Loading...
13 City Council (07/14/03)MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL July 14, 2003 The City Council of the City of Paris met in regular session, Monday, July 14, 2003, 6:00 P.M. at Paris Junior College, Applied Technology Building, Room 1206, 2400 Clarksville Street, Paris, Texas. Mayor Curtis Fendley called the meeting to order with the following Council Members present: Jim Bell, Jay Guest, Joe E. McCarthy, Francine Neeley, and Willie Weekly. Also present were City Manager Michael E. Malone, City Attorney Larry W. Schenk, and City Clerk Mattie Cunningham. Invocation was given by Richard Hart with the Christian Fellowship Church. Mayor Fendley announced that the City Council had been furnished minutes of previous meetings and asked if there were any corrections or additions. There being none, a motion was made by Councilman Guest, seconded by Councilman Bell, for approval of the minutes. The motion carried 6 ayes, 0 nays. City Manager Malone advised that the City Council had been furnished with the minutes of the Paris Economic Development Corporation for June 5, 2003, and June 16, 2003, with no action being required. The City Manager further advised that Mr. Gary Vest, Director of Economic Development/Chamber of Commerce CEO, was present and was going to give the quarterly report for the Paris Economic Development Corporation. Mr. Vest came forward presenting the Program of Work and budget for the Paris Economic Development Corporation. He said this is their annual program of work with the budget. Mr. Vest said it is an exciting time to be a part of the Economic Development Corporation. This last year has been a very trying year, but also an exciting time. He said they have seen changes in the economic development profession in the last year, but they have a lot of things going on at PEDC. Mr. Vest said they are moving ahead on the Northwest Industrial Park and hope Regular City Council Meeting July 14,2003 Page 2 to see their first tenant by the first of the year. They will need the city's full cooperation on getting the infrastructure in and getting plats approved, and as soon as the engineers get done, they will see that first tenant. Mr. Vest advised that there are a lot of things that affect economic development. He discussed changes at the state level he felt were positive in that Jeff Mosley has been named Executive Director of Economic Development reporting directly to the Governor. The Department of Economic Development is not longer an agency and is now part of the Governor's Office. Mr. Vest said that the Texas Enterprise Fund was established, putting 295 million dollars in a state fund to offer incentives to industries to move to Texas. The Enterprise Program has been restructured and expanded to make it easier to access by the cities. Mr. Vest said there was a significant rewrite of the Development Corporation Act which governs the 4A Corporation, which is the type corporation we have. The definition of the types of programs that we can participate in has expanded. Mr. Vest felt that this change would help the Paris Economic Development Corporation. Mr. Vest advised that they were still operating under four primary goals. Those goals are retention and expansion of existing industries; recruitment of new primary employers; start-up business and small business development; and infrastructure / training. Mr. Vest advised that their Program of Work is located at the back of the PEDC budget. Regarding the revenue statement, he said he anticipates the cash position at the year end to be $528,000.00, and he anticipates receiving about $930,000.00 in revenues for the next year. Mr. Vest said they also have the revenues in the amount of $384,000.00 coming in from Paris Packaging for their bond issue. He said they will have a total resource of $1.8 million dollars for the coming year. Mr. Vest advised that, taking into account the completion of the Hearne Street expansion, debt service, and the final incentive payment to TCIM, he feels that PEDC will have Regular City Council Meeting July 14,2003 Page 3 $769,000.00 available for new projects this year. Mr. Vest concluded his report and there were no questions. The City Manager reported that the minutes for the Paris Public Library Advisory Board, Main Street Advisory Board, Housing Authority of the City of Paris, and the Paris-Lamar County Board of Health had been furnished with no action being required The Minutes of the Traffic Commission had also been presented with the recommendation of placing a stop sign on 5th Street S.W. at West Sherman Street stopping south-bound traffic. ORDINANCE NO. 2003-030 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, PROVIDING THAT THE CODE OF ORDINANCES OF THE CITY OF PARIS BE AMENDED BY REVISING THE TRAFFIC CONTROL MAP ADOPTED IN PARAGRAPH (b) OF SECTION 31-65 OF SAID CODE; PROVIDING FOR PLACING A STOP SIGN ON 5TM STREET S.W. AT SHERMAN STREET STOPPING SOUTH-BOUND TRAFFIC; AND PROVIDING FOR A PENALTY NOT TO EXCEED $200.00; MAKING OTHER FINDINGS, WAS PRESENTED. A motion was made by Councilman Bell, seconded by Councilman Weekly, for adoption of the ordinance. The motion carried 6 ayes, 0 nays. Mayor Fendley announced that the next item on the agenda was the Final Plat of River Oaks Subdivision, being located in the 300 Block of Aikin Drive. This item had been tabled at the last meeting and a motion to bring it from the table was in order. A motion was made by Mayor Pro Tem McCarthy, seconded by Councilman Guest, to bring from the table the Final Plat of River Oaks. The motion carried Regular City Council Meeting July 14,2003 Page 4 6 ayes, 0 nays. Steve Methven, Chief Building Official, advised that Mr. Ross should have brought in a bond along with his contract, but Mr. Methven had not seen either. City Attorney Schenk advised that he picked up a form to substitute a certificate of deposit, and they were going to go ahead and do that even though the ordinance does not provide for a CD. The City Attorney said apparently CD's have been allowed in the past. Shawn Napier advised that Brad Hutchison is preparing the contract that was spoken of last week, and the contract did not get finished. He thought that was the hold up. Mr. Bray advised that there were a few additions that the City Attorney wanted to add to the agreement and Brad had not finished. Councilman Bell made a motion, seconded by Councilwoman Neeley, that the Final Plat of River Oaks Subdivision be approved tonight, subject to Mr. Ross delivering his surety bond or a signed Certificate of Deposit by 3:00 P.M. tomorrow, July 15, 2003, to the City Attorney' s office. Failure to do so would deny the Final Plat. The motion carried 6 ayes, 0 nays. ORDINANCE NO. 2003-031 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, DENYING TXU GAS COMPANY'S REQUEST TO CHANGE RATES INSIDE THE CITY LIMITS OF THE CITY OF PARIS, AS PART OF THE COMPANY'S STATEWIDE GAS UTILITY SYSTEMS; PROVIDING A REQUIREMENT FOR A PROMPT REIMBURSEMENT OF COSTS INCURRED BY THE CITY; FINDING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; PROVIDING AN EFFECTIVE DATE; AND PROVIDING FOR NOTICE OF THIS ORDINANCE TO TXU GAS COMPANY, WAS PRESENTED. Regular City Council Meeting July 14,2003 Page 5 A motion was made by Councilman Bell, seconded by Guest for adoption of the ordinance. The motion carried 6 ayes, 0 nays, FRANCHISE ORDINANCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, GRANTING TO DENNIS NELMS, DBA CITY CAB COMPANY, A FRANCHISE TO USE THE PUBLIC STREETS, ALLEYS, AND HIGHWAYS OF THE CITY OF PARIS FOR THE PURPOSE OF TRANSPORTING PASSENGERS FOR HIRE IN MOTOR VEHICLES FOR A PERIOD OF ONE (1) YEAR, BEGINNING AUGUST 10, 2003, AND ENDING AUGUST 9, 2004, UPON THE TERMS AND CONDITIONS HEREINAFTER PRESCRIBED; PROVIDING FOR THE PAYMENT OF A TAX FOR SUCH PRIVILEGE AND USE OF SUCH STREETS, ALLEYS, AND HIGHWAYS; PROVIDING FOR THE TERMINATION OF SUCH GRANT UPON SPECIFIED CONDITIONS; PROVIDING FOR TAXICAB STANDS FOR USE OF SAID GRANTEE; PROVIDING FOR PUBLIC LIABILITY INSURANCE ON THE MOTOR VEHICLES AND EQUIPMENT OF SAID GRANTEE; PROVIDING FOR THE SUPERVISION OF SAID BUSINESS AND INSPECTION OF ITS VEHICULAR EQUIPMENT BY THE OFFICIALS OF THE CITY OF PARIS; AND PROVIDING AN EFFECTIVE DATE, WAS PRESENTED. A motion was made by Mayor Pro Tem McCarthy, seconded by Councilman Bell, for approval of the ordinance on first reading. The motion carried 6 ayes, 0 nays. FRANCHISE ORDINANCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, GRANTING TO STEVE B. RAINEY AND WENDY L. RAINEY, DBA YELLOW CAB COMPANY, A FRANCHISE TO USE THE PUBLIC STREETS, ALLEYS, AND HIGHWAYS OF THE CITY OF PARIS Regular City Council Meeting July 14,2003 Page 6 FOR THE PURPOSE OF TRANSPORTING PASSENGERS FOR HIRE IN MOTOR VEHICLES FOR A PERIOD OF ONE (1) YEAR, BEGINNING AUGUST 10, 2003, AN ENDING AUGUST 9, 2004, UPON THE TERMS AND CONDITIONS HEREINAFTER PRESCRIBED; PROVIDING FOR THE PAYMENT OF A TAX FOR SUCH PRIVILEGE AND USE OF SUCH STREETS, ALLEYS, AND HIGHWAYS; PROVIDING FOR THE TERMINATION OF SUCH GRANT UPON SPECIFIED CONDITIONS; PROVIDING FOR TAXICAB STANDS FOR USE OF SAID GRANTEE; PROVIDING FOR PUBLIC LIABILITY INSURANCE ON THE MOTOR VEHICLES AND EQUIPMENT OF SAID GRANTEE; PROVIDING FOR THE SUPERVISION OF SAID BUSINESS AND INSPECTION OF ITS VEHICULAR EQUIPMENT BY THE OFFICIALS OF THE CITY OF PARIS; AND PROVIDING AN EFFECTIVE DATE, WAS PRESENTED. A motion was made by Councilwoman Neeley, seconded by Councilman Weekly, for approval of the ordinance on first reading. The motion carried 6 ayes, 0 nays. Resolution No. 2003-113, authorizing the execution of the First Amendment to the Tax Abatement Agreement between the City of Paris and H-W Commercial Warehouse, Inc., dated April 13, 2003, 1998, assigned to Paris Warehouse 107, Inc., on February 8, 1999; making other findings and provisions related to the subject; and declaring an effective date, was presented. A motion was made by Councilman Bell, seconded by Councilwoman Neeley, for approval of the resolution. The motion carried 6 ayes, 0 nays. Resolution No. 2003-114, accepting the Gang Resistance Education and Training (G.R.E.A.T.) Program Grant in the total amount of $41,040.00, requiring no matching funds from the City of Paris, was presented. A motion was made by Mayor Pro Tem McCarthy, seconded by Councilman Bell, for approval of the resolution. The motion carried 6 ayes, 0 nays. Resolution No. 2003-115, ratifying and approving an Intergovernmental Regular City Council Meeting July 14,2003 Page 7 Agreement with Paris Independent School District for Provision of Juvenile Justice Resource Officer Services to all PISD campuses during 2002-2003; making other findings and provisions related to the subject, and providing an effective date, was presented. A motion was made by Councilwoman Neeley, seconded by Councilman Bell, for approval of the resolution. The motion carried 6 ayes, 0 nays. Resolution No. 2003-116, approving and authorizing an Intergovernmental Agreement with Paris Independent School District for Provision of Juvenile Justice Resource Officer Services to all PISD campuses during 2003-2004; making other findings and provisions related to the subject, and providing an effective date, was presented. A motion was made by Mayor Pro Tem McCarthy, seconded by Councilwoman Neeley, for approval of the resolution. The motion carried 6 ayes, 0 nays. Resolution No. 2003-117, approving and authorizing the Mayor to execute and the City Clerk to attest to an agreement for the extension of an Alternative Sewer Collector Line on behalf of the Downtown Investment Group pursuant to Ordinance No. 2003-027; making other findings and provisions related to the subject; and declaring an effective date was presented. A motion was made by Councilman Guest, seconded by Mayor Pro Tem McCarthy, for approval of the resolution. The motion carried 6 ayes, 0 nays. Resolution No. 2003-118, approving the plans and specifications for the 2003 city street HMAC Overlay Program; authorizing the advertisement for bids and said construction; making other findings and provisions related to the subject; and declaring an effective date, was presented. A motion was made by Councilwoman Neeley, seconded by Councilman Guest, for approval of the resolution. The motion carried 6 ayes, 0 nays. Resolution No. 2003-119, accepting the proposal of LaRue Ford Tractor Company for a New Model TN6547 PTO HP Diesel Tractor, a 32 LA New Holland front end loader, and a 6' rotary cutter in the amount of $21,695.00, Regular City Council Meeting July 14,2003 Page 8 was presented. Tommy Haynes, Director of Community Development, came forward explaining that they had requested four informal bids for a tractor, shredder and loader to clean and mow lots. Mr. Haynes has been asked by a number of people to determine the cost of purchasing equipment. There is $26,000 in an account that can be used for the purchase. If the equipment is purchased then the city will own the tractor and can mow again next year. City Manager Malone explained that the account was for payment for services to have someone to do the mowing and Mr. Haynes wants to divert the money to purchase a piece of equipment in order to have something when they finish. City personnel will be mowing and the prisoners will assist the city. Mr. Haynes said that the city gets 8 to 10 prisoners a day, and they are involved in cleaning lots all over the city. The city buys them a lunch, provides transportation for them and sends them back to Bonham. This has been an ongoing process for years and has saved the city untold thousands of dollars. After further discussion, a motion was made by Mayor Pro Tem McCarthy, seconded by Councilman Guest, for approval of the resolution. The motion carried 6 ayes, 0 nays. Resolution No. 2003-120, authorizing the approval and acceptance of a permanent utility easement on property belonging to Barney W. Bray II! and Josh A. Bray, beginning at the Southeast Corner of the Bray property in the North right-of-way line of FM Highway No. 150'/, along said right-of-way line a distance of approximately 2521 feet, for the construction ora water line, was presented. A motion was made by Councilman Bell, seconded by Councilman Weekly, for approval of the resolution. The motion carried 6 ayes, 0 nays. Resolution No. 2003-121, reappointing Mike Dunn to the Paris Economic Development Corporation for a term of three years, was presented. A motion was made by Councilman Guest, seconded by Councilwoman Neeley, for approval of the resolution. The motion carried 6 ayes, 0 nays. Regular City Council Meeting July 14,2003 Page 9 Resolution No. 2003-122, authorizing the sale of a 7.104 acre tract of Lake Crook property; which has been declared surplus by Resolution No. 91-108, to Mr. David R. Robinson in the amount of $750.00 was presented. A motion was made by Mayor Pro Tem McCarthy, seconded by Councilman Weekly, for approval of the resolution. The motion carried 6 ayes, 0 nays. Mayor Fendley announced that the next item on the agenda was discussion and possible action on the City's current policy regarding projects constructed on the basis of work by the day, including direction to staff regarding same. Mayor Fendley said he asked that this be placed on the agenda and it is primarily work that is being done in the water and sewer development and, looking at city policy, there may be things that the Council has addressed before. He said that the city bids out anything more than $25,000.00 with exceptions, one of those exceptions being day work. Mayor Fendley stated that the statutes talk about things that are emergency issues or danger to life and health. Mayor Fendley said his main concern is the cost in the multi hundreds of thousand of dollars on some of the individual projects and the city is doing some of those on day work now. The staff feels that maybe that is saving money, but as a Council, they need to address this issue so they will feel comfortable with that, or they don't feel comfortable with that and they may want to direct city staff to do it differently. Mayor Fendley advised that he has asked staff to make comments and there are some people in the audience that would like to comment and then Council Members can make recommendations. Shawn Napier, City Engineer, explained that the legal sheets he passed contained a list of all projects that had been bid since 1998. The small sheet of paper shows contract price by year. Mr. Napier explained that these are the totals for projects that have been bid for each year. He said that in 1998 there was $523,298.17 expended, which is a total for six contracts. He said there were six contracts in 1998 for a total of $523,298.17. In 1999, there were seven contracts for a total of $276,975.00. In the year 2000 there were 33 contracts for a total of $2.7 million; and in 2001, there were 21 contracts for a total of $2.4 million. In 2002, there were 12 contracts for a total of $4.1 million Regular City Council Meeting July 14,2003 Page 10 and this year to date, there have been nine contracts for just under three million dollars. Mr. Napier explained that a total of nine million dollars from the sale of certificates of obligation is in the Water and Sewer Fund and, of that amount, four million dollars is for two projects; the overhead 2.5 million gallon water storage tank and the 24 inch water line to that tank. Mr. Napier also passed out typical procedures for bidding and for day work and he discussed them as follows: ° Discussion by City Council authorizing the project. These are projects that the City Council may come up with. Mr. Napier said he was aware that the city gets complaints for doing day work. They also get a lot of complaints from Public Works because they received a lot of telephone calls regarding sewer stops on a certain sewer or a water line and a lot of rusty water complaints. Mr. Napier said a lot of the projects are set up as far ahead as a future budget year. Those we could be talking about now for next year. You have a lot of time to bid larger projects. Engineering Department prepares plans and specifications and presents to City Manager for presentation to City Council. This is only done on small scale projects due to the limited staff that the Engineering Department has. Most plans and specifications are done by consulting engineers. They are either chosen out-right or selected by proposals. It takes about two months to do requests for proposals and select a consultant. o Mr. Napier said once the Council selects the engineer they prepare plans and specifications, bring them back to the City Council, a resolution is approved for the plans and specifications and authorizing advertisement for bids. This takes a minimum of one month from the project being authorized, but will probably take longer due to the fact that plans and specifications must be completed. o o o Regular City Council Meeting July 14,2003 Page 11 Advertisement is done by department heads through the City Clerk. Legal notices are published twice on Sundays with first publication at least 14 day prior to letting of the bids. Bids are received by the Director of Finance at bid opening. Department heads tabulate bids, and the bid documents and tabulations are turned over to the City Clerk. The department head writes a memo to the City Manager and City Council making recommendations for award of the bid. This typically happens the month after plans and specifications are approved to go out for bids. The City Council awards the bids and the projects began. Any change orders required must be approved by Resolution of the City Council. Mr. Napier advised that there is a minimum of five council appearances for any one project. The cost of the actual work (with day work or contract job) is about the same. Where you are costing the city more money, is the cost of hiring a consulting engineer to prepare plans and specifications, which is typically 8% to 12% of the estimated contract cost. Mr. Napier said Mobilization and Bid Bonds are normally in the contracts but they are not in day work contracts. He said that Mayor Fendley may have a better idea than him what a typical bid bond would be. Work by the day does not have a mark up on the material cost as most of the materials are provided by the city. Mr. Napier said that there are several things that can happen in the bid procedure. He said that if you carry over past 90 days or if something goes wrong, the contract prices could go up. There are all types of bid delays and there is also the fact that city staff is affected every time you have a contract it affects the City Attorney's office because they review all contracts along with the proposals for engineers and the bid bonds and insurance. Mr. Napier said several things can happen in the bid procedure which would result in contract Regular City Council Meeting July 14,2003 Page 12 prices going up when you carry over past 90 days. There are all types of bid delays. City Staff is affected every time there is a contract, especially the City Attorney's office which reviews all contracts, proposals, bid bonds and insurance for engineers. Mr. Napier explained that most of the day work projects come from other city departments, especially Public Works. These projects are too large for Public Works to do or they are too busy. Typically day work is handled in the Engineering Department. They get the complaints and they discuss each of the problems and the way to solve the problem. They pick the best economical solution and try to look into the future to see how this can affect something else that goes on in the future. They do a quick work plan in order to come up with a material list. Mr. Napier said there is not much to water lines and they can use standards for that. He said that sewer lines are different because you have to set grades for sewer line and they do that on a program called sewer CAD. Mr. Napier said once they have the plan they do a bid take off on that. They get the bid list to Gayle Echols at the Warehouse, she faxes that to two or three vendors that the city normally uses, and they come back with bids on each one of these projects and they normally go with the cheapest one, unless there is a long delay in getting the materials. He said they only bid out the materials. Mr. Napier said the water line and water tower projects were not done in house because they required a water system analysis and the city did not have the staff to do that analysis. The city selected Bucher, Willis & Ratliff from Tyler to do these two projects together because of the water analysis. The engineering fee was 6%. He said there are areas that can be combined so the cost will be less. Mr. Napier said that the 24th Street Drainage Project goes to the other extent. The city was required to get a permit from the Corp of Engineers. The city is not in the process of getting easements. The engineering costs will be from 15% to 25% of the total project due to these factors. Regular City Council Meeting July 14,2003 Page 13 Councilwoman Neeley asked for an example of day work. Mr. Napier said right now they are doing a water line replacement on the project on 12th Street NW between Graham and Bonham Street and a short stretch on Houston Street because of the rusty water complaints. The crew just moved off of 3rd Street SW where they were resolving rusty water complaints on four and one-half to five blocks. Mr. Napier said they just finished putting in the water and sewer lines at the Sports Complex. Those are plans that Terry Townsend had done by Mark Spencer and they did a take off on that and designed the water and sewer on that plan and then had a contractor come in and put it in. Councilman Guest asked what kind of a number would it be for a typical 4 or 5 block rusty water leak repair. Mr. Napier said about $20.00 a foot with everything included. There again, not having bid those specific items out in a while, it would be roughly $20,000.00 to $25,000.00. Mr. Napier said they try to use them on the projects where there is not much involved in it, such as engineering cost and those are what we normally do in house or day work. Mr. Napier said he went back to 1980, where the city was doing day work where a contractor submitted prices like for a 3-man crew, a 3-man crew with a backhoe, all different prices. Prices for any material or any piece of equipment that they might have, they submit either a price by the hour or a price by the day. Mr. Napier said they have not had a contractor to come in and make an update or a change in that for a year and one-half and there is only one change since he has been with the city and he has been with the city almost two years. Gene Anderson, Director of Finance, came forward stating that he had a handout to go along with that, and what he has been asked to do is explain the mechanics and how the day labor is actually paid for, so he pulled one out and it was for June of last year. Mr. Anderson said that in terms of paper work and the terms of the day labor itself, which you see on the top page is the payment voucher that each day labor job that is going on, an inspector from the Engineering Department will bring this in toward the end of the day. This project, as an example, was being supervised by Jack Rater. He was the one on site, watching the project being done and signing off that the work had Regular City Council Meeting July 14,2003 Page 14 actually been done. The next page is the invoice which addresses the issue that Councilman Guest was talking about in terms of pricing and you can see by this particular job, there was a one man crew with a backhoe for one-half hour. It reached a combination of crews and there is a price out there, and that was submitted along with the payment voucher. The next document is a purchase requisition that is required to be filled out in order to generate the check and the last page is a copy of the check that was actually generated. Mr. Anderson said these are brought in on a daily basis and the checks are generated on a daily basis and paid out on a daily basis. Mr. Anderson said he went back and pulled samples for two months and in June of last year, there were 41 checks written that were day labor checks for various contractors and the year before that, June of 2001, there were 45 checks written, and that appears to be typical. Mayor Fendley questioned the hourly rate for this three-man crew at $85.00 an hour and asked if we get other rates. Mr. Napier said all the contractors submit their list for what they charge and each one is a little different, but they typically don't vary more than five to ten dollars and usually they round up to equal or the $5.00 amount. Mr. Napier said at one time, he knew they tried to do a standard for that, but what you get into there is there are so many pieces of equipment and so many ways they operate that it becomes a nightmare just to try to figure out what would be a good charge for a good piece of equipment. Councilman Guest asked Mr. Anderson what the total cost of the Clement Road Project was. Mr. Anderson said he could not tell without looking the figures up. Councilman Guest wanted to know if it was one of the $20,000.00 projects. Mr. Napier advised that this one was definitely over $20,000.00. Mr. Napier advised that a lot of the time the water line projects may run or normally run anywhere between $10,000.00 and $50,000.00. He advised that some of the sewer projects may run about the same, but right now, the city has a sewer project going that is pretty much a replacement type job. They are replacing lines that are currently feeding into a lift station and on that project just the pipe alone is going to be pretty expensive because it is an 18 inch sewer line and the material cost runs that up real quick. The labor in putting it in does not Regular City Council Meeting July 14,2003 Page 15 change the cost, it is always the material cost that runs it up quite a bit. Mr. Napier said this particular one has some places where it is 18 to 19 feet deep so it is a slow go. City Manager Malone reminded the Council that the city is bidding the material through the purchasing department. Mayor Fendley said that the labor on a job on this could run several hundred thousands of dollars he would assume. Mr. Napier advised that this particular project started at Stillhouse Road, just inside the loop at the creek area the manhole there, they went down to the road where it dead ends where Bobby Smallwood's mother lives. They went down the east side of that road all the way down to Clement Road, and went to Clement Road all the way up to Main Street. Mr. Guest advised Mr. Anderson that he asked him for something that he already had. Councilwoman Neeley wanted to know where he found that information. Councilman Guest advised that Mr. Bray had provided the information. Councilman Bell informed the City Council that he has been provided a copy oflhe invoice going back in the year 2000 and after reviewing the invoice, the total cost for that day was $27,902.50 with 88.5 hours for one catapillar, two other pieces of equipment 87.5 hours, another piece of equipment 17 hours, a 6 man crew with backhoe 82.5 hours. Councilman Bell said this was a day work project from what he understood. This information has been requested and it looks to him, if the city can do 88 hours in a 24 hour period, we have ourselves something going. Councilman Bell said the next one, again on a day project, the hours vastly exceed anything to be accomplished in an 8 hour day, the date on this one is October 24, 2000. City Attorney Schenk said he might have an explanation. He handed out Sections 75 through 79 of the City Charter. He explained that Section 75 provides that certain contracts are specifically excepted from the requirements for competitive bidding, including work done by the city and paid for by the day as work progresses. He said he put that in there so the Council can also refer to a section out of the State Law, Section 252.001 Local Government Code, Competitive Requirements for Certain Purchases, that is the language that stipulates the requirement that before the city enters into a contract Regular City Council Meeting July 14,2003 Page 16 requiring an expenditure of more than $25,000.00, the city must comply with the competitive bid process; however, in the next page under Section 252.022, General Exemptions, there are exemptions to that requirement, which exempts completely from the chapter various procurements and under number five, a procurement for work that is performed and paid for by the day as the work progresses is exempted. City Attorney Schenk advised that he had highlighted some language on the previous page where it talked about the governing body of the municipality electing to have this chapter supersede the charter, so that if you see that language at the top and then go over to the next document that he has included, they will see Resolution No. 99-081, whereby the city did exactly that as of July 1, 1999, and that is an important date that he would touch on later. He said the city opted to assume the requirements of Chapter 252 in lieu of the limits of the Charter and that is why our $1,000.00 limits set out in the Charter have been raised to $25,000.00 because the State Law allows the city to make that option. City Attorney Schenk stated that the reason he pointed those things out is he wanted to give them a connection to the next one ofthe~questions that he was asked. Sometime within the first year he was the City Attorney he was asked to talk about this issue of work by the day, and at that time, his advice was that the essence of work by the day (and he has a couple of Attorney General's Opinions to support that), is you do not have a formal contract that each contractor performs that work on a daily basis and is paid on a daily basis. City Attorney Schenk said he may have been the first one to clarify that specific requirement regarding daily pay. He said he did not know what the time frame was for the materials that you have now, but he believed once he advised the department appropriately when they inquired, and from that point forward, the city of Paris has been paying on a daily pay basis for all the projects. Mr. Schenk said that he did not remember the time frame when he gave the advice, but Mr. Anderson would have to say how long the city has been making those payments on a daily basis. City Attorney Schenk said that the other thing that he wanted to make the Council aware of was this July 1 policy adopted by resolution. In his research on the issue he encountered this resolution as well, and this resolution that would put a limit on the city in terms of the numbers of days in a given month that the city would do work by Regular City Council Meeting July 14,2003 Page 17 the day. City Attorney Schenk said he was not aware of this policy. This policy was presented by the City Attorney who was the Acting City Attorney at the time because the city was between City Attorney' s. This did not show up in the City Attorney' s data base because it was prepared on the Acting City Attorney's equipment and ours did not track through the computer what was done. This policy would be problematic with regard to some of the work that was done and the questions that have been asked about some of the projects, as referenced in the City Council minutes, that he has also provided the Council, of June 27, 2000. The first page shows the date and who was on the Council at the time. The next page indicates a quotation by former City Engineer Earl Smith where he is setting out some projects this Council inquired about, those being a sewer outfall line, Clement Road, and talked about some EPA work. On the next page of those minutes, Mr. Smith is advising the Council that those projects would be done by the day and sets out his reasons why. City Attorney Schenk said that the conclusion he could reach is that several of the Council Members who adopted this other policy that he pointed out to the City Council, likewise were there for Mr. Smith's discussion, indicating the prior Council was aware thelwork was being done by work by the day. Councilman Bell asked if there was a resolution passed approving this. City Attorney Schenk advised that one has not been located. Councilman Bell asked for a common summation of what you just said. Councilman Bell asked Mr. Schenk if he said that the city has been in violation in the past of both the Charter and State Law that has been corrected since you came on board. You have clarified that. City Attorney Schenk said he has not done any study or research to determine how work by the day was paid and what time frame was used in the past. City Manager Malone advised that in the past they had only followed the legal advice that staff has had from various City Attorneys; therefore, anytime that work was done it was done with the advice of Council and of our attorney. Mr. Bell said that these time sheets show that the city is not paying by the day. You cannot have 88 hours in a day. City Manager Malone advised that they thought they were operating within the perimeters Regular City Council Meeting July 14,2003 Page 18 based on the legal advise at the time and the methodology that was going on. He said as time went on questions were asked and the new attorneys came on board. City Attorney Schenk stated that the way he understood it, and the way it was presented on the agenda, if we are doing this process now correctly, the question is do we want to continue doing work by the day and he felt that is certainly a policy that the Council will have to decide, along with what projects and under what circumstances they do it by. Councilman Bell said he would like to go into it further, and Mayor Fendley asked if there was anyone who would like to speak regarding this matter. Barney Bray III, 3230 Mahaffey, came forward passing out a handout for the City Council. Mr. Bray said the front page is his equipment rental rates and on the next page the Council would see the figure of $16,338.54, which was overtime money the city paid for the transmission line going north of the city. Mr. Bray asked, if this is true day rate, working by the day, how can there be any overtime. He said the Federal Statute states you pay overtime after 40 hours a week. Mr. Bray stated that when people give you equipment rates, you do not pay overtime on equipment rates. He also stated that their obligations as city fathers and the people that work here, is to get the cheapest and best price if you are going to work by the day. Mr. Bray said if the City Council would look on the next page they would see where the gentlemen's machines are making $75.00 an hour on October 9, 2000. He asked the Council to look at the next page on October 24, 2000, all of sudden the machines are making $85.00 an hour. Mr. Bray said that in 2000 and 2001 he doubted that the city employees got in excess of a 3 or 4% raise, if they got a raise, and here the city is giving someone who is working for us about a 13% raise in the middle of a job, in the middle of the year, and increasing his other rates. Mr. Bray pointed out at the bottom of the invoice was a charge of $11,425.01 for overtime money. Mr. Bray assumed that the city paid this invoice. He said he did not understand why this is a day rate, how there is any overtime money based on Federal Statutes and based on the quotation that this is what is worked for by the hour. Mr. Bray said that, regardless of day rate, it is our financial obligation to this community and citizens to get the cheapest and best price for Regular City Council Meeting July 14,2003 Page 19 our work, and also, to pay that way. Mr. Bray said there were other sheets that backup where they paid overtime money all during this job. He said if the city is paying overtime money, and it has to be over 40 hours a week, somewhere someone has a problem. Councilwoman Neeley asked if this was all on one job, and Mr. Bray said this is on one project. Mr. Bray advised that he is also showing overtime on the job on Clement Road. Mr. Bray said there was a quotation for 36 inch sewer pipe on the next page. The city purchased 36 inch vylon pipe for that job and there is an invoice where the city paid $47.85 a foot for that pipe. Mr. Bray said he called one of the suppliers, Diamond Plastics, who makes big sewer pipe. He was told that the company who made vylon pipe had closed its plant. He said Diamond Plastics quoted $36.00 a foot for 500 feet of pipe. He said the best estimate that they could get when they went through these jobs folders on all these invoices they came up with around 13,533 feet and the city paid $47.85 a foot and could have paid $36.00 a foot. He said there is a tab sheet on the back of this handout showing the difference in money on this material alone is $160,366.00. Mr. Bray advised that they are out there looking out for the best interest of the citizens of Paris. The city should not have gotten one price on this job. He said if this pipe company that makes this other pipe meets the same specs, and the supply company said they do, then why didn't the city get a quote from them. Mr. Bray said this is regardless of day rate or whatever you want to talk about. Mr. Bray said he is talking about the money that belongs to the citizens of the town, and the city does not even get a second bid, but we don't have money to do these projects, but here we spend $160,000.00 more than we had to for this project. Mr. Bray advised that the if city had bid this project out, he would have, and any contractor would have had to meet the ATSM specs for the 36 inch pipe. Mr. Bray said they are not limited to who could bid on a project and they are not having to restrain the trade situation by saying that we are not going to buy Regular City Council Meeting July 14,2003 Page 20 from pipe Company A we are just going to buy it from Vycon. He advised that he could not bid this other pipe and been competitive on the job project. He would have lost. There is no way he could have bid using the high price pipe. Mr. Bray said it is no different from day rate when you have legitimate contractors that gives rates that are cheaper than what you are paying the contractor and the same contractor seems to be doing all these, what he calls clean jobs. Mr. Bray said when he got a raise on this hourly rate, Mr. Heuberger did not get a raise, so why did the city give this guy a raise. He is working for the city too, and now the city is going to pay one person more money and give him a raise and we are not going to pay this other contractor who is working and give him a raise. Mr. Bray advised that what he is saying, regardless of day rate questions, he thinks there are some real questions about our financial responsibility to the citizens and tax money. City Attorney Schenk said he was confused on the pipe issue because it was his understanding that they competitively bid that project. Mr. Bray said there is no bid in the file on the second bid. Mr. Bray advised that the pipe company that his supplier called when he told him the price if they purchased 8,000 or more feet and the pipe company asked if he meant that job up in Paris, Texas, that they did not get to make a proposal on. City Attorney Schenk said he understood that the city advertised and sought bids on pipe. Mr. Bray said they told his supply company that the city would not take a proposal from them. City Attorney Schenk said it may be that we bid pipe and do not take informal proposals, but the city does allow competitive bidding in that process. Mr. Bray said he did not believe that happened in that case. Mr. Bray said this needs to be looked into and also why the same people are doing the bulk of the city's day work on all these clean jobs. Mr. Bray said that on the Civic Center, the city can bid out the dirt work, fences, bathrooms, electrical, but the city does not bid out the utility work and he did not understand that. Mr. Bray said he went up and asked when he saw them working on the water line and he asked if he could bid on the sewer pipe and the reply was no, they had made arrangements. He said that the water line Regular City Council Meeting July 14,2003 Page 21 that they tied on to was given by him to the Civic Center from up there in front of the high school, but he is not good enough to even give a proposal to lay down a water line there for the city, but he can give that other line flee. He did not think that is right. It is legally wrong and he felt it was ethically and morally wrong, just like not having a pipe price and paying a person $20.00 more for a track machine than he asked to get paid. If you have two of them on a job that is $40.00 an hour or $400.00 and at that rate, we are burning up hundred dollar bills. Mr. Bray said he did not think that anyone sitting around this table would not get a second price in the process of buying a new car, that wouldn't check around and get another price. He did not think that any of them would pay that much more money for the same product, especially when it is not your money, it is public money. Mr. Bray said whether it is legally wrong, he thinks it is ethically and morally wrong for the city fathers not to be taking care of this business, and if you were out here in the business sector doing this work, you would want to know to. Mr. Bray said he can go all over Northeast Texas and bid jobs anywhere from one hundred to three or four hundred thousand dollars, and when you see these jobs running seven and eight hundred thousand dollars in Paris, and we don't even bid them out, the city does not even get a pipe price and save a $160,000.00. The city does not pick up a phone and try to save our city some money. He felt that something is wrong with what we are doing. Mr. Bray said there is not a citizen in this town that has to pay a higher water bill and more taxes that appreciates the city not looking into those issue. Mr. Bray said these are not his records, they are the city's records. Again Mr. Bray said that if the city paid the overtime, which the city did with this contractor a number of times, there is no way you are doing day rates anywhere you owe anybody overtime because there is no way to get 40 hours in a 24 hour a day and that is a Federal Statute; that is how you pay overtime money. He felt the city has a real issue and the person either owes money back or something else on those things. Councilwoman Neeley said she would like to see the discussion of the City Regular City Council Meeting July 14,2003 Page 22 Council that adopted this resolution in 1999. City Attorney Schenk said, if he recalls, he read some of the minutes when they were looking for the resolution. For example, it was the same discussion of the one opting the state law, so there were two or three different procurement issues that were apparently being looked at during that time. Mayor Fendley said the only thing they were changing was going from the thousand dollars to the twenty-five thousand dollars in that resolution. Councilwoman Neeley asked if there was some reason that they voted to do that, or was it some process to get to that to make that big jump from a thousand dollar purchase to the twenty-five thousand dollar purchase before having to bid an item out. City Attorney Schenk said it was to stay within the state statutes. He said that the number has been raised since the City Charter was written. Under the state statutes it went to ten thousand, fifteen thousand and then to twenty-five thousand dollars. City Attorney Schenk said the City Council has amended the state procurement statutes, which allowed City Councils to opt into the state's upper limit by adopting the resolution. Instead of revising the charter, the legislation allows an easier route for councils to follow. Councilwoman Neeley wanted to know if that was when the City of Paris started day work or was the city already doing day work. City Manger Malone advised that the city has always done day work. City Attorney Schenk said that was why he pointed out that from the City Charter, which allows the city to do day work. Mayor Fendley said he did not have a problem with day work, but he did have a personal problem with it being the size of the day work the city is doing, and they may be paying it correctly on a day to day basis, but when you are looking at an $800,000.00 job, that should be bid out in his estimation. He said that the City Engineer should be able to look at that and have specifications that he knows that job should come in between $600,000.00 and $650,000.00 and if the bids are out, he should tell the City Council and they could throw those bids out. He said that when the Council does not have any competitive bidding, they do not know what that is. The Mayor said it is a perception issue and it does not look good when you don't have anything to measure that to. Regular City Council Meeting July 14,2003 Page 23 Councilwoman Neeley said that these papers are for 2000-2001. She asked if there are any projects of this size currently. Mayor Fendley said he thought the Civic Center project was that size. City Engineer Napier advised that the Civic Center project has been completed. Mayor Fendley said any projects over $25,000.00. City Attorney Schenk said it is the segment that is the issue and it depends on how you add the project together to get whatever total that they have. Mr. Napier said it depends on how you lump projects together. A lot of the time they do not do individual bids on rust water problems. Instead they write where they are currently working for that day on a sheet to keep from having thousands of bid items and payment vouchers for that day. He said they have certain areas of the city set up like quadrants similar to the city's setup for water and sewer. He advised that these jobs for placing water and sewer lines could be for two blocks or it could be up to ten or twelve blocks. The job depends on where the problems are located and right now they have a sewer line project that has over 1800 feet of sewer line and it is 18 inch pipe. The job is getting built. Mayor Fendley wanted to know why the city would pay overtime on work by the day. City Attorney Schenk said he had one suggestion - that it may be that Mr. Bray is referring to the FLSA statute that obligates the employer to pay overtime when employees exceed 40 hours, and he is wondering if there was a rate that a particular contractor gave us if the work was within a time frame. He said it could be referred to as overtime but it can also be referred as extra hours or after hours work, if that work is to be in the evening. Mayor Fendley said there is not a contract for that. City Attorney Schenk said that he did not know if that could be a different rate. Councilman Bell stated that you cannot work people overtime when they are working them just one day at a time and paying that day for the work, especially when you are paying them daily, you cannot work them over the weekend. The City Attorney replied that he Regular City Council Meeting July 14,2003 Page 24 understood that, but he has seen circumstances where contractors will have a rate that the work is between 7:00 and 6:00, especially, work being done by the state. City Manager Malone stated it could be difficult to run down answers to these questions. He pointed out the Council that, in terms of the size of these contracts, the city was running into a deadline from the EPA in doing this sewer work which was estimated by consulting engineers at something over 8 to 9 million dollars. He said that the city has done the work a lot cheaper than that estimate, whatever the figure was. The magnitude of some of those projects was great. He said that had the city not done the sewer outfall line work by the day and had gone out for a consulting engineer, the city might not have made the deadline. The city could have paid that much in fines. City Manager Malone said he was not saying that mistakes were not made, and maybe some of these issues that have been raised are correct, because he does not know, and they have not had the option to go back and look at the records. Councilman Bell asked Mr. Bray about the information that he had given the City Council, and some of this comes from three projects. He wanted to know how he brought his attention to those three and how many others have we got that we could be looking at, and does the Council need to request that data from staffas opposed to having it cost in excess of $1,900.00 to get this information, which is clearly straight out of city records and it appears to him to believe that they have some serious violations. They have a lot of things happening here that he does not see any correct answers from the staff s standpoint. He said that in fairness to Mr. Napier, the projects that they are looking at were before he came to the city. Councilman Bell said he did not see how you can pay overtime and no one can adequately explain that to him. He said that is going to take some real legal work Mr. Schenk. Mr. Schenk said they will have to research this. Councilman Bell said he could not see how come we pay $85.00 an hour for a machine when we can hire that machine by quote ~given to the city at $65.00", that man at $85.00 an hour should not even be working for the city anywhere. He said that can't be explained to me and he will be interested Regular City Council Meeting July 14,2003 Page 25 to see if it could be. He couldn't understand the cost of the pipe when the city is paying 50% premiums on that one job and paying a 30% premium on the cost of labor and the city is saving a 6% to 8% premium on city engineer work based on the information that you have. Mr. Napier said it was anywhere from 8% to 12% on engineering and then the bid bond. Councilman Bell said we are paying out 50% more to save 12%. He said that somewhere, this does not compute and his concern is do we have other projects; how do we get to the bottom of this; and where is the bottom, and then why. Councilwoman Neeley said she would like to see something current. Councilman Bell asked what was the last project completed. Mr. Napier said 4th S.E. and the Civic Center. Councilman Bell asked if they could request as a Council to have the same open record information. Councilman Bell said it was his understanding that this information was originally requested on May 29, 2003, and data is still outstanding. City Attorney Schenk said that the information that was requested was not requested by Mr. Bray. Councilman Bell said it was Beverly Walters who was the requester. City Attorney Schenk said that particular request was going to require a great deal of time to pull the records together and the statutes allows the city to request a deposit to defray the cost of providing that information. To do that, staff had to estimate the work that was done by each respective department and what the cost would be. The City Attorney advised that the city has provided all of the Engineering Department information, and at the same time, the Finance Department had a couple of people out and they were the ones to research those records. He said going through the checks will be labor intensive. Mr. Anderson came forward advising that there are a number of projects that extended over a number of years and they wanted copies of checks and all of those bank statements had to be gone through and copies made. He said he has been short staffed with people out on maternity leave and illness, which makes it almost impossible for him to find time to pull someone off regular duties to Regular City Council Meeting July 14,2003 Page 26 work on these things. Mr. Anderson advised that he had one person who has already worked 60 hours on this project and that the person was only three- quarters of the way through. City Attorney Schenk advised that the city has indicated a date of July 18, 2003. Mr. Anderson said he was not sure they will be able to meet that date. Councilman Bell asked what statute allows you to drag that out. The City Attorney advised Councilman Bell that he did not believe the city is dragging it out, he was saying that they have met the requirements of the statute with regard to producing the documents. The statute provides for a reasonable time to provide the documents. Part of the process was to go through and estimate the cost and someone had to go through and give the estimated cost of the record request, which took part of the time, and the city has provided all of the information that is available from the Engineering Department and in turn, credited the cost against the deposit for that charge and the remainder of the charge is subject to change depending on how the balance of the process goes. Mayor Fendley said the City Council would like a list of current day work that is in excess of $25,000.00. Councilman Bell said he would like to have a complete printout of the Civic Center Project to see what that is. He was not wanting the checks, but rather the day sheets. Councilman Bell went back to the question of how overtime can be paid on day work and why is the city paying $85.00 an hour instead of $65.00. Councilman Bell said that Buddy Heuburger came in here for information and told him that his backhoe was $50.00 an hour. He did not know if Mr. Heuburger's equipment was a piece of junk or his doesn't work as well, but whatever it is, his is $50.00, and that makes the problem even worse if it works. Councilman Guest said this goes back to state law, and state law is quite liberal and it is almost impossible to break state law because it provides numerous exceptions, and one of those exceptions is procurement for work performed by the day as the work progresses. He said we may not be breaking the law, but in his mind we are certainly breaking the spirit of the law by paying day work on million-dollar projects. He said that just does not make any business sense Regular City Council Meeting July 14,2003 Page 27 and that the process is just stupid - not a good process in his opinion. Mayor Fendley advised that this Council needs to address how they want to go forward with the day work. He felt that if it is an emergency or a matter of health or the job is under the $25,000.00, or you may want to say $50.000.00, that day work was acceptable. He did not feel it should be upped much more because you really have to remember you are dealing with taxpayers money and you are responsible for the taxpayers interest. They need to be sure they are getting the best thing for their money. Mayor Fendley said that if the city has proper planning procedures in place, you know what jobs are coming up, you know what needs to be done, and then you should be able to schedule your time. Councilman Bell wanted to know what it would do to the city if they stopped day work tonight. Mr. Napier said it would stop every project but one or two. Mr. Napier said they were currently doing manhole replacements and clean-out replacements. They have a crew doing water line replacements. Councilman Bell wanted to know what contractors were working these projects. Mr. Napier said that Harrison, Walker & Harper are doing manhole replacements, sewer clean-outs and on occasions some sewer lines. Buddy Heuberger is mainly doing water lines but he also does sewer lines. Chip Jenkins and Brown mainly do sewer, but they also do water lines. The Harrison, Walker & Harper crew is more familiar with sewer. Therefore, they stick with primarily sewer lines. Mr. Napier said that Freddy Smith has just finished with the First State Bank Project (the bar) for the city and he has done a few other jobs for the city. Mayor Fendley asked if Harrison, Walker & Harper are doing the manhole replacements and if they bid at the beginning of the year saying they will do each manhole for a certain price. Mr. Napier said they bid it out by the crew. Mayor Fendley asked if there was a variance in manholes. Mr. Napier said there are 4 foot, 5 foot, and 6 foot diameter manholes. Councilman Guest said there is a matrix for that, this is not rocket science, this is manholes. Mayor Regular City Council Meeting July 14,2003 Page 28 Fendley stated that if you know that you are going to have 50 manholes that you are going to replace this year you should be planning for that. Mr. Napier said they do have one manhole that is almost rocket science, it is the whole northwest side of Paris is pretty much flows through this manhole south of Campbell Soup on the Loop where they have two twenty-seven inch water lines, a 10 inch force main and an 8 inch line from Campbell Soup. Campbell Soup is primarily forcing steam through there hot water and the force main kicks on every 10 minutes, and there again, you have a 27 inch pipe pouring almost one-half full most of the time. Mr. Napier said the reason they found it was the cone section has collapsed about three feet. He said this is like excavating, certain excavators do certain things; the bigger the excavator the deeper the reach. Mr. Napier said it is a cost wise thing but it is also more of an efficient type thing. Councilman Bell asked Mr. Napier if these excavators that you price are equal and stated that it is his understanding that they are. Mr. Napier said he would have to go back and look at each individual price. Mr. Napier said that the one that Buddy Heuberger has is an old one and he did not think it has quite the reach. Councilman Bell wanted to know who else Mr. Napier has prices for. Mr. Napier replied Mr. Bray and Mr. Smith. Councilman Bell asked whether we had prices from Hilliard for this equipment. Mr. Napier did not think so, but he has the concrete contract. Mr. Napier said when he took this job there were three people doing day work, and those crews are still doing work. Mr. Napier said since he has been with the city Mr. Bray has inquired about it sometimes and the same school that he has given tonight he has given to him before. Not inquiring about doing day work, but inquiring about looking into day work and they have done some of that and checked on certain areas. Mr. Napier said he has not had time to check into the project in the past before. Councilman Guest asked when they were doing day work in the past, does the city ever do a project at a price not to exceed a limit, or put the cap on the cost ora project if the bids do not exceed a certain number. City Attorney Schenk advised that is to be paid by the day. If you have contracted on that basis, you Regular City Council Meeting July 14,2003 Page 29 have violated the requirements. Councilman Guest said when the city hires these people by the day, the city is not really intending to work them and hire someone else. That has not been our intention, or we haven't exhibited that as our intention. So, when we say we want to do a job that is a thousand feet, for so many dollars a foot, not to exceed ~x" amount. City Attorney Schenk said he has seen that may have happened by default. He has seen where cities have allowed certain contractors to qualify as work by the day contractors. They will provide their experience, indicate equipment available, and state the type projects they do, almost like a proposal; they give their work by the day pricing and then they are qualified to be on the list along with the others to do the particular work that is being done. That work is allocated to the qualified contractor. Councilman Guest brought up a point about two pieces of equipment on the job, who makes that judgement and who monitors these jobs. Mr. Napier said the city inspectors do the inspections. He is not there the whole time but what we have is the three crews that are working. We work three crews because we have three field inspectors. Each one of those inspectors have one crew that they work with and occasionally they will do another job such as subdivision jobs like another phase of The Hills going in. The person doing that is Mr. Jenkins, so, he let the same inspector inspect both projects, who is Dave Daniels. Councilman Bell said he understands that Mr. Daniels has a business relationship with Mr. Jenkins and while he is inspecting his work, he is also drawing rent from Mr. Jenkins and that is with the knowledge of the City Attorney. The City Attorney said he did not have any substantial knowledge of that allegation. Councilman Bell asked City Manager Malone if he was aware of that. City Manager Malone said he had heard that allegation and he thought Earl Smith said something about that. Councilman Bell said if that allegation is true, it makes the city look even worse and he is sure hoping that the allegation is totally untrue and without any merit and he was praying for that because it looks bad when you add that on to the top of this. The cost of machinery, wasted dollars on pipe, overtime that the city can't overtime and this to him does not look good at all under any circumstance. Councilman Bell Regular City Council Meeting July 14,2003 Page 30 said he hopes that city staff can provide the City Council some things. City Manager Malone advised the Council that the inspector does not set the price. Councilman Bell said he did not say he did, but he was saying that the inspector may have a relationship where is drawing money back from that same contractor that he is inspecting. Things do not look good, he does not care how valid that relationship could be, you do not send an inspector out who is representing the City of Paris people and tell him that while he is making money from that contractor, he is checking that contractor' s work. Councilman Bell said he would like for that rumor and allegation to be disapproved as soon as possible, sworn statements from someone saying that is not true or something. Mayor Fendley summarized that city staff should make a list of current work by the day jobs over $25,000.00, details of the water and sewer lines at the Sports Complex, list of overtime paid for work by the day, pricing on the pipe that was questioned, information on the inspector responsible for Mr. Jenkin' s work. Once the information is gather they should report back to City Council. Mayor Fendley wanted to know what the City Council wants to do going forward. Councilwoman Neeley asked if they could wait until they get this information. City Attorney Schenk asked the Mayor if he would like for the staff to prepare a policy and bring it back to the City Council. Councilman Bell asked Mr. Schenk if they need to write an ordinance or a resolution. It seems that two prior resolutions have been overlooked. City Attorney Schenk said he would rather see the city put these kind of documents out and identify some of them in a form for the start ora procurement policy. If it is in manual form it would be available for all procurement and to everyone. Mayor Fendley asked if Council wanted to freeze any day work for new projects over $25,000.00 until they have a chance to look at all of the information. A motion was made by Councilman Bell, seconded by Mayor Pro Tem Regular City Council Meeting July 14,2003 Page 31 McCarthy, that the City of Paris not start any new day work that exceeds $25,000.00 for the total project until the policy has been adopted; and that staff be instructed to look at the cost of all items of labor and material and get the best price or fire the contractors on any existing work; and that the City Attorney be instructed to work with the City Manager on a new policy ordinance, or what ever is necessary to stop this for the future; and set down the specifics of what can and what cannot be done. The motion carried 6 ayes, 0 nays. City Attorney Schenk presented the following petitions for rezoning: Rev. Henry Starks, Lot 18, City Block 259, from a One-Family Dwelling District No. 2, to a Multiple Family One zoning; Gary Ensey, Lots 6 & 7 Block E of the East Suburban Estates Addition from Agricultural District to Multiple Family One District. Mayor Fendley referred the petitions to the Planning and Zoning Commission for their study and recommendation at their meeting scheduled for August 4, 2003, and before the City Council August 7, 2003. Gene Anderson, Director of Finance, came forward to discuss the quarterly financial report. He explained to new Council Members that he gives them information on the key operating funds. Mr. Anderson said he usually states the cash position and in the main operating fund, that being the General Fund, at the end of June 30, 2003, there was $5,968,581.00 in cash and investments. He advised that they normally like to keep a minimum of two months of operating cash balance, three is preferable, but two is minimum, which is $3,578,293.00 and three months operating funds is $5,367,440.00. He said the city was just about where he thinks it needs to be. He said in the Water and Sewer Fund we have discussed that in detail and at the end of June the city was $1,699,000.00 in the hole. The City Council has already taken action to try to rectify that with the adoption of the rates. The other primary operating funds currently are construction funds, which is money Regular City Council Meeting July 14,2003 Page 32 provided by various bond issues. There is a Water and Wastewater issue from 2000 that the city has $5,384,933.00 in with projections on going. Mr. Anderson said the Tax and Revenue 2000 Series Construction Bond fund has a current balance of $3,232,447.00 and there is the Certificate of Obligations 2002 Series, the Police and Court Building Project, which has a current balance of $4,558,762.00. Mr. Anderson advise that if the City Council wanted to look at that at a later time, he has given the exact information for the previous so they could do a comparison from year to year. Mr. Anderson said he pointed out the key revenues, budget verses actual, for both this year and the prior year on the second page of the report. Mr. Anderson said the third page, he has the budget versus the actual on the expenditure side for each of the city departments. He listed the year-to-date actual and the percent expended as of June 30, 2003, and the previous year. Mr. Anderson said the final pages shows how many people have been hired, fired, and are currently employed as previously requested by Councilman McCarthy. Kent Klinkerman, EMS Administrator, came forward and presented the second quarter report for the Emergency Medical Service and gave the City Council a handout showing that the projected nine month cash credits was supposed to be one million fifty thousand dollars and they have exceeded that by $208,050.00, which is an increase of 19.8%. He said the expenses were supposed to be $1,235,249.00 and they exceeded that by $131,700.00 or about 10.7% over the projected budget. He said the top box of the handout shows that the increased revenue exceed the increased expenses by $76,349.80. Mr. Napier came forward advising that in November they had received a preliminary report of the Lost Water Study and since then they have been making repairs based on the report. The report shows that approximately 4.5 Regular City Council Meeting July 14,2003 Page 33 billion gallons of water were treated in 2001 and there was a 17% water loss. Mr. Napier said they hired Carter and Burgess to investigate and they found that a lot was associated with line leaks. Mr. Napier asked Council to turn to the last page and look at the lower left hand portion of the bottom. This shows that meters losses were 17%, pipe line leaks were 75%, the others were more or less minor. Mayor Pro Tem McCarthy asked where the water that is flushed from hydrants fit into this, and Herb Campbell advised that would be in un-billed. Mr. Napier advised that they would find that on Page 4 of the report. Mr. Napier asked the Council to turn Mr. Campbell's memo as it addresses this matter in the first paragraph. Councilwoman Neeley wanted to know if this is something that they are working on correcting. Mr. Napier said they repair the leaks as they find them; otherwise, they have the rusty water complaints that they are replacing. There being no further business, a motion was made by Mayor Pro Tem McCarthy, seconded by Councilwoman Neeley, to adjourn the meeting. The motion carried 6 ayes, 0 nays. CURTIS FENDLEY, MAYOR ATTEST: MATTIE CUNNINGHAM, CITY CLERK