1. law, govt and politics

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: [email protected]
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
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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
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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.
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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
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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
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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
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$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.
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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.
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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
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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
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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.
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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
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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.
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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
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