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05.Council Minutes CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 02/23/2012 Council Date: City Clerk Janice Ellis 5. 02/27/2012 RECOMMENDED MOTION: Motion to approve as presented. POLICY ISSUE(S): Approval of Official Record of Council. BACKGROUND: Council Minutes from the meetings of January 23, 2012; January 27, 2012; and February 6, 2012. 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 REGULAR CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS January 23, 2012 The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday, January 23, 2012, at the City Council Chamber, 107 E. Kaufinan, Paris, Texas. Present: Mayor: A.J. Hashmi Council Members: Joe McCarthy; Robert Avila; John Wright; Richard Grossnickle; Matt Frierson; and Edwin Pickle City Staff: Gene Anderson, Interim City Manager/Finance Director; Kent McIlyar, City Attorney; Janice Ellis, City Clerk; Shawn Napier, City Engineer; Bob Hundley, Police Chief, Ronnie Grooms, Fire Chief, Ron Sullivan, Public Works Director; Kent Klinkerman, EMS Director; and Priscilla McAnally, Library Director Opening Agenda 1. Call meeting to order. Mayor Hashmi called the meeting to order at 5:30 p.m. 2. Invocation. Pastor John Kelley gave the invocation. 3. Pledge of Allegiance. Council Member Grossnickle led the pledge. 4. Citizens' forum. Mayor Hashmi - he said an unfortunate incident happened last week in the city and one of the dilapidated structures fell down. He said that he met with Mr. Anderson and Mr. McIlyar and an investigation would be conducted. Mayor Hashmi stated that he would like to form a committee made up of Council Members Grossnickle, Wright and Avila, several members of the Building and Standards Commissions, Mr. McIlyar and Mr. Anderson. He said he wants the concerns of citizens to be alleviated and determine what action needs to be taken in order to avoid those same types of incidents in the future. l ~ v Regular Council Meeting January 23, 2012 Page 2 Josh Bray - spoke on behalf of B. Bray Construction Company. He said that B Bray recently bid on the water and wastewater capital improvement project and it was on the agenda. He said they were the low bidder of the base bid by about $10,000. However, there was a deductive alternate that the second place bidder was actually $16,000 lower than B. Bray. He said if the deductive alternate option was taken, then that would place B. Bray's bid $5,700 higher than an out of town bidder. Mr. Bray said he hopef that the Council might do something like Houston recently did, which was implement what is called "Hire Houston First." Don Wilson, 3110 Stacy - he said that he was the chairman of the Building and Standards Commission. He said what Mayor Hashmi indicated was going to happen, which is what he had planned to ask, Mr. Wilson thanked Mayor Hashmi. Consent Agenda Mayor Hashmi inquired of Council Members if they wished to pull any items from the Consent Agenda for discussion. Council Member Pickle said he would like to discuss item 7. He inquired about the status of LaQuinta's delinquent hotel/motel taxes. Mr. Anderson said the City Attorney had sent a demand letter to LaQuinta with a deadline of January 31 S` to get current. Council Member Pickle asked for a report on this matter at the next meeting. Council Member Pickle cautioned department heads to watch their budgets in regard to overtime. He reminded City Staff that during budget time, City Council scrutinized over this item. A Motion to approve the Consent Agenda was made by Council Member Wright and seconded by Council Member Frierson. The Council voted six (6) 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 January 9, 2012. 6. Receive and deliberate on reports and/or minutes from the following boards, commissions, and committees: a. Planning and Zoning minutes (12-5-2011) b. Paris Economic Development Corporation (12-13-2011; 12-20-2011) 7. Deliberate on December monthly financial report. 8. Deliberate on December drainage ditch maintenance report. Regular Agenda 9. Report and deliberate on dilapidated structures in the City of Paris. Mr. Anderson explained the process substandard structures, including identification, notification to property owners, publication of notices, review by Historic Preservation Regular Council Meeting January 23, 2012 Page 3 Commission, review by the Building and Standards Commission, response from property owners and publication of Building and Standard Commission orders. Mr. Anderson reported that 301 Bonham Street was presented to the Historical Preservation Commission on August 23, 2010 and also again on September 8, 2010. After the September Bch meeting, it was forwarded to the Building and Standards Commission for its consideration on September 20, 2010. At that time, the Commission gave the owners ninety days to repair or demolish the structure. On December 20, 2010, the ninety days expired and after that deadline code enforcement contacted the owners about their plans for the building. The owner stated at that time that he could not afford to demolish or repair the building and also stated that he had been contact with Cecil Fambrough of the Texas Department of Health and that the building contained asbestos. The owner said this fact prohibited him personally from attempting any type of cleanup and that Mr. Fambrough told him that only a licensed asbestos handler could abate the structure. Sometime after that the owner contacted Jack Morrow of TASCO Abatement to get an estimate on removal of the asbestos, who told him that the N.E.S.H.A.P. method could not be used. Code enforcement again met with the owner to find out what he was going to do about the abatement and at that point, the owner told code enforcement that he would be willing to sell the building because he could not afford to demolish or repair the building. Code enforcement passed that information on to the Main Street Director and she inquired of other downtown property owners if they would be interested in purchasing the building. No one was interested in purchasing the property in its current state. Code enforcement was instructed to get an estimate of what it would cost to clean up the property and they were given a rough bid in the amount of $72,000 in May of 2011. In August 2011 the Texas Supreme Court ruled in a case Stewart v. The City of Dallas that city boards like the City's Building and Standards Commission were not a proper authority for the condemnation and demolition of private property. Mr. Anderson said that City Attorney Kent McIlyar informed code enforcement that it they should put a hold on any demolition orders already sent to contractors by the Building and Standards Commission. On January 16, 2012 the building on Bonham Street collapsed and at that point, the City crews were called in to remove the debris out of the street and back up to the property, and to secure the property and protect the public interest. The Texas Department of Health was contacted and they provided the City an emergency declaration number, which would allow the City to take swifter action in abating that building and demolishing that building, essentially by-passing the usual permitting requirements and timeframe. There was a deadline to take that action and that deadline was January 23rd. Mr. Anderson reported that he reviewed the financial records for 2010-2011 and it revealed that the budget for structure demolition was $80,000. Mr. Anderson reported that as of December 20, 2010, the City had spent $44,200.30 of that budget leaving a balance in that account of $35,769. Mr. Anderson also said there was additional money in the amount of $75,000 in an account for the related sanitation fees and if the two funds had been combined there would have been enough money to demolish that building. He said that would have severely depleted the City's funds for any other needed demolitions that were already scheduled. Street was in immediate danger of collapse. Mr. Anderson said the City had been active in addressing the problem of dilapidated structures in recent years, in that in the last five years the City had torn down 303 structures, including Casa Bonita and Three Oaks and spent one million five-hundred twenty-thousand dollars in accomplishing those demolitions. He said the City should have secured the Bonham 4 Regular Council Meeting January 23, 2012 Page 4 Street location. After the collapse of that building, Mr. Anderson instructed code enforcement to do a visual survey of the downtown area to determine if there were any other hazards that could potentially be a public safety issue and that those locations had warning tape placed on them and barricaded. Mr. Anderson said that an appropriate reprimand would be issued for prior failure to action. He said that instructions had also been given to conduct Building and Standards Commission meetings on a monthly basis, because the Commission was beneficial to the City. Mr. Anderson said the City was going to investigate the possibility of performing some demolition work itself as a cost savings measure. Mr. Anderson said the City Attorney would update the City Council on what legal means were currently available for the City to deal with dilapidated structures and that the City Attorney would be attending the next Building and Standards Commission meeting to give them an update. Mayor Hashmi inquired if there were any questions. Mr. Anderson answered questions from several Council Members. Mayor Hashmi asked Don Wilson if he had any comments. Mr. Wilson said the Building and Standards Commission was concerned that historically there had not been enough follow-up. He said if the Commission issued an order to demolish or repair a building that it should not be the Staff's decision to decide whether or not the owner had enough money to do it and that the owner should be forced to do something. Mayor Hashmi suggested in the future a complaint of this nature be filed with the department head and/or the City Manager. Mr. Wilson said after the Commission makes a recommendation and nothing happens, that he would like for the Commission to come back and report to the City Council what was and was not done. Mayor Hashmi said he agreed but hoped that after the Commission met, that the work would be completed. Council Member McCarthy arrived at 6:08 p.m. As reported in a briefing earlier in September, City Attorney Kent McIlyar said that the Texas Supreme Court ruled on a Building and Standards Commission case out of the City of Dallas. He said that the City of Dallas Commission was similar to the City of Paris Building and Standards Commission, in that they were based upon the same State Law. Mr. McIlyar stated that the Court in the Dallas case changed thirty, forty, fifty years of jurisprudence in the State of Texas and up until this summer, cities were given the authority under State Law to create Buildings and Standards Commissions, appoint members and have those Commissions determine based upon the evidence presented at their hearings, whether or not structures on property were a public nuisance. In the event that they found that these structures were dangerous or hazardous to the public, they were allowed by State Law to issue a demolition order requiring demolition of the property. If the structure was not demolished by the property owner as often the case, it gave the City the right to tear it down and assess a lien against the property for the costs of demolition. Mr. McIlyar said that had been the legal process for thirty, forty, fifty years. Mr. McIlyar said the City of Dallas case involved a residential structure that had been abandoned for ten years and had a fallen tree on top of it. He told Council that the case in Dallas went through the City of Dallas' Building and Standards Commission and they ordered it demolished. Mr. McIlyar said the Texas Supreme Court in a 5-4 decision held that only a judicial court independent of the City of Dallas was allowed to determine whether or not a property was a public nuisance and may be demolished by the City. The Court further ruled that 5 Regular Council Meeting January 23, 2012 Page 5 taking of a private property was in violation of the Texas Constitution, even though it was dilapidated and a hazardous property. Unless an independent court that has never heard or seen the case hears it and makes a determination, the ruling would be in violation of the Texas Constitution and Texas State Law. Mr. McIlyar clarified that he had never instructed the Building and Standards Commission to stop conducting meetings or hearings, as the Commission performed other functions that were beneficial to the City, other than issuance of demolition orders. Mr. McIlyar answered questions from City Council regarding filing suit in County and District Courts, obtaining judgments against property owners and execution of same. Council Member Pickle said he thought if the City got several judgments against property owners, he thought in the future people would start taking care of their business. Council Member Frierson inquired if these property owners were being fined for non-compliance. Mr. Anderson said he was not aware of any fines being collected. Mr. Anderson said that the Committee appointed by the Mayor was going to look at all of the issues and develop a plan. Council Member Pickle said he would like to a see monthly report on the properties similar to the monthly ditch maintenance report. 10. Mayor's Report on road improvements in the City of Paris. Mayor Hashmi said he was allotted the task of road improvements and that he had a brief report and suggestions. He said his objective was to educate everyone in future planning needs of the City as related to roadways and infrastructure. He said a large amount of money must be allocated for improvements, so it was doubtful they would be able to do everything at one time. Mayor Hashmi said there was about 325 miles of roads in the City of Paris. He gave the history of the roads being constructed first as dirt and gravel, later brick, then to concrete and finally asphalt. He also said most of the infrastructure especially in the older parts of town was laid under the roads and under dwellings with no concept of right-of-ways. Mayor Hashmi said to progress it would require a systematic evaluation and analysis, specifically one needs to have historical findings; look at the infrastructure as economic development; select products and lines based on the economy; determine the timing to undertake and complete the objectives; periodically review the progress and successes. He said from 1994 to 1998, money was allocated for street overlay that was done from bond money and since then there had been no allocation of funds for similar expenses. Mayor Hashmi said a more serious problem was the rapidly deteriorating underground water and sewer pipes, some of which were put in place fifty, sixty or even one-hundred years ago. He proposed that the City begin using a portion of the economic development money each year for repair and replacement of infrastructure, because without infrastructure there would be no economic development. Mayor Hashmi said maintaining city streets included hot oil chip seal, emulsion type sealing and asphalt overlay. He said the asphalt overlay was the best product, longest lasting, reduced traffic noise, lowest maintenance cost, had the ability to take heavy loads and required no bidding, because it could be included in the contract used by the County and TxDOT, but it was the most expensive, required outside contractors and frequently required ground preparation. Mayor Hashmi said the hot oil chip seal cost less, good for resurfacing as part of a regular maintenance program, it sealed cracks on old roadways, roads could be opened rather quickly after application and Regular Council Meeting January 23, 2012 Page 6 equipment needed was commonly available in most areas, but only lasted four to five years, it required constant attention during application, there was chip loss, and that City Staff lacked the training for this application. Mr. Sullivan said the City had switched to the emulsion type seal coat because of safety issues. Mayor Hashmi also reported on the maintenance and replacement costs of curb, gutter and driveways. Mayor Hashmi said they should begin to budget the necessary funds and explore out-of-box ideals to obtain what needed to be done. He said his recommendation was to begin a study of the City's infrastructure needs. Mayor Hashmi asked District Judge Clifford to speak about this item, because he served as Mayor of the City of Paris around 1998. Judge Clifford said something should be allocated for asphalt overlay. Judge Clifford also said that the TxDOT District Office went out for bids every year or every two years for a per ton laid asphalt overlay and that the City would not have to bid a project, but instead call that contractor and tell the contractor they want the State of Texas price. Mayor Hashmi asked for questions or comments. Council Member Pickle asked how it was going to be paid for and then added if the tax base was raised by one penny, that for every penny raised it would only generate $145,987.00. Mayor Hashmi said they need to at least start the process and that everything could not be done at once, because of the expense. Mayor Hashmi said he wanted to explore the ideal of using PEDC funds for infrastructure, because he thought PEDC had contributed funds to widening Highway 19/24 in another county. Gene Anderson said Staff would check into it. Council Member Pickle asked if Gene if he would check into the possibility of funding these improvements if the PEDC became a 4B Corporation. Council Member Pickle said 4B was not as limiting as a 4A Corporation and that more and more cities were moving toward the 4B designation. 11. Deliberate on future amendments to the City of Paris Charter. Mayor Hashmi suggested they seek amendments to the City Charter to assure that future City Council budgets each year include funds for infrastructure improvements. Mayor Hashmi said that any proposed Charter Amendments should be discussed for a full year, so that citizens understood any proposed amendments. Mayor Hashmi said he would like to review the sections dealing with initiative and referendum petitions. Council Member Grossnickle agreed with Mayor Hashmi. It was a consensus of the City Council to place this item on the Agenda on a monthly basis. 12. Second reading, deliberate and act on ORDINANCE NO. 2012-002: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING ARTICLE I OF CHAPTER TWO OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS, BY AMENDING SECTION 2-1, RULES OF ORDER FOR CITY COUNCIL MEETINGS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. City Attorney Kent McIlyar told the City Council that their requested changes to the Ordinance had been made. Regular Council Meeting January 23, 2012 Page 7 A Motion to approve this item was made by Council Member Grossnickle and seconded by Council Member Pickle. Motion carried, 7 ayes - 0 nays. 13. Deliberate and provide direction to staff on a petition for disannexation of approximately 386 acres of land located in an area East of U.S. 271 North, North of NLISD property and West of Stillhouse Road, forming a portion of the current outer boundaries of the city limits of the City of Paris. Mayor Hashrni said that he wished to be recused, because some of the people involved in this request were friends of his. A Motion to recuse Mayor Hashmi was made by Council Member Grossnickle and seconded by Council Member Avila. Motion carried, 7 ayes - 0 nays. Mayor Hashmi left the room. Mayor Pro-Tem Grossnickle asked if anyone who wished to speak in support of this proposed disannexation, to please come forward. Robert Zimmerman said he lived in the area of the proposed disannexation and that the property was annexed thirteen years ago and that there had been no indication that services were ever to be provided. Dr. Zimmerman also said that the fire and police departments did not know that this property was in the City and had denied services. He said this disannexation was warranted for lack of services and denial of services. Mayor Pro-Tem Grossnickle asked City Engineer Shawn Napier to clarify the City's position on this disannexation. Mr. Napier said the request submitted was not signed by all of the property owners, citing Sterling House nor Christian Fellowship Church signed the petition. Mr. Napier explained that he had been in contact with Chief Hundley who had put a request into the COG to find out where the areas were tagged in respect to police and fire districts. Mr. Napier said part of the problem was that they did not have good addresses on the properties, so they could not identify who was responding to some of the areas. He also said that some of the other addresses definitely had services, such as Sterling House Nursing Home and the Fellowship Church. Mr. Napier said this area was annexed by the City of Paris prior to September 1, 1999, the date the State Legislature passed new annexation laws requiring municipalities to prepare service plans and commit to full infrastructure development in the annexed area within a 2.5 year period. Mr. Napier also said that the City had provided municipal services to the area, such as water and sewer services as they developed Police, Fire and EMS services to the entire annexed area since April 26, 1999, the date of annexation. He provided information related to market value and taxes paid. Mr. Napier recommended if acting on the entire acreage, that Staff recommended the entire area, developed and undeveloped acreage remain inside the City limits. He said when developed, these areas would have a significant impact on the City's tax base and added that if the areas were disannexed, the City would have no control over zoning and construction in the areas. Council Member Pickle said he opposed the disannexation. When Mayor Pro-Tem asked City Council how they wanted City Staff to proceed, the City Council did not act on this item. A Motion to return Mayor Hashmi was made by Council Member Pickle and seconded by Council Member Grossnickle. Motion carried, 6 ayes - 0 nays. Regular Council Meeting January 23, 2012 Page 8 Mayor Hashmi recessed City Council at 7:26 p.m. and reconvened City Council into open session at 7:38 p.m. 14. Deliberate and act on RESOLUTION NO. 2012-005: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; ACCEPTING THE REPLACEMENT OF DR. EDUARDO WILKINSON AS MEDICAL DIRECTOR OF THE EMERGENCY MEDICAL SERVICE OF THE CITY OF PARIS; APPOINTING DR. SHARON MALONE TO SERVE AS MEDICAL DIRECTOR FOR THE EMERGENCY MEDICAL SERVICE OF THE CITY OF PARIS; APPROVING AND AUTHORIZING THE EXECUTION OF AN EMS MEDICAL CONTROL AGREEMENT WITH DR. SHARON MALONE; MAKING OTHER FINDINGS AND PROVISIONS RELATED OT THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. EMS Director Kent Klinkennan said Dr. Eduardo Wilkinson had served as the EMS Medical Director since 2008 and had recently opened a medical practice in Richardson. Mr. Klinkennan said that Dr. Wilkinson was no longer able to meet the contract requirements and asked that Dr. Malone be appointed to serve as the EMS Medical Director. He said that Dr. Malone was the Medical Director for the PJC EMS Program and was in Paris on a regular basis. A Motion to approve this item was made by Council Member McCarthy and seconded by Council Member Avila. Motion carried, 7 ayes - 0 nays. 15. Deliberate and act on a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING AN AGREEMENT WITH MHS PLANNING & DESIGN FOR THE DEVELOPMENT OF A MASTER PLAN FOR BYWATERS PARK; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Public Works Director Ron Sullivan said that staff was asked to prepare a master plan for Bywaters Park and due to the fact that the park was a high profile facility, he was asking that the City be given authority to contract with for professional services with MHS Planning and Design for development of a master plan for Bywaters Park in the amount of $12,950.00. Mayor Hashmi was not in favor of hiring a consultant but instead favored contacting KPB, Master Gardeners and other civic groups for their assistance with this project. Council Members Pickle, Frierson, Wright and Avila agreed with Mayor Hashmi. Council Member Grossnickle asked Sally Wright about the use of the park. Mrs. Wright said the park was used for movies in the park, weddings, and concerts and was used by the Library. A Motion to deny the hiring of a consultant was made by Council Member McCarthy and seconded by Council Member Wright. Motion carried, 7 ayes - 0 nays. 16. Deliberate and act on a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ACCEPTING THE BID AND AWARDING THE CONTRACT FOR THE 2011-2012 WATER AND WASTEWATER CAPITAL IMPROVEMENTS IN THE CITY OF PARIS TO FOUR THIRTEEN, INC., THE LOWEST RESPONSIBLE 9 Regular Council Meeting January 23, 2012 Page 9 BIDDER; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. City Engineer Shawn Napier said the City of Paris opened five bids on January 12`h and that Hayter Engineering put the plans and specifications together for the City. Mr. Napier said it did not look like there was going to be enough money to do all three projects, so Public Works was asked to prioritize the three projects and they did so, which included the third project as a deduct alternate. Mr. Napier said there wasn't enough money so the third prioritized project was taken out, which was Dixon Street and I Ith N.W. He told Council the remaining projects were to replace sewer lines at 15th and 16`h N.E. and a water line on Sherman Street for two areas. Mr. Napier stated Four Thirteen was based in Texarkana, but bid the project as the prime contractor with the majority of the work to be done by S&S Boring, a local company. He also said in either case, whether the contract was awarded to Barney Bray Construction or S&S , the majority of the money would stay local. Mr. Napier said the base bid was won by B. Bray Construction, but after you take the deduct alternate out, the lowest bidder was Four Thirteen Incorporated. Council Member Grossnickle inquired of Josh Bray if there were other companies capable of doing the boring work. Mr. Bray said Bray Construction currently did all boring in house with their own crew. Mr. Napier said S&S Boring was the construction name and that all of the construction companies were capable of doing the work. Council Member Wright said he would like to move it to a local concern, because of the closeness of the bid and because of their participation with the City in other endeavors. Council Member Wright said they gave the City money for demolition and they gave the City $5,000.00 for undesignated purposes. Council Member Pickle asked if the $57,277 spent to date included payment for the engineer on this project. Mr. Napier said some of it was for engineering fees and some was for smaller items purchased throughout the year on this project. Council Member Pickle questioned the way it was bid asking if it would have been better to have first bid the piece meal then the entire project as opposed to the way it was bid. Mr. Napier explained that one job was already pulled out and it was cheaper spending money through Hayter, bidding it the way it was bid than to completely change it up and take Dixon Street out altogether. Council Member Avila wanted to know how long it would take to complete the project and Mr. Napier said it would be about 160 days. Council Member Frierson asked about access to the bids. Mr. Napier said he would provide them and apologized for the bids not being in their Agenda packets. Council Member Frierson asked about the percentage difference between the two bids and Council Member Pickle said it was 1.271% difference. Council Member Grossnickle inquired about the dollar difference and Mr. Napier said it was $5,700.00. A Motion to award it to B. Bray Construction was made by Council Member Pickle and seconded by Council Member Wright. Motion carried, 7 ayes - 0 nays. 17. Deliberate and act on a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ACKNOWLEDGING AND APPROVING A SUBORDINATION AGREEMENT ATTACHED HERETO AS EXHIBIT "A" AND SUBORDINATING THE CITY'S 2008 NOTE WITH KENNETH WHITE D/B/A WHITE'S FLOORING TO THE AMENDED LOAN AGREEMENT BETWEEN LAMAR NATIONAL BANK 1 1 Regular Council Meeting January 23, 2012 Page 10 AND KENNETH WHITE; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. Interim City Manager Gene Anderson explained that the City of Paris received a rural business enterprise grant in 2008 and part of the grant was awarded in the form of a low interest loan to Kenneth White that was executed in conjunction with a loan to Mr. White made by Lamar National Bank. Mr. Anderson said the loans were in the amount of $60,000.00 each and were used for the purchase of a building and expansion of Mr. White's business. He also said that under the program the City's loan held a second lien to the Lamar National Bank loan and that Mr. White had been making timely payment on both loans. He said the current balances of the loans were approximately $51,000.00 and $49,000.00 respectively. Mr. Anderson also said that Lamar National was proposing to loan Mr. White an additional $30,000.00 for his business and as the second lien holder, the City must agree to loan and agree to accept second lien position to the additional loan amount. A Motion to deny this item was made by Council Member Pickle and seconded by Council Member Wright. Motion carried, 6 ayes - I nay, with Council Member McCarthy casting the dissenting vote. 18. 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 conflict with this chapter. Mayor Hashmi convened City Council into Executive Session at 8:15 p.m. 19. Reconvene into open session and possibly take action on those matters discussed in Executive Session. Mayor Hashmi reconvened City Council into open session at 8:23 p.m. A Motion to reconsider item 16 was made by Council Member Pickle and seconded by Council Member McCarthy. A Motion to table item 16 until the next council meeting and at such time that the City Attorney had an opportunity to further research the issue. The Motion was seconded by Council Member McCarthy. Motion carried, 7 ayes - 0 nays. 20. Consider and approve future events for City Council and/or City Staff pursuant to Resolution No. 2004-081. None were referenced. Regular Council Meeting January 23, 2012 Page 11 21. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Pickle and was seconded by Council Member McCarthy. Motion carried, 7 ayes - 0 nays. The meeting was adjourned at 8:24 p.m. A.J. HASHMI, MAYOR JANICE ELLIS, CITY CLERK 12 MINUTES OF THE SPECIAL CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS January 27, 2012 The City Council of the City of Paris met for a special session at 5:30 p.m. on Friday, January 27, 2012, at the City Council Chamber, 107 E. Kaufman, Paris, Texas. Present: Presiding Council Member: Edwin Pickle Council Members: Joe McCarthy; Robert Avila; John Wright; Matt Frierson City Staff. Gene Anderson, Interim City Manager/Finance Director; Kent McIlyar, City Attorney; and Janice Ellis, City Clerk Absent: Mayor: A.J. Hashmi Mayor Pro-Tem Richard Grossnickle Opening Agenda 1. Call meeting to order. With Mayor Hashmi and Mayor Pro-Tern Grossnickle both being absent, it was a consensus of City Council to have Council Member Pickle preside over the meeting. Council Member Pickle called the meeting to order at 5:30 p.m. Regular Agenda 2. Deliberate and act on RESOLUTION NO. 2012-006: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ACKNOWLEDGING AND APPROVING A SUBORDINATION AGREEMENT ATTACHED HERETO AS EXHIBIT "A" AND SUBORDINATING THE CITY'S 2008 NOTE WITH KENNETH WHITE D/B/A WHITE'S FLOORING TO THE AMENDED LOAN AGREEMENT BETWEEN LAMAR NATIONAL BANK AND KENNETH WHITE; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. Council Member Pickle said that Kenneth White had been to see him in order to discuss this matter. Council Member Pickle said after discussing this matter with Mr. White, that he discussed it with Mr. Severson at the bank to learn that in order for Mr. White to grow his business he needed to get this approved. Council Member Pickle 13 Special Council Meeting January 27, 2012 Page 2 stated that Mr. White had made improvements in the amount of $30,000.00 and that if Council approved this item, the City's payments would remain the same. A Motion to approve this item was made by Council Member Pickle and seconded by Council Member McCarthy. Motion carried, 4 ayes - 1 nay, with Council Member Wright casting the dissenting vote. 3. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Frierson and was seconded by Council Member Pickle. Motion carried, 5 ayes - 0 nays. The meeting was adjourned at 5:35 p.m. EDWIN PICKLE, PRESIDING OFFICER JANICE ELLIS, CITY CLERK MINUTES OF THE SPECIAL CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS February 6, 2012 The City Council of the City of Paris met for a special session at 5:30 p.m. on Monday, February 6, 2012, at the City Council Chamber Conference Room, 107 E. Kaufman, Paris, Texas. Present: Mayor: A.J. Hashmi Council Members: Joe McCarthy; Robert Avila; John Wright; Richard Grossnickle; Matt Frierson; and Edwin Pickle City Staff: Gene Anderson, Interim City Manager/Finance Director; Kent McIlyar, City Attorney; and Janice Ellis, City Clerk 1. Call meeting to order. Mayor Hashmi called the meeting to order at 5:30 p.m. 2. Convene into Executive Session pursuant to Section 551.074 of the Texas Government Code, to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee as follows: review applications for the position of City Manager. Mayor Hashmi convened City Council into Executive Session at 5:30 p.m. 3. Reconvene into open session, deliberate and possibly take action on those matters discussed in Executive Session. Mayor Hashmi reconvened City Council into open session at 6:18 p.m. Mayor Hashmi said that the City Council had briefly discussed 34 applicants and that some of the persons were employed and some were not. He also said that the Council would be receiving applications and resumes of approximately ten candidates, and they would discuss them at the February 13`" meeting. 15 Special Council Meeting February 6, 2012 Page 2 4. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Pickle and was seconded by Council Member Frierson. Motion carried, 7 ayes - 0 nays. The meeting was adjourned at 6:20 p.m. A.J. HASHMI, MAYOR JANICE ELLIS, CITY CLERK