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Home My WebLink About06-09-97 TC Min 268 TOWN OF WESTLAKE MINUTES OF THE EMERGENCY MEETING OF THE BOARD OF ALDERMEN JUNE 9, 1997 Present: Scott Bradley, Mayor Charla Bradshaw, Mayor Pro- Tem Fred Held, Member Abe Bush, Jr. Member Paul Isham, Town Attorney Ginger Crosswy, Town Secretary Absent: Howard Dudley Carroll Huntress The meeting was called to order at 8:02 a.m, by Mayor Scott Bradley. Mayor Bradley explained that the reason for this emergency meeting is to consider and take action, including the adoption of appropriate resolutions, concerning the financial status of the Town and the freezing of the Town's funds since all of the Town's funds have been frozen by the Town's depositories, Keller State Bank and the Comptroller of Public Accounts of the State of Texas, Mayor Bradley also told the assembly that all of the Board members had been given the required two hours notice of this meeting. Motion by Alderman Bradshaw, seconded by Alderman Bush, to adopt Resolution 97-40 which is a resolution of the Board of Aldermen of the Town of Westlake, Texas, authorizing filing of a Petition under Chapter 9 of the Bankruptcy Code. Motion carried unanimously. Motion by Alderman Bradshaw, seconded by Alderman Held, to adjourn. Motion carried unanimously. The meeting was adjourned at 8:06 a.m. Scott Bradley, Mayor ATTEST: Ginger Crosswy, Town Secretary 269 TOWN OF WESTLAKE MINUTES OF THE REGULAR MEETING OF THE BOARD OF ALDERMEN JUNE 9, 1997 Present: Scott Bradley, Mayor Charla Bradshaw, Mayor Pro-Tern Abe Bush, Jr., Member Fred Held, Member Paul Isham, Town Attorney Terry Morgan, Town Special Counsel Ernie Hedgcoth, Town Engineer Charles Haynes, Town Auditor Scott Black, Town Public Relations Manager Jeff Prostok, Bankruptcy Attorney Ginger Crosswy, Town Secretary Absent: Carroll Huntress Howard Dudley The meeting was called to order at 7:40 p.m. by Mayor Bradley who read into the record the attached press release explaining the petition filed in the U. S. Bankruptcy Court in Fort Worth today. Mayor Bradley announced that a hearing has been scheduled for 10:30 a.m. on Thursday, June 12, 1997, on this petition. Mayor Bradley introduced Jeff Prostok, Esq., of Cantey& Hanger, L.L.P., the bankruptcy attorneys for the Town. Mr. Prostok spoke briefly, outlining what the Town had done and why these steps had been taken. Item#2: Citizens' Presentations: Allan Heath of 5944 Stagecoach Circle, Westlake, Texas, presented to the Town a representation of the Reunite Westlake shirts that he has had made and most of the audience is wearing. Mayor Bradley thanked Mr. Heath and congratulated him for appearing at the public hearing held by the City of Southlake and raising the issue of the immorality of the City of Southlake's efforts to annex Solana away from Westlake. Item#3: Review and approve any bills paid or unpaid. This item was tabled until the next meeting due to the Town's financial situation. Item#4: Consider Ordinance No. 292 calling a special election for August 9, 1997, electing two Aldermen to fill the unexpired terms of two vacancies on the Board of Aldermen and appointing an election judge. Motion by Alderman Bush, seconded by Alderman Bradshaw, to adopt Ordinance No. 292. Motion carried unanimously. 270 June 9, 1997 Regular Meeting Page 2 Item#5: Consider and take action to hire and reinstate Charles Haynes, CPA as the Town CPA. Alderman Bush asked Mr. Haynes if his firm would continue at the same rates. Mr. Haynes answered that they would. Motion by Alderman Bradshaw, seconded by Alderman Held, to hire and reinstate Charles Haynes, CPA as the Town CPA. Motion carried unanimously. Item 96: Authorize the purchase of a new plain paper fax machine. The Town secretary told the Board that the Town could purchase a laser fax machine from Alternative Office Systems for $389.00. Ms. Crosswy stated that any machine of comparable price is a carbon image machine which would not produce the same quality picture. Ms. Crosswy then said that the reason the price was lower with Alternative Office Systems is because they have a contract to sell to government entities. The Board then tabled this item until the Town's financial situation is cleared up. Item#7: Consider Ordinance No. 293 expanding the Planning and Zoning Commission from three members to five members. Motion by Alderman Bradshaw, seconded by Alderman Bush, to adopt Ordinance No. 293. Motion carried unanimously. Item#8: Consider and take action to appoint members of the Planning and Zoning Commission, including the Chair. This item was tabled until the next meeting. Item#9: Consider and take all action necessary to override the purported veto of Dale White including, but not limited to, the following items: a) Reconsider and take action to adopt Resolution No. 97-36 to open a checking account for the Town and authorize the signatories. b) Reconsider Resolution No. 97-36 with regard to the Town's account with TexPool. c) Reconsider and ratify the adoption of Ordinance No. 287 which repeals all ordinances and resolutions concerning any disannexations, release of extraterritorial jurisdiction of the Town, and joint resolutions and agreements for release and acceptance of the extraterritorial jurisdiction of the Town. 271 June 9, 1997 Regular Meeting Page 3 d) Reconsider and take action to repeal Resolution No.'s 97-31 thru 97-35 (indemnifications of Carroll Huntress, Howard Dudley, Jerry Moore, Al Oien and Dale White). e) Reconsider and take action to adopt Ordinance No. 288 repealing Ordinance No. 283 which purports to repeal the grant of a franchise to the Lake Turner Water Corporation. fl Reconsider and take action to repeal Resolution No. 97-28 which purports to approve the settlement of a boundary disagreement lawsuit between the Town of Westlake and the City of Roanoke. g) Reconsider and take action to adopt Ordinance No. 289 which repeals Ordinance No. 284 and any predecessor ordinance purporting to change the official boundary map adopted by Ordinance No. 253. h) Reconsider and take action to adopt Resolution No. 97-37 which establishes regular weekly meetings of the Board of Aldermen. i) All other actions lawfully taken by the Board of Aldermen at its meeting on May 12, 1997 although not taken by the adoption of an ordinance or a resolution. Motion by Alderman Bradshaw, seconded by Alderman Held, to override the purported veto of Dale White including, but not limited to, the items listed as a) thru i)under item#9 on the notice for the June 9, 1997, regular meeting. Motion carried unanimously. Item#10: Consider and take action to adopt a resolution establishing a bank account for the Town of Westlake and authorizing the signatories. Motion by Alderman Bush, seconded by Alderman Held, to adopt Resolution No. 97-41 authorizing a new bank account to be opened at the Keller State Bank with Fred Held, Abe Bush, Jr., and Ginger Crosswy as signatories. Motion carried unanimously. Item#11: Consider and take action to adopt a resolution establishing the date, time and place for regular meetings of the Town. Motion by Alderman Bradshaw, seconded by Alderman Held, to adopt Resolution No. 97-42 establishing the time of regular Board meetings to be 6:00 p.m. for the executive session with the open meeting to begin at 7:30 p.m. every Monday night at the Town Hall or another location designated by the Town in the meeting notice. 272 June 9, 1997 Regular Meeting Page 4 Motion carried unanimously. Item#14: Ratify the adoption of Resolution No. 97-40, a Resolution of the Board of Aldermen of the Town of Westlake, Texas authorizing filing of a petition under chapter 9 of the Bankruptcy Code. Mayor Bradley explained to the assembly that this is the resolution that was adopted at the emergency meeting that was held at 8:00 a.m. this morning. Motion by Alderman Bradshaw, seconded by Alderman Bush, to ratify the adoption of Resolution No. 97-40. Motion carried unanimously. Item #12: The Board recessed into executive session at 8:15 p.m. and reconvened into open session at 9:15 p.m. Item#13: Consider and take action necessary with respect to any of the pending matters in item #12 above or other contemplated actions against parties involved in actions to destroy the Town. Motion by Alderman Bradshaw, seconded by Alderman Held, to authorize the bankruptcy attorneys for the Town to remove any pending lawsuits to Federal Bankruptcy Court that they feel necessary for the best interest of the Town on the advice of the Town attorney, special counsel or trial counsel. Motion carried unanimously. Item#15: Motion by Alderman Bush, seconded by Alderman Held, to adjourn. Motion carried unanimously. The meeting was adjourned at 9:18 p.m. Scott Bradley, Mayor ATTEST: Ginger Crosswy, Town Secretary NEWS RELEASE FOR IMMEDIATE RELEASE NEWS RELEASE I For Information Contact: Scott Black (972)851-1151 WESTLAKE RESIDENTS FILE CHAPTER 9 MUNICIPAL BANKRUPTCV TO SAVE TOWN June 9, 1997—Westlake, Tex Attorneys for the Town of Westlake, a small Tarrant County municipality, filed a Chapter 9 municipal bankruptcy petition in the U. S. Bankruptcy Court in Fort Worth today. The bankruptcy case was filed to allow the Town to continue to function as a viable municipality and honor its municipal obligations. Five individuals, alleging to act as the mayor and aldermen of Westlake, purportedly disannexed 90% of i the Town's land, including their own properties or properties on which they reside, and the Solana Office Park, which comprises more than 99a/a of the Town's current revenue base. The purported disanncxation even included the Town Hall. The City of Southlake is seeking to annex Solana. Solana was purportedly disannexed by the alleged mayor and aldermen after their properties, or the properties on which they live, had been purportedly disannexed from the Town. Westlake contends that the purported disannexation of Solana is illegal and invalid under both state law and federal bankruptcy law. The Towns has filed a lawsuit in the Bankruptcy Court to set aside the purported disannexations as a fraudulent transfer. Westlake also seeks an injunction to enjoin the disannexation of Solana and to prevent Southlake from annexing the business park. According to Bobby Forshey, one of the Town's attorneys, "The Chapter 9 petition was filed to allow Westlake to honor its municipal obligations and fulfill its duties as a town, not to avoid its obligations. Westlake's goal is to propose a plan of reorganization which will provide for full payment of all obligations, and provide municipal services to its citizens. (more) 12201 Merit Drive Suite 100 Dallas.Texm 75251.2219 1 } Westlake Residents File Chapter 9 Municipal Bankruptcy To Save Town (coot.) The Town contends that the purported disannexation of Solana was improper and illegal, and that Southlake has no right to annex Solana. "The Town has brought suit in the federal Bankruptcy Court to set aside these purported disannexations and to restrain Southlake from annexing Solana," stated Jeff Prostok, also an attorney for the town. "This in an important step in restoring the Town and insuring that Westlake can honor its obligations." "The Chapter 9 petition offers Westlake citizens a way to save the revenue base of their Town and to insure that Westlake can function as a community,"added Forshey. The town of Westlake is principally located in Tarrant County north of Fort Worth and is home to approximately 235 people. The Town is governed by five elected aldermen and an elected mayor. operating revenues are generated through a sales tax to pay for basic services, such as police and fire protection, as well as capital expenditures for roads and utilities. Westlake was incorporated in 1956 and has attracted businesses such as the Boy Scouts of America,Levi-Strauss National Communications Center, Citicorp Technology and Mercedes Benz Credit Corporation. i