City of Canyon Commission Meetings

City Commission Meeting August 17, 2015 The City Commission of the City of Canyon met in regular session at 5:30 p.m. in the City Commission Chambers of the Civic Complex. Mayor Quinn Alexander presided over the meeting with the following Commissioners in attendance: Mayor Pro-Tem Gary Hinders, David Logan, Justin Richardson, and Joe Shehan. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, City Secretary Gretchen Mercer, Assistant City Manager for Special Projects Jon Behrens, Business and Community Development Director Evelyn Ecker, Director of Code Enforcement Danny Cornelius, Librarian Sandra Munger, Parks and Recreation Director Brian Noel, Golf Course Manager John Haun, Police Chief Dale Davis, Fire Chief Mike Webb, Director of Public Works Dan Reese, Swimming Pool Manager Andrew Neighbors, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Alexander called the meeting to order at 5:35 p.m. Item 2. Invocation. Commissioner Richardson gave the invocation. Item 3. Pledge of Allegiance. Canyon Swim Team members Ryanne Higgins, Rylee Higgins, Rebekah Higgins, Aidan Pope, Tyler Troyer, and Deanne Rice led the Pledge of Allegiance. Item 4. Approval of Minutes of the Meeting of August 3, 2015. Commissioner Shehan moved, duly seconded by Mayor Pro-Tem Hinders, to approve the minutes of August 3, 2015. Motion carried unanimously. Item 5. Public Forum – Comments from Interested Citizens. No Comment was made. Item 6. Consider and Take Appropriate Action on all Matters Incident and Related to Calling a Bond Election for the November 2015 Election for Construction of a Family Aquatic Center, Including the Adoption of Ordinance No. 1024 Pertaining Thereto. City Manager Randy Criswell presented Ordinance No. 1024 for consideration. Mr. Criswell stated that with all the public interest for the construction of an Aquatic Center, and the feasibility study completion, the next step was to call an Election and allow the citizens of Canyon to decide if they want to fund a new Family Aquatic Center. Mr. Criswell said the Commission had previously expressed interest in Plan B of the feasibility study, as recommended by the Pool Committee, which had a cost of 6 million dollars. . City Commission Meeting August 17, 2015 Page 2 of 5 Mayor Pro-Tem Hinders stated that he felt this issue should be delayed until a May election, giving time for decisions to be made on the City Hall Study and any potential additional debt issued for water improvements, because those things would also have significant impact on taxes and water rates, and he didn’t believe the public should vote on the aquatic facility without having all of that information. After discussion, Commissioner Logan moved, duly seconded by Commissioner Richardson to adopt Ordinance No. 1024 calling for a Bond election in the amount of $6,000,000 to fund the construction of a Family Aquatic Center. Motion carried 4 to 1 with Commissioner Hinders voting against. ORDINANCE NO. 1024 AN ORDINANCE CALLING A BOND ELECTION TO BE HELD IN THE CITY OF CANYON, TEXAS, MAKING PROVISIONS FOR THE CONDUCT OF THE ELECTION AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO SUCH ELECTION. Item 7. First Reading of Resolution No. 15-2015 Approving a Project Funding Agreement Between Lone Star Dairy Products LLC and the Canyon Economic Development Corporation (“CEDC”) for the Purpose of Funding Financial Incentives for New Jobs in Canyon, Texas. Business and Development Director Evelyn Ecker presented Resolution No. 15-2015 for its first reading. Mrs. Ecker said Lone Star Dairy Products LLC expect to have a $3.9 million annual payroll and no less than 50 employees. Mrs. Ecker stated the Job Incentive Package will consist of ten total installments over a 10 year period, not to exceed $850,000. Mrs. Ecker said installments would be payable when the plant opens for production and subsequent installments payable on the anniversary date of the first installment. Mrs. Ecker said if the workforce drops below 50 full time employees, the incentive would be reduced accordingly as approved in Project Funding Agreement No. 2. Commissioner Hinders asked if a “smell control” could be added to the Job Incentive agreement. City Manager Criswell advised that language of that nature would be more appropriate in the industrial waste permit. City Attorney Chuck Hester and Commissioner Shehan stated their agreement with Mr. Criswell’s advice. This being the first reading of Resolution No. 15-2015, no action is required. RESOLUTION NO. 15-2015 RESOLUTION APPROVING PROJECT FUNDING AGREEMENT NO. 2 BETWEEN LONE STAR DAIRY PRODUCTS LLC AND CANYON ECONOMIC DEVELOPMENT CORPORATION (“CEDC”) FOR THE PURPOSE OF FUNDING FINANCIAL INCENTIVES FOR NEW JOBS IN CANYON, TEXAS. Item 8. Consider and Take Appropriate Action on Adoption of Payment in Lieu of Taxes Agreement with Lone Star Dairy Products LLC. City Commission Meeting August 17, 2015 Page 3 of 5 City Manager Randy Criswell presented a Payment in Lieu of Taxes Agreement with Lone Star Dairy Products LLC and the City of Canyon. Mr. Criswell said the basic points are:  100% property tax abatement for 10 years on eligible property as defined by the agreement  No tax abatement on trucks or trailers  No tax abatement on construction work in progress  Tax abatement starts on January1 of the year immediately following completion of the facility  A Payment In Lieu of Taxes will be made to the City totaling $680,000 over the 10- year period of the Agreement After discussion, Mayor Pro-Tem Hinders moved, duly seconded by Commissioner Shehan, to adopt the Payment in Lieu of Taxes agreement with Lone Star Dairy Products LLC, as presented. Motion carried unanimously. Item 9. Consider and Take Appropriate Action on Modification to Deed of Trust from Canyon Economic Development Corporation to the City of Canyon. City of Canyon Attorney Chuck Hester presented the Commission with a Modified Deed of Trust. Mr. Hester said since Lone Star Dairy Products LLC is securing a large loan, the lender is requiring title insurance and the title company has made certain requirements concerning subordination of the City’s lien and removal of certain provisions of the Deed of Trust relating to insurance, assignment of rents and improvements. Mr. Hester said the Deed of Trust being considered by the commission is for the purpose of addressing those title requirements and will facilitate the conclusion of the real estate transaction with Lone Star. After discussion, Commissioner Logan moved, duly seconded by Commissioner Richardson to approve the Modification to Deed of Trust as presented. Motion carried unanimously. Item 10. Consider and Take Appropriate Action on Interlocal Agreement with Randall County for Participation in Construction of New Parking Lot in 1500 Block of 6th Ave. City Manager Randy Criswell presented an Interlocal Agreement with Randall County committing Randall County to assist with the cost of the construction of the parking lot currently under construction at the site of the old CISD Administration Building. Mr. Criswell said the County has expressed interest in contributing $300,000. Mr. Criswell said the agreement also addressed future maintenance of the parking lot. Mr. Criswell said the County will address the agreement at their August 25, 2015 Commissioners Court. After discussion, Commissioner Richardson moved, duly seconded by Commissioner Logan to approve the Interlocal Agreement with Randall County regarding the construction of the parking lot in the 1500 Block of 6th Ave. Motion carried unanimously. Item 11. Consider and Take Appropriate Action on Resolution No. 16-2015, A Resolution Denying Southwestern Public Service Company’s Proposed Rate Increase. City Commission Meeting August 17, 2015 Page 4 of 5 City Manager Randy Criswell presented Resolution No. 16-2015 for consideration. Mr. Criswell said counsel has been working to settle this rate case that was filed in December 2014, but have not been able to reach a settlement. Mr. Criswell said it was the recommendation of counsel to deny the rate case which will send it to the Public Utility Commission for resolutions. After discussion, Commissioner Shehan moved, duly seconded by Mayor Alexander to adopt Resolution No. 16-2015 as presented. Motion carried unanimously. RESOLUTION NO. 16-2015 A RESOLUTION BY THE CITY OF CANYON, TEXAS (“CITY”) DENYING SOUTHWESTERN PUBLIC SERVICE COMPANY’S PROPOSED INCREASE IN RATES SUBMITTED IN ITS APPLICATION ON DECEMBER 8, 2014; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE Item 12. Budget Work Session. No discussion. Item 13. Hold Public Hearing on Proposed Tax Rate and 2015-2016 Budget. Mayor Alexander opened the public hearing. There being no comment, Mayor Alexander closed the public hearing. Item 14. Executive Session Pursuant to Texas Government Code §551.087 Economic Development Negotiations, and §551.074, Personnel Matters (City Engineer, Municipal Court Judge, Alternate Municipal Court Judge, City Attorney, and City Manager). Mayor Alexander indicated the Commission would adjourn into executive session at 6:46 pm Item 15. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from executive session at 8:37 pm, the following action was taken. Commissioner Shehan moved, duly seconded by Mayor Alexander to contract with the City Engineer, Brandt Engineering as is. Motion carried unanimously. Commissioner Richardson moved, duly seconded by Commissioner Logan to appoint Municipal Court Judge Bob Splawn for two years and increase his monthly salary from $1600 a month to $1650 a month. Motion carried unanimously. Commissioner Richardson moved, duly seconded by Mayor Pro-Tem Hinders to appoint Alternate Municipal Court Judge, Jerry Bigham, for two years. Motion carried unanimously. City Commission Meeting August 17, 2015 Page 5 of 5 Mayor Pro-Tem Hinders moved, duly seconded by Commissioner Logan to continue the contract with City Attorney Chuck Hester and increase his monthly compensation from $6700 to $7000 a month. Motion carried unanimously. Commissioner Logan moved, duly seconded by Commissioner Richardson to continue the contract with City Manager Randy Criswell with a 3% increase. Motion carried unanimously. Item 16. Consider Meeting Dates for September. Commissioners set the calendar to have one Commission meeting in September on Tuesday, September 8, 2015. Item 17. Adjournment There being no further business, Commissioner Logan moved this meeting be adjourned. ______________________________ Quinn Alexander, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary