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09/08/2014MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF PARIS, TEXAS September 8, 2014 The City Council of the City of Paris met for a regular session at 5:30 p.m. on Monday, September 8, 2014, at the City Council Chamber, 107 E. Kaufrnan, Paris, Texas. Present: Mayor: Matt Frierson Council Members: Richard Grossnickle; Billie Lancaster; Benny Plata; Edwin Pickle; and A.J. Hashmi City Staff: John Godwin, City Manager; Kent McIlyar, City Attorney; Janice Ellis, City Clerk; Gene Anderson, Finance Director; Alan Efrussy, Planning Director; Shawn Napier, City Engineer; Jerry McDaniel, Public Works Director; Larry Wright, Fire Chief, Kent Klinkerman, EMS Director; Bob Hundley, Police Chief; Priscilla McAnally, Library Director; and Doug Harris, Utilities Director Absent: Council Member: Aaron Jenkins Opening Agenda 1. Call meeting to order. Mayor Frierson called the meeting to order at 5:30 p.m. 2. Invocation. Gene Anderson gave the invocation. 3. Pledge of Allegiance. Council Member Plata led the pledge. 4. Citizens' Forum. Jonathan A. Still, 2010 E. Price Street — he opposed a water rate increase citing the brochure that was mailed to citizens. He said the brochure said the water rates would not be increased if the bond was approved. Chris Dux, 4075 Sunset View — he reiterated what he told the Council on August 25, 2014 during citizen's forum. In summary, he said they had the authority to set rules for public utilities regarding where to place power lines and the public utilities must comply. Regular Council Meeting September 8, 2014 Page 2 Consent Allenda Mayor Frierson inquired of Council Members if they wished to pull any items from the Consent Agenda for discussion. Council Member Hashmi asked that the City Council minutes from August 25 and September 2 be pulled for discussion. Council Member Hashmi said he did not see a reply from the Chamber of Commerce or PEDC about the two items he inquired about. Mr. Godwin said the reason was because the Chamber Director had been out sick due to surgery and the items would be on the next agenda. A Motion to approve the Consent Agenda was made by Council Member Hashmi and seconded by Council Member Lancaster. Motion carried, 6 ayes — 0 nays. 5. Approve minutes from the meetings on August 25, 2014 and September 2, 2014. 6. Receive reports and /or minutes from the following boards, commissions, and committees: a. Historic Preservation Commission (8 -11 -2014) b. Paris Public Library Advisory Board (6 -18 -2014 & 7 -16 -2014) c. Planning and Zoning Commission (8 -4 -2014) 7. Approve the Final Plat of Lot 1, Block A, Folmar Addition CB 155, located at 417 W. Washington Street. 8. Approve the Final Plat of Lot 1, Block A, Turner Industries Group LLC Addition 309, located at 1508 FM 137. 9. Approve the Final Plat of Lot 1, Block A, Lamar Power Partners LP Addition, located at 3205 FM 137. 10. Approve ORDINANCE NO. 2014 -013: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING THE ISSUANCE OF A SOLID WASTE COLLECTION PERMIT TO SANITATION SOLUTIONS FOR THE PURPOSE OF ENGAGING IN THE BUSINESS OF COLLECTING AND /OR TRANSPORTING SOLID WASTE FROM COMMERCIAL AND INDUSTRIAL UNITS WITHIN THE CITY LIMITS OF THE CITY OF PARIS, TEXAS; FINDING A PUBLIC NECESSITY AND CONVENIENCE FOR ISSUANCE OF SAID PERMIT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. 11. Approve ORDINANCE NO. 2014 -014: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING THE ISSUANCE OF A SOLID WASTE COLLECTION PERMIT TO COUNTY WASTE COLLECTION, LLC. D /B /A TRASHY BUSINESS FOR THE PURPOSE OF ENGAGING IN THE BUSINESS OF COLLECTING AND /OR TRANSPORTING SOLID WASTE FROM COMMERCIAL AND INDUSTRIAL UNITS WITHIN THE CITY LIMITS OF THE CITY OF PARIS, TEXAS; FINDING A PUBLIC NECESSITY AND CONVENIENCE FOR ISSUANCE Regular Council Meeting September 8, 2014 Page 3 OF SAID PERMIT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. 12. Approve ORDINANCE NO. 2014 -015: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ISSUING A LICENSE TO COURTESY CAB COMPANY OF PARIS TO OPERATE A VAN SHUTTLE SERVICE ON THE PUBLIC STREETS OF THE CITY OF PARIS, TEXAS; FINDING A PUBLIC NECESSITY AND CONVENIENCE FOR THE ISSUANCE OF SAID LICENSE; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. Regular Agenda 13. Conduct a public hearing, discuss and act on ORDINANCE NO. 2014 -016: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, TEXAS, ESTABLISHING A HISTORIC OVERLAY DISTRICT (HD), ON THE EAST SIDE OF LOT 11 AND THE EAST SIDE OF LOT 12, BLOCK 5, TEXAS & PACIFIC ADDITION, BEING LOCATED AT 60 SYCAMORE STREET, IN THE CITY OF PARIS, LAMAR COUNTY, TEXAS IN ACCORDANCE WITH THE RECOMMENDATIONS OF THE PLANNING AND ZONING COMMISSION AND THE HISTORIC PRESERVATION COMMISSION; PRESERVING THE EXISTING USE AND ZONING DESIGNATIONS OF THE PROPERTY SO DESIGNATED; DESIGNATING THE BOUNDARIES OF THE HISTORIC OVERLAY (HD) SO ESTABLISHED; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND DECLARING AN EFFECTIVE DATE. Planning Director Alan Efrussy informed the City Council that both the Historic Preservation Commission and the Planning and Zoning Commission approved this zoning change. Mayor Frierson opened the public hearing and asked for anyone wishing to speak in support or opposition of this zoning change, to please come forward. Pastor Michael Massey spoke in support of the zoning change. With no one else speaking, Mayor Frierson closed the public hearing. 14. Discuss 4 downtown owners for temporary removal of electric power lines, so that repairs to buildings can progress safely. Pursue reimbursement from Texas Utilities and Oncor. Discuss and take action. Regular Council Meeting September 8, 2014 Page 4 Council Member Lancaster said at the last City Council meeting it was brought to their attention that there were four buildings that were ready to be reworked and in the middle of that work, they were stopped because of a concern of transformers being too close to the building, making it impossible for them to work. She said it was her understanding that those transformers could arc up to ten feet. Council Member Lancaster said she was asking tonight that they temporarily go ahead and pay for the moving of that, but expect reimbursement from Texas Utilities and Oncor. She said based on the fact of safety, three of those transformer units one of which was on Main, one on Grand, and one behind Paris Baby were lower to the ground than was safe if they arc 10 feet. She said she chased down some fed ex trucks to find out exactly how tall they were and they are ten feet eleven inches, which means that they are within that ten feet arcing capability and the place behind Paris Baby was only twelve feet. She also said that made any vehicle in danger of being struck by that electricity. Council Member Lancaster said she thought it is a very bad safety hazard, that she thought they needed to go ahead and help these owners out, they want them to be able to make our city pretty and she certainly did not want to have the electricity that was being supplied to these different buildings to be safe. Council Member Lancaster said she has seen 18 wheelers parked there, making deliveries and they were certainly within the ten feet. She said she would like to open this for discussion. Council Member Hashmi asked her if there were other areas with a similar problem. Council Member Lancaster said there were eleven in the downtown area, there were others not downtown, there was one on 19th Street that was seriously bowed with two transformers on it, but none as low as the three downtown. Mayor Frierson asked Mr. Godwin about the overall cost and about expected reimbursement. Mr. Godwin said this was not something he had dealt with in the past, that Kent McIlyar was doing some research and that Mr. Dux had just given him some information, but he had not read it yet. He also said Council Member Lancaster had done some research too and this was something worth pursuing. Mr. Godwin said if they wanted people to invest in their downtown, then it was their responsibility to try and help them. He said he had structured a potential grant program and he thinks these people would be the first people on the list no matter what because they're ready to go. Council Member Lancaster said these three should be an exception, because they are talking about a safe issue brought up by Oncor. She said they should help them but expect reimbursement from Oncor. Mr. Godwin said he did not disagree and when you have someone who wanted to do something with a downtown building, they should help them out as much as they reasonably could. Council Member Lancaster said this was a safety issue, because electricity was going to go the least resistance route and that may up, sideways, or down. Oncor representative David Collier said the law prohibited them from working ten feet of the primary area. Council Member Lancaster said she counted one at seven and one -half feet, so that definitely was within the ten feet. Mr. Collier explained if someone was working within that primary area they would have to be certified, because the primary wire holds the 7200 volts. Regular Council Meeting September S, 2014 Page 5 Council Member Lancaster reiterated these three properties were an exception, and expressed concern about safety issues. Mayor Frierson inquired of Mr. Collier about reimbursement. Mr. Collier said they would try to work with the City and that he would meet with the City Manager to look at options. Mr. Collier said there were a lot of problems you run into when placing utilities underground when the buildings were on the sidewalks. Council Member Lancaster said she was asking for something temporary. Mr. Collier said they would have to address with Peoples Bank about the three transformers and if they could get them to take a different point of delivery for their meeting point, which could be served from the rear of their bank. He said if this happened, they could serve secondary service for the remaining of the customers. Mr. Collier said Oncor had not heard back from Peoples Bank. Council Member Lancaster wanted to know if he had a timeframe citing that these people already had building permits. Mr. Collier said he was waiting to hear from Peoples Bank. Council Member Hashmi asked if the City could create a law that would force Oncor to move the line. Mr. McIlyar said Oncor was probably operating in the right -of -way, or a utility easement had been granted to them. He said if they had a valid utility easement or right -of -way they had a right to run their power lines and utilities and that he was not aware of the City having a right to force them out of that area. Council Member Lancaster asked if Oncor had a responsibility to do so within safety regulations. Mr. McIlyar agreed that safety was one of the City's better arguments. Council Member Lancaster said it was absolutely not safe and wanted to know who was responsible if someone got killed. Council Member Hashmi asked if an ordinance could be written addressing a safety range that utility companies have to follow. Mr. McIlyar said Oncor was a statewide utility and they had a tariff issued by the State and the State had more regulatory authority. Council Member Hashmi referenced what Mr. Dux read and thought he understood that the City could make and implement a rule about this. Chris Dux said the City had regularity authority within the confines of the municipality. He said according to the public utilities act, they could make rules governing the public utility as long as they were reasonable and in the interest of public health and safety. He said if they looked at the information he gave to Mr. Godwin there was also a statement that talks about any of their expenses are pass through expenses to any utility or electrical retail customer that they provide services to. Mr. Dux said it would be paid by all of the customers that get their electricity through an electrical retailer that uses Oncor' s lines so the cost would be spread amongst hundreds or millions of customers, not the people in Paris Texas. Council Member Hashmi said as Council Member Lancaster point out if it is a safety hazard and it needs to be done, then they should do it. Council Member Hashmi also said if law permits the City to write an ordinance then he did not see any harm in doing so. Mr. McIlyar said he would be happy to look at what Mr. Dukes gave Mr. Godwin and get with Mr. Collier, as well to see what they could come up with. Regular Council Meeting September 8, 2014 Page 6 Council Member Lancaster said she would like to make a motion to go ahead and help these people. She said Oncor had given them a $13,000 price tag and as unsafe as it is, by Mr. Collier's own admission, that the City was due that money back. Council Member Lancaster also said they have people with permits to do the work, the people have limited time, they are ready to go, they are doing what the City asked them to do and the City ought to help remove an obstacle that keeps it from happening. Council Member Pickle said it would be just a temporary fix. Council Member Lancaster said she was trying to address the problem, so they could move forward. Mr. Dux said he thought there were two possible solutions, and one was to install taller poles and get the temporary lines and their connection to the transformers above the buildings sufficient. Council Member Lancaster said they did that on Bonham Street. Mr. Collier said if the Bank takes the service from their existing point of delivery, which is behind the bank now, they would have several options. Council Member Lancaster said doing that would remove the danger. Council Member Pickle inquired about the expense and Mayor Frierson said it was his understanding that the bank was willing to share the expense. Council Member Hashmi said he thought they should move forward with sharing the expense and get this done. Mayor Frierson said they did not really know the price tag or all of the options. He said he did not want to downplay safety or the need to help property owners but felt they should explore several different avenues. Council Member Pickle said the banks was interested in cost sharing and were going to put some numbers together on maybe a three way split. Council Member Lancaster pointed out there were still two other buildings that had the same problem. Council Member Lancaster said she did not want to let Oncor off the hook. Mayor Frierson asked if the property owners would get with Mr. Collier and Mr. Godwin and then maybe meet with Peoples Bank to reach a conclusion. Council Member Lancaster said she was certainly for moving on it as fast as they could, as a lot of time had already been lost. Mayor Frierson asked Council Member Lancaster if she wanted to withdraw her motion as they were going to be discussing a program under item 20. Council Member Lancaster said she wanted to move forward in making repairs and if this was the only way they could get any money. Mr. Godwin said this was a council decision and if they appropriated the money, then the money would be provided. Mr. Godwin said item 20 allowed for a matching grant, so that would be a lesser amount of money. Council Member Hashmi asked Council Member Lancaster if she would be satisfied if they put this item on an upcoming agenda. She said she wanted it done pretty quickly. Council Member Hashmi asked her if it would be okay to delay it for a week allowing time to get an answer from the bank. City Council discussed the expense of $13,000 and splitting it three ways. Mayor Frierson said Mr. Godwin reminded him of the special meeting next week and they would place this item back on the agenda. Council Member Lancaster said she could work with that. Council Member Hashmi asked Mr. McIlyar to research to see if they could create an ordinance. Council Member Hashmi asked if this item Regular Council Meeting September 8, 2014 Page 7 was tabled. Mayor Frierson asked Council Member Lancaster what she wanted to do and she said she would withdraw it with stipulation. A Motion to table this item until September 18 was made by Council Member Hashmi and seconded by Council Member Lancaster. Motion carried, 6 ayes — 0 nays. 15. Conduct the first public hearing on the City's proposal to increase tax revenues from the preceding tax year and to set the tax rate for 2014. City Manager John Godwin explained that two public hearings were required, because the ad valorem tax rate would remain the same as the current year ($0.50195/$100 valuation) and there were increased valuations. Mr. Godwin said the second public hearing was scheduled for Thursday, September 18. Mayor Frierson opened the public hearing and asked for anyone wishing to speak about this item, to please come forward. With no one speaking, Mayor Frierson closed the public hearing. 16. Conduct a public hearing on the City Manager's proposed Budget for fiscal year 2014- 2015. Mr. Godwin reviewed with the City Council highlights of the proposed budget as follows: a flat tax rate (50.195) that results in an increase of $189,690 from the current year's budget; an increase in water & sewer rates consistent with the annually required rate study analysis; a new $0.70 per month per customer fee to offset the cost of a new sanitation truck every two years; One new employee, in the parks department, beginning April 1, 2015; an increase of $50 per month per employee and retiree to help offset the increased cost of insurance; a new seniority step in the police department that will result in twenty sworn personnel receiving increased pay, effective 01/01/15; a new system in the fire department like the one that has been in place in the police department for many years, resulting in raises for 51 firefighters receiving increased pay, effective January 1, 2015; a new system in the fire department like the one that has been in place in the police department for many years, resulting in raises for 51 firefighters receiving increased pay, effective January 1, 2015; a change in the pay system for full -time EMS staff to a 40 -hour work week, resulting in raises for all 21 full -time EMTs and paramedics, effective October 1, 2014; creation of an eighth step for non -civil service employees, resulting in raises for 34 employees in 2015, and approximately 40 more in 2016; a reserve of $80,000 to be duplicated in 2015 -16 for a restroom building at the fairgrounds; approximately $31,000 for wet -well rehabilitation; one new ambulance and one new defibrillator; one new garbage truck; up to $30,000 to purchase land for a future EMS station in northwest Paris; and order a new fire engine, with the first payment due October 1, 2015 (2015 -16 budget year). Council Member Plata and Council Member Hashmi said their preference was to give all employees a raise. Council Member Plata said he would like to see a flat rate, because that Regular Council Meeting September 8, 2014 Page 8 would help lower paid employees. Council Member Hashmi said he was good with either a flat rate or the percentage method. Council Member Grossnickle said under the proposed budget, a total of 208 employees would be receiving raises and that the department heads agreed with Mr. Godwin. Council Member Pickle said the plan presented by the city manager establishes a long term plan. Council Member Hashmi said he would like for the $30,000 allotted for EMS property be taken out and PEDC approached about giving the city land to build a station. Mr. Godwin said he would present that request to PEDC in October. Council Member Hashmi asked the manager to look at other ways to pay for a garbage truck instead of collect a fee from the citizens. Mr. Godwin said two years from now the City would need to purchase a truck and if they saved for it over the period of two years then they would not have to figure out how to pay for it at that time. Council Member Hashmi expressed concern about the proposed water rate increase and said he understood it was not because of the bond election, but because there was less usage by industries. 17. Discuss and act on a Resolution calling a public hearing on proposed amendments to the proposed budget for fiscal year 2014 -2015. Mr. Godwin told the Council a public hearing would be required should the Council increase any item in the budget. It was a consensus of the City Council to not increase any item in the budget. 18. Discuss and act on ORDINANCE NO. 2014 -017: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING SECTIONS 34- 22(b), WATER RATES AND SECTION 34- 23(a), (b), AND (c), SEWER RATES, OF CHAPTER 34 OF THE CODE OF ORDINANCES OF THE CITY OF PARIS, TEXAS TO REFLECT CHANGES RECOMMENDED BY THE 2014 WATER AND SEWER RATE STUDY; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. A Motion to bring this item from the table was made by Council Member Hashmi and seconded by Council Member Plata. Motion carried, 6 ayes — 0 nays. Finance Director Gene Anderson said the City had an independent consultant conduct a cost of study survey every year and the purpose of that was to determine both the contract rates for the contract customers and the noncontract rates, which were residents and commercial accounts. He also said as part of that study, the current retail and commercial account rates were determined not to be sufficient to generate enough cash flow for the City to operate at this time. Mr. Anderson said this proposed increase did not have anything to do with the bond issue at all, but had to do with the reduction of consumption by the City's contract customers. He explained that they increased their efficiency which lowered their peak demand for water. He said they reduced their consumption and they lowered their peaking demand, but the City still had certain infrastructure cost that had to be paid for regardless and the only other place to go for that Regular Council Meeting September 8, 2014 Page 9 revenue that was through the residential and commercial section, because everything else was determined by contract. Mr. Anderson recommended that Council adopt the rate in the study, because it was done by an independent outside firm that had no stake in the matter. He said if they did not, the City would not have the needed cash flow. Mr. Anderson also said they need to follow the City's rate maintenance policy that was adopted some years ago, which basically states the City will set the rates where they need to be and the rate study determines that. Mr. Anderson said they also have to maintain a certain reserve based on outstanding debt and referenced the reserve policy. He reminded City Council that the operating reserve policy is to maintain four months of operating money in the water and sewer fund. Council Member Grossnickle said everything Mr. Anderson said was true. He said several years back reserves were far more dangerously low and part of the charter was adopted just to safe guard against this same thing happening. He said he knew it wasn't popular but was necessary for operation of the City. He also said he would like to see if they could renegotiate some of the contracts with higher volume customers, because it did not seem fair that that the public had to pay this. Mr. Anderson said when delayed earlier in the year, it cost the City approximately $275,000. Mayor Frierson inquired if it was financially feasible to not increase the rate and Mr. Anderson told him he did not think so and thought it would be financially irresponsible to not increase the rate. Council Member Lancaster asked if the City had ever been able to lower the rate. Mr. Anderson said yes, but it had been a number of years ago. Council Member Pickle said this was a plan and plans were needed. He said if they pay for it now, it would be easier than years from now. A Motion to adopt the rate increase was made by Council Member Pickle and seconded by Council Member Grossnickle. Motion carried 3 ayes -1 nay, with Council Member Plata casting the dissenting vote. Council Member Hashmi and Council Member Lancaster abstained from voting on this item. 19. Discuss and act on ORDINANCE NO. 2014 -018: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING SUBSECTION 16- 28(b), ARTICLE II CHAPTER 16, OF THE CODE OR ORDINANCES OF THE CITY OF PARIS, TEXAS TO PROVIDE FOR AN ADDITIONAL .70 (SEVENTY CENTS) FEE FOR RESIDENTIAL ACCOUNTS WITH REVENUES BEING USED TO FUND THE PURCHASE OF SANITATION EQUIPMENT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Mr. Godwin said this item was discussed during budget discussions and he recommended replacement trucks be funded by a charge of an additional $0.70 per customer per month. He further said this fee would generate about $70,000 per year allowing the City to purchase a new garbage truck every two years. Regular Council Meeting September 8, 2014 Page 10 A Motion to approve this item was made by Council Member Pickle and seconded by Council Member Grossnickle. Motion carried, 6 ayes — 0 nays. 20. Discuss new policy options for assistance with downtown electric power lines and possibly take action. Mr. Godwin presented the City Council with a proposed program to assist downtown property owners committed to making improvement to their downtown properties. He said staff was suggesting a matching grant program that would make relocation of electric lines more affordable. Council Member Hashmi favored the program but stated the stipulation that the property had to be in the historic district should be removed. He also said he thought the grant should be $2,500 and not $5,000 and that the grant should be limited to the property and not the person, because a person may have several properties. Mayor Frierson said he thought the grant should be in the amount of $5,000 because some of the projects were going to be large. A Motion to approve this program was made subject to the provisions that the amount would be $5,000, the stipulation that the property must be in the historical district be removed, and the grant would be awarded for the property not a person. Council Member Plata seconded the Motion. Motion carried, 6 ayes — 0 nays. 21. Consider and approve future events for City Council and /or City Staff pursuant to Resolution No. 2004 -081. Mr. Godwin reminded the City Council of the upcoming meeting with PEDC on September 15 and the special session scheduled for September 18. Council Member Hashmi inquired if Mr. Deffenbaugh was going to attend the joint meeting with PEDC and Mr. Godwin said he was not. Council Member Hashmi said if Mr. Deffenbaugh was not coming to the meeting that he was not going to be at the meeting. 22. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Pickle and was seconded by Council Member Lancaster. Motion carried, 6 ayes — 0 nays. The meeting was adjourned at 7:10 p.m. �1 MATT FRIERSON, MAYOR NICE ELLIS, CITY CLERK