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02 City Council (01/13/03)MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL CITY OF PARIS January 13, 2003 The City Council of the City of Paris met in regular session, Monday, January 13, 2003, at 6:00 P. M., Paris Junior College, Applied Technology Building, Room 1206, 2400 Clarksville Street, 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 Weekly, Sr., and Benny Plata. Also present were City Manager Michael E. Malone, City Attorney Larry W. Schenk, and City Clerk Mattie Cunningham. Invocation was given by Charles Olson of the Christian Fellowship Church. City Manager Malone presented the minutes of the Planning and Zoning Commission's meeting of January 6, 2003, and they are attached hereto as Exhibit A to these minutes. Mayor Pfiester declared the public hearing open on the petition of Ralph Rooks for a change in zoning from an Agricultural District (A) to a Commercial District (C) on Lot 1, City Block 307-B, being located in the 3700 Block of N. Main Street. Mayor Pfiester called for proponents to appear, and Ralph Rooks came forward telling the City Council that he has a used car dealership on Highway 271 North, Rooks Auto Sales. Mr. Rooks said they have had this property for four years and they also own the property next to this location. Mr. Rooks said they need to get the property rezoned so they can expand their business and have more parking and display area. Mr. Rooks asked for the City Council's consideration. No one else appeared, and the public hearing was declared closed. ORDINANCE NO. 2003-001 Regular Meeting of the City Council Jan 13, 2003 Page 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, PARIS, TEXAS, AND CHANGING THE BOUNDARIES ESTABLISHED BY THE ZONING MAP OF SAID CITY; ESTABLISHING A COMMERCIAL DISTRICT (C) ON LOT 1, CITY BLOCK 307-B, ON PROPERTY BELONGING TO RALPH ROOKS, SO AS TO INCLUDE THEREIN TERRITORY FORMERLY DESIGNATED AS AN AGRICULTURAL DISTRICT (A); DESIGNATING THE BOUNDARIES OF THE COMMERCIAL DISTRICT ©) SO ESTABLISHED; PROVIDING FOR A PENALTY NOT TO EXCEED $2,000.00; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EFFECTIVE DATE, WAS PRESENTED. A motion was made by Councilman Weekly, seconded by Councilman McCarthy, for adoption of the ordinance. The motion carried 7 ayes, 0 nays. Mayor Pfiester announced the next order of business was approval of minutes from previous meetings. The City Manager advised that the City Council had been furnished with the minutes of previous meetings and the City Council may want to take those and read over them as they were not on the computer disk. No action was taken to approve the minutes furnished. City Manager Malone advised that the minutes from the Paris Economic Development corporation had been furnished with no action be required. Gary Vest, Executive Director of the Paris Economic Development Corporation, came forward presenting a power point presentation of the Annual Report for the year 2002. Mr. Vest reported that they advertised in a number of publications throughout the year. The first one they advertised in, "Plant Sites and Parks", generated 28 leads. A copy of the ad was passed around. There was another advertisement in "Trade and Commerce" which resulted in 24 leads. They also Regular Meeting of the City Council Jan 13, 2003 Page 3 received 20 leads from ~Business Facilities"; 13 leads from ~Area Development"; and 10 leads from ~Outlook". Other magazines used were ~Global Expansion" and ~Business Expansion". Mr. Vest pointed out that some of the other advertisement they did throughout the year was in the %an Jose Mercury News," the ~Dallas Morning News", the ~Houston Chronicle" and the ~Dallas Business Journal". Mr. Vest informed the Board that most of the advertisements they did in these newspapers were for the Oliver Rubber Building or the Kmart Building. Mr. Vest said they also advertised in the ~Dallas Industrial Guide", and furnished a copy for the Board to review. Mr. Vest said they also did a special co-op with Oncor, TXU, McKinney, Sherman, Gainesville, Denison, and Sulphur Springs where there was a special section in ~Blacks' Guide", which is primarily in the Dallas market. Mr. Vest stated that they attended several trade shows during the year: Bio- Tech Medical Device in San Diego, California, the Manufacturing Jewelers and Silversmiths of America in New York, and the North American Manufacturing Association in Chicago. Mr. Vest said they did a special show with the Dallas Commercial Realtors in conjunction with Oncor. Mr. Vest told the Board that this year they were going to the Commercial Realtor Show. Mr. Vest said there are a lot of associations that they have through the PEDC such as NETMOB which is the Northeast Texas Regional Mobility Council and he is the chairman elect of that association. Also the TEDC, which is the Texas Economic Development Council, and ACCRO, which is the American Chambers of Commerce Researchers Association. Mr. Vest informed the Board that the quarterly cost of living survey, which was done through ACCRO, is complete. Other associations they belong to are Texas Department of Economic Development, Northeast Texas Economic Development Roundtable, East Texas Gulf Highway Association, Texas Good Roads Association, International Economic Development Council and the Southern Regular Meeting of the City Council Jan 13, 2003 Page 4 Economic Development Council. Mr. Vest announced that the new web page is up if anyone wanted to check it out at www.paristexas.com. Mr. Vest said they have already had a lot of response to the web site and it is more user friendly. Mr. Vest said they placed two billboards on 1-30 and showed a picture of each of the billboards. Mr. Vest announced that they had 12 prospects during the year from the Texas Economic Development Corporation, and one of those developed into a prospect visit. There were 6 other %uspect" leads that they met with on possible projects. Mr. Vest said some of the projects that they did this year were Paris Custom Trailer for an expansion, Hydro-Conduit water main extension, and an EDA Application for Sara Lee to try to build a rail spur into Sara Lee. They did a wage and benefit survey and passed out a copy of the survey for the council to review. Mr. Vest said they also did a labor survey by telephone. It was done by this same company, which is the Economic Development Services out of Irving. Mr. Vest advised the Board that they did the Cox Field Airport brochure, with Tommy Haynes doing the bulk of the work on that survey. Another project they started this year was the Northwest Industrial District. He said this is going to be a major project. Mr. Vest showed a photograph before and after they started the project City Manager Malone announced that the City Council had been furnished minutes of the Paris Public Library Advisory Board, Housing Authority of the City of Paris, and Band Commission with no action being required. Resolution No. 2003-001, accepting the Texas State Library and Archives Commission Loan Star Libraries Grant in the amount of $5,862.00, requiring no matching funds from the City of Paris, was presented. A motion was made Regular Meeting of the City Council Jan 13, 2003 Page 5 by Councilman Plata, seconded by Councilwoman Neeley, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-002, stating the City of Paris's continued support of the Regional Controlled Substance Apprehension Program and the continuing efforts of the Tri-County Drug Task Force to target illicit controlled substance and organized criminal activity, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Bell, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-003,approving and authorizing a grant application to the Office of the Governor, Criminal Justice Division, Texas Narcotics Control Program, for a Regional Controlled Substance Apprehension Program Grant in the amount of $441,954.00, with the City of Paris providing $15,500.00 in matching funds, authorizing the execution of an interagency agreement, was presented. A motion was made by Councilwoman Neeley, seconded by Mayor Pro Tem Manning, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-004, approving the submission of an application to the Rural Economic and Community Development Division from Charles Fulbright for $100,000.00 of Rural Business Enterprise Grant - Revolving Loan Fund (RBEG-RLF) funds to construct a restaurant at 1490 Fitzhugh Avenue, was presented. A motion was made by Councilman Weekly to approve the resolution. The motion was seconded by Mayor Pro Tem Manning and carried 7 ayes, 0 nays. Resolution No. 2003-005, affirming that the City of Paris has complied with the requirements of the Public Funds Investment Act, was presented. A motion was made by Councilman McCarthy, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-006, approving and authorizing the execution of Contract Regular Meeting of the City Council Jan 13, 2003 Page 6 Change Notice No. 02 (Attachment No. 05) of the Contract for Public Health Services, TDH Document No. 7560022067-2003, was presented. A motion was made by Councilman Bell, seconded by Councilwoman Neeley, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-007, accepting the bid of the Liberty National Bank in Paris to act as City Depository for the period beginning March 1, 2003, and ending February 28, 2005, and authorizing and directing the Mayor to execute, on behalf of the City of Paris, the contract with Liberty National Bank in Paris to act as depository for the City of Paris, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilwoman Neeley, for approval of the resolution. The motion carried 7 ayes, 0 nays. Philip Cecil, Chairman of the Liberty National Bank in Paris, appeared before the City Council stating that they had been associated financially with the City of Paris for a number of years and look forward to serving in that capacity for the coming two years. Resolution No. 2003-008, approving the form of Election and the form of Notice of Enrollees under 42 U.S.C. Sec. 300gg-21, which exempts the City of Paris from the requirements of the Health Insurance Portability and Accountability Act (HIPAA) and the Public Health Service Act (PHS), was presented. A motion was made by Councilman Bell, seconded by Mayor Pro Tem, Manning, for approval of the resolution. The motion carried 7 ayes, 0 nays. Gene Anderson, Director of Finance, explained that when a city is self-insured like the City of Paris, the federal law allows the city to opt-out of new requirements that may be imposed by the federal government on private plans. Mr. Anderson advised that the City of Paris normally and routinely opts out of those things as a cost saving measure. He said he did not have a list of what it excludes but it is things like the city would normally have a pre-existing condition limitation for the first two years of our insurance policy, and that is Regular Meeting of the City Council Jan 13, 2003 Page 7 something that if the city did not opt-out of, the city would not have that cost savings. Mr. Anderson said he felt that it saves thousands of dollars over a period of years. Resolution No. 2002-009, approving and authorizing the execution of a Memorandum of Agreement with the Texas Water Development Board and the U. S. Army Corps of Engineers, Fort Worth District, and a Letter Agreement with the U. S. Army Corps of Engineers, Fort Worth District, for the performance of a hydrographic survey at Lake Crook, was presented. City Manager Malone explained that basically this survey will give the City of Paris an idea of how much Lake Crook has silted in and how much water is available from Lake Crook, which is the city's secondary water source and emergency backup. Herb Campbell, Director of Utilities, came forward telling the City Council that there has not been a study done on Lake Crook for many years. Mr. Campbell said that as Lake Crook is our emergency water supply, the city needs to know how much water can be delivered from this source. Mr. Campbell also gave background information on Lake Crook when it was the number one source of water for the city. After discussion, a motion was made by Councilman McCarthy, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2002-010, authorizing and directing the City Manager to execute on behalf of the City of Paris, and the City Clerk to attest to a Letter of Agreement by and between the City of Paris and the Texas Historical Commission to authorize the City to continue as the '~Official Graduate Main Street City" and to participate as a Graduate City in the Texas Main Street Program, was presented. A motion was made by Councilwoman Neeley, seconded by Councilman Plata, for approval of the resolution. The motion Regular Meeting of the City Council Jan 13, 2003 Page 8 carried 7 ayes, 0 nays. Resolution No. 2003-011, authorizing the advertisement for bids for the purchase of Flexible Base Material (White Rock) for use in the Street Division of the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-012, authorizing the advertisement for bids for the purchase of Portland Cement Concrete for use in the various Divisions of the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-013, authorizing the advertisement for bids for the purchase of CRS-2 Emulsion Asphalt for use in the Street Division of the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-014, authorizing the advertisement for bids for the purchase of Flexible Base Material (Red Rock) for use in the Street Division of the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-015, authorizing the advertisement for bids for the purchase of Hot Mix Cold Laid Asphalt, Type ~B" (Fine Base) for use in the Street Division of the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-016, authorizing the advertisement for bids for the purchase of SS-1 Emulsion Asphalt (Tack Oil) for use in the Street Division of Regular Meeting of the City Council Jan 13, 2003 Page 9 the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-017, authorizing the advertisement for bids for the purchase of Hot Mix Cold Laid Asphalt, Type ~A" (Coarse Base), for use in the Street Division of the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-018, authorizing the advertisement for bids for the purchase of Aggregate Cover Stone (Type B, Grade 4, Uncoated) for use in the Street Division of the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-019, authorizing the advertisement for bids for the purchase of Hot Mix Cold Laid Asphalt, Type ~F" (Fine Mixture) for use in the Street Division of the Public Works Department, was presented. A motion was made by Mayor Pro Tem Manning, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-020, authorizing the procurement of right-of-way for the TXDOT-Funded Project to construct a left-hand turn lane on 20th Street N. E. between E. Price Street and Kyle Street, was presented. A motion was made by Councilman Plata, seconded by Mayor Pro Tem Manning, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-021, accepting and letting the bid of APAC-Texas, Inc, Buster Paving Division for the construction of water lines associated with the construction ora new ~'Elevated Water Storage Tank - Bonham Street Project," in the amount orS 1,834,517.16, was presented. A motion was made was made by Councilman McCarthy, seconded by Councilman Weekly, for approval of the resolution. The motion carried 7 ayes, 0 nays. Regular Meeting of the City Council Jan 13, 2003 Page 10 Resolution No. 2003-022, resolving that the drainage easement from J. B. Lowry for the Main Street Town Homes Development Project, be approved and accepted, was presented. A motion was made by Councilman Bell, seconded by Mayor Pro Tem Manning, for approval of the resolution. Resolution No. 2003-023, approving Addendum No. One to the agreement for engineering services with Bucher Willis & Ratliff Corporation for the Water Distribution Transmission Lines, Water Storage Facilities, and System Analysis Studies, was presented. A motion was made by Councilman Bell, seconded by Councilwoman Neeley, for approval of the resolution. The motion carried 7 ayes, 0 nays. Resolution No. 2003-024, approving and authorizing the execution ora Mutual Cooperation Agreement for Extraterritorial Peace Officer Jurisdiction related to a Regional Anti-Drug Abuse Task Force with the Counties ofLamar, Fannin, Red River, the City of Paris, the City of Clarksville and the Felony Prosecutors' Offices in Lamar County, Fannin County, and Red River County, was presented. A motion was made by Councilwoman Neeley, seconded by Mayor Pro Tem Manning, for approval of the resolution. The motion carried 7 ayes, 0 nays. City Attorney Schenk presented the following petitions for rezoning: Mark Easlon, Lot 6, City Block 306-A, from an Office District to a Commercial District; Alma Akins, Lot 3, City Block 54, from a Two-Family Dwelling District to a One-Family Dwelling District No. 3 with Specific Use Permit (39) Manufactured Homes. Mayor Pfiester referred the petitions to the Planning and Zoning Commission for their study and recommendation at their meeting scheduled for February 3, 2003, and before the City Council February 6, 2003. Mayor Pfiester announced that the next item on the agenda was a quarterly financial report from the Director of Finance. Regular Meeting of the City Council Jan 13, 2003 Page 11 Gene Anderson, Director of Finance, came forward telling the City Council that what he has done with the three page report that he has prepared is to give them highlights and to point out key things regarding the revenue and expenditures of the city. Mr. Anderson directed the council's attention to the first page entitled ~Key Operating Funds". He said he pulled the cash and investments line item out because in an organization as large as the City of Paris, where you have a 34 or 35 million dollar budget, cash flow is an important item as it is the life-blood of the organization. He pointed out the cash and investments for the General Fund. He provided the balance as of December 31, 2002, of 4.1 million and below that figure he provided comparable information for the prior year. Mr. Anderson also gave the City Council the same type information for the Water and Sewer Fund, showing a negative of 1.5 million dollars. Mr. Anderson said this situation is the same thing that has been talked about in detail in the last two budget workshops. He said the 9.5 million dollar Water and Sewer Bond Issue that was done is the primary reason there is a problem in the Water and Sewer Fund. Mr. Anderson told the City Council that to fund the 9.5 million dollars, which the city really did not have a choice in doing, puts an additional five of six hundred thousand dollars a year strain on that fund. He said those bonds were issued in the year 2000 and there has not been any sort of rate adjustment since January of 2000. The rates have never been adjusted to compensate for that last bond issue, and as a result, that is the primary reason that the City has the problem in that fund. Mr. Anderson advised that if they would look back over the past three years and look at the non-capital budget, the operating and maintenance part of the budget, it has been basically flat. Mr. Anderson felt this is something that will be addressed in the near future. He said the next item is the Wastewater and Sewer System 2000 Series Construction Fund (9.5 million). Mr. Anderson said there is 7.2 million dollars left and there was a resolution passed tonight authorizing use of some of that money with building of the water tower on Bonham Street and the water Regular Meeting of the City Council Jan 13, 2003 Page 12 line to that, which will be close to four million of that seven million dollars plus a number of other projects that are on the board to be constructed. Mr. Anderson discussed the Tax and Revenue 2000 Services Construction Fund. Of the six million dollars, the city has done several projects and gave an example of the projects that were left to do, such as the Wade Park/Lamar Avenue Drainage Project and the Stillhouse Road Improvement Project. Mr. Anderson advised that the Certificate of Obligation 2002 is the money that the city issued to build the Police and Court Facility. Mr. Anderson pointed out that below the Cash and Investments item, he has two months of operating and three months operating listed, and stressed the need to have a minimum operating cash balance at all times through the year of at least two months of operating budget and three months is preferable to that. Mr. Anderson said there are certain times in the year where the cash balance will exceed that because the cash flows are not equal through the year. He said if he was doing this report at the end of January, the cash balance would be substantially more because the bulk of the property tax revenue comes in during January. Anytime the cash flow gets below the two months operating figure there should be concern. Mr. Anderson said the bond ordinance requirement of 1.263 millions dollars has been shown and in the bond covenant, the city is required in the Water and Sewer Fund to keep an equivalent of one-sixth of the operating and maintenance current budget as a reserve. Mr. Anderson advised that where the city should be, as a minimum, in the Water and Sewer Fund is this 1.2 million dollars. He said that the city is in the hole in this fund and it needs to be addressed. Mr. Anderson said he has given the City Council what the current balances are and emphasized the fact that there are things such as accounts receivable, accounts payable, and contractual obligations that could affect that number, and if he was doing a full accrual set of financial statements, he would account for those. If the City Council would look at the cash number, Mr. Anderson said it should give a quick clue where the City is financially. Regular Meeting of the City Council Jan 13, 2003 Page 13 Mr. Anderson advised that if you compare last years' balance with this years' balance, you will note that it is up to just over a million dollars. He said this is due to a one time settle up payment from TXU and the city received about $130,000.00 from litigation. Also, there were timing differences in other franchise payments, increase in the property tax collections from a larger tax roll, reimbursements received on grants, and increased sales tax collections. Mr. Anderson said that the second page of his report contains key revenue, budget verses actual. The first one listed is current property taxes and only the operating and maintenance part of the tax, not the debt related tax, was considered. He said in the current year 27.62% of the budget was compared to 27.97% received last year. Mr. Anderson stated that property taxes are 24.8% of the General Fund Budget. The sales taxes represents 19.67% of the General Fund Budget. The franchise fees represent 13.08% of the General Fund Budget. The total of these key revenues adds up to be over 50% of the General Fund Budget. Mr. Anderson said in the Water and Sewer Fund the sewer charges represent 37.58% of the Water and Sewer Budget, which is a substantial number. Water sales represent 55.45% of the Water and Sewer Budget. Those two revenues are over 93% of the Water and Sewer budget, and it is critical that the city keeps those two revenues in good shape. Mr. Anderson said the last page of his report is a departmental expenditure summary showing each department's budget, year-to-date actual expenditures through December, 2002. The percentage of the budget that has been expended, the prior year's budget, year-to-day actual expenditure through December, 2001, and the percentage of the budget that has been expended was also shown for comparison. Mr. Anderson pointed out that he did have a footnote regarding the City Council's budget because, by looking at the percentage number, it is misleading because it is so large compared to where they would think it would be. He advised that the reason for this is that the city collects sales tax for the Regular Meeting of the City Council Jan 13, 2003 Page 14 Paris Economic Development Corporation. Mr. Anderson said this is not a revenue for the City of Paris because that revenue is passed on to the Paris Economic Development Corporation through the City Council's budget. Mr. Anderson also explained that even after adjusting for the PEDC transfer, the City Council's expenses are still at 50.47% of their budget. The reason for that is the non-profit organizations and payments on work on the Depot have already been made. Mayor Pfiester called for the presentation of reconciliation of 2001-2002 cost share arrangement between the City of Paris and the County of Lamar for county-wide Emergency Medical Services. Mr. Anderson presented a report on the EMS contract settle-up with Lamar County for the year ending September 30, 2002. Mr. Anderson said this is the information that the City of Paris is required to provide to the county. He said the county's share of the final settle-up cost is 40%, which turned out to be $246,001.20 and the city's 60% share of the operating cost is $369,001.79. He said that was good news. The EMS financial performance exceeded what was projected last year. The refund to the county will be $95,507.80. Kent Klinkerman also came forward and discussed the Emergency Medical Services with the City Council. Councilman McCarthy asked that on the next quarterly report, he would like to have a running report of the employees that have been hired, fired, or retired. There being no further business, a motion was made by Councilman McCarthy, seconded by Councilwoman Neeley, to adjourn the meeting. The motion carried 7 ayes, 0 nays. MICHAEL J. PFIESTER, MAYOR ATTEST: MATTIE CUNNINGHAM, CITY CLERK Regular Meeting of the City Council Jan 13, 2003 Page 15