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06-22-2006 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Thursday, June 22, 2006 —6:00 P.M. Inwood National Bank— Conference Room 200 South Hwy. 78 -Wylie, Texas CALL TO ORDER Announce the presence of a Quorum. President Fuller called the meeting to order at 6:00 p.m. Board Members present were: Gary Bartow, Mitch Herzog, and John Yeager. Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry Harris. Board Member Young and Ex-Officio Member/City Manager Roath were not present. CITIZEN PARTICIPATION There being no citizen participation, President Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and Act Upon Approval of the June 15, 2006 Minutes of the WEDC Board of Directors Meeting. President Fuller requested that Action Item No. 2 within the June 15, 2006 Minutes be amended to reflect the monthly recordation of interest earned, questions regarding the forgiveness schedules for Bayco and Lone Star Circuits, and for staff to provide greater detail when presenting the Executive Director Expense Report. The Board also discussed the need for an independent accounting service so that the WEDC could be in greater control of entries/corrections to the WEDC financial statements and requested again that staff seek a resolution from the City pertaining to financial participation in the Collin College Plain and Fancy Ball. MOTION: A motion was made by Gary Bartow and seconded by John Yeager to approve the June 15, 2006 Minutes of the WEDC Board of Directors Meeting as amended. The WEDC Board voted 4 — FOR and 0 —AGAINST in favor of the motion. WEDC—Minutes June 22, 2006 Page 2 of 7 ITEM NO. 2 — Consider and Act Upon Issues Surrounding a WEDC Promotional Expenditures Policy. Staff presented to the Board that the Wylie City Council reviewed the Promotional Expenditures Policy on June 13, 2006 and unanimously recommended approval of the Policy as presented. MOTION: A motion was made by John Yeager and seconded by Gary Bartow to approve the WEDC Promotional Expenditures Policy. The WEDC Board voted 4 — FOR and 0 —AGAINST in favor of the motion. ITEM NO. 3 — Consider and Act Upon Issues Surrounding a WEDC Financial Standards and Accountability Policy. Staff presented to the Board that the Wylie City Council reviewed the Financial Standards and Accountability Policy on June 13, 2006 and unanimously recommended approval of the Policy as presented. MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to approve the WEDC Financial Standards and Accountability Policy. The WEDC Board voted 4 — FOR and 0 —AGAINST in favor of the motion. ITEM NO. 4— Consider and Act Upon Issues Surrounding a WEDC Strategic Plan. Staff presented a Request for Proposal (RFP) to be distributed to four consultants interested in providing strategic planning services to the WEDC. Staff indicated that the RFP would be distributed to Council prior to being distributed to the consultants to allow for input. Based upon the anticipated cost of the study and input from the City Council and Board members, staff posed the question of the need for an outside firm to perform a study which could potentially be performed in-house. Board Member Bartow interjected that the potential cost is miniscule compared to the opportunity to improve WEDC processes and successfully locate even a single industry or retailer. Board Member Yeager believed that an outside perspective is warranted if only to affirm the current direction and activities of the WEDC. President Fuller directed staff to be more specific within the RFP as to the retail component. Mr. Yeager also suggested that a specific time frame not be identified as to a response to the consultants from the WEDC. WEDC—Minutes June 22, 2006 Page 3 of 7 The Board discussed the potential for financial participation by the City being that a primary focus of the Plan will be geared toward a retail component. Staff indicated that while the WEDC cannot fund retail development directly, the funding of a study which includes a retail component should fall under the umbrella of the WEDC. MOTION: A motion was made by Gary Bartow and seconded by John Yeager distribute the RFP as amended. The WEDC Board voted 4 FOR— and 0 AGAINST in favor of the motion. ITEM NO. 5 — Consider and Act Upon Issues Surrounding Budget Transfers for the WEDC FY 2005 — 2006 Budget. Staff presented budget transfers based upon the following data: A. Materials for Maintenance (54990) is a new account. The creation of this account was necessitated by the following: 1. Maintenance on BE&H gate $2,800.00 2. Mowing- Cooper Drive/Ferrell 220.00 3. Misc. (for balance of fiscal year) 2,000.00 Total $5,020.00 B. Special Services (56040): 1. Utilities—706 Cooper Drive $36.45 2. Eubanks Trucking for Martinez Property 5,500.00 3. Surveys 22,674.87 4. Misc. (for balance of fiscal year) 5,788.68 Total $34,000.00 C. Advertising (56080). Staff is presenting unbudgeted advertising expenditures. By replenishing the account by the same amounts, the WEDC will maintain the previously budgeted $30,000 for retail advertising (or strategic planning for retail development as the case may be) and fund previously budgeted line items (Dallas Business Journal and Inside Collin County Business): 1. Academic Achievement $250.00 2. Guy Poole Memorial Ranch Rodeo 1,745.00 3. Radio Advertising, Wylie Football Playoffs 2,000.00 4. Wylie News (repeat of`In and Around Wylie' ad) 855.00 5. Inside Collin County Business Book of Business 4,500.00 WEDC—Minutes June 22, 2006 Page 4 of 7 6. Misc. 2,000.00 Total $11,350.00 D. Community Development(56090): 1. Wylie Flower Shop $84.41 2. Game Winning Productions-Radio Playoff(basketball) 225.00 3. Wylie Chamber Golf(Over the budgeted amt.) 540.00 4. MAI Door Program 537.80 5. Richardson Regional Hospital Gala 1,000.00 6. Misc. (for balance of fiscal year) 1,612.79 Total $4,000.00 E. Engineering(56570): 1. 24-hour traffic count at FM544/McCreary $150.00 2. Misc. (for balance of fiscal year) 1,850.00 Total $2,000.00 F. Land (58110): 1. Hughes escrow $25,000.00 2. Hughes closing 102,000.00 3. Perry property earnest money 25,000.00 Total $152,000.00 H. Development Fees (58120): 1. Parkland Dedication Fee (City of Wylie) $5,082.00 2. Plat Fee 37.50 3. Tax Certificates 80.00 4. Misc. (for balance of fiscal year) 80.50 Total $5280.00 I. Debt Service (57110)—Hughes Note $7,550.00 The items listed below will provide adequate funding for expenditures resulting from the hiring of a full-time administrative assistant and relocating WEDC offices. WEDC—Minutes June 22, 2006 Page 5 of 7 A. Personnel Services (51100)Administrative Assistant: 1. Salaries (51110) $8,850.00 2. TMRS (51310) 780.00 3. Hosp& Life (51410) 1,680.00 4. FICA (51440) 600.00 5. Medicare (51450) 130.00 6. Workers Comp (51470) 40.00 7. Unemployment Comp. (51480) 320.00 Total $12,400.00 B. Computer(58810) Administrative Assistant new system: $1,180.00 C. Office Supplies (52010)new office set-up: 1. Supplies $1,000.00 2. Business cards, stationary, etc. 750.00 3. Misc. (for balance of fiscal year). 2,250.00 Total $4,000.00 D. Rent(56180): 1. Office rent(2 months) $1,800.00 2. Copier rental service agreement(estimated) 850.00 Total $2,650.00 E. Utilities (56610)new office: $650.00 F. Furniture (58830) office chair, misc. (for balance of fiscal year): $900.00 G. Telephone/Internet(56110): $1,400.00 WEDC—Minutes June 22, 2006 Page 6 of 7 Future Projects, within the Incentives budget, will have to be reduced to offset the above unbudgeted expenditures. Remaining monies available for Future Projects equals $297,530. A. Incentives (56030) ($244,380) MOTION: A motion was made by Gary Bartow and seconded by Mitch Herzog to approve budget transfers totaling $244,380. The WEDC. Board voted 4 FOR — and 0 AGAINST in favor of the motion. ITEM NO. 6 — Consider and Act Upon Issues Surrounding the WEDC FY 2006 2007 Budget. Staff presented a preliminary budget to the WEDC Board of Directors. Sales tax revenue has been estimated at $1,136,130 with an estimated fund balance of $300,000. Items of significance within the budget are $40,000 for strategic planning services, $30,000 for demolition and excavation services, $558,124 in non-specific cash incentives, $137, in fixed incentives, and $294,249 in debt service, $20,000 in promotional materials. Mr. Herzog indicated that he believed it is important that the WEDC have a presence at the International Shopping Center Convention. Mr. Fuller indicated that a significant amount of monies be available within each budget category to react to unbudgeted programs. No action was taken as a result of discussions held surrounding the WEDC FY 2006 —2007 Budget. EXECUTIVE SESSION The WEDC Board of Directors convened into Executive Session at 8:39 p.m. ITEM NO. 1 — Convene into Executive Session to Hold Deliberations Regarding Real Property (Purchase of Real Property by the WEDC Located at 707 Cooper Drive) as Authorized in Section 551.072 of the Local Government Code, Vernon's Texas Code annotated (Open Meetings Act). RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:54 p.m. No action was taken as a result of discussions held in Executive Session. WEDC—Minutes June 22, 2006 Page 7 of 7 ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 8:55 p.m. Consensus of the WEDC Board was to adjourn. Marvin Fuller,President ATTEST: Samuel D.R. Satterwhite Executive Director