COUNTY OF DALLASICOUNTY OF KAUFMAN CITY OF SEAGOVILLE CITY COUNCIL MINUTES  CITY OF SEAGOVILLE  The City Council of the City of Seagoville met in a Regular Meeting on Thursday, July 15, 2010 beginning at 7:30 p.m. in the Council Chambers of City Hall, 702 N. Highway 175, Seagoville, Texas, with the following members present:  Mayor Mayor Pro Tem Council Member Council Member Council Member Council Member None  Sidney M. Sexton, Jr. Brenda Thompson Harold Magill Lee Landess Carl Polnac Peggy Day  The following Council Members were absent: The following City staff members were present:  City Manager City Attorney SEDC President and CEO City Secretary  Denny' Wheat Bob Hager Bekki Roberts Sheila Martin  Mayor Sexton called the meeting to order at 7:32 p.m. and delivered the  invocation. The City Council led the Pledge of Allegiance.  PRESENTATION/PROCLAMATIONIS)  Mayor Sexton read a Proclamation recognizing July as Parks and Recreation  Month  CONSENT AGENDA Meeting  1. Consider approval of the minutes of the July 1, 2010 Regular City Council  Motion: Harold Magill made a MOTION Carl Polnac SECONDED to approve,  the Consent Agenda as presented.  VOTE: 5- Ayes  O-Nays    City Council Regular Meeting Minutes  July 15, 2010 Page 2 of3  ITEMS FOR INDIVIDUAL CONSIDERATION:  PUBLIC HEARINGS None Were Held ACTION ITEMS  2. Consider Ordinance No. 10-10 Abandoning a 20 Foot Water Line  Easement Located at 1106 N. Highway 175 approve Ordinance No. 10-10 as presented.  Motion: Brenda Thompson made a MOTION - Peggy Day SECONDED to  VOTE: 5- Ayes  O-Nays  3. Consider on the First Reading Resolution No. 27-10 Ratifying an SEDC Project Agreement with SAI KESAV, INC (Ravi Kumar Gadde), Seagoville Motion: Peggy Day MOTIONED to postpone Resolution No. 27-10 until August 19, 2010. Lee Landess SECONDED the Postponement. Carl Polnac inquired ifthe SEDC attorney had approved this agreement? Bekki Roberts, SEDC President and CEO responded in the affirmative. Harold Magill stated the Council wanted to see the pertormance requirements Carl Polnac stated since the agreement has been reviewed and approved by the SEDC and the SEDC Attorney, he would prefer to see approval of the City Attorney Bob Hager stated Council would need to resolve the MOTION on the floor to postpone the First Reading of Resolution No. 27-10 VOTE: 4- Ayes (Thompson, Magill, Landess, Day)  Food Mart for Parking Lot Improvements  Discussion:  for the agreement.  Resolution put to a vote.  1-Nay (Polnac)  Following the vote:  -Harold Magill stated in the future documents such as Peggy Day's memo and associated documents be submitted to the City Secretary's Office for inclusion in the Friday City Council Agenda Packet to allow Council adequate time to  review them.    City Council Regular Meeting Minutes  July 15, 2010 Page 3of3  4. Consider Appointments to Boards and Commissions- Re-appointing Mildred Thompson's re-appointment to the Board of Adjustment  by Minute Entry.  Motion: Harold Magill made a MOTION Brenda Thompson SECONDED to  approve Mildred Thompson's re-appointment.  VOTE: 5- Ayes CITIZEN COMMENTS  O-Nays  Mike Cheves of Kat Teams a division of Inkairos Group, (currently headquartered at the) Best Western Motel 1910 Hwy 175 Seagoville, Texas. Mr. Cheves gave an overview of the Texas Back-to-Work Program which offers up to $2,000 in  wage subsidies for hiring and retaining qualified job seekers.  FUTURE AGENDA ITEMS  5. Lee Landess requested an item discussing the City Manager's performance in Executive Session at the next scheduled City Council Meeting. Mr. Landess requested the City Attorney be present for the Executive Session. Brenda Thompson requested an "after event" report on the Patriotic Festival to  include revenue and expenditures. No Executive Session was Scheduled  EXECUTIVE SESSION  ADJOURN p.m.  Mayor Sexton adjourned the Council meeting at 8:08 Approved this the 5!h day of August, 2010. AAtg Mayor Sidney M. Sexton, Jr.  TEXAS  ATTEST:  Martin, City Secretary  W    Section 4A and 4B Sales Tax Riley Fletcher Basic Municipal Law Seminar Lubbock, Texas February24, 2006  Can section 4A or 4B corporations grant or gift section 4A or 4B proceeds toa In2 2003, the Texas Legislature amended the Development Corporation Act of 1979 to address business incentives and performance agreements. Section.4A and 4B comporttonsmy.nor provide a direct incéntive or. make expenditures on béhalf ofa business enterprise unless the corporation enters into a performance agreement with the business enterprise The pertormance: agreement, at a minimum must: providé. for Aschedilcbfaddition.al payrollorj jobs to. be created or retained' and the capital investment to be made as, consideration for any- incentiyes. Further the agreement must. specify the_terms for any repayment should the business failto meet the performance. requirements specified- int the agreement. Can section 4A and 4B corporations hire an independent third party to Section 4A and 4B corporations may hire a third party for the purposes of conducting business recruitment or development.: 56 Nonetheless, thé corporation must enter into a written contract approved by the corporation's board of directors in connection with the payment of a commission fee, or thing of value to a broker, agent, or third party, who is involved in business recruitment or development, 57 This requirement does not apply tou the business récruitmentror development activities conducted by tbe executive director or other employèes of the section 4A or 4B-comporation." Should the corporation hire a third party for the purposes of business recruitment or development without a written contract approved by the board, the corporation could be liable to the State of Texas for a civil penalty in an amount not to exceed $10,000.9 Further, the Texas Attorney General's office could bring an action to recover the penalty in Travis County District Court or the district court int the county in which the violation occurred.60  business entity without a performance agreement?  '. -  conduct business recruitment or development?  TEX. REV. CIV.STAT. ANN.art. 5190.6,$40(a). V5s TEX. REV. CIV.STAT. ANN. art. 5190.6, 8 40(b). TEX REV. Cv. STAT. ANN.art. 5190.6, $41(a)-(d). TEX. REV. CIV.STAT. ANN.art. 5190.6,541(b). TEX REV. CIV.STAT. ANN.art. 5190.6,$41(a). TEx. REV. CIV.STAT., AMNar.51906,$410. TEX. REV. CIV.STAT. ANN.art. 5190.6, $41(d).  Page 12of35    Action Item #3 Regular Council Meeting on July 15,2010  Agreement with SAI Keshave, Inc. aka Sunny Sakaria- Seagoville Food Mart) Mr. Mayor,Imove to Postpone Definitely this motion until our August 19 meeting to allow the City Attorney to give me (us) some guidance to a statement relative to this Exhibit A of this agenda item "Project Agreement, , the "Witnesseth" section third paragraph reads, "Whereas, the SEDC has determined that certain grants should be offered in order to develop property and create jobs referred to hercin." Although a grant is free money, SO to speak, there would seem to be ai need for some sort ofg guarantee that the grantee will perform, and int the "Project Agreemenl'Iseeno mention ofjobs to be created or any penalty for non-pertormance ofthis agreement. Under Tex. Rev. Civ. Stat. Ann. Art. 5190.6= =-40(b) (copy attached) the meaning seems to be that the Project Agreement - at ai minimum - must provide for a schedule of additional payroll orj jobs to be created or retained and for the capital investment to be made as consideration for any incentives (such as years of performance required ora diminishing rate of repayment if the business should fail or be sold to someone else between the next one and ten years, for example, since the grantee would not have had Iam requesting that we get attorney's opinion on the law mentioned. My beliefis that the taxpayers who approved the SEDC intended for the corporation to ensure that grantees  agenda that Idon'tunderstand, which is:  time to provide much employment or sales taxes).  return value in an enforceable manner.  REQEIVED BY. CITY OF SEAGOVILLE JUL15 2010 OIVEORETARYSOFROE