004-109, awarding the bid to a licensed, registered federal firearms dealer, for the purchase of firearms and other weapons confiscated as a result of the Red River Valley Drug Task Force' s drug interdiction activity, was presented. Councilman Bell asked if someone buys these weapons and commits a crime, would the city be liable. Police Chief Louis said the city would not be liable. Mayor Fendley asked if this money goes back to the Task Force. Chief Louis reminded them of the grant requiring a match and said this money could be used for that, so the City wouldn't be out any money. Councilman Bell made a motion to accept the bid. Councilman Guest seconded the motion and it carried 7 ayes, 0 nays. Resolution No. 2004-110, referring a petition to the Planning and Zoning Commission requesting the abandonment of a 120 foot wide street right-of-way known as 13th Street S.W. located in the Southwest Industrial Park, beginning at the North right-of-way line of Loop 286 S.W. going North approximately 1,713.1 feet to and including a cul de sac, was presented. A motion was made Regular Meeting City Council June 14, 2004 Page 19 by Councilman Bell for acceptance and was seconded by Councilman Guest. It carried 7 ayes, 0 nays. Resolution No. 2004-111, approving and authorizing the execution of a service agreement with a letter of agency to Hubbard Communications Group, Inc. for professional and personal services in performing telephone bill auditing, inventory, and consulting services, was presented. Councilman Bell asked if there was any cost to the City. City Attorney indicated that the only cost was out of pocket expenses incurred, which should be nominal. HCG gets 50% of the refunds it locates. Interim City Manager Townsend indicated the last time the City did this, they made money. Councilman Bell made a motion to approve the resolution, which was seconded by Councilwoman Fisher. The motion carried 7 ayes, 0 nays. Resolution No. 2004-112, appointing Karen Wilkerson and Mary Ann Fisher as members to the Ark-Tex Council of Governments, was presented. Councilman Bell made a motion to approve, which was seconded by Councilman Guest. The motion carried 7 ayes, 0 nays. Action on a resolution appointing members to the Band Commission was tabled on a motion from Councilman Bell, which was seconded by Councilman Poston. There was a question of one of the appointees last names, whether it was Davis or Daniels. The motion carried 7 ayes, 0 nays. Resolution No. 113, appointing Bill Kennedy and Carl Lucas as members to the Library Advisory Board, and reappointing Jake Street, was presented. A motion was made by Councilman Bell, which was seconded by Councilman Guest, for approval. The motion carried 7 ayes, 0 nays. Resolution No. 2004-114, appointing Benny Plata as a member of the Planning and Zoning Commission and reappointing Marshall Kent, was presented. Councilman Bell mentioned the Council had received a recent report of some not attending the Planning and Zoning Commission meetings. He asked if there Regular Meeting City Council June 14, 2004 Page 20 were any attendance requirements. City Attorney Schenk explained that there was not an attendance policy in place. Mayor Fendley indicated that Louis Yates, Jr. had requested to not be reappointed and the City had sent a letter to another member who was out of the country. Councilman Bell asked if the one out of the country would be reappointed. Mayor Fendley said he was not up for reappointment, he would have to resign. Councilman Bell was concerned that the lack of attendance was creating ill will and was costing people money. Councilman Bell made a motion to approve the appointments. It was seconded by Councilwoman Fisher and carried 7 ayes, 0 nays. Interim City Manager Townsend introduced Mark Spencer of MHS Planning and Design of Tyler to discuss the report regarding the Downtown Pocket Park. Mr. Spencer met with Lindsey Harper, Main Street Manager, and Lisa Wright, Director of Community Development, to discuss possibilities for using the vacant area at 120 and 124 S. Main. It was suggested that the area be flexible so that it could be used for a variety of programs and events. Mr. Spencer said their charge was to look into the possibilities of what this could be and the projected costs of doing those things, considering all the structural improvements that needed to be made. He called the Council's attention to a handout by MHS Planning and Design and pointed out the eight (8) elevation change west to south and a beam that runs through the middle. For base data, he explained, they used the structural engineering report done four months ago. They projected that two walls of water could come down and give water noise. He said they suggested a lattice work to the south end, with an awning that could be pulled back for shade. He said parts of the wall of the old building could be utilized in the space. Improvements would include those things already mentioned, as well as a sitting wall, landscaping, and other improvements. He said the taller brick walls would have to be lowered. Mr. Spencer called the Council's attention to the budget figures he passed out. He indicated the figure for improvements was about $157,000.00 and did not include the structural modifications which would be about $35,000.00-38,000, Regular Meeting City Council June 14, 2004 Page 21 which would be somewhere near $200,000.00 for the entire project. Because of the costs, he suggested this is something that may have to been done in phases. Councilman Bell asked if there was any grant money available for this. Interim City Manager Townsend that the Texas Capital Fund was available for streetscape types of funding. To use this, he explained, the sidewalk in front of the pocket park would have to be tied into the improvements. He indicated the maximum amount of the grant is $150,000.00 and that it could be applied for more than once. Interim City Attorney Townsend said that in the drawings, both areas were open where people could walk in and out, but there was also a suggestion of putting in wrought iron gates. In doing this, he indicated that they will try to preserve as much of the buildings as possible. Councilman Poston asked how this idea got started. Mr. Townsend said that a fire downtown burned these buildings two (2) years ago and the family that owns these properties has come forward and requested that since the taxes are paid up, could they donate it to the city for a park. Interim City Manager Townsend indicated that the $35,000.00 to $38,000.00 was what it would take to make the area structurally safe. The rest of the funds would be used to build the park. He indicated that the City of Paris has not accepted the donation of the property yet. Mayor Fendley said it was a great concept if the City can afford it. Councilwoman Wilkerson said she felt Lindsey Harper should look into the Texas Capital Fund to check out the requirements and deadlines. She felt with the Streetscape program already in progress, this would be a great tie-in. Councilman Wilson asked what would happen if the City made it safe, but didn't build the park. City Attorney Schenk said part ofthe family's provisions for making this gift to the city was to use this for a park. Councilman Bell said if this is unsafe, what would prevent the city from ordering the family to make Regular Meeting City Council June 14, 2004 Page 22 it safe. City Attorney Schenk said the code enforcement had been held at bay while the City was deciding whether or not to accept the gift. Councilman Wilson said the unsafeness comes from people occupying the area, which could be prevented by putting up a barrier. Mayor Fendley said the consensus was to move forward and check out the grants and get more information and come back with a report in the next thirty (30) to sixty (60) days. Mayor Fendley called for discussion of and possible action on approving tentative lease terms for approximately 200 acres at Cox Field Airport for use as a World War II air museum. Interim City Manager Townsend, said that Lisa Wright, Director of Community Development, couldn't be at this meeting but thought she just needed permission from the two people who had mowing leases at the airport. Mayor Fendley said they had agreed to relinquish their leases. Councilman Bell felt like this should be run by Texas Department of Transportation and the FAA, to make sure there would be no conflict with these organizations. He also felt they needed to make sure whether or not it would be in conflict with expansion and development of Cox Field. Councilwoman Fisher asked if ths could be tabled. Mayor Fendley said it could, that there was no rush. Councilwoman Fisher made a motion to table action on this item. Councilman Bell seconded the motion. Councilman Wilson asked if there were any time constraints on the people who were wanting to put in the museum. Mayor Fendley indicated that Gary Vest and the PEDC had been working with them and putting this together and that the leases were the only hang up. Lisa Wright, director of Community Development, had said that they need to be moving forward on this. Councilwoman Wilkerson related that at the Visitors and Convention Council, Gary Vest had said that he had an offer on his property, so he was trying to move as quickly as possible to tie that deal up. Mayor Fendley said the answers to Jim's concerns could be brought to the June 28th City Council Meeting. The motion to table this item carried 7 ayes, 0 nays. Mayor Fendley called for a break at 8:00 p at 8:12 p.m. Regular Meeting City Council June 14, 2004 Page 23 m. and reconvened the open session Mayor Fendley called for discussion of City policies, considering recommendations of the Benefits Sub-Committee and providing direction to staff regarding accrued vacation time, accrued sick leave time, retiree benefits and car allowances. Interim City Manager Townsend said that the answer to a lot of questions about the benefits which were brought up in the last meeting were included in the handout he distributed to the Council Members. Councilman Guest, chairman of the Benefits Sub-Committee, reminded the Council that one of the things that was asked for in that meeting was to come back with personal time off recommendations in lieu of the different times off already in place. Another request was for the number of people already retired and receiving health benefits from the city. He called the Council's attention to Mr. Townsend's report which showed the employee's who will be eligible for retirement in the next five (5), ten (10), fifteen, etc. years. He also reminded them of another question by Councilman Bell about the percentages of claims applicable to retirees based on the prior year and related that was in the handout under Retiree Insurance. He said the last request was about the city policy on car allowances. Councilman Guest called their attention to the survey included in Interim City Manager Townsend's report of paid time off in other cities. Mr. Townsend affirmed that, of those cities surveyed, only one had attempted to used PTO. Schools and other business organizations were also surveyed. Councilwoman Wilkerson asked how PTO was acquired. Councilman Guest said PTO includes leaves of absences , vacation time and sick leave. Councilman Bell said what PTO would do is lump all time off together in one account, so that it would be easier to manage. He felt, although it was being used much in cities, it was certainly being used in industry. Councilman Bell said the question was could they use this concept in the city, and looking at it, he felt it would not work, Regular Meeting City Council June 14, 2004 Page 24 because if someone used most of their time for sick leave, that wouldn't leave them much vacation. Next, Councilman Bell, said they should look at limiting accrued vacation, because some people were not taking their vacation time and were accruing enormous amounts of time. Councilwoman Wilkerson wonder if there was a provision in the personnel policy that required an employee to take half their vacation time, no matter what, since the purpose of a vacation was to increase productivity by resting and getting away. Councilman Guest said the personnel policy was adopted in 1982. Councilman Guest said, currently, an employee accumulates 1 day of vacation for each month of employment and there is no limit on how much can be accumulated. He continued that if the employee has been with the city for ten (10) years, they accumulate a day and on-half per month. He also said that the employee may sell back 5 days of vacation time, if they have a least fifteen (15) days accumulated, which is sold back at a rate of 75% of their pay. Councilwoman Wilkerson wanted to know the maximum of vacation time that could be accrued in a year. Finance Director Anderson said at one(1) day a month, that would be twelve days a year in the first ten (10) years. He said, although the employee begins to accumulate vacation time from day one, he cannot take any vacation time until he has worked six (6) months, which would mean at the end of six (6) months, that employee would have accumulated six (6) days. Finance Director Anderson said that during the first ten (10) years, the employee accumulates 1 1/4 sick days per month, for a total of sixteen (16) days per calendar year with a maximum of 135 days total that can be accumulated. Mr. Anderson said this does not apply to Civil Service. Councilman Wilson asked if any salaried employees have taken time off and charged it to comp time. Mr. Anderson said that for salaried employees, there Regular Meeting City Council June 14, 2004 Page 25 is no reporting or accrual of comp time. He explained that someone could take off some time but not report it on their time sheet, and he would not be aware of it. But, he stated, if they tried to report comp time on their time sheet, that would not be allowed. City Attorney Schenk said when the issue of comp time came up with the Council, the salaried employees agreed to have comp time erased. City Attorney Schenk said the issue really was if the salaried employees are spending excessive hours in a given week, should they be able to leave and go somewhere for four (4) hours and not charge that to vacation. Interim City Manager Townsend said they had drafted a policy that will address that issue, which will be placed in the new personnel manual. Councilman Wilson voiced his concern if anyone has taken say three (3) or five (5) days off and not charged it to vacation. Mr. Anderson stated that all he knows that no one has reported multiple days off as comp time, but what would show up on the time sheet is nothing, that as far as he knew, it would be considered regular time, because he wouldn't have any way of knowing any different. Councilman Wilson suggested then that it was an honor system. Mr. Anderson concurred. Councilwoman Wilson said then there is no process in place for that, there is no accountability. Interim City Manager said hourly employees do accrue comp time and that is tracked, but for department heads there is no process. He indicated the new personnel policy was addressing this. Councilman Wilson asked if the hourly employees used time sheets, time clock or what to track their time. Finance Director Anderson said it is tracked on time sheets by department. He indicated this used to be done on paper until recently. They now have a computer program which tracks it and submits it electronically. He indicated there was still a paper time sheet that the department head signs to say he has reviewed it and the employee initials to say it is correct. Mayor Fendley asked could you pay hourly employees and not allow comp time. Mr. Anderson said there could be a no comp time policy allowed, but then for every hour over the forty hours, that would have to be time and one-half. Councilwoman Wilkerson asked if there was a cap on the Regular Meeting City Council June 14, 2004 Page 26 non-exempt employees as to how much overtime they can work. Mr. Anderson said that was controlled by the supervisor. Councilwoman Wilkerson asked what the average employee has accrued as of this day because of the lack of management of the policy of accruaL Mr. Anderson said he did not know. Councilman Wilson asked if that was provided for in the City's liability. Mr. Anderson said the City has to make a calculation at the end of the year what the estimated liability is based on the policy as it is written, which shows up in the audit report. Councilman Wilson asked if the sell-back didn't cost the City more than $220,000 last year. Mr. Anderson said that the sell-back cost the City more than normal because of all the discussion about eliminating sell back, which caused everybody to panic and sell back as much as they could. Councilman Wilson asked if that back was done by the exempt employees. Mr. Anderson said all employees are eligible to sell back, except Civil Service employees, who are under a different rule. Councilwoman Wilkerson asked if anyone ever thought about how much this out-dated policy costs this City. Mr. Anderson stated that the policy has limits as to what the City's liability is. He explained that if an employee left employment and has been employed with the City ten years or less, he can get paid a lump sum for twenty days vacation. He continued that if he had been employed long than ten years, he could get paid for thirty days. He noted that if someone leaves the employment of the City with sick leave, they don't get paid for any of it, other than those in Civil Service. Councilman Wilson asked if someone had a hundred days of vacation and they retired, quit or whatever, could they just take off those one hundred (100) days in a row. Mr. Anderson explained that would have to be okayed by the department head and in the case of a department head, that would have to be okayed by the City Manager. Councilwoman Wilkerson asked what if the Regular Meeting City Council June 14, 2004 Page 27 person who quits is the City Manager. Mr. Anderson reminded her the City Council has direct control of the City Manager. Councilman Bell related that one of the reasons they didn't need to accumulate so much was because when they near retirement people, are, in fact, doing just that, taking off excessive amounts of time. He continued that although the supervisor has the authority to say no, the noes have not come very often. He said they also needed to look at other time that is accumulated. Mr. Anderson said that employees are given an attendance holiday if they miss no time during the quarter, for any reason, they are given one (1) day per quarter. There was a consensus that the attendance holiday was a good idea. Councilwoman Wilkerson asked if there was a policy in the personnel guide addressing the age of retirement or the years of service to qualify for retirement. Mr. Anderson said, excluding Civil Service, that in the TMRS system, you can retire at any age with twenty (20) years of services or with five (5) years of service at age sixty (60). On a question about someone retiring at age fifty-five (55), Councilman Guest explained that under the current plan, the medical benefits are covered by the City until you are sixty-five (65) years old and the City's obligation goes away. Councilman Wilson wanted to know if someone retired at age forty (40), would they get full medical benefits paid for by the City until age sixty-five (65). Mr. Anderson said that is potentially correct. Mr. Wilson said he had a problem with that because it was a huge liability for the City. Mayor Fendley explained that the cost was absorbed in the medical costs for the City employees. Councilman Wilson asked if this person retired early but went to work somewhere else, would he still be on the City's insurance. Mr. Anderson said as the policy stands now, he would be, because there is probably no way to find out if he got another job or not. Mr. Anderson agreed that is an issue that needs to be addressed, but he wasn't sure how. He suggested possibly setting a minimum age when a person could stay on the City's insurance. Regular Meeting City Council June 14, 2004 Page 28 Mayor Fendley stated there were currently twenty-nine (29) retirees. Councilman Wilson asked how much their insurance was costing. Councilman Guest said around $132,000.00 for about 6% of the total insurance premium. Mayor Fendley said he didn't object to retirees being on the plan if they paid. Councilman Bell said that was just COBRA, which is only good for eighteen (18) months. Mr. Anderson said that most of the cities that he surveyed allowed the retirees to stay on the insurance plan with varying amounts of support, anywhere from partial to full cost. Councilman Bell said a very small percentage of those people surveyed in the nation pay for the retirees insurance fully, like the City is doing. Councilman Guest reminded the Council that some people have already made their decisions to retire on the assumption of the continuation of this plan and that this is one of the benefits they get for working at the City of Paris, and others have made their decisions and already retired based on this. He felt they needed to ask what is a fair treatment for those employees. He said there were options: to continue like they are doing and put a policy in place to prohibit it from happening in the future, scaling it back or just do nothing. Councilman Wilson said there were a whole lot of options and felt like it would take a whole lot of discussion. He felt like there should be a grandfather clause that gave people very near retiring a small period of time to make their decision before the change is made. Councilman Guest reminded them that not only did they have the current retirees to consider, but there were potentially 25 to 29 more eligible for retirement now, which would bring the City's liability to over $300,000.00. Mayor Fendley suggested weaning people off the plan, say they pay 20% this year, 30% on, but he felt they shouldn't continuing the plan for anyone who is not already on the plan. Councilwoman Wilkerson suggested to be fair, if there are employees who are going to retire by the end of the year, they would get to Regular Meeting City Council June 14, 2004 Page 29 remain on the plain, based on the percentages paid by the current retirees. Councilman Guest called the attention to an exhibit of Resolution No. 90-089, which states that insurance will make payment for health insurance for employees and retirees of the City of Paris from the date of retirement to the day they reach their 65th birthday. Councilman Wilson indicated that on a lot of this, they just received the information tonight. Councilman Bell said a part of this would be the new employee manual that Melba Harris is working on, since the old one was adopted in the 1980's and so much of it is totally out of date. Mayor Fendley said these things need to be addressed because they impact the budget. Councilman Guest said that this Council does not have the information on the car allowances that was presented to the other Council. He felt they needed to review that. Interim City Manager Townsend said he would get the information to the new Council members. Councilman Bell said that since Joe McCarthy was no longer on the Council, they needed a new person on the Benefit Sub-Committee. Mayor Fendley said he appointed Councilman Poston to be on the committee. Councilman Poston said that the City cannot continue to do this. He continued that insurance costs are sky rocketing everywhere and this must be dealt with. Mayor Fendley said he felt like these things should be dealt with in the next thirty days so the Council can move on with the budget. Councilwoman Wilkerson asked if the information about accrued sick time and vacation time was in the handouts. Mr. Anderson indicated that was in the Audit Report. Councilman Wilson felt the new Council members needed a copy of the 2003 Audited Budget. Councilman Poston asked for a copy of the current personnel manual for the Council to study. Mr. Anderson indicated it was in Regular Meeting City Council June 14, 2004 Page 30 the draft stage at this time. Councilman Poston asked for a copy of the old personnel policy. Interim City Manager Townsend said he could get a copy of the draft of the new personnel policy to the Council by next month's City Council meeting. Councilwoman Fisher asked if and when the amounts of time that can be accumulated changes, for those who already have accumulated excess time, will that be taken from them. Interim City Manager Townsend said that would have to be in the personnel policy and he thought that would not be taken from them. Mayor Fendley said that would be up to the Council. Councilwoman Wilkerson indicated she would say no to taking away what has already been accumulated because the decisions of past Councils are responsible for where the City is at and this Council is being charged with making things better. She felt they wouldn't be stripping employees of what they had already gained but will not be letting them continue to accumulate that much time. She felt they needed to put a policy in place that everyone could understand. Councilman Bell wanted to know since the finance department had converted to the GASB 34 reporting would that interfere with the Council's comparing last year's budget to this year's, line item by line item. Mr. Anderson replied it would not. He explained the GASB 34 is really reporting thing for bond holders and similar items. Mr. Bell said when trying to compare the audit with the budget, it just didn't match up. Mr. Anderson said it was a totally different format. Councilman Wilson indicated he had been getting telephone calls and he would like to put the issue of comp time to rest. He said, as he understood it, managers right now are under the direction of the City Manager. He felt that a policy needs to be made that if these salaried, exempt employees take off more than one (1) day, that they have to report to the City Manager and take that time Regular Meeting City Council June 14, 2004 Page 31 off as vacation time. Interim City Manager Townsend said that is pretty much what has been drafted in the new personnel policy. Finance Director Anderson explained that they could not dock a salaried employee for less than a day's time off, because that would make them an hourly employee subj ect to getting paid over-time, according to the Fair Labor Standards Act. Police Chief Karl Louis wanted the Council to realize what the impact of the cost of insurance would have on the retired employees if they had to pay full insurance. He said these employees had the expectation that would be paid and made retirement plans with that in mind. He asked if Mr. Anderson could generate what an average twenty (20) to thirty (30) year employee would get for retirement. Mr. Anderson said he could not, because it is a state system and he does not have access to the figures. City Attorney Schenk explained, under the FSLA regulation, if you charge an employee for a partial day, that immediately makes him an hourly employee. Mayor Fendley said there would be a report from the Benefits Sub-Committee after it meets again. He felt these issues should be resolved at the July meeting so the Council could get on with the budget and the personnel policy can be finished. He felt the discussion of these issues will include accrued vacation, accrued sick leave, retiree benefits, comp policy and employee participation on the health care. Councilman Wilson said at the last meeting, there was an issue of the entire fire department getting employee physicals at a cost of $1,000.00 per person and wanted to know if that had been authorized yet. He said he was concerned about the excessive cost of the physicaL Interim City Manager Townsend said he had the information on that. Councilman Wilson wanted to make sure that those Regular Meeting City Council June 14, 2004 Page 32 physicals would not be authorized until the Council saw the information. Mr. Townsend indicated that was correct. Mayor Fendley brought the Council's attention to the next item on the agenda, the 2003 Audit Report. Finance Director Anderson explained that was on the agenda because Councilman Bell had requested it be on the agenda in case any one had any questions about it. Councilman Bell said he did have questions but because of the length of this meeting, he requested that it be placed on the next agenda. Mayor Fendley asked if there were any future items the Council wanted to request to be placed on the agenda. Councilman Bell requested that the Council obtain the Agenda prior to its publication on Friday. He had learned from the City Attorney that there were some ramifications because before publication, it is a draft and not subject to Open Records, but Mr. Bell felt the Council was part of the City. Mayor Fendley said that would be placed on the agenda for the July 12th meeting. Councilman Bell said in his discussion with Chris Hartung, of Waters Consulting Group, it came out that there could be the potential of people not applying for the manager's job because their names will be made public. He wanted to know how they were going to address that issue, if they couldn't discuss this in a closed session. City Attorney Schenk explained that because of the Open Meetings Law, the names of the eligible candidates is a separate issue from the Council's ability to discuss those candidates. He continued that the problem of the Council having to discuss and interview potential candidates publicly is a Charter related issue, while the existence of potential candidates is a State Law issue. Mayor Fendley said Mr. Hartung was going to bring back five (5) or seven (7) potential prospects, by going through the process of getting thirty (30) to fifty (50) applications and narrowing it down to the seven (7). Mayor Fendley felt Regular Meeting City Council June 14, 2004 Page 33 those seven candidates wouldn't mind their names being in an Open meeting. Councilman Wilson wondered if the candidates couldn't have a number assigned to them, instead of their names, because the City doesn't just want applications from people out looking for a job, but would like some from people doing a good job and the city there with is happy with and the city would like to hire them away. Mayor Fendley said that could be placed as an agenda item. Councilman Wilson asked if the Charter could be changed. City Attorney Schenk indicated it could be but there would have to be an election to do that. He said that very change was tried some years ago and it failed. Councilman Wilson said that puts this city at an unfair advantage in doing business. Councilman Wilson indicated there were some policies, procedures and protocols that the city does that he felt the Council should discuss to see if the Council still agrees with those procedures. He said, for instance, there was piling trash and no one picking it up. He has pictures of a pile of trash that sat there for a month. He said the thought the procedure is if there is a pile of trash, but the house is vacant and there is no water meter, the trash would not be picked up. City Attorney Schenk said that would have to be a future agenda item, because items couldn't be just discussed, but would have to be an agenda item. Mayor Fendley reminded the Council of a resolution that if any Councilperson wanted to incur any expense in attending something in Lamar County, they would bring that before the Council. Councilwoman Wilkerson asked if an agenda for the City Council would have to be posted for the Town meeting set for June 19th. City Attorney Schenk said there would be an agenda posted. She questioned if there was not a quorum of the Council at the meeting, would they have to leave. City Attorney Schenk indicated they would not have to leave, but they couldn't make any decisions or participate in the discussion. Regular Meeting City Council June 14, 2004 Page 34 Councilman Bell said that, although the night's agenda was a huge pile of paper, it was easier to keep up with than the computer. Councilwoman Wilkerson question, in that case, why the Council voted to keep the computers. Councilman Wilson asked if they could vote on that again. City Attorney Schenk said not at this meeting. City Attorney Schenk presented the following petitions for referral to the Planning and Zoning Commission at their meeting in July: Christopher and Teresa Lancaster, Lot 21, Block 3, Anita Park Addition, 1735 Cleveland from a Two-Family Dwelling District (217) to a Neighborhood Service District (NS) and Steve Raney, Raney Day Enterprises, Lot l, Block 208, 2303 West Kaufman, from a One-Family Dwelling District No. 2 to a Multiple Family Dwelling District One. There being no further business, the meeting adjourned. CURTIS FENDLEY, MAYOR ATTEST: SHERIAN DIXON, ASST. CITY CLERK Regular Meeting City Council June 14, 2004 Page 35