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02 City Council (06/17/02)MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL June 17, 2002 The City Council of the City of Paris met in special session, Monday, June 17, 2002, at 6:00 P.M., Paris Junior College, 2400 Clarksville Street, Room 1016, Paris, Texas. Mayor Michael J. Pfiester called the meeting to order with the following Council Members present: John F. Bell, Richard Manning, Joe E. McCarthy, Francine Neeley, Willie J. Weekly, Sr., and Benny Plata. Also present were City Manager Michael E. Malone, City Attorney Larry W. Schenk, and City Clerk Mattie Cunningham. Karen Wilkerson came forward presenting a power point presentation regarding historical preservation of structures in the City of Paris. Ms. Wilkerson also presented information on being a certified city, the benefits that the city would have, and how to qualify as a certified city. ORDINANCE NO. 2002-033 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AMENDING CHAPTER 7, ARTICLE IV, SECTION 7-71 THROUGH 7-100 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, ENTITLED "MOVING OF BUILDINGS," TO REDESIGNATE SAID ARTICLE AS ARTICLE V TO CHAPTER 7 AND TO RENUMBER SAID SECTIONS AS SECTIONS 7-101 THROUGH 7-130 RESPECTIVELY; AMENDING CHAPTER 7, ARTICLE V, SECTIONS 7-101 THROUGH 7-119 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, ENTITLED "MECHANICAL REGULATIONS, " TO REDISIGNATE SAID ARTICLE, AS ARTICLE VI TO CHAPTER 7 AND TO RENUMBER SAID SECTIONS AS SECTIONS 7-131 THROUGH 7-150 RESPECTIVELY; AMENDING CHAPTER 2 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, BY REPEALING ARTICLE VI OF CHAPTER 2, SECTIONS 2-156 THROUGH 2-158 ENTITLED "HISTORIC LANDMARK PRESERVATION COMMITTEE' ; AMENDING CHAPTER 7 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS TO ADOPT A NEW ARTICLE VII, SECTIONS 7- 151 THROUGH 7-164 ENTITLED "HISTORIC PRESERVATION"; ESTABLISHING THE PARIS HISTORIC PRESERVATION COMMISSION; City Council Meeting June 17, 2002 Page 2 AUTHORIZING THE DESIGNATION OF LANDMARKS AND HISTORIC DISTRICTS; PROVIDING FOR THE ISSUANCE OF CERTIF'ICATES OF APPROPRIATENESS; REGULATING THE ISSUANCE OF DEMOLITION PERMITS FOR HISTORIC LANDMARKS OR STRUCTURES WITHIN A HISTORIC DISTRICT; PROVIDING FOR RELIEF ON THE BASIS OF HARDSHIP; PROVIDING FOR ENFORCEMENT; PROVIDING FOR PENALTIES; PROVIDING FOR APPEALS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE, WAS PRESENTED. Mayor Pro Tem Manning stated that in reading the proposed ordinance, he had some concerns as to whether the city will be dictating what color a person can use on a historical home and things of that nature. He wanted to be sure there was not something in the ordinance that he had overlooked under the historical districts. City Attorney Schenk read that portion of the ordinance and called attention to the portions concerning minor alterations. Ron Emrich came forward telling the City Council that he actually helped the community group draft this proposed ordinance and that he does this for a living. Mr. Emrich said that tonight the City Council is creating a format for an enabling ordinance and is not actually designating any property as a historic district at this time. It is the process outlined in the ordinance that is being considered tonight. At a future date City Council will have to create one or more historical districts. A part of this second ordinance would be design guidelines for each historic district that is created. An example would be the disallowance of flourescent colors. Mr. Emrich said by adopting the enabling ordinance tonight, the Council would not actually be applying this to any specific property in Paris nor is the City Council establishing specific guidelines. Specific guidelines would be established at a later date. Mr. Emrich said it was his hope that the City Council will create a Preservation City Council Meeting June 17, 2002 Page 3 Commission at this meeting, which will come back to the Council at a future date with a recommendation for a historical district to cover a certain number of blocks or area, which will be incorporated as part of the Zoning Code. He said at that time, they will recommend guidelines for that district. On a question by Councilman Plata regarding grants, Mr. Emrich advised there were no grants available for homeowners at this time. He did say that for commercial property owners in historic districts there are federal tax benefits. Mr. Emrich advised that many cities across the state have created a local property tax incentive to homeowners in these historic districts that give a temporary property tax abatement for rehabilitation to the houses. Councilwoman Neeley asked City Attorney Schenk about the relief on the basis of hardship and wanted to know what that means. City Attorney Schenk advised that this is an opportunity for hardship for variance from being required to comply fully to the requirements. Suzy Harper came forward pointing out that on page 12 of the proposed ordinance that demolition permits issued pursuant to orders of the Building and Standards Commission are exempted. She advised that this removes the Historic Preservation Commission from any role in reviewing, commenting on or delaying these demolitions and she felt that the language needs to be clarified. City Attorney Schenk said that it does not do that at all. He advised that when the previous ordinance was adopted creating the Building and Standards Commission, there is a section in that ordinance (Section 7-50) that obligates every case that the Code Inspectors bring forward to go through a preliminary review process by this new commission before it can go back to the Building and Standards Commission. City Attorney Schenk explained the total process concerning demolition permits. John Kelly, President of the Board of the Agape House Worldwide Ministries which is renovating the Old Lamar County Medical Center on West Washington Street, came forward. Mr. Kelley wanted to get clarification from the city of the City Council Meeting June 17, 2002 Page 4 ramifications of this ordinance and how it will help or hinder their efforts. Mr. Kelley said there has been maj or renovation to this building in the last year and explained the type of renovation that has occurred. He said they have other plans such as putting a wheelchair ramp on the building to make it handicap accessible. Also, they were told they needed to install a fire escape on the west side of the building to match the east side, but wanted to know how that would fit into the ordinance requirements. Mr. Kelly said Leadership Lamar County has chosen this building as one of their main projects and they are lining up businesses, industries, and individuals to do more work on the building. They are on the verge of having the roof redone and Chip Harper is working with them on that, but because of these proposed changes, they do not know if Mr. Harper should proceed. City Attorney Schenk advised that first, this building will have to be included in a historic district or designated as a historical landmark. The City Attorney felt that everything that has been done to the building to date, if it falls into those categories will not be affected by this ordinance. If it does fit into one of those categories, and there is additional work to be accomplished, those regulations and zoning classifications are not going to be adopted through the city's formal process of doing so. There will have to be public hearings on zoning changes, which will require similar public hearings and notices to be given, and will probably have to give notice to everyone in a particular historic district including those located outside the two hundred feet. Mr. Kelly wanted to know about any requirements regarding the interior of a historical building. Ron Emrich came forward explaining that, according to state law, historical ordinances cannot apply to the interior of a historic building. David Phillips, 733 Church Street, came forward stating that for the last fifteen years, he has done everything that he could do to improve, maintain, and restore his property. Mr. Phillips was concerned with the fact that if he changed his porch light or put new guttering on his house he would have to get a permit in order to do this. The City Attorney advised that this ordinance does not mandate City Council Meeting June 17, 2002 Page 5 that. He said what this ordinance does is to define the outer limits or the parameters of what is to be done, which is the framework. The specifics as to how detailed and limited the changes will be in a specific district are not yet known. City Attorney Schenk said the language in the ordinance is intended to identify those kinds of changes that could be the kind of changes that are considered minor alterations and does not require the process to go through the extensive process of review. It could be a simple matter of coming to the city and requesting a minor change. That is something that would be delegated to the Director of Community Development. Mr. Emrich came forward discussing this issue with Mr. Phillips and City Attorney Schenk. Mr. Phillips mentioned that there are several occupied homes where some work has begun, but they are in a state of severe disrepair and have been for a long time. He said it seems that this ordinance does not deal with that at all, yet those are some of the greatest eyesores in the community. City Attorney Schenk advised that under the ordinance that deals with unoccupied substandard buildings that could be subject to being torn down by order of the Building & Standards Commission, there are cases that will be brought forward first for several good reasons, which this Council debated and discussed. He said that this ordinance under consideration applies to occupied structures that are going to be changed if they are in a historical district. After further discussion, a motion was made by Councilwoman Neeley, seconded by Councilman Bell, for adoption of the ordinance. The motion carried 7 ayes, 0 nays. Mayor Pfiester called for consideration of and action on a resolution appointing members to the Buildings and Standards Commission. Mayor Pfiester advised the City Council that this item had been tabled at the June 10, 2002, meeting and if they wished to consider this item, a motion was needed to bring it from the table. A motion was made by Mayor Pro Tem Manning, seconded by Councilwoman Neeley, to bring this matter from the table. The motion carried City Council Meeting June 17, 2002 Page 6 7 ayes, 0 nays. Resolution No. 2002-111, appointing Brad Archer, Mary Crumpler, and Chad Brown to the Building and Standards Commission of the City of Paris for terms of one year, beginning July 1, 2002, and ending June 30, 2003; appointing Lucius Joe, Jr., Tommy Robinson, Harrell Tippitt, and Mark Rothfuss for terms of two years beginning July 1, 2002, and ending June 30, 2004; appointing Vic Ressler, Jr., and Ward Hall as alternate members to the Building and Standards Commission of the City of Paris for terms of one year, beginning July 1, 2002, and ending June 30, 2003; and appointing Billy Hill and Pike Burkhart as alternate members to the Building and Standards Commission of the City of Paris for terms of two years, beginning July 1, 2002, and ending June 30, 2004, was presented. A motion was made by Councilwoman Neeley, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2002-112, appointing Paul Denney, Arvin Starrett, Linda Ryan, and Ann Rogers to serve as members of the Historic Preservation Commission of the City of Paris for terms of one year, beginning August 1, 2002, and ending July 31, 2003, or until their successors are appointed; appointing Claudia Hunt, Jerry Raper, and Sue Lancaster to serve as members of the Historic Preservation Commission of the City of Paris for terms of two years, beginning August 1, 2002, and ending July 31, 2004, or until their successors are appointed; appointing Barbara Wilson to serve as an alternate member of the Historic Preservation Commission of the City of Paris for a term of one year, beginning August 1, 2002, and ending July 31, 2003, or until her successor is appointed; and appointing Becki Norment to serve as an alternate member of the Historic Preservation Commission of the City of Paris for a term of two years, beginning August 1, 2002, and ending July 31, 2004, or until her successor is appointed, was presented. A motion was made by Councilman McCarthy, seconded by Mayor Pro Tem City Council Meeting June 17, 2002 Page 7 Manning, for approval of the resolution. The motion carried 7 ayes, 0 nays. A motion was made by Councilwoman Neeley, seconded by Councilman Plata, to table action on a resolution appointing an alternate member to the Board of Adjustment. The motion carried 7 ayes, 0 nays. Mayor Pfiester called for discussion of and possible action on locking water meters and advised that there has been a lot of concern about people turning water meters on when the house has been vacated. It has been the practice of the city to bill the owner if it is rental property and will not allow the water to be turned on until that charge has been satisfied. Councilman Plata voiced his concern regarding the present policy of charging a fee of $20.00 when a meter or water cut-off is locked. Mayor Pfiester explained that when someone moves out of a rental property the city takes a meter reading and locks the valve on the water meter to keep people from turning the water on and using the water. Gene Anderson, Director of Finance, came forward stating that approximately 30% of the city's meters are lockable at this time, but they do not have locks on them. Councilman Plata presented pictures of several different styles of locks used by cities and discussed those with the City Council. Mr. Anderson said the current city policy is if they find the water on without an account and if they can locate who lived there, the city would first go to them, but if they cannot be located, then the city goes to the landlord for the cost of the water used. Mayor Pfiester called for a show of hands of the Council Members who would like to change that policy. A show of hands of 4 to 3 to change the policy was City Council Meeting June 17, 2002 Page 8 noted. A motion was made by Councilman Weekly, seconded by Councilman McCarthy, to allow city staff to deal with this problem and bring back to the City Council a different policy in dealing with locking water cut-offs. The motion carried 7 ayes, 0 nays. City Manager Malone advised that the next item was placed on the agenda at the request of Mayor Pfiester, which was discussion of and possible action on the following preliminary revenue figures and potential additional expenses as they relate to goals and objectives of Council Members. He said on this request the City Council has been furnished with preliminary revenue figures and potentially additional expenses that might be considered by the City Council relatively to any goals and objectives they might have. City Manager Malone added that the city was more than one-half a million dollars in the red in the Water and Sewer Fund and that this is something to be considered when deciding to purchase locks and meter cut-offs. The Mayor asked if there were any other issues that the Council Members would like to see changed, or to be brought up in future meetings. Councilman Plata stated that he would like to see the departments not go up but cut their budgets back and just get what they really need. Councilman Bell stated that this was done last year and we held the tax rate the same as the previous year. He pointed out that they were going to do a water rate study and felt that everyone involved knows there will probably be an increase in the water and sewer rates. Councilman Bell there has not been a increase in these rates in three years. Mayor Pro Tem Manning wanted to know how they were going to come up with $98,000.00 of property taxes that are below budget projections. Mayor Pfiester said they could come up with a way to save expenses. City Council Meeting June 17, 2002 Page 9 City Manager Malone advised that out of the two maj or funds that the city has, the Director of Finance has given him preliminary revenue estimates. He said under the General Fund, the current property taxes are projected to be $5,901,110.00. That would mean in this fiscal year, the city would be $98,000.00 below the amount projected as income in property taxes. The City Manager said the delinquent tax collection is $33,000.00 above the projection which will make the shortfall approximately $65,000.00. The one and one-fourth cent sales taxes are projected to be $4,484,385.00; which is $515,615.00 below budget for this fiscal year. He said this means that the city does not have the revenue to support the budget this year. City Manager Malone said the economic forecast calls for a gradual and modest economic rebound. Mr. Malone said the city's TXU Gas franchise tax is projected to turnout $240,000.00 and that is $96,000. 00 below budget. The TXU Electric franchise tax payment was received in the amount of $1,662,855.00, which is $66,467.00 over the budgeted amount. The interest revenue is proj ected to be $160,000.00 and that is $90,000.00 below the budgeted amount, which is due to low inflation levels continuing to hold interest rates down. City Manager Malone said the Southwestern Bell franchise tax is projected to be $129,830.00 and that is $62,170.00 below budget. City Manager Malone said the water and sewer charges are projected to be $3,880,325.00 and that is $179,675.00 below budget. He said this is assuming a mild summer similar to last year. The City Manager advised that the industrial surcharges are projected to be $175,000.00, which is $50,000.00 below budget. The water sales are projected to be $360,304.00 below the budgeted amount. City Manager Malone reminded Council that, as was discussed with the City Council during last year's budget workshops, new water and sewer rates were needed along with annual updates. He said that this is probably a situation where the City Council will need to cut some expenditures and raise the rates. City Manager Malone advised that there is a possibility of additional revenues from ad valorem taxes due to the new values being assigned, but the new values City Council Meeting June 17, 2002 Page 10 have not been finalized at this time. The City Manager stated that the city has received a petition from the Firefighters Association asking for an election for a pay increase. Information about what the pay increase might cost has been furnished to the City CounciL Mr. Malone said that the cost could be as much as five cents in addition to the current tax rate. City Manager Malone roughly estimated that the city would gain revenue of approximately $300,000.00 due to the additional values if we keep the same rate, and pointed out that the loss of sales tax and replacing it with ad valorem tax would approximate about five cents, and the possible cost of the pay referendum would be about five cents if it passed, and the cost of the new debt for the police and courts building could be as much as five cents. The city manager pointed out that it was possible that it might take fifteen cents to be added to the present sixty-one cent tax rate to cover these increases. Mayor Pfiester requested that the City Council receive the proposed budget as soon as possible. A motion was made by Councilman McCarthy, seconded by Mayor Pro Tem Manning, to adjourn the meeting. The motion carried 7 ayes, 0 nays. MICHAEL J. PFIESTER, MAYOR ATTEST: MATTIE CUNNINGHAM, CITY CLERK