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1991MINUTES OF THE FAIRGROUNDS COMMITTEE OF THE CITY OF PARIS May 20, 1991 The Fairgrounds Committee of the City of Paris met Monday, May 20, 1991, 6:00 P. M., Council Chambers, City Hall, Paris, Texas. Chairman Billy Joe Burnett called the meeting to order with the following members present: Councilman Jim Bell, and Councilwoman Smith. Also present was City Manager, Michael E. Malone, City Attorney, T. K. Haynes, and City Clerk, Mattie Cunningham. Chairman Burnett announced the first item on the agenda was discussion of lease agreement between the Red River Valley Fair Association and the Paris Rodeo and Horse Club. Chairman Burnett called the Committee's attention to Article 2 Rent, Gross Receipts Defined, and Statement of Gross Receipts of the lease agreement between the Red River Valley Fair Association and the Paris Rodeo and Horse Club. Chairman Burnett stated he did not have a problem with this section of the lease, but would like to see an addendum incorporating this article into the lease agreement between the City of Paris and Red River Valley Fair Association. City Manager Malone read Article 2 for the benefit of the Committee and for those in the audience as follows: ARTICLE 2. RENT Consideration If 2.1. Sublessee agrees to make improvements on the subleased premises to the extent of ten per cent (10 %) of it annual gross receipts. Sublessee agrees and covenants that it will expend during each year for such purpose ten per cent (10 %) of its total gross receipts for the five year term of this sublease. However, in the event Sublessee expends in excess of ten per cent (10 %) during any one year hereof for such purpose, such excess may be credited on the total amount to be expended by Sublessee hereunder. GROSS RECEIPTS DEFINED #2.02 The term "gross receipts" as used in this sublease means all sums of money received by Sublessee from all business conducted on or from the subleased premises by Sublessee and all others, whether such money be evidenced by check, credit, charge, exchange, or otherwise. a. The term "gross receipts" includes, but is not limited to, the following: i. The amounts received from the sale of merchandise or services sold or performed in, on, or from the subleased premises. ii. Proceeds from rentals of the premises. Page 2 Fairground Committee May 20, 1991 iii. The amounts received from the rentals of stalls in the horse barn located on the premises. iv. The amounts received for ticket sales for any activity on the premises. V. The amount received for Sublessee's annual rodeo. vi. The amounts received from any other source. vii. The terms "sums of money" shall include services rendered or value received by Sublessee from others in lieu of money received for use of the premises. This does not include donated services for charitable purposes. STATEMENT OF GROSS RECEIPTS #2.03. On or before the 15th day following the end of each quarter of each year of this Sublease, Sublessee must furnish Sublessor with a true and accurate statement, signed by Sublessee or by an authorized representative of Sublessee, showing its gross receipts for each month during the term of this sublease and any extension of this sublease. For the purposes of this paragraph, "Each quarter" means May 15th, August 15th, November 15, and February 15 of each year, beginning August 15, 1991. Sublessee agrees to provide its statement of gross receipts to Sublessor by sending a copy to Sublessor's mailing address, located at P.O. Box 964, Paris, Texas 75460, or at such other location or locations as Sublessor shall from time to time designate by written notice to Sublessee. BOOKS AND RECORDS OF SUBLESSEE #2.04 Sublessor and authorized representatives of Sublessor shall have the right to examine the statements, paragraph at the leased premises during Sublessee's regular business hours. If, on examination of the books or records of Sublessee, a material error shall be revealed in favor of the Sublessor that results in additional gross receipts, then the reasonable costs of the examination must be paid by Sublessee to Sublessor. Otherwise, Sublessor will bear the cost of the examination. Sublessor's right to examine the statements and supporting documents shall be limited to no more than twice each year of the sublease upon reasonable notice to Sublessee. Failure of Sublessee to report all gross receipts shall be grounds for the termination of this agreement upon written notice from Sublessor to Sublessee of a material error and the error is not corrected within thirty days." Councilman Bell said he sees problems with the lease between the City of Paris, and the Red River Valley Fair Association, and pointed out that on page two of that lease, the description of what the rent would be is not defined as well as it is in the lease with the Fair Page 3 Fairground Committee May 20, 1991 Association and the Paris Rodeo and Horse Club. Councilman Bell said he did not know if we could pull Section 2.02 out of that lease and insert it into the lease between the City and the Fair Association. Councilman Bell said that there are other thing that is going to have to be greatly expanded. Councilman Bell pointed out that what is not defined in the City's lease with the Fair Association is gross receipts, it does not explain it, break it out, or clarify it. City Attorney Haynes advised that the sublease is an instrument agreed upon by the Fair Association and the Paris Rodeo and Horse Club, and it is completely separate and apart from the lease the City has with the Fair Association, that the language has been in the City's lease for approximately 30 years. City Attorney Haynes did say that there has never been a question regarding gross receipts before. Councilman Bell told the Committee that in checking for background information, he does not feel there is any question that the Fair Association is spending the 10% required by the lease, but the definition that they are going to spend 10% of annual gross receipts is not defined. Council Bell gave an example of, do you take the gross receipts off the bingo operation, which is $118,000.00, or do you take the gross receipts off of their consolidated statement, which shows a net income of $41,000.00 for the bingo operation. Councilman Bell asked the question, is gross receipts all of the bingo receipts? City Attorney Haynes answered no, because State law says it is not, if State law did not define gross receipts, then it would be the total amount of receipts from bingo. City Attorney said that according to State Law, you have to give back a certain amount for prizes, and the amount of the prizes is not taxed. Chairman Burnett asked City Attorney Haynes if the State Law states that the amount of the prizes can not be included as gross receipts? City Attorney Haynes answered no, but it says it is really not income, and gross receipts is something even larger normally than income. Councilman Bell told the Committee that in discussions with parties, he was under the impression that the City of Paris was named as an additional insured on all liability policies, but in checking, found out that is not true, and requested that the Council request an amendment to all leases that the City be named in all liability insurance policies as an additional insured. After further discussion, a motion was made by Councilman Bell to recommend to the City Council that the City Attorney get with a representative from the Fair Association in order to amend their lease with the City of Paris, clarifying Gross Receipt, and to use as a guide Article 2 of the sublease between the Fair Association and the Rodeo and Horse Club and to also address bingo. The motion was seconded by Councilwoman Smith, and carried 3 ayes, 0 nays Page 4 Fairground Committee May 20, 1991 Jess Nickerson, Attorney for the Red River Fair Association, pointed out there will be a change in the legal description in the sublease with the Paris Rodeo and Horse Club due to the horse barn reverting back to the Fair Association, and the legal description will be furnished later. Mr. Nickerson called the Committee's attention to Page 2, Section 1.02, Subsection b., which involves the option to extend the term, where it mentions August 12, 1996 and November 12, 1996, this will be corrected to read 1995 instead of 1996. Mr. Nickerson also called attention to the limits of insurance under Article 7, beginning with page 6, the limits of insurance will be change to $250/$500/100 which will conform to State law. Councilman Bell made a motion to recommend to the City Council to approve the sublease between the Red River Valley Fair Association and the Paris Rodeo and Horse Club as it is written with the above mentioned changes. The motion was seconded by Councilwoman Smith, and carried 3 ayes, 0 nays. Chairman Burnett announced the next item on the agenda was discussion of lease agreement between the Red River Valley Fair Association and the Lamar County Human Resource Council, and the Lease Agreement between the Red River Valley Fair Association and the Paris Jaycees. Chairman Burnett said one of the thing that was bothering him was the Fair Association was charging the Paris Jaycees $120.00 a night for bingo, and charging the Department of Human Resources $163.00 a night. Gordon Hogue, Director of the Red River Valley Fair Association, was present explaining that the Paris Jaycees furnishes the equipment for bingo, they play two session per week, whereas, the Department of Human Resources will be playing three times a week, part of their rent will be coming to the Fair Association, where the Fair Association reimburses the Jaycees $350.00, so the rental fees are very comparable. Mr. Hogue said both parties are aware of this and has agreed to this arrangement. Chairman Burnett made the statement that the financial statement submitted to the City from the Fair Association was very vague, and went over a portion of the statement including rent for the two organizations. Councilman Bell requested that the income be broken out on the copulation in order to provide a much more clearer picture of the Fair Association's income. After discussion was had with Mr. Hogue, and City Attorney Haynes, it was the consensus of the Committee to have W. E. Anderson, Director of Finance for the City of Paris, review the financial statements the City has received, report back to the Committee of what he needs to make a judgement in order to satisfy the needs of the City of Paris, and how often he needs this information, then report back to the Committee. Page 5 Fairground Committee May 20, 1991 A motion was made by Councilman Bell to recommend the approval of the lease agreement between the Red River Valley Fair Association and the Paris Jaycees. The motion was seconded by Councilwoman Smith, and carried 3 ayes, 0 nays. A motion was made by Councilman Bell to recommend the approval of the lease agreement between the Red River Valley Fair Association and the Lamar County Human Resource Council. The motion was seconded by Councilwoman Smith, and carried 3 ayes, 0 nays. Chairman Burnett announced that the time, date, and place of the next meeting would be set at a later date. There being no further business, the meeting adjourned. BILLY JOE BURNETT, CHAIRMAN ATTEST: M TTIE CUNNINGHAM, CITY CLERK June 5, 1991 MEMORANDUM TO : MIKE MALONE, CITY MANAGER FROM GENE ANDERSON, FINANCE DIRECTOR SUBJECT INQUIRY OF THE FAIRGROUNDS COMMITTEE In order for the City 'of Paris to have a clear _understanding of the financial condition of the Red River Valley Fair Association, the lease agreement should incorporate one of the following options: Option One The City of Paris or its designated representative shall have full and complete access to all Fair Association records necessary to perform an audit of the Fair Association's financial records in accordance with generally accepted auditing standards. The cost of this annual audit shall be refunded to the City by the Fair Association within thirty days of being billed for said audit by the City of Paris. Option Two The Fair Association shall have an annual audit of its financial records prepared by a Certified Public Accountant in accordance with generally accepted auditing standards. This audit must be prepared using either an accrual basis or a cash basis of accounting. No other reporting basis is acceptable and the accrual basis is the preferred method. This audit is due on or before the first day of May of each year. Gene Anderson Finance Director y�g1 A _rte .ii�`> • ���ys` MINUTES OF THE FAIRGROUNDS COMMITTEE OF THE CITY OF PARIS June 6, 1991 The Fairgrounds Committee of the City of Paris met Thursday, June 6, 1991, 5:00 P. M., Council Chambers, City Hall, Paris, Texas. Chairman Billy Joe Burnett called the meeting to order with the following members present: Councilman Jim Bell and Councilwoman Smith. Also present was City Manager, Michael E. Malone, City Attorney, T. K. Haynes, Director of Finance, W. E. Anderson, and City Clerk, Mattie Cunningham. Chairman Burnett announced the purpose of the special meeting was discussion of sublease agreement between the Red River Valley Fair Association and the Paris Rodeo and Horse Club. there was no discussion needed regarding the sublease agreement between the Red River Valley Fair Association and the Paris Rodeo and Horse Club. Chairman Burnett called for discussion of lease agreement between the Red River Valley Fair Association and the City of Paris, pointing out a memorandum from Gene Anderson, Finance Director for the City of Paris, with two recommended options which could be used in clarifying the needs of the City in establishing a clear understanding of the financial condition of the Red River Valley Fair Association, and they are as follows: Option One The City of Paris or its designated representative shall have full and complete access to all Fair Association records necessary to perform an audit of the Fair Association's financial records in accordance with generally accepted auditing standards. The cost of this annual audit shall be refunded to the City by the Fair Association within thirty days of being billed for said audit by the City of Paris. Option Two The Fair Association shall have an annual audit of its financial records prepared by a Certified Public Accountant in accordance with generally accepted auditing standards. This audit must be prepared using either an accrual basis or a cash basis of accounting. No other reporting basis is acceptable and the accrual basis is the preferred method. This audit is due on or before the first day of May of each year. Mr. Anderson explained that after review of the minutes of the previous meeting, it was his understanding that the Committee wanted a recommendation that would satisfy the needs of the City of Paris, he assumed the needs of the City of Paris was to be able to understand the financial condition as well as the operation of the Fair Association. Mr. Anderson said he felt that there was two ways that could be done. page 2 Fairgrounds Committee June 6,1991 With the first option, Mr. Anderson said we would include in the lease a provision that the City or designated representative would have full access to records, all records necessary to conduct an audit, and what the City would do is hire a CPA firm to conduct an audit and report back to the City, passing the cost on to the Fair Association. With the second option, Mr. Anderson said it would allow the Fair Association to hire an outside auditor to have an audit done, and furnish the City a copy of that audit. Mr. Anderson advised the Committee that in order to have an understanding of what the Fair Association is doing, the audit would need to be prepared on either an accrual basis or a cash basis of accounting, the accrual would be the best because you can tell more about their conditions, but it would also be the most expensive method. Mr. Anderson said if you have an audit done on a cash basis, it would tell the City a lot. Councilman Bell said that he and Councilman Burnett both agreed that some of the problem with the Fair Association's Financial Statements is their statements, they were not standardized, there was a number of questions in them, they were not clearly defined as to what some gross receipts were, and what we were asking for was that the lease define some of those things, also Councilman Bell felt that what we were asking for is for the lease with the Fair Association to prescribe a format in which documents will be submitted to the City. Councilman Bell also stated that he would like to see the records open for review. City Attorney asked if our purpose was to find out if the Fair Association is being straight with the City on the gross income that they are suppose to being investing in the property, or do we wanting to look beyond that to see what their financial conditions is? The committee felt that it was the responsibility of the Council to insure both of those conditions. Mr. Anderson told the Committee that there was two thing that the City could do that a Certified Public Accountant does that is less than an audit, one is something similar to what you have seen, a compulation. Mr. Anderson said a compulation can be done on an accrual or cash basis, and generally accepted accounting principal specify the format. Mr. Anderson said there is a step between that and an audit called a review report which is a representation of management, but the CPA goes one step further in making inquires into personnel, they do not review internal control, but they asked how thing are done, and analytical procedures on the financial data to see if it is reasonable and realistic, they would also do sampling. City Attorney Haynes addressed the question of gross receipts, stating there was no dispute of gross receipt, that it was the top figure before anything has been deducted, and City Attorney Haynes read the law regarding gross receipts. page -i Fairgrounds Committee June 6,1991 Councilman Bell made a motion to recommend to the Council that the Director of Finance, W. E. Anderson, get with the Accountant for the Red River Fair Association and see if they could come up with an acceptable format for the Fair Association's financial statements, definition of what will be included in those financial statements, and recommended to the Council that the sublease between the Fair Association and the Paris Jaycees, and sublease between the Fair Association and the Lamar County Human Resource Council not be approved until those items are worked out with the Fair Association, but that in all cases, the City would not withhold that approval if this causes undue hardship, or prevents anyone from operating at the Fairgrounds. Councilman Bell stated that he wanted to clarify that the City is withholding approval, not because of a problem with the sublease or terms of the sublease, but for specific definitions in order to be administratively clear. Councilwoman Smith seconded the motion, and the motion carried 3 ayes, 0 nays. Chairman Burnett announced that the time, date, and place of the next meeting would be set at a later date. There being no further business, the meeting adjourned. BILLY JOE BURNETT, CHAIRMAN ATTEST: MATTIE CUNNINGHAM, CITY CLERK MINUTES OF THE FAIRGROUNDS COMMITTEE OF THE CITY OF PARIS June 5, 1990 The Fairgrounds Committee of the City of Paris met Tuesday, June 5, 1990, at 7:00 P.M., in the Council Chambers of the City Hall, Paris, Texas. Chairman, Billy Joe Burnett called the meeting to order with the following members present: Councilman Marshal H.- Kent, Jr., and Councilwoman, Emma Smith. Also present was City Manager, Michael E. Malone, and Assistant City Clerk, Barbara Denny. Chairman Burnett announced the purpose of the meeting was discussion of Fairgrounds operations, procedures and policies, and opened the floor for those in the audience who wished to speak in regard to these matters. Mr. Jesse Nickerson, representing the Red River Valley Fair Association, came forward stating the main purpose they had requested this meeting was for clarification and to inform them as to what was happening with the Paris Rodeo and Horse Club. Chairman Burnett stated individuals were advising members of the Committee the Red River Valley Fair Association felt they were against a stacked Council Committee, and he stated the Committee was not against anyone but are here to represent the City of Paris in what is best for the City of Paris. Mr. Nickerson stated he had not heard this from anyone. He stated he would like to explain the reason he got involved in these problems. At the present time, groups other than the Paris Rodeo and Horse Club which appeared before the Council are working with the Fair Association in solving their problems. He said the Red River Valley Fair Association's main concern is in meeting the conditions or 'obligations to the City of Paris. Mr. Nickerson mentioned a large meeting which was conducted two months ago between the Red River Valley Fair Association and the Paris Rodeo and Horse Club regarding the Red River Valley Fair Association's having a rodeo after the Paris Rodeo and Horse Club held theirs. Three attorneys attended this meeting. They were Jesse Nickerson representing Red River Valley Fair Association, T. K. Haynes representing the City of Paris, and Bill Flanary representing the Paris Rodeo and Horse Club. He stated the Red River Valley Fair Association's rodeo was a major conflict between the two organizations. Mr. Nickerson also stated the original name of the.Red River Valley Fair Association was the Exposition Organization. This organization originally entered into the lease with the City of Paris for the fairgrounds. He stated one of the main conflicts in the original two leases which directly effects the City of Paris was the provision which says the Exposition could not sublease the facilities to a lessee without City of Paris approval. Mr. Nickerson stated at the time the Paris Rodeo and Horse Club subleased the property from the Red River Valley Fair Association, which leases from the City of Paris, it was under the name of the Exposition. The second critical point of the lease is any improvements made to the property leased by the Red River Valley Fair Association remain property of the City of Paris. In the Fairground Committee Minutes June 5, 1990 Page 2 sublease by the Paris Rodeo and Horse Club, it states any improvements which the club makes to the property may be removed at the end of their lease. Mr. Nickerson has spoken with T.K. Haynes, City Attorney, who feels this part of the sublease directly affects the City of Paris. This a point which has got to be resolved. Mr. Nickerson stated in 1987, the original lease to the Exposition was done away with entirely which released both organizations from their original obligations. The Paris Rodeo and Horse Club sublease was subject to the old lease made by the Exposition organization. The City of Paris made a new lease with the new organization, the Red River Valley Fair Association as it exists today. According to Mr. Nickerson, under the old lease and the law the Paris Rodeo and Horse Club could not sublet those premises without written authority of the Exposition, and the Exposition could not sublet without the City of Paris approval. Mr. Nickerson stated he felt the City of Paris had been brought up -to -date with the accounting information they had requested. Mr. Nickerson said after the Targe meeting with the Paris Rodeo and Horse Club with the three attorneys in attendance, it was decided the three lawyers would meet and see what could be done. When the three attorneys met the next day, it was their consensus a list of proposed principles of agreement would be drawn up in order to put problems behind the organizations and move -forward-. It was agreed that Mr. Nickerson would draw up a list of the proposed principles of agreement of the three groups. Mr. Nickerson sent this information to the attorneys. Considerable time elapsed, and he had not heard from the Paris Rodeo a -nd Horse Club. Mr. Nickerson called Mr. Flanary who stated he had not heard from the Paris Rodeo and Horse Club. At the initial meeting, it was pointed out if something could not be worked out there was only one remedy left, and that was to go to courthouse. Eventually, Mr. Nickerson stated he got a response from Mr. Flanary which was that the Paris Rode and Horse Club had rejected all proposals and he was withdrawing as the Club attorney. Mr. Nickerson stated it was about this same time period that a committee was appointed. He said at his suggestion the Red River Valley Fair Association decided to called a meeting on a Monday night and invite every group that dealt with the Fair Association to try and explain what was really going on. Several groups stayed at the meeting. A large number of Paris Rodeo and Horse Club individuals came to the meeting (approximately 50) and all but three members of the Rodeo Club left. Mr. Nickerson stated that at the time of the meeting he felt the Red River Valley Fair Association needed some type action within ten days. He was notified last week that Barney Sawyer was Paris Rodeo and Horse Club's new lawyer and he was writing a letter that the Paris Rodeo and Horse Club felt the old lease with the Exposition organization was still good. They had exercised the option to extend lease, and were Fairground Committee Minutes June 5, 1990 Page 3 going to fight the Red River Valley Fair Association to keep them from putting on their rodeo after Paris Rodeo and Horse Club's rodeo. This action was what caused the Red River Valley Fair Association to obtain a temporary injunction. Red River Valley Fair Association felt their only alternative was to file a suit under a declaratory judgement action which is where you ask the court to determine the existence of a contract or what the the terms are. Mr. Nickerson stated the Fair Association felt this was the fairest thing to do. He said the Fair Association is not interested in removing Paris Rodeo and .Horse Club. Mr. Nickerson said he has talked with Paris Rodeo and Horse Club's new attorney and indicated Red River Valley Fair Association wants to set down and try to work out problems. He still does not have any response as of this date. Mr. Nickerson stated at any time the Fair Association is willing to set down and talk with Paris Rodeo and Horse Club. Court action can be dropped at any time. Councilman Kent asked what the ground rules were for terminating their contract in 1987. Mr. Nickerson replied he was not involved, but looking at the documents reflecting what occurred was the City and the Exposition organization agreed to do this, but he doesn't know why. He stated Red River Valley Fair Association and the City of Paris immediately ente "red into a new lease. Councilwoman Emma Smith wanted to know if the Fair Association had a rodeo in the beginning. She wanted to know who had the rodeo in the beginning. Mr. Nickerson said the Rodeo Club put on the first professional rodeo, but their type* of rodeo had changed to the current amateur rodeo. The Red River Valley Fair Association wants to put on a professional rodeo at this time, and Paris Rodeo and Horse Club wants to put on an amateur rodeo. Mr. Nickerson stated that the lawsuit was a last resort after the Paris Rodeo and Horse Club had threatened to do so themselves. Mr. Nickerson stated any new lease that is entered into has got to be approved in writing by the City of Paris and the Fair Association is responsible to the City. Chairman Burnett stated he doesn't think that Paris Rodeo and Horse Club has lived up to their lease, and he doesn't think Red River Valley Fair Association has lived up to their lease with the City of Paris. Mr. Nickerson stated that the Fair Association will comply. Chairman Burnett stated he had been contacted by a coonhunter regarding the Indiana Coonhunt, who stated in the City where the hunt was held they realized $600,000.00. He said if this was fact, then there was a mistake made and the hunt should have been brought to Paris. Fairground Committee Minutes June 5, 1990 Page 4 Mr. Nickerson stated he felt the scheduling problem resulted from increased usage of the facilities at the Fairgrounds. He felt this was an adjustment period and they were experiencing growing pains. Chairman Burnett stated the Northeast Poultry Texas Poultry Association and Red River Shriner Club had expressed having problems with Red River Valley Fair Association and scheduling events. Chairman Burnett also questioned the usage of hay in the livestock area. Lorrin Scott of the Fair Board explained sand is currently being used for bedding in the barn and hay can be used for feed. Chairman Burnett stated the sign in the barn needs to more accurately reflect hay usage. Lorrin Scott said they had been and would make people aware of it. Councilman Kent questioned if this is not solved prior to the rodeo dates what would happen. Mr. Nickerson stated that is the reason Red River Valley Fair Association obtained a temporary injunction which enable the rodeos to still be conducted. Chairman Burnett questioned the gates being closed across the street down to the fire field area. Rita Haynes of the Red River Valley Fair Association stated the Fire Department has a key to the gate, and the gates were locked to keep traffic off of the carnival grounds which was tearing up the grounds. R> .. fS- ..n`�" tbV�`..,bo`i'se'" si ora •� . - to condition and was there plans for the area to be used for something else. Steve Glover, President of Fair Association, stated one of their proposals was removing the horse barn due to dilapidated condition. Councilman Kent questioned the insurance on the horse barn at the present time. Jeff Hoog of the Fair Association stated as far as the Fair Association knows the horse barn still has insurance. Councilman Kent asked if it was the opinion of the Fair Association that the horse barn needed tearing down, and do they feel it serves a worthwhile purpose. Mr. Hoog stated he thinks the Paris Rodeo and Horse Club knows it needs possibly some changes of some kind, and they felt.maybe. they could do something to upgrade the exterior. Councilman Kent questioned plans to take the pasture on the west side of the rodeo arena. Mr. Glover stated there was talk of taking part of it back so, they could maintain it and use it for parking. He stated the Paris Rodeo and Horse Club could still use it for riding purposes. He said at the present time it is not being maintained as it should be. He said they are basically talking about the area up to the creek being maintained by Paris Rodeo and Horse Club and anything past the creek Red River Valley Fair Association maintaining it at the Fair Association's expense. Marshall Kent stated he thinks what the committee is going to recommend to the Council is we want the people of Paris and Lamar County to be as welcome on the Fairgrounds as anybody else and what the buildings are put out there for should be what they are used for. -I don't want to see one activity given preference over another activity. He wants the facilities to be available to everyone. Fairground Committee Minutes Page 5 June 5, 1990 Mr. Glover stated with regard to the Northeast Texas Poultry Club, they wanted to rent the building at the same time a 1950 high school class reunion had rented the same area. He stated Red River Valley Fair Association had already entered into an agreement with the Northeast Texas Poultry Club for 1991. Chairman Burnett questioned what about this year, 1990, and Rita Haynes stated it had already been booked for this year by someone else. Councilman Kent stated the president of the Lamar County Coonhunters had informed him they had been told they could forget about renting the fairgrounds for two years. Mr. Glover stated since he is president of the Red River Valley Fair Association, he intends to rent the facilities to any citizens of Paris or Lamar County as it is available at a reasonable rate. He also stated the Northeast Texas Poultry Club had never asked for the poultry building. They want the coliseum and exhibit building. We are willing to work on a standing long term agreement. Chairman Burnett questioned what had happened with the parking lot fund, and Mr. Glover replied they had consolidated two of the checking accounts. The fund was still there, but was under grounds maintenance. There was discussion regarding the fund and maintenance of the grounds. Mr. Glover informed committee they have brought in numerous loads of gravel to try to maintain the fairgrounds as best they could. Chairman Burnett stated in regards to the financial documents furnished to the City the Finance Director's recommendation was that the Red River Valley Fair Association books be audited by an outside Certified Public Accountant and a copy provided to the City Council. The Red River Valley Fair Association members present stated this would be no problem as McClanahan and Holmes prepare their financial documents and records. Mr. Glover stated if the Fair Association is lacking in an audit, they will be glad to obtain an audit. Mr. Glover asked if the Committee would like to address the gates on Center Street and 6th Street being closed which was questioned before. He stated the gates were locked for a safety factor which is children playing in the area during reunions. Chairman Burnett stated it was also a safety factor on North Main. Councilman Kent stated he had talked with the City Attorney and he stated streets could not be closed for particular events, but the street were either closed or opened. Mr. Glover expressed the Fair Associations appreciatio-n for this hearing and if anything additional was needed from them they would try and do it. He also stated the Fair Association would like to work out an agreement with the Paris Rodeo and Horse Club. There being no further business, the meeting adjourned. BILLY JOE BURNETT, CHAIRMAN Fairground Committee Minutes June 5, 1990 ATTEST: BARBARA DENNY, ASSISTANT CITY CLERK Page 6 Red River Valley Fair Association May 09, 1991 Mike Malone, City Manager City of Paris P.O. Box 1037 Paris, Texas 75460 Dear Mr. Malone: Please find enclosed our financial statement for 1990. This statement was prepared by McClanahan and Holmes, which is in compliance with our lease.agreement with the City of Paris. Also, enclosed are copies of leases for Bingo operations in Building B located on the fairgrounds for the Paris Jaycees and Lamar County Human Resources. Per our lease agreement, long term leases should be approved by the Lessor. If you.need any additional information, please give me a call. Sincerely yours, Rita Ja e Haynes Executive Director RJH /mw cc: Terry K. Haynes, City Attorney City of Paris P.O. Box 964 • Paris. Texas 76480 • (214) 786 -7971 MCCLANAHAN AND HOLMES CERTWUM PUBLIC ACCOUNTANTS R. FRANK RAY. C.P.A. R. E. BOSTWICt C.P.I. THOMAS C. HENSEL- C.P.A. STEVEN W. MOHUNORO. C.P.A. JACOUELYNE S. SHELTON. C.P.A. F. L MCCI.ANAHAK C.P.A. SETHEL F. HOLMES (1924.1964) Board of Directors Red River Valley Fair Association Paris; Texas 226 SIXTH STREET. a. E. PAR19. TEXAS 76460 903.764 -4316 FAX 903- 764.4310 304 WEST CJiESTNLJT OE111960f1t TEXAS 75020 903. 465-6070 FAX 903465 -6093 216 WEST FIFTH STREET BONHAM. TEXAS 75415 903. 563 -5574 FAX 903- 563 -5575 Paris, Texas April 9, 1991 We have compiled the accompanying balance sheet - income tax basis of Red River Valley Fair Association as of December 31, 1990, and the related statement of income and expense - income tax basis for the year then ended and the accompany- ing Schedules 1 through 3, which are presented for supplementary analysis pur- poses, in accordance with standards established by the American Institute of Certified Public Accountants and on the same basis as used for Federal income tax reporting. A compilation is limited to presenting in the form of financial statements in- formation that is the representation of- management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. Management has elected to omit all of the disclosures ordinarily included in financial statements prepared on the income tax basis of accounting and the current portions of assets and liabilities are not reflected in the financial statements. If the omitted disclosures were included in the financial state - ments, they might influence the user's conclusions about the Association's assets, liabilities, fund balance, income and expenses. Accordingly, these financial statements are not designed for those who are not informed about such matters. C_4� ecl� 4X�� Certified Public Accountants AME/tlCAN "TnUTE OF C"TWW_0 PUBIJG ACCOUNTANTS Red River Valley Fair Association Balance Sheet - Income Tax Basis December 31, 1990 ASSETS Current Assets Cash in Demand Accounts $ 14,624 Certificates of Deposit 32,381 Buildings and Leasehold Improvements at Cost or Donated Value, Substantially Pledged 75.937 122.942 LIABILITIES AND FUND BALANCE Liabilities Note Payable to Bank Secured by Livestock Barn $ 9,218 Note Payable to Bank Secured by Exhibits Building 58.168 Total Liabilities 67,386 Fund Balance 55.556 $ 122.942 See Accountants' Compilation Report -.ed River Valley Fair Associatio.. Statement of Income and Expenses and Changes in Fund Balance - Income Tax Basis Year Ended December 31, 1990 Income Net Bingo Income (Schedule 1) Net Fair and Carnival Income (Schedule 2) Rents Arts and Crafts Fair Membership Dues Contributions Interest Total Income Expenses Rental Repairs and Maintenance Arts and Crafts Fair Expense Legal and Accounting Supplies Telephone Occupancy Expense (Schedule 3) Equipment Maintenance Conventions and Meetings Interest Insurance Contract Services Dues and Fees Miscellaneous Total Expenses Net Income Fund Balance, Beginning of Year Fund Balance, End of Year See Accountants' Compilation Report $ 41,284 9,152 34,304 2,178 570 2,950 2.862 93.300 18,318 1,013 12,712 1,009 807 14,217 1,859 408 7,770 3,105 6,738 1,050 4.689 73.695 19,605 35.951 1-55.556 _,ed River Valley Fair AssociatiL Schedule 1 Schedule of Bingo Income and Expenses Year Ended December 31, 1990 Bingo Income Advertising Bingo Supplies Bingo Tax Equipment Purchased Janitorial Supplies and Service License Fees Office Supplies Payroll Costs Returned Checks Total Bingo Expenses Net Bingo Income $ 118.596 1,496 24,951 12,466 1,450 8,003 3,025 190 25,716 15 77.312 $ 41.284 fled River Valley'Fair Association Schedule of Fair and Carnival Income and-Expense Year Ended December 31, 1990 Fair and Carnival Income Livestock Shows Interest Fair Book Expense Rodeo Expenses Entertainment Parking Advertising Utilities Labor Miscellaneous Total Fair and Carnival Expense -Net Fair and Carnival Income Schedule 2 $ 54.594 4,771 4,146 1,400 11;803 8,490 2,318 1,374 4,124 1,257 5.759 45.442 S 9.152 ..ed.River Valley,Fair Associatiou Schedule of Occupancy Expense Year Ended December 31, 1990 Utilities Trash Service Water ' Total Occupancy Expense Schedule 3 $ 12,676 1,355 186 "4.217 MINUTES OF THE SPECIAL MEETING OF THE FAIRGROUNDS COMMITTEE OF THE CITY COUNCIL January 21, 1991 The Fairgrounds Committee of the City Council met in special session, Monday, January 21, 1991, 4:00 P., City Council Chambers, City Hall, Paris, Texas. Chairman Billy Joe Burnett called the meeting to order with the following members present: Marshall H. Kent, Jr., Emma Smith, and Mayor Eric S. Clifford. Also present was City Manager, Michael E. Malone, City Attorney, T. K. Haynes, and City Clerk, Mattie Cunningham. Chairman Burnett announced the purpose of the meeting was discussion of lease agreement between the City of Paris and the Red River Valley Fair Association. City Attorney Haynes advised that from the beginning of the law suite filed by the Red River Valley Fair Association against Paris Rodeo and Horse Club, the City of Paris has taken the stance to remain outside of the law suite, now, because of the possibility of there may be city property at jeopardy, if we consider the arena and the fixtures that has been attached to the ground as part of the ground. City Attorney Haynes said it has been his position, that the City may have to get into the law suite in order to protect City's property. City Attorney Haynes pointed out that this needs to be addressed by the Committee City Attorney said that the City feels the facts are: The Paris Rodeo and Horse received a lease in 1959 for ten years with a ten year option from the Red River Valley Fair Association, the option was exercised, and in that lease they had the right to remove their arena at a reasonable period of time when they were finished with the lease. The lease expired in 1979 at the end of the second ten year period for a total of twenty years, from 1979 to 1981 there was no lease in existence, the next lease was from the Red River Valley Fair Association, and in a sub -lease that was not approved by the City of Paris, in that lease it spoke of the right to take away the arena and fixtures, but prior to that sub - lease, the lease the City of Paris gave the Red River Valley Fair Association did not give them the authority to take away any property; therefore, they had no right to give to the Paris Rodeo and Horse Club the right to take away property, so the only right that anyone had would have been under the lease that expired in 1979. City Attorney Haynes stated that since he had been with the City (1968), the City has never affirmatively allowed anyone in their lease the right to take fixtures that were fixed to the property with them at the end of a lease. City Attorney also stated that it is the policy of the City that if buildings or fixtures are built on city property, it becomes city property at the end of a lease. Mayor Clifford pointed out that in the 1959 -79 lease the City of Paris approve the lease with the stipulations that the Paris Rodeo and Horse Club could remove the arena an all improvements, within a reasonable length of time, and that is what the court is going to decide, then in 1981 in the sub -lease given to the Paris Rodeo and Horse Club by the 2 Fairground Committee Meeting 1/21/91 Red River Valley Fair Association, they again gave the Paris Rodeo and Horse Club the right to remove the arena and improvements. Mayor Clifford did state that the City did not approve this sub - lease. Mayor Clifford stated it was his feeling that the Paris Rodeo and Horse Club will go to court maintaining that they have a right all the way back to day one that they can remove their arena, and felt that the City's representatives should be there to protect city property. Councilman Kent questioned why the City was not involved in the sub - lease. City Attorney Haynes stated that it was a sub -lease between the Red River Valley Fair Association and the Paris Rodeo and Horse Club, and the City of Paris does not recognize the sub -lease as being a valid lease, as it was not approved by the City Council. Jess Nickerson, Attorney for the Red River Valley Fair Association was present stating that he knew the City was aware of the conflict between the Fair Association and the Paris Rodeo and Horse Club, and assured the Committee that the Fair Association has strived to work the problems out with the Horse Club. Mr. Nickerson said he wanted to let the City know about the current problem which has been discussed by the City Attorney and Mayor Clifford. Mr. Nickerson said that everyone had assumed that the City of Paris had given in writing the authority for a sub - lease, but as it turns out, that is not true as far as anyone can determine, since this did put the City's property in jeopardy, and that is why he wanted the City Manager and City Attorney to know what is going on. Mr. Nickerson stated that the only thing at the courthouse is the validity of the 1981 sub - lease. Mr. Nickerson stated that it did not matter about the old lease, if they could beat the option because there is a controversy. Mr. Nickerson said if the court rules that the lease in 1981 is good, and the option is no good, which is the simplest way for them to attack it, as it is completely contradictory with the lease that the Fair Association has with the City. Mr. Nickerson stated that the Fair Association finds themselves with no approval of the sub - lease, find themselves with the possibility that the court could say, yes that lease is valid on the option part. Mr. Nickerson stated they did not have any complaints whether they move the arena or not, it is the City's property, we do not have any plans if the judge says, yes it is valid, there is nothing the Fair Association can do, so that is the reason for contacting the City of Paris. City Attorney Haynes said that if there is no lease at any time, he did not think that the law is such that at the end of the lease you continue that terms of the lease on a month to month basis, you continue a lease from month to month, but if there is no provisions in the contract that says that it is not renewed at the end of that period, that it continues on a month to month. City Attorney Haynes advised that there is a month to month lease that goes on, but it is not the written one, and under the common law, when you attach 3 Fairground Committee Meeting 1/21/91 something to the ground, it stays there. It was City Attorney Haynes's opinion that during the month to month period, he did not believe what ever terms before that would be continued unless there is something in the lease that says that at the end of the lease, if you do not reach an agreement it continues from month to month. City Attorney Haynes read a letter written by him to the Red River Fair Association, dated August 16, 1990, advising that without regard to past practices of the City of Paris that the Red River Valley Fair Association will be expected to abide by each and every condition and requirement of its lease with the City of Paris, and furnishing a copy of the lease so that no misunderstanding about which lease is in effect was attached. Mr. Nickerson pointed out that the Fair Association has not entered into any leases with anyone, and stated that is what this law suite is all about, the Paris Rodeo and Horse Club's lease was with the Red River Valley Fair Exposition, and not the Red River Valley Fair Association because they did not come into existence until 1987. Mr. Nickerson explained that when the Fair Association entered into a lease with the City in 1987, and everyone assumed that the City had given permission for a sub -lease to the Paris Rodeo and Horse Club in 1981, and the Fair Association thought they were bound by what the City and Exposition had done back in 1981. City Attorney Haynes pointed out that there was not a transfer of authority or rights between the Exposition and the Fair Association to make it a successor corporation. After further discussion, Chairman Burnett made a recommendation that anything attached to City property can not be removed, and the Committee felt that no one has a lease at the fairgrounds with the City of Paris because they have not lived up to their leases. A motion was made by Councilman Kent, seconded by Councilwoman Smith accepting the recommendations of Chairman Burnett. The motion carried 3 ayes, 0 nays. BILLY JOE BURNETT, CHAIRMAN ATTEST: MATTIE CUNNINGHAM, CITY CLERK MINUTES OF THE FAIRGROUNDS COMMITTEE OF THE CITY OF PARIS May 31, 1990 The Fairgrounds Committee of the City of Paris met Thursday, May 31, 1990, 7:00 P. M., Council Chambers, City Hall, Paris, Texas. Chairman, Billy Joe Burnett call the meeting to order with the following members present: Councilman Marshall H. Kent, Jr., and Councilwoman, Emma Smith. Also present was City Manager, Michael E. Malone, City Attorney, T. K. Haynes, and City Clerk, Mattie Cunningham. Chairman Burnett announced the purpose of the meeting was discussion of complaints of groups concerning management of use of the fairgrounds, and opened the floor for those in the audience who wishes to speak in regard to this matter. Mr. Connie Tyson, representing the Paris Rodeo and Horse Club, came forward restating their complaints against the Red River Valley Fair Association. Mr. Tyson did inform the Committee that there was a new development concerning the Paris Rodeo and Horse Club, that the Red River Valley Fair Association had filed a law suite against the Paris Rodeo and Horse Club. Mr. Tyson said the Fair Association had informed the Paris Rodeo and Horse Club that they were going to put on a competitive type rodeo, against our better judgement, and for concern for the Paris Rodeo and Horse Club, we wrote them a letter stating that the Paris Rodeo and Horse Club preferred that the Fair Association did not hold a competitive type rodeo in the Paris Rodeo and Horse Club's arena. Mr. Tyson told the Committee that Fair Association had not contacted they in anyway, the Paris Rodeo and horse Club has attended their meetings, and as soon as the Paris Rodeo & Horse Club elected officers, asked them if they would like to discuss anything with the Paris Rodeo and Horse Club that might have been a problem in the past, their answer was, they did not have any problem, they were pleased with they way the Paris Rodeo and Horse Club was operating, but the next day we were notified that the Fair Association was putting on a rodeo in our facilities, which they do not have the right to do so, they do not have the right to our facilities for a rodeo. Mr. Tyson said that in the past, the Paris Rodeo and Horse Club has loaned the Fair Association their facilities to put on a fun type situation such as the Four Wheel Rodeo, but they are going to have a PRCA Rodeo which will interfere with the Paris Rodeo and Horse Club's rodeo. Mr. Tyson said their rodeo was the main source of income. Mr. Tyson further stated their lease is up in February 1991, and in their negotiation, the Fair Association has presented the Rodeo and Horse Club with twenty six proposals, which has been rejected by the Rodeo and Horse Club by reason of due to the fact that there were so many of them that they could not live with all twenty six proposals. Mr. Tyson said he had met with Ms. Reda Haynes, and Jeff Hoog on several occasions with no progress, but he feels that this matter could be worked out. Paqe 2 Fairground Committee Minutes Mr. Leon Alexander, representing the Lamar Coonhunter Association, was present and also restated their complaints to the Committee. Mr. Alexander further emphasized the lose of revenue to the City of Paris and the citizens of Paris due to the Red River Valley Fair Association not allowing the Lamar Coonhunter Association to have their hunts at the fairgrounds. Mr. Alexander discussed the closing of the Street at the fairgrounds with City Attorney Haynes. City Attorney Haynes advised Mr. Alexander that the street closing was done by the City of Paris on a request by the Red River Fair Association, the reason being safety measures, and truck traffic. Mr. Alexander explained the complete operation of a coon hunt to the committee, and said that it was his opinion that the Lamar Coonhunter Association was not welcome to use the fairgrounds. City Attorney Haynes reassured Mr. Alexander that was not true, and that he would personally check into this matter. After discussion of the possibility of having a hunt at the fairgrounds. Mr. Alexander was directed to contact Mr. Hoog at the Red River Fair Association and see if arrangement could be made for future hunts. Ellie Castleberry, representing the Northeast Texas Poultry Association, also appeared and discussed the problems they were having with getting permission to use the facilities at the fairgrounds. Stating that she and her husband had been showing chickens in the Paris area for many years. Ms. Castleberry told the Committee their poultry building was torn down, and at that time, their club was promised another poultry building, and last year that building was dedicated. Ms. Castleberry read a portion of an article she had written that was published in one of the two National Poultry Magazines regarding the dedication of the new poultry building at the fairgrounds. Mr. Castleberry said it was their understanding that this was to be a place for poultry shows, instead it is a place for bingo, and then she found out that there might not be a poultry show at the fair in the poultry building this year, because Red River Valley Fair Association could not move the tables out because of the bingo games. Mr. Castleberry said they were still trying to workout some type of an agreement with the Red River Fair Association. Discussion was had concerning the rental fees of the buildings at the fairgrounds compared with other cities. Discussion was also had with Ms. Castleberry and Pat Galyon regarding the locked gates at the fairgrounds. Keith Jordan, President of the Northeast Texas Cutting Horse Association, appeared before the Committee, stating that they do not deal directly with the Red River Valley Fair Association, but work with the Paris Rodeo and Horse Club, and their needs are the same as the Paris Rodeo and Horse Club, we need parking, and we need facilities. Mr. Jordan stated this is one of the finest outdoor arenas in Northeast `i Page 3 Fairground Committee Minutes Texas, so we have people come stated the only problem they locked, and complained about us not being able to stay on the night. from all over the state. Mr. Jordan had encountered was the gates being parking to close to the Bingo Hall, and fairgrounds when shows were over late at Roy Brunson, representing the Red River Shriner Club, was present speaking on the problems they had encountered this year with the Fair Association involving their circus. Mr. Brunson told the Committee they always book their show a year in advance, but it seems that bingo takes president over anything else. After a considerable amount of discussion of the current lease between the City and the Red River Valley Fair Association, it was the consensus of the Committee to recommend to the Council that the streets at the fairgrounds be open up with no truck traffic being permitted unless for delivery. Chairman Burnett announced that another meeting would be scheduled, and notification would be given. BILLY JOE BURNE T, CHAIRMAN ATTEST: MATTIE CUNNINGHAM, CI Y ERK DATE 10/10/88 ITEM NUMBER 7 TYPE 13 REFERENCE # 1 ST CLOSING REFERENCE # 2 FAIRGROUND PAGE 641 BUSINESS 0/N N APPROVED /DENIED A TITLE: Request to Close streets at Fairgounds DETAIL: Request by Jeff Hoog President of the Red River Valley Fair Association to closing the fairgrounds to all thru traffic f or safety measures. Council authorized preparation of an Or d to be presented at next Council meeting RELATED SUBJECTS STREET CLOSINGS STREETS CMD KEY 6 RETURN TO 1ST CMD KEY 8 RETURN TO 2ND OR ENTER DATE 11/10/88 ITEM NUMBER REFERENCE # PAGE 667 BUSINESS TITLE: P. H. to Close DETAIL: Public Hearing to c ey Fair Association nd 6th N. E. within 8 TYPE 13 1 FAIR ASSOC REFERENCE # 2 STREETS 0/N N APPROVED /DENIED A a Portion of E. Center St. & 6th NE onsider the request of the Red River Vall to close a portion of E. Center Street a the Fairgrounds. Council Approved RELATED SUBJECTS STREETS ZONING PUBLIC HEARIN CITY PROPERTY CMD KEY 6 RETURN TO 1ST CMD KEY 8 RETURN TO 2ND OR ENTER DATE 5/11/87 ITEM NUMBER 9 TYPE 12 REFERENCE # 1 HORSE CLUB REFERENCE # 2 LEASE PAGE 634 BUSINESS 0/N N APPROVED /DENIED A TITLE: Paris Rodeo and Horse Club - Lease with City DETAIL: A motion was made by Councilman Clifford directing the City Attorney to negotiate an amendment to the lease with the Red River Valley Fair Association to allow the City to lease the Rodeo Arena area only to the Paris Rodeo and Horse Club for a term of 25 years. Carried 7 -0 RELATED SUBJECTS LEASES PARIS RODEO & HORSE CMD KEY 6 RETURN TO 1ST CMD KEY 8 RETURN TO 2ND OR ENTER DATE 5/11/87 ITEM NUMBER 4C TYPE 12 REFERENCE # 1 RODEO & H REFERENCE # 2 CLUB PAGE 634 BUSINESS 0/N N APPROVED /DENIED A TITLE: Paris Rodeo & Horse Club proposal by Glenn Watson DETAIL: to enclose the rodeo arena and sell individual type bonds to do this the Club would need a long term lease with the City covering the term of the bonds. Mr. Watson presented a letter from Jeff Hoog, a member of the Red Riveral Valley Fair Assoc stating that the Fair Assoc would cooperate any- way they could RELATED SUBJECTS CLUBS PARIS RODEO & HORSE CMD KEY 6 RETURN TO 1ST CMD KEY 8 RETURN TO 2ND OR ENTER DATE 11/14/88 ITEM NUMBER 4D TYPE 13 REFERENCE # 1 FAIRGROUND REFERENCE # 2 STREETS PAGE 678 BUSINESS 0/N N APPROVED /DENIED A TITLE: ORDINANCE NO. 88 -048 DETAIL: An Ordinance closing Sixth Street N. E. within the Fairgroun ds beginning approximately 200 feet north of the N. Boundary line of Hickory Street North to a point 600 Feet South of t he South Boundary Line of Clement Rd and E. Center Street fr om the West Boundary Line of 6th N. E. west 250 Feet RELATED SUBJECTS ORDINANCES STREET CLOSINGS CMD KEY 6 RETURN TO 1ST CMD KEY 8 RETURN TO 2ND OR ENTER 1.. MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL March 13, 1989 The City Council of the City of Paris met in Regular Session, March 13, 1989, 7:00 P.M., Council Chambers, City Hall, Paris, Texas. Mayor Eric S. Clifford called the meeting to order with the following Councilmen present: Curtis Fendley, Travis Wortham, Marshall H. Kent, Jr., E. W. (Bill) Booth and William E. (Bill) Davidson. Councilman Rondie Williams was absent. Also present were City Manager Michael E. Malone, City Attorney, T. K. Haynes and Deputy City Clerk Joe N. McCollum. Mayor Clifford opened the meeting and the invocation was given by Ralph Taylor, pastor of Bethel Temple Church. The minutes of the previous meetings were approved with one amendment. Page 3 of the minutes of February 13, 1989, "360 W. Sherman" was changed to read "630 W. Sherman ". Councilman Booth gave a report on the Contractual Water Service Committee meeting and advised that Committee's recommendation would be further.discussed on a later item on the agenda. Rita Jane Haynes, Executive Director of the Red River Valley Fair Association, made an appearance seeking approval to construct a poultry barn opposite the livestock barn. She said there was not sufficient building area for poultry shows since the old building was demolished. No action was taken at this time since a resolution was to be presented later in the meeting. Mayor Clifford announced the n6xt item was a public hearing on the request for pro -rata participation contract for extension of water line for Bethel Temple on S.E. Loop X86. Mayor Clifford opened the public hearing and called for proponents to appear. Ralph Taylor, pastor of the church, spoke in favor of the water main extension and requesting it be on a pro -rata contract. Mayor Clifford called for opponents to appear and William E. Thomas appeared saying he had paid $7,500.00 to extend water and sewer from 3rd S.E. to his home some years back and needed to know more about the project. He was not interested in having to pay a pro -rata share on his property. Mayor Clifford closed the public hearing saying an ordinance would be introduced later in the meeting. ORDINANCE N0, 89 -008 AN ORDINANCE AMENDING ZONING ORDINANCE NO. 1710 OF THE CITY OF PARIS, PARIS, TEXAS AND CHANGING THE BOUNDARIES ESTABLISHED BY THE ZONING MAP OF SAID CITY; ESTABLISHING A ONE FAMILY DWELLING DISTRICT NO. 3 (SF -3) AND SPECIFIC USE PERMIT - LODGE (17) -ON EAST 1/2 OF LOTS 2 and 4, BLOCK 0, EAST PARK ADDITION, ON PROPERTY BELONGING TO JESSE L. MATHIS, SO AS TO INCLUDE THEREIN TERRITORY FORMERLY DESIGNATED AS A ONE FAMILY RESOLUTION NO. 89 -027 WHEREAS, the Red River Valley Fair Association did heretofore lease City of Paris Fairgrounds from the City of Paris; and, WHEREAS, the old poultry barn became dilapidated and was removed; and, WHEREAS, the Red River Valley Fair Association desires to replace the old poultry barn with a new poultry barn of metal building construction, being 40 feet wide and 100 feet long to be located across the street from the livestock barn in order that it may be used in conjunction with the livestock barn; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, That the Red River Valley Fair Association be, and the same is granted permission to construct a metal building 40 feet wide and 100 feet long with restroom facilities on the fairgrounds across the street from the livestock barn. Passed and adopted this 13th day of March, 1989. Eric S. or ayor ATTEST: Joe cCollum, Assistant City Clerk APPROVED AS 0 FORM: T. K. Haynes City Attorney