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02-23-2006 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION February 23,2006 Board Members Present Gary Bartow(departed at 7:45 a.m.) Gary Bowland Marvin Fuller John Yeager Merrill Young (departed at 7:45 a.m.) Staff Present Samuel Satterwhite, Executive Director Others Present Mark Roath, City Manager Larry Williamson, City of Wylie Finance Director With notice of the meeting posted in time and manner required by law and a quorum of Board members present, the Board of Directors of the Wylie Economic Development Corporation (WEDC) met in Regular Session on February 23, 2006 in the Conference Room of Inwood National Bank located at 200 South Highway 78, Wylie, Texas. The meeting was called to order by President Marvin Fuller at 6:32 a.m. ITEM NO. 1 — Consider and Act Upon Approval of the November 1, 2005 Minutes of the Wylie Economic Development Corporation Board of Directors Meeting. MOTION: A motion was made by John Yeager and seconded by Gary Bartow to approve the November 1, 2005 Minutes of the Wylie Economic Development Corporation Board of Directors meeting. The WEDC Board of Directors voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 2 — Consider and Act Upon Approval of the December 28, 2005 Minutes of the Wylie Economic Development Corporation Board of Directors Meeting. MOTION: A motion was made by Gary Bartow and seconded by Merrill Young to approve the December 28, 2005 Minutes of the Wylie Economic Development Corporation Board of Directors meeting. The WEDC Board of Directors voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 3 — Consider and Act Upon Approval of the October, 2005 Treasurer's Report for the Wylie Economic Development Corporation. Staff updated the Board on several procedural changes the Finance Department and City Auditors suggested for the WEDC. First of all, the WEDC and Finance Department must communicate WEDC—Minutes February 23, 2006 Page 2 better in terms of the purchase of property and the forgiveness of incentive packages by the WEDC. More timely and accurate communication will allow Finance to more accurately track the WEDC finances. Secondly, staff must do a better job of documenting WEDC activities. Staff indicated that for a three month period when the Shafer and Cirrus projects were being negotiated, the meetings were not documented accurately. Staff suggested that increased clerical assistance would allow staff to stay more organized. Finally, Finance suggested that the WEDC make a monthly report to the City Council regarding the financial activities of the WEDC. MOTION: A motion was made by John Yeager and seconded by Merrill Young to approve the October, 2005 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 4 — Consider and Act Upon Approval of the November, 2005 Treasurer's Report for the Wylie Economic Development Corporation. MOTION: A motion was made by Gary Bartow and seconded by Merrill Young to approve the November, 2005 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 5 — Consider and Act Upon Approval of the December, 2005 Treasurer's Report for the Wylie Economic Development Corporation. MOTION: A motion was made by Gary Bowland and seconded by John Yeager to approve the December, 2005 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 6 — Consider and Act Upon Approval of the January, 2006 Treasurer's Report for the Wylie Economic Development Corporation. MOTION: A motion was made by Merrill Young and seconded by Gary Bartow to approve the January, 2006 Treasurer's for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 7 — Consider and Act Upon a Recommendation to the Wylie City Council Regarding a Replacement for Retiring Board Member Gary Bowland. As a review, staff indicated that Mr. Gary Bowland would be resigning his Board seat on March 15, 2006 due to the relocation of the Bowland residence outside the Wylie City limits. The process of appointing Board members, to all City Boards and Commissions, takes place in June of each year with the appointments becoming effective in July. President Fuller commented that WEDC—Minutes February 23, 2006 Page 3 the lack of a fifth Board member may cause difficulty in terms of achieving a quorum and more importantly the potential for a tie vote. Staff recommended that the Board request that Council make a mid-term appointment. MOTION: A motion was made by Gary Bartow and seconded by John Yeager to request that the Wylie City Council make a mid-term appointment to the WEDC Board seat to be vacated by Mr. Gary Bowland. The WEDC Board of Directors voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 8 — Consider and Act Upon Issues Surrounding WEDC Property Located at 2806 W. F.M. 544 (Ferrell Tract). MOTION: A motion was made by John Yeager and seconded by Gary Bartow to table consideration of Item No. 8. The WEDC Board of Directors voted 5 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 9 — Consider and Act Upon Issues Surrounding WEDC Property Located on Martinez Lane (25 acres). Anticipating the development of lots within Premier South (Martinez Lane — 25 acres), staff indicated that a 1' contour survey must be completed prior to any flood plain reclamation can be considered. The importance of the reclamation determination directly impacts the ability, or inability, of the WEDC to relocate the overhead power lines dividing the eastern portion of the site. If no flood plain area can be reclaimed, there is no need to go to the expense to relocate the overhead lines. Furthermore, the survey will be required for the development of the proposed cul-de-sac and improvements to Martinez Lane. The Board also discussed the potential for charging a pro-rata fee to end users to off-set the infrastructure expenses being incurred by the WEDC. Staff reviewed previous estimates of improvements to Martinez being $346,660 and water, sewer, and cul-de-sac improvements estimated at $314,270. Based upon 15 useable acres, staff proposed a$40,729 per acre fee to end users. President Fuller commented that as the impact of a flood study is determined, the useable acres may increase to 20 acres and lower the per acre fee to $30,500. Staff also informed the Board that the undergrowth located at the eastern portion of the property must be removed so that an accurate survey can be preformed. Staff also proposed that trees with a caliper inch of less than six inches as well as unhealthy trees be removed per the City of Wylie Tree Preservation Ordinance. MOTION: A motion was made by Gary Bartow and seconded by Gary Bowland authorizing staff to solicit bids and enter into contracts for surveying and excavation required for the development of WEDC property located on WEDC—Minutes February 23, 2006 Page 4 Martinez Lane (25 acres). The WEDC Board of Directors voted 5 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 10—Consider and Act Upon Issues Surrounding WEDC Financial Assistance to a Utility Project Undertaken by Shafer Properties. Staff informed the Board that Shafer Properties was required by the City of Wylie to replace a clay water line which runs parallel to State Highway 78. The total change order required of Shafer was $49,723.50. Of the total cost to Shafer, materials equaled $15,000. As an intermediary only, WEDC staff requested that the City participate in the project because of the timing of the water line requirement and the necessity of the same. Furthermore, Shafer had already tied onto the line in Cooper Drive when the City determined that Shafer must replace and move the 78 line. The City of Wylie determined that public participation was warranted and agreed to provide three fire hydrants (and fittings) to the project. Staff proposed that the WEDC make up the difference between the City participation and the total cost of the materials. Total Cost of Materials $15,000 City of Wylie Participation -5,109 Total $9,891 The WEDC can participate in this type of project based upon the water line being extended beyond Cooper to benefit the adjacent industrial sites (B.E.&H. and Mann Made). Staff believes that the WEDC should participate in this project based upon an opportunity to further the continued public/private partnership shared with Shafer. MOTION: A motion was made by John Yeager and seconded by Gary Bowland to enter into and approve an agreement with Shafer Properties for the extension of water line improvements in an amount not to exceed $9,891. The WEDC Board of Directors voted 3 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 11 — Consider and Act Upon Issues Surrounding an Amended and Restated Interlocal Agreement between the City and the WEDC. WEDC staff and the Mr. Roath both presented issues surrounding ways in which the WEDC can receive more clerical assistance on a day-to-day basis. Currently the WEDC compensates the City $12,000 annually for clerical assistance. Staff indicated that this arrangement has not been entirely beneficial to the WEDC because there have been no specific duties detailed on which the WEDC can rely. WEDC—Minutes February 23, 2006 Page 5 Mr. Roath commented that a new Secretary I position has been created within his office and the Executive Assistant position left open by Brandy Brooks departure has been filled. In an effort to more clearly define the Secretary I duties, Mr. Roath drafted specific duties to be performed for the WEDC. Staff proposed that with the increased duties to be performed for the WEDC, the WEDC should commit to fund 50% of the position ($13,231 annually) through an amendment to the existing Interlocal Agreement between the City and WEDC. Additional changes to the Interlocal Agreement proposed by staff surround the WEDC's ability to utilize City personnel for WEDC purposes. For example, the WEDC often requests assistance from the Engineering, Planning, Building and Public Information Departments. Because WEDC requests can become involved and time consuming, WEDC staff and the City Manager have determined that compensation should be contemplated for those services, similar to those services provided by the Finance Department($1,000 annually). It is recommended by staff that an annual compensation be utilized opposed to affixing a fee for requests on a case-by-case basis. The attached Agreement contemplates $5,000 annually. This amount is miniscule relative to the value of services received by the WEDC and the ability of staff to formally access the full resources of the City of Wylie. Other minor changes surround the WEDC providing its own insurance (which the WEDC already does fund) and reimburse the City for costs associated with the annual audit. Should the WEDC Board approve the attached Agreement, the same will be presented to the Wylie City Council for its consideration. MOTION: A motion was made by Gary Bowland and seconded by John Yeager approving an Amended and Restated Interlocal Agreement between the City of Wylie and the Wylie Economic Development Corporation. The WEDC Board of Directors voted 3 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 12 — Consider and Act Upon Issues Surrounding an Incentive Agreement Between Southern Fastening Systems,Inc. and the WEDC. Staff informed the Board that Southern Fastening Systems is not in default per the terms of the Economic Development Incentive Agreement between Southern and the WEDC. While, the Agreement calls for total appraised value of$7.25 million, Southern has $7.266 million per the Collin County Central Appraisal District. Being that Southern is in compliance, the WEDC will issue a check to Southern in the amount of $50,000. Staff indicated that the WEDC has committed to fund one additional payment of$50,000 should Southern comply with the terms of the Agreement in 2007. MOTION: A motion was made by John Yeager and seconded by Gary Bowland authorizing the payment of $50,000 to Southern Fastening Systems as outlined in the Economic Development Agreement between the WEDC WEDC—Minutes February 23, 2006 Page 6 and Southern. The WEDC Board of Directors voted 3 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 13—EXECUTIVE SESSION: Convene into Executive Session to Hold Deliberations Regarding Real Property (Purchase of Real Property Located at 706 Cooper Drive by the WEDC) as Authorized in Section 551.072 if the Local Government Code,Vernon's Texas Code Annotated (Open Meetings Act). Convene into Executive Session to Hold Deliberations Regarding Economic Development Negotiations (Project Callahan) as Authorized in Section 551.087 if the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). The WEDC Board of Directors convened into Executive Session at 8:47 a.m. ITEM NO. 14—Reconvene into Open Meeting. The WEDC Board reconvened into Open Meeting at 9:32 a.m. There was no action taken as a result of discussion held in Executive Session. ITEM NO. 15—Citizen Participation. There being no citizen participation, President Fuller proceeded to Item No. 16. ITEM NO. 16—Adjourn. There being no further business, the meeting was adjourned at 9:35 a.m. 4 g Marvin Fuller, President Attest: Samuel D.R. Satterwhite Executive Director