This packet deals with loan information made to ANS Welding Supplies & Services (owners, Alvin and

Stephanie Welch) made by the Goliad Municipal Development District.

11/19/12 Loan application reviewed by MDD board. Address on application for the business given as
144 Market Street, Goliad, Texas 77963.
Board voted to approve loan.
12/18/12 Possible action to approve loan by Goliad City Council on agenda, however, agenda item
removed. Reason for removal: Goliad city attorney put forth a list of questions that she
felt ANS Welding needed to answer to clarify loan approval (see attached).
1/18/13 Illegal meeting held (violation of Texas Open Meeting Laws) between Larry Zermeno, City
Administrator, Hernan Jaso, Chairman of MDD, Terry Baiamonte, City Atty, and the Welches
to discuss loan application questions, (see 2/5/13 letter from Mrs. Welch to verify this meeting.
1/21/13 MDD meets again to discuss loan. Mr. Jaso highly recommended approval of this loan
(verification of this found in minutes of meeting and also on audio tape of meeting).
Motion made to approve loan with a 3% interest rate and a flat $50.00 late fee on payments.
Discussion also held on criteria for "forgivable" credits that were possible on loan.
1/21/13 Another illegal meeting held between the Welches, MDD member(s), and possibly city
administrator and city atty. (again see 2/5/13 letter from the Welches indicating loan
discussion was held after meeting closed and additional terms were reached), i
2/5/13 Loan approval on Goliad City Council agenda. Contract presented to council included terms
that had NOT been approved by MDD. i.e. 3% interest changed to 0%, $2,400 job credit
changed to $24,500 credit for same job description, (see copy of contract presented to council on
this date. Item tabled at council r/t one MDD board member's protest that a vote was about
to be taken on a contract that was NOT approved by MDD.
2/5/13 Date of Alvin & Stephanie Welch's letter that was sent to Goliad City Hall and MDD board.
Letter identifies open meeting law violations as outlined above, (see copy of letter). Mrs. Welch
states in letter that she & her husband met with the city administrator, the city atty, and Mr. Jaso
to draw the contract that was presented to council.
2/20/13 MDD meeting: Mrs. Welch spoke again verifying 144 Market Street, Goliad to be qualifying
address for the business. Loan approved.
3/5/13 City Council meeting with approval of loan.
3/13/15 City of Goliad issued check to ANS Welding for $32,000. Check cashed on 3A5/13.
4/16/13 Public request submitted asking what steps had been taken by either the city of Goliad or it's
MDD board to ensure the Market Street address as the place of business and to recover the
$32,000 loan amount if business not in operation at a qualifying address. (144 Market St. still
had a "for rent" sign on windows and NO business in operation). Public request returned to
requestor on 4/26/13 (see copy enclosed).
4/15/13 Date on letter written by ANS Welding stating they will contact the owners of the 144 Market St.
location "in the event ANS is ready to move forward in needing a store location", (see copy of
letter).
5/20/13 MDD board took action asking city atty. To write letter of demand to ANS Welding (see copy of
MDD minutes).
6/17/13 MDD board asked again about letter of demand (no copy of minutes avail, as of this date).
Goliad Municipal Development District
Application
Goliad Economic Development
P.O. Box 939
Goliad, Texas 77963
361-645-3454, Fax: 361-645-8315
3
J
Goliad Municipal Development District
Loan/Grant Application
Name
Alvin & Stephanie Welch
Companv Name ANS Welding Supplies & Services
Address 249 Dondo Lane Goliad. Texas 77963
Phone 318-581-1981
Loan Request Amount $ 32.000.00
Name of Proposed Business ANS Weldina Suoolies & Services
Business Owner (1) Alvin Welch
Business Address 144 Market Street Goliad. Texas 77963
Business Phone 361-648-0354 (Fax)
Total Capital Investment in Business $ 15.500.00
Business Owner (2) Stephanie Welch
Business Phone 361-648-0354 (Fax)
Total Capital Investment in Business $ 15.500.00
Business Owner 13V _ .
Business Address
Business Phone (Fax)
Total Capital Investment in Business $
Business Owner (4)
Business Address
Business Phone (Tax)
Total Capital Investment in Business $ __
Goliad Municipal Development District Loan Application
Business Address 144 Market Street Goliad. Texas 77963
(If there are additional principals involved, please use the back of this sheet to document necessary information.)
Type of Business: Welding & Industrial Supplies Store. Mobile Unit. Custom Beds
How long has the business been in operation
How long has the business been in operation in Goliad
If the business has been in operation elsewhere, state where and for how long_
State company history and general background information (use additional attachments if
necessary) Please refer to the ANS Welding Supplies & Services' Business Plan_
Number of current full time employees 2
Number of current part time employees 0
How many hours do the fall time employee's work 12 hours a day 6 days a week _
How many hours do the part time employees work 0
How many hours per week does the business owner(s) spend working at the business site?
= 12 hours a day 6-7 days a week
Does the business ownerfs) have sources of income other than this business? Yes. Alvin
Welch will be working for the first fall calendar year of 2013 through COKE Construction.
Goliad Municipal Development District Loan Application
Proposed use of loan/grant funds: Forklift Office Equipment & Supplies. Fixtures, and
Remodeling of the store front-
List meeting dates with Small Business Development Center: November 19. 2012
What is the breakeven point for your business: Refer to the Pro Formas in the Business Plan
Are you meeting or exceeding that breakeven point: Yes_
What permits will be required for this project: Occupancy; Fire Marshal and Texas Sales &
Used Tax Permit
Have you met with the appropriate parties
Why is this business seeking funds from the Goliad Municipal Development District?
ANS Welding Supplies and Services is seeking a $32.000 forgivable loan from the Goliad MDD
Board for equipment, displays, fixtures, forklift. and building remodeling needs. ANSWelding
Supplies & Services
Describe the direct benefits of the proposed project to the Goliad area. (Including job creation.
sales tax revenue, property values, etc.)
ANS Welding Supplies & Services will bring more of the oilfield industry to Goliad, create sales
tax wealth for the City of Goliad, give residential customers and ranchers a local, small business
vendor, next dav delivery for parts and supplies, are interested in obtaining Citv andCounty
contracts for welding needs for equipment, will consider expanding opportunities (i.e. HVAC.
plumbing^ to provide supplies to those local residents and businesses in the area and amobile
Unit objective is to provide service and supply sales will also act as mobile advertisement fir
Goliad. Texas. ANS Welding Supplies & Services will be hiring and creating newjob
opportunities for atleast 10 new employees within the next 3 years.
If you are applying for grant funds, would you be interested in a low interest loan as an
alternative to your grant request: YES =
How many jobs would be created and when due in part of the funding assistance
Full time Positions Created by
Part Time Positions = 2 Created by
How many jobs will be retained due in part to this funding 4
Will the sales tax paid by the business increase as a result of the funding assistance
If ves. by how much % $ Please refer to ANS Welding Supplies & Services
Business Plan
Who
Signature
M * t S f i ^ . Date Submitted / A
J
Goliad Municipal Development District Loan Application
The next MDD meeting is scheduled for Monday, January 21
st
at 5:00.1
will be sending out the Agenda on Friday. Larry asked that i send thp
following information to you so you can be prepared to discuss this
and vote on it at the board meeting.
Regarding the ANS Welding Forgivable Loan, our City Attorney has
brought some points to our attention that need to be addressed.
1. Collateral: They said they are buying a forklift at
$14,500, office equipment at $8972 and fixtures at $6164.
The SBDC Summary of Findings states that collateral is
"not required for forgivable loan program". The MDD
forgivable loan guidelines provide:
" Liens or other collateralization will be placed on the
property during the course of the loan. In the event that
the project fails to meet its performance objectives in
terms of job creation or new sales tax revenue creation,
the note will become due on the apportioned amount
loaned and shall be repaid at a rate of principal plus
interest at a rate determined by the Board at the time the
contract is approved. The maximum amortization on any
such loan, once due shall be 60 months." She thinks we
need an evaluation of collateral as provided for in the SBDC
plan, and a correction in the summary of findings.
2. Interest Rates: Again, SBDC Summary of Findings states:
Interest Rates: "Not applicable for forgivable loans program".
As referenced above, the guidelines provide that in the event
of failure to perform, the note will be repaid at a rate of
principal plus interest, at a rate to be determined by
the Board. The Board needs to make that determination and
that statement in the Summary of Findings should be
corrected.
3. Sales tax on mobile sales: It appears that a part of this
plan is to sell supplies from a mobile unit outside the City,
[page 6 of the Business Plan] Will those sells from that mobile
unit carry Goliad city sales tax?
4. Zoning: I note that the plan provides for a fabrication
yard next to the retail sales, where they will be cutting,
fabricating and welding. Have you considered whether or not
this type business meets the current zoning for that area? Is
it industrial activity?
5. Yard signs: The marketing plan provides that they will
place 18"X24" yard signs along highway 59 and 183. This
sounds like they will be placed in the right of way. Not sure. I
suggest this be clarified as the City of Goliad does not want to
approve a plan that includes yard signs in the right of ways.
6. Clarify "new job": Under the guidelines for projects that
create new jobs, the board needs to verify whether or not the
business owners count under the "new jobs" criteria.
Historically, the owner, nor their family counted
when determining if and how long new jobs were created, and
in this situation with a husband and wife owners.
Tuesday, February 05,2013
To Whom It MayConcern:
On Monday, November 19,2012 ANS Wilding Supplies & Services was scheduled on the "Regular
Board Meeting" Agenda, At that day and time ANS Welding Supplies & Services presented ou r
Business Plan, vision, and ideas for a New Business to bring to the City of Goliad ANS Welding
Supplies & Services was set in motion and was approved by ALLgpard Member? of The Goliad
J^jaB^^QPlMatt P^sUOMPP. Jifi^ and was approved for the amount of $32,000 under
theGoliad MunicipalDevelopment District Operating Policies & Procedures Criteria for
Projects Receiving Support f Protectsthat create Mew lobs and/or Mew Sales Tax
Revenues!"Forgivable loan."
"Red Flags" were being brought to fee attention by the city attorney, Mrs. Terry Baiamonte, thus,
^ Baiamonte, Mf . t h e & Services, Alvin &
Stephanie Welch, To determine and acknowledge highlighted issues and to get a better
understanding of ANS Welding Supplies & Services plans, actions and to redefine in definition, and
correction of topics in error, and taking our company, ANS, back to the GMDD Board Members for
further action needed,
We all agreed to place our business back on schedule for Monday, January 21,2013, to justify, make
motion and discussion of items in front of the GMDD Board members. These topics were not
addressed at prier meeting on November 19,2012, in order to have an Economic Development
Project Agreement in compliance, These topics are as followed and listed below.
\tfr
respected amount of the toll loan to begiven.) (This item wasto discussion
and was address and corrected)
Interest Rates; Interest may be required in theevent of failure to perform.
contrary to SiDC Summary of Findinp Stating; Interest Rates: "Not Applicable
for forgivable loans program" (This item was In discussion addressed and
motioned and approved) (60 month terms, $50,00 latepayment amount, 3%
interest cm the principal of$32,000)
***"In the event that the project fails to meet its performance objectives in the terms of
fob creation or new sales tax revenue creation, the note will become due on the
apportioned amount loaned and shall he repaid at a rate of principal plus interest at a
rate determined bv the board at the time, t;he contract is approved. The maximum
amortization on anv such loan, once due shall be 60 months," (Default of Loan! ver the
"Operating Policies & Procedures Criteria" ***
Sales tax on mobilesales; Will those sells from mobile unit carry Goliad city
sales tax? (This itemwas left open and neededresearch on but was not in
need for a motion for approval just open for discussion; this discussion was
also addressed at theNovember 19,2012 meeting andwas also
answered,Furthermore in the "#S Protects that create Mew fobs and/or Sales
Tax Revenue created*,this paragraph does not stipulate Goliad Sales Tax nor
is State SalesTax it is referred as "New sales Tax Revenue" periodthe end, Ifs a
benefit for eveiyone thus including Goliad and State.
r ^
Zoning: Concerns rose todegree of fabrication that may occur. Location isin a 9 *
commercial zone but not Industrial. (Fabrication was going to be done not at fV^P
store location site,(this was alsostated in the November 19,2012 meeting C f ^ v '
andcorrected beforeGMDD Board Members andre- corrected to the ANS J
k
Business Plan), but outside of city limitsfabrication wonld take place.) (This ^
topic wasdiscussed andno need to motionjust neededclarification at the
January 21,2013 meeting for secondunderstanding,)
Yard signs? Needclarification or statement that advertising yard signs
mentioned in the marketing plan) will not be placed in the "right of way" (ANS
describedlocation and description of yard signs and redefined placement and
description in the re-advised business plan andANS alsowas to get
requirements and approval"Hanging TreeSign" from the City Of Goliadbefore
placing "yardsigns for advertisement.) (This item wasdiscussed and
understood and therewas not a need for motion,)
G
f a
Clarify "new jobs" Under the guidelinesfor projects that create new jobs, the
board needs to verify whether or not thebusiness owners or relatives count
under the "new jobs" Criteria, Historically, neither the owners, nor their
fatally counted when determining if and how long new Jobs were created, (For
new jobs created tor credit purposes, neither of the owners nor family
motioned and action was approved and topic wasseriously addressed.)
Other Errors ofTopics*,
Aa
%
3s
The terms for hiring in between new employees position if in the event an
employee was let go or quite at ANS.
(Neod to refer tack to tte January 21,2013 mhmtes. I am unrore to do the fact
L, 2013
' i r
"" ~ *4wks- 6wfcs'9wks to rehire an employee If in the event the job position
became available for replacement.
To bring further to the attention aswell, on January 21,2013 at The GMDD Meeting, on Agenda
item number IV, APPROVALof MINUTES FROM THE November 1% 2012 MEETING, motion was
taken and approved for those minutes. Also items above were discussed agreed upon and
approved, That means that the board cannot go back and change nor alter the terms in which were
approved for ANS Welding Supplies & Services, but can on the other hand, define and determine in
definition/detail of what #1, Projects that create New lobs and/or New Sales Tax Revenues.
means and gives terms upon to an extent without altering the Policies and Procedures Criteria with
our correct forum, not during or while after project has been approved, not once but three times,
tiNS Welding Supplies & Services is extremely dissatisfied and outraged for the behavior of GMDD
Hoard Members and member who spoke out at the City Council Meeting on February 5,2013, ANS
Welding Supplies & Services was humiliated and laughed at in front of, not only the City Council of
Goliad Board Members, but in front of the towns People of Goliad, This was very disturbing, We
have complied and met with every agreement possible even on terms that were not even set forth
in a meeting for approval/motioned for approval, but in
jponth starling|uie1 , A N S WeldingSupplies & Services is not
goingto comply with those terms, ANS Welding Supplies & Services feels that do to terms set forth
in the Criteria in which we first applied for and received approval for and have followed all
procedures and requirements is good enough, Since the issue of approval and disapproval was
mention at the city council meeting, we as ANS Welding Supplies & Services feel making an
obligation out of terms is not a good idea even though it benefited andfi^feedigeod/feetter'' on
books/records for the City of Goliad, thus for the City People of Goliad would see that we were not f .
just taking advantage of "tax dollars". This is absolutely absurd conduct and behavior and was very f^'
1
bJ^
y f o
unprofessional We feel that the GMDD BoardMembers) and Member have made our Business a
bad name in the City of Goliad ANS Welding Supplies & Services would like an apology by not only
G M D D B o a r d M e m b

r s
after further review, but by Adair Sutherland, for having and stated te -f
correct information causing ANS WeldingSupplies & Services to "LookBAD" in front of not only the G o f S ^T ^
City Council Members but the Goliad Towns People.
Inclosing, ANS Welding Supplies & Services has complied, met, and addresses every issue possible
sinceNovember 19,2012 meeting; regardless of others peoples lack ofknowledge of
understanding, I donot think that Mr. LarryZermeno, Goliad Finance Officer and actingfor City
Administrator along with the Chairman for GMDD Board, Mr. Hernan Jaso, and alsoMrs, Terry
Baiamonte,City Attorney,would not have place us on the Agenda for February 5,2013 City Council
Meeting if it was not presentable, approvedupon and passed from theGMDD Board Members, ANS
Welding Supplies &Services isat a loss for words.
Best Regards,
Alvin & Stephanie Welch
Owners
ANS Welding Supplies & Services
Goliad City Council Meeting
Tuesday December 18, 2012,6:30 pm
Goliad City Hall Council Chamber, 152 W End ST.
Goliad, Texas 77963
The Goliad City Council met at a Regular Meeting with the following members of the Council present or
absent as noted below:
Also in attendance were the following Staff from the City: Larry Zermeno, Interim City Administrator/
Finance Officer; Terry Baiamonti, City Attorney and Pam Long, City Secretary, individuals signing in at
the meeting were Stephanie Welch, Tana Sheppard, Kathy Arnold, Linda Powell, Roney Powell, Pat
Wright, David Wright and Diane McCord.
CALL TO ORDER
II. With a Quorum thus being established, Mayor Harvey called the meeting to order, the time
being 6:30 pm.
III. Mayor Harvey asked Councilman Zavesky to lead the Chamber in a brief invocation.
IV. Mayor Harvey led those in attendance in the Pledge of Allegiance and in the Pledge to the
Texas Flag.
V. CITIZENS COMMENTS - WO ACTION CAN BE TAKEN
Roney Powell, 212 East Garden St., addressed the Mayor and Council. Mr. Powell's main
concern is how the City Council is spending the tax payer's money. He feels that this is being
done frivolously. Mr. Powell mentioned two projects, signage and forgivable loans granted
from the Municipal Development District Board of Directors.
David Wright, Mission Villas. Mr. Wright conveyed his appreciation to Lindsey Young from the
Small Business Development Cooperation, and the City of Goliad staff, for ail of the help in his
project, no matter what the outcome is.
VI. CONSENT AGENDA
Items listed under the consent agenda are considered routine and are generally enacted in one
j motion. The exception to this rule is that a Council Member may request one or more items to
be removed from the consent agenda for a separate discussion and action.
Mayor lay Harvey Present
Councilman Alfred Perez Present
Councilwoman Vfcki Rubio Absent
Mayor Pro Tem Buddy Zavesky Present
Councilman Ed Carter Present
Councilman Lionel Garcia Present
A. Consent and approval of minutes from the November 20, 2012 and December 4, 2012
meetings.
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This item was taken off of the City Council agenda.
C Discussion and possible action to approve a plat application for the filing of a plat for
1.15 acres of lot 4 block no 7, range e. Farm lot 56 of the original town track, abstract
128 Goliad county, TX.
Councilman Zavesky made a Motion to approve a plat application as listed above.
Councilman Garcia seconded the Motion. The Motion carried.
D. Discussion and possible action authorizing the mayor to sign an interlocal agreement
with GISD for use of their fiber optic cable.
The City of Goliad uses the Goliad Independent School Districts fiber optic cable for the
radio read water meters that were recently installed. Councilman Zavesky made a
Motion to authorize the Mayor to sign this agreement. Councilman Carter seconded
the Motion. The Motion carried.
Ill* COUNCIL AND STAFF COMMENTS
COMMENTS may be MADE by COUNCIL or STAFF, BUT NO ACTION TAKEN on the FOLLOWING
TOPICS WITHOUT SPECIFIC NOTICE. THOSE ITEMS INCLUDE: EXPRESSIONS of THANKS,
CONGRATULATIONS or CONDOLENCE; INFORMATION on HOUDAY SCHEDULES; RECOGNITION of
PUBLIC OFFICIALS, EMPLOYEES or CITIZENS other than EMPLOYEES or OFFICIALS WHOSE STATUS
may be AFFECTED by the COUNCIL through ACTION; REMINDERS of COMMUNITY EVENTS or
ANNOUNCEMENTS INVOLVING an IMMINENT THREAT to the PUBLIC HEALTH and SAFETY of the
PEOPLE of the MUNICIPALITY.
Council and Mayor wished everyone a Merry Christmas.
The next City Council meeting will be January 8,2013.
X. ADJOURNMENT
With there being no further business, Councilman Zavesky made a Motion to adjourn the
meeting. The time was 7:20 pm
Respectfully Submitted,
Pam Long
Gty Secretary
City of Goliad
Approved on this 22
nd
day of January, 2013.
Jay Harvey, Mayor
Oty of Goliad, Texas
City of Goliad
Minutes of the Municipal Development District Board
REGULAR MEETING: 5:00 P.M. Monday, January 21,2013
GOLIAD CITY HALL, COUNCIL CHAMBERS 152 W. END STREET
Donna Cellini Present Ernest Alaniz Present
Mary Jane Martin Present Patricia 'Liz' Holsey Present
Adair Sutherland Absent . Luis Rodriguez Present
HernanJaso Present Becky Walker Present
Also in attendance were:
Larry Zermeno, Interim City Manager, Terry Baiamonte, City Attorney, Stephanie Welch, ANS Welding Supplies and
Services and Brenda Moses, Utility Billing Clerk
I. CALL TO ORDER: Hernan called the meeting to order at 5:07 PM
II. ESTABLISH QUORUM: Seven Members present established quorum.
III. PUBLIC COMMENT: Comments were deferred to items in agenda.
IV. APPROVAL of MINUTES FROM THE NOVEMBER 19, 2012 MEETING
Luis Rodriguez motioned to approve minutes as corrected, Liz Holsey seconded. Motion passed
It was noted that in Business Items section A., the sentence should state: They are requesting the
loan to be forgivable based on sales tax and creating new jobs. Also, the sentence that states that
Alvin is going to work fulltime for Coke, should read C.O.K.E.
V. ACCEPTANCE OF MONTHLY FINANCIAL REPORT
Donna Cellini motioned to approve. Becky Walker seconded. Motion passed
VI. WORKSHOP ITEMS
A. UPDATE ON TEXONIAN DEVELOPMENT, LLC.
Larry Zermeno stated that Texonian is moving on with their plans and that the contracts have
been signed. He stated that the City has decided that it would be in its best interest to ask
Texonian to oversize the sewer main that they will be installing, in hopes of benefiting future
development, in part because of the Villa's. The City did put a provision in the contract that
Texonian could be asked to oversize the sewer main. Those funds wouldn't necessarily come
out of MDD but would come out of the City's infrastructure funds. The incremental cost of
putting in the main will be a lot cheaper than increasing the size of it later. The question was
asked if Texonian had closed on a trucking company deal that had been mentioned. Mr
Zermeno stated that he did not know. He stated that they had gotten some temporary business
from a TXDOT contractor wanting to store supplies on the Texonian property. The question was
asked if Texonian has two years to start building on the sewer project. Larry stated that he
thinks that its two years. It was stated by several board members that they thought the project
would begin immediately and that Texonian shouldn't have asked for two years. It was stated
that the intention was to tie Texonian to David Wright and now because of Texonian, David
Wright isn't going to continue with his project and build his apartments.The Board expressed
dissatisfaction with the fact that Texonian was given funding and that the local person wasn't
given funding. They stated that the outcome of the Texonian contract was different than what
they had discussed as a Board. Mr Zermeno stated that both agreements were separate
agreements and that they weren't tied together. Board members stated that they wouldn't have
voted for the Texonian agreement if they had known that Texonian would have two years to
start the project. It was stated that David Wright wasn't given an independent agreement but
Mr Jaso stated that in fact Mr Wright was given an independent agreement. Mr Jaso stated that
Mr Wright made his own decision not to build the apartments. It was stated that the entire thing
was just a big mess and not at all what the Board had intended. It was stated that the Texonian
project is a reimbursement project and that they won't be given money until the infrastructure is
completed to the City's requirements. It was suggested that David Wright be revisited and asked
if there is any way that the Board could possibly help him. Mr Jaso stated that the Board needs
to revisit their guidelines and study more on the process of the loan agreements and that they
would do that in the very near future.
B. UPDATE ON MISSION VILLA'S PROJECT
Larry Zermeno reported that Mr David Wright had decided not to continue with his project. Larry
stated that he had sent Mr Wright and email asking him to confirm in writing that he wasn't going
to continue with the project. Bridgette had reported to Larry that Mr Wright had called her and
said that he wasn't going to continue with his project. Larry said that Mr Wright did reply by
email and say that he wasn't going forward with the project. Mr Jaso stated that he would like to
know the reason for Mr Wright not going forward with his project. The question was asked if the
Board could still approach Mr Wright and offer their help to him again. Mr Jaso said that it could
be done and he suggests that. Mr Jaso asked that Mr Zermeno get a concrete answer from Mr
Wright on why he isn't going forward with his project.
. BUSINESS ITEMS
/A?yfolSCUSSION, CONSIDERATION AND POSSBILE ACTION ON FORGIVABLE LOAN
( ^/ APPLI CATI ON FROM ANS WELDING SUPPLIES & SERVICES, ALVIN & STEPHANIE
WELCH
Mr Jaso stated that when the Board approved the application that they received a letter from
SBDC in Victoria stating that it was a good application and that everything looked great. He said
that when the Board approved the application that it went back to Bridgette and Larry to get the
contract prepared along withTerry Baiamonte, the City Attorney. In turn, Terry came up with
some questions that needed to be answered that the Board wasn't aware of. Mr Jaso assumed
that those questions had been answered before the application came to the Board for approval.
The decision was made not to take the application to Council before the questions had been
answered. Mr Jaso stated that he, Larry and Terry had decided to meet with the Welch's to get
the answers to the questions that were proposed. It was stated by Ms Welch that as long as
sales are made from the location inside the City that the sales tax goes to the City. The Board
discussed whether or not the taxes would go to the City even though the sale may be made in
another City. Terry stated that her concern while reviewing the application was collateral and
that SBDC had stated that the loan didn't require collateral which is contrary to the MDD rules.
The second concern was interest rate and that the Board should consider an interest rate. Terry
did think that the mobile unit should be addressed and the receipt of the sales tax on that mobile
unit's sales. The question was asked who was supposed to research if the City would receive
the sales tax from the mobile unit. Mr Jaso stated that the guidelines need to be reviewed. It
was also stated that a decision couldn't be made because of the lack of information from staff.
Larry stated that He believes because the applicant has established their home base in the City
that the City will receive the sales tax from that mobile unit's sales. Larry stated that he will
contact the Comptroller's office to find out who will receive the sales tax monies. Terry stated
that personal property was very had to collateralize and that she thought it was risky but it was
the Board's decision to take those personal items as collateral. The question was asked if the
collateral would be paid off. Ms Welch stated that the 32K they are asking for is actually for
shelving that is required to run their business. She stated that all of the items that they are using
for collateral will be paid in full. The question was asked why collateral would be required on a
forgivable loan. Terry stated that the collateral was needed in the case that the loan
requirements weren't met. It was stated that the loan was only forgivable in the case that certain
guidelines were met. The statement was made that with the business that ANS plans to do
would be okay in the Commercial Zone. The statement was made that the yard signs proposed
were removed from the plan due to City Ordinance banning yard signs. Terry stated that the
Board needed to set the criteria for the ANS loan now. She suggested that the Board revisit
their By Laws and loan criteria at a future meeting. It was suggested that the interest rate on the
loan be at least 3% and a flat fee be charged for being late. The length of the loan would be
maximum 60 months per Board regulations. Ms Welch stated that the income projections for the
months of January and February should be removed from the schedule because they weren't
able to start their business in January. The income projections for 3 years were discussed and
that the initial income estimate would be exceeded. The amount of sales tax that the City may
receive from their projected sales was discussed. It was discussed that City Staff would be
keeping up with the jobs created and the loan payments etc. Ms Welch stated that the criteria
state that ANS wouldn't start paying loan payments until they don't meet the criteria. Terry
stated that the Board doesn't have to wait until ANS defaults in order to start collecting
payments,
A motion was made by Liz Holsey to charge 3% simple interest on the ANS Welding Loan and
to charge a flat rate of $50.00 late fee after 30 days late and each time they are late. Seconded
by Mary Jane Martin. Motion Passed.
There was discussion over whether or not ANS would get credit for the two employees every
year or if they would have to hire new employees in order to get a second credit. Terry stated
that it could be put in the contract that the credits are based on sales tax and on all jobs
maintained for 3 years. It could also be put in the contract that MDD would never owe ANS
money. The yard sign usage was revisited and it was suggested that they get permission to
place the signs in the right of way outside the City limits. It was suggested that each full time
Job maintained for a year would get the one time $2500.00 credit. Those jobs wouldn't get
credit again. They would have to create more jobs in order to get another credit. It was
discussed that if ANS creates $10,000.00 in sales tax revenue for the City (2%) annually, that
they will receive $2,500.00 credit toward the loan after maintained for 3 years, at the end of the
loan.
VIII. ANNOUNCEMENTS
None
fX. ADJOURN Donna Cellini made the motion to adjourn at 6:52 PM. Mary Jane Martin seconded.
As approved this day of , 2013
Hernan J aso, President ATTEST: Donna Cellini, Secretary
MINUTES
Goliad City Council Meeting
Tuesday, February 5,2033
Goliad City Council Chamber, 152 W End St
Goliad, Texas 77963
The Goliad city Council met at a Regular Meeting with the following members of the Council present or
absent as noted below:
Also in attendance were the following City of Goliad Staff; Interim City Administrator, Larry Zermeno;
City Attorney, Terry Baiamonte; City Secretary, Pam Long; and Utility Billing Brenda Moses.
Those attending from the general public were; Roney Powell, Unda Powell, Ramiro Rubio, Alvin Welch,
Stephanie Welch, Ernest Aianiz, Donna Celini, Mary Jane Martin, Alonzo Morales, William Zermeno,
Hernan Jaso, David Bowman, Emilio Vargas, Liz Holsey, Werger Dohman, Kathy Arnold, Mary Holcomb,
David Johnson, Kathy Johnson, and Michael Martinez.
I. CALLTOQRDER
II. With a quorum thus being established Mayor Pro Tem Zavesky called the meeting to order. The
time was 6:30 PM
III* Mayor Pro Tem Zavesky asked Councilman Carter to give a brief invocation.
IV. The Pledge of Allegiance and the Pledge to the Texas Flag was led by Mayor Pro Tem Zavesky.
The following individuals spoke to Council in support of Larry Zermeno being named the City of
Goliad's City Administrator - Ramiro Rubio, Ernest Aianiz, Hernan Jaso, and Emilio Vargas.
Uz Holsey will speak when agenda item D is addressed.
David Bowman gave an update to Council concerning the Habitat for Humanity house that is
planned to be built in Goliad.
Roney Powel expressed his concern to Council on the Municipal Development Board making a
recommendation to Council in allowing a 100% forgivable loan to ANS Welding Services.
VI. WORKSHOP ITEMS
A. ENTRANCE AND WAY FINDING SIGNAGE SUMMARY AND UPDATE
Interim City Administrator Zermeno presented an update to Council on the status of the
signage. Councilman Carter stated that he felt that this was entirely too much money to spend
on signs. Council voted for the funding of the signs in November of 2012.
Mayor Jay Harvey Absent
Councilman Alfred Perez Present
Councilwoman Vicki Rubio Present
Mayor Pro Tem Buddy Zavesky Present
Councilman Ed Carter Present
Councilman Lionel Garcia Present
V. CITIZENS COMMENT? - NO ACTION CAN WE TAK^N
VII. BUSINESS ITEMS
A. DISCUSSION AND POSSIBLE ACTION TO APPROVE AN EASEMENT ALLOWING THE COUNTY
TO PLACE AN HVAC SYSTEM ON CITY PROPERY, COMMERCIAL STREET, SURVEY G, LOT 4 BLOCK
7.
Mr. Zermeno explained to Council that the new addition to the County Library would require
putting the HVAC system on the City right of way. Counciiwoman Rubio made a Motion to
approve this easement. Councilman Garcia seconded the Motion. The Motion carried.
B. DISCUSSION AND POSSIBLE ACTION TO APPROVE THE OAK TREE PROGRAM PROVIDING AN
OAK TREE FOR RESIDENTS OF A NEW HOME CONSTRUCTION
The City Secretary gave Council information on this project. Oak trees for $30.00 will be
purchased to present to new construction home owners in the City. A planting guide will also
be included with the tree. The Council feels that this is a good gesture to residents constructing
new homes. Councilman Carter made a Motion to approve this project with Councilman Perez
seconding the Motion. The Motion carried.
C DISCUSSION AND POSSIBLE ACTION TO APPROVE RESOLUTION 2013-001, A RESOLUTION
ORDERING THE POSTING AND CONDUCTING OF AN ELECTION FOR THE MUNIQPA TO BE HELD
MAY 11,2013
City Secretary Pam Long addressed the Council explaining the above listed Resolution.
Counciiwoman Rubio made a Motion to approve Resolution 2013-001 and Councilman Carter
seconded the Motion. The Motion carried.
D^DISCUSSION AND POSSIBLE ACTION TO APPROVE AN MDD ECONOMIC DEVELOPMENT
AGREEMENT WITH ANS WELDING SUPPLIES AND SERVICES
Liz Holsey spoke to Council regarding this matter. She stated, as a Municipal Development
District board member, that this item should have come bade to the MDD board for approval.
She felt that Board Chairman Hernan Jaso, the Welch's (ANS Welding), City Attorney Baiamonte
and Interim City Administrator Larry Zermeno, should not have met without the entire MDD
board being notified of the meeting. Following much discussion and much concern from MDD
board members who were present at the Council meeting and also from Council, Counciiwoman
Rubio made a Motion to table this item. Councilman Garcia seconded the Motion. The Motion
carried.
E. DISCUSSION AND POSSIBLE ACTION TO AUTHORIZE THE MAYOR TO SIGN A CHANGE ORDER
FROM MCKINSTRY ENGINEERING IN THE AMOUNT OF $30,243.59
Following a lengthy discussion initiated by Councilman Zavesky, a Motion was made by
Councilman Garcia to authorize the Mayor to sign a change order from Mckinstry Engineering
in the amount of $30,243.59. Counciiwoman Rubio seconded the Motion. The Motion carried.
EXECUTIVE SESSION-CLOSED SESSION IN ACCORDANCE WITH THE GOVERNMENT CODE
SECTION 551.074, PERSONNEL MATTERS, TO DELIBERATE ON THE APPOINTMENT,
EMPLOYMENT, EVALUATION, REASSIGNMENT, DUTIES, DISCIPLINE, OR DISMISSAL OF A
PUBLIC OFFICER
Council convened into executive session at 7:35 PM
SELECTION OF A CITY ADMINISTRATOR
IX. RECONVENE INTO REGULAR SESSION AND CONSIDER ACTION. IF ANY. ON ITEMS DISCUSSED
IN EXECUTIVE SESSION
Council reconvened into regular session at 8:08 PM.
No action was taken.
X. COUNCIL AND STAFF COMMENTS
COMMENTS MAY BE MADE BY COUNCIL OR STAFF, BUT NO ACTION TAKEN ON THE
FOLLOWING TOPICS WITHOUT SPECIFIC NOTICE. THOSE ITEMS INCLUDE; EXPRESSIONS OF
THANKS, CONGRATULATIONS OR CONDOLENCE, INFORMATION ON HOLIDAY SCHEDULES,
RECOGNITION OF PUBLIC OFFICIALS, EMPLOYEES OR CITIZENS OTHER THAN EMPLOYESS OR
OFFICIALS WHOSE STATUS MAY BE AFFECTED BY THE COUNCIL THROUGH ACTION;
REMINDERS OF COMMUNITY EVENTS OR ANNOUNCEMENTS INVOLVING AN IMMINENT
THREAT TO THE PUBLIC HEALTH AND SAFETY OF THE PEOPLE OF THE MUNICIPALITY.
Pam Long, City Secretary reminded City Council of several things coming up in the community;
Those were the Astron Club Taste of Goliad, Goliad County Chamber of Commerce Banquet and
also a TML Quarterly meeting being held in Victoria on March 7.
XI- ADJOURNMENT
With there being no further business, Coundiwoman Rubio made a Motion to adjourn.
TimefrlO
Respectfully Submitted,
Pam Long, City Secretary
City of Goliad
Approved, this day of February, 2013.
Jay Harvey, Mayor
City of Goliad, Texas