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05-APPROVAL OF OFFICIAL RECORD OF AUGUST COUNCIL MEETINGSCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 09/OS/2012 Council Date: City Clerk Janice Ellis 5• 09/ 10/2012 RECOMMENDED MOTION: Motion to approve as presented. POLICY ISSUE(S): Approval of Official Record of Council. BACKGROUND: Council Minutes from the meetings of August 13, 2012; August 22, 2012; and August 27, 2012. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: The attached minutes from the meetings ACTION: F~ Financial Report Z Mil ❑ Department Report ❑ Re<. F~ Presentation ❑ Ori ❑ Public Hearing ❑ Otl FISCAL NOTES: BUDGET INFO: iute Order Expense $ ,olution Budgeted Amt. $ iinance y'I'D Actual $ ier Acct. Name Acct. Number itevisecl l/u4iv5 City of Paris MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS August 13, 2012 The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday, August 13, 2012, at the City Council Chamber, 107 E. Kaufman, Paris, Texas. Present: Mayor: A.J. Hashmi Council Members: Aaron Jenkins; Billie Lancaster; John Wright; Richard Grossnickle; Matt Frierson; and Cleonne Drake City Staf£ John Godwin, City Manager; Kent McIlyar, City Attorney; Janice Ellis, City Clerk; Shawn Napier, City Engineer; Bob Hundley, Police Chief; Ronnie Grooms, Fire Chief; Gene Anderson, Finance Director; Ron Sullivan, Public Works Director; and Kent Klinkerman, EMS Director Oqenint! Agenda 1. Call meeting to order. Mayor Hashmi called the meeting to order at 5:30 p.m. 2. Invocation. Dr. Tommy Turner gave the invocation. 3. Pledge of Allegiance. Council Member Grossnickle led the pledge. 4. Citizens' forum. Bill Flanary, 1116 Lamar Ave. - he said he was at the meeting on behalf of his clients, Mr. and Mrs. Roger Stripland. Mr. Flanary said Mr. Godwin issued a public apology following up with a handwritten note. He said Mr. Anderson had not issued a public apology to his clients and had sent them a typed note. Mr. Flanary said he wanted to know the results of the investigation, any action taken, that he was at the meeting anticipating a public apology from Mr. Anderson, and that they were requesting new lines be put in and a sewage connection on the property as a permanent solution. _ _ 1 ~ Regular Council Meeting August 13, 2012 Page 2 Maralene Rose, 2710 W. Brame - she thanked the public works for a good job with regard to sanitation. She said she worked for the City for forty years and asked that the Council reinstate the cost of living adjustment for retirees that was discontinued in 2008. Charles Whitley, 735 381h SE - he said he retired in 1990 and asked that the Council reinstate the cost of living adjustment for retirees. Tommy Haynes, 3095 Abbott - he said he retired in 2004 and asked that the Council reinstate the COLA to 100%. T.K. Haynes, 650 31S` Street - he said he worked in the legal department for over thirty years and was also requesting that the COLA for retirees be reinstated to 100%. Deanna Manning, 2965 Cypress - she said she worked for the City for over twenty-nine years and would also like to see the COLA reinstated for retirees. Stephen Holmes, 535 NE 33rd - he said he was employed for twenty-six years at the police department and the cost of living had gone up, that health insurance and cost of living benefits were cut. He said he would like to see the COLA reinstated for retirees. Marlene Hutchings, 2975 Hubbard - he said she warked in water billing for twenty-five years and would like to see the COLA reinstated for retirees. Wanda Tharp, 1880 E. Washington - she said that she worked in water billing for twenty-five years and agreed with the other retirees. Mel Rose - he said he retired in 1997 and asked that COLA be reinstated for retirees. Joe Julian, 545 Wilburn - he said he worked thirty years in the police department and along with the other retirees, asked that the COLA be reinstated. Gary Ballew, 777 Bonham - he said he was the new director of New Hope Center, formerly Models of the Maker. He said the agreement with the City was that they use the funds allocated for only capital improvements at the group's facility. Mr. Ballew asked that the City Council approve the Center using the funds for whatever was needed, such as maintenance or operating costs. 5. Public Announcements. a. Proclamation declaring the month of August 811 Safe Digging Month. Mayor Hashmi declared the month of August 811 as Safe Digging Month and presented Atmos representative Janette Moser with a proclamation. 2 Regular Council Meeting August 13, 2012 Page 3 Consent Ap-enda Mayor Hashmi inquired of Council Members if they wished to pull any items from the Consent Agenda for discussion. Council Member Wright asked that the minutes from July 9, 2012 be amended to reflect the word "illegal" was used by Mr. Godwin and Mr. Anderson. Mayor Hashmi inquired as to the tardiness of the committee minutes. The City Clerk replied some of the boards do not meet every month and she would get with the staff liaisons with regard to the other committee minutes. With the exception of the minutes of July 9, 2012, a Motion to approve the Consent Agenda was made by Council Member Frierson and seconded by Council Member Grossnickle. Motion carried, 7 ayes - 0 nays. 6. Deliberate and act on the approval of minutes from the meetings on July 9, 2012 (corrected) and July 23, 2012. 7. Receive and deliberate on reports and/or minutes from the following boards, commissions, and committees: a. Board ofAdjustment (12-6-2011) b. Main Street Advisory Board (5-15-2012 and 6-19-2012) c. Paris-Lamar County Board of Health (7-10-2012) d. Building and Standards Commission (6-18-2012) 8. Discuss and act on RESOLUTION NO. 2012-069: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT WITH PARIS INDEPENDENT SCHOOL DISTRICT FOR PROVISION OF SCHOOL RESOURCE OFFICER SERVICES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. 9. Discuss and act on RESOLUTION NO. 2012-070: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT WITH NORTH LAMAR INDEPENDENT SCHOOL DISTRICT FOR PROVISION OF SCHOOL RESOURCE OFFICER SERVICES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. 10. Discuss and act on bids for chemicals to be used at the Water and Wastewater Treatment Plants. 11. Discuss and act on RESOLUTION NO. 2012-071: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ACKNOWLEDGING FORMAL RECEIPT OF THE 2012 CERTIFIED APPRAISAL ROLL FOR TAX APPRAISAL PURPOSES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTNE DATE. 3 Regular Council Meeting August 13, 2012 Page 4 12. Discuss and act on RESOLUTION NO. 2012-072: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING THE CITY TO BECOME ELIGIBLE TO PARTICIPATE 1N TAX ABATEMENT AND APPROVING GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENTS iN THE CITY OF PARIS, TEXAS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Regular Agenda 13. Convene into Executive Session: a. Pursuant to Section 551.087 of the Texas Government Code, (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in ar near territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1). b. Pursuant to Section 551.072 of the Texas Government Code, to discuss the purchase, exchange, lease, or value of real property. c. 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: • Cause No. 81339, City of Paris v. 911 Restoration, Inc.; 6`h Judicial District Court, Lamar County, Texas • Ranger Abbott, 125 41 s` SW Mayor Hashmi convened City Council into executive session at 6:01 p.m. and reconvened City Council into open session at 6:54 p.m. A Motion to move item 24 forward was made by Mayor Hashmi and seconded by Council Member Grossnickle. Motion carried, 7 ayes - 0 nays. 24. Ranger Abbott presentation regarding property located at 125 4151 SW Street. Mark Howe, attorney for Ranger Abbott, said this problem had arisen with regard to development issues on the mobile home park that Ranger owns on the west side of town. Mr. Howe said it was about 60% developed and that Ranger wanted to develop the remaining 40% so 4 Regular Council Meeting August 13, 2012 Page 5 that additional mobile homes could be put on the property. He said Ranger met with the former city manager and obtained a letter from the city manager and they believed that the manager meant the 7.7 acre tract could in fact be utilized in its non-conforming use fashion for as long as it remained a mobile home park. Mr. Howe said Ranger enhanced the property and in 2010, Ranger began to try to expand the mobile home park. He stated that applications and preliminary plats were submitted and that Ranger bought an additional twenty mobile homes to be placed on the property. Mr. Howe said it was denied by the P&Z Department and they were going to be forced to rezone the property from its commercial zoning to multi family, which is exactly what they thought they were avoiding when Mr. Carruth wrote the letter in 2008. He said it was one single piece of property and they were concerned if they went into the rezoning process they might lose the nonconforming use they had on the existing mobile home park. Mr. Howe said they filed a lawsuit and that Ranger took a financial hit on this. Mr. Howe said mobile homes were purchased, moved, stored and liquidated. He said Ranger lost about $300,000 just in rental income since this dispute started in 2010. Mr. Howe said they didn't believe they needed to and they did not want to rezone the remainder of the property. He said when they got to the Court of Appeals and got a letter from the Court saying they had not exhausted their administrative remedies by going to the Board of Adjustment. Mr. Howe said that Ranger since that time had fashioned an application to the Community Development Department that said they wanted to get permission to build on the property without having to rezone it. He said Mr. Abbott took the application to the secretary in the Community Development Department who refused to file it, because it was not the City's form. He said about ten days later they did a petition to the Board of Adjustment and took it to the secretary and she told him he could not file an appeal with the Board of Adjustment. Mr. Howe also said Mr. Napier told him he couldn't file an appeal with the Board of Adjustment. He said Mr. Abbott had spent about $100,000 in attorney's fees on this matter. Mr. Howe asked the Council to give his client a resolution that would allow him to expand the mobile home park to its full coverage and hopefully provide his client with some measure of compensation for his losses suffered. Ranger Abbott thanked the Mayor and City Manager for putting him on the Agenda. He asked if there was any interaction or concerns or if there was anything they needed to discuss out in the open. Mayor Hashmi said this item was posted for a presentation and thanked Mr. Abbott for his presentation. Mr. Abbott said he saw a business opportunity and it was the biggest investment he had ever looked at in his entire life. Mr. Abbott said he sought advice from his attorney, his realtor Jim Bell and he went to the former City Manager. 14. Discuss, public hearing and act on RESOLUTION NO. 2012-073: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; APPROVING AND AUTHORIZING A TAX ABATEMENT AGREEMENT WITH KIMBERLY-CLARK CORPORATION; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. PEDC Executive Director Steve Gilbert said the Paris EDC Board and staff had been working with the K-C Plant Manager to secure a major capital investment in the Paris Plant over the next five years. 5 Regular Council Meeting August 13, 2012 Page 6 KC Plant Manager Philip Senn explained that KC would be making an investment over the next five years in the amount of about 150 million dollars. Mr. Senn said the investment would be to primarily deliver new products and product changes and would also involve investment in equipment to make the products. Mayor Hashmi inquired about the lifespan of the machines. Mr. Senn said they currently had assets on their books that were 1980 vintage and the new equipment was expected to outlive the seven year tax abatement. Council Member Grossnickle asked about creation of jobs. Mr. Senn said they were not adding jobs, but expected to retain the current 770 employees. Council Member Wright confirmed with Mr. Senn that KC would retain the current job level of 770 employees. Mayor Hashmi opened the public hearing and asked for anyone wishing to speak in support of this item, to please come forward. Steve Gilbert spoke in support of this item. He asked that Section 1.1 of the Agreement be changed to reflect an expiration date of December 31, 2023, to make it a ten year term. Mayor Hashmi asked for anyone wishing to speak in opposition of this item, to please come forward. With no one else speaking, Mayor Hashmi closed the public hearing. Subject to the correction, a Motion to approve the tax abatement was made by Council Member Wright and seconded by Council Member Lancaster. Motion carried, 7 ayes - 0 nays. Mayor Hashmi asked for a Motion to re-open this item due to a correction to be made. A Motion to re-open this item was made by Council Member Drake and seconded by Council Member Wright. Motion carried, 7 ayes - 0 nays. City Attorney Kent McIlyar inquired of Steve Gilbert the correct dates for the tax abatement as State Law limits the abatement to a ten year term. Mr. McIlyar wanted to know if the January 1, 2013 through December 31, 2022, isn't that ten years? Tax consultant Curt Glass said the beginning date in the ageement is the beginning date of the investment and then the actual first year of abatement would be 2014. Mr. Glass said they could just move the beginning date of the abatement agreement and end date to capture a ten year period. Mr. Godwin verified the correct dates as January 1, 2014 through December 31, 2023. Mr. Glass said the first investment would be in 2013 to be abated in 2014. Subject to the changes, a Motion to approve the Tax Abatement Agreement was made by Council Member Wright and seconded by Mayor Hashmi. Motion carried, 7 ayes - 0 nays. Mayor Hashmi said he would like to discuss an item on the consent agenda and made a Motion to re-open item 12 and seconded by Council Member Grossnickle. Motion carried, 7 ayes - 0 nays. 12. Discuss and act on a Resolution to state City Council intent to participate in tax abatement and to ratify and approve the existing abatement guidelines and criteria. Mayor Hashmi said at a previous Council meeting they discussed different rules being following for residences versus commercial, as well as different areas to be addressed within the City for tax abatement. Mayor Hashmi said these guidelines did not cover tax abatements in s Regular Council Meeting August 13, 2012 Page 7 certain areas or differentiation between residential versus commercial. Mr. Godwin said this was the same exact policy that had been existence for some time and that Council actually approved it at a previous meeting, but did not have a resolution at that time. Mr. Godwin said at that meeting they discussed that at a future Council meeting staff would bring suggestions for residential tax abatements. Mayor Hashmi asked that item 20 be moved forward. He said that Ms. Anglin was at the meeting and wanted input from her. A Motion to bring item 20 forward was made by Council Member Drake and seconded by Council Member Lancaster. 20. Discuss and update on strategic plan, clean-up of city, city planner position, permitting process, and loop beautification. Mayor Hashmi said there had been continuing discussions regarding strategic planning and he wanted to get it done. He said he would like for some of the department heads to look at this presentation and Mr. Godwin to direct them on what to do. Mayor Hashmi said Ms. Anglin was very experienced in strategic planning and was offering to assist in the City in anyway. Mayor Hashmi gave a presentation on the basics of strategic planning which included a mission statement, vision statement, strategic priorities, department goals, population growth, budgeting, performance measure indicators and targets, and team members actions. Ms. Anglin said that departments should consider where they want to be ten years from now and plan for steps to achieve that. She said the departmental plans are linked to budgeting and if the plan was accepted, staff could continue to work on long term goals. Mayor Hashmi inquired about the update on the city planner position. Mr. Godwin said he met with a gentleman who was interested in serving as a city planner and had tenatively included in the budget for that position. Mayor Hashmi asked Mr. Napier about the electronic permitting process. Mr. Napier said they met with Farmers Branch, met with Mr. Godwin, selected to go with MyGov and were starting the set-up process the next day. Mr. Napier said they hoped to have a live date in September and would be helping train contractors how to use the system. Mayor Hashmi said portions of the loop would be covered with remainder of crepe myrtles at the appropriate time. Mayor Hashmi asked Ron Sullivan about clean-up of the city. Mr. Sullivan said they were concentrating on entry ways and trying to make improvements to the Trail De Paris. Mayor Hashmi asked that staff clean up 20th Street and sides of the exits. Council Member Wright asked that staff clean up some of the vacant lots, such as Superior Switchboard. 15. Presentation and discussion of the Paris Economic Development Corporation 2012-2013 Budget. EDC Director Steve Gilbert presented the budget to Council and answered questions from City Council. (See Exhibit "A" attached) Specifically Council Member Grossnickle inquired the total amount of reserves and Mr. Gilbert replied that figure was right at 5 million dollars. Mayor Hashmi asked what that figure was after commitments were deducted and Mr. Gilbert replied around 2 million dollars. Council Member Frierson said being the PEDC liaison ~ _ ~ Regular Council Meeting August 13, 2012 Page 8 had been an eye opener for him. He said that PEDC had a plan they were working towards, which should remove any concerns. 16. First reading, discuss and possibly act on ORDINANCE NO. 2012-021: AN ORDINANCE OF THE CITY COUNCIL OF PARIS, TEXAS, AMENDING SEC. 7-20 ARTICLE II, CHAPTER 7, OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS BY ESTABLISHING A BUILDING BOARD OF APPEALS AND PROVIDING FOR THE REPEAL OF SECTION 7-21 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS, AND DECLARING THE SAME TO BE NULL AND VOID AND OF NO EFFECT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTNE DATE. Mayor Hashmi said this arose as a result of ineetings with contractors, there had not been as many complaints about the permitting process. Shawn Napier explained creation of this Board would offer an opportunity to submit an application to appeal orders, decisions or determinations made by the building official or fire code official. He said Section 112 of the Building Code states the general purpose, limitations of authority and qualifications for the board members. Mr. Napier said the board must include an electrician, plumber, mechanical contractor and general contractor. He also said the fifth member would be an engineer, architect or design professional and the two alternates should qualify for one of the previously listed positions. Mayor Hashmi referenced page 121 item c and stated that he thought the Board's number of days to render a decision should be fifteen days not thirty days. Mr. Napier expressed concern about being able to get a quorum together on a shorter notice. Following a brief discussion, it was a consensus of City Council to reduce the number of days to fifteen for the Board to render a decision. Mayor Hashmi said Paul Denney, Bobby Smallwood, and Bryan Hargis had all expressed an interest in serving on the Board. A Motion to invoke the super majority rule was made by Council Member Grossnickle and seconded by Council Member Lancaster. Motion carried, 7 ayes - 0 nays. A Motion to approve this item was made by Council Member Grossnickle, and seconded by Council Member Lancaster. Motion carried, 7 ayes - 0 nays. 17. Update and discuss possible future use and funding for the Grand Theatre, and provide direction to city staff. Council Member Frierson gave an update of the Grand Theatre Project and started with a history of the facility. He said the City assumed possession of the property in May 2009 and work performed since that time included electrical work on the sign, initial faqade work, asbestos abatement and roof repair. Council Member Frierson told the Council that approximately $100,000 of City funds had been spent to date on the Project. He also said that the asbestos abatements had been completed at a total cost to date of $240,000, $200,000 of which was from grant money and $40,000 was from City funds. He stated that in November 2011, the facility g Regular Council Meeting August 13, 2012 Page 9 suffered a roof collapse due to a clogged drain, that the insurance claim filed against the restoration company was denied, and it was currently in litigation. Council Member Frierson said private donations in the amount of $6,300 had been given to this project. He said there were two main issues, one of which was the roof replacement. He reported that the estimated total roof cost was $120,000. Council Member Frierson said the second issue was the asbestos abatement and that one-third of the asbestos had been abated with gant money. He said the total cost to abate the remaining two-thirds was estimated to be approximately $200,000, with the City incurring a cost of approximately 20%. Council Member Frierson said there were several options and the first one was demolition, which the exact cost had not been determined but best estimates exceeded $200,000. He said the second option was renovation by the City, which would exceed $750,000 but might become a place to be used for weddings, movie screenings, charity auctions, etc. Council Member Frierson said the third option was stabilization of the facility and either donate, sale or leave to a private entity. He told Council that at least one group of citizens was interested in rehabilitating the facility. Council Member Frierson said the abatement costs would be approximately $40,000 to $50,000, the roof and sign was estimated at $102,000 with a total cost of $142,152. He also said that funding options included funding from current funds, bond monies if passed at an election, insurance claim/litigation, private donations, Leadership Lamar County class project funds for sign and fa~ade, and applying for more grant money. He said if the project was approved by the Council, work could be completed and the structure secure and abated by the end of 2013. Council Member Drake said she was against demolishing the Grand Theatre. Council Member Wright said he would like to get to property in the dry and then make a decision. Council Member Lancaster said she was opposed to tearing it and down and thought they should partner with a group on this project. Council Member Jenkins agreed with Council Member Wright. Council Member Grossnickle said they needed to get it in the dry and expressed it would be a good place to have events. Mayor Hashmi said it did not make sense to demolish the theatre, that he did not have a problem with the City spending funds on the project but that the City should be reimbursed for those funds. Mayor Hashmi said he thought it should be a community project and then convey the property to whomever the Council felt was the best group or entity. Council Member Frierson ageed with Mayor Hashmi and suggested once the project was completed, that a memorandum of understanding be drafted setting out the terms of how the facility could be utilized. He also said if the City recoups on the insurance claim, Lamar County Leadership Class should be reimbursed so they could continue with their project. Mayor Hashmi offered to arrange an event or fundraiser to assist with the expenses. Council Member Frierson inquired as to when they could get started. Mr. Godwin said they could start right away. The Council expressed their appreciation to Council Member Frierson for all of his work on this endeavor. 18. Discuss and act on a request received from New Hope Center of Paris (formerly Models of the Maker) to amend the existing Services Ageement. Mayor Hashmi said the place was in bad condition and he thought they should grant their request. Council Member Wright wanted to know why they had the stipulations. Council Member Frierson said there was concern about the prior leadership and direction of the g Regular Council Meeting August 13, 2012 Page 10 organization, but that had since changed with new leadership. Mayor Hashmi said the money should not be used toward administrative costs. A Motion to amend the existing Services Agreement was made by Council Member Frierson and seconded by Council Member Drake. Motion carried, 7 ayes - 0 nays. 19. Discuss and update on proposed sale of tax foreclosed lots in the City of Paris. Mayor Hashmi said when he first got on Council, there were about 99 properties that the City owned. He said all of the taxing authorities were in agreement to proceed with this sale. Mayor Hashmi said according to the rules, when property was sold at auction it had to go to the highest bidder. He said the auction would be advertised on the internet and in the newspaper for an auction date in December. Mayor Hashmi said when property was purchased at the auction, it would be free and clear of all liens from all of the taxing authorities. 21. Discuss and update on dilapidated structures. Code Enforcement Supervisor Robert Talley reported that Building and Standards had reviewed seventy properties this year, of those properties forty-five were ready for demolition, ten structures would be reviewed in August, ten structures had been demolished, fifteen structures had been given to the contractor and would be used on the landfill contract which the City would only pay tipping fees at the landfill. Mayor Hashmi said the report reflected some of the properties were turned over for demolition but that had not taken place. Mr. Talley said on May 21, 2012 ten work orders were given to Sanitation Solutions and they were completed last Friday. Mayor Hashmi asked if all of the orders for demolition had been completed and Mr. Talley said they had not. Mayor Hashmi also asked about the property on Fitzhugh, because an order had been issued but the property had not been demolished as of yesterday. Mr. Talley said the properties on Fitzhugh were ordered demolished, but the work crews had not been given those orders. Mayor Hashmi referred to an order of demolition for property on Fitzhugh, in which the order was given to the work crew and forty-five days had passed since the order was given. Mr. Talley said even though the time had passed that until they gave the work orders to the demolition contractor they were not going to be torn down. Mayor Hashmi asked if there was money budgeted for the properties to be demolished that were on the list. Mr. Talley said . there was $110,000 budgeted and had approximately $4,800 left. Council Member Frierson said he understood that the building that fell on Bonham was about $50,000. Mr. Talley said it was difficult to budget, because you never knew how many you were going to get on a yearly basis. He also said normally when they had a large building to demolish it was budgeted by Council, such as One Oak. Council Member Frierson wanted to know if reserves could have been used for that fallen building. Mr. Anderson said if the Council authorized that action it could be done. Mayor Hashmi asked Don Wilson for his input. Mr. Wilson said they ran out of money at nine or ten houses and they had an emergency tear down that took $50,000 out of that budget. He said a tear down costs around an average of $4,000. He said it was frustrating. Mr. Wilson said a lot of the houses being torn down now had stickers on them to be torn down last year when pulled. He said they went back and re-did the entire list that were approved for last year. He said last year they had $48,000 left in the budget that went into reserves and he didn't see a 10 Regular Council Meeting August 13, 2012 Page 11 problem in taking it out of reserves. Mr. Wilson said they got backed-up because of the Dallas lawsuit. He said he hated to see them go through the end of September without taking them down, because next year they would allocate some money and in October they would knock all of them down and would be out of money by the end of October. Mayor Hashmi suggested that they bring this item back on a future Agenda. Mr. Wilson said he understood that all of the money budgeted was spent by getting down the nine houses and that fifteen work orders had been issued and of that fifteen Sanitation Solutions was responsible for demolishing and delivering to the landfill. Mr. Wilson said you also had to pay for the landfill charges. He said they needed the money to put those in the landfill. Mayor Hashmi said they would bring an item back addressing this on an Agenda soon. It was a consensus of Council to do so. Mr. Godwin said it would be placed on the August 27th agenda. Mr. Godwin said he was seeing enough heads nod, that he would give instruction to start the demolitions and that he would bring back a budget amendment at a later date. Mr. Wilson said he would like to see the Council put in the ordinance a line that says that the Building and Standards can request or demand that the property owner hire a structural engineer at their own expense. He also said he would like a requirement in the ordinance if the property owner did not hire a structural engineer, the Building and Standards could go ahead and do it. Mr. Wilson said if you put it in the ordinance then they could have a pressure point to get the owner to do something. He said the point was to have Building and Standards have the authority to force the property owner if they do not know if it is structurally sound. He said they could have the possibilities of being reimbursed. Mayor Hashmi asked the City Attorney to bring suggestions back on this issue outlining the pros and cons. Mr. Wilson said it would only cost $1,500 to have a structural evaluation of a four story building. Mr. Wilson said the building that went down this week had been on the agenda and brought up in 2007 and an order was issued for the roof to be repaired or demolished. He said it was brought up again in January 2010 and nothing happened. Mr. Wilson said if the City had spent the inoney on the building to repair the roof the City would have something to sell, but when it was demolished there was nothing to sell. Mayor Hashmi said there were many buildings with many problems and if the City spends money on all of them, the City would not have money for anything else that was needed. 22. Discuss and act on creation of citizen's advisory committee on capital improvements. A Motion to table items 22 and 23 until the next meeting was made by Council Member Drake and seconded by Council Member Frierson. Motion carried, 7 ayes - 0 nays. 23. Education of City Council as requested by City Council on bond issues. 24. Consider and approve future events for City Council and/or City Staff pursuant to Resolution No. 2004-081. Council Member Grossnickle encouraged everyone to see the PCT Community Theatre production. Mayor Hashmi scheduled a budget workshop meeting for August 22nd at 5:00 p.m. 11 Regular Council Meeting August 13, 2012 Page 12 25. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Frierson and was seconded by Council Member Drake. Motion carried, 7 ayes - 0 nays. The meeting was adjourned at 9:12 p.m. A.J. HASHMI, MAYOR JANICE ELLIS, CITY CLERK 12 City Council Budget Presentation Paris Economic Development Corporation August 13, 2012 FY 2012-13 Proposed Budget Highlights Paris FDC Budget Ratio Comparisons: FY1041 Act~rsd F'Yll-12 Proje % Of Amount Budget Amount Annual Budgct $1,271,165 - S 2,972,500 Fixed Costs (Overhead) S 432,300 347/o 26% $ 457,208 420 S 521 Ncw & Existing ]ndustry 5 324,732 , ]ncentivc Payments (from Resen•es) s - 0% s - Debt Service (from Reserves) 5 - 0% $ 315,120 Hwy. 19/24 Proj. (from Reserves) s - 0% $ 1,450,000 To Reserves S 514,133 40% $ 228,752 Totals $1,271,165 100'/o S 2,972,500 Fixed Costs (Overhead) Excluding HW19/24 Funding from Budget $ 1,522,500 Paris EDC Budget Summary Revenues Budget As °/Q I/4 Cent Sales 7ax $ 1>200,000 60.60% Interest lncome 15,000 0.7b% From Reserves for Incentives & Bonds 765,264 38•64% Total Revenue S 1,980,264 10 0.00% - 13 /rA 'r ot Amouat Budget t $ ],980,264 S 444,070 22% 18% $ 571,019 29% 00/. S 410,000 2l % 1l% S 355,264 18% 49% S - 0% 8% $ 199,911 10% lpp% s 1,980,264 100% City Council Budget Presentation Paris Economic Development Corporation August 13, 2012 New & Existing Industry Projects Budget As % New Industry Recruitinb $ 160,762 8.12% Project Fresh Air lncentive 250,000 12.62% Retail Attractions 33,000 1.67% Business Plan Implementation 115,000 5.81% Research 360/EMSI Tools 15,995 0.81 % Sub-Total New Industry $ 574,757 29.02°/a Existing lndustry Support $ 85,762 4.33% Incubator Operations 95,500 4.82% Campbells Soup Solar Project 100,000 5.05% Rogers Wade ]ncentive 60,000 3.03% Business Plan Implementation 15,000 0.76% Workforce Training 50,000 2.52% Bond Payments 355,264 17.94% Sub-Total Existing Industty $ 761,526 38.46% To Reserves 199,911 10.10% Depot Lease Savrngs 60,000 3.03% To Reserves with Depot Lease Savings 259,911 13.13% Total Budget $ 1,980,264 100.00% FY 2012-13 BUDGET HIGHLIGHTS 1. Changes to Depot Lease Agreement. development friendly, especially related to permits 2. Reduce Fized Overhead Costs. and licensing. 3. 10 Yr. Financial Plan Underway (Dority/Carr). 4. Communications and Market Positioning Plan (Clem/Wehrman). 9. Promote Paris as a prime location opportunity for targeted retail and restaurant development. 10. Promote Paris as a regional hub jor world-class healthcare serviees. 5. On-going implementation of the 3-Year Economic 11. Promote the needs of Paris and Lamar County to Development Business Plan focused on jood and our local, state and federal elected officials and eonsumer products manufacturing, value-added agri-businesses and water using industries. advocate for pro-business public polieies. 6. Market former Sara Lee Plant to a new operator who will bring jobs for our citizens. 7. Aggressively retain our major employers, which will allow Paris to remain stable in a constantly evolving rural economy. 8. Promote "site ready" sites for new industry expansion and work with the City of Paris to be 12. Advocate and partner with business and industry and local educational institutions (school districts and Paris Junior College) to develop and maintain a highly skilled workjoree. 13. Develop a community report card to set realistic, attainable goals for our community's economic future. 14 PEDC Certificates of Deposit as of May, 2011 Banking Institution: Amount: Peoples $95,000 Lamar National $95,000 Capital One $95,000 First Federal $95,000 Liberty National $95,000 Guarnaty Bond Bank $95,000 Total Revenues in CDs $570,000 Maturity: 5/14/2012 4/29/2012 4/ 17/2012 4/29/2012 8/25/2010 15 W cn Z W x ~ W ~ N ~ LL N ~ W 1- acnLL O O O O ~ ~ $ ~C ~ef CG M ~ ~ ~ H ~ ~l cn O O O w ~ p f7 M M a~o I m`n - u) ° s° O 0 ;r 6s • r ~ rs1 ~ o C7 H o °o °o ul ~ ~ M co ~ w 4 LC) w LrS c\i ~ co c . ¢ 6q t o W - -00- O O O g ~ J 0 = tD O Lri ~ ~ 00 U y N ~ rn C G J N ~ ~ g1 CM ~ o~ Ef3 ~t ~ O O O LO p m a Lo Lri ~ ~ ~ U ~ N C~ ip * - a W ~ C') ~ LL o °o °o « ° o , ° o ° o r~ • _ O N (O o ~ L Q v c\j ~ UN ~ ~ N ~ ¢ W C~ z o ~ N ~ ; ~ o Q Q o X m ~ s Y' i a w 0 0 N ~ ~ ~ ~ LU in cn v~ z 16 8g g ~ 0 a°~ H O o N W a: ~ ~ ~ o X X Q W W 3 o 0 ~ Z . ° °tA W ~ LU Z Z F W Q N C QD 0 Q ~ Z ~ ~ ~ ~ w W ~ O ~ ~ a V ~ W a g Q t- -i ~ O V ~ o ~ Lo CC ~ Cl) 00 N co ~ C ~ -0 ~ J Lo N dl O y a 4) ~ U) . ~ co ~ ~ N ~ ~ W ~ " U) o Z U Cc ` a 0 y Q N ~ ~ CV) Z 0 X E E ~ W y N o ~ a C o m U. r a c N E • ~ J -0 ` y S~ a N ~ ¢ W a tz- 0 M H ~ ~ ~ 0 O a m N LL z 1 7 M 0 ~ ir ~ a ~ 0 T R L'-J J ~ r ~ V ~ ~ lY. ~ C U FG L G ~ oG C fl ,G L Z ~ v U ~ C ~ ~ c w n J ~ U Y ~a r 7 ^I~ ~ ~ c'~v a ~ G G ~ ~ v, N ~ :J O~ O R 0 0 ~ 'r_00 ° ~ M~ F h+~M ~ N O ~ Q E a6 O °r' a F ~ x e N 'b in ~ ~ N q v U cn 4i a @ > A o° C ~ ~ q a gi - n, ~ aa Qc I J H e E ~ ~ 3 O w r U ~ ~ e 0 E ~ a `o U ~ ~ S, ~ N1 rl N ~ L W 6~! 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Kaufinan, Paris, Texas. Present: Mayor: A.J. Hashmi Council Members: Aaron Jenkins; Billie Lancaster; John Wright; Richard Grossnickle; and Cleonne Drake City Staf£ John Godwin, City Manager, Kent McIlyar, City Attorney; Janice Ellis, City Clerk; Shawn Napier, City Engineer; Bob Hundley, Police Chief; Ronnie Grooms, Fire Chief; Kent Klinkerman, EMS Directar; Doug Harris, Public Utilities Director; Ron Sullivan, Public Works Director; and Priscilla McAnally, Library Director Absent: Council Member: Matt Frierson Opening Agenda Call meeting to arder. Mayor Hashmi called the meeting to order at 5:00 p.m. 2. Invocation. Gene Anderson gave the invocation. 3. Pledge of Allegiance. Council Member Grossnickle led the pledge. 4. Citizens' forum. Gene Anderson - he said that he sincerely regretted his erroneous statements concerning the Striplands' sewer connection to a City sewer main. He said having found no record of the connection, he made an assumption that it was done without permit. He also said the former City Engineer Earl Smith's statement that he was fully aware of the connection and how it was done convinced him that he was mistaken. Mr. Anderson apologized for his statements made at the first July Council meeting. Mr. Anderson also expressed his regret and embarrassment that he cause Mr. Stripland and his family. He said that he had learned a valuable lesson and hoped that the Striplands could forgive his actions. " 23 Special Council Meeting August 22, 2012 Page 2 Rey.ular A enda 5. Convene into Executive Session pursuant to Section 551.071 of the Texas Government Code, Consultation with Attorney, to receive legal advice from the City Attorney about pending or contemplated litigation and/or on matters in which the duty of an attorney to his client under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, clearly conflict with this chapter, as follows: • Development Corporation Act; • City of Greenville, et al vs. Syngenta Production; Case No. 3:10-CV- 00188; • Ranger Abbott, 125 41 s' S.W. Mayor Hashmi said they would be discussing only the City of Greenville lawsuit and convened City Council into Executive Session at 5:04 p.m. 6. Reconvene into Open Session and possibly take action on those matters discussed in Executive Session. Mayor Hashmi convened City Council into open session at 5:17 p.m. Mayor Hashmi said they heard from the City Attorney about the City of Greenville lawsuit. A Motion to authorize the City Attorney to file a claim in the City of Greenville, Illinois vs. Syngenta lawsuit on behalf of the City of Paris was made by Council Member Grossnickle and seconded by Mayor Hashmi. Motion carried, 6 ayes - 0 nays. 7. Discuss and possibly act on budgeting for dilapidated structures. Mayor Hashmi said over the years different City Councils had discussed how to handle dilapidated structures. He said small amounts of money had been budgeted and dilapidated houses had been taken down, but the City was still full of dilapidated houses and buildings. Mayor Hashmi said he was going to make a Motion and asked that Council support it. He said $22,525,947.07 was in the general fund excluding commitments. Mayor Hashmi said $9,449,219.00 was the estimated general fund balance as of September 30, 2012. Mayor Hashmi said as of September 30, 2012, the estimated balance for the water and sewer fund was $3,767,322.00. He said the finances of the City had been managed well and that the City had an excess of three months reserves. Mayor Hashmi said there were twenty-eight houses awaiting demolition which had gone through the process and an additional seventy houses pending Building and Standards Commission for a total of about ninety-eight homes. He said an average price of demolition of a house was about $4,000.00. A Motion to approve $400,000.00 out of the general fund as a onetime expense to take down all of the dilapidated houses in the City at one time excluding downtown buildings was made by Mayor Hashmi. He said this bold step would affect the entire community and that they would see a clear difference in the City. He said they needed to come up with separate ideals of 24 Special Council Meeting August 22, 2012 Page 3 how to handle the downtown buildings. He also said the downtown buildings would require a lot more money and the funds available at the time would not be sufficient. Council Member Wright asked about negotiation of fees prior to approval of this expense. Mayor Hashmi said they should approve and renegotiate the contract citing they should get a discount because of the volume. He said they should have the City Manager renegotiate the contract. Council Member Wright asked Mayor Hashmi if he would include that in his Motion. Mayor Hashmi amended his Motion to include having the City Manager to renegotiate the contract to bring these dilapidated houses down and renegotiation of the landfill fees. Council Member Wright seconded the Motion. Motion carried, 6 ayes 0 nays. 8. Discuss and act on creation of citizen's advisory committee on capital improvements. Mayor Hashmi said this Council and past Councils had repeatedly discussed repair of infrastructure. He said at some point the Council would come up with an ideal on how to replace the infrastructure and a plan to fund it. Mayor Hashmi said he would like to form a committee with a member from each of the districts to be nominated by the Council or by Council Members from each district. Mayor Hashmi said he envisions the Committee working close with the city departments and the committee would make the decision as to which segments of the City should be addressed. Council Members Lancaster and Jenkins agreed with Mayor Hashmi. Council Member Wright said it was a good ideal and that they needed to be careful in selecting the committee. Council Member Drake inquired if persons interested in serving would have to make an application. Mayar Hashmi suggested that Council appoint the committee. In addition, Mayor Hashmi said at the next meeting he would like the Council to discuss options for funding of infrastructure. A Motion to form the Committee with one member being appointed by each Council Member was made by Council Member Grossnickle and seconded by Mayor Hashmi. Motion carried, 6 ayes - 0 nays. 9. Education of City Council as requested by City Council on bond issues. Mayor Hashmi stated this item was strictly for education purposes. City Manager John Godwin explained there were three different types of bonds that cities sell. He said with regard to general obligation bonds, a city pledges its full faith and credit. He said that means you usually get the lowest possible interest rating, because the City backs that bond before it backs other types of debt. Mr. Godwin said general obligation bonds require an election of the populous and requires specific language that must be approved by the Texas Attorney General in advance. With this type of bond, you cannot change your mind and spend the money on other items. You have to spend the money on what is approved by election. Mr. Godwin further explained that revenue bonds pledge a revenue specific source other than taxes. He said the most common type was water and sewer bonds and the revenue could be used for things such as water towers and water plants. Mr. Godwin said the third type of bond is a certificate of obligation, which is now extremely common. He said you could buy bond insurance raising your rate to what you need in order to get the low interest rate. The big difference with certificate of obligations and general obligation bonds is that you do not have to have an election and is 25 Special Council Meeting August 22, 2012 Page 4 simpler. If you decide to sell certificate of obligations or general obligation bonds or have an election, you would hire a financial advisor and a bond counsel. Mayor Hashmi inquired if there was a possibility of replacing infrastructure without issuing bonds, such as using the general fund and at the same time not exhausting the funds from the general fund. He asked Mr. Anderson to explain. Mr. Anderson said the Mayor asked him to determine what constituted three months operating money in the general fund and compare it to the year-end balance in the general fund. He said he was asked about the difference of those two amounts and what type of tax rate would it take to replace that money. Mr. Anderson said you basically you would be spending it and replacing in the same year. He said at the end of September, the City was projected to have an estimated 9.4 million dollars left in the general fund. He said based on the Manager's proposed 2012-13 Budget, twenty months operations and maintenance would be about 5.4 or 5.5 million dollars so the difference would be about 3.9 million dollars. Mr. Anderson reiterated the City Manager in that a one penny increase on the tax rate would bring in $134,363. Mr. Anderson said if Council tried to spend the 4 million dollar excess over the three months that it would take almost $30 on the tax rate to replace that entire amount in a single year. Mayor Hashmi wanted to know if bonds were issued for that same amount of money how that would affect the tax rate. Mr. Anderson said he would have to do some calculations. Mayor Hashmi said he was not making suggestions, but simply wanted the Council to explore all avenues. Mayor Hashmi also inquired about the water funds with regard to replacement of infrastructure. Mr. Godwin said that the reserves could be used for any general government purpose. Mayor Hashmi confirmed that some of the water fund could also be used for infrastructure. Council Member Wright suggested that the water line replacements be prioritized prior to utilizing any funds. Mayor Hashmi agreed. 10. Presentation and discussion on the 2012-2013 Budget for the City of Paris. City Manager John Godwin presented the 2012-2013 Budget to City Council. Mr. Godwin said he had eight basic categories he wanted to review with the City Council and the first seven were priorities, which included, clean-up, planning, performance, infrastructure, reorganization, water and waste water plants and tax rates. Mr. Godwin said the eighth category was other and future issues which they did need to discuss and subsequently reviewed his budget suinmary with City Council. (See Exhibit "A") Council Member Wright wanted to know the total number of employees Mr. Godwin was planning to add to the budget. Mr. Godwin said one full-time and one part-time. Council Member Wright asked Mr. Godwin if he had ever considered completing a personnel audit to determine if there was a person who could better serve in a different position. Mr. Godwin said he had begun that process. Mr. Godwin reported that the current tax rate was $0.52 per $100 of assessed valuation and he was recommending a total ad valorem tax rate of $.51107, a reduction of 1.71 three times the amount targeted. 11. Discuss and act on RESOLUTION NO. 2012-074: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, CALLING A PUBLIC HEARING ON THE CITY MANAGER'S PROPOSED BUDGET FOR FISCAL YEAR 2012-2013. 26 Special Council Meeting August 22, 2012 Page 5 A Motion to call a public hearing for September 10`" was made by Council Member Grossnickle and seconded by Mayor Hashmi. Motion carried, 6 ayes - 0 nays. 11. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Wright and was seconded by Mayor Hashmi. Motion carried, 6 ayes - 0 nays. The meeting was adjourned at 6:25 p.m. A.J. HASHMI, MAYOR JANICE ELLIS, CITY CLERK 27 morandum me TO: Mayor & Council FROM: John Godwin, City Manager SUBJECT: DRAFT 2012-13 BUDGET DATE: August 1, 2012 have Attached is a summary of the draft recommended 2012-13 bu egst and the t me required for me gotten slightly behind schedule due to my arrival late in the proc to work through budget requests and anticipated resources. Eve fiscal year on Oct bertlm I for review, discussion, and adoption prior to the begmnmg of the new existing have attempted to summarize the major expenditures and notabl the budget hn as much 2011-12 budget below, by fund. Although we stand prepared to dscuss data you detail as necessary, and you are encouraged to look over thu a e comfortable do ng so hat you will receive on August 23, I recommend to the extent yo concentrate on the big picture of the overall budget. Please keep in mind that the budget adoption ordinance that you will be asked to approve in September allocates monies by department, not by line item. ougbts for Simultaneous to working on the budget, I have been gatheringadec ties run the danger of comprehensive strategic plan for Paris. Without a good workmg pl, ust adopting budgets that over time become fragmented, with lit ooCenscour gesus to incrementally ratcheting costs up from one year to the next. A multiyear Plan assume spend monies more wisely and more efficiently over a longer pee~ d y°1 tbut I also dentified council will adopt a good working plan well before next year s budg nex major issues in this year's budget that I think will need to be work Th° se majohea east nclude years, and I therefore tried to focus on funding those areas now continued cleanup of the city, expanding our commitment to p~e~ ega ement (not gj'useloyees t repai based more on actual performance, investing in infr ~e for major improvements at Pat reorganizing certain functions and departments, and p paring Mayse and the future wastewater treatment plant project. Despite the need for many tangible improvements, some of them quite~dent and maintan t or budget I have also tried to be cogmzant of the need to be fisca y p ossibly even reduce our ad valorem tax rate. In fact, it was my goal to reduce the tax rate by P 28 0.5% as a good faith statement to our citizens. The total current tax rate is $0.52 per $100 of assessed valuation. I am actually recommending a total ad valorem tax rate of $.51107, a reduction of 1.717%, three times the amount targeted. Such reductions are not something we can do every year, however. Some of what was required to reach that figure are one-time fixes, for example. But we do take the tax rate extremely seriously and hope to prove ourselves good stewards of public funds. GENERAL FUND Revenues: Please keep in mind that cities in Texas actually adopt and maintain two different tax rates. The maintenance and operations (M&O) tax rate is that portion of the total tax rate that supports the operations of the city. All of this revenue goes into the General Fund. We are proposing an M&O rate of $0.41487. This is a slight increase in the M&O rate from 2011-12, but is necessary to fund our $103,695 payment to SuRRMA for their debt obligations related to the expansion of SH 24. This figure equates to $0.0073 cents from the M&O rate not available for operating costs, making our true M&O rate $.040757, or a decrease of 0.593%. Another major recommended General Fund revenue change is Water Sewer Utility (gross receipts) and Water & Sewer Transfer (indirect costs). Like most cities with multiple funds, Paris classifies certain funds as enterprise funds, one of which is the Utilities Fund. Enterprise Funds are intended to operate like a business, paying their own ways through their own revenue sources, typically user fees. In order to treat our Utility Fund as an enterprise, it must assume certain business expenses, such as overhead, administration, HR, risk management, auditing, management, etc., plus the payment of gross receipt taxes. Leaving these kinds of costs out understates the true cost of providing water and sewer services, and that in turn would mean property and sales taxes are subsidizing water and sewer. In the proposed new budget I have increased the gross receipts payment to 5%, thereby making that payment equivalent to fees paid by other utility providers that operate within the city's rights-of-way. This should generate an additional approximately $260,000 over the existing 3% rate. I am also recommending increasing the indirect costs charged to the Utilities Fund by the General Fund by $125,000. Expenditures: • The administration budget is up by 51.27% due to the funding of the city manager's position for a full year following an extended vacancy, and also because the human resources manager's costs have been transferred from accounting to administration. This in turn is a result of a reorganization that will administratively move HR to directly under the city manager effective October 1. • Accounting/auditing is down by almost $91,000, or 17%, due to the transfer out of HR functions, and because of expenditures for one-time building improvements in 2011-12. 29 • The police department operating budget is down by more than $50,000, the biggest portion of which relates to continued turnover of long-tenured employees and their replacement by younger officers at significantly lower pay. We are beginning to phase in a rank restruc- turing that over time should help with our unacceptable turnover rate, which in turn contributes to our very high overtime costs. No new positions are included. . The fire department's budget includes phase 1 of its own rank restructuring/reorganization plan that is intended to help increase employee stability. The restructuring should also help with station management and training; however, no new positions are included. In addition, I added almost $20,000 to pay for more training, and $5,000 for repairs to the training tower. . Community development includes $36,830 for the new MyGov software, including both one-time purchase costs, as well as annual maintenance and licensing fees. This software should help us do a much better job managing code enforcement and building permitting and inspections. I have also included a part-time professional planner position, beginning in November, and have added a second lien mowing crew leader effective next April to expand our ability to mow more lots more quickly. . The demolitions budget was increased from $60,000 to $100,000, and I have added $14,500 to contract lot mowing. . I have added one new parks employee to incrementally help us do a better job of taking care of parks during the mowing season and drainage issues during the "off season." This new position will be filled out of existing staffing elsewhere, so it will not increase costs. I have also added another $14,000 for contract mowing. . We have added an extra $4,200 to repair curbs and gutters, $7,000 for traffic markings, $4,000 for storm sewers, and $45,000 to repair streets (funded in two different departments). . There is a small increase in the garage budget to acquire diagnostic equipment which should help reduce both equipment and staff downtime. • EMS includes a new replacement ambulance for $140 a0 he eusepof the hass s from the year, maintaining a seven year replacement cycle), an replaced ambulance ($9,000) in support of the regional Emergency Medical Task Force. • The airport budget is down more than $60,000 due to a grant match that was included in the 2011-12 budget. • We have increased the library's book budget by 5%, or $5,000. • Non-departmental includes the new SuRRMA payment, an increase in the visitors & convention center budget (based on an anticipated increase in hotel occupancy tax), a new $5,000 to Keep Paris Beautiful, and an increase in the health department budget to potentially pay for a new facility. . I have included $27,296 to pay for raises for certain selected employees based on actual performance. This will not be used for any type of across-the-board or automatic raises. 30 tirees, which I . No funding is included in this budget for a cost of liWeg an work that in. understand may be over-due. lf it is the council's wish, GENERAL FUND 2030-11 2011-12 2012-13 Increase Percent 228 124 120,530 104,530 (16,000) 13.27 ( City Council , 399 298 228,264 345,290 117,026 51.27 City Manager , 383,651 4211652 421,215 (437) (0.10) City Attorney 364 219 233,795 231,776 (2,019) (0.86) Municipal Court , 131 145 164,174 165,535 1,361 0.83 City Clerk , 425,455 533,718 442,971 (90,747) (17.00) Accounting 271,635 5 5,393,482 5,339,128 (54,354) 1.01 l ) Police , 3,508,733 3,795,270 3,829,699 34,429 0.91 Fire 136 879 940,033 1,095,597 155,564 16.55 Community Devt. , 426,212 468,468 466,957 (1,511) (0.32) Engineering 203 204 239,769 240,647 878 0.37 Public Works Admin. , 672 883 917,839 ,167 34 3•87 Parks, Rec, ROW 840,599 , 895 167 1,225 0.73 Pool 184,451 166,670 , 888 991 (5,728) 0.57 ~ ) Sanitation 850,364 73 997,616 261 553 1 , 1,569,891 16,630 1.07 Streets 1,54817 674 446 , , 527,979 537,774 9,795 1.86 Traffic , 277,570 295,005 307,832 12,827 435 Garage 191,650 2 354 2,244, 2,273,224 28,870 1.29 EMS , 129,959 171,350 105,750 (65,600) .28) (38 Airport 218 22 20,850 20,850 _ - Paris Band , 627,907 638,404 649,995 11,591 1•82 Library artmental -de N 922,315 1,055,845 1,150,062 94,217 8.92 0 p on _ 103,695 103,695 100.0 SuRRMA (SH 24) - 280 390 425,390 427,227 1 837 0.43 Information Tech. , 907 318 20 21,519,551 21,907,267 387,716 1.80 TOTAL , , UTILITIES FUND sewer, Revenues: Most fund revenues are generally expected to remain s$ bo~~504, except duevtot the recently service charges, which are budgeted to increase by approved rate adjustment. Interest earnings continue to be etio`naa~ ~loa es a e budget d at a be very conservative in each fund when estimating that revenu higher rate (up $251,51 due to increased sales and higher estimated usage. Expenditures: al Fund for gross receipts and indirect costs increased by • Inter-fund transfers to the Gener $427,000, as described above under General Fund revenues. ~ 31 een able . Due to the retirement this year of significant utilities-reia~dri ent~he b dget sfor both the include a significant amount of new and replacement equ p water plant ($160,000), and the sewer plant ($123,500), at Lake Pat Mayse ($55,000), and also at various sewer lift stations ($66,000). 000 for drainage work. . I have added $80,000 for street repairs and $40, . I have added $1.2 million for replacement of some of our °~S Vlumess ewastewater t damagel and in hopes of reducing outages, breaks, impacts on sewer pl repair costs, and placed $55,800 in the budget to purchase equipme 0 , o we can move this work in-house. We actually began planning these projects o July 24 will use -house quickly once the appropriation is approved; for tht a am at his level n future engineering. We may not be able to fund a line replacement pogr term years, but we absolutely need to make a commatmanto°ed n May o eplaoceg 5 o d replacement program. A n a d d i t i o n a l $ 3. 4 0 5 m i l l i o n p pr water lines as part of a Texas Water Development Boar~l~ oa tha °a year and wi 1 not be program, actual construction is not expected to begin fo complete unti12014. . We have budgeted $400,000 for a new SCADA system. This vital communication system cost might be able to be deferred, but the need will not go away, so the sooner we can address it the better. . I have included $13,165 for merit raises for certain exceptional employees. . Not in this budget year, but relatively soon, we will need to b~gi ~orkl o]o can be de erre , and ultimate construction of a large new wastewater plant. but operating and maintenance costs in the meantime are considerably higher, while dependability is lower. UTILITIES FUND 2030-11 2011-12 2012-13 Increase Percent 86 4 472 116 109,280 114,596 5,316 . Warehouse , 661 453 579,906 591,092 11,186 1.93 Billing & Collecting , 000 140 1 11140,000 1,567,000 427,000 37.46 Inter-fund Transfers , , 75 221 865 2 3,030,817 165,596 5•78 Water Production 2,489,4 8 , , 673 496 1 1,573,167 76,494 5.11 Water Distribution 1,331,25 , , 652 989 123,216 14.22 Sewer Maintenance 589,927 866,436 8 , 229 195 2 97,301 4.64 Sewer Treatment 2,032,410 2,097,92 , 1 817 34 8.55 905 307 407,250 442,067 , Lift Stations , - 1,200,000 1,200,000 100.00 Line Replacements _ 13,165 13,165 100.00 Contingency - 3,823,250 1,694,895 1Zg,355) (2, (55.67) Utilities Debt 461,108 8 13,385,944 13,411,680 25,736 0.19 TOTAL , 32 GRANT FUND This fund includes various grants received from time to time, as well as funding received from PISD ($128,604) and NLISD ($186,614) for a total of five school resources officers. The largest single revenue accounted for is $235,280 for the auto theft task force. There are also monies for Main Street projects, police funding through a COPS grant (the cost of which will eventually have to be borne by the city), and parks and trail grants. All revenues and expenditures are for specific, special purposes. Use of monies is usually highly restricted. This is a fully self- supporting fund. GRANT FUND 2010-11 2011-12 2012-13 Increase 15 Percent 87 21 Police 538,259 628,259 765,674 137,4 • 500) 00) (100 Fire - 7,500 - (7, 000 . 31 167 Community Devt. 593,385 260,000 695,000 435, . Lighting 79,551 - - - 000 80 34 Parks & ROW 1521784 250,000 337,000 87, 915 . 90 56 TOTAL 1,363,979 1,145,759 1,797,674 651, . EQUIPMENT REPLACEMENT FUND This fund is paid solely with surplus unencumbered revenues from previous years. We have included four replacement vehicles ($157,000), an outdoor warning siren ($23,000), and other minor equipment ($35,954) for the police department. A total of $37,000 was included for fully equipping the soon-to-arrive new brush truck to work wildfires. As part of our agreement to purchase this apparatus, we had to agree to support firefighting in other jurisdictions when needed, including sending firefighters to operate the equipment. Another $76,000 was budgeted for two Physio Control defibrillators/monitors in EMS. We are phasing out seven older defibrillators; four have been swapped out to date. Finally, we have included another $96,845 as part of a multi-year migration to upgrade city radios to narrow band. PARIS ECONOMIC DEVELOPMENT CORPORATION The PEDC is funded through the special 1/4 cent, Type A, sales tax. The corporation's board reviews and recommends an annual budget, which is then approved by the city council. Revenues should be very stable. One notable change in expenditures is the elimination of the rental of the old depot building for $60,000 per year. The council will review this budget with the EDC's director on August 13. SPECIAL REVENUE FUNDS The city maintains a number of very small special revenue funds that statutorily must be kept separate and expended on very specific items. All are related to municipal court and the police department. These fees and forfeitures total $156,036, though in any given year actual expenses 33 may vary well below that maximum amount as specific needs arise. Any amount not used in one year automatically carries over into future budgets. Uses are set by state law. SPECIAL REVENUE 2010-11 2011-12 2012-13 Increase Percent Court Technology 10,563 50,380 50,380 - - Court Security 7,509 65,711 65,711 - - Child Safe Fee - 16,240 16,240 - - Court Time Pays 7,085 7,085 - - Gambling - 4,620 4,620 - - Police forfeitures 12,115 28,765 12,000 (16,765) - TOTAL 30,187 172,801 156,036 (16,765) (9.70) DEBT SERVICE FUND The interest and sinking (I&S) ad valorem tax rate pays for annual debt service and must go directly into the Debt Service Fund. The adopted rate is based on an arithmetical calculation consistent with Truth-in-Taxation laws. Our rate for 2012-13 will be $0.0962 per $100 of assessed valuation, a decrease from $0.11. This was accomplished through the use of surplus monies that had accumulated with this fund. The biggest change in the fund is the retirement of a significant amount of water and sewer debt, which also shows up in the Utilities Fund above. DEBT SERVICE 2010-11 2011-12 2012-13 Increase Percent Tx Water Devt. Bd. - - 100,335 100,335 - 2010 CO 132,618 213,625 209,685 (3,940) (1.84) 2002 CO 444,961 449,475 452,975 3,500 0.78 2003 Refunding 822,918 828,050 820,860 (7,190) (0.87) 2010 water/sewer 3,821,744 3,832,920 1,618,925 (2,213,995) (57.76) Total 5,222,241 5,324,070 3,202,780 (2,121,290) (39.84) - 34 MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS August 27, 2012 The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday, August 27, 2012, at the City Council Chamber, 107 E. Kaufinan, Paris, Texas. Present: Mayor: A.J. Hashmi Council Members: Aaron Jenkins; Billie Lancaster; John Wright; Richard Grossnickle; Matt Frierson; and Cleonne Drake City Staff: John Godwin, Ciry Manager; Kent McIlyar, City Attorney; Janice Ellis, City Clerk; Shawn Napier, City Engineer; Bob Hundley, Police Chief; Ronnie Grooms, Fire Chief; Gene Anderson, Finance Director; Ron Sullivan, Public Works Director; Kent Klinkerman, EMS Director; and Priscilla McAnally, Library Director Opening A enda _ Call meeting to order. Mayor Hashmi called the meeting to order at 5:30 p.m. 2. Invocation. Pastor Van Lazaroff gave the invocation. 3. Pledge of Allegiance. Council Member Grossnickle led the pledge. 4. Citizens' forum. Carol Huff Huffneagle, 720 Bunker Street - she warned the City to stay away from any organizations connected to the ICLEI Organization. Dave Dennison, 3715 Eagle Bend - he said he had a piece of property in Wildwood Estates and that two pieces of property had recently been disannexed in that area. He wanted to know if the City was ever going to put in sewer and if not, he said he wanted to inquire about disannexation. 35 Regular Council Meeting August 27, 2012 Page 2 R.C. Slaughter - he expressed concern about illegal activity taking place in abandoned house and that he had spoken to Mr. Talley earlier in the day about his concerns. Consent Agenda Mayor Hashmi inquired of Council Members if they wished to pull any items from the Consent Agenda for discussion. Council Wright inquired why Patsy Carcuffe's issue was not on the drainage ditch maintenance report. City Engineer Shawn Napier said she did not get water in her house. He also said that Ms. Carcuffe had several issues on her property and that staff had been working on them. Mr. Godwin said it was a high priority for Mr. Napier. Council Member Frierson inquired about the financial report, specifically taxes owed by LaQuinta. Mr. Anderson said since preparing the report, the City had learned the hotel had been foreclosed upon and was taken over by someone else. He said that Mr. McIlyar had been in touch with them to ensure they were aware of the liability. Mr. McIlyar said Celtic Bank of Salt Lake City foreclosed on a loan it made to the prior ownership group. He also said the Hospitality Group out of Dallas was managing the property and uri em~emberbDrakenand them econded byoCouncil MembereF erson Agenda was made by Co Motion carried, 7 ayes - 0 nays. 5. Discuss and act on the approval of minutes from the meeting on July 9, 2012 (corrected). 6. Receive and discuss reports and/or minutes from the following boards, commissions, and committees: a. Historic Preservation Commission (6-25-2012) b. Paris Economic Development Corporation (7-10-2012 & 7-23-2012) c. Traffic Commission (7-3-2012) d. Building & Standards (7-30-2012) e. Main Street Advisory Board (7-27-2012) 7. Discuss July inonthly financial report. Discuss July drainage ditch maintenance report. 9. Discuss dilapidated structure report. 10. Discuss possible future amendments to the City of Paris Charter. Regular Agenda 11. Discuss, public hearing and act on RESOLUTION NO. 2012-47 S APPROVING AND THE CITY COUNCIL OF THE CITY OF PARIS, TEXA , AUTHORIZING A TAX ABATEMENT AGREEMENT WITH CAMPBELL SOUP 36 Regular Council Meeting August 27, 2012 Page 3 SUPPLY COMPANY LLC; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. PEDC Executive Director Steve Gilbert said this proposed abatement was for seven years at a 100 % and would assist the plant in installation of a new product line. He introduced Ray Oldach from Campbell Soup who told the Council that this new product line and associated technologies would create 68 new jobs over the life of the agreement and this was a capital investment of $45,000,000. Mr. Oldach said the Paris plant was competing with plants in Michigan and North Carolina for this expansion and that the folks at Campbell Soup's headquarters were very impressed with this incentive package. Mr. Oldach complimented PEDC, Mayor Hashmi and Paris officials as they were instrumental in getting this investment in Paris. Council Member Frierson expressed his appreciation to Campbell Soup, PEDC and Mayor Hashmi. Mayor Hashmi opened the public hearing and asked for anyone wishing to speak in support of this item, to please come forward. No one spoke. Mayor Hashmi asked for anyone wishing to speak in opposition to this item, to please come forward. With no one speaking, Mayor Hashmi closed the public hearing. A Motion to approve the Tax Abatement was made by Council Member Frierson and seconded by Council Member Wright. Motion carried, 7 ayes - 0 nays. Mayor Hashmi asked that item 13 be moved forward. A Motion to move item 13 forward was made by Council Member Frierson and seconded by Council Member Drake. Motion carried, 7 ayes - 0 nays. 13. Discuss and act on a RESOLUTION OF THE CITY COUNCIL OF PARIS, TEXAS, RESCINDING THE CONTRACT AWARD TO CLASSIC PROTECTIVE COATINGS AND AWARDING A CONTRACT TO MK PAINTING FOR THE REHABILITATION OF THE EAST ELEVATED WATER STORAGE TANK; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTNE DATE. Public Works Director Ron Sullivan said at the meeting of May 14t" the City Council awarded the contract to Classic Protective Coatings. He said despite the efforts of the City and the City's consultant, they had been unsuccessful in executing a contract with the low bidder. Mr. Sullivan also said the most recent communications with the contractor reflected they had been stalling for time and more recently asked for additional funds in the amount of $40,000. He stated that the consultant had contacted the second low bidder MK Painting and he indicated he would honor his bid of $837,000 for the base bid and that additives one and two would only be used if necessary. Mr. Sullivan recommended passing this resolution rescinding the contract to Classic Protective Coatings and awarding the contract to MK Painting. City Manager John Godwin said he would like to also discuss this item in executive session under contemplated litigation, based on a conversation that had taken place within the last hour. 37 Regular Council Meeting August 27, 2012 Page 4 A Motion to table this item was made by Council Member Frierson and seconded by Council Member Drake. Motion carried, 7 ayes - 0 nays. Mayor Hashmi asked for a Motion to bring item 14 forward. A Motion to move item 14 forward was made by Council Member Frierson and seconded by Council Member Drake. Motion carried, 7 ayes - 0 nays. 14. Convene into Executive Session pursuant to Section 551.071 of the Texas Government Code, Consultation with Attorney, to receive legal advice from the City Attorney about pending or contemplated litigation and/or on matters in which the duty of an attorney to his client under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter, as follows: • Development Corporation Act; • Ranger Abbott, 125 41s` S.W. Mayor Hashmi said the Ranger Abbott matter was going to be postponed to a later date. Mayor Hashmi said he understood there was legal advice with regard to the Development Corporation Act, but that it was not pending or contemplated litigation and asked why it was in executive session. Mr. McIlyar said because the item fell under Section 551.071 for legal advice. Mayor Hashmi convened City Council into executive session at 6:05 p.m. 15. Reconvene into open session and possibly take action on those matters discussed in Executive Session. Mayor Hashmi reconvened City Council into open session at 6:49 p.m. and announced that item 13 would be placed on at a future agenda. Mayor Hashmi said he would like to discuss the Development Corporation Act and asked Mr. McIlyar to give a brief history. Mr. McIlyar said the Economic Development Corporation and the Paris City Council worked together on economic development projects and recently there had been questions of whether expenditures of 4A tax money needed to go before the City Council far approval on each and every instance. Mr. McIlyar said he did believe that State Law required that. He also said there was history that City Council had tried to review and approve significant economic development corporation projects. Mayor Hashmi asked for comments from PEDC Board Chairman Doug Wehrman. Mr. Wehrman said PEDC was aware of the people's money, He also said that sometimes decisions had to be made very quickly with regard to incentives to get or retain industry and that through the years the PEDC budget was approved by the Council. He suggested that the Council place a dollar figure of over $500,000 on projects that had to go to Council. Mayor Hashmi said it was the role of the City Council and required by State Law that Council approve the PEDC budget and the budget contained line items for projects. He also said Council needed to make a decision if they wanted to put a dollar amount on projects that had to be brought to Council for approvaL Council Member Wright said that everyone wanted the same goals, which included more jobs. He said everyone realized PEDC funds were taxpayer's money and that everyone realized they could call a special meeting within seventy-two hours if needed. 38 Regular Council Meeting August 27, 2012 Page 5 A Motion requiring that all projects over $400,000 be brought to City Council for approval was made by Council Member Wright and seconded by Council Member Frierson. Motion carried, 7 ayes - 0 nays. Mayor Hashmi moved to item 12. 12. Discussion on the 2012-2013 Budget for the City of Paris. Mayor Hashmi said he had provided a comparison chart of similar sized cities and their budgets to reflect what other cities were doing. He noted that Paris' general fund had more in reserves than any of the other cities and that the City of Marshall had a combination Fire/ EMS Department. He called upon Chief Hundley and Chief Grooms to give an explanation of their staffing levels. Based on 2008 State statistics, Chief Hundley gave a police call comparison between Paris Police Department and other police departments. Mayor Hashmi asked that the department heads be present at the budget workshops when their budgets were to be discussed. Council Member Wright suggested that the department heads be scheduled and that Mr. Godwin inform Council of which departments would be discussed on which days. Mr. Godwin asked Council how many meetings they were going to plan. Mayor Hashmi said they were scheduled for Tuesday, Wednesday, and Thursday but could go further if needed. It was a consensus of Council to begin the meetings at 5:00 p.m. Mr. Godwin asked Council if they had items they needed staff to research, to please let him know so that staff could have it ready for Council. 16. Consider and approve future events far City Council and/or City Staff pursuant to Resolution No. 2004-081. Mayor Hashmi reminded everyone of the budget workshops scheduled for September 4, 5, 6, and 7 at 5:00 p.m. if needed. 17. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Frierson and was seconded by Council Member Drake. Motion carried, 7 ayes - 0 nays. The meeting was adjourned at 7:15 p.m. A.J. HASHMI, MAYOR JANICE ELLIS, CITY CLERK 39