08.26.13 MINUTESMINUTES OF THE REGULAR CITY COUNCIL MEETING
OF THE CITY OF PARIS, TEXAS
August 26, 2013
The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday,
August 26, 2013, 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 Staff: John Godwin, City Manager; Gene Anderson,
Finance Director; Kent McIlyar, City Attorney;
Janice Ellis, City Clerk; Shawn Napier, City
Engineer; Kent Klinkerman, EMS Director; Larry
Wright, Fire Chief, Bob Hundley, Police Chief;
Doug Harris, Utilities Director; Alan Efrussy,
Planning Director; and Priscilla McAnally, Library
Director
Opening Agenda
Call meeting to order.
Mayor Hashmi called the meeting to order at 5:30 p.m.
2. Invocation.
Reverend Slaughter gave the invocation.
Pledge of Allegiance.
Council Member Grossnickle led the pledge.
3. Citizens' Forum.
Carl Cecil, 305 Lamar Avenue — he wanted to know if there would be public comment
after item 20. Mayor Hashmi said there would not be public comment after the presentation, but
it would be posted for further discussion as a separate agenda item for the next regular council
meeting.
William Strathern, 4905 Trails End, Paris Texas - he requested to be placed on the
agenda of the next regularly scheduled city council meeting to discuss the results of his study
into the recent PEDC activities. He said through the open records act, he requested credit card
expenditures and recently additional data on items which may represent questionable activities
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Page 2
on the part of the PEDC. Mr. Strathern said he had received and analyzed more than $2,100
pages. He said he started worrying about this over a year ago when Council brought up the
option of 4B and that it might provide more flexibility in the use of tax payers' dollars. He said
that suggestion caused uproar and he wondered why. He said the PEDC was first authorized and
funded was by a vote of the citizens for a specific purpose and that purpose being to carry out
industrial development programs. Mr. Strathern said it was important to note that in recent years
the PEDC has not followed the voters' intent. He said he needed to assess whether the PEDC
was adhering to established functions, whether or not the PEDC monies were being spent wisely,
and if the reported growth in jobs was factual. Mayor Hashmi said he would place him on the
agenda.
Rita Haynes and Steve Tucker, Red River Valley Fair Association — they expressed a
need for additional bathrooms, because of the increase of events being held at the fairgrounds.
They asked that City Council consider this request in their budget.
Mayor Pro -Tem Wright closed the citizens' forum.
Consent Agenda
Mayor Pro -Tem Wright inquired of Council Members if they wished to pull any items
from the Consent Agenda for discussion. There being none, a Motion to approve the Consent
Agenda was made by Council Member Lancaster and seconded by Council Member Frierson.
Motion carried, 7 ayes — 0 nays.
5. Approve the minutes from the City Council meetings on July 29, 2013 (special); August
6, 2013 (special); August 12, 2013 (regular); and August 13, 2013 (special).
6. Receive reports and /or minutes from the following boards, commissions, and committees:
a. Historic Preservation Commission (7 -24 -2013)
b. Paris Economic Development Corporation (7 -16 -2013)
c. Building and Standards Commission (7 -18 -2013)
7. Receive July monthly financial report.
8. Receive July drainage ditch maintenance report.
9. Receive dilapidated structure report.
10. Accept the highest responsible bids and authorizing the sale of city properties located at
1060 N. Main Street and 1728 Maple Avenue, Paris, Texas.
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Regular Agenda
11. Presentation by Dr. Hashmi and Patti Clement regarding travel in the City of Paris for
those who are sight impaired.
Mayor Hashmi said he requested this item, because he was influenced by Ms. Clement's
description of travel of blind people in the City. Patti Clement explained that she was an
orientation and mobility specialist. She said that she taught people to safely and efficiently travel
through their environment, and that Lamar County had the highest percentage of blind and low
vision people in all of the surrounding counties. Mayor Hashmi told Ms. Clement if she had
suggestions in helping blind persons that City Council would be glad to review those
suggestions.
12. Conduct a public hearing on the City Manager's proposed Budget for fiscal year 2013-
2014.
Mayor Hashmi opened the public hearing and asked for anyone wishing to speak about
this item, to please come forward. With no one speaking, Mayor Hashmi closed the public
hearing.
13. Discuss the proposed budget for fiscal year 2013 -2014.
Other than items discussed during the budget workshop, Finance Director Gene Anderson
inquired if there was anything else in the proposed budget that Council wanted to change. Mr.
Anderson explained there would have to be a public hearing on proposed increases. Mayor
Hashmi said he would like additional time and if needed, they would call a special meeting.
Council Member Wright said he also wanted additional time, specifically to review contracting
with Hiring Partners for over $280,000 and the possibility of bidding. Council Members Jenkins
and Lancaster both said they would like additional time. Council Member Grossnickle inquired
about the possibility of funding the Civic Center and Sports Complex parking lot repairs. Mr.
Anderson said he had brought that request to Council, as well as the request for additional repairs
on the Trail, but no action had been taken. Mr. Anderson said the increases were for one mower,
one defibrillator, the tool allowance, the Incubator, and a retail recruitment item. He also said the
salary for the city planner was not included in the original budget numbers, which was
discovered this last week. Mr. Anderson said he added that to the list and decreased some other
items so that it was budget neutral. Council Member Grossnickle said he thought additional
bathrooms at the fairgrounds needed to be considered and suggested they look at the estimates.
Mr. Anderson said the general fund was really tight and the Council did have the option to dip
into reserves for part of that. He also said there was money in the water and sewer fund and that
they might be able to fund the City's portion from that for running any necessary water or sewer
lines to that point and any plumbing related items in the existing budget. Mr. Anderson said he
was not proposing to dip into reserves. Council Members Frierson and Grossnickle said they
would also like additional time. Council Member Wright said he was not a proponent of deficit
spending.
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14. Discuss and act on a Resolution calling a public hearing on proposed amendments to the
proposed budget for fiscal year 2013 -2014.
A Motion to table this item was made by Council Member Lancaster and seconded by
Council Member Drake. Motion carried, 7 ayes — 0 nays.
15. Discuss quarter cent sale and use tax approved in 1993 for reduction of property tax rate.
Mayor Hashmi said proposition number 2 of the special election of May 1, 1993, read
"The adoption of an additional sales and use tax within the City of Paris, Texas at the rate of one -
fourth of one percent to be used to reduce the property tax rate." Mayor Hashmi displayed
information regarding the property tax rates beginning in 1992 and cited that in year 2000 -2001
the tax rate was 0.61 with .09262 for debt and .51738 for operation and maintenance expense.
Mayor Hashmi said the tax rate for 2002 -2003 was 0.695, which was the highest it has been and
that it continued on up through 2006, at which time the rate dropped to 0.59225. Mayor Hashmi
read from the State Comptroller's Truth -In- Taxation Guide, the following "Once a taxing unit
has collected the additional sale tax for a year, its property tax revenues will reflect any rate
reduction arising from the additional sales tax. As a result, calculating the effective tax rate will
not require an adjustment for the additional sales tax." Mayor Hashmi asked Mr. Anderson to
explain this statement. Mr. Anderson explained when the voters approved the levy of a quarter
cent sales tax for property tax reduction; the law required the City to adjust the property tax rate
in whatever amount it took to lower the property tax revenue in an amount equal to the sales tax
revenue. He further explained that what the City did was substitute sales tax for property tax and
that was a one -time adjustment. Mr. Anderson said the City dropped the rate about 07.2 when it
was instituted and Mr. Anderson further explained the Truth -In- Taxation meant that once the
adjustment was made, the City did not have to make future adjustments. Mayor Hashmi noted
that he had reviewed minutes from that time period where budget discussions took place and
there was discussion about tax reduction but he did not find where this item was discussed during
those sessions. Mayor Hashmi said in the last two years the City Council has reduced the taxes
and had done so without cutting services or staff. He said that ideally taxes should be cut based
on collection however, the sales tax revenue was not predictable revenue and it could be up or
down. He said if Council was to reduce taxes based on one year and then had a bad year the
following year, Council would have to raise the taxes. Mayor Hashmi said they were required to
maintain five months of reserves and would be left with very little working capital, if all of it
was used to reduce the property taxes. He said if the City ever gets in a financial crunch, they
would have to increase the taxes and the amount of reduction would be miniscule to the
individual taxpayers. Mayor Hashmi said if the citizens of the community still want to entertain
this possibility, he feels that the Council would not have any objection to a discussion. Council
Member Frierson said it was important to know what was going on during the prior years when
City Councils were making decisions over the last decade
16. Discuss and act on policy making authority for the City of Paris.
Council Member Wright said the need for clarification of this issue came with the
appointment of a committee to review the City's policy manual and make recommendations if
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there were needed changes. He said it was discovered that there had been changes made that the
Council did not know about. Council Member Wright inquired who had the authority to make
City policy and asked for an opinion from the City Attorney. City Attorney Kent McIlyar
referenced Section 21 of the City Charter and cited that all powers of the City and the
determination of all matters of policy shall be vested in the City Council. Council Member
Grossnickle inquired if this was about the one change made by Mr. Godwin. Council Member
Wright said there was more than one change. Council Member Drake said as the committee
began reviewing the policy, they learned there had been other changes. Council Member Wright
said they could not go against the Charter and the committee would proceed with the process.
A Motion to table this item pending a report from the committee was made by Council
Member Wright and seconded by Council Member Drake. Motion carried, 7 ayes — 0 nays.
17. Discuss and plan city -wide meetings to be held in individual districts for the purpose of
receiving input from citizens about water and sewer problems in their neighborhoods.
Mr. Anderson said his understanding was that the Council wanted to make sure they hear
from all of the citizens and make it convenient for them to express any problems with water and
sewer. It was a consensus of City Council for each Council Member to hold meetings in their
individual districts to receive input from the residents prior to a final plan being made for the
project. Mayor Hashmi asked that each Council Member contact Mr. Anderson with the date,
time and location of their meetings so that Mr. Anderson could publicize the meetings. Council
Member Frierson reminded everyone that it would be beneficial to have water and sewer
employees at the individual meetings.
18. Discuss and authorize issuing request for qualifications for an engineering firm(s) to
design municipal infrastructure for the City of Paris.
City Engineer Shawn Napier said this item was discussed at the last joint meeting
between the City Council and the CIP Committee. Mr. Napier said the purpose of this item was
to issue a request for qualifications for engineering services with project management. He said
that it could be published in the Paris News, posted on several web -sites and e- mailed to several
companies who have made inquiries. Mr. Napier said it was written so that all proposals must be
received by the City no later than September 27, 2013 at 5:00 p.m. He said that a selection
would have to be made based on a firm's qualifications, rank them based on qualifications and
then negotiate a contract. Mayor Hashmi inquired if it could also be published in the Dallas
Morning News and Mr. Napier answered in the affirmative. Council Member Frierson confirmed
with Mr. Napier that this did not limit the manner in which the projects would take place or one
firm versus multiple firms.
A Motion to move forward was made by Council Member Drake and seconded by
Council Member Frierson. Motion carried, 7 ayes — 0 nays.
19. Discuss and possibly act on an Economic Incentive Agreement by and between the City
of Paris and the Red River Region Business Incubator (R3bi).
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Mr. McIlyar said that Council directed him to prepare a draft agreement between the City
and the Red River Region Incubator for the City's partial funding of the Incubator for 2013-
2014. He said the agreement was forwarded to the Incubator Chair Sydney Young, but he wasn't
sure if she had a lot of time to review it because she had been out of town. He said he was
awaiting input from Mrs. Young. Council Member Wright wanted to know if the agreement
protected the City in the event that a person gives bad advice at the Incubator and a tenant goes
broke. Mr. McIlyar said it was an independent contractor agreement and the City was asking the
Incubator to indemnify the City. He further said that Mrs. Young had forwarded to him a copy
of the Incubator Client Agreement they use with their tenants and it also contained
indemnification and hold harmless language. Council Member Frierson confirmed with Mr.
McIlyar that he had not heard back from Mrs. Young with regard to any proposed changes for
the Incubator.
A Motion to table this item was made by Council Member Drake and seconded by
Council Member Wright. Motion carried, 7 ayes — 0 nays.
20. Presentation by Dr. Hashmi on Paris Economic Development Corporation's expenses,
budget, financial oversight, and policies.
Mayor Hashmi explained the purpose of this presentation was to put in place checks and
balances so in the future no one could say that they were wasteful, unorganized and non-
transparent. He said this presentation was not meant as criticism but to protect the taxpayers'
money from abuse, to institute policies and procedures that protect everyone and to help the City
of Paris to out - perform other cities in securing the most for the money spent on economic
development. Mayor Hashmi said taxpayers' money should be considered as a joint account of
all the people of the community. He said maybe there was an explanation of all of the expenses
but questioned if the City got what it wanted for the money spent. He said PEDC was formed
when the voters approved a proposition for an additional sales and use tax within the City of
Paris, Texas as the rate of one -fourth of one percent to be used for the benefit of a corporation to
carry out industrial development programs consistent with the purposes and duties set out in the
Development Corporation Act of 1979. Mayor Hashmi said the slides he was going to present
were obtained by him through a public information request and he personally paid for the records
and the slides. Mayor Hashmi presented slides depicting credit card statements and credit card
receipts for hotels, airline tickets, meals, alcohol, staff lunches, and working lunches. He noted a
receipt from McCall & Armstrong, a receipt for a hat purchased from a company related to a
PEDC employee, a fee for travel upgrade, car wash receipts, and receipts for personal snacks.
While going through the documents, Mayor Hashmi said for many of the receipts there was no
record of who attended or for what purpose the money was spent.
Mayor Hashmi said there was much more of the same and he could continue, but was not
going to do so. He also said some of the hotel expenses were for Lamar County Day volunteers
and those volunteers were kind enough to travel to Austin, cook burgers and help promote the
City and he wanted to thank them. He said many volunteers could not afford to take off work
and stay overnight. Mayor Hashmi said he thought they should continue with Lamar County
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Days, but that it should be budgeted for a specific amount and he thought there should be a
random selection of people to attend so that everyone had an opportunity to represent the City of
Paris.
He said a better job should have been done at formulating policies. Mayor Hashmi
suggested that PEDC assess the worth of the project at the beginning of the project and that the
project expense be approved by the PEDC Board prior to any funds being spent. He also
recommended that detailed summary reports be prepared on every project that is evaluated and at
the end of every project, whether successful or not, it should be noted for the next time what
should or should not be done to get future projects. He said PEDC should stay within the budget
for the money allocated for the projects. He also recommended that they consider different
approaches in attracting projects such as more brokerage based instead of hiring consultants.
Mayor Hashmi acknowledged it was not always easy to bring manufacturing jobs and that
everyone should be considering what else could be done so that the community as a whole could
improve. Council Member Frierson said the presentation was enlightening, but that the process
was continual and not everything was an exact science. He said it was his understanding that no
one had asked Steve Gilbert about these charges and he found Mr. Gilbert to be very cooperative
with any requests of him, such as a request for more detailed reports. Council Member Frierson
said Mr. Gilbert did a lot of good work, some of which could not be quantified. He also said the
PEDC was reviewing their budget and their spending habits and he was sure that would be a
continual progress. Council Member Frierson said the work done by Mr. Gilbert does not yield
an immediate return on investment and those relationships were so hard to qualify and quantify.
Mayor Hashmi pointed out that he had attempted to contact Steve Gilbert prior to this
presentation on six different occasions, but that Mr. Gilbert never responded. Council Member
Wright said the facts speak for themselves, that they could do a better job and that there needed
to be mover oversight. Council Member Wright also said the PEDC Board was the agency to
start that process and that the City Council should ensure it happens. Council Member Jenkins
said it needs to be better monitored. Council Member Lancaster said tax dollars need to be spent
very carefully and well documented. She said that closer oversight was in order. Council
Member Grossnickle agreed with Council Member Lancaster and added that he believed the
larger expenses were legitimate, because PEDC was meeting with prospective industries to come
to Paris. He also said there seemed to be a lot of general lunches and they should ask Mr. Gilbert
if there was an expense account for that. Council Member Drake said PEDC had brought
businesses to Paris, but there were ways to tighten up. She said there needed to be more
documentation as to how the money is spent and that she was not saying PEDC had done
anything illegal. She also said PEDC needed better reporting to the City and it was her
understanding that the Board was working on some policies.
21. Convene into Executive Session pursuant to Section 551.074 of the Texas Government
Code, to deliberate the appointment, employment, evaluation, reassignment, duties,
discipline, or dismissal of a public officer or employee as follows: city manager.
City Council did not convene into Executive Session.
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22. Reconvene into Open Session and possible take action on those matters discussed in
Executive Session.
23. Consider and approve future events for City Council and /or City Staff pursuant to
Resolution No. 2004 -081.
Nothing was referenced.
24. 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 7:03 p.m.
ICE ELLIS, CITY CLERK