City Council Minutes Hapless on Ethics Change

How far can the bar fall in San Angelo City Government? Below are the minutes from the January 3rd City Council meeting relative to MedHab LLC's $3.6 million in economic development incentives.

16. Page 234 Minutes Vol. 103 January 3, 2012 RECESS At 11:41 A.M., Mayor New called a recess.EXECUTIVE/CLOSED SESSION At 12:17 P.M.,

Mayor Pro Tempore Charlotte Farmer chaired the meeting as Mayor New was in Australia.

The minutes have Mayor New calling a closed session to discuss economic incentives.

Council convened in Executive Session under the provision of Government Code, Title 5. Open Government; Ethics, Subtitle A. Open Government, Chapter 551. Open Meetings, Sub-chapter D. Exceptions to Requirement that Meetings be Open, Section 551.087 to discuss an offer of financial or other incentive to accompany or companies with whom the City of San Angelo is conducting economic development negotiations and which the City of San Angelo seeks to have, locate, stay or expand in San Angelo.

The absent Mayor New "concluded the Executive/Closed Session" on MedHab, then reconvened the Open Session at 1:01 pm.

Council reconvened, and the following business was transacted: CONSIDERATION OF MATTERS DISCUSSED IN EXECUTIVE/CLOSED SESSION APPROVAL OF A RECOMMENDATION BY THE CITY OF SAN ANGELO DEVELOPMENT CORPORATION (COSADC) BOARD TO AMEND THE CITY OF SAN ANGELO DEVELOPMENT CORPORATION GUIDELINES FOR JOB CREATION ASSISTANCE SECTION ENTITLED ELIGIBILITY OF APPLICANTS AND REVISING OUTDATED CONTACT INFORMATION.

The proposal related to elected officials and city leaders holding an economic interest in a venture.  Such holdings made the venture ineligible for economic assistance.

Development Coordinator Robert Schneeman presented background information. A copy of the presentation is part of the Permanent Supplemental Minute record. Council member Morrison expressed his concern regarding the amendments to the application eligibility criteria noting that the current criteria rules have been styled to prevent elected and appointed officials from receiving funds from the City of San Angelo Development Corporation. He expressly spoke in opposition of the amendment.

Council members Alexander, Hirschfeld, and Adams spoke in favor of the amendment and proposed MedHab incentive (item immediately following this item). Motion, to approve the amendment to the Guidelines, as presented, was made by Council member Hirschfeld and seconded by Council member Alexander. AYE: Alexander, Adams, Hirschfeld, and Farmer. NAY: Morrison and Silvas. Motion carried 4-2.

With Mayor New's impediment removed, Council moved on to the $3.6 million incentive for MedHab referred to in the minutes as "background information.".

APPROVAL OF AN OFFER OF ECONOMIC INCENTIVES TO MEDHAB, L LC, A MEDICAL DEVICE COMPANY CONSIDERING LOCATING IN SAN ANGELO INCLUDING, BUT NOT LIMITED TO, A TAX REBATE, JOB CREATION GRANT, BUILDING RENOVATION GRANT, AND LEASE ASSISTANCE

Community and Economic Development Director Shawn Lewis and Economic Development Coordinator Donna Osborne presented background information. A copy of the presentation is part of the Permanent Supplemental Minute record.

17. Minutes Page 235 January 3, 2012 Vol. 103 Council members Hirschfeld, Alexander, Silvas, and Mayor Pro Tempore Farmer spoke in favor of the incentive.Motion, to authorize the incentive, as presented, was made by Council member Adams and seconded by Council member Hirschfeld. AYE: Alexander, Silvas, Adams, Hirschfeld, and Farmer. NAY: Morrison. Motion carried.

Here's how the minutes ended:

ADJOURNMENT Motion, to adjourn, was made by Council member Adams and seconded by Council member Morrison. Motion carried unanimously.The meeting adjourned at 2:01 P.M. THE CITY OF SAN ANGELO

___________________________________ Alvin New, Mayor (conflicted and absent)

ATTEST:_______________________________Alicia Ramirez, City Clerk Annexes A-G In accordance with Chapter 2, Article 2.300, of the Official Code of the City of San Angelo, the minutes of this meeting consist of the preceding Minute Record and the Supplemental Minute Record.

Following these minutes, I might believe Alvin New directed things in abstentia.

Update 2-9-12:  The City cleaned up the minutes for final approval.