Will Brule, Council District #1 Vernon Denmon, Jr., Council District #2 Vickey L. Chivers, Council District #3 James H. Yelverton, Council District #4 Therrell Thomas, Council District #5 Steve Presley, Council District #6 Mike Ohrt, City Manager Teresa Herrera, Interim City Secretary Ronald D. Stutes, City Attorney Bob Herrington, Mayor NOTICE OF MEETING CITY COUNCIL AGENDA MONDAY, May 13, 2013 Worksession @ 4:00 pm, City Hall Conference Room Regular Meeting @ 5:30 pm, City Council Chambers 504 N. Queen Street PALESTINE, TEXAS The City Council may meet in Closed Session regarding any item on this agenda if necessary, as permitted by Subchapter D of Chapter 551 of the Texas Government Code. WORKSESSION – 4:00 1) Discussion regarding the expenditure of funds to assist in relief efforts for the City of West, Texas resulting from the explosion on April 17, 2013 2) Discussion of the Annual Audit for Fiscal Year 2011-2012 REGULAR MEETING – 5:30 A. CALL TO ORDER B. C. INVOCATION and PLEDGE OF ALLEGIANCE Invocation followed by Pledge of Allegiance D. CONFLICT OF INTEREST DISCLOSURES E. F. G. PUBLIC COMMENTS, PUBLIC RECOGNITION, AND ANNOUNCEMENTS 1) Recognition of Firefighter Dean McInnis for promotion to Battalion Chief 2) Recognition of Firefighter Jeff Croft for promotion to Captain 3) Recognition of Firefighter Devin Jackson for promotion to Lieutenant 4) Recognition of Firefighter Edward Clayton for promotion to Driver 5) Recognition of new hire Firefighters Micah Betterton, Brad Connally, Brain Herbert, Clay Starling, and David Trawick 6) National Kids to Parks Day Proclamation PUBLIC HEARINGS 1) A Public Hearing regarding a specific use permit for a new assisted living facility at 2212 W. Reagan Street, which will be located directly to the south of the Cartmell Home. Applicant Tim Kozik on behalf of Cartmell Foundation, Inc. 2) A Public Hearing regarding a subdivision replat of residential zoned property located at 316 Lowe Street, being Lots 12 and 13, Block 5 of the Murchison and McDonald Subdivision, which is generally located 250 feet north of the intersection of Court Drive and Lowe Street. This replat will create one single lot designated as Lot 12-R. Applicant Leila Henderson MAYOR’S REPORT CITY MANAGER’S REPORT 1) Conflict of Interest Disclosures 2) Departmental Reports a) Development Services b) Fire c) Finance 1 2 In compliance with the Americans with Disabilities Act, the City of Palestine will provide for reasonable accommodations for persons attending City Council meetings. Requests for accommodations or interpretive services must be made 48 hours prior to the meetings. Please contact the City Secretary's office for further information at 903-731-8414. 3 RESOLUTION APPROVING EXPENDITURE TO ASSIST IN RELIEF EFFORTS FOR CITY OF WEST, TEXAS WHEREAS, on April 17, 2013, a massive explosion at the plant of the West Fertilizer Company plant in West, Texas resulted in approximately 15 deaths, hundreds of injuries, extensive property damage; and WHEREAS, Section 418.002 of the Texas Government Code provides for the coordination of activities relating to disaster response and recovery by agencies and officers of this state, and similar activities in which the state’s political subdivisions may participate; WHEREAS, Chapter 418 also empowers the Governor to declare a state of disaster is the governor finds that a disaster has occurred; and WHEREAS, Governor Rick Perry, on April 18, 2013, declared a state of disaster for McLennan County; and WHEREAS, The City Council finds that the provision of assistance to the authorities in West, Texas, is for the direct accomplishment of a legitimate public and municipal purpose. BE IT THEREFORE RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALESTINE, TEXAS, AS FOLLOWS: I. That the City of Palestine, by and through its City Council, authorizes the expenditure of no more than $5,000 as set forth in this resolution. II. That the City Manager of the City of Palestine is hereby directed to remit an amount determined to be consistent with the purposes set forth in the findings of this resolution to the City of West or other appropriate governmental or non-profit organization. III. That the City Manager is directed to require appropriate assurances from the recipient of the funding to ensure that the expenditure is used for purposes consistent with the Council’s intentions as set forth in this resolution. 4 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palestine on May 13, 2011. _________________________________ Bob Herrington, Mayor ATTEST: APPROVED AS TO FORM: _____________________________________ Teresa Herrera, Interim City Secretary _________________________________ Ronald Stutes, City Attorney 5 Proclamation National Kids to Parks Day: Saturday, May 18, 2013 WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, May 18th is the third National Kids to Parks Day organized and launched by the National Park Trust; and National Kids to Parks Day empowers kids and encourages families to get outdoors and visit America’s parks; and it is important to introduce a new generation to our nation’s parks because of the decline in Park attendance over the last decades; and we should encourage children to lead a more active lifestyle to combat the issues of childhood obesity, diabetes mellitus, hypertension and hypercholesterolemia; and National Kids to Parks Day is open to all children and adults across the country to encourage a large and diverse group of participants; and National Kids to Parks Day will broaden children’s appreciation for nature and the outdoors; and NOW THEREFORE, I, Bob Herrington, Mayor of the City of Palestine, Texas, do hereby proclaim to participate in National Kids to Parks Day. I urge residents of Palestine to make time May 18th, 2013 to take the children in their lives to a neighborhood, state, or national park. IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed the seal of the City of Palestine, Texas, this 13th day of May, 2013. Bob Herrington, Mayor ATTEST: Teresa Herrera, Interim City Secretary 6 7 8 EI LS T M CN ST AG AN ST Zoned MF-2 Multi-Family AH VARI T LL S 200-FOOT NOTIFICATION BOUNDARY 2212 W. Reagan Street ZE MIZ Existing Facility RE ON ULT ST ST W SF SON CK S JA ST R S ST S MIN R ST ST W N GA EA CUM ST HAW LE MIL AH VARI º YLE BRO ST CLAY ST Proposed New Assisted Living Facility Location CT File No. DR D WOO ELM EAD EST HOM OP T ER S S LO PALM Zoned R-3 Single Family 25 6 200-FOOT NOTIFICATION D PIE R BOUNDARY LLES I G W XZ-13-05 º Request: A specific use permit to construct a new assisted living facility Location: 2212 W. Reagan Street Cartmell Home for Aged Applicant: Tim Kozik on behalf of Cartmell Foundation, Inc. _ ^ 9 Vicinity Map 10 11 Cartmell Home Facility Proposed New Facility Location 12 AN ORDINANCE GRANTING A SPECIFIC USE PERMIT FOR A ASSISTED LIVING COMPLEX ON PROPERTY ZONED MF-2 MULTIFAMILY MEDIUM DENSITY DISTRICT AT 2212 W. REAGAN STREET WHEREAS, a public hearing was held before the Planning and Zoning Commission of the City of Palestine, Texas, on the 2nd day of May, 2013, and a public hearing was held before the City Council of the City of Palestine, Texas, on the 13th day of May, 2013, at 5:30 p.m., where all interested persons were provided with an opportunity to be heard on a proposed application for a Specific Use Permit for an assisted living complex located at 2212 W. Reagan Street, as provided in the Comprehensive Zoning Ordinance of the City of Palestine, Texas, said hearing being held at City Hall, with all notices being given as required by law; and WHEREAS, pursuant thereto, the Planning and Zoning Commission gave written notice of such hearing to all real property owners within two hundred (200) feet of the hereinafter described territory as reflected by the last approved tax roll for the City of Palestine, and notice being given more than ten (10) days prior to the date of said hearing by mailing the same, properly addressed to said owners; and WHEREAS, the Planning and Zoning Commission considered all of the testimony and all persons present were given an opportunity to be heard, and said Planning and Zoning Commission did make its final report in writing to the City Council; and WHEREAS, the City Council considered all of the testimony and all persons present were given an opportunity to be heard; and WHEREAS, the City Council is of the opinion that the following Ordinance should be passed and that the same is in the public interest and necessary for the promotion of health, safety, morals and general welfare of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PALESTINE, TEXAS: I. That a Specific Use Permit for an assisted living complex located at 2212 W. Reagan Street, as provided in the Comprehensive Zoning Ordinance of the City of Palestine, Texas, and that said property be subject to and governed by the terms of the aforesaid Ordinance; II. The Specific Use Permit authorized and permitted as shown per the attached "Exhibit A". III. Any person violating any provision of this ordinance shall, upon a conviction, be fined any sum not exceeding $2,000.00; and each day and every day that the provisions of this ordinance are violated shall constitute a separate and distinct offense. 13 PASSED, APPROVED and ADOPTED this 13th day of May, 2013. Bob Herrington, Mayor ATTEST: APPROVED AS TO FORM: Teresa Herrera, Interim City Secretary Ronald D. Stutes, City Attorney 14 15 16 º T RY S LAR 200-FOOT NOTIFICATION BOUNDARY AH VARI ST E ST LOW 316 Lowe St. E CALL W PALES TINE AV E R ST R RT D COU File No. Item: Zoning: P-13-02 º A replat of Lots 12 and 13, Block 5 of the Murchison and McDonald Subdivision R-2, Single Family Detached, Medium Density District Location: 316 Lowe Street Applicant: Leila Henderson 17 _ ^ Vicinity Map 316 Lowe Street Structure to be demolished and reconstructed upon the approval of the replat 18 Director Jeffrey Lyons Patsy Smith Code Enforcement Officer Alene Leveston, Administrative Assistant Ricky Dorsey, Code Enforcement Clydell Mc Peak, Code Enforcement/Plumbing Inspector Kim “Buck” Kelly, Building Official Brenda Murray, City Sanitarian/Code Enforcement Janet Migliaccio, Permit Technician DEVELOPMENT SERVICES April 2013 ACTIVITIES PLANNING AND DEVELOPMENT PLANNING AND ZONING COMMISSION: Approved a specific use permit request for the placement of a mobile home at 1502 Martin Luther King Jr., Blvd. Submitted case to the Planning and Zoning Commission. Approved amendments to the off-street parking and driveway standards in Chapter 40, Development as follows: Removed sub grade and pavement thickness requirements. Required the submittal of an Engineer's report when new parking lots are added on property where an existing building is equal to or exceeds 5,000 square feet. This item will be on Council's work session agenda on May 20th. ZONING BOARD OF A DJUSTMENTS AND APPEALS: Approved two variances as follows: Oversize commercial sign at Snap Fitness. Reconstruction of a nonconforming residence at 212 Maple Street. Staff Planner: Worked on the following projects: Variance request to the telecommunication tower construction standards for a proposed tower to be located on Benbrook Drive. Specific use permit request for the expansion of the Cartmell Home for Aged. Reviewed one residential replat combining two lots on Lowe Street to allow the reconstruction of an existing residence at 316 Lowe Street. Reviewed one commercial replat in the Business Park for Sanderson Farms. Reviewed one development plat for the expansion of ETA Global. Prepared casework for an alley closing adjacent to the former Rusk School and reviewed a replat combining the lots adjacent to the school. HISTORIC PRESERVATION Approved two Certificate of Appropriateness requests as follows: Renovations to the former Rusk School building that include replacing the rotting wood panels covering the window frames which face W. Green Street and those located on the east side of the building. Property owner indicated that all glass Development Services Activities for April 2013 Page 1 19 would be replaced throughout the building. Demolition of an addition to the residence located at 1113 N. John Street that is structurally unsound. BUILDING INSPECTIONS April permitting activities: TYPE OF PERMIT # OF PERMITS ISSUED JOB VALUE PERMIT FEE RESIDENTIAL NEW RESIDENCE ADDITION REMODEL ACCESSORY BUILDING ELECTRICAL MECHANICAL PLUMBING ROOF REPAIR NEW ROOF RESIDENTIAL TOTAL: 1 2 8 1 11 2 10 2 8 45 $800 $37,000 $20,400 $400 $0 $0 $0 $4,500 $23,850 $86,950 $25 $185 $139 $25 $377 $40 $290 $50 $225 $1,355 COMMERCIAL ADDITION REMODEL ELECTRICAL MECHANICAL PLUMBING NEW ROOF GAS TEST CERTIFICATE OF OCCUPANCY FENCE CARNIVAL PERMIT DEMOLITION DRIVEWAY SIGN NEW VENDOR COMMERCIAL TOTAL: 2 1 7 6 1 3 3 4 2 1 1 2 2 1 36 $22,000 $350 $0 $0 $0 $228,000 $0 $0 $7,863 $0 $0 $0 $50 $0 $258,263 $190 $25 $496 $360 $56 $75 $78 $140 $75 $60 $25 $50 $25 $50 $1,705 OTHER PERMITS CEMETERY PLOTS ALARM PERMITS OTHER PERMIT TOTALS: 3 3 6 ALL PERMITS TOTALS: 93 $750 $2,250 $3,000 $345,213 Development Services Activities for April 2013 $6060 Page 2 20 Issued Certificates of Occupancy at the following locations: 1. 2. 3. 4. Sander Tire Stellar Automation Ann H. Slattery Trust Nightclub (216 Salt Works Road) HEALTH INSPECTIONS City Sanitarian inspected 18 food establishments all of which passed. Issued seven health permits. CODE ENFORCEMENT Hired Patsy Smith as the new code enforcement officer. Start date TBD. Summary of code enforcement activities: 1% 1% 1% 1% TYPE OF VIOLATION 1% 3% TALL GRASS AND WEEDS 3% 1% JUNK VEHICLES 6% ANIMALS AT LARGE OUTDOOR STORAGE RODENT HARBORAGE ILLEGAL SIGNS 82% SUBSTANDARD STRUCTURES SWIMMING POOL FENCES TREE LIMBS IN R-O-W FREQUENCY OF VIOLATIONS PROCESSED VISUAL OBSTRUCTION TYPE OF VIOLATION # OF LETTERS SENT TALL GRASS AND WEEDS JUNK VEHICLES ANIMALS AT LARGE OUTDOOR STORAGE RODENT HARBORAGE ILLEGAL SIGNS SUBSTANDARD STRUCTURES SWIMMING POOL FENCES TREE LIMBS IN R-O-W VISUAL OBSTRUCTION TOTAL 124 10 1 1 1 1 4 2 2 5 151 Development Services Activities for April 2013 Page 3 21 Assisted Ricky Baker, Adult Probation Supervisor, with graffiti removal on April 27th. 1310 South Loop 256 prior to removal: 1310 S. Loop 256 after: Development Services Activities for April 2013 Page 4 22 2203 Crockett Road prior to removal: 2203 Crockett Road after: 218 Bowers St. prior to removal: 218 Bowers St. after: Development Services Activities for April 2013 Page 5 23 Alan Wilcher Fire Chief 903-731-8463 To: Mike Ohrt, City Manager From: Alan Wilcher, Fire Chief Re: Monthly Report Date: April In the Month of April, the Fire Department responded to a total of 102 calls for service. Hazardous Condition with no fire made up the largest percent at 38.23% of the calls. Fire Overpressure Rupture, Explosion, Overheating (no Fire) 0% 5% 11% Rescue & Emergency Medical Service Incident 6% 1% 9% Hazardous Condition (no fire) 30% 38% Service Call Good Intent Call False Alarm & False call Severe weather & Natural Disaster Fire Overpressure Rupture, Explosion, Overheating (no Fire) Rescue & Emergency Medical Service Incident Hazardous Condition (no fire) Service Call Good Intent Call False Alarm & False call Severe weather & Natural Disaster Special Incident Type 24 5.88% 0.98% 29.41% 38.23% 10.78% 4.90% 8.82% 0.00% 0.98% City of Palestine Monthly Finance Report (Unaudited)/Preliminary for the period ending Month 7 April 30 58.33% 2013 Budget General Fund Revenue Total Revenue YTD 13,384,021 11,034,280 13,384,021 11,034,280 31,864 275,805 106,468 75,000 94,880 498,051 85,508 533,507 173,173 342,816 394,050 2,351,286 539,887 159,349 451,636 250,364 2,522,535 82,505 155,113 1,259,965 198,887 848,828 117,145 237,603 703,461 463,243 83,937 94,834 244,941 83,138 22,387 102,052 69,588 59,670 55,772 262,732 43,513 263,904 102,925 213,901 174,434 1,111,476 257,545 77,920 208,829 142,204 1,360,933 40,887 92,583 553,012 103,021 425,430 57,842 111,744 409,246 192,666 43,315 69,587 125,635 47,902 13,459,779 6,802,652 % to Date 82% Prior Year April 30 9,635,262 82% 9,635,262 Expense CITY COUNCIL CITY MANAGER CITY SECRETARY LEGAL PERSONNEL ACCOUNTING CUSTOMER SERVICE MUNICIPAL COURT MIS INTERFUND SERVICES POLICE ADMINISTRATION POLICE PATROL POLICE CID ANIMAL CONTROL COMMUNICATIONS FIRE ADMINISTRATION FIRE SUPPRESSION EMERGENCY MANAGEMENT PUBLIC WORKS ADMIN STREET MAINTENANCE FLEET MAINTENANCE ENGINEERING NGIN RING PARKS CEMETERY MAINTENANCE FACILITY MAINTENANCE LIBRARY DEVELOPMENT SERVICES HEALTH PLANNING ECONOMIC DEVELOPMENT ADM MAIN STREET Total Expenses General Fund YTD Results (75,758) 70% 37% 65% 80% 59% 53% 51% 49% 59% 62% 44% 47% 48% 49% 46% 57% 54% 50% 60% 44% 52% N/A / 50% 49% 47% 58% 42% 52% 73% 51% 58% 20,214 97,774 52,086 53,871 49,868 266,836 182,247 100,537 157,657 134,225 1,160,199 311,109 85,545 220,047 90,401 1,379,782 49,792 83,158 622,434 128,407 84,393 8 ,393 377,895 35,371 113,040 385,689 256,621 38,881 44,560 127,077 40,120 51% 6,749,836 4,231,628 Prepared by Elizabeth Sanders Saegert 25 City of Palestine Monthly Finance Report (Unaudited)/Preliminary for the period ending Month 7 April 30 58.33% 2013 Budget General Fund General Fund Revenue Ad Valorem Taxes City Sales Tax City Sales Tax ‐ PTR Electrical Franchise Municipal Court Fines Other 5,235,813 4,065,196 1,016,329 730,000 695,437 1,641,246 YTD 5,674,841 2,246,151 561,538 384,952 303,150 1,863,648 13,384,021 11,034,280 % to Date 108% 55% 55% 53% 44% 114% Prior Year April 30 4,799,817 2,018,863 504,716 411,969 203,631 313,476 82% 9,635,262 Prepared by Elizabeth Sanders Saegert 26 City of Palestine Monthly Finance Report (Unaudited)/Preliminary for the period ending Month April 30 58.33% 7 Occupancy Tax Fund Revenue 2013 Budget YTD % to Date 420,676 208,017 174,706 53,367 81,413 15,313 Prior Year April 30 49% 261,238 Expense MARKETING VISITOR'S CENTER CIVIC CENTER Total Expenses 184,365 120,582 412,438 217,308 Occupancy Tax Fund YTD Results Economic Development Corp Revenue 8,237 47% 29% 65% 94,162 21,095 102,677 53% 217,934 (9,290) 1,016,329 577,092.61 946,050 510,000 125,000 75,000 285,284 30,210 727 5,066 1,656,050 321,286 57% 593,783 Expense OPERATIONS SPECIAL SERVICES COMMUNITY DEV PROGRAM FASCADE PROGRAM Total Expenses Economic Development Corp YTD Results (639,721) Health Insurance Revenue Expense Total Expenses 30% 6% 1% 7% 19% 531,271 255,806 2,396,305 1,344,141 2,396,305 1,344,141 56% 26% 2,301,448 594,708 2,301,448 594,708.16 94,857 749,433.20 Health Insurance Fund YTD Results 522,821 1,950 6,500 56% 1,099,175 1,203,243 26% 1,203,243 Prepared by Elizabeth Sanders Saegert 27 City of Palestine Monthly Finance Report (Unaudited)/Preliminary for the period ending Month April 30 58.33% 7 2013 Budget Water Fund Revenue YTD % to Date 3,593,900 1,746,014 3,593,900 1,746,014 555,431 112,133 271,888 259,002 1,719,048 808,230 314,979 57,956 133,703 90,066 745,163 409,999 3,725,731 1,751,867 49% Prior Year April 30 1,638,781 49% 1,638,781 Expense WATER OPERATIONS UTILITY ADMINISTRATION CUSTOMER SERVICE ENGINEERING WATER TREATMENT WATER DISTRIBUTION Total Expenses Water Fund YTD Results Wastewater Fund Revenue (131,831) 57% 52% 49% 35% 43% 51% 457,823 57,098 187,254 768,070 532,030 47% 2,002,275 (5,853) 3,622,624 1,923,426 53% 1,955,791 3,622,624 1,923,426 53% 1,934,931 564,520 912,297 172,101 1,124,564 304,856 546,723 65,442 58% 54% 60% 38% 3,583,849 2,041,584 Expense WASTEWATER OPERATIONS WASTEWATER COLLECTION WASTEWATER TREATMENT COMPLIANCE MONITONING Total Expenses Wastewater Fund YTD Results 38,775 Sanitation Fund Revenue 1,154,417 336,178 502,404 92,323 57% 2,085,322 (118,159) 2,646,230 1,492,496 56% 2,698,414 1,492,496 55% 308,280 2,129,062 179,905 1,400,670 58% 66% 2,437,341 1,580,575 1,421,782 Expense OPERATIONS REFUSE DISPOSAL Total Expenses Sanitation Fund YTD Results 261,073 191,442 1,091,731 65% 1,283,173 (88,079) Prepared by Elizabeth Sanders Saegert 28 City of Palestine Monthly Finance Report (Unaudited)/Preliminary for the period ending Month 7 April 30 58.33% 2013 Budget YTD % to Date Prior Year April 30 Retail Fund Revenue 538,234 306,426 538,234 306,426 291,401 125,657 159,594 26,721 417,058 186,315 121,176 120,111 179,982 97,937 60,000 48,000 65,119 87,196 74,993 57,130 50,499 28,000 35,015 60,789 57% 290,108 57% 290,108 Expense RETAIL FUND OPERATIONS RETAIL DEBT SERVICE Total Expenses Retail Fund YTD Results 55% 21% 144,592 56,080 45% 200,672 Retail Fund Revenue Retail Fund Department of Veterans Affairs JC Penney Burks Pain Care Clinics, PA Aaron's Other 538,234 306,426 42% 58% 84% 58% 54% 70% 90,591 48,969 35,000 28,000 37,986 49,562 57% 290,108 Prepared by Elizabeth Sanders Saegert 29 City of Palestine Monthly Finance Report (Unaudited)/Preliminary for the period ending Month 7 April 30 58.33% 2013 Budget YTD % to Date Prior Year April 30 Department of Veterans Affairs, 74,993 Other, 60,789 Aaron's, 35,015 JC Penney, 57,130 Burks, 50,499 (1) Pain Care Clinics, PA, 28,000 Budget revision required Prepared by Elizabeth Sanders Saegert 30 City of Palestine Monthly Finance Report (Unaudited)/Preliminary for the period ending Month April 30 7 58.33% General Fund Revenue Municipal Court Fines 3% Other 17% Electrical Franchise 4% Ad Valorem Taxes 51% City Sales Tax ‐ PTR 5% City Sales Tax 20% 31 Prepared by Elizabeth Sanders Saegert 5/6/20131:42 PM Cash Collections Walker Apr 184,681.43 21% 124,481.24 14% 174,128.90 19% 322,764.31 36% 262,358.93 32% 203,817.18 28% 300,969.03 29% Mar Feb Jan Dec Nov Oct Bain 79,915.97 9% 130,633.41 14% 153,067.67 17% 124,305.88 14% 176,489.65 22% 173,126.62 23% 141,104.04 14% Zavala 175,286.06 20% 188,016.99 21% 127,281.62 14% 191,193.31 22% 140,125.60 17% 150,211.40 20% 316,300.25 31% Schulz* 351,076.63 41% 372,889.07 41% 351,703.75 39% 175,887.35 20% 175,475.27 22% 154,259.37 21% 202,707.76 20% Kiosk 12,239.57 1% Included in Other N/A Included in Other N/A Included in Other N/A Included in Other N/A Included in Other N/A Included in Other N/A Sep *Utilities Only Utility Accounts Receivable > 120 Days Apr May June 19,308.57 Kiosk Apr May June 12,239.57 32 Other 62,705.02 7% 80,916.24 9% 96,718.80 11% 70,919.28 8% 59,118.78 7% 59,291.33 8% 65,880.12 6% Total 865,904.68 100% 896,936.95 100% 902,900.74 100% 885,070.13 100% 813,568.23 100% 740,705.90 100% 1,026,961.20 100% 948,779.32 Prior Year Change 858,368.55 7,536.13 859,913.44 37,023.51 990,724.56 (87,823.82) 914,055.34 (28,985.21) 913,275.74 (99,707.51) 1,005,129.46 (264,423.56) 1,057,546.39 (30,585.19) 1,126,557.37 (177,778.05) 33 34 35 36 37 City of Palestine Investment Report (Unaudited) For The Period Ending March 2013 Investment TEXSTAR TEXSTAR TEXSTAR TEXSTAR TEXPOOL TEXSTAR TEXSTAR TEXSTAR TEXSTAR TEXSTAR TEXSTAR TEXSTAR TEXPOOL TEXSTAR Description CO 2013 TRANE (645) CO 2006 (671) CO 2008 (681) Debt Service (615) Operating Operating Water RDSR (600) Water Customer Deposits WWater RDSR (610) SSES 11 Construction (771) SSES 11 Engineering Water Tower Series 2010B (672) Workers Compensation WW & SS 2009 Escrow (772) Beginning Balance 2,540,000.00 155,635.00 405,615.35 32,500.62 841,166.08 79,520.29 428,569.00 452,121.48 708,412.85 1,069,026.90 189,868.16 90,734.12 452,492.88 TSRA BNY Mellon Texas State Railroad Authority 2007 Bonds 500,000.00 2,009,256.69 Note: Transfers 3,128,126.00 Interest Ending Balance 34.57 2,540,034.57 41.34 155,676.34 107.77 405,723.12 8.62 32,509.24 205.57 841,371.65 951.24 3,208,597.53 428,569.00 452,121.48 708,412.85 283.95 1,069,310.85 50.42 189,918.58 22.20 90,756.32 120.20 452,613.08 See Note 49.54 Interest paid FY 2012-13 2,500.00 38 500,000.00 2,009,306.23 Yield 0.001361% 0.026562% 0.026570% 0.026523% 0.024439% 0.019827% NA NA NA 0.026562% NA 0.026555% 0.024467% 0.026564% NA 0.002466% 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 ORDINANCE ADOPTING RULES OF THE CITY OF PALESTINE, TEXAS FOR ON-SITE SEWAGE FACILITIES WHEREAS, the Texas Commission on Environmental Quality has established Rules for on-site sewage facilities to provide the citizens of this State with adequate public health protection and a minimum of environmental pollution; and WHEREAS, the Legislature has enacted legislation, codified as Texas Health and Safety Code, Chapter 366, which authorizes a local government to regulate the use of on-site sewage facilities in its jurisdiction in order to abate or prevent pollution or injury to public health arising out of the use of on-site sewage facilities; and WHEREAS, due notice was given of a public meeting to determine whether the City Council of the City of Palestine, Texas should enact an Ordinance controlling or prohibiting the installation or use of on-site sewage facilities in the City of Palestine, Texas; and WHEREAS, the City Council of the City of Palestine, Texas finds that the use of on-site sewage facilities in the City of Palestine, Texas is causing or may cause pollution, and is injuring or may injure the public health; and WHEREAS, the City Council of the City of Palestine, Texas has considered the matter and deems it appropriate to enact an Ordinance adopting Rules regulating on-site sewage facilities to abate or prevent pollution, or injury to public health in the City of Palestine, Texas. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PALESTINE, TEXAS: I. That a new Article VIII in Chapter 46, Environment, be adopted entitled On-Site Sewage Facilities, to read as follows: Sec. 46-220. – Adoption of state standards. (a) The technical criteria and requirements for on-site sewage facilities set forth in Chapter 366 of the Texas Health & Safety Code and Chapters 7 and 37 of the Texas Water Code, as they may be amended from time to time, are hereby adopted by reference. (b) The regulations adopted by the appropriate state agencies, as set out in Subchapter G of Chapter 30 and Chapter 285 of Title 30 of the Texas Administrative Code, as they may be amended from time to time, are hereby adopted by reference. 62 (c) The ordinance shall apply within the city limits of the City of Palestine. (d) As provided in Section 285.3 of Title 30 of the Texas Administrative Code, a person shall hold a permit and an approved plan to construct, alter, repair, extend, or operate an on-site sewage facility unless the facility meets one of the exceptions in Section 285.3(f) of that Title. Sec. 46-221. – Local Procedures. (a) The fees for permits and inspections shall be as set forth in the schedule of fees. (b) The initial decision regarding the granting of a permit, the issuance of a cease and desist order, or an inspection shall be by the OSSF Inspector designated by the City Manager. The OSSF Inspector shall be properly certified by the Texas Commission on Environmental Quality. (c) If a person is aggrieved by the decision of the OSSF Inspector, the person may appeal the decision to the City Council. Sec. 46-222. – Penalties. All applicable penalty provisions related to on-site sewage facilities found in Chapters 341 and 366 of the Texas Health and Safety Code, Chapters 7 and 26 of the Texas Water Code, and Chapters 30 and 365 of Title 30 of the Texas Administrative Code, and they may be amended from time to time, are hereby adopted by reference II. That all other laws, ordinances, or resolutions, in whole or in part, that are inconsistent with the provisions of this ordinance are hereby repealed to the extent of such inconsistency. III. That in the event any part of this ordinance is declared to be invalid or unconstitutional, such declaration shall not affect the remaining portions of the ordinance which shall remain in full force and effect as if the portion so declared invalid or unconstitutional was not originally a part of the ordinance. IV. This Ordinance shall be in effect upon the approval of the Texas Commission on Environmental Quality. 63 PASSED, APPROVED and ADOPTED by the City Council of the City of Palestine, Texas, at a regular meeting held on this the 13th day of May, 2013. BOB HERRINGTON, MAYOR ATTEST: TERESA HERREA INTERIM CITY SECRETARY APPROVED AS TO FORM: RONALD D. STUTES CITY ATTORNEY 64 65 66 67 EI LS T M CN ST AG AN ST Zoned MF-2 Multi-Family AH VARI T LL S 200-FOOT NOTIFICATION BOUNDARY 2212 W. Reagan Street ZE MIZ Existing Facility RE ON ULT ST ST W SF SON CK S JA ST R S ST S MIN R ST ST W N GA EA CUM ST HAW LE MIL AH VARI º YLE BRO ST CLAY ST Proposed New Assisted Living Facility Location CT File No. DR D WOO ELM EAD EST HOM OP T ER S S LO PALM Zoned R-3 Single Family 25 6 200-FOOT NOTIFICATION D PIE R BOUNDARY LLES I G W XZ-13-05 º Request: A specific use permit to construct a new assisted living facility Location: 2212 W. Reagan Street Cartmell Home for Aged Applicant: Tim Kozik on behalf of 68 Cartmell Foundation, Inc. _ ^ Vicinity Map 69 70 Cartmell Home Facility Proposed New Facility Location 71 AN ORDINANCE GRANTING A SPECIFIC USE PERMIT FOR A ASSISTED LIVING COMPLEX ON PROPERTY ZONED MF-2 MULTIFAMILY MEDIUM DENSITY DISTRICT AT 2212 W. REAGAN STREET WHEREAS, a public hearing was held before the Planning and Zoning Commission of the City of Palestine, Texas, on the 2nd day of May, 2013, and a public hearing was held before the City Council of the City of Palestine, Texas, on the 13th day of May, 2013, at 5:30 p.m., where all interested persons were provided with an opportunity to be heard on a proposed application for a Specific Use Permit for an assisted living complex located at 2212 W. Reagan Street, as provided in the Comprehensive Zoning Ordinance of the City of Palestine, Texas, said hearing being held at City Hall, with all notices being given as required by law; and WHEREAS, pursuant thereto, the Planning and Zoning Commission gave written notice of such hearing to all real property owners within two hundred (200) feet of the hereinafter described territory as reflected by the last approved tax roll for the City of Palestine, and notice being given more than ten (10) days prior to the date of said hearing by mailing the same, properly addressed to said owners; and WHEREAS, the Planning and Zoning Commission considered all of the testimony and all persons present were given an opportunity to be heard, and said Planning and Zoning Commission did make its final report in writing to the City Council; and WHEREAS, the City Council considered all of the testimony and all persons present were given an opportunity to be heard; and WHEREAS, the City Council is of the opinion that the following Ordinance should be passed and that the same is in the public interest and necessary for the promotion of health, safety, morals and general welfare of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PALESTINE, TEXAS: I. That a Specific Use Permit for an assisted living complex located at 2212 W. Reagan Street, as provided in the Comprehensive Zoning Ordinance of the City of Palestine, Texas, and that said property be subject to and governed by the terms of the aforesaid Ordinance; II. The Specific Use Permit authorized and permitted as shown per the attached "Exhibit A". III. Any person violating any provision of this ordinance shall, upon a conviction, be fined any sum not exceeding $2,000.00; and each day and every day that the provisions of this ordinance are violated shall constitute a separate and distinct offense. 72 PASSED, APPROVED and ADOPTED this 13th day of May, 2013. Bob Herrington, Mayor ATTEST: APPROVED AS TO FORM: Teresa Herrera, Interim City Secretary Ronald D. Stutes, City Attorney 73 74 75 76 º T RY S LAR 200-FOOT NOTIFICATION BOUNDARY AH VARI ST E ST LOW 316 Lowe St. E CALL W PALES TINE AV E R ST R RT D COU File No. Item: Zoning: P-13-02 º A replat of Lots 12 and 13, Block 5 of the Murchison and McDonald Subdivision R-2, Single Family Detached, Medium Density District Location: 316 Lowe Street Applicant: Leila Henderson 77 _ ^ Vicinity Map 316 Lowe Street Structure to be demolished and reconstructed upon the approval of the replat 78 79 RESOLUTION TO IMPOSE ADDITIONAL PENALTY FOR COLLECTION COSTS WHEREAS, the Texas Property Tax Code, §33.07 provides that a taxing unit may impose an additional penalty to defray the costs of collection of delinquent property taxes that remain delinquent after July 1; and, WHEREAS, the Texas Property Tax Code, §33.08, provides that a taxing unit may provide that taxes that become delinquent on or after June 1, under §§ 26.07, 26.15, 31.03, 31.031, 31.032, 31.04, incur an additional penalty to defray the costs of collection; and, WHEREAS, both §§ 33.07 and 33.08, Texas Property Tax Code provide that the amount of such additional penalty may not exceed the amount of compensation specified in the applicable contract executed in accordance with §6.30, Texas Property Tax Code with an attorney to be paid in connection with the collection of delinquent taxes; and, WHEREAS, the City of Palestine has determined that it is in the public interests to insure the prompt payment of delinquent taxes, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALESTINE, TEXAS THAT: There shall be imposed on delinquent property taxes that become due or are delinquent on the dates described in §§ 33.07, 33.08, Texas Property Tax Code, a penalty in the amount of twenty percent of the amount of delinquent taxes, penalties and interest due the City of Palestine, Texas. RESOLVED THIS 13TH DAY OF MAY, 2013. ______________________________________ Bob Herrington, Mayor ATTEST: ______________________________________ Teresa Herrera, Interim City Secretary 80 81 MCCREARY, VESELKA, BRAGG & ALLEN, P.C. ATTORNEYS AT LAW 100 N. 6th Street, Suite 602 Waco, Texas 76701 ROBERT L. MEYERS, ATTORNEY e-mail: rmeyers@mvbalaw.com www. mvbalaw.com TELE. 254-756-7755 FAX. 254-756-0333 P.O. BOX 1669 WACO, TX 76703-1669 May 13, 2013 Mr. Michael Ohrt City Manager, City of Palestine 504 Queen Street Palestine, Texas 75801 Re: Contract for the Collection of Delinquent Taxes Dear Mr. Ohrt: Our law firm has represented the City of Palestine in the collection of delinquent property taxes since 1987. Our delinquent tax collection services are an economic benefit to the City by insuring that delinquent property taxes are recovered and providing an incentive for the prompt payment of current year taxes. In order to provide delinquent property tax collection services to the City, we have established an office in the City of Palestine that is currently located in the Anderson County Tax Office and is staffed with a full time and a part time person. We would like to add an additional staff member to our local staff to enhance our collection services to the City. In order to provide funding for the additional staff member, we are requesting the City increase our fee from fifteen percent to twenty percent of the delinquent taxes, penalties and interest that we recover for the City. The fee in our current contract is based on the statute that was then in effect. At this time the statute has been changed to allow a taxing unit to compensate a law firm that represents it in the collection of delinquent taxes a fee of twenty percent of the amount of delinquent taxes, penalties and interest that it recovers. Under the statute our fee for collection of delinquent taxes is passed on directly to the delinquent taxpayer by the City’s adoption of an additional penalty for collection costs. Thus, our collection services are at no cost to the City. Listed below is a summary of our collection and legal services that we have provided the City and proposed contract terms. DELINQUENT PROPERTY TAX COLLECTION • Results of our Collection Program. During the past five years the City has experienced strong collections of both its current taxes and delinquent taxes. The City’s annual current tax collection percentage has ranged from 96.50% to 97.08%. For each of these years, the City’s total annual tax collection (including both current and delinquent tax collections) has actually exceeded its tax levy. 82 • Taxpayer Notification. Periodically throughout the year, we mail delinquent tax notices to each property owner who owes delinquent taxes to the City. Prior to each mailing, our staff conducts extensive address research on any accounts that have insufficient addresses to insure that each property owner receives notification of the City’s delinquent taxes. Our staff in Palestine routinely receives calls and contacts from persons responding to these delinquent notices. At our local office, we answer taxpayer’s inquiries and assist taxpayers in making arrangements for payment of the City’s taxes if they are unable to pay the total amount that is due. • Litigation. On behalf of the City, our Firm files delinquent tax suits against property owners who fail to respond to the written notices that we send and the telephone calls that we make. Cases in which property owners do not pay their taxes are set for trial in the District Courts of Anderson County at which time we recover Judgments of Foreclosure against the property owners and their properties. If a property owner persists in not paying the taxes, the Firm routinely conducts tax sales at which the property owner’s property is sold at public auction on the steps of the Courthouse to recover the City’s delinquent taxes. While the Firm has an aggressive policy in the collection of the City’s taxes, we only initiate legal proceedings as a last resort in our collection process and are readily available to assist property owners with structuring payments within their budgets to satisfy their delinquency. • Bankruptcy. The Firm’ attorneys are licensed in every Federal Bankruptcy Court in the state and appear in many bankruptcy courts throughout the United States in order to represent the City in collecting delinquent taxes from persons and businesses who have filed Bankruptcy. COMPENSATION AND TERM OF CONTRACT • Term of Contract. We propose to renew our contract for an initial term of three years. The proposed contract also allows our continued representation of the City after the initial three year term, under the same terms and conditions, on a year by year basis with the right of either party to terminate it. • Compensation. In order to insure that we have adequate revenue to provide the services to the City that are outline above, we propose increasing our fee to twenty percent (20%) of the delinquent taxes that we collect for the City. The City is able to pass along the costs of our collections services and legal representation to the delinquent property owner by the imposition of an additional collection fee as authorized by the Texas Property Tax Code. Thus, these services are provided at no cost to the City. 83 We have represented the City since 1987 and believe that our Firm has provided the City with the highest quality legal and collection services that are available. We respectfully request the opportunity to continue our representation of the City and have included a proposed Contract for your review. Sincerely, Robert L. Meyers Robert L. Meyers McCreary, Veselka, Bragg & Allen, P.C. 84 CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES THE STATE OF TEXAS COUNTY OF ANDERSON § § § THIS CONTRACT is made and entered into by and between the CITY OF PALESTINE, TEXAS (“the City”), acting herein by and through its governing body, and McCREARY, VESELKA, BRAGG & ALLEN, P.C., 100 North 6th Street, Waco, Texas 76701,(“MVBA”). I. The City agrees to retain and does hereby retain McCreary, Veselka, Bragg and Allen, P.C. to provide legal services related to the enforcement of the collection of delinquent property taxes due to the City, by suit or otherwise, pursuant to the terms and conditions in this contract. II. Current year taxes which become delinquent within the period of this contract shall become subject to the terms of the contract upon the following conditions: A. Taxes that become delinquent during the term of this contract on property that has no delinquent taxes for any prior years, become subject to the terms of this contract on July 1st of the year in which they become delinquent. B. Taxes that become delinquent during the term of this contract on property that has delinquent taxes for prior years and is the subject of a suit to collect the prior year’s delinquent taxes shall become subject to its terms on the first day of delinquency as defined by the Texas Property Tax Code. III. The City agrees to furnish all necessary delinquent tax information to MVBA on all property within the boundaries of the City. The City hereby authorizes MVBA to determine the name, identity and location of necessary parties and to procure necessary legal descriptions of property and hereby assigns to MVBA the right to recover the costs of obtaining such information. IV. MVBA is to advise the City of errors, double assessments or other discrepancies coming under observation during the progress of the work. V. MVBA is to intervene on behalf of the City in all suits for ad valorem taxes hereafter filed by any other taxing unit on property located within its boundaries. 85 VI. The City agrees to pay MVBA for services rendered: i) Fifteen Percent (15%) of all delinquent taxes, penalty and interest that are collected pursuant to the terms of this Contract for tax year 2011 and prior tax years, and ii) Twenty Percent (20%) of all delinquent taxes, penalty and interest that are collected pursuant to the terms of this Contract for tax year 2012 and subsequent tax years. The penalties imposed pursuant to Sections 33.07 and 33.08 of the Property Tax Code are not subject to this contractual fee. The City does hereby acknowledge that it has adopted the additional penalties provided by Section 33.07 and 33.08 of the Property Tax Code. All fees provided for in this contract shall become the property of the Firms at the time that payments of taxes, penalties and interest are made. The City shall pay fees due MVBA monthly by check. VII. MVBA shall indemnify and hold the City harmless from and against all liabilities, losses and/or costs arising from claims for damages, or suits for losses or damages, including reasonable costs and attorney's fees, which may arise as a result of MVBA's performance of the services described in this contract. The indemnity provision of this contract shall have no application to any claim or demand which results from the sole negligence or fault of the City, its officers, agents, employees or contractors. And furthermore, in the event of joint and/or shared negligence or fault of the City and MVBA, responsibility and indemnity, if any, shall be apportioned in accordance with Texas law and without waiving any defenses of either party. The provisions of this paragraph are intended for the sole benefit of the parties hereto and are not intended to create or grant any right, contractual or otherwise, to any other persons or entities. . VIII. MVBA agrees to make collection progress reports to the City on request. IX. This contract is drawn to cover an initial period of two years beginning May 13, 2013, and ending May 12, 2016, (“Anniversary Date”) and shall continue in full force and effect thereafter on the same terms and conditions from year to year until either party delivers written notice to the other parties of its intent to terminate the contract at least thirty (60) days prior to the Anniversary Date. Upon termination of the contract, MVBA shall have an additional six (6) months to reduce to judgment and sale all tax collection lawsuits filed and collect all bankruptcy claims filed prior to the termination date and shall have the exclusive right to compensation of fees earned due to the collection of property tax accounts that are the subject of these property tax lawsuits and bankruptcy claims during this six (6) month period. At the end of the six (6) month period, all accounts shall be returned to the City by MVBA. 86 X. This contract is made and is to be interpreted under the laws of the State of Texas. In the event that any provision(s) of this contract shall for any reason be held invalid or unenforceable, the invalidity or unenforceability of that provision(s) shall not affect any other provision(s) of this contract, and it shall further be construed as if the invalid or unenforceable provision(s) had never been a part of this contract. In consideration of the terms and compensation herein stated, MVBA hereby accepts said employment and undertake the performance of this contract as above written. The contract is executed on behalf of the City by the presiding officer of its governing body who is authorized to execute this instrument by order heretofore passed and duly recorded in its minutes. WITNESS the signatures of all parties hereto in duplicate originals this the _____ day of May, A.D. 2013, City of Palestine, Texas. THE CITY OF PALESTINE, TEXAS BY ___________________________________________ Mike Ohrt City Manager McCREARY, VESELKA, BRAGG AND ALLEN, P.C. Attorneys at Law 100 North 6th Street, Suite 602 Waco, Texas 76701 BY ___________________________________________ Robert L. Meyers 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 RESOLUTION APPROVING AN AGREEMENT FOR THE ABATEMENT OF AD VALOREM TAXES PURSUANT TO CHAPTER 312 OF THE TEXAS TAX CODE WHEREAS, Chapter 312 of the Texas Tax Code provides that a municipality may enter into tax abatement agreements in order to promote economic development to the benefit of the citizens of the city as a whole; and WHEREAS, the Commissioners Court of Anderson County has established a Reinvestment Zone in the Extra Territorial Jurisdiction of the City of Palestine; and WHEREAS, the City Council has approved the agreement between the Palestine Economic Development Corporation and Sanderson Farms, Inc. to encourage Sanderson Farms to construct and operate a new processing facility in Anderson County and within the Reinvestment Zone; and WHEREAS, as part of that agreement, the City is to abate the taxes of Sanderson Farms as set out in the Tax Abatement Agreement set forth in Exhibit A, if and when the property is annexed; and WHEREAS, the public interest will be served by encouraging, through exemption from property taxes, the economic development proposed by Sanderson Farms: BE IT THEREFORE RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALESTINE, TEXAS, AS FOLLOWS: I. That the City Council of the City of Palestine, pursuant to Section 312.207 of the Texas Tax Code, approves the Tax Abatement Agreement with Sanderson Farms, Inc., in the form set forth as Exhibit A to this Resolution. II. That the City Manager is authorized to execute the Tax Abatement Agreement. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palestine on May 13, 2013: _________________________________ BOB HERRINGTON, MAYOR ATTEST: APPROVED AS TO FORM: _____________________________________ TERESA HERRERA INTERIM CITY SECRETARY _________________________________ RONALD STUTES, CITY ATTORNEY 113 114 TAX ABATEMENT AGREEMENT CITY OF PALESTINE, TEXAS This Tax Abatement Agreement (the “Agreement”) is entered into by the City of Palestine, Texas (the “City”) and Sanderson Farms, Inc., (the “Owner”). The City and the Owner are hereinafter collectively referred to herein as the “Parties” and individually as a “Party”. WITNESSETH: WHEREAS, on April 22, 2013, the County Commissioners Court of Anderson County, Texas passed an order (the “Order”) establishing a Reinvestment Zone (the “Zone”) within the City’s extraterritorial jurisdiction for commercial/industrial tax abatement as authorized by Chapter 312 of the Texas Tax Code (the “Code”); and WHEREAS, the City has previously adopted a resolution setting forth the guidelines and criteria for tax abatement (the “Guidelines”), for a period not to exceed 10 years, as a policy on economic development incentives; and WHEREAS, the Guidelines constitute appropriate guidelines and criteria governing reinvestment zones and tax abatement agreements to be entered into by the City as contemplated by the Code; and WHEREAS, the City desires to maintain and enhance the commercial and industrial economic and employment base of the City for the long term interest and benefit of the City in accordance with the Ordinance, the Guidelines, and the Code; and WHEREAS, Section 312.204(c) of the Texas Tax Code expressly permits a city to enter into a tax abatement agreement covering property within its extraterritorial jurisdiction, and provides that in such instance the agreement applies to the city’s taxes if the city annexes the property during the period specified in the agreement; and WHEREAS, the contemplated use of the Property, the contemplated improvements to the Property, and the other terms hereof are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the Guidelines, the Ordinance, the Code, and other applicable law. NOW THEREFORE, in consideration of the foregoing and for other valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties agree as follows: 1. The Property. The real property that is the subject of this Agreement shall be that property owned by Owner and described by metes and bounds, as set forth on Exhibit “A” attached hereto, and depicted on the map attached hereto as Exhibit “B” (the “Property”). The Owner represents and warrants that the Property is owned solely by Owner; is located entirely 115 within the extraterritorial jurisdiction of the City of Palestine; is wholly within the Zone; and is currently unimproved. 2. The Improvements. (a) The Owner shall construct a facility containing approximately 170,000 square feet of enclosed floor space (the “Improvements”) on the Property as specifically described in the application for tax abatement, attached hereto as Exhibit “C.” The total construction cost (including purchase and installation of equipment to be used at the said facility) shall be not less than $ 72 million. (b) The Improvements shall be substantially completed on or before July 1, 2015. Provided, that the Owner shall have such additional time to complete the Improvements as may be required in the event of “force majeure” if Owner is diligently and in good faith pursuing completion of the Improvements with its best efforts. For this purpose, “force majeure” shall mean any contingency or cause beyond the reasonable control of Owner including, without limitation, acts of God or public enemy, war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Owner), fires, explosions or floods, and strikes. Time is of the essence in the performance of obligations under this Section 2(b). (c) For purposes of this Section 2, the Improvements shall be deemed substantially completed on the date a Certificate of Occupancy is issued by the City. (d) Within 30 days after completion of the Improvements, the Owner shall certify in writing to the City the actual cost of construction of the Improvements and the actual cost of all fixed machinery, equipment and other tangible business personal property installed on the Property. Failure to provide the certification in a timely manner shall be considered an event of default under this Agreement. (e) The Parties agree and acknowledge that market conditions may necessitate a one-year delay in the initiation of construction of the Improvements. If the Owner deems it necessary, in its sole discretion, to delay the initiation of construction, it shall give written notice to the City no later than December 1, 2013 that it will delay construction. In the event that such notice is given, all deadlines and other dates in this Agreement shall be delayed by one year. The delayed dates that will result in this event are set forth in Exhibit D. 3. Completion of Improvements. The Owner covenants and agrees that it will diligently, in good faith, and in a good and workmanlike manner, use its best efforts to complete the Improvements as good and valuable consideration for this Agreement. Owner further covenants and agrees that all construction of the Improvements and the completed Improvements will be in accordance with all applicable federal, state and local laws and regulations, including, without limitation, the City’s comprehensive zoning ordinance. In further consideration for this Agreement, the Owner shall, at all times from and after the date a Certificate of Occupancy is issued until expiration of this Agreement, continuously operate and maintain the Property as a poultry processing facility. The Owner covenants and agrees to limit the use of the Property 116 consistent with the general purpose of encouraging development or redevelopment of the Zone during the term of this Agreement. The Owner covenants and agrees to, and covenants and agrees that the Improvements will, comply with the Guidelines. 4. Employment Created by Improvements. (a) The Owner agrees and covenants to employ at the Property, at all times, not less than the number of full-time employees (“FTEs”) set forth below: DURING THE YEAR 2016 2017 - 2023 Minimum Required FTEs 400 900 (b) The Owner shall provide to the City annual manpower reports (in a form furnished or approved by the City) within 60 days following the end of each calendar year. In such reports, the Owner shall certify the lowest number of full-time employment positions maintained by the Owner at the Property at any time during the previous year. Failure by the Owner to provide such reports to the City shall be considered an event of default under this Agreement. (c) Failure by the Owner to provide the minimum FTE jobs at the Property at all times during the relevant year shown on the above schedule shall be considered an event of default under this Agreement. 5. Business Personal Property as a Result of Improvements. (a) The Owner agrees and covenants that the Property shall contain, at all times after the date of completion, taxable personal business property and equipment (excluding inventory and supplies), with an assessed value of not less than $72,000,000. (b) The Owner shall certify to the City a statement of the value of taxable personal business property and equipment located on the Property as of the last day of every calendar year for the term of this Agreement. (c) The City shall have the option of conducting an appraisal by an appraiser acceptable to the City to verify the value of said property and equipment. If the value determined by said appraiser is 125% or more of the value certified by the Owner, then the Owner shall bear the cost of the appraisal; otherwise the cost shall be paid by the City. (d) The taxable value shall be determined on a uniform and equal basis for assessment by the methods used by the Anderson County Appraisal District. (e) Failure by the Owner to meet the requirements of subsections (a) and (b) of this section shall be considered an event of default under this Agreement. 117 6. Termination. (a) The term of this Agreement shall commence on the date all parties have executed the Agreement and shall continue until terminated pursuant to this section or until the Agreement expires pursuant to the terms of Section 11. (b) This Agreement may be terminated, using the procedures set forth in subsection (c), at the election of the City if: (c) (i) The Improvements have not been timely completed in accordance with the provisions of this Agreement; (ii) The Owner allows its ad valorem taxes or other fees or assessments owed to the City to become delinquent; or (iii) The Owner breaches any of the terms and conditions of this Agreement, including, without limitation, the default provisions of Sections 2, 4 and 5. Such termination shall not occur until: (i) the City has given the Owner written notice of such default; (ii) the Owner has not cured such default within 30 days of said written notice; provided, however, the time to cure shall be extended to not more than 90 days if such default cannot be cured by the payment of money and cannot with due diligence be cured within 30 days due to causes beyond the control of the Owner. (d) This Agreement and any and all rights of the Owner hereunder shall, at the option of the City, be immediately and automatically terminated, without further notice, upon the occurrence of any of the events of default listed below: (i) After issuance of a Certificate of Occupancy for the Improvements, Owner fails to occupy and operate the Property in the normal course of its business as a hatchery facility for more than 30 consecutive days (except for temporary closures due to fire or other casualty); (ii) Insolvency of the Owner; (iii) The institution of any proceeding or arrangement by or against the Owner relating to or in the nature of a bankruptcy, insolvency, or assignment for the benefit of creditors, including, but not limited to, the filing by or against the Owner of a voluntary or involuntary petition in bankruptcy, which proceeding or arrangement is consented to by the Owner or is not dismissed or discontinued 118 within 30 days after the institution of such proceeding or arrangement; (iv) The Owner makes an assignment of its assets for the benefit of creditors; (v) A receiver, trustee in bankruptcy, or similar officer is appointed to take control of all or a substantial part of the Owner’s property; (vi) The Owner is adjudicated a bankrupt; or (vii) Owner defaults under its Incentive Performance Agreement with Palestine Economic Development Corporation. (e) The Parties may terminate this Agreement and any and all rights and obligations under this Agreement by mutual written consent in the same manner that this Agreement was approved and executed. (f) Upon the termination of this Agreement, all obligations of the City and Owner, together with all rights and privileges granted to the Owner under this Agreement shall immediately cease and terminate, except for any obligations of Owner that survive termination as provided in Section 18(h) of this Agreement. If this Agreement is terminated pursuant to the provisions of Section 6(b) or 6(d) of this Agreement, then, in accordance with Texas Tax Code Section 312.205, all taxes which otherwise would have been paid to the City without the benefit of abatement (without the addition of penalty; but with interest charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) will become a debt to the City and shall be due, owing and paid by Owner to the City within 60 days after the termination of this Agreement. The City shall have all remedies for the collection of the recaptured tax revenue as provided generally in the Tax Code for the collection of the delinquent property taxes. Upon termination of this Agreement, the City shall have no further obligation to the Owner. 7. Representations of the City. The City represents and warrants that the Property does not include any property that is owned by a member of its council or boards, agencies, commissions, or other governmental bodies approving, or having responsibility for the approval of this Agreement. 8. No Assignment. This Agreement may not be assigned by the Owner unless written permission is first granted by the City, which permission shall not be unreasonably withheld; provided, however, Owner may assign all of it rights under this Agreement to an affiliated Texas entity formed by the Owner for the purpose of constructing, owning and operating the Property. Any such assignment shall be writing; shall be signed by Owner and the assignee; and shall include a covenant by the assignee to assume and perform all of the obligations of Owner under this Agreement. No assignment of this Agreement shall release the Owner from its obligations under this Agreement. A copy of any such assignment shall be promptly provided to the City. No assignment shall be approved if the assignor or assignee is indebted to the City for delinquent ad valorem taxes or other obligations. If this Agreement is 119 assigned pursuant to the terms of this Section 8, the terms and conditions of this Agreement are binding upon the successors and assigns of the Parties hereto. 9. Indemnification of the City. It is understood and agreed that the Owner, in performing its obligations hereunder, is acting independently, and the City assumes no responsibilities or liabilities in connection therewith to third parties. The Owner covenants and agrees that the City (including its officials, agents, and employees) shall have no liability to the Owner or to any third party for, and that the Owner shall indemnify, defend, and hold harmless the City (including its officials, agents, attorneys, and employees) from and against, any and all losses, damages, suits, claims, liabilities, and expenses (including reasonable attorney’s fees and court costs) incurred as a result of, arising out of, or related to, either directly or indirectly, the following: acts or omissions of the Owner (including its affiliates, directors, officers, agents, contractors, and employees); the construction, maintenance, or operation of the Improvements; the Owner’s breach of, or failure to comply with, any provision of this Agreement; or otherwise from the relationship and transactions contemplated by this Agreement. The obligations set forth in this Section 9 shall survive the termination of this Agreement. 10. Inspection. The Owner further agrees that the City, its agents, and employees shall have the right to enter upon the Property at any reasonable time, after reasonable written notice to Owner, to inspect the Improvements in order to determine whether the construction of the Improvements is in accordance with this Agreement and all applicable federal, state, and local laws, ordinances, and regulations or valid waiver thereof. If the City determines that a violation of a federal, state, or local laws, ordinances, or regulations exists on the Property, the City may, in addition to any other authorized enforcement action, provide the Owner written notice of such violation. For the purposes of this Agreement, the Owner shall have ten days from the date of notice to cure or remedy such violation; provided, if the violation is of such a nature that it cannot be cured within ten days, then Owner shall have a reasonable time (not to exceed 60 days) to cure such violation. If the Owner fails or refuses to cure or remedy the violation within the applicable cure period, the Owner is subject to the forfeiture, at the discretion of the City, of any right to any tax abatement for a portion of the period or the entire period covered by this Tax Abatement Agreement. 11. Abatement. (a) Subject to the terms and conditions of this Agreement and subject to the rights of holders of any outstanding bonds of the City, a portion of ad valorem property taxes from the Property otherwise owed to the City shall be abated as herein provided. The City hereby acknowledges that it is not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. (b) Subject to the terms of this Agreement and all applicable state and local regulations, the abatement for each year listed below shall be an amount equal to the product of (i) the percentage corresponding to the relevant year multiplied by (ii) the increased value of the Property resulting from the Improvements over the fully appraised fair market value of the Property (as determined by the Anderson County Appraisal District, and in no event less than 120 $468,270.00) in the year in which this Agreement is executed. The applicable percentages of abatement are as follows: YEAR 2015 2016 2017 2018 2019 2020 2021 2022 90% abatement 90% abatement 90% abatement 90% abatement 90% abatement 90% abatement 85% abatement 80% abatement (c) This abatement shall be for 8 years beginning January 1, 2015. In no event shall the abatement continue after December 31, 2022. (d) To the extent this abatement applies to tangible personal property, the City shall abate, according to the above schedule, the value of tangible personal property located on the Property and used in the manufacturing process in each year covered by this Agreement. The said tangible personal property shall be included in the definition of “Improvements” for purposes of this Agreement. Provided, however, the abatement shall not apply to any tangible personal property that was located on the Property on the date of this Agreement, or to inventory or supplies. (e) The parties acknowledge that as of the signing of this agreement, the property is not within the city limits of the City, but is within the extraterritorial jurisdiction of the City, and is therefore not currently subject to the ad valorem taxes that would otherwise be abated by the terms of this agreement. Pursuant to Section 312.204(c) of the Texas Tax Code, if the City annexes the property before December 31, 2022, the ad valorem taxes that would be applicable from the date of annexation forward will be subject to abatement under the terms of this agreement through December 31, 2022. 12. Application for Abatement. The Owner agrees that the application for tax abatement, attached hereto as Exhibit “C,” is a part of this Agreement. The Owner represents and warrants that the information provided in that application is true and correct and that any materially false or misleading information that is provided to the taxing jurisdiction may be grounds for termination of the Agreement and liability to the City for recovery of abated taxes. 13. Agricultural Land. It is understood and agreed by the City and the Owner that if the Property has been designated and taxed as agricultural land, pursuant to Texas Tax Code Chapter 23, Subchapter C, then no abatement shall be granted until Owner has removed the agricultural use designation and paid all taxes due pursuant to Texas Tax Code Section 23.55 (rollback taxes). For purposes of Section 11(b) of this Agreement, the value of the Property shall not be reduced by virtue of any otherwise applicable agricultural, open space or other special use valuation or exemption. 121 14. Authorization. (a) The City Council at its council meeting on the 22nd day of April, 2013, authorized and approved this Agreement and authorized the City Manager to execute this Agreement on behalf of the City. (b) This Agreement is entered into by the Owner pursuant to authority granted by its Manager and/or Members by resolution on the ____ day of __________, 2013, whereby the undersigned representative of Owner was authorized to execute this Agreement on behalf of the Owner. 15. No Conflict. The Owner hereby represents and warrants that neither the execution and delivery of this Agreement, nor the compliance with any provisions hereof, (a) requires any consent, approval, authorization, permit of registration, declaration, or filing with, or notification to, any other governmental entity; (b) violates or conflicts with the organizational documents of the Owner; (c) violates or conflicts with any statute, regulation, order, writ, injunction, decree, or law applicable to the Owner; or (d) violates or conflicts with any other agreements to which the Owner is a party. The Owner has the lawful right to enter into and perform this Agreement without violating the rights of any third parties. 16. Enforceability. When executed and delivered, this Agreement shall constitute a valid and binding agreement between the Parties enforceable against each Party in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, or other similar laws affecting creditor’s rights generally and by general equitable principles. 17. Certification of Compliance. The Owner covenants and agrees to certify each year (on the annual anniversary of this Agreement) to the City that the Owner is in compliance with each of the terms and provisions of this Agreement. The certificate shall be signed by an officer of the Owner and shall be in a form furnished or approved by the City. The Owner further agrees and acknowledges that it is the Owner’s sole responsibility to timely file any required annual exemption application for tax abatement with the appraisal district. 18. General Provisions. (a) Attorney’s Fees. If any legal proceeding is necessary to enforce the terms of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and other costs in addition to any other relief to which that Party may be entitled. (b) Notice. Any notice required or permitted to be given or delivered hereunder shall be deemed received by the party to whom it is given three business days after it is sent by United States mail, postage prepaid, certified mail, return receipt requested, addressed to the party at the address set forth below or on the day actually received if sent by courier or otherwise hand delivered. 122 If intended for the City: City of Palestine Attn: Mike Ohrt City Manager, City of Palestine 504 N. Queen St. Palestine, Texas Phone: 903-731-8415 If intended for the Owner: Sanderson Farms, Inc. Attn: Bob “Pic” Billingsley 127 Flynt Road P. O. Box 988 Laurel, Mississippi 39441 Phone: 601-649-4030 (c) Integration. The Parties acknowledge and agree that this Agreement is the complete and exclusive statement of the mutual understanding of the Parties with respect to the subject matter of this Agreement and that it supersedes and cancels all previous written and oral agreements and communications relating to the subject matter of this Agreement. There are no verbal agreements between the Parties. (d) Governing Law; Venue. The parties acknowledge that this agreement has been made and is performable in Palestine, Anderson County, Texas and agree that it shall be construed pursuant to the laws of the State of Texas, without reference to principles of conflicts of law of Texas or any other jurisdiction. For any actions arising under, or related to, this agreement, the parties agree that exclusive venue for such actions shall be in the state district courts sitting in Anderson County, Texas. (e) Amendments. The City, pursuant to Texas Tax Code §312.205(a)(7), may cancel or modify this Agreement if the Owner fails to comply with the terms of this Agreement. At any time prior to expiration of this Agreement, this Agreement may be modified by the Parties to include other provisions that could have been included in the original agreement or to delete provisions that were not necessary to the original agreement. The modification shall be made by the same procedure by which the original agreement was approved and executed. Provided, however, in no event may the term of this Agreement be modified to extend beyond 10 years from and after the date of this Agreement. Any modification of this Agreement shall be in writing. (f) Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and 123 enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. (g) Nonwaiver. The Parties agree that a waiver of a breach or default under this Agreement shall not constitute a waiver of any subsequent breach or default. The Parties also agree that a failure to exercise, or a delay in exercising, any right under this Agreement on the part of either Party shall not operate as a waiver of such right. (h) Survival. Notwithstanding the expiration or termination of this Agreement, the Parties acknowledge and agree that any of the representations, warranties, covenants, and any other rights and obligations, which by their nature are intended to survive such expiration or termination, shall survive including, but not limited to, the provisions of Sections 6, 9, and 18. (i) Counterparts. This Agreement may be executed in counterparts. Each of the counterparts shall be deemed an original instrument, but all of the counterparts shall constitute one and the same instrument. (j) No Third Party Beneficiaries. This Agreement is not intended to confer upon any person, individual, entity, or association other than the Parties any rights or remedies hereunder. (k) Confidentiality. Any information in the custody of the City, whether provided to the City by the Owner or otherwise acquired by the City, is not confidential and is subject to public disclosure pursuant to Texas Tax Code §312.003. The Owner hereby waives any and all rights to the confidentiality of any information regarding the Owner, the Property, or the Improvements in the City’s custody. (l) Tax Abatement Registry. The Chief Appraiser of Anderson County Appraisal District shall notify the Comptroller of Public Accounts of this Tax Abatement Agreement. WITNESS OUR HANDS this ____ day of __________, 2013, in Palestine, Texas. CITY OF PALESTINE, TEXAS By: _____________________________________________ City Manager of the City of Palestine 124 Sanderson Farms, Inc. By: _____________________________________________ , Director of Engineering and Development ATTACHMENTS Exhibit A – property description Exhibit B – map of property Exhibit C – application of tax abatement from property owner 1 Exhibit D – delayed dates 1 Exhibit C should contain a description of the kind, number, and location of all proposed improvements to the Property. 125 Exhibit D Deadline Substantial completion of Improvements - §2(b) Minimum of 50 FTEs - §4(a) Minimum of 60 FTEs - §4(a) 90% Abatement - §11(b) 85% Abatement - §11(b) 80% Abatement - §11(b) Term - §11(c) Term - §11(c) Date in Agreement July 1, 2015 Revised Date if notice given July 1, 2016 During 2016 During 2017 - 2023 2015 – 2020 2021 2022 beginning January 1, 2015 not after December 31, 2022 During 2017 During 2018 – 2024 2016 – 2021 2022 2023 beginning January 1, 2016 not after December 31, 2023 126 127 RESOLUTION APPROVING EXPENDITURE TO ASSIST IN RELIEF EFFORTS FOR CITY OF WEST, TEXAS WHEREAS, on April 17, 2013, a massive explosion at the plant of the West Fertilizer Company plant in West, Texas resulted in approximately 15 deaths, hundreds of injuries, extensive property damage; and WHEREAS, Section 418.002 of the Texas Government Code provides for the coordination of activities relating to disaster response and recovery by agencies and officers of this state, and similar activities in which the state’s political subdivisions may participate; WHEREAS, Chapter 418 also empowers the Governor to declare a state of disaster is the governor finds that a disaster has occurred; and WHEREAS, Governor Rick Perry, on April 18, 2013, declared a state of disaster for McLennan County; and WHEREAS, The City Council finds that the provision of assistance to the authorities in West, Texas, is for the direct accomplishment of a legitimate public and municipal purpose. BE IT THEREFORE RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALESTINE, TEXAS, AS FOLLOWS: I. That the City of Palestine, by and through its City Council, authorizes the expenditure of no more than $5,000 as set forth in this resolution. II. That the City Manager of the City of Palestine is hereby directed to remit an amount determined to be consistent with the purposes set forth in the findings of this resolution to the City of West or other appropriate governmental or non-profit organization. III. That the City Manager is directed to require appropriate assurances from the recipient of the funding to ensure that the expenditure is used for purposes consistent with the Council’s intentions as set forth in this resolution. 128 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palestine on May 13, 2011. _________________________________ Bob Herrington, Mayor ATTEST: APPROVED AS TO FORM: _____________________________________ Teresa Herrera, Interim City Secretary _________________________________ Ronald Stutes, City Attorney 129
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