12-08-1992 (WEDC) Agenda Packet MEETINGG
DEVELOPMENT CORPORATION OF WYLIE, INC.
TUESDAY, DECEMBER 8, 1992
4: 00 PM
108 WEST MARBLE, WYLIE, TEXAS
CALL TO ORDER
ORDER OF
BUSINESS BUSINESS
1. Discuss and Consider Approval of Minutes of November 10, 1992
Regular Meeting of the Development Corporation of Wylie,
Inc .
2. Discuss and Consider Treasurer ' s Report Ending 11/30/92.
+• Report from Executive Director :
A. Status report of discussions with the principals of
Physicians Regional Hospital
B. Current status report on American Molds, Inc .
C. Current status report of discussions with a major
employer that may consider a possible relocation to
Wylie.
D. Review and discuss a request for financial assistance
received from Perma-Tune, Inc.
E. Report preliminary discussions with Metro Fleet
Collision for possible financial assistance in their
move to Wylie.
F. Report discussions with Dr . Wade Wolverton for possible
financial assistance for working capital and equipment
purchases needed by his company charterd as S. I . R. A.
O. Discuss financial assistance request received from
Crown Covers.
H. Discuss the need and then approve the acceptance of
competitive bids for the possible purchase or lease of
new or used copier equipment.
I . Review and then consider approval for one or more
registrants to attend the 9th Annual Economic Outlook
Conference scheduled in Dallas on Tuesday,
January 26, 1993.
4. Other Business.
5. Recess open meeting.
6. Convene to Workshop to Discuss Goals and Objectives.
A. Discuss passible purchase of commercial property.
7. Reconvene Regular Meeting.
8. Citizen Participation.
Wylie Residents Wishing to Speak Should Limit Remarks to a
Maximum of Five (5) Minutes.
10. Adjourn.
NOTICE OF MEETING
Notice is hereby given that the Economic Development Corporation Board of
Wylie will meet at 4: 00 P. M. on the day of , 1992
at 108 West Marble, in the City of Wylie, Texas, for the purpose
of considering the above agenda.
_____// 1dar11)
Mar Ni :ho IC
y _sty Secretary
POSTED THIS THE __ _DAY OF1 ci.12)
____, 1992,
DIRECTORS OF DEVELOPMENT CORPORATION OF WYL I E, INC.
MINUTES
NOVEMBER 10, 1992
The Directors of the Development Corporation of Wylie, Inc . met
in regular- session at rto 0 P. M. on Tuesday, October 13, 1992 1
the Development Corporation' s office at 108 W. Marble, Wylie,
Texas. A quorum was present and notice of the meeting had been
posted in the time and manner required by law. Those present
were John `i'eac er , Secretary Treasurer and members John Tobin and
John Mandy. Executivs Director Charlie Womack , Mayor John Akin,
and City Manager Steve Norwood were also present . In attendance
from the City Staff was Anita Collins.
John Yeager called the meeting to order .
DISCUSS AND CONSIDER APPROVAL OF MINUTES OF NOVEMBER 10, 1992
REGULAR MEETING : A motion to approve the minutes as presented
was made by John Tobin and seconded by John Mandy. The motion
carried with all in favor .
DISCUSS AND CONSIDER APPROVAL OF TREASURER'S REPORT: A motion to
accept the Treasurer ' s Report as read was made by John Tobin and
seconded by John Mandy. The motion carried with all in favor .
(See attached report at the end of these minutes)
REPORT FROM EXECUTIVE DIRECTOR:
A. Robert Arden has made a decision not to purchase the
property, thus our commitment to make him a loan is no longer
necessary.
D. Our bid to purchase the property located at 3501 Eubanks
Lane, Wylie is still in a pending status. There was only one
other bidder for the property.
C. Discussions are still continuing with a major employer on
their possible relocation to Wylie.
D. Mr . Womack has met with principals of Physicians Regional
Hospital regarding their inability to meet the October 31 , 1992
loan payment to the bank. This is due to Medicare' s withholding
payment on some claims. Mr . Womack k will be meeting with them
again this week or next .
E. The contract with Rutledge, Crain & Co. , P. C . has been
negotiated and will be signed. They will audit the Development
Corporation books.
F. American Molds is still working on acquiring the permit
necessary to expand their facility. The hearing scheduled for
this month has been ,ost oned p_ �_p The TAi=:D has made a tour of
American Molds.
G. Mr . Womack reported that he was unable to get a reservation
for the course offered by Texas Engineering Extension Service, of
the Texas A & M University System, College Station, Texas.
See report attached at the end of these minutes.
OTHER BUSINESS: Mr . Womack reported that he had a few inquiries
this month for financial assistance and would be reporting more
details. Ken Ross of Ross Communications wants the Development
Corporation to fix Cooper Drive. The people who purchased the
Tarrant Plumbing building may need some financial assistance.
SIRA is needing financial assistance.
Mr. Womack should attend a seminar in Austin regarding a new
fund for new businesses.
RECESS OPEN MEETING
CONVENE TO WORKSHOP TO DISCUSS GOALS AND OBJECTIVES: No
discussion took place.
RECONVENE REGULAR MEETING
CITIZEN PARTICIPATION: None
There being no other business for discussion a motion was made
and seconded that the meeting be adjourned.
Minutes of the November 10, 1992, regular meeting approved by the
Board of Directors at its meeting on December 8, 1992.
John Yeager , Secretary
PREPARED BY .
Anita
TREASURER'S REPORT ENDING OCTOBER 31 , 1992
ENDING BALANCE 9/30/92
Checking Account 5213, 511 . 08
C/D #6000017477 120, 640. 32
Petty Cash Account 387. 17
TOTAL CASH 9/30/92 $334,538 .57
INCOME:
Checking Account Balance 9/30/92 5213, 511 .08
Sales Tax Revenue 13, 175. 76
Interest Earned 531. 59
Redeposit C/C #047630 1, 750. 50
TOTAL FUNDS AVAILABLE $228,968.93
EXPENSES:
Third Quarter 941 & W/H Taxes $ 1,410.00
Wylie Chamber of Commerce 3,000.00
Oakridge Country Club 40.05
GTE Southwest, Inc. 51.39
Wylie Rotary Club 90.00
C. C. Womack 1,683.00
FDIC - Bid 3501 Eubanks Lane 1,750.50
Gayler Moving Company 96.00
AARP Group Insurance Program 165.00
Internal Revenue Service 24.00
Texas Employment Commission 243.00
Jerry Patterson (Accounting) 100.00
TOTAL EXPENSES $ 8,652.94
CHECKING ACCOUNT BALANCE 10/31/92 $220,315 .99
PETTY CASH ACCOUNT 9/30/92 $ 387 . 17
EXPENSES:
Maria' s Restaurant (Lunch) $ 21.05
Bizmart (Telephone) 162 .36
Wylie Chamber of Commerce (Lunch) 7. 50
Target (6) 15 Amp. Voltage Outlet 4. 32
Courtyard By Marriott 58.65
TOTAL EXPENSES $ 253.88
PETTY CASH BALANCE 10/31/92 $ 133.29
C/D #6000017477 9/30/92 $120,640. 32
Interest Earned 10/31/92 294.76
CURRENT VALUE 10/31/92 $120, 935.08
TOTAL CASH PERIOD ENDING 10/31/92 $341,384 .36
*C/D #6000017477 is pledged to Provident Bank, Wylie, as collateral to secure a
Working Capital Line of credit for Physicians Regional Hospital.
**Commitments $40,000.00 Robert Arden and $35,010.00 to Art Criscuolo have been
cancelled.
TOTAL FUNDS AVAILABLE FOR REINVESTMENT $221,384.36
SUMMARY OF OCTOBER ACTIVITIES
ROBERT ARDEN, MARIA'S RESTAURANT, INC.
Several personal and telephone conversations have taken place
during the month to discuss our loan commitment totalling
$40, 000. 00 that was needed to close his purchase of property
located 501 N. Brown, Wylie, Texas. Mr. Arden had signed a
contract to purchase the property from FDIC for $220, 000. 00. The
local FDIC District has approved the contract and has been waiting
on their Washington office to ratify the sale. During this
interval, Mr. Arden has discovered his Federal Income Tax liability
is larger than expected. This new development has caused Mr. Arden
to cancel plans for the immediate purchase of this property. This
decision has nullified our loan commitment of $40, 000. 00.
ART CRISCUOLO, PURCHASE OF PROPERTY LOCATED 3501 EUBANRS LANE,
WYLIE
The Corporation decided to submit a sealed bid totalling $35, 000. 00
to the FDIC for the purchase of the above-described property.
Corporation would then lease the property to Mr. Criscuolo if their
bid was accepted. Apparently another party had knowledge of our
bid and submitted an offer of $35, 200.00. FDIC didn't accept the
top bid but countered with a $45, 000. 00 fixed price. Should the
successful bidder reject the counter offer, then the Corporation
will have an opportunity to accept their proposal.
PHYSICIANS REGIONAL HOSPITAL
A principal reduction payment of $30, 000. 00 was due to be paid
October 31, 1992, on the note guaranteed by the Corporation to the
Provident Bank, Wylie. Payment hasn't been made and after two
meetings with management the following problems have prevented the
payment to be made as contracted:
(1) The elimination of the adolescent psychiatric unit in March
has adversely reduced their cash flow during the following
months.
(2) The cost of building the geriatric psychiatric unit was
financed from current cash flow during a severe shortage of
income.
(3) Hospital census during the third quarter was lower than
projected.
(4) Hospital anticipated to receive $97, 000. 00 in payments from
Medicare for services rendered by the geriatric unit but some
$66, 000.00 of invoices were returned unpaid because of
clerical errors.
2
(5) Medicare was invoiced at $840.00 per day rate, but the
intermediary (Mutual of Omaha) has decided to withhold $190. 00
per diem since this is the geriatric's first operating year.
The hospital is assembling the essential data to support their
per diem cost of $840.00. They should complete the required
information within a three-week period, and they will then
file a request for payment of $162,700.00 to pay the
calculated short fall through October 31, 1992.
There are some positive factors that indicate progress is being
made to generate sufficient funds to meet their daily financial
obligations. These factors are:
(1) October census for the geriatric unit averaged 9. 3 patients
for a billable income of $242, 172.00. They expect to receive
under the reduced payment during December a total of
$187, 395.00.
(2) Traditionally November census count and other related medical
services have produced larger fee income than other months.
This additional income should be collected during the next 60
to 90 days.
(3) Hospital has just received another three (3) year
certification.
(4) They have just received a "Accommodation for Quality" Award,
and this accomplishment is very rare in the industry.
(5) An arrangement has been made with Internal Revenue to repay
their obligation over a twelve (12) month period.
Management is hopeful that there can be a partial payment during
November on the loan that Corporation has guaranteed. They hope
the entire $30, 000. 00 payment can be made before December 31, 1992 .
AMERICAN MOLDS, INC.
The Texas Air Control Board (TACB) will make an on-site inspection
during Monday, November 9. They will then have a meeting with Mr.
Dewey Wallace and Mrs. Cheryl Edwards in an attempt to reconcile
the differences between the parties. A full hearing is scheduled
on November 16 at the TACB home office in Austin if they fail to
reconcile the problem with the parties prior to the scheduled
meeting date.
GOURMET AWARD FOODS
A breakfast meeting was held with two principal officers of the
corporation. Jim Smith, James Blakey, Don Whitt, and Steve Norwood
3
attended as representatives of the entities interested in the
possible relocation of this company to the City of Wylie. We feel
the meeting was most beneficial for all in attendance. Mr. Bryon
LaMont, Director of Finance/Operations has responded with a letter
describing some of their expansion requirements. A meeting is
scheduled for November 12 to discuss available financing programs
should the Corporation be required to own the new facility.
NOVEMBER ACTIVITIES
It appears this month will be active because four (4) telephone
inquiries have been received from parties requesting financial
assistance. A more detailed report will be made when and if
sufficient financial information is received to warrant further
consideration.
RUTLEDGE CRAIN & COMPANY, PC
CERTIFIED PUBLIC ACCOUNTANTS
1601 E. Lamar, Suite 109
Arlington, Texas 76011
Metro(817)265-9989 Fax(817)861-9623
November 2, 1992
Development Corporation of Wylie, Inc.
do Mr. C. C. Womack, Executive Director
P.O. Box 1467
Wylie, Texas 75098
Thank you for your response to our engagement letter dated October 3, 1992. We
understand your desire to agree to a maximum fee for the audit. However, we are
precluded by the "Rules of Professional Conduct," that are determined by the Texas State
Board of Public Accountancy, which is an agency of the State of Texas. For your
reference, we are enclosing a copy of the rules. Please read Section 501.45, (c) (2) which
addresses competitive bidding. •
Briefly, we are in the second year of a multiyear contract under which, initially, more than
one "certificate or registration holder" proposed to perform the audits of the City of Wylie
and Wylie Development Corporation. Given that circumstance, we are permitted only to
propose an estimated fee for each year of the multiyear contract.
It is our intention to invoice Wylie Development Corporation based on the actual hours
we expend on the audit at our established hourly rates for auditing. Please note that last
year we invoiced Wylie Development Corporation for less than the fee estimate. Although
we cannot assure you that will happen again this year, we have very rarely requested a
client pay more than the original fee estimate.
We have scheduled the audit to be performed during the week of November 16 - 20, 1992
and look forward to continuing to audit Wylie Development Corporation. If you have any
questions, please do not hesitate to contact us.
Very truly yours,
Members
Christian A Rutieoge CPA American institute of Certified Pubic Accountants >
Texas Society of Certified Pubic Accountants ew,s Cyan CPA